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Friday 25 October 2019
Clearwater Man Sentenced to Prison for Unlawful Possession of Firearms in A School ZoneRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew has sentenced Gerard Graves (27, Clearwater) to seven years in federal prison for unlawful possession of firearms in a school zone.
Graves had pleaded guilty on July 19, 2019.
According to court documents, on May 27, 2015, the Drug Enforcement Administration learned through a confidential informant (CI) that Graves, a convicted felon, was attempting to sell a shotgun. The CI, under DEA supervision, spoke with Graves and arranged a time and place to purchase the firearm. Graves arrived at the agreed upon location in Clearwater and sold a Mossberg 12-gauge shotgun and ammunition to the CI. On July 9, 2019, Graves contacted the CI and said he had another firearm for sale. The CI, under DEA supervision, met with Graves the next day at another location in Clearwater where Graves sold the CI a Smith & Wesson 9mm pistol and ammunition. Both firearm sales occurred within 1,000 feet of a school.
This case was investigated by the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Michael C. Sinacore.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Cedar Rapids Man Receives Second Conviction in Federal Court for Unlawfully Possessing a Gun After Armed Home Invasion to Steal Money and DrugsRead the Press Release
A Cedar Rapids man who went with an associate to rob individuals of their money and drugs using a firearm was convicted by a jury October 24, 2019, after a 4-day trial in federal court in Cedar Rapids.
Carl McArthur, age 38, from Cedar Rapids, Iowa, was convicted of one count of being in possession of a firearm, specifically a Taurus .45LC/.410 caliber “Judge” handgun after having been convicted of a 2003 misdemeanor domestic abuse assault in Linn County, Iowa, and a 2009 federal, felony conviction for possessing a firearm as a drug user and as a person with a prior conviction for a misdemeanor crime of domestic violence. The verdict was returned on October 24, 2019, following about nine hours of jury deliberations.
The evidence at trial showed that on March 17, 2018, McArthur and an associate entered a residence on the southwest side of Cedar Rapids with firearms to rob the occupants of the house of any money or methamphetamine that was in their possession. Three of the occupants of the house testified that McArthur and his associate forced their way into the residence, assaulted them, and threatened to shoot them and pour hot grease on them in an effort to get money and drugs from them. One of the occupants called 911, and officers from the Cedar Rapids Police Department responded within minutes. The officers found McArthur inside the residence, and his associate was outside. The unknown associate fled the scene, leaving behind the ski mask he wore to conceal his identity. Upon searching the residence officers found a Taurus .45LC/.410 caliber “Judge” handgun, a 9mm handgun, methamphetamine and drug paraphernalia.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. McArthur remains in custody of the United States Marshal pending sentencing. McArthur faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, and 3 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorneys Ashley Corkery and Patrick Reinert and was investigated by Cedar Rapids Safe Streets Task Force. The task force is composed of representatives from the Federal Bureau of Investigation and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-0102.
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Canadian National Extradited to San Diego to Face Terrorism ChargesRead the Press Release
Assistant U. S. Attorneys Shane Harrigan (619) 546-6981 and Caroline Han (619) 546-6968
NEWS RELEASE SUMMARY – October 25, 2019
SAN DIEGO – Canadian national and former San Diego resident Abdullahi Ahmed Abdullahi made his initial appearance in federal court today following his extradition to the United States on charges that he conspired with others to provide material support to terrorists engaged in violent activities in Syria.
Abdullahi is charged in a two-count indictment with conspiring with several Canadian and U.S. citizens, including Douglas McCain (“Douglas”), the first known American who died fighting for the Islamic State of Iraq and al-Sham (ISIS) on or about August 25, 2014. Douglas resided in San Diego prior to departing the United States for Turkey, and eventually, Syria.
“Terrorist networks like ISIS cannot exist without supporters,” said U.S. Attorney Robert Brewer. “Protecting Americans from terrorists is our highest priority, and we will work hard to bring justice to those who provide material support to foreign terror organizations. I would like to thank the prosecutors, the FBI, our Joint Terrorism Task Force and our international law enforcement partners for all that they do to keep our communities safe.”
“Today’s announcement should serve as a warning to those who have traveled, attempted to travel, or support those fighting on behalf of ISIS. The FBI remains steadfast in ensuring they face justice," said FBI Special Agent in Charge Scott Brunner. “I commend San Diego's Joint Terrorism Task Force (JTTF) and our interagency and international partners for their committed work which resulted in Abdullahi returning to the United States to answer for the crimes he is accused of committing.”
The Abdullahi indictment alleges that from in or about August 2013 through in or about November 2014, Abdullahi conspired with Douglas and other individuals to provide personnel and money to individuals engaged in terrorist activities in Syria, including the killing, kidnapping and maiming of persons. Specifically, the indictment alleges that Abdullahi facilitated the travel of at least three Canadian nationals and two U.S. citizens to Syria to join and fight for ISIS, all of whom were subsequently reportedly killed fighting for ISIS.
As alleged in the indictment, in order to get money to fund travel to and fighting with terrorists in Syria, Abdullahi’s co-conspirators encouraged others to commit crimes against the “kuffar” (an Arabic term meaning infidels or non-believers), such as theft. In furtherance of this material support conspiracy, the indictment alleges that on January 9, 2014, prior to the travel of Douglas and a second American, Abdullahi committed an armed robbery of a jewelry store in Edmonton, Alberta, Canada, in order to finance the travel of Douglas and other members of the conspiracy to Syria. Thereafter, Abdullahi wired and caused others to wire money to other members of the conspiracy in the United States -- including approximately $3,100 to Douglas. The money paid for Douglas and the second individual to travel from the United States to Turkey. They later moved into Syria and engaged in terrorist activities, alongside other co-conspirators, including North Americans with whom Abdullahi maintained ties.
Additionally, members of the conspiracy, including Abdullahi, wired and caused money to be wired to third-party intermediaries in Gaziantep, Turkey (located approximately 40 miles from the Syrian border) for the purpose of supporting members of the conspiracy fighting and engaging in terrorist activity in Syria, including the killing, kidnapping, and maiming of persons.
On March 10, 2017, a federal grand jury in the Southern District of California returned a two-count sealed indictment charging Abdullahi with conspiring to provide, and providing, material support to terrorists. On September 15, 2017, pursuant to an extradition request by the United States, Canadian authorities arrested Abdullahi. Abdullahi was detained in Canadian custody without bail, pending extradition. Canadian authorities surrendered Abdullahi to the United States yesterday.
In a related case, Marchello Dsaun McCain, a convicted violent felon and the brother of Douglas, was sentenced in 2018 in federal court to 10 years in prison for his illegal possession of a cache of firearms and body armor and making false statements to federal agents involving international terrorism.
At today’s hearing, prosecutors moved to detain Abdullahi based on risk of flight and danger to the community. A detention hearing will be held on October 29 at 10:45 a.m. before U.S. Magistrate Karen S. Crawford.
The U.S. Attorney’s Office wishes to thank the Department of Justice’s Office of International Affairs and our Canadian law enforcement partners, including the Alberta Crown Prosecution Service, the Public Prosecution Service of Canada, and the Canada Crown Prosecutor’s Office, for their extraordinary work in the process of securing Abdullahi’s extradition and return to the United States to face charges.
DEFENDANT Criminal Case No. 17CR0622-W
Abdullahi Ahmed Abdullahi Age: 34 Edmonton, Alberta, Canada
SUMMARY OF CHARGES
Conspiracy to Provide Material Support to Terrorists – Title 18, U.S.C., Sections 2339A(a)
Maximum penalty: 15 years’ imprisonment and $250,000 fine
Providing Material Support to Terrorists – Title 18, U.S.C., Sections 2339A(a)
Maximum penalty: 15 years’ imprisonment and $250,000 fine.
INVESTIGATING AGENCIES
San Diego Joint Terrorism Task Force
Federal Bureau of Investigation
Federal Air Marshal Service
Department of Homeland Security, Homeland Security Investigations
Department of Homeland Security, U.S. Border Patrol
Campbell man indicted for failing to register as a sex offenderRead the Press Release
A Campbell man was indicted for allegedly failing to register as a sex offender.
Paul Douglas Scott, 53, knowingly failed to register and update a registration as required by the Sex Offender Registration and Notification Act and a sex offender by reason of a conviction in Pinellas County Florida, in December 1999, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The United States Marshall Service investigated the case, which is being prosecuted by Assistant U.S. Attorney Yasmine Makridis.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
California Man Convicted of Drug Conspiracy at TrialRead the Press Release
United States Attorney Ron Parsons announced that Juan Porcayo, age 48, of Yuba City, California, was found guilty of Conspiracy to Distribute 500 grams or more of Methamphetamine as a result of a federal jury trial in Rapid City, South Dakota. The trial began Monday, October 21 and concluded Tuesday, October 22. Porcayo was originally indicted by a federal grand jury on September 19, 2017.
The charge carries a mandatory minimum sentence of 10 years and a maximum penalty of life in custody and/or a $10,000,000 fine, 5 years up to life of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Porcayo was a supplier of methamphetamine in California. He provided multiple pounds of methamphetamine to people who transported it back to South Dakota for distribution. Several co-conspirators have pled guilty.
This case was investigated by the Homeland Security Investigations, the Pennington County Sheriff’s Office, and the Unified Narcotics Enforcement Team. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
A presentence investigation was ordered. Sentencing is scheduled for February 28, 2020. The defendant was remanded to the custody of the U.S. Marshals Service.
Business Owner Sentenced for False Tax ReturnRead the Press Release
KANSAS CITY, Mo. – A Paola, Kansas, man has been sentenced in federal court for filing a false tax return.
Steven J. Strauss, 54, was sentenced by U.S. District Judge Greg Kays on Wednesday, Oct. 23, to two years and four months in federal prison without parole. The court also ordered Strauss to pay $684,792 in restitution to the government.
Strauss, who owns and operates Classic Tree Care, pleaded guilty on Jan. 23, 2019, to filing a false tax return. Strauss admitted that he did not provide accurate information to his tax preparer. Strauss vastly understated the gross receipts for his business, which caused corresponding understatements of taxable income and tax liability.
From 2012 through 2015, Strauss deposited approximately $1,467,682 in business income into his bank account, over and above what was reported on his tax returns. Strauss admitted that, as a result of his fraudulent conduct in understating his tax liabilities, he owed $684,792 to the IRS.
This case was prosecuted by Assistant U.S. Attorney Thomas M. Larson. It was investigated by IRS-Criminal Investigation.
Buffalo Man Pleads Guilty to Lying to Grand Jury About Murder InvestigationRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Demetrius Lowry, a/k/a Little D, 24, of Buffalo, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to obstructing an official proceeding. The charge carries a maximum penalty of 20 years in prison, and a $250,000 fine.
Assistant U.S. Attorney Paul C. Parisi, who is handling the case, stated that Jaquan Sullivan was shot and killed on December 5, 2015, in the vicinity of Parkdale Avenue in Buffalo. On December 8, 2015, Lowry was interviewed by Buffalo Police Homicide detectives and provided two written statements detailing the shooting, including the identity of the person who shot Sullivan.
On December 17, 2015, Lowry sent a text message to the Buffalo Police Confidential Tip Line stating that this prior information was “totally wrong” and that he did not know who was involved in the shooting. On February 18, 2016, detectives interviewed the defendant about the tip-line message, and Lowry signed a written statement indicating that the tip-line message was not true.
On July 12, 2018, law enforcement officers assigned to the FBI interviewed the defendant once again about the shooting death of Jaquan Sullivan. Lowry gave information about the identity of the shooter which was different from that which he provided on December 8, 2015.
On July 31, 2018, while under oath and testifying in a proceeding before a Federal Grand Jury, the defendant denied writing and signing both his December 8, 2015, and February 18, 2016, statements, claiming, inter alia, that he was never interviewed by a detective on February 18. Lowry testified that he did speak with the FBI in July of 2018, but he stated he was not asked about the murder of Jaquan Sullivan.
The plea is the result of an investigation by the Buffalo Police Department, under the direction of Commissioner Byron Lockwood, the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard.
Sentencing is scheduled for March 20, 2020, before Judge Vilardo.
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Brother of man convicted of hate crime charged with lying to FBI, concealing brother's flight from countryRead the Press Release
CINCINNATI – A federal grand jury has charged Baris A. Koch, 30, of Dayton, with misprision of a felony and making false statements.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Joseph M. Deters, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and Vance Callander, Special Agent in Charge, Homeland Security Investigations (HSI), announced the charges returned this week.
In July 2019, Baris’ brother Izmir A. Koch was sentenced to 30 months in prison following his conviction for committing a hate crime and lying to federal agents.
According to the indictment in this case, 10 days later, Baris Koch obtained a duplicate driver’s license from the Ohio BMV, claiming he had lost his previous license.
Izmir Koch was ordered to report to a federal correctional institute on Aug. 16 and he failed to report.
On Aug. 21, Baris Koch obtained yet another duplicate driver’s license from the Ohio BMV, claiming again that he had lost his previous driver’s license.
FBI and HSI agents later discovered, according to court documents, that on Aug. 9, Izmir Koch crossed into Mexico by foot, posing as his brother. Izmir Koch used Baris Koch’s United States passport to fly from a Mexican airport to Europe, where he eventually made his way to Russia. Baris and Izmir Koch both previously resided in Russia and have held Russian passports. The United States and Russia do not have an extradition treaty.
Mail records show that several days later, on Aug. 16, Baris Koch received a package from a “Baris Ali Koch” at a Russian address with an official label describing the contents as “PASSPORT, COPIES OF DOCUMENTS.” The real Baris Koch did not travel outside the United States during this timeframe.
When the FBI interviewed Baris Koch on Sept. 11, he allegedly told the agents that he had last seen Izmir Koch on Aug. 9, and that he had no knowledge regarding his brother’s possible whereabouts. It is alleged Baris Koch likewise failed to mention that, days after his brother’s disappearance, he received a package purportedly sent from himself in Russia with passports inside it.
The defendant allegedly failed to report knowledge of a felony offense, namely, aggravated identity theft by misuse of a U.S. passport, and concealed that fact from FBI agents.
He is charged with one count of misprision of a felony, a federal crime punishable by up to three years in prison, and one count of making false statements to federal agents, which carries a potential maximum sentence of five years in prison.
U.S. Attorney Glassman commended the investigation of this case by the FBI and HSI, as well as Special Assistant United States Attorney Kelly K. Rossi, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Bronx Gang Member Charged with MurderRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Peter C. Fitzhugh, the Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), and Margaret Garnett, Commissioner of the New York City Department of Investigation (“DOI”), announced today the unsealing of a superseding indictment charging MARQUIS YOHANIS, a/k/a “DG,” with murder in aid of racketeering, conspiracy to commit murder in aid of racketeering, and a firearms offense in connection with the murder of Nelson Ramos on January 6, 2019, in the Bronx. Robert Wilson, a/k/a “Ro,” Kevin Crosby, a/k/a “Sama,” and Yefrel Brito, a/k/a “Mini,” were previously arrested on charges related to the murder of Nelson Ramos and are already in federal custody.
YOHANIS was arrested yesterday morning and will be presented today in the South Paris District Court in Maine. The case is assigned to U.S. District Judge Jesse M. Furman.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged in the indictment, Marquis Yohanis, along with his co-defendants, are responsible for the cold-blooded murder of Nelson Ramos earlier this year. We commend the extraordinary efforts of our law enforcement partners to bring these defendants to justice.”
HSI Special Agent-in Charge Peter C. Fitzhugh said: “Mr. Yohanis and his co-defendants would stop at nothing to expand their violent criminal enterprise, including murder, as alleged in court documents. Working hand in hand with our law enforcement partners at the NYPD and DOI along with the United States Attorney’s Office in the Southern District of New York made today’s arrest possible. We will always be more determined than criminals are to evade us in bringing them to justice. Hopefully the arrest of Mr. Yohanis’s will begin a path to healing for all those impacted by his crimes.”
DOI Commissioner Margaret Garnett said: “This arrest is another important step in holding accountable those individuals who endanger our City’s neighborhoods and the people who live there. This investigation reflects the strong impact that law enforcement partnership has on protecting all New Yorkers and rooting out violent crime.”
According to the allegations in the Superseding Indictment unsealed yesterday in Manhattan federal court[1]:
Wilson and Crosby are members or associates of a racketeering enterprise known as the Stevenson Commons Crew. In order to fund the enterprise, protect and expand its interests, and promote its standing, members and associates of the Stevenson Commons Crew committed, conspired, attempted, and threatened to commit acts of violence against rival gangs, including murder and robbery; conspired to distribute and possess with intent to distribute narcotics; and obtained, possessed and used firearms, including by brandishing and discharging them.
Brito and YOHANIS are members or associates of a racketeering enterprise known as Sex Money Murder, a criminal organization whose members and associates engaged in, among other things, murder, attempted murder, and narcotics trafficking.
On January 6, 2019, Wilson, Crosby, Brito, and Yohanis murdered Nelson Ramos in the vicinity of 800 Soundview Avenue in the Bronx, New York.
* * *
YOHANIS, 19, from the Bronx, New York, is charged with one count of murder and assault with a deadly weapon in aid of racketeering, which carries a maximum sentence of death or life in prison, and a mandatory minimum sentence of life in prison; one count of conspiracy to commit murder in aid of racketeering, which carries a maximum sentence of 10 years in prison; and one count of murder through use of a firearm, which carries a maximum sentence of death or life in prison, and a mandatory minimum sentence of five years in prison.
Mr. Berman praised the investigative work of HSI, the NYPD, and DOI.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Andrew K. Chan and Justin V. Rodriguez are in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment constitutes only allegations, and every fact described herein should be treated as an allegation.
Armed Felon in Rap Video Sentenced for Illegally Possessing FirearmRead the Press Release
Jacksonville, FL – U.S. District Judge Brian J. Davis has sentenced Richard Leroy Douglas (25, Jacksonville) to 41 months in federal prison for possessing a firearm as a convicted felon.
Douglas had pleaded guilty on July 9, 2019.
According to court documents, on October 1, 2018, an agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) was conducting a YouTube query of firearm-related music videos in the Jacksonville area and found a video titled “Hulio Da Don “KOBK” (Official Music Video).” According to the YouTube webpage, the video was published on September 14, 2018. The KOBK music video depicted several individuals possessing, holding, and pointing numerous suspected firearms of varying types and calibers. Agents identified Douglas as one of the individuals in the KOBK music video who had possessed a Zastava, 7.62x39-mm pistol with a double black taped magazine.
On September 27, 2018, detectives from the Jacksonville Sheriff’s Office (JSO) had executed a narcotics-related search warrant at a residence. During the search of the residence, JSO officers located five firearms, one of which was a Zastava, 7.62x39-mm pistol. That pistol matched the unique characteristic of the Zastava, 7.62x39-mm pistol that Douglas had possessed in the KOBK music video. The residence also matched the KOBK music video shoot location.
This case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney Beatriz Gonzalez.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Ambulance Company Manager and Biller Plead Guilty to $4.7 Million Fraud upon Medicare and Humana, Inc., and to Aggravated Identity TheftRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, PAMELA DEWITT BABB, 49, of Mt. Olive, and DAVON TERRELL HENDERSON, 32, of Greenville, NC, pleaded guilty to a Criminal Information charging BABB and HENDERSON with Conspiracy to Commit Health Care Fraud, and Aggravated Identity Theft.
United States Attorney Robert J. Higdon stated, “This fraud was huge in term of scope and impact. The defendants, and those working with them, went to great lengths to steal millions of dollars - stealing from the taxpayers of the country. My office and the investigative agencies with which we partner take these crimes, very seriously; it is a matter of principle and priority for us as we represent the people of the Eastern District.”
The Criminal Information to which BABB and HENDERSON pleaded guilty charges that in January of 2014, HENDERSON, BABB, and others entered into a scheme to defraud Humana, Inc.’s Medicare Advantage program by billing for fictitious ambulance services using the names and identifiers of Humana customers, referred to in the charges as the Humana Beneficiaries. The fraud was carried out in the name of the ambulance company HENDERSON owned at the time, known as Med 1 Inter-facility Care, LLC (Med-1). To carry out the fraud, a participant in the scheme acquired personally identifying information (PII) for certain Humana beneficiaries. HENDERSON and BABB paid participants for obtaining the identifying information of Humana Beneficiaries.
Using stolen Humana Beneficiary identifying information, HENDERSON and BABB caused Humana’s Medicare Advantage plan to be “back-billed” for various ambulance services in 2013, even though Med-1 was not operational for most of 2013. Thereafter, HENDERSON and BABB caused Humana to be billed for further fictitious ambulance services, continuing the fraud through June of 2016.
During the course of the fraud, Humana initially issued paper checks to Med-1 for the fictitious services. Rather than depositing the checks, HENDERSON and BABB caused the checks to be converted to cash using a check cashing business. HENDERSON and BABB then split the cash proceeds from the fraud. Later, BABB established an electronic billing and payment channel between Med-1 and Humana. Although BABB established this billing and payment channel in the name of Med-1, the routing number given to Humana for the purposes of payment for ambulance services belonged to a wheelchair company owned by HENDERSON, known as H&H Transport Services LLC (H&H). In other words, payments from Humana for services allegedly rendered by Med-1 were deposited into an H&H bank account. After Humana made an electronic deposit into the H&H bank account for fictitious ambulance services, HENDERSON and BABB split the proceeds by wiring approximately half of the proceeds into a bank account belonging to BABB.
In total, between 2014 and April of 2016, HENDERSON and BABB caused Humana to be billed for $6.1 Million in fraudulent ambulance services. Of this amount, Humana paid $4.7 Million, which was split between HENDERSON and BABB.
The maximum punishment for Health Care Fraud is up to 10 years in federal prison and up to $250,000 in fines. The maximum punishment for Aggravated Identity Theft (18 U.S.C. § 1028A) is not less than, nor more than 2 years in prison consecutive to any other term of imprisonment imposed, as well as up to a $250,000 in fines. The defendants will also be subject to an order of restitution and forfeiture of assets.
The United States Department of Health and Human Services Office of the Inspector General and the Internal Revenue Service Criminal Investigation conducted the investigation of this case. Assistant United States Attorney William M. Gilmore represents the United States.
Alabama Man Sentenced to over 16 Years in Federal Prison for Drug Trafficking and Illegal Possession of a FirearmRead the Press Release
Jackson, Miss. – James Lyles, 37, of Mobile, Alabama, was sentenced today by Chief U.S. District Judge Daniel P. Jordan III to serve 195 months in federal prison, followed by five years of supervised release, for possessing with intent to distribute 50 grams or more of methamphetamine and possessing a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Mike Hurst and Special Agent in Charge Brad L. Byerley with the Drug Enforcement Administration. Lyles was also ordered to pay a $1,500 fine.
On January 25, 2018, Mississippi Bureau of Narcotics agents were conducting surveillance on a residence in Jackson, Mississippi, believed to be involved in illegal drug distribution. While conducting the surveillance, agents observed a Jeep Liberty depart the residence. The vehicle was stopped for a traffic violation. The driver attempted to drive off, but was unable to do so. As a result, agents approached both sides of the vehicle and ordered the driver and passenger, James Lyles, out of the vehicle. While assisting Lyles out of the passenger side of the vehicle, agents discovered several bags of methamphetamine. Agents also discovered a .22 caliber pistol in the passenger door where Lyles was sitting. The methamphetamine was tested and determined to be 197 grams.
The case is the result of an extensive investigation, dubbed “Drama Queen” targeting illegal methamphetamine distribution in central Mississippi. The case was investigated by the Mississippi Bureau of Narcotics, Drug Enforcement Administration, Bureau of Alcohol Tobacco Firearms and Explosives, U.S. Marshals Service, Hinds County Sheriff’s Office, Jones County Sheriff’s Office, Jackson Police Department, Pearl Police Department and the Richland Police Department. It was prosecuted by Assistant United States Attorney Chris Wansley.
Alabama Man Sentenced to over 16 Years in Federal Prison for Drug Trafficking and Illegal Possession of a FirearmRead the Press Release
Jackson, Miss. – James Lyles, 37, of Mobile, Alabama, was sentenced today by Chief U.S. District Judge Daniel P. Jordan III to serve 195 months in federal prison, followed by five years of supervised release, for possessing with intent to distribute 50 grams or more of methamphetamine and possessing a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Mike Hurst and Special Agent in Charge Brad L. Byerley with the Drug Enforcement Administration. Lyles was also ordered to pay a $1,500 fine.
On January 25, 2018, Mississippi Bureau of Narcotics agents were conducting surveillance on a residence in Jackson, Mississippi, believed to be involved in illegal drug distribution. While conducting the surveillance, agents observed a Jeep Liberty depart the residence. The vehicle was stopped for a traffic violation. The driver attempted to drive off, but was unable to do so. As a result, agents approached both sides of the vehicle and ordered the driver and passenger, James Lyles, out of the vehicle. While assisting Lyles out of the passenger side of the vehicle, agents discovered several bags of methamphetamine. Agents also discovered a .22 caliber pistol in the passenger door where Lyles was sitting. The methamphetamine was tested and determined to be 197 grams.
The case is the result of an extensive investigation, dubbed “Drama Queen” targeting illegal methamphetamine distribution in central Mississippi. The case was investigated by the Mississippi Bureau of Narcotics, Drug Enforcement Administration, Bureau of Alcohol Tobacco Firearms and Explosives, U.S. Marshals Service, Hinds County Sheriff’s Office, Jones County Sheriff’s Office, Jackson Police Department, Pearl Police Department and the Richland Police Department. It was prosecuted by Assistant United States Attorney Chris Wansley.
Thursday 24 October 2019
“DrFrosty” Sentenced for Distribution of Methamphetamine Using the Dark NetRead the Press Release
SACRAMENTO, Calif. — Omar Isho, 37, of Modesto, was sentenced today by U.S. District Judge Morrison C. England Jr. to five years and 10 months in prison for possession with intent to distribute methamphetamine, U.S. Attorney McGregor W. Scott announced.
According to court documents, federal agents began investigating Isho as the operator of vendor account “DrFrosty,” which sold methamphetamine on dark net marketplaces such as the Dream Market, Empire Market, and Silk Road 3.1. Federal agents conducted undercover purchases of methamphetamine from his accounts and were sent methamphetamine hidden inside jigsaw puzzle boxes. On Aug. 8, Isho pleaded guilty to possession with intent to distribute at least 50 grams or more of methamphetamine.
“Homeland Security Investigations (HSI) will continue to identify, investigate and bring to justice criminals, like Isho, who seek to profit from trafficking illegal drugs through online black markets,” said Tatum King, special agent in charge, HSI San Francisco and Northern California. “The result of this multi-agency investigation sends a strong message to drug traffickers that the anonymity of the internet will not prevent law enforcement from executing our public safety mission. HSI will continue to leverage its global reach with local, state, federal, and foreign law enforcement partnerships to investigate, disrupt, and dismantle hidden illegal networks that pose threats in both cyberspace and in our local communities.”
This case was the product of an investigation by the Northern California Illicit Digital Economy (NCIDE) Task Force, a multi-agency taskforce composed of law enforcement agents from HSI, the U.S. Postal Inspection Service, the FBI, and the DEA. Assistant U.S. Attorney Quinn Hochhalter prosecuted the case.
Young adult charged with threats to middle school via FacebookRead the Press Release
CORPUS CHRISTI, Texas – A 19-year-old Corpus Christi resident has been charged with making threats against Grant Middle School, announced U.S. Attorney Ryan K. Patrick.
The criminal complaint was filed today, after which federal authorities took Nathanial Salinas into custody. He is expected to make his initial appearance before U.S. Magistrate Judge Jason B. Libby at 2 p.m. tomorrow.
The charges allege Salinas posted a threatening message on Facebook. On Oct. 9, Facebook user “Natedawg Salinas” allegedly posted a profanity-laden comment indicating he planned to shoot people at the school, specifically mentioning a Spanish teacher. He followed the comment with an abbreviation for “just joking.”
Law enforcement identified that user as Salinas, according to the complaint.
Salinas made the comments in response to another user who indicated problems with the Corpus Christi Independent School District (CCISD).
Following the threat, the charges allege authorities placed Grant Middle School on lockdown, causing fear amongst the students and their families. The Spanish teacher indicated shock and fear for their life, according to the complaint.
If convicted, Salinas faces up to five years in federal prison and a possible $250,000 maximum fine.
The FBI, Corpus Christi Independent School District Police Department and the Corpus Christi Police Department conducted the investigation. Assistant U.S. Attorney Brittany L. Jensen is prosecuting the case.
A complaint is an accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Worcester Man Arrested for Wildlife SmugglingRead the Press Release
BOSTON – A Worcester man was arrested yesterday and charged in federal court in Worcester with unlawfully importing a protected species.
Nathan Boss, 27, was charged with one count of unlawful smuggling of prohibited wildlife. Boss made an initial appearance yesterday before U.S. Magistrate Judge David Hennessy.
According to the charging documents, on Sept. 19, 2019, federal investigators intercepted an inbound U.S. Postal Service package from Hong Kong that was addressed to “Shelton Boss” at an address on Mildred Avenue in Worcester. The package was found to contain four black-breasted leaf turtles (Geoemyda spengleri), a species included in the Convention for Trade in Endangered Species and Wild Fauna, an international agreement joined by the U.S. that governs the importation of designated wildlife. Specifically, any black-breasted leaf turtle imported into the United States must be declared and approved by Fish and Wildlife Service before any shipment can be received.
On Sept. 20, 2019, Boss accepted delivery of the subject package at a post office in Worcester. Before leaving with the package containing the turtles, Boss allegedly informed the postal clerk that “Shelton Boss” was an alias that he used. In the course of the investigation, agents discovered evidence of Boss’s involvement in the unlawful importation of wildlife prior to September 2019.
The charge provides for a sentence of up to 20 years in prison, 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; David Sykes, Resident Agent in Charge of the U.S. Fish and Wildlife Service, Office of Law Enforcement; and Worcester Police Chief Steven M. Sargent made the announcement today. Assistance with the investigation was provided by the U.S. Postal Inspection Service, U.S. Customs and Border Protection and the Massachusetts Division of Fisheries and Wildlife. Assistant U.S. Attorney Nadine Pellegrini of Lelling’s Criminal Division is prosecuting the case.
Wood County Woman Pleads Guilty to Federal Gun and Drug ChargesRead the Press Release
CHARLESTON, W.Va. – A Vienna woman pled guilty to gun and drug charges, announced United States Attorney Mike Stuart. Ally Rhiann Propst, 25, pled guilty to possession with intent to distribute heroin and possession of a firearm by an unlawful drug user.
“Federal law prohibits unlawful drug users from possessing firearms,” said United States Attorney Mike Stuart. “Drugs and guns are a dangerous combination. We enforce our gun laws to keep guns out of the wrong hands.”
Propst admitted that on March 6, 2018 she possessed a Glock 9mm pistol that she had obtained from a Parkersburg pawn shop. Propst’s possession of that weapon was illegal due to her addiction to heroin. She further admitted that a year later, on March 1, 2019, she possessed approximately 20 grams of heroin she intended to distribute at her Vienna residence.
Propst faces up to 30 years in prison when sentenced on January 16, 2020.
The Parkersburg Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. United States District Judge Joseph R. Goodwin presided over the hearing.
This case is being prosecuted as part of the Project Safe Neighborhoods (PSN) program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Walpole Man Agrees to Plead Guilty to Filing a False Tax ReturnRead the Press Release
BOSTON – A Walpole man has agreed to plead guilty in connection with failing to report income from his landscaping business to the Internal Revenue Service (IRS).
Stephen L. Petrucci, 56, has agreed to plead guilty to one count of filing a false tax return. A plea hearing has not yet been scheduled by the Court. According to the terms of the plea agreement, the government will recommend a sentence of two years in prison, one year of supervised release, a fine and restitution to the IRS of $726,789.
According to the charging document, Petrucci owes more than $700,000 in income taxes to the IRS after he failed to report income from his landscaping business on his federal tax returns for tax years 2012 through 2017.
The charging statute provides a sentence of up to three years in prison, one year of supervised release and a fine of $100,000. 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 and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorney Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit is prosecuting the case.
Wagoner Man Found Guilty for Sexually Exploiting a ChildRead the Press Release
A federal jury convicted a Wagoner man Thursday of sexual exploitation of a child and of possession of child pornography.
Rogelio Hernandez Rodriguez, 30, was found guilty of sexually exploiting the minor victim and inducing the victim to engage in sexually explicit conduct for the purpose of producing child pornography. Rodriguez was further found guilty of knowingly possessing and accessing with intent to view child pornography. The 524 sexually graphic images and videos depicted the sexual abuse of the prepubescent victim and were stored on hard drives and multiple SD cards. During closing statements, the prosecution reminded the jury of the crimes perpetrated against the victim and of what the child had to endure. They asked the jury to return a verdict of guilty to assure the victim that what happened to him was illegal and it was wrong.
“Crimes against children are reprehensible. I know not what could bring an adult to sexually abuse a child to produce or consume child pornography. But I do know there is something that U.S. Attorneys can and will do about it,” said U.S. Attorney Trent Shores. “With the help of our law enforcement partners, we will identify these child predators and prosecute them to the fullest extent of the law to ensure that they answer for their vile crimes. That is what happened in this case, and a just result was reached. Thanks to the hard work of dedicated investigators and prosecutors, there is one less predator on the streets.”
U.S. District Judge Gregory K. Frizzell presided over the trial and set sentencing for Jan. 30, 2020. Rodriguez faces a maximum penalty of 30 years in prison, a $250,000 fine, and at least 5 years of supervised release for the sexual exploitation of a child. He further faces a maximum penalty of 20 years in prison, a $250,000 fine, and at least 5 years of supervised release for possession of child pornography.
The Wagoner Police Department and FBI investigated the case. Assistant U.S. Attorneys Shannon Cozzoni, Reagan V. Reininger, and Dennis A. Fries are prosecuting the case.
Vaping Devices, Cartridges will be Accepted During Drug Take Back DayRead the Press Release
MACON, Ga. —The Drug Enforcement Administration’s (DEA) Atlanta Divisional Office will accept vaping devices and cartridges for the first time at any of its drop off locations during the 18th National Prescription Drug Take Back Day on Saturday, October 26, 2019 from 10 a.m. to 2 p.m. local time. This one-day event will make it convenient for the public to rid their homes of potentially dangerous prescription drugs. At the event, Georgians will be able to drop off their expired, unused and unwanted pills at sites across the state free of charge, no questions asked. By doing so, they will help prevent prescription drug abuse and theft. Georgians participating in the DEA’s last take-back held on April 27, 2019, yielded 11,114 pounds of unwanted or expired medications for safe and proper disposal at sites set up throughout the state. The public can find a nearby collection site at www.DEATakeBack.com or by calling 800-882-9539.
“The disposal of unwanted/unused prescription medication is a common sense way to prevent medicine from being abused or diverted from its intended use. I encourage all citizens to take advantage of this free service offered by the DEA,” said Charlie Peeler, the U.S. Attorney for the Middle District of Georgia. “If your community does not have a nearby Take Back Day location, there are several year-round safe drug disposal sites located across the Middle District that citizens can seek out, including in courthouses, outside law enforcement offices and other locations. We all need to work together to end easy access to these highly addictive drugs.”
“DEA’s 18th Prescription Drug Take Back event will allow Americans to safely and properly dispose of their unwanted/unused prescription medications,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “During Saturday’s Take Back event, DEA is taking a proactive step by collecting vaping devices and cartridges as we work with our partners to combat this emerging public health threat to the nation’s youth.”
Vaping devices and cartridges will be accepted at any of the Georgia drop-off locations during National Prescription Drug Take Back Day. It is important to note that the DEA cannot accept devices containing lithium ion batteries. If batteries cannot be removed prior to drop-off, individuals should consult with stores that recycle lithium ion batteries. Concerns have been raised across the United States over illnesses and death caused by vaping and the high youth vaping initiation rates. In an effort to support a healthy lifestyle and energetic population, especially amongst America’s youth, the DEA is committed to doing all it can to help safely dispose of vaping devices and substances.
Now in its tenth year, DEA has collected a total of more than 11 million pounds (almost 6,000 tons) of expired, unused and unwanted prescription medications through its Take Back Day events. DEA is continuing to register law enforcement partners and collection sites for the upcoming Take Back Day. As of Oct. 15, more than 4,500 registered law enforcement partners will assist with more than 5,250 registered sites and 135 tribal locations across the country, with more being added each day. Collection sites will be open from 10 a.m. to 2 p.m. local time. The public can find a nearby collection site at www.DEATakeBack.com or by calling 800-882-9539.
For more information about the harms of youth vaping, please visit: https://www.justthinktwice.gov/facts/vaping-what-you-should-know. The DEA also encourages parents, along with their children, to educate themselves about the dangers of legal and illegal drugs by visiting DEA’s interactive websites at www.justhinktwice.com, www.GetSmartAboutDrugs.com and www.dea.gov.
Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
U.S. Department of Justice Awards Grant Funds to the YWCA Greater HarrisburgRead the Press Release
HARRISBURG – U.S. Attorney David J. Freed joined Mary Quinn, President and CEO at YWCA Greater Harrisburg today, in announcing $1,375,000 in grant funding by the U.S. Department of Justice to the YWCA Greater Harrisburg to assist victims of human trafficking and to support transitional housing for victims.
The award of $925,000 includes funds to support victims of sex trafficking and labor trafficking, as well as for efforts to increase the capacity of communities to respond to human trafficking through the development of interagency partnerships, professional training, and public awareness activities.
The award of $450,000 includes funds to provide aid to victims of sexual assault, domestic and dating violence, and stalking, who are homeless, or in need of transitional housing or other housing assistance. This includes short-term housing assistance and supportive services, and for whom emergency shelter services or other crisis intervention services are unavailable or insufficient.
“Over the course of my career in public service, I have had the opportunity to work together with the dedicated staff at the YWCA of Harrisburg on behalf of victims of Domestic Violence, Sexual Assault, Human Trafficking and Stalking,” said U.S. Attorney Freed. “With a small staff and a limited budget, the YWCA provides direct services and advocacy to some of our most vulnerable citizens. The two grants that we announce today will further support these efforts. Stable housing is one of the greatest needs for victims and their families. And while the public has become more aware of the scourge of Human Trafficking, we still have work to do, especially in the area of identifying cases and helping victims transition back into society. We are proud to partner with the YWCA of Harrisburg on these vital efforts.”
“The continuation of these grants allows the YWCA Greater Harrisburg to maintain services without interruption to a very vulnerable population,” said President and CEO Quinn. “Our ability to serve victims through evidence based practices and build awareness alongside our partners is directly connected to the health and safety of our communities. The YWCA Greater Harrisburg is a driving force that transform lives and with the support of the community we can create a more just community for all.”
The awards were made by the three grant-making components of the Department of Justice – Office on Violence Against Women, the Office of Community Oriented Policing Services, and the Office of Justice Programs.
About the Office of Community Oriented Policing Services:
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of approximately 130,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.gov.
About the Office of Justice Programs:
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal justice system. More information about OJP and its components can be found at www.ojp.gov.
About the Office on Violence Against Women:
The Office on Violence Against Women provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
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U.S. Attorney’s Office Announces Progress and Ongoing Strategies in Combating Violent Crime in ChicagoRead the Press Release
CHICAGO — John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, today announced continued progress in combating violent crime through a series of targeted strategies as part of the revitalized Project Safe Neighborhoods (PSN) initiative.
PSN is an evidence-based program that serves as the centerpiece of the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, U.S. Attorney Lausch has deployed the PSN program to attack a broad range of violent crime issues facing the district, from complex racketeering and drug trafficking enterprises to the illegal use, possession, or transfer of firearms. PSN resources are also invested in local prevention and reentry programs that seek to implement lasting reductions in crime through community engagement.
“In the past three years our office in Chicago has substantially increased prosecutions of violent criminals, including trigger-pullers, drug traffickers, carjackers, and those who illegally use and possess firearms,” said U.S. Attorney Lausch. “We are using every available federal law enforcement tool to reduce violent crime and help keep our citizens safe.”
“The revitalized Project Safe Neighborhoods program is a major success,” said Attorney General William P. Barr. “It packs a powerful punch by combining advanced data with local leadership, further reducing violence in communities across the country and improving overall public safety. U.S. Attorneys continue to focus their enforcement efforts against the most violent criminals and work in partnership with federal, state, local, and tribal police. The Justice Department’s relationships across the board have never been stronger.”
The revitalized PSN program has enabled the U.S. Attorney’s Office in Chicago to sustain and expand upon significant increases in the prosecution of gun offenders. According to preliminary data for the 2019 Fiscal Year, which ended Sept. 30, 2019, the U.S. Attorney’s Office charged more federal firearm defendants than were charged in each of the prior 15 years. The number of charged firearm defendants in Fiscal Year 2019 was 44% higher than 2018, and 60% higher than 2017, according to preliminary data. These increases are particularly impactful considering that the 2018 and 2017 fiscal years previously stood as the first and second highest years of charged firearm defendants, respectively, in more than a decade.
Crime statistics from the Chicago Police Department (CPD) reveal significant reductions in violent crime in Chicago this year. In the first nine months of 2019, CPD reported a 9% decline in overall crime citywide, driven by double-digit reductions in murders, shootings, robberies and motor vehicle thefts compared to the same period last year.
Over the past two years, the Department of Justice has substantially increased the number of federal prosecutors nationwide to fight violent crime. The Northern District of Illinois received 12 new criminal Assistant U.S. Attorney positions – announced in January, June and October of last year – and U.S. Attorney Lausch has put them to use. Significantly, the U.S. Attorney’s Office created a Gun Crimes Prosecution Team to enhance the prosecution of illegal firearm cases in certain police districts in Chicago. Working collaboratively with federal and local law enforcement, the Gun Crimes Prosecution Team focuses on charging Chicago’s most dangerous criminals quickly after arrest, endeavoring to disrupt the cycle of violence in the neighborhoods most in need. “Our Gun Crimes Prosecution Team has had tremendous success investigating and prosecuting firearms cases from those Chicago neighborhoods suffering from the most violent crime,” said U.S. Attorney Lausch. “Our partnerships with CPD and other state and local law enforcement have never been better.”
Firearm and violent crime investigations in Chicago have also been bolstered by an important tool from the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF): the National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. Federal, state and local law enforcement in Chicago have used NIBIN extensively to help solve violent crimes and prosecute trigger-pullers and other gun offenders.
Through enforcement actions, prosecutions, and community partnerships, the U.S. Attorney’s Office works to reduce violent crime and make neighborhoods safer.
Enforcement Actions and Prosecution Activity
The U.S. Attorney’s Office works closely with U.S. law enforcement agencies, including ATF, Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), Homeland Security Investigations (HSI), Postal Inspection Service (USPIS), Internal Revenue Service-Criminal Investigation (IRS-CI) and U.S. Marshals Service (USMS) to investigate and prosecute a variety of violent crimes. State and local partners in this effort include CPD, Illinois State Police (ISP), Illinois Department of Corrections (IDOC), Cook County State’s Attorney’s Office, Cook County Sheriff’s Office, and numerous local departments throughout northern Illinois.
Following up on the activities our office reported in November of last year and May of this year, our office remains active in fighting violent crime and working to keep safe the people of Chicago through various enforcement actions, prosecutions, and sentencings, as illustrated below:
Gang-Related Prosecutions
- “Combating the unacceptable level of gang violence in Chicago has been a top priority in our office and will continue to be so,” said U.S. Attorney Lausch.
- ANTHONY MORGAN was sentenced in August to four years in prison for serving as a source of firearms for a Black P-Stones gang faction. Morgan had firearms purchased in New Mexico and shipped to Chicago for distribution to the gang. Using NIBIN, law enforcement tied two of the firearms to homicides, including the murder of 9-year-old Tyshawn Lee. ATF and CPD led the probe, with assistance from USPIS and the U.S. Postal Service Office of Inspector General.
- Five members of the Four Corner Hustlers street gang pleaded guilty in August or September to a racketeering conspiracy charge and admitted participating in criminal activities on behalf of the gang. KEITH CHATMAN, MARCHELLO DEVINE, DEANDRE SPANN and RONTRELL TURNIPSEED will be sentenced later this year, while STEVON SIMS was sentenced earlier this month. Several other alleged members of the gang pleaded not guilty and are awaiting trial. The federal probe was led by FBI, ATF and CPD, with assistance from the Illinois Secretary of State Police Department, U.S. Bureau of Prisons, IDOC, and ISP.
- RAYMOND BETTS, an alleged high-level member of the Four Corner Hustlers street gang, and two other suspected members of the gang were arrested in May on drug charges. Betts allegedly led an enforcement or security faction of the Four Corner Hustlers known as the “Body Snatchers.” The multi-year investigation was led by ATF, DEA, CPD and the Cook County Sheriff’s Office, with support of the Organized Crime Drug Enforcement Task Force (OCDETF) and the High Intensity Drug Trafficking Area Task Force (HIDTA).
- Racketeering and murder charges were unsealed in May against four alleged members of a Chicago street gang known as the Milwaukee Kings. The charges allege that each of the defendants committed murder, while one of them also committed two attempted murders. The charges are punishable by a mandatory sentence of life in prison, and the death penalty is also possible. The defendants pleaded not guilty to the charges. They remain detained in federal custody pending a trial date in 2021. The U.S. Attorney’s Office worked closely in the investigation with FBI and CPD.
- Two alleged members of the Evans Mob street gang were charged in April with committing murder in aid of racketeering, a charge punishable by a mandatory sentence of life in prison and a possible penalty of death. The indictment describes the Evans Mob as a criminal organization whose members and associates engaged in numerous acts of violence, including murder, attempted murder and assault, to acquire and preserve territory on Chicago’s South Side. The defendants have pleaded not guilty and remain detained in federal custody. The case was investigated by ATF and CPD.
Firearm Trafficking and Firearm Theft Prosecutions
- “Straw purchasers and firearms traffickers enable unlawful possession of guns and the violence that may follow,” said U.S. Attorney Lausch. “We will continue to work with our law enforcement partners to hold accountable those who engage in illicit firearm transactions.”
- Earlier this month, a Missouri resident pleaded guilty to his role in a Missouri-to-Chicago firearms pipeline. MARCUS INGRAM, of Charleston, Mo., admitted in a plea agreement that he transported five guns from Missouri to Illinois, where co-defendant JAMES SAUNDERS, of Chicago, illegally distributed them for a profit. Saunders also pleaded guilty in the case, as did JUMONTA MOORE, of Sikeston, Mo. The three are awaiting sentencing. A fourth defendant, DERRICK CLAIBORNE, pleaded not guilty and is awaiting trial. The probe was led by ATF and CPD.
- Earlier this month, two Chicago men were each sentenced to nine years in prison for stealing 366 handguns from a shipping yard in Memphis, Tenn., and transporting them in a U-Haul van to the Chicago area. Law enforcement safely recovered all of the firearms. The case was prosecuted in the Western District of Tennessee after an investigation by the U.S. Attorneys’ Offices in Chicago and Memphis, ATF and FBI, and the police departments of Memphis, Tenn., and Midlothian, Ill.
- Last month, two men were charged with conspiring to straw purchase 19 handguns in Wisconsin and re-sell or distribute them in Chicago. The Wisconsin purchases occurred at retail stores, pawn shops and gun shows. KIRK VALENTINE of La Crosse, Wisc., and FRANCISCO ROCHA, of Chicago, pleaded not guilty to the charges. FBI and CPD led the investigation, which included use of NIBIN.
- Last month, two Minneapolis residents were charged in the District of Minnesota for their roles in illegally supplying a firearm that was used in shootings in Minneapolis and Chicago, including the shooting of a CPD officer. The investigation was conducted by ATF, CPD, and the Minneapolis Police Department, with assistance from the U.S. Attorney’s Office in Chicago. The case was made possible by investigative leads generated from NIBIN.
- An eleven-year prison sentence was handed down in May for a suburban Chicago man who described himself as a “one stop shop” for firearms. ANTOINE JACKSON sold an AK-47 rifle, two handguns, ammunition and heroin to an individual who, unbeknownst to Jackson, was an informant working on behalf of law enforcement. ATF conducted the probe, with assistance from CPD and police departments in Matteson and Tinley Park, as well as the Will County Metropolitan Area Narcotics Squad.
- A federal jury in April convicted OMRAN ISMAIL of conspiring to straw purchase several handguns on behalf of another individual. Ismail faces up to ten years in prison when he is sentenced on Dec. 3, 2019. HSI, CPD, and U.S. Customs and Border Protection participated in the probe.
Carjacking Prosecutions
- “Our message to would-be carjackers in Chicago is simple: Committing a senseless act of violence like carjacking could earn you a home in federal prison for a long time,” said U.S. Attorney Lausch.
- A trial date of April 6, 2020, has been set for four defendants charged in connection with a vehicle theft at gunpoint in Chicago’s Edgewater neighborhood. Three of the defendants were charged with using, carrying and brandishing a firearm in connection with a violent crime - an offense punishable by up to life in prison. The defendants have pleaded not guilty. The probe was led by FBI and CPD, with assistance from the Cook County State’s Attorney’s Office.
- In August, two men who carjacked a sport-utility vehicle at gunpoint on Chicago’s Near North Side were each sentenced to eleven years in federal prison. During the carjacking, the Jeep’s owner was struck on the back of the head with a gun, while a second gun was pointed at the heads of both the owner and a passenger. The case was investigated by the Chicago 11th District Violent Crimes Task Force, which consists of agents and officers from the FBI, CPD, ATF, DEA and HSI.
- BRIAN MCKENZIE, of Chicago, remains detained in federal custody for allegedly using a handgun to carjack a Dodge Charger in a restaurant parking lot in suburban Orland Park. He pleaded not guilty to charges brought earlier this year. The case was investigated by ATF and the police departments of Orland Park and Oak Forest.
- Three defendants remain detained in federal custody while awaiting trial on a carjacking indictment returned earlier this year. The charges allege that the trio violently took a Land Rover from a driver in the Wicker Park neighborhood of Chicago. They have pleaded not guilty. The case was investigated by CPD, ATF, FBI, Cook County State’s Attorney’s Office, and ISP.
- KASHIF DUKES was charged earlier this year with carjacking a Mercedes-Benz in Chicago’s Bronzeville neighborhood. Dukes allegedly displayed a firearm and threatened the driver before taking the car. Dukes pleaded not guilty and remains detained in federal custody awaiting trial. ATF, FBI and CPD led the probe.
Illegal Possession of Firearms Prosecutions
According to preliminary data, 284 individuals were charged with federal gun crimes in the Northern District of Illinois in Fiscal Year 2019 – a 44% increase over the number of firearm defendants charged in FY18, and a 60% increase over FY17.
“Our goal as prosecutors is not simply to bring more cases against more defendants, but rather to reduce the number of homicides and shootings in the Northern District of Illinois, and the way to do that is by bringing quality, impactful cases,” said U.S. Attorney Lausch. “If you are a felon and thinking about picking up a gun in Chicago, you should expect to be prosecuted to the fullest extent of the law, and face the possibility of going to federal prison for a long time.”
Examples of illegal gun possession cases in federal court during FY19 include:
- Earlier this month, ANTWON BURTON was sentenced to more than five years in federal prison for illegally possessing a loaded handgun in Chicago. Burton had previously been convicted of multiple felonies, including firearm offenses, and was on parole at the time of this offense. Federal law prohibits felons from possessing guns. The case was investigated by CPD and ATF.
- A federal grand jury in August indicted a convicted felon for allegedly illegally possessing more than 50 shotguns, rifles and handguns in his Chicago home. HENRY REYES was previously convicted of murder and was not lawfully allowed to possess a firearm, the charges allege. Reyes pleaded not guilty to the charges and is awaiting trial. ATF and CPD conducted the investigation.
- A convicted felon was charged in federal court in August with illegally possessing a semi-automatic rifle at the Jesse Brown VA Medical Center in Chicago. Law enforcement officers saw BERNARD HARVEY, of Indianapolis, Ind., in the clinic area of the VA and ordered him to drop the rifle, which he did. The officers then ordered Harvey to the ground and placed him under arrest. FBI, CPD and the Jesse Brown VA Police Department conducted the probe.
- JORDAN WATKINS, of Chicago, was sentenced in July to more than six years in prison for illegally possessing a loaded rifle on an elevated train platform in Chicago’s Lakeview neighborhood. Watkins, who at the time was on parole for a felony conviction, was also carrying a messenger bag that contained two 30-round magazines. FBI and CPD led the investigation, with assistance from IDOC.
- A federal grand jury in July charged GASTON TUCKER, of Chicago, with illegally possessing a loaded handgun in the Old Town neighborhood of Chicago. Tucker was previously convicted of aggravated battery with a firearm, a felony for which he was on parole at the time of the alleged federal offense. Tucker pleaded not guilty to the federal charge and is awaiting trial. FBI and CPD investigated the case.
- ANTHONY DRAYTON was sentenced in June to seven years in prison for illegally possessing a loaded semi-automatic handgun and pointing it at a car full of people, including a 4-year-old child, outside a Chicago convenience store. CPD officers were called to the area and quickly arrested Drayton. ATF assisted in the probe.
Other Significant Firearm-Related Prosecutions
- Three Chicago men were charged in August with participating in a murder-for-hire conspiracy that resulted in two fatal shootings in Chicago. The defendants allegedly believed one of the victims was cooperating with law enforcement in a drug investigation. Law enforcement recovered the gun believed to have been used in the murders after it was discovered on a Minnesota resident who was arrested in Wisconsin. ATF, CPD, IRS-CI, DEA, Cook County State’s Attorney’s Office, Cook County Sheriff’s Office, FBI, HIDTA and OCDETF participated in the investigation.
- A jury in June convicted ERNESTO GODINEZ on firearm and assault charges for shooting an ATF agent who was conducting a covert law enforcement activity in Chicago. The agent was wounded but survived, and he testified at trial. Godinez, of Chicago, will be sentenced later this year. The assault charge is punishable by up to 20 years in prison, while the firearm charge is punishable by a minimum sentence of ten years in prison and must be served after any term of imprisonment imposed for the assault. The case was worked by ATF, CPD, USMS, FBI, HSI, DEA and ISP.
Opioid Prosecutions
Opioids are a class of highly addictive drugs that includes heroin, fentanyl, and prescription painkillers such as oxycodone and hydrocodone. The safety of Americans is being threatened by unprecedented levels of opioid misuse, addiction, and overdose. The Department of Justice is committed to using every available tool to enforce federal drug laws and combat the opioid epidemic. In the Northern District of Illinois, the U.S. Attorney’s Office has deployed a strategy of aggressive investigations and prosecutions of those who are most responsible for this epidemic. This includes prosecuting the leaders of traditional drug trafficking organizations, as well as rogue healthcare providers, pharmacists, pharmacist technicians, and others who contribute to the supply and overuse of opioids.
“This is the deadliest drug crisis in American history,” said U.S. Attorney Lausch. “We are actively attacking the opioid crisis from all investigative and prosecutorial angles.”
Examples of recent opioid prosecutions in Chicago include:
- Sales of heroin and fentanyl were the target of a joint federal and state investigation, dubbed “Operation Road Rage,” that resulted in charges in March against 35 individuals. During the multi-year probe, law enforcement seized a kilogram of heroin, most of which contained fentanyl. Many of the defendants allegedly distributed heroin and fentanyl-laced heroin in the Chicago area, with drivers dispatched to make deliveries after customers placed orders on a telephone hotline. The defendants have pleaded not guilty. The investigation was jointly conducted by OCDETF and HIDTA, with assistance from the Cook County State’s Attorney’s Office, DEA, IRS-CI and CPD.
- JACQUELINE GREEN, a former technician at a Chicago pharmacy, was sentenced in July to a year in prison for stealing thousands of pills of hydrocodone and selling them for a profit. Green, of Chicago, and co-defendant ELIZABETH CRUZ, of Stone Park, received at least $10,800 in proceeds from selling the stolen pills. Cruz pleaded guilty and will be sentenced on Nov. 20, 2019. DEA conducted the investigation.
- The former owner of a Chicago medical clinic was sentenced in May to more than six years in prison for selling opioid prescriptions to patients whom he knew lacked a legitimate medical need for the drugs. MOHAMMED SHARIFF directed a clinic physician, DR. THEODORE GALVANI, to prescribe oxycodone, hydrocodone, and other powerful opioids without conducting a physical exam or performing any medical tests. Dr. Galvani pleaded guilty and was sentenced in July to six years in prison. The investigation was conducted by DEA, FBI, IRS-CI, and the U.S. Department of Health and Human Services Office of Inspector General.
Other Significant Drug Trafficking Prosecutions
The U.S. Attorney’s Office targets traffickers who bring illegal drugs into Illinois from other states or countries, with a focus on organizations or individuals who use guns, violence and threats of violence to protect and promote their illegal businesses. The U.S. Attorney’s Office works directly with the Cook County State’s Attorney’s Office to ensure that individuals trafficking drugs are charged with appropriate offenses in either federal or state court. Examples of recent drug trafficking prosecutions include:
- Federal law enforcement announced this month that it seized more than 14 kilograms of cocaine and 15 firearms as part of an investigation that dismantled a Texas-to-Chicago narcotics pipeline and resulted in charges against ten defendants. During the investigation, dubbed “Operation Grapevine,” authorities shut down a drug stash house in a lakefront condominium in Chicago. The probe was led by HIDTA, with support from OCDETF. Also participating were DEA, ATF, FBI, HSI, and CPD.
- Two high-ranking members of the Sinaloa drug cartel in Mexico were recently sentenced for their roles in transporting large amounts of cocaine and other drugs to the Chicago area. JESUS RAUL BELTRAN LEON and VICENTE ZAMBADA-NIEBLA are among 20 members of the Sinaloa or Beltran-Leyva drug cartels to be charged in federal court in Chicago. The Chicago-based investigation, led by DEA, has resulted in seizures of approximately $30.8 million, approximately eleven tons of cocaine, 265 kilograms of methamphetamines, and 78 kilograms of heroin. Beltran Leon was sentenced in August to 28 years in prison, while Zambada-Niebla was sentenced in May to 15 years.
- A federal judge in July sentenced MARIO HERRERA, formerly of Chicago, to five years in prison for laundering illegal drug proceeds on behalf of two cartels in Mexico. Herrera was among 30 defendants charged as part of the Chicago-based federal investigation dubbed “Operation King’s Gold.” The conspirators laundered more than $100 million in narcotics proceeds on behalf of the Jalisco New Generation and Sinaloa cartels. HSI, IRS-CI and ATF led the investigation, with assistance from DEA, CPD, USMS, Cook County Sheriff’s Office, DuPage County Sheriff’s Office, Buffalo Grove Police Department, and the Joliet Metropolitan Area Narcotics Squad.
Community Partnerships
The revitalized PSN program continues to invest resources in many violence-prevention initiatives. Members of the U.S. Attorney’s Office have participated in offender notification meetings and youth outreach forums. Offender notification meetings provide an opportunity for individuals who have been convicted of a state or federal offense to make an informed choice not to engage in further criminal activity.
Researchers at Arizona State University found that the forums have a positive influence on the offenders’ perception of police and help create an understanding that criminal activity results in a higher risk to return to prison. Researchers at Yale University found that ex-offenders who attend an offender notification meeting in Chicago are 30% less likely to commit a new offense than those who did not attend a meeting.
The quarterly youth forums assist children aged 13-17 to identify a path other than gang membership. The youth forums are conducted in partnership with CPD, the Cook County Juvenile Temporary Detention Center, and the University of Chicago Crime Lab, which tracks the progress of the children to assess results.
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To learn more about Project Safe Neighborhoods in the Northern District of Illinois, visit https://www.justice.gov/usao-ndil/programs/psn.
U.S. Attorney David C. Joseph Encourages Citizens to Participate in DEA's 18th National Prescription Drug Take Back DayRead the Press Release
SHREVEPORT, LAFAYETTE, ALEXANDRIA, LAKE CHARLES, MONROE, La. – U.S. Attorney David C. Joseph joins the Drug Enforcement Administration in announcing that on Saturday, October 26, 2019, between 10 a.m. and 2 p.m., DEA will hold its 18th National Prescription Drug Take Back Day. The biannual event is free of charge, no questions asked, and gives the public an opportunity to dispose of their expired, unused, and unwanted prescription medications at collection sites operated by local law enforcement agencies and community partners across the country and here in the Western District of Louisiana.
For the first time, DEA will now accept vaping devices and cartridges at any of its drop off locations during National Prescription Drug Take Back Day. It is important to note that DEA cannot accept devices containing lithium ion batteries. If batteries cannot be removed prior to drop-off, DEA encourages individuals to consult with stores that recycle lithium ion batteries.
Concerns have been raised across the United States over illnesses and death caused by vaping and the high youth vaping initiation rates. In an effort to support a healthy lifestyle and energetic population, especially amongst America’s youth, DEA is committed to doing all it can to help safely dispose of vaping devices and substances.
This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse, and abuse. Rates of prescription drug abuse in the United States are alarmingly high, as are the number of accidental poisonings and overdoses because of these drugs, and studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. DEA launched its prescription drug take back program when both the Environmental Protection Agency and the Food and Drug Administration advised the public that flushing these drugs down the toilet or throwing them in the trash posed potential safety and health hazards.
“I am pleased to partner with DEA in supporting this event, and I encourage the public to do their part,” stated Western District of Louisiana U.S. Attorney David C. Joseph. “Please take advantage of this opportunity to dispose of these dangerous substances and keep them away from those who would abuse them or children who might accidentally take them. Let’s all do our part to fight the nation’s opioid epidemic.”
“Prescription drugs often end up in the wrong hands, feeding an epidemic that kills more Americans than car accidents. DEA’s Take Back initiative provides citizens an easy and safe way to dispose of unused and unwanted prescription medications. This year, we are taking it a step further by accepting vaping devices and cartridges as we work with our federal partners to combat this emerging public health threat to the nation’s youth,” said DEA Special Agent in Charge Brad L. Byerley.
As a result of the past 17 National Prescription Drug Take Back Days, DEA, in conjunction with its state, local and tribal law enforcement partners, has removed nearly 12 million pounds (more than 5,900 tons) of medications from circulation. Last April alone, DEA collected nearly 940,000 pounds (or 469 tons) of prescription drugs, more than twice the weight of the Statute of Liberty – with 6,824 pounds coming from Louisiana.
Collection sites throughout the Western District of Louisiana can be found at: www.DEATakeBack.com where you can search by zip code and city or call 800-882-9539. (DEA cannot accept liquids, needles, or sharps, only pills or patches.) Some collection sites include the following:
Shreveport
- Caddo Parish Sheriff’s Office Safety Town, 8910 Jewella Ave.
Lafayette
- Lafayette Parish Sheriff’s Office Public Safety Complex, 1805 W. Willow St.
Alexandria
- Alexandria Police Department, 1000 Bolton Ave.
Lake Charles
- Lake Charles Police Department, Lake Charles Civic Center, 900 Lakeshore Dr.
- Louisiana State Police, Troop D, 805 Main Street
- Westlake Police Department, 2405 Guillory Street
Monroe
- Ouachita Parish Sheriff’s Office, 400 St. John St.
- Monroe Police Department, 700 Wood St.
- West Monroe Police Department, 2301 North 7th Street
- Louisiana State Police, Troop F, 1240 Louisiana 594
For more information about the harms of youth vaping, please visit: https://www.justthinktwice.gov/facts/vaping-what-you-should-know. Parents and children are also encouraged to educate themselves about the dangers of drugs by visiting the following websites: www.dea.gov, www.GetSmartAboutDrugs.com, and www.campusdrugprevention.gov.
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Two men indicted on methamphetamine chargesRead the Press Release
An Ashtabula man was indicted on methamphetamine charges.
Dominic C. Landolfi, 37, was indicted on one count of possession with intent to distribute controlled substances. He possessed at least 50 grams of methamphetamine on September 5, 2018, with the purpose of distributing the drugs, according to the indictment.
In an otherwise unrelated case, a Colorado man was also indicted on methamphetamine charges.
Michael A. Pritchard, 45, of Peyton, Colorado, was indicted on one count of possession with intent to distribute controlled substances. He possessed at least 50 grams of methamphetamine on July 29, 2019, with the purpose of distributing the drugs, according to the indictment.
If convicted, the defendants’ sentences will be determined by the Court after reviewing factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases, it will be less than the maximum.
The Drug Enforcement Administration investigated both cases, which are being prosecuted by Assistant U.S. Attorney Segev Phillips.
A superseding indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Two Plead Guilty to Fentanyl Distribution ChargesRead the Press Release
PROVIDENCE – Two men charged in separate, but related, criminal cases pleaded guilty on Wednesday in federal court in Providence to fentanyl distribution charges, admitting that their actions contributed to the death of the buyer, a Massachusetts man.
Appearing before U.S. District Court Chief Judge William E. Smith, David Grimaldi, 24 of Coventry, pleaded guilty to distribution of fentanyl, admitting to the Court that he engaged the assistance of an associate, Robert K. Bell, 24, of Warwick, who pleaded guilty on Wednesday to aiding and abetting the distribution of fentanyl, to help him locate a buyer for pills that he wanted to sell.
According to information presented to the Court, based on the arrangements made by Bell, Grimaldi met that buyer in a West Warwick parking lot, where he distributed three pills marked and colored to look like oxycodone tablets. In reality, the pills were laced with fentanyl. Grimaldi admitted that he watched while the buyer swallowed half of one pill. Minutes later, the buyer, a Massachusetts man, became unresponsive. He was subsequently pronounced dead later that day at Kent County Hospital. Fentanyl was found in his bloodstream.
At a separate hearing before Chief Judge Smith immediately after Grimaldi’s plea, Bell likewise admitted to his role in arranging for the drug transaction, including the type of drug to be delivered, the price, and the time and location for the meeting.
Both defendants admitted that their criminal actions contributed to the death of the buyer.
Grimaldi and Bell’s guilty pleas are announced by United States Attorney Aaron L. Weisman, West Warwick Police Chief Colonel Mark A. Knott, and Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division Brian D. Boyle.
Grimaldi and Bell will be sentenced by Chief Judge Smith on January 28, 2020.
The cases are being prosecuted by Assistant U.S. Attorneys Paul F. Daly, Jr., and Zachary A. Cunha.
The matter was investigated by the West Warwick Police Department and the Rhode Island DEA Drug Task Force.
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Two Foreign Shipping Companies and First Assistant Engineer Charged with Offenses Related to Oily Waste DumpsRead the Press Release
OAKLAND - A federal grand jury in Oakland indicted FGL Moon Marshall Limited (“FGL Moon”), Unix Line Pte Ltd. (“Unix”), and Gilbert Dela Cruz today, charging the defendants with failing to maintain an Oil Record Book for bilge water discharges into the sea and with obstruction of justice, announced United States Attorney David L. Anderson and U.S. Coast Guard Investigative Service Special Agent in Charge Kelly S. Hoyle.
The indictment alleges that the Zao Galaxy, a 16,408 gross-ton, ocean-going motor tanker, was owned by FGL Moon Marshall Limited, a Marshall Islands company, and operated by Unix Line Pte Ltd., a Singapore company. An affidavit filed by an agent of the Coast Guard Investigative Service in connection with an earlier-filed criminal complaint further alleges that, on January 21, 2019, the Zao Galaxy set sail from the Philippines and, on February 10, 2019, the ship arrived at a port in Richmond, Calif., bearing a cargo of palm oil. According to the indictment, Dela Cruz, 37, a citizen of the Philippines, was the First Assistant Engineer on the Zao Galaxy’s vessel crew and acted as an employee and agent of both FGL Moon and Unix. Dela Cruz was responsible for making entries into the ship’s Oil Record Book and for the operation of the ship’s equipment used for treatment and discharge of oil-contaminated water.
The complaint affidavit further alleges that, when the ship reached Richmond, examiners from the Coast Guard boarded the ship to conduct an inspection and previously-scheduled examination. As a result of that examination, investigators discovered videos showing that approximately four illegal overboard discharges of oily waste had occurred from the Zao Galaxy’s engine room between the last week of January 2019 and February 11, 2019. According to the affidavit, the ship’s location data suggested that one of the illegal dumping events occurred when the Zao Galaxy was approximately three nautical miles west of the Golden Gate Bridge.
The complaint affidavit additionally alleges that Dela Cruz had ordered another crew member to perform the illegal overboard discharge at night to facilitate the emptying, cleaning, and repainting of the Zao Galaxy’s Primary Bilge Tank prior to the Coast Guard’s examination. Dela Cruz is also alleged to have ordered another crew member to use a flange/hose system to facilitate the dumping of the oily waste while avoiding the ship’s normal oily waste management system. The Zao Galaxy’s Oil Record Book contained no entries documenting these illegal discharges of oily waste. The indictment also alleges that Dela Cruz attempted to persuade a lower-level crewmember to withhold relevant information regarding the dumping from the Coast Guard.
Complaints and indictments merely allege that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants face the following maximum penalties:
33 U.S.C. § 1908(a)
- 6 years imprisonment for Dela Cruz
- $250,000 for Dela Cruz; $500,000 for FGL and Unix
- 3 years of supervised release
- Potential forfeiture
- $100 special assessment
18 U.S.C. § 1519
- 20 years imprisonment for Dela Cruz
- $250,000 for Dela Cruz; $500,000 for FGL and Unix
- 3 years of supervised release
- Potential forfeiture
- $100 special assessment
18 U.S.C. § 1505
- 5 years imprisonment for Dela Cruz
- $250,000 for Dela Cruz; $500,000 for FGL and Unix
- 3 years of supervised release
- Potential forfeiture
- $100 special assessment
However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The defendants are scheduled to appear on October 29, 2019, at 10:30 a.m., for an initial federal court appearance and arraignment before U.S. Magistrate Judge Donna Ryu.
The prosecution is being handled by Assistant United States Attorney Katherine Lloyd-Lovett and Special Assistant United States Attorney Andrew Briggs, with the assistance of Jessica Rodriguez. The prosecution is the result of an investigation by the Coast Guard Investigative Service and the Investigations Division of Coast Guard Sector San Francisco.
Twenty-two additional people indicted for conspiracy to traffic large amounts of heroin, cocaine and fentanyl in Toledo areaRead the Press Release
An additional 22 people, most from Toledo, were indicted for their roles in a conspiracy to traffic large amounts of heroin, cocaine and fentanyl in Northwest Ohio.
The 22 people indicted are charged in a superseding indictment unsealed today in U.S. District Court in Toledo. Nine people were previously indicted in May.
Named in the 82-count indictment are: Pedro Negrin, 60, Santino Montoya, 26, Aurelio Seoane-Armada, 60, Jamel Gaines, 31, Corey Goings, 48, Nathaniel Houle, Jr., 23, Korey Parker, 29, Esteban Camejo, 29, Matthew Dale, 30, Kevin Downer, Jr., 23, Emilio Garcia, 25, Roberto Gomez, 26, Jason Hill, 25, Stephon Holcomb, 35, Roy Jackson, Jr., 25, Kelley Lee, 47, Lynna Lopez, 32, Vicente Lopez, Jr., 29, Odell McGee, 35, Anthony McRae, Jr., 24, Todd Miller, 47, Jameer Pratt, 24, Monica Patrick, 28, and Tim Wyse, 56, all of Toledo; Francisco Cabrera-Hernandez, 35, of Casa Grande, Arizona; Luis Perez-Rodriguez, 32, of Phoenix; Keimond Brown, 37, of Maricopa, Arizona; Brittany Loya, 23, of Perrysburg, Ohio; Tony Nichols, 48, of Northwood, Ohio; Jennifer Thomas, 53, of Laveen, Arizona, and Shane Ybarra, Sr., 35, of Walbridge, Ohio.
All 31 defendants are charged with one count of conspiracy to possess with intent to distribute at least one kilogram of heroin, five kilograms of cocaine, 280 grams of crack cocaine and 400 grams of fentanyl.
Additional charges include being a felon in possession of a firearm, maintaining drug-involved premises, interstate travel and transportation in aid of racketeering enterprises, making false statements and use of a communications facility to facilitate a drug conspiracy.
According to the indictment:
Negrin allegedly obtained heroin, cocaine and fentanyl from various suppliers, including Hernandez and Rodriguez, in Mexico, Arizona, Florida and Michigan. Hernandez used motor vehicles with special secret “trap” compartments to transport the drugs from Arizona to Ohio.
Negrin then allegedly distributed the drugs to numerous other suppliers, including Montaya, Gaines, Camejo, Holcomb, Lee, Wyse and Ybarra. Those suppliers, in turn, distributed the narcotics to other drug dealers.
Members of the conspiracy used several different residences in the Toledo area to store, package and distribute the narcotics and subsequent cash.
Prosecutors are seeking to forfeit more than $400,000 in cash and several firearms seized as part of the investigation.
U.S. Attorney Justin Herdman said: “This group brought deadly fentanyl, heroin and cocaine to Toledo from Mexico and other states. Not surprisingly, firearms and large amounts of cash were seized as part of this investigation. We will use every tool available to us to prosecute those who import and sell the drugs killing our neighbors, and who illegally have firearms as part of their operation.”
“A multi-year, multi-agency investigation has resulted in the seizure of hundreds of thousands of dollars in cash, numerous weapons and large loads of dangerous, illegal drugs,” said FBI Special Agent in Charge Eric Smith. “This collaborative law enforcement effort has dismantled a large-scale drug trafficking organization that has brought danger to our community for years. These individuals will now face the justice system and be held accountable for their numerous crimes. Thanks to the community and our law enforcement partners -- a job well done.”
“Today’s operation is the culmination of a multi-year organized crime drug trafficking investigation by local, state, and federal law enforcement partners” said Toledo Police George Kral. “I am proud of all the detectives, deputies, and special agents involved in this investigation – especially members of the Toledo Metro Drug Task Force. It is because of their work the Negrin drug trafficking organization has been effectively dismantled.”
If convicted, the defendants’ sentences will be determined by the Court after reviewing factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases, it will be less than the maximum.
The Federal Bureau of Investigation and Toledo Metro Drug Task Force investigated the case. It is being prosecuted by Assistant U.S. Attorneys Alissa M. Sterling and Matthew D. Simko.
A superseding indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three Romanian Nationals Sentenced for Racketeering Conspiracy, ATM Skimming and Aggravated ID TheftRead the Press Release
BOSTON – Three Romanian nationals were sentenced in federal court in Boston yesterday in connection with an ATM skimming scheme operating throughout Massachusetts and other states including Connecticut, New York and South Carolina.
Ion Bonculescu, 26, Ion Vaduva, 39, and Florin Hornea, 38, were sentenced by U.S. District Court Judge William G. Young to 50, 24, and 36 months in prison, respectively, and three years of supervised release each. Judge Young also ordered restitution in the amount of $80,292 for Bonculescu, $141,635 for Vaduva, and $209,894 for Hornea. The defendants will face deportation proceedings upon completion of their sentence.
In October 2018, Vaduva pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, conspiracy to use counterfeit access devices, and aggravated identity theft. In a separate hearing, Ion Vaduva, 38, and Florin Hornea, 37, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity and conspiracy to use counterfeit access devices. Hornea also pleaded guilty to aggravated identity theft. In May 2017, the defendants and eleven others were indicted in connection with the ATM skimming scheme. A superseding indictment later added another defendant.
The defendants, except for one, were members of the Hornea Crew, led by Constantin Denis Hornea and Ludemis Hornea, and engaged in ATM skimming – obtaining debit card numbers and PINs from unsuspecting bank customers, creating counterfeit cards, and making unauthorized withdrawals from the victims’ bank accounts.
Over a period of 18 months, the Crew installed skimming devices and made unauthorized withdrawals in seven states, including Massachusetts. In particular, members of the Crew installed skimming devices in the following locations: Amherst, Bellingham, Billerica, Braintree, Chicopee, Quincy, Southwick, Waltham, Weymouth, and Whately, Mass.; Enfield, Conn.; Columbia, Greenville, Greenwood, Mauldin, and Saluda, S.C.; Savannah, Ga.; and Yadkinville, N.C. The Crew made unauthorized withdrawals at ATMs in approximately 29 Massachusetts towns; seven Connecticut towns; six New York towns; Salem, N.H.; and Sumter, S.C.
Members of the Hornea Crew transferred money throughout the United States and to Romania and the People’s Republic of China. Some of those transfers were for the purchase of skimming devices and related components from abroad.
In May 2018, Constantin Hornea was sentenced to 65 months in prison, three years of supervised release and ordered to pay $242,141 in restitution and a money judgment of $54,260. Ludemis Hornea was sentenced to 42 months in prison, which includes credit for 15 months served on a state sentence, three years of supervised release and ordered to pay $57,422 in restitution and a money judgment of $11,124.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement today. Assistance with the investigation was also provided by the Internal Revenue Service’s Criminal Investigations in Boston; U.S. Secret Service; U.S. Postal Service; Massachusetts Department of Correction; U.S. Customs and Border Protection; the Amherst, Billerica, Braintree, Boston, Quincy, Southwick, Waltham, Whately, and Westwood Police Departments; Connecticut State Police; Greenwich Police Department; the New York City Police Department; Houston Police Department; South Carolina Law Enforcement Division; Richland County (South Carolina) Sheriff’s Department; Florence and Saluda (South Carolina) Police Departments; and the Solicitor’s Offices of Greenville and Saluda Counties. Assistant U.S. Attorney Timothy E. Moran of Lelling’s Organized Crime and Gang Unit prosecuted the case.
Three Charged with Distributing Methamphetamine in Chittenden CountyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Shane Casey, 50, Kimberly Jones, 41, and Hamza Sharifshoble, 25, all of Chittenden County, VT, were indicted today by the federal grand jury on charges of distributing methamphetamine in violation of the Controlled Substances Act. If convicted, the defendants each face a maximum possible penalty of 20 years in prison and fines of up to $1,000,000 on each count.
According to court documents, Homeland Security Investigations and the Vermont Drug Task Force led an investigation into the distribution of methamphetamine in the Chittenden County, Vermont area. The investigation included multiple purchases of methamphetamine from Casey, Jones, and Sharifshoble from April 2019 through October 2019.
On October 17, 2019, agents with Homeland Security Investigations and the Vermont Drug Task Force arrested Sharifshoble for distribution of methamphetamine and also executed a federal search warrant on his apartment in South Burlington, Vermont. In the apartment, law enforcement found various paraphernalia consistent with illegal narcotics trafficking in addition to methamphetamine, heroin, and cocaine base.
Sharifshoble had his initial appearance before United States Magistrate Judge John M. Conroy in Burlington on October 18, 2019 on a single count of methamphetamine distribution. Sharifshoble was remanded to the custody of the U.S. Marshals Service. In today’s indictment, Sharifshoble faces four counts of distribution of methamphetamine and one count of aiding and abetting distribution of methamphetamine.
Shane Casey, who is in custody in Massachusetts on state charges, faces five counts of distribution of methamphetamine in violation of the Controlled Substances Act. Kimberly Jones, who is also in custody in Massachusetts on state charges, faces one count of distribution of methamphetamine.
United States Attorney Christina E. Nolan commended the collaborative investigative efforts of Homeland Security Investigations and the Vermont Drug Task Force.The charges against Casey, Jones, and Sharifshoble are merely accusations and the defendants are presumed innocent unless and until they are proven guilty. Any sentences in this case will be advised by the Federal Sentencing Guidelines.
Sharishoble is represented by Elizabeth Quinn, Esq. Counsel for Casey and Jones have not been identified at this time. Assistant U.S. Attorney Nikolas P. Kerest represents the United States.
Third Freight Transportation Executive Pleads Guilty to Antitrust ChargeRead the Press Release
Francis Alvarez, owner of a large freight forwarding company, pleaded guilty to an antitrust charge for her role in a multi-year, nationwide conspiracy to fix prices for international freight forwarding services, the Department of Justice announced today.
According to a one-count felony charge filed in the Southern District of Florida in Miami, Florida, Alvarez and her co-conspirators agreed to fix, raise and maintain prices for freight forwarding services provided in the United States and elsewhere from at least as early as September 2010 until at least August 2014. Alvarez is president and owner of a Houston-based freight forwarding company.
In addition to admitting to participating in this conspiracy, Alvarez has agreed to pay a criminal fine and cooperate with the ongoing investigation. The terms of the plea agreement are subject to approval of the court. Alvarez will be sentenced at a later date.
Alvarez is the third individual to face charges for participating in this conspiracy. Two of Alvarez’s co-conspirators, Roberto Dip and Jason Handal, were charged and pleaded guilty in November 2018. In June 2019, Dip and Handal were sentenced to eighteen- and fifteen-month prison terms, respectively, for their roles in the scheme.
“Alvarez and her co-conspirators cheated American consumers shipping goods to Honduras by conspiring to raise prices and pocket the proceeds of their illegal scheme,” said Assistant Attorney General Makan Delrahim of the Justice Department's Antitrust Division. “The Antitrust Division is committed to working with our law enforcement partners to protect those consumers and restore integrity to this market.”
“This is an example of businesses and their executives manipulating commerce and deceiving the American public for their own financial gain,” said Special Agent in Charge Bryan A. Vorndran of the FBI’s New Orleans Office. “Francis Alvarez and her co-conspirators violated U.S. antitrust laws. Using their knowledge and experience in the freight-forwarding trade, they exploited consumers through an elaborate price-fixing scheme. The FBI, along with our partners at the Department of Justice Antitrust Division, remain committed to upholding the Constitution and protecting consumers against fraud, deceit and illegal activity.”
Freight forwarders arrange for and manage the shipment of goods, including by receiving, packaging and otherwise preparing cargo destined for international ocean shipment.
Alvarez is charged with price fixing in violation of the Sherman Act, which carries a maximum sentence of 10 years in prison and a $1 million fine for individuals. The maximum fine for an individual may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
The ongoing investigation into price fixing in the international freight forwarding industry is being conducted by the Antitrust Division’s Washington Criminal I Section and the FBI’s New Orleans Field Office. Anyone with information in connection with this investigation is urged to call the Antitrust Division’s Washington Criminal I Section at 202-307-6694, visit www.justice.gov/atr/contact/newcase.html or call the FBI tip line at 415-553-7400.
Texas Manager Pleads Guilty to Pet Food Fraud, Company Pays $4.5 Million RestitutionRead the Press Release
KANSAS CITY, Mo. – The manager of a Wilbur-Ellis Company processing facility in Texas pleaded guilty in federal court today to his role in a multi-million dollar conspiracy to sell adulterated ingredients to pet food manufacturers, for which the company has already paid more than $4.5 million in restitution.
William Douglas Haning, 48, pleaded guilty before U.S. Chief District Judge Rodney Sippel in the Eastern District of Missouri to one count of conspiracy to introduce adulterated and/or misbranded food into interstate commerce and one count of money laundering.
“For years, William Douglas Haning orchestrated a scheme similar to charging filet mignon prices for ground beef. He unjustly lined his own pockets at the expense of unsuspecting consumers,” said Acting Special Agent in Charge Alicia Corder of the FBI St. Louis Division. “Corporate fraud is one of the top white-collar crime priorities for the FBI.”
“U.S. consumers – and especially pet owners – look to the FDA to ensure that their pets’ food is not only safe and wholesome, but is also accurately labelled. When criminals introduce adulterated and falsely labelled pet food into the U.S. marketplace, they put the health of companion animals at risk,” said Special Agent in Charge Charles L. Grinstead, FDA Office of Criminal Investigations Kansas City Field Office. “We will continue to investigate and bring to justice food manufacturers who put profits ahead of the public health.”
By pleading guilty today, Haning admitted that he and others shipped adulterated pet food ingredients and products to pet food manufacturers in Indiana and Connecticut, as well as six co-packers and co-manufacturers in Kansas, Pennsylvania, and Minnesota, over a period of more than six years. Conspirators falsely labeled the shipped product as a single-ingredient premium pet food product, such as chicken meal or turkey meal, but in reality, it was a blend of different ingredients that contained by-products and feathers.
Haning was the operations manager of the Wilbur-Ellis facility in Rosser, Texas. Wilbur-Ellis marketed and distributed products and ingredients for use in the pet food industry, including animal proteins used in the manufacture of dog food and cat food. Those sales included both direct sales by Wilbur-Ellis to pet food companies and manufacturers, and sales by Wilbur-Ellis conducted through one or more intermediaries, such as Diversified Ingredients, Inc., a commodities broker and distributor in Missouri whose customers include a number of pet food companies and manufacturers.
The fraud scheme began in January 2008, before Wilbur-Ellis purchased the Rosser facility, and continued through May 2014. Wilbur-Ellis purchased the facility in 2011 from Haning and his family members. Haning continued working in his sales and management role as an employee of Wilbur-Ellis. Haning continued to be responsible for buying the food ingredients blended at the Rosser facility and selling the products shipped from the Rosser facility.
The adulteration and misrepresentations made the Wilbur-Ellis Rosser facility more profitable over the course of the fraud scheme. This profitability triggered the deferred payment or “earn-out” provisions that were part of the agreement when the facility was sold to Wilbur-Ellis. As a result, Wilbur-Ellis made a $4,608,414 deferred payment for the benefit of Haning and others in 2013, and a $4,391,586 deferred payment for the benefit of Haning and others in 2014. In addition, between July 2011 and May 2014, Haning received cash and other indirect payments.
Wilbur-Ellis already has paid $4,549,682 in restitution to the victims of this fraud scheme. Under the terms of today’s plea agreement, the government and the defendant agree that the appropriate disposition of this case is probation for a period of five years. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case was prosecuted by Special Attorneys to the United States Attorney General Kathleen D. Mahoney and Kyle Bateman. It was investigated by the FBI, U.S. Postal Inspection Service, and the FDA Office of Criminal Investigations.
Texas Man Convicted of Conspiring to File False Tax Returns Using Stolen IdentitiesRead the Press Release
CONCORD– A Grand Prairie, Texas man was found guilty today of conspiring to file false tax returns using stolen identities to fraudulently obtain tax refunds in the District of New Hampshire announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and Scott W. Murray, U.S. Attorney for the District of New Hampshire.
According to the evidence presented at trial, from 2011 through 2014, Emmanuel Akoto, also known as “Kofi,” obtained the identities of other people and used them to file false tax returns with the IRS without the knowledge or consent of the identity theft victims. These returns listed fake income and tax withholdings and sought fraudulent refunds, which Akoto and his co-conspirators had loaded on pre-paid debit cards. The conspiracy involved others in Texas, California, Georgia, and Ghana. During the course of the conspiracy, Akoto e-mailed an undercover agent from the United States Secret Service requesting to purchase identities to use in his scheme.
Akoto was convicted of conspiracy to commit wire fraud and mail fraud, three counts of wire fraud, and two counts of aggravated identity theft. He is scheduled to be sentenced on January 29, 2019, by U.S. District Judge Steven J. McAuliffe. Akoto faces a statutory maximum sentence of 20 years in prison on the conspiracy and wire fraud charges. He faces a mandatory minimum sentence of two years in prison for aggravated identity theft. He also faces a period of supervised release, restitution and monetary penalties.
Akoto’s co-defendant, Jeffrey Quaye, pleaded guilty in July 2018 to conspiracy to commit wire fraud and aggravated identity theft. He is scheduled to be sentenced on November 5, 2019.
“Identity theft crimes cause real harm to their victims,” said U.S. Attorney Murray. “When identity theft is coupled with tax fraud, the damage is compounded substantially. In order to seek justice for crime victims, we will work closely with our law enforcement partners to identify and prosecute those who commit these serious crimes.”
“Mr. Akoto and his co-conspirators purchased hundreds of stolen identities online, using different email addresses to execute their scheme,” said Kristina O’Connell, Special Agent in Charge of IRS Criminal Investigation’s Boston Field Office. “In turn, they used the identities to file false tax returns in the victims’ names, in an attempt to obtain bogus refunds. IRS will continue to collaborate with our law enforcement partners, to aggressively pursue cyber-criminals who undermine the integrity of the U.S. tax system.”
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Murray thanked special agents from IRS–Criminal Investigation and the Secret Service, who conducted the investigation, and Assistant United States Attorney Arnold Huftalen and Trial Attorney Sean Green, who tried the case.
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Tangipahoa Parish Man Sentenced on Federal Drug and Firearms ChargesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced today that JERRY PEA, age 43, a resident of Hammond, Louisiana, was sentenced on October 23, 2019 to serve a total of 138 months in federal prison for violations of the Federal Controlled Substances Act and the Federal Gun Control Act.
PEA and his co-defendant, James Jackson, were indicted by the Federal Grand Jury back on July 12, 2018. This indictment was the result of a drug investigation that was led by the United States Drug Enforcement Administration, the Tangipahoa Parish Sheriff’s Office and the Hammond Police Department.
Defendant James Jackson pled guilty as charged and was sentenced to serve 73 months in federal prison back on June 26, 2019.
Defendant PEA was sentenced to serve 78 months for participating in a conspiracy to distribute both heroin and crack cocaine. He was also sentenced to serve an additional 60 months for possessing a firearm in furtherance of his drug trafficking activities. His total sentence was 138 months in federal prison, followed by five years of supervised release once he is released from prison.
Assistant United States Attorney Maurice Landrieu is in charge of the prosecution.
Sullivan Man Pleads Guilty to Receipt of Child Pornography ChargesRead the Press Release
St. Louis, MO – Robert Wilfred Boevingloh, 76, of Sullivan, MO, pled guilty to one of count of Receipt of Child Pornography. Boevingloh appeared before United States District Judge Ronnie L. White and sentencing was set for January 30, 2020.
According to court documents, between January 2016 and February 2017, Boevingloh knowingly received more than 600 images of child pornography, and those images were visual depictions involving a minor engaging in sexually explicit conduct.
In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by the Franklin County Sheriff’s Office, the Federal Bureau of Investigation and the Regional Computer Crime Education and Enforcement Group. Assistant U.S. Attorney Kyle T. Bateman is handling the case for the U.S. Attorney’s Office.
South Boston Man Sentenced for Loansharking and Gambling ChargesRead the Press Release
BOSTON – A South Boston man was sentenced yesterday in federal court in Boston on loansharking and gambling charges.
Tam V. Nguyen, 51, was sentenced by U.S. District Court Judge Denise J. Casper to 10 months in prison and two years of supervised release. In June 2019, Nguyen pleaded guilty to one count of conspiracy to collect extensions of credit by extortionate means and one count of operating an illegal gambling business.
From April to August 2017, Nguyen conspired to collect an extension of credit from a victim and engaged in an illegal gambling business from September 2016 through August 2017. Nguyen was a bookmaker and conspired to collect a large gambling debt from a bettor. In an intercepted telephone call, Nguyen told a conspirator to “go ahead and be firm, be firm with him. That will make him afraid and try hard to take care of it. That’s all.”
As part of the same investigation, in August 2017, Vinh Quang Huynh, Quang PT Le, and Kim Nguyen, all of Dorchester, were charged with kidnapping, conspiracy to collect extension of credit by extortionate means, and operating an illegal gambling business. In March 2019, Kim Nguyen was sentenced to one year and one day in prison, two years of supervised release, and ordered to pay restitution in the amount of $6,300. In May 2018, Le was sentenced to six years in prison, three years of supervised release and ordered to pay restitution in the amount of $6,300. In December 2017, Huynh pleaded guilty and is awaiting sentencing. In addition, as part of the same case, Ban “Bo” Tran pleaded guilty to misprision of a felony and was sentenced in February 2019 to eight months in prison, one year of supervised release and ordered to pay a fine of $5,000.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Boston Police Commissioner William Gross; and Quincy Police Chief Paul Keenan made the announcement today. The Internal Revenue Service’s Criminal Investigation in Boston and the Massachusetts Department of Correction assisted with the investigation. Assistant U.S. Attorney Timothy E. Moran of Lelling’s Organized Crime and Gang Unit is prosecuting the case.
Shelton Man Pleads Guilty to Distributing OxycodoneRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that SALVATORE PERRY, 45, of Shelton, waived his right to be indicted and pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to one count of possession with intent to distribute, and distribution of, oxycodone.
According to court documents and statements made in court, between September 2017 and November 2018, law enforcement made five controlled purchases of 30mg oxycodone pills from Perry. Perry sold between 30 and 60 pills each transaction. Perry had obtained the pills from at least two other individuals who had prescriptions for the drugs.
Perry was arrested on December 4, 2018. On that date, investigators searched his residence and seized oxycodone pills, along with Perry’s cell phone, which contained evidence of the drug sales.
Judge Bolden scheduled sentencing for January 22, 2020, at which time Perry faces a maximum term of imprisonment of 20 years. Perry is released on a $250,000 bond pending sentencing.
This matter is being investigated by the Drug Enforcement Administration and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Sarah P. Karwan.
Schuylkill County Man Sentenced to 15 Years’ Imprisonment for Production of Child PornographyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Josiah Ferrebee, age 23, of Pine Grove, Pennsylvania, was sentenced on October 22, 2019, to 15 years’ imprisonment followed by five years’ supervised release by Senior U.S. District Court Judge James M. Munley, for production and attempted to production of child pornography.
According to United States Attorney David J. Freed, Ferrebee previously admitted to persuading a 14-year-old female from the state of Michigan to take sexually explicit images of herself and send them to him via the internet. Ferrebee admitted that after he persuaded the minor to take and send some initial images to him, he threatened to post those images online unless she sent him more sexually explicit images of herself, which she did. Ferrebee committed the crime—what some have termed “sextortion”—in January 2016, when he was 19-years-old.
Ferrebee must also comply with the requirements of the Sex Offender Registration and Notification Act.
The matter was investigated by the Department of Homeland Security and the Pennsylvania State Police. Assistant U.S. Attorneys Francis P. Sempa and Jenny P. Roberts prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, 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.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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St. Thomas Man Who Used A-15 Rifle in a Robbery Senteneced to 10 Years in Federal PrisonRead the Press Release
St. Thomas, USVI – Arthur Greaves, Jr., 20, of St. Thomas, was sentenced today after being convicted of Possession of a Firearm with an Obliterated Serial Number, United States Attorney Gretchen C.F. Shappert announced.
District Court Judge Curtis V. Gomez sentenced Greaves to 10 years in prison. He also sentenced Greaves to five years of supervised release, 300 hours of community service and ordered Greaves to pay a special assessment of $100.
According to court documents, on May 17, 2018, Greaves pointed an A-15 rifle at an individual as the individual and his four year old son attempted to enter a residence on Garden Street. Greaves grabbed a gold chain from the individual’s neck and ran to a building on Bunker Hill where responding officers discovered him hiding under a stairwell. Greaves directed the officers to an adjacent abandoned building to reveal the rifle, a .22 cal. DPMS model A-15 with its serial number removed along with a double stack magazine and cartridges.
This case was investigated by the Virgin Islands Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Everard E. Potter.
Registered Sex Offender Charged with Aggravated Sexual AbuseRead the Press Release
ALBANY, NEW YORK – Gary Ryan, age 48, of Clifton Park, New York, was indicted on October 16 and appeared today in court for his arraignment on charges of aggravated sexual abuse of a minor younger than 12 years old and transportation of minors with intent to engage in criminal sexual activity.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Ryan, a registered sex offender, is charged with three counts of aggravated sexual abuse, each of which carries a sentence of at least 30 years in prison and up to life. Ryan is also charged with six counts of transportation with intent to engage in criminal sexual activity, each of which carries a sentence of at least 10 years in prison and up to life. 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.
Ryan was arraigned today before United States Magistrate Judge Daniel J. Stewart, and detained pending a trial before United States District Judge Mae A. D’Agostino.
The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
This case is being investigated by the FBI and its Child Exploitation Task Force, which includes members of the Colonie Police Department, Saratoga County Sheriff’s Office, and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Katherine Kopita.
Raleigh Gang Leaders Convicted of Rico Charges and Gang Related MurdersRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announces that DEMETRICE R. DEVINE, a/k/a “Respect,” 37, of Garner, NC, and BRANDON JOWAN MANGUM, a/k/a “B-Easy,” 31, of Knightdale, NC, were found guilty by a jury sitting in Raleigh today, for Conspiracy to Participate in a Pattern of Racketeering (RICO conspiracy), 2-counts of Murder in Aid of Racketeering, 2-counts of Murder with a Firearm During and in Relation to a crime of Violence, Conspiracy to Distribute and Possess with the Intent to Distribute Controlled Substances, and Conspiracy to Commit Witness Tampering.
Evidence presented at trial and other public documents established that DEMETRICE R. DEVINE was the leader of the Gangsta Killer Bloods (GKB), and then created Black Mob Gangstas (BMG) and the Donald Gee Family (DGF) organization. The BMG/DGF are sets of the “Bloods” gang whose members committed various crimes in the city of Raleigh and especially in the area of Haywood Street. BRANDON JOWAN MANGUM was another high-ranking member of BMG/DGF. BMG/DGF members committed acts of violence to maintain membership and discipline, both within the gang and against non-gang members. Members committed acts of violence, including murder, attempted murder, and assaults, in order to maintain their positions within the gang and to be promoted within the leadership structure of the gang.
BMG/DGF, including its leadership, members and associates, constituted an “enterprise” as defined by Title 18, United States Code, Section 1961(4), that is, a group of individuals’ associated-in-fact. The enterprise constituted an ongoing organization, whose members functioned as a continuing unit for a common purpose of achieving the objectives of the enterprise. The enterprise was engaged in, and its activities affected, interstate and foreign commerce. The purpose of the BMG/DGF enterprise included the following:
a. Preserving and protecting the power, territory, reputation, respect, and profits of the enterprise through the use of intimidation, violence, threats of violence, assaults, murder and attempted murder;
b. Promoting and enhancing the enterprise and its members’ and associates’ activities, including, but not limited to, murders, attempted murders, robberies, drug distribution and other criminal activities;
c. Keeping the community and rivals in fear of the enterprise and its members and associates through violence and threats of violence;
d. Providing financial support and information to gang members, including those incarcerated in the United States;
e. Providing assistance to other gang members who committed crimes for and on behalf of the gang; and,
f. Hindering, obstructing, and preventing law enforcement officers from identifying, apprehending, and successfully prosecuting and punishing members of the enterprise.
BMG/DGF also held gang meetings to communicate gang information, to recruit members, issue punishment and collect gang dues from each BMG/DGF member for the benefit of the BMG/DGF organization. A portion of the dues were saved and utilized locally in what was referred to as a “community rent box” (CRB) while another portion was sent up the chain of command to gang leadership in Virginia and New York. BMG/DGF members were permitted to earn their money for dues through various methods, including, but not limited to, robberies, fraud schemes, and drug distribution. The monies were used locally for loans to gang members, for drug purchases, for firearm purchases, for gifts, and cellular telephones for high-ranking members who were in jail. DEVINE ordered that individuals selling narcotics in and around Haywood Street who were not BMG/DGF members were also required to pay gang dues in order to continue their drug sales in territory controlled by BMG/DGF. Individuals who did not pay gang dues risked being robbed, assaulted, or murdered.
In his leadership position DEVINE directed members of his gang to shoot a 16 year old rival gang member, Adarius Fowler, who died from gunshot wounds. He also ordered a gang member to shoot a person who provided information to law enforcement regarding the murder of Fowler. While this person was recovering from those gunshot injuries in the hospital, DEVINE ordered that the person be killed. DEVINE presided over a “beat-in” gang initiation of a BMG/DGF gang member and personally assaulted another gang member whose loyalty he questioned. DEVINE conspired with other gang members to silence and threaten gang members that had been provided subpoenas to testify in a federal proceeding.
MANGUM along with other gang members conspired to shoot a 18 year old rival gang member, Rodriguez Burrell, because he refused to pay money to BMG/DGF. Burrell was shot multiple times in the presence of his father and died of his wounds.
DEVINE and MANGUM both sold drugs on behalf of BMG/ DGF. Specifically, the jury found DEVINE guilty of conspiracy to distribute and possession with the intent to distribute more than 280 grams of cocaine base (crack), more than 500 grams of cocaine, and a quantity of marijuana. DEVINE frequently provided drugs to lower ranking gang members for further distribution into the community. The jury found MANGUM guilty of conspiracy to distribute and possession with the intent to distribute a quantity of cocaine and marijuana.
At sentencing, DEVINE and MANGUM face a maximum term of imprisonment of life and a term of supervised release following any term of imprisonment.
Mr. Higdon commented: “The United States Justice Department and the United States Attorney’s Office are aggressively pursuing violent drug traffickers and this case targeted the worst of the worst. These men pose a serious danger to the people of Eastern North Carolina and with this conviction we have removed this danger from our community. This case is part of our effort to “Take Back North Carolina” from the drug traffickers and violent criminals.”
“The level of law enforcement cooperation to put these violent defendants behind bars where they belong was incredible. We have dismantled the criminal enterprise they ran which threatened and terrorized the citizens of Raleigh. This case is yet another example of law enforcement partners working together to effectively hold criminals accountable. To anyone who tries to fill the criminal void left by these convictions, you should know, we’ll come after you next," said John Strong, the Special Agent in Charge of the FBI in North Carolina.
The prosecution of DEVINE and MANGUM was a part of an Organized Crime and Drug Enforcement Task Force Operation (OCDETF) targeting violent gang members and drug traffickers in Raleigh, North Carolina.
The Federal Bureau of Investigation and the Raleigh Police Department led the investigation with assistance from the North Carolina Department of Public Safety, Wake County Sheriff’s Office, Raleigh/ Wake City-County Bureau of Identification, United States Marshal’s Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, and the North Carolina Office of the Chief Medical Examiner. Assistant United States Attorneys Dena King and Scott Lemmon prosecuted this case with Christina Taylor with the U.S. Department of Justice Criminal Division’s Organized Crime and Gang Section.
Previously Convicted Felon Sentenced to 3 Years in Prison After Arrest in Fairfield for Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — Brandon Edward Nichols, 28, of San Leandro, was sentenced today by U.S. District Judge Morrison C. England Jr. to three years in prison for being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court records, in December 2017, Fairfield police stopped Nichols’ car for a vehicle code violation. Nichols produced various credit cards and pieces of identification issued in other people’s names and was arrested for possessing these fraudulent cards. A gun was found in the driver-side door and a second gun was found during a subsequent search of Nichols’ hotel room. Nichols cannot lawfully possess firearms or ammunition because he has previously been convicted of three felony offenses. Nichols pleaded guilty on Feb. 21.
This case was the product of an investigation by the Fairfield Police Department with assistance from the FBI’s Solano County Violent Crimes Task Force and the Solano County District Attorney’s Office.
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.
Portland Accountant and Marijuana Proprietor Sentenced to 51 Months in Federal Prison for Fraud and Tax EvasionRead the Press Release
PORTLAND, Ore.—Nathan Wheeler, 43, a certified public accountant (CPA) residing in Portland, was sentenced today to 51 months in federal prison and 3 years’ supervised release for wire fraud and tax evasion.
According to court documents, since 2012, Wheeler owned and operated Bridge City Advisors LLC, an accounting firm that provided investment and legal services to clients throughout the Portland area. Wheeler used his position as a CPA to persuade clients to invest in various real estate development projects. Instead of providing promised rates of return and real estate security interests, Wheeler converted his clients’ money to his own use, living an extravagant lifestyle he could not otherwise afford and building a large marijuana business.
“Mr. Wheeler had an important fiduciary responsibility to act in the best financial interests of his clients. Instead, he repeatedly lied to and stole from them,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “His theft from two minor children who had recently endured the loss of their father is uniquely cold-hearted. The children’s simple requests for funds to cover routine expenses like braces were met with callous lies. My hope is that Mr. Wheeler’s prosecution and time behind bars will offer some measure of solace to his many victims.”
“As a CPA, Mr. Wheeler presented himself to investors as a reliable financial advisor in order to receive investment funds, and yet he greedily diverted those funds for his own investment interests. Additionally, Mr. Wheeler knew his obligation to accurately report income on a tax return, but instead chose to file a false personal tax return to evade his tax obligation,” said IRS-Criminal Investigation Special Agent in Charge Justin Campbell. “IRS-Criminal Investigation will hold accountable licensed CPAs who mislead and violate the trust of the public and the profession for their own selfish interests.”
To carry out his scheme, Wheeler would create limited liability corporations (LLCs) as an investment vehicle on behalf of his clients and name himself a member. He would then open bank accounts for his clients and attempt to gain signing authority so he could transfer funds independently.
One of Wheeler’s first victims was a C Trust or “minor’s trust” established for the benefit of two children whose father died in April 2011. Wheeler was named a trustee of the C Trust and facilitated the sale of the father’s business six months after his death. Unbeknownst to the children or their representatives, Wheeler used the proceeds to purchase a large residential real estate development in Washington State called Trotter Downs in his own name. Despite being the primary source of funding to purchase the development, the children were left with no ownership lien on the property. Further, Wheeler repeatedly refused to pay for the children’s expenses, falsely claiming that the funds were frozen because of a lawsuit involving their deceased father.
A second Wheeler victim was a silver medalist for the U.S. Olympic snowboarding team who had created his own line of snowboarding equipment. Wheeler managed to gain signing authority on some of the victim’s bank accounts and made multiple unauthorized transfers of funds to his own accounts. In just two years, Wheeler embezzled more than $962,000 from the athlete victim.
Many of Wheeler’s victims were retirees who entrusted him with their life savings. One retired victim, a former law enforcement officer, invested more $236,000 with Wheeler. Wheeler quickly redirected these funds for his own use. Shortly thereafter, he used $27,500 of the victim’s money to purchase an engagement ring for his fiancé.
In total, between 2011 and 2014, Wheeler defrauded his clients of more than $4.4 million. The government’s financial investigation revealed that within hours or days of receiving client investment funds, Wheeler would redirect the money to various personal uses.
Wheeler spent a large portion of the money he stole from his clients’ investment assets at the Hard Rock Café in Las Vegas, Nevada, at strip clubs, on travel and on expenses related to his marijuana grow operations. Wheeler is a former part owner of Club Rouge, a strip club in Downtown Portland.
U.S. District Court Judge Karin J. Immergut postponed the hearing regarding restitution to his former clients and to the IRS until January 10, 2020.
The government filed a civil forfeiture action on the remaining 25 plots in Trotter Downs that Wheeler had not yet sold. This action prevented Wheeler from continuing to sell off plots for his own benefit.
On May 24, 2018, Wheeler pleaded guilty to one count each of wire fraud and attempting to evade or defeat his tax obligations.
This case was investigated by IRS-Criminal Investigation and the Portland Police Bureau, and prosecuted by Michelle Kerin, Assistant U.S. Attorney for the District of Oregon. The related civil forfeiture case is being handled by Assistant U.S. Attorney Katie de Villiers.
Polson man sentenced to prison for firearms crimeRead the Press Release
MISSOULA—A Polson man who admitted possessing a firearm after having been convicted of a felony was sentenced today to three years in prison and three years of supervised release, U.S. Attorney Kurt Alme said.
Marc Anthony Friscia, 30, pleaded guilty in July to prohibited person in possession of a firearm.
U.S. District Judge Donald W. Molloy presided.
Court records filed by the prosecution said that Friscia was pulled over in a traffic stop in January 2018 and arrested on an outstanding warrant. Friscia also was on probation. During a search of the vehicle Friscia was driving, officers found a .357 caliber pistol in a backpack in the backseat. The pistol had been reported stolen that month. Friscia had been convicted of a felony in Montana and his right to possess a firearm had not been restored.
Assistant U.S. Attorney Cyndee Peterson prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Polson Police Department.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Pittsburgh Cocaine Dealer Sentenced to 12 Years in Federal PrisonRead the Press Release
PITTSBURGH – A resident of Allegheny County, Pennsylvania, has been sentenced in federal court to serve 12 years’ imprisonment on his conviction for violating the federal narcotics laws, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Arthur J. Schwab imposed the sentence on Thomas Poole, age 54, formerly of Pittsburgh, on his conviction for conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine.
According to information presented to the Court, in 2016, the Drug Enforcement Administration initiated a wiretap investigation primarily targeting cocaine trafficking in the Western District of Pennsylvania. The wiretap investigation revealed that from in and around August 2016, to on or about November 30, 2017, Poole conspired with others to distribute and possess with intent to distribute at least 15 kilograms but less than 50 kilograms of cocaine. The Court was further advised that on November 30, 2017, investigators seized large sums of U.S. Currency and approximately six kilograms of cocaine from residences associated with the defendant.
The Court further ordered that following Poole’s release from incarceration, he be placed on a term of supervised release for a period of five years, and that certain property be forfeited to the United States, including more than $120,000 in U.S. Currency that was recovered by the Drug Enforcement Administration during this investigation.
Assistant United States Attorneys Jerome A. Moschetta and Rebecca L. Silinski prosecuted this case on behalf of the government.
United States Attorney Brady commended the Drug Enforcement Administration for the investigation leading to the successful prosecution of Poole.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.
Pasco County Man Sentenced to More Than Three Years for Stalking, Threatening to Kill Victim and Her ChildRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich today sentenced Nicholas Marinkovic (29, Pasco County) to three years and four months in federal prison for stalking. Marinkovic had pleaded guilty on May 20, 2019.
According to court documents, between March and December 2018, Marinkovic repeatedly harassed and threatened multiple victims, including via numerous interstate telephone calls and hundreds of text messages. In those communications, Marinkovic repeatedly threatened, for example, to kill one of the victims and her child.
This case was investigated by the Federal Bureau of Investigation, with assistance from the Pasco County Sheriff’s Office and other local law enforcement. It was prosecuted by Assistant United States Attorney Colin McDonell.
Pacific Beach Resident Pleads Guilty to Distributing Fentanyl that Caused Two Overdoses, One of Them FatalRead the Press Release
Assistant U. S. Attorney Michael A. Deshong (619) 546-9290
NEWS RELEASE SUMMARY – October 24, 2019
SAN DIEGO – Pacific Beach resident Maya Kol pleaded guilty in federal court today, admitting that he sold fentanyl powder that caused the death of one man and sent another to the hospital over Labor Day weekend in September 2018. A third man - Kol’s source of the fentanyl - also fatally overdosed that weekend from the same batch.
Kol, a Cambodian national living illegally in San Diego, admitted in his plea agreement that he purchased the fentanyl powder believing it to be cocaine. However, after he sampled the powder he noticed it tasted it different and then became woozy and nearly lost his balance from the effects of it. Despite his own troubling experience with the powder, Kol sold it to others and told them it was cocaine.
According to his plea agreement, on September 7, 2018, Kol met three individuals, J.E., J.H., and L.S., and delivered to them one-half gram of fentanyl powder and represented it as cocaine. Several hours later L.S. contacted Kol asking for help. Kol arrived to J.H. and L.S.’s apartment to find J.E. and J.H. non-responsive. When Kol realized authorities would be coming to the scene, he went back to his home and flushed his remaining fentanyl powder down the toilet. J.E. died from the fentanyl powder Kol sold to him. J.H. had to be administered Narcan (used to treat opioid overdoses) and rushed to the hospital, but survived the ordeal. L.S. was admitted to the hospital the following day for lingering symptoms. A subsequent search of Kol’s residence uncovered more than $5,000 in cash, scales and other indicia of drug sales.
J.E.’s death was one of three deaths that occurred in Pacific Beach over Labor Day weekend in 2018, including the individual who sold the fentanyl powder to Kol. Kol is not charged with the other deaths.
“Another life is gone because of fentanyl and the greed of traffickers,” said U.S. Attorney Robert Brewer. “This dealer knew he was selling a dangerous drug and did it anyway. As the opioid epidemic rages across the nation, we will do everything we can to save lives, and that includes pursuing charges against dealers of the poison that is killing people every single day in this country.”
“Not only did Mr. Kol’s greed and selfishness cost a life, but he tried to cover up his actions and destroy the weapon that killed J.E. – in this case fentanyl,” said DEA Special Agent in Charge Karen Flowers. “A message to the dealers of death: DEA will find out who you are and we will bring you to justice. You cannot cover up your crimes and you will pay for taking the life of another human being.”
Kol is scheduled to be sentenced on March 6, 2020 before U.S. District Judge Jeffrey T. Miller.
This case is the result of ongoing efforts by the U.S. Attorney’s Office, the San Diego County District Attorney’s Office, and multiple law enforcement agencies to investigate and prosecute the distribution of dangerous illegal drugs that result in overdose deaths.
Many opioid addicts start their addiction with legitimate prescription drugs. Drug cartels, looking to capitalize on the opioid epidemic, are making counterfeit prescription pills using deadly fentanyl.
Fentanyl-related deaths are rapidly climbing to unprecedented levels. The San Diego County Medical Examiner’s Office reports there have been 89 cases of fentanyl-related deaths so far in 2019, with almost three months left in the year.
Should this trend continue for the remainder of 2019, the death toll could potentially reach 120, which would amount to a 33 percent increase over last year’s total of 90 deaths, and a staggering 700 percent hike over five years ago when there were 15.
In July 2018, Narcotics Task Force Team 10 was created to address drug overdose deaths in San Diego County. Team 10 led the investigation into the cluster of fentanyl drug overdoses in Pacific Beach in September 2018. The victim was 47 years old and he left behind his wife.
DEFENDANTS Case Number 19cr1277-JM
Maya Kol Age: 41 Pacific Beach, CA
SUMMARY OF CHARGES
Distribution of Fentanyl – Title 21, U.S.C., Section 841(a)(1)
Maximum Penalty: 20 years’ imprisonment
AGENCIES
Drug Enforcement Administration
San Diego Police Department
Homeland Security Investigations
California Department of Health Care Services
Federal Bureau of Investigation
San Diego County District Attorney’s Office
Owner of New York City Temporary Staffing Firms Indicted for Employment Tax FraudRead the Press Release
A federal grand jury in Brooklyn, New York, indicted a New York City resident yesterday on multiple counts of willfully failing to collect, truthfully account for, and pay over federal employment taxes to the Internal Revenue Service (IRS), announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to the indictment, Steven Heppenheimer owned and operated temporary employment staffing businesses located in Long Island City, New York, including PTP Staffing Associates Inc. (PTP), and PPS Associates Inc. (PPS). As the alleged sole owner of PTP and PPS, Heppenheimer was required to collect, account for, and pay to the IRS federal employment taxes withheld from the wages of PTP and PPS employees. As alleged in the indictment, from 2013 through 2017, Heppenheimer failed to report more than $270,000 in employment taxes to the IRS.
If convicted, Heppenheimer faces a statutory maximum sentence of five years imprisonment for each count charged. He also faces substantial monetary penalties, supervised release, and restitution.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS-Criminal Investigation, who investigated this case, and Trial Attorneys Brittney Campbell and Ann Marie Cherry of the Tax Division, who are prosecuting this case.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
North Carolina Gang Leaders Convicted of RICO ChargesRead the Press Release
Two North Carolina men were found guilty today for conspiracy to participate in a pattern of racketeering (RICO), two counts of murder in aid of racketeering, two counts of murder with a firearm during and in relation to a crime of violence, conspiracy to distribute and possess with the intent to distribute controlled substances and conspiracy to commit witness tampering.
Evidence presented at trial and other public documents established that Demetrice R. Devine, aka “Respect,” 37, of Garner, North Carolina, was the leader of the Black Mob Gangsters (BMG) and founder of the Donald Gee Family organization (DGF). The BMG/DGF are sets of the “Bloods” gang whose members committed various crimes in the city of Raleigh, North Carolina, and especially in the area of Haywood Street. Brandon Jowan Mangum, aka “B-Easy,” 31, of Knightdale, North Carolina, was another high-ranking member of the BMG/DGF. The BMG/DGF members committed acts of violence to maintain membership and discipline, both within the gang and against non-gang members. Members committed acts of violence, including murder, attempted murder and assaults in order to promote within the leadership structure of the gang.
BMG/DGF, including its leadership, members and associates, constituted an “enterprise” that constituted an ongoing organization, whose members functioned as a continuing unit for a common purpose of achieving the objectives of the enterprise. The enterprise was engaged in, and its activities affected, interstate and foreign commerce. The purpose of the BMG/DGF enterprise included the following:
- Preserving and protecting the power, territory, reputation, respect and profits of the enterprise through the use of intimidation, violence, threats of violence, assaults, murder and attempted murder;
- Promoting and enhancing the enterprise and its members’ and associates’ activities, including, but not limited to, murders, attempted murders, robberies, drug distribution and other criminal activities;
- Keeping the community and rivals in fear of the enterprise and its members and associates through violence and threats of violence;
- Providing financial support and information to gang members, including those incarcerated in the United States;
- Providing assistance to other gang members who committed crimes for and on behalf of the gang;
- Hindering, obstructing, and preventing law enforcement officers from identifying, apprehending, and successfully prosecuting and punishing members of the enterprise.
BMG/DGF also held gang meetings to communicate gang information, to recruit members, issue punishment and collect gang dues from each BMG/DGF member for the benefit of the BMG/DGF organization. A portion of the dues were saved and utilized locally in what was referred to as a “community rent box” (CRB) while another portion was sent up the chain of command to gang leadership. BMG/DGF members were permitted to earn their money for dues through various methods, including, but not limited to, robberies, fraud schemes, and drug distribution. The monies were used locally for loans to gang members, drug purchases to maintain drug houses, firearm purchases for gifts and cellular telephones for high-ranking members who were in jail. Individuals selling narcotics in and around Haywood Street who were not BMG/DGF members were also required to pay gang dues in order to continue their drug sales in territory controlled by BMG/DGF. Individuals who did not pay gang dues risked being robbed, assaulted or murdered.
In his leadership position, Devine directed members of his gang to shoot a rival gang member, Adarius Fowler, who died from gunshot wounds. He also ordered a gang member to shoot a person who provided information to law enforcement regarding the murder of Fowler. Devine presided over a “beat-in” gang initiation of a BMG/DGF gang member and personally assaulted another gang member whose loyalty he questioned. Devine conspired with other gang members to initiate and silence another individual believed to be cooperating with law enforcement.
Mangum along with other gang members conspired to shoot a rival gang member, Rodriguez Burrell, because he refused to pay money to BMG/DCF. Burrell was shot multiple times in the presence of his father and died of his wounds.
Devine and Mangum both sold drugs on behalf of BMG/ DGF. Specifically, the jury found Devine guilty of conspiracy to distribute and possession with the intent to distribute more than 280 grams of cocaine base (crack), more than 500 grams of cocaine and a quantity of marijuana. Devine frequently provided drugs to lower ranking gang members for further distribution into the community. The jury found Mangum guilty of conspiracy to distribute and possession with the intent to distribute a quantity of cocaine and marijuana.
Sentencing is scheduled for February 2020, before U.S. District Judge James C. Dever III.
The FBI and The Raleigh Police Department conducted the investigation. Trial Attorney Marty Woelfle of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Dena King and Scott Lemmon prosecuted the case.
- Preserving and protecting the power, territory, reputation, respect and profits of the enterprise through the use of intimidation, violence, threats of violence, assaults, murder and attempted murder;
North Carolina Bloods Gang Members Found Guilty of Racketeering Conspiracy Involving MurdersRead the Press Release
A federal jury convicted four North Carolina members of the United Blood Nation (UBN or Bloods) street gang of charges including Racketeer Influenced and Corrupt Organizations (RICO) conspiracy involving multiple murders. In May of 2017, 83 UBN gang members were indicted in the Western District of North Carolina for crimes including RICO conspiracy. This trial resulted in the convictions of the last four defendants in the active case.
Dricko Dashon Huskey, aka Drizzy, 27, of Shelby, North Carolina, Renaire Roshique Lewis Jr., aka Banz, 25, of Shelby, North Carolina, Alandus Montrell Smith, aka Kadafia, 29, of Shelby, North Carolina and Jonathan Wray, aka Jon Jon/Yungin, 28, of Lawndale, North Carolina, were convicted by a federal jury sitting in Charlotte following a nearly three-week trial. The evidence at trial showed that Huskey, Lewis and Wray each shot and killed a different victim. The jury also convicted Lewis of murder in aid of racketeering, attempted murder in aid of racketeering, attempted Hobbs Act robbery and using a firearm during and in relation to crimes of violence. Smith was also convicted of possessing methamphetamine and marijuana with intent to sell, possessing a firearm in furtherance of those drug trafficking crimes and possessing a firearm as a convicted felon, in addition to racketeering conspiracy.
“These Bloods members terrorized communities by committing murders and robberies on behalf of the gang. Today’s convictions provide a measure of justice to residents of North Carolina,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “With 82 defendants now found guilty, the Department of Justice’s prosecution of the Bloods continues to disrupt and weaken this violent gang, and serves as a testament to the effectiveness of federal, state and local law enforcement cooperation.”
“These gang members made a living committing robberies and dealing drugs, and tried to gain respect, reputation and rank within the Bloods by shooting and murdering victims,” said U.S. Attorney R. Andrew Murray of the Western District of North Carolina. “With today’s guilty verdict, we have successfully put 82 violent offenders behind bars, as we continue our mission to dismantle criminal enterprises operating in Western North Carolina and protect our communities from violent street gangs.”
According to evidence presented at trial, Lewis and four other UBN members attempted to rob an 18-year-old victim of marijuana and money. Lewis and another UBN member then shot and killed the victim and attempted to murder the victim’s friend, who survived a gunshot wound to his arm. Also, according to evidence presented at trial, Wray shot and killed a member of the Crips, a rival gang, at a party with other Bloods in Shelby, North Carolina. Evidence at trial also proved that Huskey murdered an unarmed man during an argument by shooting the victim multiple times and continuing to shoot while he was on the ground. The jury’s verdict indicated that Lewis, Wray and Smith participated in the UBN knowing and agreeing that Bloods commit acts of murder.
According to court documents and evidence presented at trial, the UBN is a violent criminal street gang operating throughout the east coast of the United States since it was founded as a prison gang in 1993. UBN members are often identified by their use of the color red, and can also often be identified by common tattoos or burn marks. Examples include: a three-circle pattern, usually burned onto the upper arm, known as a “dog paw”; the words “damu,” or “eastside”; the number five; the five-pointed star and the five-pointed crown. UBN members have distinct hand signs and written codes, which are used to identify other members and rival gang members, as well as to try to thwart law enforcement efforts against them.
Members of the UBN are expected to conduct themselves and their illegal activity according to rules and regulations set by their leaders. Prominent among these is a requirement to pay monthly dues to the organization, often in the amounts of $31 or $93. UBN gang dues are derived from illegal activity performed by subordinate UBN members including narcotics trafficking, robberies, and wire fraud, among other forms of illegal racketeering activity.
In all, 82 defendants have been adjudicated guilty in this case. Three top leaders of the UBN were convicted of racketeering conspiracy by a jury in May 2018, and one defendant was convicted of racketeering conspiracy and wire fraud conspiracy at trial in July 2019. Seventy-eight defendants have pleaded guilty in this investigation, and 69 defendants have been sentenced.
The investigation was conducted by the FBI’s Charlotte Field Office; the Charlotte Mecklenburg Police Department; the Shelby Police Department; the Cleveland County Sheriff’s Office; the Gastonia Police Department; the North Carolina State Highway Patrol; the Mecklenburg County Sheriff’s Office; the North Carolina Department of Public Safety Adult Corrections and Juvenile Justice; North Carolina Department of Motor Vehicles; Scotland Neck Police Department; the North Carolina State Bureau of Investigation; the Halifax County Sheriff’s Office; the U.S. Federal Probation; the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; the IRS Criminal Investigation; the U.S. Postal Inspection Service; the U.S. Army Criminal Investigation Command; and the New York Department of Corrections and Community Supervision, Office of Special Investigations. Trial Attorney Beth Lipman of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Matt Warren and Christopher Hess for the Western District of North Carolina are prosecuting the case.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
North Carolina Bloods Gang Members Found Guilty of Racketeering Conspiracy Involving MurdersRead the Press Release
Charlotte, N.C. – A federal jury convicted four North Carolina members of the United Blood Nation (UBN or Bloods) street gang of charges including Racketeer Influenced and Corrupt Organizations (RICO) conspiracy involving multiple murders. In May of 2017, 83 UBN gang members were indicted in the Western District of North Carolina for crimes including RICO conspiracy. This trial resulted in the convictions of the last four defendants in the active case.
Dricko Dashon Huskey, aka Drizzy, 27, of Shelby, North Carolina, Renaire Roshique Lewis Jr., aka Banz, 25, of Shelby, North Carolina, Alandus Montrell Smith, aka Kadafia, 29, of Shelby, North Carolina and Jonathan Wray, aka Jon Jon/Yungin, 28, of Lawndale, North Carolina, were convicted by a federal jury sitting in Charlotte following a nearly three-week trial. The evidence at trial showed that Huskey, Lewis and Wray each shot and killed a different victim. The jury also convicted Lewis of murder in aid of racketeering, attempted murder in aid of racketeering, attempted Hobbs Act robbery and using a firearm during and in relation to crimes of violence. Smith was also convicted of possessing methamphetamine and marijuana with intent to sell, possessing a firearm in furtherance of those drug trafficking crimes and possessing a firearm as a convicted felon, in addition to racketeering conspiracy.
“These Bloods members terrorized communities by committing murders and robberies on behalf of the gang. Today’s convictions provide a measure of justice to residents of North Carolina,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “With 82 defendants now found guilty, the Department of Justice’s prosecution of the Bloods continues to disrupt and weaken this violent gang, and serves as a testament to the effectiveness of federal, state, and local law enforcement cooperation.
“These gang members made a living committing robberies and dealing drugs, and tried to gain respect, reputation and rank within the Bloods by shooting and murdering victims,” said U.S. Attorney R. Andrew Murray of the Western District of North Carolina. “With today’s guilty verdict, we have successfully put 82 violent offenders behind bars, as we continue our mission to dismantle criminal enterprises operating in Western North Carolina and protect our communities from violent street gangs.”
According to evidence presented at trial, Lewis and four other UBN members attempted to rob an 18-year-old victim of marijuana and money. Lewis and another UBN member then shot and killed the victim and attempted to murder the victim’s friend, who survived a gunshot wound to his arm. Also, according to evidence presented at trial, Wray shot and killed a member of the Crips, a rival gang, at a party with other Bloods in Shelby, North Carolina. Evidence at trial also proved that Huskey murdered an unarmed man during an argument by shooting the victim multiple times and continuing to shoot while he was on the ground. The jury’s verdict indicated that Lewis, Wray and Smith participated in the UBN knowing and agreeing that Bloods commit acts of murder.
According to court documents and evidence presented at trial, the UBN is a violent criminal street gang operating throughout the east coast of the United States since it was founded as a prison gang in 1993. UBN members are often identified by their use of the color red, and can also often be identified by common tattoos or burn marks. Examples include: a three-circle pattern, usually burned onto the upper arm, known as a “dog paw”; the words “damu,” or “eastside”; the number five; the five-pointed star and the five-pointed crown. UBN members have distinct hand signs and written codes, which are used to identify other members and rival gang members, as well as to try to thwart law enforcement efforts against them.
Members of the UBN are expected to conduct themselves and their illegal activity according to rules and regulations set by their leaders. Prominent among these is a requirement to pay monthly dues to the organization, often in the amounts of $31 or $93. UBN gang dues are derived from illegal activity performed by subordinate UBN members including narcotics trafficking, robberies, and wire fraud, among other forms of illegal racketeering activity.
In all, 82 defendants have been adjudicated guilty in this case. Three top leaders of the UBN were convicted of racketeering conspiracy by a jury in May of 2018, and one defendant was convicted of racketeering conspiracy and wire fraud conspiracy at trial in July of 2019. Seventy-eight defendants have pleaded guilty in this investigation, and 69 defendants have been sentenced.
The investigation was conducted by the FBI’s Charlotte Field Office; the Charlotte Mecklenburg Police Department; the Shelby Police Department; the Cleveland County Sheriff’s Office; the Gastonia Police Department; the North Carolina State Highway Patrol; the Mecklenburg County Sheriff’s Office; the North Carolina Department of Public Safety Adult Corrections and Juvenile Justice; North Carolina Department of Motor Vehicles; Scotland Neck Police Department; the North Carolina State Bureau of Investigation; the Halifax County Sheriff’s Office; the U.S. Federal Probation; the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; the IRS Criminal Investigation; the U.S. Postal Inspection Service; the U.S. Army Criminal Investigation Command; and the New York Department of Corrections and Community Supervision, Office of Special Investigations. Trial Attorney Beth Lipman of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Matt Warren and Christopher Hess for the Western District of North Carolina are prosecuting the case.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.