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Wednesday 20 November 2019
Gary, Indiana Woman SentencedRead the Press Release
HAMMOND – Ethel Shelton, age 74, of Gary, Indiana, was sentenced by Judge Joseph Van Bokkelen to one year of probation, announced United States Attorney Thomas L. Kirsch, II.
Shelton was convicted of conspiracy to commit wire fraud and conspiracy to commit honest services wire fraud on April 17, 2018, after a 10-day jury trial. According to records in the case, Shelton was employed by the Calumet Township Trustee’s Office from 2003 to 2014, and served as Executive Secretary for Trustee Mary Elgin. During this time, Shelton and other Township employees diverted the resources of the Trustee’s Office by doing private campaign work for Elgin at work, using public facilities and equipment, and while being paid with public funds. Shelton also participated in a scheme to solicit and pressure Township employees to repay a portion of their wages to support Elgin’s reelection efforts in exchange for continued job security. Elgin and her son, Steven Hunter, previously pled guilty and have been sentenced. Alex Wheeler, who was also charged in this case, was acquitted at trial.
In addition to living under court-imposed conditions for one year, Shelton is required to pay restitution in the amount of $15,000 jointly and severally with Elgin and Hunter, in addition to a $2,000 fine.
This case was investigated by the Federal Bureau of Investigation with the assistance of the Internal Revenue Service. The case was prosecuted by Assistant United States Attorneys Maria Lerner, Abizer Zanzi and Philip Benson.
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Fugitive Sentenced for Fleeing to Avoid Serving Tax Fraud Prison SentenceRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Remijio Rafael Hau Chi, age 45, formerly of Littleton, Colorado was sentenced yesterday by Senior U.S. District Court Judge John L. Kane to serve 18 months in federal prison for fleeing the U.S. to avoid a jail sentence imposed in a previous tax fraud case. The 18 months’ imprisonment is consecutive to the tax fraud sentence.
According to the indictment and plea agreement in the previous tax fraud case, Hau Chi, along with his spouse, Wilma Hau, were sentenced by Judge Krieger on February 20, 2014 for conspiracy to make false and fraudulent claims to the government. As part of this conspiracy, Hau Chi participated in a scheme in which stolen taxpayer identifying information was used to submit fraudulent tax returns to the IRS claiming tax refunds. The investigation concluded that 138 false federal income tax returns were submitted to the IRS resulting in the issuance of $430,753 in fraudulent tax refunds. Chi used a significant portion of the refund proceeds for his personal benefit, including the purchase of a residence in Littleton and paying off the mortgage for said residence.
After Hau Chi was sentenced to 22 months in federal prison in the tax fraud case, the court allowed him to remain free on bond and report to the Federal Bureau of Prisons to serve his imprisonment once his wife completed her prison sentence. The Judgment entered against Hau Chi at the time of his sentence ordered that Hau Chi was required to notify the United States Attorney of any change of residence or mailing address within 30 days of his moving until he completed paying restitution as ordered by the court. Despite that condition, Hau Chi left his Littleton residence in March 2014 without notifying the United States Attorney, and absconded from supervision by the United States Probation Office, becoming a fugitive believed to be in Mexico. He was arrested in July 2018, when he traveled from Mexico to Canada, and was subsequently extradited back to the United States for service of his previously imposed tax fraud sentence and to face the new contempt charge that led to yesterday’s sentencing.
“Contempt is a serious crime, as you can see from this sentence,” said U.S. Attorney Jason Dunn. “Fleeing the country doesn’t work, it just prolongs the inevitable. The message is simple – if you’re wanted, turn yourself in.”
“Remigio Hau Chi thought he figured out a clever scheme to thwart the IRS, undermine the integrity of the U.S. legal system and steal from American taxpayers,” said IRS – Criminal Investigation Special Agent in Charge Andy Tsui. “This sentence highlights the seriousness of the defendant’s conduct and IRS – Criminal Investigation’s continued vigilance investigating and bringing to justice individuals who attempt to line their pockets with other people’s money.”
This case was investigated by Internal Revenue Service – Criminal Investigation.
This case is being prosecuted by Assistant United States Attorney Patricia Davies.
Friend of Dayton mass shooter pleads guilty to illegally possessing firearm, lying on federal firearms formRead the Press Release
DAYTON – Ethan Kollie, 24, of Kettering, a friend of the Dayton mass shooter Connor Betts, pleaded guilty in U.S. District Court today to illegally possessing firearms and lying on federal firearms form 4473.
As part of his guilty plea, Kollie acknowledged lying on a United States Bureau of Alcohol, Tabacco, Firearms and Explosives (ATF) Form 4473 when purchasing a micro Draco pistol, specifically while answering question 11e that asks, “Are you an unlawful user of, or addicted to, marijuana or any depressant, stimulant, narcotic drug, or any other controlled substance?”
Kollie checked the “no” box, when in fact he knew he was an unlawful user of marijuana and psychedelic mushrooms. Kollie answered falsely because he knew he would not be able to obtain the micro Draco pistol if he answered truthfully.
During searches of Kollie and his residence following the Aug. 4 shooting, law enforcement officers recovered the micro Draco pistol, which was loaded with 30 rounds of ammunition, marijuana, psychedelic mushrooms, additional weapons, ammunition, drug paraphernalia and psychedelic mushroom grow equipment.
Kollie illegally possessed at various times four firearms in total, namely, the micro Draco pistol, a 9mm handgun, a 38 Special revolver, and an AR-15 rifle. The micro Draco pistol and the AR-15 are both semi-automatic weapons and could accept more than 15 rounds of ammunition.
Possessing a firearm as an unlawful user of a controlled substance is a federal crime punishable by up to 10 years in prison. Making a false statement regarding firearms carries a potential maximum sentence of up to five years’ imprisonment. 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.
Sentencing is scheduled for Feb. 20.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Joseph M. Deters, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Jonathan McPherson, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and Dayton Police Chief Richard S. Biehl, announced the plea entered into today before Senior U.S. District Judge Thomas M. Rose. First Assistant United States Attorney Vipal J. Patel and Deputy Criminal Chief Dominick S. Gerace are representing the United States in this case.
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Fourth Former Tennessee Correctional Officer Pleads Guilty Following Assault of InmateRead the Press Release
Memphis, TN – Cadie McAlister, 21, pleaded guilty to a federal offense and admitted concealing other correctional officers’ assault of an inmate while McAlister was serving as an officer with the Tennessee Department of Corrections.
"Correctional officers who conceal unlawful actions of other officers erode public trust and will not be tolerated by the Department of Justice," said Assistant Attorney General Eric Dreiband of the Civil Rights Division. "The Department of Justice will continue to hold correctional officers accountable for their actions."
"Correctional officers must abide by and adhere to the same laws they take an oath to uphold and enforce. Instead of serving and protecting the public, this officer actively participated to conceal the use of physical force by other officers to violate the civil rights of an individual. As a result, she will now be held accountable, vividly illustrating that no one is above the law," said U.S. Attorney D. Michael Dunavant for the Western District of Tennessee.
"When a law enforcement officer violates the civil rights of another, she brings shame on the badge and all law enforcement officers," said Special Agent in Charge M.A. Myers of the FBI Memphis Field Office. "This plea should send a clear message that the FBI makes it a priority to bring any law enforcement officer who violates the constitution and the trust of the people to justice."
With her guilty plea, McAlister admitted that, on Feb. 1, 2019, she and other correctional officers at the Northwest County Correctional Complex in Tiptonville, Tennessee went to the cell of R.T., an inmate in the mental health unit. Other officers entered the cell while McAlister stood in the doorway. McAlister heard someone ask for the surveillance camera to be covered and saw a correctional officer cover the camera with his hand.
After the camera was covered, McAlister saw an officer repeatedly hit R.T. without any lawful justification. While the officer was hitting R.T., another officer asked McAlister to get paper towels. She brought paper towels back to the cell and provided them to an officer who wet them. She then saw the officer covering the camera put the wet paper towels over the camera.
McAlister was responsible for regularly updating the logbook in the mental health unit during her shift. However, she failed to document: the arrival of additional officers into the unit; the entry of five officers into R.T.’s cell; that an officer repeatedly hit R.T.; that the camera was covered while the officers were in the cell; that she provided paper towels which were used to cover the camera; or that R.T. remained in his cell bleeding after the correctional officers left.
With today’s guilty plea, McAlister admitted that she violated 18 U.S.C. § 4 by knowing of a federal felony, failing to notify authorities of the felony, and taking an affirmative step to conceal the felony. The maximum penalty for this offense is three years of imprisonment.
Previously, former correctional officers Nathaniel Griffin, Tanner Penwell, and Carl Spurlin Jr., entered guilty pleas for criminal offenses arising out of the assault of inmate R.T.
This case is being investigated by the Memphis Division of the FBI, with the support of the Tennessee Department of Corrections, and is being prosecuted by Trial Attorney Rebekah J. Bailey of the Justice Department’s Civil Rights Division and Assistant United States Attorney David Pritchard of the U.S. Attorney’s Office for the Western District of Tennessee.
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Fourth Former Tennessee Correctional Officer Pleads Guilty Following Assault of InmateRead the Press Release
Cadie McAlister, 21, pleaded guilty to a federal offense and admitted concealing other correctional officers’ assault of an inmate while McAlister was serving as an officer with the Tennessee Department of Corrections.
“Correctional officers who conceal unlawful actions of other officers erode public trust and will not be tolerated by the Department of Justice,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Department of Justice will continue to hold correctional officers accountable for their actions.”
"Correctional officers must abide by and adhere to the same laws they take an oath to uphold and enforce. Instead of serving and protecting the public, this officer actively participated to conceal the use of physical force by other officers to violate the civil rights of an individual. As a result, she will now be held accountable, vividly illustrating that no one is above the law," said U.S. Attorney D. Michael Dunavant for the Western District of Tennessee.
"When a law enforcement officer violates the civil rights of another, she brings shame on the badge and all law enforcement officers," said Special Agent in Charge M.A. Myers of the FBI Memphis Field Office. "This plea should send a clear message that the FBI makes it a priority to bring any law enforcement officer who violates the constitution and the trust of the people to justice."
With her guilty plea, McAlister admitted that, on Feb. 1, 2019, she and other correctional officers at the Northwest County Correctional Complex in Tiptonville, Tennessee went to the cell of R.T., an inmate in the mental health unit. Other officers entered the cell while McAlister stood in the doorway. McAlister heard someone ask for the surveillance camera to be covered and saw a correctional officer cover the camera with his hand.
After the camera was covered, McAlister saw an officer repeatedly hit R.T. without any lawful justification. While the officer was hitting R.T., another officer asked McAlister to get paper towels. She brought paper towels back to the cell and provided them to an officer who wet them. She then saw the officer covering the camera put the wet paper towels over the camera.
McAlister was responsible for regularly updating the logbook in the mental health unit during her shift. However, she failed to document: the arrival of additional officers into the unit; the entry of five officers into R.T.’s cell; that an officer repeatedly hit R.T.; that the camera was covered while the officers were in the cell; that she provided paper towels which were used to cover the camera; or that R.T. remained in his cell bleeding after the correctional officers left.
With today’s guilty plea, McAlister admitted that she violated 18 U.S.C. § 4 by knowing of a federal felony, failing to notify authorities of the felony, and taking an affirmative step to conceal the felony. The maximum penalty for this offense is three years of imprisonment.
Previously, former correctional officers Nathaniel Griffin, Tanner Penwell, and Carl Spurlin, Jr., entered guilty pleas for criminal offenses arising out of the assault of inmate R.T.
This case is being investigated by the Memphis Division of the FBI, with the support of the Tennessee Department of Corrections, and is being prosecuted by Trial Attorney Rebekah J. Bailey of the Justice Department’s Civil Rights Division and Assistant United States Attorney David Pritchard of the U.S. Attorney’s Office for the Western District of Tennessee.
Four BVI Foreign Nationals Apprehended in Coral Bay, St. John, Charged with Illegal Entry into the United StatesRead the Press Release
St. Thomas, USVI – Mohammed Singh, a citizen of Guyana, and Jaisel Yroveles Del Jesus, Shadrach Thompson, and Tereim Grant, all citizens of the British Virgin Islands, were charged with knowingly and willfully entering or attempting to enter the United States at a time and place other than as designated by Immigration Officers. The four individuals made their initial appearances before U.S. Magistrate Judge Ruth Miller on Friday. After preliminary and detention hearings on Monday, Judge Miller released Mohammed Singh, Jaisel Yroveles Del Jesus, and Shadrach Thompson on their own recognizance.
The complaint alleges that CBP Air and Marine agents observed a vessel operating without navigational lights enter and depart Coral Bay, St. John. The CBP agents energized their lights and sirens in an attempt to stop the vessel, but the vessel did not comply. CBP agents observed several of the occupants of the vessel jettisoning items into the water. CBP then disabled and boarded the vessel. After boarding the vessel, agents identified the four individuals on board as foreign nationals. Multiple individuals on board the vessel admitted that the vessel had travelled from the British Virgin Islands.
This case is being investigated by Homeland Security Investigations and CBP Air and Marine, and is being prosecuted by Assistant United States Attorney Adam Sleeper.
United States Attorney Shappert reminds the public that a complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty.
Former Trader for Major Multinational Bank Convicted for Price Fixing and Bid Rigging in FX MarketRead the Press Release
A former currency trader was convicted today in New York for his participation in an antitrust conspiracy to manipulate prices for emerging market currencies in the global foreign currency exchange (FX) market, the Justice Department announced today.
Following a three-week trial in the U.S. District Court for the Southern District of New York, a jury convicted Akshay Aiyer (former Executive Director at a major multinational bank) of conspiring to fix prices and rig bids in Central and Eastern European, Middle Eastern and African (CEEMEA) currencies, which were generally traded against the U.S. dollar and the euro, from at least October 2010 through at least January 2013.
“Today, a jury of citizens held the defendant accountable for fixing prices and rigging bids for emerging market currencies traded in the United States and elsewhere,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “This conviction serves as a reminder of our commitment to hold individuals responsible for their involvement in complex financial schemes which violate the integrity of the global financial markets.”
“Today’s verdict holds the defendant accountable for manipulating the foreign currency market for his own benefit at the expense of free and open competition,” said Federal Deposit Insurance Corporation (FDIC) Inspector General Jay N. Lerner. “We are dedicated to working with our law enforcement partners to investigate such complex crimes which undermine the integrity of financial markets, and to bring bank insiders to justice.”
According to evidence presented at trial, the defendant engaged in near-daily communications with his co-conspirators by phone, text and through an exclusive electronic chat room to coordinate their trades of the CEEMEA currencies in the FX spot market. The jury heard evidence that the defendant and his co-conspirators manipulated exchange rates by agreeing to withhold bids or offers to avoid moving the exchange rate in a direction adverse to open positions held by co-conspirators and by coordinating their trading to manipulate the rates in an effort to increase their profits. By agreeing not to buy or sell at certain times, the conspiring traders protected each other’s trading positions by withholding supply of or demand for currency and suppressing competition in the FX spot market for emerging market currencies. They also heard evidence that the defendant and his co-conspirators took steps to conceal their actions by, among other steps, using code names, communicating on personal cell phones during work hours and meeting in person to discuss particular customers and trading strategies.
The Antitrust Division has charged five companies and six individuals in its investigation of collusion in the FX spot market. On May 20, 2015, four major banks – Citicorp, JPMorgan Chase & Co., Barclays PLC and The Royal Bank of Scotland plc – pleaded guilty and agreed to pay collectively more than $2.5 billion in criminal fines for their participation in an antitrust conspiracy in the euro-U.S. dollar FX spot market. On Jan. 25, 2018, BNP Paribas USA Inc. pleaded guilty and agreed to pay a $90 million criminal fine for its participation in an antitrust conspiracy involving emerging market FX prices. On Jan. 4, 2017 and Jan. 12, 2017, plea agreements were announced for two former traders in connection with an antitrust conspiracy involving emerging market FX prices.
The Antitrust Division’s investigation of collusion in the financial markets is ongoing. The investigation in today’s case is being conducted by the FDIC Office of Inspector General and the FBI’s Washington Field Office, and the prosecution is being handled by the Antitrust Division’s New York Office. The Criminal Division’s Fraud Section also provided substantial assistance in this matter. Anyone with information on price fixing, bid rigging or other anticompetitive conduct in the financial markets should contact the Antitrust Division’s New York Office at 212-335-8000 or visit www.justice.gov/atr/contact/newcase.html.
Former San Francisco Deputy Sheriff Sentenced to 14 Months Imprisonment for Scheme to Defraud Insurance CompanyRead the Press Release
SAN FRANCISCO – Former San Francisco Deputy Sheriff April Myres was sentenced to 14 months in prison for committing mail and wire fraud, announced United States Attorney David L. Anderson and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett. The sentence was handed down by the Honorable Richard Seeborg, U.S. District Judge.
The sentence follows an eight-day trial that resulted in a jury convicting Myres, 55, of San Francisco, of the two crimes on June 26, 2019. The evidence at trial demonstrated that Myres reported a burglary of her home to the San Francisco Police Department on March 25, 2016. As part of her report to the police, she claimed numerous items were stolen, including the firearm, her San Francisco Sheriff’s Department (SFSD)-issued radio, and numerous luxury goods. After making the report, Myres repeatedly refused to cooperate with the investigation. Then, in May 2016, Myres filed an insurance claim under her homeowner’s policy. In her claim, Myres stated that the SFSD-issued firearm, the SFSD-issued radio, and the luxury goods had been stolen. Myres asserted in her insurance claim that she was entitled to over $67,000 in reimbursement for all of the items stolen.
An investigation by the FBI revealed that Myres made numerous false statements in her insurance claim. For example, Myres told the insurance company she had no suspects in the burglary and no estranged boyfriends who might have been responsible. Nevertheless, the evidence showed that while she had been working at the San Francisco County Jail, Myres had carried on a romantic relationship with an inmate, Antoine Fowler. Immediately after Fowler was released from custody in January 2016, he went to Myres’ house where he lived until March 24, 2016, the morning of the claimed burglary, when he moved out after a late-night dispute with Myres.
In addition, the evidence demonstrated Myres made numerous false statements in the insurance claim about the items she claimed had been stolen. For example, she falsely claimed she owned the SFSD-issued firearm and SFSD-issued radio that she said had been stolen, and provided false details about the purchase prices and locations to bolster her claim. She also made false statements about items that had been stolen, including claiming that three items – a Louis Vuitton purse, Gucci boots, and a fox fur vest – were stolen; all three of these items were located in her house when the FBI conducted a search in February 2017.
Following its investigation into Myres and Fowler, the FBI arrested Myres and Fowler on February 2, 2017, and found Myres’ SFSD-issued firearm in Fowler’s possession.
On April 11, 2017, a federal grand jury indicted Myres and Fowler. The grand jury charged Myres with one count each of mail fraud, in violation of 18 U.S.C. § 1341, and wire fraud, in violation of 18 U.S.C. § 1343. The grand jury also charged Myres with misprision of a felony, in violation of 18 U.S.C. § 4, for deliberately concealing from law enforcement that Fowler had her firearm. The trial jury found Myres guilty of the wire fraud and mail fraud counts and acquitted her of the misprision of a felony charge.
In addition to the prison term, Judge Seeborg ordered Myres to serve 14 months of supervised release to begin after the prison term is concluded. Judge Seeborg described Myres’ conduct as “shameful” and agreed with a court document assessing Myres’ role in the offenses—the document contained the following assessment: “when those sworn to uphold the law become the very ones who break the law, the entire criminal justice system is undermined.”
Judge Seeborg ordered Myres released on a $1,000,000 secured bond until she surrenders to the Bureau of Prisons to begin serving her prison term. Judge Seeborg ordered Myres to surrender on or before January 28, 2020.
For his part in the events, Fowler pleaded guilty on May 14, 2019, to one count of being a felon in possession of a firearm, in violation of 18 U.S.C. § 922(g)(1). Fowler was released on a $50,000 bond and remains out of custody pending sentencing. Judge Seeborg scheduled Fowler’s sentencing for January 7, 2020. The maximum statutory penalty for felon in possession of a firearm, in violation of 18 U.S.C. § 922(g)(1), is 10 years imprisonment, three years of supervised release, and a fine of $250,000. However, any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Laura Vartain and Nicholas Walsh are prosecuting the case with the assistance of Helen Yee, Kimberly Richardson, Margoth Turcios, Sutton Pierce, and Ian Meader. The prosecution is the result of an investigation by the FBI and the San Francisco Police Department.
Former Lynn Haven City Manager, Community Services Director, and Three Business Executives Indicted for $5 Million Hurricane Michael Cleanup Fraud ConspiracyRead the Press Release
PANAMA CITY, FLORIDA – Two former ranking City of Lynn Haven officials, including the city manager,
have been indicted by a federal grand jury for conspiring with three local business executives to
process some $5 million in fraudulent invoices for Hurricane Michael cleanup work that was not
performed. Lawrence Keefe, United States Attorney for the Northern District of Florida, announced
the indictments of former Lynn Haven City Manager Michael Edward White, 46; Lynn Haven Community
Services Director David Wayne Horton, 55; Erosion Control Specialists (ECS) owner David Mitchelle
White, 38; Greenleaf Lawn Care of Bay County owner Joshua Daniel Anderson, 43; and Shannon Delores
Rodriguez, a/k/a Shannon Delores Harris, 37, all of Panama City.The 35-count indictment charges the defendants with conspiring to commit wire fraud, substantive
counts of wire fraud, and conspiracy to commit money laundering. Michael White and Horton are also
charged with substantive counts of theft concerning programs receiving Federal funds and honest
services fraud. Michael White and David White are also charged with filing false claims to the
Federal Emergency Management Agency (FEMA). Horton is also charged with mail fraud concerning the
defrauding of an insurance company.“The greatest cost of public corruption is the potential widespread loss of public trust in our
government. It is a dangerous virus that threatens to infect public service and public trust in it,
and we are committed to stop the spread of that virus of corruption,” said Keefe, who last week
announced indictments in an unrelated public corruption case. “Preventing, pursuing, prosecuting
and punishing public corruption is among our highest priorities. The common thread in today’s case
and in last week’s case is simply this: an egregious abuse of power and position by people in
public service who betrayed their sacred duties – and those who sought to illegally scheme and
conspire with them – to breach the public’s trust.”“Abusing one's position for personal gain – especially in a time of crisis – is a blatant disregard
to the oath that every government official takes,” said Rachel L. Rojas, Special Agent in Charge of
the FBI Jacksonville Division. “Federal assistance programs are established to help individuals, families, and businesses that have suffered tremendous loss, and abusing these programs is egregious. The FBI is committed to protecting these programs from fraud to ensure that honest citizens can receive the assistance they deserve when they need a helping hand the most."“The Bay County Sheriff's Office will stand firm against corruption, and will continue to work with
our partners in the FBI and the U.S. Attorney’s Office to hold those who would tarnish the
reputation of Bay County accountable for their actions," Sheriff Tommy Ford said. "As Sheriff of
Bay County, I remain unwavering in my commitment to dedicate the resources needed to continue this
fight against corruption."The five defendants were arrested by agents and deputies of the Bay County Sherriff’s Office this
morning. Michael White was arrested in Albertville, Alabama. The remaining defendants were arrested
in Bay County.The indictment alleges that after Hurricane Michael, on October 16, 2018, the City of Lynn Haven
adopted a local state of emergency for post-disaster relief and planning and approved a resolution
waiving the procedures and formalities otherwise required under Florida law to take action to
ensure the safety, welfare, and health of the citizens of Lynn Haven. This included entering into
contracts, incurring obligations, and expending public funds. The resolution delegated emergency
powers to the mayor of Lynn Haven, or her designee City Manager Michael White, to discharge the
duties and exercise powers for the post-hurricane activities. The emergency declaration was ended
by Lynn Haven two weeks later. City Manager White entered into an emergency agreement with David
White and ECS to perform services for Lynn Haven related to post-hurricane assistance, with the
understanding that invoices submitted for payment to Lynn Haven would be submitted to FEMA for
reimbursement.The indictment alleges that David White used ECS and Anderson used Greenleaf as a means to
fraudulently obtain money from Lynn Haven by submitting invoices requesting payment for services
allegedly provided by ECS and Greenleaf to the city, but which were false and fraudulent as to a
number of material matters. City Manager White approved all ECS and Greenleaf invoices and directed
city employees to immediately pay ECS and Greenleaf for those invoices. Horton also approved
payment of these invoices and approved timesheets of employees that were submitted in support of
ECS and Greenleaf invoices to Lynn Haven and were then provided to FEMA. Horton also falsely
verified the attendance of ECS employees at various claimed work locations in Lynn Haven. Lynn
Haven was defrauded of approximately $5 million.The indictment also alleges that when ECS invoices were being assembled for submission to FEMA by
Lynn Haven for reimbursement, it was discovered that most of the ECS invoices that had been paid
provided no details in support of the requested payments. When directed to provide supporting
documentation for the monies requested and already paid, David White submitted false time sheets
prepared by Rodriguez. The time sheets were false and fraudulent in that they included names of
individuals who had not worked at the claimed location(s), were off that day, worked at other
projects outside Lynn Haven, or had never worked for ECS at the time of the timesheet.
Additionally, in many invoices, the specific Lynn Haven locations of work claimed to have been done
by ECS were false. Horton approved and falsely verified the timesheets claiming attendance of ECS
workers at various Lynn Haven locations.The indictment also alleges that David White billed Lynn Haven for clean-up activities by
individuals who were Greenleaf employees, working out of ECS. Anderson simultaneously submitted a false invoice to Lynn Haven for $50,004 for alleged debris cleanup at the same Lynn Haven locations. Michael White approved the payment to Anderson and issued a handwritten Lynn Haven check to Greenleaf totaling $66,402.58, which included $16,398.58 for alleged lawn services provided by Greenleaf after the hurricane.The indictment alleges that ECS invoices were submitted to Lynn Haven for payment of services that
were not authorized under the emergency contract and were for personal residences of some Lynn
Haven officials. These officials included Michael White and Horton. The performance of ECS
post-hurricane debris removal and repairs at the residences of some Lynn Haven officials was
concealed and not disclosed in the ECS invoices submitted by David White and approved by Michael
White, who caused Lynn Haven to pay the invoices.The indictment also alleges that Michael White and Horton located numerous projects for ECS to
handle that were outside the activities described in the Emergency Agreement. City Manager White
and Horton had ECS employees wrap Christmas gifts, prepare locations for a Halloween party, and
other miscellaneous acts that were not authorized under any agreement with Lynn Haven. Then, David
White submitted invoices that did not describe the actual activities performed, but instead falsely
claimed the work was debris removal or cleaning activities in Lynn Haven. David White billed Lynn
Haven for a minimum of $35.00 per hour for ECS employees plus an ECS supervisor at $90 per hour for
these unauthorized activities. Michael White approved these false invoices.According to the charges, after the initial declaration of an emergency by Lynn Haven had been
revoked and expired, Michael White and Horton sought to locate additional Lynn Haven projects that
could provide money to David White and Anderson. One project was for ECS to conduct trash pickup,
using a pickup truck and a trailer, at a cost of $300 per hour per crew throughout Lynn Haven. This
action was implemented despite the ability of Lynn Haven waste trucks to pick up large amounts of
household trash and deposit large amounts of trash at the dump at no increased cost to Lynn Haven.
False invoices were submitted by ECS for claimed trash pickup. For example, the indictment charges
that a false invoice for hurricane cleanup in the amount of $332,387.76 was submitted to Lynn Haven
by David White that falsely claimed trash pickup was conducted by ECS during a 14-day period
starting on October 18, 2018. No documentation was submitted in support of this invoice. The
claimed trash pickup did not occur, and there was no record of any trash being dumped at the Bay
County refuse location, City Manager White had not obtained approval from Bay County for ECS to use
the account of Lynn Haven to dump items at the Bay County facility until at least October 31, 2018.Another example of the fraud concerning trash pickups charged in the indictment came three months
after Hurricane Michael, when a false invoice for hurricane cleanup in the amount of
$479,020.68 was submitted to Lynn Haven by David White that falsely claimed trash pickup was
conducted by ECS during a 13-day period starting the day after New Year’s Day. The invoice also
falsely claimed that between 11 and 13 crews were used to collect trash daily. The invoice falsely
claimed trash pickup during this period totaling $32,278.68 per day for five days, $38,878.44 per
day for seven days, and $45,478.20 for the last day. City Manager White approved and caused the
payment of this invoice.The indictment further alleges that while David White and ECS were providing services to Lynn
Haven, Michael White received things of value from David White, including repairs to, and debris
removal from, the City Manager’s residence in Lynn Haven and his farm located outside Lynn Haven in
Bay County, and $300,000 for the purchase of Michael White’s farm and an automobile. The repairs to, and debris removal from, the residence and farm of Michael White were billed to Lynn Haven with false invoices submitted by David White to Lynn Haven that falsely stated the work had been performed at locations in Lynn Haven. Michael White directed City employees to pay the invoices. Also, during the sale of Michael White’s farm to David White, Michael White solicited David White to provide bids for projects at specific prices for work at City parks, and to provide additional false bids, which David White did.Similarly, the indictment alleges that while David White and ECS were providing services to Lynn
Haven, Horton received things of value from David White, including repairs to, and debris removal
from, Horton’s residence in Lynn Haven. Additionally, Horton accepted payment of some of his
travel, lodging, meals, entertainment, and food from David White on multiple occasions while David
White was providing services to Lynn Haven, and Horton was approving the invoices for payment and
falsely verifying ECS timesheets claiming attendance of workers at City locations. Additionally,
Horton sent a text message to David White requesting an invoice from ECS for work done at Horton’s
residence after the hurricane, and instructed the invoice to be at least $3,500, if not more. David
White then provided to Horton an ECS invoice for $9,600 that was falsely marked, “Paid in Full.”
Horton submitted this invoice to an insurance company in support of his insurance claim for $9,600.
Horton had not paid ECS or David White any money at the time that Horton submitted the invoice as
proof of his claim to an insurance company. The City had unwittingly paid ECS for the work on
Horton’s house through a false invoice.The Federal Bureau of Investigation and Bay County Sheriff’s Office conducted the investigation.
The case is being prosecuted by Assistant U.S. Attorney Stephen M. Kunz.The maximum terms of imprisonment for the offenses are as follows:
- Conspiracy to Commit Wire Fraud, Wire Fraud, Honest Services Fraud, Mail Fraud, and Conspiracy to
Commit Money Laundering: 20 years
- Theft Concerning Programs Receiving Federal Funds: 10 years
- Filing False Claims To Agency of the United States: 5 yearsAn indictment is merely an allegation by a grand jury that a defendant has committed a violation of
federal criminal law and is not evidence of guilt. All defendants are presumed innocent and
entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a
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of Florida, visit http://www.justice.gov/usao/fln/index.html.Former Chief Executive Officer of a Brazilian Petrochemical Company Charged for His Role in a Scheme to Pay Bribes to Brazilian Officials and to Falsify Company Books and RecordsRead the Press Release
An indictment was unsealed today charging a former chief executive officer (CEO) of Braskem S.A. (Braskem), a publicly traded Brazilian petrochemical company, for his role in a massive bribery and money laundering scheme involving Braskem and its parent company, Odebrecht S.A. (Odebrecht), that resulted in the diversion of hundreds of millions of dollars from Braskem into a secret slush fund that was used, in part, to pay bribes to government officials, political parties and others in Brazil to obtain and retain business.
Jose Carlos Grubisich, 62, a citizen of Brazil who served as the CEO and a member of the board of directors of Braskem, as well as in various capacities for Odebrecht, was charged with one count of conspiracy to violate the anti-bribery provision of the Foreign Corrupt Practices Act (FCPA), one count of conspiracy to violate the books and records provision of the FCPA and to fail as a corporate officer to certify financial reports and one count of conspiracy to commit international money laundering. Grubisich was arrested this morning, and is scheduled to be arraigned this afternoon before U.S. District Judge Raymond J. Dearie of the Eastern District of New York.
“Grubisich and other senior executives at Braskem and Odebrecht allegedly engaged in a massive and sophisticated international bribery and money laundering scheme, employing secret slush funds, shell companies, and false accounting,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “As demonstrated by the charges unsealed today, the Department continues to work closely with our domestic and international partners to root out and prosecute corporate fraud and corruption at the highest levels.”
“As alleged in the indictment, Jose Carlos Grubisich used his position as CEO of a major publicly traded petrochemical company to funnel hundreds of millions of dollars through offshore accounts to bribe power brokers and serve the interests of his company,” said U.S. Attorney Richard P. Donoghue for the Eastern District of New York. “Today’s indictment once again demonstrates the commitment of the U.S. Department of Justice to investigate and prosecute those who take advantage of the United States financial system to further their financial crimes.”
As alleged in the indictment, between approximately 2002 and 2014, Grubisich, together with other co-conspirators, including certain former Braskem and Odebrecht employees, engaged in a widespread bribery and money laundering scheme that resulted in the diversion of approximately $250 million of Braskem’s funds into a secret slush fund, which was used, in part, to pay bribes to government officials, political parties and others in Brazil to obtain and retain business and certain business advantages for Braskem. The slush fund was allegedly generated by payments from Braskem’s bank accounts in Brazil, New York and Florida pursuant to fraudulent contracts with offshore shell companies that were secretly controlled by Braskem. These shell companies funneled the slush funds to a department within Odebrecht responsible for making bribe payments, which ultimately made corrupt payments on Braskem’s behalf, the indictment alleges.
Additionally, as alleged in the indictment, while CEO of Braskem, Grubisich was involved in negotiating and approving bribes to government officials using money from the slush fund. These included alleged payments made to ensure that Braskem could retain a contract for a significant petrochemical project in Brazil, and to ensure that Braskem could obtain favorable pricing in contract negotiations with Petroleo Brasileiro S.A. – Petrobras, Brazil’s state-owned and state-controlled oil company. Grubisich regularly discussed the bribe payments with other co-conspirators, and was kept informed about bribe payments made on behalf of Braskem, the indictment alleges. Certain of the bribe payments that were allegedly negotiated and authorized by Grubisich were ultimately paid after Grubisich left his position as CEO of Braskem in 2008, but while he continued to serve in other capacities at Odebrecht and Braskem, and while he was a stockholder of Braskem.
Furthermore, as alleged in the indictment, while CEO of Braskem, Grubisich agreed to falsify Braskem’s books and records by causing Braskem to falsely record the payments to the offshore shell companies controlled by Braskem as “commissions.” Grubisich also signed false certifications submitted to the SEC that, among other things, attested that Braskem’s annual reports fairly and accurately represented Braskem’s financial condition, and that Grubisich, as Braskem’s principal officer, had disclosed all fraudulent conduct by Braskem’s management and other employees with control over Braskem’s financial reporting, the indictment alleges.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
Braskem and Odebrecht have each pleaded guilty in the Eastern District of New York to one-count criminal informations separately charging each with conspiracy to violate the anti-bribery provisions of the FCPA for their involvement in the widespread bribery and money laundering scheme. The cases are also assigned to Judge Dearie.
The FBI’s International Corruption squad in New York investigated this case. Assistant Chief Lorinda Laryea and Trial Attorney Leila Babaeva of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Alixandra Smith and Julia Nestor of the Eastern District of New York are prosecuting the case.
The Criminal Division’s Office of International Affairs also provided substantial assistance. The U.S. Securities and Exchange Commission, the Brazilian Ministerio Publico Federal, the Brazilian Departamento de Polícia Federal and the Office of the Attorney General of Switzerland provided significant cooperation.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
To learn more about the government’s FCPA enforcement efforts, go to www.justice.gov/criminal/fraud/fcpa.
Former CEO of Braskem Indicted for His Role in Bribery SchemeRead the Press Release
An indictment was unsealed today in federal court in Brooklyn charging Jose Carlos Grubisich, the former Chief Executive Officer (CEO) of Braskem S.A. (Braskem), a publicly traded Brazil-based petrochemical company, for his role in a massive bribery and money laundering scheme involving Braskem and its parent company, Odebrecht S.A. (Odebrecht). The scheme allegedly resulted in the diversion of hundreds of millions of dollars from Braskem to a secret slush fund used, in part, to pay bribes to government officials, political parties and others in Brazil to obtain and retain business. Grubisich, who also served as a member of the Board of Directors of Braskem, and in various capacities for Odebrecht, was charged with one count of conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA), one count of conspiracy to violate the books and records provisions of the FCPA and one count of conspiracy to commit money laundering.
Grubisich was arrested this morning, and will be arraigned this afternoon before United States District Judge Raymond J. Dearie.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
“As alleged in the indictment, Jose Carlos Grubisich used his position as CEO of a major publicly traded petrochemical company to funnel hundreds of millions of dollars through offshore accounts to bribe power brokers and serve the interests of his company,” stated United States Attorney Donoghue. “Today’s indictment once again demonstrates the commitment of the U.S. Department of Justice to investigate and prosecute those who take advantage of the United States financial system to further their financial crimes.”
“Grubisich and other senior executives at Braskem and Odebrecht allegedly engaged in a massive and sophisticated international bribery and money laundering scheme, employing secret slush funds, shell companies, and false accounting,” stated Assistant Attorney General Benczkowski. “As demonstrated by the charges unsealed today, the Department continues to work closely with our domestic and international partners to root out and prosecute corporate fraud and corruption at the highest levels.”
As alleged in the indictment, between approximately 2002 and 2014, Grubisich and his co-conspirators created a slush fund by making payments from Braskem’s bank accounts in Brazil, New York and Florida pursuant to fraudulent contracts with offshore shell companies secretly controlled by Braskem. The shell companies then funneled the slush funds to a department within Odebrecht that was responsible for making bribe payments on Braskem’s behalf.
As CEO of Braskem, Grubisich participated in negotiating and approving the bribes to government officials, including the payments made to ensure that Braskem retained a contract for a significant petrochemical project in Brazil and to ensure that Braskem could obtain favorable pricing in contract negotiations with Petroleo Brasileiro S.A. – Petrobras, Brazil’s state-owned and state-controlled oil company. Grubisich regularly discussed the bribe payments with his co-conspirators and was informed of bribe payments made on behalf of Braskem. Various bribe payments that were negotiated and authorized by Grubisich were ultimately paid after Grubisich left his position as CEO in 2008, but while he continued to serve in other capacities at Odebrecht and Braskem, and while he was a stockholder of Braskem.
Also while serving as CEO of Braskem, Grubisich agreed to falsify Braskem’s books and records by causing Braskem to record the payments to the offshore shell companies controlled by Braskem as “commissions.” He also signed false certifications submitted by Braskem to the United States Securities and Exchange Commission that attested to the fairness and accuracy of Braskem’s annual reports and financial condition, and to the disclosure of any fraudulent conduct by Braskem’s management and other employees with control over Braskem’s financial reporting.
On December 21, 2016, Braskem and Odebrecht pleaded guilty in the Eastern District of New York to criminal informations separately charging each with conspiracy to violate anti-bribery provisions of the FCPA for their involvement in the bribery and money laundering scheme.
The charges in the indictment announced today are allegations, and the defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant United States Attorneys Alixandra Smith and Julia Nestor of the Office’s Business and Securities Fraud Section, and Criminal Division Fraud Section FCPA Assistant Chief Lorinda Laryea and Fraud Section Trial Attorney Leila Babaeva. The FBI’s International Corruption squad in New York investigated this case.
The Criminal Division’s Office of International Affairs also provided substantial assistance. The Securities and Exchange Commission, the Brazilian Ministerio Publico Federal and Departamento de Polícia Federal, and the Office of the Attorney General in Switzerland provided significant cooperation.
The Defendant:
JOSE CARLOS GRUBISICH
Age: 62
Sao Paulo, BrazilE.D.N.Y. Docket No. 19-CR-102 (RJD)
Former Beaufort Securities Investment Manager Pleads Guilty to Conspiracies to Commit Securities Fraud and to Defraud the United States by Failing to Comply with Foreign Account Tax Compliance ActRead the Press Release
Earlier today, in federal court in Brooklyn, Panayiotis Kyriacou, a former investment manager at Beaufort Securities Limited, a brokerage firm in London, pleaded guilty to conspiring to commit securities fraud and to defraud the United States by failing to comply with the Foreign Account Tax Compliance Act (FATCA). FATCA is a federal law that requires foreign financial institutions to identify their U.S. customers and report information about financial accounts held by U.S. taxpayers, either directly or through a foreign entity (FATCA Information). FATCA’s primary aim is to prevent U.S. taxpayers from using foreign accounts to facilitate the commission of federal tax offenses. The guilty plea was entered before United States District Judge Kiyo A. Matsumoto. When he is sentenced, Kyriacou faces a maximum of 10 years’ imprisonment.
Richard P. Donoghue, United States Attorney for the Eastern District of New York; Richard E. Zuckerman, Principal Deputy Assistant Attorney General of the Justice Department’s Tax Division; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Jonathan D. Larsen, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI), announced the guilty plea.
In announcing the guilty plea, Mr. Donoghue thanked the U.S. Securities and Exchange Commission’s (SEC) New York Regional Office and the Washington, D.C. Office, the City of London Police, the U.K.’s Financial Conduct Authority and the Hungarian National Bureau of Investigation for their significant cooperation and assistance during the investigation.
In the fall of 2016, an Undercover Agent contacted Kyriacou and stated that he was a U.S. citizen interested in opening brokerage accounts at Beaufort Securities to execute trades in several multi-million dollar stock manipulation deals in stocks traded on U.S. over-the-counter markets. In furtherance of the scheme, Kyriacou and Beaufort Securities opened six brokerage accounts. Notwithstanding that a U.S. citizen would be the beneficial owner of each of the accounts, at no time did Kyriacou request FATCA Information from the Undercover Agent. The brokerage accounts were opened for the Undercover Agent in the names of various international business corporations based in Belize, with Belizean nominees listed as the beneficial owners.
In January 2018, Kyriacou facilitated the manipulation of trading in the stock of HD View 360, Inc., a publicly traded U.S. company that traded under the ticker symbol HDVW, by executing a match trade of HDVW stock. In addition, Kyriacou agreed to launder what the Undercover Agent represented to be the proceeds of securities fraud through the purchase and sale of artworks.
The case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Jacquelyn M. Kasulis, David Gopstein and Michael T. Keilty are in charge of the prosecution.
The Defendant:
PETER KYRIACOU
Age: 28
London, EnglandE.D.N.Y. Docket No. 18-CR-102 (S-1) (KAM)
Former Baltimore Mayor Catherine Pugh Facing 11-Count Federal Indictment for Wire Fraud and Tax-Related ChargesRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Catherine Elizabeth Pugh, age 69, of Baltimore, Maryland, on the federal charges of conspiracy to commit wire fraud, seven counts of wire fraud, conspiracy to defraud the United States, and two counts of tax evasion. The indictment was returned on November 14, 2019, and was unsealed today. Catherine Pugh is scheduled for an initial appearance and arraignment in U.S. District Court in Baltimore before U.S. District Judge Deborah K. Chasanow on November 21, 2019 at 1:00 p.m. Pugh is expected to self-surrender to the U.S. Marshals prior to the hearing on November 21st.
The guilty pleas of former Baltimore City employees Gary Brown, Jr., age 38, of Baltimore, and Roslyn Wedington, age 50, of Rosedale, Maryland, were also unsealed today. On November 13, 2019, Brown pleaded guilty to conspiracy to commit wire fraud, to two counts of conspiracy to defraud the United States, and to filing a false tax return. That same day, Wedington pleaded guilty to conspiracy to defraud the United States and to five counts of filing a false tax return.
The indictment and guilty pleas were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“Our elected officials must place the interests of the citizens above their own,” said United States Attorney Robert K. Hur. “Corrupt public employees rip off the taxpayers and undermine everyone’s faith in government. The U.S. Attorney’s Office and our law enforcement partners will zealously pursue those who abuse the taxpayers’ trust and bring them to justice.”
“The people of Maryland expect elected officials to make decisions based on the public's best interests, not to abuse their office for personal gain,” said Special Agent in Charge Jennifer Boone of the FBI's Baltimore Division. “The indictment alleges that Catherine Pugh betrayed the public's trust. The FBI will continue to diligently work to detect fraud and corruption and hold those who violate this trust accountable.”
“Public officials should be a role model for the citizens they serve - adhering to the highest of standards,” said IRS-CI SAC Kelly Jackson. “These individuals chose to evade payment of their fair share of taxes instead, actions for which they must be held accountable in order to preserve public trust and confidence.”
According to Pugh’s 11-count indictment, from approximately 2007 through 2016 Pugh served in the Maryland State Senate, where she served on various legislative committees, including the Senate Health Committee. In 2011, Pugh ran an unsuccessful campaign to be mayor of Baltimore. In September 2015, Pugh again ran for mayor of Baltimore, and won, becoming Mayor on December 6, 2016. Pugh owned Healthy Holly, LLC, a company formed in Maryland on January 14, 2011, and used to publish and sell children’s books she had written. Pugh also owned Catherine E. Pugh and Company, Inc., a marketing and public relations consulting company organized in Maryland in 1997. The principal address for both companies was Pugh’s residence in Baltimore. Pugh was also the sole signatory on the Healthy Holly and Pugh Company bank accounts. Pugh did not maintain a personal bank account, using her business bank accounts for personal and business finances.
As stated in the indictment, between June 2011 and August 2017, four Healthy Holly books were published, with each book listing “Catherine Pugh” as author. The vast majority of books published by Healthy Holly were marketed and sold directly to non-profit organizations and foundations, many of whom did business or attempted to do business with the Maryland and Baltimore City governments.
Wire Fraud Allegations
The indictment alleges that from November 2011 until March 2019, Pugh conspired with Gary Brown to defraud purchasers of Healthy Holly books in order to enrich themselves, promote Pugh’s political career, and fund her campaign for mayor. The indictment alleges that the conspirators employed several methods to defraud, including: not delivering books after accepting payments for the books; accepting payments for books to be delivered to a third party on behalf of a purchaser, then converting some or all of the purchased books to their own use without the purchaser’s or third party’s knowledge; and by double-selling books without either purchaser’s knowledge or consent. Pugh allegedly stored quantities of fraudulently obtained Healthy Holly books at various locations, including Pugh’s residence, her state legislative offices, her mayoral office, and a public storage locker used by Pugh’s mayoral campaign. The indictment alleges that Pugh used the proceeds of the sale of fraudulently obtained Healthy Holly books for her own purposes, including: to fund straw donations to Pugh’s mayoral election campaign; and to fund the purchase and renovation of a house in Baltimore City.
Conspiracy to Defraud the United States/Tax Evasion
Further, the indictment alleges that Pugh issued Healthy Holly checks payable to Brown, for the purpose of funding straw donations to the Committee to Elect Catherine Pugh. The indictment alleges that Brown cashed the checks and used the untraceable cash to fund money orders, debit cards, and personal checks in the names of straw donors totaling approximately $35,800. The straw donations purchased with the cash were allegedly then deposited into the bank account of the Committee to Elect Catherine Pugh. The indictment alleges that Pugh wrote additional Healthy Holly checks to Brown totaling $26,300, which he cashed and gave the cash to Pugh. On January 11, 2017, Brown was charged with, and ultimately convicted of, violating Maryland’s election laws for funneling $18,000 of the straw donations to Pugh’s campaign. The Committee to Elect Catherine Pugh issued five checks in the names of three of the straw donors, with a notation in the memo line on each check stating “returned contribution.” The indictment alleges that none of the straw donors received any of the returned money, and instead, at Pugh’s direction, Brown used the money to pay for his legal defense.
In addition, the indictment alleges that Pugh conspired to evade taxes on the income received from the sales of Healthy Holly books. The indictment alleges that to accomplish this, Pugh concealed from the IRS the fact that she created false business expenses to offset the income she received from the sale of books by issuing Healthy Holly checks to Brown for services and/or products purportedly supplied by his company. Pugh allegedly filed false income tax returns for 2016 and 2015, in which she underreported her income. For example, the indictment alleges that for tax year 2016 Pugh claimed her taxable income was $31,020 and the tax due was $4,168, when in fact, Pugh’s taxable income was $322,365, with an income tax due of approximately $102,444.
If convicted, Pugh faces a maximum sentence of 20 years in federal prison for the wire fraud conspiracy and for each of the seven counts of wire fraud; five years in federal prison for conspiracy to defraud the United States; and five years in federal prison for each of the two counts of tax evasion. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Brown Wire Fraud Conspiracy
According to Gary Brown’s plea agreement, from November 2011 until March 2019, he conspired with Catherine Pugh to fraudulently sell and distribute tens of thousands of Healthy Holly books. Brown admitted that over that period they executed the scheme in three ways: by selling the books, keeping the money and not delivering the books; provided books to purchasers, but later converted them to their own use at campaign events and government functions; and resold books that had previously been purchased and donated to the Baltimore City Public Schools.
Brown Conspiracy with Pugh to Defraud the United States
Further, as detailed in his plea agreement, Brown cashed checks Pugh wrote to him from the Healthy Holly account, then used the cash to fund money orders, debit cards, and personal checks in the names of straw donors, which were then submitted to the Committee to Elect Catherine Pugh. Brown also admitted that he cashed some of the Healthy Holly checks and gave the cash to Pugh. To conceal the straw-donation scheme and avoid paying taxes that might result from the scheme, Pugh and Brown provided false information to the IRS regarding the purpose of the Healthy Holly checks.
Brown and Wedington Conspiracy to Defraud the United States/Filing False Tax Returns
Brown and Wedington both admitted that they conspired to avoid tax withholdings from Wedington’s payroll checks while Wedington was the Executive Director of the Maryland Center for Adult Training (MCAT) and Brown was the Chairman of the Board of Directors. Specifically, in 2013, Wedington’s salary was garnished due to outstanding student loan debt and medical bills. In order to avoid further garnishments, Wedington asked Brown to take her “off payroll,” which meant that MCAT would no longer submit her name to the payroll service provider for the purpose of calculating taxes to be withheld from her salary. Brown agreed to the arrangement and had MCAT make electronic deposits into his personal bank account in an amount that exceeded the annual salary owed to Wedington, creating the pretense that he was doing work for MCAT as an independent contractor. Brown then wrote checks to Wedington and/or gave her cash equal to or greater than her salary, which was more than $80,000 per year. No taxes were withheld from the funds Brown paid to Wedington, nor did her salary go through Wedington’s bank account, where it could be garnished. In addition, Brown prepared fraudulent tax returns for Wedington for tax years 2013 through 2017, which did not report Wedington’s MCAT income and made a variety of false entries, resulting in refunds to which Wedington was not entitled and avoiding over $121,000 in total taxes due and owing. Brown also filed a false individual income tax return for tax year 2016 for himself, which falsely listed the $64,325 of Healthy Holly payments as business income. In addition, from 2016 through 2018, Brown worked part-time as a freelance tax preparer and charged a fee to prepare dozens of tax returns that he filed on behalf of his family, friends, and associates. Brown included false information in all of those tax returns in order to obtain larger refunds for his customers. The fraudulently obtained refunds totaled more than $100,000.
Brown faces a maximum of 20 years in federal prison for the wire fraud conspiracy. Brown and Wedington each face a maximum sentence of five years in federal prison for each count of conspiracy to defraud the United States, and three years in prison for each count of filing a false tax return. Judge Chasanow has not yet scheduled sentencing for Brown or Wedington.
United States Attorney Robert K. Hur commended the FBI and the IRS Criminal Investigation for their work in the investigation and thanked the U.S. Department of Labor - Office of Inspector General, Office of Investigations - Labor Racketeering and Fraud, the Maryland State Prosecutor’s Office, and the Baltimore City Office of Inspector General for their assistance. Mr. Hur thanked Assistant U.S. Attorneys Martin J. Clarke and Leo J. Wise, who are prosecuting the case.
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Fitchburg Woman Pleads Guilty to Drug TraffickingRead the Press Release
CONCORD - Mallory Nooks, 31, of Fitchburg, pleaded guilty in federal court to possession and distribution of cocaine, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on April 14, 2018, Nooks possessed 14 baggies of crack cocaine that she intended to distribute, after she had already distributed crack cocaine to another individual. She also possessed a Ruger LCR 38 Special, .38 caliber pistol, loaded with five rounds of ammunition in her purse.
Nooks is scheduled to be sentenced on February 25, 2019.
“Drug traffickers endanger the lives and safety of their customers as well as the general public,” said U.S. Attorney Murray. “The threat is compounded when the drug dealer is armed with a firearm. In order to maintain the safety of our citizens, we will not hesitate to pursue federal charges against drug dealers who possess or use firearms.”
"Every day, law enforcement sees the lives destroyed and families torn apart by the worst drug crisis in our country's history. All Mallory Nooks saw was a chance to make a buck," said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. "The FBI has said more often than we'd like that drugs threaten fatal consequences for all who cross their path. It is a good day for law enforcement when one less armed trafficker is free to capitalize on our communities.”
This matter was investigated by the Federal Bureau of Investigation and the Nashua Police Department. The case is being prosecuted by Assistant U.S. Attorneys Georgiana Konesky and Anna Krasinski.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Fifteen West Side Loma Gang Members and Associates Indicted in Federal CourtRead the Press Release
BOISE – A federal grand jury indicted fifteen members and associates of the West Side Loma gang for drug trafficking and firearms crimes, U.S. Attorney Bart M. Davis announced today. The charges stem from an investigation by the Treasure Valley Metro Violent Crimes Task Force.
The charged defendants are Kristina Alvarado, 38, of Nampa; Marvin Arredondo, 30, of Parma; Vanessa Campos, 31, of Caldwell; Brooks Case, 32, of Star; Javier Deluna, 29, of Nampa; Alfredo Esparza, Jr., 48, of Nampa; Leno Esparza, 28, of Nampa; Elisa Mata, 34, of Nampa; Arturo Fuentes, 41, of Caldwell; Alex Ibarra, 21, of Homedale; Stephen Janoushek, 66, of Meridian; Lorensa Muniz, 32, of Caldwell; Miriam Murillo, 33, of Nampa; Harley Ogburn, 27, of Nampa; and Breanna Stell, 28, of Parma. All were indicted on November 13, 2019.
All fifteen defendants are charged with distribution of methamphetamine with most charged for distributing more pure amounts of methamphetamine. Arredondo is also charged with unlawful possession of a firearm and possession of an unregistered firearm. Alvarado, Case, and Stell were already in custody at Canyon County Jail. Ibarra, Mata, Murillo, and Ogburn were already in custody at Idaho Department of Correction. Arredondo, Campos, Deluna, Alfredo Esparza, Jr., Fuentes, Janoushek, and Muniz were arrested earlier this week. Leno Esparza remains at large.
Federal methamphetamine distribution charges are generally punishable by up to twenty years in prison, a fine up to $1 million, and at least three years of supervised release. Defendants charged with distributing more than five grams of pure methamphetamine face a minimum term of five years and up to forty years in prison, a fine up to $5 million, and a minimum of four years supervised release. Defendants charged with distributing more than fifty grams of pure methamphetamine face a minimum term of ten years and up to life in prison, a fine up to $10 million, and a minimum of five years supervised release.
The charges of unlawful possession of a firearm and possession of an unregistered firearm are punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release.
The Treasure Valley Metro Violent Crimes Task Force was created in 2005 and is comprised of federal, state, and local law enforcement agencies including Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Ada County Sheriff’s Office; Boise Police Department; Caldwell Police Department; Canyon County Sheriff’s Office; Meridian Police Department; Nampa Police Department; and Idaho Department of Correction. The Task Force conducts complex, long-term investigations of criminal gangs.
These cases are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership, the Canyon County Prosecuting Attorney’s Office, and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration in creating coherent regional growth. For more information, visit treasurevalleypartners.org.
An indictment is a means of charging a person with criminal activity. It is not evidence. A person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Felon Sent Back to Prison for Four More Years After Possessing Firearm Three Weeks After Being Paroled from State CustodyRead the Press Release
A man who illegally possessed a firearm was sentenced today to four years in federal prison.
Christopher Forbes, age 27, from Cedar Rapids, Iowa, received the prison term after a June 13, 2019, guilty plea to being a felon in possession of a firearm.
Evidence during the case showed police located a firearm in Forbes’ vehicle after conducting a traffic stop. Forbes was on parole at the time, having been convicted of first degree burglary, assault on a peace officer with a dangerous weapon, eluding, and domestic abuse assault.
Forbes was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Forbes was sentenced to 48 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.
This case 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.
Forbes is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case is being prosecuted by Assistant United States Attorney Lisa C. Williams and investigated by the Cedar Rapids Safe Streets Task Force. The task force is composed of representatives from the Federal Bureau of Investigation and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-0012.
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Federal Indictment Charges Former Vice Chancellor of City Colleges of Chicago with Devising Procurement Fraud SchemeRead the Press Release
CHICAGO — A former vice chancellor for City Colleges of Chicago obtained payments, some in the form of kickbacks, from vendors in exchange for steering them contracts for community canvassing and flyer distribution services, according to an indictment returned in federal court in Chicago.
SHAROD GORDON, 45, of Oak Park, is charged with 16 counts of wire fraud. Gordon was employed by City Colleges of Chicago as District Director of Community Affairs, then as Associate Vice Chancellor of Community Relations and Student Recruitment, and most recently as Vice Chancellor of Legislative and Community Affairs.
The indictment alleges that some of the vendor-companies were formed by City Colleges employees or associates of Gordon for the purpose of applying for the contracts. In some instances, the work was never performed even though invoices were submitted and City Colleges paid them, the charges allege. Upon receipt of the payments, representatives of several vendor-companies gave a portion of the payments to Gordon, directly or indirectly, and some of those payments were in the form of kickbacks, the charges allege. The indictment seeks forfeiture of approximately $349,500 in criminally derived proceeds from Gordon and seven co-defendants.
The indictment was returned Tuesday in U.S. District Court in Chicago. Arraignments have not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI. The Office of Inspector General for the City Colleges of Chicago provided substantial assistance in the investigation. The government is represented by Assistant U.S. Attorneys Georgia N. Alexakis and Timothy J. Storino.
In addition to Gordon, the indictment charges seven other defendants with participating in the scheme:
- ANGELIQUE ORR, 47, of Berwyn, is charged with five counts of wire fraud. Orr was married to Gordon from 1998 to 2013, the indictment states.
- KRYSTAL STOKES, 39, of North Bay Village, Fla., is charged with two counts of wire fraud and one count of making a false statement to the FBI. Stokes previously worked at City Colleges as a community outreach worker.
- MARVA SMITH, 37, of Chicago, is charged with two counts of wire fraud. Smith worked at City Colleges as a liaison to governmental agencies.
- TIFFANY MCQUEEN, 43, of Naperville, is charged with two counts of wire fraud and one count of making a false statement to the FBI. McQueen was an alleged associate of Gordon.
- NANCY VAZQUEZ, 48, of Chicago, is charged with two counts of wire fraud. Vazquez was a lobbyist who operated a lobbying and consulting firm.
- MARQUITA PAYNE, 38, of Frisco, Texas, is charged with two counts of wire fraud. Payne was an alleged associate of Gordon and the registered agent of a consulting company.
- TIFFANY CAPEL, 35, of Detroit, Mich., is charged with one count of wire fraud. Capel was an alleged associate of Gordon who operated a marketing, branding, and apparel design company.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count of wire fraud is punishable by up to 20 years in prison, while the maximum sentence for each false statement count is five years. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
Fayette County Man Indicted on Multiple Counts of Robbing a Lexington PharmacyRead the Press Release
LEXINGTON, Ky. – Michael R. McReynolds Jr., 32, of Lexington, was indicted on Wednesday by a federal grand jury, on charges related to two separate robberies of the same Lexington pharmacy, in September and October 2019.
The five-count indictment against McReynolds charges him with two counts of interference with commerce by robbery, two counts of carrying and using a firearm during a crime of violence, and one count of possession of oxycodone with the intent to distribute.
The indictment alleges that on September 27 and October 18, 2019, McReynolds stole money and controlled substances from Hubbard and Curry Pharmacy, by means of actual and threatened force, violence, and fear of injury. During each robbery, the defendant is alleged to have also brandished, carried, and used a firearm. The indictment further alleges that on October 21, 2019, the defendant possessed oxycodone with the intent to distribute.
The investigation into these offenses was conducted by agents with the DEA, in conjunction with the Lexington Police Department.
A date for McReynolds to appear in Court on the charges has not yet been scheduled. For each count of robbery, McReynolds faces a maximum sentence of 20 years and a $250,000 fine. For each count involving the firearm, McReynolds faces a maximum sentence of life and a $250,000 fine. However, any sentence following a conviction would be imposed by the Court after its consideration of the United States Sentencing Guidelines and applicable federal sentencing statutes.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Dan Dodds, Special Agent in Charge of the DEA; and Lawrence Weathers, Chief of the Lexington Police Department, jointly made the announcement.
Any indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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Essex County Man Charged with Distributing and Possessing Child PornographyRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was indicted today on a charge of distributing and possessing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Keith Voolgaris, 62, of Newark, is charged by indictment with one count of distributing child pornography and one count of possessing child pornography. Voolgaris was initially charged by complaint in September 2019.
According to documents filed in this case and statements made in court:
Between July 21, 2017, and Sept. 8, 2017, Voolgaris distributed and possessed at least 50 videos depicting the sexual abuse of minors, including prepubescent children. He used a “chat” website to send numerous messages to another child pornography distributor in Minnesota. Many of those messages contained links to Dropbox files that were found to contain images of child sexual abuse. A subsequent search of Voolgaris’ email accounts revealed numerous additional videos and images of child sexual abuse.
Voolgaris has prior convictions for receiving or distributing child pornography and for possession of child pornography. Accordingly, the charge of distribution of child pornography by a repeat offender carries a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 40 years in prison and a $250,000 fine. The charge of possession of child pornography depicting prepubescent children by a repeat offender carries a mandatory minimum penalty of 10 years in prison, a maximum penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Sarah A. Sulkowski of the U.S. Attorney’s Office Cybercrime Unit in Newark.
The charge and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Chester Keller Esq., Assistant Federal Public Defender, Newark
Eight Members of Fraudulent Prescription Ring in St. John the Baptist Parish SentencedRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that SHALLON DAVIS DUNMILES, together with LASHONDA MELANCON, DANYELLE TUCO, ANDREA STALKS, EBONY STEWART, CORTAZ WILLIAMS, DANIELLE ANDERSON, and WILFRED PERRILLOUX have all been sentenced after pleading guilty to charges stemming from their arrest in St. John the Baptist Parish last year for fraudulently obtaining and distributing prescription drugs using a physician’s prescription pad.
According to Court documents, DUNMILES, a former employee at a medical clinic in Laplace, and MELANCON were sentenced by District Court Judge Lance M. Africk on November 20, 2019 and October 23, 2019, respectively. DUNMILES was sentenced to 18 months of imprisonment, followed by three years of supervised release. MELANCON was sentenced to 12 months and 1 day of imprisonment, followed by three years of supervised release. Both women were sentenced after pleading guilty to conspiracy to possess and possess with the intent to distribute illicitly obtained prescription medications, including dextroamphetamine/Adderall, a Schedule II drug controlled substance, and promethazine with codeine, a Schedule V drug controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1) and 846. The investigation revealed that during the course of the conspiracy, DUNMILES wrote approximately 148 fraudulent prescriptions using her former employer’s prescription pad. Together with MELANCON, DUNMILES distributed the prescriptions, often in exchange for money.
PERRILLOUX, STALKS, STEWART, TUCO, WILLIAMS, and ANDERSON were all sentenced previously after pleading guilty to conspiracy to acquire or obtain possession of the prescription medication by misrepresentation, fraud, forgery, deception, or subterfuge, in violation of Title 21, United States Code, Sections 843(a) and 846. The investigation revealed that these individuals were all involved with obtaining the fraudulent prescriptions from DUNMILES and MELANCON. PERRILLOUX was sentenced to 10 months imprisonment, followed by a one-year term of supervised release. STALKS, STEWART, TUCO, WILLIAMS, and ANDERSON were all sentenced to a three-year term of probation.
U.S. Attorney Peter G. Strasser also praised the work of the St. John the Baptist Parish Sheriff’s Office Special Operations Division and the Drug Enforcement Administration’s Tactical Diversion Squad (TDS) in investigating this matter. Assistant United States Attorney Shirin Hakimzadeh is in charge of the prosecution.
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Eight Defendants Charged as a Result of Joint Federal and State Investigation of a Drug Trafficking Organization in BurlingtonRead the Press Release
DAVENPORT, Iowa – Eight defendants are facing federal criminal charges as part of a multi-year joint federal and state investigation of a large drug trafficking organization that operated out of Burlington, Iowa. Five of the federal defendants were arrested yesterday, November 19, 2019. Those arrested will make their initial appearance in federal court at the United States Courthouse, in Davenport, on Wednesday, November 20, 2019.
The charges were announced by Marc Krickbaum, United States Attorney for the Southern District of Iowa; Kristi Johnson, Special Agent-in-Charge of the Omaha Field Office of the Federal Bureau of Investigation; Lisa Schaefer, Des Moines County, Iowa, Attorney; Dennis Kramer, Chief of Police of the Burlington, Iowa, Police Department; and Robert Copley, Chief of Police of the Quincy, Illinois, Police Department.
The charges stem from a long-term investigation conducted by numerous federal, state, and local law enforcement agencies including: the Federal Bureau of Investigation; Southeast Iowa Narcotics Taskforce; Burlington, Iowa, Police Department; Des Moines County, Iowa, Sheriff’s Office; West Central Illinois Taskforce; Quincy, Illinois, Police Department; Drug Enforcement Administration; Iowa Division of Narcotics Enforcement; Henry County, Iowa, Sheriff’s Office; Mt. Pleasant, Iowa, Police Department; West Burlington, Iowa, Police Department; Keokuk, Iowa, Police Department; Ft. Madison, Iowa, Police Department; Lee County, Iowa, Sheriff’s Office; Iowa City, Iowa, Police Department; Johnson County, Iowa, Sheriff’s Office; North Liberty, Iowa, Police Department; Coralville, Iowa, Police Department; Muscatine County, Iowa, Sheriff’s Office; Louisa County, Iowa, Sheriff’s Office; Washington County, Iowa, Sheriff’s Office; Bettendorf, Iowa, Police Department; Illinois State Police; Monmouth, Illinois, Police Department; Macomb, Illinois, Police Department; Galesburg, Illinois, Police Department; Adams County, Illinois, Sheriff’s Office; and Fulton County, Illinois, Sheriff’s Office.
Eight defendants were charged by complaint in the United States District Court for the Southern District of Iowa, stemming from a years-long investigation of this drug trafficking organization. Those arrested include KENDRICK PAGE, BREON RAQUON ARMSTRONG, LAMAR HARRIS, TRISTAN DAVIS, and JAMES LEWIS MILES, Jr. The identities of those who have not yet been arrested remain sealed at this time. Additionally, search warrants were executed at multiple locations in the Southern District of Iowa, Northern District of Illinois, and Northern District of Texas. Others involved in this drug trafficking organization have previously been arrested in both the Southern District of Iowa, and the Central District of Illinois.
The charges in the complaints carry maximum penalties of between 40 years and life imprisonment. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines. There is no parole in the federal court system.
The public is reminded that charges contain only accusations and are not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
These cases are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of 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.
ADDENDUM
In addition to the defendants arrested this week, the United States Attorney’s Office for the Southern District of Iowa has indicted 18 individuals in the last year from the Burlington, Iowa, area. To date, 16 defendants have been arrested and the names, case numbers, charges and penalties are outlined below. The other cases remain sealed pending arrest.
1. John Patrick Auwaerter Case Number 3:18-cr-101
Title 21, U.S.C. § 846 – Conspiracy to Distribute Controlled Substances
Maximum Penalty is life imprisonment; mandatory minimum of 10 yearsTitle 21, U.S.C. § 841(a)(1), 841(b)(1)(B) – Possession of Methamphetamine with Intent to Distribute
Maximum Penalty is 40 years; mandatory minimum of 5 yearsTitle 21, U.S.C. § 841(a)(1), 841(b)(1)(A) – Possession of Methamphetamine with Intent to Distribute
Maximum Penalty is life imprisonment; mandatory minimum of 10 yearsTitle 18, U.S.C. § 924(c)(1)(A) – Carry a Firearm During and In Relation to a Drug Trafficking Crime
Maximum Penalty is life imprisonment; mandatory minimum of 5 yearsTitle 18, U.S.C. § 922(g)(1) – Felon in Possession of a Firearm and Ammunition
Maximum Penalty is 10 years in custodyOn September 4, 2019, the Honorable Michael J. Melloy, Senior United States 8th Circuit Judge, sentenced Auwaerter to 180 months of imprisonment and five years of supervised release.
2. Michael Lee Davis Case Number 3:18-cr-102
Title 21, U.S.C. § 841(a)(1), 841(b)(1)(A) – Possession of Methamphetamine With Intent to Deliver
Maximum Penalty is life imprisonment; mandatory minimum of 10 yearsTitle 18, U.S.C. § 924(c)(1)(A) – Carry a Firearm During and In Relation to a Drug Trafficking Crime
Maximum Penalty is life imprisonment; mandatory minimum of 5 yearsTitle 18, U.S.C. § 922(g)(1) – Felon in Possession of a Firearm
Maximum Penalty is 10 years in custodyOn September 25, 2019, the Honorable John A. Jarvey, Chief United States District Court, sentenced Davis to 120 months of imprisonment and 5 years of supervised release.
3. Rachel Marie Horn Case Number 3:19-cr-6
Title 21, U.S.C. § 841(a)(1), 841(b)(1)(B) – Distribution of a Controlled Substance
Maximum Penalty is 40 years in custody; mandatory minimum of 5 yearsTitle 21, U.S.C. § 841(a)(1), 841(b)(1)(A) – Possession with Intent to Distribute a Controlled Substance
Maximum Penalty is life imprisonment; mandatory minimum of 10 yearsTitle 18, U.S.C. § 922(g)(1) – Felon in Possession of a Firearm
Maximum Penalty is 10 years in custodyOn November 14, 2019, the Honorable John A. Jarvey, Chief United States District Court, sentenced Horn to 240 months of imprisonment and 5 years of supervised release.
4. Tyreon Leseanjea Woodard Case Number 3:19-cr-10
Title 18, U.S.C. § 922(g)(1) – Felon in Possession of a Firearm
Maximum Penalty is 10 years in custodyOn September 25, 2019, the Honorable John A. Jarvey, Chief United States District Court, sentenced Woodard to 70 months of imprisonment and 3 years of supervised release.
5. Gerald Victor Terry Case Number 3:19-cr-19
Title 21, U.S.C. § 841(a)(1), 841(b)(1)(A) – Distribution of a Controlled Substance
Maximum Penalty is life imprisonment; mandatory minimum of 10 years6. Pamela Sue Hester Case Number 3:19-cr-41
Title 21, U.S.C. § 841(a)(1), 841(b)(1)(C) – Distribution of a Controlled Substance
Maximum Penalty is 40 years in custody; 5 year mandatory minimumTitle 21, U.S.C. § 841(a)(1), 841(b)(1)(A) – Possession With Intent to Distribute a Controlled Substance
Maximum Penalty is life imprisonment; mandatory minimum of 10 years7. Michael Antonio Davison Case Number 3:19-cr-43
Title 21, U.S.C. § 846 – Conspiracy to Distribute a Controlled Substance
Maximum Penalty is life in custody; mandatory minimum of 10 yearsTitle 21, U.S.C. § 841(a)(1), 841(b)(1)(A) – Possession With Intent to Distribute a Controlled Substance
Maximum Penalty is life in custody; mandatory minimum of 10 years8. Norris Davison Case Number 3:19-cr-43
Title 21, U.S.C. § 846 – Conspiracy to Distribute a Controlled Substance
Maximum Penalty is life in custody; mandatory minimum of 10 yearsTitle 21, U.S.C. § 841(a)(1), 841(b)(1)(A) –Distribution of a Controlled Substance
Maximum Penalty is life in custody; mandatory minimum of 10 years9. Wilbert James Bowers Case Number 3:19-cr-43
Title 21, U.S.C. § 846 – Conspiracy to Distribute a Controlled Substance
Maximum Penalty is life in custody; mandatory minimum of 10 years10. Justin Harold Love Case Number 3:19-cr-43
Title 21, U.S.C. § 846 – Conspiracy to Distribute a Controlled Substance
Maximum Penalty is life in custody; mandatory minimum of 10 years11. Anthony Collins Case Number 3:19-cr-46
Title 21, U.S.C. § 841(a)(1), 841(b)(1)(A) – Distribution of a Controlled Substance (three counts)
Maximum Penalty is life in custody; mandatory minimum of 10 years12. Demetrius Ernest Alexander Case Number 3:19-cr-66
Title 18, U.S.C. § 922(g)(1), 922(g)(3) – Prohibited Person in Possession of a Firearm
Maximum Penalty is 10 years in custodyTitle 21, U.S.C. § 844(a) – Possession of a Controlled Substance
Maximum Penalty is 1 year in custody13. Charles Lester Warner Case Number 3:19-cr-87
Title 18, U.S.C. § 841(a)(1), 841(b)(1)(A) – Possession With Intent to Distribute a Controlled Substance
Maximum Penalty is life imprisonment; mandatory minimum of 10 years14. Lloyd Davenport Case Number 3:19-cr-91
Title 21, U.S.C. § 841(a)(1), 841(b)(1)(A) – Distribution of a Controlled Substance
Maximum Penalty is life imprisonment; mandatory minimum of 10 yearsTitle 21, U.S.C. § 841(a)(1), 841(b)(1)(A) – Possession with Intent to Distribute a Controlled Substance
Maximum Penalty is life imprisonment; mandatory minimum of 10 years15. Johnathan Keith Sneed Case Number 3:19-cr-99
Title 18, U.S.C. § 922(g)(1) – Felon in Possession of a Firearm
Maximum Penalty is 10 years in custody16. Allen Julian Fields, Jr. Case Number 3:19-cr-117
Title 18, U.S.C. § 841(a)(1), 841(b)(1)(A) – Possession With Intent to Distribute a Controlled Substance
Maximum Penalty is life imprisonment; mandatory minimum of 10 yearsDorchester, Massachusetts Man Pleads Guilty to Transportation of a Minor for the Purpose of Sexual ActivityRead the Press Release
CONCORD - Dagoberto Duarte, 22, of Dorchester, Massachusetts pleaded guilty in federal court on Tuesday to transportation of a minor for the purpose of sexual activity, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on June 10, 2018, the Londonderry Police Department was informed that a 13-year-old female was missing. Officers responded to her residence to investigate. During the investigation, the Londonderry officers were told that the minor female had been communicating with a man online and that they had made plans to meet.
The mother of the minor female received a call from Duarte telling her that he had taken her daughter to Boston. A law enforcement officer spoke with Duarte who said the minor female had been dropped off at a bus station. Boston police officers were notified and officers were able to locate the minor female.
On July 3, 2018, Duarte was arrested by police officers in Boston. Duarte later admitted that he had picked up the minor female in New Hampshire and driven her to Massachusetts, where they engaged in sexual activity.
Duarte is scheduled to be sentenced on February 26, 2020. A native of Honduras, Duarte faces likely removal from the United States as a result of this conviction.
“The internet has made it possible for predators to target children in their own homes,” said U.S. Attorney Murray. “Protecting young people against this type of victimization is a top priority for law enforcement. When predators seek to take advantage of innocent children, we will not hesitate to bring federal charges against them. I commend the work of the law enforcement officers in this case for their quick response to this situation and their efforts to bring this predator to justice.”
“It is incomprehensible that anyone would seek to take advantage of a child’s vulnerability like Duarte has done in this case,” said Jason J. Molina, acting special agent in charge for HSI Boston. “HSI and our law enforcement partners are committed to arresting anyone who preys on the innocence of a child and those predators will face justice for their abhorrent criminal acts.”
This matter was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Londonderry Police Department, and the Boston Police Department. The case is being prosecuted by Assistant U.S. Attorney Georgiana Konesky.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Dominican National Involved in Drug Importation Schemes Sentenced to 12 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ARRINSON DE LA CRUZ, 40, a citizen of the Dominican Republic, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 144 months of imprisonment for his role in the large-scale importation of cocaine and other controlled substances into the U.S.
According to court documents and statements made in court, in 2016, De La Cruz, who was residing in Wolcott, Connecticut, on a tourist visa, conspired with others to transport approximately 1600 kilograms of cocaine from South America to the U.S. On August 6, 2016, a private jet, which was registered in the U.S., flew from the Dominican Republic to Venezuela where the cocaine was to be loaded onto the jet. From there, the jet was to fly Honduras where the cocaine would be loaded onto trucks for transport through Mexico into the U.S. De La Cruz had worked at an airport in the Dominican Republic and helped to coordinate the travel of the jet through the airport uninterrupted. A fake flight plan filed with Dominican authorities reported that the plane was traveling to Brazil. Ultimately, the plane crash-landed in Venezuela, the crew evaded capture by Venezuelan authorities, and the cocaine was diverted back to Colombia.
After the collapse of the cocaine importation scheme, De La Cruz attempted to coordinate additional shipments of drugs into the U.S, and also contacted others in and around Connecticut to sell heroin, cocaine and 2C-B, a synthetic psychedelic drug.
On September 18, 2016, De La Cruz was arrested in Milford, Connecticut, after a search of a car he was traveling in revealed 2C-B that De La Cruz intended to distribute in Massachusetts.
In November 2016 and December 2017, while he was released on bond, De La Cruz continued to conspire to distribute cocaine. He has been detained since his arrest on December 20, 2017.
On March 27, 2019, De La Cruz pleaded guilty to one count of conspiracy to possess with intent to distribute, on board an aircraft registered in the U.S., five kilograms or more of cocaine; one count of possession with intent to distribute 2C-B, and one count of conspiracy to possess with intent to distribute 500 grams or more of cocaine.
This investigation was conducted by the Drug Enforcement Administration New Haven Task Force and the Wolcott Police Department. The DEA New Haven Task Force includes participants from the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia, Meriden, Derby, Middletown, Naugatuck and Waterbury Police Departments.
The case was prosecuted by Assistant U.S. Attorney Rahul Kale.
Dixon Man Sentenced to Prison for Federal Drug and Gun ViolationsRead the Press Release
DAVENPORT, Iowa - United States Attorney Marc Krickbaum announced on November 19, 2019, Jamie Allen Fulton, age 51, was sentenced by United States District Court Judge Stephanie M. Rose for Conspiracy to Deliver Methamphetamine and Felon in Possession of a Firearm. Fulton was sentenced to 72 months in prison, to be followed by a term of supervised release of four years. Fulton was also ordered to pay $200 to the Crime Victims’ Fund.
Fulton pleaded guilty to the offenses on July 26, 2019, and admitted that he conspired with others from at least January 2017 and continuing until October 24, 2018, to distribute methamphetamine. As part of the conspiracy Fulton sold methamphetamine twice during an undercover operation. A search warrant was executed at Fulton’s residence, and Fulton was found in possession of distribution amounts of methamphetamine and a loaded Kel-Tec, nine-millimeter pistol. Fulton has prior federal felony convictions for Conspiracy to Manufacture Methamphetamine and Possession of a Sawed-Off Shotgun, both of which caused Fulton to be prohibited from legally possessing firearms.
This matter was investigated by the Scott County Sheriff’s Office - Special Operations Unit and the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of 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.
District Man Pleads Guilty to Armed KidnappingRead the Press Release
WASHINGTON – Andre Allen, 21, of Washington, D.C., pled guilty today for his role in an armed kidnapping and robbery that began in the District of Columbia and continued into Maryland, announced U.S. Attorney Jessie K. Liu, Timothy M. Dunham, Special Agent in Charge, Criminal Division, FBI Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Allen pled guilty before the Honorable Dabney L. Friedrich in the U.S. District Court for the District of Columbia, to one count of kidnapping. He faces a sentence of up to life in prison and is scheduled to be sentenced by Judge Friedrich on March 13, 2020.
The government’s evidence established that just before midnight on June 3, 2018, the victims were standing on a sidewalk located just south of Lincoln Park in Capitol Hill when the defendant, wearing a mask covering the lower half of his face, approached the victims brandishing a firearm. Allen demanded money from the victims and searched the victims and their luggage before forcing them at gunpoint into a stolen black Audi sedan.
After the victims were forced into the stolen Audi, Allen then drove into Maryland and forced them to withdraw money from an ATM located in Clinton, Maryland, in the early hours of June 4, 2018. After the victims had provided money to the defendant, he dropped them off in a dimly-lit area where they were able to run to a nearby laundromat and call for help.
Shortly after dropping the victims off, Allen then attempted to use one of the victim’s ATM cards at a gas station in Temple Hills, Maryland. Allen later contacted an electronics resale store attempting to sell a laptop belonging to one of the victims.
This case was investigated by the Metropolitan Police Department, the Washington Field Office’s Violent Crime Safe Streets Task Force and the Prince George’s County Police. The Violent Crime Task Force is charged with investigating and bringing to justice the most egregious violent criminal actors within the District of Columbia and is composed of FBI Agents working cooperatively with MPD and other Capital Region law enforcement agencies.
In announcing the plea, U.S. Attorney Liu, Special Agent in Charge Dunham, and Chief Newsham, commended the work of the FBI Agents, MPD officers, and Prince George’s County police officers who investigated the armed kidnapping. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Laura Crane, Paralegal Specialist Rommel, and Legal Assistant Peter Gaboton.
Defendant Forfeits $97,600 and Pleads Guilty to Gambling ChargeRead the Press Release
WICHITA, KAN. - A Wichita man pleaded guilty today to a federal gambling charged and agreed to forfeit $97,600 derived from gambling proceeds, U.S. Attorney Stephen McAllister said. He was sentenced today to 12 months on supervised federal probation.
Johnny Steven, 41, Wichita, Kan., pleaded guilty to being an accessory after the fact to the unlawful transmission of wagering information. In his plea, Steven admitted he acted in cooperation with co-defendant Daven Flax, who was conducting illegal private poker games in Wichita.
Participants were notified via text messaging about the games. The texts also contained information about payments or collections of money. After games, Steven concealed the involvement of Flax and others by hiding handwritten ledgers or computerized records detailing gambling credits, earnings and obligations of the gambling business.
McAllister commended the FBI, the Wichita Police Department, the Internal Revenue Service, Assistant U.S. Attorney Mona Furst and Assistant U.S. Attorney Aaron Smith for their work on the case.
Daytona Beach Member of Cocaine Trafficking Conspiracy Sentenced to More Than Nine YearsRead the Press Release
Orlando, Florida – U.S. District Judge G. Kendall Sharp today sentenced Benjamin Green Robinson (32, Daytona Beach) to nine years and two months in federal prison for conspiracy to possess with the intent to distribute more than 500 grams of cocaine. A federal jury found Robinson guilty on August 9, 2019.
According to testimony and evidence presented at trial, in January 2016, Robinson and three co-conspirators arranged for multiple shipments of cocaine to be sent through the U.S. Postal Service (USPS) from California. During the investigation, the FBI and the USPS seized three of the packages, each containing two kilograms of cocaine hidden inside tubs of protein powder. Law enforcement also identified five additional shipments that the conspirators had successfully shipped through the mail. In 2016, during the month of January, Robinson and his conspirators were responsible shipping 14 kilograms of cocaine through mail, estimated to be worth a total of $490,000.
Two of Robinson’s co-conspirators, Dondi Kentrail Freeney and Telvin Williams, previously pleaded guilty for their roles in the conspiracy. They were sentenced to seven years and six months in federal prison and five years in federal prison, respectively. Legal proceedings against a fourth individual, Antonio Chandler, are ongoing.
This case was investigated by the Federal Bureau of Investigation, with assistance from the U.S. Postal Inspection Service, the Lake County Sherriff’s Office, and the Volusia Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Dana E. Hill.
Colorado Business Owner Convicted in $7 Million Biodiesel Tax Credit Fraud SchemeRead the Press Release
A federal jury in Denver, Colorado, found Martin Fields guilty yesterday of conspiracy to defraud the United States, conspiracy to commit money laundering, making false claims against the United States, and money laundering, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to the evidence presented at trial, Fields, along with Matthew Taylor, Calvin Glover, and others, filed false claims for tax credits under a federal program that encourages the production and use of renewable fuels. To accomplish the scheme, Fields and his coconspirators created a fake company, Shintan Inc., that purported to be in the business of creating renewable biodiesel fuel. From 2010 to 2013, Fields and his coconspirators filed documents with the Internal Revenue Service (IRS) claiming more than $7.2 million in tax credits for production of renewable fuel. In fact, however, Shintan produced no qualifying renewable fuel, and the documents filed with the IRS were false. To avoid detection, Fields and his coconspirators laundered the fraudulently obtained funds through bank accounts belonging to Shintan and other shell companies. As a result of the scheme, Fields personally received at least $1.8 million.
Fields’s co-conspirators, Taylor and Glover, previously pleaded guilty – Taylor to money laundering and money laundering conspiracy and Glover to conspiracy to defraud the IRS.
Sentencing is scheduled for Feb. 7, 2020. Fields faces a maximum sentence of five years in prison for conspiracy to defraud the government and for each false claim count, and 10 years in prison for money laundering conspiracy and each money laundering count. He also faces a period of supervised release, restitution and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS-Criminal Investigation and EPA Criminal Investigation Division, who conducted the investigation, and Tax Division Trial Attorneys Sarah A. Kiewlicz, and Stephen K. Moulton, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
CEO of Security Company Charged with Multimillion-Dollar Stock and Carbon Credit FraudRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Jonathan D. Larsen, the Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today the unsealing of an indictment charging ROGER RALSTON – the CEO of DirectView, Inc., a video surveillance and security company based in Florida – with wire fraud and money laundering charges relating to his role in a telemarketing scheme involving the fraudulent sale of DirectView stock and carbon credits to victims in the United Kingdom. RALSTON was arrested this morning in Orlando, Florida, and will be presented in Magistrate Court in the Middle District of Florida later today. The case is assigned to United States District Judge Jesse M. Furman.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Roger Ralston preyed on retirees in the United Kingdom with promises of safe, environmentally friendly investments with big returns. The victims allegedly received nothing but worthless paper certificates in exchange for their life savings, while Ralston and his criminal associates hid the proceeds in the United States and overseas. After today, there is no more hiding for Ralston, who now faces many years in prison for his alleged crimes.”
IRS-CI Special Agent in Charge Jonathan D. Larsen said: “The elderly members of society are too often the victims of financial fraud. As alleged, Mr. Ralston defrauded these victims and then laundered the ill-gotten gains through domestic and foreign bank accounts. IRS-CI special agents will continue to follow the money around the world and prosecute those individuals who prey on the elderly.”
According to the allegations in the Indictment unsealed today in Manhattan federal court and statements made during court proceedings:[1]
At all times relevant to the charges in the Indictment, RALSTON was the CEO of DirectView Holdings, Inc. (“DirectView”), a Florida-based corporation.
From in or about 2009 up to and including in or about 2015, RALSTON and other co-conspirators engaged in a scheme to defraud victims in the United Kingdom through the sale of false, fraudulent, and materially misleading investments, and to launder the proceeds through bank accounts in the United States and foreign countries. RALSTON used the services of telemarketing call centers to identify and cold-call potential victims, who were primarily individuals residing in the United Kingdom. Many of the victims were elderly or retired. Over a series of telephone calls, the telemarketers persuaded victims to invest money under various false and misleading pretenses, including the promise of short-term, high-yield, no-risk returns, when in fact the investments were high-risk, illiquid, and in some instances, entirely fictitious. Many victims were persuaded to make additional investments under the false pretense that they would not be permitted to sell their holdings until they purchased more. In reliance on the false representations and promises, the victims wired funds to various bank accounts in the United States, including in the Southern District of New York, in the names of corporate entities controlled by RALSTON. RALSTON then mailed and emailed documents related to the fraudulent investments, including purchase contracts and investment certificates, to the victims. Victims who tried to sell their investments found they were unable to do so. The victims never received a refund on their principal or any return on their investments. In total, RALSTON’s accounts received approximately $9 million from victims.
In order to conceal the nature, location, source, ownership, and control of the proceeds of the fraudulent scheme, RALSTON regularly transferred a substantial portion of the fraud proceeds from bank accounts in the United States, including in the Southern District of New York, to overseas bank accounts, including accounts in Cyprus, Switzerland, and the United Kingdom, in the names of various shell companies.
The nature of the particular fraudulent investment vehicles being marketed to the victims changed over time. From in or about 2009 until in or about 2011, RALSTON and his co-conspirators sold DirectView stock to the victims based on telemarketers’ false representations and promises that the shares were a no-risk, short-term investment in a debt-free company, and that the shares were likely to increase over 100 percent in value in a short period of time. In contrast to what RALSTON represented to victims, DirectView’s annual report filed with the United States Securities and Exchange Commission (“SEC”) for the year ending December 31, 2010, contained dire warnings about the poor fiscal health of DirectView and the risk attendant in purchasing stock, including that the company “may be forced to cease operations” due to losses and cash flow problems, and purchasers “may find it extremely difficult or impossible to resell our shares.”
From in or about 2011 until in or about 2015, RALSTON and his co-conspirators engaged in the sale of fraudulent “carbon credits.” “Carbon credits,” which are issued as part of governmental and voluntary regulatory regimes, are permits representing the right to emit a certain number of tons of carbon dioxide into the atmosphere. “Carbon offsets,” which are tied to particular carbon dioxide emissions-reducing projects, represent a reduction in carbon dioxide emissions, and can be purchased by individuals and companies to “offset” their or third parties’ “carbon-footprints.” The victims were falsely promised that the carbon-related investments they purchased could be easily sold, carried no risk, and would yield a significant, short-term return. In fact, the carbon credits and offsets that were sold to the victims were fake, and did not represent any actual carbon credits or offsets.
* * *
RALSTON, 51, of Riviera Beach, Florida, is charged with conspiracy to commit mail and wire fraud, substantive mail fraud, and substantive wire fraud, with a penalty enhancement for telemarketing, each of which carries a maximum sentence of 30 years; conspiracy to commit money laundering and two counts of money laundering, each of which carries a maximum sentence of 20 years; and one count of engaging in monetary transactions in property derived from specified unlawful activity, which carries a maximum sentence of 10 years.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of IRS Criminal Investigation in this case.
This case is being prosecuted by the Office’s Money Laundering and Transnational Criminal Enterprises and Complex Frauds and Cybercrime Units. Assistant U.S. Attorneys Jessica Feinstein and Olga I. Zverovich are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Bryant Man Sentenced to 25 Years in Prison for Child PornographyRead the Press Release
LITTLE ROCK—A Bryant man was sentenced today on charges of receiving and attempting to distribute images of child pornography as well as advertising and possessing those images. United States District Court Judge James M. Moody sentenced Joseph Keck, Jr., 62, to 25 years in federal prison. Cody Hiland, the United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the FBI Little Rock Field Office, announced today’s sentencing.
Keck was convicted following a jury trial in April of this year. In 2016, the FBI learned that someone was sharing child pornography over the internet from a residence in Bryant, Arkansas. Investigation revealed that Keck stayed at this residence when not working as a truck driver. On May 9, 2016, the defendant arrived at the residence in a white Astro van, and the FBI obtained his two laptop computers, his external hard drive, and his cell phone. Forensic examination revealed tens of thousands of pictures and videos of child pornography. Those devices also contained evidence that Keck had downloaded child pornography and saved it to his computer.
Trial testimony also indicated that Keck used a file sharing program called Gigatribe to exchange images and videos with other users. Through his twelve Gigatribe accounts, the defendant downloaded and shared tens of thousands of videos and images of child pornography. He also advertised the contents of his child pornography collection by offering his password to other Gigatribe users. Evidence at trial included Keck’s Gigatribe chat logs, in which he told other users his name was Joe, he was a truck driver, and he liked young boys ages 12-16.
“This defendant collected thousands upon thousands of videos and images of children being sexually abused,” said U.S. Attorney Hiland. “Today’s lengthy sentence means this defendant is no longer creating a market for such deplorable images that victimize the most vulnerable among us. Our office will continue to aggressively investigate and prosecute those who seek to victimize children.”
“I sincerely appreciate the time and effort our agents and Assistant United States Attorneys dedicate to investigating and prosecuting child pornography cases and protecting the children of our country,” said Special Agent in Charge Upchurch. “Keck’s sentencing demonstrates our dedication to investigating and prosecuting those who prey on our most vulnerable population.”
In addition to the prison term, Keck was sentenced to five years of supervised release following his imprisonment. The investigation was conducted by the FBI, and the case was prosecuted by Assistant United States Attorneys Kristin Bryant and Michael Gordon.
# # #
This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
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Appleton Sex Offender Sentenced for Possession of Child PornographyRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on November 19, 2019, Brandon T. Daul (age: 37) of Appleton, Wisconsin, was sentenced to 10 years in federal prison for possession of child pornography by District Judge William C. Griesbach.
Daul, a registered sexual offender in the State of Wisconsin based on an Outagamie County Circuit Court conviction for possession of child pornography in 2011, possessed numerous digital images and videos of child pornography, many depicting infants and toddlers.
In handing down the sentence, Judge Griesbach noted the defendant’s prior record involving crimes against children and emphasized the serious nature of the charge. He further stated his belief that a 10-year sentence served the interests of justice in this particular case. Following his release from prison, Daul will spend 10 years on supervised release. He will continue to register as a sexual offender.
This case was investigated by the U.S. Department of Homeland Security, the Wisconsin Department of Justice, Division of Criminal Investigation’s Internet Crimes Against Children (ICAC) Task Force, and the Appleton Police Department. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
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 U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the 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.
For Additional Information Contact:
Public Information Officer Kenneth Gales 414-297-1700
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Anchorage Brothers and Repeat Offenders Sentenced to Federal Prison for Drug TraffickingRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Anchorage brothers and repeat drug trafficking offenders Dwayne Dollison, Jr., 37, and Kenneth Martin Douglas, 35, were each sentenced to 15-year prison sentences by U.S. District Judge Sharon L. Gleason for a drug trafficking conspiracy involving firearms. Dollison was sentenced to an additional 7 months for violating the supervised release conditions of a previous drug trafficking offense.
This case originated from a late-night traffic stop by an Alaska State Trooper (AST) in September of 2017. The stop involved two caravanning vehicles that were speeding inbound on the Parks Highway near Fairbanks. One of the vehicles belonged to Douglas and was occupied by Douglas and Dollison, and the other had been rented by the brothers and was occupied by their female companions. After finding a small amount of heroin in the passenger compartment of the rental car, AST obtained a search warrant and searched the rental car’s trunk. They found approximately 154 grams of cocaine, 44 grams of crack, 27 grams of methamphetamine, and 12 grams of heroin located in and around duffle bags that also contained two Smith & Wesson 9 mm handguns. The guns and duffle bags were subsequently tied to Dollison and Douglas by, among other things, DNA and fingerprints. One of the guns had been stolen in Wasilla.
Investigation revealed that Dollison and Douglas orchestrated the drug trafficking operation to maximize the possibility that, if caught running the drugs to Fairbanks, their female companions would be prosecuted rather than them. After the September 2017 traffic stop, Dollison also tracked down one of the woman and offered her money to claim the drugs found in the trunk of the rental car were hers.
This is Douglas’ third drug trafficking conviction and Dollison’s second. The brothers were convicted of trafficking drugs together in 2009 and were released from federal custody in 2015, following retroactive sentencing reductions.
The Alaska State Troopers (AST) with the assistance of the Federal Bureau of Investigation (FBI) and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) conducted the investigation leading to the successful prosecution of this case, which was prosecuted by Assistant U.S. Attorneys Kim Sayers-Fay and Allison O’Leary.
Alabama Man Pleads Guilty to Multi-State Bank Robbery SpreeRead the Press Release
LEXINGTON, Ky. – An Alabama man admitted in federal court Wednesday that over the course of four months in 2018, he robbed five banks by intimidation in Kentucky, Tennessee, and Georgia.
Maxwell Hayslip, 27, pleaded guilty to five bank robberies by intimidation, before Chief United States District Judge Danny C. Reeves. As part of his guilty plea, Hayslip and admitted that, between August 7 and November 13, 2018, he robbed banks in Lexington, Kentucky; Murfreesboro, Tennessee; Nashville, Tennessee; Bowling Green, Kentucky; and Carrollton, Georgia. Hayslip admitted that he wrongfully obtained over $14,000 over the course of his robbery spree, and he agreed to pay that total amount back in restitution. According to his plea agreement, he was captured by law enforcement in Alabama, soon after the Lexington robbery.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; James Robert Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation; Lawrence Weathers, Chief of the Lexington Police Department; Michael Bowen, Chief of the Murfreesboro Police Department; Steve Anderson, Chief of the Metropolitan Nashville Police Department; Doug Hawkins, Chief of the Bowling Green Police Department; and Joel Richards, Chief of the Carrollton Police Department, jointly announced the convictions.
Local law enforcement agencies in each respective jurisdiction investigated Hayslip, and the federal investigation was directed by the Federal Bureau of Investigation. The United States was represented by Special Assistant U.S. Attorney James T. Chapman.
Hayslip is scheduled to be sentenced on Feb. 21, 2020, at 11 a.m., before Chief Judge Reeves in federal court in Lexington. Based on the five robberies, he faces up to 100 years in prison, as well as a maximum fine of $1.25 million. However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and applicable federal sentencing statutes.
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Accountant pleads guilty to tax evasion after failing to report more than $600,000 embezzled from non-profit foundation in Alamogordo, New MexicoRead the Press Release
ALBUQUERQUE, N.M. – Marion L. Ledford, 65, of Alamogordo, New Mexico pleaded guilty in federal court in Las Cruces, New Mexico today to tax evasion for failing to report income embezzled from the non-profit organization where Ledford was a director.
Ledford pleaded guilty to an information charging Ledford with submitting a personal income tax return on April 28, 2016, that substantially underreported Ledford’s taxable income for 2015. According to Ledford’s plea agreement, Ledford was a director for the Robert W. Hamilton Foundation, a non-profit organization providing scholarships to high school graduates in Otero County, New Mexico. Ledford controlled the foundation’s finances without oversight. This allowed Ledford to write $1,785,300 in checks to himself from the foundation’s accounts.
Ledford filed tax returns for 2011 to 2016 that reported some of Ledford’s income but did not report the additional money Ledford embezzled from the foundation by writing the checks. This caused a $629,289 loss in tax revenue for the United States.
Ledford is currently out of custody awaiting sentencing. Ledford faces up to five years in prison. He also agreed to pay $2,414,589 in restitution to the foundation and Internal Revenue Service.
The Internal Revenue Service – Criminal Investigation investigated this case. Assistant U.S. Attorney Richard C. Williams is prosecuting the case.
ADA Settlement Ensures Access for Deaf and Hard of Hearing Individuals at Concentra Facilities NationwideRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that the government has reached a settlement agreement under the Americans with Disabilities Act of 1990 (“ADA”) with CONCENTRA, which will ensure access to effective communication for deaf and hard of hearing individuals at Concentra’s patient-facing facilities throughout the U.S.
Concentra, based in Addison, Texas, is a national health care company that, through its affiliated clinicians, provides occupational medicine, urgent care, physical therapy and wellness services at more than 520 medical centers in 44 states, and serves employers at an additional 140 onsite medical facilities. The settlement agreement applies to Concentra Health Services, Inc. and its managed professional medical entities situated throughout the United States.
This matter was initiated upon receipt of a complaint filed with the U.S. Attorney’s Office for the District of Connecticut by Disability Rights Connecticut, a non-profit advocacy organization based in Hartford. Disability Rights Connecticut filed the complaint on behalf of the complainant who is profoundly deaf. The complaint alleges that the complainant required physical therapy related to a workplace injury and went to Concentra’s location in Norwich, Connecticut. At his initial appointment at Concentra, the complainant informed his physical therapist that he was deaf and required an interpreter to communicate effectively. In response to this request, the complainant was told that he would have to provide his own interpreter. The complainant requested that an interpreter be provided to him for his subsequent visits to Concentra. At each follow up appointment, the complainant renewed his request for an interpreter. Throughout his course of treatment at Concentra, the complainant was never provided with interpreter services.
Title III of the ADA requires places of public accommodation to provide appropriate auxiliary aids and services, such as qualified interpreters, where necessary to ensure effective communication with individuals with disabilities. Places of public accommodation are prohibited from requiring an individual with a disability to bring another individual to interpret for him or her. Similarly, places of public accommodation may not charge a surcharge to individuals with disabilities for measures, including auxiliary aids and services like interpreters, that are required to provide the individual with a disability with nondiscriminatory treatment under the ADA. As a network of professional offices providing healthcare services, Concentra is a public accommodation under Title III of the ADA and its facilities are places of public accommodation.
The settlement agreement resolves the complaint received by the government that Concentra violated Title III of the ADA by failing to provide effective communication to the complainant. The terms of the settlement agreement require Concentra to provide appropriate auxiliary aids and services free of charge, including qualified interpreters, at all of its patient facilities to individuals who are deaf or hard of hearing whenever it is necessary to ensure effective communication for those individuals. Concentra will also submit an effective communication policy, which includes a grievance procedure, to the U.S. Attorney’s Office for approval and, following approval, will implement the policy nationwide and post the policy on its website. Concentra will designate a national ADA coordinator who will be responsible for implementing the terms of the settlement agreement and who will be the point person for investigating patient complaints as part of the newly established grievance process outlined in the effective communication policy. Concentra will provide ADA training to staff members nationwide. In addition, Concentra will compensate the complainant in the amount of $7,500.
The ADA authorizes the U.S. Department of Justice to investigate complaints and undertake periodic reviews of compliance of covered entities. The Justice Department is also authorized to commence a civil lawsuit in federal court in any case that involves a pattern or practice of discrimination or that raises issues of general public importance, and to seek injunctive relief, monetary damages, and civil penalties.
“This case reflects this office’s steadfast commitment to protecting the rights of those who are deaf or hard of hearing and ensuring that these individuals are able to effectively communicate with health care professionals throughout the State of Connecticut and the nation,” said U.S. Attorney Durham. “I thank Concentra’s management for their cooperation during this investigation and for addressing these ADA issues without the need for litigation.”
This matter was handled by Assistant U.S. Attorney Jessica H. Soufer of the District of Connecticut in coordination with the Disability Rights Section of the U.S. Department of Justice Civil Rights Division.
Any member of the public who wishes to file a complaint alleging that the office of a health care provider or any other place of public accommodation or public entity in Connecticut is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at 203-821-3700.
Additional information about the ADA can be found at www.ada.gov, or by calling the Justice Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TTY). More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
A Member of the Seven Mile Bloods Street Gang Was Sentenced to 40 Years Imprisonment on Racketeering, Attempted Murder and Firearm ChargesRead the Press Release
A long time member and leader of the Seven Mile Bloods Street Gang was sentenced for his participation in various criminal acts, including racketeering conspiracy, attempted murder and a related firearm offense, announced United States Attorney Matthew Schneider.
Schneider was joined in the announcement by Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Steven M. D'Antuono, Special Agent in Charge of the Detroit Field Office and Chief James Craig, Detroit Police Department.
“Four decades in federal prison without parole is the consequence for gang members who inflict violence, drug dealing, and mayhem on our communities,” said United States Attorney Matthew Schneider. “Michigan has no tolerance for the senseless murders and violence spread by gang members, and that is why we will continue to fight these gangs in court.”
Robert Brown, aka “RO” 37, of Warren, was sentenced to 40 years imprisonment after having been convicted of RICO conspiracy; attempted murder in aid of racketeering; and possession of a firearm in furtherance of a crime of violence. Brown was sentenced to 30 years on the RICO conspiracy and a 10 year concurrent sentence on the attempted murder. Brown was also sentenced to 10 years on the firearm count, which will be served consecutively to the other two counts.
The 10-week trial was conducted last year before U.S. District Judge George Caram Steeh in Detroit, Michigan. The jury deliberated approximately seven days before reaching their verdicts. Amongst those convicted were:
- Corey Bailey, aka “Sonny,” “Cocaine Sonny,” 31, of Detroit, was sentenced to two life sentences and three 10 year sentences, all to run concurrent, after having been convicted of RICO conspiracy; murder in aid of racketeering; attempted murder in aid of racketeering; and possession of a firearm in furtherance of a crime of violence;
- Arlandis Shy, aka “Grymee,” “Vil,” 30, of Clinton Township was sentenced to 18 years after having been convicted of RICO conspiracy;
- Keithon Porter, aka “KP,” 32, of Detroit; is awaiting sentencing after having been convicted of RICO conspiracy; murder in aid of racketeering; attempted murder in aid of racketeering; and possession of a firearm in furtherance of a crime of violence.
A fifth defendant, Eugene Fisher, aka “Fes,” 38, of Detroit, was sentenced to 90 months after having been convicted of two counts of felon in possession of a firearm.
According to evidence presented during the trial, the Seven Mile Bloods gang operates on the east side of Detroit, between Gratiot Avenue and Kelly Road and between Seven and Eight Mile Roads. Seven Mile Bloods or “SMB” members have claimed this area as their territory and refer to it as the “Red Zone.” The area is in zip code 48205, which SMB members refer to as “4-8-2-0-Die” in some of their rap lyrics.
Evidence presented at trial showed an ongoing gang war between the Seven Mile Bloods and an alliance of other gangs operating on Detroit’s east side stemming from a murder that occurred in July 2014. These rival gangs have been violently attacking one another and have posted respective “hit lists” on social media. This shooting war led to increased homicides and non-fatal shootings on Detroit’s east side.
This case was the work of the Detroit One Initiative. Investigators were able to bring together separate probes into various members of this organization and its criminal activities into one encompassing investigation. Partners include the Detroit Police Department Gang Intelligence Unit, the FBI Violent Gang Task Force, which consists of representatives of Detroit Police Department, U.S. Border Patrol, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Customs and Border Protection, Michigan Department of Corrections and Michigan State Police, with the cooperation of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the U.S. Drug Enforcement Administration (DEA).
The investigation further resulted in the seizure of more than 20 firearms, including several high-powered assault rifles.
The case was prosecuted by Trial Attorney Julie A. Finocchiaro of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Justin Wechsler, Mark Bilkovic and Tare Wigod of the U.S. Attorney’s Office for the Eastern District of Michigan.
30 Defendants Charged with Narcotics and Firearms Offenses in Manhattan Federal CourtRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of five Indictments charging 30 defendants with committing various narcotics and firearms offenses in Manhattan and the Bronx.
As alleged in the Indictments unsealed in Manhattan federal court[1]:
United States v. Neury Abreu, et al., 19 Cr. 821
Between January 2016 and November 2019, NEURY ABREU, 26, ALEXANDER DEJESUS, 27, JOSHUA PEREZ, 27, ALEXANDER BAEZ, 46, IVAN BREA, 28, JOSE CRUZ, 22, LUIS ESPINAL, 30, and ANTHONY MELO, 19, conspired to sell 280 grams or more of crack cocaine, cocaine, Oxycodone, and marijuana. Members of the conspiracy distributed narcotics in and around the Inwood neighborhood of Manhattan.
Between January 2016 and November 2019, ABREU, DEJESUS, and PEREZ used and carried firearms during and in relation to, and possessed firearms in furtherance of, the narcotics conspiracy charged in the Indictment. PEREZ also possessed a firearm on or about July 8, 2019, and on or about July 11, 2019, after having previously been convicted of a felony.
United States v. Alexander Melo, et al., 19 Cr. 818
Between April 2019 and November 2019, ALEXANDER MELO, 28, JAVIER JANIEL, 23, FRANMY LUNA, 24, and JUAN PERALTA, 25, conspired to sell 280 grams or more of crack cocaine, and cocaine. Members of the conspiracy distributed narcotics in and around the Inwood neighborhood of Manhattan.
On or about October 9, 2018, MELO possessed a shotgun after having been convicted of a felony, and having had three convictions for three serious drug offenses, all of which were committed on occasions different from one another, in violation of the Armed Career Criminal Act.
United States v. Mario Delgado, et al., 19 Cr. 817
Between October 2018 and November 2019, MARIO DELGADO, 32, DANIEL CUEVAS, 27, and EDWARD RODRIGUEZ, 30, conspired to sell 100 grams and more of Acetyl Fentanyl (which is an analogue of Fentanyl), Fentanyl, and Oxycodone. Members of the conspiracy distributed narcotics in and around the Washington Heights neighborhood of Manhattan.
United States v. Roberto Sanchez, et al., 19 Cr. 820
Between January 2019 and November 2019, ROBBERTO SANCHEZ, 41, and JULIO ABREU, 28, conspired to sell heroin, cocaine, and marijuana. Members of the conspiracy distributed narcotics in and around the Washington Heights neighborhood of Manhattan.
United States v. Alberto Marte, 19 Cr. 795
From at least in or about 2018 through in or about 2019, ALBERTO MARTE, a/k/a “Scotty,” a/k/a “Skylet,” 42, JUNIOR RODRIGUEZ, a/k/a “Skrilla,” 23, ERICK MELENCIANO, a/k/a “Gualey,” 26, NICHOLAS FALU, a/k/a “Nico,” 31, KEVIN ROSADO, a/k/a “Malda,” 26, GUERY CRUZ, a/k/a “Capo,” 24, JONATHAN RODRIGUEZ, a/k/a “Nathan,” 31, OMAR BAEZ, a/k/a “Smokey,” 23, SAMUEL SOSA, a/k/a “Sammy,” 21, YOAN DELACRUZ, a/k/a “Johan,” 29, RAYMER CASILLA, a/k/a “Ray Savage,” 23, KEVIN MELENDEZ, a/k/a “Freaky,” 26, and JOSE BAUTISTA, a/k/a “Nelo,” a/k/a “Echo,” 30, conspired to sell oxycodone and possessed firearms in furtherance of that conspiracy.
* * *
Thirteen of the 30 defendants were arrested this morning and will be presented later today before U.S. Magistrate Judge Sarah Netburn in Manhattan federal court. Twelve of the 30 defendants, charged in connection with United States v. Alberto Marte, were arrested on November 13, 2019, and presented before U.S. Magistrate Judge Katharine H. Parker. JOSHUA PEREZ was already in federal custody and will be presented at a later date.
Charts containing the names, charges, and maximum penalties for the defendants are set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the FBI-NYPD Metro Safe Streets Task Force, the NYPD’s Narcotics Borough Manhattan North and the NYPD’s Manhattan North Gang Squad. He also thanked the New York City Department of Investigation for its assistance in the case.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Frank Balsamello, Adam Hobson, Jacob Warren, Celia Cohen, and Dominick Gentile are in charge of the prosecutions.
The charges contained in the Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
United States v. Neury Abreu, et al., 19 Cr. 821
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Narcotics trafficking conspiracy
21 U.S.C. § 846
NEURY ABREU,
ALEXANDER DEJESUS, JOSHUA PEREZ,
ALEXANDER BAEZ,
IVAN BREA,
JOSE CRUZ,
LUIS ESPINAL, and
ANTHONY MELO
Life in prison
Mandatory minimum of 10 years in prison
2
Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a narcotics trafficking crime
18 U.S.C. § 924(c)
NEURY ABREU,
ALEXANDER DEJESUS, JOSHUA PEREZ
Life in prison
Mandatory minimum of 5 years in prison
3
Felon in possession of a firearm
18 U.S.C. § 922(g)(1)
JOSHUA PEREZ
10 years in prison
4
Felon in possession of a firearm
18 U.S.C. § 922(g)(1)
JOSHUA PEREZ
10 years in prison
United States v. Alexander Melo, et al., 19 Cr. 818
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Narcotics trafficking conspiracy
21 U.S.C. § 846
ALEXANDER MELO,
JAVIER JANIEL,
FRANMY LUNA, and
JUAN PERALTA,
Life in prison
Mandatory minimum of 10 years in prison
2
Armed Career Criminal Act
18 U.S.C. §§ 922(g)(1) and 924(e)
ALEXANDER MELO
Life in prison
Mandatory minimum of 15 years in prison
United States v. Mario Delgado, et al., 19 Cr. 817
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Narcotics trafficking conspiracy
21 U.S.C. § 846
MARIO DELGADO,
DANIEL CUEVAS, and EDWARD RODRIGUEZ
Life in prison
Mandatory minimum of 10 years in prison
United States v. Roberto Sanchez, et al., 19 Cr. 820
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Narcotics trafficking conspiracy
21 U.S.C. § 846
ROBERTO SANCHEZ, and
JULIO ABREU
20 years in in prison
United States v. Alberto Marte, 19 Cr. 795
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Narcotics trafficking conspiracy
21 U.S.C. § 846
ALBERTO MARTE,
JUNIOR RODRIGUEZ,
ERICK MELENCIANO,
NICHOLAS FALU,
KEVIN ROSADO,
GUERY CRUZ,
JONATHAN RODRIGUEZ,
OMAR BAEZ,
SAMUEL SOSA,
YOAN DELACRUZ,
RAYMER CASILLA,
KEVIN MELENDEZ,
JOSE BAUTISTA
20 years in prison
2
Using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of, a narcotics trafficking crime
18 U.S.C. § 924(c)
ALBERTO MARTE,
JUNIOR RODRIGUEZ,
ERICK MELENCIANO,
NICHOLAS FALU,
KEVIN ROSADO,
GUERY CRUZ,
JONATHAN RODRIGUEZ,
OMAR BAEZ,
SAMUEL SOSA,
YOAN DELACRUZ,
RAYMER CASILLA,
KEVIN MELENDEZ,
JOSE BAUTISTA
Life in prison
Mandatory minimum of 5 years in prison
[1] As the introductory phrase signifies, the entirety of the texts of the Indictments constitute only allegations, and every fact described herein should be treated as an allegation.
10 Defendants Charged in Manhattan Federal Court with Running Nationwide Telemarketing Fraud Scheme Targeting the ElderlyRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Peter C. Fitzhugh, the Special Agent-in-Charge of the New York Field Office of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), and James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of an Indictment charging ANTHONY CHEEDIE, CHAD ALLEN, SHANE HANNA, CAMERON BREWSTER, KEVIN HANDREN, JOSEPH CIACCIO, a/k/a “Joseph Gallagher,” JOSEPH MINETTO, JOSEPH DEPAOLA, a/k/a “Joe Hall,” DERREK LARKIN, a/k/a “Derrek Martin,” and MATTIE CIRILO with conspiracy to commit wire fraud in connection with telemarketing. LARKIN and CIRILO also are charged with obstruction of justice. The case has been assigned to United States District Judge Victor Marrero.
Nine of the defendants were arrested this morning. CHEEDIE, MINETTO, DEPAOLA, LARKIN, and CIRILO will be presented this afternoon in Manhattan federal court before United States Magistrate Judge Sarah Netburn. ALLEN and HANNA will be presented this afternoon in Phoenix federal court before United States Magistrate Judge Deborah M. Fine. BREWSTER will be presented this afternoon in Las Vegas federal court before United States Magistrate Judge Elayna J. Youchah. HANDREN will be presented in Salt Lake City federal court before United States Magistrate Judge Evelyn J. Furse. CIACCIO will be presented at a later date.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, these 10 defendants, motivated by greed and the possibility of a quick payday, aggressively targeted the elderly and other vulnerable victims throughout the United States by convincing them to invest their money in various businesses, and then scammed those victims again after pushing them deep into debt. In reality, allegedly these so-called opportunities were just fraudulent schemes to steal victims’ money, and the so-called ‘debt relief’ only further abused the trust innocent victims placed in the defendants. Now, the defendants face time in prison for their alleged crimes.”
HSI Special Agent-in-Charge Peter C. Fitzhugh said: “Those charged in this investigation are purported to have taken advantage of our aging population by posing as telemarketers. This criminal organization allegedly strategically gave false promises to continue their swindle and get as much money as possible while destroying the lives of their victims. HSI will not stand by while the elderly, or anyone else, are defrauded out of their hard earned money. HSI and our law enforcement partners will continue to investigate and arrest those responsible to end their telemarketing scams. Today, these individuals are done making calls unless they are calling their lawyer.”
Police Commissioner James P. O’Neill said: “These charges reflect how criminals exploit the elderly and other individuals through telemarking schemes. I commend the NYPD detectives, our federal partners, and prosecutors of the U.S. Attorney, Southern District, for their efforts and cooperation in this investigation. Together, we will continue to be relentless in fighting crime that impacts the people we serve wherever, and however, it occurs.”
According to the allegations in the Indictment:
The Business Opportunity Scheme
From at least 2012 until at least November 2019, CHEEDIE, ALLEN, HANNA, BREWSTER, HANDREN, CIACCIO, MINETTO, DEPAOLA, LARKIN, and CIRILO carried out a wide-ranging telemarketing scheme that defrauded hundreds of victims (the “Victims”) throughout the United States, many of whom were over age 70, by selling those Victims so-called “business services” in connection with the Victims’ purported online businesses (the “Business Opportunity Scheme”).
To perpetrate the Business Opportunity Scheme, certain of the defendants and their co-conspirators sold “services” purporting to make the management of Victims’ businesses more efficient or profitable, including tax preparation or website design services, notwithstanding that many Victims were elderly and did not own a computer. At the outset of the Business Opportunity Scheme, certain participants employed by a “fulfillment” company sent the Victims electronic or paper “pamphlets” or provided so-called “coaching sessions” regarding these purported online businesses, but at no point did the Victims actually earn any of the promised return on their intended investment.
In order to perpetrate the Business Opportunity Scheme, the defendants and their co-conspirators engaged in a widespread, coordinated effort to traffic in lists of potential victims, or “leads,” many of whom had previously made an initial investment to create an online business with other participants in the Scheme. As a general matter, leads were initially generated by sales floors operating in, among other places, Arizona, Nevada, and Utah, including those sales floors operated by ALLEN, HANNA, BREWSTER, and HANDREN. ALLEN, HANNA, BREWSTER, and HANDREN operated in coordination with several telemarketing sales floors in the New York and New Jersey area, including in Manhattan, and provided lead lists and fulfillment services to other co-conspirators operating those floors, including CHEEDIE, CIACCIO, and MINETTO. BREWSTER, for example, provided lead lists through a website referred to by BREWSTER and other co-conspirators as the “Money Sucking Website” or “MSW.” CIACCIO and MINETTO employed several salespeople who sold the so-called business services to Victims of the Business Opportunity Scheme and worked to prevent Victims from receiving refunds on their investments, including DEPAOLA, LARKIN, and CIRILO.
Certain participants in the Business Opportunity Scheme, including ALLEN and HANNA, also told Victims that the Victims had qualified for a government grant, often in connection with starting a small business, and that the Victims should purchase the business services offered as part of the Business Opportunity Scheme as a way to earn money while waiting for the Victim’s grant money to be received. In truth and in fact, no such government grants existed.
The Debt Relief Scheme
When there were no more services to sell the Victim as part of the Business Opportunity Scheme and/or the Victim had reached the maximum limit on his or her credit cards, the defendants and their co-conspirators effectively refinanced their Victims’ participation in the Business Opportunity Scheme into a new scheme, capitalizing on the Business Opportunity Scheme Victims’ credit card debts by offering to consolidate or settle the Victims’ debt in exchange for an up-front payment (the “Debt Relief Scheme”). The perpetrators of the Debt Relief Scheme entered into revenue-sharing agreements with certain participants in the Business Opportunity Scheme by which the perpetrators of the Debt Relief Scheme paid certain participants for leads based on a percentage of the sales made to Victims. In truth and in fact, the perpetrators of the Debt Relief Scheme did not settle or consolidate the Victims’ debt.
Obstruction of Justice
In or about January 2019, law enforcement conducted a search of the telemarketing sales floor at which LARKIN and CIRILO were employed. During the search, law enforcement seized several electronic devices from LARKIN and CIRILO. Following the search, LARKIN and CIRILO knowingly deleted, and attempted to delete, the data on those devices in an effort to prevent law enforcement from using that data in the instant investigation into the Business Opportunity Scheme.
* * *
CHEEDIE, 34, of Jersey City, New Jersey, ALLEN, 41, of Laveen, Arizona, HANNA, 40, of El Mirage, Arizona, BREWSTER, 39, of Las Vegas, Nevada, HANDREN, 37, of Sandy, Utah, CIACCIO, 30, of Hillsdale, New Jersey, MINETTO, 32, of Washington, New Jersey, DEPAOLA, 30, of Hillsdale, New Jersey, LARKIN, 36, of Elmwood Park, New Jersey, and CIRILO, 28, of Elmwood Park, New Jersey, are each charged with one count of conspiracy to commit wire fraud in connection with telemarketing through which they targeted and victimized 10 or more persons over the age of 55, which carries a maximum sentence of 30 years in prison. LARKIN and CIRILO also are each charged with obstruction of justice, which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of HSI’s El Dorado Task Force and the NYPD.
This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Kiersten A. Fletcher, Benet J. Kearney, and Robert B. Sobelman are in charge of the prosecution.
If you believe you have been a victim of the scheme described above, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact Wendy Olsen-Clancy, the Victim Witness Coordinator at the United States Attorney’s Office for the Southern District of New York, at 866-874-8900 or [email protected]. You may also report it to Detective Christopher Bastos at 917-480-7167 or [email protected].
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.
Tuesday 19 November 2019
Vero Beach Man Charged with More Than $50 Million in Attempted FraudRead the Press Release
Orlando, Florida – United States Attorney Maria Chapa Lopez announces the unsealing of an indictment charging David John Ridling (57, Vero Beach) with 10 counts of wire fraud, 4 counts of bank fraud, 9 counts of money laundering, and 2 counts of aggravated identity theft. If convicted, Ridling faces a maximum penalty of 20 years in federal prison for each wire fraud count, 30 years in federal prison for each bank fraud count, 10 years in federal prison for each money laundering count, and a mandatory penalty of 2 years’ imprisonment for the aggravated identity theft counts.
According to the
indictment and information presented in court, Ridling, over the past three years, has attempted to defraud five financial institutions, one financial services provider, and one local Orlando business out of more than $50 million. Ridling’s scheme involved the use of false brokerage account statements, fabricated tax returns, and false financial statements to obtain loans and lines of credit. As part of his scheme, Ridling falsely claimed that certain individuals served as his account representatives at a financial brokerage company. He used email accounts for two of those representatives, purporting to be them, in an effort to convince lenders that he had millions of dollars in his two brokerage accounts. In fact, Ridling only had one account, which never had more than $2,000 in it. Ridling used some of the proceeds that he had obtained from his victims to pay amounts that he had owed to other victims to prolong his scheme.An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Roger B. Handberg.
U.S. Attorney encouraged by Martinsburg progressRead the Press Release
MARTINSBURG, WEST VIRGINIA – U.S. Attorney Bill Powell is applauding the work of the Martinsburg Police Department and other law enforcement partners on the success of the city’s Drug House Ordinance.
Martinsburg Police Chief Maury Richards recently issued a report showing that over the past three years, the ordinance has been utilized 59 times, resulting in a dramatic decrease in violent crime, drug-related calls, and drug overdoses.
“Job number one for law enforcement is the protection of our citizens. Martinsburg has made great strides in this regard. Violence and other crimes often go hand in hand with drug operations. We must remain constantly vigilant for those who seek to have our neighborhoods made part of their illegal activities. This is especially true for landlords who have the ability to identify those who pose a danger to us and our children. We are proud of our partnership with Chief Richards and the law enforcement community to rid our communities of “drug houses,” said Powell.
Earlier this year, the U.S. Attorney’s office offered further support of this ordinance, stating that landlords with multiple citations under the drug house ordinance could face federal charges. Landlords who continue to allow drugs on their rental properties could face criminal prosecution, as well as federal seizure of the house or apartment building.
Berkeley County has the highest number of drug overdoses in the Northern District of West Virginia.
U.S. Atorney’s Office Reaches ADA Settlement with Owner of Historic Paramount Theater to Ensure Physical Access for People with DisabilitiesRead the Press Release
NEWARK, N.J. – The U.S. Attorney’s Office has reached an Americans with Disabilities Act (ADA) settlement with Madison Asbury Convention Hall LLC, the owner of the historic Paramount Theater in Asbury Park, New Jersey, to ensure physical accessibility for people with disabilities, U.S. Attorney Craig Carpenito announced.
“This agreement begins a new era for the historic Paramount Theater, which will enable all audiences, with or without disabilities, to enjoy the venue and its performances,” U.S. Attorney Carpenito said. “We commend the Paramount Theater for making the changes necessary to come into compliance with the ADA.”
The agreement requires, among other things, the installation of wheelchair spaces and companion seats, tactile signs with raised characters and Braille identifying all exits and restrooms, accessible ticket and concession stands, and at least 47 assistive listening receivers.
This agreement was reached under Title III of the ADA, which prohibits places of public accommodation from discriminating against individuals with disabilities. The U.S. Attorney’s Office will actively monitor compliance with the agreement, which will remain in effect for three years.
Individuals who believe they may have been victims of discrimination may file a complaint with the U.S Attorney’s Office at http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint. Additional information about the ADA can be found at www.ada.gov, or by calling the Department of Justice’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TDD).
The government is represented by Assistant U.S. Michael Campion, Chief of the of the U.S. Attorney’s Office’s Civil Rights Unit, and Assistant U.S. Attorney Elizabeth Pascal, Deputy Chief, Civil Division.
Two New Jersey Men Admit Roles in Drug Trafficking ConspiracyRead the Press Release
TRENTON, N.J. –Two New Jersey men today admitted their roles in a drug trafficking conspiracy that distributed significant quantities of heroin and cocaine in the Bayshore area of Monmouth and Middlesex counties, U.S. Attorney Craig Carpenito announced.
Gregory Gillens, 47, of Hillside, New Jersey, pleaded guilty before U.S. District Judge Brian R. Martinotti in Trenton federal court to an information charging him with one count of conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin. Gillens also admitted to conspiring to distribute and possess with intent to distribute a quantity of cocaine.
Tyler Scarangello, 34, of Hazlet, New Jersey, pleaded guilty before Judge Martinotti to an information charging him with one count of conspiracy to distribute and possess with intent to distribute a quantity of cocaine.
In November 2018, Gillens, Scarangello, and 13 others were charged in a federal criminal complaint with conspiracy to distribute heroin and cocaine. Gillens and Scarangello are the sixth and seventh defendants to plead guilty.
According to documents filed in this case and statements made in court:
From May 2017 to November 2018, the defendants and others engaged in a narcotics conspiracy that operated in the Raritan Bayshore region of Middlesex and northern Monmouth counties.
Through the interception of telephone calls and text messages pursuant to court-authorized wiretap orders, controlled purchases of heroin and cocaine, the use of confidential sources of information, and other investigative techniques, law enforcement learned that Gillens regularly supplied large quantities of heroin and cocaine for further distribution to codefendants Guy Jackson, Richard Gethers, and Deberal Rogers. Law enforcement also learned that Jackson distributed the narcotics to others, including Scarangello.
Members of the conspiracy sold the narcotics to other conspirators, distributors, sub-dealers, and end-users in the Bayshore area. Some of the heroin distributed by the conspiracy contained fentanyl, a dangerous synthetic opioid.
The heroin conspiracy count to which Gillens pleaded guilty carries a statutory mandatory minimum term of imprisonment of 10 years, a maximum potential penalty of life in prison, and a maximum fine of $10 million. The cocaine conspiracy to which Scarangello pleaded guilty carries a maximum potential penalty of 20 years in prison, and a maximum fine of $1 million. Sentencing is scheduled for Feb. 19, 2020.
U.S. Attorney Carpenito credited special agents of the FBI, Newark Division, Red Bank Resident Agency, Jersey Shore Gang and Criminal Organization Task Force (including representatives from the Bradley Beach Police Department, Brick Police Department, Howell Police Department, Marlboro Police Department, Monmouth County Sheriff's Office, Toms River Police Department, and Union Beach Police Department) under the direction of Special Agent in Charge Gregory W. Ehrie; Special Agents of the FBI, Philadelphia Division, Scranton Resident Agency, under the direction of Special Agent in Charge Michael T. Harpster; the New Jersey State Police, under the direction of Col. Patrick J. Callahan, Superintendent; the Matawan Police Department, under the direction of Chief Thomas J. Falco, Jr.; the Holmdel Police Department, under the direction of Chief John Mioduszewski; the Highlands Police Department, under the direction of Chief Robert Burton; the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Christopher J. Gramiccioni; the Old Bridge Police Department, under the direction of Chief William A. Volkert; the Keansburg Police Department, under the direction of Chief James K. Pigott; the Hazlet Police Department, under the direction of Chief Philip Meehan; and the Aberdeen Police Department, under the direction of Chief John T. Powers, with the investigation leading to today’s pleas.
The government is represented by Assistant U.S. Attorney Elisa T. Wiygul of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations against the remaining eight defendants are merely accusations and they are presumed innocent unless and until proven guilty.
Two Men Sentenced in Marijuana Scheme Through U.S. Postal ServiceRead the Press Release
HUNTINGTON, W.Va. – Two Huntington men who participated in a scheme to mail marijuana from California to Huntington over a period of several years were sentenced yesteday, announced United States Attorney Mike Stuart. James Waylon Molinaro ,44, was sentenced to 78 months in federal prison after previously entering a guilty plea to possession with intent to distribute marijuana. Molinaro also previously pled guilty to prohibited possession of a firearm by a felon stemming from an unrelated investigation. Chris Crookshanks, 43, was sentenced to three years of supervised release during which he must serve 12 weeks of intermittent confinement in jail. Crookshanks previously entered a guilty plea to conspiracy to distribute marijuana.
“The U.S. Postal Service’s “if it fits, it ships” campaign does not apply to illegal drugs” said United States Attorney Mike Stuart. “Unfortunately, the U.S. Mail has become a frequently used method for drug dealers to transport their inventory and, sadly, in this case, a postal service employee was corruptly involved. Law enforcement is keenly aware of the risk of shipments of dangerous drugs in the mail and we are working together to prosecute both the shippers and receivers of illicit drugs. I greatly admire the postal service and their committed employees. Fortunately, we won’t allow a bad apple to sully the orchard.”
Molinaro and Crookshanks admitted that, between 2013 and March of 2018, they and others conspired to distribute marijuana in the Huntington area. During the conspiracy, Molinaro acquired marijuana in California and arranged for it to be shipped through the United States mail from California to Huntington. Once the parcels containing marijuana arrived in Huntington, Molinaro paid multiple postal employees, including Crookshanks who was a letter carrier with the postal service, to deliver the parcels on their assigned delivery routes or to meet Molinaro at other locations to provide the parcels to him.
On March 15, 2018, agents located two parcels at the Huntington Post Office which had been mailed from the State of California to Huntington which were found to contain marijuana. Agents conducting surveillance observed a postal employee load the parcels into a postal delivery truck and drive to the Dollar General store located in the 800 block of Norway Avenue in Huntington. At that location, the postal employee provided the parcels to Molinaro who arrived in a separate vehicle. A trooper with the West Virginia State Police subsequently conducted a traffic stop of Molinaro’s vehicle in the 1000 block of 9th Street in Huntington and recovered the parcels. The parcels were found to contain a total of 16 pounds of marijuana which Molinaro admitted that he intended to distribute.
As part of their pleas, Molinaro admitted that he was responsible for the shipment and distribution of at least 100 kilograms of marijuana, and Crookshanks admitted that he was responsible for the delivery of at least 40 kilograms of marijuana, during the conspiracy.
Molinaro had also previously pled guilty to being a felon in possession of a firearm. On July 29, 2018, Molinaro was at a night club on Route 60 in Barboursville when he was asked to leave after a club employee observed him possessing a firearm. Molinaro exited the club, fired multiple shots in the club’s parking lot, briefly left the scene, and then returned. A Barboursville police officer responding to a call for assistance at the club subsequently located Molinaro in possession of .38 caliber revolver. Molinaro was prohibited from possessing a firearm based on multiple prior felony convictions for distribution of cocaine and possession of cannabis for sale
The United States Postal Service Office of Inspector General, the United States Postal Inspection Service, the West Virginia State Police – Violent Crime and Drug Task Force West, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Barboursville Police Department, conducted the investigation. United States District Judge Robert C. Chambers imposed the sentences. Assistant United States Attorney Joseph F. Adams handled the prosecutions.
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Topeka Man Sentenced for Cyberstalking, Child PornographyRead the Press Release
TOPEKA, KAN. – A Topeka man was sentenced today to nine years in federal prison for cyberstalking and distributing child pornography, U.S. Attorney Stephen McAllister said.
Blake Adam Austin, 35, Topeka, Kan., pleaded guilty to one count of cyberstalking, one count of possessing child pornography and one count of distributing child pornography.
The investigation began when a middle school teacher in Topeka reported receiving emails from males who wanted to meet her. The males were responding to a Craigslist ad in which someone used the victim’s identity to post sexual content. The problem continued for years until an investigator identified an account Austin was using to post sexual content along with the victim’s contact information.
The victim recognized Austin as someone she had worked with at a coffee shop. He had attempted to initiate a relationship but she had not been interested.
Investigators learned Austin used images of an adult porn star and the victim’s contact information to post ads. He also used images of the victim and her contact information to place half a dozen ads on Craigslist.
On Austin’s laptop, investigators found images of him having sex with a 17-year-old girl. Investigators also learned that Austin uploaded sexually explicit photos of a girl under 15 years old on Skype.
McAllister commended the Topeka Police Department, the FBI and Assistant U.S. Attorney Christine Kenney for their work on the case.
Three indicted for “lie and buy” firearms trafficking schemesRead the Press Release
Seattle – Three Seattle area residents have been indicted by a grand jury following a federal investigation of illegal firearms purchases, announced U.S. Attorney Brian T. Moran. The arrests highlight the Department of Justice focus on combatting gun crime under “Project Guardian.” One core emphasis of Project Guardian is to increase prosecution of so-called “lie and buy” or “lie and try” cases where the purchaser is obtaining a firearm for a prohibited person.
“Project Guardian furthers our efforts to stop gun violence in Western Washington, by enhancing coordination between federal, state, local and tribal law enforcement,” said U.S. Attorney Brian T. Moran. “This ATF-led operation arrested three people on indictments charging them with lying on federal forms to purchase guns that were destined for felons, individuals associated with violent street gangs, and others who simply should not have a firearm.”
“Gun crime remains a pervasive problem in too many communities across America. The Department of Justice is redoubling its commitment to tackling this issue through the launch of Project Guardian,” said Attorney General William P. Barr. “Building on the success of past programs like Triggerlock, Project Guardian will strengthen our efforts to reduce gun violence by allowing the federal government and our state and local partners to better target offenders who use guns in crimes and those who try to buy guns illegally.”
On November 7, 2019, a grand jury returned a ten-count indictment charging SHANNON McCALL, 40, of Seattle and her son, LEONTAI BERRY, 20, of Federal Way, Washington, with a conspiracy to purchase firearms in violation of federal law. Between August 2017 and January 2019, McCALL repeatedly lied on firearms purchasing forms claiming that five different firearms were for her personal use. In fact, McCALL purchased the firearms on behalf of BERRY, who was under the legal age to purchase a firearm.
According to records filed in the case, BERRY converted some of the guns to machine guns, and some of the illegally purchased firearms are linked to gang-related shootings and possession by felons. In addition to conspiracy, BERRY and McCALL are charged with making false statements in connection with purchasing firearms. BERRY is also charged with possessing a machine gun, and McCALL is charged with making a false statement to federal officers.
The grand jury returned a second indictment against CARL DEANDRE KEMP, 26, of Seattle charging him with making a false statement in acquisition of a firearm. The indictment alleges that KEMP falsely claimed that he was the actual buyer of a firearm that he purchased.
The charges contained in the indictments are punishable by up to 10 years in prison and a $250,000 fine.
The charges in the indictments are only allegations. A person is presumed innocent unless and until he or she is convicted in a court of law.
The cases are being investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), and are being prosecuted by Assistant United States Attorney Jessica Manca who serves as the Project Guardian coordinator for the U.S. Attorney’s Office.
Additional Information on Project Guardian:
Project Guardian’s implementation is based on five principles:
1) Coordinated Prosecution. Federal prosecutors and law enforcement will coordinate with state, local, and tribal law enforcement and prosecutors to consider potential federal prosecution for new cases involving a defendant who: a) was arrested in possession of a firearm; b) is believed to have used a firearm in committing a crime of violence or drug trafficking crime prosecutable in federal court; or c) is suspected of actively committing violent crime(s) in the community on behalf of a criminal organization.
2) Enforcing the Background Check System. United States Attorneys, in consultation with the Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in their district, will create new, or review existing, guidelines for intake and prosecution of federal cases involving false statements (including lie-and-try, lie-and-buy, and straw purchasers) made during the acquisition or attempted acquisition of firearms from Federal Firearms Licensees.
Particular emphasis is placed on individuals convicted of violent felonies or misdemeanor crimes of domestic violence, individuals subject to protective orders, and individuals who are fugitives where the underlying offense is a felony or misdemeanor crime of domestic violence; individuals suspected of involvement in criminal organizations or of providing firearms to criminal organizations; and individuals involved in repeat denials.3) Improved Information Sharing. On a regular basis, and as often as practicable given current technical limitations, ATF will provide to state law enforcement fusion centers a report listing individuals for whom the National Instant Criminal Background Check System (NICS) has issued denials, including the basis for the denial, so that state and local law enforcement can take appropriate steps under their laws.
4) Coordinated Response to Mental Health Denials. Each United States Attorney will ensure that whenever there is federal case information regarding individuals who are prohibited from possessing a firearm under the mental health prohibition, such information continues to be entered timely and accurately into the United States Attorneys’ Offices’ case-management system for prompt submission to NICS. ATF should engage in additional outreach to state and local law enforcement on how to use this denial information to assure better public safety.
Additionally, United States Attorneys will consult with relevant district stakeholders to assess feasibility of adopting disruption of early engagement programs to address mental-health-prohibited individuals who attempt to acquire a firearm. United States Attorneys should consider, when appropriate, recommending court-ordered mental health treatment for any sentences issued to individuals prohibited based on mental health.
5) Crime Gun Intelligence Coordination. Federal, state, local, and tribal prosecutors and law enforcement will work together to ensure effective use of the ATF’s Crime Gun Intelligence Centers (CGICs), and all related resources, to maximize the use of modern intelligence tools and technology. These tools can greatly enhance the speed and effectiveness in identifying trigger-pullers and finding their guns, but the success depends in large part on state, local, and tribal law enforcement partners sharing ballistic evidence and firearm recovery data with the ATF.
Three gunmen involved in takeover-style Woodbury bank robbery sentenced to federal prisonRead the Press Release
NEWNAN, Ga. – The three gunmen who terrorized employees of the United Bank in Woodbury, Georgia in June of 2018 have each been sentenced to at least a decade in federal prison.
“These defendants chose to rob a bank and in the process terrorized its employees,” said U.S. Attorney Byung J. “BJay” Pak. “Thanks to a quick law enforcement response they lost their getaway car and subsequently their freedom.”
“The sentencing of these three men illustrates the FBI’s commitment to working with its law enforcement partners to protect our citizens against such violent offenders,” said Special Agent in Charge of FBI Atlanta, Chris Hacker. “Hopefully this sentencing sends a message to those contemplating bank robbery that they will be aggressively investigated and prosecuted to the full extent of the law.”
“This case is a great example of teamwork. I’m thankful for the assistance of everyone involved, especially our law enforcement partners. We at the Woodbury Police Department are committed to providing a safe community for all who live in or visit. Knowing we have law enforcement partners willing to respond and support us during times like this is comforting. As we work together, we provide a safer community for everyone,” said Woodbury Police Chief Smart Web.
According to U.S. Attorney Pak, the charges and other information presented in court: Shortly after noon on June 28, 2018, a vehicle allegedly driven by Dontavious Prather (whose charges remain pending), pulled up to the United Bank in Woodbury, Georgia and dropped off three masked gunmen: Antavious Bray, Derrick Scott, and D’Asis Sheffield. Bray, armed with a semi-automatic rifle, ordered two bank employees to lie face down on the floor while he stood over them with the rifle pointed at them. Meanwhile, Scott and Sheffield, armed with handguns, threatened the teller, forced their way into the bank vault, and filled their backpacks with cash. The three gunmen then fled from the bank through a back door.
As they left the bank, Bray, Scott, and Sheffield discovered that their getaway driver had quickly left the scene without them because of the quick response of the Woodbury Police Department. At that point, the three gunmen fled on foot into a nearby wooded area. Within hours, FBI agents had captured Bray and Scott, who had broken into a nearby home to use as a hiding place.
Sheffield remained unidentified and at large until local news stations played a video clip of him walking through the backyard of a residence near the bank shortly after the robbery. Several tipsters identified Sheffield, and the FBI arrested him shortly thereafter. DNA evidence also confirmed that Sheffield was the third gunman.
Bray, Scott, and Sheffield each pled guilty to conspiracy to commit Hobbs Act robbery and brandishing a firearm during a crime of violence.
- Antavious Bray, 31, of Greenville, Georgia, was sentenced to 12 years, 10 months in prison, and five years of supervised release.
- Derrick Scott, 27, of Manchester, Georgia, was sentenced to 12 years, 10 months in prison, and five years of supervised release.
- D'Asis Sheffield, 21, of Greenville, Georgia, was sentenced to 10 years in prison, and five years of supervised release. All three men were also ordered to pay full restitution to the victims.
Dontavious Prather, 23, of Greenville, Georgia, pled not guilty to a Second Superseding Indictment on December 21, 2018, and his case remains pending in federal court. Members of the public are reminded that the indictment against Prather only contains charges. The defendant is presumed innocent of the charges, and it will be the government’s burden to prove the defendant's guilt beyond a reasonable doubt at trial.
The Federal Bureau of Investigation investigated this case.
Assistant U.S. Attorneys Bret R. Hobson and Miguel R. Acosta prosecuted the case.
This case was bought as a part of the Project Safe Neighborhoods (PSN). In keeping with the Attorney Generals mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Three Men Charged for Conspiracy to Distribute 30 Kilograms of CocaineRead the Press Release
NEWARK, N.J. – Three men have been charged with conspiring to distribute 30 kilograms of cocaine in Newark, U.S. Attorney Craig Carpenito announced today.
Yohan E. De Jesus Osornio, 29, of Los Angeles, California; Raul A. Figueroa Santana, 47, of the Bronx, New York, and Ronal Luiyi Hernandez Sepulveda, 29, of the Bronx, New York, are charged by complaint with one count of conspiracy to possess with intent to distribute more than five kilograms of cocaine. They appeared Nov. 18, 2019, before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court.
According documents filed in this case and statements made in court:
De Jesus Osornio, Figueroa Santana, and Hernandez Sepulveda were arrested on Nov. 15, 2019, in Newark after conducting a transaction involving 10 kilograms of cocaine. Law enforcement officers observed De Jesus Osornio, who had parked his tractor trailer on Passaic Street in Newark, enter a white Mazda before returning to the tractor trailer with a weighted-down bag. Around the same time, law enforcement officers observed Hernandez Sepulveda and Figueroa Santana arrive in a black Mitsubishi. Law enforcement officers observed Hernandez Sepulveda approach the tractor trailer and walk back to the Mitsubishi with a bag, which Hernandez Sepulveda placed in the back of the Mitsubishi. After approaching and apprehending the defendants, law enforcement officers searched the bag and found 10 kilograms of cocaine, and found an additional 20 kilograms of cocaine and a large sum of cash in the tractor trailer.
The count of conspiracy to distribute and possess with intent to distribute over five kilograms of cocaine carries a maximum penalty of life imprisonment and a $10 million fine.
U.S. Attorney Carpenito credited special agents of the Drug Enforcement Administration’s Newark Division, under the direction of Special Agent in Charge Susan A. Gibson, with investigation leading to the arrests.
The government is represented by Assistant U.S. Attorney Lauren E. Repole of the U.S. Attorney’s Office Criminal Division in Newark.
The charge and allegations in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Thirteen Charged, Eight Search Warrants Executed, More Than A Thousand Grams of Fentanyl and Three Firearms Seized in Project Safe Neighborhoods InvestigationRead the Press Release
PROVIDENCE – Thirteen individuals have been charged, eleven of which are in custody, and eight federal court-authorized search warrants were executed today in a series of FBI Safe Streets Task Force led pre-dawn law enforcement actions, culminating a six-month Project Safe Neighborhoods Investigation into the trafficking of significant quantities of fentanyl and other drugs in Providence.
Today, law enforcement agents and officers seized more than 500 grams of fentanyl and two firearms during the pre-dawn raids. Prior to today, the Safe Street Task Force investigation resulted in the seizure of more than 600 grams of fentanyl, 610 fentanyl pills, 67 grams of crack cocaine, 102 grams of cocaine, and a firearm.
According to court documents, all but one of the individuals charged today have had previous law enforcement contact, many convicted on multiple occasions in Rhode Island state court on drug trafficking and other violent crime charges. Several of the defendants are currently serving suspended or probationary sentences.
“The combination of deadly drugs and illegal firearms has destroyed too many lives, ruined too many families, and rendered once safe neighborhoods dangerous places to live and raise families,” commented United States Attorney Aaron L. Weisman. “This significant operation demonstrates that our federal law enforcement agencies, and their critical state and local partners, will act aggressively to protect our neighborhoods from being inundated with deadly illegal drugs like cocaine and heroin, and especially fentanyl, which has already claimed the lives of well over a thousand Rhode Islanders.”
“Dealing deadly drugs was a family affair, and for their suppliers a very dangerous one, as illustrated by the firearms we seized throughout the course of investigation. And if that’s not troubling enough, we allege at least two of these drug dealers were playing Russian roulette with people’s lives, pushing pills that were disguised as prescription painkillers, when they were really fentanyl,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “The FBI’s Safe Streets Task Force is laser-focused on stopping individuals like those we arrested today from peddling their poisons and polluting our neighborhoods with illegal firearms.”
“Opioid abuse is at epidemic levels in New England,” said DEA Special Agent in Charge Brian D. Boyle. “Illegal drug distribution ravages the very foundations of our families and communities here in Rhode Island. Let these arrests serve as an example to those who distribute poisons like fentanyl, crack-cocaine and cocaine, that DEA will aggressively pursue and hold you accountable. This investigation demonstrates the strength and continued commitment of our local, state and federal law enforcement partners.”
According to court documents and information presented to the Court, this investigation, dubbed Operation Bloodline,” began in June of 2019, when the members of the FBI Safe Streets Task Force developed information regarding the alleged drug trafficking activities of Hector Rivera, 40, of Central Falls. On June 19, 2019, Rivera allegedly delivered 50 grams of fentanyl while being surveilled by members of the Safe Street Task Force. At that same meeting, it is alleged that the individual purchasing the fentanyl from Rivera was introduced to Rafael Ferrer, 39, of Providence. It is alleged that within the next several weeks two additional deliveries of fentanyl were delivered jointly by Ferrer and Rivera. Each delivery of fentanyl was immediately seized by law enforcement.
Over the next several months, as the investigation continued, it was determined by law enforcement that a long list of individuals were allegedly associated with Ferrer, including members of his family. Law enforcement determined that drugs were allegedly being stored and prepared for delivery by members of the conspiracy in at least two Providence residences.
Transactions surveilled by law enforcement took place at homes, in the streets, and in parking lots of businesses in Providence. Little effort was made to conceal the transactions.
Project Safe Neighborhoods 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.
A criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The cases are being prosecuted by Assistant U.S. Attorneys Stacey P. Veroni and Gerard B Sullivan.
United States Attorney Aaron L. Weisman acknowledges and thanks the many law enforcement agencies that provided manpower and resources to this investigation, including the many law enforcement member agencies of the FBI’s Safe Street Violent Gang Task Force and the DEA’s Rhode Island Drug Task Force.
The FBI’s Safe Streets Violent Gang Task Force consists of agents and law enforcement officers from the FBI, the Rhode Island State Police, the Providence, Cranston, Woonsocket, Pawtucket, and Central Falls Police Departments, R.I. Department of Corrections, and the Rhode Island National Guard.
The Rhode Island DEA Drug Task Force is comprised of law enforcement personnel from DEA, Rhode Island State Police, and the East Providence, Central Falls, Coventry, Cranston, Newport, North Kingstown, Pawtucket, Providence, South Kingstown, Warwick, West Warwick and Woonsocket Police Departments.
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Superseding Indictment Charges Doctor and Alleged Co-Conspirator with Oxycodone Distribution OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, Brian C. Turner, Special Agent in Charge of the Federal Bureau of Investigation, and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that a federal grand jury in New Haven has returned a 36-count superseding indictment charging JENNIFER FARRELL and JIMIESHA McKOY with narcotics distribution offenses.
As alleged in the superseding indictment, Farrell was a medical resident at Yale New Haven Health (“YNHH”) in the Emergency Department from July 2017 until June 2019. From March 2018 to March 2019, Farrell wrote numerous prescriptions for oxycodone for non-legitimate medical purposes outside the scope of her professional practice in the name of at least five individuals, including McKoy. Farrell did not see McKoy or any of the other individuals for any medical purpose at any YNHH facility during the entire period of her residency.
The superseding indictment, which was returned on November 6, charges Farrell and McKoy with one count of conspiracy to distribute, and to possess with intent to distribute, controlled substances. The indictment also charges Farrell with 35 counts of distribution of narcotics outside the scope of professional practice and not for a legitimate medical purpose. Each charge carries a maximum term of imprisonment of 20 years.
Farrell, 37, was arrested on a federal criminal complaint on July 31, 2019, and was charged by indictment in August. Farrell, who was living in New Haven at the time of her arrest, is released on a $200,000 bond and residing in Chapel Hill, North Carolina.
McKoy, 30, of New Haven, is currently being sought by law enforcement. Citizens with knowledge of McKoy’s whereabouts, or with information that may be helpful the investigation of this matter, are encouraged to call the FBI at 203-777-6311.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Federal Bureau of Investigation and the Drug Enforcement Administration, Diversion Control Group. The case is being prosecuted by Assistant U.S. Attorney Heather Cherry.
Stockton Woman Sentenced for Two Separate Fraud ConspiraciesRead the Press Release
SACRAMENTO, Calif. — Kioni M. Dogan, 39, of Stockton, was sentenced today to four years in prison for criminal conspiracies to submit false claims for federal income tax refunds and to commit mail fraud in connection with California state unemployment insurance benefits, U.S. Attorney McGregor W. Scott announced.
In sentencing, U.S. District Judge John A. Mendez said Dogan’s criminal conduct was “a slap in the face to law abiding citizens” who comply with our tax system and who turn to unemployment benefits in times of real need.
According to court documents, for over five years Dogan was the driving force in two schemes seeking over $2 million from the California and federal governments through fraud.
U.S. Attorney Scott stated: “This defendant ran overlapping fraud schemes targeting federal and state government agencies to steal over $2.2 million. Today’s sentence reflects the extensive criminal conduct, provides just punishment, and protects the public from further crimes of this defendant.”
According to court documents, from May 2011 through April 2012, Dogan filed at least 98 fraudulent tax returns $940,000 in refunds, of which approximately $708,188 was paid out by the IRS. Dogan, co-defendant Antonia Brasley, and others obtained personal identifying information from family, friends, and others, and then submitted returns containing false statements regarding income, withholding, and losses.
“Dogan’s long-running scheme had no purpose other than to mislead and defraud the IRS and EDD,” said Kareem Carter, Special Agent in Charge IRS Criminal Investigation. “Defrauding the government is not a victimless crime as honest taxpayers end up footing the bill. Today’s sentence sends a clear message that those involved in these types of schemes will be held accountable.”
According to court documents, from 2010 through 2015, Dogan filed over 100 fraudulent unemployment insurance claims with the California Employment Development Department (EDD) seeking $1.29 million using fictitious businesses. Dogan created fictitious employers with EDD and then caused the submission of information for employees of the fictitious entities. Dogan subsequently filed unemployment claims in the names of the fake employees. Co‑defendants Gloria Harris and Lavonda Bailey are charged with collecting the fraudulent benefits, both in their own names and in the names of other fake employees. Approximately $972,319 was paid out by EDD.
“Kioni Dogan defrauded the California Employment Development Department by establishing fictitious businesses to obtain unemployment insurance benefits in the names of identity theft victims and her co-conspirators who were not entitled to such benefits. We will continue to work with our law enforcement partners and state workforce agencies to protect the integrity of unemployment insurance benefit programs,” said Quentin Heiden, Special Agent-in-Charge, Los Angeles Region, U.S. Department of Labor Office of Inspector General.
The unemployment fraud case is the product of an investigation by the U.S. Department of Labor, the California Employment Development Department, and the U.S. Postal Inspection Service. The tax fraud case was the product of an investigation by IRS Criminal Investigation. Assistant U.S. Attorney Christopher S. Hales is prosecuting both cases.
On Sept. 10, Brasley was sentenced to five years’ probation and ordered to pay $33,562 in restitution. Harris pleaded guilty to the charges on Nov. 15 and is scheduled to be sentenced on Feb. 14, 2020.
The charges against Bailey remain pending. The charges are only allegations; she is presumed innocent until and unless proven guilty beyond a reasonable doubt.