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Thursday 21 November 2019
Rhode Island Man Pleads Guilty to Fraudulently Acquiring Firearms from a Licensed DealerRead the Press Release
Portland, Maine: A Pawtucket, Rhode Island man pleaded guilty today in federal court in Portland to providing false information in connection with the acquisition of firearms from a licensed dealer, U.S. Attorney Halsey B. Frank announced.
According to court records, on five separate occasions between April 2018 and August 2018, Salvador Rodrigues, 22, purchased firearms from Kittery Trading Post. During each of the five purchases, Rodrigues presented an invalid Maine driver’s license and/or falsely claimed in writing that he had not been convicted of a felony offense. In fact, he had been convicted in Rhode Island of felony possession of a pistol without a license and a felony drug offense in May 2018.
Rodrigues faces up to 10 years in prison and a $250,000 fine on each of the five counts to which he pleaded guilty. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The Pawtucket Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case, which was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. For more information about PSN please visit www.justice.gov/psn.
Providence Woman Facing Federal Prison and Deportation After Admitting to Trafficking More Than 3 Kilos of Fentanyl and HeroinRead the Press Release
PROVIDENCE – A Providence woman arrested in November 2018 when federal agents seized more than three kilograms of fentanyl and heroin during a court-authorized search of her home is facing a federal prison sentence and deportation after pleading guilty in federal court today to possession with intent to distribute 400 grams or more of fentanyl.
Marleni Difo, 27, a Dominican national, was arrested on November 2, 2018, when members of the DEA Drug Task Force executed a federally authorized warrant to search her single-family residence and seized plastic bags containing 3.2 kilograms of a mixture of fentanyl and heroin and 403 grams of a mixture containing both heroin and carfentanil.
Also seized were three digital scales and numerous other items used in the packaging and distribution of narcotics, including sealed bottles of lactose powder, a white powder used as a cutting agent for narcotics, including fentanyl and cocaine.
Difo’s guilty plea before U.S. District Court Judge Mary S. McElroy is announced by United States Attorney Aaron L. Weisman and DEA Special Agent in Charge Brian D. Boyle.
Difo is scheduled to be sentenced on February 21, 2020.
The case is being prosecuted by Assistant U.S. Attorneys Milind M. Shah and Paul F. Daly, Jr.
United States Attorney Aaron Weisman and DEA Special Agent in Charge Brian D. Boyle thank the Providence Police Department for their assistance in the investigation of this matter.
The Rhode Island DEA Drug Task Force is comprised of agents and law enforcement officers from the DEA, ATF, IRS, Homeland Security Investigations, Rhode Island State Police and Cranston, East Providence, Pawtucket, Providence, Newport, South Kingstown, Warwick, West Warwick and Woonsocket Police Departments.
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Pataskala couple plead guilty to defrauding federal student loan programs, Medicaid, SNAP, HUD, as well as committing tax fraudRead the Press Release
COLUMBUS, Ohio – A Pataskala couple have pleaded guilty to conspiring to defraud multiple federal programs by committing student-aid fraud, tax-return fraud, and Medicaid and SNAP fraud. One defendant also pleaded guilty to making a false statement to the U.S. Department of Housing and Urban Development and witness tampering, while the other pleaded guilty to committing bank fraud. They caused a total loss of more than half a million dollars.
Damien M. Johnson, 39, pleaded guilty in U.S. District Court this morning before U.S. District Judge Edmund A. Sargus, Jr. to one count of conspiracy to commit student loan fraud and one count of bank fraud. Kisha C. Hollins-Johnson, 41, pleaded guilty in August to one count of conspiring to commit student loan fraud and theft of government funds, committing student loan fraud, making a false statement to HUD, witness tampering and two counts of theft of government money.
According to their pleas, from at least 2011 through 2017, the defendants recruited more than five people to provide their personal information to apply for college admissions at Columbus State Community College.
All of the students fraudulently enrolled in online classes at the college by lying on their financial aid forms. Hollins-Johnson completed coursework for all of the students. The students were enrolled in the same courses and chose the same or similar topics for their papers.
When Johnson was not making satisfactory academic progress, Hollins-Johnson created fake documents, including medical records, for use in an academic appeals process in order for Johnson to remain eligible to receive financial aid. She fabricated a letter purporting to be from a doctor that claimed Johnson had sickle cell anemia. The doctor did not write the note, and in fact was a gynecologist.
In total, the U.S. Department of Education issued nearly $220,000 to Columbus State and as refunds to the defendants. Any amount of student loan above the cost of tuition and fees was given to the defendants.
Johnson also committed bank fraud by obtaining seven checks totaling at least $73,000 from an 87-year-old victim who had dementia. Johnson used the money on a variety of personal transactions, including $7,150 at a pawnshop, $1,798 at Gucci, $1,558 at Louis Vuitton, $1,182 in payments to vehicle dealers and $2,500 at a law firm.
Hollins-Johnson submitted false tax returns by claiming fake defendants and educational credits. Johnson contacted the IRS pretending to be at least one of the other taxpayers and delivered portions of the tax refunds to other individuals.
The couple also fraudulently obtained SNAP food stamp benefits by claiming they were each single when they were married. As part of the conspiracy, Hollins-Johnson submitted false letters verifying Johnson’s employment for food stamp eligibility.
In 2014, Hollins-Johnson submitted an application for a $200,000 home loan insured by the FHA. When she submitted the loan application, she used fabricated employment documents that stated she worked for the State of Ohio. Additionally, she fabricated a form the mortgage company sent to a person they believed was a Human Relations Manager to verify employment.
After investigators searched Hollins-Johnson’s residence, she engaged in witness tampering. She engaged in a scheme that involved creating a fake Facebook account and using an app that allows users to change their caller ID and apply a voice changer feature to call a witness in the case. The scheme led to an in-person meeting, where Hollins-Johnson instructed the witness not to talk with law enforcement.
As part of their pleas, the defendants agree to pay more than $450,000 in restitution.
Bank fraud is punishable by up to 30 years in prison. Witness tampering is punishable by up to 20 years in prison. Theft of government money is punishable by up to 10 years in prison. Congress sets the maximum statutory sentence. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Bryant Johnson, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation; Brad Geary, Special Agent in Charge, U.S. Department of Housing and Urban Development Office of Inspector General; John F. Woolly, Special Agent in Charge, U.S. Department of Education Office of Inspector General; and officials with the Fairfield County Job & Family Services Fraud and Benefit Recovery division announced the plea entered into today before U.S. District Judge U.S. District Judge Edmund A. Sargus, Jr. Assistant United States Attorney Peter K. Glenn-Applegate is representing the United States in this case.
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Owner of Long Island Painting Firm Sentenced to Prison for Tax EvasionRead the Press Release
A Long Island, New York, business owner was sentenced to 12 months and one day in prison today for tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to documents filed in this case and statements made in court, Warren J. Krotz, 62, of Huntington, New York, owned and operated W. Krotz Enterprises Inc. (WKEI), a professional painting business that provided services throughout Long Island. From 2010 through 2016, Krotz evaded both his individual income and employment tax liabilities. During this time, Krotz cashed approximately $6 million in checks at several check-cashing facilities. These checks were gross receipts of WKEI, but Krotz did not report the amounts on WKEI’s corporate income tax returns. Krotz also paid approximately $2 million in cash wages to employees, and did not withhold and pay over to the Internal Revenue Service (IRS) approximately $300,000 in employment taxes that were due.
Additionally, Krotz admitted to receiving approximately $3 million in income that he did not report on his personal tax returns. In total, Krotz admitted to causing a tax loss to the IRS of approximately one million dollars.
In addition to the prison term, U.S. District Judge Denis R. Hurley sentenced Krotz to serve three years of supervised release and to pay restitution of $1,031,633 to the IRS.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Jessica Moran and Kathryn Sparks of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Oregon Securities Broker Charged with Investment Churning and Tax EvasionRead the Press Release
PORTLAND, Ore.—A 13-count indictment was filed in federal court today charging James W. Millegan, 62, a former Oregon securities broker, with investment account churning and tax evasion.
Millegan, who currently resides in McMinnville, Oregon, owned and operated J.W. Millegan, Inc., a commission-based investment advisory business serving clients primarily located in the Portland and Salem, Oregon metropolitan areas.
According to the indictment, beginning in March 2012 and continuing until May 2017, Millegan is alleged to have churned the investment accounts of 12 different clients. Churning occurs when a securities broker engages in excessive buying and selling in a client’s account to generate commissions benefitting the broker with no reasonable expectation the client will benefit from the trading. When accounts are churned, clients are prevented from earning investment profits on the money they pay in excessive fees and commissions.
Millegan’s alleged actions generated more than $2.5 million in trading commissions and cost these 12 investors more than $4.3 million in estimated unrealized investment gains.
Additionally, between July 2006 and September 2016, Millegan is alleged to have willfully evaded payment of more than $3.3 million in personal income taxes. To conceal approximately $3.7 million in commissions from the IRS, Millegan allegedly transferred funds to hidden bank accounts and filed false financial statements.
This case was investigated by the FBI and IRS-Criminal Investigation and is being prosecuted by Seth D. Uram, Assistant U.S. Attorney for the District of Oregon.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Indictment AttachedNew York Man Pleads Guilty to Aggravated Identity Theft and Conspiracy to Commit Bank FraudRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announces the guilty plea of MYLES NICHOLAS, age 32, of Jamaica, New York, to charges of conspiracy to commit bank fraud and aggravated identity theft. NICHOLAS entered his plea on November 20, 2019 before U.S. District Judge Martin L.C. Feldman.
According to court documents, members of the Louisiana Financial Crimes Task Force received information that NICHOLAS and his co-defendant, Terrence Nealy, would be flying to New Orleans from New York on the morning of June 21, 2019. Jefferson Parish Sheriff’s Office deputies and U.S. Secret Service agents initiated surveillance at New Orleans International Airport, where they observed NICHOLAS and Nealy arrive on their flight from New York’s JFK Airport. NICHOLAS and Nealy then rented a car and immediately drove to Baton Rouge. While in Baton Rouge, the defendants attempted to open a fraudulent credit card account at two Best Buy stores using a stolen identity. They then traveled back to New Orleans where they were arrested by state and federal law enforcement.
As to the charge of conspiracy to commit bank fraud, NICHOLAS faces a maximum penalty of 30 years in prison, a $1,000,000.00 fine, and up to five years of supervised release. As to the aggravated identity theft, NICHOLAS must receive a mandatory sentence of two years in prison that must be served consecutively to any other sentence. He may also be fined up to $250,000.00, and he may receive up to one year of supervised release. Sentencing is set for Wednesday, March 18, 2020, before Judge Feldman.
U.S. Attorney Strasser praised the agencies that contributed to this conviction, which represents a coordinated effort of federal and state law enforcement authorities within the Louisiana Financial Crimes Task Force. The Task Force includes representatives from the U.S. Secret Service, the U.S. Postal Inspection Service, Homeland Security Investigations, U.S. State Department, Internal Revenue Service, Social Security Administration-Office of Inspector General, the Defense Criminal Investigative Service, the Louisiana Attorney General’s Office, the Jefferson Parish Sheriff’s Office, the New Orleans Police Department, the Covington Police Department, Hammond Police Department, Kenner Police Department, Louisiana State Police, Mandeville Police Department, Slidell Police Department, St. Bernard Parish Sheriff’s Office, St. John The Baptist Sheriff’s Office, St. Tammany Parish Sheriff’s Office, Tangipahoa Parish Sheriff’s Office, and the St. Tammany Parish District Attorney’s Office. Assistant United States Attorney Matthew R. Payne is in charge of the prosecution.
New Orleans Westbank Man Pleads Guilty to Distributing HeroinRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that BRYAN JOSEPH, age 39, of Harvey, Louisiana, pled guilty on November 20, 2019 to distributing heroin in Jefferson Parish.
According to court documents, on October 14, 2018, deputies with Jefferson Parish Sheriff’s Office were dispatched to a McDonald’s restaurant located in Harvey, Louisiana. When deputies arrived, they were advised that an unresponsive male was found in a bathroom stall. Deputies found an uncapped needle, needle cap, bent spoon and corner of a cellophane bag near the body. Detectives reviewed the store’s video surveillance and saw the victim arrive ae the restaurant on a bicycle and enter the bathroom. The victim never exited the bathroom. Subsequently, Jefferson Parish Sheriff’s Office contacted the Federal Bureau of Investigation who then assisted with the investigation. Through the investigation, agents determined that JOSEPH sold the victim a quantity of heroin prior to the victim’s death. Jefferson Parish Forensic Center conducted an autopsy, which concluded that the victim died as a result of the toxic effects of heroin and fentanyl.
Agents furthered their investigation by purchasing heroin from JOSEPH on October 23, 2018 and October 25, 2018. On October 31, 2018, agents executed a search warrant at JOSEPH’s residence and located approximately 68.8 grams of heroin, approximately 156 grams of marijuana, digital scales and sandwich bags.
JOSEPH faces a maximum sentence of 20 years imprisonment, a possible fine of $1,000,000, and at least 3 years of supervised release. U.S. District Judge Jane Triche Milazzo scheduled JOSEPH to be sentenced on March 20, 2020.
U.S.Attorney Strasser praised the work of the Federal Bureau of Investigation, New Orleans Gang Task Force and Jefferson Parish Sheriff’s Office. Assistant United States Attorney Nolan D. Paige is in charge of the prosecution.
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New Haven Crack Dealer Sentenced to Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that OSVALDO SAEZ, 32, of New Haven, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 24 months of imprisonment, followed by three years of supervised release, for his role in a New Haven drug trafficking ring.
According to court documents and statements made in court, in June 2017, the FBI’s New Haven Safe Streets/Gang Task Force initiated an investigation into a New Haven drug trafficking organization headed by Jermayne Butler. The investigation, which included physical surveillance, 13 controlled purchases of narcotics, and court-authorized wiretaps on multiple phones, revealed that members of the organization were distributing crack cocaine and oxycodone in the New Haven area.
Saez received distribution quantities of crack cocaine from another member of the conspiracy and sold the drug to customers in New Haven.
Saez, Butler and several other members of the organization were arrested on federal criminal complaints on February 6, 2018. On February 8, 2018, a grand jury in New Haven returned a 30-count indictment charging 19 individuals with various offenses.
Saez has been detained since January 16, 2019, when his bond was revoked. On July 30, 2019, he pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, cocaine base. (“crack”).
Butler pleaded guilty to the same offense on August 9, 2019. He awaits sentencing.
This matter is being investigated by the FBI’s New Haven Safe Streets/Gang Task Force, which includes members from the New Haven Police Department, Milford Police Department, West Haven Police Department and Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorneys Patrick F. Caruso and David C. Nelson.
New Charges Filed Against Wake Forest Investment Adviser Including Securities Fraud, Money Laundering and Wire Fraud and Wire FraudRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that a federal grand jury has returned an Indictment charging ANTHONY WAYNE MARCH, 48, of Wake Forest, North Carolina, with one count of Securities Fraud; three counts of Wire Fraud; one count of Bankruptcy Fraud; one count of Obstruction of Bankruptcy Case; three counts of False Oaths; and four counts of Money Laundering.
The Indictment alleges that the defendant, ANTHONY WAYNE MARCH (“MARCH”), operated the non-profit 501(c)(3) entity Asset Trader, located in Rolesville, NC, from in or between 2012 to 2015. Asset Trader was a purported non-profit tax-exempt company formerly known as CGA Exchange or The CGA Exchange, Inc. (herein “Asset Trader”). MARCH represented that Asset Trader offered educational services to professionals and taxpayers in the area of exit planning. Asset Trader’s stated educational mission allowed it to obtain classification as a 28 U.S.C. § 501(c)(3) tax-exempt non-profit organization.
Asset Trader used its §501(c)(3) tax-exempt status to solicit tax-deductible donations in exchange for charitable gift annuities (“CGAs”) and to recruit referral sources to obtain assets from potential donors. Through Asset Trader, MARCH and his co-conspirators engaged and executed what is commonly known as a “Ponzi” scheme to defraud investors by inducing them to invest with Asset Trader.
During the course of the scheme, MARCH solicited at least 22 victims to invest over $8,100,000 in charitable gift annuities and other products offered by Asset Trader. MARCH and Asset Trader sold these securities to victims as retirement or exit planning vehicles classified as donations to MARCH’S § 501(c)(3) tax-exempt non-profit organization. MARCH did not utilize any of the victim’s money for charitable purposes, rather, he spent the money on “Ponzi” payments, his own lavish lifestyle, and expenses of the scheme.
MARCH faces the following penalties on the charged offenses: For Securities Fraud, not more than 20 years imprisonment; for Wire Fraud, not more than 20 years imprisonment on each count; for Bankruptcy Fraud, not more than 5 years imprisonment for each count; for False Bankruptcy Declaration, not more than 5 years imprisonment; for Obstruction of Bankruptcy and Concealing Records, not more than 5 years imprisonment; for False Oaths, not more than 5 years; for Money Laundering, not more than 10 years. MARCH also faces over a $1 Million in fines, as well as further forfeiture of property.
An Indictment is an allegation of a crime. The defendant is presumed under the law to be innocent until proven guilty.
The Internal Revenue Service Criminal Investigation Division (IRS-CI), and the North Carolina Secretary of State, Securities Division conducted the investigation in this matter. The Office of the U.S. Bankruptcy Administrator for the Eastern District of North Carolina provided substantial assistance. Assistant United States Attorney Ethan Ontjes, Special Assistant United States Attorney Brian Behr, and Special Assistant United States Attorney Kevin Harrington represent the United States.
New Britain Resident Admits Possessing Child Pornography, Violating Supervised ReleaseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Jason J. Molina, Acting Special Agent in Charge of Homeland Security Investigations (HSI) in Boston, today announced that BRIAN HERNDON, 45, of New Britain, waived his right to be indicted and pleaded guilty yesterday in New Haven federal court to one count of possession of child pornography. Herndon also admitted that he violated the conditions of his supervised release from a prior federal conviction.
According to court documents and statements made in court, on January 12, 2009, Herndon was sentenced in New Haven federal court to 72 months of imprisonment, followed by five years of supervised release, for possessing child pornography. He was released from federal prison in May 2014. On September 1, 2015, U.S. Probation officers searched Herndon’s residence and seized a laptop. Subsequent forensic examination of the laptop revealed approximately 2,269 images and 74 videos of child pornography.
Herndon is scheduled to be sentenced by U.S. District Judge Michael P. Shea in Hartford on February 24, 2020, at which time Herndon faces a maximum term of imprisonment of 20 years for possessing child pornography, and up to two years in prison for violating the conditions of he supervised release.
Herndon is released on bond and remains under court supervision pending sentencing.
This investigation is being conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). The case is being prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Motorcycle gang member heads to prison for illegally possessing ammunitionRead the Press Release
CORPUS CHRISTI, Texas – A 37-year-old Corpus Christi resident who was involved in a shooting at a local convenience store has been sentenced following his conviction of unlawful ammunition possession, announced U.S. Attorney Ryan K. Patrick.
Billy Boortz, a member of the Homietos outlaw motorcycle gang and former member of the Mexican Mafia gang, pleaded guilty July 24.
Today, U.S. District Judge David S. Morales handed him a 110-month sentence to be immediately followed by three years of supervised release. At the hearing, the court heard additional evidence that Boortz intentionally tried to murder the victim in this case. In handing down the sentence, the court noted Boortz fired his pistol directly at the victim, not in the air or at the ground, and that the offense would have constituted attempted second degree murder.
On May 11, Boortz was engaged in a physical altercation with another man. He then returned to a vehicle, retrieved a weapon and fired several rounds at the victim, hitting the victim’s vehicle and striking the victim in the foot.
Agents were able to identify Boortz using video footage. He had been taken into custody at a local hospital on May 26, where he was treated for a gunshot wound he received after another shooting.
Boortz was previously convicted of multiple felony offenses, including aggravated assault, aggravated assault on a public servant, evading arrest with a vehicle and unlawful possession of a firearm by a felon. He is, therefore, prohibited from possessing firearms or ammunition per federal law.
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.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Corpus Christi Police Department Gang Unit conducted the investigation.
The case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.
Assistant U.S. Attorney David Paxton prosecuted the case.
Monsanto Agrees to Plead Guilty to Illegally Spraying Banned Pesticide at Maui FacilityRead the Press Release
CRIMINAL INFORMATION PLEA AGREEMENT FACTUAL BASIS DPA CONDITIONS OF PROBATIONLOS ANGELES – Monsanto Company has agreed to plead guilty to illegally using a banned pesticide known as Penncap-M on research crops at one of its facilities on the Hawaiian island of Maui.
In court documents filed today in United States District Court in Honolulu, Monsanto agreed to plead guilty to a misdemeanor offense of unlawfully spraying a banned pesticide – specifically methyl parathion, the active ingredient in Penncap-M –which the company used on corn seed and research crops at its Valley Farm facility in Kihei, Hawaii in 2014.
Monsanto admitted in the court documents that it used Penncap-M, even though the company knew its use was prohibited after 2013 pursuant to a “cancellation order” issued by the Environmental Protection Agency. The company further admitted that, after the 2014 spraying, it told employees to re-enter the sprayed fields seven days later – even though Monsanto knew that workers should have been prohibited from entering the area for 31 days.
The documents filed today also include a deferred prosecution agreement related to two felony counts of unlawfully storing an acute hazardous waste. Pursuant to the agreement, Monsanto will pay $10 million – a $6 million criminal fine and $4 million in community service payments to Hawaiian government entities. The government agreed to dismiss the felony charges in two years if Monsanto abides by the agreement, which includes paying a total of $10.2 million, successfully completing a two-year period of compliance with the agreement’s terms, and maintaining a comprehensive environmental compliance program at all of its facilities in Hawaii to ensure compliance with all federal environmental laws.
“The illegal conduct in this case posed a threat to the environment, surrounding communities and Monsanto workers,” said United States Attorney Nick Hanna. “Federal laws and regulations impose a clear duty on every user of regulated and dangerous chemicals to ensure the products are safely stored, transported and used.”
In a statement of facts filed in court today, Monsanto admitted that it knowingly used, transported and stored Penncap-M in violation of federal law. The pesticide “had to be managed as an acute hazardous waste in compliance with the Resource Conservation and Recovery Act (RCRA),” which prohibited the storage or transportation of the pesticide without a permit after 2013.
From March 2013 through August 2014, even though the pesticide was on the company’s lists of chemicals that needed disposal, Monsanto stored 160 pounds of Penncap-M hazardous waste at its Molokai facility, which under RCRA made Monsanto a “Large Quantity Generator” of hazardous waste.
In addition to spraying the banned pesticide at one of its three facilities on Maui, Monsanto also stored a total of 111 gallons of Penncap-M at Valley Farm and sites known as Maalaea and Piilani. Just like on Molokai, the storage of Penncap-M at the three Maui sites made Monsanto a “Large Quantity Generator” of acute hazardous waste at the three locations, according to court documents. Furthermore, when it transported Penncap-M to its Valley Farm site in 2014, the company violated federal law when it failed to use a proper shipping manifest to identify the hazardous material and when it failed to obtain a permit to accept hazardous waste at that site.
“To protect human health and the environment, pesticides must be properly applied and stored,” said Special Agent-in-Charge Jay M. Green of EPA’s criminal enforcement program in Hawaii. “EPA will continue to work in close partnership with our state and local counterparts to bring cases against those who knowingly threaten the health and safety of Hawaiian communities.”
In addition to $6 million criminal fine, Monsanto has agreed to make a total of $4 million in community service payments. The five Hawaiian agencies that each will receive $800,000 are: the Hawaii Department of Agriculture, to create and fund a Pesticide Disposal Program and for training and education purposes; the Hawaii Department of Land and Natural Resources, Maui Division of Aquatic Resources, for use in its marine programs; the Hawaii Department of Health, Hazardous Waste Branch, for use in its training and education programs; the Hawaii Department of Health, Environmental Management Division, for water quality monitoring, water quality improvements, and training and education purposes; and the Kahoolawe Island Reserve Commission, for use in the clean-up of the island of Kahoolawe.
In relation to the criminal count Monsanto to which has agreed to plead guilty, the company has agreed to be on probation for two years and to pay the maximum possible fine of $200,000.
This case is the result of an investigation by the U.S. Environmental Protection Agency, Criminal Investigation Division.
This matter is being prosecuted by Mark A. Williams and Dennis Mitchell, who are special attorneys appointed by the Attorney General pursuant to 28 USC § 515. The United States Attorney’s Office for the District of Hawaii was recused from this investigation.
Mobile County Man Sentenced to 15 Years for Disharging a Firearm in Attemped CarjackingRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Johnothan L. Lavender, 31, of Mobile, Alabama, was sentenced in federal court for discharging a firearm in furtherance of a crime of violence. Lavender pleaded guilty to the charge in August of 2019.
According to court documents filed in connection with his guilty plea, Lavender admitted that on December 26, 2017, he was approached by the victim, who wanted to buy a quantity of marijuana while at a gas station on Cottage Hill Road in Mobile. Lavender agreed to sell the victim marijuana and told the victim to follow him. Lavender got into a vehicle being driven by his co-defendant, Ryan D. Tandy-Ross, 23, of Prichard. The victim followed behind the defendants in his vehicle. Once on Jones Road, Tandy-Ross stopped the vehicle and Lavender stepped out. Lavender told the victim that the marijuana was hidden in the bushes. Lavender and Tandy-Ross then attempted to carjack the victim. In the process, the victim was shot. During the attempted carjacking, Lavender presented a Ruger .40 caliber pistol. The victim, who sped away from the assailants, sustained a gunshot wound that was painful but was not life-threatening.
United States District Court Judge Terry F. Moorer sentenced Lavender to a term of 180 months’ imprisonment. Lavender will serve a term of 5 years on supervised release upon the completion of his sentence, during which time he will undergo substance abuse treatment. Lavender was not ordered to pay a fine, but was ordered to pay a $100 special assessment. For his role in the offense, Tandy-Ross previously had pleaded guilty to a carjacking charge. On October 17, 2019, Judge Moorer sentenced Tandy-Ross to 70 months’ incarceration—a downward departure based on Tandy-Ross’s substantial assistance in the United States’ investigation and prosecution of the matter.
The case was investigated by the Mobile Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gina S. Vann.
Mexican citizen sentenced to prison for meth conspiracy schemeRead the Press Release
LAREDO – A 36-year-old Mexican man has been ordered to federal prison for his role in importing approximately 32 kilograms of meth inside hidden compartments of a vehicle, announced U.S. Attorney Ryan K. Patrick. Raul Edrey Manrique Bernal pleaded guilty Aug. 8.
Today, U.S. District Judge Diana Saldana handed Bernal a 51-month sentence to be immediately followed by five years of supervised release. At the hearing, the court heard additional evidence that described Bernal’s involvement in the conspiracy. She noted Bernal was educated and had a career in Mexico, adding that his involvement in drug trafficking was pure madness. The court commented that the desire for easy money caused him to make a bad decision.
On April 15, Bernal attempted to enter into the United States via the Juarez-Lincoln Bridge #1 Port of Entry, at which time a K-9 alerted to the odor of narcotics emitting from the vehicle. Authorities conducted a search and located 63 bundles discreetly hidden in aftermarket compartments in both rear quarter panels and in the bumper. The substance later tested positive for meth with a total weight of 32 kilograms.
The street value of the drugs is approximately $160,000.
Bernal has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investiagtions and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Anthony J. Evans prosecuted the case.
Methamphetamine Dealer Sentenced in Federal CourtRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Christopher Aaron Roddenberry, 30, of Milton, Florida, was sentenced to 15 years imprisonment in federal court this morning for his participation in a conspiracy to possess with intent to distribute methamphetamine ice. The indictment alleged that the conspiracy continued during 2016 and involved the distribution of more than 50 grams of methamphetamine, which established that the minimum mandatory sentence in the case would be at least 10 year imprisonment. Roddenberry pled guilty to the conspiracy charge in March of 2019.
At the sentencing hearing, United States District Court Judge Terry F. Moorer imposed the 15 year sentence, and ordered that Roddenberry will serve a term of 5 years of supervised release after he serves his term of imprisonment. The judge ordered that Roddenberry will undergo testing and treatment for drug abuse during his supervision. No fine was imposed, but the judge ordered that Roddenberry would pay a $100 special assessment.
The case was investigated by the Baldwin County Sheriff’s Office, the Bay Minette Police Department, and the Federal Bureau of Investigation. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Members of the 69ers Motorcycle Club Sentenced to Life in Prison for Murdering Chapter President of Rival Outlaws Motorcycle ClubRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Christopher Brian Cosimano, a/k/a “Durty,” (31, Gibsonton) and Michael Dominick Mencher, a/k/a “Pumpkin,” (53, Tarpon Springs) to life in federal prison plus ten years, and life in prison plus five years, respectively, for conspiracy to commit murder in aid of racketeering, murder in aid of racketeering, and related firearms offenses. A federal jury found Cosimano and Mencher guilty on August 12, 2019.
Cosimano and Mencher were indicted, along with three co-defendants who later pleaded guilty, on May 22, 2018.
According to testimony and court documents, Cosimano and Mencher were members of the 69’ers Motorcycle Club, a criminal organization engaged in acts of violence and narcotics distribution.
In 2017, the 69’ers Motorcycle Club was entangled in an increasingly violent feud with the Outlaws Motorcycle Club. The feud escalated, culminating with the murder of Paul Anderson, President of the Cross Bayou Chapter of the Outlaws Motorcycle Club, on December 21, 2017. On that date, Cosimano, Mencher, and their three co-defendants stalked Anderson for several miles down the Suncoast Parkway. Cosimano and Mencher rode their motorcycles with their faces covered and license plates obscured.
After following Anderson for miles, Cosimano and Mencher pulled alongside his truck and shot him repeatedly at the busy intersection of Suncoast Parkway and State Road 54, during rush hour. After the murder, the defendants took steps to cover up the crime, including removing identifying markings from and disassembling their motorcycles.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pasco Sheriff’s Office, the Hillsborough County Sheriff’s Office, the Tampa Police Department, the Pinellas County Sheriff’s Office, the St. Petersburg Police Department, and the State Attorney’s Office for the Sixth Judicial Circuit. It was prosecuted by Assistant United States Attorneys Carlton C. Gammons and Natalie Hirt Adams.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Media Advisory – Dr. Javaid Perwaiz Case UpdatesRead the Press Release
Media Advisory -- Dr. Javaid Perwaiz Case Updates
CASE NAME: United States v. Javaid Perwaiz, Criminal Case No. 2:19-mj-594
COURT: U.S. District Court for the Eastern District of Virginia, Norfolk Division
CASE SUMMARY: On November 7, the U.S. Attorney’s Office for the Eastern District of Virginia filed a criminal complaint charging the defendant, Dr. Javaid Perwaiz, with one count of health care fraud and one count of making false statements relating to healthcare matters for conduct alleged to have occurred between 2010 and October 2019. According to allegations detailed in court documents, for nearly a decade, Dr. Perwaiz performed unnecessary gynecological surgeries on women – including hysterectomies, dilation & curettages, removal of ovaries and fallopian tubes, and others – on unsuspecting patients and submitted materially false, fraudulent, and fictitious claims to two health care benefit programs, seeking reimbursement for these surgeries.
CASE STATUS: The defendant was arrested and made his initial appearance in court on November 8. The court held a detention hearing on November 14, and ordered that the defendant be detained in custody pending further proceedings in the case.
PUBLIC OUTREACH: To ensure that members of the public, including current and former patients of Dr. Perwaiz, are informed of developments in this ongoing case, the U.S. Attorney’s Office has established a page on its website, available at the following link: https://www.justice.gov/usao-edva/united-states-v-javaid-perwaiz. The website currently includes a copy of the criminal complaint and supporting affidavit summarizing the charges filed against the defendant.
In addition, the website includes the following guidance for current or former patients:
FBI TIPS: Current and former patients should contact the Federal Bureau of Investigation at 1-800-CALL-FBI or https://www.fbi.gov/tips if they would like to share information.
MEDICAL RECORDS: Current or former patients seeking a copy of their medical records should email: [email protected] with their full name and dates of service.
Please Note: FBI is not in possession of all medical records maintained by Dr. Perwaiz’s practice.
The public is reminded that a criminal complaint contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
McAllen doctor imprisoned for health care fraud scamRead the Press Release
McALLEN – A 46-year-old local man has been ordered to federal prison following his conviction of health care fraud and aggravated identity theft, announced U.S. Attorney Ryan K. Patrick. Eduardo Carrillo, of McAllen, pleaded guilty Nov. 20, 2015.
Today, U.S. District Judge Randy Crane handed Carrillo a 24-month sentence and ordered he pay $25,955 in restitution. The sentence will also be followed by three years of supervised release.
At the time of plea, Carrillo admitted he caused others to bill Medicare for patients who were actually deceased. Carrillo submitted fraudulent documentation to a billing company, and the company would file claims with Medicare for reimbursement of physician services. Records law enforcement obtained proved the patients were deceased at the time he alleged to have provided services to the patients.
Carrillo also admitted to engaging in a scheme with his co-conspirator and assistant, Martha Uribe Medrano, 52, of Edinburg, to solicit and obtain illegal kickbacks in exchange for patient referrals. Carrillo and Medrano solicited and obtained cash in exchange for referrals of Medicare beneficiaries. He admitted he used the Medicare number and personal information of a patient in the exchange. Medrano pleaded guilty to illegal remunerations and was previously sentenced for her role in the scheme.
Carrillo was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The U.S. Department of Health and Human Services‐Office of Inspector General and the FBI conducted the investigation. Assistant U.S. Attorneys Michael Day and Andrew Swartz are prosecuting the case.
McAlester Man Sentenced to 235 Months for Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Duane Allyn Bundy, age 40, of McAlester, Oklahoma, was sentenced to 235 months’ imprisonment and 5 years of supervised release for Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A). The charges arose from an investigation by the McAlester Police Department, the Oklahoma Bureau of Narcotics and Dangerous Drugs, the Oklahoma District 18 Drug & Violent Crime Task Force, and the Drug Enforcement Administration.
The Superseding Indictment alleged that on or about January 30, 2019, in the Eastern District of Oklahoma, the defendant knowingly and intentionally possessed with intent to distribute 50 grams or more of methamphetamine (actual), a Schedule II controlled substance.
This investigation began on January 30, 2019 when a McAlester police officer attempted to initiate a traffic stop. The defendant refused to stop, fleeing in his car and then running on foot, discarding his jacket as he ran. He was apprehended a short time later and his jacket was found to have methamphetamine in its pockets. He was arrested and indicted in federal court on February 13, 2019.
United States Attorney Brian J. Kuester said, “Methamphetamine has caused the death of countless lives in Oklahoma and across the country. People who choose to play a role in the trafficking of this deadly drug are profiting from addiction, destruction, and death. This investigation and prosecution gave us the opportunity to work with several agencies from different jurisdictions. Together we are able to maximize our efforts to combat drug trafficking and the violent crime that accompanies it.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Special Assistant United States Attorney Courtney Jordan represented the United States.
Maryland Man Pleads Guilty to Murder, Drug Trafficking and Obstruction of JusticeRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Christopher Johnson, age 31, previously residing in Baltimore, Maryland, pleaded guilty before Chief United States District Court Judge Christopher C. Conner to one count of conspiracy to commit Hobbs Act robbery; three counts of use of a firearm during a crime of violence resulting in death; one count of interstate travel to commit a murder for hire; one count of conspiracy to kill a witness to a federal offense to prevent communication to a federal law enforcement officer; three counts of killing a witness to a federal offense to prevent communication to a federal law enforcement officer; and one count of felon in possession of a firearm.
According to United States Attorney David J. Freed, the charges were the result of a two and a half year investigation into three murders that occurred in a barn on June 25, 2016, on a property along Welsh Run Road in Mercersburg, Franklin County. The murders were drug related and one of the victims was providing information regarding several of the defendants and others to federal/state law enforcement drug task forces in Maryland. The individuals involved in the murders also joined with others to obstruct the grand jury’s investigation and to locate and kill an individual believed to be assisting federal investigators with the murder investigation.
Johnson, along with ten coconspirators, were charged in a superseding indictment on December 20, 2018, with murder, drug trafficking, and obstruction of justice.
Charged in the superseding indictment were:
- Kevin Coles, age 34, Hagerstown, Maryland;
- Devin Dickerson, age 31, Hagerstown;
- Torey White, age 30, Waynesboro, Pennsylvania;
- Jerell Adgebesan, age 32, Baltimore, Maryland;
- Kenyatta Corbett, age 38, Hagerstown;
- Michael Buck, age 30, Hagerstown;
- Nicholas Preddy, age 29, Baltimore;
- Johnnie Jenkins-Armstrong, age 22, Baltimore;
- Terrance Lawson, age 31, Baltimore; and
- Tyrone Armstrong, age 30, Baltimore.
Joshua Davis, age 30, previously pled guilty to participating in the conspiracy to locate and kill an individual believed to be cooperating with federal authorities in the investigation of the triple murders. Davis was recently sentenced by United States District Court Judge John E. Jones, III to 100 months’ imprisonment. Several other individuals who were separately indicted on charges of obstructing the federal investigation into the triple murders have also pled guilty and are awaiting sentencing.
The following federal, state and local law enforcement agencies participated in the investigation: Drug Enforcement Administration Harrisburg Resident Office, Pennsylvania State Police, Chambersburg, Pennsylvania State Police, Troop H, Franklin County Drug Task Force, Franklin County Adult Probation, Pennsylvania State Probation and Parole, Hagerstown Police Department Criminal Investigation Division, Drug Enforcement Administration Hagerstown Resident Office, Washington County Narcotics Task Force, Drug Enforcement Administration Baltimore District Office, Strike Force Group 1, Maryland State Police Homicide Unit, Baltimore Police Department Narcotics, Fugitive And Homicide Units, Baltimore County Police Department Narcotics and Gang Unit, Federal Bureau of Investigation Evidence Management Unit, Quantico, VA, US Marshal’s Service Harrisburg, PA and Phoenix, AZ, Franklin County District Attorney’s Office, United States Attorney’s Office, District Of Maryland, and The Washington County State’s Attorney’s Office.
Assistant United States Attorney William A. Behe, Organized Crime Drug Enforcement Task Force, and Senior Litigation Counsel Michael Consiglio are prosecuting the case.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This prosecution is also part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF) identified as “Retribution foe Welsh Run”. OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
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 several of these offenses is life imprisonment or the possibility of the death penalty, 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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Maryland Man Found Guilty of Burglarizing Schools throughout the DistrictRead the Press Release
WASHINGTON – Nakym Sheffield, 41, of Germantown, MD was found guilty of burglarizing four separate elementary schools in the District of Columbia between March and May 2018, U.S. Attorney Jessie K. Liu announced.
On November 20, 2019, Sheffield was found guilty of four counts of second-degree burglary, six counts of second-degree theft, and three counts of credit card fraud, following a trial in the Superior Court of the District of Columbia. The Honorable Michael O’Keefe scheduled sentencing for January 28, 2020.
According to the government’s evidence at trial, on March 20, 2018, Sheffield entered Bridges Elementary School located at 100 Gallatin St. NE at dismissal and wandered the halls of the school until finding an empty classroom stealing a teacher’s wallet from inside. The teacher was unaware of the theft until she received an alert from her bank notifying her that her card was being used at a local Safeway store.
On April 11, 2018, Sheffield entered two more elementary schools in the Anacostia area of D.C., Ketcham Elementary School at 1919 15th St SE and D.C. Prep Public Charter School at 1409 V St SE during dismissal. Sheffield wandered the halls of the school until finding empty classrooms and stole credit cards and money from teachers who were assisting students during parent pick up. Sheffield again charged the teachers credit cards for over $500.00 in VISA gift cards and other purchases at local Safeway stores.
On May 3, 2018, Sheffield entered Stanton Elementary School at 2701 Naylor Road SE, at morning drop-off and stole credit cards and cash from a school administrator and a teacher. He then went to a Target Store in District Heights, MD where he attempted to purchase $400.00 in VISA gift cards.
After an extensive investigation by the Metropolitan Police Department, obtaining surveillance video and financial records evidencing the very distinct Modus Operandi, law enforcement identified Nakym Sheffield as the perpetrator of the burglary spree. Sheffield was arrested on a D.C. Superior Court arrest warrant on May 17, 2018, and subsequently charged. After a six-day trial, the jury convicted Sheffield on each count of the indictment.
In announcing the verdict, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department. She also acknowledged the work of those who handled the case at the U.S. Attorney’s Office, including paralegal specialists Crystal Waddy and Allison Daniels, Leif Hickling and Taylor Davis from the Litigation Technology Unit, Assistant U.S. Attorney Chrisellen Kolb from the Appellate Division, Assistant U.S. Attorney’s Emile Thompson and Janani Iyengar who investigated and indicted the case, and Assistant U.S. Attorney’s Nicole McClain and Andrea Coronado who presented the case at trial. Finally, she expressed appreciation to the District of Columbia Public Schools for their cooperation with the case.
Market Logistics, Inc. Executives and Employees Sentenced for Their Roles in a Scheme to Defraud BB&T BankRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that yesterday in federal court, MICHAEL G. CALE, 60, of Simpsonville, South Carolina, MICHAEL J. LANDRY, 56, of Simpsonville, South Carolina, MICHAEL R. BRIGEVICH, 60, of Traveler’s Rest, South Carolina, and EDWIN PENA, 61, of Fort Pierce, Florida, were sentenced for their involvement in a scheme to defraud Branch Bank and Trust Company out of more than $5,000,000.00. United States District Judge Timothy M. Cain sentenced CALE to 42 months imprisonment. LANDRY was sentenced to 30 months imprisonment. BRIGEVICH and PENA each received a time-served sentence followed by 5 years of supervised release.
The defendants were executives and employees of Market Logistics, Inc. (MLI), a Greenville, South Carolina-based corporation involved in the arbitrage business. MLI was owned by CALE, who served as the Chief Executive Officer. LANDRY served as the Vice President of Sales, BRIGEVICH served as the Chief Financial Officer, and PENA served as the Accounts Payable Manager.
The evidence at sentencing established that MLI entered into a lending relationship with BB&T. The loan was structured as an asset-backed revolving line of credit, with MLI’s accounts receivable serving as collateral for the loan. Pursuant to the loan agreement, BB&T would loan MLI a maximum amount equal to 85% of MLI’s eligible accounts receivable. MLI was required to prepare and submit reports to BB&T reflecting the accounts receivable balance that qualified as collateral under the loan agreement.
The Defendants concocted and participated in a scheme and artifice to defraud whereby they falsified their accounts receivable balances to increase the amount of funds available through the line of credit. They employed several nefarious accounting methods, including a “lapping scheme,” whereby invoices for sales transactions were listed as accounts receivable and not paid, when in fact they had already been paid. The defendants then misapplied the payments to older invoices. The defendants also created fraudulent sales invoices for sales that never occurred, and listed those false sales as accounts receivable. When the fraud was discovered in August of 2015, MLI’s reported accounts receivable balance was $7.8 million, when in fact only ten invoices totaling approximately $436,324.69 were actually outstanding.
BB&T’s loss exceeded $5 million dollars. Prior to sentencing, the defendants made payments to BB&T totaling $1,412,000. They were ordered to pay restitution for the remaining loss amount of $3,610,260.57.
The Federal Bureau of Investigation conducted the investigation of this case. Assistant United States Attorney Toby W. Lathan represented the United States.
Man Pleads Guilty to Federal Gun OffenseRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced today that OLIN D. GRANT, JR., a resident of Jefferson Parish, pled guilty on November 20, 2019 to Counts 2 and 3 of a four-count indictment, pursuant to a plea agreement with the Government. GRANT was indicted by a Federal Grand Jury on June 20, 2019 for Count 1, Possession with the Intent to Distribute Marijuana; Count 2, Possession of a Firearm in Furtherance of a Drug Trafficking Crime; Count 3, Possession of a Machine gun; and Count 4, Possession of a Non-Registered Firearm.
Today, OLIN D. GRANT, JR. pled guilty as charged to Count 2, Possession of a Firearm in Furtherance of a Drug Trafficking Crime, in violation of 18 U.S.C. § 924(c)(1)(A). At sentencing for this count, OLIN D. GRANT, JR. faces a mandatory minimum sentence of 5 years up to life imprisonment, along with a $250,000 fine and up to 5 years supervised release following any term of imprisonment. This sentence must run consecutively to all other sentences imposed upon the defendant. GRANT also pled guilty as charged to Count 3, Possession of a Machine gun, in violation of 18 U.S.C. § 922(o). At sentencing for this count, OLIN D. GRANT, JR. faces a maximum term of imprisonment of 10 years, along with a $250,000 fine and up to 3 years supervised release.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safe for everyone. Former Attorney General Jeff Sessions made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, then Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN was launched in 2001.
The case was investigated by the Jefferson Parish Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorneys
Melissa Bücher and Brittany Reed of the Violent Crime/Strike Force Unit of the U.S. Attorney’s Office.
Man Charged with Defrauding Retiree Out of Her Retirement SavingsRead the Press Release
U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office announced that Michael Jerome Atkins, 60, was arraigned today by U.S. Magistrate Judge Patrick M. Hunt, in Fort Lauderdale, on mail fraud and aggravated identity theft charges.
According to allegations in the indictment, between July 2015 and October 2015, Atkins devised a scheme to defraud the victim of her entire retirement savings, totaling over $400,000. Atkins promised the victim that if she loaned him her retirement savings he would use it for his business, All Points Aviation and Associates, LLC and would repay her the money within two months. The disbursement checks were made jointly payable to Atkins’ business All Points Aviation and Associates LLC and the victim, who was to cosign the checks. The funds were disbursed in three installments. With respect to the third installment check, which was the largest, and was drawn in the amount of $317,916.02, the indictment alleges that Atkins forged the victim’s signature and deposited the funds into his business account - which he controlled. The indictment further alleges that Atkins used the funds for his personal benefit and did not repay the funds to the victim.
An indictment is a charging instrument containing accusations. A defendant is presumed innocent unless proven guilty, beyond a reasonable double, in a court of law.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI in this matter. The case is being prosecuted by Assistant U.S. Attorney Lois Foster-Steers.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
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.
Madera County Residents Indicted for Dealing Heroin that Caused Overdose DeathRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Georgia Nicole Dean, 36, and Ashley Michelle Hill, 32, both of Coarsegold, charging them with selling heroin that resulted in the overdose death of another Coarsegold resident, U.S. Attorney McGregor W. Scott announced. Dean and Hill are also charged with conspiring to distribute the heroin that resulted in the victim’s death.
According to court documents, on Aug. 22, Dean and Hill drove to the victim’s residence and sold heroin to him. It is alleged that the victim’s death resulted from the use of the mixture or substance containing heroin.
This case is the product of an investigation by the Madera County Sheriff’s Office, the Fresno Police Department, and the Drug Enforcement Administration. Assistant U.S. Attorneys Kathleen A. Servatius and Justin J. Gilio are prosecuting the case.
If convicted, the drug distribution resulting in death charge and the conspiracy to distribute drugs resulting in death charge both carry a mandatory minimum statutory penalty of 20 years in prison up to life in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Local rapper heads to prison for meth traffickingRead the Press Release
HOUSTON – A 43-year-old Houston man has been ordered to federal prison following his conviction of possession with intent to distribute meth, announced U.S. Attorney Ryan K. Patrick. Mack Biggers pleaded guilty Sept. 6.
Today, U.S. District Judge Alfred Bennett handed Biggers a 180-month sentence to be immediately followed by five years of supervised release. The sentence includes an upward variance due to Biggers extensive criminal history. At the hearing, the court heard additional information, including a presentation detailing how Biggers committed his narcotics offenses.
For several months in 2017 and 2018, Biggers acquired and sold various narcotics including meth and illegally possessed firearms. Biggers also produced and starred in rap videos that glamorized his illegal activities.
On Feb. 21, 2018, authorities conducted surveillance and subsequent arrest of Biggers as he attempted to flee from police at an apartment complex located on the 14700 block of West Oaks Plaza Drive in Houston. He had thrown bags down as he fled. Law enforcement recovered them, which were found to contain hundreds of pills made from various substances including meth and heroin.
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.
The Houston Police Department and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney John Michael Lewis is prosecuting the case.
Lincoln Man Sentenced for Possession of MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that on November 20, 2019, Senior United States District Court Judge Richard G. Kopf sentenced Jeremy Deen, 34, of Lincoln, Nebraska, to 120 months’ imprisonment for possession of methamphetamine with intent to distribute. Following the prison term, Deen will serve five years on supervised release.
Investigators were conducting surveillance at an apartment complex in Lincoln, Nebraska. During their surveillance on August 31, 2018, investigators observed Deen walking near a detached garage. Deen had active warrants for his arrest, so investigators contacted him. Investigators located more than 55 grams of methamphetamine inside the backpack Deen was wearing, in addition to other drug paraphernalia. A search warrant was later served of the detached garage. Investigators found a stolen motorcycle, ammunition, and another 1.6 grams of methamphetamine.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Lexington Man Sentenced to 60 Months for Trafficking AcetylfentanylRead the Press Release
LEXINGTON, Ky.— Aaron Antonio Evans, 29, of Lexington, was sentenced to 60 months in federal prison on Thursday, by United States District Judge Karen K. Caldwell, after pleading guilty to trafficking more than 10 grams of acetylfentanyl.
According to Evans’ plea agreement, he admitted to trafficking more than 10 grams of acetylfentanyl on February 6, 2019. Acetylfentanyl is an extremely powerful analogue of the opioid fentanyl.
Evans pleaded guilty in June 2019.
Under federal law, Evans must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for four years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Tommy Estevan, Special Agent in Charge for ATF; and Lawrence Weathers, Chief of the Lexington Police Department, jointly announced the sentence.
The investigation was conducted by the ATF and Lexington Police Department. The United States was represented by Assistant U.S. Attorney David C. Kiebler.
This case was prosecuted as part of the Organized Crime and Drug Enforcement Task Force’s (OCDETF) Operation Synthetic Opioid Surge (SOS), a Department of Justice initiative designed to target trafficking of dangerous synthetic opioids.
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Lexington Man Pleads Guilty to Firearm and Drug ChargesRead the Press Release
LEXINGTON, Ky. - Tevye T. Jones, 21, of Lexington, pleaded guilty Thursday to illegal possession of a firearm and cocaine, before U.S. District Judge Karen K. Caldwell.
Jones admitted to possessing a Glock .357 caliber pistol, during a traffic stop. According to his plea agreement, Jones also admitted that during the stop officers found a small bag of cocaine.
Jones was indicted on the charges in May 2019. In 2017, Jones was previously convicted of the felony Robbery Second Degree, in the Fayette Circuit Court.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Tommy Estevan, Acting Special Agent in Charge for ATF; and Lawrence Weathers, Chief of the Lexington Police Department, jointly announced the guilty plea.
The investigation was conducted by the ATF and Lexington Police Department. The United States was represented by Cynthia T. Rieker.
Jones is scheduled to be sentenced on Feb. 18, 2020. He faces up to 10 years in prison and a maximum fine of $250,000. However, any sentence will be imposed by the Court after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The PSN program was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Lewiston Man Pleads Guilty to Conspiracy to Cultivate and Distribute MarijuanaRead the Press Release
Portland, Maine: A Lewiston man pleaded guilty today in federal court in Portland to conspiring to manufacture 100 or more marijuana plants and to distribute 100 or more kilograms of marijuana, U.S. Attorney Halsey B. Frank announced.
According to court records, Richard Daniels, 54, actively participated in a drug trafficking organization that operated in Androscoggin County and elsewhere between 2015 and February 2018. Members of the conspiracy cultivated and distributed large quantities of marijuana in violation of federal law, and under the cover of—but in violation of—Maine’s Medical Use of Marijuana program. The organization cultivated marijuana at numerous locations in Androscoggin County and distributed marijuana to people who were not participants in the medical marijuana program, including out-of-state customers. Daniels was involved with the distribution of bulk quantities of marijuana to the conspiracy’s customers, including those from outside of Maine.
On February 27, 2018, law enforcement officers searched Daniels’ residence and an adjacent garage. During the search, agents seized distributable quantities of marijuana, hash oil, approximately 41 sheets of butane hash oil, a money counter and other indicia of drug trafficking.
Daniels faces at least 5 years and up to 40 years in prison and a fine of up to $5,000,000. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The U.S. Drug Enforcement Administration and the IRS Criminal Investigation Division investigated the case.
The prosecution is a result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) Program, a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate and prosecute high-level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
Leader of Violent Drug Trafficking Gang from North Philadelphia Sentenced to 30 Years in PrisonRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that Juan Jarmon, 32, of Philadelphia, Pennsylvania, was sentenced to thirty years’ imprisonment and six years’ supervised release by United States District Judge Paul S. Diamond for crimes committed while he was the leader of a violent drug trafficking group operating out of the Norman Blumberg Apartments public housing facility in North Philadelphia.
Following a jury trial in March 2019, the defendant was convicted on 23 counts, including conspiracy to distribute 280 grams or more of crack cocaine and distribution of crack cocaine within 1,000 feet of public housing (a drug-free zone). Jarmon controlled drug sales in various areas of the Blumberg Apartments in 2013 and 2014. Throughout the period that the drug trafficking conspiracy operated, Jarmon and other members of his gang were responsible for distributing thousands of grams of crack cocaine throughout this community.
Jarmon’s group obtained bulk crack and cocaine; cooked and packaged crack cocaine into bundles; hired, fired, and supervised shift sellers and lookouts; levied taxes on members and customers; and provided protection from other drug trafficking groups. The shift sellers were the daily workers employed by the leaders to sell crack cocaine in the locations controlled by the group, while the lookouts assisted other members of the group by alerting them to the presence of law enforcement and directing customers to the shift sellers. In order to ensure around-the-clock sales of crack cocaine, Jarmon threatened rivals who disrupted his drug trafficking business, and physically assaulted shift sellers. In one instance, the defendant violently attacked a female drug dealer in order to obtain drug proceeds, cracking her head against a table, requiring hospitalization.
“To anyone engaged in drug trafficking and violence, I say this: find another line of work. Because if you don’t, you will face federal prosecution and considerable jail time for your efforts,” said U.S. Attorney McSwain. “Here, Jarmon and his co-defendants used firearms, robbed rival drug dealers, and used intimidation, threats, and violence to further their ‘business’ of moving poison on our streets. Philadelphia residents can rest easier knowing that Jarmon is behind bars and his drug gang has been destroyed.”
“We are privileged to have collaborated with our law enforcement partners in the investigation, arrest, and successful prosecution of Juan Jarmon,” said Acting Philadelphia Police Commissioner Christine Coulter. “With his conviction and attendant sentencing, this violent recidivist offender will be unable to continue inflicting harm upon the residents of the Blumberg Apartments and the surrounding community.”
“Jarmon coordinated a vast network of drug dealers selling crack cocaine 24 hours a day in the former Norman Blumberg Apartment Complex. Jarmon was responsible for the distribution of thousands of grams of crack cocaine throughout his community, and used violence and intimidation to further his drug trafficking activities,” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “For the drug-traffickers like Jarmon that prey on the most vulnerable members of our society, the federal criminal penalties are severe.”
“For years, Juan Jarmon and his drug crew used intimidation and violence to maintain control of the Blumberg Apartments complex and surrounding area,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “The FBI and our law enforcement partners are determined to help free our communities from the stranglehold of narcotics traffickers. The city of Philadelphia is safer with Jarmon behind bars.”
This case was investigated by the United States Attorney’s Office, Federal Bureau of Investigation, and Drug Enforcement Administration in collaboration with the Philadelphia Police Department and Philadelphia District Attorney’s Office. It is being prosecuted by Assistant United States Attorneys Jerome Maiatico and Yvonne Osirim.
Las Vegas Woman Indicted for Sending Threatening Letters to Her Mother's Former Supervisor and LawyersRead the Press Release
LAS VEGAS, Nev. – A federal grand jury returned an indictment charging Latonia Smith, 25, of Las Vegas, with five counts of sending threatening communications through the U.S. Mail, U.S. Attorney Nicholas A. Trutanich for the District of Nevada announced.
According to court filings, Smith is alleged to have sent anonymous threatening letters between September 30, 2018, and October 1, 2019 to her mother’s former supervisor and to attorneys and staff defending a lawsuit filed against her mother’s former employer. As an example, one of the letters threatened: “your throat will be slit you will be recorded as the blood spills from your neck and just as you gasp to take your final undeserving breath three bullets will be placed right through your skull.”
Smith was arrested on November 1, 2019, in connection with the charges and is presently detained awaiting arraignment.
This case was the product of an investigation by the U.S. Postal Inspection Service with assistance from the Las Vegas Metropolitan Police Department and the Reno Police Department. The case is being prosecuted by Assistant United States Attorney Steven Myhre.
Smith faces a maximum sentence of 25 years, if convicted on all counts. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
An indictment is an accusation by a federal grand jury and is not evidence of guilt. The defendant should be presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Lakeland Woman Convicted of Fraudulently Obtaining Federal Disaster Relief Following Hurricane IrmaRead the Press Release
Tampa, FL – A federal jury has found Karen Latrice Houston (37, Lakeland) guilty of three counts of theft of government funds. She faces a maximum penalty of 10 years in federal prison on each count. A sentencing date has not yet been set.
Houston was indicted on May 8, 2019.
According to evidence presented at trial, in September 2017, Houston filed a false application with the Federal Emergency Management Agency (FEMA) to obtain disaster relief benefits following Hurricane Irma. In the application, Houston falsely claimed that a home located in a Lakeland mobile home park was her primary residence, and that the home was damaged during Hurricane Irma. In fact, Houston had been evicted from the mobile home park in early 2017. In connection with her application for disaster aid, Houston misrepresented to a FEMA inspector that she still resided at the address that she had listed on her FEMA application. As a result of those misrepresentations, Houston obtained $21,875.57 in FEMA funds and benefits to which she was not entitled.
The FEMA funds and benefits Houston received were intended for critical needs, home repair, replacement of personal property, and shelter for persons displaced from their residence due to Hurricane Irma.
This case was investigated by the U.S. Department of Homeland Security – Office of Inspector General. It is being prosecuted by Assistant United States Attorney Jennifer L. Peresie.
Korean National Sentenced to 10 Years in Prison for Role in Foreign Exchange Trading ScamRead the Press Release
OAKLAND – Jin K. Chung was sentenced to 120 months in prison for money laundering, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The sentence was handed down by the Honorable Jeffrey S. White, U.S. District Judge.
On September 3, 2019, Chung, 56, of Seoul, Korea, pleaded guilty to laundering money he obtained from a foreign exchange trading scam. According to his guilty plea, Chung acknowledged more than 400 victims lost approximately $60,302,886.59 as a result of the scam. Chung admitted that, in 2003, he and codefendant Peter Son, 47, of Portland, Oregon, started two companies, SNC Asset Management, Inc., and SNC Investments, Inc., both headquartered in Pleasanton, California. Chung admitted that he falsely advertised both companies as highly successful in foreign exchange trading. Further, Chung promised potential investors they would receive annual investment returns of between 24% and 36%. Chung knew that these representations were false and made with the intention of attracting individuals to invest in the two companies. Chung acknowledged that hundreds of investors opened accounts and deposited money into the two companies based upon the fraudulent representations. Chung and Son deposited the clients’ funds into bank accounts they controlled. While directing employees of the companies to send monthly statements to the investors that falsely reported accrued earnings, Chung regularly cashed checks or arranged wire transfers in amounts over $10,000 for his own benefit. By October 2008, the defendants depleted the funds in the companies’ accounts and closed both businesses without advance notice to employees or clients.
Chung originally was charged in connection with this scheme on May 29, 2009. The defendant was extradited from the Republic of Korea in February of 2019. Chung was charged by information on July 8, 2019. The information alleged a single count of engaging in monetary transactions in property derived from money laundering, in violation of 18 U.S.C. § 1957. Chung pleaded guilty to the charge.
Son is currently serving a prison term of 180 months for his role in the scheme. On April 9, 2010, Son pleaded guilty to conspiracy to commit wire fraud and conspiracy to engage in monetary transactions with the proceeds of wire fraud, in violation of 18 U.S.C. §§ 1349 and 1956(h), respectively. The Honorable D. Lowell Jensen, U.S. District Judge, ret., sentenced Son to the prison term on July 30, 2010, and on October 14, 2011, ordered Son to pay $60,302,886.59 in restitution to his victims.
Assistant U.S. Attorney Jonathan U. Lee is prosecuting the case with the assistance of Jessica Rodriguez Gonzalez and Kathleen Turner. The prosecution is the result of an investigation by the Securities and Exchange Commission, U.S. Commodities Futures Trading Commission, the FBI and the IRS.
Kern County and Los Angeles County Residents Charged with Possessing and Illegally Importing 372 Pounds of Methamphetamine into the United StatesRead the Press Release
FRESNO, Calif. — A federal grand jury returned an indictment today against Pedro Alegra Jr., 21, of Delano, and Edgardo Rosales-Andrade, 23, of Paramount, charging them with conspiracy to possess with the intent to distribute methamphetamine and possession with the intent to distribute methamphetamine. Rosales-Andrade was also charged with the illegal importation of narcotics, U.S. Attorney McGregor W. Scott announced.
“The investigation of international drug trafficking operations is a top priority for Homeland Security Investigations,” said Tatum King, special agent in charge for Homeland Security Investigations (HSI) San Francisco. “HSI in the Central Valley employs all of its resources to prevent these dangerous criminal networks from threatening our communities.”
According to court documents, on Nov. 15, HSI and Customs and Border Patrol agents tracked a cargo truck carrying 312 pounds of methamphetamine to Delano, in Kern County where Alegra and Rosales-Andrade were waiting. Agents obtained a search warrant for the truck and residence and found an additional 60 pounds of methamphetamine in the residence. The methamphetamine was concealed in furniture in the cargo truck.
This case is the product of an investigation by HSI and the Bakersfield Police Department. Assistant U.S. Attorney Thomas Newman is prosecuting the case.
If convicted, Alegra and Rosales-Andrade face a minimum statutory penalty of 10 years in prison and up to a lifetime prison term and a fine of up to $10 million. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Jury Convicts Gang Members of Drug-Related ShootingRead the Press Release
Tampa, Florida – A federal jury has found Leon Williams (30) and Reginald Jones, Jr. (25), both of Tampa, guilty of conspiring to distribute cocaine, crack cocaine, and marijuana, and discharging a firearm during and in relation to that conspiracy. Each faces a minimum mandatory penalty of 10 years, and up to life, in federal prison. A sentencing date has not yet been set.
According to evidence presented during the two-week trial, Williams and Jones are members of the Bird Gang, a violent street-level drug trafficking organization that has operated in Tampa Park for years and is responsible for multiple homicides and shootings. The Bird Gang principally sold drugs at two locations, the Tampa Park housing complex and a nearby boarding house known as the “Blue House,” which the Bird Gang had essentially taken over. On May 29, 2018, in the middle of the afternoon, Williams and Jones shot at people whom they believed had been communicating with law enforcement about the Bird Gang’s drug sales at the Blue House.
This case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Tampa Police Department, and the Florida Department of Law Enforcement. It is part of a year-long effort to dismantle the Bird Gang, so far resulting in charges against 30 individuals. It is being prosecuted by Assistant United States Attorney Michael M. Gordon.
This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation and was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Jury Convicts Felon of Conspiracy to Commit Interference with Commerce by Robbery, Attempted Interference with Commerce by Robbery, Discharge of A Firearm During A Crime of Violence and Felon in Possession of A FirearmRead the Press Release
RENO, Nev. – After a six-day trial, a federal jury found Eric Romero-Lobato, 39, guilty of conspiracy to commit interference with commerce by robbery, attempted interference with commerce by robbery, discharge of a firearm during a crime of violence and felon in possession of a firearm related to a March 4, 2018 attempted robbery of a restaurant in Sparks, announced United States Attorney Nicholas A. Trutanich for the District of Nevada.
United States District Judge Larry R. Hicks presided over the trial and scheduled a sentencing hearing on March 31, 2020. The maximum penalty is life imprisonment with a mandatory minimum term of imprisonment of 10 years.
According to court documents and evidence presented at trial, Romero-Lobato, armed with a 9mm semi-automatic pistol, attempted to rob a Restaurant in Sparks, Nevada with another man. During the attempted robbery, he fired a shot inside the restaurant. Romero-Lobato was not apprehended until May 14, 2018, when police responded to a report of an armed carjacking in Reno. Romero-Lobato led the police on a high speed chase before wrecking the car he stole. When police apprehended Romero-Lobato, they recovered a 9mm semi-automatic pistol. Through forensics, the firearm was determined to be the same firearm discharged in the robbery attempt. The attempted robbery case was investigated by the Sparks Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Earlier, in July 2019, a separate jury found Romero-Lobato guilty of one count of carjacking, one count of use of a firearm during and in relation to a crime of violence, and one count of felon in possession of a firearm for the May 14, 2018 carjacking incident.
Romero-Lobato is in custody and is awaiting a jury trial on a separate indictment, which charges that Romero-Lobato is not a United States citizen and illegally reentered the United States. The case is being investigated by the Department of Homeland Security. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Assistant United States Attorneys Megan Rachow and Penelope Brady prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN), a nationwide program by the Department of Justice that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Department announced the reinvigoration of PSN. For more information about PSN, visit www.justice.gov/usao-nv.
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Indianapolis woman indicted for illegal purchase of 36 firearms on eight separate occasions from Indianapolis area gun storesRead the Press Release
INDIANAPOLIS – United States Attorney Josh J. Minkler announced today that Iva Patrick, 30, of Indianapolis, was indicted by a grand jury for charges of unlawfully providing false information in connection with a purchase of a firearm.
“If you choose to lie on the federal forms when purchasing a firearm, you must face the consequences,” said Minkler. “Firearms purchased illegally, or for other people, are often purchased for no other reason, but to commit crimes. The Department of Justice and the U.S. Attorney’s Office is committed to reducing gun violence and enforcing federal firearm laws through Project Guardian.”
In July of 2019, investigators from the Indianapolis Crime Gun Intelligence Center (CGIC) initiated an investigation into the suspected firearms trafficking activities of Iva Patrick. Investigators were able to confirm that Patrick purchased at least 36 firearms from federal firearms licensees (FFLs) in the Indianapolis area on at least eight separate occasions between June 15, 2019 and August 9, 2019.
Patrick’s then boyfriend, Jeremy Evans, who is a convicted felon and the father of her three children, instructed Patrick to purchase all of the firearms. Evans was unable to purchase the firearms himself, due to numerous previous felony convictions, and he directed Patrick to purchase the guns for him. Patrick completed the required paperwork for each gun purchase, indicating that the guns were for her, when in fact the guns were being purchased for Evans.
Evans was present in the parking lot of the FFLs during several of the firearms purchases and he specifically told Patrick which firearms to purchase. Once Patrick secured the firearms purchases from the FFLs, the firearms were initially stored at an Indianapolis residence. On August 21, 2019, CGIC investigators executed a search warrant at the Indianapolis residence, where receipts for numerous firearms purchased by Patrick were located and numerous empty firearms boxes, including one firearms box belonging to one of the firearms purchased by Patrick were found. However, no actual firearms purchased by Patrick were recovered during the search at the Indianapolis residence.
Following the search warrant, nine firearms purchased by Patrick were recovered in Chicago, Illinois. Of those nine recovered firearms, it was determined by the National Integrated Ballistic Information Network (NIBIN) that one of the guns purchased by Patrick was used in an unrelated homicide in Chicago where at least four persons were shot and one person died from a gunshot wound. Several firearms purchased by Patrick were recovered in connection with a carjacking, narcotics dealings, other shootings, and in the hands of convicted felons. Investigators are actively working to recover all firearms purchased by Patrick.
Evans was charged by criminal complaint on October 21, 2019, for his participation in a home invasion robbery, which occurred on August 19, 2019. Firearms were stolen from the robbery victim’s residence. Evans was also charged with brandishing a firearm during a crime of violence.
Last week, Attorney General Barr announced Project Guardian, an initiative that focuses on reducing gun violence and enforcing federal firearm laws. This case is a prime example of the Project Guardian initiative at work in the Southern District of Indiana. Law enforcement utilized crime gun intelligence to investigate this case and utilized various investigative resources including the ATF National Tracing Center to run a trace on all recovered guns.
For more information on Project Guardian, see the Attorney General’s memorandum at: https://www.justice.gov/ag/project-guardian-memo-2019/download.
This case was investigated by CGIC which is comprised of investigators from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Indianapolis Metropolitan Police Department (IMPD).
“This indictment should make clear that those who knowingly put firearms in the hands of prohibited persons are also responsible for how those firearms are used,” stated Jonathan McPherson, Special Agent in Charge of ATF’s Columbus Field Division. “ATF will continue to work with our law enforcement partners to stop the flow of guns from legal possession into illegal commerce.”
According to Assistant U.S. Attorney Jeremy A. Morris, who is prosecuting the case for the government, Patrick faces up to 10 years in prison, if convicted.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the office’s firm commitment to partner with federal and local law enforcement agencies to prosecute individuals committing violent crimes involving firearms. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 2.3.
Illegal Alien Who Used Another Person’s Name and Social Security Number Sentenced to PrisonRead the Press Release
A man who used another person’s Social Security number to get a job was sentenced today to more than six months in federal prison.
Ernesto Gonzalez-Casas, age 46, a citizen of Mexico illegally present in the United States and residing in Williamsburg, Iowa, received the prison term after an October 2, 2019, guilty plea to two counts of misuse of a social security number.
At the guilty plea, Gonzalez-Casas admitted that on July 12, 2017, and September 5, 2017, he used someone else’s name and social security number on state and federal tax forms when completing employment forms in Williamsburg, Iowa.
On December 7, 2018, Gonzalez-Casas came to the attention of law enforcement when he tried to transfer title to a vehicle under an alias name at the Iowa County Treasurer’s Office. The alias name was in the Iowa Department of Transportation records system as possibly being a stolen identity as reported by the true victim. Gonzalez-Casas told law enforcement officers that he was a United States citizen born in Texas and falsely claimed he had previously filed a report in Iowa County of the identity theft of his alias name. Gonzalez-Casas’ fingerprints showed he was not the person he claimed to be. Instead, immigration records showed he was a Mexican citizen illegally present in the United States and not a United States citizen as he claimed. On June 17, 2019, Gonzalez-Casas was convicted in the Iowa District Court for Iowa County of making a false report to law enforcement and sentenced to 180 days’ imprisonment.
Gonzalez-Casas was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Gonzalez-Casas was sentenced to six months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Gonzalez-Casas is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations; the Iowa Department of Transportation, and the Iowa County Sheriff’s Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-67.
Follow us on Twitter @USAO_NDIA.
Husband and Wife Sentenced in Child Sex Abuse Case: Husband Receives 40 Years in Prison; Wife Receives 10 YearsRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announces today that Chief United States District Judge Kristi K. DuBose sentenced defendant Mack Doak, 51, to 40 years imprisonment and his wife, co-defendant Jaycee Doak, 42, to 10 years imprisonment after a federal jury found them guilty at trial in May 2019 on all charges in a child exploitation case spanning multiple jurisdictions. The defendants faced up to life in prison for their crimes. As part of their sentences, the judge ordered that the defendants receive mental health and sex offender treatment as directed by the U.S. Probation Office, register as sex offenders under the Sex Offender Registration and Notification Act, and pay restitution totaling $225,000. The judge further ordered Mack Doak to pay a $30,900 mandatory special assessment and to be on supervised release for 15 years after finishing his prison term. The judge also ordered Jaycee Doak to pay a $25,600 mandatory special assessment and to be on supervised release for 5 years after finishing her prison term.
After the sentencing hearings, United States Attorney Moore said, “The investigators and prosecutors did their job. A jury of the defendants’ peers found them guilty beyond a reasonable doubt. The Court has imposed substantial sentences of imprisonment. Our criminal justice system has worked as best we could expect. Still, we take little comfort in any of this because the damage to young lives here is so severe and so undeserved. We cannot make these children whole again. Something precious has been taken from them that we are powerless to give back. What we can do is stand together against the horror of child sex abuse and always do our best to protect children from evil whenever possible. This case is a reminder that we must always be vigilant when the safety of our children is at risk.”
Federal Bureau of Investigation (FBI) Special Agent in Charge James Jewell stated, “Crimes against children are always a priority but when the men and women of the FBI can assist our state and local partners bring a sense of justice to these young victims then this prosecution is a success. The sentences handed down today from the courts will hopefully deter a predator from hurting a child in the future.”
On August 31, 2018, a federal grand jury for the Southern District of Alabama indicted the defendants on one count of violating 18 U.S.C. § 2423(a), a statute that criminalizes the transportation of minors across state lines with intent to engage in criminal sexual activity. The grand jury returned a 9-count superseding indictment on March 29, 2019, charging the defendants with six counts of violating 18 U.S.C. § 2423(a) and Mack Doak with three counts of violating 18 U.S.C. § 2241(c), a statute that criminalizes aggravated sexual abuse by prohibiting the crossing of a state line with intent to engage in a sexual act with a child under the age of twelve.
The jury heard three days of evidence during the trial, which began on May 20, 2019. According to the evidence introduced at trial, three child victims were abused for years by the defendants. The victims testified at trial that Mack Doak had sexually abused them in Texas, Florida, and Alabama and that they had disclosed the sexual abuse to Jaycee Doak, who was herself physically and verbally abusive and had tried to cover-up the sexual abuse.
In 2012, Mack Doak began sexually abusing Victims 1-3 in Rosharon, Texas. Victim 1 testified that she told Jaycee Doak when the abuse started in Texas that Mack Doak had raped her. Jaycee Doak insisted that Victim 1 not tell anyone because disclosure of the abuse would be ruinous. One witness testified that Jaycee Doak told her about Victim 1’s rape allegation and that Jaycee Doak told the witness not to tell anyone. The witness testified that she urged Jaycee Doak to report the abuse and take Victim 1 to a doctor but that Jaycee Doak did neither. Another witness testified that she herself was raped by Mack Doak years earlier and that she had disclosed the abuse to the defendants in 2012. Another witness testified that around March 2013, after allegations of Mack Doak’s sexual abuse had begun to surface, Mack Doak had a pistol in his hand at his home and had threatened suicide, telling the witness, “I did something really bad and I’m not going to jail for it.”
In early 2014, the defendants moved from Rosharon to Butler, Alabama and then in August 2014 relocated to Pinellas Park, Florida, where Mack Doak continued to sexually abuse the victims. The defendants moved in November 2016 to Thomasville, Alabama, where the abuse persisted. The jury heard testimony that Mack Doak would periodically call a victim into his bedroom, close the door, and play loud music, and that the victim would appear upset after exiting the room. One witness testified that he saw Mack Doak sexually abusing Victim 2 one morning at the defendants’ home in Thomasville, and that Mack Doak saw him and told him to return to bed and not discuss what he had seen. After less than a year in Thomasville, the defendants moved to Monroeville, Alabama, where the sexual abuse continued and Jaycee Doak’s physical and verbal abuse escalated.
In early February 2018, the Monroeville Police Department received information about the sexual abuse. On February 4, a police investigator and a Monroe County Department of Human Resources caseworker visited the victims, who disclosed the abuse and indicated that they were unsafe in the defendants’ care. The next day, the defendants were arrested on state charges for rape, incest, and sexual abuse. On February 8, the victims were forensically interviewed at a child advocacy center in Brewton, Alabama and elaborated upon the abuse. Victim 1 told her interviewer that she had been sexually abused alongside a mat in the basement area of the defendants’ home in Monroeville. On February 9, the police executed a search warrant at the defendants’ home and seized physical evidence, including the mat. The police later took buccal samples from Mack Doak and the victims and sent the samples and the mat to an FBI laboratory in Quantico, Virginia for testing. An FBI forensic examiner testified at trial that the likelihood ratios were very high that the mat contained Mack Doak’s semen and Victim 1’s DNA. Moreover, a pediatrician who had physically examined the victims testified that they showed signs of having been sexually abused.
The victims wrote to the Court before today’s sentencing hearings. They described how the defendants’ abuse had irreparably altered their lives.
The FBI, the Monroeville Police Department, and the Alabama Law Enforcement Agency investigated the case. Assistant United States Attorneys Sinan Kalayoglu, Kacey Chappelear, Maria Murphy, and Scott Gray prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Guardians Project continues fighting federal program fraud in MontanaRead the Press Release
BILLINGS—The Guardians Project anti-corruption task force today welcomed top officials from the U.S. Department of Interior and U.S. Department of Health and Human Services Offices of Inspector General to a meeting about Montana’s efforts to fight federal program fraud, U.S. Attorney Kurt Alme said.
DOI Inspector General Mark Lee Greenblatt and HHS Assistant Inspector General of Investigations Christian J. Schrank joined U.S. Attorney Alme and members of the Guardians task force to review the program and to recognize the contribution of tribal law enforcement. The Guardians Project investigates and prosecutes persons attempting to use federal funds for private gain.
Since 2013, the Guardians Project has resulted in more than 120 felony convictions, with 85 percent of those convicted receiving some term of incarceration, $3.6 million in fines, $16.5 million in restitution, $311,000 in forfeitures and $1 million in civil judgments. Prosecuted crimes include conspiracy, bribery, fraud, embezzlement, extortion, obstruction of justice, money laundering, blackmail and tax evasion.
“The Guardians Project is committed to making sure federal funds are used for the benefit of the intended recipients. In addition to prosecuting misuse of federal funds, task force members have provided training to Montana’s tribal governments and communities on how to properly administer grant funds, how to report misuse and how the reporters of misuse can be protected under whistleblower statutes,” U.S. Attorney Alme said.
“I want to thank our dedicated task force members and tribal law enforcement and tribal officials for working together to root out theft and to make sure the money is used as intended to help fund important programs, like Head Start,” U.S. Attorney Alme said. “In particular, I would like to recognize Ken Trottier, supervisory criminal inspector for the Fort Peck Tribes, for his exemplary work.”
The Guardians task force presented Ken Trottier with its first ever Guardians Shield Award in recognition of his work and collaboration with the task force.
"The Department of the Interior Office of Inspector General has a long-standing commitment to the Guardians Task Force. We look forward to continuing our joint efforts with the task force partners to identify fraud, hold wrongdoers accountable, and ensure Native American communities receive the intended funds and services," said Mark Lee Greenblatt, Inspector General for the Department of Interior Office of the Inspector General.
“Federal health and human services programs are vital to communities across Montana. Therefore, it is imperative program funds are used for their intended Indian Country purposes,” said Christian J. Schrank, Assistant Inspector General for Investigations at the Office of Inspector General of the U.S. Department of Health and Human Services. “We will continue working with our federal and tribal law enforcement partners in the Guardians Project to address fraud, theft, and misuse of funds.”
This past year, some of the Guardians Project investigations included the following cases:
- An overtime pay scheme in the Blackfeet Tribe’s Head Start program led to the convictions of six persons, including managers and the former tribal chairman. The theft of $174,000 hurt children enrolled in Head Start by prohibiting book purchases, barring the ability to obtain teaching materials and cutting food nutrition programs.
- The former chairwoman and the former treasurer of the Montana Native Women’s Coalition Board were charged in an indictment accusing them of stealing federal grant funds to make unapproved trips to Las Vegas and to receive other unauthorized benefits. The indictment is merely an accusation and the defendants are presumed innocent until proven guilty. The Lame Deer-based coalition helps Native American victims of domestic and sexual violence.
- An ex-law enforcement officer for the Fort Peck Tribes was convicted and sentenced to six months in prison for stealing $40,000 from a tribal program intended to help youth and for failing to pay taxes. The former officer proposed creating a Family Justice Center to help troubled youth but spent the money on personal items and services. The former officer also was ordered to pay $40,000 restitution to the tribe and $18,050 to the IRS.
- The former president of the Northern Cheyenne Tribe pleaded guilty to wire fraud and false claims conspiracy in a travel scheme in which he admitted receiving $20,000 in improper reimbursements.
The Guardians Project, led by the U.S. Attorney’s Office, works with the Office of Inspector General from DOI, HHS, the Department of Justice, the Department of Agriculture, Department of Education, the FBI, IRS’s Criminal Investigation Division and the Environmental Protection Agency.
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Georgia Man Sentenced for Role in Drug ConspiracyRead the Press Release
Abingdon, VIRGINIA – A Georgia man, who was part of a conspiracy that trafficked methamphetamine, heroin, oxycodone, cocaine, and other drugs from Georgia into Southwest Virginia, was sentenced last week to 120 months in federal prison, United States Attorney Thomas T. Cullen and Virginia Attorney General Mark Herring announced today.
James Lee Cleghorne, 39, previously pleaded guilty to one count of conspiracy to distribute methamphetamine, heroin, oxycodone, cocaine, and alprazolam. Cleghorne was charged along with 10 other individuals as part of a broader trafficking conspiracy. Two defendants, Roy Lee Dykes and Leila Hector Dykes, went to trial in September 2019 and are set for sentencing on December 19, 2019.
“Methamphetamine trafficking and its effects have taken an enormous toll on far Southwest Virginia,” U.S. Attorney Cullen stated today. “We will continue to work with our federal, state, and local partners to identify and dismantle the drug-trafficking organizations responsible for bringing this terrible drug into our region, and hold their members accountable under federal law.”
“Our partnerships with local, state, and federal law enforcement are working to help keep the Commonwealth safer from the effects of methamphetamine,” said Virginia Attorney General Mark Herring today. “We remain committed to aggressively prosecuting those who transport this dangerous drug into the Commonwealth.”
According to court documents, these defendants conspired to traffic a variety of controlled substances, including methamphetamine, heroin, cocaine, morphine, oxycodone, and alprazolam, from sources in Watkinsville, Ga., into Southwest Virginia for redistribution. The organization operated primarily in Lee and Wise counties from November 2016 through March 1, 2018. Arrests on March 1, 2018, resulted in the seizure of approximately 11 ounces of crystal ice methamphetamine, in addition to heroin, cocaine, morphine, and oxycodone. Currency totaling approximately $14,000 was also seized.
The investigation stemmed from another drug trafficking conspiracy arising out of Lee County, Virginia, involving seven defendants, all of whom have been convicted and sentenced. In total, these investigations have led to the successful prosecution of 22 defendants and removed a conservative estimate of 3.5 pounds of crystal ice methamphetamine from the supply chain in Southwest Virginia.
The investigation of this case was conducted by the Southwest Virginia Drug Task Force, Virginia State Police, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Numerous agencies assisted with search warrant executions and arrests on March 1, 2018, to include the Drug Enforcement Administration, Big Stone Gap Police Department, Lee, Wise, and Scott County Sheriff’s Departments, City of Norton Police Department, and the U.S. Marshals. Special Assistant United States Attorney M. Suzanne Kerney-Quillen, a Virginia Assistant Attorney General assigned to the Attorney General’s Major Crimes and Emerging Threats Section, and Assistant United States Attorney Kari Munro are prosecuting this case for the United States.
Gardena Man Convicted of Attempting to Smuggle Protected Coral Species from the United States to MexicoRead the Press Release
LOS ANGELES – A Gardena man was found guilty by a jury today of federal criminal charges that he attempted to smuggle live corals that are protected by an international treaty known as the Convention on the International Trade of Endangered Species of Wild Fauna and Flora (CITES).
Jose Torres, 44, was found guilty of one count of attempting to illegally export wildlife, and two counts of making and submitting a false record for wildlife intended to be exported.
According to the evidence presented at his three-day trial, in January 2013, a Mexican company named Gabriela Herlinda Medina asked to purchase fish and coral from Torres, who identified himself as the owner of the company Orca International. Medina decided that it did not want to wait for the CITES permits and requested that the coral be shipped immediately. On January 31, 2013, Torres attempted to ship the coral without the CITES permit. Reef-building coral are protected under CITES because of their importance to ocean ecosystems and their vulnerability.
In furtherance of his scheme, Torres visited the U.S. Fish and Wildlife Service district office in Torrance on January 31, 2013. During that visit, Torres made a false declaration that he was shipping 16 cartons of fish. In reality, Torres personally packed 40 boxes for shipment and he knew they contained protected coral.
That night, Torres went to Los Angeles International Airport and provided to AeroMexico the false paperwork and 40 cartons to be transported to Mexico. Fish and Wildlife Service officials inspected the cartons and seized 474 undeclared items, including many CITES-protected coral.
United States District Judge Otis D. Wright II has scheduled a February 10 sentencing hearing, at which time Torres will face a statutory maximum sentence of 20 years in federal prison.
United States Fish and Wildlife Service investigated this case, which was charged as part of Operation Jungle Book, a law enforcement initiative that targeted wildlife smuggling.
This matter is being prosecuted by Assistant United States Attorneys Erik M. Silber of the Environmental and Community Safety Crimes Section and David R. Friedman of the General Crimes Section.
Gang Member Charged with 2009 MurderRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and James O’Neill, the Commissioner of the New York City Police Department (“NYPD”), today announced the unsealing of an indictment charging JOHNNY NUNEZ GARCIA, a/k/a “Superior,” with the June 5, 2009, gang-related murder of Jonathan Ruiz, 17, in the Bronx, New York. NUNEZ GARCIA is currently serving a separate federal sentence. He was transferred yesterday to the Southern District of New York and presented before Magistrate Judge Sarah Netburn. The case is assigned to United States District Judge Andrew L. Carter Jr.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged in the indictment, more than ten years ago Nunez Garcia shot and killed Jonathan Ruiz in connection with Nunez Garcia’s membership in the Dominicans Don’t Play gang. Thanks to the persistence of our partners at the NYPD, Nunez Garcia will now face justice for his alleged role in this heinous crime.”
Police Commissioner James O’Neill said: “This indictment is the result of the close partnership that exists between the NYPD and our law-enforcement partners. I commend the members of the NYPD Detective Bureau and the U.S. Attorney’s Office for the Southern District of New York whose hard work resulted in this indictment.”
According to the allegations in the Indictment unsealed today in Manhattan federal court[1]:
NUNEZ GARCIA was a member of the Dominicans Don’t Play (or “DDP”) gang, a criminal enterprise, members of which engaged in criminal acts involving murder, robbery, and narcotics dealing throughout the Bronx. They committed these crimes to enrich themselves and to preserve and promote their widespread criminal activity. As a member of the gang, on June 5, 2009, NUNEZ GARCIA shot and killed Jonathan Ruiz near East 165th Street and Tiffany Street.
* * *
NUNEZ GARCIA, 28, of the Bronx, is charged with one count of murder in aid of racketeering and aiding and abetting murder in aid of racketeering. He faces a mandatory minimum sentence of life in prison. The potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding work of the NYPD.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Frank Balsamello and Adam Hobson are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Fugitive for Nearly 20 Years Returned to Syracuse to Serve Federal Prison SentenceRead the Press Release
SYRACUSE, NEW YORK – Julio Recio, age 51, a fugitive from justice and a citizen of the Dominican Republic, was extradited from Spain and transported in the custody of the United States Marshals Service to Syracuse, on November 21, 2019, to begin serving a 30‑month prison sentence imposed in 1999. The extradition came about after Recio pled guilty in 1999 to conspiracy to possess with intent to distribute cocaine, and then became a fugitive, announced United States Attorney Grant C. Jaquith and United States Marshal David McNulty.
In 1999, Recio and a co‑conspirator arranged for the transport of cocaine from New York City to Binghamton with the intent to distribute it there. He was arrested in Binghamton and charged by federal indictment. After Recio pled guilty to a drug conspiracy charge, Senior United States District Judge Thomas J. McAvoy sentenced him to a 30‑month term of imprisonment and ordered him to self-report to the United States Bureau of Prisons to serve his term of incarceration. Recio never surrendered to prison and instead fled the United States. He evaded law enforcement until the United States Marshals Service recently identified him traveling between the Dominican Republic and Spain under an assumed name. With the cooperation of the International Criminal Police Organization (INTERPOL) and local law enforcement authorities, Recio was apprehended in Spain in January 2019. Following extradition proceedings in Spain, Deputy United States Marshals transported Recio to Syracuse, from where he will be transferred to a federal prison.
United States Attorney Grant C. Jaquith said, “Mr. Recio ran from the law, but he could not hide forever. Thanks to the exceptional work of the United States Marshals Service and our law enforcement partners overseas, Mr. Recio’s overdue debt to society will now be paid as he finally serves his sentence. His case should highlight for fugitives everywhere that the long arm of the law is enduring, and we will enforce court orders and warrants around the globe, if necessary.”
United States Marshal David McNulty said, “Time and distance did not stop United States Marshals Service Investigators from catching this fugitive. I am very proud of them and their fine work on this case and thank all those law enforcement agencies from around the world who assisted us in returning Mr. Julio Recio to justice. This case is a great example of international cooperation and the long arm of the law at work in Syracuse New York.”
The drug case that led to the defendant’s 1999 conviction was prosecuted by Assistant United States Attorney Thomas P. Walsh (retired). The investigation that led to the international extradition of Julio Recio was conducted by the United States Marshals Service (Syracuse) and prosecuted by Assistant United States Attorney Carina H. Schoenberger.
Four Members of “Head Shot Mafia” Drug Crew Indicted for Fentanyl Distribution and Gun PossessionRead the Press Release
BOSTON – A federal grand jury indicted four members of a violent Brockton drug crew today on charges of conspiring to distribute fentanyl and illegal firearm possession.
Placido Pereira, 33; Natalio Miranda, 28; and Djoy Defrancesco, 23, all of Brockton, and Jason Miranda, 24, of Taunton, were charged in the indictment with conspiracy to distribute 40 grams or more of fentanyl and six counts of distribution of fentanyl. The indictment charges Pereira and Jason Miranda with possession of 40 grams or more of fentanyl. The indictment charges Periera with possessing with intent to distribute 40 grams or more of fentanyl, being a felon in possession of a firearm and ammunition and possessing a firearm during a drug trafficking offense. Finally, the indictment charges Jason Miranda with possessing with intent to distribute fentanyl and being a felon in possession of a firearm. The defendants are currently detained in federal custody.
As alleged in charging documents, law enforcement began investigating a violent Brockton-area drug crew that distributed large quantities of fentanyl throughout southeastern Massachusetts. The drug crew, which refers to itself as “HSM,” for “Head Shot Mafia,” ran a fentanyl delivery service that encompassed all of Brockton as well as neighboring cities. Specifically, it is alleged that drug users/customers placed orders for fentanyl by contacting a cellphone maintained and shared by HSM crew members, and that HSM members worked together to deliver the fentanyl order. Beginning in September 2019, agents succeeded in introducing an undercover law enforcement officer to HSM, who made six purchases of fentanyl from members of the crew. On six occasions in September 2019, the undercover officer purchased fentanyl from Pereira, Natalio Miranda, Jason Miranda and Defrancesco.
A search of Pereria’s Brockton home resulted in the seizure of approximately 70 grams of fentanyl, a loaded firearm, over $5,000 in cash and the cell phone used by HSM to distribute fentanyl. A search of Jason Miranda’s home in Taunton resulted in the seizure of approximately 30 grams of fentanyl, a firearm and $28,000 in cash.
According to court documents, in 2017, Pereira was convicted of unlawful possession of a firearm and possession with intent to distribute marijuana and was sentenced to three years in prison. In 2010, Pereira was arrested on drug trafficking charges at Logan Airport as he returned to the U.S. from Cape Verde and was sentenced to 30 months in prison and three years of supervised release. Natalio Miranda sold fentanyl to an undercover officer while on probation for a state drug trafficking offense. Defrancesco sold fentanyl to an undercover officer while on pre-trial release from a Plymouth Superior Court indictment charging him with trafficking in fentanyl and possession of a high capacity feeding device, among other offenses.
The charge of conspiracy to distribute 40 grams or more fentanyl provides for a mandatory minimum sentence of five years and up to 40 years in prison, four years of supervised release and a fine of up to $5 million. The charge of conspiracy to distribute fentanyl provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $1 million. Possession of a firearm during a drug trafficking crime provides for a five year mandatory minimum sentence and up to life in prison, five years of supervised release and a fine of $250,000. The charge of felon in possession of a firearm provides for a sentence of up to 10 years in prison, three years of supervised release and a $250,000 fine. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Brockton Police Chief John Crowley; John Gibbons, U.S. Marshal for the District of Massachusetts; and Plymouth County District Attorney Timothy J. Cruz made the announcement today. Assistance was provided by the East Bridgewater, West Bridgewater, Whitman and Bridgewater State University Police Departments as well as the Plymouth County Sheriff’s Office. Assistant U.S. Attorney Christopher Pohl of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former ‘American Idol’ Contestant Sentenced to PrisonRead the Press Release
NORFOLK, Va. – A former ‘American Idol’ contestant was sentenced today to 45 months in prison for possessing with intent to distribute 400 grams or more of fentanyl.
According to court documents, Antonella Maria Barba, 32, of Point Pleasant, New Jersey, was parked in downtown Norfolk at approximately 11:05 p.m. in October 2018, when she was approached by law enforcement. A dog handler screened Barba’s rental vehicle with a drug dog, which alerted on the vehicle. The canine officer searched Barba’s rental vehicle and discovered a closed shoebox in plain view on the front passenger floorboard. The officer opened the shoebox and discovered a plastic bag containing a large quantity of a white, rock-like substance. Barba subsequently admitted she had landed at Washington-Dulles at around 4:00 p.m. on a flight from Los Angeles, and that she rented a car there and drove to Norfolk. The substance seized from Barba’s rental car was submitted to the U.S. Customs and Border Protection Savannah Laboratory for forensic analysis, where a forensic scientist determined the substance to be fentanyl, a Schedule II controlled substance, with a total weight of 830.9 grams.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Jim Stitzel, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen. Assistant U.S. Attorney Darryl J. Mitchell prosecuted the case.
The Norfolk Police Department, the Virginia Beach Police Department, as well as the Chesapeake Sheriff’s Office and the Portsmouth Sheriff’s Office had active roles in this investigation.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-158-2.
Former Villanova University Campus Ministry Official Sentenced to 6 ½ Years in Prison for Child Pornography OffenseRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced today that Timothy O’Connell, 52, of Drexel Hill, PA was sentenced to 78 months’ incarceration, 10 years’ supervised release, a $5,000 fine, and a $5,000 special assessment by United States District Judge Gerald J. Pappert after pleading guilty to one count of receipt of child pornography in June 2019.
In February 2018, the defendant received images depicting the sexual abuse and exploitation of pre-pubescent children. The victims depicted in the child pornography included a one-year-old child who had previously been identified by the Federal Bureau of Investigation in another child abuse investigation. At the time he committed the crime, the defendant was employed as Associate Director of Campus Ministry at Villanova University.
“Child pornography offenses are always abhorrent,” said U.S. Attorney McSwain. “But this case is particularly disturbing due to the defendant’s history as a spiritual leader at one of our region’s most respected institutions of higher education. To Villanova’s credit, they cooperated with our investigation and helped us to resolve this matter. Most importantly, we stand ready with our federal and local partners to identify and prosecute anyone who would prey upon minor children -- no matter their position in the community.”
“Those who seek out child pornography help drive a demand for such depraved images, leading to more young children being sexually exploited,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “The men and women of the FBI who investigate these disturbing cases are determined to bring to justice those involved with child pornography and protect innocent children from sexual victimization.”
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 United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Federal Bureau of Investigation and the Villanova University Department of Public Safety, and is being prosecuted by Assistant United States Attorney Priya T. De Souza.
Former South Bay Executive Charged with Insider TradingRead the Press Release
LOS ANGELES – A former executive at Hawthorne-based semiconductor company OSI Systems Inc. was indicted today on charges of using inside information to “short” his employer’s stock and, later, to illegally purchase shares of a company OSI confidentially had targeted for acquisition, in a scheme that allegedly netted a total of more than $567,000 in illicit gains.
Mark A. Loman, 58, of Hermosa Beach, was named in a federal grand jury indictment that charges him with five counts of securities fraud and five counts of insider trading. Loman is scheduled to be arraigned on the indictment on December 10 in United States District Court in downtown Los Angeles.
Loman was OSI’s vice president of finance and corporate controller from 2006 until 2017. In these roles, Loman had advance knowledge of OSI’s revenue and earnings and, as controller, was responsible for compiling and internally reporting the company’s confidential financial results.
The indictment alleges that, in October 2015, Loman received confidential information that OSI and its subsidiaries were financially underperforming and would fall far short of their earnings and revenue forecast for its second quarter of fiscal year 2016. Acting on this information in November and December of 2015, Loman shorted 3,000 shares of OSI stock with the intent of profiting when OSI’s share price declined, according to the indictment. During this time, Loman also allegedly purchased a series of option contracts with the intention of profiting when OSI’s stock price fell.
On January 27, 2016, OSI announced its disappointing second-quarter earnings, and also lowered its sales and earnings guidance for the remainder of its fiscal year. On the day of this announcement, OSI shares plunged 35 percent in value from their previous closing day price. As a result, Loman allegedly gained $446,436 in illegal profits from this scheme.
The indictment further alleges that in February and March of 2016, Loman misused nonpublic information by purchasing stock of American Science & Engineering Inc., a Billerica, Massachusetts-based manufacturer of X-ray equipment that OSI had targeted for acquisition. Once OSI publicly announced in June 2016 its agreement to acquire ASEI, Loman immediately sold his ASEI shares and made approximately $120,900 in illegal gains, the indictment alleges. In September 2016, OSI formally acquired ASEI for $269 million.
In total, Loman made $567,335 in illicit gains through this scheme, according to the indictment.
In July 2019, the Securities and Exchange Commission filed a lawsuit against Loman, charging him with insider trading.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Each charge of securities fraud carries a statutory maximum sentence of 25 years in federal prison. The statutory maximum sentence for each count of insider trading is 20 years in federal prison.
The FBI investigated this matter.
This case is being prosecuted by Assistant United States Attorneys Ashwin Janakiram and Alexander C.K. Wyman of the Major Frauds Section.
Former Social Security Administration Employee Pleads Guilty to Wire Fraud and TheftRead the Press Release
BIRMINGHAM, Ala. – A Tuscaloosa County woman who was employed by the Social Security Administration pled guilty today in federal court, announced U.S. Attorney Jay E. Town, Social Security Administration Office of Inspector General, Atlanta Division Special Agent in Charge Rodregas Owens, and United States Secret Service Special Agent in Charge Patrick Davis.
LATANYA HATTER, 46, of Tuscaloosa, Alabama, entered her guilty plea before United States District Judge L. Scott Coogler to charges of wire fraud, theft of government funds, and identity theft. The information was filed in September.
According to Hatter’s plea agreement, Hatter was a Social Security Administration (“SSA”) benefits authorizer in the Birmingham, Alabama field office. From December 5, 2017, through January 31, 2018, Hatter exceeded her access to SSA databases and made necessary inputs to create fraudulent underpayments for deceased SSA beneficiaries. Hatter then directed the funds to bank accounts to which she had access or to bank accounts belonging to relatives and friends. Hatter created 25 fraudulent underpayments to deceased SSA beneficiaries that totaled $148,428.
“This defendant blatantly abused her position of trust as a Social Security Administration employee, using her access to steal the identities of the deceased and to pocket money for her own personal greed and use,” Town said. “This outright theft and misuse of funds will not be tolerated and those who continue to operate these type schemes will be prosecuted in federal court.”
“Ms. Hatter’s position with the Social Security Administration (SSA) afforded her the opportunity to put in place a scheme that defrauded not only the United States Government; and the SSA, but also those deceased victims who were unable to speak for themselves,” Davis said. “Ms. Hatter violated the trust and confidence that had been bestowed upon her.”
“This plea is the result of thorough investigative work indicating this individual abused the public trust in her position with Social Security,” said Owens. “Employee fraud is rare, but Social Security OIG is committed to working with the agency to identify those instances and take decisive action. We appreciate the U.S. Attorney’s support in this important endeavor.”
The maximum penalty for wire fraud is 20 years in prison and a maximum fine of $250,000. The maximum penalty for theft of government funds is 10 years in prison and a maximum fine of $250,000. The maximum penalty for identity theft is 15 years in prison and a maximum fine of $250,000.
The Social Security Administration Office of Inspector General and United States Secret Service investigated the case, which Assistant United States Attorney Catherine Crosby Long is prosecuting.