Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Thursday 24 October 2019
Couple Operating Alabama Construction Company Sentenced to Prison for Payroll Tax FraudRead the Press Release
A Crane Hill, Alabama, husband and wife were sentenced to 20 months collectively in prison yesterday for failing to pay over payroll taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Jay E. Town for the Northern District of Alabama.
U.S. District Judge Liles C. Burke sentenced Walter Michael Williams to 13 months in prison and Amy Butler Williams to seven months in prison for failing to pay over payroll taxes. According to court documents and information provided to the court, Walter Michael Williams and Amy Butler Williams operated Dixie Steel Erectors (DSE), a commercial construction business in Hanceville, Alabama. Walter Michael Williams, DSE’s president and owner, and Amy Williams, DSE’s bookkeeper and office manager, were responsible for withholding and paying over DSE’s payroll taxes. During 2012 and 2013, DSE accrued payroll tax liabilities and the Williamses withheld those taxes from the pay of the business’s employees, but willfully failed to pay the withheld funds to the Internal Revenue Service (IRS). Instead, the Williamses caused DSE to pay for a number of their personal expenses, including mortgages, alimony, and football season tickets. The Williamses also failed to file personal tax returns, and failed to file corporate tax returns for DSE.
In addition to the term of imprisonment imposed, the Williamses were each ordered to serve three years of supervised release and to pay restitution in the amount of $502,683.23 to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Town commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant United States Attorneys Allison Garnett (formerly of the Tax Division) and Melissa Atwood, who are prosecuting the case.
Convicted Murderer Sentenced for Drug and Firearms CrimesRead the Press Release
NEWPORT NEWS, Va. – A Newport News man was sentenced today to 25 years in prison for possession of a firearm in furtherance of drug trafficking crime, felon in possession of a firearm and possession with intent to distribute marijuana.
“Willie Hardy, Jr., has a significant and lengthy criminal history of violence,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “In addition to being convicted of murder, he has been convicted of multiple other violent offenses, including violence against women. This is precisely the type of criminal that needed the attention of federal law enforcement and significant time in prison. I have no doubt that Newport News is safer with Hardy off the streets and behind bars.”
According to court documents, Willie M. Hardy, Jr., 47, engaged in drug trafficking while armed and while on federal supervision. In May 2018, Newport News Police Department received information that Hardy was trafficking drugs while armed out of a residence in Newport News. At the time, Hardy was on federal supervision for a September 2009 federal conviction for possession with intent to distribute marijuana and felon in possession of a firearm. In February 2018, Hardy stopped communicating with his probation officer, and a federal arrest warrant was issued for Hardy in March 2018. Based upon the information investigators received, law enforcement obtained a search warrant for the residence in May 2018. After executing the search warrant, law enforcement recovered two firearms, marijuana and heroin from within the residence. Investigators interviewed Hardy, who confessed that he distributed marijuana and within the last five weeks had been middlemanning heroin. Hardy also admitted to receiving both firearms.
“This case demonstrates ATF’s commitment to supporting our law enforcement partners with investigative leads generated by our National Integrated Ballistic Information Network (NIBIN),” said Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division. “This cutting edge technology matches ballistic evidence to crime scenes, helping law enforcement identify suspects and solve crimes much faster than is otherwise possible. Tools like NIBIN are crucial to the safety of our communities because they allow law enforcement to swiftly remove violent offenders like Hardy from our streets.”
While in custody on firearms and drug charges, Hardy attempted to obstruct justice by making jail calls to see if someone else who was not a felon would take responsibility for the firearm, and even contemplated having someone write an affidavit on his behalf.
After a four day jury trial, Hardy was convicted of possession of a firearm in furtherance of drug trafficking crime, felon in possession of a firearm and possession with intent to distribute marijuana.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; and Steve R. Drew, Chief of Newport News Police, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen. Assistant U.S. Attorney Megan M. Cowles prosecuted the case.
This 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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:18-cr-77.
Contract Officer and Government Contractor Arrested on Bribery and Wire Fraud ChargesRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that Richard Vaughan, 72, and Donald Garner, 47, were arrested yesterday and have been charged in a 31 count indictment with bribery and wire fraud related to Small Business Association (“SBA”) “set-aside” contracts with the United States Department of Veterans Affairs (“VA”).
Vaughan was a VA contract officer representative (“COR”) and was responsible for awarding and managing numerous contracts awarded by the VA, including certain Service-Disabled Veteran-Owned Small Business (SDVOSB) “set-aside” contracts. Vaughan also had “Purchase Card Program” authorization to spend approximately $600,000 per year on “micro-purchases” for nonstandard supplies and services for the VA.
Garner was the owner and manager of Veteran Ability, LLC, a government contractor that provided various services, such as snow removal and housekeeping, to the U.S. government, including the VA in Anchorage, Alaska.
From June 2015 through January 2017, Garner paid at least $29,235 in bribes to Vaughan in exchange for, among other things, preferential treatment in awarding certain VA contracts and purchase card orders and certifying payments on deficient invoices submitted by Garner for work that was unnecessary or never performed. The scheme resulted in Garner receiving the benefit of payments of approximately $725,226.56 under a VA snow removal contract, $776,272.00 under a VA housekeeping contract, and purchase card payments in the amount of $194,330.40.
If convicted both defendants face a maximum of 20 years in prison, a $250,000 fine, and 3 years of supervised release for the most serious charges in the indictment. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Federal Bureau of Investigation (FBI), United States Department of Veterans Affairs Office of the Inspector General, Small Business Administration Office of the Inspector General, and General Services Administration Office of the Inspector General, conducted the investigation leading to the indictment in this case. This case is being prosecuted by Assistant U.S. Attorneys Ryan D. Tansey and Kyle Reardon.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Columbus man sentenced to prison for illegally exporting goods to IranRead the Press Release
COLUMBUS, Ohio – A Central Ohio man was sentenced in U.S. District Court today for exporting gas and oil pipeline parts to Iran for more than a decade in deliberate violation of a U.S. embargo and trade sanctions.
Behrooz Behroozian, 64, of Columbus, was sentenced to 20 months in prison.
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 Douglas R. Hassebrock, Acting Assistant Secretary for Export Enforcement, Bureau of Industry and Security, U.S. Department of Commerce, announced the sentence handed down today by Senior U.S. District Judge James L. Graham.
Behroozian was born in Iran in 1955 and entered the United States in 1976. He became a naturalized U.S. citizen in 1987.
According to the sentencing memorandum filed in this case, Behroozian used an intermediary company, Sumar Industrial Equipment, to attempt to cover-up that he was illegally supplying industrial equipment to Iran in violation of the Emergency Economic Powers Act (IEEPA).
Behroozian exported manifolds, valves and connectors used for industrial pipelines in the gas and oil refinement industry to Iran via Sumar and profited $35,000 to $40,000 per year. This violated embargo and trade sanctions, which have been imposed upon Iran by the United States since May 1995.
In November 2006, Behroozian became the owner and operator of a computer parts supplier in Dublin, Ohio called Comtech International. Comtech had no storefront and made no domestic sales. It seldom exported computer parts. Instead, Comtech primarily exported industrial equipment to Sumar in the United Arab Emirates for further exportation to Iran.
“Behroozian profited financially by strengthening the economy of one of the world’s most infamous state sponsors of terrorism,” U.S. Attorney Glassman said. “The parts obtained by Behroozian benefited the Iranian gas and petrochemical industry. Not only did Behroozian’s crimes diminish the effectiveness of American trade sanctions, but they also undermined America’s national security.”
“Behrooz Behroozian willfully violated export control laws by sending dual-use items to Iran, furthering their military and economic capabilities,” stated FBI Cincinnati Acting Special Agent in Charge Joseph M. Deters. “The sentencing today is an example of the FBI's commitment to partnering with other U.S. government agencies to vigorously enforce laws designed to keep sensitive items out of the hands of nations and individuals hostile to the U.S. The FBI will continue these efforts to protect our national security and stop the illegal export of protected information and technology.”
“For over a decade, Behrooz Behroozian repeatedly violated export control laws and aided Iranian entities in procuring controlled components that have both commercial and military uses in deliberate violation of a U.S. embargo and trade sanctions. With this sentence, he will be held accountable for circumventing critical U.S. laws designed to protect our national security interests,” said Acting Assistant Secretary for Export Enforcement Douglas R. Hassebrock.
U.S. Attorney Glassman commended the cooperative investigation by the FBI and U.S. Department of Commerce, as well as Assistant United States Attorneys Douglas W. Squires, Timothy J. Prichard and S. Courter Shimeall and Department of Justice National Security Division Trial Attorney Will Mackie, who are representing the United States in this case.
###
Columbus Man Sentenced to Prison for Illegally Exporting Goods to IranRead the Press Release
A Central Ohio man was sentenced in U.S. District Court today for exporting gas and oil pipeline parts to Iran for more than a decade in deliberate violation of a U.S. embargo and trade sanctions.
Behrooz Behroozian, 64, of Columbus, was sentenced to 20 months in prison.
“For years, this defendant deliberately sought to defeat and evade the Iranian sanctions for personal gain while supplying critical equipment to the Iranian industrial complex. As this case demonstrates, the desire for specialized American technology and the willingness to illegally supply it to hostile countries are very real and ever present,” said Assistant Attorney General for National Security John C. Demers. “The Department of Justice and our law enforcement partners remain committed to identifying, disrupting, and prosecuting this kind of criminal conduct.”
“Behroozian profited financially by strengthening the economy of one of the world’s most infamous state sponsors of terrorism,” said Benjamin C. Glassman, U.S. Attorney for the Southern District of Ohio. “The parts obtained by Behroozian benefited the Iranian gas and petrochemical industry. Not only did Behroozian’s crimes diminish the effectiveness of American trade sanctions but they also undermined America’s national security.”
“Behoorz Behroozian willfully violated export control laws by sending dual-use items to Iran, furthering their military and economic capabilities,” stated FBI Cincinnati Acting Special Agent in Charge Joseph M. Deters. “The sentencing today is an example of the FBI's commitment to partnering with other U.S. government agencies to vigorously enforce laws designed to keep sensitive items out of the hands of nations and individuals hostile to the U.S. The FBI will continue these efforts to protect our national security and stop the illegal export of protected information and technology.”
“For over a decade, Behrooz Behroozian repeatedly violated export control laws and aided Iranian entities in procuring controlled components that have both commercial and military uses in deliberate violation of a U.S. embargo and trade sanctions. With this sentence, he will be held accountable for circumventing critical U.S. laws designed to protect our national security interests,” said Acting Assistant Secretary for Export Enforcement Douglas R. Hassebrock.
Behroozian was born in Iran in 1955 and entered the United States in 1976. He became a naturalized U.S. citizen in 1987.
According to the sentencing memorandum filed in this case, Behroozian used an intermediary company, Sumar Industrial Equipment, to attempt to cover-up that he was illegally supplying industrial equipment to Iran in violation of the Emergency Economic Powers Act (IEEPA).
Behroozian exported manifolds, valves and connectors used for industrial pipelines in the gas and oil refinement industry to Iran via Sumar and profited $35,000 to $40,000 per year. This violated embargo and trade sanctions imposed upon Iran by the United States in May 1995.
In November 2006, Behroozian became the owner and operator of a computer parts supplier in Dublin, Ohio, called Comtech International. Comtech had no storefront and made no domestic sales. It seldom exported computer parts. Instead, Comtech primarily exported industrial equipment to Sumar in the United Arab Emirates for further exportation to Iran.
Assistant Attorney General Demers and U.S. Attorney Glassman commended the cooperative investigation by the FBI and U.S. Department of Commerce, as well as Assistant United States Attorneys Douglas W. Squires, Timothy J. Prichard and S. Courter Shimeall and Department of Justice National Security Division Trial Attorney Will Mackie, who are representing the United States in this case.
Charleston Woman Sentenced for Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – A Charleston woman was sentenced to prison for a federal drug crime, announced United States Attorney Mike Stuart. Stephanie Lawhorn, 39, was sentenced to 36 months in prison and 5 years of supervised release for possession with intent to distribute fentanyl and methamphetamine.
“Lawhorn was a poly-drug dealer,” said United States Attorney Mike Stuart. “One by one, we’re sending poison peddlers to federal prison.”
Lawhorn previously admitted that on September 27, 2018, she was stopped by police officers for a traffic violation while driving in Belle, West Virginia. Officers found 15 grams of fentanyl and 115 grams of methamphetamine in her car, which Lawhorn admitted she intended to sell.
The Belle Police Department conducted the investigation. United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Chris R. Arthur is handling the prosecution.
Follow us on Twitter: SDWVNews and USAttyStuart
###
Camden Man Sentenced to Nine Years in Prison for Armed Robbery Spree of Businesses and Banks in Camden and Burlington CountiesRead the Press Release
CAMDEN, N.J. – A Camden man was sentenced today to 108 months in prison for robbing seven businesses and banks in West Berlin, Cinnaminson, Maple Shade, Mount Holly, Haddon Township, and Voorhees, New Jersey, U.S. Attorney Craig Carpenito announced.
William Carter, 51, previously pleaded guilty before U.S. District Judge Renée Marie Bumb to an information charging him with one count of Hobbs Act robbery. Judge Bumb imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
From Dec. 12, 2016, through March 10, 2017, Carter planned, coordinated, and recruited accomplices to assist him in robbing seven businesses and banks in Camden and Burlington Counties. In each robbery, Carter selected his accomplices, instructed them on their roles, directed them to wear masks and wield firearms, and served as the getaway driver.
In addition to the prison term, Judge Bumb sentenced Carter to three years of supervised release and ordered him to pay restitution of $99,187.
Several of Carter’s associates have already been sentenced as part of this case. Tammond Hill, 21, of Philadelphia, Pennsylvania, previously pleaded guilty and was sentenced to 115 months in prison. Rabon Watkins, 23, of Camden, previously pleaded guilty and was sentenced to 92 months in prison. Steven Cooley, 29, of Woodlynne, New Jersey, previously pleaded guilty and was sentenced to 60 months in prison.
U.S. Attorney Carpenito credited special agents of the ATF Newark Division, under the direction of Special Agent in Charge Charlie J. Patterson, with the investigation leading to today’s sentencing. He also thanked the ATF Philadelphia Division, under the direction of Special Agent in Charge Don Robinson; the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Jill S. Mayer; the Berlin Township Police Department, under the direction of Chief Leonard Check; the Haddon Township Police Department, under the direction of Chief Mark Cavallo; the Voorhees Township Police Department, under the direction of Chief Louis Bordi, the Maple Shade Police Department, under the direction of Chief Christopher J. Fletcher; the Mount Holly Police Department, under the direction of Chief Richard Spitler; and the Cinnaminson Police Department, under the direction of Chief Rich Calabrese, for their assistance in this case.
The government is represented by Assistant U.S. Attorney Kristen M. Harberg of the United States Attorney’s Office Criminal Division in Camden.
Defense counsel: Maggie Moy Esq., Assistant Federal Public Defender, Camden
Barbour County woman sentenced for methamphetamine chargeRead the Press Release
ELKINS, WEST VIRGINIA – Chelsey Farley, of Philippi, West Virginia, was sentenced to 21 months incarceration for a methamphetamine distribution charge, U.S. Attorney Bill Powell announced.
Farley, age 27, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine” in August 2018. Farley admitted to possessing crystal methamphetamine, also known as “Ice,” in November 2016 in Barbour County.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Mountain Region Drug & Violent Crimes Task Force investigated.
U.S. District Judge John Preston Bailey presided.
Bank robber released and strikes again, now heads back to prisonRead the Press Release
McALLEN, Texas – A 55-year-old McAllen resident has been ordered to federal prison after he admitted to robbing another bank, announced U.S. Attorney Ryan K. Patrick.
Joe Wayne Galipp pleaded guilty Aug. 8, 2019, admitting he robbed the Vantage Bank located on 2nd Street in McAllen.
Today, U.S. District Judge Randy Crane handed Galipp a 60-month sentence to be immediately followed by three years of supervised release. At the hearing, the court heard about a 2004 convenience store robbery and a 2013 bank robbery. After serving his federal sentence for the bank robbery, he was ordered to be on supervised release, during which time he committed the instant offense. The court revoked the remainder of that term and ordered he serve five months to be served concurrently to the current sentence. In handing down the sentence, the court noted the seriousness of Gallip’s prior criminal history and continued criminal conduct.
In May 2019, Galipp entered the Vantage Bank, approached a teller and demanded money from the till. The teller ultimately relented after his repeated commands. Galipp then placed the money in a bag he had brought with him and fled on foot.
Later that same day, law enforcement apprehended Galipp and positively identified him through security camera footage. At that time, he was in possession of the bag containing the money.
In 2013, U.S. District Judge Andrew Hanen sentenced Galipp to a 41-month sentence for the previous bank robbery. Galipp had entered a Bank of America in Harlingen, dressed in a trench coat, hat and sunglasses. He then approached the teller with a handwritten note demanding the money, after which he fled on foot.
Galipp has been and will remain in custody where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The McAllen Police Department and FBI conducted the investigation. Assistant U.S. Attorney Laura Garcia prosecuted the case.
Atlanta man sentenced to ten years for possession of child pornographyRead the Press Release
ATLANTA - Michael Frost, who was previously convicted and served a sentence in federal prison for possession of child pornography, has been sentenced for possessing child pornography including images of children as young as seven.
“Frost made a decision to go back to victimizing children even though he has already been jailed once for it,” said U.S. Attorney Byung J. “BJay” Pak. “Child pornography is disgusting and it is a second victimization of a child who has already been traumatized. Our office will continue to pursue and prosecute those who prey on children. Additionally, we will pursue criminals who use the dark web to avoid prosecution for their illicit activities.”
“Clearly prison time was not a deterrent that kept Frost from continuing his abhorrent behavior,” said Special Agent in Charge of FBI Atlanta, Chris Hacker. “If he thought he could hide behind the dark web, he was wrong, thanks to the cooperative work of the FBI and our local law enforcement partners. Now Frost will serve several more years in prison where he won’t be able to victimize any more children.”
“There is no work in law enforcement more important than protecting children. Officers, agents and prosecutors at all levels of our profession take great pride in capturing and prosecuting vile men and women that aim to victimize children. We are so grateful for our working relationship with the FBI and the U.S. Attorney’s Office, and this is a great example of our partnerships leading to the apprehension of another child predator,” Chief John Robison, Alpharetta Department of Public Safety.
“Again a person intent on victimizing our children has been brought to answer for his criminal acts. Only through continued diligence by local, state and federal law enforcement can these online predators be stopped. The Forsyth County Sheriff’s Office is committed to working with our partner agencies and prosecutors to stop these criminals. Kudos to FBI Atlanta, the U.S. Attorney’s Office and the Alpharetta Department of Public Safety for their assistance. Cases like this should serve as a warning to these criminals, that there is no room to hide when you endanger our children. We will not stop and we will find you and hold you accountable for your criminal acts,” said Forsyth County Sheriff Ron Freeman.
According to U.S. Attorney Pak, the charges and other information presented in court: During an undercover operation on the dark web, an area on the Internet where illegal content is uploaded and shared, law enforcement identified an IP address assigned to a physical address in Cumming, Georgia where child pornography had been downloaded, and interviewed the occupant at that address. The occupant was not involved in downloading child pornography, but told law enforcement that Michael Frost visited regularly and used his personal laptop computer to access the web when at the address.
When law enforcement obtained a search warrant for Frost’s address in Atlanta, Georgia, they seized multiple electronics that contained tens of thousands of images and videos of children as young as seven years old engaged in sodomy and other sexually explicit activity. Defendant had been previously convicted in 2002 in federal court of possessing child pornography and served approximately three years in federal prison.
Michael Frost, 49, of Atlanta, Georgia, was sentenced by U.S. District Court Judge Leigh Martin May to ten years in prison followed by ten years supervised release, and ordered to register as a sex offender for life. He was also ordered to pay a special assessment of $5,100, and restitution of $20,000 to victims. Frost was convicted of these charges on July 19, 2019, after he pleaded guilty.
The Federal Bureau of Investigation, Forsyth County Sheriff’s Office, and Alpharetta Police Department investigated this case, with assistance from the Atlanta Police Department.
Special Assistant U.S. Attorney Diane C. Schulman prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Aggravated sex abuse, arson sends Poplar man to prisonRead the Press Release
GREAT FALLS--A Poplar man who admitted sexually abusing a teenage girl and of burning down a house on the Fort Peck Indian Reservation was sentenced this week to 10 years and one month in prison, six years of supervised release and ordered to pay $60,000 restitution, U.S. Attorney Kurt Alme said.
Clifford William John Youpee, 32, pleaded guilty in April to aggravated sexual abuse and to arson of a dwelling in two separate cases.
U.S. District Judge Brian M. Morris presided at the Oct. 23 hearing.
In court records filed in the case, the prosecution said that in September 2016, a teenage girl reported that Youpee had raped her the night before. The victim had fallen asleep in a house and awoke to Youpee putting his hand up her shirt. The victim told Youpee to stop but he held her down and raped her.
The arson occurred on Oct. 20, 2017 after Youpee and another person were upset that they were removed from staying in a residence used by people as place to live and sleep. To seek retribution for being removed, Youpee and the other person both decided to burn the house to the ground. Witnesses confirmed that Youpee and the individual were the only persons in the residence immediately prior to it burning. The fire marshal responded and concluded the fire was set intentionally because there were two separate origins in the residence. The Fort Peck Housing Authority was owed $60,000 in restitution.
Assistant U.S. Attorney Ryan Weldon prosecuted the cases, which were investigated by the FBI and Fort Peck Tribes Department of Law and Justice.
XXX
Admitted Gang Member Pleads Guilty to Firearm and Drug ChargesRead the Press Release
PROVIDENCE – An admitted member of the “East B Bop Milla Blood” street gang, previously convicted on state firearm and assault charges, today pleaded guilty in U.S. District Court to federal firearm and drug charges.
Damon A. Winslow, 25, of Providence, pleaded guilty to a three-count information charging him with being a felon in possession of a firearm, possessing a firearm in furtherance of drug trafficking, and possession with intent to distribute marijuana, announced United States Attorney Aaron L. Weisman, Special Agent in Charge of the Boston Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Kelly D. Brady, and Providence Police Chief Hugh T. Clements, Jr.
According to court documents and information presented to the Court, On March 12, 2019, during a Project Safe Neighborhoods investigation, members of the Rhode Island ATF Task Force and Providence Police executed a federal court-authorized search of Winslow’s residence and seized a fully loaded .45 caliber pistol, more than 150 rounds of assorted ammunition, and approximately 3.5 ounces of marijuana.
At the time of the search, Winslow told members of law enforcement that he purchased the firearm, which was missing its serial number, for approximately $300. Winslow said he had a gun because he was a member of a gang, specifically the Bloods. He also admitted to selling marijuana.
According to court documents, Winslow was convicted in Rhode Island state court in May 2017 on a felony charge of carrying a pistol without a license. Court records indicate that Winslow was arrested again on January 10, 2018, for violating the terms of his probation when, among other things, he committed simple assault and resisted arrest after a fight involving rival gang members at the Garrahy Judicial Complex in Providence. On May 1, 2018, he was convicted of simple assault and resisting arrest and sentenced to 10 months incarceration at the ACI.
Winslow is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on January 30, 2020.
Felon in possession of a firearm is punishable by statutory penalties of up to 10 years imprisonment and a term of supervised release of 3 years. Possession of a firearm in furtherance of drug trafficking is punishable by up to life imprisonment with a mandatory 5-year term of incarceration consecutive to any other sentence imposed in this matter and a term of supervised release of 5 years. Possession with intent to distribute marijuana is punishable by up to 5 years imprisonment and a term of supervised release of no less than 2 years.
This Project Safe Neighborhoods case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
###
13 convicted in $189 million Medicare kickback schemeRead the Press Release
HOUSTON – With the plea of a 46-year-old Houston man, 13 people now stand convicted in the healthcare scam involving Continuum Healthcare and its various health centers in the Houston area, announced U.S. Attorney Ryan K. Patrick.
Steven Houseworth admitted to conspiring to pay and receive kickbacks relating to the Medicare program today.
A total of 12 others have been convicted in relation to the scheme. A federal jury convicted Cheryl Waller, 73, of Houston, March 2, 2017, after a three-day trial on one count of conspiracy to pay and receive kickbacks and one count of receiving kickbacks. Those all convicted on the conspiracy count include James Bobino, 50, Ernestine Johnson, 60, Jackie Harris, 56, and Vermon Lacy III, 35, all of Houston; David Edson, 71, Palm Harbor, Florida; Jeffery Parsons, 60, Crockett; Aretha Johnson, 67, Wimberley; Inger Michelle Pace, 57, Missouri City; Ronald Turner, 59, Fresno; Deborah Davis, 56, Atlanta, Georgia; and Mary Browning, 71, Beasley. Edson and Parsons were also convicted of two counts of money laundering. Johnson also pleaded guilty to one count of money laundering, while Pace and Turner each further admitted to paying and receiving kickbacks.
Houseworth, Edson and Parsons were part of the executive team for Continuum Healthcare LLC, which owned Westbury Community Hospital in Houston as well as community mental health centers in the Houston area known by their locations as Hornwood, Baytown and Missouri City.
During his plea today, Houseworth admitted to participating in a kickback scheme to pay co-defendants to bring patients to Continuum. He admitted to causing Medicare to pay $1.5 million based on false and fraudulent claims.
Each location operated a partial hospitalization program (PHP). The PHP was supposed to be a treatment program for individuals with mental illness, intended to closely resemble a highly structured, short-term hospital inpatient program. However, while it was a distinct and organized intensive treatment program, it offered less than 24-hour daily care.
In 2010, Continuum opened Westbury Community Hospital with Hornwood and Baytown becoming outpatient centers, continuing to operate their existing PHPs under the Westbury name. Westbury also opened a PHP.
Houseworth, Edson and Parsons were responsible for the day-to-day operation of Continuum/Westbury and were involved in the implementation of the various kickback programs. Numerous people were referred for treatment in exchange for payment. However, the vast majority did not qualify for PHP services, because they were not experiencing an acute psychotic episode or were actually suffering from mental retardation, dementia or Alzheimer’s.
Aretha Johnson, Pace, Bobino, Waller, Browning and Davis each owned personal care homes in Houston, while Ernestine Johnson, Harris, Lacy and Turner were marketers for Continuum. Each admitted receiving payment to refer the patients, receiving amounts ranging from $130,000 t0 $2.6 million each.
In total, Continuum billed Medicare approximately $189 million in total for fraudulent PHP services and Medicaid paid approximately $66 million on those clams.
U.S. District Judge Gray Miller accepted the plea and has set sentencing for Jan. 23, 2020, at which time Houseworth faces up to five years in prison and a possible $250,000 maximum fine. Housworth was permitted to remain on bond pending that hearing.
The FBI, Department of Health and Human Services - Office of the Inspector General, Texas Attorney General's Medicaid Fraud Control Unit and IRS - Criminal Investigation participated in the joint investigation. Assistant U.S. Attorneys Tina Ansari and Special Assistant U.S. Attorney Justin Blan are prosecuting the case.
13 Members and Associates of Mac Baller Brims Charged with Racketeering, Narcotics, and Firearms OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, James O’Neill, the Commissioner of the New York City Police Department (“NYPD”), and Peter C. Fitzhugh, Special Agent-in-Charge of the New York Field Office of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), today announced the unsealing of an Indictment charging 13 members and associates of the Mac Baller Brims gang that operated in and around the Mount Hope section of the Bronx with racketeering, narcotics, and firearms offenses, including five attempted murders between September 2018 and July 2019.
Of the 13 defendants, eight – DERRICK CASADO, a/k/a “Big Bank,” a/k/a “Papa D,” JUSTIN COLON, a/k/a “Lindo,” MICHAEL ROWE, a/k/a “MJ,” CARLOS RIVERA, a/k/a “Nug,” JAHUAN POLLARD, a/k/a “Flip,” CARLOS ROSARIO, a/k/a “Baby Bottle,” a/k/a “Carlito,” a/k/a “Barlito,” a/k/a “Barlos,” JUAN TEJADA, a/k/a “Gotti,” and CHRISTIAN LIVERMAN – were taken into federal custody in New York earlier today. They were presented before Magistrate Judge Debra Freeman today. Defendant DAVON MCCULLOUGH, a/k/a “Yung,” a/k/a “Dayday,” was also taken into federal custody in Virginia earlier today, and he was to be presented before Magistrate Judge Lawrence R. Leonard today. Two other defendants – DARRELL LAWRENCE, a/k/a “Capo,” and GIBRIL DARBOE, a/k/a “Mouse,” a/k/a “G Money” – are currently in state custody in Maine on related charges and will be presented in the District of Maine on a later date. The case has been assigned to U.S. District Judge J. Paul Oetken.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, the defendants wreaked havoc on the Mount Hope section of the Bronx, through acts of violence and narcotics trafficking as members of the Mac Baller Brims. Thanks to the outstanding work of our law enforcement partners at the NYPD, HSI, and DEA, the defendants now face federal charges for these very serious crimes.”
Police Commissioner James O’Neill said: “This case highlights the NYPD’s relentless pursuit of those few individuals who drive the worst kinds of violence and disorder. Our success reflects how New Yorkers share in our responsibility to keep families and neighborhoods safe to aid us in reducing crime beyond our record-lows. I want to commend our partners in the U.S. Attorney’s Office for the Southern District, and the members of Homeland Security Investigations, and the DEA, for working together to dismantle a group allegedly responsible for shootings, robberies, drug-dealing, and more.”
HSI Special Agent-in-Charge Peter C. Fitzhugh said: “This investigation exemplifies law enforcement partnerships prevailing over a criminal enterprise only looking to benefit from chaos. HSI will not back down and will not stop our fight to secure our communities and our nation from violence and narcotics distribution. Criminal organizations like the Mac Baller Brims should take note that combined law enforcement efforts like this investigation with HSI, the NYPD and DEA along with the United States Attorney’s Office in the Southern District of New York only thrive our resolve to end their existence and eliminate any financial gains they hope to profit.”
According to the allegations in the Indictment unsealed today in Manhattan federal court[1]:
The Mac Baller Brims were a criminal enterprise, and their members and associates committed numerous acts of violence, including shootings, in and around the Bronx. They engaged in such acts to preserve and protect their power, territory, and profits, and to promote and enhance the gang and its criminal activities. Members of the gang also enriched themselves by committing robberies and by selling drugs, such as crack cocaine, heroin, fentanyl, cocaine, oxycodone, and marijuana, including in New York and in Maine. While conducting their drug business, members and associates of the gang used, carried, and possessed firearms, and members of the gang brandished and fired those guns on multiple occasions since 2017.
Count One of the Indictment charges DARRELL LAWRENCE, DAVON MCCULLOUGH, GIBRIL DARBOE, DERRICK CASADO, JUSTIN COLON, MICHAEL ROWE, CARLOS RIVERA, JAHUAN POLLARD, CARLOS ROSARIO, DAVONTE GARCIA, and JOSE NOUEL with conspiring to conduct and participate in the conduct and affairs of the Mac Ballers enterprise through a pattern of racketeering activity, including through acts involving murder, robbery, and narcotics distribution.
Counts Two and Three charge ROWE with assault and attempted murder in aid of racketeering in connection with a September 14, 2018, shooting, and a related firearms offense.
Counts Four and Five charge COLON with assault and attempted murder in aid of racketeering in connection with a March 9, 2019, shooting, and a related firearms offense.
Counts Six and Seven charge CASADO with assault and attempted murder in aid of racketeering in connection with a May 17, 2019, shooting, and a related firearms offense.
Counts Eight and Nine charge ROSARIO with assault and attempted murder in aid of racketeering in connection with a July 18, 2019, attempted shooting, and a related firearms offense.
Counts Ten and Eleven charge ROSARIO with assault and attempted murder in aid of racketeering in connection with a July 20, 2019, shooting, and a related firearms offense.
Count Twelve charges LAWRENCE, MCCULLOUGH, DARBOE, CASADO, COLON, ROWE, RIVERA, POLLARD, ROSARIO, GARCIA, and NOUEL, as well as JUAN TEJADA and CHRISTIAN LIVERMAN, with conspiring to distribute and possess with intent to distribute crack cocaine, heroin, fentanyl, cocaine, oxycodone, and marijuana.
Count Thirteen charges LAWRENCE, MCCULLOUGH, DARBOE, CASADO, COLON, ROWE, RIVERA, POLLARD, ROSARIO, GARCIA, NOUEL, TEJADA and LIVERMAN with using, carrying, possessing, brandishing, and discharging firearms during and in relation to a narcotics conspiracy.
* * *
Charts containing the names, ages, residences, charges, and maximum penalties for the defendants are set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding work of the NYPD and HSI on this investigation, and thanked the Drug Enforcement Administration for its assistance.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Frank Balsamello and Jamie Bagliebter are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
COUNT
CHARGE
DEFENDANTS
MAX. PENALTIES
1
Racketeering conspiracy
18 U.S.C. § 1962(d)
DARRELL LAWRENCE
DAVON MCCULLOUGH
GIBRIL DARBOE
DERRICK CASADO
JUSTIN COLON
MICHAEL ROWE
CARLOS RIVERA
JAHUAN POLLARD
CARLOS ROSARIO
DAVONTE GARCIA
JOSE NOUEL
Life in prison
2
Assault and attempted murder in aid of racketeering
18 U.S.C. §§ 1959 and 2
MICHAEL ROWE
20 years in prison
3
Using, carrying, possessing, brandishing, and discharging a firearm
18 U.S.C.
§§ 924(c)(1)(A)(i), (ii), (iii), and 2MICHAEL ROWE
Life in prison
Mandatory minimum of 10 years in prison
4
Assault and attempted murder in aid of racketeering
18 U.S.C. §§ 1959 and 2
JUSTIN COLON
20 years in prison
5
Using, carrying, possessing, brandishing, and discharging a firearm
18 U.S.C.
§§ 924(c)(1)(A)(i), (ii), (iii), and 2JUSTIN COLON
Life in prison
Mandatory minimum of 10 years in prison
6
Assault and attempted murder in aid of racketeering
18 U.S.C. §§ 1959 and 2
DERRICK CASADO
20 years in prison
7
Using, carrying, possessing, brandishing, and discharging a firearm
18 U.S.C.
§§ 924(c)(1)(A)(i), (ii), (iii), and 2DERRICK CASADO
Life in prison
Mandatory minimum of 10 years in prison
8
Assault and attempted murder in aid of racketeering
18 U.S.C. §§ 1959 and 2
CARLOS ROSARIO
20 years in prison
9
Using, carrying, possessing, and brandishing a firearm
18 U.S.C.
§§ 924(c)(1)(A)(i), (ii), and 2CARLOS ROSARIO
Life in prison
Mandatory minimum of 7 years in prison
10
Assault and attempted murder in aid of racketeering
18 U.S.C. §§ 1959 and 2
CARLOS ROSARIO
20 years in prison
11
Using, carrying, possessing, brandishing, and discharging a firearm
18 U.S.C.
§§ 924(c)(1)(A)(i), (ii), (iii), and 2CARLOS ROSARIO
Life in prison
Mandatory minimum of 10 years in prison
12
Narcotics conspiracy
21 U.S.C. § 846
DARRELL LAWRENCE
DAVON MCCULLOUGH
GIBRIL DARBOE
DERRICK CASADO
JUSTIN COLON
MICHAEL ROWE
CARLOS RIVERA
JAHUAN POLLARD
CARLOS ROSARIO
DAVONTE GARCIA
JOSE NOUEL
JUAN TEJADA
CHRISTIAN LIVERMAN
Life in prison
Mandatory minimum of 10 years in prison
13
Using, carrying, possessing, brandishing, and discharging firearms
18 U.S.C.
§§ 924(c)(1)(A)(i), (ii), (iii), and 2DARRELL LAWRENCE
DAVON MCCULLOUGH
GIBRIL DARBOE
DERRICK CASADO
JUSTIN COLON
MICHAEL ROWE
CARLOS RIVERA
JAHUAN POLLARD
CARLOS ROSARIO
DAVONTE GARCIA
JOSE NOUEL
JUAN TEJADA
CHRISTIAN LIVERMAN
Life in prison
Mandatory minimum of 10 years in prison
DEFENDANT
AGE
RESIDENCE
DARRELL LAWRENCE,
a/k/a “Capo”29
Bronx, New York
DAVON MCCULLOUGH,
a/k/a “Yung,” a/k/a “Dayday”32
Newport News, Virginia
GIBRIL DARBOE,
a/k/a “Mouse,” a/k/a “G Money”22
Bronx, New York
DERRICK CASADO,
a/k/a “Big Bank,” a/k/a “Papa D”19
Bronx, New York
JUSTIN COLON,
a/k/a “Lindo”20
Bronx, New York
MICHAEL ROWE,
a/k/a “MJ”19
Bronx, New York
CARLOS RIVERA,
a/k/a “Nug”18
Bronx, New York
JAHUAN POLLARD,
a/k/a “Flip”18
Bronx, New York
CARLOS ROSARIO,
a/k/a “Baby Bottle,”
a/k/a “Carlito,”
a/k/a “Barlito,”
a/k/a “Barlos”18
Bronx, New York
DAVONTE GARCIA,
a/k/a “VT”22
Bronx, New York
JOSE NOUEL,
a/k/a “Tutu”22
Bronx, New York
JUAN TEJADA,
a/k/a “Gotti”19
Bronx, New York
CHRISTIAN LIVERMAN
27
Bronx, New York
Wednesday 23 October 2019
Wichita Pharmacist Gets 12.5 Years for Unlawfully Distributing Rx DrugsRead the Press Release
WICHITA, KAN. – A Wichita-area pharmacist was sentenced today to 150 months in federal prison for unlawfully dispensing opioid prescription drugs, U.S. Attorney Stephen McAllister said.
Ebube Otuonye, 47, Bel Aire, Kan., was convicted on charges of conspiracy to unlawfully distribute prescription drugs, unlawfully distributing prescription drugs and health care fraud.
The crimes occurred while Otuonye owned and operated Neighborhood Pharmacy at 2810 E. 21st in Wichita, where he filled prescriptions for patients of Dr. Steven R. Henson. In October 2018, Henson was convicted of unlawfully distributing prescription drugs outside the usual course of professional medical practice and without a legitimate medical purpose. In March 2019, Henson was sentenced to life in federal prison.
During trial in July, prosecutors presented evidence that Henson’s patients had difficulty filling Henson’s prescriptions at pharmacies other than Neighborhood Pharmacy. Otuonye’s pharmacy charged more than other pharmacies and he set up a system requiring Henson’s patients to fill three non-narcotic prescriptions when filling a narcotic prescription.
A sign in the pharmacy said: “You may use another pharmacy if all you want to fill is (a) narcotic prescription.”
Evidence at trial showed Henson’s patients took their prescriptions to Otuonye himself because another pharmacist at Neighborhood Pharmacy refused to fill them. Prosecutors argued that Otuonye failed to perform his professional responsibilities by continuing to fill prescriptions for Henson’s patients despite warning signs including: Large numbers of prescriptions for highly addictive drugs, customers paying cash, multiple patients coming in at once with Henson’s prescriptions and patients from the same family presenting identical prescriptions.
Otuonye filled prescriptions for more than 21,600 tablets of oxycodone, more than 48,600 tablets of methadone, more than 18,000 tablets of hydromorphone and more than7,800 tablets of alprazolam.
Prosecutors also presented evidence that Otuonye submitted claims to Medicare and Medicaid for filling Henson’s prescriptions.
McAllister commended the Drug Enforcement Administration, the Johnson County Sheriff’s Office, the Lee’s Summit, Mo., Police Department, the Overland Park Police Department, the U.S. Department of Health and Human Services, the Kansas Board of Pharmacy, the Heart of America Regional Computer Forensics Laboratory, the Newton Police Department, the Wichita Police Department, Assistant U.S. Attorney Mona Furst, Assistant U.S. Attorney Jason Hart, and Special Assistant U.S. Attorney Katherine Andrusak for their work on the case.
Westminster Woman Sentenced for Stealing Social Security BenefitsRead the Press Release
BOSTON – A Westminster woman was sentenced today in federal court in Worcester for stealing Social Security benefits.
Theresa Kenda Benedict, 56, was sentenced by U.S. District Court Judge Timothy Hillman to six months of home confinement, two years of probation and ordered to pay restitution of $46,310. In May 2019, Benedict pleaded guilty to one count of theft of public funds and four counts of making false statements. Benedict was arrested and charged in June 2018.
Benedict served as the representative payee for a disabled individual who was receiving Social Security benefits. In 2013, 2014, 2015, and 2016, Benedict informed the Social Security Administration that she used all of the money she received as a representative payee for the beneficiary. In fact, Benedict had used some of the money for her own expenses. Between December 2007 and March 2016, Benedict stole approximately $46,310.36 in Social Security benefits intended for the disabled individual.
United States Attorney Andrew E. Lelling and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit prosecuted the case.
Washington Resident Pleads Guilty to Filing a False Tax Return That Failed to Report over $1 Million Held in Offshore Swiss Bank AccountRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that John Thomas Blandi, age 74, of Spokane, Washington, pleaded guilty to filing a false tax return with the Internal Revenue Service (“IRS”) that failed to report over $1 million in income earned in a foreign investment account.
According to court documents, Blandi, a U.S. citizen, held $5,221,514 in an offshore account in Switzerland. The offshore account generated $1,430,000 in income that Blandi did not report on his 2013 income tax return. As a result, Blandi underreported his 2013 tax liability by $598,700.
Blandi maintained the unreported income in an offshore Swiss “insurance wrapper” policy. An “insurance wrapper” policy was an insurance product offered by Swiss and other insurance companies and asset managers primarily to U.S. citizens to allow for asset protection and global investment benefits that was also used by some citizens to evade U.S. taxes. Insurance wrapper policies were private placement life insurance or annuity accounts that combined the benefits of insurance with those of private banking by funding a life insurance policy or annuity policy with investment assets of the client. In many instances, the product would not qualify for treatment as life insurance under United States law. The offshore insurance company would maintain the policy assets in an offshore bank account in the name of the insurance company, rather than the U.S. citizen, while the U.S. citizen still maintained a level of control over the assets and how they were invested. Blandi had an obligation to report this offshore financial account to the IRS on his tax return. He did not.
Blandi’s insurance wrapper policy involved a Swiss-based External Asset Manager (“EAM”) who implemented the investment strategy Blandi desired and managed the assets in a custodial offshore bank account. Blandi communicated with the EAM regarding his offhsore investments, and expressed concerns about creating reportable events that would result in the United States authorities being notified about his offshore account.
Blandi also concealed his foreign financial account and foreign income from the tax professional who prepared his 2013 income tax return. Blandi’s tax return falsely claimed that he did not have a financial interest in or signature authority over a foreign financial account.
United States Attorney Hyslop said, “As he admitted, John Blandi tried to conceal over $1 million in income in an offhsore bank account from the IRS. Today’s plea is a reminder that the United States Attorney’s Office for the Eastern District of Washington continues to work with the IRS to investigate and prosecute individuals who may use off shore accounts to engage in conduct violating U.S. tax laws. I commend the outstanding and dedicated work of the IRS Criminal Investigation special agents who worked on this matter.”
“Placing unreported income in an offshore account is not tax planning, it’s tax evasion,” said IRS-Criminal Investigation’s Special Agent in Charge Justin Campbell. “IRS-Criminal Investigation has been very open about our aggressive efforts to combat offshore tax fraud schemes. We will investigate and seek prosecution of taxpayers who are concealing unreported income in offshore accounts in an attempt to evade their tax obligations.”
Blandi faces a maximum sentence of three years in federal prison, a one-year term of supervised release, restitution and monetary penalties. Senior United States District Judge Wm. Fremming Nielsen set Blandi’s sentencing for January 21, 2020.
This case was investigated by the Internal Revenue Service, Criminal Investigation. This case was prosecuted by George J.C. Jacobs, III, Assistant United States Attorney for the Eastern District of Washington.
Ware Man Pleads Guilty to Sexual Exploitation ChargesRead the Press Release
BOSTON – A Ware man pleaded guilty today in federal court in Springfield after being charged with sexual exploitation charges.
Walter Brown, 74, pleaded guilty to one count of conspiracy to commit sexual exploitation of a child, two counts of sexual exploitation of a child, one count of conspiracy to commit sex trafficking and two counts of sex trafficking. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Jan. 22, 2020. Brown was arrested on July 14, 2017, and has been detained since that time.
On Oct 11, 2019, co-defendant Claire Poole was sentenced to 125 months in prison after pleading guilty to conspiracy to commit sex trafficking and two counts of sex trafficking.
Poole moved to the Springfield area in early 2017 and later helped co-defendant Walter Brown have sex with a teenage girl. Brown induced the girl to provide pornographic videos and to have sex with him on two occasions by paying her money. Poole acted as a go-between, first by conveying Brown’s initial offer to the girl and then by relaying Brown’s messages to the victim, which included negotiations about what Brown would pay. Poole also provided a cell phone to produce the pornographic videos, and Poole transported the minor to Brown’s house in Ware for sex on two occasions.
The sex trafficking charges provide for a minimum mandatory sentence of 10 years and up to a lifetime in prison, a minimum of five years and up to a lifetime of supervised release and a fine of $250,000. The charges of sexual exploitation of a child provide for a minimum mandatory sentence of 15 years and up to 30 years in prison, a minimum of five years and up to a lifetime of supervised release and a fine of $250,000. Sentences are imposed by a federal district judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States 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; Ware Police Chief Shawn Crevier; Monson Police Chief Stephen Kozloski; and Amherst Police Chief Scott Livingstone made the announcement today. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Office is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Wagoner Man Pleads Guilty to ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Robert Leroy Dennington, age 36, of Wagoner, Oklahoma, entered a guilty plea to Conspiracy, in violation of Title 18, United States Code, Section 371, punishable by not more than 5 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleges that beginning on or about April 12, 2019, and continuing until on or about April 13, 2019, in the Eastern District of Oklahoma, the defendant did knowingly and intentionally conspire, confederate and agree with others both known and unknown to the grand jury, to commit offenses against the United States in violation of Title 18, United States Code, Section 472, namely, Uttering Counterfeit Obligations of the United States.
The charges arose from an investigation by the Wagoner Police Department and the United States Secret Service.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Clay Compton represented the United States.
Upstate New York Contractors Combine to Pay More than $1 Million to Resolve False Claims Act InvestigationRead the Press Release
SYRACUSE, NEW YORK – Upstate Construction Services, LLC (Upstate) and Structural Associates, Inc. (Structural) have agreed to pay more than $1 million in total to resolve allegations that they improperly obtained government contracts set-aside for companies qualified as historically underutilized business zone (HUBZone) firms, announced United States Attorney Grant C. Jaquith.
The United States occasionally utilizes government contracting to promote small businesses, including firms that qualify as HUBZone entities. To be eligible for these contracts, a firm must qualify as a small business, have its principal office located in a HUBZone, and have a certain percentage of employees live in a HUBZone.
The settlements resolve allegations that Upstate (which was a qualified HUBZone entity) and Structural (which was not) entered into a set of agreements – including two Silent Joint Venture Agreements – that were not disclosed to the government. The agreements enabled Upstate to obtain bonding on jobs that it otherwise would not have been able to obtain, and in exchange Structural (which could not have bid on the jobs itself or as part of a joint venture with Upstate) received approximately half of Upstate’s profits on government contracts worth millions of dollars.
United States Attorney Grant C. Jaquith said: “Openness and integrity are critical to the fair and effective implementation of federal contracting assistance programs, including programs designed to help small businesses from economically distressed communities. Secret agreements between firms to share profits on government contracts undermine the integrity of these programs, which we will continue to protect by persistently pursuing these cases with our investigative partners.”
“The settlement agreement announced today is the successful resolution of a joint investigation conducted by the Defense Criminal Investigative Service (DCIS), the U.S. Army Criminal Investigation Command and the U.S. Attorney’s Office, Northern District of New York,” stated Leigh-Alistair Barzey, Special Agent-in-Charge, DCIS Northeast Field Office. “The integrity of the U.S. Department of Defense procurement process is of vital importance and is a DCIS investigative priority. The DCIS will continue to work with its law enforcement partners to hold Defense Contractors accountable and ensure that quality products and services are provided to the U.S. military in compliance with contractual requirements.”
The investigation and settlement were the result of a coordinated effort among the U.S. Attorney’s Office for the Northern District of New York, the Defense Criminal Investigative Service, and the United States Army Criminal Investigation Command. The United States was represented by Assistant U.S. Attorney Michael D. Gadarian.
United States Seeks Forfeiture of Real Estate in Mexico Purchased by Cartel Leader Rafael Caro Quintero with Proceeds of His Drug Trafficking OrganizationRead the Press Release
A civil complaint against eight real properties located in and around Guadalajara, Mexico was unsealed today in federal court in Brooklyn. The properties described in the complaint are alleged to have been purchased by Rafael Caro Quintero with drug proceeds obtained through his leadership of the Caro Quintero drug trafficking organization, a faction of the Mexican organized crime syndicate known as the Sinaloa Cartel.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), announced the complaint.
“Today’s efforts to seize properties Caro Quintero purchased with blood money reaped from the drug trafficking, addiction and violence he sowed in the United States and Mexico is just the latest step in our pursuit of justice,” stated United States Attorney Donoghue. “We will never forget that Caro Quintero is responsible for the murder of Special Agent Camarena and he now faces a stark choice between the only available endings - an American prison or a Mexican grave, and now is the time to choose.” Mr. Donoghue extended his grateful appreciation to the DEA New York Division Organized Crime and Drug Enforcement Strike Force, as well as the DEA Raleigh Resident Office and DEA Mexico City Country Office for their assistance with the case.
“The atrocities of Rafael Caro Quintero are not forgotten, and the history of the terror that he has inflicted serves as a constant reminder to the DEA that we will never stop the pursuit for justice,” stated DEA Special Agent-in-Charge Donovan. “We are proud to show the world, with the unsealing of this civil complaint, that DEA’s commitment to uncover Caro Quintero’s infrastructure and criminal associates is unwavering. DEA will never forget. We will not relent.”
According to the forfeiture complaint, between January 1980 and March 2015, the Caro Quintero drug trafficking organization was involved in the transportation of multi-ton quantities of marijuana, multi-kilogram quantities of methamphetamine and multi-kilogram quantities of cocaine from Mexico to the United States. As part of its investigation, law enforcement learned that Caro Quintero used proceeds from the sale of illegal narcotics to purchase real estate in and around his home area of Guadalajara. Caro Quintero allegedly placed the properties in the names of family members to conceal his ownership of the properties and use of illegal proceeds to purchase them, and to prevent Mexican authorities from seizing them.
Caro Quintero is a fugitive from several indictments in the United States, and is on the FBI’s list of “Ten Most Wanted” criminals. In April 2018, an indictment was unsealed in federal court in Brooklyn charging Caro Quintero with leading a continuing criminal enterprise and other crimes, including his participation in the 1985 kidnapping, torture and murder of DEA Special Agent Enrique “Kiki” Camarena. A $20 million reward provided by the United States Department of State is being offered for information leading to his capture.
The government’s case is being prosecuted by Assistant United States Attorney Brendan G. King of the Office’s Asset Forfeiture Unit, and Gina M. Parlovecchio, Michael P. Robotti, Erin Reid and Patricia E. Notopoulos of the Office’s International Narcotics and Money Laundering Section.
E.D.N.Y. Docket No. 19-CV-5748 (ENV)
United States Files Lawsuit Against State of California for Unlawful Cap and Trade Agreement with the Canadian Province of QuebecRead the Press Release
The United States today filed a civil complaint against the state of California, several of its officers, the California Air Resources Board, and the Western Climate Initiative Inc., for unlawfully entering a cap and trade agreement with the Canadian Province of Quebec.
“The state of California has veered outside of its proper constitutional lane to enter into an international emissions agreement. The power to enter into such agreements is reserved to the federal government, which must be able to speak with one voice in the area of U.S. foreign policy,” said Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and Natural Resources Division. “California’s unlawful cap-and-trade agreement with Quebec undermines the President’s ability to negotiate competitive agreements with other nations, as the President sees fit.”
The Supreme Court has recognized that the interests of cities, counties and states, and the American people as a whole, requires the federal power in foreign relations to be reposed exclusively in the federal government, keeping it free from local interference.
According to the complaint, filed today in the Eastern District of California, the defendants have pursued or are attempting to pursue an independent foreign policy in the area of greenhouse gas regulation. The Constitution prohibits states from making treaties or compacts with foreign powers, yet California entered into a complex, integrated cap-and-trade program with the Canadian province of Quebec in 2013 without congressional approval.
California’s agreement with Quebec, which the Western Climate Initiative facilitates (and where the Western Climate Initiative’s board is run by California and Quebec governmental actors), interferes with the proper execution of these federal responsibilities. Accordingly, today’s complaint asks the court to uphold the exclusive role of the federal government in conducting our foreign policy by declaring the agreement — and related statutes and regulations —unconstitutional, and enjoining their operation.
United States Attorney’s Office, Inter-Religious Council of Linn County, and Cedar Rapids Civil Rights Commission Host Forum on Protecting Places of WorshipRead the Press Release
CEDAR RAPIDS, IA –United States Attorney Peter E. Deegan, Jr., the Inter-Religious Council of Linn County, and the Cedar Rapids Civil Rights Commission hosted a community forum on October 22, 2019, focused on protecting places of worship. Leaders of the interfaith community, representatives of houses of worship, and other community stakeholders and members attended. They discussed hate crime laws, identifying and reporting hate crimes, and best practices for creating safe and secure houses of worship.
Speakers and panelists included law enforcement officials from the FBI, U.S. Dept. of Homeland Security, United States Attorney’s Office for the Northern District of Iowa, Linn County Attorney’s Office, the Cedar Rapids Police Department, and the Linn County Sherriff’s Office. A second panel of community faith leaders was moderated by Ms. Sarika Bhatka and included panelists Rev. Dr. Sherri Ilg, Krishna Iyer, Rev. Leoma Leigh-Williams, Imam Hassan Selim, and Rabbi Todd Thalblum.
United States Attorney Deegan expressed appreciation to the agencies involved and the community members attending for their willingness to discuss issues that communities across the state and country encounter. No one in our community should feel threatened because of his or her religion, and everyone should feel safe when going to their chosen house of worship,” said Deegan. “All of these organizations and people coming together shows that Iowans want to be proactive when it comes to keeping our communities safe.”
“The FBI is tasked with defending civil rights in the United States, and the Constitution guarantees that everyone in the United States has freedom to practice their own religion,” said Special-Agent-in-Charge Kristi Johnson of the Omaha Field Division of the FBI. “No one deserves to live in fear because of how they choose to worship.”
Follow us on Twitter @USAO_NDIA.
Two southern district of Ohio attorneys recognized as part of national attorney general's awardsRead the Press Release
WASHINGTON – United States Attorney General William P. Barr recognized two attorneys from the Southern District of Ohio as part of the 67th Annual Attorney General’s Awards Ceremony today.
Deputy Criminal Chief Brenda S. Shoemaker and Assistant United States Attorney Andrew M. Malek were two of 11 individuals to receive the Attorney General’s Award for Distinguished Service, the second highest award for employee performance.
Shoemaker and Malek were part of the team that played a key role in targeting South Korean oil companies that rigged bids and defrauded the U.S. Department of Defense.
Throughout the course of a conspiracy that lasted more than a decade, five South Korean oil companies conspired to raise the price of key contracts that provided fuel on U.S. military bases in South Korea.
The team obtained guilty pleas from five companies and criminal fines, civil penalties and damages to the United States totaling more than $350 million.
“Andy Malek and Brenda Shoemaker are fantastic AUSAs, and this recognition is well warranted. Working together with the Antitrust and Civil Divisions of the Department of Justice and with our law enforcement partners, AUSAs Malek and Shoemaker have demonstrated our ability and resolve to reach around the world to hold accountable those who defraud the United States military. I’m proud of their work,” U.S. Attorney Glassman said.
In total, 295 department employees were recognized for their distinguished public service. Sixty-two other individuals outside of the department were also honored for their work.
This year’s program honors individuals across the department and our federal, state, local, and tribal partners for their self-less efforts, protecting our national security and our civil rights, addressing rising violent crime in our communities, going after gangs and those trafficking in dangerous narcotics and human beings. The awards also honor the work of civil and environmental litigation, which enforces the rule of law and upholds our Constitution. They also recognize employees whose ideas and efforts save taxpayer dollars and help our government operate more effectively and efficiently, among other contributions to public safety and good governance.
The annual ceremony recognizes employees and other individuals who have demonstrated exceptional achievements, leadership, and service to the Department of Justice and the American people.
“Our greatest strength in our fight for justice is our people – the thousands of men and women who have dedicated their careers, often at great personal sacrifice, to working for justice in America,” said Attorney General William P. Barr. “As we reflect on the contributions of each of the 357 individuals we honor today, we should hold them up as examples of excellence that continue to inspire our own commitment, and also as reminders of the professionalism and the qualities exhibited throughout the Department.”
###
Two New York Men Charged with Fentanyl TraffickingRead the Press Release
BOSTON – Two New York City men were arrested on Monday, Oct. 21, 2019, and charged with drug trafficking in federal court in Boston.
James De La Cruz, 28, and Juan Santos Roque, 46, were charged with conspiracy to distribute and possession with intent to distribute more than 400 grams of fentanyl. The defendants were arrested in Peabody, Mass., and remain in federal custody pending a detention hearing.
It is alleged that De La Cruz spoke with a cooperating witness several times in September and October 2019, and met with the cooperating witness to arrange a large drug shipment from New York to the Boston area. On Oct. 21, 2019, De La Cruz and Santos Roque drove from New York to Peabody, Mass. with approximately 10 kilograms of suspected fentanyl and six kilograms of suspected heroin in a hidden compartment in Santos Roque’s vehicle. After meeting with the cooperating witness, law enforcement agents arrested both men.
The charge of conspiracy to distribute more than 400 grams of fentanyl carries a mandatory minimum sentence of 10 years in prison and up to life in prison, at least five years of supervised release and a maximum fine of $10 million. 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 Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Valuable assistance was provided by the Federal Bureau of Investigation, Boston Field Division; the Drug Enforcement Administration, New England Field Division; the Massachusetts State Police; the Massachusetts Attorney General’s Office; and the Dartmouth and Peabody Police Departments. Assistant U.S. Attorney Stephen W. Hassink of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Individuals Sentenced for Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Ronnie Anthony Martinez, age 42, of Fresno, California, was sentenced to 152 months’ imprisonment and 5 years of supervised release; and Charles Dewey Sellers III, age 44, of Atlanta, Georgia, was sentenced to 241 months’ imprisonment and 5 years of supervised release for Drug Conspiracy, in violation of Title 21, United States Code, Sections 846, 841(a)(1) and 841(b)(1)(A). The charges arose from an investigation by the Sequoyah County Sherriff’s Office, the Drug Enforcement Administration (“DEA”) McAlester Resident Office, the DEA Fresno Enforcement Group 1, the DEA Atlanta HIDTA Group 1, the Georgia Bureau of Investigations, and the Oklahoma District 18 Drug Task Force.
The Superseding Indictment alleged that beginning in or about November 2017, and continuing until on or about June 26, 2018, within the Eastern District of Oklahoma and elsewhere, the defendants, Charles Dewey Sellers, III, and Ronnie Anthony Martinez willfully and knowingly combined, conspired, confederated and agreed with others known and unknown to the Grand Jury, to commit offenses against the United States in violation of Title 21, United States Code, Section 846 as follows: to possess with intent to distribute and to distribute 50 grams or more of methamphetamine (actual), a Schedule II controlled substance.
United States Attorney Brian J. Kuester said, “This investigation was led by agents in the DEA McAlester Resident Office and began as a result of information obtained by the Sequoyah County Sheriff’s Office. That information led investigators to numerous states and required assistance from other DEA offices and state and local agencies. Because of this team effort by agents and prosecutors in this office, a drug trafficking organization that had been distributing methamphetamine across several states has had its operations disrupted and its members are being held accountable.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearings. Assistant United States Attorney Shannon Henson represented the United States.Two Everett Men Charged with Money Laundering ConspiracyRead the Press Release
BOSTON – Two Everett men were indicted yesterday in connection with their role in a money laundering conspiracy.
Lindsley J. Georges, 27, and Dave Guillaume, 24, were indicted on one count of conspiracy to commit money laundering. The defendants were previously charged by criminal complaint in July 2019.
According to the indictment, in December 2017 and January 2018, customer accounts at Santander Bank and TD Bank were compromised and more than $900,000 fraudulent withdrawals were used to purchase bank checks in the names of several entities. Georges and Guillaume deposited the fraudulently obtained bank checks to business accounts they opened at TD Bank and Bank of America, after which they made substantial withdrawals of cash and checks. Guillaume allegedly opened two of the business accounts using false names, as well as a fraudulent driver’s license.
The charge of money laundering conspiracy provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $500,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement. Assistant U.S. Attorneys Leslie A. Wright and Mark J. Balthazard of Lelling’s Securities and Financial Fraud Unit are prosecuting the cases.
The details contained in charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Tulsa Man Sentenced for Stealing $426, 220 from his EmployerRead the Press Release
A former American Parking employee was sentenced today in U.S. District Court for defrauding BancFirst and his employer of $426,220.36, announced U.S. Attorney Trent Shores.
U.S. District Judge Claire V. Eagan sentenced Jerry Albert Wiley, 70, of Tulsa, to 24 months in federal prison to be followed by three years of supervised release. Judge Eagan further ordered restitution be paid to American Parking in the amount of $426, 220.32.
“White collar criminals can devastate small business owners who are vital contributors to our local economy,” said U.S. Attorney Trent Shores. “In this case, Defendant Wiley fraudulently stole nearly half a million dollars from his employer, American Parking. What he is learning now is that there are serious consequences for his greed fueled criminal acts.”
In his position as controller at American Parking, Wiley directed authorized funds transfers related to business expenses from the company’s corporate checking account at BancFirst. Starting Jan. 5, 2018, Wiley knowingly abused his position by transferring funds from American Parking’s accounts at BancFirst to accounts owned and controlled by one of Wiley’s acquaintances. The defendant claimed that he lost the funds after sharing them with an online acquaintance to pursue a personal investment opportunity. In return for the investment, Wiley had hoped to receive $100,000,000 from the acquaintance’s supposed inheritance.
The United States argued that Mr. Wiley was not a helpless victim but an experienced, well-educated professional motivated by greed. The prosecution contended that Wiley could have obtained the funds to assist his acquaintance through a number of legal means, but instead knowingly bilked American Parking out of nearly half a million dollars in order to eventually receive a greater payout from the promised “inheritance”.
The FBI conducted the investigation; Assistant U.S. Attorney Richard M. Cella prosecuted the case.
Texas meth ring handed massive sentencesRead the Press Release
McALLEN, Texas – Several Fort Worth area meth runners and their recruiter have been sentenced for their roles in a half-year meth importing conspiracy, announced U.S. Attorney Ryan K. Patrick. The case involved the seizure of seven meth loads with a combined weight of more than 150 kilograms.
Aren Reyes, 23, Teresa Gonzales, 27, Francisca Baez, 53, and Yesenia Garcia, 27, all of Fort Worth; and Ofelia Hernandez Vasquez, 26, Saginaw, pleaded guilty in late 2017.
Today, U.S. District Judge Micaela Alvarez handed the main recruiter - Reyes - a 240-month sentence to be immediately followed by three years of supervised release. Also sentenced today were drug mules Gonzales and Garcia, who received respective sentences of 58 and 60 months in federal prison. Vasquez was sentenced to a term of 40 months, while Baez was ordered to serve a 75-month term of imprisonment. Both were drug smugglers in the organization.
In handing down the sentences, the court noted this was not the only load of drugs Gonzalez, Garcia and Vasquez had smuggled and could have changed their minds at any time and not participated in the long drive from Fort Worth. The court also mentioned that even if Baez was unable to stop her son - Reyes - from narcotics trafficking, she could have avoided joining her son in his criminal activities. Prior to assessing the 20-year sentence upon Reyes, Judge Alvarez considered the number of individuals he recruited into the drug trafficking ring and how many he affected with such a serious and destructive drug as meth.
Reyes was the main recruiter of drug mules for this drug trafficking organization and would frequently accompany them to the Rio Grande Valley to coordinate the importation of the drugs into the U.S. She would also travel up to Houston and occasionally, to the state of Georgia. He would escort the mules to make sure they got the drugs successfully past ports of entry and checkpoints.
On April 30, 2017, Vasquez and her brother, Manuel Martinez, 40, Saginaw, Texas, were arrested at the Anzalduas port of entry with approximately 30 kilos of meth in their vehicle. The drugs were stashed in a load of milk and juice containers to try to avoid suspicion. Martinez was sentenced previously to 120 months in for his role in the crime.
The next months, Garcia and Gonzales were arrested at the Progreso port of entry. They attempted to smuggle 11 kilograms of meth into the country in their vehicle - hidden in bags of candy.
Reyes also used his boyfriend, Brandon Morrison, and his mother, Baez, in the scheme. On Aug. 6, 2017, Morrison and Baez pushed a cart loaded with drinks into the Brownsville Port of Entry from Mexico. Upon Investigation, authorities soon discovered 15 kilograms of meth hidden within the coconut water bottles in Morrison’s cart. Morrison previously received a 122-month sentence.
All will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney David A. Lindenmuth is prosecuting the cases.
Texas Man Convicted of Conspiring to File False Tax Returns with Stolen Identities Purchased on the InternetRead the Press Release
A Grand Prairie, Texas, resident was found guilty yesterday of conspiring to commit wire fraud, wire fraud, and aggravated identity theft, in connection with a scheme to file false tax returns using stolen identities, 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,” purchased from third parties more than 560 stolen identities of other people and used the stolen identities to file false tax returns with the Internal Revenue Service (IRS). These returns listed fake income and tax withholdings and sought fraudulent refunds, which Akoto and his co-conspirators loaded onto pre-paid debit cards. At one point, Akoto tried to purchase identities from a United States Secret Service undercover agent, asking through email how much it would cost to buy the “newest” identities. The wide-ranging conspiracy involved others in Texas, California, Georgia, and Ghana.
Akoto is scheduled to be sentenced on Jan. 29, 2020 by U.S. District Judge Steven J. McAuliffe. Akoto faces a statutory maximum sentence of 20 years in prison for conspiracy to commit wire fraud and each wire fraud offense. He also 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 for his role in the scheme. Quaye is scheduled to be sentenced on Nov. 5, 2019.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Murray thanked special agents of IRS–Criminal Investigations and the Secret Service, who conducted the investigation, and Trial Attorney Sean Green, and Assistant United States Attorney Arnold Huftalen, who tried the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Syracuse Man Sentenced to Nearly Four Years for Heroin and Fentanyl DistributionRead the Press Release
SYRACUSE, NEW YORK - Jondell Middlebrooks, age 39, of Syracuse, was sentenced today to serve 46 months in prison based on his guilty plea to the distribution, and possession with intent to distribute, heroin, fentanyl, and acetyl fentanyl, announced United States Attorney Grant C. Jaquith, Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Field Division, and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
In imposing the sentence, Chief United States District Judge Glenn T. Suddaby also ordered Middlebrooks to serve three years of supervised release following his term of incarceration, and ordered Middlebrooks to forfeit to the United States a money judgment reflecting the proceeds of his illegal activity. As part of his guilty plea, Middlebrooks admitted to distributing drugs on the south side of Syracuse from February through December 2018.
This case was investigated by the U.S. Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the Syracuse Police Department, Gang Violence Task Force, the New York State Police, and the Onondaga County Sheriff’s Office, and was prosecuted by Assistant U.S. Attorney Nicolas Commandeur.
Statement by U.S. Attorney Jessie K. Liu on D.C. Council Hearing Regarding Hate Crimes in the District of ColumbiaRead the Press Release
WASHINGTON – Jessie K. Liu, U.S. Attorney for the District of Columbia, issued the following statement regarding today’s hearing before the Council of the District of Columbia, Committee on the Judiciary & Public Safety, entitled “Hate Crimes in the District of Columbia and the Failure to Prosecute by the Office of the United States Attorney.”
The U.S. Attorney’s Office for the District of Columbia believes that prosecuting bias-related crimes is critical to keeping our community safe. When one member of a group is the victim of a bias-related crime, all members carry with them a fear that they, too, may be targeted because of who they are. The Office, in partnership with law enforcement, uses all appropriate prosecutorial tools to hold perpetrators of such crimes accountable. We also work constructively with the community to understand their concerns and to find ways to address those concerns.
This morning, I sent the Committee a letter regarding the Office’s investigation and prosecution of potential bias-related crimes. Among other things, the letter explains that the Office brings criminal charges in the vast majority of cases presented to us by our law enforcement partners as potential bias-related crimes. Of the 204 potentially bias-related incidents flagged by the Metropolitan Police Department (MPD) in 2018, only 59 resulted in arrests that were presented to the Office for prosecution. Similarly, of the 178 alleged bias-related incidents flagged by MPD in 2017, only 55 were presented for prosecution. In 2018, the Office brought charges for the underlying criminal offense in 52 of the 59 incidents. In 2017, the Office brought charges for the underlying criminal offense in 49 of the 55 incidents. As of June 30, 2019, MPD flagged 23 incidents resulting in arrests as potential bias-related crimes. The Office brought charges for the underlying criminal offense in 19 of the 23 incidents.
We also continue to engage energetically with the community on this issue, including hosting quarterly meetings of the Hate-Bias Task Force, a collaboration of agency and community partners in the District of Columbia who focus on addressing the needs of affinity groups in the city and combating bias-related crimes. In response to feedback from the community, we also have made several changes to our procedures for reviewing potential bias-related crimes, such as appointing an additional hate-crimes coordinator within the Office to review potential bias-related crimes and assist in their investigation and prosecution.
We regularly participate in open dialogue about combating bias-related crimes, and we will continue to have those conversations. But we will not testify in person at today’s hearing, as its title shows that the Committee has reached a conclusion – that the Office is failing to prosecute potential bias-related offenses – before a full and fair consideration of the facts. This unjustly maligns the Office’s dedicated career prosecutors, who carefully review every arrest identified as a potential bias-related crime and make principled charging decisions based solely on the law and the facts. We remain eager to work with all of our community partners to seek justice in potential bias-related crimes and to enhance public safety, and we look forward to doing so in a collaborative and open-minded fashion.
Southington Woman Admits Embezzling $370K from EmployerRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that LYDIA CABRERA, 36, of Southington, pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to one count of bank fraud related to an embezzlement scheme.
According to court documents and statements made in court, from approximately August 2016 to August 2018, Cabrera was employed by A2Z Home Medical Supplies (“A2Z”) as a bookkeeper. As part of her job responsibilities, Cabrera was given access to A2Z’s online merchant payment system. Approximately 10 days after being hired by A2Z, Cabrera began to use A2Z’s online merchant payment system to steal from the company by falsely representing that customers of A2Z had sought a return of their funds. On more than 200 occasions, Cabrera input her personal debit card information as the card to which the funds should be returned. Through this scheme, Cabrera embezzled approximately $370,000.
Cabrera was arrested on March 1.
Judge Meyer scheduled for sentencing for February 11, 2020, at which time Cabrera faces a maximum term of imprisonment of 30 years.
Following today’s court proceeding, Cabrera, who had been detained since her arrest, was released on bond pending sentencing.
This matter is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.
Sixteen indicted for trafficking large amounts of heroin and methamphetamine in Seattle areaRead the Press Release
Seattle – Federal, state and local law enforcement fanned-out across the Puget Sound region today arresting 17 people in connection with multiple counts of drug trafficking, announced U.S. Attorney Brian T. Moran. The drug trafficking organization brought large loads of heroin and methamphetamine into the Seattle area – in one instance law enforcement seized 33 pounds of meth and 14 pounds of heroin.
“Federal law enforcement continues to target those who seek to poison our communities and to line their pockets on the misery of others,” said U.S. Attorney Moran. “I commend the men and women of law enforcement who put their lives on the line to stem those who traffic in violence, addiction and death.”
“At the height of the opioid epidemic, the Pacific Northwest is also drowning in methamphetamine,” said DEA Special Agent in Charge Keith Weis. “Today’s enforcement operation is another example of the focused effort by law enforcement against those transnational distribution cells most responsible for opening the floodgates.” He further added, “In the last year, DEA working with other federal, state and local law enforcement, have seized 3,400 pounds of methamphetamine, representing a record amount for the region.”
The investigation into this criminal group began in September 2018 and utilized undercover purchases as well as various types of surveillance.
Of those arrested, fourteen are indicted for conspiracy to distribute controlled substances. Various individuals are indicted for specific instances of distributing methamphetamine, heroin or both. Three additional people were arrested and one of those people is charged by criminal complaint following today’s searches. Those indicted by the grand jury include:
Daniel Hernandez-Hernandez, 35, Seattle
Doriam German Moreno-Rocha, 29, SeaTac, Washington
Adrian Alberto Sanchez-Esparza, 30, Madera, California
Fernando Bautista-Sanchez, 43, Auburn, Washington
Angela Davina Encinas, 38, Auburn, Washington
Norberto Flores-Lopez, 22, Pacific, Washington
Faustino Islas-Estrada, 52, SeaTac, Washington
Omar Salazar, 32, Federal Way, Washington
Manuela Gabriele Zahn, 56, Olympia, Washington
Adam Mark Bishop, 35, Tacoma
Mitchell Eugene Vaughan, 33, Puyallup, Washington
Ryan Lee Isaksen, 28, Spanaway, Washington
Karissa Jean Mason, 36, Seattle
Anthony Jacques McKinney, 38, Lakewood, Washington
Luis Manuel Rivera-Leriget, 44, San Diego
Karina Rodriguez, 39, Newman, California
During today’s arrest operation law enforcement seized 4.5 pounds of meth and 13 pounds of heroin, $10,000 cash and six firearms. Over the course of the investigation, law enforcement seized 37.5 pounds of methamphetamine, 27 pounds of heroin and $40,000 in drug proceeds.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved.
The investigation was led by the Drug Enforcement Administration’s (DEA) Tacoma Resident Office and the Tahoma Narcotics Enforcement Team (TNET) and the Burien Police Department (BPD) Street Team. TNET is comprised of the Tacoma, Lakewood, Auburn, Bonney Lake, and Puyallup Police Departments, the Pierce County Sheriff’s Office and the Washington State Department of Corrections (DOC). Other assisting agencies include the Kent Police Department and the King County Sheriff’s Office SeaTac Police Department Street Team. The investigation was supported by North West High Intensity Drug Trafficking Area (NW HIDTA).
In addition to the agencies listed above, these law enforcement agencies assisted with the arrests and search warrants executed today: King County SWAT, Valley SWAT, Pierce County SWAT, Washington State Patrol SWAT, Lakewood Police Tactical Team, Valley Narcotics Enforcement Team (VNET), Joint Narcotics Enforcement Team (VNET), West Sound Narcotics Enforcement Team (WestNet), Lewis County Sheriff’s Office, Grays Harbor Sheriff’s Office, Hoquiam Police Department and Aberdeen Police Department.
The case is being prosecuted by Assistant United States Attorneys Andrew Colasurdo and Marci Ellsworth.
DEA Drug and cash seized in investigationSix Men Charged in Federal Indictment Alleging Armed Robbery Spree of Cell Phone Stores throughout Southern CaliforniaRead the Press Release
RIVERSIDE, California – Six men have been arrested on federal charges alleging they committed a spree of armed robberies this year at Southern California cellphone stores, holding store employees at gunpoint, sometimes zip-tying them, then stealing a total of nearly $200,000 worth of electronic devices and cellular telephones.
The defendants were named in a five-count federal grand jury indictment unsealed yesterday that alleges conspiracy to interfere with commerce in violation of the Hobbs Act, two specific Hobbs Act violations, and two counts of using a firearm during the robberies. A December 17 trial date has been set in this case.
Anthony Wimbley, 27, of Irvine, was arraigned this afternoon in United States District Court in Riverside. He pleaded not guilty and was ordered released on $80,000 bond. The other defendants are:
- Robert Wimbley, 26, of Pomona, and Darron Wimbley, 28, of Fontana, both of whom were arraigned in federal court yesterday and have been ordered detained;
- Edward Eugene Robinson, 48, of Long Beach; and Aaron Tremmell Hardrick, 32, of Fort Worth, Texas, who are in custody in Texas, and who also face charges there based on their alleged violations of the Hobbs Act; and
- Djovonte Lewis, 22, of Pomona, who is in local custody.
The indictment alleges that between March 18 and September 8, the defendants conspired to rob cellular phone stores in Chino, Fullerton, Long Beach, Victorville and Beaumont. The defendants allegedly targeted for theft cell phones that did not contain tracking devices.
For example, on August 19, Hardrick and two unidentified co-conspirators, wearing masks and with one of them brandishing a handgun, stole approximately $65,000 worth of electronic devices and cellular telephones from a Sprint store in Victorville, the indictment alleges. During the robbery, one of the store’s employees was bound with zip-ties and was forced to lay on the ground.
In total, the defendants allegedly stole approximately $191,053 in cell phones and electronic devices, and approximately $2,434 in cash.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
A violation of the Hobbs Act carries a statutory maximum penalty of 20 years in federal prison. The offense of brandishing a firearm during a crime of violence carries a statutory maximum sentence of life imprisonment.
This matter was investigated by the FBI, the United States Attorney’s Office for the Northern District of Texas, the Orange County District Attorney’s Office, the San Bernardino County District Attorney’s Office, the Chino Police Department, the Fullerton Police Department, the Long Beach Police Department, the San Bernardino County Sheriff’s Department, the Beaumont Police Department, and the Pomona Police Department.
This case is being prosecuted by Assistant United States Attorney Jerry C. Yang of the Riverside Branch Office.
Sex offender sent to prison for immigration and SORNA violationsRead the Press Release
CORPUS CHRISTI, Texas - A 57-year-old convicted felon and Guatemalan national has been sentenced to federal prison for violating the Sex Offender Registration and Notification Act (SORNA) and unlawfully returning to the United States after removal proceedings, announced U.S. Attorney Ryan K. Patrick.
Today, U.S. District Judge Nelva Gonzales Ramos ordered Jose Paxtor-Chiroy to serve 30 months each for the SORNA and immigration convictions, respectively. The sentences will be served concurrently. At the hearing, the court heard evidence regarding Paxtor-Chiroy’s previous convictions for aggravated sexual assault of a 5-year-old victim and molesting another child victim. After serving those sentences, he was ordered to register as a sex offender for life and ordered removed from the county. The court also noted he had been previously removed in 1992. Not a U.S. citizen, he will again be expected to face removal proceedings.
Law enforcement discovered Paxtor-Chiroy Feb. 27, 2018, walking through a ranch near Sarita attempting to avoid detection. He admitted he had traveled across the Rio Grande River near Hidalgo before being discovered.
Under SORNA, convicted sex offenders must provide registration updates annually or quarterly, depending on the reportable conviction.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Reid Manning is prosecuting the case.
Sacramento County Resident Indicted for Illegally Exporting Turtles to Hong KongRead the Press Release
SAN JOSE - A federal grand jury indicted Keri Zhang Wang with smuggling wildlife from the United States and false labeling of exports, announced United States Attorney David L. Anderson and United States Fish and Wildlife Service Office of Law Enforcement Special Agent in Charge Daniel Crum.
The indictment was filed October 21 and unsealed earlier today. According to the indictment, Zhang Wang, 21, of Elk Grove, Calif., smuggled at least eleven packages containing box turtles and map turtles from California to Hong Kong between September 13, 2016, and June 2019. Box turtles and map turtles are protected under the Convention on International Trade in Endangered Species of Wild Fauna and Flora, an international treaty to which the United States and Hong Kong are signatories. The treaty is enforced in the United States under the Endangered Species Act, 16 U.S.C. § 1531, et seq.
The indictment alleges that Zhang Wang did not have the required permits to export the turtles from the United States. Zhang Wang allegedly secured each turtle inside a sock so that its movement was restrained, hindering each turtle’s ability to make noise and concealing its presence in each package. She then allegedly placed each turtle in a shoebox with packing materials and placed the shoebox under bags of snacks and chips for shipping. The indictment further alleges that Zhang Wang labeled each package but did not label the packages as containing turtles, nor did she obtain a permit to export the turtles or declare them to a U.S. official upon shipping.
In sum, Zhang Wang was charged with four counts of smuggling goods from the United States, in violation of 18 U.S.C. § 554, and four counts of Lacey Act false labeling, in violation of 16 U.S.C. §§ 3372(d)(2) and 3373(d)(3)(A)(i).
Zhang Wang is scheduled to make her initial appearance in federal court in the Northern District of California on October 29, 2019, in San Jose.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Zhang Wang faces a maximum sentence of ten years’ imprisonment and a fine of $250,000 for the 18 U.S.C. § 554 violation and a maximum sentence of five years’ imprisonment and a fine of $250,000 for the 16 U.S.C. §§ 3372(d) and 3373(d)(3)(A)(i) violation. In addition, the court may order the defendant to serve an additional period of supervised release and restitution, if appropriate. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Maia Perez is prosecuting the case. The prosecution is the result of an investigation by the United States Fish and Wildlife Service Office of Law Enforcement.
Ryan A. Shores Appointed as Associate Deputy Attorney General and Senior Advisor for Technology IndustriesRead the Press Release
Deputy Attorney General Jeffrey A. Rosen today announced the appointment of antitrust litigator Ryan A. Shores as Associate Deputy Attorney General and Senior Advisor for Technology Industries. Shores will serve in the Office of the Deputy Attorney General, which oversees all of the Department’s civil and criminal litigating components, including the Antitrust Division. As previously announced, the Department has underway an antitrust review of market-leading online platforms.
“The addition of Associate Deputy Attorney General Ryan A. Shores for this important role reflects the significance of the Department’s review of competitive conditions among online platforms,” said Deputy Attorney General Jeffrey A. Rosen. “His years of high-stakes antitrust and litigation expertise will bring invaluable experience to the review as he works closely with our Antitrust Division.”
Previously, Associate Deputy Attorney General Shores was a partner at an international law firm. Earlier in his career, he served as a law clerk for Chief Justice William H. Rehnquist of the United States Supreme Court. He also clerked for Judge Kenneth F. Ripple of the U.S. Court of Appeals for the Seventh Circuit.
As previously announced, the Department of Justice’s review will “assess the competitive conditions in the online marketplace in an objective and fair-minded manner and … ensure Americans have access to free markets in which companies compete on the merits to provide services that users want.” The Department of Justice will vigorously seek to remedy any violations of law, if any are found.
Rochester Man Pleads to Fentanyl ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Angel Fernando, 29, of Rochester, NY, pleaded guilty before U.S. District Judge David G. Larimer to conspiracy to distribute 40 grams or more of fentanyl. The charge carries a minimum penalty of five years in prison, a maximum penalty of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney Cassie Kocher, who is handling the case, stated that between August and December 11, 2018, the defendant conspired with others sell fentanyl. After a lengthy investigation, a search warrant was executed at Fernando’s residence and a quantity of fentanyl was seized.
Fernando is one of eight defendants charged and convicted in this case.
The plea is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Rochester Police Department, under the direction of Chief La’Ron Singletary; U.S. Border Patrol, under the direction of Patrol Agent-in-Charge Luis R. Tafoya; the Federal Bureau of Investigation, Rochester Office, under the direction of Special Agent-in-Charge Gary Loeffert; and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
Sentencing is scheduled for December 17, 2019, at 3:30 p.m. before Judge Larimer.
# # # #
Reedley Man Convicted of Drug and Gun ChargesRead the Press Release
FRESNO, Calif. — On Wednesday, after a two–day trial, a jury found Netzahualcoyotl Cerna, 40, of Fresno, guilty of one count of carrying a firearm during a drug trafficking crime, being a felon in possession of a firearm, and possession with intent to distribute methamphetamine, U.S. Attorney McGregor W. Scott announced.
According to evidence presented at trial, on April 8, 2019, Cerna, a convicted felon, was arrested in Reedley for parole violations. Cerna was in possession of a loaded gun and approximately 121 grams of methamphetamine. Cerna admitted to law enforcement officers that he intended to sell the methamphetamine to make money and that he was carrying the firearm for protection because gang members were trying to tax his drug proceeds.
This case is the product of an investigation by the Drug Enforcement Administration, the California Department of Corrections and Rehabilitation, and the Reedley Police Department. Assistant U.S. Attorneys Katherine Schuh and Kathleen Servatius are prosecuting the case.
Cerna is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Jan. 27, 2020. Cerna faces a mandatory minimum sentence of 15 years in prison, and a maximum statutory penalty of life in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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.
Red Lake Man Pleads Guilty to Assaulting Three Individuals with A FirearmRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of DILLON GEORGE TAYLOR, 21, for assaulting three individuals with a firearm. TAYLOR pleaded guilty on October 22, 2019, before Chief Judge John R. Tunheim in U.S. District Court in Minneapolis, Minnesota. He is scheduled to be sentenced on February 21, 2020.
According to the defendant’s guilty plea and documents filed in court, on November 22, 2018, during a confrontation with two individuals, TAYLOR pointed a firearm at one of the individuals and threatened his life. When the two individuals left the scene in a vehicle driven by a third individual, TAYLOR pursued them and shot at the vehicle multiple times. When the vehicle pulled into the parking lot of a casino located on the Red Lake Indian Reservation, TAYLOR continued his pursuit, firing a shot towards the entrance of the casino where the three individuals and casino personnel were standing.
This case is the result of an investigation conducted by the Red Lake Tribal Police Department and the FBI Headwaters Safe Trails Task Force.
Assistant United States Attorney Alexander D. Chiquoine is prosecuting the case.
Defendant Information:
DILLON GEORGE TAYLOR, 21
Red Lake, Minn.
Convicted:
- Assault with a dangerous weapon, 1 count
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
Pueblo Man Sentenced to Federal Prison for Heroin DistributionRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Mario Mercado, age 39, of Pueblo, Colorado, was sentenced today by U.S. District Court Judge William J. Martinez to serve 33 months in federal prison for possession with intent to distribute heroin. Following the prison sentence, Judge Martinez ordered Mercado to serve 4 years on supervised release. The defendant appeared at the sentencing hearing in custody, and was remanded to the U.S. Marshals custody at its conclusion.
According to the stipulated facts contained in Mercado’s plea agreement, on October 28, 2017, the defendant sold 5 ounces of heroin for $5,500 to a confidential human source (CHS) acting at the direction of the FBI. The sale took place at a residence in Pueblo. Further investigation revealed that Mercado received 15 ounces of heroin with intent to distribute it. Of the 15 ounces, he sold 5 ounces to the CHS, used some, and threw some out a window so police would not find it.
“Heroin continues to be a significant problem in Pueblo and Southern Colorado more generally,” said U.S. Attorney Jason Dunn. “Dealers should know that federal law enforcement is coming for them with renewed vigor.”
"Heroin distribution harms our communities and will not be tolerated,” said FBI Denver Special Agent in Charge Dean Phillips. “The FBI is committed to work with our partners to identify and disrupt those that enable the heroin epidemic which continues to spread throughout the state.”
Mercado was indicted by a federal grand jury in Denver on July 11, 2018. He pled guilty on February 12, 2019. He was sentenced today, October 23, 2019.
This case was investigated by the FBI. The defendant was prosecuted by Assistant U.S. Attorney Justin DeRosa.
Prominent Business Owner and Ex-Board Member of Philadelphia Non-profits Sentenced to 17 ½ Years in PrisonRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Gary Frank, 48, of Philadelphia and Bala Cynwyd, PA, was sentenced to 210 months’ imprisonment, five years supervised release and ordered to pay $33,702,900 in restitution by United States District Judge Gerald Pappert for executing a massive fraudulent loan scheme, for which he was indicted in March 2018 on charges of wire fraud, bankruptcy fraud, and money laundering, and to which he subsequently pleaded guilty in April 2019. Immediately following the sentencing hearing, the defendant was taken into custody to begin serving his jail sentence.
For over a decade, the defendant executed a complex and sophisticated scheme to defraud numerous victims. Frank owned and operated a Bala Cynwyd business named the Legal Coverage Group, Ltd., which contracted with employers desiring to offer a legal plan to their employees as part of their benefits plans. Frank tricked his victims into believing that the Legal Coverage Group was a rapidly growing leader in the legal services industry, generating hundreds of millions of dollars of annual revenue and employing hundreds of individuals. In reality, Frank’s business experienced virtually no growth from approximately 2006 through 2017, and generated only several thousand dollars of annual revenue.
Through this fraud, the defendant obtained over $30 million in loans, which he used to live an extravagant lifestyle, including finagling his way into the cultural scene in Philadelphia with positions on the boards of the Philadelphia Orchestra and the Philly Pops. The defendant’s largest victims were banks and financial institutions, which loaned the Legal Coverage Group millions of dollars based upon the defendant’s lies. The defendant also allegedly deceived many individuals and other entities, including several of his close friends, his company’s staff members, its advisors, customers, vendors, and local charities.
“Gary Frank is nothing but a con man and now he’s where he belongs – in a prison cell. And he will be there for a very long time,” said U.S. Attorney McSwain. “His greed and his lies were bound to catch up with him, and they did. My Office will continue to work aggressively with our law enforcement partners to protect innocent individuals and businesses from being victimized by financial fraud.”
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Patrick J. Murray.
President of Puerto Rican-based Engineering Company Pleads Guilty to Procurement Fraud and Kickbacks Related to Federal Courthouse Repairs in St. CroixRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands announced today that Reinaldo Cruz Taura, president of Puerto Rico-based RCT Mechanical Engineering, pleaded guilty to providing kickbacks in connection with federal government subcontracts to perform work on the federal building and courthouse in St. Croix, VI and on coast guard facilities in Puerto Rico. Taura will be sentenced at a later date.
According to court documents filed in the case, from June 2011 through June 2015, Taura paid over $1.2 million in kickbacks to a senior project manager for the prime contractor on the St. Croix and Puerto Rico projects. In addition, Taura falsely inflated the expenses billed under the subcontract in order to cover the costs of the aforementioned kickbacks.
This case is being investigated by the General Services Administration – Office of the Inspector General, the Department of Veterans Affairs - Office of the Inspector General, the Naval Criminal Investigative Service, the Department of Agriculture – Office of the Inspector General, the Coast Guard Investigative Service, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Nathan Brooks and Jennifer Blecher.
Pike County Man Convicted of Federal Gun and Drug ChargesRead the Press Release
Montgomery, Alabama – On Tuesday, October 22, 2019, Osie Lee Davis., a 48-year-old resident of Troy, Alabama, was found guilty of six counts of possessing illegal drugs with intent to distribute, one count of being a felon in possession of a firearm, and one count of possessing a firearm in connection with a drug trafficking offense, announced United States Attorney Louis V. Franklin, Sr. All eight counts stem from conduct that occurred in Troy, Alabama on January 31, 2017 and October 5, 2018.
Evidence presented at trial showed that just before midnight on January 31, 2017, the Troy Police Department observed Davis driving a vehicle with the headlights off and performed a traffic stop. The officer discovered that Davis had a suspended license and outstanding arrest warrants. When the Officer took Davis into custody and searched him, they discovered multiple drugs, which were packaged for sale, inside a pouch in his jacket pocket. The narcotics included marijuana, methamphetamine, cocaine, and clonazepam. A handgun was also found next to the driver’s seat of the vehicle. Davis had a previous felony conviction and is prohibited by federal law from possessing a firearm.
A second encounter occurred on October 5, 2018 in Troy, just after midnight. Troy police conducted a traffic stop due to a headlight being out and, while arresting Davis for another outstanding warrant, found cocaine and marijuana in the vehicle. Once Davis was taken into custody and booked into the Troy City Jail, several additional baggies of cocaine, which were packaged for sale, were discovered in one of his shoes.
A sentencing hearing will take place in the next few months. Because of his significant criminal history, Davis is facing a sentence ranging from 30 years to life in prison.
The Troy Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated this case, with assistance from the Alabama Department of Forensic Sciences.
Assistant United States Attorneys Eric Counts and Robert Nichols prosecuted this case.
Owner of Hudson County, New Jersey, Scrap Metal Company Sentenced to 33 Months in Prison for 17-Year Conspiracy to Defraud CustomersRead the Press Release
NEWARK, N.J. – The minority owner of Cinelli Iron & Metal Co. (CIMCO) was sentenced today to 33 months in prison for operating a 17-year conspiracy that defrauded customers out of millions of dollars, U.S. Attorney Craig Carpenito announced.
Craig Cinelli, 49, of Allendale, New Jersey, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to Count One of an indictment that charged him with conspiracy to commit wire fraud. Judge Wigenton imposed the sentence today in Newark federal court.
David Barteck, 53, of Wood Ridge, New Jersey, the former chief financial officer of CIMCO, and Michael A. Valenti III, 43, of Hasbrouck Heights, New Jersey, the former senior vice president of sales at CIMCO, each previously pleaded guilty before Judge Wigenton to participating in the conspiracy. Barteck is scheduled to be sentenced Nov. 6, 2019, and is scheduled to be sentenced Nov. 4, 2019.
According to documents filed in this case and statements made in court:
CIMCO, which was headquartered in Secaucus, New Jersey, purchased scrap metal for resale and operated three scrap metal recycling facilities in New Jersey. CIMCO trucks would deliver scrap metal containers to customer jobsites and remove them after they were filled. CIMCO then purportedly paid customers based on the type and net weight of the scrap material.
From 1999 through March of 2016, Craig Cinelli, his brother, Joseph Cinelli Sr., Barteck, Valenti, and others allegedly used a variety of fraudulent business practices to buy scrap metal from CIMCO’s customers for less than CIMCO should have paid. The company then resold the scrap metal at a profit.
Instead of paying the proper, agreed-upon amounts for the actual weight, members of the conspiracy used a variety of techniques to misrepresent the true weight and type of the scrap metal, including altering documents to reflect a lower weight, removing scrap metal from a haul before it was weighed and misrepresenting the types of scrap metal contained in a haul. Cinelli admitted that the loss caused by the conspiracy that was reasonably foreseeable to him was more than $9.5 million, but less than $25 million.
In addition to the prison term, Judge Wigenton sentenced Cinelli to three years of supervised release. Restitution will be determined at a later date.
Charges against Joseph Cinelli Sr. were dismissed following his death in 2018.
U.S. Attorney Carpenito credited special agents with the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael Mikulka in New York; special agents with the U.S. Department of Transportation, Office of Inspector General, under the direction of Special Agent in Charge Douglas Shoemaker in New York; and special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Daniel Shapiro of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense counsel: Ray Flood Esq., Hackensack, New Jersey
Owner of Duluth Dental Practice Pleads Guilty to Tax FraudRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of GARY JAMES HEDIN, 41, former owner of Downtown Dental Care LLC, a dental practice located in Duluth, Minnesota, for failing to account for and pay over employment taxes to the Internal Revenue Service. HEDIN, who was charged on September 30, 2019, entered his guilty plea on October 22, 2019, before Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minnesota. He is scheduled to be sentenced on February 20, 2020.
According to the defendant’s guilty plea and documents filed in court, HEDIN failed to file required tax returns and pay employment taxes withheld from the wages of his employees for tax years 2012 through 2017. HEDIN instead used the money to fund a lavish lifestyle, including vacations, adult entertainment, memberships in private social clubs, and jewelry purchases. HEDIN admitted that he owes $158,958 in unpaid taxes to the IRS for the relevant tax years.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS.
Assistant United States Attorney Michelle E. Jones is prosecuting the case.
Defendant Information:
GARY JAMES HEDIN, 41
Duluth, Minn.
Convicted:
- Failure to account for and pay over employment taxes, 1 count
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
October Grand JuryRead the Press Release
United States Attorney Joe Kelly announced the federal Grand Jury for the District of Nebraska has returned 15 indictments charging 18 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Craig A. Harbaugh, 44, a Dodge County Sheriff’s Deputy, is the subject of a 15-count Indictment. Counts 1 through 13 charge Wire Fraud between October 2014 and October 2019. It is alleged that Harbaugh and his company, Tactical Solutions Gear, LLC, defrauded a bank and six victims of $10,979,214. The remaining counts charge Harbaugh with Bank Fraud resulting from the same scheme. Harbaugh was arrested and had his initial appearance on October 23, 2019 in federal court in Omaha.
* Jose G. Aguilera Negrete, age 27, and Andrea Gall, age 20, of Grand Island, Nebraska, are charged in a four-count Indictment. Count I charges both defendants with possession with intent to distribute 500 grams or more of methamphetamine (mixture) on or about October 4, 2019. The maximum possible penalty if convicted is Life imprisonment each, $10,000,000 fine each, 5-year term of supervised release each, and a $100 special assessment each. Count II charges Aguilera Negrete with distribution of 5 grams or more of methamphetamine (actual) on or about December 5, 2018. The maximum possible penalty if convicted is 40 years’ imprisonment, $5,000,000 fine, 5-year term of supervised release, and a $100 special assessment. Count III charges Aguilera Negrete with distribution of 50 grams or more of methamphetamine (actual) on or about December 11, 2018. The maximum possible penalty if convicted is Life imprisonment, $10,000,000 fine, 5-year term of supervised release, and a $100 special assessment. Count IV charges Aguilera Negrete with distribution of 50 grams or more of methamphetamine (actual) on or about December 19, 2018. The maximum possible penalty if convicted is Life imprisonment, $10,000,000 fine, 5-year term of supervised release, and a $100 special assessment.
* Merlin Calles-Jovel, age 28, is charged with illegal reentry after deportation on or about October 10, 2019. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a 1-year term of supervised release, and a $100 special assessment.
* Adelfo Diaz-Castelan, age 28, is charged with illegal reentry after deportation on or about September 24, 2019. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a 1-year term of supervised release, and a $100 special assessment.
* Demontrae Dixon, age 21, is charged with user in possession of a firearm on or about August 16, 2019. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Merrill Johnston, age 35, of North Platte, Nebraska, is charged in a two-count Indictment. Count I charges the defendant with possession with intent to distribute 50 grams or more of methamphetamine (mixture) on or about September 13, 2019. The maximum possible penalty if convicted is 40 years’ imprisonment, $5,000,000 fine, 4-year term of supervised release, and a $100 special assessment. Count II charges the defendant with felon in possession of a firearm on or about September 13, 2019. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment. There is also an allegation to forfeit United States currency seized on or about September 13, 2019.
* Juan Antonio Lopez Ambrocio, age 41, is charged with illegal reentry after deportation on or about April 15, 2019. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a 1-year term of supervised release, and a $100 special assessment.
* Warren Mackey, age 65, of Niobrara, Nebraska, is charged in a two-count Indictment. Count I charges the defendant with Aggravated Sexual Assault of a child under the age of 12, from on or about August 4, 2019. The maximum possible penalty if convicted is 30 years-Life imprisonment, a $250,000 fine, a 5-year term of supervised release, and a $100 special assessment. Count II charges the defendant with Abusive Sexual Contact from on or about August 4 2019. The maximum possible penalty if convicted is Life imprisonment, a $250,000 fine, a 5-year term of supervised release, and a $100 special assessment.
* Zachary R. Macomber, age 27, of Annapolis, Minnesota, and Drake L. Banks, age 28, of St. Louis, Missouri, are charged with felon in possession of a firearm by a prohibited person on or about September 19, 2019. The maximum possible penalty if convicted is 10 years’ imprisonment each, a $250,000 fine each, a 3-year term of supervised release each, and a $100 special assessment each.
* Felipe Samuel-Gomez, age 33, is charged with illegal reentry after deportation following a felony conviction on or about October 3, 2019. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Skyler F. Sanders, age 33, of Omaha, is charged with possession with intent to distribute 28 grams or more of crack cocaine on or about October 3, 2019. The maximum possible penalty if convicted is 40 years’ imprisonment, $5,000,000 fine, 3-year term of supervised release, and a $100 special assessment.
* Jose Feliciano Tovar-Quintero, age 41, and Wilfredo Diaz-Lopez, age 36, are charged in a three-count Indictment. Count I charges both defendants with conspiracy to distribute 50 grams or more of methamphetamine (mixture) on or about September 4, 2019 and continuing to on or about October 3, 2019. The maximum possible penalty if convicted is 40 years’ imprisonment each, $5,000,000 fine each, 4-year term of supervised release each, and a $100 special assessment each. Count II charges Diaz-Lopez with possession with intent to distribute of 50 grams or more of methamphetamine (mixture) on or about October 3, 2019. The maximum possible penalty if convicted is 40 years’ imprisonment, $5,000,000 fine, 4-year term of supervised release, and a $100 special assessment. Count III charges Tovar-Quintero with possession with intent to distribute of 50 grams or more of methamphetamine (mixture) on or about October 3, 2019. The maximum possible penalty if convicted is 40 years’ imprisonment, $5,000,000 fine, 4-year term of supervised release, and a $100 special assessment. There is also an allegation to forfeit United States currency seized on or about October 3, 2019.
* Elmer Eduvi Vasquez Fuentes, age 38, is charged with illegal reentry after deportation on or about September 16, 2019. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a 1-year term of supervised release, and a $100 special assessment.
* Johnnie White, age 33, of Heatwell, Nebraska, is charged in a two-count Indictment. Count I charges the defendant with distribution of 50 grams or more of methamphetamine (mixture) on or about May 14, 2019. The maximum possible penalty if convicted is 40 years’ imprisonment, $5,000,000 fine, 4-year term of supervised release, and a $100 special assessment. Count II charges the defendant with distribution of methamphetamine (mixture) on or about May 10, 2019. The maximum possible penalty if convicted is 20 years’ imprisonment, $1,000,000 fine, 3-year term of supervised release, and a $100 special assessment.
Northwood Man Sentenced to 70 Months for Possession of Child PornographyRead the Press Release
CONCORD - James Goodwin, 53, of Northwood, was sentenced on Tuesday to 70 months in federal prison for possession of child pornography, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, in the fall of 2018, a North Carolina undercover police officer was conducting an online investigation into individuals involved in the trading of illegal images of child pornography. Goodwin was identified after he uploaded numerous images of child sexual abuse into a chatroom which were downloaded by the undercover officer. Forensic examinations of several of Goodwin’s electronic devices revealed images depicting the sexual assaults of children.
“The law enforcement community is committed to protecting children,” said U.S. Attorney Murray. “Innocent children are victimized when child pornography is created. Those who trade or distribute these images exacerbate that harm and will be held accountable for their conduct.”
“By viewing and distributing these images, Goodwin re-victimized these innocent child victims who were abused in the original production of such images.” said Jason J. Molina, acting special agent in charge of HSI Boston. “Together with our federal and local partners, HSI remains dedicated to combatting the threat that depraved, online child predators like Goodwin pose. We will never waiver in our commitment to fighting for justice for the victims of those who traffic in these sickening images.”
This matter was investigated by Immigration and Customs Enforcement’s Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorney Georgiana L. Konesky.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
###
Nigerian Citizen Sentenced for Role in International Cyber-Fraud SchemeRead the Press Release
Memphis, TN – A citizen of Nigeria residing in Atlanta, Georgia, was sentenced to 78 months in prison yesterday for his role in an international cyber fraud scheme, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney D. Michael Dunavant of the Western District of Tennessee.
Olufolajimi Abegunde, 31, was sentenced by U.S. District Judge Sheryl L. Lipman of the Western District of Tennessee who also ordered Abegunde to pay $57,911.62 in restitution to the victims of his offense. Abegunde and Javier Luis Ramos-Alonso, 29, were convicted in March after a seven-day trial in the U.S. District Court for the Western District of Tennessee. Ramos-Alonso previously received a 31-month sentence for his role in the scheme.
Abegunde and Ramos-Alonso participated in a criminal organization in which members "spoofed" emails and created fake profiles on dating websites in order to fool victims into sending money to bogus bank accounts under the control of members of the conspiracy. The proceeds would be laundered and subsequently wired out of the United States to destinations including West Africa. The organization as a whole is believed to have caused more than $10,000,000 in damage to United States citizens and businesses.
U.S. Attorney D. Michael Dunavant said: "Frauds perpetrated through the Internet cause significant financial harm to businesses and individuals in our District and throughout the United States. Because those committing Internet fraud involve foreign nationals and others who hide behind technology, the cases are difficult – but not impossible – to investigate. We will continue to deploy our resources to take on these difficult cases, and we are pleased to achieve justice for the victims in this case."
The evidence presented at trial showed that Abegunde, who received an MBA from Texas A&M University in College Station, Texas, engaged in black-market currency exchanges over the life of the conspiracy. Purporting to hold himself out as a legitimate
businessman, Abegunde claimed association with a business entity that was not yet operational in late 2017, so for his primary source of income he relied on his off-the-book currency exchanges. Through this network, Abegeunde played a key role, along with Ramos-Alonso, in laundering fraud funds from an Oct. 3, 2016, business email compromise (BEC) of a land title company located in Bellingham, Washington. The proceeds of another BEC perpetrated in July 2016 upon a real estate company in Memphis, Tennessee, also moved through parts of the same criminal organization.
Abegunde, who faced numerous account closures from banks in the United States, used a complicated network of third-party bank accounts to disguise his illicit activity. The proof at trial established that Abegunde told people that he could not receive payments into accounts that could be "tracked," and that he preferred to engage in cash transactions because they were easier to clean and "eliminated the risk."
In addition to his financial activities, Abegunde also engaged in a conspiracy to commit marriage fraud. Abegunde was married during his studies at Texas A&M, but divorced his wife in 2016 to marry a U.S. service member through whom he could obtain immigration and health care benefits and also open new bank accounts. He continued to live with his first wife in Atlanta while his U.S. service member wife was deployed to South Korea. While incarcerated and awaiting trial in the Western District of Tennessee, Abegunde continued his conspiratorial activities, trying to convince his fake spouse, who has since filed for divorce, to refuse to testify against him. Abegunde is contesting the divorce from his fake spouse. Abegunde also engaged in witness tampering by sending a self-written Motion to Dismiss bearing his former attorney’s name and professional attestation. The evidence at trial established that Abegunde drafted and sent the motion, which his attorney expressly did not authorize, to his faux spouse in an effort to deceive her into not testifying against him.
Five other individuals have pleaded guilty to being involved in the scheme. Additionally, three foreign nationals are awaiting extradition to the United States to face trial. Several others are still at large.
The FBI’s Memphis Field Office investigated the case with assistance from agents in Atlanta and San Jose, California. Senior Trial Attorney Timothy C. Flowers with the Department of Justice’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Debra L. Ireland prosecuted the case.
For more information or to view a list of aliases used by members of the conspiracy on dating websites and social media, visit https://www.justice.gov/usao-wdtn/victim-witness-program.
# # #