Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
20 December 2019
Brevard Man Sentenced to 9 Years for Possession of Child PornographyRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. has sentenced James John Edwards (37, Brevard County) to 9 years in federal prison for possession of child pornography. The court also ordered Edwards to pay $50,000 in restitution to the victims of the offense, and to forfeit the electronic devices that he had used to commit the offense. A federal jury found Edwards guilty on August 1, 2019.
According to evidence presented at trial, on February 7, 2019, during the execution of a search warrant, agents found Edwards in possession of more than 1,000 videos and over 300 images depicting the sexual exploitation and abuse of young children. Those videos and images captured the rape and sexual torture of children under the age of 12. The evidence also showed that Edwards had an extensive computer background, and in this case, used a file-sharing program to obtain the illicit images via a computer and hard drive in his bedroom. The computer was connected to a television that was mounted on the wall above Edwards’s dresser. Edwards used the hard drive to store videos and images of child pornography. His collection dated back to 2015.
This case was investigated by the Federal Bureau of Investigation and the Palm Bay Police Department. It was prosecuted by Assistant United States Attorneys Ilianys Rivera Miranda and Karen L. Gable.
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 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.
Boston Man Sentenced for Selling Crack Cocaine to Bedford VA Medical Center ResidentsRead the Press Release
BOSTON – A Boston man was sentenced yesterday in federal court in Boston for distributing crack cocaine.
Austin Wilkerson, 41, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to three years of probation. In 2018, Wilkerson pleaded guilty to three counts of distributing cocaine base, also known as crack cocaine, on the Veterans Affairs Medical Center campus in Bedford.
In January 2017, a cooperating witness reported to law enforcement that Wilkerson was selling crack cocaine to Michael Sexton, a resident at the Veterans Affairs Medical Center. On July 27, Aug. 10, and Sept. 5, 2017, Wilkerson provided crack cocaine to Sexton, who then sold it to the cooperating witness at the Veterans Affairs Medical Center in Bedford.
In October 2019, Sexton was sentenced to time served (approximately two months) and two years of supervised release.
United States Attorney Andrew E. Lelling; Sean J. Smith, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office; Brian Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; and F. Todd Foreman, Chief of Police of the U.S. Department of Veterans Affairs Police Service, Bedford VA Medical Center, made the announcement today. Assistant U.S. Attorney Nicholas Soivilien and Timothy Moran of Lelling's Criminal Division prosecuted the case.
Boston Man Indicted for Bank RobberyRead the Press Release
BOSTON – A Boston man was indicted yesterday by a federal grand jury in Worcester for the October 2019 robberies of the TD Bank in Worcester and the East Boston Savings Bank in Revere.
Samuel Jose Baptista, 27, was indicted on two counts of bank robbery. In November 2019, Baptista was charged by criminal complaint.
According to charging documents, on Oct. 20, 2019, Baptista entered a branch of TD Bank in Worcester and demanded $10,000 from the bank teller. On Oct. 26, Baptista entered a branch of the East Boston Savings Bank in Revere and demanded $20,000. In both instances, Baptista threatened to detonate a bomb he allegedly was carrying if the bank did not turn over money to him.
The charging statute provides for a sentence of up to 20 years, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Worcester Police Chief Steven M. Sargent; and Revere Police Chief James Guido made the announcement. Assistant U.S. Attorney Lucy Sun of Lelling’s Worcester Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Boston Man Charged with Distributing Fentanyl and Crack CocaineRead the Press Release
BOSTON – A Boston man was arrested yesterday and charged with distributing fentanyl and crack cocaine.
David A. Wood, 30, was charged with distribution and possession with intent to distribute controlled substances. Following an initial appearance in federal court in Boston, Wood was detained pending a detention hearing on set for Dec. 23,2019.
According to court documents, Wood distributed fentanyl in Boston on Nov. 26 and Dec. 3, 2019, and distributed crack cocaine in Boston on Dec. 10, 2019.
The charge of distributing or possessing with intent to distribute controlled substances provides for a sentence of up to 20 years in prison, three years to a lifetime of supervised release, and a fine of up to $1 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Bethany Attorney Pleads Guilty to Federal Tax ChargesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Kristina O’Connell, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that WILLIAM S. PALMIERI, 56, of Bethany, pleaded guilty yesterday before U.S. District Judge Stefan R. Underhill in Bridgeport to two counts of willful failure to pay income taxes.
According to court documents and statements made in court, Palmieri is an attorney with a practice specializing in civil rights law. Between 2006 and 2014, Palmieri reported to the Internal Revenue Service, but did not pay, all the income taxes he owed, even though he had the ability to make substantially greater tax payments during that time.
As of December 2017, Palmieri owed $227,709 in taxes, interest and penalties.
Judge Underhill scheduled sentencing for March 12, 2020, at which time Palmieri faces a maximum term of imprisonment of two years, a fine, and restitution to the IRS.
Palmieri is released on bond pending sentencing.
This matter has been investigated by the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Bergen County Man Charged with Using Social Media to Threaten to Kill Federal AgentsRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was arrested this morning after using his Twitter account to threaten to kill agents of Immigration and Customs Enforcement (ICE), U.S. Attorney Craig Carpenito announced.
Carlos Alejandro Tariche, 22, of Edgewater, New Jersey, was arrested by agents of U.S. Department of Homeland Security, Homeland Security Investigations (HSI), and charged by complaint with one count of interstate communications containing threats to injure. He is scheduled to appear this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
According to the documents filed in this case and statements made in court:
On Dec. 11, 2019, Tariche used one of his Twitter accounts to post threats to ICE agents: “We need to kill all ICE agents.” He also posted: “Why can’t mass shootings occur at @ICEgov buildings them mfs need to get smoked.” Tariche also used his Twitter account to compare his feelings to that of Elliot Rodger, the individual who carried out a mass shooting at Isla Vista, California, murdering six people and shooting 14 others. Tariche also posted on Twitter: “You might’ve heard I paint houses,” a phrase that refers to murdering people and that was recently popularized by the movie, “The Irishman,” which depicts a mafia hitman.
Law enforcement officers were able to link Tariche to his Twitter account through an investigation of his social media accounts and the locations from where he logged onto his Twitter accounts.
The charge of interstate communications containing threats carries a statutory maximum sentence of five years in prison and a $250,000 fine, or twice the gain or loss from the offense.
U.S. Attorney Carpenito credited special agents of HSI, under the direction of Special Agent in Charge Brian Michael in Newark, with the investigation leading to today’s charge.
The government is represented by Special Assistant U.S. Attorney Kendall Randolph of the U.S. Attorney’s Office’s Organized Crime and Gangs Unit in Newark.
The charge and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Austin-Based Nigerian National Sentenced to Federal Prison for Role in Furthering a Conspiracy to Commit Money LaunderingRead the Press Release
In Austin today, a federal judge sentenced a Nigerian National residing in Austin to 78 months in federal prison for laundering more than $1.7 Million in Business Email Compromise (BEC) scam proceeds stolen from multiple companies, announced U.S. Attorney John F. Bash; Special Agent in Charge Shane Folden, Homeland Security Investigations (HSI), San Antonio; and, Inspector in Charge Adrian Gonzalez, U.S. Postal Inspection Service (USPIS), Houston Division
In addition to the prison term, U.S. District Judge Robert Pitman ordered that 28-year-old Joseph Odibobhahemen pay $1,639,419.57 in restitution; pay a $1.5 million money judgment; and, be placed on supervised release for a period of three years after completing his prison term.
In a BEC scheme, scammers target businesses and individuals making wire transfer payments, often targeting employees with access to company finances. The scammers trick the employees into making wire transfer payments to bank accounts thought to belong to trusted partners—except the money ends up in accounts controlled by the fraudsters. Sometimes the scammers use computer intrusion techniques to alter legitimate payment request emails, changing the recipient bank accounts. Sometimes they send spoofed emails from email addresses similar to the real email accounts used by trusted partners.
On February 7, 2019, Odibobhahemen pleaded guilty to one count of conspiracy to commit money laundering. Odibobhahemen’s co-defendant in this indictment, Nosa Onaghise, pleaded guilty to one count of passport fraud on December 28, 2018. Onaghise, another Nigerian citizen residing in Austin, admitted to attempting to use a false, forged or counterfeit passport to open several bank accounts in the U.S. in April 2018. Onaghise faces up to ten years in federal prison. He remains in federal custody pending sentencing scheduled for 10:00am on February 19, 2020, before Judge Pitman.
Court records in this indictment (A18cr358), and the indictment also returned in Austin against four other coconspirators (A19cr78), show that between November 2016 and April 2019, over $10 million was allegedly sent by victims to accounts controlled by the conspirators, who were able to take in excess of $6 million before law enforcement or financial institutions stopped the fraudulent transfers. Odibobhahemen and the others acquired or controlled dozens of bank accounts opened in the U.S., including in Austin, utilizing fraudulent identification documents, including fraudulent foreign passports in fake names. Once the funds were fraudulently procured and deposited into these bogus accounts, the defendants worked quickly to withdraw or transfer the funds.
The four additional co-conspirators—Bameyi Omale, Chinonso Agbaji, Igho Calaba and Chibuzor Uba—have all pleaded guilty and await sentencing on January 30, 2020.
“This sentencing serves as a real warning to those who use deception to victimize our citizens while defrauding the financial system for personal gain,” said Shane Folden, special agent in charge for HSI San Antonio. “HSI is committed to pursuing thieves such as Mr. Odibobhahemen who brazenly enrich themselves through fraud. HSI will continue to utilize its broad investigative authorities to dismantle transnational criminal organizations who blatantly ignore the laws of this nation.”
Special agents with HSI and USPIS investigated this case. Assistant U.S. Attorneys Michael Galdo and Keith Henneke are prosecuting this case on behalf of the Government.
Arlee man sent back to prison for illegal possession of firearmRead the Press Release
MISSOULA—An Arlee man with a felony record was sentenced today to five years in prison and three years of supervised release after he admitted to illegally possessing a firearm, U.S. Attorney Kurt Alme said.
Gregory Scott Tolley, 59, pleaded guilty to felon in possession of a firearm in September.
U.S. District Judge Donald Molloy presided.
The prosecution said in court records that in December 2018, Tolley was arrested on a state court warrant for failure to appear. At the time, Tolley also was on state probation for felony theft. Officers searched the vehicle Tolley was driving and found a 9mm semi-automatic pistol and ammunition. In 1994, Tolley was convicted in federal District Court in Montana of being a felon in possession of a firearm and for possession of an unregistered firearm and sentenced to 13.5 years in prison. Tolley knew he could not possess firearms because he had signed firearm notification forms in 2007 and 2012, acknowledging that his felony convictions prohibited him from having firearms or ammunition.
Assistant U.S. Attorney Cyndee Peterson prosecuted the case, which was investigated by the FBI, Mineral County Sheriff’s Office, Montana Probation and Parole, the Montana Highway Patrol and the U.S. Marshals Service.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
XXX
19 December 2019
Worcester Man Sentenced for Child Pornography OffensesRead the Press Release
BOSTON – A Worcester man was sentenced today in federal court in Worcester for possession of child pornography.
Michael Chapman, 63, was sentenced by U.S. District Court Judge Timothy S. Hillman to 126 months in prison and seven years of supervised release. In September 2019, Chapman pleaded guilty to two counts of possession of child pornography.
On July 2 and 3, 2017, Chapman uploaded images depicting child pornography using his Skype account. He also possessed child pornography on Oct. 6, 2017, on his computer, which agents seized during the execution of a search warrant. Chapman is a registered Level 3 sex offender due to multiple prior convictions. In 2004, he was convicted of two counts of indecent assault and battery on a child under 14 and three counts of obscene material; in 1994, he was convicted of transporting in interstate commerce a visual depiction of a minor engaging in sexually explicit conduct; and, in 1984, he was convicted of rape of a child and four counts of lewd and lascivious acts.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Worcester Police Chief Steven M. Sargent made the announcement today. Assistant U.S. Attorney Michelle L. Dineen Jerrett of Lelling’s Worcester Branch Office prosecuted the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Wichita Man Sentenced in Theft of 75+ Cell PhonesRead the Press Release
WICHITA, KAN. - A Wichita man was sentenced today to 71 months in federal prison for a robbery in which more than 75 cell phones were stolen from a Sprint store, U.S. Attorney Stephen McAllister said.
Xavier Lopez, 26, Wichita, Kan., pleaded guilty to one count of robbery. In his plea, he admitted he served as a lookout while co-defendant Camarin McPherson, 26, Wichita, Kan., robbed a Sprint store at 530 S. West St. in Wichita. McPherson brandished a firearm and hog-tied a clerk with zip ties before taking 54 Apple iPhones and 24 Samsung Galaxy phones with a total estimated value of more than $60,000.
The robbers were arrested after a chase ended in a wreck at Kellogg and Meridian.
McPherson was sentenced last month to 162 months in federal prison. McAllister commended the Wichita Police Department, the FBI and Assistant U.S. Attorney Matt Treaster for their work on the case.
Wichita Man Pleads Guilty to Robbing BankRead the Press Release
WICHITA, KAN. - A Wichita man pleaded guilty today to robbing a bank, U.S. Attorney Stephen McAllister said.
Jeremy Vos, 21, Wichita, Kan., pleaded guilty to one count of bank robbery. In his plea, he admitted that on July 23, 2019, he robbed Intrust Bank at 5500 E. Harry. He gave the teller a handwritten note saying, “This is a robbery. No (dye) bags. I have a gun.” Police arrested Vos the same day as the robbery.
Wichita police reported Vos had made a false report to 911 shortly before the robbery.
Sentencing is set for March 6. He could face up to 20 years in federal prison and a fine up to $250,000.
McAllister commended the Wichita Police Department, the FBI and Assistant U.S. Jason Hart for their work on the case.
White River Man Sentenced for Assaulting a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that a White River, South Dakota, man convicted of Assaulting, Resisting, and Impeding a Federal Officer was sentenced on December 17, 2019, by U.S. District Judge Roberto A. Lange.
Tyler Standing Bear, a/k/a Ty Standing Bear, age 25, was sentenced to 18 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.
Standing Bear was indicted by a federal grand jury on May 14, 2019. He pled guilty on September 24, 2019.
The conviction stemmed from an incident that occurred in the Lower Swift Bear Community, near White River, on January 20, 2019. On that date, a Rosebud Sioux Tribe Law Enforcement Services Officer responded to a report of disturbance at a residence. The officer subsequently made contact with Standing Bear and informed him he was going to be placed under arrest on an outstanding warrant, at which point Standing Bear produced a knife. Standing Bear brandished the knife at the officer, ignored the officer’s commands to put the knife down and yelled at the officer to shoot him. Standing Bear then fled the residence on foot.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Standing Bear was immediately turned over to the custody of the U.S. Marshals Service.
West Mifflin Man Operated Marijuana Stash House in Squirrel Hill ApartmentRead the Press Release
PITTSBURGH, PA – A resident of West Mifflin, Pennsylvania, pleaded guilty in federal court to charges related to drug trafficking, United States Attorney Scott W. Brady announced today.
Wayne Barker, age 61, pleaded guilty to two counts before Senior United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that the Greater Pittsburgh Safe Streets Task Force conducted a long-term investigation of drug trafficking in the Western District of Pennsylvania. In April of 2019, investigators obtained authorization for the interception of wire and electronic communications over a telephone operated by another member of the conspiracy, which continued through May of 2019.
Based in part upon intercepted communications, on May 24, 2019, law enforcement established surveillance in the vicinity of an apartment on Covode Street in the Squirrel Hill neighborhood of Pittsburgh, which was identified by investigators as a large-scale marijuana stash house operated by Barker. While conducting surveillance, law enforcement officials observed a Dodge Ram operated by another member of the conspiracy pull into the driveway of the apartment where several individuals unloaded boxes into the apartment and then loaded two additional boxes into the Dodge Ram. Investigators executed federal search warrants on the vehicle and the apartment, and seized $469,475 from the Dodge Ram. Additionally, the Court was informed that law enforcement seized 404 pounds of marijuana and an additional $5,012 from the apartment as well as vacuum sealers, a money counter and other items indicative of large-scale drug-trafficking.
Judge Schwab scheduled sentencing for May 12, 2020 at 10:00 AM. The law provides for a maximum sentence, as to each count, of not less than five and not more than 40 years in prison, a fine of not more than $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Mr. Barker remains on bond pending sentencing.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Drug Enforcement Administration, Bureau of Alcohol Tobacco Firearms and Explosives, United States Marshals Fugitive Task Force, Allegheny County Sheriff’s Office, Allegheny County Police Department, Pennsylvania State Police, Pennsylvania Attorney General’s Office Bureau of Narcotics, and the Pittsburgh Bureau of Police. Other assisting agencies include the Monroeville Police Department, Penn Hills Police Department, Wilkinsburg Police Department, and Allegheny County Adult Probation.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Attorney's Office Collects over $780 Million in Civil and Criminal Actions in Fiscal Year 2019Read the Press Release
DENVER – U.S. Attorney Jason R. Dunn announced today that the District of Colorado collected $781,336,222 in criminal and civil actions in Fiscal Year 2019. Of this amount, $7,222,012 was collected in criminal actions and $774,114,209 was collected in civil actions.
Additionally, the District of Colorado worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $36,027,598 in cases pursued jointly by these offices. Of this amount, $36,496 was collected in criminal actions and $35,991,102 was collected in civil actions.
“The United States Attorney’s Office has Assistant U.S. Attorneys and collection specialists who have done an outstanding job of collecting money due to the federal government and to victims during the 2018 fiscal year,” said U.S. Attorney Jason Dunn. “This office will continue its focus on these important collection efforts.”
Included in the civil collections was a settlement with HSBC in which HSBC paid $765 million to settle claims related to its securitization and sale of residential mortgage-backed securities (RMBS) between 2005 and 2007. Federally-insured financial institutions and others suffered major losses from investing in RMBS issued and sold by HSBC. Under the settlement, HSBC paid $765 million as a civil penalty pursuant to the Financial Institutions Reform, Recovery and Enforcement Act.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Additionally, the U.S. Attorney’s office in Colorado, working with partner agencies and divisions, collected $7,058,761 in asset forfeiture actions in FY 2019. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
U.S. Attorney's Office Collects over $14.1 Million in Civil and Criminal Actions in Fiscal Year 2019, Doubling Collections from Fiscal Year 2018Read the Press Release
LAS VEGAS, Nev. – U.S. Attorney Nicholas A. Trutanich announced today that the District of Nevada collected $14,158,816.85 in criminal and civil actions in Fiscal Year 2019. Of this amount, $8,506,018.90 was collected in criminal actions and $5,652,797.95 was collected in civil actions. These amounts are approximately double the criminal and civil amounts that the District of Nevada collected in Fiscal Year 2018.
Additionally, the District of Nevada worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $11,775,021.59 in cases pursued jointly by these offices. Of this amount, $1,200 was collected in criminal actions and $11,773,821.59 was collected in civil actions.
“The U.S. Attorney’s Office for the District of Nevada is grateful for the extraordinary performance of the dedicated public servants in our Civil Division, particularly the Financial Litigation Unit and the Asset Forfeiture Unit,” said U.S. Attorney Trutanich. “Due to their efforts, our office is able to contribute significant funds for victim compensation, victim assistance, and law enforcement purposes.”
For example, in May, the District of Nevada recovered $1.76 million prior to sentencing as part of a joint criminal and civil case against pharmacy owner Nelson Mukuna. The matter arose out of allegations that Mukuna paid kickbacks to nurse practitioners, inducing them to prescribe medically unnecessary products to be filled at Mukuna’s pharmacy. In August, the District of Nevada also recovered $2.5 million as part of the settlement in the civil case of United States ex rel. Arik v. Nevada Heart & Vascular, Inc. That case was brought by a whistleblower under the False Claims Act and involved allegations that Nevada Heart & Vascular Center received kickbacks to order medically unnecessary genetics tests.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Further, the U.S. Attorney’s office in the District of Nevada, working with partner agencies and divisions, collected $1,431,518 in asset forfeiture actions in FY 2019. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
###
U.S. Attorney's Office Collects $4,754,430.93 in Civil and Criminal Actions in Fiscal Year 2019Read the Press Release
HAMMOND, IN – United States Attorney Thomas L. Kirsch II announced today that the Northern District of Indiana collected $4,754,430.93 in criminal and civil actions in Fiscal Year 2019. Of this amount, $2,135,723.55 was collected in criminal actions and $2,618,707.38 was collected in civil actions.
Additionally, the Northern District of Indiana worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $2,675,024.32 in civil actions pursued jointly by these offices.
“Our financial litigation unit is great at using the tools they have available to locate and collect assets in our criminal and civil actions,” said U.S. Attorney Kirsch. “For individuals who are part of our court cases, that intend to conceal assets, we will do everything we can to make sure your debt to the U.S. is paid.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Additionally, the U.S. Attorney’s office in Northern District of Indiana, working with partner agencies and divisions, collected $588,720 in asset forfeiture actions in FY 2019. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
###
U.S. Attorney Davis Announces New Deputy Criminal ChiefRead the Press Release
BOISE – Assistant United States Attorney (AUSA) Christopher S. Atwood is now the District of Idaho’s Deputy Criminal Chief, announced U.S. Attorney Bart M. Davis.
Mr. Atwood is a graduate of the University of Idaho College of Law, where he served on law review and was a dean’s list student. After graduating law school in 2004, he clerked for Fourth Judicial District Court Judge Michael McLaughlin. In September 2005, he joined the Ada County Prosecuting Attorney’s Office, where he handled a number of major felony cases involving violent crime and drugs. In July 2012, he became the fourth Gang Special AUSA to work for the U.S. Attorney’s Office for the District of Idaho. In September 2015, he took the oath of office to become an Assistant U.S. Attorney. He served as the District of Idaho’s Project Safe Neighborhoods (PSN) and Reentry and Prevention Coordinator. He has also been an active criminal litigator throughout his tenure with the office, and will continue to litigate cases in addition to filling the role of Deputy Criminal Chief.
“In light of the office’s growth over the past several years and increasing workload, I am pleased that I am able to have a Deputy Criminal Chief to assist our Criminal Chief,” said U.S. Attorney Davis. “Chris brings an exceptional skillset to the management team and I look forward to working alongside him.”
# # #
Two from Orange County Arrested on Federal Charges Stemming from Murder of Man Who Was Shot on Boat and Dumped into OceanRead the Press Release
SANTA ANA, California – Federal agents this morning arrested two Orange County residents on charges stemming from the slaying of a man who was shot in the head and dumped from a boat off the California coast.
The two defendants are named in federal criminal complaints filed late Wednesday and unsealed today that allege the victim was lured onto a boat in the Dana Point Harbor on October 14 with promises of an overnight fishing trip. The victim’s body was recovered from the Pacific Ocean several miles northwest of Oceanside on October 16. The San Diego County Medical Examiner’s Office determined that he was a homicide victim who drowned after being shot and suffering blunt force trauma.
The two defendants arrested this morning are:
- Hoang Xuan Le, also known as “Wayne,” 38, of Fountain Valley, an alleged drug trafficker, who is charged with first-degree murder; and
- Sheila Marie Ritze, 40, of San Juan Capistrano, a registered owner of the boat, who is charged with being an accessory after the fact.
Le and Ritze are expected to make their initial appearances this afternoon in United States District Court in Santa Ana.
“Le has confessed to a confidential human source that he took the victim out on the boat, confronted the victim about a debt owed, shot the victim, tied weights to the victim’s ankles, and sank the victim’s body in the ocean,” according to the affidavit in support of the criminal complaints.
The affidavit describes how Le told people, including the victim’s girlfriend, that he had decided at the last minute not to go on the fishing trip. But, nine days after the body was recovered, the confidential human source (CHS) contacted a member of the victim’s family to say Le had told a different story. During a meeting several days later that was recorded by investigators, the CHS reported that Le confessed to killing the victim because the victim owed Le $30,000 to $40,000. During a second meeting, the CHS expressed a willingness to work with law enforcement.
During a November 10 meeting at Le’s residence, the CHS, who was now working with law enforcement, purchased cocaine from Le, according to the affidavit. During this meeting, Le indicated a willingness to be a killer for hire. During subsequent meetings that were also recorded, Le sold more narcotics to the CHS, and Le again expressed a willingness to be hired as a hit man. Authorities found an AR-15-type rifle, a shotgun, and a crossbow at Le’s residence this morning.
Ritze is linked to the murder by information showing her phone was in the location of the harbor at the times the boat left and returned, and by surveillance tapes made at Dana Point Harbor showing three individuals – believed to be Ritze, Le and the victim – when the boat is launched, but showing only Ritze and Le when the boat returned hours later.
In addition to being one of two registered owners of the boat linked to the murder, Ritze allegedly surveyed surveillance cameras in the area around Dana Point Harbor soon after the murder and purchased a tracking device found after the murder on a vehicle belonging to the victim’s girlfriend, according to data retrieved from Ritze’s phone that is outlined in the affidavit.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
The first-degree murder charge against Le carries potential sentences of life without parole or the death penalty. The accessory after the fact charge against Ritze carries a statutory maximum sentence of fifteen years in federal prison.
This matter is being investigated by the FBI and the Coast Guard Investigative Service.
This case is being prosecuted by Assistant United States Attorney Greg Scally of the Santa Ana Branch Office.
Two Plead Guilty to Charges Related to Safe Streets Task Force Investigation into Drug Trafficking in Braddock areaRead the Press Release
PITTSBURGH, PA – Two more residents of Western Pennsylvania pleaded guilty in federal court to charges related to drug trafficking in connection with a large-scale investigation conducted by the Greater Pittsburgh Safe Streets Task Force, United States Attorney Scott W. Brady announced today.
Reginald Brown, 29, formerly of Glassport, PA, pleaded guilty to one count related to drug trafficking, before United States District Judge Arthur J. Schwab.
Gregory Luptak, 51, of North Huntingdon, PA, pleaded guilty to one count related to drug trafficking also before Judge Schwab.
In connection with the guilty pleas, the court was advised that the Greater Pittsburgh Safe Streets Task Force conducted a long-term investigation of drug trafficking occurring in and around the Braddock area. Reginald Brown, Gregory Luptak, and other individuals, were identified as members or associates of a neighborhood based street gang, self-titled "SCO", which illegally distributed controlled substances in the Greater Pittsburgh Region. In January of 2019, investigators obtained authorization to conduct a federal wire investigation, which continued through May of 2019.
As to Reginald Brown, the Court was informed that intercepted communications confirmed that Brown was conspiring with others to possess with intent to distribute and distribute controlled substances, namely cocaine base in the form commonly known as crack. Mr. Brown admitted, in conjunction with his guilty plea, that he is a member of "SCO." The court was further advised that on June 12, 2019, law enforcement executed a search warrant at his residence and located the following items from the kitchen cabinets indicative of drug-trafficking, including: several cell phones, a Ruger 9mm pistol with loaded magazine and chambered round, a digital scale, suspected crack cocaine, sandwich baggies and baking soda, as well as $5,490.00. The court accepted Mr. Brown’s guilty plea to conspiracy to distribute 28 grams or more of cocaine base, commonly known as crack, a Schedule II controlled substance, between August 2018 and May 2019.
As to Gregory Luptak, the Court was informed that intercepted communications confirmed that Luptak distributed large quantities of heroin. Mr. Luptak admitted, in conjunction with his guilty plea, that he was observed purchasing heroin at a stash house location on Seddon Avenue in Braddock, which he then distributed. The court accepted Luptak’s guilty plea to conspiracy to distribute 47 grams of heroin.
Judge Schwab scheduled sentencing for May 14, 2020, at 10:00 AM for Brown and May 18, 2020, at 10:00 AM for Luptak. For Brown, the law provides for a total sentence of not less than 5 years and not more than 40 years in prison, with a maximum fine of $5,000,000. For Luptak, the law provides for a total sentence of not more than 20 years in prison and a maximum fine of $1,000,000 at each count. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants. Williams was previously ordered detained by the court and will remain incarcerated pending sentencing. Luptak was released on bond pursuant to the court’s prior order and will remain out on bond pending sentencing.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Drug Enforcement Administration, Bureau of Alcohol Tobacco Firearms and Explosives, United States Marshals Fugitive Task Force, Allegheny County Sheriff’s Office, Allegheny County Police Department, Pennsylvania State Police, Pennsylvania Attorney General’s Office Bureau of Narcotics, and the Pittsburgh Bureau of Police. Other assisting agencies include the Monroeville Police Department, Penn Hills Police Department, Wilkinsburg Police Department, and Allegheny County Adult Probation.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Two North Mississippi Men Sentenced for Production of Child PornographyRead the Press Release
OXFORD – In two separate cases, an Alcorn County man and a Prentiss County man were each sentenced to approximately 20 years in federal prison for production of child pornography.
Donald H. Hobbs, 39, of Alcorn County pled guilty to one count of production of child pornography on Aug. 21, 2019. Hobbs was sentenced to 240 months in federal prison followed by 15 years of supervised release by District Judge Debra M. Brown in United States District Court for the Northern District of Mississippi.
Jordan Bridges, 28, of Prentiss County pled guilty on July 24, 2019 to one count of production of child pornography. Bridges was sentenced to 235 months in federal prison and a lifetime of supervised release by Chief Judge Sharion Aycock in United States District Court for the Northern District of Mississippi.
On Sept. 20, 2018, the Alcorn County Sheriff's Department received a Cybertip report of possible online activity involving a 14-year-old being enticed to produce sexually explicit images. During an initial investigation by the Alcorn County Sheriff's Department, it was determined that Hobbs had been enticing a minor for the purpose of producing child pornography. Upon determining that there was evidence of online criminal activity, a request was made that the FBI Jackson’s Child Exploitation and Human Trafficking Task Force assist with the investigation.
On Nov. 3, 2018, the Prentiss County Sheriff's Department received a report of possible child molestation and child pornography. During the initial investigation it was determined that Bridges had been sexually assaulting and photographing a minor for the purpose of producing sexually explicit images of a child. The Prentiss County Sheriff's Department has an officer assigned full time to the FBI Jackson’s Child Exploitation and Human Trafficking Task Force, and he was contacted to assist with the investigation.
These investigations were worked jointly by the Alcorn County Sheriff’s Department, Prentiss County Sheriff’s Department and the FBI Jackson’s Child Exploitation and Human Trafficking Task Force, which is made up of special agents from the FBI and task force officers from the Mississippi Attorney General’s Office, Prentiss County Sheriff’s Department, Hinds County Sheriff’s Department and Southaven Police Department. The cases were prosecuted by AUSA Paul Roberts.
Two Men Indicted for Trafficking Heroin and Fentanyl in San Joaquin CountyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a seven-count indictment today against Frank Jonathan Guzman, 27, and Jose Cruz Ivan Aispuro, 34, both of Stockton, charging them with distributing heroin and fentanyl, possessing heroin and fentanyl for distribution, and conspiracy to do the same, U.S. Attorney McGregor W. Scott announced.
According to court documents, between November 2018 and November 2019, Guzman met with an undercover agent four times. During three of the meetings, he sold the agent heroin, and during the fourth meeting, Guzman sold the agent approximately 500 pills containing fentanyl. Surveillance units saw Guzman meeting with Aispuro before and/or after each transaction. In all, law enforcement bought over a pound of heroin and 500 fentanyl pills from Guzman. When agents searched Guzman’s and Aispuro’s homes on Dec. 11, they found over 9.7 pounds of heroin and approximately 10,000 fentanyl pills in Guzman’s home, and another 10.9 pounds of heroin in Aispuro’s home.
This case is the product of an investigation by the U.S. Drug Enforcement Administration.
If convicted of the most significant charges, each defendant faces a mandatory minimum penalty of 10 years in prison, and a maximum penalty of life in prison and a $10 million fine. Any sentence 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 several variables. These charges are only allegations; the defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Two Eagle Butte Men Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that two Eagle Butte, South Dakota, men convicted of Possession with Intent to Distribute a Controlled Substance were sentenced on December 16, 2019, by U.S. District Judge Roberto A. Lange.
Terry Dillabaugh, age 70, was sentenced to 44 months in federal prison, followed by 3 years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Frederick Dillabaugh, age 57, was sentenced to 36 months in federal prison, followed by 3 years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Terry and Frederick Dillabaugh were indicted by a federal grand jury on May 15, 2018. They each pled guilty on September 24, 2019.
The convictions stemmed from an incident that occurred on February 13, 2018, where law enforcement received a call on the whereabouts of Terry who had an outstanding tribal warrant. The Cheyenne River Sioux Tribal Law Enforcement Services responded and found Terry and Frederick in possession of 66.83 grams of methamphetamine, which they tried to conceal from law enforcement.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Both defendants were immediately turned over to the custody of the U.S. Marshals Service.
Two Anchorage Men Charged for their Roles in the December 2019 Armed Robbery of Wells Fargo BankRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that two Anchorage men have been charged for their roles in the December 2019 armed robbery of a Wells Fargo Bank, N.A., branch located at 5740 Debarr Road in Anchorage.
Totoe Opeti Sakaria, Jr., 22, of Anchorage, was named in the indictment charging him with bank robbery, possession of a firearm in furtherance of a crime of violence, and for being a felon in possession of a firearm. His co-defendant, Brandon David McDonald, 23, of Anchorage, has been charged with accessory after the fact to bank robbery.
According to documents filed in the case, on Dec. 4, 2019, two masked men entered the bank and ordered the security guard and bank manager to get on the ground. One of the men approached a teller and demanded money, obtaining $2,624. The other man held a shotgun and demanded that everyone get, and stay, on the ground. Sakaria and McDonald were identified as suspects through still photos from surveillance footage that were released to the public. Two days later, on Dec. 6, 2019, FBI special agents recovered the shotgun from the crawlspace of a residence associated with McDonald.
If the public has any further information regarding this investigation, please contact Anchorage FBI at (907) 276-4441.
If convicted, Sakaria faces a maximum sentence of up to 25 years in federal prison, for the most serious charges alleged. McDonald faces a maximum penalty of up to 12.5 years in federal prison for the charge alleged. Under the Federal Sentencing Guidelines, any sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendants.
The Federal Bureau of Investigation (FBI) and Anchorage Police Department (APD) conducted the investigation leading to the charges in this case. This case is being prosecuted by Assistant U.S. Attorney Allison O’Leary.
The charges in the indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Troy Man Arraigned on Wire Fraud and Embezzlement ChargesRead the Press Release
ALBANY, NEW YORK – John R. Paeglow III, age 63, of Troy, New York, was arraigned today on 10 counts of wire fraud, and one count of embezzling funds from an employee benefit plan.
The announcement was made by United States Attorney Grant C. Jaquith and Michael C. Mikulka, Special Agent in Charge, New York Region, United States Department of Labor, Office of Inspector General (DOL-OIG).
Paeglow was arraigned today in Albany before United States Magistrate Judge Christian F. Hummel, and released on conditions pending trial before Senior United States District Judge Frederick J. Scullin, Jr.
According to the indictment, Paeglow fraudulently solicited and received over $400,000 on behalf of his now-closed Castleton, New York-based book printing business Integrated Book Technology, Inc./Hamilton Printing (“IBT/Hamilton”), by orchestrating the submission of fraudulent invoices and forged shipping documents to a New Jersey-based commercial finance company. Paeglow obtained funding based on his false promises that he expected payment for the sales of books that, in fact, had not been sold or shipped.
Paeglow is also charged with embezzling employee contributions to his company’s health plan.
The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
The charges filed against Paeglow carry a maximum sentence of 20 years in prison, a fine of up to the greater of $250,000 or twice the pecuniary gain to the defendant or the loss to any victim, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being jointly investigated by the U.S. DOL-OIG and the New York State Police Financial Crimes Unit, and is being prosecuted by Assistant U.S. Attorney Emmet J. O’Hanlon.
Trial Jury Finds New Orleans Man Guilty of Being a Felon in Possession of FirearmsRead the Press Release
NEW ORLEANS - U.S. Attorney Peter G. Strasser announced that on December 17, 2019, a federal jury returned a guilty verdict against DAMIEN JUSTIN, age 42, relating to being a prohibited person in possession of two (2) firearms.
According to the evidence presented at trial, on January 10, 2019, the Violent Crime Task Force for the Federal Bureau of Investigation executed a search warrant at 11416 North Easterlyn Circle, New Orleans, Louisiana. Inside this residence, members of the Task Force located a loaded Glock Model 27, .40 caliber semi-automatic pistol and a loaded Smith & Wesson Model Lady Smith, .38 caliber revolver in a nightstand next to JUSTIN’s bed. JUSTIN later admitted that he used the Glock and the Smith & Wesson revolver in the nightstand for his protection.
At the conclusion of a two-day trial, the jury found JUSTIN guilty of the sole count of the Superseding Indictment. JUSTIN faces up to a maximum of ten (10) years imprisonment. Sentencing in this matter is scheduled for April 7, 2020.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Strasser praised the work of the FBI New Orleans Violent Crime Task Force which led this investigation.
Assistant United States Attorneys Duane A. Evans and Andre Jones are in charge of the prosecution.
* * *
Three People from Rapid City Sentenced for Conspiracy to Distribute a Controlled SubstanceRead the Press Release
United States Attorney Ron Parsons announced that two Rapid City, South Dakota, men and a Rapid City, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance were sentenced by U.S. District Judge Karen E. Schreier.
Joshua Kudlock, age 32, was sentenced to 120 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100. Kudlock was sentenced on December 16, 2019.
David Brandon Pauly, age 31, was sentenced to 120 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100. Pauly was sentenced on October 9, 2019.
Serena Renea Rodriguez, age 33, was sentenced to 78 months in federal prison, followed by 4 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100. Rodriguez was sentenced on October 21, 2019.
Kudlock, Pauly, and Rodriguez were indicted by a federal grand jury on May 8, 2019. Kudlock pled guilty on September 23, 2019, Pauly pled guilty on July 16, 2019, and Rodriguez pled guilty on July 23, 2019.
The conviction stemmed from incidents beginning on an unknown date and continuing until approximately February 5, 2019, when Kudlock, along Pauly and Rodriguez came to an understanding to distribute 500 grams or more of a mixture or substance containing methamphetamine in the District of South Dakota.
At the time they joined in the agreement to distribute methamphetamine, they knew the purpose of the agreement or understanding.
On January 3, 2019, a vehicle they were all riding in for the purpose of making a drug run was stopped in Sioux Falls, South Dakota, and searched by law enforcement. Inside the vehicle, officers located approximately five pounds of methamphetamine.
This case was investigated by the Drug Enforcement Administration and the Sioux Falls Area Drug Task Force. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Kudlock, Pauly, and Rodriguez were immediately turned over to the custody of the U.S. Marshals Service.
Three Men Extradited for Overseeing Call Centers that Threatened and Defrauded Spanish-Speaking U.S. ConsumersRead the Press Release
Three Peruvian men were extradited today to the United States, where they stand accused of operating a large fraud and extortion scheme, the Department of Justice and U.S. Postal Inspection Service announced.
Johnny Enso Hidalgo Marchan, 40, of Lima, Peru; Francesco Flabio Guerra Perez, 24, of Lima, Peru; and Rodolfo Hermoza Vega, 45, of Cajamarca, Peru, will face federal charges in Miami, Florida. The three men were arrested on July 28, 2016, by Peruvian authorities based on a U.S. indictment. All three have remained incarcerated in Peru since that time.
“The Department of Justice’s Consumer Protection Branch will pursue and prosecute transnational criminals who defraud U.S. consumers, wherever they are,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “Those who target and threaten U.S. consumers by phone will not escape justice by placing their calls from abroad. I thank the Republic of Peru for extraditing these individuals to face charges here in the United States.”
“Individuals who defraud American consumers will be brought to justice, no matter where they are located,” said U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida. “Protecting the elderly and vulnerable members of our community from schemes, such as this one, is a top priority of this Office and the Department of Justice.”
“The U.S. Postal Inspection Service will not allow overseas criminal enterprises to illegally enrich themselves by using the mail to defraud consumers in the United States,” said Miami Division Inspector in Charge, Antonio J. Gomez. “With the continued cooperation of foreign governments these criminals will be aggressively pursued and brought to justice.”
Hidalgo, Guerra, and Hermoza allegedly managed and operated Peruvian call centers called Everglades, which were based in Lima and Cajamarca, Peru, and which worked in partnership with Angeluz Florida Corporation in Miami. According to the indictment, Hidalgo, Guerra, and Hermoza, and their employees in Peru used Internet-based telephone calls to lie to and threaten Spanish-speaking victims in the United States. The callers falsely accused the victims of having failed to accept delivery of certain products and claimed that the victims owed thousands of dollars in fines and that court proceedings would be brought against them. In reality, the victims — many of whom were elderly — had never ordered these products and nothing had been delivered.
The indictment alleges that the defendants and their call center employees claimed that the consumers could resolve the supposed debts and fines if they immediately paid a “settlement fee.” Consumers who contested these settlement fees were told that failure to pay could lead to harmed credit, arrest, deportation, or seizure of property.
A 37-count federal indictment was filed against the defendants in the U.S. District Court for the Southern District of Florida in June 2015 and was unsealed upon the defendants’ extradition to the United States. Hidalgo, Guerra, and Hermoza were charged with conspiracy, mail fraud, and wire fraud. Hidalgo and Guerra also face attempted extortion charges.
An indictment merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two individuals previously were brought to justice in connection with this scheme. In 2014, charges were brought against Angeluz and Everglades owner-operators, Maria Luzula, of Miami and Juan Alejandro Rodriguez Cuya, of Lima, Peru. Luzula pleaded guilty to all counts against her midway through trial and was sentenced to serve 165 months in prison. Rodriguez Cuya was convicted following a two-week trial. U.S. District Court Judge Patricia A. Seitz sentenced Rodriguez Cuya to serve 210 months in prison.
The case is being prosecuted by Trial Attorney Phil Toomajian of the Department of Justice’s Consumer Protection Branch. The U.S. Postal Inspection Service investigated the case. The Criminal Division’s Office of International Affairs, the U.S. Attorney’s Office of the Southern District of Florida, the Diplomatic Security Service, and the Peruvian National Police provided critical assistance.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past March the Department announced the largest elder fraud enforcement action in American history, charging more than 260 defendants in a nationwide elder fraud sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
More information about the Department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at https://www.ovc.gov.
Temple Man Sentenced to Federal Prison for Sex Trafficking Two MinorsRead the Press Release
In Waco today, a federal judge sentenced 26-year-old Riheem Rexdual Robinson (aka “Phat”) to 260 months in federal prison for sex trafficking two minors, announced U.S. Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs, San Antonio Division, and Interim Temple Police Chief Jim Tobin.
In addition to the prison term, U.S. District Judge Alan Albright ordered that Robinson pay a $2,000 fine and be placed on supervised release for a period of ten years after completing his prison term.
On August 6, 2019, Robinson pleaded guilty to two counts of sex trafficking of children. By pleading guilty, Robinson admitted that in April 2012, he recruited, enticed, harbored and transported a minor and caused that minor to engage in a commercial sex act for which Robinson profited financially. Robinson also admitted to committing the same acts with a second minor in October 2016.
“Our children are our nation’s most precious resource,” said FBI San Antonio Division Special Agent in Charge Christopher Combs. “Those who would recruit and exploit them for the purpose of underage prostitution will have to answer for their despicable crimes, and that’s the strong message that was sent in today’s sentencing.”
The FBI and the Temple Police Department investigated this case. Assistant U.S. Attorneys Mary Kucera and Greg Gloff prosecuted this case on behalf of the government.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Stockton Man Sentenced to over 7 Years in Prison for Firearms OffensesRead the Press Release
SACRAMENTO, Calif. — Marquez Jeter, 42, of Stockton, was sentenced today to seven years and eight months in prison for being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, on March 13, Jeter sold a Glock pistol to a confidential informant in exchange for $1,200. On April 10, 2019, Jeter offered the confidential informant access to a new supply of firearms. The next day, Jeter sold him 15 guns for $16,500. Jeter is a previously convicted felon and cannot lawfully possess firearms.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Michael W. Redding prosecuted the case.
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.
Stamford Man Sentenced to 9 Years in Federal Prison for Surgical Glove Investment SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that THOMAS J. CONNERTON, 67, of Stamford, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 108 months of imprisonment, followed by three years of supervised release, for operating an investment scheme that defrauded more than 70 individuals, including several women he met on a dating website, of more than $2 million.
According to the evidence presented during his trial, Connerton was the founder, president, and CEO of Safety Technologies, LLC (“Safety Tech”), a Connecticut company that had its principal place of business at various times in Simsbury, Madison, Westport and Stamford. Safety Tech was founded in 2006, purportedly for the purpose of developing and commercializing what was represented to be a highly durable puncture and cut resistant material that was to be used in the surgical glove market and other related markets. Safety Tech had not obtained any patents from the U.S. Patent and Trademark Office, and Connerton did not register Safety Tech’s securities with the U.S. Securities and Exchange Commission (“SEC”).
Beginning in approximately June 2009, Connerton induced victim-investors to provide him funds and to purchase Safety Tech securities by falsely representing that the valuation of Safety Tech was realistically in the tens or hundreds of millions of dollars, that a lucrative deal to sell or license his glove technology was imminent, and that he would use their funds for research and development, product testing, and to bring the product to market. Connerton offered his investors small amounts of equity in Safety Tech through “Subscription Agreements” or investments contracts through which he sold what he described as “Units.”
Several of the victim-investors were women who were drawn into the scheme after Connerton met them on a popular dating website.
Connerton made numerous other false representations to victim-investors, including stating in September 2015, “I will go on the record to state that there is not a single investor that will lose one dollar invested in Safety Technologies.”
Even though Connerton represented to victim-investors and potential victim-investors that the funds they invested would be used to fund research and development, for product testing, for business expenses and for legal fees, he used invested funds to pay personal expenses including, on two separate occasions, to purchase two diamond engagement rings from Tiffany & Co. Connerton also used funds to repay loans to an earlier investor.
Through this scheme, Connerton defrauded more than 70 victim-investors of more than $2.2 million.
The investigation also revealed that Connerton engaged in monetary transactions in an attempt to conceal from the FBI and the SEC the nature and source of funds received by Safety Tech from the sale of Safety Tech securities. Connerton negotiated checks and purchased bank checks in order to move the fraudulent proceeds from one account to another.
The investigation further revealed that Connerton willfully failed to pay $293,033 in federal income taxes between 2003 and 2015.
On September 17, 2018, a jury found Connerton guilty of 12 counts of wire fraud, one count of mail fraud, 16 counts of securities fraud, four counts of money laundering and one count of tax evasion.
The government is seeking full restitution for the victim-investors and forfeiture of the two engagement rings that Connerton purchased with proceeds of the fraud scheme. Connerton also owes more than $500,000 in back taxes, interest and penalties. Restitution will be determined after additional court proceedings.
Connerton has been detained since his arrest on March 9, 2017.
This matter was investigated by the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigation Division.
U.S. Attorney Durham also acknowledged the important assistance of the Securities and Exchange Commission.
The case is being prosecuted by Assistant U.S. Attorneys Michael S. McGarry and Lauren C. Clark.
Springfield Woman Sentenced for Theft of Government FundsRead the Press Release
United States Attorney Ron Parsons announced that a Springfield, South Dakota, woman convicted of Theft of Government Funds was sentenced on December 16, 2019, by U.S. District Judge Karen E. Schreier.
Shelly Linn Jones-Hegge, age 44, was sentenced to 5 years of probation, restitution in the amount of $27,484.43 to the Social Security Administration, $21,210.18 to South Dakota Medicaid, and $6,060.00 to South Dakota SNAP, for a total of $54,754.61, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Jones-Hegge was indicted by a federal grand jury on December 4, 2018. She pled guilty on September 26, 2019.
The conviction stemmed from incidents between December 3, 2013, and July 1, 2017, when Jones-Hegge willfully and knowingly embezzled, stole and purloined money from departments or agencies of the United States, namely, Title XVI program benefits payments made to her stepdaughter, which are administered by the U.S. Social Security Administration.
In approximately December 2013, Jones-Hegge applied for Title XVI supplemental security income program benefits payments (SSI) for her stepdaughter. In the application, she stated that she lived with three minor children: her own two children and her stepdaughter. Jones-Hegge did not disclose that her husband—the biological father of her stepdaughter—was living in the same residence with them. Jones-Hegge was well-aware that her husband lived with them and was earning money from his employment, and that his earnings would factor into whether her stepdaughter was eligible to receive SSI benefits.
In March 2014, her stepdaughter was awarded SSI, and Jones-Hegge was appointed to be her representative payee. She began receiving benefits payments on behalf of her stepdaughter. In multiple reviews with the Social Security Administration and the South Dakota Department of Social Services, she repeatedly concealed that her husband was living in the same residence as her and her stepdaughter in order to continue receiving benefits to which she would not have otherwise been entitled. The value of the benefits received by the Defendant exceeded $1,000.
This case was investigated by the Social Security Administration, Cooperative Disability Investigation Unit. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
Spearfish Man Sentenced on Conspiracy ChargeRead the Press Release
United States Attorney Ron Parsons announced that a Spearfish, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Jacob Papka, age 25, was sentenced on December 17, 2019, to 5 years in federal prison, followed by 4 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
The conviction stemmed from Papka obtaining heroin and distributing it to others between February 2017 and February 2019 near Spearfish.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Spearfish Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Papka was immediately turned over to the custody of the U.S. Marshals Service.
South Windsor Couple Charged with Defrauding Immigrant Clients, USCISRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that a federal grand jury in New Haven has returned an indictment yesterday charging BABAR KHAN, 41, and KHATIJA KHAN, 38, both of South Windsor, with offenses related to scheme through which individuals seeking immigration services were defrauded.
The Khans were arrested today. They appeared before U.S. Magistrate Judge Robert A. Richardson and were released on $50,000 bonds.
As alleged in the indictment, Babar and Khatija Khan, who are married, operated JLLAS CORP. and EIMAAN LLC, which were created to provide services to clients involved in proceedings with U.S. Citizenship and Immigration Services (“USCIS”). Between approximately May 2015 and January 2018, the Khans recruited clients who sought some form of immigration status, relief or benefit. Many of these clients are aliens residing in the U.S. without legal status and had limited education, a limited ability to understand English, and little to no knowledge of the documents that the Khans were filing with USCIS on their behalf.
The indictment alleges that Khatija Khan represented herself as an attorney with a background in immigration matters, even though she was not an attorney. The Khans prepared petitions and applications for their clients that contained information that they knew to be false. They also fabricated false documents to support their clients’ applications with USCIS without their clients’ knowledge. They then mailed, or caused to be mailed, these fraudulent applications and documents to USCIS, where they were received and made part of the official Alien file of each respective client.
It is alleged that many of the Khans’ clients received no relief from USCIS despite paying the Khans significant amounts of money.
The indictment charges Babar Kahn with one count of conspiracy to commit mail fraud, two counts of mail fraud and one count of filing a false tax return. Khatija Khan is charged with one count of conspiracy to commit mail fraud and one count of mail fraud. The conspiracy and fraud charges carry a maximum term of imprisonment of 20 years, and the tax charge carries a maximum term of imprisonment of three years.
U.S. Attorney Durham stressed that an indictment is only a charge and is not evidence of guilt. Charges are only allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), and the Internal Revenue Service – Criminal Investigation Division, with assistance from U.S. Citizenship and Immigration Services. This case is being prosecuted by Assistant U.S. Attorney Hal Chen.
Individuals who believe they have been victimized by this scheme contact Ines Cenatiempo, Victim-Witness Coordinator of the U.S. Attorney’s Office, at [email protected] or by phone at 203-821-3757.
Sioux Falls Man Indicted for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Cletus Gerald Williams, III, a/k/a C.J. Williams, age 23, was indicted on December 10, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on December 13, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Williams was convicted of Sexual Abuse of a Minor in April 2017. As a result of this conviction, he is required to register as a sex offender. It is alleged that between September 23, 2019, and October 27, 2019, Williams, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, failed to properly register as a sex offender and update his registration.
The charge is merely an accusation and Williams is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Williams was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Sioux Falls Man Charged with Theft of Government Funds, False Statement, and Concealment of Information from SSI ProgramRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Theft of Government Funds, False Statement, and Concealment of Information from SSI Program.
Robert Anthony Brannon, age 29, was indicted on December 3, 2019. He appeared before U.S. Magistrate Judge Veronica L. Duffy on December 17, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and up to $300 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between October 2015 and February 2019, Brannon, willfully and knowingly embezzled, stole, and purloined money from Title XVI program benefits payments made to himself and his wife. Title XVI is administered by the Social Security Administration.
The Indictment also alleges that on or about November 1, 2018, Brannon knowingly made false statements and representations in a Social Security Administration non-medical review - that is he reported he was not working and earning wages.
Finally, between October 2015 and February 2019, Brannon falsely reported that he was not working and continued to intentionally conceal and fail to disclose his wages, in order to continue to receive and spend SSI benefits payments made by the Social Security Administration to him and his wife.
The charges are merely accusations and Brannon is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Social Security Administration, Cooperative Disability Investigation Unit. Assistant U.S. Attorney Ann M. Hoffman is prosecuting the case.
Brannon was released on bond pending trial. A trial date has not been set.
Shreveport Man Indicted for Homicide of U.S. Postal Service Employee and Federal Firearms OffensesRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced that a federal grand jury in Shreveport returned a three-count indictment on December 18, 2019, charging Michael Jarred Gentry, 32, of Shreveport, with second degree murder, felon in possession of a firearm, and discharging a firearm during and in relation to a crime of violence, resulting in death. Local authorities arrested Gentry on June 22, 2019, in connection with the death of Antonio Williams, a U.S. Postal Service Letter Carrier. Gentry has been in custody since his arrest.
According to the indictment, Gentry shot and killed Antonio Williams on the morning of June 22, 2019, while Mr. Williams was working his mail delivery route on Dudley Drive in Shreveport. The indictment further charges that Gentry was a felon at the time he possessed the Romarm/Cugir WASR-10 and ammunition used in furtherance of the second degree murder charge. Gentry is a convicted felon and under federal law, it is illegal for him to possess a firearm or ammunition.
Michael Gentry is scheduled to be arraigned on January 9, 2020, before U.S. Magistrate Judge Mark L. Hornsby. If convicted, Michael Jarred Gentry faces up to life in prison for the second degree murder charge, 10 years in prison for being a felon in possession of a firearm, and 10 years in prison for discharging a firearm in furtherance of a crime of violence.
The U.S. Postal Inspection Service, Shreveport Police Department, and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated the case. U.S. Attorney David C. Joseph and Assistant U.S. Attorney Brandon B. Brown are prosecuting the case. The Caddo Parish District Attorney’s Office also has pending homicide charges against Gentry and is working collaboratively with the U.S. Attorney’s Office in the prosecution of this matter.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
# # #
Shelbyville Man Sentenced to 72 Months for Distributing Child PornographyRead the Press Release
FRANKFORT, Ky. – A Shelbyville, Kentucky, man, Elder Rene Carrillo-Cruz, 28, was sentenced to 72 months in federal prison on Thursday, by United States District Judge Gregory F. Van Tatenhove, for distributing child pornography.
Carrillo-Cruz previously admitted that in March 2018, he knowingly distributed at least one video containing child pornography over the Internet. The investigation was the result of a Cyber Tipline report from the National Center for Missing and Exploited Children (NCMEC). As a result of the Cyber Tip, the Kentucky State Police conducted an investigation, which led them to obtain a search warrant that revealed evidence of the distribution of child pornography by Carrillo-Cruz.
Under federal law, Carrillo-Cruz must serve a minimum of 85 percent of his prison sentence. He will be under the supervision of the United States Probation Office for 20 years after being released.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Steve Igyarto, Special Agent in Charge, Department of Homeland Security- Homeland Security Investigations (DHS-HSI); and Rick Sanders, KSP Commissioner, jointly announced the sentence.
The investigation was conducted by the DHS-HSI and KSP. The United States was represented by Assistant United States Attorney David Marye.
– END –
San Leandro Man Charged with Possessing Methamphetamine for DistributionRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment today against Jose Victor Rodriguez, 36, of San Leandro, charging him with possession with intent to distribute at least 50 grams of methamphetamine, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Oct. 25, Rodriguez led Manteca police officers on a high‑speed car chase during which he reached speeds of 110 miles per hour and covered 11.5 miles in 7 minutes. He then ran from his vehicle and was seen carrying a black bag that was later recovered and found to contain approximately 84 grams of methamphetamine in multiple separate packages.
This case is the product of an investigation by the FBI, Manteca Police Department, and the San Joaquin County Sheriff’s Office. Assistant U.S. Attorney David Spencer is prosecuting the case.
If convicted, Rodriguez faces a maximum statutory penalty of 40 years in prison and a mandatory minimum of five years in prison, and a $5 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the 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.
Saint Louis Man Indicted for 2019 Attempted Armed Carjacking that Resulted in Victim's DeathRead the Press Release
St. Louis, MO – A federal indictment was returned today against Jalen Exavier Simms, 24, of Saint Louis, for his role in the June 3, 2019 death of victim Jabari Clark. The indictment specifically charges Simms with one count of the attempted carjacking of victim Clark’s 2012 Dodge Ram truck and one count of discharging a firearm in furtherance of that carjacking that resulted in victim Clark’s death.
If convicted, the both charges carry a maximum penalty of life imprisonment or the imposition of death. As is always the case, charges set forth in the indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
“Gun violence and carjackings remain top priorities of this office. We continue to work with our federal, state, and local law enforcement partners to prevent these senseless acts of violence but, when they occur, we are committed to holding each and every perpetrator accountable to the fullest extent of the law,” said United States Attorney Jeff Jensen following the indictment’s return.
This case is being investigated by the St. Louis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Romanian Nationals Plead Guilty in Federal Court to Illegal Possession of Device Making Equipment and Possession of Fifteen or More Counterfeit or Unauthorized Access DevicesRead the Press Release
United States Attorney Brandon J. Fremin announced that Cristian Constantin, age 20, and Mihaela Stancu, age 25, both of Romania, pled guilty before U.S. Chief Judge Shelly D. Dick. Constantin pled guilty to illegal possession of device making equipment and possession of fifteen or more counterfeit or unauthorized access devices. M. Stancu pled guilty to possession of fifteen or more counterfeit or unauthorized access devices. Earlier, on October 30, 2019, Petre Stancu and Antonio Serdaru pled guilty to possession of fifteen or more counterfeit access devices. As a result of their guilty pleas, these defendants face significant terms of imprisonment, fines, and a period of supervised release
On March 9, 2019, a bank fraud investigator with Capital One Bank began following the progress of a group of Romanians driving about Shreveport, Louisiana, using fraudulent credit cards to withdraw sums of cash from various Capital One Bank ATMs. The investigator then followed their progress from Shreveport to Baton Rouge, Louisiana, where the group continued to use those fraudulent cards to withdraw cash at Bank One locations in Baton Rouge.
Upon receiving this information from the investigator, Secret Service immediately passed it on to state and local law enforcement agencies, urging those agencies to rush personnel to those ATM locations to find and apprehend those suspects.
The investigator supplied information surrounding the vehicle makes, license plate numbers, and photographs of individuals in this group. Those photographs included one of a white Honda Accord, a black Mercedes, and a GMC Terrain. The investigator shared video stills depicting P. Stancu, Serdaru, and Constantin making fraudulent withdrawals at various Capitol One Bank ATM locations, as well as M. Stancu, marking those cards used by her brother, P. Stancu, to make those fraudulent withdrawals.
Secret Service received information of fraudulent activity occurring at the Bank One ATM at or near 6581 Siegen Lane/Industriplex. A deputy rushed to that location and found Constantin and a pregnant juvenile in a GMC Terrain. Law enforcement agents found over one hundred counterfeit credit cards, an encoder device, false identification documents for Constantin, and approximately $5,200.
Constantin later confessed that he used the credit cards to make fraudulent withdrawals from various Bank One ATM locations.
On March 11, 2019, Livingston Parish Sheriff’s Office deputies found and stopped the black Mercedes, driven by P. Stancu, and occupied by his sister, M. Stancu, Serdaru, and a juvenile in Walker, Louisiana. During this encounter, the juvenile female falsely claimed to be pregnant and requested deputies to allow her to go to the restroom. After deputies told the juvenile female to wait for an ambulance, she tried to hide a boost bag she was carrying beneath the Mercedes.
Deputies seized the bag and found it contained approximately $3,860 and 191 counterfeit cards. These cards contained re-encoded account numbers of customers who did their banking with Capital One and Regions Bank. During their search of the Mercedes, authorities found $931, four gift cards with re-encoded account numbers (counterfeit cards), and a cellular phone.
P. Stancu, M. Stancu and Serdaru admitted to authorities that they used those counterfeit cards to make fraudulent withdrawals from various ATM machines. Additionally, P. Stancu and Serdaru led authorities to the Honda Accord they left in a parking lot of the Home Depot in Denham Springs, Louisiana.
U.S. Attorney Fremin stated, “Access device fraud is a serious crime that can put citizens in great financial distress. This office will always take these crimes seriously and work with all of our partners to bring offenders to justice. I want to commend our prosecutor, the Secret Service, the Livingston Parish Sheriff’s Office, the East Baton Rouge Sheriff’s Office, and the investigators from Capital One Bank, whose quick action resulted in the arrest and conviction of these fraudsters.”
Tara McLeese, Resident Agent in Charge of the United States Secret Service in Baton Rouge, praised the quick response of local law enforcement. McLeese said, “Our partners in state and local law enforcement are critical to suppressing fraudulent financial activities. Through the Secret Service led Southwest Louisiana Financial Crimes Task Force, there are robust protocols and procedures in place to identify and capture individuals who choose to defraud the public.”
Livingston Parish Sheriff Jason Ard stated, “This case shows that agencies working together and sharing information can lead to great success. This type of crime heavily impacts these victims - not only taking their money, but targeting their way of living. When we can work together to take down a group of cowards attacking our hard-working citizens, it is a success in law enforcement.”
This matter is being investigated by the United States Secret Service, with critical assistance from the Livingston Parish Sheriff’s Office and East Baton Rouge Sheriff’s Office, and is being prosecuted by Assistant United States Attorney Robert W. Piedrahita.
Rapid City Man Sentenced on Conspiracy ChargeRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on December 17, 2019, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Robert Cook, age 37, was sentenced to 4 years in federal prison, followed by 5 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Cook joined a methamphetamine distribution conspiracy with other individuals no later than January 2017. During the course of the conspiracy, Cook received methamphetamine directly from different individuals and distributed the methamphetamine in Rapid City. Over the course of the conspiracy, at least 500 grams of methamphetamine was distributed in the Rapid City area.
This case was investigated by the Unified Narcotics Enforcement Team (UNET), and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. UNET is comprised of law enforcement from the Pennington County Sheriff’s Office, Rapid City Police Department, South Dakota Division of Criminal Investigation, and the South Dakota National Guard. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Cook was immediately turned over to the custody of the U.S. Marshals Service.
Porcupine Woman Sentenced for LarcenyRead the Press Release
United States Attorney Ron Parsons announced that a Porcupine, South Dakota, woman convicted of Larceny was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Lorraine Yellow Boy, age 45, was sentenced on December 16, 2019, to 6 months in federal prison, followed by 1 year of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund and $30,661 in restitution.
The conviction stems from Yellow Boy, while employed as an Evidence Technician with the Oglala Sioux Tribe Department of Public Safety, taking $30,661 from evidence bags and using it for her personal benefit between October 2018 and March 2019.
The investigation was conducted by the Federal Bureau of Investigation and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Yellow Boy was immediately turned over to the custody of the U.S. Marshals Service.
Pittsburgh Man Charged with Illegally Possessing Synthetic CannabinoidRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
The one-count Indictment, returned on Dec. 17, named Kris Johnson, age 28, as the sole defendant.
According to the indictment, on August 12, 2018, Kris Johnson possessed with the intent to distribute a quantity of 5-F ADB, a synthetic cannabinoid, a Schedule I controlled substance
The law provides for a maximum total sentence of not more than 20 years in prison, a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Drug Enforcement Agency conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pierre Man Indicted on Gun ChargeRead the Press Release
United States Attorney Ron Parsons announced that a Pierre, South Dakota, man has been indicted by a federal grand jury for Possession of a Firearm by a Prohibited Person.
Nathen Doherty, a/k/a Nathan Doherty, age 22, was indicted on December 10, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on December 13, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on May 11, 2018, Doherty, knowing he was an unlawful user of and addicted to a controlled substance as defined in 21 U.S.C. § 802, knowingly possessed a Remington Arms Company Incorporated, model 870 Express Super Magnum, 12 gauge, pump-action shotgun, which had been shipped and transported in interstate commerce and foreign commerce.
The charge is merely an accusation and Doherty 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 Northern Plains Safe Trails Drug Enforcement Task Force and the Pierre Police Department. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Doherty was released on bond pending trial. A trial date has not been set.
Philip Man Sentenced on Firearm ChargeRead the Press Release
United States Attorney Ron Parsons announced that a Philip, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced on December 17, 2019, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Steven Frost, age 38, was sentenced to 5 years in federal prison, followed by 3 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
The charge related to Frost, a previously convicted felon prohibited from possessing firearms, knowingly possessing a Mossberg, model 500A, 12 gauge pump shotgun, a Smith & Wesson, model Bodyguard, .380 caliber semi-automatic pistol, and a Taurus, model PT738, .380 caliber semi-automatic pistol, which were all found in Frost’s vehicle during a traffic stop near Black Hawk on January 5, 2018.
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 was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the South Dakota Highway Patrol. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Frost was immediately turned over to the custody of the U.S. Marshals Service.
Owner of Golf Management Company Charged with Embezzlement of City Funds and Tax FraudRead the Press Release
BOSTON – A federal grand jury in Springfield returned an indictment today charging a Springfield golf professional with theft concerning a program receiving federal funds, wire fraud, money laundering-related crimes, and filing false tax returns. The indictment also charges the golf professional and two local home builders with conspiring to defraud the United States.
Kevin M. Kennedy, 41 of East Longmeadow, was indicted on three counts of theft concerning programs receiving federal funds, four counts of wire fraud, four counts of engaging in monetary transactions in excess of $10,000 with the proceeds of specified unlawful activity, eight counts of money laundering, and four counts of filing a false tax return, and one count of conspiracy to defraud the United States. Kent S. Pecoy, 62, and Jason Pecoy, 39, both of Wilbraham, were also charged with conspiracy to defraud the United States.
According to the indictment, Kennedy owned and operated Kennedy Golf Management Inc. (KGM), through which he managed the City of Springfield’s two public golf courses, Franconia Golf Course and Veterans Memorial Golf Course. As part of its duties, KGM was required to collect greens fees and motorized cart rental fees on behalf of the City of Springfield. From 2010 through 2016, Kennedy allegedly embezzled greens fees and cart fees that were owed to the City by stealing cash directly from the City’s cash register and by diverting payments to KGM terminals. In an attempt to conceal the scheme, it is further alleged that Kennedy provided fraudulent records to the City that underreported the golf courses’ daily activity and revenues. Kennedy allegedly used the stolen funds for personal expenditures, including building homes in East Longmeadow, and West Dennis, and failed to report the income on his 2010 through 2014 tax returns.
In addition, the indictment charges that from 2009 through 2016, Kennedy conspired with Kent Pecoy, the owner of Kent Pecoy and Sons Construction Inc. (KPSC), and his son, Jason Pecoy, a KPSC project manager, to obstruct and impede the Internal Revenue Service and the collection of taxes by concealing Kennedy’s cash payments for construction of the East Longmeadow and West Dennis homes. According to the indictment, Kennedy paid the Pecoys in cash and the Pecoys failed to deposit most of the cash into business bank accounts, but rather distributed the cash directly to vendors and subcontractors. When they did deposit the cash, it is alleged that the Pecoys deposited funds in amounts less than $10,000 to avoid the filing of currency transaction reports. The indictment further alleges that the Pecoys created and maintained separate ledgers documenting Kennedy’s cash payments, created and maintained false contracts and cover sheets, and created false entries in KPSC’s accounting system to conceal the cash payments.
The wire fraud and money laundering charges provide for a sentence of up to 20 years in prison, five years of supervised release, and a fine of $250,000. The theft and monetary transactions charges provide for a sentence of up to 10 years in prison, three years of supervised release, and a fine of $250,000. The tax fraud charges provide for a sentence of up to three years in prison, three years of supervised release, and a fine of $100,000. The conspiracy charges provides for a sentence of up to five years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division; and Kristina O’Connell, Special Agent In Charge of the Internal Revenue Service, Criminal Investigation made the announcement today. Assistant U.S. Attorney Steven H. Breslow of Lelling’s Springfield Branch Office and Christopher O’Donnell of the Justice Department’s Tax Division are prosecuting the case.
Owner of Golf Management Company Charged with Embezzlement of City Funds and Tax FraudRead the Press Release
A federal grand jury in Springfield, Massachusetts, returned an indictment today charging a local golf professional with theft concerning a program receiving federal funds, wire fraud, money laundering-related crimes, and filing false tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Andrew E. Lelling for the District of Massachusetts. The indictment also charges the golf professional and two local home builders with conspiring to defraud the United States.
According to the indictment, Kevin M. Kennedy, a Massachusetts resident, owned and operated Kennedy Golf Management Inc. (KGM), through which he managed the City of Springfield’s two public golf courses, Franconia Golf Course and Veterans Memorial Golf Course. As part of its duties, KGM was required to collect golfer fees, known as “greens fees,” and motorized cart rental fees on behalf of the City of Springfield. From 2010 through 2016, Kennedy allegedly embezzled greens fees and cart fees that were owed to the City by stealing cash directly from the City’s cash register and by diverting payments to KGM terminals. In an attempt to conceal the scheme, it is further alleged that Kennedy provided fraudulent records to the City that underreported the golf courses’ daily activity and revenues. Kennedy allegedly used the stolen funds for personal expenditures, including building homes in East Longmeadow, and West Dennis, Massachusetts, and failed to report the income on his 2010 through 2014 tax returns.
In addition, the indictment charges that from 2009 through 2016, Kennedy conspired with Kent Pecoy, the owner of Kent Pecoy and Sons Construction Inc. (KPSC), and his son, Jason Pecoy, a KPSC project manager, to obstruct and impede the Internal Revenue Service and the collection of taxes by concealing Kennedy’s cash payments for construction of the East Longmeadow and West Dennis homes. According to the indictment, Kennedy paid the Pecoys in cash and the Pecoys failed to deposit most of the cash into business bank accounts, but rather distributed the cash directly to vendors and subcontractors. When they did deposit the cash, it is alleged that the Pecoys deposited funds in amounts less than $10,000 to avoid the filing of currency transaction reports. The indictment further alleges that the Pecoys created and maintained separate ledgers documenting Kennedy’s cash payments, created and maintained false contracts and cover sheets, and created false entries in KPSC’s accounting system to conceal the cash payments.
If convicted, Kennedy faces a maximum of up to 20 years in prison for each count of wire fraud and money laundering, ten years in prison for each count of theft concerning a program receiving federal funds and for engaging in monetary transactions in property derived from specific unlawful activities, five years in prison for conspiracy, and three years in prison for each count of filing a false tax return. Kennedy also faces a term of supervised release, restitution and monetary penalties.
If convicted, the Pecoys each face up to five years in prison for the conspiracy count, a term of supervised release, restitution and monetary penalties.
An indictment merely alleges that crimes have been committed. Individuals charged in indictments are presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Lelling commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant United States Attorney Steve Breslow from the District of Massachusetts and Trial Attorney Christopher O’Donnell of the Department of Justice’s Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Owner of Detroit-Area Health Care Clinics Sentenced to Prison for a Diversion Scheme Involving 500,000 Pills of Oxycodone and Other DrugsRead the Press Release
The owner of a Detroit-area pain clinic and physical therapy clinic was sentenced to 11 years in prison today for her role in a diversion scheme involving more than 500,000 pills of oxycodone and other drugs.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Timothy J. Plancon of the U.S. Drug Enforcement Administration (DEA)’s Detroit Division and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.
Shirley Douglas, 70, of West Bloomfield, Michigan, was sentenced by U.S. District Judge David Lawson of the Eastern District of Michigan. In September, Douglas pleaded guilty to one count of conspiracy to distribute controlled substances.
As part of her guilty plea, Douglas admitted that, as the owner and operator of a pain clinic and a physical therapy clinic located in Southfield, Michigan, she conspired with others to distribute medically unnecessary controlled substances, including oxycodone, oxymorphone, alprazolam, hydrocodone and promethazine hydrochloride, through the selling of appointments with physicians at their pain clinics.
The total drug amount attributable to Douglas is in excess of 500,000 pills of oxycodone.
Douglas’s co-defendant, Malik Fuqua, pleaded guilty on Nov. 13, 2019, and is scheduled to be sentenced on Feb. 26, 2020.
The DEA and HHS-OIG investigated the case. Assistant Chief Malisa Dubal and Trial Attorney Patrick Suter of the Criminal Division’s Fraud Section are prosecuting the case. The case was previously prosecuted by Assistant Chief Drew Bradylyons and Trial Attorney Tom Tynan of the Criminal Fraud Section.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Owner of Scrap Metal Business Admits Filing False Tax ReturnsRead the Press Release
NEWARK, N.J. – The owner of a scrap metal business in Morris County, New Jersey, today admitted that he underreported his income on his personal tax returns, avoiding paying more than $175,000 in taxes, U.S. Attorney Craig Carpenito announced.
Anthony Curto Jr., 51, of Succasunna, New Jersey, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with one count of making and subscribing a false tax return.
According to documents filed in the case and statements made in court:
Curto owned and operated Total Metal Transport, a business headquartered in Succasunna that purchased and transported scrap metal and other materials. Curto admitted that for tax years 2012 and 2013, he underreported and failed to report the gross receipts from Total Metal Transport, which he operated on a cash-only basis, on his personal tax return, avoiding more than $175,000 in taxes.
The count of making and subscribing a false tax return carries a maximum potential penalty of three years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for March 24, 2020.
U.S. Attorney Carpenito credited special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Bernard J. Cooney of the Health Care & Government Fraud Unit.
Orlando Man Sentenced to More Than 13 Years in Federal Prison for Armed Carjacking of Pizza Delivery DriverRead the Press Release
Orlando, Florida – U.S. District Judge G. Kendall Sharp has sentenced Sheldrick D. Singleton Jr. (20, Orlando) to 13 years and 4 months in federal prison for committing an armed carjacking, and for possessing a firearm during and in relation to a crime of violence. Singleton had pleaded guilty on August 26, 2019.
According to court records, on March 21, 2019, Singleton and two other suspects held a pizza delivery driver at gunpoint as the driver attempted to deliver a pizza in the Pine Hills area of Orlando. While holding the victim at gunpoint, Singleton and the other two suspects demanded the keys to the victim’s vehicle and drove away, leaving the victim behind. Approximately 20 minutes later, deputies located the vehicle in Winter Garden and attempted to stop the vehicle. The suspects refused to stop and fled, at speeds of more than 100 miles per hour. One of the pursuing deputies performed a tactical maneuver that successfully immobilized the vehicle. Singleton and the other two suspects were then removed from the vehicle and arrested.
One of the suspects, Anthony Sean Williams Jr., was indicted by a federal grand jury for the same offenses as Singleton and is currently pending trial. The third suspect is a minor and the matter is being handled in state court.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation, the Orange County Sheriff’s Office, and the Winter Garden Police Department. It was prosecuted by Assistant United States Attorney Chauncey A. Bratt.