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Wednesday 16 October 2019
South Korean National and Hundreds of Others Charged Worldwide in the Takedown of the Largest Darknet Child Pornography Website, Which was Funded by BitcoinRead the Press Release
WASHINGTON – Jong Woo Son, 23, a South Korean national, was indicted by a federal grand jury in the District of Columbia for his operation of Welcome To Video, the largest child sexual exploitation market by volume of content. The nine-count indictment was unsealed today along with a parallel civil forfeiture action. Son has also been charged and convicted in South Korea and is currently in custody serving his sentence in South Korea. An additional 337 site users residing in Alabama, Arkansas, California, Connecticut, Florida, Georgia, Kansas, Louisiana, Maryland, Massachusetts, Nebraska, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Texas, Utah, Virginia, Washington State and Washington, D.C. as well as the United Kingdom, South Korea, Germany, Saudi Arabia, the United Arab Emirates, the Czech Republic, Canada, Ireland, Spain, Brazil and Australia have been arrested and charged.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jessie K. Liu for the District of Columbia, Chief Don Fort of IRS Criminal Investigation (IRS-CI) and Acting Executive Associate Director Alysa Erichs of U.S. Immigration and Customs Enforcement (ICE)’s Homeland Security Investigations (HSI), made the announcement.
“Darknet sites that profit from the sexual exploitation of children are among the most vile and reprehensible forms of criminal behavior,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “This Administration will not allow child predators to use lawless online spaces as a shield. Today’s takedown demonstrates that the Department of Justice remains firmly committed to working closely with our partners in South Korea and around the world to rescue child victims and bring to justice the perpetrators of these abhorrent crimes.”
“Children around the world are safer because of the actions taken by U.S. and foreign law enforcement to prosecute this case and recover funds for victims,” said U.S. Attorney Jessie K. Liu. “We will continue to pursue such criminals on and off the darknet in the United States and abroad, to ensure they receive the punishment their terrible crimes deserve.”
Through the sophisticated tracing of bitcoin transactions, IRS-CI special agents were able to determine the location of the Darknet server, identify the administrator of the website and ultimately track down the website server’s physical location in South Korea,” said IRS-CI Chief Don Fort. “This largescale criminal enterprise that endangered the safety of children around the world is no more. Regardless of the illicit scheme, and whether the proceeds are virtual or tangible, we will continue to work with our federal and international partners to track down these disgusting organizations and bring them to justice.”
“Children are our most vulnerable population, and crimes such as these are unthinkable,” said HSI Acting Executive Associate Director Alysa Erichs. “Sadly, advances in technology have enabled child predators to hide behind the dark web and cryptocurrency to further their criminal activity. However, today’s indictment sends a strong message to criminals that no matter how sophisticated the technology or how widespread the network, child exploitation will not be tolerated in the United States. Our entire justice system will stop at nothing to prevent these heinous crimes, safeguard our children, and bring justice to all.”
According to the indictment, on March 5, 2018, agents from the IRS-CI, HSI, National Crime Agency in the United Kingdom, and Korean National Police in South Korea arrested Son and seized the server that he used to operate a Darknet market that exclusively advertised child sexual exploitation videos available for download by members of the site. The operation resulted in the seizure of approximately eight terabytes of child sexual exploitation videos, which is one of the largest seizures of its kind. The images, which are currently being analyzed by the National Center for Missing and Exploited Children (NCMEC), contained over 250,000 unique videos, and 45 percent of the videos currently analyzed contain new images that have not been previously known to exist.
Welcome To Video offered these videos for sale using the cryptocurrency bitcoin. Typically, sites of this kind give users a forum to trade in these depictions. This Darknet website is among the first of its kind to monetize child exploitation videos using bitcoin. In fact, the site itself boasted over one million downloads of child exploitation videos by users. Each user received a unique bitcoin address when the user created an account on the website. An analysis of the server revealed that the website had more than one million bitcoin addresses, signifying that the website had capacity for at least one million users.
The agencies have shared data from the seized server with law enforcement around the world to assist in identifying and prosecuting customers of the site. This has resulted in leads sent to 38 countries and yielded arrests of 337 subjects around the world. The operation has resulted in searches of residences and businesses of approximately 92 individuals in the United States. Notably, the operation is responsible for the rescue of at least 23 minor victims residing in the United States, Spain and the United Kingdom, who were being actively abused by the users of the site.
In the Washington, D.C.-metropolitan area, the operation has led to the execution of five search warrants and eight arrests of individuals who both conspired with the administrator of the site and were themselves, users of the website. Two users of the Darknet market committed suicide subsequent to the execution of search warrants.
Amongst the sites users charged are:
- Charles Wunderlich, 34, of Hot Springs, California, was charged in the District of Columbia with conspiracy to distribute child pornography;
- Brian James LaPrath, 34, of San Diego, California, was arrested in the District of Columbia, for international money laundering; and was sentenced to serve 18 months in prison followed by three years of supervised release;
- Ernest Wagner, 70, of Federal Way, Washington, was arrested and charged in the District of Columbia with conspiracy to distribute child pornography;
- Vincent Galarzo, 28, of Glendale, New York, was arrested and charged in the District of Columbia with conspiracy to distribute child pornography;
- Michael Ezeagbor, 22, of Pflugerville, Texas, was arrested and charged in the District of Columbia with conspiracy to distribute child pornography;
- Nicholas Stengel, 45, of Washington, D.C., pleaded guilty to receipt of child pornography and money laundering and was sentenced to serve 15 years in prison followed by a lifetime of supervised release;
- Eryk Mark Chamberlin, 25, of Worcester, Massachusetts, pleaded guilty to possession of child pornography and is pending sentencing;
- Jairo Flores, 30, of Cambridge, Massachusetts, pleaded guilty in the District of Massachusetts to receipt and possession of child pornography and was sentenced to serve five years in prison followed by five years of supervised release;
- Billy Penaloza, 29, of Dorchester, Massachusetts, pleaded guilty in the District of Massachusetts to possession and receipt of child pornography. His sentencing is scheduled for Oct. 22, 2019;
- Michael Armstrong, 35, of Randolph, Massachusetts, pleaded guilty in the District of Massachusetts, to receipt and possession of child pornography. He was sentenced to serve five years in prison followed by five years of supervised release. Restitution will be determined at a future date;
- Al Ramadhanu Soedomo, 28, of Lynn, Massachusetts, pleaded guilty to possession of child pornography and was sentenced in the District of Massachusetts (Boston), to serve 12 months and one day followed by five years of supervised release;
- Phillip Sungmin Hong, 24, of Sharon, Massachusetts, pleaded guilty in the District of Massachusetts (Boston), to receipt and possession of child pornography and is pending sentencing;
- Eliseo Arteaga Jr., 28, of Mesquite, Texas, pleaded guilty in the Northern District of Texas to possession of prepubescent child pornography. He is pending sentencing;
- Richard Nikolai Gratkowski, 40, of San Antonio, Texas, a former HSI special agent, was arrested in the Western District of Texas. Gratkowski pleaded guilty to the indictment charging one count of receipt of child pornography and one count of access with intent to view child pornography. Gratkowski was sentenced to serve 70 months in prison followed by 10 years of supervised release, and ordered to pay $35,000 in restitution to seven victims and a $10,000 assessment;
- Paul Casey Whipple, 35, of Hondo, Texas, a U.S. Border Patrol Agent, was arrested in the Western District of Texas, on charges of sexual exploitation of children/minors, production, distribution, and possession of child pornography. Whipple remains in custody awaiting trial in San Antonio;
- Michael Lawson, 36, of Midland, Georgia, was arrested in the Middle District of Georgia on charges of attempted sexual exploitation of children and possession of child pornography. He was sentenced to serve 121 months in prison followed by 10 years of supervised release following his plea to a superseding information charging him with one count of receipt of child pornography;
- Kevin Christopher Eagan, 39, of Brookhaven, Georgia, pleaded guilty to possession of child pornography in the Northern District of Georgia;
- Casey Santioius Head, 37, of Griffin, Georgia, was indicted in the Northern District of Georgia for distribution, receipt, and possession of child pornography;
- Andrew C. Chu, 28, of Garwood, New Jersey, was arrested and charged with receipt of child pornography. Those charges remain pending;
- Nader Hamdi Ahmed, 29 of Jersey City, New Jersey, was arrested in the District of New Jersey, for sexual exploitation or other abuse of children. Ahmed pleaded guilty to an information charging him with one count of distribution of child pornography. He is scheduled to be sentenced Oct. 1, 2019;
- Jeffrey Lee Harris, 32, of Pickens, South Carolina, pleaded guilty in the District of South Carolina for producing, distributing, and possessing child pornography;
- Laine Ormand Clark Jr., 27, of Conway, South Carolina, was arrested and charged in U.S. District Court in South Carolina Division for sexual possession of child pornography;
- Jack R. Dove III, 37, of Lakeland, Florida, was arrested in the District of Florida for knowingly receiving and possessing visual depictions of minors engaged in sexually explicit conduct;
- Michael Matthew White, 39, of Miami Beach, Florida, was arrested in the Southern District of Florida for coercion and enticement;
- Nikolas Bennion Bradshaw, 24, of Bountiful, Utah, was arrested in the State of Utah, and charged with five counts of sexual exploitation of a minor, and was sentenced to time served with 91 days in jail followed by probation;
- Michael Don Gibbs, 37, of Holladay, Utah, was charged in the District of Utah with receipt of child pornography and possession of child pornography;
- Ammar Atef H. Alahdali, 22, of Arlington, Virginia, pleaded guilty in the Eastern District of Virginia to receipt of child pornography and was sentenced to serve five years in prison and ordered to pay $3,000 in restitution;
- Mark Lindsay Rohrer, 38, of West Hartford, Connecticut, pleaded guilty in the District of Connecticut to receipt of child pornography and was sentenced to serve 60 months in prison followed by five years of supervised release;
- Eugene Edward Jung, 47, of San Francisco, California, was indicted in the Northern District of California on possession of child pornography and receipt of child pornography;
- James Daosaeng, 25, of Springdale, Arkansas, pleaded guilty to possession of child pornography and was sentenced in the Western District of Arkansas (Fayetteville) to serve 97 months in prison followed by 20 years of supervised release;
- Alex Daniel Paxton, 30, of Columbus, Ohio, was arrested and indicted in Franklin County Ohio Court of Common Pleas for pandering sexually oriented matter involving a minor;
- Don Edward Pannell, 32, of Harvey, Louisiana, pleaded guilty in the Eastern District of Louisiana for receipt of child pornography. He is pending sentencing;
- Ryan Thomas Carver, 29, of Huntsville, Alabama, was arrested and charged under Alabama State Law. He was charged federally in the Northern District of Alabama with possession of child pornography. His case is pending in Huntsville, Alabama;
- Alexander Buckley, 28, of the United Kingdom, pleaded guilty to 10 offences in the UK of possession and distribution of indecent images of children, possession of extreme and prohibited images and possession of a class A drug. He was sentenced to serve 40 months in prison for the distribution of indecent images and possession of class A drugs. Buckley is also subject to an indefinite Sexual Harm Prevention Order;
- Kyle Fox, 26, of the United Kingdom, pleaded guilty to 22 counts including rape, sexual assault, and sharing indecent images, and was sentenced to serve 22 years in prison; and
- Mohammed Almaker, 26, of Fort Collins, Colorado, was arrested in the Kingdom of Saudi Arabia (KSA), charged with KSA Law involving the endangerment of children. He is awaiting judicial proceedings in furtherance of criminal charges.
A forfeiture complaint was also unsealed today. The complaint alleges that law enforcement was able to trace payments of bitcoin to the Darknet site by following the flow of funds on the blockchain. The virtual currency accounts identified in the complaint were allegedly used by 24 individuals in five countries to fund the website and promote the exploitation of children. The forfeiture complaint seeks to recover these funds and, ultimately through the restoration process, return the illicit funds to victims of the crime.The charges in the indictment are merely allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The international investigations were led by the IRS-CI, HSI and the NCA. The Korean National Police of the Republic of Korea, the National Crime Agency of the United Kingdom and the German Federal Criminal Police (the Bundeskriminalamt), provided assistance and coordinated with their parallel investigations. The Department of Justice’s Office of International Affairs of the Criminal Division provided significant assistance.
The cases are being handled by Assistant U.S. Attorneys Zia M. Faruqui, Lindsay Suttenberg, and Youli Lee, Paralegal Specialists Brian Rickers and Diane Brashears, Legal Assistant Jessica McCormick, and Records Examiner Chad Byron of the U.S. Attorney’s Office for the District of Columbia and Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section. Additional assistance has been provided by Deputy Chief Keith Becker and Trial Attorney James E. Burke IV of the Criminal Division’s Child Exploitation and Obscenity Section, and former U.S. Attorney’s Office Paralegal Specialists Toni Anne Donato and Ty Eaton.
****View press conference here.
South Korean National and Hundreds of Others Charged Worldwide in the Takedown of the Largest Darknet Child Pornography Website, Which was Funded by BitcoinRead the Press Release
Jong Woo Son, 23, a South Korean national, was indicted by a federal grand jury in the District of Columbia for his operation of Welcome To Video, the largest child sexual exploitation market by volume of content. The nine-count indictment was unsealed today along with a parallel civil forfeiture action. Son has also been charged and convicted in South Korea and is currently in custody serving his sentence in South Korea. An additional 337 site users residing in Alabama, Arkansas, California, Connecticut, Florida, Georgia, Kansas, Louisiana, Maryland, Massachusetts, Nebraska, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Texas, Utah, Virginia, Washington State and Washington, D.C. as well as the United Kingdom, South Korea, Germany, Saudi Arabia, the United Arab Emirates, the Czech Republic, Canada, Ireland, Spain, Brazil and Australia have been arrested and charged.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jessie K. Liu for the District of Columbia, Chief Don Fort of IRS Criminal Investigation (IRS-CI) and Acting Executive Associate Director Alysa Erichs of U.S. Immigration and Customs Enforcement (ICE)’s Homeland Security Investigations (HSI), made the announcement.
“Darknet sites that profit from the sexual exploitation of children are among the most vile and reprehensible forms of criminal behavior,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “This Administration will not allow child predators to use lawless online spaces as a shield. Today’s announcement demonstrates that the Department of Justice remains firmly committed to working closely with our partners in South Korea and around the world to rescue child victims and bring to justice the perpetrators of these abhorrent crimes.”
“Children around the world are safer because of the actions taken by U.S. and foreign law enforcement to prosecute this case and recover funds for victims,” said U.S. Attorney Jessie K. Liu. “We will continue to pursue such criminals on and off the darknet in the United States and abroad, to ensure they receive the punishment their terrible crimes deserve.”
“Through the sophisticated tracing of bitcoin transactions, IRS-CI special agents were able to determine the location of the Darknet server, identify the administrator of the website and ultimately track down the website server’s physical location in South Korea,” said IRS-CI Chief Don Fort. “This large-scale criminal enterprise that endangered the safety of children around the world is no more. Regardless of the illicit scheme, and whether the proceeds are virtual or tangible, we will continue to work with our federal and international partners to track down these disgusting organizations and bring them to justice.”
“Children are our most vulnerable population, and crimes such as these are unthinkable,” said HSI Acting Executive Associate Director Alysa Erichs. “Sadly, advances in technology have enabled child predators to hide behind the dark web and cryptocurrency to further their criminal activity. However, today’s indictment sends a strong message to criminals that no matter how sophisticated the technology or how widespread the network, child exploitation will not be tolerated in the United States. Our entire justice system will stop at nothing to prevent these heinous crimes, safeguard our children, and bring justice to all.”
According to the indictment, on March 5, 2018, agents from the IRS-CI, HSI, National Crime Agency in the United Kingdom, and Korean National Police in South Korea arrested Son and seized the server that he used to operate a Darknet market that exclusively advertised child sexual exploitation videos available for download by members of the site. The operation resulted in the seizure of approximately eight terabytes of child sexual exploitation videos, which is one of the largest seizures of its kind. The images, which are currently being analyzed by the National Center for Missing and Exploited Children (NCMEC), contained over 250,000 unique videos, and 45 percent of the videos currently analyzed contain new images that have not been previously known to exist.
Welcome To Video offered these videos for sale using the cryptocurrency bitcoin. Typically, sites of this kind give users a forum to trade in these depictions. This Darknet website is among the first of its kind to monetize child exploitation videos using bitcoin. In fact, the site itself boasted over one million downloads of child exploitation videos by users. Each user received a unique bitcoin address when the user created an account on the website. An analysis of the server revealed that the website had more than one million bitcoin addresses, signifying that the website had capacity for at least one million users.
The agencies have shared data from the seized server with law enforcement around the world to assist in identifying and prosecuting customers of the site. This has resulted in leads sent to 38 countries and yielded arrests of 337 subjects around the world. The operation has resulted in searches of residences and businesses of approximately 92 individuals in the United States. Notably, the operation is responsible for the rescue of at least 23 minor victims residing in the United States, Spain and the United Kingdom, who were being actively abused by the users of the site.
In the Washington, D.C.-metropolitan area, the operation has led to the execution of five search warrants and eight arrests of individuals who both conspired with the administrator of the site and were themselves, users of the website. Two users of the Darknet market committed suicide subsequent to the execution of search warrants.
Amongst the sites users charged are:
- Charles Wunderlich, 34, of Hot Springs, California, was charged in the District of Columbia with conspiracy to distribute child pornography;
- Brian James LaPrath, 34, of San Diego, California, was arrested in the District of Columbia, for international money laundering; and was sentenced to serve 18 months in prison followed by three years of supervised release;
- Ernest Wagner, 70, of Federal Way, Washington, was arrested and charged in the District of Columbia with conspiracy to distribute child pornography;
- Vincent Galarzo, 28, of Glendale, New York, was arrested and charged in the District of Columbia with conspiracy to distribute child pornography;
- Michael Ezeagbor, 22, of Pflugerville, Texas, was arrested and charged in the District of Columbia with conspiracy to distribute child pornography;
- Nicholas Stengel, 45, of Washington, D.C., pleaded guilty to receipt of child pornography and money laundering and was sentenced to serve 15 years in prison followed by a lifetime of supervised release;
- Eryk Mark Chamberlin, 25, of Worcester, Massachusetts, pleaded guilty to possession of child pornography and is pending sentencing;
- Jairo Flores, 30, of Cambridge, Massachusetts, pleaded guilty in the District of Massachusetts to receipt and possession of child pornography and was sentenced to serve five years in prison followed by five years of supervised release;
- Billy Penaloza, 29, of Dorchester, Massachusetts, pleaded guilty in the District of Massachusetts to possession and receipt of child pornography. His sentencing is scheduled for Oct. 22, 2019;
- Michael Armstrong, 35, of Randolph, Massachusetts, pleaded guilty in the District of Massachusetts, to receipt and possession of child pornography. He was sentenced to serve five years in prison followed by five years of supervised release. Restitution will be determined at a future date;
- Al Ramadhanu Soedomo, 28, of Lynn, Massachusetts, pleaded guilty to possession of child pornography and was sentenced in the District of Massachusetts (Boston), to serve 12 months and one day followed by five years of supervised release;
- Phillip Sungmin Hong, 24, of Sharon, Massachusetts, pleaded guilty in the District of Massachusetts (Boston), to receipt and possession of child pornography and is pending sentencing;
- Eliseo Arteaga Jr., 28, of Mesquite, Texas, pleaded guilty in the Northern District of Texas to possession of prepubescent child pornography. He is pending sentencing;
- Richard Nikolai Gratkowski, 40, of San Antonio, Texas, a former HSI special agent, was arrested in the Western District of Texas. Gratkowski pleaded guilty to the indictment charging one count of receipt of child pornography and one count of access with intent to view child pornography. Gratkowski was sentenced to serve 70 months in prison followed by 10 years of supervised release, and ordered to pay $35,000 in restitution to seven victims and a $10,000 assessment;
- Paul Casey Whipple, 35, of Hondo, Texas, a U.S. Border Patrol Agent, was arrested in the Western District of Texas, on charges of sexual exploitation of children/minors, production, distribution, and possession of child pornography. Whipple remains in custody awaiting trial in San Antonio;
- Michael Lawson, 36, of Midland, Georgia, was arrested in the Middle District of Georgia on charges of attempted sexual exploitation of children and possession of child pornography. He was sentenced to serve 121 months in prison followed by 10 years of supervised release following his plea to a superseding information charging him with one count of receipt of child pornography;
- Kevin Christopher Eagan, 39, of Brookhaven, Georgia, pleaded guilty to possession of child pornography in the Northern District of Georgia;
- Casey Santioius Head, 37, of Griffin, Georgia, was indicted in the Northern District of Georgia for distribution, receipt, and possession of child pornography;
- Andrew C. Chu, 28, of Garwood, New Jersey, was arrested and charged with receipt of child pornography. Those charges remain pending;
- Nader Hamdi Ahmed, 29 of Jersey City, New Jersey, was arrested in the District of New Jersey, for sexual exploitation or other abuse of children. Ahmed pleaded guilty to an information charging him with one count of distribution of child pornography. He is scheduled to be sentenced Oct. 1, 2019;
- Jeffrey Lee Harris, 32, of Pickens, South Carolina, pleaded guilty in the District of South Carolina for producing, distributing, and possessing child pornography;
- Laine Ormand Clark Jr., 27, of Conway, South Carolina, was arrested and charged in U.S. District Court in South Carolina Division for sexual possession of child pornography;
- Jack R. Dove III, 38, of Lakeland, Florida, was arrested in the Middle District of Florida for knowingly receiving and possessing visual depictions of minors engaged in sexually explicit conduct;
- Michael Matthew White, 39, of Miami Beach, Florida, was arrested in the Southern District of Florida for coercion and enticement;
- Nikolas Bennion Bradshaw, 24, of Bountiful, Utah, was arrested in the State of Utah, and charged with five counts of sexual exploitation of a minor, and was sentenced to time served with 91 days in jail followed by probation;
- Michael Don Gibbs, 37, of Holladay, Utah, was charged in the District of Utah with receipt of child pornography and possession of child pornography;
- Ammar Atef H. Alahdali, 22, of Arlington, Virginia, pleaded guilty in the Eastern District of Virginia to receipt of child pornography and was sentenced to serve five years in prison and ordered to pay $3,000 in restitution;
- Mark Lindsay Rohrer, 38, of West Hartford, Connecticut, pleaded guilty in the District of Connecticut to receipt of child pornography and was sentenced to serve 60 months in prison followed by five years of supervised release;
- Eugene Edward Jung, 47, of San Francisco, California, was indicted in the Northern District of California on possession of child pornography and receipt of child pornography;
- James Daosaeng, 25, of Springdale, Arkansas, pleaded guilty to possession of child pornography and was sentenced in the Western District of Arkansas (Fayetteville) to serve 97 months in prison followed by 20 years of supervised release;
- Alex Daniel Paxton, 30, of Columbus, Ohio, was arrested and indicted in Franklin County Ohio Court of Common Pleas for pandering sexually oriented matter involving a minor;
- Don Edward Pannell, 32, of Harvey, Louisiana, pleaded guilty in the Eastern District of Louisiana for receipt of child pornography. He is pending sentencing;
- Ryan Thomas Carver, 29, of Huntsville, Alabama, was arrested and charged under Alabama State Law. He was charged federally in the Northern District of Alabama with possession of child pornography. His case is pending in Huntsville, Alabama;
- Alexander Buckley, 28, of the United Kingdom, pleaded guilty to 10 offences in the UK of possession and distribution of indecent images of children, possession of extreme and prohibited images and possession of a class A drug. He was sentenced to serve 40 months in prison for the distribution of indecent images and possession of class A drugs. Buckley is also subject to an indefinite Sexual Harm Prevention Order;
- Kyle Fox, 26, of the United Kingdom, pleaded guilty to 22 counts including rape, sexual assault, and sharing indecent images, and was sentenced to serve 22 years in prison; and
- Mohammed Almaker, 26, of Fort Collins, Colorado, was arrested in the Kingdom of Saudi Arabia (KSA), charged with KSA Law involving the endangerment of children. He is awaiting judicial proceedings in furtherance of criminal charges.
A forfeiture complaint was also unsealed today. The complaint alleges that law enforcement was able to trace payments of bitcoin to the Darknet site by following the flow of funds on the blockchain. The virtual currency accounts identified in the complaint were allegedly used by 24 individuals in five countries to fund the website and promote the exploitation of children. The forfeiture complaint seeks to recover these funds and, ultimately through the restoration process, return the illicit funds to victims of the crime.
The charges in the indictment are merely allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The international investigations were led by the IRS-CI, HSI and the NCA. The Korean National Police of the Republic of Korea, the National Crime Agency of the United Kingdom and the German Federal Criminal Police (the Bundeskriminalamt), provided assistance and coordinated with their parallel investigations. The Department of Justice’s Office of International Affairs of the Criminal Division provided significant assistance.
The cases are being handled by Assistant U.S. Attorneys Zia M. Faruqui, Lindsay Suttenberg, and Youli Lee, Paralegal Specialists Brian Rickers and Diane Brashears, Legal Assistant Jessica McCormick, and Records Examiner Chad Byron of the U.S. Attorney’s Office for the District of Columbia and Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section. Additional assistance has been provided by Deputy Chief Keith Becker and Trial Attorney James E. Burke IV of the Criminal Division’s Child Exploitation and Obscenity Section, and former U.S. Attorney’s Office Paralegal Specialists Toni Anne Donato and Ty Eaton.
- Charles Wunderlich, 34, of Hot Springs, California, was charged in the District of Columbia with conspiracy to distribute child pornography;
South Korean National and Hundreds of Others Charged Worldwide in the Takedown of the Largest Darknet Child Pornography Website, Which Was Funded by BitcoinRead the Press Release
Dozens of Minor Victims who were Being Actively Abused by Users of Site Rescued
WASHINGTON, D.C. – Jong Woo Son, 23, a South Korean national, was indicted by a federal grand jury in the District of Columbia for his operation of Welcome To Video, the largest child sexual exploitation market by volume of content. The nine-count indictment was unsealed today along with a parallel civil forfeiture action. Son has also been charged and convicted in South Korea and is currently in custody serving his sentence in South Korea. An additional 337 site users residing in Alabama, Arkansas, California, Connecticut, Florida, Georgia, Kansas, Louisiana, Maryland, Massachusetts, Nebraska, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Texas, Utah, Virginia, Washington State and Washington, D.C. as well as the United Kingdom, South Korea, Germany, Saudi Arabia, the United Arab Emirates, the Czech Republic, Canada, Ireland, Spain, Brazil and Australia have been arrested and charged.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jessie K. Liu for the District of Columbia, Chief Don Fort of IRS Criminal Investigation (IRS-CI) and Acting Executive Associate Director Alysa Erichs of U.S. Immigration and Customs Enforcement (ICE)’s Homeland Security Investigations (HSI), made the announcement.
“Darknet sites that profit from the sexual exploitation of children are among the most vile and reprehensible forms of criminal behavior,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “This Administration will not allow child predators to use lawless online spaces as a shield. Today’s announcement demonstrates that the Department of Justice remains firmly committed to working closely with our partners in South Korea and around the world to rescue child victims and bring to justice the perpetrators of these abhorrent crimes.”
“Children around the world are safer because of the actions taken by U.S. and foreign law enforcement to prosecute this case and recover funds for victims,” said U.S. Attorney Jessie K. Liu. “We will continue to pursue such criminals on and off the darknet in the United States and abroad, to ensure they receive the punishment their terrible crimes deserve.”
“Through the sophisticated tracing of bitcoin transactions, IRS-CI special agents were able to determine the location of the Darknet server, identify the administrator of the website and ultimately track down the website server’s physical location in South Korea,” said IRS-CI Chief Don Fort. “This largescale criminal enterprise that endangered the safety of children around the world is no more. Regardless of the illicit scheme, and whether the proceeds are virtual or tangible, we will continue to work with our federal and international partners to track down these disgusting organizations and bring them to justice.”
“Children are our most vulnerable population, and crimes such as these are unthinkable,” said HSI Acting Executive Associate Director Alysa Erichs. “Sadly, advances in technology have enabled child predators to hide behind the dark web and cryptocurrency to further their criminal activity. However, today’s indictment sends a strong message to criminals that no matter how sophisticated the technology or how widespread the network, child exploitation will not be tolerated in the United States. Our entire justice system will stop at nothing to prevent these heinous crimes, safeguard our children, and bring justice to all.”
According to the indictment, on March 5, 2018, agents from the IRS-CI, HSI, National Crime Agency in the United Kingdom, and Korean National Police in South Korea arrested Son and seized the server that he used to operate a Darknet market that exclusively advertised child sexual exploitation videos available for download by members of the site. The operation resulted in the seizure of approximately eight terabytes of child sexual exploitation videos, which is one of the largest seizures of its kind. The images, which are currently being analyzed by the National Center for Missing and Exploited Children (NCMEC), contained over 250,000 unique videos, and 45 percent of the videos currently analyzed contain new images that have not been previously known to exist.
Welcome To Video offered these videos for sale using the cryptocurrency bitcoin. Typically, sites of this kind give users a forum to trade in these depictions. This Darknet website is among the first of its kind to monetize child exploitation videos using bitcoin. In fact, the site itself boasted over one million downloads of child exploitation videos by users. Each user received a unique bitcoin address when the user created an account on the website. An analysis of the server revealed that the website had more than one million bitcoin addresses, signifying that the website had capacity for at least one million users.
The agencies have shared data from the seized server with law enforcement around the world to assist in identifying and prosecuting customers of the site. This has resulted in leads sent to 38 countries and yielded arrests of 337 subjects around the world. The operation has resulted in searches of residences and businesses of approximately 92 individuals in the United States. Notably, the operation is responsible for the rescue of at least 23 minor victims residing in the United States, Spain and the United Kingdom, who were being actively abused by the users of the site.
In the Washington, D.C.-metropolitan area, the operation has led to the execution of five search warrants and eight arrests of individuals who both conspired with the administrator of the site and were themselves, users of the website. Two users of the Darknet market committed suicide subsequent to the execution of search warrants.Among the sites users charged are:
• Andrew C. Chu, 28, of Garwood, New Jersey, was arrested and charged with receipt of child pornography. Those charges remain pending;
• Nader Hamdi Ahmed, 29 of Jersey City, New Jersey, was arrested in the District of New Jersey, for sexual exploitation or other abuse of children. Ahmed pleaded guilty to an information charging him with one count of distribution of child pornography. He was sentenced Oct. 1, 2019, to 78 months in prison;
• Charles Wunderlich, 34, of Hot Springs, California, was charged in the District of Columbia with conspiracy to distribute child pornography;
• Brian James LaPrath, 34, of San Diego, California, was arrested in the District of Columbia, for international money laundering; and was sentenced to serve 18 months in prison followed by three years of supervised release;
• Ernest Wagner, 70, of Federal Way, Washington, was arrested and charged in the District of Columbia with conspiracy to distribute child pornography;
• Vincent Galarzo, 28, of Glendale, New York, was arrested and charged in the District of Columbia with conspiracy to distribute child pornography;
• Michael Ezeagbor, 22, of Pflugerville, Texas, was arrested and charged in the District of Columbia with conspiracy to distribute child pornography;
• Nicholas Stengel, 45, of Washington, D.C., pleaded guilty to receipt of child pornography and money laundering and was sentenced to serve 15 years in prison followed by a lifetime of supervised release;
• Eryk Mark Chamberlin, 25, of Worcester, Massachusetts, pleaded guilty to possession of child pornography and is pending sentencing;
• Jairo Flores, 30, of Cambridge, Massachusetts, pleaded guilty in the District of Massachusetts to receipt and possession of child pornography and was sentenced to serve five years in prison followed by five years of supervised release;
• Billy Penaloza, 29, of Dorchester, Massachusetts, pleaded guilty in the District of Massachusetts to possession and receipt of child pornography. His sentencing is scheduled for Oct. 22, 2019;
• Michael Armstrong, 35, of Randolph, Massachusetts, pleaded guilty in the District of Massachusetts, to receipt and possession of child pornography. He was sentenced to serve five years in prison followed by five years of supervised release. Restitution will be determined at a future date;
• Al Ramadhanu Soedomo, 28, of Lynn, Massachusetts, pleaded guilty to possession of child pornography and was sentenced in the District of Massachusetts (Boston), to serve 12 months and one day followed by five years of supervised release;
• Phillip Sungmin Hong, 24, of Sharon, Massachusetts, pleaded guilty in the District of Massachusetts (Boston), to receipt and possession of child pornography and is pending sentencing;
• Eliseo Arteaga Jr., 28, of Mesquite, Texas, pleaded guilty in the Northern District of Texas to possession of prepubescent child pornography. He is pending sentencing;
• Richard Nikolai Gratkowski, 40, of San Antonio, Texas, a former HSI special agent, was arrested in the Western District of Texas. Gratkowski pleaded guilty to the indictment charging one count of receipt of child pornography and one count of access with intent to view child pornography. Gratkowski was sentenced to serve 70 months in prison followed by 10 years of supervised release, and ordered to pay $35,000 in restitution to seven victims and a $10,000 assessment;
• Paul Casey Whipple, 35, of Hondo, Texas, a U.S. Border Patrol Agent, was arrested in the Western District of Texas, on charges of sexual exploitation of children/minors, production, distribution, and possession of child pornography. Whipple remains in custody awaiting trial in San Antonio;
• Michael Lawson, 36, of Midland, Georgia, was arrested in the Middle District of Georgia on charges of attempted sexual exploitation of children and possession of child pornography. He was sentenced to serve 121 months in prison followed by 10 years of supervised release following his plea to a superseding information charging him with one count of receipt of child pornography;
• Kevin Christopher Eagan, 39, of Brookhaven, Georgia, pleaded guilty to possession of child pornography in the Northern District of Georgia;
• Casey Santioius Head, 37, of Griffin, Georgia, was indicted in the Northern District of Georgia for distribution, receipt, and possession of child pornography;
• Jeffrey Lee Harris, 32, of Pickens, South Carolina, pleaded guilty in the District of South Carolina for producing, distributing, and possessing child pornography;
• Laine Ormand Clark Jr., 27, of Conway, South Carolina, was arrested and charged in U.S. District Court in South Carolina Division for sexual possession of child pornography;
• Jack R. Dove III, 38, of Lakeland, Florida, was arrested in the Middle District of Florida for knowingly receiving and possessing visual depictions of minors engaged in sexually explicit conduct;
• Michael Matthew White, 39, of Miami Beach, Florida, was arrested in the Southern District of Florida for coercion and enticement;
• Nikolas Bennion Bradshaw, 24, of Bountiful, Utah, was arrested in the State of Utah, and charged with five counts of sexual exploitation of a minor, and was sentenced to time served with 91 days in jail followed by probation;
• Michael Don Gibbs, 37, of Holladay, Utah, was charged in the District of Utah with receipt of child pornography and possession of child pornography;
• Ammar Atef H. Alahdali, 22, of Arlington, Virginia, pleaded guilty in the Eastern District of Virginia to receipt of child pornography and was sentenced to serve five years in prison and ordered to pay $3,000 in restitution;
• Mark Lindsay Rohrer, 38, of West Hartford, Connecticut, pleaded guilty in the District of Connecticut to receipt of child pornography and was sentenced to serve 60 months in prison followed by five years of supervised release;
• Eugene Edward Jung, 47, of San Francisco, California, was indicted in the Northern District of California on possession of child pornography and receipt of child pornography;
• James Daosaeng, 25, of Springdale, Arkansas, pleaded guilty to possession of child pornography and was sentenced in the Western District of Arkansas (Fayetteville) to serve 97 months in prison followed by 20 years of supervised release;
• Alex Daniel Paxton, 30, of Columbus, Ohio, was arrested and indicted in Franklin County Ohio Court of Common Pleas for pandering sexually oriented matter involving a minor;
• Don Edward Pannell, 32, of Harvey, Louisiana, pleaded guilty in the Eastern District of Louisiana for receipt of child pornography. He is pending sentencing;
• Ryan Thomas Carver, 29, of Huntsville, Alabama, was arrested and charged under Alabama State Law. He was charged federally in the Northern District of Alabama with possession of child pornography. His case is pending in Huntsville, Alabama;
• Andrew Buckley, 28, of the United Kingdom, pleaded guilty to 10 offences in the UK of possession and distribution of indecent images of children, possession of extreme and prohibited images and possession of a class A drug. He was sentenced to serve 40 months in prison for the distribution of indecent images and possession of class A drugs. Buckley is also subject to an indefinite Sexual Harm Prevention Order;
• Kyle Fox, 26, of the United Kingdom, pleaded guilty to 22 counts including rape, sexual assault, and sharing indecent images, and was sentenced to serve 22 years in prison; and
• Mohammed Almaker, 26, of Fort Collins, Colorado, was arrested in the Kingdom of Saudi Arabia (KSA), charged with KSA Law involving the endangerment of children. He is awaiting judicial proceedings in furtherance of criminal charges.A forfeiture complaint was also unsealed today. The complaint alleges that law enforcement was able to trace payments of bitcoin to the Darknet site by following the flow of funds on the blockchain. The virtual currency accounts identified in the complaint were allegedly used by 24 individuals in five countries to fund the website and promote the exploitation of children. The forfeiture complaint seeks to recover these funds and, ultimately through the restoration process, return the illicit funds to victims of the crime.
The charges in the indictment are merely allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The international investigations were led by the IRS-CI, HSI and the NCA. The Korean National Police of the Republic of Korea, the National Crime Agency of the United Kingdom and the German Federal Criminal Police (the Bundeskriminalamt), provided assistance and coordinated with their parallel investigations. The Department of Justice’s Office of International Affairs of the Criminal Division provided significant assistance.
The cases are being handled by Assistant U.S. Attorneys Zia M. Faruqui, Lindsay Suttenberg, and Youli Lee, Paralegal Specialists Brian Rickers and Diane Brashears, Legal Assistant Jessica McCormick, and Records Examiner Chad Byron of the U.S. Attorney’s Office for the District of Columbia and Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section. Additional assistance has been provided by Deputy Chief Keith Becker and Trial Attorney James E. Burke IV of the Criminal Division’s Child Exploitation and Obscenity Section, and former U.S. Attorney’s Office Paralegal Specialists Toni Anne Donato and Ty Eaton.
Sioux Falls Woman Charged with Bank Fraud and Theft or Receipt of Stolen Mail MatterRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, woman has been indicted by a federal grand jury for Bank Fraud and Theft or Receipt of Stolen Mail Matter.
Tessa Crawford, age 23, was indicted on October 8, 2019. She appeared before U.S. Magistrate Judge Mark A. Moreno on October 15, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 30 years in federal prison and/or a $250,000 fine, 5 years of supervised release, and up to $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that beginning on or about November 8, 2017, and continuing through on or about February 14, 2018, Crawford, along with others, knowingly executed and attempted to execute a scheme and artifice to defraud several banks and to obtain money, funds, credits, assets, securities, and other property owned by, and under the custody and control of, the banks. More specifically, Crawford altered checks drawn on the accounts of various individuals and then negotiated said checks for her own purpose and benefit. Crawford also recruited others to negotiate the checks on her behalf.
The Indictment also alleges that Crawford stole, took and abstracted, and attempted to steal, take and abstract letters, postal cards, packages, bags, and mail out of mail boxes, mail receptacles, and other authorized mail depositories, and embezzled and destroyed such letters, postal cards, packages, bags, and mail and articles and things contained therein, namely envelopes containing multiple checks that did not belong to her.
The charges are merely accusations and Crawford is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Postal Inspection Service. Assistant U.S. Attorney Ann M. Hoffman is prosecuting the case.
Crawford was released on bond pending trial. A trial date has not been set.
Sioux Falls Man Indicted on Child Pornography ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Transportation of Child Pornography and Distribution and Receipt of Child Pornography.
Enoch Fields, age 38, was indicted on September 4, 2019. He appeared before U.S. Magistrate Judge Veronica L. Duffy on October 11, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $250,000 fine, life of supervised release, and up to $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between October 28, 2018, and March 20, 2019, Fields knowingly transported child pornography using a Google Photos account via the internet.
The Indictment also alleges that between May 31, 2019, and June 18, 2019, Fields also knowingly received and distributed, and attempted to receive and distribute, child pornography that had been mailed, shipped, and transported in or affecting interstate or foreign commerce by any means, including a computer.
The charges are merely accusations and Fields is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Department of Homeland Security. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Fields was released on bond pending trial, which has not been set.
Shelbyville Man Sentenced to 151 Months for Receiving Child PornographyRead the Press Release
FRANKFORT, Ky. – Joseph S. Gable, 63, of Shelbyville, Kentucky, was sentenced to 151 months in federal prison on Wednesday, by United States District Judge Gregory F. Van Tatenhove, for knowingly receiving child pornography.
Gable previously admitted that, in August of 2018, he knowingly received images of child pornography on his computer. A forensic examination of Gable’s computer and electronic storage devices revealed 35,972 still images and 807 videos of child pornography, including some that depicted children under the age of 12 and some that depicted sadistic or masochistic conduct.
Under federal law, Gable must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for life following his release from prison.
“Child pornography and child exploitation cases are some of the most important and impactful cases that law enforcement encounters,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “We, along with our federal, state, and local law enforcement partners, are committed to holding accountable those who manufacture, possess, or receive child pornography. To be clear, receiving child pornography is not a victimless crime. The creation of these images causes untold harm to the children depicted, and their victimization continues each time an image is shared with someone else. The defendant is well deserving of the sentence he received today.
United States Attorney Duncan, Steve Igyarto, Special Agent in Charge, Department of Homeland Security- Homeland Security Investigations (DHS-HSI), and Andy Beshear, Kentucky Attorney General, jointly announced the sentence.
The investigation was conducted by HSI and the Kentucky Office of Attorney General’s Cyber Crimes Branch. The United States was represented by Assistant United States Attorney David Marye.
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Second area man sent to prison for child pornography chargesRead the Press Release
BROWNSVILLE, Texas – A 68-year-old Brownsville man has been ordered to prison following his convictions of distributing and possessing child pornography, announced U.S. Attorney Ryan Patrick. Arnoldo Villagomez pleaded guilty Jan. 4, 2018.
Today, U.S. District Judge Rolando Olvera Jr. sentenced Villagomez to 120 months for the distribution and possession convictions, respectively. The sentences will run concurrently for a total 10-year term of imprisonment. Villagomez was further ordered to pay $263,952.83 in restitution to the known victims and will serve 10 years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender.
In July 2016, authorities learned an as-yet-unidentified individual in Brownsville was involved in distributing child pornography via the internet. The investigation led them to an address in Brownsville where Villagomez resided.
Law enforcement executed a search warrant Nov. 9, 2016, and seized a computer and other digital devices belonging to Villagomez. Forensic analysis later revealed more than 5,000 images and 145 videos of child pornography.
Immigration and Customs Enforcement’s Homeland Security Investigations - Rio Grande Valley Child Exploitation Task Force conducted the investigation.
Assistant U.S. Attorney Ana C. Cano prosecuted the case which was brought as part of Project Safe Childhood(PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Rochester Man Pleads Guilty to Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Jesus Santiago, 29, of Rochester, NY, pleaded guilty, before U.S. District Judge David G. Larimer, to being a felon-in-possession of a firearm. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Cassie Kocher, who is handling the case, stated that on July 2, 2018, the defendant, in exchange for $1,200, sold a loaded 9mm handgun to an individual working with law enforcement officers. Santiago also admitted to participating in a similar illegal gun sale in May, 2018. In 2016, the defendant was convicted of Attempted Criminal Possession of a Weapon in the Second Degree in Erie County Court, and as a result is legally prohibited from possessing a firearm or ammunition.
The plea is the result of an investigation by the Rochester Police Department, under the direction of Chief La’Ron Singletary, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
Sentencing is scheduled for December 17, 2019, at 3:00 p.m. before Judge Larimer.
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Rapid City Man Charged with Unlawful Possession of a FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man was charged in federal district court with Possession of a Firearm by a Prohibited Person.
Austin Bennett, age 22, was charged on September 10, 2019. Bennett appeared before U.S. Magistrate Judge Daneta Wollmann on October 11, 2019, and pleaded not guilty to the charge. The maximum penalty upon conviction is 10 years in federal prison and/or a $250,000 fine, 3 years supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Bennett, a previously convicted felon who is prohibited from possessing firearms, unlawfully possessing a semi-automatic pistol in July 2019 at Rapid City. The charge is merely an accusation and Bennett is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Rapid City Police Department. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
Bennett was detained pending trial. A trial date has not been set.
Philadelphia Man Sentenced to Nearly 6 Years in Prison for Scheme to Create Fake IDs and Bribe PennDOT OfficialRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Bakary Camara, 32, of Philadelphia, Pennsylvania, was sentenced to 70 months’ incarceration and three years’ supervised release by United States District Judge John R. Padova for his scheme to produce fake Pennsylvania identification documents by bribing a state official. In February 2019, a jury convicted Camara of numerous charges, including conspiracy to unlawfully produce identification documents, bribery of an agent from the Pennsylvania Department of Transportation (PennDOT), misuse of a social security number, and aggravated identity theft.
According to evidence presented at trial, Camara bribed a PennDOT agent with cash payments in exchange for the issuance of driver’s licenses to dozens of foreign nationals who failed to take the required tests and failed to provide proof of residency. Some who received their license through Camara were new to the country, could not speak English, and were unfamiliar with the process of obtaining a driver’s license, while others could not pass the PennDOT knowledge or road tests. In particular, Camara fraudulently used another person’s social security number on proof of residency documents in an attempt to make it appear that two New York residents were residents of Pennsylvania.
Camara’s co-conspirator, the PennDOT agent, entered false information into the PennDOT system stating the individuals passed the required tests and met the residency requirements when they had not. The PennDOT agent then unlawfully issued driver’s licenses to those individuals. The scheme ran from at least April 2014 through May 2015. During that time, Camara unlawfully assisted at least 30 immigrants in obtaining Pennsylvania learner’s permits and driver’s licenses. Camara charged these individuals $300 to $7,000 for each Pennsylvania driver’s license. Camara provided the PennDOT official at least $5,100 in bribes.
“This kind of bribery and fraud is atrocious and an affront to public safety,” said U.S. Attorney McSwain. “Government-issued identification should never be procured by fraud, but to provide fraudulent driver’s licenses to those who should not be operating a vehicle on our roads is incredibly dangerous. We will aggressively investigate and root out this type of unconscionable behavior.”
The case was investigated by the Department of Homeland Security, the Social Security Administration, Office of Inspector General, and Pennsylvania Department of Transportation. The case is being prosecuted by Assistant United States Attorney Tiwana Wright.
Overprescribing Opioids Costs La Jolla Doctor $125,000Read the Press Release
Assistant U.S. Attorney Dylan M. Aste (619) 546-7621
NEWS RELEASE SUMMARY – October 16, 2019
SAN DIEGO – Dr. Roger A. Kasendorf, an osteopathic physician practicing in La Jolla, agreed to pay $125,000 to resolve allegations that he illegally prescribed opioids to his patients. The highly addictive and frequently abused opioids he prescribed included fentanyl, hydromorphone, oxymorphone, and oxycodone.
In response to the Justice Department’s focus on combatting the opioid epidemic, the Drug Enforcement Administration (DEA) and the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) investigated Dr. Kasendorf’s prescribing practices. This investigation arose from data analytics tools which allow the Department of Justice to perform a variety of functions, including identifying statistical outliers, such as which doctors prescribe the highest opioid dosages and which doctors prescribe combinations of opioids and other drugs known to increase the risk of addiction, abuse, and overdose. Based on the investigation, the United States contends that Dr. Kasendorf wrote prescriptions for opioids, including fentanyl, that were not issued for a legitimate medical purpose and while not acting in the usual course of his professional practice in violation the Controlled Substances Act and the False Claims Act.
“Opioid addiction often begins with doctors prescribing excessive amounts of pain killers,” said U.S. Attorney Robert S. Brewer, Jr. “While we continue to prosecute criminals who supply opioids on the dark web, we will also hold doctors accountable when they write illegitimate and unnecessary opioid prescriptions. This settlement demonstrates our commitment to combatting the opioid epidemic on all fronts.”
“Whether you are a patient, a prescriber, a distributor, a manufacturer or a regulator, you play an important role in utilizing opioids correctly and pursuant to the law,” said DEA Special Agent in Charge Karen Flowers. “When a DEA registrant operates outside the law, there are consequences. In this instant, a civil fine.”
The Centers for Disease Control and Prevention (CDC), the American Academy of Pain Medicine, the American Pain Society, state agencies and medical boards, and other medical literature provide guidance on appropriate practices when prescribing opioids. One common tool is for health care providers to determine the Morphine Milligram Equivalent (MME, also commonly referred to as Morphine Equivalent Dose or MED) of prescribed opioids. MME is a uniform scale used to determine daily opioid dosage by using an equivalency factor to calculate a dose of morphine that is equivalent to the prescribed opioid. The CDC recommends primary care clinicians who prescribe opioids for chronic pain outside of active cancer treatment, palliative care, or end‑of‑life care should avoid increasing opioid daily dosage over 90 MME or carefully justify a decision to titrate daily dosage to over 90 MME. Prescribers should also seek to avoid prescribing opioid pain medication in combination with benzodiazepines (e.g., Xanax, Valium, Klonopin) when possible, and should consider whether the benefits outweigh the risks of combining opioids with other depressants (i.e., muscle relaxants and sleep medications).
Report illicit pharmaceutical activities and prescription abuse to DEA at 877-RX-Abuse (877‑792‑2873). Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the U.S. Department of Health and Human Services at 800‑HHS-TIPS (800-447-8477).
This matter was handled by Assistant U.S. Attorney Dylan M. Aste of the U.S. Attorney’s Office for the Southern District of California, with the assistance of agents and investigators from the DEA and HHS‑OIG.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
Online Drug Dealer Sentenced to 15 Years for Distributing Counterfeit Pills Containing Fentanyl that Caused Overdose DeathRead the Press Release
Assistant U. S. Attorney Michael A. Deshong (619) 546-9290
NEWS RELEASE SUMMARY – October 16, 2019
SAN DIEGO – Drug dealer Trevon Antone Lucas was sentenced in federal court today to 15 years in prison for selling the counterfeit oxycodone pills containing deadly fentanyl that caused the overdose death of a La Jolla resident in June of 2018.
Lucas, a resident of Highland, California, pleaded guilty in June to Distribution of Fentanyl Resulting in Death. In his plea, he admitted that he posted online advertisements for the illegal sale of prescription pills. The investigation revealed that Lucas was warned about the danger of the pills he was selling on two separate occasions. In late 2017, Lucas was warned that the pills he was selling were counterfeit and contained fentanyl that was much stronger than oxycodone pills. Then, just two months prior to the victim’s death in mid-2018, Lucas was explicitly warned that counterfeit pills containing fentanyl had caused the overdose of a San Diego resident. Lucas was undeterred and continued to sell the counterfeit pills.
“Trevon Lucas knew the pills he was selling were deadly, but he sold them anyway, showing a remarkable disregard for the safety and well-being of his fellow human beings,” said U.S. Attorney Robert Brewer. “His greed transcended his humanity, and for that he will serve a very long sentence.” Brewer praised prosecutor Michael Deshong and federal, state and local investigators who worked hard to protect the community from the scourge of opioids and achieve justice for the victim and his family.
“Our hearts go out to the victim’s family,” said DEA Special Agent in Charge Karen Flowers. “The potential of their loved one will never be realized; but their hopes, dreams, love and laughter will forever be remembered. Earthly justice is a small measure of what awaits those who prey on the weak out of greed.” Flowers further stated, “We at DEA are proud to be part of bringing justice to families scarred by the scourge of drug trafficking. We are relentless and we will not shy from putting murderers out of business. No matter how hard it is or how long it takes, DEA will always be in pursuit until we can close the case and look at the victim’s loved ones and say, justice is done.”
According to Lucas’ plea agreement, on the evening of June 29, 2018, Lucas met the victim and sold him nine “blues,” a slang term for prescription oxycodone pills, for $240. The “blues” purchased from Lucas were counterfeit and contained deadly fentanyl—the same pills that Lucas had previously been warned about selling. The victim died after consuming the pills. The victim’s mother found him dead in his room the following morning.
Three other individuals, Cenclair Marie Fields, Kevin Vandale Chandler and Donovan Adontas Carter were charged in the same indictment with conspiring with Lucas to distribute prescription hydrocodone pills. All three have since pleaded guilty and been sentenced.
This case is the result of ongoing efforts by the U.S. Attorney’s Office, the San Diego County District Attorney’s Office, and multiple law enforcement agencies to investigate and prosecute the distribution of dangerous illegal drugs that result in overdose deaths.
Many opioid addicts start their addiction with legitimate prescription drugs. Drug cartels, looking to capitalize on the opioid epidemic, are making counterfeit prescription pills using deadly fentanyl. More than 399,000 people died from opioid overdoses, including prescription and illicit opioids, from 1999–2017.
In July 2018, Narcotics Task Force Team 10 was created to address drug overdose deaths in San Diego County. Team 10’s first investigation was the fentanyl drug overdose of this La Jolla man on June 30, 2018. The victim was 37 years old and he left behind his mother and brother. He had recently completed his bachelor’s degree in radiological sciences and was preparing to fly to the East Coast for a specialized program in dosimetry at the time he passed.
DEFENDANTS Case Number 18cr4224-CAB
Trevon Antone Lucas Age: 23 Highland, CA
SUMMARY OF CHARGES
Distribution of Fentanyl Resulting in Death – Title 21, U.S.C., Section 841(b)(1)(C)
Maximum Penalty: Mandatory minimum 20 years in prison up to life
AGENCIES
Drug Enforcement Administration
San Diego Police Department
Homeland Security Investigations
California Department of Health Care Services
Federal Bureau of Investigation
San Diego County District Attorney’s Office
Ohio man admits to drug distributionRead the Press Release
WHEELING, WEST VIRGINIA – Tyler Oliver, of St. Louisville, Ohio, has admitted to a drug distribution charge, U.S. Attorney Bill Powell announced.
Oliver, age 33, pled guilty to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute 3,4-Dichloro-N-[2-(dimethylamino) cyclohexyl]-Nmethylbenzamide (“U47700”).” Oliver admitted to working with another to distribute “U47700,” a synthetic opioid, from June 2016 to December 2016 in Ohio County and elsewhere.
Oliver faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen L. Vogrin is prosecuting the case on behalf of the government. The United States Postal Inspection Service investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Ohio County man sentenced for escapeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Garrett Michael Carrigan, of Wheeling, West Virginia, was sentenced today to 18 months incarceration for escaping federal custody, United States Attorney Bill Powell announced.
Carrigan, age 33, pled guilty to one count of “Escape from Constructive Custody” in September 2019. Carrigan, who was incarcerated for a previous child pornography case in the Northern District of West Virginia, escaped when traveling from a federal institution to a residential reentry center in Clarksburg in February 2019.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The United States Marshals Service investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Officers Seize 144 Pounds of Meth from KC Man Charged with Drug TraffickingRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man has been charged in federal court with drug trafficking after investigators seized 144 pounds of methamphetamine hidden in automobile wheels inside his shed.
Jorge A. Rodriguez-Gonzalez, 38, was charged in a criminal complaint filed in the U.S. District Court in Kansas City on Tuesday, Oct. 15.
The federal criminal complaint alleges that Rodriguez-Gonzalez possessed 500 grams or more of methamphetamine with the intent to distribute. Rodriguez-Gonzalez remains in federal custody pending a detention hearing, which has not yet been scheduled.
According to an affidavit filed in support of the complaint, a confidential source told Independence, Missouri, police detectives that he/she purchased a minimum of one kilogram of methamphetamine from Rodriguez-Gonzalez at least five days per week. The confidential source engaged in a controlled buy of one kilogram of methamphetamine from Rodriguez-Gonzalez on Thursday, Oct. 10. When Rodriguez-Gonzalez arrived at the arranged meeting location with his wife and two children (a 6-year-old girl and a 3-year-old boy), he was arrested. Officers seized a Glock handgun from a purse inside the vehicle. A police canine alerted to the presence of illegal drugs in the vehicle behind what appeared to be hidden compartments, the affidavit says. The vehicle was towed pending the execution of a search warrant.
On Friday, Oct. 11, law enforcement officers executed a search warrant at Rodriguez-Gonzalez’s residence. They seized an H&R Pardner Pump 20-gauge shotgun, a TGI Knox 7.62x39-caliber AK-style rifle, a bag that contained 471 grams of marijuana, what appeared to be a drug ledger, and cash from the residence.
Inside a detached shed, officers found a set of four Toyota wheels and tires. Because the tires seemed extremely heavy, the affidavit says, detectives cut one open and found a metal compartment attached to the inside of the wheel. The metal compartment was then cut open and found to contain methamphetamine.
Each wheel and tire was dismantled by investigators, who found methamphetamine packaged in an identical manner inside each of the four tires. Investigators found six packages of methamphetamine, each of which weighed approximately six pounds, inside each tire, for a total weight of 144 pounds of methamphetamine removed from the four tires.
During the execution of the search warrant, a police canine also alerted to the presence of illegal drugs in a Toyota Tundra and a GMC Sierra that were parked at the residence. The vehicles were towed and secured by law enforcement until search warrants are obtained.
The charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Special Assistant U.S. Attorney Mary Kate Butterfield and Assistant U.S. Attorney Emily A. Morgan. It was investigated by the Independence, Mo., Police Department, the Jackson County Drug Task Force, and the Kansas City, Mo., Police Department.
Newport Man Pleads Guilty to Theft of a FirearmRead the Press Release
Bangor, Maine: A Newport man pleaded guilty today in federal court in Bangor to stealing a firearm from a federally licensed firearms dealer, U.S. Attorney Halsey B. Frank announced.
According to court records, Adam Shawley, 33, entered the shop of a licensed dealer in Newport, went behind the counter, and stole at least one firearm. The dealer later received both text messages and phone calls from Shawley acknowledging that he had stolen firearms from the shop.
Shawley faces up to 10 years imprisonment and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The Newport Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
New York Man Sentenced to Prison for Conspiring to Distribute Crack, Heroin and FentanylRead the Press Release
Bangor, Maine: A Rochester, New York man was sentenced today in federal court in Bangor for conspiring to distribute cocaine base, heroin and fentanyl, U.S. Attorney Halsey B. Frank announced.
U.S. District Judge John A. Woodcock, Jr. sentenced Jamie Betances, a/k/a “Booger,” 33, to 126 months in prison and three years of supervised release. Betances pleaded guilty on October 16, 2018.
According to court records, between June 2015 and March 2017, Betances conspired with others to acquire crack, heroin and fentanyl in Rochester and transport it to central Maine for distribution. Betances traveled from Rochester to manage the Maine operation, overseeing distribution of drugs from 12 to 15 area “trap houses.”
The U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency and the Kennebec County Sheriff’s Office investigated the case, with assistance provided by the Augusta Police Department. This case was investigated and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Neshoba County Man Pleads Guilty to Bank RobberyRead the Press Release
Jackson, Miss. – David Keith Frazier, 33, of Neshoba County and a member of the Mississippi Bank of Choctaw Indians, pled guilty yesterday before U.S. District Judge Carlton W. Reeves to bank robbery by use of a dangerous weapon, announced U.S. Attorney Mike Hurst and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
On March 19, 2019, Frazier made threatening phone calls to two tribal elementary schools. During these phone calls, Frazier threatened to cause damage to both schools by means of explosives. The purpose of these phone calls was to cause law enforcement to respond to the schools and therefore to be away from the local bank that Frazier intended to rob.
Shortly after he made these phone calls, Frazier entered Trustmark National Bank, an FDIC-insured bank located on the Choctaw Indian Reservation at 110 Choctaw Town Center, for the purpose of robbing the bank by use of threatened force. Frazier was carrying an air pistol with the intent of making the employees of the bank believe that it was a real pistol. By brandishing and pointing a dangerous weapon, Frazier threatened to injure the employees of Trustmark if they did not give him money that was in the possession of Trustmark. Frazier’s intentional and intimidating behavior caused the employees to give him money in the bank’s possession out of fear of bodily injury.
Frazier took the money from Trustmark and fled. Law enforcement officers responded quickly and caught Frazier, who was in possession of some of the money taken from Trustmark, a short time later. Officers found the rest of the money, along with the air gun, in the woods where Frazier had fled after the bank robbery. All of the money taken by Frazier from Trustmark National Bank was recovered by law enforcement.
Frazier will be sentenced by Judge Reeves on January 8, 2020. He faces a maximum penalty of up to 25 years in federal prison, 5 years of supervised release, and a $250,000 fine.
The case was investigated by the Choctaw Police Department and the Federal Bureau of Investigation with assistance from numerous other state and local law enforcement agencies. The case is being prosecuted by Assistant United States Attorney Dave Fulcher.
NYC Department of Environmental Protection Employee Pleads Guilty to Using Long Island Residence to Manufacture Ecstasy and Cultivate MarijuanaRead the Press Release
Joseph Guida, an employee of New York City Department of Environmental Protection, pleaded guilty today to using a stash house in Mastic, Long Island to produce ecstasy (MDMA) and grow marijuana. The plea was entered before United States District Judge Joan M. Azrack at the federal courthouse in Central Islip. When sentenced, Guida faces up to 20 years in prison. As part of his guilty plea, Guida agreed to forfeit his interest in the Mastic residence and a Dodge Durango that he used in connection with his drug operation.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York Field Office (HSI), and Troy Miller, Director of Field Operations, U.S. Customs and Border Protection, New York Field Office (CBP), announced the guilty plea.
“Guida turned a house in a residential neighborhood into a drug factory, with total disregard for the danger posed to his neighbors by the volatile chemicals used to manufacture ecstasy,” stated United States Attorney Donoghue. “Today’s guilty plea is the result of swift action taken by this Office, working closely with our law enforcement partners, to safely shut down the defendant’s illegal drug operation.” Mr. Donoghue expressed his grateful appreciation to the Drug Enforcement Administration, New York State Police Contaminated Crime Scene Emergency Response Team, Suffolk County Police Department and New York City Police Department for their assistance during the investigation.
“Guida created a clandestine lab in his home to manufacture synthetics drugs and grow illegal marijuana. He sought to make a profit from his criminal business while endangering those in his community,” stated HSI Special Agent-in-Charge Fitzhugh. “It was the seamless collaboration with our partners at CBP, DEA and New York State Police before and during this investigation that allowed law enforcement to shut down Guida and his illicit enterprise.”
“This case serves as a great example of collaborative law enforcement efforts to combat international narcotics trafficking conspirators,” stated CBP Director Miller. “U.S. Customs and Border Protection thanks our partners at HSI and DEA for their continued cooperation.”
According to court filings and facts presented at the guilty plea proceeding, between November 2013 and December 2018, Guida used a house in Mastic to manufacture MDMA and marijuana for resale. In December 2018, CBP officers intercepted a package containing PMK methyl-glycidate (PMK), a MDMA precursor, that was mailed from China to Guida’s apartment in Queens. HSI agents then interviewed Guida, and he admitted that he ordered the PMK from China and used the Mastic residence as an MDMA lab and marijuana grow-house.
A subsequent search of the Mastic residence by law enforcement agents, some wearing protective hazmat suits, revealed chemicals and laboratory equipment for manufacturing MDMA, as well as approximately 36 marijuana plants and approximately 1.3 kilograms of processed marijuana.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Bradley T. King and Madeline M. O’Connor are in charge of the prosecution.
The Defendant:
JOSEPH GUIDA
Age: 45
Queens, New YorkE.D.N.Y. Docket No. 19-CR-12 (DRH)
Monongalia County woman sentenced for drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Bonnie Jo Korzun, of Granville, West Virginia, was sentenced today to 77 months incarceration for her involvement in a drug distribution operation, U.S. Attorney Bill Powell announced.
Korzun, age 39, pled guilty to one count of “Distribution of Heroin” in April 2019. Korzun admitted to selling heroin in Monongalia County in May 2018.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Mexican National Invovled in Poly-Drug Distribution Ring Is Sentenced to More Than 15 Years in PrisonRead the Press Release
STATESVILLE, N.C. – Today, U.S. District Judge Kenneth D. Bell sentenced Ricardo Cervantes-Sanchez, 40, of Mexico, residing in Hickory, N.C., to 188 months in prison and five years of supervised release on drug conspiracy charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Cervantes-Sanchez was a multi-kilogram level distributor of methamphetamine, cocaine and marijuana, operating mainly out of North Carolina and Tennessee.
Cervantes-Sanchez’s co-defendant, Raymundo, Villarreal, 22, of Newton, N.C. was also sentenced to eight years in prison and 5 years of supervised release for his role in the drug conspiracy.
According to today’s sentencing hearings and filed court documents in this and related cases, from 2014 until August 2018, Cervantes-Sanchez and Villarreal were part of a drug distribution ring responsible for trafficking methamphetamine, cocaine and marijuana in Western North Carolina, centered in and around Catawba County. The conspiracy extended well beyond North Carolina to Tennessee, Georgia, Texas, California, Illinois, Mexico and elsewhere, and involved the trafficking of multi-kilogram quantities of narcotics. Several defendants received sentencing enhancements for their possession of firearms during the conspiracy.
In addition to Cervantes-Sanchez and Villarreal, to date, 15 additional defendants involved in the poly-drug conspiracy have been sentenced to prison, as follows:
- Tommy Boyett was sentenced to 198 months in prison.
- Martin Santillan was sentenced to 156 months in prison.
- Joey Carroll was sentenced to 150 months in prison.
- Robert Long was sentenced to 144 months in prison.
- Ricky Moses was sentenced to 132 months in prison.
- Juan Villarreal was sentenced to 125 months in prison.
- David McIntosh was sentenced to 120 months in prison.
- Jamie Sigmon was sentenced to 114 months in prison.
- Rogelio Santillan was sentenced to 101 months in prison.
- Jesus Bedolla was sentenced to 81 months in prison.
- Ivan Garcia-Arcos was sentenced to 70 months in prison.
- Samuel Ibarra was sentenced to 60 months in prison.
- Jose Villagomez was sentenced to 57 months in prison.
- Manuel Martinez was sentenced to 46 months in prison.
- Clayton Rivera-Trejo was sentenced to 30 months in prison.
In making today’s announcement, U.S. Attorney Murray commended the work of the Drug Enforcement Administration with the assistance of the Federal Bureau of Investigation; the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Secret Service; the United States Probation Office; the North Carolina State Bureau of Investigation; the Catawba County Sheriff’s Office; the Alexander County Sheriff’s Office; the Hickory Police Department; the Newton Police Department; the Lincolnton Police Department; the Maiden Police Department; and the Cornelius Police Department. U.S. Attorney Murray also thanked the DEA’s offices in McAllen, Texas; Louisville, Kentucky; Indianapolis, Indiana; and Knoxville Tennessee, and the 9th Judicial Drug Task Force in Tennessee for their assistance in this case.
Assistant U.S. Attorney William Bozin of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Mexican National Charged with Smuggling Nine Kilograms of Heroin into United States at Port of Entry in Santa Teresa, N.M.Read the Press Release
ALBUQUERQUE, N.M. – Manuel A. Gonzalez, 49, a Mexican national residing in Bosque, New Mexico, appeared in federal court in Las Cruces, New Mexico yesterday for an initial appearance on a criminal complaint charging him with importation of a controlled substance.
According to the complaint, Gonzalez allegedly drove his pickup truck from Mexico to the Santa Teresa port of entry on October 10, 2019. Gonzalez allegedly had about nine kilograms of heroin concealed in the tailgate of his truck when U.S. Customs and Border Protection officers inspected his vehicle.
Gonzalez is a lawful permanent resident of the United States. He is currently in custody pending a detention hearing scheduled for October 18. He faces from ten years to life in prison if convicted of the charged offense. A criminal complaint is only an accusation. A defendant is presumed innocent until proven guilty.
Homeland Security Investigations investigated the case with Customs and Border Protection. Assistant U.S. Attorney Joni A. Stahl of the Las Cruces Branch Office is prosecuting the case.
McAllen woman charged in Medicare kickback conspiracyRead the Press Release
McALLEN, Texas – A 44-year-old McAllen woman has been charged with conspiring to pay illegal kickbacks to physicians and marketers in exchange for the referral of Medicare and Medicaid beneficiaries, announced U.S. Attorney Ryan K. Patrick.
A federal grand jury returned the indictment, under seal, against Claudia Haro Oct. 9, which was unsealed as authorities arrested her today. She is expected to make her initial appearance tomorrow morning before U.S. Magistrate Judge J. Scott Hacker.
The indictment charges Haro with engaging in a conspiracy from 2011 through 2016. Haro and her co-conspirators allegedly paid kickbacks to physicians and various other individuals in exchange for beneficiary referral and certification and for services and supplies billed to Medicare and Medicaid. According to the indictment, Haro delivered cash payments in return for the referral of beneficiaries to a home health agency and other providers with whom Haro was associated.
Haro is also charged with one count of making false statements to federal agents.
If convicted of any of the charges, she faces up to five years in prison.
The FBI, Department of Health and Human Services‐Office of Inspector General, Texas Attorney General’s Medicaid Fraud Control Unit and Texas Health and Human Services Commission conducted the investigation. Assistant U.S. Attorneys Andrew Swartz and Cynthia Villanueva are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Marion Man Sentenced to 84 Months in PrisonRead the Press Release
FORT WAYNE – Daniel King, age 68, of Marion, Indiana was sentenced before U.S. District Court Judge Holly A. Brady upon his plea of guilty to receipt of material involving the sexual exploitation of minors, announced U.S. Attorney Kirsch.
King was sentenced to 84 months imprisonment followed by 5 years of supervised release and the Court ordered forfeiture of the items involved in the commission of offense.
According to documents in this case, in July of 2016, King, was indicted for receiving child pornography and ultimately pled guilty to this offense. In his plea agreement, King also agreed to forfeit a tablet, a thumb drive, a laptop computer and 5 hard drives.
The case was investigated by Federal Bureau of Investigation’s Violent Crimes Against Children (VCAC) Task Force. The case was handled by Assistant United States Attorney Lesley J. Miller Lowery.
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Manhattan U.S. Attorney Files Civil Rights Suit Against Real Estate Firm and Developer for Designing and Constructing 68 Rental Apartment Buildings with Inaccessible ConditionsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that the United States has filed a federal civil rights lawsuit against real estate firm ATLANTIC DEVELOPMENT GROUP, LLC (“ATLANTIC”), and its principal, PETER FINE, for engaging in a pattern or practice of violations of the accessible design and construction requirements of the Fair Housing Act (“FHA”). Specifically, the United States alleges that ATLANTIC and FINE have designed and constructed more than 6,000 apartments in 68 rental buildings throughout the Bronx, Manhattan, and Westchester County that do not comply with the FHA’s accessibility requirements. The lawsuit seeks a court order directing ATLANTIC and FINE to retrofit these buildings to make them accessible to people with disabilities, to make changes to policies and procedures, and to compensate individuals who suffered discrimination due to the inaccessible conditions.
Manhattan U.S. Attorney Geoffrey S. Berman said: “The Fair Housing Act’s accessibility provisions were enacted to ensure that people with disabilities are not consigned to second-class status when it comes to housing. These rights under the FHA apply equally to residents who live in affordable housing as those living in luxury high-rises. With today’s lawsuit, real estate firms and developers in this District – including developers of affordable housing like Atlantic and Fine – should know that this Office will continue to use all available tools to enforce the FHA’s promise of accessibility in housing for people with disabilities.”
The FHA’s accessible design and construction provisions require multifamily housing complexes constructed after January 1991 to have basic features accessible to persons with disabilities. According to the Complaint, ATLANTIC and FINE failed to comply with the FHA’s accessibility requirements in designing and constructing 68 rental buildings that contain more than 6,000 apartments. As alleged in the Complaint, the inaccessible conditions include, among others:
- Excessively high thresholds at building entrances and entrances to common use areas like community rooms;
- Entrance ramps that lack handrails on both sides;
- Insufficient clear floor space in bathrooms within individual apartments;
- Insufficient widths between sinks or refrigerators and opposing ranges or counters in kitchens within individual apartments;
- Excessively high thresholds at entrances to individual apartments and within individual apartments; and
- Common use bathrooms that lack pipe insulation and toilet grab-bars.
The Complaint also alleges that these types of inaccessible conditions recur throughout the rental buildings developed by ATLANTIC and FINE across more than 15 years and involving multiple architects. Further, according the Complaint, many of the rental buildings at issue are designated for low-income residents, and FINE, through ATLANTIC, earned substantial profits from those developments on account of having received so-called 421-a tax exemption certificates for developing low-income rental properties.
Due to the inaccessible conditions at the rental buildings they designed and constructed, the Complaint alleges that ATLANTIC and FINE engaged in a pattern or practice of resistance to the full enjoyment of rights protected by the FHA and in denying such rights to people with disabilities. The Complaint seeks a court order directing ATLANTIC and FINE to retrofit the individual apartments as well as the public and common use areas in the 68 rental buildings so that they are accessible, to adopt policies and procedures to ensure FHA compliance in future constructions, and to compensate people who suffered discrimination due to the inaccessible conditions.
People who believe they may have experienced discrimination due to the inaccessible conditions at the 68 rental buildings developed by ATLANTIC and FINE may contact the Civil Rights Complaint Line at (212) 637-0840, use the Civil Rights Complaint Form available on the United States Attorney’s Office’s website http://www.justice.gov/usao/nys/civilrights.html, or send a written report to:
U.S. Attorney’s Office, Southern District of New York
86 Chambers Street, 3rd Floor
New York, New York 10007
Attention: Chief, Civil Rights Unit
The case is being handled by the Office’s Civil Rights Unit. Assistant U.S. Attorneys Li Yu, Jacob Lillywhite, Steven Kochevar, and Natasha Teleanu are in charge of the case.
Man Charged with Intent to Distribute MethamphetamineRead the Press Release
FORT WAYNE – Antonio Munos, 47, of Fort Wayne, Indiana, was charged in a criminal complaint with possession with intent to distribute methamphetamine, announced U.S. Attorney Kirsch.
The criminal complaint alleges that Munos possessed in excess of 2 pounds of methamphetamine. It was alleged that a Mr. Munos had agreed to sell methamphetamine to an individual on October 14, 2019. Mr. Munos and the individual met but did not come to agreement on the price so Mr. Munos was allegedly going to drive to the source of supply’s house. While driving to the house, Mr. Munos committed a traffic violation and was stopped by police. He exhibited nervous behavior when asked about the presence of narcotics in the vehicle, causing the officer to request a K-9 sweep. The K-9 alerted on the vehicle where over 2 pounds of methamphetamine were located in the trunk.
The United States Attorney’s Office emphasizes that a criminal complaint is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case is being investigated by the DEA with the assistance of the Fort Wayne Police Department. This case is being prosecuted by Assistant United States Attorney Stacey R. Speith.
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Man Admits to Dismantling and Stealing Oil Field EquipmentRead the Press Release
A Wynona man pleaded guilty Wednesday in U.S. District Court for dismantling and stealing oil pumping rig equipment from pumpjacks in Osage County, announced U.S. Attorney Trent Shores.
Lee Charles Smith, 32, pleaded guilty to Destruction of an Energy Facility. In his plea agreement, Smith admitted to dismantling and stealing the oil pumping rig equipment from Sept. 14 through Sept. 17, 2018.
"The oil and gas industry is the life blood of the Oklahoma economy. Lee Charles Smith dismantled pumpjack rig motors in Osage County to sell for parts. His thievery was an attack on the livelihood of all Oklahomans,” said U.S. Attorney Trent Shores. “I’m proud of the investigative team for bringing Smith to justice. He caused in excess of $30,000 in damages and disrupted valuable production time. This United States Attorney’s Office will work with our law enforcement partners to prosecute the destruction and theft of pumping equipment.”
U.S. District Judge Gregory K. Frizzell accepted Smith’s plea and set sentencing for Jan. 16, 2020.
The Osage County Sheriff’s Office, Oklahoma State Bureau of Investigation and FBI conducted the investigation. Assistant U.S. Attorney Scott Proctor is prosecuting the case.
Major Methamphetamine Supplier from Texas Sentenced to Life in Prison for ConspiracyRead the Press Release
Gulfport, Miss. – David Quevedo Martinez, 40, of Houston, Texas, was sentenced yesterday by Senior U.S. District Judge Louis Guirola to life in federal prison for conspiring to possess with intent to distribute 500 grams or more of methamphetamine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Brad L. Byerley with the Drug Enforcement Administration. Martinez was also ordered to pay a $15,000 fine.
“This defendant rightfully deserves to spend the rest of his life in prison for the innocent lives he has damaged or destroyed. I applaud the hard work of our law enforcement partners and our prosecutors, ensuring that this criminal will no longer threaten our people or the Mississippi Gulf Coast. Because of their diligence and courageous actions, our kids and communities are safer today,” said U.S. Attorney Hurst.
On June 26, 2019, Martinez was found guilty by a jury in federal court of conspiring to possess with intent to distribute 500 grams or more of methamphetamine. Judge Guirola presided over the three-day trial.
Trial testimony revealed that Martinez sold numerous kilograms of methamphetamine to co-conspirators in Houston, Texas. Those co-conspirators brought the methamphetamine back to the Mississippi Gulf Coast and distributed it throughout Gulfport and Moss Point.
The case was investigated by the Drug Enforcement Administration and the Pasadena, Texas, Police Department. It was prosecuted by Assistant U.S. Attorneys Kathlyn R. Van Buskirk and John Meynardie.
MS-13 Leaders Charged with Racketeering, Narcotics, and Firearms OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Peter C. Fitzhugh, the Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), and James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of an Indictment charging AMILCAR ROMERO, a/k/a “Soldado,” JAIME SANTANA, a/k/a “Smiley,” JOSE GARCIA, a/k/a “Tricky,” and ALEXANDER RIVERA, a/k/a “Extrano,” with racketeering conspiracy and narcotics distribution conspiracy. CRISTIAN GUERRERO-MELGARES, a/k/a “Enigma,” and GUSTAVO LLEVANO-RIVERA are charged in the narcotics conspiracy count. Several defendants also face firearms charges.
GARCIA, GUERRERO-MELGARES, and RIVERA were arrested this morning and will be presented today before Magistrate Judge Stewart D. Aaron. SANTANA was arrested last night and will be presented today in the Middle District of Tennessee. ROMERO is currently in state custody in California on other charges and will be transferred to federal custody in New York and presented at a later date. LLEVANO-RIVERA remains at large. The case is assigned to U.S. District Judge William H. Pauley III.
Manhattan U.S. Attorney Geoffrey S. Berman said: “The defendants in this case include alleged leaders of the L.A. Program of MS-13, operating across the United States. They and their co-defendants are alleged to have engaged in acts of violence, narcotics distribution, and the use of firearms. Thanks to our remarkable partners at HSI and the NYPD, the defendants now face federal charges for these very serious crimes.”
HSI Special Agent-in Charge Peter C. Fitzhugh said: “Today, three high ranking members of MS-13 were arrested for various charges, including, racketeering, drug distribution and firearms offenses. These three gang members allegedly utilized violence and intimidation in order to further their criminal enterprise. HSI New York and our other field offices around the country continue to work with our local law enforcement partners to combat MS-13. It is only through these coordinated efforts that we will be able to disrupt and ultimately dismantle this gang.”
NYPD Commissioner James P. O’Neill said: “Targeting gangs and crews, and preventing the violence so often associated with their illegal activities, continues to be among the highest priorities for the NYPD and our law enforcement partners. By precisely targeting the relatively small percentage of individuals responsible for committing much of the violence in New York, we are making the safest large city in America even safer. We remain relentless in our efforts to identify, arrest, and prosecute anyone who allegedly involves themselves in such criminal behavior.”
According to the allegations in the Indictment unsealed today in Manhattan federal
court as well as court filings[1]:
ROMERO, SANTANA, GARCIA, and RIVERA are members of a transnational racketeering enterprise known as Mara Salvatrucha, or MS-13, which operates throughout North and Central America, including in El Salvador, Mexico, New York, California, Texas, Virginia, Tennessee, and North Carolina. In order to enrich the enterprise, protect and expand its criminal operations, enforce discipline among its members, and retaliate against members of rival gangs, members and associates of MS-13 committed, conspired, attempted, and threatened to commit acts of violence; distributed and possessed with intent to distribute narcotics, including methamphetamine and cocaine; and obtained, possessed and used firearms.
MS-13 is organized into chapters called “cliques.” Groups of cliques, in turn, are aligned as “programs.” Each program is governed by a group of senior gang leaders known as the “table.” ROMERO, SANTANA, and GARCIA are high-ranking members of the table of the “L.A. Program” of MS-13.
* * *
ROMERO, 50, SANTANA, 39, GARCIA, 31, and RIVERA, 31, are charged with one count of racketeering conspiracy, which carries a statutory maximum sentence of life in prison. Those four defendants, as well as GUERRERO-MELGARES, 32, and LLEVANO-RIVERA, 23, are charged with one count of conspiracy to distribute and possess with intent to distribute: (i) 50 grams and more of methamphetamine, (ii) 500 grams and more of mixtures and substances containing a detectable amount of methamphetamine, and (iii) mixtures and substances containing a detectable amount of cocaine, which carries a statutory maximum sentence of life in prison, and a mandatory minimum sentence of 10 years in prison. SANTANA, GARCIA, and GUERRERO-MELGARES are charged with possessing, carrying, and using firearms during, in relation to, and in furtherance of, the narcotics conspiracy, which carries a statutory maximum sentence of life in prison, and a mandatory minimum sentence of five years in prison. SANTANA and RIVERA are charged with possessing firearms while unlawfully or illegally in the United States, which carries a statutory maximum sentence of 10 years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.
Mr. Berman praised the investigative work of HSI and the NYPD.
This case is being handled by the Office’s Violent & Organized Crime Unit. Assistant United States Attorneys Michael D. Longyear, Justin V. Rodriguez, and Jacob Warren 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 as well as the referenced letter constitute only allegations, and every fact described herein should be treated as an allegation.
Lewiston Woman Sentenced for Conspiracy to Manufacture MarijuanaRead the Press Release
Portland, Maine: A Lewiston woman was sentenced today in federal court in Portland for conspiring to manufacture marijuana, U.S. Attorney Halsey B. Frank announced.
U.S. District Judge George Z. Singal sentenced Stephanie Beck, 41, to 60 days in prison and three years of supervised release. Beck pleaded guilty on April 8, 2019.
According to court records, Beck was licensed by the State of Maine Department of Professional & Financial Regulation as a Certified Clinical Supervisor and an Alcohol and Drug Counselor. Between December 1, 2017, and February 27, 2018, she provided patient names (including the names of MaineCare recipients) to a nurse practitioner, who in turn created fraudulent medical marijuana certifications. These certifications allowed a marijuana trafficking conspiracy to illegally cultivate marijuana plants under the cover of the Maine Medical Use of Marijuana Program.
The U.S. Drug Enforcement Administration; the U.S. Department of Health & Human Services, Office of Inspector General; the Healthcare Crimes Unit of the Maine Office of Attorney General; and the IRS Criminal Investigation Division investigated the case.
Lead defendant in MS-13 racketeering case sentenced to life in prison with no chance of releaseRead the Press Release
COLUMBUS, Ohio – The lead defendant in a racketeering conspiracy involving five murders was sentenced in U.S. District Court here today.
Martin Neftali Aguilar-Rivera (a/k/a Momia), 34, of Columbus, was sentenced to life in prison by U.S. District Judge Edmund A. Sargus, Jr. for conspiring to commit racketeering and murder in aid of racketeering. Aguilar-Rivera accepted responsibility in July for participating in five murders.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Todd A. Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Rebecca Adducci, Detroit Field Office Director, U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations, Franklin County Sheriff Dallas Baldwin and Interim Columbus Police Chief Thomas Quinlan announced the sentence imposed this afternoon.
“This defendant’s ties to MS-13 in the Southern District of Ohio stretch back to the mid-2000s,” U.S. Attorney Glassman said. “From 2015 to the date of his arrest in August 2017, he was the unquestioned leader of the Columbus clique of MS-13. Under Aguilar-Rivera’s leadership, MS-13 members in Columbus became more organized, more violent, and more ruthless. He deserves to spend the rest of his life in prison.”
In February 2018, 23 individuals were charged in a second superseding indictment and alleged to be members and associates of MS-13 in Columbus.
The defendants are charged in a racketeering conspiracy, which includes five murders as well as attempted murder, extortion, money laundering, drug trafficking, assault, obstruction of justice, witness intimidation, weapons offenses and immigration-related violations.
The second superseding indictment alleges that the defendants committed a host of overt acts in furtherance of the conspiracy, including: 1) the December 2006 murder of Jose Mendez, a suspected confidential informant, in Perry County; 2) the November 2008 murder of Ramon Ramos on Lockbourne Road in Columbus; 3) the mid-2015 murder of Carlos Serrano-Ramos, a suspected rival gang member, near Innis Road in Columbus; 4) the November 2015 murder of Wilson Villeda near Innis Road in Columbus; and 5) the December 2016 murder of Salvador Martinez-Diaz, a suspected rival gang member, on Melroy Avenue in Columbus.
The murders sometimes involved defendants using weapons like machetes, knives and hammers to attack and beat their victims to death. In two of the charged murders, the victims were stabbed and slashed with bladed weapons before being buried in a nearby park.
U.S. Attorney Glassman commended the investigation of this case by the FBI, ICE, Columbus Division of Police and Franklin County Sheriff’s Office, and the assistance of the Ohio Bureau of Criminal Investigation (BCI) and Homeland Security Investigations (HSI), as well as Assistant United States Attorneys Brian J. Martinez and Jessica H. Kim, who are prosecuting the case.
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Las Vegas Man Sentenced to 8 Years in Prison for Committing Nearly $2 Million Business Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man who admitted to defrauding more than $1.8 million from victims of a business fraud scheme was sentenced today to eight years in federal prison and ordered to pay $1,715,475 in restitution, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
Jihad Anthony Zogheib, 53, pleaded guilty without a plea agreement in October 2018, to eight counts of wire fraud in connection to a fraud scheme. Zogheib was sentenced by U.S. District Judge Larry R. Hicks.
Zogheib admitted in court that, from about 2010 to about 2013, he devised a scheme to fraudulently obtain money from people falsely representing that he would use their money for business purposes. As part of the scheme, he influenced victims’ decisions by using forged business documents and fictitious emails from banks. Specifically, in February 2011, Zogheib falsely told one of his victims about forming a mobile crane company and a mobile crane leasing company. He claimed he had millions of dollars in an overseas account, but it was placed on a hold. After showing the victim a fictitious bank record showing millions of dollars on deposit, Zogheib’s dupe caused the victim into giving him $548,000 to fund the sham companies. From November 2010 to about August 2013, Zogheib defrauded two other victims by falsely claiming he was in the business of flipping real estate. He made false representations to the victims in order to receive hundreds of thousands of dollars for the nonexistent real estate investments. These two victims sent Zogheib a total of $1,307,475. Zogheib immediately used the ill-gotten proceeds to fund his gambling habit and high-end lifestyle.
The case was investigated by the FBI. Assistant U.S. Attorneys Patrick Burns and Steven Myhre prosecuted the case.
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Las Vegas Felon Pleads Guilty to Stealing over 200 Firearms from Trailer Parked at CasinoRead the Press Release
LAS VEGAS, Nev. – A Las Vegas felon pleaded guilty in federal court Tuesday to stealing more than 200 firearms from a trailer belonging to a Federal Firearms Licensee, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Special Agent in Charge Ray Roundtree for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
“Stolen firearms often end up in the hands of dangerous criminals to be used in violent crimes,” said U.S. Attorney Trutanich. “The quick work of our dedicated agents and officers stopped more than 200 stolen guns from flooding our communities. Their quick work undoubtedly saved lives.”
Samual Lane Donesing, 29, of Las Vegas, was indicted in August 2018, with one count of possession of stolen firearms and one count of felon in possession of a firearm. He has three prior felony convictions in Clark County including forgery, possession of a stolen vehicle, and grand larceny. Donesing pleaded guilty without the benefit of a plea agreement before U.S. District Judge Richard F. Boulware II.
According to court documents and Donesing’s in-court admissions, on July 31, 2018, he stole a truck and trailer belonging to a Federal Firearms Licensee parked at the Fiesta Henderson Casino. The trailer contained over 200 firearms along with ammunition and firearms accessories such as holsters and magazines. Donesing and co-defendant Jaemillah Eagans drove the trailer to Donesing’s home and unloaded the firearms into the residence. Hotel surveillance footage showed Donesing and Eagans driving away with the stolen truck, and law enforcement soon identified the defendants as suspects.
Sentencing has been scheduled for January 16, 2020. Donesing faces a maximum penalty of 10 years in prison and a $250,000 fine for each count.
Eagans, 27, awaits a jury trial set on January 27, 2020. Eagans is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The case was investigated by the ATF with assistance from the Henderson Police Department and Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Linda Mott is prosecuting the case.
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Lackawanna Man Pleads Guilty to Fentanyl ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Larry D. Brodie, Jr., 38, of Lackawanna, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to possession with intent to distribute butyryl fentanyl. The charge carries a maximum penalty of 20 years in prison and a fine of $1,000,000.
Assistant U.S. Attorney Justin L. Bish, who is handling the case, stated that on April 4, 2019, a Lackawanna Police undercover officer contacted the defendant to arrange for a controlled purchase of heroin. Brodie then met with and sold the undercover officer approximately $100 of suspected heroin and $40 worth of crack cocaine.
The plea is the result of an investigation by the Lackawanna Police Department, under the direction of Chief James Michel, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan.
Sentencing is scheduled January 30, 2020, before Judge Arcara.
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KC Man Pleads Guilty to Meth Conspiracy, Faces at Least 15 Years in PrisonRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man pleaded guilty in federal court today to his role in a conspiracy to distribute large quantities of methamphetamine.
Alfredo Soto-Contreras, also known as “Antonio,” 35, pleaded guilty before U.S. Chief District Judge Beth Phillips to one count of conspiracy to distribute methamphetamine, one count of conspiracy to use firearms during and in relation to a drug-trafficking crime, and one count of use of a firearm during and in relation to a drug-trafficking crime.
This investigation into a conspiracy to traffic large quantities of methamphetamine ended on Dec. 18, 2018, when four co-conspirators were arrested in possession of approximately 25 pounds of methamphetamine during an undercover operation. Conspirators sold (or attempted to sell) a total of approximately 13 kilograms of methamphetamine to an undercover agent of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Conspirators also sold eight firearms to the undercover agent, including several that had been reported as stolen.
Soto-Contreras is the third defendant to plead guilty to his role in the drug-trafficking conspiracy, which lasted from May 2018 to Dec. 18, 2018.
Under federal statutes, Soto-Contreras is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Justice Department Commemorates 10th Anniversary of Matthew Shepard and James Byrd, Jr., Hate Crimes Prevention ActRead the Press Release
In commemoration of the tenth anniversary of the enactment of the Matthew Shepard and James Byrd, Jr., Hate Crimes Prevention Act, the Department of Justice today announced technical assistance resources to fight hate crimes across the country, including development of a new hate crimes training curriculum for law enforcement, and a hate crimes outreach and engagement program for communities entitled ‘United Against Hate: Cultivating Community Partnerships.’
“Hate crimes are especially reprehensible because of the toll they take on families, communities, and our nation as a whole. Precisely because they are fueled by bias against specific people and groups, they also are a grave affront to America’s foundational principles and ideals,” said Attorney General William P. Barr. “That is why the Department of Justice is committed to using every tool at its disposal to combat crimes motivated by this kind of intolerance. The measures announced at today’s commemoration of the tenth anniversary of the Hate Crimes Prevention Act will strengthen our ability to identify and prosecute those who perpetrate these unconscionable acts of hatred.”
“The tenth anniversary of the Shepard-Byrd Act reminds us of the Act’s continued importance. Today Department of Justice officials, law enforcement, and other Americans have come together to highlight both the substantial efforts we have made to combat, prevent, and prosecute hate crimes, and the critical work still to be done,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division.
A year ago this month, in October 2018, the Department’s Hate Crimes Enforcement and Prevention Initiative convened a law enforcement roundtable on hate crimes. The day and a half–long event, highlighted in a forthcoming report, brought law enforcement and other leaders from around the country together with Department of Justice officials to explore successful practices and challenges in identifying, reporting, and tracking hate crimes. At the roundtable, it was announced that technical assistance through the Collaborative Reform Initiative for Technical Assistance Center (CRI-TAC) – a partnership with the International Association of Chiefs of Police and nine leading law enforcement leadership and labor organizations, -- funded through the Office of Community Oriented Policing Services (COPS Office) -- would be extended to help state, local, and tribal law enforcement with hate crimes prosecution and prevention.
The Department today announced that the COPS office is supporting the development of a new hate crimes curriculum through CRI-TAC. This important training will focus on law enforcement response, investigation, and reporting of hate crimes consistent with the Administration’s guidance. The course when developed and made available will be focused on increasing the capacity and competency to investigate and accurately report hate crimes, and pursuing the best option for prosecution of perpetrators.
At last year’s roundtable, law enforcement emphasized the single most important tool the federal government could provide would be training to improve investigating and reporting of hate crimes to state, local, and tribal law enforcement.
“The training is directly responsive to the requests from the field that we heard at the Initiative’s Law Enforcement Roundtable, and embodies our philosophy of ‘by the field, for the field,’” said COPS Director Phil Keith.
In addition to the hate crimes training, the Department is also launching a two-phase hate crimes outreach and engagement program. The outreach program “United Against Hate: Cultivating Community Partnerships,” aims to address the underreporting of hate crimes to law enforcement. In phase two of the outreach program the U.S. Attorney’s Offices will have the opportunity to facilitate trainings across the country, convening a wide array of community groups, such as advocacy organizations, educators, and local leaders (including religious leaders) to discuss the impact of hate crimes and explore strategies to build trust with federal, state, local, and tribal law enforcement.
In recent years, the Department has strengthened its hate crimes prosecution program and increased training of federal, state, and local law enforcement officers to ensure that hate crimes are identified and prosecuted to the fullest extent possible. Over the past 10 years, the Department of Justice has charged more than 330 defendants with hate crimes offenses, including more than 70 defendants total during FY 2017, 2018, and 2019. During this three-year time period, the Department has obtained convictions of more than 65 defendants for hate crimes incidents with some cases still pending.
Hate crimes prosecutions are often high profile and their impact is felt nationally and sometimes internationally. This year, the Department’s hate crimes prosecutors have handled several high-profile investigations and criminal prosecutions, including cases in Charlottesville, VA, Pittsburgh, PA, and Jeffersontown, KY.
In southern California, after a shooter killed one and wounded three others at the Chabad of Poway Synagogue, and set fire to the Dar-ul-Arqam Mosque in Escondido, the Department secured a 113-count indictment that included numerous hate crimes charges. And in Dallas, Texas, the Department secured a guilty plea from a man for kidnapping and conspiracy charges for his involvement in a scheme to single out men because of their sexual orientation. The defendant conspired with others to use Grindr, a social media platform, to lure gay men to areas around Dallas for robbery, carjacking, kidnapping, and violent hate crimes.
“The FBI's mission is simple but profound: to uphold the Constitution and protect the American people. It's why battling hate crime is one of the FBI's top priorities,” said FBI Director Christopher Wray. “Hate crime strikes at the very heart of our society, targeting people in our communities based solely on who they are. The FBI will not allow this threat to cast a shadow over our safety and our security. We'll continue to work with our law enforcement partners and use every tool at our disposal to prevent and investigate acts of hate and protect the American people.”
“Prosecuting hate crimes is critical to keeping our community safe. When one member of a group in the community is the victim of a hate crime, all members carry with them a fear that they too may be targeted because of who they are,” said U.S. Attorney for the District of Columbia Jessie K. Liu, Chair of the Attorney General’s Advisory Committee. “The Department of Justice will use every tool at its disposal to protect the people of the United States from these cowardly crimes.”
The Department offers a variety of training and outreach programs to work with local communities and organizations and law enforcement to find, identify, investigate, and prosecute hate crimes cases all over the country. These programs include state and local law enforcement trainings, roundtable and panel discussions, stakeholder telephone conferences, and hate crime summits.
“For example, in Fiscal Year 2019, the Community Relations Service (CRS) facilitated 19 Protecting Places of Worship forums and 10 Hate Crime Forums across the United States where law enforcement and other experts shared best practices with community groups working to prevent and respond to hate crimes,” said Gerri Ratliff, CRS Deputy Director.
More information about the Department’s hate crimes efforts, including facts and statistics, case examples, and a searchable collection of the Department’s resources for law enforcement, community groups, researchers and others, are available at www.justice.gov/hatecrimes. Launched a year ago this month, this website provides a centralized portal for the Department’s hate crimes resources, and has attracted over 200,000 visitors to date.
Johnstown Man Conspired to Possess and Distribute Crack CocaineRead the Press Release
JOHNSTOWN, Pa. -A resident of Johnstown, Pa., pleaded guilty in federal court to a charge of conspiracy to possess with intent to distribute and distribute a quantity of cocaine base, United States Attorney Scott W. Brady announced today.
Kawan Dock, 42, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that from May 7, 2019, to May 16, 2019, Dock conspired to possess with intent to distribute and distribute a quantity of cocaine base, in the form commonly known as crack.
Judge Gibson scheduled sentencing for February 25, 2020, at 10:00 a.m. The law provides for a maximum total sentence of 30 years in prison, a fine of $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Dock.
Jacksonville Repeat Offender Sentenced to More Than Seven Years in Federal Prison for Selling Crack CocaineRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced James Bernard Kennedy (46, Jacksonville) to seven years and four months in federal prison for distributing cocaine base (also known as crack cocaine).
Kennedy had pleaded guilty on June 26, 2019.
According to court documents, Kennedy sold crack cocaine to a confidential informant on one occasion and to an undercover federal agent an additional four times.
In 2013, Kennedy was prosecuted and convicted by the State of Florida for conspiracy to traffic cocaine.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney Michael J. Coolican.
Jacksonville Man Sentenced for Disaster Assistance Fraud Involving Tropical Storm Debby, Hurricane Matthew, and Hurricane IrmaRead the Press Release
Jacksonville, Florida – Senior U.S. District Judge Harvey E. Schlesinger has sentenced Lepoleon Spikes (47, Jacksonville) to 21 months in federal prison for wire fraud involving fraudulently obtained FEMA benefits. Spikes was immediately remanded into the custody of the U.S. Marshals Service. The court also ordered Spikes to pay $57,689.19 in restitution to the United States.
According to court documents, in February 2018, the U.S. Department of Homeland Security, Office of Inspector General (DHS-OIG) received an allegation that Spikes had provided false information to the Federal Emergency Management Agency (FEMA) in order to receive disaster assistance. Upon receipt of the allegation, DHS-OIG determined that Spikes had submitted applications to receive disaster assistance from FEMA involving Tropical Storm Debby, Hurricane Matthew, and Hurricane Irma. A review by DHS-OIG determined that, in each of the applications submitted to FEMA for disaster assistance, Spikes falsely claimed that his primary residence in Jacksonville was damaged due to a storm. Spikes claimed that, due to the storm damage, he had to relocate and was in need of disaster assistance. Based on his applications for disaster assistance, Spikes fraudulently obtained $57,689.19 from FEMA.
This case is part of the United States Attorney’s Disaster Fraud Task Force, which was announced in September 2017. This case was investigated by the Department of Homeland Security - Office of Inspector General. It was prosecuted by Assistant United States Attorney Kevin C. Frein.
Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. A live operator 24 hours a day, 7 days a week staffs the telephone line. You can also fax information to the Center at (225) 334-4707, or email it to [email protected]. You may also visit www.justice.gov/usao-mdfl.
Illinois Woman Pleads Guilty to Conspiring to Commit Wire Fraud and Aggravated Identity TheftRead the Press Release
Lamesha Conley of Chicago, Illinois, pleaded guilty today to conspiracy and identity theft charges related to a scheme to obtain fraudulent tax refunds using stolen identity information, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to documents filed with the court, starting around January 2014, Conley provided more than 6,000 stolen identities to Dominique King and Roxann Gist for the purpose of filing fraudulent income tax returns. Between January 2014 and July 2015, King and Gist used those stolen identities to file fraudulent income tax returns with the Internal Revenue Service (IRS) seeking more than $2.6 million in refunds. King and Gist directed that some of the refunds be mailed to Conley and other co-conspirators.
Conley is scheduled to be sentenced on Jan. 27, 2020. Conley faces a statutory maximum sentence of 20 years in prison for conspiracy to commit wire fraud and a two-year mandatory minimum sentence for aggravated identity theft, which will run consecutive to any other sentence imposed by the court. Conley also faces a period of supervised release, restitution, and monetary penalties.
King, Gist, and other co-defendants previously pleaded guilty for their roles in the scheme. King was sentenced to 30 months in prison and Gist was sentenced to 36 months in prison. They were ordered to pay $1,332,935 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Timothy M. Russo and Lee F. Langston of the Tax Division, who are prosecuting this case. Principal Deputy Assistant Attorney General Zuckerman also thanked the U.S. Attorney’s Office for the Northern District of Illinois for their substantial assistance in the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division's website.
Illegal Alien indicted on reentry chargeRead the Press Release
ELKINS, WEST VIRGINIA – Jose Catarino Feregrino-Resendez, a citizen of Mexico, was indicted by a federal grand jury today for an immigration violation, U.S. Attorney Bill Powell announced.
Feregrino-Resendez, age 49, was indicted on one count of “Reentry of Removed Alien.” Feregrino-Resendez is accused of reentering the country illegally after be removed once before. The crime allegedly occurred in April 2019 in Harrison County.
Feregrino-Resendez faces up to two years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Andrew R. Cogar is prosecuting the case on behalf of the government. The Department of Homeland Security Immigrations and Customs Enforcement and the FBI investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Illegal Alien Sentenced to Two Years in Federal Prison for Illegally Re-Entering the United StatesRead the Press Release
Jacksonville, Florida – United States District Judge Brian J. Davis has sentenced Samuel Lopez-Lopez (29, Atlanta) to 24 months in federal prison for illegally re-entering the United States after previously being deported. Lopez-Lopez had pleaded guilty on July 2, 2019.
According to the facts described in court, on February 18, 2019, Lopez-Lopez was convicted of battery on a law enforcement officer and grand theft in Columbia County. The charges arose out of an incident at a hotel in Lake City that had occurred on December 28, 2018. After Lopez-Lopez was booked on the charges, immigration agents ran his fingerprints and found that he was a citizen of Honduras who was illegally present in the United States. Lopez-Lopez also had been previously deported from the United States three times.
Lopez-Lopez had previous convictions for domestic battery, use of a controlled substance, transportation of a controlled substance, and possession of a controlled substance. After Lopez-Lopez serves his prison sentence, he will be deported from the United States.
This case was investigated by U.S. Immigration and Customs Enforcement. It was prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Georgia Man Who Trafficked Dozens of Guns into Connecticut Sentenced to 7 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Kelly D. Brady, Special Agent in Charge, ATF Boston Field Division, announced that JIVON JOHNSON, 32, of Snellville, Georgia, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 84 months of imprisonment, followed by three years of supervised release, for trafficking guns into Connecticut. Judge Underhill also ordered Johnson to perform 300 hours of community service while on supervised release.
According to court documents and statements made in court, in March 2018, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) learned that Johnson, who formerly resided in Bridgeport, was using the Snapchat app to advertise the sale of firearms that he had acquired in Georgia and would transport to Connecticut to sell. Investigators subsequently viewed multiple images, or “Snaps,” from Johnson’s Snapchat account advertising the sale of numerous firearms and ammunition, include several high-powered firearms and extended magazines. On September 22, 2018, investigators conducted a controlled purchase of a handgun and two magazines from Johnson in Bridgeport.
Johnson was arrested in Georgia on October 3, 2018. After his arrest, Johnson admitted that he had traveled to Connecticut on seven occasions over approximately 18 months and sold at least 30 guns in Bridgeport during that time.
Johnson’s criminal history includes felony convictions for firearm and narcotics offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Johnson has been detained since his arrest. On June 24, 2019, he pleaded guilty to one count of possession of a firearm by a convicted felon.
This matter was investigated by ATF and prosecuted by Assistant U.S. Attorney Vanessa Richards.
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 neighborhoods safer for everyone.
Four Western Washington organizations receive U.S. DOJ grants totaling more than $2 million to support victims of human traffickingRead the Press Release
Seattle – U.S. Attorney Brian T. Moran announced Department of Justice grants for four organizations in Western Washington who are working to rescue and support victims of human trafficking. The organizations work with young people and one has a special focus on Native American victims.
“I’m pleased that the Seattle Indian Health Board received funding under DOJ’s Project Beacon – designed to increase services for Native Americans living in urban areas,” said U.S. Attorney Moran. “As we work to address the problem of Murdered and Missing Indigenous Women, developing services and informing the community about the scourge of sex trafficking is critically important.”
The Seattle Indian Health Board received a $450,000 grant to build a referral network for sex trafficking victims, to educate the public and to train providers about culturally appropriate treatment for Native victims of sex trafficking.
YouthCare in Seattle received a $571,307 grant to support victims of human trafficking. YouthCare works with homeless, street-involved and sexually exploited youth ages 12-24. These funds are to provide case management, training and coordination among a variety of organizations serving young people.
Real Escape from the Sex Trade in Seattle’s Rainier Valley will receive a $500,000 grant to launch the Economic Leadership and Empowerment Academy to provide training in a job readiness program. The program will be designed specifically for victims of sex trafficking, providing internships and employment placement as well as monthly leadership development workshops.
In Everett, Cocoon House received a $500,000 grant. The grant will expand services for Snohomish County trafficking victims under age 18. The organization plans to add a Human Trafficking Advocate and Program Coordinator so that it can provide services to at least 100 trafficked or at-risk youth.
For additional information on individual grants, please contact the recipient organizations.
Former Superintendent of Santee Community Schools Convicted of Theft of Government MoneyRead the Press Release
United States Attorney Joe Kelly announced that Paul Sellon, age 63, of Hamburg, Iowa, was sentenced today in federal court in Lincoln for Theft of Government Money. Senior United States District Judge Richard G. Kopf sentenced Sellon to 24 months’ imprisonment. There is no parole in the federal system. Sellon will begin a 3-year term of supervised release upon his release from prison. Sellon was also ordered to pay $314,121.00 in restitution to the United States Department of Education.
Sellon was the Superintendent of Santee Community Schools on the Santee Sioux Nation Reservation in Santee, Nebraska from 2010 to 2014. Sellon’s duties as Superintendent included administering the development and maintenance of a positive educational program and recommending and implementing the school district’s professional development plan and staff training. Sellon caused Santee Community Schools to contract with an educational consulting business owned and operated by an associate of Sellon. This educational consultant was paid to provide services to the Santee Community Schools with funds from the American Recovery and Reinvestment Act School Improvement Grant. As a precondition to this educational consultant being hired by Santee Community Schools, Sellon informed the consultant that the consultant would have to pay Sellon a portion of the proceeds he would receive from the School Improvement Grant. From 2012 to 2013, Sellon received $314,121.00 of the School Improvement Grant funds as a result of this kickback arrangement.
This case was investigated by the Federal Bureau of Investigation.
Former Suboxone Clinic Doctor Sentenced for Illegal Prescribing and Health Care FraudRead the Press Release
PITTSBURGH - A former resident of Sewickley, Pennsylvania, has been sentenced in federal court to 180 days of home confinement; three years’ probation; fined a total of $20,000.00; and ordered to pay $156,902.89 in restitution on his conviction of unlawfully prescribing buprenorphine and committing health care fraud, United States Attorney Scott W. Brady announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Michael Anthony Bummer, age 40.
According to information presented to the court, Bummer, a physician, was employed at Redirections Treatment Advocates (Redirections), a buprenorphine clinic with offices in Pennsylvania and West Virginia. Under federal law, a prescription for a controlled substance is required to be signed and dated the day it is issued. Bummer and other doctors at Redirections would routinely pre-sign blank prescriptions for buprenorphine, which is a scheduled controlled substance under federal law. The pre-signed prescriptions were then given to other medically-unlicensed employees at Redirections who completed the prescription and provided it to the patients in exchange for cash. On numerous occaisons, the doctors were not physically present at Redirections and did not exam their patients when prescriptions bearing their names were issued. For example, on August 17, 2016, one of Bummer’s patients received a prescription for buprenorphine although Bummer was not in the office and did not see the patient. Because the prescriptions were illegally issued, Medicare and Medicaid were defrauded when Redirections’ patients used their insurance to fill the prescriptions. When confronted by an investigator, Bummer surrendered his license to prescribe controlled substances.
Prior to imposing sentence, Judge Schwab stated that the sentence was intended to achieve the goals of punishment and the other sentencing factors set forth in the United States Code.
Assistant United States Attorneys Robert Cessar and Michael Leo Ivory prosecuted this case on behalf of the government.
United States Attorney Brady added the investigation leading to the filing of charges in these cases was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit (OFADU). The Western Pennsylvania OFADU, led by federal prosecutors in the U.S. Attorney’s Office, combines the expertise and resources of federal and state law enforcement to address the role played by unethical medical professionals in the opioid epidemic.
The agencies which comprise the Western Pennsylvania OFADU include: Federal Bureau of Investigation, U.S. Health and Human Services – Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, Pennsylvania Office of Attorney General – Bureau of Narcotic Investigations, United States Postal Inspection Service, U.S. Attorney’s Office – Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs-Office of Inspector General, Food and Drug Administration-Office of Criminal Investigations, U.S. Office of Personnel Management – Office of Inspector General and the Pennsylvania Bureau of Licensing.
Former State Senator’s Accountant Convicted of Tax FraudRead the Press Release
BOSTON—John H. Nardozzi, the certified public accountant for former State Senator Brian Joyce, was convicted today by a federal jury for conspiring with the late senator to defraud the IRS from 2011 through 2014.
Nardozzi, 67, of Waltham, was convicted after a seven-day trial of defrauding the IRS of approximately $600,000 by manipulating income that should have been reported on Joyce’s corporate tax return and by applying it to Joyce’s personal tax return. Nardozzi was also convicted of falsely creating a single-employment pension (SEP) fund for Joyce and his wife, to which they were not otherwise entitled. In doing so, Nardozzi enabled Joyce and his wife to defer taxes on approximately $400,000 of income. Nardozzi also assisted Joyce in an illegal rollover of Joyce’s SEP account to purchase stock in a private company without following the IRA rollover rules. In addition, Nardozzi attributed income from Joyce’s law firm to Joyce’s wife even though she never worked for the law firm.
U.S. District Court Judge William G. Young scheduled sentencing for Jan. 9, 2020.
The charge of conspiracy to defraud the United States provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of aiding and assisting in filing a false tax return provides for a sentence of up to three years in prison, one year of supervised release and a fine of up to $100,000. 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 Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorneys Dustin Chao and Evan Gotlob of Lelling’s Public Corruption and Special Prosecutions Unit are prosecuting the case.
Former President of Labor Union Pleads Guilty to Demanding and Accepting BribesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that GLENN BLICHT, the former president of a labor union (the “Union”), pled guilty today to violating the Taft-Hartley Act by demanding and accepting approximately $150,000 in bribe payments from an employer (the “Employer”). In exchange for these bribes, BLICHT did not represent Union members’ interests. BLICHT pled guilty before United States District Judge Analisa Torres, to whom BLICHT’s case is assigned.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As the president of a labor union, Glenn Blicht’s duty was to fight for his union members. Instead, for many years, he demanded and accepted bribes – and in return, he sold out his union members. Our Office is committed to prosecuting those who abuse positions of trust for their own gain.”
According to the allegations in the Indictment to which BLICHT pled guilty, public court filings, and statements made in court:
From 2009 through the present, BLICHT served as an officer of the Union, including as its president for many years. In that role, BLICHT had a duty to act in the best interests of the Union and its members, including by avoiding personal financial conflicts of interest with the Union. Nevertheless, BLICHT demanded and received cash payments from the Employer, which employed a number of members of the Union. In exchange for these bribes, BLICHT declined to file arbitration claims on behalf of Union members. In total, BLICHT received approximately $150,000 in bribes from the Employer over approximately 10 years.
In communications, a number of which were recorded, BLICHT repeatedly referred to the bribe payments as “tickets,” in which each ticket equaled a $1,000 bribe. BLICHT instructed an official of the Employer (the “Official”) as to the number of “tickets” to pay BLICHT each time. Indeed, during the past year, the Official met with BLICHT several times and paid him bribes on approximately four occasions, at the direction of law enforcement. Each of these meetings was recorded. For instance, on July 26, 2019, BLICHT received a $10,000 cash bribe from the Official at a restaurant in New York, New York; BLICHT was arrested outside this restaurant, in possession of the $10,000 bribe.
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BLICHT, 57, of Wilton, Connecticut, pled guilty to one count of demanding or receiving prohibited payments as a labor union official, which carries a maximum sentence of five years in prison. Under the terms of his plea agreement, BLICHT has agreed to a 13-year ban, which generally prohibits him from, among other things, being employed by a labor union or employee benefit plan, pursuant to Title 29, United States Code, Sections 504 and 1111. BLICHT has also agreed to forfeit $150,000 and to pay restitution. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Sentencing before Judge Torres is scheduled for February 12, 2020, at 3:00 p.m.
Mr. Berman praised the Department of Labor’s Office of Inspector General and Employee Benefits Security Administration, the Internal Revenue Service-Criminal Investigation Division, and the Federal Bureau of Investigation for their outstanding work on the investigation. Mr. Berman also thanked the Department of Justice’s Labor-Management Racketeering Unit of the Organized Crime and Gang Section for their assistance in this case.
This matter is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Michael D. Neff is in charge of the prosecution.
Former IRS Employee Indicted for Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – A former IRS employee has been indicted by a federal grand jury for stealing refunds from taxpayers.
Tamara R. Miller, 39, of Kansas City, Missouri, was charged in a five-count indictment returned under seal by a federal grand jury in Kansas City on Oct. 2, 2019. That indictment was unsealed and made public today upon Miller’s arrest and initial court appearance.
Miller was employed by the IRS as a data transcriber at the Kansas City Service Center. As part of her duties, Miller handled individual income tax returns received by mail at the Kansas City Service Center.
The federal indictment alleges that Miller selected tax returns on which the “Refund” section did not show a routing number or account number for a direct deposit to a financial institution (indicating the taxpayer elected to have the refund paid by a U.S. Treasury check). Miller allegedly used taxpayers’ means of identification, including names and Social Security numbers, shown on their tax returns to apply for accounts at online banks that issued prepaid debit cards. If Miller succeeded in opening an online account with a taxpayer’s means of identification, she entered the routing number and account number for the fraudulently created account in the “Refund” section of the taxpayer’s Form 1040. Miller had access to the fraudulently created account; the taxpayer did not know the account existed.
As an alternative means of fraudulently altering taxpayers’ returns, Miller entered the routing and account numbers for an existing online account to which she had access in the “Refund” section of the Forms 1040, thereby falsely representing that the taxpayer elected to have the refund amount deposited directly to that account.
Miller allegedly caused the fraudulently altered Forms 1040 to be submitted and processed for payment of the refund amounts requested by the taxpayers. The refund amounts were subsequently deposited directly to accounts controlled by Miller and accessible to Miller.
The indictment cites two victims of Miller’s fraud scheme, with a total loss amount of $5,214. Miller is charged with two counts of wire fraud, one count of aggravated identity theft, and two counts of theft of public money.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Tom Larson. It was investigated by the U.S. Treasury Inspector General for Tax Administration.
Former Gulf Cartel comandante receives significant prison sentenceRead the Press Release
HOUSTON - A 34-year-old Mexican man has been ordered to federal prison sentence following his conviction of conspiracy to import large amounts of cocaine and marijuana, announced U.S. Attorney Ryan K. Patrick.
Luis Ivan Nino-Duenez, El Control, Tamaulipas, Mexico, pleaded guilty June 3, 2014.
Today, Senior U.S. District Judge Hilda G. Tagle sentenced Nino-Duenes to a total of 20 years in federal prison.
During the hearing, the court heard evidence to support possible increases in the calculated sentencing guideline range. Nino-Duenes utilized automatic weapons, grenades, homemade cannons and body armor to provided security during the purchase, transportation and distribution of narcotics. He also commanded, directed and engaged in violent confrontations with other criminal syndicates to maintain control of the plazas in Mexico. He further received enhancements for importation of meth into the United States, maintaining premises for the purpose of manufacturing or distributing a controlled substance and because he committed the offense as part of a pattern of criminal conduct. Finally, the court also found Nino-Duenes was a leader/organizer of an extensive criminal enterprise involving five or more participants.
Nino-Duenes served as a comandante for Jose Luiz Zuniga-Hernandez aka Wicho or XW who served as a gulf cartel plaza boss in El Control for a large period of time between 2008 through 2011.
On Nov. 6, 2010, Zuniga-Hernandez assumed control of the Matamoros Plaza upon the death of Antonio Ezequiel Cardenas-Guillen. On March 28, 2011, Rafael Cardenas-Vela came to Matamoros to take over the plaza management duties and Zuniga-Hernandez returned to El Control.
Cartel Del Golfo (CDG) transnational criminal organization plaza bosses are appointed to specific regions to help coordinate the importation and distribution of multi-ton shipments of cocaine, marijuana and other illicit narcotics within Mexico and into the United States. They are the lead representatives for the CDG in a particular region or town, responsible for maintaining control of the region and ensuring the safe passage of narcotics. The plaza boss also extracts a "piso," or payment, from others who want to transport narcotics for importation into the United States or operate businesses in that region.
Additional evidence presented today indicated Zuniga-Hernandez and the CDG smuggled more than one ton of cocaine through the Matamoros/El Control plaza areas and more than 3000 kilograms of marijuana into the United States per month. The CDG used planes and clandestine air strips to fly the cocaine into Mexico for later importation and distribution within the United States.
Zuniga-Hernandez had under his command approximately 120 lookouts and 60 estacas. An estaca is a vehicle occupied by three or four armed individuals. Thus, 60 estacas would be anywhere from 180 to 240 armed individuals patrolling the plaza. Nino-Dunez was the commander of Zuniga-Hernandez’s estacas.
On Oct. 27, 2011, Zuniga-Hernandez and Nino-Duenes along with Hernandez and Rincon-Rincon fled into the United States after a gun battle in Mexico involving a power struggle between the CDG plazas.
All were found hiding near the Rio Grande River. Upon their arrest, agents found a gold, diamond and ruby encrusted gun, more than $39,000 and several cell phones. Evidence on those phones showed discussions with "Apa" about the gun battle and what to do in response. "Apa" was identified as Jorge Eduardo Costilla-Sanchez, the head of the CDG.
Zuniga-Hernandez, Hernandez and Rincon-Rincon were previously sentenced to 50 years, 35 years and life imprisonment, respectively.
Nino-Duenes 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, Drug Enforcement Administration and Cameron County Sheriff’s Office conducted the Organized Crime Drug Enforcement Task Force investigation. Assistant U.S. Attorneys Angel Castro and Jody Young are prosecuting the case.