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3 January 2020
Former Acting Executive Director of Jersey City Employment and Training Program Charged in Embezzlement SchemeRead the Press Release
NEWARK, N.J. – The former acting executive director of the Jersey City Employment and Training Program (JCETP) has been charged with embezzling JCETP funds, U.S. Attorney Craig Carpenito announced today.
Sudhan M. Thomas, 44, of Jersey City, New Jersey, is charged by complaint with embezzling funds from an organization receiving federal funds. Thomas is expected to make his initial appearance on Jan. 9, 2020, before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court.
According to the complaint:
Thomas served as JCETP’s acting executive director from January 2019 until his resignation in July 2019. JCETP is a nonprofit organization that operated to assist Jersey City residents to prepare for and enter the work force. JCETP received substantial amounts of its funding from federal grants from the U.S. Department of Labor and the U.S. Department of Housing and Urban Development.
Using his access to JCETP funds and control of JCETP’s bank accounts, from March 2019 through July 2019, Thomas embezzled more than $45,000 from JCETP. Thomas caused checks to be drawn from JCETP accounts that were made payable to others, but ultimately received by Thomas. He also embezzled JCETP funds by issuing JCETP checks made out to cash that Thomas either cashed himself or used to obtain bank checks that Thomas made payable to his entity, Next Glocal, which were deposited into a Next Glocal bank account that Thomas controlled. Thomas used the JCETP funds deposited to Next Glocal’s bank account to pay for his personal expenses, including payments to Thomas’s landlord in Jersey City and airfare and hotel expenses for a trip to Hawaii, and to fund transfers to Thomas’ family trust account.
The count of theft from an organization receiving federal funds carries a maximum potential penalty of up to 10 years in prison and a fine of up to $250,000 or twice the gross pecuniary gain or loss.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the U.S. Department of Labor, Office of the Inspector General (OIG), under the supervision of Special Agent in Charge Michael Mikulka; and special agents of the U.S. Attorney’s Office, under the direction of Supervisory Special Agent Thomas Mahoney, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Tazneen Shahabuddin of the U.S. Attorney’s Office Special Prosecutions Division and Assistant U.S. Attorney Lee M. Cortes Jr., Chief of the Health Care Fraud Unit, in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
District Man Sentenced to Seven Years for Federal Firearms Charge in Robbery of Convenience StoreRead the Press Release
WASHINGTON – Cordell Brockington, 26, of Washington, D.C., was sentenced today to 84 months’ imprisonment and five years of supervised release to a federal firearms charge stemming from an armed robbery that he committed earlier this year at a convenience store in Northwest Washington, announced U.S. Attorney Jessie K. Liu, FBI Washington Field Office Criminal Division Special Agent in Charge Timothy M. Dunham, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Brockington pled guilty in the U.S. District Court for the District of Columbia to one count of using, carrying, possessing, and brandishing a firearm during and in relation to a crime of violence on November 9, 2018. He was sentenced by the Honorable Senior Judge Rosemary M. Collyer this morning.
According to the government’s evidence, on Jan. 9, 2018, at approximately 1:10 a.m., Brockington, while masked, entered a 7-Eleven store in the 1600 block of Connecticut Avenue NW. After entering the store, he approached two store clerks who were working at the time. Brockington stated to the clerks “Give me the money” several times, during which he lifted his jacket area to expose, show, and display a firearm that was located in his waistband.
Brockington then directed one of the clerks to the area of the store where two cash registers were located and instructed the clerk to open both registers. Brockington removed a total of approximately $210 from the registers. He then fled the 7-Eleven store.
Brockington was arrested on Jan. 12, 2018, and has been in custody ever since. At the time of his arrest, Brockington was on supervised release following his release from prison eight months earlier for a different armed robbery. He now faces formal revocation of his supervised release and additional incarceration separate and apart from the sentence that he received for brandishing the loaded firearm on Jan. 9, 2018.
In announcing the sentence, U.S. Attorney Liu, Special Agent in Charge Dunham, and Chief Newsham commended the work of the FBI agents and MPD officers who investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorneys Ethan Carroll, Gregory Rosen, and Kaitlin Vaillancourt.
Defendants Convicted and Sentenced in Long-Term Methamphetamine Drug Trafficking ConspiracyRead the Press Release
TALLAHASSEE, FLORIDA – With the sentencing of the last of 25 defendants, federal prosecutors this week wrapped up a large-scale methamphetamine trafficking organization operating primarily within
Taylor and Madison counties in Florida, and Colquitt County, Georgia. The final defendant, Patrick
Lemuel Bass of Taylor County, was sentenced to eight years in prison for his part in the conspiracy. The convictions and sentences in the conspiracy were announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.During the fall of 2017, an Organized Crime Drug Enforcement Task Force began investigating the distribution of methamphetamine — commonly referred to as “ice”— within Taylor and Madison counties. A total of 25 defendants were charged in a series of indictments returned in 2017 and
2018. The defendants were convicted and sentenced for conspiracy to distribute and possess with intent to distribute varying amounts of methamphetamine. The investigation also involved numerous undercover controlled purchases by law enforcement during the trafficking conspiracy.The defendants and their sentences are:
• Robert Shane Willis, Taylor County, Florida, 108 months in prison; • Robert Edward Lee, Madison County, Florida, 102 months in prison; • Takayla Rene Sanders, Colquitt County, Georgia, 96 months in prison; • Patrick Lemuel Bass, Taylor County, Florida, 96 months in prison; • Robert Wayne Cornwell, Taylor County, Florida, 96 months in prison; • Joseph Brian Stafford, Taylor County, Florida, 96 months in prison; • James Antony Farrill, Taylor County, Florida, 84 months in prison; • Keith Eric Sadowski, Taylor County, Florida, 78 months in prison; • Christopher Keith Irvin, Taylor County, Florida, 72 months in prison; • Jessica Rae Mauldin, Madison County, Florida, 72 month in prison; • Kevin Wayne Knippel, Colquitt County, Georgia, 72 months in prison; • Eric Jason Gilbreath, Taylor County, Florida, 72 months in prison;
• Bryan Heath Willis, Taylor County, Florida, 66 months in prison; • John Wayne Dixon, Taylor County, Florida, 60 months in prison; • Christopher Castleberry, Colquitt County, Georgia, 60 months in prison; • Marlo Howard, Madison County, Florida, 48 months in prison; • Travis Ryan Crosby, Madison County, Florida, 48 months in prison; • Joshua Lynn Gilbreath, Taylor County, Florida, 48 months in prison; • Brandon Douglas Hall, Colquitt County, Georgia, 42 months in prison; • Lisa Marie Ezell, Taylor County, Florida, 39 months in prison; • Jerry Franklin Sapp, Madison County, Florida, 36 months in prison; • Raymond Cody Williams, Madison County, Florida, 366 days in prison; • Samantha Agner Crouse, Taylor County, Florida, 12 months in prison; • Jamie Lynn Baumgardner, Taylor County, Florida, 8 years of supervised release; and
• Miranda Marie Stafford, Taylor County, Florida, 5 years of supervised release.This case resulted from an investigation by the federal Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives; the Florida Department of Law Enforcement; the Taylor
County Sheriff’s Office, Madison County Sheriff’s Office, Perry Police Department, and Monticello
Police Department in Florida; the Colquitt County Sheriff’s Office and Thomas County Sheriff’s
Office in Georgia; and the Florida Highway Patrol and Florida National Guard. Assistant United
States Attorneys Christopher J. Thielemann, Eric K. Mountin, James A. McCain, and Jason R. Coody prosecuted the cases.The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of
Florida website. For more information about the United States Attorney’s Office, Northern
District of Florida, visit http://www.justice.gov/usao/fln/index.html.Cling Kaipat Sentenced to 46 Months in Prison for Possession of a Stolen Firearm Following a Residential BurglaryRead the Press Release
SAIPAN, CNMI - SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that on January 3, 2020, Cling Philip Kaipat, also known as “Gilbert Kaipat,” was sentenced in U.S. District Court to 46 months imprisonment for Possession of a Stolen Firearm, in violation of 18 U.S.C. § 922(j). Kaipat was also ordered to serve three years of supervised release following his term in prison. He must also perform 50 hours of community service, unless he is gainfully employed during his release.
On November 5, 2015, Kaipat burglarized a home on Saipan. During the course of the crime, he stole a 9mm Smith and Wesson handgun, several rounds of ammunition, and other items. C.N.M.I. Department of Public Safety (DPS) investigators obtained surveillance from a nearby grocery store. The footage depicted an individual wearing dark pants and a dark shirt walking in the direction of the residence. DPS canvassed the neighborhood asking residents whether anyone recognized the individual in the surveillance video. Ultimately, someone identified Kaipat as the perpetrator. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) then began a federal investigation.
U.S. Attorney Anderson stated, “The results of this case demonstrate the benefits of our local and federal law enforcement partners working together in addressing dangers to our communities. Federal law prohibits the possession of firearms and ammunition under a variety of circumstances, including where the gun itself is stolen. The Department of Justice will continue to focus resources on these prosecutions in an effort to prevent violent crime.”
This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with the assistance and cooperation of the C.N.M.I. Department of Public Safety. The case was prosecuted by Garth R. Backe, Assistant United States Attorney for the District of the Northern Mariana Islands.
Chicago Man Sentenced to 87 Months in PrisonRead the Press Release
HAMMOND – Akeem Jackson, 29 years old, of Chicago, Illinois, was sentenced by U.S. District Court Judge Philip P. Simon after pleading guilty to Hobbs Act Robbery and Possession of a Firearm During and in Relation to a Crime of Violence, announced United States Attorney Thomas L. Kirsch II.
According to documents in the case, on April 28, 2018, Jackson and others robbed a Brinks armored car while a Brinks employee was servicing an ATM at a Chase Bank in Hammond, Indiana. During the robbery, Jackson disarmed the Brinks employee by taking his firearm. Jackson stole approximately $617,000 during the robbery.
This case was investigated by the FBI GRIT Task Force and prosecuted by Assistant United States Attorneys Jennifer Chang and Thomas McGrath.
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Caldwell University Agrees to Pay More Than $4.8 Million to Resolve Allegations of Violating False Claims ActRead the Press Release
NEWARK, N.J. – Caldwell University has agreed to pay the United States more than $4.8 million to resolve allegations that it engaged in a fraudulent scheme to defraud a federal education benefit program, U.S. Attorney Craig Carpenito announced.
“Caldwell University tried to hoodwink the Department of Veterans Affairs and, worse, veterans themselves, by claiming to offer online classes developed and provided by Caldwell that were in fact marked-up offerings by an online correspondence school,” U.S. Attorney Carpenito said. “Our veterans should never be treated this way, and we will continue to work to ensure that they receive all of the benefits that they deserve as a result of their service to the country.”
“Caldwell University’s civil settlement, along with the previous criminal convictions, sends a clear message to other educational institutions that VA OIG is dedicated to holding those accountable who would take advantage of VA programs that are intended to assist veterans and their families,” Jeffrey K. Stachowiak, Acting Special Agent in Charge, U.S. Department of Veterans Affairs Office of Inspector General, said. “Our veterans sacrificed to serve our country and they deserve to receive the full education benefits that they earned through their military service. VA OIG is committed to working closely with our fellow law enforcement partners and thanks the U.S. Attorney’s Office, District of New Jersey, for its dedication to this investigation.”
According to the settlement agreement: From Jan. 1, 2011, through Aug. 8, 2013, Caldwell University submitted false claims for payment to the Department of Veterans Affairs (VA) in order to receive education benefits and funds pursuant to the Post-9/11 Veterans Education Assistance Act (Post 9/11 GI Bill) to which it was not entitled. The Post 9/11 GI bill was designed specifically to help veterans who served in the armed forces following the terrorist attacks on Sept. 11, 2001.
Three individuals previously pleaded guilty to separate informations charging them with one count of conspiracy to commit wire fraud related to this scheme to defraud the VA. Lisa DiBisceglie, the university’s former associate dean of the Office of External Partnership; David Alvey, founder and president of Ed4Mil LLC; and Helen Sechrist, a former employee of Ed4Mil, admitted their respective roles in the conspiracy to fraudulently obtain millions of dollars in tuition assistance and other education-related benefits from the Post-9/11 GI Bill. Alvey was sentenced on June 4, 2018, to five years in prison. DiBisceglie and Sechrist were each sentenced on June 5, 2018, to three years of probation. All three defendants were also ordered to pay $24 million in restitution.
According to documents in this case and statements made in court:
Caldwell contracted with Ed4Mil to recruit and enroll eligible military veterans in non-degree fully online classes that were purportedly provided by Caldwell. DiBisceglie helped get approval from Caldwell’s administration to develop and administer a series of non-credit online courses for veterans in Caldwell’s name. In order for the courses to be eligible for education benefits under the Post-9/11 GI Bill, DiBisceglie, Alvey, and others prepared and submitted an application to the VA stating that the courses were developed, taught, and administered by Caldwell faculty and met Caldwell’s stringent educational standards. The VA approved the online courses for education benefits under the Post-9/11 GI Bill based upon the representations in Caldwell’s application.
However, Caldwell did not participate in developing or teaching the online courses. The courses were developed, taught, and administered by a sub-contractor of Ed4Mil, an online correspondence school in Pennsylvania that was not approved to receive education benefits under the Post-9/11 GI Bill.
Thousands of veterans were ultimately enrolled in the unapproved online correspondence courses without their knowledge while Caldwell and Ed4Mil profited. Even though Caldwell contributed no content or value to the courses, Caldwell charged the Post 9/11 GI Bill 10 to 30 times the prices charged by the online correspondence school for the same courses. As a result, the government paid over $24 million in tuition benefits to the university.
Allegations of fraud involving a separate government education benefit program were raised in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act. The qui tam complaint alleges that Caldwell and Ed4Mil fraudulently obtained education benefits under the Department of Defense Tuition Assistance program. This settlement resolves federal allegations that Caldwell defrauded the Post-9/11 GI Bill administered by the VA, along with the qui tam action.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Veterans Affairs, Office of Inspector General, Criminal Investigation Division, Northeast Field Office, under the direction of Acting Special Agent in Charge Stachowiak; special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; and the U.S. Department of Education, Office of Inspector General Eastern Regional Office, under the direction of Special Agent in Charge Geoffrey Wood, with the investigation.
The government is represented by Assistant U.S. Attorney David M. Eskew, Chief of the U.S. Attorney’s Office’s Health Care Fraud Unit, and Assistant U.S. Attorney Nicole F. Mastropieri of the Opioid Abuse Prevention and Enforcement Unit in Newark.
The claims settled by this agreement are allegations only, and there has been no admissions of liability.
Defense counsel: Henry E. Klingeman Esq., Newark
Relator’s counsel: Jesse Hoyer Esq., Tampa, FloridaBurgaw Man Sentenced to More than 5 Years’ Imprisonment for Possessing Gun While on Federal Supervised ReleaseRead the Press Release
NEW BERN — United States Attorney Robert J. Higdon, Jr., announced that today in federal court, United States District Judge Louise W. Flanagan, sentenced Clifton Tyrail Evans, 36, of Burgaw to 66 months’ imprisonment, followed by 3 years of supervised release. Evans was named in a single-count Indictment on January 15, 2019, charging him with possession of a firearm by a felon. On August 22, 2019, he pled guilty to a single-count Criminal Information charging the same offense.
According to the investigation, a sergeant of the Bladen County Sheriff’s Office was monitoring traffic on April 30, 2018, at the intersection of NC 11 and Natmore Road, when he spotted a car going 70 in a 55 mph zone. He stopped the car and identified the driver as the defendant. Because Evans appeared unusually nervous - so much so that he nearly burned a hole in his pants with a lit cigarette - a K-9 unit was called to investigate. After the K-9 alerted to the presence of contraband in the car, EVANS admitted he had a gun and a small amount of cocaine in the center console. Law enforcement recovered a Sig Sauer P229 9mm handgun.
This is EVANS’ second federal conviction for being a felon in possession of a firearm. The first conviction occurred in 2009, and Evans was on federal supervised release for that offense when he committed the crime for which he was sentenced today. This violation of the terms of his supervised release accounted for 18 months of the total sentence imposed. Prior to his federal conviction, EVANS also sustained two felony convictions for robbery with a dangerous weapon, a felony drug conviction, and a felony conviction for eluding with a motor vehicle.
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. Since 2017, the United States Department of Justice has reinvigorated the PSN program and has targeted 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.
That effort has been implemented through the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices in those communities on a sustained basis to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The Bladen County Sheriff’s Office conducted the investigation. Assistant United States Attorney Jake D. Pugh represented the government.
Buffalo Man Going to Prison for 10 Years on Cocaine ConvictionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Eli Clark, 29, of Buffalo, NY, who was convicted of possession with intent to distribute 28 grams or more of crack cocaine, was sentenced to serve 120 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Laura Higgins, who handled the case, stated that on October 21, 2016, law enforcement officers executed a search warrant inside the defendant’s Crowley Avenue residence in Buffalo. Officers found two Tupperware containers on the kitchen counter, each containing a quantity of crack cocaine. When asked about the substance found in the containers, Clark stated, “Whatever you find, it's my house, you take me. At the end of the day it's my house, if you find something, take me.”
The sentencing is the result of an investigation by the Niagara County Drug Task Force, under the direction of Acting Sheriff Michael Filicetti; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard; and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
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Bakersfield Resident Indicted for Illegal Possession of a Sawed-Off ShotgunRead the Press Release
FRESNO, Calif. — A federal indictment was unsealed today that charges Jesus “Shotgun” Paniagua, 37, of Bakersfield, with being a felon in possession of a firearm and failing to register a firearm in the National Firearms Registry, U.S. Attorney McGregor W. Scott announced.
On Dec. 19, 2019, a federal grand jury returned the two-count indictment. According to court documents, on Oct. 4, Paniagua, a previously convicted felon, was found in possession of an unregistered 20 gauge shotgun that was less than 26 inches long in violation of federal law.
This case is the product of an investigation by the Bakersfield Police Department. Assistant U.S. Attorney Anthony Yim is prosecuting the case.
If convicted, Paniagua faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov.
Accused Dog Abuser Pleads Guilty to Federal Gun ChargeRead the Press Release
St. Louis, MO –Paul “Paco” Garcia, 40, of Barnhart, MO, pleaded guilty to being a felon in possession of a firearm. Garrett appeared today before U.S. District Judge Catherin D. Perry who accepted his plea and set his sentencing date for April 24, 2020.
According to the plea agreement, law enforcement agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) and with the Jefferson County Sheriff’s Office began investigating Garcia in August of 2018 for trafficking in methamphetamine in an around Jefferson County.
On September 14, 2018, a Jefferson County police officer stopped Defendant for speeding near Highway MM at the Old Highway 21 interchange in Jefferson County, Missouri. The officer asked Garcia to step out of the vehicle and subsequently observed Garcia appearing to reach for a baseball bat located in the car. When officers searched the area of car where Defendant was previously seen reaching, and they located a silver baseball bat and a black firearm in the glove compartment. The firearm was a black, Rock Island Armory .38 SPL revolver with wood grips. A search of the car revealed a small black bag containing metal knuckles and additional .38 caliber bullets. Garcia admitted he kept the revolver in his glove box for protection from being robbed in connection with his methamphetamine trafficking activities
Garcia faces a penalty up to 10 years imprisonment and a fine of $250,000 or both. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case is being investigated by the Jefferson County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant United States Attorney Lisa Yemm is handling this case for the U.S. Attorney’s Office.
Garcia remains charged in Jefferson County by the State of Missouri with Animal Abuse in the Second Degree and Armed Criminal Action in connection with throwing a Dachshund from his car window after binding its muzzle and legs with tape in February of 2019. Those charges remain merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty. That case is being investigated by the Jefferson County Sheriff’s Department and prosecuted by the Jefferson County Prosecuting Attorney’s Office.
2 January 2020
Swiss Asset Management Firm and Its Owner Charged in Manhattan Federal Court for Orchestrating Stock Manipulation SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an indictment charging BLACKLIGHT, S.A., a Swiss entity purporting to offer asset management and trustee services, and its founder and principal owner, KENNETH CIAPALA, as well as ULRIK DEBO, a/k/a “Molgaard Debo,” a/k/a “Ulrik Molgaard,” with engaging in a long-running stock manipulation scheme involving numerous United States issuers. CIAPALA and DEBO were arrested in the United Kingdom, and the United States Government will be seeking their extradition to the United States.
U.S. Attorney Geoffrey S. Berman said: “As alleged, for years the Swiss firm Blacklight, S.A., its owner, Kenneth Ciapala, and Ulrik Debo have made millions of dollars by orchestrating stock manipulation schemes of publicly traded shares of U.S.-based issuers. Today’s charges make clear that our Office, along with our law enforcement partners, will vigorously prosecute those who allegedly manipulate the stocks of U.S. issuers, including those operating abroad.”
FBI Assistant Director William F. Sweeney Jr. said: “As a major facilitator of market manipulation schemes, Blacklight, S.A, allegedly enabled numerous ‘pump and dumps’ over the course of six years. Disrupting the orchestrators of illegal financial activity is a top priority for the FBI’s securities fraud team, and we consider today’s indictment of Blacklight, its founder and principal owner Kenneth Ciapala, and co-conspirator Ulrik Debo an important step in that mission.”
As alleged in the Indictment unsealed in Manhattan federal court[1]:
BLACKLIGHT, S.A. (“BLACKLIGHT”), a Swiss entity based in Geneva, Switzerland, that purported to offer asset management and trustee services to its clients, and a founder and co-principal of BLACKLIGHT, KENNETH CIAPALA, executed a wide-ranging stock manipulation scheme that spanned from in or about 2013 through December 2019 in which they manipulated the share price and trading volume of the publicly traded shares of multiple companies, and laundered the proceeds generated by the scheme. CIAPALA, utilizing BLACKLIGHT, set up various nominee entities to help scheme participants conceal their ownership of public company shares and evade SEC reporting requirements. BLACKLIGHT opened bank accounts and brokerage accounts on behalf of these nominee entities and executed trades in accounts held by these nominee entities in furtherance of the stock manipulation scheme.
ULRIK DEBO, a Danish citizen who resided in Europe, furthered the stock manipulation scheme by, among other things, identifying suitable publicly traded shell companies that could be used in the scheme; identifying, in certain instances, suitable privately held companies to engage in “reverse merger” transactions with the shell companies; obtaining financing to purchase all or substantially all of the outstanding shares of the issuers; causing various nominee entities to obtain ownership of the issuer’s shares; identifying and paying “promoters” that issued exaggerated and, at times, false press releases about the issuers in order to raise the trading price and volume of the issuer’s shares; and identifying and paying various “trading specialists” who assisted in artificially manipulating the trading volume and price of the issuer’s shares.
Overview of the Stock Manipulation Scheme
As alleged, from at least 2013 through December 2019, CIAPALA and his firm, BLACKLIGHT, as well as others, conspired to defraud the investing public by orchestrating and facilitating the manipulation of multiple publicly traded stocks, commonly referred to as “pump and dump” schemes. The vast majority of the stocks that CIAPALA, BLACKLIGHT, DEBO, and their co-conspirators sought to manipulate were “penny” or “microcap” stocks that traded in the United States on the over-the-counter (“OTC”) market. In executing these pump and dump schemes, CIAPALA, BLACKLIGHT, DEBO, and their co-conspirators (i) secretly amassed beneficial ownership of all, or substantially all, of the stock of certain publicly traded companies; (ii) began manipulating the price and demand for these stocks through, among other means, the release of materially false information to the investing public and manipulative trading practices, thereby causing the share price of these stocks to become artificially inflated; and (iii) sold out of their secretly-amassed positions at artificially inflated values at the expense of the investing public.
CIAPALA, using his firm BLACKLIGHT, primarily furthered the stock manipulation scheme by helping other participants in the scheme to obscure their beneficial ownership and control of all or substantially all of the shares of companies whose securities they sought to manipulate. CIAPALA caused BLACKLIGHT to establish nominee entities that were registered in the names of various third parties to hold the shares that were, in reality, beneficially owned and controlled by the scheme participants. In order to obscure their ownership interests, CIAPALA, BLACKLIGHT, DEBO, and others typically caused these nominee entities’ holdings to be structured so as to ensure that no single nominee entity held more than five percent of the outstanding stock of any of the relevant companies.
CIAPALA also caused BLACKLIGHT to open bank accounts in the names of these nominee entities and to trade shares owned by these nominee entities through various brokerage accounts. Through BLACKLIGHT, CIAPALA exercised trading authority over these nominee entities’ shares, and CIAPALA directed brokers to execute trades on behalf of these nominee entities in furtherance of the stock manipulation scheme. After CIAPALA, BLACKLIGHT, DEBO, and others participating in the scheme had obtained control of all or substantially all of the shares of a company, the scheme participants manipulated the share price and trading volume of the stock of the company. This typically occurred through a promotional campaign and through certain manipulative trading practices.
With respect to the promotional campaign, CIAPALA, BLACKLIGHT, DEBO, and others participating in the scheme caused promotional materials to be distributed to the investing public that contained exaggerated and, at times, false claims about the company whose stock they sought to manipulate. The scheme participants concealed from the investing public that these promotional materials were financed and created at the direction of those who beneficially owned and controlled substantially all of the shares of the relevant company that was the subject of the promotion.
In addition, to drive investor demand and artificially inflate the share price, CIAPALA, BLACKLIGHT, DEBO, and other participants also engaged in manipulative trading activity in order to artificially increase the trading volume and share price of the issuers whose stock they sought to manipulate. This manipulative trading activity included “match” trades whereby the scheme participants caused multiple nominee entities they controlled to essentially trade with one another to create the false appearance of trading volume and demand for the stock.
Laundering of the Profits Generated by the Scheme
As a result of the stock manipulation scheme, the scheme’s participants reaped millions of dollars in illicit profits by selling the shares they beneficially owned and controlled into the market at artificially inflated prices. After these crime proceeds were generated, CIAPALA and BLACKLIGHT allegedly assisted other scheme participants in obtaining their share of the proceeds by sending these funds to them in a manner designed to conceal the source of these funds and the identity of the true recipients of the funds. With CIAPALA’s knowledge and at times at his direction, transfers of the proceeds of the stock manipulation scheme were executed in a manner intended to conceal the true source of the funds and the recipients of these funds by, for example, using fabricated invoices to justify wire transfers from accounts held in the names of nominee entities (controlled and operated by BLACKLIGHT) to other bank accounts controlled by the scheme participants.
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The Indictment charges CIAPALA, 38, who resides in Switzerland, and BLACKLIGHT with one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison; three counts of securities fraud, each of which carries a maximum sentence of 20 years in prison; one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; wire fraud, which carries a maximum sentence of 20 years in prison; conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison; and money laundering, which carries a maximum sentence of 20 years in prison.
DEBO, 50, is charged with one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison; two counts of securities fraud, each of which carries a maximum sentence of 20 years in prison; one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; and wire fraud, which carries a maximum sentence of 20 years in prison.
The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Berman praised the investigative work of the FBI, and thanked authorities in the United Kingdom, the Justice Department’s Office of International Affairs of the Department’s Criminal Division, and the Securities and Exchange Commission, which initiated civil proceedings against CIAPALA, BLACKLIGHT, DEBO, and others, for their assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force and Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Noah Solowiejczyk and Vladislav Vainberg are in charge of the prosecution.
The allegations in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Suspect Arrested in Arson on Kickapoo LandRead the Press Release
OKLAHOMA CITY – DESMA VALDEZ, 19, of Lincoln County, has been arrested for arson in connection with a house fire in Indian country, announced U.S. Attorney Timothy J. Downing.
According to an affidavit in support of a criminal complaint filed on December 31, 2019, Valdez deliberately set fire to a trailer home on tribal land of the Kickapoo Tribe of Oklahoma. The affidavit alleges that Valdez was staying in the trailer home with two individuals whose burned bodies were found inside. An investigation into the cause of death is underway. The case is charged in federal court because the alleged crime took place in Indian country and Valdez is an Indian.
Valdez was injured as a result of the fire and was transported to a local hospital. She was arrested upon her release from the hospital on January 1 and made her initial appearance today before U.S. Magistrate Judge Gary M. Purcell.
If found guilty, Valdez faces a maximum potential penalty of life in prison, five years of supervised release, a fine of $250,000, and mandatory restitution.
This case is a result of an investigation by the Federal Bureau of Investigation—Oklahoma City Division; the Kickapoo Tribal Police Department; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the Bureau of Indian Affairs. Assistant U.S. Attorneys Mark Stoneman and Thomas B. Snyder are prosecuting the case.
The public is reminded that this charge is merely an allegation and that Valdez is presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to public filings for more information. To download a photo of U.S. Attorney Downing, click here.
St. Joseph Man Sentenced for $6 Million Synthetic Cannabinoid ConspiracyRead the Press Release
KANSAS CITY, Mo. – A St. Joseph, Missouri, man was sentenced in federal court today for his role in a conspiracy to distribute nearly $6 million of synthetic cannabinoid products, also known as K2.
Shakeel Khan, 42, was sentenced by U.S. District Judge Roseann Ketchmark to three years in federal prison without parole. The court also ordered Khan to forfeit to the government $2,005,239 that was seized by law enforcement during the investigation and to pay a money judgment of $4,750,000, which accounts for all K2-related deposits associated with his bank accounts.
Co-defendants Mohammed Saleem, 46, of Diamond Back, California, and Asif Saddiq, 61, of Fullerton, California, each were sentenced in December 2019 to four years in federal prison without parole. The court also ordered both Saleem and Saddiq to pay a money judgment for which they are jointly and severally liable with Khan.
Khan, Saleem, and Saddiq each pleaded guilty to participating in a conspiracy to distribute misbranded drugs across state lines from March 1, 2011, to April 30, 2014. They also each pleaded guilty to participating in a money-laundering conspiracy that involved payments totaling nearly $500,000 to bank accounts in Pakistan.
Khan, Saleem, and Saddiq admitted that they distributed synthetic cannabinoid products, a controlled substance analogue. The synthetic cannabinoid products had false and misleading labeling in that they were labeled in a manner indicating they were not fit for human consumption when, in fact, the synthetic marijuana products were intended for human consumption. This labeling caused the synthetic marijuana products to be misbranded in violation of federal law.
Saleem began producing synthetic cannabinoids in Kansas City, Missouri, in 2009, where he met Khan. Saleem’s company was MNZ WHOLESALE AND DISTRIBUTION. The following year Saleem moved to Texas to continue producing synthetic cannabinoids, while Khan continued to assist him with his operation in Kansas City. Saleem met Siddiq at a trade show in Las Vegas, Nevada, in 2011, after which he moved his operation to Los Angeles, California, and partnered with him. They ran a company called S&S Memon, Inc., DBA LA BLAZE. An affiliated company of LA BLAZE was S&S MEMON DBA LAWORLD SPICE. Another affiliated company was called LA PARADISE and MNZ WORLD SPICE. They were producing synthetic cannabinoids and during this time were producing 50,000 bags of K-2 six days a week.
In the fall of 2011, Khan traveled to Los Angeles to operate a K-2 business and opened K BROTHERS IMPORTS, INC. Saleem then put his business MNZ WHOLESALE AND DISTRIBUTION in Khan’s name.
Saleem travelled to China to purchase the chemicals needed to produce the synthetic cannabinoids. Court documents cite 16 wire transfers, totaling $1,725,250, to purchase chemicals from individuals in China from November 2011 to March 2012. Some of the chemicals that were used in the production of synthetic cannabinoid products constituted analogues to banned chemicals and were thus illegal to distribute or sell by the defendants.
This case is being prosecuted by Assistant U.S. Attorney Joseph M. Marquez. It was investigated by the Drug Enforcement Administration and IRS-Criminal Investigation.
Special Circumstances Murder, Conspiracy to Commit Murder, and Attempted Murder Charges Filed Against Gang Members in Fresno County Superior Court and in the United States District Court for Killings at a Football Watch Party in NovemberRead the Press Release
Criminal charges have been filed against multiple Mongolian Boys Society gang members in both the Fresno County Superior Court and in the United States District Court related to the murders of four (4) victims and the attempted murders of twelve (12) victims at a Sunday Night football watch party on the evening of November 17, 2019, the Fresno County District Attorney’s Office and the United States Attorney’s Office have announced.
The Federal Felony Complaint filed in U.S. District Court today alleges that Fresno residents Pao Vang, 30; Jhovanny Delgado, 19; and Johnny Xiong, 25, conspired to commit murder in aid of racketeering, in violation of Title 18, United States Code, Section 1959(a)(5).
According to the criminal complaint, on Nov. 17, 2019, members and associates of the Mongolian Boys Society conspired to commit murder. At a meeting, the defendants and others selected a target residence, chose shooters, provided them with guns, and drove to the target location. Vang, Delgado, and Xiong attended the meeting outlining the planned retaliation and understood that the objective was to murder individuals at the designated target residence. They were designated as lookouts and positioned themselves on street corners near the target residence to report the presence of law enforcement.
The partnership of federal agencies with local law enforcement is critical in the fight against violent crime. Federal agencies investigating this case are the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, and the U.S. Marshals Service.
If convicted, the defendants face a maximum statutory penalty of 10 years in prison and a fine of up to $250,000. Any sentence, however, would be determined at the discretion of the court.
The Felony Complaint filed in Superior Court alleges that Ger Lee (27, of Fresno), Anthony Montes (27, of Fresno), Porge Kue (26, of Fresno), and Billy Xiong (25, of Fresno) committed the crimes of:
- Four Counts of Murder [P.C. § 187(a)];
- One Count of Conspiracy to Commit Murder [P.C. § 182/187(a)]; and
- Twelve Counts of Attempted Murder [P.C. § 664/187(a)].
The murder charges also include two (2) special circumstances as to the four named defendants pursuant to Penal Code section 190.2 that allege:
1.) The defendants committed multiple murders [P.C. § 190.2(a)(3)]; and
2.) The murders were committed for the benefit of a criminal street gang [P.C. § 190.2(a)(22)].
That Complaint also contains the additional allegations that the four named defendants committed the crimes for the benefit of, at the direction of, or in association with a criminal street gang [P.C. § 186.22(b)], that they personally and intentionally discharged a firearm that caused great bodily injury or death [P.C. § 12022.53(d)], and that they personally and intentionally discharged a firearm [P.C. § 12022.53(c)].
If convicted of these charges in State Court, these defendants face a sentence of either Death or Life in Prison. The District Attorney’s Office is currently conducting a necessary investigation, and will make a determination and announcement regarding the death penalty at a later date.
The Media may email [email protected] with questions.
The charges are allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Sioux Falls Man Sentenced to 20 Years for Distribution of Fentanyl Resulting in Serious Bodily Injury and Conspiracy to Distribute a Controlled SubstanceRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man convicted of one count of distribution of a controlled substance resulting in serious bodily injury and one count of conspiracy to distribute a controlled substance was sentenced on December 30, 2019, by U.S. District Judge Karen E. Schreier.
Michael Wayne Cooper, age 58, was sentenced to 240 months of federal imprisonment on each count, to be served concurrently, and 3 years of supervised release on each count, to be served concurrently. He was also ordered to pay $200 to the Federal Crime Victims Fund.
According to the court documents, Cooper knowingly and intentionally distributed a controlled substance, namely fentanyl, resulting in the serious bodily injury of a victim in Sioux Falls, who overdosed on the fentanyl sold to him. The overdose victim was revived by first responders with two doses of Naloxone, commonly known as Narcan, which prevented his death.
The evidence at trial further demonstrated that Cooper had been involved in an ongoing conspiracy in Sioux Falls to illegally distribute hydromorphone (commonly known as Dilaudid), a Schedule II controlled substance, from about the beginning of 2015 through August 2018.
This case was investigated by the Drug Enforcement Administration, Sioux Falls Police Department, and the Sioux Falls Area Drug Task Force. Special Assistant U.S. Attorney Tamara Nash prosecuted the case.
Cooper was immediately turned over to the custody of the U.S. Marshals Service.
San Diego Eye Doctors Pay $950,000 to Settle Medicare Billing Fraud AllegationsRead the Press Release
Assistant U.S. Attorney Joseph P. Price, Jr. (619) 546-7642
NEWS RELEASE SUMMARY – January 2, 2020
SAN DIEGO – Mark D. Smith and Fane Robinson, two San Diego-area physicians, have paid the United States $948,768.18 to resolve allegations that they violated the federal False Claims Act by knowingly submitting false claims to Medicare.
Dr. Smith and Dr. Robinson are medical doctors specializing in ophthalmology. They maintain a medical practice in San Diego known as San Diego Retina Associates and are participating providers in federally-funded health care programs including Medicare.
The United States alleged that Drs. Smith and Robinson violated the False Claims Act by submitting false claims to Medicare for care that was provided by a San Diego Retina Associates physician who was not properly credentialed at the time to render care to Medicare patients.
The United States also alleged that Drs. Smith and Robinson improperly received Medicare payments when another San Diego Retina Associates physician provided care to Medicare patients but Drs. Smith and Robinson submitted claims that misidentified the treating physician.
The settlement concludes a lawsuit originally filed in the United States District Court for the Southern District of California by Atul Jain, M.D., an ophthalmologist and former partner at San Diego Retina Associates. Dr. Jain sued under the qui tam, or whistleblower, provisions of the False Claims Act, which permits a private citizen to initiate a lawsuit on behalf of the United States for false claims and to share in the recovery. Dr. Jain will receive $170,778.27 of the proceeds from the United States’ settlement with Drs. Smith and Robinson.
“Falsely billing in order to circumvent Medicare’s oversight of physicians negatively impacts taxpayers and puts at risk patients’ health,” said U.S. Attorney Robert Brewer. “This settlement reflects our commitment to maintain the integrity of the Medicare program. As this settlement also reflects, we continue to vigorously investigate cases brought to our attention by whistleblowers. We commend the whistleblower in this case, Dr. Jain, for coming forward and for working with investigators.”
“Federal health care beneficiaries can clearly see federal health programs’ need to pay only for the services of properly credentialed eye doctors and other medical professionals. To do otherwise could harm both patients and taxpayers,” said Timothy B. DeFrancesca, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We will continue working closely with our law enforcement partners to protect government healthcare programs and enrolled beneficiaries.”
The investigation was conducted by the U.S. Attorney’s Office for the Southern District of California and the U.S. Department of Health and Human Services’ Office of Inspector General. This case is captioned United States, et al. ex rel. Jain v. Dr. Mark D. Smith, M.D., et al., Case No. 18-cv-1213-AJB (WVG), and the matter was handled by Assistant U.S. Attorney Joseph P. Price, Jr. of the Affirmative Civil Enforcement Unit of the U.S. Attorney’s Office. U.S. Attorney Brewer commended the prosecutors and investigators for working hard to bring the case to a successful conclusion.
Sales Employee Sentenced to Prison for Defrauding National Tool Grinding in Erie, PARead the Press Release
ERIE, Pa. - A resident of Fairview, Pennsylvania, has been sentenced in federal court to 22 months in jail and ordered to pay $200,000 in restitution on her conviction of wire fraud, United States Attorney Scott W. Brady announced today.
United States District Judge David S. Cercone imposed the sentence on Elizabeth McMahan, 51.
According to information presented to the court, McMahan was a commission sales employee at National Tool Grinding in Erie. From June 2010 to August 2014, she was selling products for a thirty to ninety percent discount without authorization from her employer, which resulted in greater commissions for her. In addition, McMahan falsified commission reports by submitting false sales that never occurred and increasing purchase prices.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation and the Erie Police Department for the investigation leading to the successful prosecution of McMahan.
Rosebud Man Sentenced for Felon in Possession of a FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man convicted of Felon in Possession of a Firearm was sentenced on January 2, 2020, by U.S. District Judge Roberto A. Lange.
Alvin Running Horse, Jr., age 41, was sentenced to 9 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Running Horse was indicted by a federal grand jury on July 26, 2019. He pled guilty on September 25, 2019.
The conviction stemmed from an incident that occurred on April 23, 2019. On that date, Running Horse got into a confrontation with his wife at his residence in Rosebud. Rosebud Sioux Tribe Law Enforcement Services (RSTLES) officers responded to a call for service at the residence. Running Horse’s wife reported that Running Horse left with a firearm. Running Horse was subsequently stopped by RSTLES officers and the firearm was found in his possession.
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 its 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 local communities to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Running Horse was immediately turned over to the custody of the U.S. Marshals Service.
Minnesota Man Pleads Guilty to Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine pled guilty December 30, 2019, in federal court in Sioux City.
Emmanuel Fuentes, 35, from Madelia, Minnesota, was convicted of conspiracy to distribute methamphetamine.
At the plea hearing, Fuentes admitted that from July 2019 through August 2019, he was involved in the distribution of more than 150 grams of pure methamphetamine. In two separate investigative operations, in July and August 2019, law enforcement seized more than ten ounces of methamphetamine from Fuentes.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Fuentes remains in custody of the United States Marshal pending sentencing. Fuentes faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and at least 5 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-4053. Follow us on Twitter @USAO_NDIA.
Mexican Man Sentenced to Prison for Illegally Reentering the United StatesRead the Press Release
A man who illegally returned to the United States after being deported was sentenced today to two months in federal prison.
Pedro Hernandez-Becerra, age 38, a citizen of Mexico illegally present in the United States and residing in Oklahoma City, Oklahoma, received the prison term after a November 21, 2019, guilty plea to one count of illegal reentry into the United States.
At the guilty plea, Hernandez-Becerra admitted he had previously been deported from the United States in January 2011 and illegally reentered the United States without the permission of the United States government. Hernandez-Becerra and other illegal aliens were found by immigration agents in October 2019 after a traffic stop near Wilton, Iowa. Hernandez-Becerra was previously deported following his conviction in January 2011 in the Western District of Texas for using fraudulent identification documents when he entered the United States in December 2010. Hernandez-Becerra was also removed from the United States in May 1999.
Hernandez-Becerra was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Hernandez-Becerra was sentenced to 60 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Hernandez-Becerra is being held in the United States Marshal’s custody until he can turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-119.
Follow us on Twitter @USAO_NDIA.
Meadville Man Sentenced to 8 Years in Prison for Project Safe Childhood OffensesRead the Press Release
ERIE, Pa. - A former resident of Meadville, Pennsylvania, has been sentenced in federal court to 96 months in jail and 8 years supervised release on his conviction of violating federal laws relating to the sexual exploitation of children, United States Attorney Scott W. Brady announced today.
United States District Judge David S. Cercone imposed the sentence on Dennis Michael Kerr, 29.
According to information presented to the court, Kerr transported computer images and movies depicting minors engaging in sexually explicit conduct. Kerr also transferred and attempted to transfer obscene material to an individual Kerr thought was a minor.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation and the Pennsylvania State Police for the investigation leading to the successful prosecution of Kerr.
Man from Santo Domingo Pueblo sentenced to 15 years in federal prison for sexual abuseRead the Press Release
ALBUQUERQUE, N.M. – Clarence Garcia, 64, an enrolled member of the Santo Domingo Pueblo, who resides in Santo Domingo Pueblo, New Mexico, was sentenced today in federal court in Albuquerque to 15 years (180 months) in prison for abusive sexual contact.
Garcia pleaded guilty to this offense on Sept. 13, 2019. In his plea agreement, Garcia admitted that he committed the crime on the Santo Domingo Pueblo in Sandoval County on Nov. 10, 2013 by touching the genitalia of a girl under the age of 12 to gratify his own sexual desire.
The FBI and the Bureau of Indian Affairs investigated this case. Assistant U.S. Attorney Joseph M. Spindle prosecuted the case.
Maitland Man Pleads Guilty to Two Bank RobberiesRead the Press Release
KANSAS CITY, Mo. – A Maitland, Missouri, man pleaded guilty in federal court today to robbing banks in St. Joseph, Missouri, and Kansas City, Missouri.
Nicholas Lehman, 39, pleaded guilty before U.S. District Judge Roseann Ketchmark to two counts of bank robbery.
By pleading guilty today, Lehman admitted that he stole $4,450 from Citizen’s Bank and Trust, 5305 N. Belt Hwy., St. Joseph, on March 18, 2019. Lehman also admitted that he stole $1,940 from National American Savings Bank, 7012 N.W. Barry Rd., Kansas City, on March 20, 2019.
Lehman admitted that he approached the teller at Citizen’s Bank and Trust and gave her a handwritten note that demanded money, stated he had a gun, and claimed the teller’s family was being held hostage. Lehman, who didn’t exhibit a gun during the incident, told the teller to give him all of her money. The teller emptied her drawer and gave him $4,450.
Lehman did not conceal his face during the robbery and his image was captured by the bank’s surveillance system. Photos of Lehman were broadcast to the public through local news stations. Several individuals who knew him contacted the FBI and stated they believed he was the person responsible for the robberies.
Two days later, Lehman approached the teller’s counter at National American Savings Bank and gave the teller a note that read, “This is a robbery. NO ALARMS INK PACKS ALL BIG BILLS and NO ONE gets hurt. 5 minutes before ALARM someone is watching your family or they all get….. For an amount of 10,000.” The teller told Lehman she didn’t have that much cash, but emptied her drawer. Lehman grabbed the money and ran out of the bank.
The next day, on March 21, 2019, law enforcement officers attempted to apprehend Lehman, who was driving a 2011 Ford Edge, near the Kansas City International Airport. Lehman refused to stop and a high-speed chase ensued. Lehman stopped his car in Kansas City, Kansas, and fled on foot. He was eventually apprehended and arrested.
Under federal statutes, Lehman is subject to a sentence of up to 20 years in federal prison without parole on each of the two counts. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Matt Moeder. It was investigated by the FBI, the Buchanan County, Mo., Sheriff’s Department, and the Kansas City, Mo., Police Department.
Larry Mitchell Hopkins pleads guilty to federal firearm charge in New MexicoRead the Press Release
ALBUQUERQUE, N.M. – Larry Mitchell Hopkins, who is also known as Johnny Horton Jr., 70, of Flora Vista, New Mexico, pleaded guilty in federal court in Albuquerque today to being a felon in possession of a firearm.
A grand jury indicted Hopkins for this offense on April 24, 2019. In his plea agreement, Hopkins admitted committing this offense in San Juan County by possessing nine pistols, rifles, and shotguns on Nov. 28, 2017. Hopkins also admitted possessing ammunition after being previously convicted of felony offenses in Michigan, Oregon, and South Dakota, including illegal weapon possession and impersonating a peace officer.
Hopkins is currently in custody awaiting sentencing. He faces up to 10 years in prison for this offense.
The FBI investigated this case. The Sunland Park Police Department assisted in arresting Hopkins. Assistant U.S. Attorney George C. Kraehe is prosecuting the case.
Kerhonkson Man Sentenced in Ulster County Crack Cocaine ConspiracyRead the Press Release
ALBANY, NEW YORK – Randy Mandiville, age 31, of Kerhonkson, New York, was sentenced today to 42 months in prison for his involvement in a drug trafficking organization in Ulster County that was dismantled and indicted in March 2019.
The announcement was made by United States Attorney Grant C. Jaquith; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations (HSI), New York; Ulster County Sheriff Juan Figueroa, whose office leads the Ulster Regional Gang Enforcement Narcotics Team (URGENT); New York State Police Superintendent Keith M. Corlett; and Village of Ellenville Police Chief Philip Mattracion.
As part of his plea, Mandiville admitted that between February and December 2018, in cooperation with co-conspirators, he sold at least 16.8 grams of crack cocaine on behalf of the organization in various locations around Ellenville.
U.S. District Judge Mae A. D’Agostino also sentenced Mandiville to serve a 6-year term of supervised release upon his release from prison.
The following defendants have also pled guilty in connection with the conspiracy, and face the following penalties:
Name
Age
Minimum
Maximum
Luis Curet
34
5 years
40 years
Iqwan Mandiville
26
5 years
40 years
Edwin Jorge
46
None
20 years
The following defendants still face charges in this case, and face the following penalties:
Name
Age
Minimum
Maximum
Antonio Naveo, aka “Gratto,” aka “Green Eyes”
38
10 years
Life
Margaret Vandyke
56
10 years
Life
Jennifer McCombs, aka
“Jennifer Marks”49
5 years
40 years
Naveo is also charged with unlawful possession of a Mossberg shotgun as a felon. The charges against these defendants are merely accusations. The defendants are presumed innocent unless and until proven guilty.
This case is being investigated by HSI, the Ulster County Sheriff’s Office in conjunction with URGENT, an inter-agency taskforce targeting drug dealers and gang members in Ulster County, and the New York State Police, with assistance from the Village of Ellenville Police and the Ulster County District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney Emmet J. O’Hanlon.
Justice Department Announces Addendum to Swiss Bank Program Category 2 Non-Prosecution Agreement with Union Bancaire Privée, UBP SARead the Press Release
The Department of Justice announced today that it has signed an addendum to a non-prosecution agreement with Union Bancaire Privée, UBP SA (UBP), a private bank headquartered in Geneva, Switzerland. The original non-prosecution agreement was signed on Jan. 6, 2016. At that time, UBP reported that it held and managed 2,919 U.S. Related Accounts, with assets under management of approximately $4.9 billion, and paid a penalty of $187,767,000. In reaching today’s agreement, UBP acknowledges it should have disclosed additional U.S.-related accounts to the department at the time of the signing of the non-prosecution agreement.
“Foreign banks that participated in the Swiss Bank Program were obligated to identify all accounts in which U.S. taxpayers held an interest, directly or indirectly,” said Richard E. Zuckerman, Principal Deputy Assistant Attorney General for the Tax Division. “Today’s agreement reflects our continued commitment to ensuring that when entities cooperate and make disclosures to the Department, that they do so fully.”
The Swiss Bank Program provided a path for Swiss banks to resolve potential criminal liabilities in the United States relating to offshore banking services provided to United States taxpayers. Banks eligible to enter the program were required to advise the department that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared U.S.-related accounts. As participants in the program, they were required to make a complete disclosure of their cross-border activities, provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers had a direct or indirect interest, cooperate in treaty requests for account information, and provide detailed information about the transfer of funds into and out of U.S.-related accounts, including undeclared accounts.
The department executed non-prosecution agreements with 80 banks between March 2015 and January 2016. The department imposed a total of more than $1.36 billion in Swiss Bank Program penalties. Pursuant to today’s agreement, UBP will pay an additional sum of $14,000,000 and will provide supplemental information regarding its U.S.-related account population, which now includes 97 additional accounts.
Every bank that signed a non-prosecution agreement in the Swiss Bank Program had represented that it had disclosed all known U.S.-related accounts that were open at each bank between Aug. 1, 2008, and Dec. 31, 2014. Each bank also represented that it would, during the term of the non-prosecution agreement, continue to disclose all material information relating to its U.S.-related accounts. In reaching today’s agreement, UBP acknowledges that there were additional U.S.-related accounts that it knew about, or should have known about, but that were not disclosed to the Department at the time of the signing of the non-prosecution agreement. UBP has fully cooperated with the department with respect to the additional U.S.-related accounts.
Principal Deputy Assistant Attorney General Zuckerman thanked Thomas J. Sawyer, Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program, Senior Litigation Counsel Nanette L. Davis, and Attorney Kimberle E. Dodd of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Griswold Hotel to Make Changes to Comply with American with Disabilities ActRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that the U.S. Attorney’s Office has reached a settlement agreement with the AmericInn by Wyndham Hotel in Griswold to resolve allegations that the hotel had not been operating in compliance with the Americans with Disabilities Act of 1990 (“ADA”).
The settlement agreement resolves an ADA complaint filed by an individual with disabilities alleging that the AmericInn by Wyndham Hotel, Griswold, owned and managed by Champion Griswold, LLC, was not accessible for individuals with physical disabilities. The hotel is in the process of making the changes required by the settlement agreement, which include significant improvements to designated accessible guest rooms, accessible public restrooms, eating and recreation areas and the addition of signage for parking spaces, for individuals with disabilities. The hotel will continue to make improvements over the next three years.
Under federal law, private entities that own or operate “places of public accommodation,” including hotels, are prohibited from discriminating on the basis of disability. The ADA authorizes the U.S. Department of Justice to investigate complaints and undertake periodic reviews of compliance of covered entities. The Department of Justice 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.
U.S. Attorney Durham noted that the AmericInn by Wyndham, Griswold Hotel’s management has worked quickly and cooperatively with the U.S. Attorney’s Office to address the ADA issues without litigation.
Any member of the public who wishes to file a complaint alleging that a hotel or any other place of public accommodation 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.
This matter was handled by Assistant U.S. Attorney Ndidi N. Moses of the District of Connecticut in coordination with the Disability Rights Section of the U.S. Department of Justice Civil Rights Division
Fresno Couple Indicted for Armed Robberies in FresnoRead the Press Release
FRESNO, Calif. — A federal grand jury returned a 10-count indictment today against two Fresno residents, U.S. Attorney McGregor W. Scott announced.
Felipe Barajas, 25, was charged with interfering with commerce by robbery, brandishing a firearm in the commission of a violent crime, felon in possession of a firearm and ammunition, and possession of an unregistered firearm. Brittney Manzo, 24, is charged with two counts of interference with commerce by robbery.
According to court documents, between Oct. 30 and Nov. 21, 2019, Barajas robbed at gunpoint three commercial establishments in Fresno, and attempted to take money from one other. On Nov. 21, Manzo drove the vehicle in which Felipe Barajas fled after two of the incidents. Manzo led police on a pursuit and ultimately both she and Felipe Barajas were apprehended after the vehicle crashed and both attempted to run away.
The stores where the armed robberies were committed/attempted are: Oct. 30 — El Parian Grocery Market at 3804 E. Butler Ave., Fresno
Nov. 19 — Valley Gas & Mini Mart at 2139 S. Elm Ave., Fresno
Nov. 21 — Andres Liquor at 3953 N. Blackstone Ave., Fresno (attempted)
Nov. 21 — Star Smoke Shop at 453 N. Blackstone Ave., FresnoThis case is the product of an investigation by the Fresno Police Department with assistance from the Bureau of Alcohol, Tobacco and Firearms and Explosives. Assistant U.S. Attorney Stephanie Stokman is prosecuting the case.
If convicted, Barajas and Manzo face a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
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. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov.
Federal Inmate Assaulted Prison Staff MemberRead the Press Release
ERIE, Pa. - An inmate at the Allenwood United States Penitentiary in Allenwood, Pennsylvania pleaded guilty in federal court to a charge of infliction of bodily injury, United States Attorney Scott W. Brady announced today.
Lawrence W. Nelson, 44, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that on or about July 10, 2019, Nelson assaulted a staff member while an inmate at the McKean Federal Correctional Institution. The staff member suffered a broken nose, black eye and concussion as a result of the assault.
Judge Cercone scheduled sentencing for May 28, 2020 at 12:45 p.m. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Paul S. Sellers is prosecuting this case on behalf of the government.
Officers of the McKean Federal Correctional Institution and the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Nelson.
Federal Firearm Charge Brought Against Fresno Man Involved in Hit-and-RunRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Mario Alberto Rangel, 28, of Fresno, charging him with unlawfully possessing a firearm after being convicted of a felony crime, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Oct. 22, 2019, law enforcement officers attempted to stop Rangel for a traffic violation, but he failed to yield and fled in the vehicle at a high rate of speed. Out of concern for public safety, the officers ceased their pursuit but continued to drive in the direction that the vehicle had last been seen. Moments later, officers came upon a multiple vehicle collision involving Rangel’s vehicle. Rangel had exited his car and fled on foot but was eventually arrested. A loaded shotgun was found in the back seat of the vehicle that Rangel abandoned. Rangel is prohibited from possessing firearms because of his prior criminal record.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fresno Police Department. Assistant U.S. Attorney Justin J. Gilio is prosecuting the case.
If convicted, Rangel faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov.
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Effingham Man Sentenced to 84 Months for Fentanyl Trafficking and Firearm CrimesRead the Press Release
CONCORD – Justin English, 35, of Effingham, was sentenced to 84 months in federal prison for participating in a fentanyl trafficking conspiracy and possessing firearms in furtherance of his drug trafficking, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, between early 2018 and October 4, 2018, the Federal Bureau of Investigation’s Southern Maine Safe Streets Gang Task Force conducted an investigation into English’s fentanyl trafficking in Effingham and York, Maine. On October 4, 2018, the FBI executed a search warrant on English’s residence, arrested English, and seized approximately 200 grams of fentanyl, currency, collectible coins, and four firearms. English also forfeited $28,386 in cash and $45,738 in collectible coins to the United States. The FBI previously administratively forfeited the firearms.
English previously pleaded guilty on September 19, 2019.
“Removing armed fentanyl dealers from society makes the Granite State a safer place,” said U.S. Attorney Murray. “Fentanyl is a deadly drug that endangers the general public. The risk is compounded when the drug dealer is armed. In order to maintain public safety, we will make every effort to obtain substantial prison sentences for armed drug dealers.”
"It is a rewarding day for the FBI when a dangerously armed drug pusher like Justin English and the fentanyl he was trafficking from his home are taken off the street," said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. "The town of Effingham, and law enforcement, are surely safer without him around, considering our agents located a loaded UZI pistol, two 12-gauge shotguns, and a partially loaded assault-style rifle while searching his residence. He'll now pay the price for making the link we too often see between drugs and guns."
This matter was investigated by the Federal Bureau of Investigation’s Southern Maine Safe Streets Gang Task Force, the York, Maine County’s Sheriff’s Office, the Effingham, New Hampshire Police Department and the New Hampshire Attorney General’s Drug Task Force. The case was prosecuted by Assistant U.S. Attorney Jennifer Davis.
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Eagle Butte Woman Charged with Second Degree Burglary, Assaulting a Federal Officer, and Related OffensesRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, woman has been indicted by a federal grand jury for Second Degree Burglary, Larceny, Assaulting Resisting, and Impeding a Federal Officer, Assault with a Dangerous Weapon, and Discharging a Firearm During and in Relation to a Crime of Violence.
Justin Twite, age 22, was indicted on April 9, 2019. She appeared before U.S. Magistrate Judge Mark A. Moreno on December 30, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on December 21, 2018, Twite entered a residence in Eagle Butte where she stole a safe. She also stole a pickup parked at the residence. The Indictment further alleges that, on the same date, Twite did forcibly assault, resist, oppose, impede, intimidate, and interfere with multiple Cheyenne River Sioux Tribe Police Officers, and did assault one of the police officers with a firearm, with intent to do bodily harm to the officer.
The charges are merely accusations and Twite is presumed innocent until and unless proven guilty.
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.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Twite was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Deerfield Man Sentenced to 30 Months for Importation of EcstasyRead the Press Release
CONCORD - Ahmad Khawaja, 22, of Deerfield, was sentenced to 30 months in prison for importation of a controlled substance, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on or about May 29, 2018, Khawaja, using the internet, purchased approximately two pounds of MDMA (“Ecstasy”) from a supplier located in France. Postal Inspectors intercepted the packages and confirmed they contained the drug MDMA. Khawaja was arrested in Concord on June 1, 2018, when he picked up the packages from a person who had agreed to receive them for him.
Khawaja previously pleaded guilty on May 2, 2019.
“International trafficking activities bring dangerous drugs into New Hampshire,” said U.S. Attorney Murray. “Those who use the internet or the mails to distribute illegal drugs should be aware that federal law enforcement will closely scrutinize their activities. We continue to work with our law enforcement partners each day to protect the citizens of the Granite State from criminals who import dangerous drugs.”
This matter was investigated by the United States Postal Inspection Service and Immigration and Customs Enforcement’s Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorney John S. Davis.
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Carroll, Iowa Man Pleads Guilty to Gun ChargeRead the Press Release
A man who illegally possessed a firearm pled guilty December 30, 2019, in federal court in Sioux City.
Marcelino Delangel, 47, from Carroll, Iowa, was convicted of being a felon in possession of a firearm. Delangel had been previously convicted of three felony crimes in Mower County, Minnesota, in 2003, 2006 and 2010, respectively.
At the plea hearing, Delangel admitted to illegally possessing a .22 caliber pistol, which was seized from his vehicle that he was driving when stopped by law enforcement on November 7, 2018. Evidence at the hearing, showed the pistol was loaded with four rounds of ammunition and had been stolen during a burglary in Carroll, Iowa in October 2018.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Delangel remains in custody of the United States Marshal pending sentencing. Delangel faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, and not more than 3 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Iowa Division of Narcotics Enforcement, Bureau of Alcohol, Tobacco, Firearms and Explosives, Carroll County Sheriff’s Office, and Carroll, Iowa Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-3054. Follow us on Twitter @USAO_NDIA.
Alleged Dark Web Narcotics Trafficker Indicted for Distributing Heroin and Methamphetamine in Exchange for BitcoinRead the Press Release
Defendant Joanna De Alba, a U.S. citizen, will be arraigned this afternoon in federal court in Brooklyn on an indictment charging her with conspiring to distribute and possess with intent to distribute heroin and methamphetamine, and distribution of heroin and methamphetamine via the “dark web.” De Alba was detained on October 24, 2019 at the U.S.-Mexico border while attempting to enter the United States. The arraignment will be held before United States Magistrate Judge Steven L. Tiscione.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), announced the charges.
“As alleged, De Alba dispensed heroin and methamphetamine from the shadowy corners of the internet, believing that it provided anonymity to her and her customers,” stated United States Attorney Donoghue. “But thanks to the outstanding work by this Office’s prosecutors and DEA special agents, a bright light has been shined on her activities, and she will now be held to account for her charged criminal acts.”
“Anonymity is what drug dealers rely on in the dark web, but this case proves it’s a false security. Law enforcement is committed to tracking down drug traffickers’ distribution networks everywhere,” stated DEA Special Agent-in-Charge Donovan.
The internet contains online marketplaces for narcotics and other contraband on the “dark web,” a part of the internet located beyond the reach of traditional internet browsers and accessible only through networks designed to conceal user identities. As alleged, the “Wall Street Market” was a global dark web marketplace that required its users to trade in digital currencies, primarily Bitcoin.
Between June 2018 and May 2019, De Alba allegedly advertised and sold illegal narcotics on the Wall Street Market, using the moniker “RaptureReloaded.” Customers were directed to pay her in Bitcoin, and contact her through encrypted email and messaging services. De Alba offered customers free shipping to addresses in the United States, and “stealth” delivery options ranging from “Basic Stealth” and “Better Stealth,” to “Super Stealth 360.” These options featured measures to conceal the external and internal packaging of illegal narcotics to evade detection by law enforcement, and to inform buyers if law enforcement had intercepted, tampered with, or was monitoring the shipment.
On January 3, 2019, an undercover DEA agent accessed the RaptureReloaded listing on the Wall Street Market and purchased 30 grams of heroin for a total of $1,810. Later that day, the undercover agent purchased 10 grams of methamphetamine from the RaptureReloaded listing for a total of $160. As requested, the undercover agent paid for the drugs with Bitcoin. On January 14, 2019, the undercover agent retrieved a package shipped by RaptureReloaded via the U.S. postal service to a mailbox in Queens, New York. The package contained a small plastic container containing approximately 30 grams of a substance that tested positive for heroin, and a clear plastic bag containing approximately 10 grams of a substance that tested positive for methamphetamine. Between August 2018 and January 2019, law enforcement agents intercepted five packages containing methamphetamine pills and fentanyl that were shipped from the Netherlands and Canada and addressed to De Alba’s deceased husband at an apartment in southern California. Allegedly, since her husband’s death in March 2018, De Alba used his identity and credit cards to fund her narcotics business on the Wall Street Market.
If convicted of all counts, De Alba faces a mandatory minimum term of five years’ imprisonment and a maximum sentence of up to 100 years in prison.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorneys Saritha Komatireddy and Francisco J. Navarro.
The Defendant:
JOANNA DE ALBA (also known as “RaptureReloaded”)
Age: 39
Tijuana, MexicoE.D.N.Y. Docket No. 19-CR-563 (DLI)
31 December 2019
Tulsa Man Sentenced for Hiding $235,000 from Bankruptcy Court and IRSRead the Press Release
A Tulsa man was sentenced today for making a false statement in a bankruptcy proceeding, announced U.S. Attorney Trent Shores.
Chief U.S. District Judge John E. Dowdell sentenced Michael J. Fletcher, 64, to three years probation for lying during his bankruptcy proceeding.
“Mr. Fletcher defrauded the U.S. Bankruptcy Court and creditors. He corrupted the bankruptcy process by lying to the court and convincing family members to lie on his behalf. He further showed a history of avoiding substantial income and payroll tax obligations,” said U.S. Attorney Trent Shores. “This prosecution should serve as a warning to white collar criminals that the U.S. Attorney’s Office will diligently pursue justice and hold unscrupulous individuals accountable for their crimes.”
According to the information and written plea agreement filed in the case, Fletcher filed a bankruptcy petition in August of 2011 in which he stated that he had no legal or equitable interest in any real property. In November 2011, the Department of Justice filed a complaint objecting to the discharge of Fletcher’s federal income tax debts on the grounds that Fletcher had concealed his $235,000 interest in real property located on 110th Street in Tulsa, Oklahoma. During the trial in that matter in October 2014, Fletcher testified that his parents owned the house on 110th Street and that the down payment for the purchase was funded by a loan from his daughters to his father. In pleading guilty, Fletcher admitted that he was the source of the funds used for the down payment, and that he lied during his bankruptcy court testimony when he denied this fact
The case was investigated by special agents of IRS-Criminal Investigation. Assistant Chief Andrew Kameros of the Tax Division and Assistant U.S. Attorneys Charles M. McLoughlin and Victor A.S. Régal prosecuted the case.
Additional information about the Justice Department’s Tax Division and its enforcement efforts may be found on the division’s website.
Seafood Company Charged with Violations of the Lacey ActRead the Press Release
NEW ORLEANS, LOUISIANA – INDIAN RIDGE SEAFOOD COMPANY, LLC, a Louisiana Limited Liability Company located in Terrebonne Parish, Louisiana, was charged on December 30, 2019 in a one count Bill of Information for the illegal sale of oysters in violation of the Lacey Act.
According to the Bill of Information, from November 1, 2017 through March 19, 2019, INDIAN RIDGE SEAFOOD did knowingly sell and transport oysters in interstate commerce with a market value in excess of $350.00, when, in the exercise of due care, INDIAN RIDGE SEAFOOD should have known that said oysters were acquired and possessed in violation of and in a manner unlawful under the laws of the State of Louisiana, specifically, Louisiana Revised Statutes, R.S. 56:306.4, R.S. 56:306.5, R.S. 56:306.6.
INDIAN RIDGE SEAFOOD faces a maximum fine of not more than $200,000 and a special assessment of $125.00.
U.S. Attorney Peter G. Strasser praised the work of the National Oceanic and Atmospheric Administration, the Food and Drug Administration Office of Criminal Investigations and the Louisiana Department of Wildlife and Fisheries in investigating this matter. Assistant United States Attorney Julia K. Evans is in charge of the prosecution.
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Local man indicted in $1 million identity theft schemeRead the Press Release
HOUSTON – A 34-year-old Nigerian man who resided in Houston has been charged with conspiracy, bank fraud and aggravated identify theft, announced U.S. Attorney Ryan K. Patrick.
Julius Joachim Ohumole is set to appear at 10 a.m. today before U.S. District Judge Dena Hanovice Palermo. A Houston grand jury returned the seven-count indictment Dec. 19. He was originally charged by criminal complaint Nov. 8 and later taken into custody.
Ohumole is charged with one count of conspiracy, four counts of bank fraud and two counts of aggravated identify theft.
The charges allege Ohumole opened a bank account in the name of Mars Construction (MARS) Dec. 5, 2018, at Regions Bank in Houston. At that time, he allegedly used false identification documents which identified him as someone else.
Later than month, Ohumole accompanied another individual to Regions who used false identification documents to appear as an actual accountholder with the bank, according to the allegations. Ohumole allegedly requested that person be added as a co-signor to the MARS account which then allowed it to be linked to the real accountholder.
According to the allegations, an unknown individual transferred $274,000 from the real Regions account to the MARS account without the true person’s consent, knowledge or authorization. The same day, all but $1,000 of those funds were allegedly wired transferred to a bank account in New York and subsequently out of the country. A similar set of transactions involving approximately $200,000 occurred a few days later, according to the charges.
The allegations also state Ohumole allegedly went to another Regions Bank and again used false identification documents to open a separate account, this time in the name of JMW Holt Constructions (JMW). Similarly, he allegedly accompanied another person who used fake documents to appear as a bank accountholder and requested their addition as a co-signor. Again, the scheme involved the transfer of thousands of dollars – approximately $805,000 – from the real account to the JMW account, then to an account in New York and out of the United States, according to the charges.
Each count of conspiracy and bank fraud carries a possible sentence of up to 30 years in federal prison and the aggravated identify theft charge carries up to two years, upon conviction. Each conviction also carries a possible $1 million maximum fine.
The FBI conducted the investigation. Assistant U.S. Attorney John Braddock is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless and until convicted through due process of law.Indictment Returned in Woonsocket Arson FireRead the Press Release
PROVIDENCE – An individual who allegedly broke into a Woonsocket manufacturing plant and set fires in several locations, and whose identity became known after a surveillance photograph of him was posted to Rhode Island’s Most Wanted website, was indicted today by a federal grand jury on a charge of arson.
Woonsocket Police Department personnel responded to an alarm at Sports Systems Custom Bag Corporation in the early morning hours of April 5, 2019, and discovered smoke in the building and water flowing from sprinkler heads in the basement and first floor. A small fire inside a desktop computer lying on the floor in the basement and smoldering papers on a desk in a first floor office were quickly extinguished. The sprinkler system had contained or extinguished most of the fire prior to the fire department’s arrival.
Investigators also observed evidence of forced entry, smashed computers, ransacked offices, and an attempted forced entry into a safe.
Investigators also retrieved a smashed and badly damaged DVR used to record security camera images. According to court documents, recovered video surveillance shows a person using a ladder to access the building. The same person is seen walking around the building collecting various items and placing them into bags, which he obtained from within the facility.
At one point the person takes down an American flag hanging in the building, folds it in a military fashion, and then places it into his backpack.
According to court documents, the individual seen in the video initially touches several items in the building then puts on a pair of gloves and wipes down those places he previously touched. He also disabled and destroyed several surveillance cameras.
Images of the individual captured on video and retrieved from the security camera DVR were posted by law enforcement to Rhode Island’s Most Wanted website. Information from the public assisted law enforcement in identifying the person as allegedly being Jacob E. Lahousse, 20, who has no known address. Law enforcement located and arrested Lahousse on December 26, 2019. He was ordered detained in federal custody by U.S. District Court Magistrate Judge Patricia A. Sullivan.
Lahousse’s indictment, returned today, is announced by United States Attorney Aaron L. Weisman, Special Agent in Charge of the Boston Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Kelly D. Brady, Woonsocket Police Chief Thomas Oates, and Rhode Island State Fire Marshal Timothy McLaughlin.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorney Dulce Donovan.
The matter was investigated by the Woonsocket Police Department, the Office of the State Fire Marshal, and ATF.
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Construction company owners admit income tax fraud in building Billings mansionRead the Press Release
BILLINGS – The owners of Kisling Quality Builders today admitted they evaded paying more than $320,000 in taxes in a scheme in which they used the construction of a Billings mansion to avoid reporting more than $800,000 in profits, U.S. Attorney Kurt Alme said.
James Kisling, 51, and his wife, Timilynn Kisling, 44, of Billings, each pleaded guilty to an information charging them with two counts of tax evasion. The Kislings face a maximum five years in prison, a $100,000 fine, costs of prosecution and three years of supervised release.
U.S. Magistrate Judge Timothy J. Cavan presided and will recommend the couple’s pleas be accepted by U.S. District Judge Susan P. Watters, who is hearing the case. The Kislings were released pending further proceedings. A sentencing date has not yet been set.
Prosecutors said in court records that the Kislings, who own KQB, arranged with Larry Wayne Price, Jr., to hide income when Price hired the company in 2014 to build his house—one of the largest residential mansions every constructed in Billings. KQB agreed to construct the house at cost plus 9 percent, making KQB’s profit an additional 9 percent of the cost.
Price, a former vice president of Signal Peak Energy, a Montana coal company, is awaiting sentencing for his guilty pleas to wire fraud, money laundering and false statements for defrauding coal companies of about $20 million and lying to investigators about a fake abduction. Price’s Billings mansion is among properties to be forfeited at sentencing as part of an agreement with the government.
The Kislings committed tax fraud with Price’s cooperation and knowledge, prosecutors said in court documents. In 2014, the Kislings began building a home for themselves. Instead of paying for this house with their income, the Kislings arranged with Price to make it appear as if the cost of their personal house was part of construction costs of Price’s mansion. The Kislings referred to their house as the “Price Guest House” in work documents for the mansion, and they deducted construction costs for this house from the 9 percent profits they were supposed to receive from Price. Rather than pay the Kislings their profit for building the mansion, Price and the Kislings agreed that Price would simply not pay them approximately $526,132, which was the cost of constructing their personal home, but that the Kislings would still credit him for doing so.
Through this arrangement, the Kislings disguised $526,132 of profits on the Price mansion and deliberately did not report this income to the IRS on their 2014 tax return as required.
In 2015, a similar transaction occurred when the Kislings needed a $275,000 loan on a short time frame for a land transaction in Wyoming. Instead of going to a bank for financing, the Kislings asked Price for the money. Price agreed to the loan and provided the funds. And in an arrangement similar to the Kislings’ personal house construction, the repayment of this loan was disguised as expenses related to the “Price Guest House” and deducted from the 9 percent Price was supposed to pay the Kislings. As a result, the Kislings disguised $275,000 of profits for their work on the Price mansion. The Kislings deliberately did not report this income to the IRS on their 2015 tax return as required.
In an interview with Department of Justice representatives, the Kislings acknowledged that they knowingly and willfully omitted profits from their 2014 and 2015 tax returns and that they both participated in the scheme. The scheme enabled the Kislings to hide approximately $801,132 in income from the IRS.
The parties disagree on the amount of the government’s loss from the fraud but hope to resolve the difference before sentencing. The IRS has calculated the tax due and owning as $327,664, not including penalty and interest, while the Kislings’ accountant has calculated the tax due as $320,102, not including penalty and interest.
Assistant U.S. Attorneys Colin Rubich, Zeno Baucus and Tim Tatarka are prosecuting the case, which was investigated by the IRS and FBI.
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Bucks County Dentist to Pay $150,000, Cease Prescribing Schedule II Opioids for Four Years, to Resolve Allegations of Opioid-Mishandling and Diversion for Personal UseRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced today that Bucks County dentist Dr. Pranathi V. Reddy will pay $150,000 and stop prescribing Schedule II opioids for four years to resolve allegations that she diverted controlled substances for personal use and overdosed on one occasion, and that she failed to comply with various record-keeping requirements for controlled substances.
The settlement resolves allegations that, on October 14, 2018, Reddy diverted a package of controlled substances for her personal use, which resulted in an overdose and her transport to the hospital. It also resolves allegations that, from June 2017 through November 2018, she failed to maintain various records of the controlled substances she used in her professional practice as a dentist. For example, the settlement resolves allegations that Reddy failed to maintain an initial inventory of her controlled substances, document the transfer of controlled substances on the required forms, and failed to maintain the controlled substances at her registered locations.
In addition to the $150,000 penalty, Reddy is now barred from purchasing, prescribing, or dispensing any Schedule II controlled substances for at least the next four years. She is also subject to a number of monitoring requirements, including reporting her controlled substance purchasing, dispensing, and prescribing to the Drug Enforcement Administration.
“Controlled substances, especially opioids, pose extraordinary risks to our communities, including to healthcare providers,” said First Assistant U.S. Attorney Williams. “When providers are granted the privilege of purchasing and prescribing controlled substances, they also accept the weighty responsibilities that come along with those privileges, including ensuring that controlled substances are used for a legitimate medical purpose and generating the records necessary for accountability and transparency. Unfortunately, sometimes they fail to comply with these critical responsibilities, and that is when it is necessary for our Office to step in and work with our law enforcement partners to use all available enforcement tools to hold these providers responsible.”
“Dr. Reddy, like all DEA registrants that are licensed and entrusted with the safe handling of powerful controlled substances, failed to accurately document and secure these same controlled substances in accordance with federal regulations,” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s Philadelphia Field Division. “In the midst of the current opioid crisis, even medical professionals are not immune from the perils of substance use disorder.”
This investigation was conducted with the Pennsylvania Department of State’s Bureau of Enforcement and Investigation and the Drug Enforcement Administration’s Philadelphia Field Division and Camden, New Jersey Resident Office. For the United States Attorney’s Office, Assistant United States Attorney Anthony D. Scicchitano handled the investigation and settlement.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
30 December 2019
Wisconsin Falconer Guilty of Lacey Act ViolationRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that James Kitzman, 69, Oak Creek, Wisconsin, pleaded guilty today in U.S. District Court in Madison to conspiracy to violate the Lacey Act for his role in illegally bartering a northern goshawk. This charge carries maximum penalties of one year in prison and a $100,000 fine.
During the plea hearing, Kitzman admitted that in late 2016 through August 2017, he and Edward Taylor (a Michigan falconer) arranged to barter a northern goshawk taken from the wild in Vilas County Wisconsin in exchange for a captive-bred Finnish goshawk. It was part of the conspiracy that they covered up the receipt and transport of the northern goshawk from Wisconsin to Michigan, in violation of the Migratory Bird Treaty Act (MBTA) and the Lacey Act. It is illegal to sell or barter northern goshawks because they are migratory birds and protected by the MBTA.
Specifically, on May 26, 2017, Kitzman took from the wild a female northern goshawk from a nest located on state land in Vilas County. Kitzman traded the northern goshawk for a Finnish goshawk from Taylor. Both Taylor and Kitzman filled out false reports with the Michigan DNR and Wisconsin DNR to cover up their actions. Kitzman told his associates to “keep it hush-hush and not tell anybody” that he was giving the female northern goshawk to Taylor. Kitzman also told Taylor to use a cover story if ever asked by authorities about how the northern goshawk was taken and transferred.
As part of the plea agreement, Kitzman has agreed to pay a fine of $15,000 to the Lacey Act Reward Fund and forfeit the Toyota Tacoma pickup truck he used to transport the northern goshawk taken from the wild on May 26, 2017.
U.S. Magistrate Judge Stephen L Crocker scheduled Kitzman’s sentencing for March 2, 2020, at 11:00 a.m. Taylor pleaded guilty to the same conspiracy charge on December 11, 2019. Taylor’s sentencing is scheduled for February 25, 2020, at 3:00 p.m.
The charges against Kitzman and Taylor were the result of an investigation conducted by law enforcement agents with the U.S. Fish & Wildlife Service, Wisconsin Department of Natural Resources Bureau of Law enforcement, and the Michigan Department of Natural Resources. The prosecution of this case has been handled by Assistant U.S. Attorney Daniel J. Graber.
U.S. Attorney’s Office Announces Total Prosecutions against Defendants Who Illegally Possessed Firearms in 2019Read the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that, in 2019, the U.S. Attorney’s Office charged 65 defendants with unlawful possession of a firearm. These indictments emphasize prosecution against individuals convicted of felonies or misdemeanor crimes of domestic violence, and who would therefore be prohibited from possessing firearms.
Unlawful possession of a firearm carries a maximum sentence of up to 10 years in federal prison. To date, nine of the 65 defendants face additional charges for their alleged participation in varied criminal conduct that involved firearms, including bank robbery and armed drug trafficking.
“Violent crime remains a critical problem in Alaska,” said U.S. Attorney Schroder. “The U.S. Attorney’s Office has made prosecution of gun crimes one of our highest priorities. As a result of these efforts, we have taken over 200 gun carrying criminals off the streets since 2017.”
The charges are a result of initiatives stemming from Project Safe Neighborhoods (PSN), the Department of Justice’s signature gun and gang reduction program, and the District’s Anti-Violent Crime Strategy, which brings together local, state, and federal authorities to combat rising crime in Alaska. As part of this strategy, the Anchorage Police Department is also utilizing ATF’s National Integrated Ballistic Information Network (NIBIN), which is the only national network that allows for the capture and comparison of ballistic evidence. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles.
These cases are often developed through cooperation with the State of Alaska Department of Law, and investigated by local, state, and federal authorities to include the Anchorage Police Department (APD), Alaska State Troopers (AST), Federal Bureau of Investigation (FBI), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Drug Enforcement Administration (DEA), and Homeland Security Investigations (HSI). In addition, and in partnership with the Municipality of Anchorage, an Assistant Municipal Prosecutor has been appointed to the U.S. Attorney’s Office to prosecute firearm and drug offenses as a Special Assistant U.S. Attorney (SAUSA).
Last month, the Department of Justice announced the launch of Project Guardian, a nationwide strategic plan to reduce gun violence. Project Guardian serves as a complementary effort to the success of PSN, and emphasizes the importance of using all modern technologies available to law enforcement to promote gun crime intelligence.
Tulsa Man Sentenced to 14 Years in Prison for Federal Firearms and Drug Trafficking CrimesRead the Press Release
Evan Jamon Woodard, 34, of Tulsa, was sentenced Monday in U.S. District Court for two firearms violations and for possession with intent to distribute cocaine, marijuana and heroin, announced U.S. Attorney Trent Shores.
U.S. District Judge Gregory K. Frizzell sentenced Woodard to 14 years in federal prison to be followed by five years of supervised release.
“It’s appropriate we close out this year with a gun and drug related sentencing of a seven-time repeat felon. Project Safe Neighborhoods is designed to protect communities from these types of career criminals,” said U.S. Attorney Trent Shores. “The U.S. Attorney’s Office and our law enforcement partners work together to send individuals, like Mr. Woodard, to federal prison to account for the harm they repeatedly inflict in our communities.”
In September, a jury found Woodard guilty of seven felony charges. Woodard was convicted of being a felon in possession of a firearm and ammunition; possession with intent to distribute cocaine (2 counts), possession with intent to distribute heroin; possession with intent to distribute marijuana (2 counts); and possession of a firearm in furtherance of drug trafficking crimes.
Woodard remains in the custody of the U.S. Marshals Service until transfer to a U.S. Bureau of Prison’s facility.
Woodard’s arrest and conviction were the result of a coordinated effort involving the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Tulsa and Bartlesville Police Departments, and Assistant U.S. Attorneys Victor Régal and Edward Snow.
Project Safe Neighborhoods is the nationwide federal initiative to disrupt gun violence strategically and comprehensively, using all available enforcement and prosecutive tools. The initiative involves a partnership of federal, state and local authorities, uniting their efforts and leveraging existing and new resources at all levels. Each United States Attorney’s Office will create a specialized unit that tailors its approach to the unique needs of its own district and targets the most significant gun crime problems within that district to maximize the impact of the initiative and help ensure the safety of the community.
Tax Preparer Admits Conspiring to Commit Tax FraudRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, tax preparer today admitted her role in conspiring to defraud the IRS and filing false personal tax returns for a New Jersey business owner and two other individuals, U.S. Attorney Craig Carpenito announced.
Zenobia Williams, 52, of Maplewood, New Jersey, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to one count of conspiring to defraud the IRS by reporting false business expenses on the business owner’s tax return to fraudulently reduce his tax liability and by reporting those sham expenses as income on two other individuals’ tax returns to obtain unwarranted refunds for them.
According to documents filed in this case and statements made in court:
In 2016, Williams operated Maplewood Business Services LLC, a tax preparation business in Maplewood. Williams and the New Jersey business owner agreed to report false labor expenses for his business on his personal tax return for calendar year 2015 to decrease his tax liability.
On January 5, 2016, Williams sent the business owner a text message, stating, “Hey Fella, I have 1 client right now that needs 15,750 in income. I need you to produce a 1099MISC form for that person. I will give you the information. Let me know how much more income you need to 1099.” Subsequently, at the business owner’s direction, Williams prepared two IRS Forms 1099 which falsely stated that, in 2015, his business paid one individual compensation of $15,800 and another individual compensation of $11,255, when both Williams and the business owner knew that no such compensation had been paid to those individuals.
Williams also prepared a personal tax return for the business owner which falsely reported the phony business expenses totaling $27,055, which both Williams and the business owner knew would fraudulently decrease the amount of tax that the business owner owed the IRS for calendar year 2015. Williams also reported the bogus business expenses as income on the tax returns of the two individuals referred to above, which resulted in both receiving unwarranted tax refunds from the IRS.
The tax fraud conspiracy charge to which Williams pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing of the defendant is scheduled for April 17, 2020.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur; special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; and special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Cari Fais and J Imbert of the U.S. Attorney’s Office’s Special Prosecutions Division.
Defense counsel: Kenneth W. Kayser, Esq., East Hanover, New Jersey
Sisseton Man Sentenced to 13 Years for Sexual AbuseRead the Press Release
United States Attorney Ron Parsons announced that a Sisseton, South Dakota, man was sentenced on December 27, 2019, by U.S. District Judge Charles B. Kornmann.
Brendon Javon Jacob Rodlund, age 30, was sentenced to 157 months in federal prison, to be followed by 10 years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund.
According to court documents, April 30 and May 1, 2016, Rodlund knowingly engaged in a sexual act with a juvenile victim, while the victim was physically incapable of declining participation in and communicating her unwillingness to engage in the sexual act. Rodlund knew the victim was incapacitated. During the investigation of this sexual assault, Rodlund also lied under oath to the U.S. District Judge while testifying at a federal court hearing involving the victim and others. Rodlund’s untruthful testimony was used to enhance his sentence for the sexual assault of the victim.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy Jehangiri prosecuted the case.
Rodlund was remanded to the custody of the U.S. Marshals Service.
Second Main Co-Conspirator in TimeShare Resale Fraud Scam Targeting Elderly Victims Sentenced to Prison for Defrauding Victims Out of $3.37 MillionRead the Press Release
LAS VEGAS, Nev. – The second main co-conspirator in a large-scale timeshare resale scam was sentenced today to 70 months in federal prison for defrauding more than 1,000 victims — many of them elderly — out of more than $3.3 million, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
Paul Michael Marciniak, 34, of Orlando, Florida, pleaded guilty to conspiracy to commit mail fraud and wire fraud. In addition to the prison term, U.S. District Judge Jennifer Dorsey sentenced Marciniak to three years of supervised release and ordered him to pay $3.37 million in restitution to the victims of the fraud scheme.
According to court documents, from October 2010 to April 2012, Marciniak and his co-conspirators (including Daniel Boyar, the leader of the scheme) devised and participated in a telemarketing scam to defraud over 1,000 timeshare owners out of more than $3.3 million dollars. They used stolen data to identify timeshare owners and promised to sell the timeshares in return for the owners paying in advance half of the costs associated with the purported sales. But there were no buyers and the timeshare sales never occurred. This is a common criminal telemarketing scheme known as “the buyer’s pitch.”
The scam operated out of Orlando, Florida, under several different business names including Holiday Advertising, First Capital Financial Services Corporation, Great West Funding Incorporated, Beneficial Business Solutions, Vacation Funding Partners LP, and Property, People, Travel, using fake front companies in various cities across the country, including Las Vegas. The co-conspirators would buy inactive companies that had previously been licensed in their target state, use false identities, and lease temporary office spaces. The co-conspirators created websites with false information including customer testimonials, company officers, and press releases. They also used telephone numbers that made it appear as if they were calling from the location of the fake front company. These actions were intended to mislead the victims and make the scam appear legitimate.
20 of Marciniak’s co-conspirators were charged and have pleaded guilty for their involvement in this fraud scheme. 17 of these co-conspirators have been sentenced and the remainder await sentencing.
The case resulted from investigation by the FBI, the U.S. Postal Inspection Service, and the Florida Department of Agriculture and Consumer Services. Assistant U.S. Attorney Dan Cowhig prosecuted the case.
Consumers should use caution when previously unknown telemarketers offer unsolicited services. It is relatively easy for scam artists to create the appearance of legitimacy for a fraudulent business front by manipulating information available through the Internet. Fraudsters frequently are able to buy or steal information related to an intended victim that the victim believed was confidential, helping the fraudster trick the victim into believing the fraudster is part of a legitimate business.
Elder fraud complaints may be filed with the Federal Trade Commission at www.ftccomplaintassistant.gov or at 1-877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime at www.ovc.gov. Additional elder justice resources, training, and outreach materials can be found at the Elder Justice Website at www.elderjustice.gov.
Rapid City Man Charged with Making False Statement to Obtain GunRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man was charged in federal district court with False Statement During Purchase of a Firearm.
Uriah Lafferty, age 34, was charged on December 17, 2019. Lafferty appeared before U.S. Magistrate Judge Daneta Wollmann on December 27, 2019, and pleaded not guilty to the charge. The maximum penalty upon conviction is 10 years in federal prison and/or a $250,000 fine, 3 years supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Lafferty knowingly making a false written statement in order to purchase a firearm in October 2019 at Rapid City. The charge is merely an accusation and Lafferty is presumed innocent until and unless proven guilty.
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 its 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 local communities to develop effective, locally-based strategies to reduce violent crime.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
Lafferty was detained pending trial. A trial date has not been set.
Orange County Man Charged with Federal Hate Crimes for December 28, 2019, Machete Attack at Rabbi’s HomeRead the Press Release
Eric Dreiband, Assistant Attorney General for Civil Rights, Geoffrey S. Berman, the U.S. Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the FBI, announced today that Grafton Thomas has been charged with five counts of obstructing the free exercise of religion in an attempt to kill, a federal hate crime, related to his machete attack during Shabbat and Hanukkah observances at a Rabbi’s home in Monsey, New York, on the night of Dec. 28, 2019. Thomas is expected to be presented in White Plains federal court later today.
”Every American should be free to live and worship in safety,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “The department will vigorously prosecute those who commit hate crimes, and we will continue to work with our state and local partners to bring to justice anyone who violates the civil rights of Americans.”
“As alleged, Grafton Thomas targeted his victims in the midst of a religious ceremony, transforming a joyous Hanukkah celebration into a scene of carnage and pain,” said U.S. Attorney Geoffrey S. Berman for the Southern District of New York. “Today is the eighth day of Hanukkah, the festival of lights that commemorates Jews’ struggle to practice their faith more than two millennia ago. And we are about to welcome a new year. Even in the face of tragedy, both milestones are an occasion for renewed hope and resolve: To combat bigotry in all its forms – and to bring to justice the perpetrators of hate-fueled attacks.”
“When an individual’s actions cross the threshold of a federal crime, as we allege Mr. Grafton did here, we will act swiftly,” said FBI Assistant Director William F. Sweeney Jr. “The message from today’s charges should be crystal clear – the FBI won’t tolerate violence against anyone. Working with our partners, we will hold anyone who commits a crime like this accountable for their actions. The federal penalties for this type of attack are severe and justified. In this instance, the local community was engaged, and their actions were essential to saving lives and led directly to Mr. Grafton’s capture. It’s the rest of our community’s joint responsibility to step up and engage as well – don’t give hate a platform to propagate and don’t dismiss this type of behavior as someone else’s problem, address it and immediately report suspicious activity to authorities.”
According to the complaint unsealed today in White Plains federal court:
On Dec. 28, 2019, Thomas entered a Rabbi’s home in Monsey, New York, which is adjacent to the Rabbi’s synagogue, during observances related to the end of Shabbat and the seventh night of Hanukkah. Thomas declared to dozens of assembled congregants, “no one is leaving,” and attacked the group with an 18-inch machete. At least five victims were hospitalized with serious injuries, including slash wounds, deep lacerations, a severed finger, and a skull fracture.
Following the attack, Thomas traveled in a car to New York City, and he was stopped in Harlem by members of the New York City Police Department. The responding officers observed what appeared to be blood on Thomas’s hands and clothing, and smelled bleach coming from his vehicle. A search of Thomas’s vehicle led to the seizure of, among other things, a machete that appeared to have traces of dried blood on it. Law enforcement subsequently searched Thomas’s residence and cellphone pursuant to warrants. The residence contained handwritten journals with several pages of anti-Semitic references. Thomas’s cellphone contained Internet searches dating back to at least November 2019 for terms such as “Zionist Temples” in Staten Island and New Jersey, as well as a webpage visit on the day of the attack to an article titled, “New York To Increase Police Presence After Anti-Semitic Attacks.”
Thomas, 37, is charged with five counts of obstructing the free exercise of religion in an attempt to kill, in violation of Title 18, United States Code, Section 247. An indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty. Each of the five counts carries a maximum prison term of life. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Assistant Attorney General Dreiband and Mr. Berman praised the outstanding efforts of the FBI, the Rockland County District Attorney’s Office, the Ramapo Police Department, the Rockland County Sherriff’s Office, the New York State Police, the Clarkstown Police Department, and the New York City Police Department.
This case is being handled by the Office’s Terrorism and International Narcotics Unit and its White Plains Division. Assistant U.S. Attorneys Michael K. Krouse and Lindsey Keenan are in charge of the prosecution.
Orange County Man Charged with Federal Hate Crimes for December 28, 2019, Machete Attack at Rabbi’s HomeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Eric Dreiband, Assistant Attorney General for Civil Rights, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today that GRAFTON THOMAS has been charged with five counts of obstructing the free exercise of religion in an attempt to kill, a federal hate crime, related to his machete attack during Hanukkah observances at a rabbi’s home in Monsey, New York, on the night of December 28, 2019. THOMAS is expected to be presented in White Plains federal court later today.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, Grafton Thomas targeted his victims in the midst of a religious ceremony, transforming a joyous Hanukkah celebration into a scene of carnage and pain. Today is the eighth day of Hanukkah, the festival of lights that commemorates Jews’ struggle to practice their faith more than two millennia ago, and we are about to welcome in a new year. Even in the face of tragedy, both milestones are an occasion for renewed hope and resolve: To combat bigotry in all its forms – and to bring to justice the perpetrators of hate-fueled attacks.”
Assistant Attorney General Eric Dreiband said: “Every American should be free to live and worship in safety. The Department will vigorously prosecute those who commit hate crimes, and we will continue to work with our state and local partners to bring to justice anyone who violates the civil rights of Americans.”
FBI Assistant Director William F. Sweeney Jr. said: “When an individual’s actions cross the threshold of a federal crime, as we allege Mr. Thomas did here, we will act swiftly. The message from today’s charges should be crystal clear – the FBI won’t tolerate violence against anyone. Working with our partners, we will hold anyone who commits a crime like this accountable for their actions. The federal penalties for this type of attack are severe and justified. In this instance, the local community was engaged, and their actions were essential to saving lives and led directly to Mr. Thomas’s capture. It’s the rest of our community’s joint responsibility to step up and engage as well – don’t give hate a platform to propagate and don’t dismiss this type of behavior as someone else’s problem, address it and immediately report suspicious activity to authorities.”
According to the Complaint[[1]] unsealed today in White Plains federal court:
On December 28, 2019, THOMAS entered a Rabbi’s home in Monsey, New York, which is adjacent to the Rabbi’s synagogue, during observances related to the end of Shabbat and the seventh night of Hanukkah. THOMAS declared to dozens of assembled congregants, “no one is leaving,” and attacked the group with an 18-inch machete. At least five victims were hospitalized with serious injuries, including slash wounds, deep lacerations, a severed finger, and a skull fracture.
Following the attack, Thomas traveled in a car to New York City, and he was stopped in Harlem by members of the New York City Police Department. The responding officers observed what appeared to be blood on THOMAS’s hands and clothing, and smelled bleach coming from his vehicle. A search of THOMAS’s vehicle led to the seizure of, among other things, a machete that appeared to have traces of dried blood on it. Law enforcement subsequently searched THOMAS’s residence and cellphone pursuant to warrants. The residence contained handwritten journals with several pages of anti-Semitic references. THOMAS’s cellphone contained Internet searches dating back to at least November 2019 for terms such as “Zionist Temples” in Staten Island and New Jersey, as well as a webpage visit on the day of the attack to an article titled, “New York To Increase Police Presence After Anti-Semitic Attacks.”
* * *
THOMAS, 37, is charged with five counts of obstructing the free exercise of religion in an attempt to kill, in violation of Title 18, United States Code, Section 247. Each of the five counts carries a maximum prison term of life. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Berman praised the outstanding efforts of the FBI, the Rockland County District Attorney’s Office, the Ramapo Police Department, the Rockland County Sherriff’s Office, the New York State Police, the Clarkstown Police Department, and the New York City Police Department, as well as the U.S. Department of Justice’s Civil Rights Division.
This case is being handled by the Office’s Terrorism and International Narcotics Unit, its White Plains Division, and the Civil Rights Unit of the Office’s Civil Division. Assistant U.S. Attorneys Michael K. Krouse, Lindsey Keenan, and Lara Eshkenazi are in charge of the prosecution.
The charges in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations and every fact described should be treated as an allegation.