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21 November 2019
Lakeland Woman Convicted of Fraudulently Obtaining Federal Disaster Relief Following Hurricane IrmaRead the Press Release
Tampa, FL – A federal jury has found Karen Latrice Houston (37, Lakeland) guilty of three counts of theft of government funds. She faces a maximum penalty of 10 years in federal prison on each count. A sentencing date has not yet been set.
Houston was indicted on May 8, 2019.
According to evidence presented at trial, in September 2017, Houston filed a false application with the Federal Emergency Management Agency (FEMA) to obtain disaster relief benefits following Hurricane Irma. In the application, Houston falsely claimed that a home located in a Lakeland mobile home park was her primary residence, and that the home was damaged during Hurricane Irma. In fact, Houston had been evicted from the mobile home park in early 2017. In connection with her application for disaster aid, Houston misrepresented to a FEMA inspector that she still resided at the address that she had listed on her FEMA application. As a result of those misrepresentations, Houston obtained $21,875.57 in FEMA funds and benefits to which she was not entitled.
The FEMA funds and benefits Houston received were intended for critical needs, home repair, replacement of personal property, and shelter for persons displaced from their residence due to Hurricane Irma.
This case was investigated by the U.S. Department of Homeland Security – Office of Inspector General. It is being prosecuted by Assistant United States Attorney Jennifer L. Peresie.
Korean National Sentenced to 10 Years in Prison for Role in Foreign Exchange Trading ScamRead the Press Release
OAKLAND – Jin K. Chung was sentenced to 120 months in prison for money laundering, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The sentence was handed down by the Honorable Jeffrey S. White, U.S. District Judge.
On September 3, 2019, Chung, 56, of Seoul, Korea, pleaded guilty to laundering money he obtained from a foreign exchange trading scam. According to his guilty plea, Chung acknowledged more than 400 victims lost approximately $60,302,886.59 as a result of the scam. Chung admitted that, in 2003, he and codefendant Peter Son, 47, of Portland, Oregon, started two companies, SNC Asset Management, Inc., and SNC Investments, Inc., both headquartered in Pleasanton, California. Chung admitted that he falsely advertised both companies as highly successful in foreign exchange trading. Further, Chung promised potential investors they would receive annual investment returns of between 24% and 36%. Chung knew that these representations were false and made with the intention of attracting individuals to invest in the two companies. Chung acknowledged that hundreds of investors opened accounts and deposited money into the two companies based upon the fraudulent representations. Chung and Son deposited the clients’ funds into bank accounts they controlled. While directing employees of the companies to send monthly statements to the investors that falsely reported accrued earnings, Chung regularly cashed checks or arranged wire transfers in amounts over $10,000 for his own benefit. By October 2008, the defendants depleted the funds in the companies’ accounts and closed both businesses without advance notice to employees or clients.
Chung originally was charged in connection with this scheme on May 29, 2009. The defendant was extradited from the Republic of Korea in February of 2019. Chung was charged by information on July 8, 2019. The information alleged a single count of engaging in monetary transactions in property derived from money laundering, in violation of 18 U.S.C. § 1957. Chung pleaded guilty to the charge.
Son is currently serving a prison term of 180 months for his role in the scheme. On April 9, 2010, Son pleaded guilty to conspiracy to commit wire fraud and conspiracy to engage in monetary transactions with the proceeds of wire fraud, in violation of 18 U.S.C. §§ 1349 and 1956(h), respectively. The Honorable D. Lowell Jensen, U.S. District Judge, ret., sentenced Son to the prison term on July 30, 2010, and on October 14, 2011, ordered Son to pay $60,302,886.59 in restitution to his victims.
Assistant U.S. Attorney Jonathan U. Lee is prosecuting the case with the assistance of Jessica Rodriguez Gonzalez and Kathleen Turner. The prosecution is the result of an investigation by the Securities and Exchange Commission, U.S. Commodities Futures Trading Commission, the FBI and the IRS.
Kern County and Los Angeles County Residents Charged with Possessing and Illegally Importing 372 Pounds of Methamphetamine into the United StatesRead the Press Release
FRESNO, Calif. — A federal grand jury returned an indictment today against Pedro Alegra Jr., 21, of Delano, and Edgardo Rosales-Andrade, 23, of Paramount, charging them with conspiracy to possess with the intent to distribute methamphetamine and possession with the intent to distribute methamphetamine. Rosales-Andrade was also charged with the illegal importation of narcotics, U.S. Attorney McGregor W. Scott announced.
“The investigation of international drug trafficking operations is a top priority for Homeland Security Investigations,” said Tatum King, special agent in charge for Homeland Security Investigations (HSI) San Francisco. “HSI in the Central Valley employs all of its resources to prevent these dangerous criminal networks from threatening our communities.”
According to court documents, on Nov. 15, HSI and Customs and Border Patrol agents tracked a cargo truck carrying 312 pounds of methamphetamine to Delano, in Kern County where Alegra and Rosales-Andrade were waiting. Agents obtained a search warrant for the truck and residence and found an additional 60 pounds of methamphetamine in the residence. The methamphetamine was concealed in furniture in the cargo truck.
This case is the product of an investigation by HSI and the Bakersfield Police Department. Assistant U.S. Attorney Thomas Newman is prosecuting the case.
If convicted, Alegra and Rosales-Andrade face a minimum statutory penalty of 10 years in prison and up to a lifetime prison term and a fine of up to $10 million. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Jury Convicts Gang Members of Drug-Related ShootingRead the Press Release
Tampa, Florida – A federal jury has found Leon Williams (30) and Reginald Jones, Jr. (25), both of Tampa, guilty of conspiring to distribute cocaine, crack cocaine, and marijuana, and discharging a firearm during and in relation to that conspiracy. Each faces a minimum mandatory penalty of 10 years, and up to life, in federal prison. A sentencing date has not yet been set.
According to evidence presented during the two-week trial, Williams and Jones are members of the Bird Gang, a violent street-level drug trafficking organization that has operated in Tampa Park for years and is responsible for multiple homicides and shootings. The Bird Gang principally sold drugs at two locations, the Tampa Park housing complex and a nearby boarding house known as the “Blue House,” which the Bird Gang had essentially taken over. On May 29, 2018, in the middle of the afternoon, Williams and Jones shot at people whom they believed had been communicating with law enforcement about the Bird Gang’s drug sales at the Blue House.
This case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Tampa Police Department, and the Florida Department of Law Enforcement. It is part of a year-long effort to dismantle the Bird Gang, so far resulting in charges against 30 individuals. It is being prosecuted by Assistant United States Attorney Michael M. Gordon.
This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation and was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Jury Convicts Felon of Conspiracy to Commit Interference with Commerce by Robbery, Attempted Interference with Commerce by Robbery, Discharge of A Firearm During A Crime of Violence and Felon in Possession of A FirearmRead the Press Release
RENO, Nev. – After a six-day trial, a federal jury found Eric Romero-Lobato, 39, guilty of conspiracy to commit interference with commerce by robbery, attempted interference with commerce by robbery, discharge of a firearm during a crime of violence and felon in possession of a firearm related to a March 4, 2018 attempted robbery of a restaurant in Sparks, announced United States Attorney Nicholas A. Trutanich for the District of Nevada.
United States District Judge Larry R. Hicks presided over the trial and scheduled a sentencing hearing on March 31, 2020. The maximum penalty is life imprisonment with a mandatory minimum term of imprisonment of 10 years.
According to court documents and evidence presented at trial, Romero-Lobato, armed with a 9mm semi-automatic pistol, attempted to rob a Restaurant in Sparks, Nevada with another man. During the attempted robbery, he fired a shot inside the restaurant. Romero-Lobato was not apprehended until May 14, 2018, when police responded to a report of an armed carjacking in Reno. Romero-Lobato led the police on a high speed chase before wrecking the car he stole. When police apprehended Romero-Lobato, they recovered a 9mm semi-automatic pistol. Through forensics, the firearm was determined to be the same firearm discharged in the robbery attempt. The attempted robbery case was investigated by the Sparks Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Earlier, in July 2019, a separate jury found Romero-Lobato guilty of one count of carjacking, one count of use of a firearm during and in relation to a crime of violence, and one count of felon in possession of a firearm for the May 14, 2018 carjacking incident.
Romero-Lobato is in custody and is awaiting a jury trial on a separate indictment, which charges that Romero-Lobato is not a United States citizen and illegally reentered the United States. The case is being investigated by the Department of Homeland Security. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Assistant United States Attorneys Megan Rachow and Penelope Brady prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN), a nationwide program by the Department of Justice that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Department announced the reinvigoration of PSN. For more information about PSN, visit www.justice.gov/usao-nv.
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Indianapolis woman indicted for illegal purchase of 36 firearms on eight separate occasions from Indianapolis area gun storesRead the Press Release
INDIANAPOLIS – United States Attorney Josh J. Minkler announced today that Iva Patrick, 30, of Indianapolis, was indicted by a grand jury for charges of unlawfully providing false information in connection with a purchase of a firearm.
“If you choose to lie on the federal forms when purchasing a firearm, you must face the consequences,” said Minkler. “Firearms purchased illegally, or for other people, are often purchased for no other reason, but to commit crimes. The Department of Justice and the U.S. Attorney’s Office is committed to reducing gun violence and enforcing federal firearm laws through Project Guardian.”
In July of 2019, investigators from the Indianapolis Crime Gun Intelligence Center (CGIC) initiated an investigation into the suspected firearms trafficking activities of Iva Patrick. Investigators were able to confirm that Patrick purchased at least 36 firearms from federal firearms licensees (FFLs) in the Indianapolis area on at least eight separate occasions between June 15, 2019 and August 9, 2019.
Patrick’s then boyfriend, Jeremy Evans, who is a convicted felon and the father of her three children, instructed Patrick to purchase all of the firearms. Evans was unable to purchase the firearms himself, due to numerous previous felony convictions, and he directed Patrick to purchase the guns for him. Patrick completed the required paperwork for each gun purchase, indicating that the guns were for her, when in fact the guns were being purchased for Evans.
Evans was present in the parking lot of the FFLs during several of the firearms purchases and he specifically told Patrick which firearms to purchase. Once Patrick secured the firearms purchases from the FFLs, the firearms were initially stored at an Indianapolis residence. On August 21, 2019, CGIC investigators executed a search warrant at the Indianapolis residence, where receipts for numerous firearms purchased by Patrick were located and numerous empty firearms boxes, including one firearms box belonging to one of the firearms purchased by Patrick were found. However, no actual firearms purchased by Patrick were recovered during the search at the Indianapolis residence.
Following the search warrant, nine firearms purchased by Patrick were recovered in Chicago, Illinois. Of those nine recovered firearms, it was determined by the National Integrated Ballistic Information Network (NIBIN) that one of the guns purchased by Patrick was used in an unrelated homicide in Chicago where at least four persons were shot and one person died from a gunshot wound. Several firearms purchased by Patrick were recovered in connection with a carjacking, narcotics dealings, other shootings, and in the hands of convicted felons. Investigators are actively working to recover all firearms purchased by Patrick.
Evans was charged by criminal complaint on October 21, 2019, for his participation in a home invasion robbery, which occurred on August 19, 2019. Firearms were stolen from the robbery victim’s residence. Evans was also charged with brandishing a firearm during a crime of violence.
Last week, Attorney General Barr announced Project Guardian, an initiative that focuses on reducing gun violence and enforcing federal firearm laws. This case is a prime example of the Project Guardian initiative at work in the Southern District of Indiana. Law enforcement utilized crime gun intelligence to investigate this case and utilized various investigative resources including the ATF National Tracing Center to run a trace on all recovered guns.
For more information on Project Guardian, see the Attorney General’s memorandum at: https://www.justice.gov/ag/project-guardian-memo-2019/download.
This case was investigated by CGIC which is comprised of investigators from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Indianapolis Metropolitan Police Department (IMPD).
“This indictment should make clear that those who knowingly put firearms in the hands of prohibited persons are also responsible for how those firearms are used,” stated Jonathan McPherson, Special Agent in Charge of ATF’s Columbus Field Division. “ATF will continue to work with our law enforcement partners to stop the flow of guns from legal possession into illegal commerce.”
According to Assistant U.S. Attorney Jeremy A. Morris, who is prosecuting the case for the government, Patrick faces up to 10 years in prison, if convicted.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the office’s firm commitment to partner with federal and local law enforcement agencies to prosecute individuals committing violent crimes involving firearms. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 2.3.
Illegal Alien Who Used Another Person’s Name and Social Security Number Sentenced to PrisonRead the Press Release
A man who used another person’s Social Security number to get a job was sentenced today to more than six months in federal prison.
Ernesto Gonzalez-Casas, age 46, a citizen of Mexico illegally present in the United States and residing in Williamsburg, Iowa, received the prison term after an October 2, 2019, guilty plea to two counts of misuse of a social security number.
At the guilty plea, Gonzalez-Casas admitted that on July 12, 2017, and September 5, 2017, he used someone else’s name and social security number on state and federal tax forms when completing employment forms in Williamsburg, Iowa.
On December 7, 2018, Gonzalez-Casas came to the attention of law enforcement when he tried to transfer title to a vehicle under an alias name at the Iowa County Treasurer’s Office. The alias name was in the Iowa Department of Transportation records system as possibly being a stolen identity as reported by the true victim. Gonzalez-Casas told law enforcement officers that he was a United States citizen born in Texas and falsely claimed he had previously filed a report in Iowa County of the identity theft of his alias name. Gonzalez-Casas’ fingerprints showed he was not the person he claimed to be. Instead, immigration records showed he was a Mexican citizen illegally present in the United States and not a United States citizen as he claimed. On June 17, 2019, Gonzalez-Casas was convicted in the Iowa District Court for Iowa County of making a false report to law enforcement and sentenced to 180 days’ imprisonment.
Gonzalez-Casas was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Gonzalez-Casas was sentenced to six months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Gonzalez-Casas is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations; the Iowa Department of Transportation, and the Iowa County Sheriff’s Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-67.
Follow us on Twitter @USAO_NDIA.
Husband and Wife Sentenced in Child Sex Abuse Case: Husband Receives 40 Years in Prison; Wife Receives 10 YearsRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announces today that Chief United States District Judge Kristi K. DuBose sentenced defendant Mack Doak, 51, to 40 years imprisonment and his wife, co-defendant Jaycee Doak, 42, to 10 years imprisonment after a federal jury found them guilty at trial in May 2019 on all charges in a child exploitation case spanning multiple jurisdictions. The defendants faced up to life in prison for their crimes. As part of their sentences, the judge ordered that the defendants receive mental health and sex offender treatment as directed by the U.S. Probation Office, register as sex offenders under the Sex Offender Registration and Notification Act, and pay restitution totaling $225,000. The judge further ordered Mack Doak to pay a $30,900 mandatory special assessment and to be on supervised release for 15 years after finishing his prison term. The judge also ordered Jaycee Doak to pay a $25,600 mandatory special assessment and to be on supervised release for 5 years after finishing her prison term.
After the sentencing hearings, United States Attorney Moore said, “The investigators and prosecutors did their job. A jury of the defendants’ peers found them guilty beyond a reasonable doubt. The Court has imposed substantial sentences of imprisonment. Our criminal justice system has worked as best we could expect. Still, we take little comfort in any of this because the damage to young lives here is so severe and so undeserved. We cannot make these children whole again. Something precious has been taken from them that we are powerless to give back. What we can do is stand together against the horror of child sex abuse and always do our best to protect children from evil whenever possible. This case is a reminder that we must always be vigilant when the safety of our children is at risk.”
Federal Bureau of Investigation (FBI) Special Agent in Charge James Jewell stated, “Crimes against children are always a priority but when the men and women of the FBI can assist our state and local partners bring a sense of justice to these young victims then this prosecution is a success. The sentences handed down today from the courts will hopefully deter a predator from hurting a child in the future.”
On August 31, 2018, a federal grand jury for the Southern District of Alabama indicted the defendants on one count of violating 18 U.S.C. § 2423(a), a statute that criminalizes the transportation of minors across state lines with intent to engage in criminal sexual activity. The grand jury returned a 9-count superseding indictment on March 29, 2019, charging the defendants with six counts of violating 18 U.S.C. § 2423(a) and Mack Doak with three counts of violating 18 U.S.C. § 2241(c), a statute that criminalizes aggravated sexual abuse by prohibiting the crossing of a state line with intent to engage in a sexual act with a child under the age of twelve.
The jury heard three days of evidence during the trial, which began on May 20, 2019. According to the evidence introduced at trial, three child victims were abused for years by the defendants. The victims testified at trial that Mack Doak had sexually abused them in Texas, Florida, and Alabama and that they had disclosed the sexual abuse to Jaycee Doak, who was herself physically and verbally abusive and had tried to cover-up the sexual abuse.
In 2012, Mack Doak began sexually abusing Victims 1-3 in Rosharon, Texas. Victim 1 testified that she told Jaycee Doak when the abuse started in Texas that Mack Doak had raped her. Jaycee Doak insisted that Victim 1 not tell anyone because disclosure of the abuse would be ruinous. One witness testified that Jaycee Doak told her about Victim 1’s rape allegation and that Jaycee Doak told the witness not to tell anyone. The witness testified that she urged Jaycee Doak to report the abuse and take Victim 1 to a doctor but that Jaycee Doak did neither. Another witness testified that she herself was raped by Mack Doak years earlier and that she had disclosed the abuse to the defendants in 2012. Another witness testified that around March 2013, after allegations of Mack Doak’s sexual abuse had begun to surface, Mack Doak had a pistol in his hand at his home and had threatened suicide, telling the witness, “I did something really bad and I’m not going to jail for it.”
In early 2014, the defendants moved from Rosharon to Butler, Alabama and then in August 2014 relocated to Pinellas Park, Florida, where Mack Doak continued to sexually abuse the victims. The defendants moved in November 2016 to Thomasville, Alabama, where the abuse persisted. The jury heard testimony that Mack Doak would periodically call a victim into his bedroom, close the door, and play loud music, and that the victim would appear upset after exiting the room. One witness testified that he saw Mack Doak sexually abusing Victim 2 one morning at the defendants’ home in Thomasville, and that Mack Doak saw him and told him to return to bed and not discuss what he had seen. After less than a year in Thomasville, the defendants moved to Monroeville, Alabama, where the sexual abuse continued and Jaycee Doak’s physical and verbal abuse escalated.
In early February 2018, the Monroeville Police Department received information about the sexual abuse. On February 4, a police investigator and a Monroe County Department of Human Resources caseworker visited the victims, who disclosed the abuse and indicated that they were unsafe in the defendants’ care. The next day, the defendants were arrested on state charges for rape, incest, and sexual abuse. On February 8, the victims were forensically interviewed at a child advocacy center in Brewton, Alabama and elaborated upon the abuse. Victim 1 told her interviewer that she had been sexually abused alongside a mat in the basement area of the defendants’ home in Monroeville. On February 9, the police executed a search warrant at the defendants’ home and seized physical evidence, including the mat. The police later took buccal samples from Mack Doak and the victims and sent the samples and the mat to an FBI laboratory in Quantico, Virginia for testing. An FBI forensic examiner testified at trial that the likelihood ratios were very high that the mat contained Mack Doak’s semen and Victim 1’s DNA. Moreover, a pediatrician who had physically examined the victims testified that they showed signs of having been sexually abused.
The victims wrote to the Court before today’s sentencing hearings. They described how the defendants’ abuse had irreparably altered their lives.
The FBI, the Monroeville Police Department, and the Alabama Law Enforcement Agency investigated the case. Assistant United States Attorneys Sinan Kalayoglu, Kacey Chappelear, Maria Murphy, and Scott Gray prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Guardians Project continues fighting federal program fraud in MontanaRead the Press Release
BILLINGS—The Guardians Project anti-corruption task force today welcomed top officials from the U.S. Department of Interior and U.S. Department of Health and Human Services Offices of Inspector General to a meeting about Montana’s efforts to fight federal program fraud, U.S. Attorney Kurt Alme said.
DOI Inspector General Mark Lee Greenblatt and HHS Assistant Inspector General of Investigations Christian J. Schrank joined U.S. Attorney Alme and members of the Guardians task force to review the program and to recognize the contribution of tribal law enforcement. The Guardians Project investigates and prosecutes persons attempting to use federal funds for private gain.
Since 2013, the Guardians Project has resulted in more than 120 felony convictions, with 85 percent of those convicted receiving some term of incarceration, $3.6 million in fines, $16.5 million in restitution, $311,000 in forfeitures and $1 million in civil judgments. Prosecuted crimes include conspiracy, bribery, fraud, embezzlement, extortion, obstruction of justice, money laundering, blackmail and tax evasion.
“The Guardians Project is committed to making sure federal funds are used for the benefit of the intended recipients. In addition to prosecuting misuse of federal funds, task force members have provided training to Montana’s tribal governments and communities on how to properly administer grant funds, how to report misuse and how the reporters of misuse can be protected under whistleblower statutes,” U.S. Attorney Alme said.
“I want to thank our dedicated task force members and tribal law enforcement and tribal officials for working together to root out theft and to make sure the money is used as intended to help fund important programs, like Head Start,” U.S. Attorney Alme said. “In particular, I would like to recognize Ken Trottier, supervisory criminal inspector for the Fort Peck Tribes, for his exemplary work.”
The Guardians task force presented Ken Trottier with its first ever Guardians Shield Award in recognition of his work and collaboration with the task force.
"The Department of the Interior Office of Inspector General has a long-standing commitment to the Guardians Task Force. We look forward to continuing our joint efforts with the task force partners to identify fraud, hold wrongdoers accountable, and ensure Native American communities receive the intended funds and services," said Mark Lee Greenblatt, Inspector General for the Department of Interior Office of the Inspector General.
“Federal health and human services programs are vital to communities across Montana. Therefore, it is imperative program funds are used for their intended Indian Country purposes,” said Christian J. Schrank, Assistant Inspector General for Investigations at the Office of Inspector General of the U.S. Department of Health and Human Services. “We will continue working with our federal and tribal law enforcement partners in the Guardians Project to address fraud, theft, and misuse of funds.”
This past year, some of the Guardians Project investigations included the following cases:
- An overtime pay scheme in the Blackfeet Tribe’s Head Start program led to the convictions of six persons, including managers and the former tribal chairman. The theft of $174,000 hurt children enrolled in Head Start by prohibiting book purchases, barring the ability to obtain teaching materials and cutting food nutrition programs.
- The former chairwoman and the former treasurer of the Montana Native Women’s Coalition Board were charged in an indictment accusing them of stealing federal grant funds to make unapproved trips to Las Vegas and to receive other unauthorized benefits. The indictment is merely an accusation and the defendants are presumed innocent until proven guilty. The Lame Deer-based coalition helps Native American victims of domestic and sexual violence.
- An ex-law enforcement officer for the Fort Peck Tribes was convicted and sentenced to six months in prison for stealing $40,000 from a tribal program intended to help youth and for failing to pay taxes. The former officer proposed creating a Family Justice Center to help troubled youth but spent the money on personal items and services. The former officer also was ordered to pay $40,000 restitution to the tribe and $18,050 to the IRS.
- The former president of the Northern Cheyenne Tribe pleaded guilty to wire fraud and false claims conspiracy in a travel scheme in which he admitted receiving $20,000 in improper reimbursements.
The Guardians Project, led by the U.S. Attorney’s Office, works with the Office of Inspector General from DOI, HHS, the Department of Justice, the Department of Agriculture, Department of Education, the FBI, IRS’s Criminal Investigation Division and the Environmental Protection Agency.
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Georgia Man Sentenced for Role in Drug ConspiracyRead the Press Release
Abingdon, VIRGINIA – A Georgia man, who was part of a conspiracy that trafficked methamphetamine, heroin, oxycodone, cocaine, and other drugs from Georgia into Southwest Virginia, was sentenced last week to 120 months in federal prison, United States Attorney Thomas T. Cullen and Virginia Attorney General Mark Herring announced today.
James Lee Cleghorne, 39, previously pleaded guilty to one count of conspiracy to distribute methamphetamine, heroin, oxycodone, cocaine, and alprazolam. Cleghorne was charged along with 10 other individuals as part of a broader trafficking conspiracy. Two defendants, Roy Lee Dykes and Leila Hector Dykes, went to trial in September 2019 and are set for sentencing on December 19, 2019.
“Methamphetamine trafficking and its effects have taken an enormous toll on far Southwest Virginia,” U.S. Attorney Cullen stated today. “We will continue to work with our federal, state, and local partners to identify and dismantle the drug-trafficking organizations responsible for bringing this terrible drug into our region, and hold their members accountable under federal law.”
“Our partnerships with local, state, and federal law enforcement are working to help keep the Commonwealth safer from the effects of methamphetamine,” said Virginia Attorney General Mark Herring today. “We remain committed to aggressively prosecuting those who transport this dangerous drug into the Commonwealth.”
According to court documents, these defendants conspired to traffic a variety of controlled substances, including methamphetamine, heroin, cocaine, morphine, oxycodone, and alprazolam, from sources in Watkinsville, Ga., into Southwest Virginia for redistribution. The organization operated primarily in Lee and Wise counties from November 2016 through March 1, 2018. Arrests on March 1, 2018, resulted in the seizure of approximately 11 ounces of crystal ice methamphetamine, in addition to heroin, cocaine, morphine, and oxycodone. Currency totaling approximately $14,000 was also seized.
The investigation stemmed from another drug trafficking conspiracy arising out of Lee County, Virginia, involving seven defendants, all of whom have been convicted and sentenced. In total, these investigations have led to the successful prosecution of 22 defendants and removed a conservative estimate of 3.5 pounds of crystal ice methamphetamine from the supply chain in Southwest Virginia.
The investigation of this case was conducted by the Southwest Virginia Drug Task Force, Virginia State Police, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Numerous agencies assisted with search warrant executions and arrests on March 1, 2018, to include the Drug Enforcement Administration, Big Stone Gap Police Department, Lee, Wise, and Scott County Sheriff’s Departments, City of Norton Police Department, and the U.S. Marshals. Special Assistant United States Attorney M. Suzanne Kerney-Quillen, a Virginia Assistant Attorney General assigned to the Attorney General’s Major Crimes and Emerging Threats Section, and Assistant United States Attorney Kari Munro are prosecuting this case for the United States.
Gardena Man Convicted of Attempting to Smuggle Protected Coral Species from the United States to MexicoRead the Press Release
LOS ANGELES – A Gardena man was found guilty by a jury today of federal criminal charges that he attempted to smuggle live corals that are protected by an international treaty known as the Convention on the International Trade of Endangered Species of Wild Fauna and Flora (CITES).
Jose Torres, 44, was found guilty of one count of attempting to illegally export wildlife, and two counts of making and submitting a false record for wildlife intended to be exported.
According to the evidence presented at his three-day trial, in January 2013, a Mexican company named Gabriela Herlinda Medina asked to purchase fish and coral from Torres, who identified himself as the owner of the company Orca International. Medina decided that it did not want to wait for the CITES permits and requested that the coral be shipped immediately. On January 31, 2013, Torres attempted to ship the coral without the CITES permit. Reef-building coral are protected under CITES because of their importance to ocean ecosystems and their vulnerability.
In furtherance of his scheme, Torres visited the U.S. Fish and Wildlife Service district office in Torrance on January 31, 2013. During that visit, Torres made a false declaration that he was shipping 16 cartons of fish. In reality, Torres personally packed 40 boxes for shipment and he knew they contained protected coral.
That night, Torres went to Los Angeles International Airport and provided to AeroMexico the false paperwork and 40 cartons to be transported to Mexico. Fish and Wildlife Service officials inspected the cartons and seized 474 undeclared items, including many CITES-protected coral.
United States District Judge Otis D. Wright II has scheduled a February 10 sentencing hearing, at which time Torres will face a statutory maximum sentence of 20 years in federal prison.
United States Fish and Wildlife Service investigated this case, which was charged as part of Operation Jungle Book, a law enforcement initiative that targeted wildlife smuggling.
This matter is being prosecuted by Assistant United States Attorneys Erik M. Silber of the Environmental and Community Safety Crimes Section and David R. Friedman of the General Crimes Section.
Gang Member Charged with 2009 MurderRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and James O’Neill, the Commissioner of the New York City Police Department (“NYPD”), today announced the unsealing of an indictment charging JOHNNY NUNEZ GARCIA, a/k/a “Superior,” with the June 5, 2009, gang-related murder of Jonathan Ruiz, 17, in the Bronx, New York. NUNEZ GARCIA is currently serving a separate federal sentence. He was transferred yesterday to the Southern District of New York and presented before Magistrate Judge Sarah Netburn. The case is assigned to United States District Judge Andrew L. Carter Jr.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged in the indictment, more than ten years ago Nunez Garcia shot and killed Jonathan Ruiz in connection with Nunez Garcia’s membership in the Dominicans Don’t Play gang. Thanks to the persistence of our partners at the NYPD, Nunez Garcia will now face justice for his alleged role in this heinous crime.”
Police Commissioner James O’Neill said: “This indictment is the result of the close partnership that exists between the NYPD and our law-enforcement partners. I commend the members of the NYPD Detective Bureau and the U.S. Attorney’s Office for the Southern District of New York whose hard work resulted in this indictment.”
According to the allegations in the Indictment unsealed today in Manhattan federal court[1]:
NUNEZ GARCIA was a member of the Dominicans Don’t Play (or “DDP”) gang, a criminal enterprise, members of which engaged in criminal acts involving murder, robbery, and narcotics dealing throughout the Bronx. They committed these crimes to enrich themselves and to preserve and promote their widespread criminal activity. As a member of the gang, on June 5, 2009, NUNEZ GARCIA shot and killed Jonathan Ruiz near East 165th Street and Tiffany Street.
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NUNEZ GARCIA, 28, of the Bronx, is charged with one count of murder in aid of racketeering and aiding and abetting murder in aid of racketeering. He faces a mandatory minimum sentence of life in prison. The potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding work of the NYPD.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Frank Balsamello and Adam Hobson are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Fugitive for Nearly 20 Years Returned to Syracuse to Serve Federal Prison SentenceRead the Press Release
SYRACUSE, NEW YORK – Julio Recio, age 51, a fugitive from justice and a citizen of the Dominican Republic, was extradited from Spain and transported in the custody of the United States Marshals Service to Syracuse, on November 21, 2019, to begin serving a 30‑month prison sentence imposed in 1999. The extradition came about after Recio pled guilty in 1999 to conspiracy to possess with intent to distribute cocaine, and then became a fugitive, announced United States Attorney Grant C. Jaquith and United States Marshal David McNulty.
In 1999, Recio and a co‑conspirator arranged for the transport of cocaine from New York City to Binghamton with the intent to distribute it there. He was arrested in Binghamton and charged by federal indictment. After Recio pled guilty to a drug conspiracy charge, Senior United States District Judge Thomas J. McAvoy sentenced him to a 30‑month term of imprisonment and ordered him to self-report to the United States Bureau of Prisons to serve his term of incarceration. Recio never surrendered to prison and instead fled the United States. He evaded law enforcement until the United States Marshals Service recently identified him traveling between the Dominican Republic and Spain under an assumed name. With the cooperation of the International Criminal Police Organization (INTERPOL) and local law enforcement authorities, Recio was apprehended in Spain in January 2019. Following extradition proceedings in Spain, Deputy United States Marshals transported Recio to Syracuse, from where he will be transferred to a federal prison.
United States Attorney Grant C. Jaquith said, “Mr. Recio ran from the law, but he could not hide forever. Thanks to the exceptional work of the United States Marshals Service and our law enforcement partners overseas, Mr. Recio’s overdue debt to society will now be paid as he finally serves his sentence. His case should highlight for fugitives everywhere that the long arm of the law is enduring, and we will enforce court orders and warrants around the globe, if necessary.”
United States Marshal David McNulty said, “Time and distance did not stop United States Marshals Service Investigators from catching this fugitive. I am very proud of them and their fine work on this case and thank all those law enforcement agencies from around the world who assisted us in returning Mr. Julio Recio to justice. This case is a great example of international cooperation and the long arm of the law at work in Syracuse New York.”
The drug case that led to the defendant’s 1999 conviction was prosecuted by Assistant United States Attorney Thomas P. Walsh (retired). The investigation that led to the international extradition of Julio Recio was conducted by the United States Marshals Service (Syracuse) and prosecuted by Assistant United States Attorney Carina H. Schoenberger.
Four Members of “Head Shot Mafia” Drug Crew Indicted for Fentanyl Distribution and Gun PossessionRead the Press Release
BOSTON – A federal grand jury indicted four members of a violent Brockton drug crew today on charges of conspiring to distribute fentanyl and illegal firearm possession.
Placido Pereira, 33; Natalio Miranda, 28; and Djoy Defrancesco, 23, all of Brockton, and Jason Miranda, 24, of Taunton, were charged in the indictment with conspiracy to distribute 40 grams or more of fentanyl and six counts of distribution of fentanyl. The indictment charges Pereira and Jason Miranda with possession of 40 grams or more of fentanyl. The indictment charges Periera with possessing with intent to distribute 40 grams or more of fentanyl, being a felon in possession of a firearm and ammunition and possessing a firearm during a drug trafficking offense. Finally, the indictment charges Jason Miranda with possessing with intent to distribute fentanyl and being a felon in possession of a firearm. The defendants are currently detained in federal custody.
As alleged in charging documents, law enforcement began investigating a violent Brockton-area drug crew that distributed large quantities of fentanyl throughout southeastern Massachusetts. The drug crew, which refers to itself as “HSM,” for “Head Shot Mafia,” ran a fentanyl delivery service that encompassed all of Brockton as well as neighboring cities. Specifically, it is alleged that drug users/customers placed orders for fentanyl by contacting a cellphone maintained and shared by HSM crew members, and that HSM members worked together to deliver the fentanyl order. Beginning in September 2019, agents succeeded in introducing an undercover law enforcement officer to HSM, who made six purchases of fentanyl from members of the crew. On six occasions in September 2019, the undercover officer purchased fentanyl from Pereira, Natalio Miranda, Jason Miranda and Defrancesco.
A search of Pereria’s Brockton home resulted in the seizure of approximately 70 grams of fentanyl, a loaded firearm, over $5,000 in cash and the cell phone used by HSM to distribute fentanyl. A search of Jason Miranda’s home in Taunton resulted in the seizure of approximately 30 grams of fentanyl, a firearm and $28,000 in cash.
According to court documents, in 2017, Pereira was convicted of unlawful possession of a firearm and possession with intent to distribute marijuana and was sentenced to three years in prison. In 2010, Pereira was arrested on drug trafficking charges at Logan Airport as he returned to the U.S. from Cape Verde and was sentenced to 30 months in prison and three years of supervised release. Natalio Miranda sold fentanyl to an undercover officer while on probation for a state drug trafficking offense. Defrancesco sold fentanyl to an undercover officer while on pre-trial release from a Plymouth Superior Court indictment charging him with trafficking in fentanyl and possession of a high capacity feeding device, among other offenses.
The charge of conspiracy to distribute 40 grams or more fentanyl provides for a mandatory minimum sentence of five years and up to 40 years in prison, four years of supervised release and a fine of up to $5 million. The charge of conspiracy to distribute fentanyl provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $1 million. Possession of a firearm during a drug trafficking crime provides for a five year mandatory minimum sentence and up to life in prison, five years of supervised release and a fine of $250,000. The charge of felon in possession of a firearm provides for a sentence of up to 10 years in prison, three years of supervised release and a $250,000 fine. 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; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Brockton Police Chief John Crowley; John Gibbons, U.S. Marshal for the District of Massachusetts; and Plymouth County District Attorney Timothy J. Cruz made the announcement today. Assistance was provided by the East Bridgewater, West Bridgewater, Whitman and Bridgewater State University Police Departments as well as the Plymouth County Sheriff’s Office. Assistant U.S. Attorney Christopher Pohl of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former ‘American Idol’ Contestant Sentenced to PrisonRead the Press Release
NORFOLK, Va. – A former ‘American Idol’ contestant was sentenced today to 45 months in prison for possessing with intent to distribute 400 grams or more of fentanyl.
According to court documents, Antonella Maria Barba, 32, of Point Pleasant, New Jersey, was parked in downtown Norfolk at approximately 11:05 p.m. in October 2018, when she was approached by law enforcement. A dog handler screened Barba’s rental vehicle with a drug dog, which alerted on the vehicle. The canine officer searched Barba’s rental vehicle and discovered a closed shoebox in plain view on the front passenger floorboard. The officer opened the shoebox and discovered a plastic bag containing a large quantity of a white, rock-like substance. Barba subsequently admitted she had landed at Washington-Dulles at around 4:00 p.m. on a flight from Los Angeles, and that she rented a car there and drove to Norfolk. The substance seized from Barba’s rental car was submitted to the U.S. Customs and Border Protection Savannah Laboratory for forensic analysis, where a forensic scientist determined the substance to be fentanyl, a Schedule II controlled substance, with a total weight of 830.9 grams.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Jim Stitzel, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen. Assistant U.S. Attorney Darryl J. Mitchell prosecuted the case.
The Norfolk Police Department, the Virginia Beach Police Department, as well as the Chesapeake Sheriff’s Office and the Portsmouth Sheriff’s Office had active roles in this investigation.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-158-2.
Former Villanova University Campus Ministry Official Sentenced to 6 ½ Years in Prison for Child Pornography OffenseRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced today that Timothy O’Connell, 52, of Drexel Hill, PA was sentenced to 78 months’ incarceration, 10 years’ supervised release, a $5,000 fine, and a $5,000 special assessment by United States District Judge Gerald J. Pappert after pleading guilty to one count of receipt of child pornography in June 2019.
In February 2018, the defendant received images depicting the sexual abuse and exploitation of pre-pubescent children. The victims depicted in the child pornography included a one-year-old child who had previously been identified by the Federal Bureau of Investigation in another child abuse investigation. At the time he committed the crime, the defendant was employed as Associate Director of Campus Ministry at Villanova University.
“Child pornography offenses are always abhorrent,” said U.S. Attorney McSwain. “But this case is particularly disturbing due to the defendant’s history as a spiritual leader at one of our region’s most respected institutions of higher education. To Villanova’s credit, they cooperated with our investigation and helped us to resolve this matter. Most importantly, we stand ready with our federal and local partners to identify and prosecute anyone who would prey upon minor children -- no matter their position in the community.”
“Those who seek out child pornography help drive a demand for such depraved images, leading to more young children being sexually exploited,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “The men and women of the FBI who investigate these disturbing cases are determined to bring to justice those involved with child pornography and protect innocent children from sexual victimization.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Federal Bureau of Investigation and the Villanova University Department of Public Safety, and is being prosecuted by Assistant United States Attorney Priya T. De Souza.
Former South Bay Executive Charged with Insider TradingRead the Press Release
LOS ANGELES – A former executive at Hawthorne-based semiconductor company OSI Systems Inc. was indicted today on charges of using inside information to “short” his employer’s stock and, later, to illegally purchase shares of a company OSI confidentially had targeted for acquisition, in a scheme that allegedly netted a total of more than $567,000 in illicit gains.
Mark A. Loman, 58, of Hermosa Beach, was named in a federal grand jury indictment that charges him with five counts of securities fraud and five counts of insider trading. Loman is scheduled to be arraigned on the indictment on December 10 in United States District Court in downtown Los Angeles.
Loman was OSI’s vice president of finance and corporate controller from 2006 until 2017. In these roles, Loman had advance knowledge of OSI’s revenue and earnings and, as controller, was responsible for compiling and internally reporting the company’s confidential financial results.
The indictment alleges that, in October 2015, Loman received confidential information that OSI and its subsidiaries were financially underperforming and would fall far short of their earnings and revenue forecast for its second quarter of fiscal year 2016. Acting on this information in November and December of 2015, Loman shorted 3,000 shares of OSI stock with the intent of profiting when OSI’s share price declined, according to the indictment. During this time, Loman also allegedly purchased a series of option contracts with the intention of profiting when OSI’s stock price fell.
On January 27, 2016, OSI announced its disappointing second-quarter earnings, and also lowered its sales and earnings guidance for the remainder of its fiscal year. On the day of this announcement, OSI shares plunged 35 percent in value from their previous closing day price. As a result, Loman allegedly gained $446,436 in illegal profits from this scheme.
The indictment further alleges that in February and March of 2016, Loman misused nonpublic information by purchasing stock of American Science & Engineering Inc., a Billerica, Massachusetts-based manufacturer of X-ray equipment that OSI had targeted for acquisition. Once OSI publicly announced in June 2016 its agreement to acquire ASEI, Loman immediately sold his ASEI shares and made approximately $120,900 in illegal gains, the indictment alleges. In September 2016, OSI formally acquired ASEI for $269 million.
In total, Loman made $567,335 in illicit gains through this scheme, according to the indictment.
In July 2019, the Securities and Exchange Commission filed a lawsuit against Loman, charging him with insider trading.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Each charge of securities fraud carries a statutory maximum sentence of 25 years in federal prison. The statutory maximum sentence for each count of insider trading is 20 years in federal prison.
The FBI investigated this matter.
This case is being prosecuted by Assistant United States Attorneys Ashwin Janakiram and Alexander C.K. Wyman of the Major Frauds Section.
Former Social Security Administration Employee Pleads Guilty to Wire Fraud and TheftRead the Press Release
BIRMINGHAM, Ala. – A Tuscaloosa County woman who was employed by the Social Security Administration pled guilty today in federal court, announced U.S. Attorney Jay E. Town, Social Security Administration Office of Inspector General, Atlanta Division Special Agent in Charge Rodregas Owens, and United States Secret Service Special Agent in Charge Patrick Davis.
LATANYA HATTER, 46, of Tuscaloosa, Alabama, entered her guilty plea before United States District Judge L. Scott Coogler to charges of wire fraud, theft of government funds, and identity theft. The information was filed in September.
According to Hatter’s plea agreement, Hatter was a Social Security Administration (“SSA”) benefits authorizer in the Birmingham, Alabama field office. From December 5, 2017, through January 31, 2018, Hatter exceeded her access to SSA databases and made necessary inputs to create fraudulent underpayments for deceased SSA beneficiaries. Hatter then directed the funds to bank accounts to which she had access or to bank accounts belonging to relatives and friends. Hatter created 25 fraudulent underpayments to deceased SSA beneficiaries that totaled $148,428.
“This defendant blatantly abused her position of trust as a Social Security Administration employee, using her access to steal the identities of the deceased and to pocket money for her own personal greed and use,” Town said. “This outright theft and misuse of funds will not be tolerated and those who continue to operate these type schemes will be prosecuted in federal court.”
“Ms. Hatter’s position with the Social Security Administration (SSA) afforded her the opportunity to put in place a scheme that defrauded not only the United States Government; and the SSA, but also those deceased victims who were unable to speak for themselves,” Davis said. “Ms. Hatter violated the trust and confidence that had been bestowed upon her.”
“This plea is the result of thorough investigative work indicating this individual abused the public trust in her position with Social Security,” said Owens. “Employee fraud is rare, but Social Security OIG is committed to working with the agency to identify those instances and take decisive action. We appreciate the U.S. Attorney’s support in this important endeavor.”
The maximum penalty for wire fraud is 20 years in prison and a maximum fine of $250,000. The maximum penalty for theft of government funds is 10 years in prison and a maximum fine of $250,000. The maximum penalty for identity theft is 15 years in prison and a maximum fine of $250,000.
The Social Security Administration Office of Inspector General and United States Secret Service investigated the case, which Assistant United States Attorney Catherine Crosby Long is prosecuting.
Former Private Prisoner Transport Officer Sentenced to Prison for Sexually Assaulting an Individual During a TransportRead the Press Release
James Baldinger, 51, a former private prisoner transport officer with the Prisoner Transportation Services of America LLC (PTS), was sentenced today in federal court in Albuquerque, New Mexico, to two years in prison for sexually assaulting a female during transport.
According to court documents, Baldinger worked as a transport officer for PTS, a private prisoner extradition company that contracts with government agencies to transport individuals arrested on out-state-warrants to the extraditing jurisdiction. On or about July 11-12, 2017, during a transport from Kentucky to Bernalillo County, New Mexico, Baldinger sexually assaulted a female who was in his custody. Specifically, he touched her while she was restrained and without her consent. As a result of Baldinger’s conduct, the victim suffered pain and injury. Baldinger admitted that he knew what he was doing was wrong and against the law, yet he did so anyway.
“The Department of Justice will hold accountable anyone who uses their law enforcement authority to sexually assault individuals in their custody,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Civil Rights Division will continue to vigorously prosecute these cases and secure justice for victims of these despicable crimes.”
“Every individual has a fundamental right not be sexually assaulted. By taking advantage of his power over the victim, and sexually abusing her, this defendant committed a grievous violation of the public trust,” said U.S. Attorney John C. Anderson for the District of New Mexico. “Today’s sentence should send a clear message that the United States Attorney’s Office for the District of New Mexico will work tirelessly to bring to justice those who abuse their authority to perpetrate such appalling crimes.”
This case was investigated by the Albuquerque Division of the FBI and the New Mexico State Police. It was prosecuted by Special Litigation Counsel Fara Gold and Trial Attorney Maura White of the Civil Rights Division of the U.S. Department of Justice, as well as Assistant United States Attorney Shaheen Torgoley, formerly of the District of New Mexico and Assistant United States Attorney Kimberly Brawley, of the District of New Mexico.
Former Partner of Locke Lord LLP Convicted in Manhattan Federal Court of Conspiracy to Commit Money Laundering and Bank Fraud in Connection with Scheme to Launder $400 Million of OneCoin Fraud ProceedsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Cyrus R. Vance Jr., the District Attorney for New York County, announced the conviction today of MARK S. SCOTT, following a three-week trial before the Honorable Edgardo Ramos. SCOTT, a former equity partner at the law firm Locke Lord LLP, laundered approximately $400 million in proceeds of a massive international fraud scheme known as “OneCoin” through fraudulent investment funds that SCOTT set up and operated for that purpose. SCOTT was paid more than $50 million for his money laundering services, which he used to buy luxury cars, a yacht, and several seaside homes.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Mark S. Scott, an equity partner at a prominent international law firm, used his specialized knowledge as an experienced corporate lawyer to set up fake investment funds, which he used to launder hundreds of millions of dollars of fraud proceeds. He lined his pockets with over $50 million of the money stolen from victims of the OneCoin scheme. Scott, who boasted of earning ‘50 by 50’ now faces 50 years in prison for his crimes.”
As reflected in the Indictment, documents previously filed in the case, and evidence introduced at trial:
“OneCoin” is a massive pyramid fraud scheme. OneCoin Ltd. was co-founded in or about 2014 by Ruja Ignatova, and is based in Sofia, Bulgaria. SCOTT was introduced to Ignatova in late 2015, and began laundering OneCoin fraud proceeds in 2016. Ignatova served as OneCoin’s top leader until her disappearance from public view, in or about October 2017.
OneCoin Ltd. operates as a multi-level marketing network through which members receive commissions for recruiting others to purchase cryptocurrency packages. OneCoin Ltd. has claimed to have over three million members worldwide, including victims living in the Southern District of New York. Records obtained in the course of the investigation show that, between the fourth quarter of 2014 and the third quarter of 2016 alone, OneCoin Ltd. generated €3.353 billion in sales revenue and earned “profits” of €2.232 billion. OneCoin continues to operate to this day.
Among a number of other representations, OneCoin Ltd. has claimed that the OneCoin cryptocurrency is “mined” using mining servers maintained and operated by the company, and that the value of OneCoin is based on market supply and demand. The purported value of a OneCoin steadily grew from €0.50 to approximately €29.95 per coin, as of in or about January 2019. In fact, the value of OneCoin is determined internally and not based on market supply and demand, and OneCoins are not mined using computer resources. Moreover, the investigation has revealed that Ignatova and her co-founder conceived of and built the OneCoin business fully intending to use it to defraud investors.
SCOTT – who was employed between June 2015 and September 2016 as an equity partner at Locke Lord LLP, a prominent international law firm – was first introduced to Ignatova in September 2015. Beginning in 2016, SCOTT formed a series of fake private equity investment funds in the British Virgin Islands known as the “Fenero Funds.” SCOTT then disguised incoming transfers of approximately $400 million into the Fenero Funds as investments from “wealthy European families,” when in fact the money represented proceeds of the OneCoin fraud scheme. SCOTT layered the money through various Fenero Fund bank accounts in the Cayman Islands and the Republic of Ireland. SCOTT subsequently transferred the funds back to Ignatova and other OneCoin associated entities, this time disguising the transfers as outbound investments from the Fenero Funds. As part of the scheme, SCOTT and his co-conspirators lied to banks and other financial institutions all over the world, including to banks in the United States, to cause those institutions to make transfers of OneCoin proceeds and evade anti-money laundering procedures.
SCOTT, who boasted about earning “50 by 50,” was paid more than $50 million for his money laundering services. He used that money to purchase, among other things, a collection of luxury watches worth hundreds of thousands of dollars, a Ferrari and several Porsches, a 57-foot Sunseeker yacht, and three multimillion-dollar seaside homes in Cape Cod, Massachusetts.
SCOTT was arrested near one of his seaside homes in Barnstable, Massachusetts, on September 5, 2018.
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SCOTT, 51, of Coral Gables, Florida, was convicted of one count of conspiracy to commit money laundering, which carries a maximum potential sentence of 20 years in prison, and one count of conspiracy to commit bank fraud, which carries a maximum potential sentence of 30 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as the sentencing of the defendant will be determined by the judge. Sentencing before Judge Ramos is scheduled for February 21, 2020.
Mr. Berman and Mr. Vance praised the outstanding investigative work of IRS-CI and the FBI, which jointly conducted this investigation with the Special Agents from the U.S. Attorney’s Office.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Christopher J. DiMase and Nicholas Folly, and Special Assistant United States Attorney Julieta V. Lozano of the New York County District Attorney’s Office, are in charge of the prosecution.
Former Baltimore Mayor Catherine Pugh Pleads Guilty to Federal Conspiracy and Tax ChargesRead the Press Release
Baltimore, Maryland – Catherine Elizabeth Pugh, age 69, of Baltimore, Maryland, pleaded guilty today to the federal charges of conspiracy to commit wire fraud, conspiracy to defraud the United States, and two counts of tax evasion. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for February 27, 2020, at 10:00 a.m.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“Catherine Pugh betrayed the public trust for her personal gain,” said United States Attorney Robert K. Hur. “Baltimore City faces many pressing issues, and we need dedication and integrity from our leaders—not corruption—in order to solve them. Law enforcement will continue to be vigilant for evidence of fraud and corruption, to ensure that our citizens receive the honesty and professionalism they deserve from government officials.”
“The people of Maryland expect elected officials to make decisions based on the public's best interests, not to abuse their office for personal gain,” said Special Agent in Charge Jennifer Boone of the FBI's Baltimore Division. “Catherine Pugh betrayed the public's trust. The FBI will continue to diligently work to detect fraud and corruption and hold those who violate this trust accountable.”
“For over 100 years, IRS Criminal Investigation has been committed to enforcing our nation’s tax laws. This case should serve as an example to the public that everyone will be held to the same standard when it comes to paying their fair share of taxes.” Said Kelly Jackson, IRS Special Agent in Charge, Washington D.C. Field Office. “IRS Criminal Investigation will continue to work diligently with our law enforcement partners to identify and bring to justice those who endeavor to evade taxes, especially those elected to serve the public.”
According to her plea agreement, from approximately 2007 through 2016 Pugh served in the Maryland State Senate, where she served on various legislative committees, including the Senate Health Committee. In 2011, Pugh ran an unsuccessful campaign to be mayor of Baltimore. In September 2015, Pugh again ran for mayor of Baltimore, and won, becoming Mayor on December 6, 2016. Pugh owned Healthy Holly, LLC, a company formed in Maryland on January 14, 2011, and used to publish and sell children’s books she had written. Pugh also owned Catherine E. Pugh and Company, Inc., a marketing and public relations consulting company organized in Maryland in 1997. The principal address for both companies was Pugh’s residence in Baltimore. Pugh was also the sole signatory on the Healthy Holly and Pugh Company bank accounts. Pugh did not maintain a personal bank account, using her business bank accounts for personal and business finances.
Between June 2011 and August 2017, four Healthy Holly books were published, with each book listing “Catherine Pugh” as author. The vast majority of books published by Healthy Holly were marketed and sold directly to non-profit organizations and foundations, many of whom did business or attempted to do business with the Maryland and Baltimore City governments.
From approximately 2011 until December 2016, Gary Brown, Jr. worked as a legislative aide to Pugh. Brown actively campaigned for Pugh’s reelection to the State Senate in 2014 and served as her campaign aide during her 2016 mayoral election campaign. Following Pugh’s election and inauguration as mayor of Baltimore City in December 2016, Brown was hired as the Deputy Director of Special Events in the mayor’s office. In December 2016, Brown was nominated by the Maryland Democratic Central Committee to fill the vacancy in the Maryland House of Delegates created by Pugh’s mayoral victory. However, the Governor withdrew Brown’s nomination after he was indicted for election law violations in January 2017.
Brown was the sole owner and operator of Stricker Abstracting, LLC, and GB Abstracting, LLC, both Maryland companies that purported to be title-abstracting businesses, and GBJ Consulting, LLC, a Maryland consulting business. Brown ran all three companies from his residences in Baltimore. Brown also freelanced as a tax return preparer. Between March 2011 until March 2019, Brown helped Pugh promote and sell the Healthy Holly books. Brown oversaw the transportation and storage of the books, drafted invoices, and corresponded with purchasers. Much of Brown’s work on Healthy Holly occurred during work hours while serving as Pugh’s legislative aide and mayoral staff member. Brown was not an employee of Healthy Holly and received no salary or compensation until approximately mid-2016 when he started to get sales commissions. None of his companies received compensation for services purportedly provided to Healthy Holly.
Wire Fraud
Pugh admitted that from November 2011 until March 2019, she conspired with Gary Brown to defraud purchasers of Healthy Holly books in order to enrich themselves, promote Pugh’s political career, and fund her campaign for mayor. Pugh and Brown admitted that they employed several methods to defraud, including: not delivering books after accepting payments for the books; accepting payments for books to be delivered to a third party on behalf of a purchaser, then converting some or all of the purchased books to their own use without the purchaser’s or third party’s knowledge; and by double-selling books without either purchaser’s knowledge or consent. Pugh stored quantities of fraudulently obtained Healthy Holly books at various locations, including Pugh’s residence, her state legislative offices, her mayoral office, the War Memorial building in Baltimore City, and a public storage locker used by Pugh’s mayoral campaign.
Specifically, Pugh admitted that she sold approximately 20,000 each of Healthy Holly books one, two, and three to the University of Maryland Medical System (UMMS) for $100,000 each. UMMS agreed to the purchase on the condition that it be on behalf of, and for distribution to, school children in the Baltimore City Public School system (BCPS), in part, to further the mission of UMMS’s community outreach program. As part of the agreement Pugh was to deliver the donated books to BCPS.
As detailed in her plea agreement, Pugh did not deliver the full 20,000 Healthy Holly books one, two, and three that UMMS purchased to BCPS, instead keeping some of the books for herself. In addition, Pugh sold to unwitting purchasers copies of Healthy Holly books one, two, and three that had already been sold to UMMS and donated to BCPS. Pugh used Associated Black Charities, a Baltimore-based public charity, to facilitate the resale and distribution of the books to new purchasers. Neither the charity nor the new purchasers knew that Pugh was double-selling the books. Pugh also accepted payment for books that were never delivered to the purchaser.
Conspiracy to Defraud the United States/Tax Evasion
Pugh further admitted that she used the proceeds of the sale of fraudulently obtained Healthy Holly books for her own purposes, including: to fund straw donations to Pugh’s mayoral election campaign; and to fund the purchase and renovation of a house in Baltimore City.
Specifically, Pugh issued Healthy Holly checks payable to Brown, for the purpose of funding straw donations to the Committee to Elect Catherine Pugh. Brown cashed the checks and used the untraceable cash to fund money orders, debit cards, and personal checks in the names of straw donors totaling approximately $35,800. The straw donations purchased with the cash were then deposited into the bank account of the Committee to Elect Catherine Pugh. Pugh wrote additional Healthy Holly checks to Brown totaling $26,300, which he cashed and gave the cash to Pugh. In total, Brown and Pugh cashed out approximately $62,100 of Healthy Holly checks during 2016, all of which went to straw donors or Pugh. To conceal the scheme, Brown and Pugh created the pretense of a legitimate business relationship between Brown and Healthy Holly. In furtherance of the pretense, Pugh and Brown signed an independent contractor agreement between Healthy Holly and GBJ Consulting, and Brown created a business ledger that misrepresented the Healthy Holly checks as payments for promotion services rendered by Brown’s company on behalf of Healthy Holly. At Pugh’s urging, Brown also created bogus GB Consulting invoices and backdated them.
On January 11, 2017, Brown was charged with, and ultimately convicted of, violating Maryland’s election laws for funneling $18,000 of the straw donations to Pugh’s campaign. The Committee to Elect Catherine Pugh issued five checks in the names of three of the straw donors, with a notation in the memo line on each check stating “returned contribution.” In fact, Pugh acknowledges that none of the straw donors received any of the returned money, and instead, at Pugh’s direction, Brown used the money to pay for his legal defense in the state election-law prosecution, a case that had legal implications for Pugh.
Pugh also admitted that she conspired to evade taxes on the income received from the sales of Healthy Holly books. To accomplish this, Pugh concealed from the IRS the fact that she created false business expenses to offset the income she received from the sale of books by issuing Healthy Holly checks to Brown for services and/or products purportedly supplied by his company. Pugh filed false income tax returns for 2015 and 2016, in which she underreported her income. For example, for tax year 2016 Pugh claimed her taxable income was $31,020 and the tax due was $4,168, when in fact, Pugh’s taxable income was $322,365, with an income tax due of approximately $102,444.
Pugh faces a maximum sentence of 20 years in federal prison for the wire fraud conspiracy; five years in federal prison for conspiracy to defraud the United States; and five years in federal prison for each of the two counts of tax evasion. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. Pugh remains released on conditions under the supervision of U.S. Pretrial Services.
Former Baltimore City employees Gary Brown, Jr., age 38, of Baltimore, previously pleaded guilty to conspiracy to commit wire fraud, to two counts of conspiracy to defraud the United States, and to filing a false tax return. No sentencing date has been set.
United States Attorney Robert K. Hur commended the FBI and the IRS Criminal Investigation for their work in the investigation and thanked the U.S. Department of Labor - Office of Inspector General, Office of Investigations - Labor Racketeering and Fraud, the Maryland State Prosecutor’s Office, and the Baltimore City Office of Inspector General for their assistance. Mr. Hur thanked Assistant U.S. Attorneys Martin J. Clarke and Leo J. Wise, who are prosecuting the case.
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Former Assistant United States Attorney Pleads Guilty to Federal Theft ChargeRead the Press Release
JACKSON, Tenn. – November 21, 2019 – Barbara Zoccola, 58, of Memphis, Tennessee, pleaded guilty today in U.S. District Court to a federal theft charge, announced U.S. Attorney Don Cochran for the Middle District of Tennessee. Zoccola was charged in a criminal Information filed on October 9, 2019, which resulted from an investigation by the Department of Justice’s Office of Inspector General into Zoccola’s time and attendance records.
Today, Zoccola entered into a plea agreement, in which she admitted to the conduct alleged in the single-count Information – that on October 25, 2018, she certified her time and attendance records for the pay period, falsely reporting that she had worked full 8-hour days on four specific days. Zoccola failed to report nine hours of leave time that she had taken on the same days. Zoccola also admitted that between June 2018 and June 2019, she submitted additional certifications in which she failed to report other leave time, which allowed her to accrue additional leave time that she was not entitled to. Zoccola admitted that the value of the unreported leave time was between $6,500 and $15,000.
The plea agreement required Zoccola to resign her position as an Assistant U.S. Attorney and to pay $10,000 in restitution to the Department of Justice. She also faces up to one year in prison when she is sentenced next year.
This case is being prosecuted by Assistant U.S. Attorneys Brent A. Hannafan and Chris Suedekum of the Middle District of Tennessee. U.S. District Judge William L. Campbell, Jr., of the Middle District of Tennessee, sitting by special designation, conducted the proceedings in the Jackson Branch of the Western District of Tennessee.
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Five Mexican Citizens Charged After Arrest in Investigation into Suspected Alien Smuggling in Glacier CountyRead the Press Release
GREAT FALLS—Five Mexican citizens who were arrested on November 17 in Glacier County by law enforcement investigating suspected alien smuggling appeared in court today on immigration-related charges, U.S. Attorney Kurt Alme said.
The five defendants were among a total of 19 suspected aliens who were picked up and transported to the Sweetgrass Border Patrol Station for processing.
Four of the defendants, Alberto Guillen-Gordillo, 22, Omero Banderas-Rodriguez, 39, Josue Bermudez-Lopez, 26, and Samuel Velasco-Tovar, 28, had an initial appearance on a criminal complaint before U.S. Magistrate Judge John T. Johnston. The complaint charges the four with illegal transport of aliens and with conspiracy to transport aliens. If convicted of the most serious crime, the defendants face a maximum 10 years in prison, a $250,000 fine and three years of supervised release.
A fifth defendant, Ma Mercedes Rivera-Gutierrez, 39, had an initial appearance on a criminal complaint charging her with illegal reentry. If convicted of the most serious crime, Rivera-Gutierrez faces a maximum two years in prison, a $250,000 fine and three years of supervised release.
All defendants were detained pending further proceedings.
Court documents filed in the case said that in October, law enforcement received information about suspicious room rental activity at a Cut Bank hotel by several Mexican nationals over approximately the prior six months. The investigation led Border Patrol agents to suspect a group of aliens was coming into the country illegally from Canada. On November 17, agents made near-simultaneous traffic stops of two SUVs at about 11:15 p.m. In the first vehicle, driven by Omero Banderas-Rodriguez, were nine passengers. During the stop of the second vehicle, all occupants ran into a nearby field. Agents found eight individuals in the field within a few minutes. One of the persons arrested in the field was Josue Bermudez Lopez. Another defendant, Alberto Guillen-Gordillo, was arrested at the hotel room where the subjects had been staying.
Border Patrol agents arrested Rivera-Gutierrez during a search of the field for occupants who ran from the vehicle.
Assistant U.S. Attorneys Jeff Starnes, Paulette Stewart and Ethan Plaut are prosecuting the case, which was investigated by the U.S. Border Patrol and the Glacier County Sheriff’s Office.
The complaints are merely accusations and the defendants are presumed innocent until proven guilty.
Pacer case reference. MJ-19-82 and MJ-19-83.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Five Aliens Indicted on Illegal Reentry Charges and Illegal and Unlawful Alien in Possession of a FirearmRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned indictments charging FELIX ANTONIO JUAREZ-ANTUNEZ, age 35, of Honduras, LIDIO GOMEZ-GOMEZ, age 49, of Mexico, EDUARDO AGUILAR-ARELLANO, age 35, of Mexico, and JOSE CENTENO-ANGEL, age 31, of Mexico with Illegal Reentry of a Deported Alien.
Additionally, the grand jury returned an indictment charging JOSE GABRIEL VALLEJO-HERNANDEZ, age 51, of Mexico, with illegal and unlawful alien in possession of a firearm.
If convicted of illegal reentry of a deported alien, JUAREZ-ANTUNEZ, previously deported twice and found in Wake County, would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of illegal reentry subsequent to a felony conviction (death by motor vehicle), GOMEZ-GOMEZ, previously deported twice and found in Sampson County, would face maximum penalties of ten years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
AGUILAR-ARELLANO, previously deported and found in Johnston County, is alleged to have been previously removed subsequent to an aggravated felony conviction (second degree rape) and CENTENO-ANGEL, previously deported and found in Wake County, is alleged to have been previously removed subsequent to an aggravated felony conviction (accessory after the fact to kidnapping). Therefore, if convicted, he would face a maximum imprisonment term of 20 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of illegal and unlawful alien in possession of a firearm, VALLEJO-HERNANDEZ, found in Columbus County, would face maximum penalties of 10 years imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by ICE’s Enforcement and Removal Operations and Homeland Security Investigations.
Federal inmate pleads guilty to using a cell phone from prison to post to videos to FacebookRead the Press Release
ATLANTA – Inmate Brian J. Wilson pleaded guilty to using a contraband cell phone to post photographs and videos onto Facebook from his cell in the U.S. Penitentiary-Atlanta (“USP Atlanta”).
“Inmates who use a contraband cell phone should ask themselves whether having a cell phone in prison is worth spending more time in prison,” said U.S. Attorney Byung J. “BJay” Pak. “The federal government is committed to limiting the explosion of contraband cell phones in federal prisons.”
“The boldness of this inmate to live stream for the world to see is an example of how widespread contraband cell phones are in our prisons,” said Special Agent in Charge of FBI Atlanta, Chris Hacker. “Many times they are used to further criminal activities and can create serious security concerns. That is why the FBI will continue to use every resource available to stop their proliferation.”
According to U.S. Attorney Pak, the charges, and other information presented in court – the USP Atlanta is a medium-security federal prison for male inmates operated by the Federal Bureau of Prisons. The Cell Phone Contraband Act of 2010 made it a crime for Federal inmates to possess or use cell phones while incarcerated.
On March 24, 2015, Wilson was sentenced to ten years of imprisonment after sustaining a conviction for possession of a stolen firearm. Since approximately May 3, 2018, Wilson has been an inmate at USP Atlanta.
As an inmate, Wilson possessed a cell phone in USP Atlanta. Between late-May and July 2019, Wilson used his cell phone to post images to and to live stream content onto the social media platform Facebook from his prison cell. In fact, Wilson posted a “selfie” photograph onto his Facebook account of himself holding a cell phone while in his prison cell. Ironically, in a live stream video, Wilson warned people that federal cases have significant prison sentences, lamenting that “federal law ain’t playing” because “the United States will lock you … up” if you are convicted of a federal crime.
Prior to his guilty plea, Wilson was scheduled to be released from custody on November 28, 2022. Under federal law, however, inmates convicted of possessing contraband in prison must receive consecutive (or additional) prison time after their original sentence is completed.
On April 29, 2019, Brian J. Wilson, 32, of Atlanta, was charged via criminal information with possessing a contraband cell phone in prison.
The FBI and the Bureau of Prisons are investigating this case.
Assistant U.S. Attorneys Jeffrey W. Davis, Chief of the Public Integrity and Special Matters Section, and Carolyn Cain Burch are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Fairfield Man Indicted After Brandishing a Firearm During a Robbery in Solano CountyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment today against Antonio Tawan Bankhead, 31, of Fairfield, charging him with being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Oct. 11, police responded to a report of a man robbed at gunpoint in Laurel Creek Park in Fairfield. Police located the victim, who said that three men approached him in the park and started taking his belongings, including his cellphone, pants, and shoes. The victim said that Bankhead pointed a gun at him and asked his two accomplices, “Should I shoot him?” After the victim called 911, police responded to the scene and located the three suspects. Bankhead led police on a foot pursuit through the park, but was apprehended in a nearby neighborhood. Afterwards, police found a gun that Bankhead is alleged to have discarded during the chase. The gun had an extended magazine loaded with 30 rounds of ammunition and one round in the chamber. Bankhead cannot lawfully possess firearms or ammunition because he has previously been convicted of three felony offenses. In addition, when this offense took place, Bankhead was on federal probation for illegally possessing a firearm in 2014.
This case is the product of an investigation by the Fairfield Police Department with assistance from the FBI’s Solano County Violent Crimes Task Force and the Solano County District Attorney’s Office.
If convicted, Bankhead faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Essex County Man Charged with Identity Fraud and Laundering over $20 Million in Illegal Drug ProceedsRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was charged today for his role in a multi-million dollar money laundering conspiracy and for using a stolen identity in furtherance of the scheme, U.S. Attorney Craig Carpenito announced.
Edwin Deleon-Batista, 36, of Newark, is charged by complaint with one count of conspiracy to launder drug proceeds and one count of identity fraud. Deleon-Batista is scheduled to make his initial appearance this afternoon before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court.
According to documents filed in this case and statements made in court:
Over an extended period, Deleon-Batista conspired with other individuals with close ties to drug trafficking organizations to pick up millions of dollars in cash drug proceeds in New Jersey and New York and launder the money by using it to purchase cashier’s checks at local bank branches. The checks were made payable to individuals and companies specified by conspirators with close ties to the drug trafficking organizations. Converting the drug proceeds to cashier’s checks was Deleon-Batista’s way to hide the nature and source of the illegal funds and avoid scrutiny by law enforcement and banks. Between March 2018 and March 2019, Deleon-Batista converted over $13 million in United States currency into cashier’s checks at banks in New Jersey, New York, and elsewhere. Deleon-Batista received a fee of approximately 1 percent of the amount he laundered.
Deleon-Batista was previously arrested on federal money laundering charges in New York in April 2019. Soon after his arrest, Deleon-Batista began using a stolen identity in order to continue his money laundering activities. Specifically, Deleon-Batista illegally acquired a Florida driver’s license with his own photograph but with someone else’s name and address. He then used this fraudulent license to open several bank accounts, which he then used as a means to convert over $10 million in additional cash drug proceeds into cashier’s checks at bank branches in New Jersey, New York, and Florida over a five-month period.
The charge of money laundering carries a maximum penalty of 20 years in prison and a fine of $500,000 or twice the amount involved in the offense, whichever is greater. The charge of identity fraud carries a maximum prison sentence of 15 years and a $250,000 fine.
U.S. Attorney Carpenito credited special agents and task force officers of the U.S. Drug Enforcement Administration, New Jersey Division, under the direction of Special Agent in Charge Susan A. Gibson and the New York Division, under the direction of Special Agent in Charge Ray Donovan; special agents and task force officers of IRS - Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur; and the Morristown, New Jersey, police department, under the direction of Acting Police Chief Darnell Richardson with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the Criminal Division in Newark.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Eight Charged in Wide-Ranging Fentanyl, Heroin and Cocaine ConspiracyRead the Press Release
BOSTON – Eight individuals from Fitchburg and Gardner were charged with participating in a wide-ranging fentanyl, heroin and cocaine trafficking conspiracy.
Pedro Baez, 50, of Fitchburg; Anthony Baez, 31, of Fitchburg; Amanda Ford, 33, of Fitchburg; Monica Troche, 27, of Fitchburg; Branny Taveras, 37, of Fitchburg; Shastaalena Blair, 39, of Fitchburg; Jessica Hughes 28, of Gardner; and Valerie Lucier, 30, of Fitchburg, were charged in an indictment unsealed today with conspiracy to distribute and possession with intent to distribute fentanyl, heroin, cocaine and cocaine base. Anthony Baez and Troche were also each indicted on various drug possession and distribution charges.
Hughes, who is currently incarcerated on state charges, will be transferred to federal custody. The remaining defendants were arrested this morning.
The charge of conspiracy to distribute fentanyl, heroin, cocaine, or cocaine base provides for a sentence of up to 20 years in prison, at least three years of supervised release and a fine of up to $1 million. The other drug trafficking charges provide for a sentencing range of five years to a lifetime in prison, at least four years of supervised release and a fine of between $5 million to $10 million. Due to a previous conviction of a qualifying drug trafficking offense, Pedro Baez faces an enhanced mandatory minimum sentences. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement today. The case was investigated by the Organized Crime Drug Enforcement Task Force (OCDETF). The Fitchburg Police Department, U.S. Postal Inspection Service and the Lunenburg Police Department also provided valuable assistance. Assistant U.S. Attorney Alathea Porter of Lelling’s Narcotics and Money Laundering Unit are prosecuting the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Edwards Man Pleads Guilty to Methamphetamine TraffickingRead the Press Release
Jackson, Miss – Daniel Chad Parrette, of Edwards, pled guilty today before Chief U.S. District Judge Daniel P. Jordan to possessing methamphetamine with intent to distribute, announced U.S. Attorney Mike Hurst.
On March 30, 2018, MBN agents received information that Parrette was attempting to sell methamphetamine. Based upon this information, as well as the agents’ observations, agents made a traffic stop on Parrette’s truck and confronted Parrette. Agents searched Parrette’s ruck and found four individually wrapped bags of methamphetamine. In a subsequent interview, Parrette told agents that he wanted to sell the methamphetamine.
On April 3, 2019, Parrette was charged in a federal indictment with possession with intent to distribute a substance containing methamphetamine. He will be sentenced by Judge Jordan on February 21, 2020 and faces a statutory penalty of up to 20 years in prison and a $1,000,000 fine.
The case was investigated by the Mississippi Bureau of Narcotics and is being prosecuted by Assistant United States Attorney Bert Carraway.
Edmonds woman indicted for April 2018 arson at Highway 99 storeRead the Press Release
Seattle—An Edmonds, Washington, business owner was arrested today on an indictment charging her with arson and wire fraud related to the April 30, 2018, fire at her business, announced U.S. Attorney Brian T. Moran. CONNIE L. BIGELOW, 52, will make her initial appearance on the indictment at 2:00 today.
The indictment alleges that BIGELOW set fire to her business to collect insurance money as the store was struggling to make enough money to pay the rent. BIGELOW moved her business, CJN Miniatures LLC, into the building at 23030 Highway 99, in Edmonds in September 2017. The store maintained an inventory of miniatures and collectables for sale, consigned items on behalf of other individuals, and rented out space to other vendors. Between October 2017 and April 2018, the business fell behind in rental payments and payments to consigners. BIGELOW bounced checks as she over drafted her bank account.
BIGELOW carried an insurance policy with State Farm Fire and Casualty Company that covered up to $100,000 in loss of business personal property, as well as loss of income. The policy did not cover loss arising from arson.
The indictment alleges that BIGELOW set the fire underneath three Thomas Kinkade paintings worth thousands of dollars. On or about May 1, 2018, BIGELOW initiated a claim to State Farm for the losses arising from the fire. On May 3, 2018, BIGELOW communicated with the insurance agent via email as part of the wire fraud scheme. BIGELOW made false statements to law enforcement, as well as representatives of State Farm as part of the scheme to defraud.
Following the fire, BIGELOW reopened the store as “Miniatures & More” on 5th Avenue in Edmonds.
Arson is punishable by a mandatory minimum five years in prison and up to 20 years in prison. Wire fraud is punishable by up to 20 years in prison and a $250,000 fine.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), along with the Snohomish County Fire Marshals Office. The case is being prosecuted by Assistant United States Attorney Amy Jaquette.
Durant Woman Sentenced to 60 Months Probation, $20,000 Restitution for Theft from Indian Tribal OrganizationRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Nichole Marie Schell-Loper, age 43, of Durant, Oklahoma, was sentenced to 5 years of supervised release for Embezzlement And Theft From Indian Tribal Organizations, in violation of Title 18, United States Code, Section 1163. In addition to the standard rules and conditions of probation, Loper was ordered to pay $20,000.00 in restitution to the Choctaw Nation of Oklahoma in monthly installments beginning on December 20, 2019 and by surrendering 100% of any state and federal tax refunds. Loper was also ordered to not incur any additional charges on credit and not to open any new lines of credit without the prior approval of her probation officer.
The charges arose from an investigation by the Choctaw Nation Tribal Police. The Indictment alleged that from in or about January 2016, to in or about June 2018, in the Eastern District of Oklahoma, the defendant, stole, embezzled and knowingly and willfully converted to her own use monies in excess of $1,000.00 which had been entrusted to her custody and care as an employee of the Choctaw Nation of Oklahoma, an Indian tribal organization.
United States Attorney Brian J. Kuester said, “The defendant enriched herself with funds entrusted to her that were intended for those facing financial hardship. This sort of abuse of position to benefit oneself deprives those in genuine need of assistance and lessens the impact the victimized organization could have on the community. This sentence holds the defendant accountable and requires her to repay the funds she embezzled.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Sarah McAmis represented the United States.
District Man Sentenced to Seven-Year Prison Term for Committing Armed Robbery While on Supervised ReleaseRead the Press Release
WASHINGTON – Michael Jenkins, 29, of Washington, D.C., was sentenced today to seven years in prison for brandishing a firearm during a robbery over the July 4th weekend of 2019, announced U.S. Attorney Jessie K. Liu.
Jenkins pled guilty in September 2019, in the Superior Court for the District of Columbia to one count of armed robbery, which carries a mandatory-minimum sentence of five years in prison. The Honorable Robert Okun sentenced Jenkins. Upon release, he will be placed on supervised release for five years.
According to the government’s evidence, on July 6, 2019, Jenkins approached the victim outside of a gas station in the 900 block of Florida Avenue, Northwest. He brandished a firearm while demanding the victim’s belongings. The victim dropped his keys, which Jenkins picked up before driving away in the victim’s car. When Jenkins committed the armed robbery, he was on supervised release for a 2015 firearms-related conviction, and now will face revocation of his supervised release in that case.
In announcing the sentence, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department. She acknowledged the work of those who handled the case at the U.S. Attorney’s Office, including Paralegal Specialist Antoinette Sakamsa and Assistant U.S. Attorney Ethan Carroll, who investigated and prosecuted the case.
Department of Justice Announces the Probationary Re-Admission of Robeson County Sheriff’s Office into the Equitable Sharing Program Upon Completion of Today’s Asset Forfeiture TrainingRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. and the Department of Justice’s Criminal Division Money Laundering and Asset Recovery Section (MLARS) announce the probationary re-admission of the Robeson County Sheriff’s Office (RCSO) into the Department of Justice and Department of the Treasury’s Equitable Sharing Programs (Program). This probationary re-admission is pursuant to a Memorandum of Agreement (MOA) and the special conditions described therein. A copy of the MOA can be found
here .Today, MLARS and the United States Attorney’s Office for the Eastern District of North Carolina (USAO-EDNC) conducted mandatory training for personnel from the RCSO, Robeson County Board of Commissioners, and Robeson County Finance Office on asset forfeiture and equitable sharing. The MOA requires that this initial training be completed before the RCSO could participate in law enforcement activities where seizures for federal forfeiture are expected. With this requirement now satisfied, the Departments of Justice and Treasury have agreed to process sharing requests going forward subject to the requirements of the MOA.
The RCSO was deemed ineligible for participation in the Program following the federal criminal prosecutions by the USAO-EDNC of several members of the RCSO as part of the Organized Crime and Drug Enforcement Task Force Operation “Tarnished Badge,” and the RCSO’s failure to comply with Program policies and regulations. Recently, under the new leadership of Sheriff Burnis Wilkins, the RCSO made a request for readmission into the Program after years of ineligibility.
The Departments of Justice and Treasury believe that renewed collaboration and cooperation between the RCSO and federal law enforcement will strengthen law enforcement efforts to deter and punish criminal activity in Robeson County and the surrounding communities. Accordingly, a MOA was established for the purpose of:
- Setting forth the requirements and responsibilities of the RCSO, the Robeson County Board of Commissioners and the Finance Office for the probationary re-admission of the RCSO into the Program;
- Setting forth the requirements and responsibilities of the RCSO for participation with federal authorities in federal investigations that may lead to the seizure and forfeiture of assets;
- Providing effective management for the RCSO probationary re-admission and participation in the Program;
- Promoting public confidence in the integrity of law enforcement; and,
- Protecting the Program against fraud, waste and abuse.
The MOA was entered into by the following agencies:
- U.S. Attorney’s Office for the Eastern District of North Carolina
- U.S. Department of Justice – Criminal Division’s Money Laundering and Asset Recovery Section (MLARS)
- Federal Bureau of Investigation
- Drug Enforcement Administration
- Bureau of Alcohol, Tobacco, Firearms and Explosives
- Department of the Treasury – Executive Office for Asset Forfeiture (TEOAF)
- Department of Homeland Security, Homeland Security Investigations
- County of Robeson, North Carolina
- Robeson County Sheriff’s Office
- Robeson County Board of Commissioners
- Robeson County Finance Office
The RCSO’s participation with federal authorities and with the Program will be for a probationary period of five years from the effective date of the MOA, and subject to the additional terms and conditions specified in the MOA.
For more information about the Department of Justice’s Equitable Sharing Program, see /media/1044326/dl?inline.
Dallas Man Found with 10 Machineguns Charged with Gun CrimesRead the Press Release
A federal grand jury indicted a Dallas man for gun and drug crimes after he was discovered with multiple unlawful machineguns, as well as heroin and cocaine, following an investigation by the ATF, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Ramon Navarro, III – aka Trae Alvarez – was charged with four counts of possession of an unregistered firearm and eight counts of distribution of a controlled substance. He has been ordered detained pending trial.
According to court documents, Mr. Navarro, 21, allegedly possessed at least four standalone machinegun conversion sears, three-piece devices designed to convert semiautomatic weapons into machineguns.
He also allegedly possessed at least six Glock pistols with incorporated sears, which effectively transformed the Glocks into machineguns.
“This defendant attempted to circumvent our nation’s gun laws by converting legal firearms into unlawful machineguns,” said U.S. Attorney Nealy Cox. “Machineguns have no place on the streets of Dallas. Using federal firearm laws to reduce gun violence is among the Justice Department’s highest priorities.”
“When firearms and drugs can be readily obtained in an underground market, the challenge of reducing violence in our communities is much greater,” stated ATF Dallas Field Division Special Agent in Charge Jeffrey C. Boshek II. “Individuals who bypass regulations designed to protect our communities fuel the devastation possible when firearms end up in the hands of prohibited persons as well as impede justice for the victims.”
Unlike semiautomatic firearms, machineguns – weapons that can shoot more than one shot, without manual reloading, by single function of the trigger – are generally unlawful for civilians under the National Firearms Act.
In a criminal complaint filed in October, an undercover ATF agent alleged that Mr. Navarro sold him at least three of the converted Glocks for roughly $1,500 apiece, and even demonstrated one firearm’s functionality as a machinegun.
All of the machinegun conversion sears in Mr. Navarro’s possession lacked serial numbers and were of unknown origin.
An indictment is a formal accusation of criminal conduct, not evidence, and the defendant is presumed innocent until proven guilty in a court of law.
The Bureau of Alcohol, Tobacco, Firearms & Explosives conducted the investigation with the assistance of the Dallas Police Department. Assistant U.S. Attorney Linda Requénez is prosecuting the case.
This case was prosecuted under Project Guardian, a Department of Justice initiative aimed at reducing gun violence by enforcing federal firearm laws through coordination between the federal government and state and local law enforcement.
D.C. Man Convicted of Unlawful Possession of Firearm and AmmunitionRead the Press Release
WASHINGTON – Asa Lea, 28, of Washington, D.C. was found guilty by a jury today on charges related to his unlawful possession of a firearm and ammunition after he had previously been convicted of a felony. The announcement was made by U.S. Attorney Jessie K. Liu and Ronald A. Pavlik, Jr., Chief of the Metro Transit Police Department (MTPD).
Lea was convicted following a jury trial in the United States District Court for the District of Columbia. Lea faces a prison sentence of up to ten years of imprisonment. Sentencing is scheduled for February 6, 2020, before the Honorable Christopher R. Cooper.
According to the government’s evidence, in March 2019, MTPD officers attempted to write Lea a citation for public consumption of marijuana. After Lea provided a false identification to the officers and attempted to flee, officers located a .25 caliber semi-automatic firearm in his front jacket pocket. The firearm, which was loaded with seven rounds of ammunition, had an obliterated serial number.
This case was investigated and prosecuted as part of the Department of Justice’s Project Safe Neighborhoods Program (“PSN”) and Project Guardian, which are nationwide crime-reduction strategies aimed at reducing violent crime and gun crime. PSN and Project Guardian involve a comprehensive approach to public safety that includes investigating and prosecuting crimes along with prevention and reentry efforts. In the District of Columbia, U.S. Attorney Liu coordinates PSN and Project Guardian efforts in cooperation with various federal, state, and local law enforcement officials.
In announcing the verdict, U.S. Attorney Liu expressed her appreciation to the Metro Transit Police Department for their work on the case. She also acknowledged the work of Paralegal Specialist Candace Battle and Legal Assistant Peter Gaboton of the U.S. Attorney’s Office, AUSA Vincent Caputy, who investigated and indicted the case, and AUSAs Andrea Duvall and Nicole Battle, who prosecuted and tried the case.
Convicted Felon with Illegal Guns: Sentenced to 210 Months in PrisonRead the Press Release
MACON, Ga. – A felon with eight prior convictions, caught running an underground illegal gun trade while out on parole, was sentenced to 210 months in prison, said U.S. Attorney Charles “Charlie” Peeler. There is no parole in the federal system. Ronnie Lee Hughes, 39, of Griffin, Georgia was sentenced on Wednesday, November 20, 2019 by U.S. District Judge Marc Treadwell to 210 months of imprisonment and five years supervised release. Defendant Hughes was found guilty of possession of a firearm by a convicted felon by a federal jury on July 17, 2019. Defendant Hughes has eight prior felony state convictions beginning in 1999, including four separate entering auto convictions, three separate burglary convictions and one theft by taking conviction. His past crimes occurred in Upson, Laurens, Pike and Monroe counties, all charged in Superior Court. His last conviction was in Monroe County Superior Court in December 2008 for burglary. Defendant Hughes was on parole when he was taken into custody by Lamar County deputies on August 31, 2016, arrested during an undercover operation into his illegal gun trade.
“The penalty is steep for convicted felons found with guns in Middle Georgia,” said U.S. Attorney Charlie Peeler. “Stopping the underground illegal gun trade is crucial in our efforts to remove guns from dangerous persons and decrease violent crime in our communities. We are working closely with our law enforcement partners to investigate and arrest felons with guns, and we will continue to prosecute these offenders.”
A Confidential Informant (CI) told Lamar County deputies that Mr. Hughes, a convicted felon on parole, was selling guns. Lamar County deputies worked with the CI to set up a meeting on August 31, 2016, with the intent of the CI to arrange a purchase of the guns from Mr. Hughes. In one conversation between the CI and Mr. Hughes, the defendant warned that the buyer arranged by the CI “better not be a cop” because he was a convicted felon and it was illegal for him to sell guns. At the appointed time and place for the sale, Lamar County deputies met Mr. Hughes and took him into custody, seizing four weapons and ammunition.
This prosecution is a part of Project Safe Neighborhoods, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Lamar County Sheriff’s Department and the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorneys William Keyes and Paul McCommon are prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Columbia Man Pleads Guilty to Arson at Planned Parenthood ClinicRead the Press Release
JEFFERSON CITY, Mo. – A Columbia, Mo., man pleaded guilty in federal court today to the arson at the Columbia Health Center (operated by Planned Parenthood Great Plains) on Feb. 10, 2019.
Wesley Brian Kaster, 42, pleaded guilty before U.S. Magistrate Judge Willie J. Epps Jr. to one count of maliciously using explosive materials to damage a building owned by an organization that receives federal financial assistance, and one count of violating the Freedom of Access to Clinic Entrances Act. Kaster has remained in federal custody without bond since his arrest on March 2, 2019.
By pleading guilty today, Kaster admitted that he manufactured a Molotov cocktail on Feb. 10, 2019. On the same day, he broke the glass in the north entry door of the Columbia Health Center at 711 N. Providence Road and threw the Molotov cocktail into the facility. At approximately 4:10 a.m., the Columbia Fire Department arrived on the scene, investigated the damage caused by the explosive device, and collected evidence.
Kaster admitted today that he took these actions because Planned Parenthood provided reproductive health services at the facility.
Under federal statutes, Kaster is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 21 years 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 Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Columbia, Mo., Police Department, the Missouri State Highway Patrol, and the FBI.
Citizen of Mexico Sentenced to 2 Years in Prison for Third Illegal Reentry ConvictionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that FABIOLA BASTIAN MOJICA, 39, a citizen of Mexico recently residing in Stamford, was sentenced today U.S. District Judge Robert N. Chatigny in Hartford to 24 months of imprisonment, followed by three years of supervised release, for illegally reentering the U.S. after being deported.
According to court documents and statements made in court, in May 2003, Bastian Mojica, who at the time was a lawful permanent resident of the U.S., was convicted in Stamford superior court of possession of a hallucinogen/marijuana. Bastian Mojica’s lawful permanent residence status was revoked and, in November 2003, she was removed to Mexico.
In October 2005, Bastian Mojica was arrested by Greenwich Police and was subsequently convicted in state court of evading responsibility resulting in injury/property damage, and possession of marijuana. She was also convicted in federal court of reentry of a removed alien and sentenced to 15 months of imprisonment. In January 2008, Bastian Mojica was removed to Mexico.
In July 2008, Bastian Mojica was arrested in Stamford. She was again removed to Mexico in August 2008.
In January 2010, Bastian Mojica was apprehended by the U.S. Border Patrol in Columbus, New Mexico. She was subsequently charged in the District of New Mexico with illegal reentry of a removed alien, and with violating the conditions of her supervised release related to her prior conviction for illegal reentry. She was convicted of both offenses and, following the completion of an 18-month sentence, was removed to Mexico in April 2011.
On October 23, 2018, Bastian Mojica was arrested by Stamford Police for a motor vehicle violation, and was subsequently charged with failure to appear. On March 7, 2019, after her identity was confirmed through a fingerprint analysis, she was arrested on a federal criminal complaint charging her with illegal reentry.
Bastian Mojica has been detained since her federal arrest. On May 7, 2019, she pleaded guilty to illegal reentry by a removed alien
Bastian Mojica will be removed to Mexico at the completion of her prison term.
The investigation was conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement. The case was prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Chinese National Who Worked at Monsanto Indicted on Economic Espionage ChargesRead the Press Release
ST. LOUIS– Haitao Xiang, 42, formerly of Chesterfield, Missouri, was indicted today by a federal grand jury on one count of conspiracy to commit economic espionage, three counts of economic espionage, one count of conspiracy to commit theft of trade secrets, and three counts of theft of trade secrets.
According to the indictment, Xiang was employed by Monsanto and its subsidiary, The Climate Corporation, from 2008 to 2017, where he worked as an imaging scientist. Monsanto and The Climate Corporation developed a digital, on-line farming software platform that was used by farmers to collect, store, and visualize critical agricultural field data and increase and improve agricultural productivity for farmers. A critical component to the platform was a proprietary predictive algorithm referred to as the Nutrient Optimizer. Monsanto and The Climate Corporation considered the Nutrient Optimizer a valuable trade secret and their intellectual property.
“The indictment alleges another example of the Chinese government using Talent Plans to encourage employees to steal intellectual property from their U.S. employers,” said Assistant Attorney General for National Security John C. Demers. “Xiang promoted himself to the Chinese government based on his experience at Monsanto. Within a year of being selected as a Talent Plan recruit, he quit his job, bought a one-way ticket to China, and was caught at the airport with a copy of the company's proprietary algorithm before he could spirit it away.”
“The revolutionary technology at the core of this case represents both the best of American ingenuity and why the Chinese government is so desperate to steal it for themselves” said Assistant Director John Brown. “The FBI is committed to working with a host of partners to stop individuals, like the defendant in this case, from engaging in economic espionage to acquire information and technology for a foreign government that is either unable or unwilling to compete on a level playing field. Our country’s economic security is our national security, and the FBI will always do everything in our power to protect it.”
“Stealing trade secrets can destroy a business,” said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. “When done at the behest of a foreign government, it threatens our nation’s economic security because it robs our companies of their market share and competitive advantage.”
In June 2017, the day after leaving employment with Monsanto and The Climate Corporation, Xiang bought a one-way plane ticket to China. Before he could board his flight, Xiang was intercepted at the airport by federal officials who seized copies on the Nutrient Optimizer.
If convicted, each espionage charge carries up to 15 years in prison and a $5,000,000 fine. Each theft of trade secrets charges carries up to 10 years in prison and a $250,000 fine.
The FBI is investigating this case. Assistant U.S. Attorney Matthew Drake and Trial Attorneys Heather Schmidt and Heather Alpino in the Counterintelligence and Export Control Section of the National Security Division are handling this case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Chinese National Who Worked at Monsanto Indicted on Economic Espionage ChargesRead the Press Release
Haitao Xiang, 42, formerly of Chesterfield, Missouri, was indicted today by a federal grand jury on one count of conspiracy to commit economic espionage, three counts of economic espionage, one count of conspiracy to commit theft of trade secrets and three counts of theft of trade secrets.
According to the indictment, Xiang was employed by Monsanto and its subsidiary, The Climate Corporation, from 2008 to 2017, where he worked as an imaging scientist. Monsanto and The Climate Corporation developed a digital, on-line farming software platform that was used by farmers to collect, store, and visualize critical agricultural field data and increase and improve agricultural productivity for farmers. A critical component to the platform was a proprietary predictive algorithm referred to as the Nutrient Optimizer. Monsanto and The Climate Corporation considered the Nutrient Optimizer a valuable trade secret and their intellectual property.
“The indictment alleges another example of the Chinese government using Talent Plans to encourage employees to steal intellectual property from their U.S. employers,” said Assistant Attorney General for National Security John C. Demers. “Xiang promoted himself to the Chinese government based on his experience at Monsanto. Within a year of being selected as a Talent Plan recruit, he quit his job, bought a one-way ticket to China, and was caught at the airport with a copy of the company's proprietary algorithm before he could spirit it away.”
“The revolutionary technology at the core of this case represents both the best of American ingenuity and why the Chinese government is so desperate to steal it for themselves,” said Assistant Director John Brown. “The FBI is committed to working with a host of partners to stop individuals, like the defendant in this case, from engaging in economic espionage to acquire information and technology for a foreign government that is either unable or unwilling to compete on a level playing field. Our country’s economic security is our national security, and the FBI will always do everything in our power to protect it.”
“Stealing trade secrets can destroy a business,” said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. “When done at the behest of a foreign government, it threatens our nation’s economic security because it robs our companies of their market share and competitive advantage.”
In June 2017, the day after leaving employment with Monsanto and The Climate Corporation, Xiang bought a one-way plane ticket to China. Before he could board his flight, Xiang was intercepted at the airport by federal officials who seized copies of the Nutrient Optimizer.
If convicted, each espionage charge carries up to 15 years in prison and a $5,000,000 fine. Each theft of trade secrets charges carries up to 10 years in prison and a $250,000 fine.
The FBI is investigating this case. Assistant U.S. Attorney Matthew Drake and Trial Attorneys Heather Schmidt and Heather Alpino in the Counterintelligence and Export Control Section of the National Security Division are handling this case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Chicago Pharmacy Technician Sentenced to 5 Years in Prison for Stealing Opioids and Selling Them for ProfitRead the Press Release
CHICAGO — A former technician at a Chicago pharmacy has been sentenced to five years in federal prison for stealing thousands of pills of hydrocodone and selling them for a profit.
ELIZABETH CRUZ worked at Allcare Discount Pharmacy, located in the 2700 block of West North Avenue in Chicago. From October 2015 to December 2017, Cruz and a co-defendant, JACQUELINE GREEN, conspired to steal approximately 56,108 pills of hydrocodone and sell them outside the pharmacy. Cruz and Green received at least $10,800 in proceeds from the sale of the stolen pills.
Cruz concealed the theft by falsifying the pharmacy’s inventory to make it look like the pills had either not been received from the distributor or had been dispensed to patients.
Cruz, 35, of Stone Park, pleaded guilty earlier this year to one count of conspiracy to possess a controlled substance with the intent to deliver. U.S. District Judge Ronald A. Guzman imposed the prison sentence Wednesday in federal court in Chicago.
“The opioid epidemic has inflicted an unprecedented toll of suffering in Chicago and throughout the country,” said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois. “The defendants in this case contributed to this crisis by making opiates available on the street to individuals who otherwise would not have access to them. Our office will continue to actively attack the opioid crisis from all investigative and prosecutorial angles.”
The investigation was conducted by the Chicago Field Division of the U.S. Drug Enforcement Administration.
“When trusted pharmacy employees illegally divert powerful and addictive pain medications for misuse, they put individuals and their families at increased risk of drug dependence and overdose,” said Robert J. Bell, Special Agent-in-Charge of the DEA Chicago Field Division. “This strong prison sentence is recognition of the seriousness of the opioid crisis. The DEA will continue to aggressively bring all resources to bear, unilaterally and in cooperation with prosecutors and law enforcement partners, to save lives in the midst of the opioid epidemic.”
Green, of Chicago, pleaded guilty to the same charge as Cruz. Judge Guzman in July sentenced Green to a year and a day in federal prison.
The government in this case was represented by Assistant U.S. Attorneys Nani M. Gilkerson and David Rojas.
Chicago Drug Dealers Convicted by Jury on Multiple Distribution CountsRead the Press Release
United States Attorney Ron Parsons announced that Maurice Bellafonta Cathey, a/k/a “Short”, age 39, of Chicago, Illinois, was found guilty of two counts of Conspiracy to Distribute a Controlled Substance, Distribution of a Controlled Substance Resulting in Death, and two counts of Distribution of a Controlled Substance Resulting in Serious Bodily Injury, on November 20, 2018, as a result of a federal jury trial in Sioux Falls, South Dakota.
In addition, Corrod Leon Phillips, age 28, of Chicago, Illinois, was found guilty of two counts of Conspiracy to Distribute a Controlled Substance and two counts of Distribution of a Controlled Substance Resulting in Serious Bodily Injury, as a result of the same federal jury trial.
“These defendants are the authors of one of the worst public health crises that this area has ever seen,” said U.S. Attorney Parsons. “They are responsible for importing and selling most of the heroin laced with fentanyl that caused so many overdoses in Sioux Falls last year. The suffering, death, and destruction that they have visited upon so many families in this community is immeasurable. We are forever grateful to the members of federal, state, and local law enforcement who brought these misery profiteers to justice and to the federal jury who rendered its unanimous verdict in this critically important case.”
Cathey faces a mandatory minimum penalty of life imprisonment, while Phillips faces a mandatory minimum sentence of 20 years in prison.
Phillips was indicted by a federal grand jury on June 6, 2018. Cathey was indicted by a federal grand jury on July 10, 2018. Their cases were joined by a second superseding indictment on October 10, 2018.
On January 5, 2018, first responders reported to a fatal overdose of a 22-year-old man at an apartment in Sioux Falls. The victim was unresponsive and attempts to revive him were unsuccessful. A friend of the victim who was with him said that the victim had injected himself with heroin. The victim obtained heroin from his friend that had been distributed by Cathey. Minnehaha County Coroner Dr. Kenneth Snell ruled that the victim’s cause of death was heroin and cyclopropyl fentanyl toxicity.
On February 9, 2018, first responders were dispatched to a fast food restaurant on South Minnesota Avenue for a report of cardiac arrest, where they found a 20-year-old woman who was unconscious and not breathing due to a heroin overdose. The victim was revived by first responders with Narcan. Cathey sold the heroin to the victim minutes before her overdose.
On April 23, 2018, first responders were dispatched to an overdose call at an apartment in Sioux Falls. First responders encountered a 24-year-old man who had overdosed on heroin laced with tramadol, 4-ANPP, and fentanyl, ultimately distributed by Cathey and Phillips. The victim was unconscious and not breathing when first responders arrived, but was revived by Narcan.
On May 16, 2018, a 23-year-old man overdosed on heroin in the bathroom of a grocery store in Sioux Falls. First responders found him unconscious and breathing poorly, and were able to awaken him with Narcan. The victim said he purchased the heroin from Phillips less than an hour before his overdose.
Testimony at trial revealed that multiple other overdoses, including at least one additional death, were caused by heroin distributed by Cathey and Phillips.
The Sioux Falls Area Drug Task Force executed multiple search warrants during the investigation at residences connected to Cathey and Phillips. During the execution of these warrants, SFADTF members located dozens of bindles of crack cocaine and heroin, thousands of dollars in U.S. Currency, and numerous items of drug distribution paraphernalia.
This case was investigated by the Drug Enforcement Administration, the Sioux Falls Area Drug Task Force, the Sioux Falls Police Department, and the United States Postal Inspection Service. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Presentence investigation reports were ordered and sentencing dates have not been set yet. The defendants were remanded to the custody of the U.S. Marshals Service.
Chelsea Man Indicted for Bank RobberyRead the Press Release
BOSTON – A Chelsea man was indicted today by a federal grand jury in Boston for the September 2019 robbery of a branch of the TD Bank in Chelsea.
Edward Robert Rezendes, 66, was indicted on one count of bank robbery. Rezendes, who is currently on supervised release for an unrelated bank robbery, was charged by criminal complaint in U.S. District Court earlier this month.
According to charging documents, on Sept. 10, 2019, Rezendes entered the bank, handed a teller a demand note, and left the bank with approximately $3,760.
The charging statute provides for a sentence of up to 10 years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Chelsea Police Chief Brian Kyes made the announcement made the announcement. Assistant U.S. Attorney Adam W. Deitch of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Checotah Man Sentenced to 94 Months for Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Joshua Dewayne Funburg, age 34, of Checotah, Oklahoma, was sentenced to 94 months’ imprisonment and 3 years of supervised release for Felon In Possession Of Firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). The charges arose from an investigation by the Checotah Police Department, the McIntosh County Sheriff’s Office, and the Federal Bureau of Investigation.
The Indictment alleged that on or about February 10, 2019, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, knowingly possessed in and affecting commerce, a Kel-Tec CNC Industries Inc., Model P-32, .32 ACP caliber semi-automatic pistol, a firearm which had been shipped and transported in interstate commerce.
United States Attorney Brian J. Kuester said, “The defendant has a significant criminal history including multiple felony convictions, yet he possessed a firearm. This office and our federal law enforcement partners will continue to utilize resources and federal law to assist state, local, and tribal agencies in their ongoing efforts to combat violent crime. Working together, we will reduce violent crime.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Dean Burris represented the United States.
California Resident Pleads Guilty to Telemarketing Conspiracy to Defraud U.S. ConsumersRead the Press Release
On Nov. 21, 2019, Angel Armando Adrianzen, 45, of California pleaded guilty to conspiracy to commit mail fraud and wire fraud for partnering with call centers in Peru that took money from U.S. Spanish-speaking victims through lies and threats. Adrianzen was arrested on Sept. 16 and has remained incarcerated since then.
Assistant Attorney General Jody Hunt, U.S. Attorney Ariana Fajardo Orshan, and Miami Division Postal Inspector in Charge Antonio J. Gomez announced today’s guilty plea.
“The Department of Justice will vigorously pursue and prosecute fraudsters who prey on others through international telemarketing schemes,” said Assistant Attorney General Jody Hunt of the Department of Justice's Civil Division. “The Department’s Consumer Protection Branch, working alongside the Postal Inspection Service and our Transnational Elder Fraud Strike Force partners, will bring to justice those who threaten and defraud consumers.”
“Protecting vulnerable and elderly members of our community from international fraud schemes is a top priority of the Department of Justice. Individuals who defraud American consumers will be brought to justice, no matter where they are located,” said U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida.
“This case highlights the U.S. Postal Inspection Service’ commitment to investigating and combating these kinds of schemes that are designed to defraud innocent victims no matter where they operate from,” said Antonio J. Gomez, Postal Inspector in Charge of the Miami Division.
According to the court record, Adrianzen partnered with a series of Peruvian call centers that contacted U.S. consumers, many of whom were elderly and vulnerable, using Internet-based telephone calls. These callers claimed to be attorneys or government representatives, and falsely told victims that they had failed to pay for or receive delivery of products. The callers also falsely threatened victims with court proceedings, negative marks on their credit reports, imprisonment, or immigration consequences if they did not immediately pay for the purportedly delivered products and settlement fees. Many victims made monetary payments based on these baseless threats. Adrianzen received the victims’ payments and shipped products to the victims for these call centers, knowing that they used fraudulent and extortionate means to extract money from vulnerable victims.
Trial Attorneys Phil Toomajian and Joshua Rothman of the Department of Justice’s Consumer Protection Branch are prosecuting the case. The U.S. Postal Inspection Service investigated the case and the U.S. Attorney’s Office of the Southern District of Florida has provided critical assistance.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past March the Department announced the largest elder fraud enforcement action in American history, charging more than 260 defendants in a nationwide elder fraud sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
California Brothers Indicted in Pittsburgh on Drug and Gun ChargesRead the Press Release
PITTSBURGH, PENNSYLVANIA - Two former residents of Los Angeles, California, have been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
The six-count Indictment named brothers Daveion Laron Texas Sanders, age 26, and Deandre Moses Sanders, age 34, formerly of Los Angeles, California, as the defendants.
According to the Indictment, on or about July 11, 2019, the defendants conspired to possess with intent to distribute and possessed with intent to distribute 500 grams or more of cocaine and quantities of mixtures and substances containing detectable amounts of oxymorphone. The Indictment further alleges that the defendants unlawfully possessed a machinegun and an unregistered firearm in furtherance of a drug trafficking crime. According to the Indictment, on that same date, Deandre Moses Sanders also possessed with intent to distribute quantities of mixtures and substances containing detectable amounts of cocaine and oxymorphone.
The law provides for a maximum total sentence of not less than five years and up to life in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, the Pennsylvania Office of the Attorney General and the Pennsylvania State Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Bergen County Woman Admits to Illegally Using Individuals’ Identities to Obtain More Than $300,000Read the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, woman today admitted engaging in a fraudulent scheme through which over $300,000 in purchases were charged or attempted to be charged to victims’ financial accounts without authorization, U.S. Attorney Craig Carpenito announced.
Briana Burford, 25, of Fort Lee, New Jersey, pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an information charging her with wire fraud.According to documents filed in the case and statements made in court:
From October 2018 through December 2018, Burford made four Bitcoin transactions. The Bitcoin were sent to accounts associated with carding websites, which are websites that engage in the trafficking of stolen or otherwise illegally obtained credit card, bank account and other personal identification information, as well as services and tools that one can use to engage in fraudulent activity.
The two telephone numbers used to make the four Bitcoin transactions, along with other telephone numbers, were used to inquire about bank accounts that were later compromised and subject to fraud. On Aug. 31, 2018, one of the telephone numbers was used to contact a bank and inquire about a specific bank account. Later that day, Burford, without authorization, charged a purchase of approximately $9,000 to that bank account.
The wire fraud count carries a maximum potential penalty of 20 years in prison and $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for March 4, 2020.
U.S. Attorney Carpenito credited special agents of U.S. Department of Homeland Security Investigations in Newark, under the direction of Special Agent in Charge Brian Michael, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
Defense counsel: Albert Y. Dayan Esq., Kew Gardens, New York
Baton Rouge, Louisiana Man Sentenced to 30 Months, $130,000 Restitution for Wire FraudRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Mike Douglas Nolan, age 59, of Baton Rouge, Louisiana, was sentenced to 30 months’ imprisonment and 3 years of supervised release for Wire Fraud, in violation of Title 18, United States Code, Section 1343. Nolan was also ordered to pay total restitution of $130,000.00. The charges arose from an investigation by the Federal Bureau of Investigation.
The Superseding Indictment alleged that from in or about June 2011, and continuing until in or about May 2012, the defendant devised and intended to devise, executed and attempted to execute, a scheme to obtain money by means of materially false and fraudulent pretenses, representations and promises.
United States Attorney Brian J. Kuester said, “The defendant’s fraudulent scheme deprived his victims of their hard earned income and savings. Today more than ever we must all be on the lookout for scam artists. The schemes may not all look the same, but fraudsters’ goals are – to steal as much money as they can from unsuspecting victims. In this case, the defendant was caught, is being held accountable, and will pay restitution. Unfortunately, often times the scammer’s identity cannot be ascertained and justice is not obtained. Our best defense is awareness and exercising extreme caution when someone is asking for you to give money or personal information.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Rob Wallace represented the United States.
Bank Insider and Two Others Arrested in Bank Bribery and Money Laundering ConspiracyRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced the arrest of VICTOR PHILLIPS, STEPHEN ODIBOH, and ANTHONY COLLIER for money laundering, money laundering conspiracy, and conspiracy to commit bank bribery. PHILLIPS, ODIBOH, and COLLIER were arrested in and around Atlanta, Georgia, and are expected to be presented this afternoon before U.S. Magistrate Judge Janet F. King in the Northern District of Georgia. Their case is assigned to U.S. District Judge J. Paul Oetken of the Southern District of New York.
U.S. Attorney Geoffrey S. Berman said: “As alleged, banker Victor Phillips conspired with two money launderers, Stephen Odiboh and Anthony Collier, to facilitate the laundering of what they all thought were the proceeds of criminal activity. Thanks to the FBI, all three are now in custody and facing serious criminal charges.”
FBI Assistant Director William F. Sweeney Jr. said: “It’s not bad enough that there are those who wish to launder money at the expense of other people and institutions, but when bank insiders join in to facilitate these transactions, it’s particularly troubling. This behavior won’t be tolerated, and the FBI will continue to investigate these illegal acts so long as criminals continue to conduct themselves in this way.”
According to the allegations in the Indictment unsealed today[1]:
Between at least June 2019 and September 2019, PHILLIPS, who is employed at an Atlanta-area branch of a national bank (“Bank-1”), opened bank accounts in the names of shell companies and fictitious persons in exchange for a percentage of the fraud proceeds laundered through the accounts. ODIBOH controlled one PHILLIPS-created account, and he and COLLIER agreed to launder $15,500 through it, hoping that this transaction that would be the first in a series laundering up to $2 million that they believed was stolen from a company by its employees. When the first payment arrived, they paid their bribe to PHILLIPS, divided a share for themselves, and returned half to the senders. In fact, the FBI sent the payment as part of a sting operation.
ODIBOH, 47, and COLLIER, 57, are each charged with one count of money laundering conspiracy and one count of money laundering, each of which carries a maximum punishment of 20 years in prison. ODIBOH, COLLIER, and PHILLIPS, 39, are each charged with one count of conspiracy against the United States, which carries a maximum punishment of five years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
The charges in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
Mr. Berman praised the outstanding investigative work of the FBI’s New York Money Laundering Investigation Squad.
This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Kiersten A. Fletcher, Jonathan E. Rebold, and Andrew A. Rohrbach are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Anchorage Sex Offender Arrested and Detained After Continued Child Exploitation Conduct While on House ArrestRead the Press Release
Alex AsinoAnchorage, Alaska – U.S. Attorney Bryan Schroder announced today that Alex Asino, 31, was arrested on Nov. 14, 2019, by the Federal Bureau of Investigation’s (FBI) Child Exploitation Task Force and was indicted by the Anchorage Grand Jury Wednesday, Nov. 20, in an eight count indictment alleging child sex trafficking, production and distribution of child pornography, and coercion and enticement of a minor.
In September of 2018, Asino was charged by the State of Alaska for delivering a controlled substance to a minor, sexual abuse of a minor, and possession of child pornography. He was subsequently released on bail and placed under house arrest. While on house arrest, Asino continued to engage in the sexual exploitation of children, according to a criminal complaint filed in this matter.
Per the complaint, Asino’s alleged conduct came to the attention of the FBI on Nov. 7, 2019. During online communications, Asino told an undercover law enforcement officer he had a sexual relationship with a 15-year-old female. Asino told the undercover law enforcement officer that he met the minor through a social media application. During his communications with the undercover officer, Asino sent images of the 15-year old victim’s body and face to the undercover officer, and then directed the undercover officer to a website where Asino had posted sexually explicit images of the victim. As a result of further investigation thus far, the FBI has identified one additional minor who was allegedly victimized by Asino.
According to the complaint, Asino would prey on his minor victims through online social media applications, such as, but not limited to, Snapchat, Tagged, and Whisper, and would meet minor females through pay dating websites. Asino allegedly distributed meth, cash, food, gifts, and cab fares to minors in exchange for sexual favors. Asino is also accused of posting images of child pornography and personal videos of sexual acts with minors on pornographic websites.
If the public has any further information regarding Asino’s activities,
please contact Anchorage FBI at (907) 276-4441.
The Federal Bureau of Investigation (FBI) and Anchorage Police Department (APD) as part of the FBI’s Child Exploitation Task Force conducted the investigation leading to the arrest in this case. This case is being prosecuted by Assistant U.S. Attorney Adam Alexander.