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19 November 2019
Former Warren County Man Sentenced to 14 Years in Prison for Receiving and Possessing Images of Child Sexual AbuseRead the Press Release
NEWARK, N.J. – A former Warren County, New Jersey, man was sentenced today to 168 months of prison for receiving and possessing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Derrick Baer, 36, formerly of Pohatcong, New Jersey, was convicted April 9, 2019, of one count of receiving child pornography and one count of possessing child pornography following a six-day trial before U.S. District Judge Claire C. Cecchi, who imposed the sentence today in Newark federal court.
According to documents filed in this case and the evidence at trial:
In May 2010, in connection with an investigation into a suspicious death at Baer’s residence, law enforcement obtained Baer’s consent to seize computer equipment from the residence. That equipment contained at least 348 images and 33 video files of child sexual abuse.
In addition to the prison term, Judge Cecchi sentenced Baer to lifetime supervised release.
U.S. Attorney Carpenito credited special agents of the FBI’s Child Exploitation Task Force, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the Pohatcong Township Police Department, under the direction of Chief Scott Robb; the N.J. Regional Computer Forensics Lab; and the Warren County Prosecutor’s Office, under the direction of Prosecutor Richard T. Burke, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney David W. Feder, Chief of the U.S. Attorney’s Office Cyber Crimes Unit in Newark.
Former Premium Point Investments Trader Jeremy Shor Sentenced to 40 Months in Prison Following Conviction at Trial for Securities Mismarking SchemeRead the Press Release
Audrey Strauss, the Attorney for the United States, Acting Under Authority Conferred by 28 U.S.C. § 515, announced that JEREMY SHOR, a former trader at Premium Point Investments L.P. (“PPI”), was sentenced to 40 months in prison in connection with his conviction following a jury trial for engaging in a securities mismarking scheme from 2014 to 2016. The jury convicted SHOR and Anilesh Ahuja, a/k/a “Neil,” the founder, chief executive officer, and chief investment officer of PPI, on securities fraud-related offenses relating to their participation in a scheme to inflate the net asset value (“NAV”) reported to investors for hedge funds managed by PPI by more than $100 million. SHOR was sentenced yesterday by U.S. District Judge Katherine Polk Failla, who presided over the six-week jury trial. Ahuja is scheduled to be sentenced by Judge Failla on November 25, 2019.
Ms. Strauss said: “Jeremy Shor, a former trader at Premium Point Investments L.P., was convicted by a federal jury for inflating the net asset value – a critical metric for investors – of funds under his management by more than $100 million. By doing so, Premium Point was able to charge higher management and performance fees, and hide its true financial health from investors. Had investors known the truth, they likely would have redeemed their investments. Shor’s prison sentence underscores the seriousness of his crimes and the need for honest, accurate reporting by financial institutions to their investors.”
According to the Indictment, evidence presented at trial, and court filings:
Premium Point Investments
In or about 2008, Ahuja co-founded PPI, where he was the chief executive officer and chief investment officer. PPI managed hedge funds focused primarily on structured credit products, including residential mortgage backed securities (“RMBS”). PPI’s flagship mortgage credit fund (the “Hedge Fund”) was launched in or about October 2009. A segregated ERISA fund held the same positions as the Mortgage Credit Fund. In 2013, PPI launched a new fund (the “New Issue Fund”) that purchased and securitized pools of mortgages that were not issued or guaranteed by a government agency. At various relevant times between 2008 and 2016, PPI managed billions in assets. SHOR was employed by PPI as a trader, where he focused on non-agency RMBS – i.e., RMBS securities that were not issued by a government agency.
The Scheme to Mismark Securities
From at least in or about 2014 through at least in or about 2016, Ahuja and SHOR participated in a scheme to defraud PPI’s investors and potential investors in the Hedge Fund and the New Issue Fund by deceptively mismarking each month the value of certain securities held in these funds, and thus fraudulently inflating the NAV of those funds as reported to investors and potential investors.
PPI fraudulently obtained inflated quotes, including from corrupt brokers, and manipulated its valuation process to inflate the purported value of securities held by the funds. The effect of the mismarking scheme was to materially overstate the reported NAV – at times by more than $100 million across the funds managed by PPI. This benefited PPI in at least two ways. First, PPI was able to charge its investors higher management and performance fees. Second, PPI was able to forestall redemptions by investors who would have requested a return of their funds had they known PPI’s true performance and operating health.
The mismarking scheme evolved as a result of demands by Ahuja that PPI maintain its track record of success and keep pace with the performance of peer funds, regardless of market conditions or the actual performance of the funds. To achieve the goal of posting competitive returns, Ahuja, along with another partner, set an inflated “target” return for the Hedge Fund and New Issue Fund at the end of each month, which was at times based in part on the performance of peer funds. The traders at PPI were then tasked with “reverse engineering” marks to meet the “targets.”
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As part of the sentence imposed by Judge Failla, SHOR, 48, of New York, New York, was further sentenced to 3 years of supervised release.
Ms. Strauss praised the work of the Federal Bureau of Investigation, and thanked the Securities and Exchange Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Andrea M. Griswold, Joshua A. Naftalis, and Max Nicholas are in charge of the prosecution.
Former Lake Charles Police Officer Sentenced to 18 Months in Federal Prison for Civil Rights ViolationRead the Press Release
LAKE CHARLES, La. – A former Lake Charles Police Department officer was sentenced today in federal court for using unreasonable excessive force during an arrest, announced David C. Joseph, United States Attorney for the Western District of Louisiana, Assistant Attorney General Eric Dreiband of the Department of Justice’s Civil Rights Division, and FBI’s New Orleans Field Office Special Agent in Charge Bryan A. Vorndran.
Robert Hammac, 44, of Lucedale, Mississippi, was sentenced by U.S. District Judge James D. Cain Jr. to 18 months in federal prison followed by one year of supervised release. Hammac pleaded guilty on August 15, 2019 to one count of deprivation of rights under color of law.
According to court documents, Hammac was involved in a vehicle pursuit on May 8, 2017, for several miles. The car was brought to a stop, and the victim, identified in court documents as G.T., raised his hands in the air in a manner indicating surrender. Other officers then ordered G.T. out of the car and began pulling him out of the car. Hammac ran to the front passenger side door, opened it, grabbed G.T. before he could exit, pulled him back into the car, and repeatedly punched G.T.’s head with a closed fist. The victim was not resisting in any way or posing a threat.
“Law enforcement officers put their lives on the line every day to keep us safe and we at the Department of Justice have their backs,” said U.S. Attorney David C. Joseph. “However, those officers who betray the badge and the public’s trust, as the defendant did here, dishonor their profession and endanger the safety of their fellow officers. We will not tolerate police brutality in the Western District of Louisiana.”
“Officers who deprive individuals of their civil rights will not be tolerated,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “The Department of Justice is committed to upholding and defending the constitutional rights of victims, as shown by today’s sentencing.”
“The judge's decision today reinforces the FBI's commitment that civil rights and color of law violations will not be tolerated,” said Special Agent in Charge Bryan A. Vorndran of the FBI New Orleans Field Office. “Former Lake Charles Officer Robert Hammac abused his position of trust and the authority handed-down to him to protect the members of the public. Law enforcement officers and correctional officers acting under the color of law must ensure a person's civil rights are not violated. The FBI New Orleans Field Office, along the U.S. Attorney’s Office, will continue to uphold the constitution and protect the rights of all persons within U.S. territories.”
The FBI conducted the investigation. Assistant U.S. Attorney Jamilla Bynog of the Western District of Louisiana and Trial Attorney Mary J. Hahn of the Civil Rights Division prosecuted the case.
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Former Lake Charles Police Officer Sentenced to 18 Months in Federal Prison for Civil Rights ViolationRead the Press Release
A former Lake Charles Police Department officer was sentenced today in federal court for using unreasonable excessive force during an arrest.
Robert Hammac, 44, of Lucedale, Mississippi, was sentenced by U.S. District Judge James D. Cain Jr. to 18 months in federal prison followed by one year of supervised release. Hammac pleaded guilty on Aug. 15, 2019 to one count of deprivation of rights under color of law.
“Officers who deprive individuals of their civil rights will not be tolerated,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “The Department of Justice is committed to upholding and defending the constitutional rights of victims, as shown by today’s sentencing.”
“Law enforcement officers put their lives on the line every day to keep us safe and we at the Department of Justice have their backs,” said U.S. Attorney David C. Joseph for the Western District of Louisiana. “However, those officers who betray the badge and the public’s trust, as the defendant did here, dishonor their profession and endanger the safety of their fellow officers. We will not tolerate police brutality in the Western District of Louisiana.”
“The judge's decision today reinforces the FBI's commitment that civil rights and color of law violations will not be tolerated,” said Special Agent in Charge Bryan A. Vorndran of the FBI New Orleans Field Office. “Former Lake Charles Officer Robert Hammac abused his position of trust and the authority handed-down to him to protect the members of the public. Law enforcement officers and correctional officers acting under the color of law must ensure a person's civil rights are not violated. The FBI New Orleans Field Office, along the U.S. Attorney’s Office, will continue to uphold the constitution and protect the rights of all persons within U.S. territories.”
According to court documents, Hammac was involved in a vehicle pursuit on May 8, 2017, for several miles. The car was brought to a stop, and the victim, identified in court documents as G.T., raised his hands in the air in a manner indicating surrender. Other officers then ordered G.T. out of the car and began pulling him out of the car. Hammac ran to the front passenger side door, opened it, grabbed G.T. before he could exit, pulled him back into the car, and repeatedly punched G.T.’s head with a closed fist. The victim was not resisting in any way or posing a threat.
The FBI conducted the investigation. Assistant U.S. Attorney Jamilla Bynog of the Western District of Louisiana and Trial Attorney Mary J. Hahn of the Civil Rights Division prosecuted the case.
Former Jacksonville, Oregon Residents Sentenced for Interstate Distribution of Marijuana, Money LaunderingRead the Press Release
PORTLAND, Ore.—Two former Jacksonville, Oregon residents were sentenced today in federal court for their roles in a conspiracy to traffic marijuana grown in Southern Oregon to Georgia, Illinois, and North Carolina, and launder the proceeds.
Alex David Koplin, 34, was sentenced to 31 months in federal prison and three years’ supervised release and Tina Marie Waterfield, 38, was sentenced to 5 years of probation.
According to court documents, in approximately 2011, Koplin moved from Georgia to Oregon to work in the marijuana industry. Within a few years, he purchased property in Jackson County, Oregon and started a marijuana farm. Koplin worked with other marijuana growers to combine harvests, broker sales, and transport marijuana from Oregon to other states. Between November 2014 and June 2016, Koplin coordinated the sale and interstate transport of approximately 260 kilograms of marijuana.
While investigating the interstate trafficking conspiracy, authorities discovered Waterfield, Koplin’s then-girlfriend, was receiving thousands of dollars in out-of-state payments to her PayPal account. Investigators later learned that Waterfield unlawfully manufactured, sold, and shipped marijuana edibles to East Coast customers and laundered the proceeds in an attempt to conceal their source. Between 2013 and 2016, Waterfield’s bank accounts showed approximately $494,000 in unexplained deposits.
In April 2017, investigators executed a federal search warrant on Koplin and Waterfield’s residence and seized marijuana plants; unprocessed cut marijuana; butane honey oil, a cannabis extract; and $44,226 in U.S. currency.
On August 19, 2019, both defendants pleaded guilty to one count of conspiracy to commit money laundering. Koplin also pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute a controlled substance.
As part of his plea agreement, Koplin agreed to pay $150,000 to satisfy a forfeiture money judgment. Waterfield agreed to forfeit the $44,226 in U.S. currency seized from the residence she shared with Koplin.
This case was investigated by the U.S. Drug Enforcement Administration (DEA), IRS-Criminal Investigation (IRS-CI), Homeland Security Investigations (HSI), and Medford Police Department. It was prosecuted by Steven T. Mygrant and Julia E. Jarrett, Assistant U.S. Attorneys for the District of Oregon.
This case was brought as part of the Justice Department’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the department’s strategy for reducing the availability of drugs in the U.S. OCDETF was established in 1982 to mount a comprehensive attack on drug trafficking by disrupting and dismantling major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in coordination with state and local law enforcement.
Former Georgia Youth Softball Umpire Pleads Guilty in Child Sexual Exploitation CaseRead the Press Release
MACON, Ga.— A former youth softball umpire arrested during “Operation End Game,” a multi-agency effort targeting and arresting adult perpetrators seeking sex with children, entered a guilty plea in federal court this morning, said Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. James Hughes Morriss, 50, of Dacula, Georgia entered a guilty plea before Judge C. Ashley Royal in U.S. District Court to one count of use of facilities in interstate and foreign commerce to transmit information about a minor. Defendant Morriss is currently in federal custody and faces a maximum five years’ imprisonment, a $250,000 fine and at least three years supervised release. Sentencing is scheduled for February 12, 2020. There is no parole in the federal system.
“Law enforcement’s effort to end child sexual exploitation in Georgia is unceasing, and is happening at every level. We are working with our law enforcement partners to investigate and arrest adults seeking to sexually abuse children, and we will prosecute these offenders to the fullest extent allowed by law,” said U.S. Attorney Charlie Peeler. “I want to commend the leadership of the GBI in this coordinated effort to end crimes against children, as well as the FBI and the Athens-Clarke County Police Department, both of which are invaluable partners in Operation End Game. This operation is a perfect example of what federal, state and local law enforcement can accomplish when we all come together.”
“Operation End Game did exactly what it was tasked to do: Put an end to criminal attempts of predators to irreversibly harm young children,” said Debbie Garner, GBI Special Agent in Charge and Commander of the Georgia Internet Crimes Against Children (ICAC) Task Force. “The GBI and the Georgia ICAC Task Force will work tirelessly with our partners to protect our children against those who seek to harm them.”
“The ACCPD is proud to partner with the FBI, GBI and other federal, state and local area law enforcement agencies in these continuing efforts to identify and apprehend those who prey on our most vulnerable victims,” said Athens-Clarke County Police Department (ACCPD) Chief Cleveland Spruill. “Thanks to this coordinated three-day effort, multiple predators have been removed from our streets and are no longer free to victimize our children.”
“This case is an example of the importance of our law enforcement partnerships in our efforts to rid our communities of those who would choose to do harm to the most vulnerable in our society,” said Special Agent in Charge of FBI Atlanta, Chris Hacker. “Those who prey on our children must be held accountable to send a message that this behavior will not be tolerated.”
“Operation End Game” was a three-day proactive effort centered in Athens, Georgia beginning July 25, 2019 to arrest adults communicating with children on-line and then traveling to meet them for the purpose of having sex. On July 26, 2019, an undercover officer communicating with perpetrators online under a profile named “Lizzie” with a photo of a young girl, received notification in the mobile application Skout from an individual later identified as Defendant Morriss. Within the first few exchanges, Defendant Morriss, who was 49 at the time, asked “Lizzie” her age and was told she was only 14-years-old and attended a school in Georgia. Defendant Morriss, familiar with many schools in Georgia due to his work around the state as a youth softball umpire, recognized the named school. Defendant Morris initiated a sexually explicit discussion and suggested an in-person meeting with the child; he also requested and received photos of the purported 14-year-old. Morriss then traveled to meet the 14-year-old child in Athens for sexual purposes, and was arrested at the designated meeting place shortly after midnight on July 27, 2019.
The case was investigated by the U.S. Attorney’s Office for the Middle District of Georgia, the Georgia Internet Crimes Against Children (ICAC) Task Force, the Georgia Bureau of Investigation’s Child Exploitation and Computer Crimes Unit (CEACC), the Athens-Clarke County Police Department (ACCPD), the FBI and the Athens-Clarke County District Attorney’s Office. Assistant U.S. Attorney Lyndie Freeman is 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.
Former CEO of New Haven County Credit Union Sentenced for Bank Fraud OffenseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JAMES FARRELL, 55, of, East Haven, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to approximately one day of imprisonment, time already served, and two years of supervised release, for defrauding the New Haven County Credit Union. Judge Underhill also ordered Farrell to perform 50 hours of community service.
According to court documents and statements made in court, Farrell was the Chief Executive Officer of the New Haven County Credit Union (“NHCCU”) from approximately 1992 to June 2015. He was then retained by NHCCU’s Board of Directors to provide assistance to the new CEO of NHCCU until March 2016. From 2010 until 2016, Farrell also provided financial and bookkeeping services to The Rib House, a restaurant located in East Haven. The Rib House maintained a business account at NHCCU, and Farrell was primarily responsible for depositing cash sales and paying invoices for the restaurant. In pleading guilty, Farrell admitted that he defrauded NHCCU by transferring funds from NHCCU’s general ledger account to the account held by The Rib House.
As part of the scheme, when Farrell knew that The Rib House had a financial obligation it could not meet, he transferred funds from the NHCCU general ledger account into The Rib House account. This allowed The Rib House to pay its operating costs, including paying for taxes, food, liquor and other operating expenses. Between July 2011 and March 2016, Farrell fraudulently transferred $602,908.96 from the NHCCU general ledger account primarily to The Rib House account and, to a lesser extent, for his personal benefit. Over time, Farrell replenished $370,278.18 to the NHCCU general ledger account, leaving a shortfall of $232,630.78.
Farrell has paid full restitution to NHCCU.
On August 28, 2019, Farrell pleaded guilty to one count of bank fraud.
This investigation was conducted by the Federal Bureau of Investigation and the case was prosecuted by Assistant U.S. Attorney Ray Miller.
Drug Trafficker with Ties to Sinaloa Cartel Sentenced to over 17 Years in Federal PrisonRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that Jaime Montalvo-Mariscal, age 27, of Pasco, Washington, was sentenced November 18, 2019 after having pleaded guilty on July 22, 2019, to Conspiracy to Distribute and Possess with the Intent to Distribute 50 grams or more of Actual Methamphetamine, 400 grams or more of Fentanyl and 1 Kilogram or more of Heroin. Senior United States District Judge Nielsen sentenced Montalvo-Mariscal to a 210-month term of imprisonment, to be followed by a 5-year term of court supervision should Montalvo be allowed to return to the United States.
According to information disclosed during court proceedings, Montalvo-Mariscal was a member of a substantial drug trafficking organization (DTO) with direct ties to the Sinaloa cartel. During the investigation, the U.S. Drug Enforcement Administration (DEA) seized over 40 pounds of methamphetamine, 5 pounds of heroin, approximately 40,000 counterfeit pharmaceutical pills laced with fentanyl (known on the street as “fake oxys” because they are designed to look like brand-name oxycodone pills), a cache of firearms and multiple rounds of ammunition. The investigation revealed that the DTO shipped this quantity of drugs to Eastern Washington on a bi-weekly basis. Montalvo-Mariscal’s role in the DTO included collecting cash proceeds from drug trafficking. During one two-month period, Montalvo collected drug proceeds exceeding $700,000, which he then sent the DTO’s leadership in Sinaloa, Mexico.
The quantity of Fentanyl-laced pills seized during this investigation represented one of the largest seizures of its kind in the Eastern District of Washington. Fentanyl is largely responsible for the increase in drug overdoses and deaths in the community. Based upon targeted investigations by the DEA, Tri-Cities FBI Safe Streets Task Force and the United States Attorney’s Office for the Eastern District of Washington, law enforcement was able to identify, arrest and prosecute multiple Fentanyl distributors like Montalvo who were supplying distributors between 2500 and 5000 pills per week in this area.
During sentencing proceedings, Senior Judge Nielsen described fentanyl as the most dangerous and insidious drug in the community. While recognizing that Mr. Montalvo-Mariscal had no previous criminal history, Senior Judge Nielsen emphasized the importance of deterrence in imposing sentence, given the staggering quantity of drugs involved and the horrific impact those drugs have on the community.
United States Attorney Hyslop said, “Counterfeit pharmaceutical pills laced with fentanyl that are intentionally made by drug trafficking organizations to look like oxycodone create a very serious risk to the health and safety of the community. Targeting those who manufacture and distribute fentanyl-laced pills is a high priority and an essential part of attacking the opioid addiction crisis in our community. This is an incredibly dangerous drug; taking one pill can kill a person. The United States Attorney’s Office for the Eastern District of Washington intends on prosecuting every fentanyl distribution case that can be proved. I commend the outstanding efforts of the DEA, FBI and our state and local law enforcement partners who investigated this case.”
DEA Special Agent in Charge Keith Weis was pleased with the sentencing further adding that “Opioid abuse is spreading like wildfire devastating our communities and we will aggressively pursue those most responsible for fueling the flames.”
Today’s enforcement action is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The OCDETF program provides supplemental federal funding to the federal and state agencies involved in the investigation of drug-related crimes. This OCDETF investigation is being conducted by the Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case was investigated by the Drug Enforcement Administration Tri Cities Task Force in partnership with the Kennewick, Pasco and Richland Police Departments. This case was prosecuted by Stephanie Van Marter, an Assistant United States Attorney for the Eastern District of Washington.
Disgraced drug doctor's street-level dealer sentenced to federal prisonRead the Press Release
SAVANNAH, Ga: A man who admitted providing phony patients to a disgraced physician in a scheme to obtain opioids for illicit street sales has been sentenced to federal prison.
Zachary Lusk, 40, of Plainville, Ga., was sentenced by U.S. District Court Judge William T. Moore Jr. to 40 months in prison after pleading guilty to Conspiracy to Possess with Intent to Distribute and to Distribute Controlled Substances (Schedule IV), said Bobby L. Christine, United States Attorney for the Southern District of Georgia.
After completion of his sentence, Lusk will spend three years on supervised release. There is no parole in the federal system.
As described in court documents and testimony, Lusk admitted providing lists of individuals to Dr. Johnny Di Blasi, a physician who operated clinics in Pooler, Ga., and Braselton, Ga. Di Blasi wrote prescriptions for opioids and other controlled substances, including Oxycodone and Alprazolam, which Lusk would have filled at pharmacies. Lusk sold the pills for cash and shared the proceeds with Di Blasi.
Some of these prescriptions were written to several individuals Lusk brought to meet with Di Blasi at a restaurant where, during an “oxycodone breakfast,” Di Blasi provided illegitimate prescriptions to the group.
Di Blasi is serving a 33-month federal sentence after pleading guilty to pleading guilty to Conspiracy to Unlawfully Dispense Controlled Substances (Oxycodone).
“With ‘Dr. Johnny’ providing access to addictive opioids, Zachary Lusk operated a lucrative business as a street-level drug dealer,” said Southern District of Georgia U.S. Attorney Bobby L. Christine. “They’ve both exchanged that ‘easy money’ for their freedom as they are held accountable for fueling the deadly opioid crisis.”
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division stated, “This case was made possible because of spirited cooperation between DEA, its law enforcement partners and the subsequent prosecution by the U.S. Attorney’s Office. Zachary Lusk lined his pockets off the backs of addicts strung out on prescription medication. Consequently, he can no longer fuel the opioid crisis by feeding prescription pill seekers, but instead, will join his disgraced co-conspirator Dr. Johnny Di Blasi by spending well-deserved time in prison.”
The case was investigated by the Drug Enforcement Administration (DEA) and the Chatham-Savannah Counter Narcotics Team (CNT), with assistance from the U.S. Marshals Service. Assistant U.S. Attorneys Matthew Josephson, J. Thomas Clarkson and Jonathan Porter prosecuted the case for the United States.
Correctional Officers Charged with Falsifying Records on August 9th and 10th at the Metropolitan Correctional CenterRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Guido Modano, Special Agent in Charge of the Department of Justice Office of the Inspector General, New York Field Office (“DOJ OIG”), and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an indictment charging federal correctional officers TOVA NOEL and MICHAEL THOMAS with making false records and conspiring to make false records and to defraud the United States by impairing the lawful functions of the Metropolitan Correctional Center (“MCC”), a Manhattan detention facility that houses federal inmates. NOEL and THOMAS surrendered this morning. The case is assigned to Southern District of New York U.S. District Judge Analisa Torres.
U.S. Attorney Geoffrey S. Berman said: “As alleged, the defendants had a duty to ensure the safety and security of federal inmates in their care at the Metropolitan Correctional Center. Instead, they repeatedly failed to conduct mandated checks on inmates, and lied on official forms to hide their dereliction.”
DOJ OIG Special Agent in Charge Guido Modano said: “Correctional Officers swear an oath to carry out their duties. Completing rounds to verify inmate counts and certifying the accuracy of logs are important tasks to ensure the safety and security of institutions and the wellbeing of inmates. Those who shirk their duties but falsely state they have completed them place the institution, fellow employees, inmates, and the public at risk.”
FBI Assistant Director William F. Sweeney Jr. said: “Security protocols are in place to protect the public, fellow officers and inmates being held in the MCC. We allege these officers falsified records to create the appearance they were following those protocols. The security risks created by this type of behavior are immense. The message here is simple - citizens place their trust in those who have taken an oath to serve and protect the public, and when that trust is deliberately violated by public servants, who instead choose to break those regulations, then they will be held accountable.”
According to the Indictment[1] filed today in Manhattan federal court:
On August 10, 2019, NOEL and THOMAS repeatedly failed to complete mandated counts of prisoners under their watch in the MCC’s Special Housing Unit (“SHU”). Instead, for substantial portions of their shifts, NOEL and THOMAS sat at their desk, browsed the internet, and moved around the common area of the SHU. To conceal their failure to perform their duties, NOEL and THOMAS repeatedly signed false certifications attesting to having conducted multiple counts of inmates that they did not do. As a result of those false statements, the MCC believed prisoners in the SHU were being regularly monitored when, in fact, as a result of the defendants’ conduct, no correctional officer conducted any count or round of the SHU from approximately 10:30 p.m. on August 9 until approximately 6:30 a.m. on August 10, at which time, NOEL and THOMAS discovered the body of MCC inmate Jeffrey Epstein, who had committed suicide overnight while unobserved.
Background on Relevant Individuals & Entities
The MCC is a federal administrative detention facility located in Manhattan that is run by the Federal Bureau of Prisons. The MCC employs correctional officers, whose primary duty is to ensure the care, custody, and control of the inmate population of the MCC. NOEL has been employed as a correctional officer at the MCC since approximately 2016, and THOMAS has been employed as a correctional officer at the MCC since approximately 2007. Both NOEL and THOMAS were regularly assigned to work shifts in the SHU at the MCC.
Correctional officers assigned to guard inmates in the SHU – and throughout the MCC – are required to conduct institution-wide counts of inmates at regular, scheduled intervals to ensure that each inmate is alive and accounted for within the MCC. Two officers are required to complete the institutional count for each housing unit, including the SHU, and are further required to document their performance of the count on an official MCC form called a count slip. In addition to the institutional count, MCC correctional officers assigned to the SHU are required to complete rounds every thirty minutes to ensure that each inmate is alive and accounted for within his cell. Correctional officers working in the SHU are required to complete a form documenting the date and time of each 30-minute round in each area of the SHU.
On July 6, 2019, Epstein was arrested and detained at the MCC on sex trafficking charges, and was subsequently assigned to the SHU due to risk factors for suicidality and safety concerns. After an apparent suicide attempt on July 23, 2019, Epstein was transferred to suicide watch and then psychological observation. Upon being moved back to the SHU on July 30, 2019, the MCC took steps to guard against future suicide attempts by Epstein, including by assigning Epstein to the cell closest to the correctional officers’ desk. Conducting the required institutional counts and thirty-minute rounds in the SHU were also part of the MCC’s procedures for ensuring the safety of inmates, including Epstein.
The Events of August 9-10, 2019
On August 9, 2019, NOEL was assigned to work in the SHU from 4:00 p.m. on August 9, 2019, to 8:00 a.m. on August 10, 2019. THOMAS was assigned to work with NOEL in the SHU from 12:00 a.m. until 8:00 a.m. on August 10, 2019. From 4:00 p.m. on August 9 to 8:00 a.m. on August 10, the officers on duty in the SHU, including NOEL and THOMAS, were responsible for conducting five institutional counts at 4:00 p.m. and 10:00 p.m. on August 9, and at 12:00 a.m., 3:00 a.m., and 5:00 a.m. on August 10. NOEL and THOMAS were also responsible for completing forms attesting to the completion of each of those counts. In fact, NOEL, and then NOEL and THOMAS, repeatedly failed to complete mandated counts in the SHU. Instead for substantial portions of their 12:00-8:00 a.m. shifts, NOEL and THOMAS sat at their desk, browsed the internet, and moved around the common area of the SHU. During that time period, NOEL and THOMAS were the only correctional officers assigned to the SHU. Aside from two other officers who briefly visited the common area of the SHU, as confirmed by video surveillance, no one else entered the SHU, no one conducted any counts or rounds throughout the night, and no one entered the area in which Epstein was housed.
To conceal their failure to complete their duties, NOEL signed false certifications attesting to having conducted counts of inmates at 4:00 p.m. and 10:00 p.m., and NOEL and THOMAS signed false certifications attesting to having conducted counts of inmates at 12:00 a.m., 3:00 a.m., and 5:00 a.m. when, in truth and in fact, they never conducted such counts. As a result of those false reports, the MCC believed prisoners in the SHU were being regularly monitored and accounted for when, in fact, no correctional officer conducted any count or round of the SHU from approximately 10:30 p.m. on August 9 until approximately 6:30 a.m. on August 10, at which time, NOEL and THOMAS discovered the body of Epstein, who had committed suicide by hanging himself earlier that morning while unobserved.
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NOEL, 31, and THOMAS, 41, are each charged with one count of conspiring to defraud the United States by impairing, obstructing, and defeating the lawful functions of the MCC, and to make false records, which carries a maximum sentence of five years in prison. NOEL is also charged with five counts of making false records, and THOMAS is also charged with three counts of making false records, each of which carries a maximum sentence of five years in prison.
The statutory maximum and mandatory penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by the judge.
Mr. Berman praised the outstanding investigative work of the Office of the Inspector General, the FBI, and the New York City Police Department.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Rebekah Donaleski and Nicolas Roos are in charge of the prosecution.
The charges contained in the Indictment are merely accusations. 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 therein should be treated as an allegation.
Convicted Felon Gets 20 Years for Drug, Firearms ViolationsRead the Press Release
WICHITA, KAN. – A convicted felon who was arrested with firearms and drugs after fleeing from Salina police was sentenced today to 20 years in federal prison, U.S. Attorney Stephen McAllister said.
Jason Briscoe, 42, Minneapolis, Kan., was convicted during a jury trial in May on one count of possession with intent to distribute methamphetamine (count one), one count of brandishing a firearm in furtherance of drug trafficking (count two), one count of unlawful possession of a firearm in furtherance of drug trafficking (count three), two counts of unlawful possession of a firearm by a felon (counts four and five), and four counts of unlawful possession of ammunition by a felon (counts six, seven, eight and nine).
According to court records, officers of the Salina Police Department encountered Briscoe while they were conducting surveillance of the Red Coach hotel. When police stopped Briscoe’s car, Briscoe ran from the car carrying a handgun in his right hand. During the chase, Briscoe dropped the gun and a bag that contained methamphetamine and a second firearm.
McAllister commended the Salina Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Matt Treaster for their work on the case.
This case was prosecuted as part of Project Safe Neighborhoods, a Justice Department initiative aimed at reducing gun violence.
Columbus man admits to role in drug distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Michael Anthony Hill, Jr., of Columbus, Ohio, has admitted to his role in a drug distribution operation, U.S. Attorney Bill Powell announced.
Hill, also known as “Big Mike,” age 24, pled guilty to one count of “Aiding and Abetting Distribution of 50 Grams or More of Methamphetamine.” Hill admitted to distributing more than 50 grams of methamphetamine, also known as “crystal” and “ice,” in November 2018 in Gilmer County.
Hill faces at least 10 years and up to life incarceration and a fine of up to $10,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The Mountain Lakes Drug & Violent Crimes Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Cohoes Man Sentenced for Conspiring to Steal Political Campaign ContributionsRead the Press Release
BINGHAMTON, NEW YORK – Ralph V. Signoracci, IV, age 44, of Cohoes, New York, was sentenced today to serve a one-year term of probation and 100 hours of community service after previously pleading guilty to conspiring with Cohoes Mayor Shawn Morse to defraud Morse’s supporters by stealing campaign contributions for Morse’s personal benefit.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Signoracci, while a member of the City of Cohoes Common Council and then an Albany County Legislator, served as treasurer of a political committee called “Friends of Shawn Morse,” from approximately November 2013 through January 2019. He also served as treasurer of the political action committee “The Chairman’s PAC.”
In pleading guilty to wire fraud conspiracy, Signoracci admitted that he and Morse solicited and received contributions to the committees. Signoracci, at Morse’s direction, withdrew funds from the committees’ bank accounts so that Morse could use the funds to pay for his personal expenses, including vacations, entertaining, dining, and home repairs. Signoracci also admitted to illegally using contributions made to The Chairman’s PAC to directly benefit Morse’s 2015 mayoral campaign.
Signoracci admitted that on behalf of Morse, he concealed the nature of these expenditures by falsely reporting the purpose of the expenditures or by not reporting or disclosing them on campaign disclosure reports, as was required of local candidates for public office.
Morse pled guilty to wire fraud in August; his sentencing is scheduled for January 7, 2020 in Albany.
This case was investigated by the FBI, and was prosecuted by former Assistant U.S. Attorney Megan Kinsella Kistler and Assistant U.S. Attorney Dan Hanlon.
Clairton Man Sentenced to 5 Years in Prison for January 2019 RobberiesRead the Press Release
PITTSBURGH, Pa. - A resident of Clairton, Pennsylvania, has been sentenced in federal court to 5 years imprisonment and 3 years supervised release, and was ordered to pay $4,000 in restitution, on his conviction of Interference with Commerce by Robbery and Bank Robbery, United States Attorney Scott W. Brady announced today.
United States District Judge Marilyn J. Horan imposed the sentence on Richard D. Parrish, age 41, formerly of Clairton, Pennsylvania.
According to the information present to the court, Parrish robbed the Dollar General store on Route 51 in Jefferson Hills on January 5, 2019, and then robbed the Dollar Bank on Route 51 in Pleasant Hills on January 7, 2019.
Assistant United States Attorney Shaun E. Sweeney prosecuted this case on behalf of the government.
The U.S. Attorney commended the Federal Bureau of Investigation, the Pleasant Hills Police and the Jefferson Hills Police for the investigation leading to the successful prosecution of Richard D. Parrish.
Chicago Man Charged with Attempting to Provide Material Support to ISISRead the Press Release
A Chicago, Illinois, man has been arrested on a federal complaint charging him with attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS). The complaint and arrest were announced by John C. Demers, Assistant Attorney General for National Security at the U.S. Department of Justice John R. Lausch Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI.
Thomas Osadzinski, 20, was arrested Monday, November 18, in Chicago. A criminal complaint charges him with one count of attempting to provide material support and resources to a foreign terrorist organization. Osadzinski appeared today before U.S. Magistrate Judge Jeffrey Cole in Chicago and was ordered held without bond. A detention hearing was scheduled for Friday, Nov. 22, 2019, at 9:30 a.m.
Osadzinski is a U.S. citizen who resides in Chicago. The complaint alleges that Osadzinski designed a process that uses a computer script to make ISIS propaganda more conveniently accessed and disseminated by users on a social media platform. Osadzinski earlier this year shared his script – and instructions for how to use it – with individuals whom he believed to be ISIS supporters and members of pro-ISIS media organizations, the complaint states. Unbeknownst to Osadzinski, the individuals were actually covert FBI employees and a person confidentially working with law enforcement, according to the complaint.
ISIS and its supporters disseminate the terror group’s propaganda materials online to as wide an audience as possible in order to recruit fighters and inspire violence against the United States and other countries. Social media platforms routinely remove ISIS media content due to the violent nature of the materials. According to the complaint, Osadzinski’s computer process would automatically copy and preserve ISIS media postings in an organized format, allowing social media users to continue to conveniently access and disseminate the content.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The material support charge is punishable by up to 20 years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The case was investigated by the Chicago Joint Terrorism Task Force, which is comprised of federal, state and local law enforcement agencies. The government is represented by Assistant U.S. Attorneys Barry Jonas, Melody Wells and Tiffany Ardam of the Northern District of Illinois, and Alexandra Hughes, Trial Attorney of the National Security Division’s Counterterrorism Section.
Chicago Man Charged with Attempting to Provide Material Support to ISISRead the Press Release
CHICAGO — A Chicago man has been arrested on a federal complaint charging him with attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS).
THOMAS OSADZINSKI, 20, was arrested Monday in Chicago. A criminal complaint charges him with one count of attempting to provide material support and resources to a foreign terrorist organization. Osadzinski appeared today before U.S. Magistrate Judge Jeffrey Cole in Chicago and was ordered held without bond. Judge Cole scheduled a detention hearing for Friday at 9:30 a.m.
The complaint and arrest were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; John C. Demers, Assistant Attorney General for National Security at the U.S. Department of Justice; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI. The case was investigated by the Chicago Joint Terrorism Task Force, which is comprised of federal, state and local law enforcement agencies. The government is represented by Assistant U.S. Attorneys Barry Jonas, Melody Wells and Tiffany Ardam of the Northern District of Illinois, and Alexandra Hughes, Trial Attorney of the National Security Division’s Counterterrorism Section.
Osadzinski is a U.S. citizen who resides in Chicago. The complaint alleges that Osadzinski designed a process that uses a computer script to make ISIS propaganda more conveniently accessed and disseminated by users on a social media platform. Osadzinski earlier this year shared his script – and instructions for how to use it – with individuals whom he believed to be ISIS supporters and members of pro-ISIS media organizations, the complaint states. Unbeknownst to Osadzinski, the individuals were actually covert FBI employees and a person confidentially working with law enforcement, according to the complaint.
ISIS and its supporters disseminate the terror group’s propaganda materials online to as wide an audience as possible in order to recruit fighters and inspire violence against the United States and other countries. Social media platforms routinely remove ISIS media content due to the violent nature of the materials. According to the complaint, Osadzinski’s computer process would automatically copy and preserve ISIS media postings in an organized format, allowing social media users to continue to conveniently access and disseminate the content.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The material support charge is punishable by up to 20 years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Chester County Man Pleads Guilty to Drug TraffickingRead the Press Release
PITTSBURGH, PA – A resident of Phoenixville, Pennsylvania, pleaded guilty in federal court to charges related to drug trafficking, United States Attorney Scott W. Brady announced today.
Eric Vanderslice, age 40, pleaded guilty to two counts before Senior United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that the Greater Pittsburgh Safe Streets Task Force conducted a long-term investigation of drug trafficking in the Western District of Pennsylvania. In April of 2019, investigators obtained authorization for the interception of wire and electronic communications over a telephone operated by another member of the conspiracy, which continued through May of 2019.
Based in part upon intercepted communications, on May 24, 2019, law enforcement established surveillance in the vicinity of an apartment on Covode Street in Pittsburgh, which had been identified by investigators as a large-scale marijuana stash house. While conducting surveillance, law enforcement officials observed a Dodge Ram operated by Vanderslice pull into the driveway of the apartment, several individuals unload boxes into the apartment and then load additional boxes into the Dodge Ram. Investigators executed federal search warrants on the vehicle and the apartment, and seized $469,475 from the Dodge Ram, over 400 pounds of marijuana and an additional $5,012 from the apartment.
Judge Schwab scheduled sentencing for April 28, 2020 at 9:00 AM. The law provides for a maximum sentence of not less than five and not more than 40 years in prison, a fine of not more than $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Pursuant to the court’s previous order, Vanderslice remains under home detention pending sentencing.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Drug Enforcement Administration, Bureau of Alcohol Tobacco Firearms and Explosives, United States Marshals Fugitive Task Force, Allegheny County Sheriff’s Office, Allegheny County Police Department, Pennsylvania State Police, Pennsylvania Attorney General’s Office Bureau of Narcotics, and the Pittsburgh Bureau of Police. Other assisting agencies include the Monroeville Police Department, Penn Hills Police Department, Wilkinsburg Police Department, and Allegheny County Adult Probation.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Central Valley Woman Arrested on Federal Charges of Illegally Importing and Distributing Mercury-Laden Skin Care CreamsRead the Press Release
LOS ANGELES – A resident of the Central Valley town of Orosi was arrested this morning on federal charges related to skin care creams containing dangerous levels of mercury that she sold through advertisements on Facebook with promises that the illegal products could lighten skin color, remove age spots and treat acne.
Maria Estela Esparza Magallanes, 30, who allegedly smuggled the creams into the United States from Mexico and marketed the products under the names Crema Esparza and Crema Jimena, was arrested pursuant to a three-count criminal complaint filed on November 13 in United States District Court in Los Angeles. Magallanes is expected to make her first court appearance this afternoon in federal court in Fresno.
The complaint, which is the result of an investigation by special agents with the United States Food and Drug Administration, Office of Criminal Investigations (FDA-OCI), charges Magallanes with selling adulterated and misbranded skin care products and smuggling the unapproved creams into the United States.
The affidavit in support of the complaint details how Magallanes sold the smuggled products to two specific victims and an undercover FDA-OCI agent with promises that the creams would treat various skin conditions and would lighten skin color. The Facebook page she used to market the products contained purported testimonials from customers and included before-and-after photos. According to the affidavit, Magallanes sold the creams to the two victims in hand-to-hand transactions in parking lots in Tulare County, and she used the United States Postal Service to ship products on several occasions to the undercover agent.
During online communications with one of the victims and the undercover agent, Magallanes said she guaranteed her “natural” products – one of which she claimed contained standard cosmetics ingredients, including lanolin, rose water and bee pollen, and one of which purportedly was made of “stem cells,” the affidavit states. Magallanes allegedly told one victim that the products did not contain mercury and were sold pursuant to a license issued by California.
However, the creams allegedly sold by Magallanes to one of the victims and the undercover agent contained dangerous levels of mercury. The second victim was tested, which revealed mercury in her system.
In fact, according to the affidavit, a doctor with the U.S. Food and Drug Administration, who tested the products sent to the undercover agent, concluded: “The amounts of mercury in these products are very high. There is risk to the user, especially with chronic use, and there is risk to those around/in the user, especially infants and children and unborn babies. It is important to note that infants and children who are held by or rub up against a mother using these products can get it on their skin. The mercury will also evaporate from the product and be inhaled by the user and those around her.”
“This defendant allegedly marketed her illegal products on Facebook, intentionally misleading customers with false claims that the products were legal and safe to use,” said United States Attorney Nick Hanna. “These dangerous creams, which were marketed to women in immigrant communities, jeopardized the safety of women and children across California and in several other states.”
“Selling products with toxic levels of ingredients with unproven claims to treat medical conditions can put users’ health at serious risk,” said Lisa L. Malinowski, Special Agent in Charge, FDA Office of Criminal Investigations, Los Angeles Field Office. “The FDA will continue to investigate and bring to justice those who put profits above the public’s health and safety.”
The FDA has issued cautionary statements about skin lightener and anti-aging treatments being contaminated with mercury.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If she were to be convicted of all three counts in the complaint, Magallanes would face a statutory maximum penalty of 26 years in federal prison.
The investigation in this case is being conducted by FDA-OCI.
The California Department of Public Health (CDPH) has published a wide array of information about mercury-tainted face creams. In the wake of at least one serious injury resulting from mercury poisoning, the CDPH is actively involved in outreach effort to provide educational materials, health information, and community-based resources to support women who may have used mercury face creams and their children who may have been exposed via skin-to-skin contact.
This matter is being prosecuted by Assistant United States Attorney Amanda M. Bettinelli of the Environmental and Community Safety Crimes Section.
Buffalo Man Charged with Lying on Passport ApplicationRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today Lonnie Etienne Green, a/k/a Lonnie Coleman, 49, of Buffalo, NY, was arrested and charged by criminal complaint with making a false statement in an application for a United States Passport. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Caitlin Higgins, who is handling the case, stated that according to the complaint, on April 23, 2019, a person purporting to be the defendant submitted an application for a U.S. Passport. Green claimed that he was born in Buffalo, NY, on June 30, 1970. When asked on the application to “list all other names you have used,” Green falsely wrote “None” in the field, indicating that he had not used any other names. During the adjudication process, two social security numbers were linked to Green. One of the number was linked to a case involving child support arrears. Additionally, a check of a law enforcement database also revealed a Tennessee Driver's License for the defendant in the name of Lonnie E. Coleman. When questioned at the Buffalo Passport Agency, Green falsely stated that he had never been issued any other social security numbers, and that his birth certificate had never been amended.
Green made an initial appearance before U.S. Magistrate Judge Michael J. Roemer and was released.
The complaint is the result of an investigation by the U.S. Department of State’s Diplomatic Security Service, under the direction of Resident Agent-in-Charge Kenneth M. Haynes, and the Social Security Administration, Office of the Inspector General, under the direction of Special Agent-in-Charge John F. Grasso.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Bridgeport Man Sentenced to 10 Years in Federal Prison for Committing Multiple RobberiesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ALVIN ROBERTSON, 56, of Bridgeport, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 120 months of imprisonment, followed by three years of supervised release, for committing three bank robberies and two Subway store robberies in Connecticut last year.
According to court documents and statements made in court, on May 20, 2018, Robertson robbed a Subway store located at 9 Ethan Allen Highway in Ridgefield. During the robbery Robertson brandished a knife, pointed it at the store clerk and stated, “Give me all your money or I will kill you.”
On July 22, 2018, Robertson robbed a Subway store located at 447 Monroe Turnpike in Monroe. During the robbery, Robertson indicated that he had a gun.
Robertson also robbed a People’s United Bank branch at 470 Monroe Turnpike in Monroe on August 29, 2018; a People’s United Bank branch at 763 Straits Turnpike in Watertown on September 21, 2018, and a People’s United Bank branch at 1135 Farmington Avenue in Berlin on September 25, 2018.
Robertson has been detained since his arrest on related state charges on September 27, 2018. On May 21, 2019, he pleaded guilty to one count of bank robbery.
Robertson has prior federal and state bank robbery convictions.
This matter was investigated by the Federal Bureau of Investigation and the Watertown, Ridgefield, Monroe and Berlin Police Departments. The case was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Berkeley County man sentenced for firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Donald Wayne Wilson, of Hedgesville, West Virginia, was sentenced today to two years’ probation for a firearms charge, U.S. Attorney Bill Powell announced.
Wilson, age 62, pled guilty to one count of “Unlawful Possession of a Firearm” in August 2019. Wilson, having been previously convicted of a felony, had a .357 caliber revolver in September 2018 in Berkeley County.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Assistant U.S. Attorney Kimberley D. Crockett prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
Chief U.S. District Judge Gina M. Groh presided.
Attorney Charged with Filing Fraudulent Lawsuits Under the Americans with Disabilities ActRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York announced the arrest today of STUART FINKELSTEIN on charges of mail fraud, aggravated identity theft, false declarations to a court, and obstruction of justice. Specifically, FINKELSTEIN has been charged with stealing the identities of two individuals in order to file hundreds of fraudulent lawsuits pursuant to the Americans with Disabilities Act (“ADA”) that those individuals never authorized. In addition, FINKELSTEIN has been charged with making false declarations and obstructing justice in proceedings in the United States District Court for the Southern District of New York. FINKELSTEIN was presented today in federal court in Fort Lauderdale, Florida before Magistrate Judge Patrick Hunt.
U.S. Attorney Geoffrey S. Berman said: “Stuart Finkelstein, a practicing attorney, appeared to be advocating on his clients’ behalf by allegedly filing lawsuits claiming they were unable to access public establishments due to ADA noncompliance. This was false. Not only did he allegedly fabricate the underlying facts of the lawsuits – the victims never actually tried to access the establishments – Finkelstein stole their identities and didn’t even represent them as an attorney. Finkelstein’s galling scheme, which was as profitable as it was brazen, allegedly netting him $930,000 in attorney’s fees, has come to an end. If you feel you may be a victim of Stuart Finkelstein, please avail yourself to the information provided below.”
According to the allegations in the COMPLAINT unsealed today[1]:
FINKELSTEIN is a lawyer who has filed, or has caused to be filed, over 300 lawsuits pursuant to the ADA on behalf of two purported plaintiffs, Victim-1 and Victim-2. These lawsuits were filed in the United States District Courts for the Southern District of Florida and the Southern District of New York against various public establishments (the “Victim Public Establishments”). Each of these lawsuits made representations that Victim-1 and Victim-2 were represented by FINKELSTEIN or an associate. Furthermore, each of these lawsuits alleged that Victim-1 and Victim-2 attempted to visit the Victim Public Establishments, but were unable to do so because of those establishments’ alleged noncompliance with the ADA. The lawsuits sought attorney’s fees and injunctive relief to address the alleged noncompliance with the ADA.
FINKELSTEIN’s lawsuits on behalf of Victim-1 and Victim-2, however, were fraudulent. Victim-1 and Victim-2 neither retained nor authorized FINKELSTEIN to file ADA lawsuits on their behalf. Contrary to FINKELSTEIN’s representations, Victim-1 and Victim-2 never attempted to visit the Victim Public Establishments. Instead, FINKELSTEIN stole the identities of Victim-1 and Victim-2, made numerous false representations to the Victim Public Establishments and the courts in the Southern District of New York and the Southern District of Florida, obstructed official judicial proceedings, and then settled these fake lawsuits in order to collect approximately $930,000 in attorney’s fees.
* * *
FINKELSTEIN, 65, of Davie, Florida, is charged with one count of mail fraud, which carries a maximum penalty of twenty years in prison; one count of aggravated identity theft, which carries a mandatory term of imprisonment of two years in addition to the sentence imposed for the mail fraud charge; two counts of obstruction of justice, each of which carries a maximum penalty of twenty years in prison; and two counts of false declarations to a court, each of which carries a maximum penalty 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 defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of Special Agents from the U.S. Attorney’s Office for the Southern District of New York.
If you believe you were a victim of this crime, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact Wendy Olsen-Clancy, the Victim Witness Coordinator at the United States Attorney’s Office for the Southern District of New York, at (866) 874-8900, or [email protected]. For additional information, go to: http://www.usdoj.gov/usao/nys/victimwitness.html.
The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Rushmi Bhaskaran is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Atlantic County Man Admits Possession of Child PornographyRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, man today admitted to receiving and possessing videos and images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Jack Underwood, 31, of Egg Harbor City, New Jersey, pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to an information charging him with one count of possession of child pornography.
According to documents filed in this case and statements made in court:
Underwood used a social networking site that allows users to interact and engage in both conversations and the exchanging of images and videos. From September 2017 through March 2018, the site reported several caches of child pornography found within accounts linked to Underwood. After executing a search warrant at Underwood’s home in December 2018, agents located more images of child sexual abuse on Underwood’s mobile telephone. Underwood has a previous conviction for the same charge, where he served 54 months of incarceration and was placed on a lifetime of supervised release. This new conviction constitutes a violation of his supervised release.
The possession of child pornography charge to which Underwood pleaded guilty carries a mandatory minimum sentence of 10 years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine. He also faces an additional mandatory minimum of five years in prison for violating his supervised release by committing another child pornography offense. Underwood will be required to continue registering as a sex offender. Sentencing is scheduled for Feb. 21, 2020.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Alisa Shver of the Camden office.
Arizona Man Pleads Guilty to Engaging in the Business of Manufacturing Ammunition Without A LicenseRead the Press Release
LAS VEGAS, Nev. – Douglas Haig, 57, of Mesa, Arizona, pleaded guilty today to engaging in the business of manufacturing ammunition without a license, U.S. Attorney Nicholas A. Trutanich for the District of Nevada, Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Division, and Special Agent in Charge Ray Roundtree of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) announced.
According to court documents, from about July 2016 to about October 19, 2017, Haig operated an unlicensed ammunition manufacturing business known as Specialized Military Ammunition (SMA). SMA’s manufacturing was conducted in a workshop located in Haig’s Arizona residence. Haig maintained a website for SMA through which he advertised and sold ammunition that he manufactured. He promoted and sold ammunition he manufactured at gun shows in Arizona and other states. He traveled to at least one gun show in Nevada where he sold ammunition he manufactured, and, on multiple occasions, he shipped ammunition that he manufactured to customers in Nevada. Haig operated the ammunition manufacturing business despite knowing that federal firearms law required a license for such activity.
The case arose out of the joint investigation by the FBI and ATF with assistance from the Department of Treasury’s Alcohol and Tobacco Tax and Trade Bureau (TTB) and the Internal Revenue Service – Criminal Investigation, of the October 1, 2017, mass shooting at the Route 91 Harvest music festival in Las Vegas. The Cybercrime Lab within the Department of Justice’s Computer Crime and Intellectual Property Section also provided important assistance to the investigation and prosecution of the case. Assistant U.S. Attorneys Patrick Burns and Tony Lopez are prosecuting the case.
Haig is scheduled to be sentenced by U.S. District Judge James C. Mahan on February 19, 2020. He faces a maximum statutory penalty of five 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.
A federal grand jury returned an indictment charging Haig on August 22, 2018.
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Alaska Doctor Pleads Guilty to Wire FraudRead the Press Release
U.S. Attorney Peter G. Strasser announced that DR. ANDREW J. VAN ATTA, age 37, from Wasilla, Alaska, pled guilty to wire fraud.
VAN ATTA pled guilty to the one-count indictment that charged him with committing wire fraud from January of 2017 through May of 2018. According to court documents, starting in January of 2017, when VAN ATTA was a medical student, and continuing after he graduated, VAN ATTA used multiple email accounts and PayPal accounts to impersonate numerous other physicians while filling out surveys with a survey company that paid VAN ATTA for surveys that the victim company believed were completed by various other physicians. The company paid VAN ATTA a total of over $114,000 for the surveys completed under the fake names.
Judge Susie Morgan set the sentencing for Tuesday, February 18, 2020 at 10am. VAN ATTA faces up to twenty years in prison, followed by up to three years of supervised release, and a fine of up to $250,000 or twice the gross gain to VAN ATTA or the gross loss to any victims.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation. Assistant United States Attorney Nicholas D. Moses is in charge of the prosecution.
Akron man sentenced to 70 months prison for eight robberiesRead the Press Release
Darrion Powers, 23, was sentenced for a series of eight robberies committed between December 2018 and February 2019. Judge Sara Lioi sentenced Powers to 70 months in prison and ordered him to pay $4,279 in restitution. After his release from prison, Powers will serve three years of supervised release. Powers had previously pled guilty to each of the robberies.
As discussed during the sentencing hearing, Powers targeted six restaurants and two banks in Akron and Cuyahoga Falls over a period of approximately two months. In each case, Powers entered the business wearing a mask, brandished a knife, and demanded cash from the register or bank tellers’ drawer. In total, Powers stole $13,591.
Akron Police apprehended Powers as he returned to his home following the robbery of a PNC Bank on February 12, 2019. During a search of his vehicle, officers recovered over $9,000 cash stolen from PNC Bank, a knife, and clothing worn during several of the robberies. Powers admitted to investigators that he committed each of the crimes.
This case was investigated by the Akron Police, Cuyahoga Falls Police, and the FBI, and then prosecuted by Assistant U.S. Attorney Peter Daly.
Akron Man Sentenced for Stealing FEMA Grant Funding Intended for Education ExpensesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Richard A. Lobur, 55, of Akron, NY, who was convicted of theft of government money, was sentenced to 18 months’ probation by U.S. District Judge Elizabeth A. Wolford. The defendant will also pay $39,182.92 in restitution to FEMA.
Assistant U.S. Attorney John D. Fabian, who handled the case, stated that on January 12, 2015, the defendant deposited into his account at the Bank of Akron, $18,000 of grant funds intended to be used for educational expenses for his children. The funds were administered as part of a Federal Emergency Management Agency (FEMA) Staffing for Adequate Fire and Emergency Response (SAFER) grant.
Between January 12 and June 9, 2015, Lobur provided $15,000 of the grant funds to his children, but also converted more than $1,000 of the remaining $3,000 to his personal use. The defendant knew that he was not entitled to convert the grant funds to his own personal use and he knew that the intended and lawful use of the funds was for educational expenses for his children.
The money was used for, among other things: payments on a Yard Card, Discover Card, and FIA Card, which were used to buy a truck, lawnmower and camper, and a payment to Akron Mobile Home Park.
The sentencing is the result of an investigation by the Department of Homeland Security, Office of Inspector General, under the direction of Special Agent-in-Charge John Tiano, Detroit Field Office; the U.S. Department of Education, Office of Inspector General, under the direction of Assistant Special Agent-in-Charge Geoff Wood; and the New York State Comptroller’s Office, under the direction of New York State Comptroller Thomas DiNapoli.
# # # #
37 arrested in fentanyl, cocaine, methamphetamine conspiracyRead the Press Release
CINCINNATI – A federal grand jury has charged 37 individuals with crimes related to narcotics and money laundering conspiracies in an indictment that was unsealed here today.
Those charged include 22 local individuals. Law enforcement agents arrested all 37 defendants late last week and over the weekend.
According to the indictment, beginning in March 2016 and continuing through October 2019, the defendants conspired to possess with intent to distribute 400 grams or more of fentanyl, 500 grams or more of methamphetamine and five kilograms or more of cocaine.
The indictment alleges two Cincinnati businesses were used to launder proceeds from the narcotics conspiracy: Tri-State Jeweler on Race Street and Nationwide Automotive on Vine Street. It is alleged that cash was kept stored at both locations. The cash was then allegedly concealed and packaged to be transported to and from the Cincinnati region.
According to the 15-count indictment, between December 2018 and April 2019, defendants stored, at least temporarily, approximately $2.5 million at Tri-State Jeweler.
For example, Tri-State Jeweler accepted $1,400 in cash for the purchase of a diamond pendant necklace in May 2019, $15,000 for the purchase of a diamond ring in June 2019 and $4,000 for the purchase of a diamond ring in July 2019.
Also in July 2019, Nationwide Automotive accepted $38,800 in alleged narcotics proceeds for the purchase of a vehicle.
It is alleged at least $800,000 was laundered at Nationwide Automotive between November 2018 and April 2019.
Co-conspirators are also charged with maintaining drug premises on Prosser and Glenmore avenues in Cincinnati.
The government has seized more than half a million dollars in cash, 19 pounds of fentanyl, three pounds of heroin, 100 pounds of cocaine, 42 pounds of methamphetamine, 47 weapons, 12 vehicles, the jewelry store inventory, assorted jewelry belonging to defendants and residences valued at approximately $1.1 million total thus far in this case.
Those charged include:
Name
Age
City
Jose Daniel Zazueta-Hernandez, aka Jesus Bojorquez, aka Dany
40
Wisconsin
Derrick Bryant
39
Cincinnati
Daniel Simons
45
Hamilton
William F. Graham, III
52
Cincinnati
Carlos Flores-Inzunza
31
Sinaloa, Mexico
Jose Toquillas-Felix
32
Cincinnati
Lashone Isom
42
Cincinnati
Maurice Jackson
50
Hamilton
Daniel Montez Blaine
50
Cincinnati
Francisco Casique
24
California
Raymond James Edwards, Jr.
53
Cincinnati
Christopher Engle
48
Cincinnati
Radee Garrett
39
Cincinnati
Carl Rena Gilbert
60
Cincinnati
Cardale A. Goens
32
Cincinnati
Ayman Anis Al Hajjeh
27
Wisconsin
Xingui Lin
39
Chicago
Frances Alexia Mercado
24
Atlanta
Kymyatta Oatis
50
Cincinnati
Ernesto Rincon
24
Wisconsin
Andre Robinson
37
Cincinnati
Joel Salcedo
23
Las Vegas
Robert Smith
60
Cincinnati
Christopher William Talley
36
Cincinnati
Donald Thompson
41
Cincinnati
Vilma Vidal-Flores
47
Las Vegas
Harold Lamar Walker
41
Cincinnati
Stefan Walker
42
Cincinnati
Min Wang
32
Chicago
Nicholas White
41
Cincinnati
Brandon Terrell Willis
43
Cincinnati
Maurice Ringwood
45
Cincinnati
Ivan Courtney Johnson
39
Cincinnati
Vyacheslav Minyalo, aka Slavik
46
Cincinnati
Dewayne Lamont Walker
47
Cincinnati
Yosi Ilouz
42
Mason
Brady Cunningham
53
Cincinnati
The narcotics conspiracy in this case is punishable by a mandatory minimum 10 years up to life in prison. The money laundering conspiracy is punishable by up to 20 years in prison. Congress sets the minimum and maximum statutory sentence. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Keith Martin, Special Agent in Charge, Drug Enforcement Administration (DEA); and Bryant Jackson, Special Agent in Charge, Internal Revenue Service (IRS), Criminal Investigations, announced the charges. Criminal Chief Karl P. Kadon and OCDETF Chief Christy L. Muncy are representing the United States in this case.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), United States Marshals Service, and Homeland Security Investigations (HSI) assisted in arrests.
Members of the DEA’s Task Force include: Cincinnati, Golf Manor, West Chester, Norwood, Montgomery, Colerain, Springfield Township, Delhi Township, Harrison, Kenton County, Covington, Florence and Cincinnati/Northern Kentucky International Airport police departments, Hamilton County and Boone County sheriff’s offices, the Ohio Attorney General’s Bureau of Criminal Investigation (BCI), Ohio National Guard, Butler County Undercover Regional Narcotics Task Force, Ohio State Highway Patrol and Kentucky State Police.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
# # #
3 Plead Guilty in “SCO” Drug Trafficking RingRead the Press Release
PITTSBURGH, PA - Three former residents of Southwestern Pennsylvania pleaded guilty in federal court to charges related to drug trafficking in connection with a large-scale investigation conducted by the Greater Pittsburgh Safe Streets Task Force, United States Attorney Scott W. Brady announced today.
Kreg Williams, 29, formerly of Duquesne, pleaded guilty to one count related to drug trafficking, before Senior United States District Judge Arthur J. Schwab.
Dorian Boyd, 25, formerly of Braddock, pleaded guilty to two counts related to drug trafficking, also before Judge Schwab.
Philip Matey, 54, formerly of North Braddock, pleaded guilty to three counts related to drug trafficking, also before Judge Schwab.
In connection with the guilty pleas, the court was advised that the Greater Pittsburgh Safe Streets Task Force conducted a long-term investigation of drug trafficking occurring in and around the Braddock section of Pittsburgh. Kreg Williams, Dorian Boyd, Philip Matey, and other individuals, were identified as members or associates of a neighborhood based street gang, self-titled “SCO”, which illegally distributed controlled substances in the Greater Pittsburgh region. In January of 2019, investigators obtained authorization to conduct a federal wire investigation, which continued through May of 2019.
As to Kreg Williams, the Court was informed that intercepted communications confirmed that Williams was conspiring with others to possess with intent to distribute and distribute controlled substances. Williams admitted, in conjunction with his guilty plea, that he is a member of “SCO.” The court was further advised that on June 12, 2019, Williams possessed three firearms, all of which Williams agreed to forfeit. The court accepted Williams’ guilty plea to conspiracy to distribute 28 grams or more of cocaine base, commonly known as crack, a Schedule II controlled substance, between August 2018 and May 2019.
As to Dorian Boyd, the Court was informed that intercepted communications confirmed that Boyd was conspiring with others to possess with intent to distribute and distribute controlled substances. Boyd admitted, in conjunction with his guilty plea, that he initially served as a drug runner for other members of the conspiracy but, in March of 2019, operated one of the telephones that law enforcement was interception. The court was further informed that through intercepted communications as well as surveillance, law enforcement confirmed that Boyd conducted his drug-trafficking activity primarily at the Library Street Basketball Courts’ parking lot as well as at a residence on 13th Street in Braddock. On June 12, 2019, the court was further advised that law enforcement seized from Boyd’s residence $1,787.00, drug packaging material, suspected controlled substances as well as two firearms. The court accepted Boyd’s guilty plea to conspiracy to distribute 19.3 grams of heroin, a Schedule I controlled substance, and 21.7 grams of cocaine base, commonly known as crack, a Schedule II controlled substance, between August 2018 and May 2019.
As to Philip Matey, the Court was informed that intercepted communications confirmed that Matey worked as a handyman for one of the other members of the conspiracy and was often paid in controlled substances. Matey admitted, in conjunction with his guilty plea, that he oversaw renovations at homes located on Seddon Avenue in Braddock, which were owned by another member of the conspiracy and used as stash houses, drug distribution locations, and meeting sites for members of the conspiracy. Additionally, Matey allowed other members of the conspiracy to use his residence on Taylor Avenue as a place to meet drug customers. The court accepted Matey’s guilty plea to conspiracy to distribute 15 grams of heroin and 10.6 grams of cocaine base.
Judge Schwab scheduled sentencing for April 23, 2020, at 10:00 AM for Williams, April 23, 2020 at 11:00 AM for Boyd, and April 28, 2020, at 10:00 AM for Matey. For Williams, the law provides for a total sentence of not less than five years and not more than 40 years in prison, with a maximum fine of $5,000,000. For Boyd and Matey, the law provides for a total sentence of not more than 20 years in prison and a maximum fine of $1,000,000 at each count. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants. Both Williams and Boyd were previously ordered detained by the court and will remain incarcerated pending sentencing. Matey was released on bond pursuant to the court’s prior order and will remain out on bond pending sentencing.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Drug Enforcement Administration, Bureau of Alcohol Tobacco Firearms and Explosives, United States Marshals Fugitive Task Force, Allegheny County Sheriff’s Office, Allegheny County Police Department, Pennsylvania State Police, Pennsylvania Attorney General’s Office Bureau of Narcotics, and the Pittsburgh Bureau of Police. Other assisting agencies include the Monroeville Police Department, Penn Hills Police Department, Wilkinsburg Police Department, and Allegheny County Adult Probation.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
18 November 2019
York Man Sentenced to Five Years’ Imprisonment for Drug Trafficking and Money Laundering ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Juan Rivera Marrero a/k/a “Viejo” a/k/a “Charlie,”, age 57, currently residing in Dauphin County Prison, Harrisburg, Pennsylvania, was sentenced on November 13, 2019, to 60 months’ imprisonment followed by five years of supervised release, by United States District Court Judge Sylvia H. Rambo, for drug trafficking and money laundering.
According to United States Attorney David J. Freed, Marrero previously pleaded guilty to money laundering and to conspiring with others to distribute 500 grams or more of cocaine in the York County, Pennsylvania area between May 2015 and May 2017. Marrero admitted to purchasing bulk quantities of cocaine from Luis D. Baez-Sierra, who was obtaining narcotics through the United States mail sent from Puerto Rico to York, Pennsylvania.
Marrero was originally charged in May 2017, with seven codefendants. The following codefendants were sentenced:
- Henry Delgado pleaded guilty to conspiracy to distribute and possess with intent to distribute five kilograms and more of cocaine hydrochloride and was sentenced to 84 months’ imprisonment;
- Jean Carlos Torres-Santiago pleaded guilty to conspiracy to distribute cocaine hydrochloride and heroin and sentenced to 60 months’ imprisonment;
- Charlie Abdiel Cruz-Velez, pleaded guilty conspiracy to distribute cocaine hydrochloride and was sentenced to 57 months’ imprisonment;
- Chayann Torres-Santiago pleaded guilty to conspiracy to distribute and possess with intent to distribute cocaine hydrochloride and sentenced to 30 months’ imprisonment; and
- Angel Santiago-Torres pleaded guilty to conspiracy to distribute and possess with intent to distribute cocaine hydrochloride and was sentenced to 12 months’ imprisonment.
The following codefendants are awaiting sentencing:
- Ramon Puig Rodriguez pleaded guilty to conspiracy to distribute cocaine hydrochloride; and
- Luis D. Baez-Sierra pleaded guilty to conspiracy to distribute cocaine hydrochloride.
The charges stem from an investigation conducted by the Drug Enforcement Administration and the Internal Revenue Service, Criminal Investigation Division. Assistant United States Attorney Daryl F. Bloom is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program 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 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 enforcement and the local community to develop effective, locally-based strategies to reduce crime.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
# # #
Woman Pleads Guilty to Being a Drug User in Possession of FirearmRead the Press Release
NORFOLK, Va. – A Portsmouth woman pleaded guilty today to being an illegal drug user in possession of a firearm.
According to court documents, Jaclyn Amanda Inge, 40, purchased two handguns from federally licensed gun dealers at gun shows. Before buying the guns, Inge completed a form 4473, and checked the box indicating that she was not addicted to drugs or a drug user, when in fact, as several witnesses would testify, she has used marijuana daily for more than a decade. And she illegally possessed those guns while being a drug user.
Based on evidence presented at trial, Inge was implicated in an armed robbery of Mac’s Reloads, a Federal Firearm Licensee and ammunition-reloading business located in Virginia Beach. At the time of the robbery, Inge worked at Mac’s Reloads, although she stopped showing up for work afterward. The robbery took place a few weeks after Inge purchased the guns, and the two robbers moonlighted as a hip-hop duo managed by Inge. The evidence also showed that Inge provided the robbers with inside information about Mac’s Reloads to help them rob the business. And the guns Inge purchased are believed to be the ones that the robbers used.
Inge faces a maximum sentence of 10 years in prison when sentenced on Feb. 18, 2020. 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after Senior U.S. District Judge Robert G. Doumar accepted the plea. Assistant U.S. Attorneys William D. Muhr and William B. Jackson are prosecuting the case.
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. 2:19-cr-90.
Western Upper Peninsula Methamphetamine Suppliers Sentenced to PrisonRead the Press Release
MARQUETTE, MICHIGAN - United States Attorney Andrew Birge announced today that eight defendants have been sentenced to prison for their respective roles in dealing crystal methamphetamine in the Western Upper Peninsula:
Keith Lee Raymond, 31, formerly of Ewen, Michigan, was sentenced by Chief U.S. District Judge Robert J. Jonker to 90 months in prison for distribution of methamphetamine and 90 months for being a felon in possession of a firearm to run concurrently. Raymond was also sentenced to three years of court supervision upon his release from prison and a $500 fine.
Darian Frances Belongie, 30, formerly of Ewen, Michigan, was sentenced by U.S. District Judge Janet T. Neff to 120 months in prison for conspiracy to distribute more than 50 grams of methamphetamine. Belongie was also sentenced to serve a period of five years of court supervision upon her release from prison.
Pedro Francisco Gonzalez, 37, formerly of L’Anse, Michigan, was sentenced by U.S. District Judge Janet T. Neff to 60 months for distribution of more than 50 grams of methamphetamine and 60 months for possession of a firearm in furtherance of a drug trafficking crime, to run consecutively for a total of 120 months in prison. Gonzalez was also sentenced to serve a period of five years of court supervision release upon his release from prison.
Alan Michal Hollon, 29, formerly of L’Anse, Michigan, was sentenced by Chief U.S. District Judge Robert J. Jonker to 188 months in prison for conspiracy to distribute more than 50 grams of methamphetamine and 120 months for being a felon in possession of a firearm, to run concurrently. Hollon was also sentenced to serve a period of five years of court supervision upon his release from prison and a $2,000 fine.
Anthony Richard Duran, 28, formerly of Santa Monica, California, was sentenced by Chief U.S. District Judge Robert J. Jonker to 68 months in prison for conspiracy to distribute more than 50 grams of methamphetamine. Duran was also sentenced to serve a period of four years of court supervision upon his release from prison and a $750 fine.
Elizabeth Silvia Minnick, 24, formerly of Watersmeet, Michigan, was sentenced by Chief U.S. District Judge Robert J. Jonker to 72 months in prison for conspiracy to distribute five grams or more of methamphetamine. Minnick was also sentenced to serve a period of four years of court supervision release upon her release from prison.
Kathy Jo Harry, 41, formerly of Houghton, Michigan, was sentenced by Chief U.S. District Judge Robert J. Jonker to 27 months in prison for conspiracy to distribute five grams or more of methamphetamine. Harry was also sentenced to serve a period of three years of court supervision upon her release from prison.
Justin Henry Hartzog, 26, formerly of Watersmeet, Michigan, was sentenced by Chief U.S. District Judge Robert J. Jonker to 60 months in prison for conspiracy to distribute five grams or more of methamphetamine. Hartzog was also sentenced to serve a period of four years of court supervision upon his release from prison.
These sentences were the culmination of a long-term investigation by the Upper Peninsula Substance Enforcement Team (UPSET), the Bureau of Indian Affairs (BIA), Homeland Security Investigations (HSI), and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) into methamphetamine distribution and illicit firearms possession on the west end of the Upper Peninsula.
“The interdiction of crystal methamphetamine is a high priority for the Upper Peninsula Substance Enforcement Team (UPSET),” said D/Lt. Timothy Sholander, Michigan State Police – UPSET Commander. “Crystal methamphetamine has become a scourge to Upper Peninsula communities, including tribal communities, and we worked with our federal law enforcement partners to target the suppliers who were plaguing these communities with their drug trafficking. These sentences should serve as a stark reminder to those who poison our communities that neither the use of the dark web nor interstate travel to procure drugs will provide a safe haven to them.”
“ATF is committed to reducing violent crime throughout the State of Michigan working in conjunction with our state, local, tribal and federal partners,” said ATF Special Agent in Charge James Deir. “Gonzalez, Hollon, and Raymond were peddling poison throughout the Upper Peninsula as well as illegally possessing firearms without any regard to the lives they ruined along the way. The citizens in these communities can sleep a little better knowing that these individuals are being held accountable for their actions and will no longer be available to sell drugs to anyone for some time to come.”
“HSI specializes in investigating transnational criminal organizations that operate across the U.S. and around the globe,” said Vance Callender, HSI special agent in charge for Michigan and Ohio. “These individuals conspired with multiple criminal organizations from Mexico to California and then to the Upper Peninsula to profit from the suffering of those in their community. HSI and its law enforcement partners are proud to have dismantled this illicit network.”
Assistant U.S. Attorneys Hannah Bobee, Paul D. Lochner, and Ted Greeley prosecuted these cases, along with then Assistant U.S. Attorney Maarten Vermaat.
END
West Tennessee Woman Sentenced to 15 Years for Conspiracy to Distribute MethamphetamineRead the Press Release
Jackson, TN – Amanda Ivey, 45, of Lexington, TN has been sentenced to 185 months imprisonment for conspiracy to possess with intent to distribute actual methamphetamine. D. Michael Dunavant, U.S. Attorney announced the sentence today.
According to information presented in court, beginning in 2015 through March 2016, investigators with the Federal Bureau of Investigation (FBI) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) began investigating multiple individuals transporting actual methamphetamine from Arizona to the Western District of Tennessee for distribution.
Ivey distributed actual methamphetamine on multiple occasions to undercover confidential informants. Ivey and co-defendant Shane Rushing, were traveling on Highway 412 East near Darden Park in Henderson County when they were stopped by law enforcement for a traffic violation. Ivey was the driver and Rushing was the passenger. A loaded Tanfoglio, .40 caliber pistol was located between the seats.
Recovered from the vehicle was $9,086 in United States currency from Rushing and $500 in United States currency from Ivey. Rushing stated to investigators that he was on his way to purchase one ounce (28.35 grams) of methamphetamine/ice and pay for previous amounts of methamphetamine that he had been fronted. Ivey stated she purchased methamphetamine from Rushing for two years. Ivey was held responsible for 6.35 kilograms of actual methamphetamine with purity levels from 99.6% to 98.6%.
On November 14, 2019, U.S. District Court Judge J. Daniel Breen sentenced Ivey to 185 months in federal prison, followed by 3 years of supervised release.
U.S. Attorney D. Michael Dunavant said, "Methamphetamine that is trafficked in and through West Tennessee is increasing in dangerous purity, and continues to destroy individuals, families, and communities. Drug dealers who profit from the pain, addiction, violence and death caused by these dangerous substances deserve proper punishment, and this sentence does just that."
This case was investigated by the Federal Bureau of Investigation, Jackson Residence Agency Safe Streets Task Force, and the ATF.
Assistant U.S. Attorney Jerry Kitchen prosecuted this case on behalf of the government.
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Vegas Man Sentenced to 60 Months in Prison for Conspiracy to Manufacture and Distribute MarijuanaRead the Press Release
DAVENPORT, Iowa – On November 14, 2019, United States Chief District Judge John A. Jarvey sentenced Oliver Sonny Maupin, 62, of Las Vegas, Nevada, to 60 months in prison on the charge of conspiracy to manufacture and distribute at least 100 kilograms of a mixture and substance containing marijuana and at least 100 marijuana plants, announced United States Attorney Marc Krickbaum. Maupin was also ordered to serve 4 years of supervised release following his imprisonment, pay $100 to the Crime Victims’ Fund, and pay a fine of $10,000.
Maupin was instrumental in creating two separate marijuana grow operations in Oregon that contributed large quantities of marijuana to Iowa for illegal distribution. Maupin educated himself thoroughly on the Oregon medical marijuana laws during the process, and learned how to exploit them in such a fashion so that his illegal operations could avoid detection by local law enforcement. The evidence introduced at trial demonstrated that this conspiracy lasted for years, involved well over a hundred pounds of marijuana, and several hundred thousand dollars. On June 28, 2019, Maupin was found guilty by a jury of the sole count pending against him, conspiracy to manufacture and distribute marijuana.
This matter was investigated by the Quad City Metropolitan Enforcement Group (MEG), and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
U.S. Attorney’s Office for the District of New Mexico Announces Successful Recovery of Acoma Shield for People of Acoma PuebloRead the Press Release
ALBUQUERQUE, N.M. – The U.S. Attorney’s Office for the District of New Mexico and the Money Laundering and Asset Recovery Section of the Department of Justice’s Criminal Division announced the successful return of an item of cultural patrimony, a ceremonial war shield (“Shield”) sacred to the Pueblo of Acoma. Acoma Pueblo is one of 22 federally recognized Native American tribes in New Mexico.
On July 20, 2016, the United States filed a civil complaint seeking forfeiture of the Acoma Shield from the Eve Auction House (“Eve”) in Paris, France. The complaint alleged that on May 27, 2016, the FBI in Albuquerque, N.M., learned that Eve had scheduled an auction for May 30, 2016 in Paris. Eve identified the Shield as one of the items for auction. The auction house numbered this item as Lot #68, describing it as: “BOUCLIER DE GUERRE PUEBLO PROBABLEMENT ACOMA OU JEMEZ XIX SIÈCLE OU PLUS ANCIEN CUIR.” (Shield of war pueblo probably Acoma or Jemez XIX century or more old leather). The lawsuit marks the first time the United States filed an action to forfeit an item of cultural patrimony from any European auction house.
On July 16, 2019, the United States, the Pueblo of Acoma, and the consignor of the Shield, Jerold Collings, entered into a settlement agreement to facilitate the Shield’s return to its home at the Pueblo of Acoma. In the agreement, the parties stipulated to the delivery of the Shield to the custody of a federal law enforcement agent at the U.S. Embassy in Paris, France. Following the delivery of the Shield, an agent will transport the Shield to the evidence room at the Bureau of Indian Affairs in Albuquerque. After the Shield arrives in Albuquerque, the United States will move for dismissal of the forfeiture case and release the Shield to the Pueblo of Acoma.
The Department of Justice’s Money Laundering and Asset Recovery Section, the Department of Justice’s Office of International Affairs, and the Department of Justice’s Attaché at the Embassy worked diligently with the French officials to ensure that Eve released the Shield to the custody of the United States. On Nov. 12, 2019, Eve surrendered the Shield to a Special Agent of the FBI’s Art Crime Team.
“The pursuit of this case demonstrates the United States’ commitment to protect and preserve sacred Native American items for the benefit of their rightful Native American owners,” said John C. Anderson, U.S. Attorney for the District of New Mexico. “This case also serves to put merchants, traders, and collectors on notice that they have a duty to know the nature and origin of the items in which they deal so that they are not unwittingly trafficking or possessing precious items of Native American cultural patrimony.”
In the course of the FBI’s investigation, tribal leaders showed pictures of the Ceremonial Shield that was being offered for sale by the EVE Auction House to an enrolled member of the Pueblo of Acoma. The tribal member identified the photographs as depicting the exact Shield her grandfather had used in cultural and religious ceremonies for the Pueblo. Her grandfather had held the position of traditional kiva leader and cultural practitioner with the Pueblo. As such, he was the caretaker of this Ceremonial Shield, which was kept in the family home atop the mesa known as Sky City within the exterior boundaries of the Pueblo of Acoma.
The Shield is more than 100 years old and is a sacred item with historical, traditional, cultural and ongoing religious importance to the people of the Pueblo of Acoma. As such, it properly is entrusted solely to the care of the traditional leaders of the Pueblo of Acoma.
In the Eve Auction House catalog for Lot #68, an expert in American Indian artifacts wrote that this “very rare war shield” was either of the Acoma or Jemez Pueblos and estimated to be from the 19th century or older. The description also states that these shields were used by the pueblo people from 1700 to 1850, and “with a few exceptions they were no longer manufactured after that date.”
Under Pueblo of Acoma law, the Shield cannot be destroyed, alienated outside of the Pueblo, appropriated by someone outside of the Pueblo, or conveyed by any individual outside of the Pueblo.
The Department of Justice thanks its French partners for their assistance in this matter.
“The sale of Native American cultural and religious items in Europe and around the world have generated millions of dollars,” said James C. Langenberg, Special Agent in Charge of the FBI’s Albuquerque Division. “We will continue to work to prevent these sales and seek repatriation of invaluable cultural items to their Native American homes.”
Two Trenton Drug Traffickers Sentenced to Prison for Their Roles in Heroin Trafficking ConspiracyRead the Press Release
TRENTON, N.J. – Two Trenton men have been sentenced to prison for their roles in a violent drug trafficking conspiracy that allegedly distributed more than one kilogram of heroin in Trenton and the surrounding area, U.S. Attorney Craig Carpenito announced today.
Kahlil Hampton, a/k/a “Ruger,” 29, was sentenced today to 176 months in prison and five years of supervised release after previously pleading guilty before Chief U.S. District Judge Freda L. Wolfson to an information charging him with one count of conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin. Judge Wolfson imposed the sentence today in Trenton federal court.
Donte Ellis, a/k/a “Shalant,” 42, was sentenced Nov. 15, 2019, to 181 months in prison and five years of supervised release after previously pleading guilty before Judge Wolfson to an information charging him with conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin. Ellis also admitted to possessing a firearm during the offense.
According to documents filed in this case and statements made in court:In October 2018, Ellis, Hampton, and 24 other members of a drug trafficking conspiracy operating in Trenton were charged by criminal complaint with conspiracy to distribute heroin. On Aug. 8, 2019, a grand jury returned a 15-count second superseding indictment charging nine of those defendants – Omar Council, a/k/a “Stacks,” a/k/a “O,” a/k/a “Y-O,” a/k/a “Snow,” Jerome Roberts, a/k/a “Righteous,” a/k/a “Lee;” David Antonio, a/k/a “Papi,” a/k/a “Pop,” a/k/a “Victor Arias,” a/k/a “Santiago Ramirez;” Brian Phelps, a/k/a “B-Money,” a/k/a “B;” Timothy Wimbush, a/k/a “Young Money;” Taquan Williams, a/k/a “Trip;” Jubri West; Dennis Cheston Jr., a/k/a “Beans;” and Wayne K. Bush – with various crimes relating to the drug-trafficking conspiracy, including firearms charges against Phelps, Wimbush, Williams, West, and Cheston. To date, 20 defendants have pleaded guilty in connection with their participation in the conspiracy.
From as early as October 2017 to October 2018, the defendants and others engaged in a narcotics conspiracy that operated in the areas of Martin Luther King Boulevard, Sanford Street, Middle Rose Street, Southard Street, Hoffman Avenue, and Coolidge Avenue in Trenton, and which sought to profit from the distribution of heroin and numerous other controlled substances. Through the interception of telephone calls and text messages pursuant to court-authorized wiretap orders, controlled purchases of heroin, the use of confidential sources of information, and other investigative techniques, law enforcement learned that in September and October 2018, Ellis—who had been released from state prison in August 2018 for two prior convictions for conspiracy to commit first-degree murder—obtained large quantities of heroin on multiple occasions from codefendant Jakir Taylor, which he redistributed to others in and around Trenton. The investigation also revealed that, on several occasions when Ellis obtained supplies of heroin from Taylor, he also obtained a firearm from Taylor for protection in redistributing the narcotics. Hampton was a close associate of Taylor, and he regularly obtained and redistributed large quantities of heroin in furtherance of the conspiracy. The investigation also revealed that Hampton had access to one or more firearms.
U.S. Attorney Carpenito credited special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie; special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Division, under the direction of Special Agent in Charge Charlie J. Patterson, ATF Trenton Field Office; officers of the Trenton Police Department, under the direction of Police Director Sheilah Coley; officers of the Princeton Police Department, under the direction of Chief of Police Nicholas Sutter; officers of the Ewing Police Department, under the direction of Chief of Police John P. Stemler III; officers of the Burlington Township Police Department, under the direction of Police Director Bruce Painter; and detectives of the Burlington County Prosecutor’s Office, under the direction of Prosecutor Scott A. Coffina, with the investigation leading to today’s charges. He also thanked officers of the New Jersey State Police, under the direction of Superintendent Col. Patrick J. Callahan; detectives of the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo Onofri; officers of the Mercer County Sheriff’s Office, under the direction of Sheriff John A. Kemler; and members of the New Jersey State Board of Parole for their assistance in the case.
The government is represented by Assistant U.S. Attorneys J. Brendan Day and Alexander Ramey of the U.S. Attorney’s Office’s Criminal Division in Trenton.
This case was conducted by the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Greater Trenton Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies to enhance the identification, apprehension, and prosecution of individuals involved in gang-related activities, violent crime, and drug distribution in and around the greater Trenton area. 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 against the remaining defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
Defense counsel: Hampton: Stanley O. King Esq., Woodbury, New Jersey
Ellis: Jose Luis Ongay Esq., Camden, New JerseyTwo Plead Guilty in Safe Streets Task Force Investigation into Drug Trafficking by the “SCO” GangRead the Press Release
PITTSBURGH, PA - Two former residents of Southwestern Pennsylvania pleaded guilty in federal court to charges related to drug trafficking in connection with a large-scale investigation conducted by the Greater Pittsburgh Safe Streets Task Force, United States Attorney Scott W. Brady announced today.
Michael Rose, 28, formerly of Pittsburgh, pleaded guilty to three counts related to drug trafficking and one count of possession of a firearm by a convicted felon, before Senior United States District Judge Arthur J. Schwab.
Lisamarie Ross, 35, formerly of New Alexandria, pleaded guilty to two counts related to drug trafficking, also before Judge Schwab.
In connection with the guilty plea, the court was advised that the Greater Pittsburgh Safe Streets Task Force conducted a long-term investigation of drug trafficking occurring in and around the Braddock section of Pittsburgh. Michael Rose, Lisamarie Ross, and other individuals, were identified as members or associates of a neighborhood based street gang, self-titled "SCO", which illegally distributed controlled substances in the Greater Pittsburgh region. In January of 2019, investigators obtained authorization to conduct a federal wire investigation, which continued through May of 2019.
During that time period, the Court was informed, that intercepted communications confirmed that Rose was conspiring with others to distribute controlled substances in Western Pennsylvania. On April 15, 2019, Rose was apprehended by law enforcement while conducting a drug transaction in the parking lot of the Monroeville Mall. After arresting MRose and seizing a firearm, which Rose was not permitted to possess, as well as heroin, cocaine and cocaine base packaged for resale from the vehicle, Rose broke free from law enforcement and ran into the Monroeville Mall while in handcuffs. After he was apprehended, law enforcement found $829.00 on his person. The Court accepted Rose’s guilty plea to conspiracy to distribute 198.4 grams of heroin, 28 grams of cocaine, and 154 grams of cocaine base, commonly known as crack.
As to Ms. Ross, the Court was informed that intercepted communications confirmed that she was conspiring with others to distribute controlled substances in Western Pennsylvania. The Court was informed that Ross was intercepted brokering drug transactions between members of the conspiracy and her drug customers. The Court accepted Ross’s guilty plea to conspiracy to distribute 32 grams of heroin and 120 grams of cocaine base, commonly known as crack.
Judge Schwab scheduled sentencing for April 22, 2020 at 10:00 a.m. for Rose and April 20, 2020 at 10:00 a.m. for Ross. For both defendants, the law provides for a total sentence of not less than five years and not more than 40 years in prison, with a maximum fine of $7,250,000 for Rose and a maximum fine of $6,000,000 for Ross. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants. Both Mr. Rose and Ms. Ross remain incarcerated pending sentencing.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Drug Enforcement Administration, Bureau of Alcohol Tobacco Firearms and Explosives, United States Marshals Fugitive Task Force, Allegheny County Sheriff’s Office, Allegheny County Police Department, Pennsylvania State Police, Pennsylvania Attorney General’s Office Bureau of Narcotics, and the Pittsburgh Bureau of Police. Other assisting agencies include the Monroeville Police Department, Penn Hills Police Department, Wilkinsburg Police Department, and Allegheny County Adult Probation.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Two Mexican Mafia ‘Secretaries’ Sentenced to Federal Prison Terms for Being Intermediaries for Imprisoned Street Gang MemberRead the Press Release
LOS ANGELES – A Los Angeles man and his long-time girlfriend were sentenced today to federal prison terms for collecting and storing extortionate “taxes” for the man’s brother, an imprisoned Mexican Mafia member, and for acting as the brother’s eyes and ears on the street, delivering coded messages to him, including one message that resulted in an individual being marked for death.
Thomas Gonzales, 61, and Gloria Valerio, 66, both of the Elysian Valley neighborhood of Los Angeles, were sentenced today by United States District Judge Philip S. Gutierrez. Gonzales was sentenced to 66 months in federal prison. Valerio was sentenced to 60 months in federal prison. Both defendants were immediately remanded into custody.
After a two-week trial, Gonzales and Valerio were found guilty by a jury on March 4 of conspiracy to violate the Racketeer Influenced and Corrupt Organizations Act (RICO). Gonzales also was found guilty of making a false statement to a law enforcement officer.
Gonzales and Valerio were named in a 2015 federal RICO indictment that charged 22 defendants and outlined how Gonzales’s brother, Mexican Mafia member and senior Frogtown gang member Arnold “Arnie” Gonzales, 59, had ordered the unification of the traditional rival Los Angeles street gangs of Frogtown, Toonerville, and Rascals.
The inter-gang alliance began in 2010 and resulted in the three gangs controlling the narcotics trade and other illegal activities in an area along the Los Angeles River that ran from Elysian Park nearly to Burbank. Through violence and threats of violence, senior members collected money, or “taxes,” from legitimate and illegal businesses in the area for Arnie Gonzales’s benefit.
Gonzales and Valerio acted as “secretaries,” or people who act as the bridge between imprisoned members of the Mexican Mafia prison gang and the gang members on the street. “Secretaries” often are not gang members themselves and have normal jobs and minimal criminal histories, which is why the Mexican Mafia targets them to be used as intermediaries, as they are able to make prison visits to Mexican Mafia members without arousing suspicion. In this case, Valerio worked as an insurance analyst and Thomas Gonzales was an HVAC technician.
Valerio and Thomas Gonzales visited Arnie Gonzales, who was serving a life sentence at Pelican Bay State Prison for a murder conviction. As Arnie Gonzales’s eyes and ears on the streets, Thomas Gonzales and Valerio stored the extortionate “tax” money gang leaders had collected from street gangs in Arnie Gonzales’s name within the territories controlled by him. Valerio deposited some of that money into Arnie Gonzales’s prison account. A search warrant executed at the defendants’ residence in June 2015 resulted in the seizure of more than $22,000 in cash.
Gonzales and Valerio used coded language to inform Arnie Gonzales about an individual who was falsely claiming to have the authority to collect “taxes” on Arnie Gonzales’s behalf. That individual later was marked for death.
A total of 21 people have been convicted in this case.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the California Department of Corrections and Rehabilitation - Special Service Unit; the Glendale Police Department; and the Los Angeles Police Department. This investigation was conducted with the support of the Organized Crime Drug Enforcement Task Force (OCDETF).
This case is being prosecuted by Assistant United States Attorneys Carol Alexis Chen, chief of the International Narcotics, Money Laundering, and Racketeering Section, and Alexander B. Schwab of the Major Frauds Section.
Two Huntington Men Sentenced to Prison for Federal Drug CrimesRead the Press Release
HUNTINGTON, W.Va. – Two Huntington men were sentenced by United States District Judge Robert C. Chambers to federal prison for drug crimes, announced United States Attorney Mike Stuart.
“We continue to prosecute dealers peddling opioids, including pills, heroin and synthetic opioids such as fentanyl,” said United States Attorney Mike Stuart. “As long as we have drug dealers distributing their poisons in our communities, my office will be prosecuting them with a sense of urgency. Last year, more than 900 lives were lost due to drug overdoses in West Virginia and every one of them matter to me. We must hold drug dealers accountable for the chaos and despair they peddle.”
James Daniel, also known as “Mike D,” 41, was sentenced to 51 months in prison for possession with intent to distribute heroin. Daniel previously admitted that on May 23, 2017, officers with the Huntington Police Department executed a search warrant on a residence he was staying in. Members of West Virginia Parole Services and officers of the Huntington Police Department located approximately 6 grams of heroin. Daniel admitted to officers that he intended to sell the heroin. The Huntington Police Department conducted the investigation. Assistant United States Attorney Stephanie S. Taylor handled the prosecution. This case is being prosecuted as part of Operation Synthetic Opioid Surge (S.O.S.), an enforcement surge that seeks to reduce the supply of deadly synthetic opioids in high impact areas.
In a separate case, Billy Dean Vance, 43, was sentenced to 12 months and a day in prison for distributing oxycodone. Vance also must serve 3 years of supervised release following his sentence. He will be on home confinement for the first six months of his supervised release. On June 20, 2018, Vance sold 20, 30-milligram oxycodone pills for $700 to a person working as a confidential informant for the Drug Enforcement Administration. The sale occurred in the driveway of Vance’s Crestmont Drive home. Vance made two additional sales on prior occasions, both involving 10 30-milligram oxycodone pills. Those sales occurred on May 31 and June 12, 2018. On July 2, 2018, law enforcement served a search warrant at Vance’s residence and found more oxycodone pills, hydrocodone pills and marijuana. They also recovered approximately $3,500 in cash. The Drug Enforcement Administration conducted the investigation. Assistant United States Attorney Greg McVey handled the prosecution.
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Twenty Defendants Charged with Distributing Heroin/Fentanyl in Springfield AreaRead the Press Release
SPRINGFIELD, Mo. – Twenty defendants have been charged in federal court for their roles in a conspiracy to distribute heroin and fentanyl in the Springfield, Missouri, area.
Many of the defendants were arrested in a coordinated law enforcement sweep that began Thursday, Nov. 14, and continued into the weekend, after five criminal complaints were filed under seal on Wednesday, Nov. 13. Those complaints have now been unsealed and made public.
“These criminal complaints reflect a tremendous commitment in time and resources on the parts of the Drug Enforcement Administration, the Missouri State Highway Patrol, the Springfield Police Department, the Greene County Sheriff’s Department, and the Greene County Prosecutor’s Office in addressing the serious problem of heroin/fentanyl distribution in Springfield and Greene County,” said U.S. Attorney Tim Garrison. “They are a significant step in working to make this area safer and to protect citizens from the danger this type of criminal activity poses.”
According to court documents, the Drug Enforcement Administration and local law enforcement partners launched an investigation into the drug-trafficking organization in June 2019. Affidavits cite numerous undercover and controlled drug purchases, as well as seizures of heroin, fentanyl, and large amounts of cash. Heroin and fentanyl, the affidavits say, was sold to Springfield residents by suppliers in Chicago, Illinois, and St. Louis, Missouri.
“I’m grateful for the law enforcement partnerships we have that enable us to bring together the resources needed to effectively address significant crime, health, and safety issues such as this,” said Chief Paul Williams of the Springfield Police Department. “The recent spike in drug overdoses raised public awareness of the extent of the problem we face in our community, and this investigation highlights our efforts to combat it-at the source.”
“I appreciate all of our partners joining together to go after these drug dealers and bring justice to these individuals plaguing our streets with these lethal drugs,” said Greene County Sheriff Jim Arnott.
“I am proud to be in partnership with the law enforcement agencies of southwest Missouri,” said Greene County Prosecutor Dan Patterson, “and I want to thank U.S. Attorney Tim Garrison and his office for pursuing these federal charges. As we have done in the past, our agencies have come together to combat a serious criminal problem. These complaints are a reflection of the outstanding law enforcement collaboration that goes on behind the scenes every day protecting our community.”
“The Missouri State Highway Patrol continues to work with local, state, and federal law enforcement agencies to fight the misuse of opioids,” said Col. Eric T. Olson, superintendent. “Troopers are dedicated to a multifaceted approach of prevention, education, enforcement, and treatment. The Patrol is hopeful operations and arrests such as these, will not only have an impact on illegal activity, but raise further awareness about the risks of opioid misuse. Joint investigations with local, state, and federal authorities can play a critical role in empowering others to make safer choices and, in turn, prevent future deaths due to overdose.”
Wheeler, et al.
Jerry Bedell, 29, his father, Jerry Wheeler, 44, his significant other, Bethany Rice, 28, all of Springfield, Missouri, and his mother, Nichole Bedell, 48, of Nixa, Missouri; Sheron Loggins, 46, of Florissant, Missouri; Delante Worsham, 34, Crystal J. Hill, 23, William Leath, 44, Marquise Martin, 29, and Robin Roberts, 50, all of Springfield, were charged with participating in a conspiracy to distribute heroin and/or fentanyl.
According to an affidavit filed in support of the federal criminal complaint, Loggins was the source for Wheeler and Jerry Bedell to obtain heroin or fentanyl. Nichole Bedell, Rice, Worsham, Leath, Martin, and Roberts allegedly obtained heroin or fentanyl from Jerry Bedell or Wheeler for further distribution. Hill received heroin or fentanyl from Worsham for further distribution.
A Phelps County, Mo., sheriff’s deputy stopped Loggins on Interstate 44 on Sept. 8, 2019, while he was traveling toward Springfield. The deputy seized approximately 496 grams of heroin from Loggins’ vehicle. In another incident, Worsham was stopped by a Springfield police officer, who searched his vehicle and seized 21.5 grams of fentanyl.
Burkes, et al.
Myron C. Burkes, 32, of Springfield, and Devonte A. Smith, 23, and Danjouna A. Wiggins, 24, both of Chicago, were charged with participating in a conspiracy to distribute heroin and/or fentanyl from Sept. 23 to Oct. 24, 2019.
According to an affidavit filed in support of the criminal complaint, Smith provided heroin and/or fentanyl to Burkes, who distributed in the Springfield area. Smith allegedly coordinated the delivery of the illegal drugs to Burkes by couriers, including Wiggins, who was Smith’s significant other. Wiggins was intercepted at a St. Louis bus station, the affidavit says, while carrying illegal drugs from Chicago en route to Springfield to deliver to Burkes.
Morales
Brittany N. Morales, 27, of Springfield, was charged with participating in a conspiracy to distribute heroin and/or fentanyl from Sept. 23 to Nov. 12, 2019.
According to an affidavit filed in support of the criminal complaint, after Danjouna Wiggins was intercepted at a St. Louis bus station, Myron Burkes drove to Chicago with Morales and another person to purchase heroin/fentanyl. (Burkes and Wiggins are charged in a separate complaint.) Burkes’ vehicle was stopped on Nov. 11, 2019, during the return trip from Chicago to Springfield. Law enforcement officers found approximately 237 grams of heroin/fentanyl hidden in Morales’ boots.
Dailey, et al.
Derrick E. Dailey, 33, William C. Farisse, 33, Roderick L. Stewart, 34, and Robert D. Everette, 40, all of Springfield, were charged with participating in a conspiracy to distribute heroin and/or fentanyl.
According to an affidavit filed in support of the criminal complaint, Dailey was the source who supplied Farisse and Stewart with heroin/fentanyl for further distribution in the Springfield area. Farisse allegedly supplied Everette with heroin/fentanyl to further distribute. A
Law enforcement officers executed a search warrant at Farisse’s residence on June 8, 2018, and he was arrested. Officers seized 16 plastic bags that contained a total of 205.58 grams of fentanyl. Farisse told officers he purchased the six ounces of heroin/fentanyl for $10,000, the affidavit says, and expected to make $10,000 in profit after selling it. Farisse explained that he would sell one tenth of one gram for $20. Farisse also told officers he had been selling approximately six ounces per week for the past month.
According to the affidavit, Farisse fled from law enforcement officers during a traffic stop on March 27, 2018. Farisse told officers he threw approximately six ounces of heroin/fentanyl from the vehicle during the pursuit. Missouri State Highway Patrol troopers recovered a sock containing the heroin/fentanyl following the pursuit.
Everette told officers he purchased heroin for $100 per gram, and sold between two and four grams of heroin per day. Farisse allegedly had been cutting his heroin with fentanyl to make the drug more potent.
McDonald, et al.
Crystal D. McDonald, 28, and Latoya W. O’Connor, 28, both of Springfield, were charged with participating in a conspiracy to distribute heroin from July 15 to Sept. 18, 2019.
According to an affidavit filed in support of the criminal complaint, O’Connor sold a confidential source four grams of heroin for $520 on July 19, 2019. McDonald sold an undercover officer 12 grams of heroin for $1,500 on Sept. 18, 2019, after meeting with O’Connor.
The charges contained in these complaints are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
These cases are being prosecuted by Assistant U.S. Attorneys Byron H. Black and Josephine L. Stockard and Special Assistant U.S. Attorney Jessica R. Keller. It was investigated by the Drug Enforcement Administration Task Force, the Springfield, Missouri, Police Department, the Greene County, Missouri, Sheriff’s Department, the Phelps County, Missouri, Sheriff’s Department, the Missouri State Highway Patrol, and the Illinois State Police.
Topeka Man Pleads Guilty to Attempted Robbery at Liquor StoreRead the Press Release
TOPEKA, KAN. – A Topeka man pleaded guilty today to an attempted robbery at a liquor store, U.S. Attorney Stephen McAllister said.
Joseph Bryant Toole, III, 36, Topeka, Kan., pleaded guilty to one count of attempted robbery of a commercial business. In his plea, he admitted that on Nov. 2, 2018, he and a juvenile male attempted a robbery at Lynn’s Liquor, 3335 SW Gage Blvd. in Topeka. However, the door was locked and they were unable to enter the business. They were wearing blue bandanas over their faces and carrying what appeared to be a handgun.
Investigators were able to identify a vehicle that led them to the defendant.
Sentencing is set for Feb. 24. He could face a penalty of up to 20 years in federal prison and a fine up to $250,000. McAllister commended the FBI, the Topeka Police Department and Assistant U.S. Attorney Jared Maag for their work on the case.
Steuben County Man Pleads Guilty to Threatening to Kill A U.S. Congresswoman and Illegally Possessing FirearmsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Patrick W. Carlineo, Jr., 55, of Addison, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to threatening to assault and murder a United States official, and being a felon in possession of firearms. The charges carry a maximum penalty of 10 years in prison, a $250,000 fine, or both.
Assistant U.S. Attorney Brett A. Harvey, who is handling the case, stated that on March 21, 2019, at approximately 12:20 p.m., the defendant placed a telephone call to the offices of Congresswoman Ilhan Omar, a Member of the United States Congress from the 5th Congressional District in Minnesota, in Washington, D.C. A member of Congresswoman Omar’s staff answered the call. During the call, the defendant stated, “Do you work for the Muslim Brotherhood? Why are you working for her, she’s a (expletive) terrorist. Somebody ought to put a bullet in her skull. Back in the day, our forefathers would have put a bullet in her (expletive).” The staff member recalled that the defendant stated, “I’ll put a bullet in her (expletive) skull.”
Carlineo made the threatening call to retaliate against Congresswoman Omar based on her performance of her official duties. Because he hates individuals he views as radical Muslims being in the United States government, he believed that Congresswoman Omar supports Hamas and the Muslim Brotherhood and that Congresswoman Omar’s election to the United States Congress was illegitimate.
After receiving the call, the threat was referred to the United States Capitol Police, Threat Assessment Section, who began an investigation in coordination with the FBI.
In addition, on April 5, 2019, the defendant – a previously convicted felon – possessed a load .45 caliber handgun, three rifles, two shotguns, and hundreds of rounds of ammunition at his residence in Addison, NY. In 1998, the defendant was convicted of Criminal Mischief in the Second Degree in Steuben County Court. In view of that conviction defendant was legally prohibited from possessing a firearm.
“This prosecution highlights the fact that the rights secured in our Constitution carry with them certain responsibilities,” noted U.S. Attorney Kennedy. “The First Amendment right to freedom of speech carries with it the responsibility that individuals not make threats to harm lawmakers simply because they may disagree with them. The Second Amendment right to bear arms carries with it the responsibility that individuals who desire to possess firearms not commit felony crimes. This Office remains vigilant in upholding the rule of law and reinforcing the notion that—above all else—our Nation’s founders viewed self-governance as the responsibility that each citizen has to control and govern their own behavior.”
The plea is the result of an investigation by Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the United States Capitol Police, under the direction of Matthew R. Verderosa.
Sentencing is scheduled for February 14, 2020, at 11:00 a.m. before Chief Judge Geraci.# # # #
South L.A. Gang Member Sentenced to Life Plus 10 Years in Federal Prison for Ambush Murder of Man in Front of His Toddler SonRead the Press Release
LOS ANGELES – A member of the Pueblo Bishop Bloods street gang was sentenced today to life -- plus an additional 10 years -- in federal prison for racketeering offenses that included the murder of a man in front of the victim’s 2-year-old son.
Rondale Young, a.k.a. “Pueblo Grump,” 37, of South Los Angeles, was sentenced today by United States District Judge S. James Otero.
In May, after a 10-day trial, a federal jury found Young guilty of conspiring to violate the Racketeer Influenced and Corrupt Organizations Act (RICO) in relation to the August 2, 2009 murder of Francisco Cornelio. Mr. Cornelio was a 23-year-old man with no gang affiliation and was shot to death at point-blank range while vacuuming his car in front of his toddler son.
The jury also found Young guilty of conspiracy to commit a violent crime in aid of racketeering (VICAR); VICAR murder; and possessing, using and discharging a firearm resulting in death in relation to a crime of violence.
On the day of Mr. Cornelio’s murder, Young, accompanied by other armed gang members, drove his mother’s black Chrysler 300 car into rival gang territory, seeking retaliation for a fatal drive-by shooting of a Pueblo Bishop Bloods gang member. Mr. Cornelio was targeted simply because he was Latino and was in rival gang territory.
“The seriousness of (Young’s) offense is among the most egregious in the federal code, among the few punishable by death,” prosecutors wrote in the government’s sentencing memorandum. “The ultimate consequences of the murder...included to: rob a young wife of her husband; rob a young son of his father and of his childhood; and to further inflame racial and gang tensions in combustible South Los Angeles, thereby putting the entire community at risk.”
Local authorities originally charged Young in 2009 with killing Mr. Cornelio, but he was acquitted by a state jury.
An August 2010 indictment charged Young and 44 other members and associates of the gang with being members of a criminal enterprise that engaged in drug dealing, firearms trafficking, murder, witness intimidation and armed robbery as part of the gang’s efforts to control and terrorize the Pueblo del Rio Housing Projects in South Los Angeles.
In 2013, Young was convicted of racketeering charges in connection to the indictment and Mr. Cornelio’s murder and was sentenced to life in federal prison. That conviction was vacated in 2017 by the U.S. Court of Appeals for the Ninth Circuit, which cited evidentiary errors during the first trial. The case was sent back to the district court for a retrial. Young has been in federal custody since the 2010 indictment.
With Young’s conviction, all 45 defendants charged in this matter have been convicted of federal RICO and related charges, and have been held responsible for multiple murders.
This matter was investigated by the FBI; the Los Angeles Police Department; the United States Department of Housing and Urban Development, Office of Inspector General; the California Department of Corrections and Rehabilitation; and the Los Angeles County District Attorney’s Office.
This case was prosecuted by Assistant United States Attorney Mack E. Jenkins, Chief of the Public Corruption and Civil Rights Section; Assistant United States Attorney Frances S. Lewis of the Public Corruption and Civil Rights Section; and Assistant United States Attorney Julia S. Choe of the Cyber and Intellectual Property Crimes Section.
Sixth and Final Defendant Pleads Guilty to Participating in Sophisticated International Cellphone Fraud SchemeRead the Press Release
A citizen and resident of the Dominican Republic pleaded guilty today in Miami, Florida, to multiple criminal charges in connection with a sophisticated global cellphone fraud scheme that involved compromising cellphone customers’ accounts in the United States and “cloning” their phones to make fraudulent international calls.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
Edgar Estarlin Peralta Lopez, 42, pleaded guilty to one count of conspiracy to commit wire fraud, access device fraud, the use, production or possession of modified telecommunications instruments and the use or possession of hardware or software configured to obtain telecommunications services; one count of wire fraud and one count of aggravated identity theft. Sentencing is scheduled for Jan. 24, 2020, before U.S. District Judge Beth Bloom of the Southern District of Florida.
According to the plea agreement, Peralta and his co-conspirators participated in a scheme to steal access to existing cellphone accounts, and fraudulently open new cellphone accounts, using the personal information of individuals around the United States.
In the plea agreement, Peralta admitted that he played at least two roles in the conspiracy. First, he was a telecommunications trafficker. Specifically, Peralta would contract with telecommunication companies to transmit international calls for them for payment and then route those calls through cellphones reprogrammed with stolen or compromised telecommunications identifying information located at “call sites” in the United States. Peralta and other co-conspirators transmitted thousands of calls to Cuba, Jamaica, the Dominican Republic, and other countries with high calling rates. The calls were later billed to United States customers’ compromised accounts. Second, Peralta was a “line” supplier, providing his co-conspirators with stolen or compromised telecommunications identifying information that they then used to reprogram the cellphones they controlled at call sites.
In addition, in the plea agreement, Peralta admitted to trafficking in approximately 3,158 combinations of stolen or compromised telecommunications identifying information, which were found in around over 1,390 emails he exchanged with co-conspirators. Verizon Wireless reported that fraudulent use of just three of these combinations resulted in a loss of over $33,000. Peralta admitted to a loss amount of at least $315,800.
Peralta is a citizen of the Dominican Republic. He was arrested in the Dominican Republic at the request of the United States, extradited to Miami in August where he is currently in custody.
Peralta is the sixth and last defendant to plead guilty in the case. Previously, defendants Edwin Fana, Farintong Calderon, Jose Santana, Ramon Batista and Braulio de la Cruz pleaded guilty to similar charges and have already been sentenced to prison terms ranging from 36 months to 75 months.
The FBI Miami’s Cyber Task Force investigated the case, dubbed Operation Toll Free, which is part of the FBI’s ongoing effort to combat large-scale telecommunications fraud. The Criminal Division’s Office of International Affairs handled the extradition in this matter, with assistance from the U.S. Marshals Service. Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Jared M. Strauss of the Southern District of Florida are prosecuting the case.
Shawnee Man Sentenced for Illegal Firearm, CocaineRead the Press Release
KANSAS CITY, Mo. – A Shawnee, Kansas, man was sentenced in federal court today for illegally possessing a firearm and possessing cocaine.
Anthony Whitehead, 32, was sentenced by U.S. District Judge Greg Kays to 13 years in federal prison without parole. The court also ordered Whitehead to pay a $5,000 fine.
Whitehead was found guilty at trial on June 19, 2019, of one count of being a felon in possession of a firearm and one count of possessing a controlled substance.
A federal arrest warrant was issued for Whitehead in the District of Kansas on Dec. 29, 2016, for unlawful flight to avoid prosecution in regards to a Johnson County, Kansas, warrant for attempted kidnapping. Agents with the U.S. Marshal’s Service Fugitive Task Force received information that Whitehead was staying at the Relax Inn, 6300 Blue Parkway, Kansas City, Missouri.
On Jan. 20, 2017, federal agents contacted Whitehead and his girlfriend in their room at the Relax Inn, where they found a loaded Glock .40-caliber semi-automatic handgun hidden underneath the mattress of the bed. Agents also found a cellophane bag that contained approximately 1.5 grams of cocaine in one of Whitehead’s pants pockets.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Whitehead has two prior felony convictions for fleeing and attempting to elude a law enforcement officer, as well as prior felony convictions for unlawful possession of a firearm, possession of a controlled substance, possession with the intent to sell marijuana, domestic assault, endangering the welfare of a child, unlawful use of a weapon, and tampering with a motor vehicle.
This case was prosecuted by Assistant U.S. Attorney Brad K. Kavanaugh and Special Assistant U.S. Attorney Robert M. Smith. It was investigated by the U.S. Marshal’s Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kansas City, Mo., Police Crime Lab and the Missouri State Highway Patrol Crime Lab.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Sacramento Man Sentenced to 4 Years in Prison for Access Device Fraud, Identity Theft, and Illegal Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — Ahmad Nassar, 33, of Sacramento, was sentenced today by U.S. District Judge Kimberly J. Mueller to four years in prison for aggravated identity theft, being a felon in possession of a firearm, and access device fraud, U.S. Attorney McGregor W. Scott announced.
According to court documents, from August 2015 through June 2017, Nassar was engaged in identity theft, unauthorized bank account takeovers, and obtaining and using unauthorized and counterfeit access devices in the form of credit cards, debit cards, account numbers, and other financial account information. On May 10, 2017, agents executing search warrants at two properties in Sacramento associated with Nassar led to the seizure of a loaded .22‑caliber handgun from underneath a pillow in a bedroom of one of the properties in which Nassar himself was found. In addition, agents seized numerous boxes containing credit cards, debit cards, mail (some with “forwarding” address labels), and federal and state government-issued identification cards, bearing names of people other than Nassar, and at least 55 electronic devices, including computers, cellphones, media storage drives, and other electronic devices including a “CelleBrite” device commonly used by law enforcement to conduct forensic examinations of cellphones. Nassar used intricate techniques to obtain victims’ personal identifying and financial information, including online account takeovers that continued even after search warrants were executed on his properties. Nassar’s conduct caused at least $558,276 in losses.
This case was the product of an investigation by the Federal Bureau of Investigation and Sacramento County Department of Human Assistance. Assistant U.S. Attorney Matthew M. Yelovich is prosecuting the case.
Repeat Offender Sentenced to 60 Months in Federal Prison for Illegal Firearm PossessionRead the Press Release
PORTLAND, Ore.—Dante Emmanuel Hall, 32, of Portland, was sentenced today to 60 months in federal prison and three years’ supervised release for illegally possessing a firearm as a convicted felon.
According to court documents, Hall was involved in an early-morning fight in a downtown Portland parking lot on September 30, 2018 that resulted in two shootings. Surveillance video obtained from an adjacent business recorded Hall arriving with a large group of people and stashing an item near the tire of a parked vehicle. This item was later determined to be a loaded Walther 9mm handgun.
The fight began when an individual attempted to punch Hall in the face. In response, Portland resident Patrick Kimmons brandished a firearm and fired three shots into the chest of Hall’s assailant. One of the rounds struck Hall in the hip. Kimmons was then shot and killed by police after running at officers with a firearm and failing to comply with their commands. Within minutes of the shooting, Hall and another subject arrived at Legacy Emanuel Hospital with gunshot wounds and police were notified.
After attempting to get a statement from a belligerent and uncooperative Hall, the responding officer applied for, obtained and executed a federal search warrant on Hall’s hospital room. The officer located and seized Hall’s cell phone hidden beneath the hospital bed mattress. A search of the phone revealed numerous photos and videos of Hall in possession of three different firearms including what appeared to be the same Walther 9mm handgun found in the parking lot where the fight and shootings occurred.
Hall has a long history of firearm-related offenses and convictions.
On September 6, 2012, he pleaded guilty in federal court to being a felon in possession of a firearm and was sentenced to 21 months in prison. Four days after his release from prison after serving just eight months, Hall was involved in a gang-related shooting during which he fired a handgun outside a Portland strip club. He was convicted of unlawful use of a weapon in Multnomah County Circuit Court and sentenced to 40 months in prison.
Within months of his release from state prison and recommencing federal supervised release, Hall once again violated his supervision terms. On August 9, 2017, he was arrested riding in a car with a known Rollin’ 60s gang member who was driving and eluded police. As a result, on October 19, 2017, he was sentenced to 12 months and one day in prison for the violation with no re-imposition of supervised release.
Within 48 hours of his final release from federal prison, Hall possessed a firearm and was involved in a June 24, 2018 shooting outside a bar in Vancouver, Washington. The shooting injured an innocent bystander caught in the crossfire. This shooting occurred approximately three months prior to the September 2018 shooting in downtown Portland.
On April 25, 2018, Hall pleaded guilty to one count of felon in possession of a firearm.
This case was investigated by the Portland Police Bureau. It was prosecuted by Leah K. Bolstad and Thomas H. Edmonds, Assistant U.S. Attorneys for the District of Oregon.
The case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Professor of International Studies Charged in International Money Laundering SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”) announced the arrest today of BRUCE BAGLEY on charges of conspiracy to commit money laundering and money laundering. BAGLEY allegedly participated in a conspiracy to launder the proceeds of a Venezuelan bribery and corruption scheme into the United States. BAGLEY will be presented today in federal court in Miami, Florida. The case is assigned to U.S. District Judge Jed S. Rakoff in the Southern District of New York.
U.S. Attorney Geoffrey S. Berman said: “Bruce Bagley, a college professor and author of the book Drug Trafficking, Organized Crime, and Violence in the Americas Today, allegedly opened bank accounts for the express purpose of laundering money for corrupt foreign nationals. Moreover, the funds Bagley was allegedly laundering were the proceeds of bribery and corruption, stolen from the citizens of Venezuela. Today’s charges of money laundering and conspiracy should serve as an object lesson for Bruce Bagley, who now faces a potential tenure in federal prison.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “Criminals employ a host of methods to launder the proceeds of their crimes, but in order to be successful, they need a way to hide and move their money. As we allege, Bagley, an American professor, contributed to the success of illegal activity overseas, carried out against the Venezuelan people, by facilitating access to illicitly obtained funds, and profiting from his role in the crime. About the only lesson to be learned from Professor Bagley today is that involving oneself in public corruption, bribery, and embezzlement schemes is going to lead to an indictment.”
According to the allegations in the Indictment unsealed today[1]:
In or about November 2016, BRUCE BAGLEY, a professor of international studies with publication credits including the book Drug Trafficking, Organized Crime, and Violence in the Americas Today, opened a bank account (“Account-1”) on behalf of a company (“Company-1”) that BAGLEY owned and controlled. Between in or about November 2016 and in or about November 2017, Account-1 had minimal activity. In or about November 2017, Account-1 began receiving monthly deposits of hundreds of thousands of dollars from bank accounts located in Switzerland and the United Arab Emirates (the “Overseas Accounts”). Each month, BAGLEY would receive a deposit of approximately $200,000 from one of the Overseas Accounts into Account-1. Thereafter, he would withdraw approximately 90 percent of the funds in the form of a cashier’s check, payable to an account held by another individual (“Individual-1”). BAGLEY would send the remainder of the funds to his personal account. BAGLEY and Individual-1 would visit the bank together to complete these transactions. Between in or about November 2017 and in or about October 2018, Account-1 received approximately $2.5 million from the Overseas Accounts.
The Overseas Accounts belonged to a Colombian individual (“Individual-2”). BAGLEY and Individual-1 discussed the fact that they were moving Individual-2’s funds and that the funds represented the proceeds of foreign bribery and embezzlement stolen from the Venezuelan people. Despite this fact, BAGLEY continued to receive money from accounts belonging to Individual-2, and continued to pass the majority of those funds to Individual-1. Moreover, BAGLEY entered into sham contracts that purported to justify the transfer of Individual-2’s funds into Account-1.
In or about October 2018, Account-1 was shut down for suspicious activity. Nevertheless, in or about December 2018, BAGLEY provided Individual-1 with information for a new bank account (“Account-2”) in order to transfer additional money belonging to Individual-2. On two occasions, BAGLEY received funds into Account-2 after Individual-1 had told BAGLEY that the funds represented the proceeds of bribery and public corruption. BAGLEY transferred the majority of these funds to Individual-1 but retained approximately 10 percent as a commission for his services.
* * *
BAGLEY, 73, of Coral Gables, Florida, is charged with one count of conspiracy to commit money laundering, and two counts of money laundering, each of which carries a maximum sentence of 20 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 defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of Special Agents from the FBI’s New York Money Laundering Investigation Squad.
The prosecution of this case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Thane Rehn and Sheb Swett are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is 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 below constitute only allegations, and every fact described should be treated as an allegation.
Portland Couple Pleads Guilty to Fraud Scheme Targeting Elderly CoupleRead the Press Release
PORTLAND, Ore.—A Portland couple pleaded guilty today in federal court to defrauding a local elderly couple of approximately $1.8 million in a scheme lasting more than two years.
Ronnie Stevens aka Tim Ephrem, 50, and Tina Ephrem aka Lisa Ann Peterson, 43, each pleaded guilty today to a one count of conspiracy to commit wire fraud.
According to court documents, between September 2016 and December 2018, Stevens and Ephrem conspired with one another to defraud an elderly couple, Adult Victim 1 (AV1) and Adult Victim 2 (AV2).
The scheme began in September 2016 when AV1, who was 76 years old at the time, offered a commercial trailer for sale at his business. Stevens claimed he brokered vehicle sales and could sell the trailer in exchange for a cut of the profit. Stevens did not ultimately sell the trailer, but quickly ingratiated himself with the victim.
Stevens later approached AV1 with an alleged lucrative investment opportunity. Stevens claimed that a friend named Tammy Ward was set to inherit an estate valued in excess of $100 million from her recently deceased father, but could not come up with the fees and legal costs necessary to release the estate. Stevens told AV1 that if he could advance the funds to release the estate, AV1 would receive a substantial return when the estate closed.
AV1 made multiple payments to Stevens over a period of time as Stevens told him various stories about delays and increased costs associated with the release of the estate. As part of the conspiracy, AV1 and AV2 both spoke to a woman on the phone who claimed to be Tammy Ward. Investigators revealed that Tammy Ward was a fictitious identity used by Stevens and Ephrem as part of the fraud scheme.
Between 2016 and 2018, Stevens placed more than 5,000 outgoing calls to AV1 and AV2 and, along with Ephrem, stole more than $1.8 million from their two victims. Stevens and Ephrem spent the stolen money on rent, utility bills, restaurants, cigars, luxury retail purchases and repeated travel to Las Vegas, Nevada and other locations including Hawaii, Anaheim, California, and Spirit Mountain Lodge in Grand Ronde, Oregon.
Stevens and Ephrem were arrested on January 11, 2019. They made their initial appearances in federal court the same day and were ordered detained.
Stevens and Ephrem each face a maximum sentence of 20 years in prison, a $250,000 fine and three years of supervised release. They will be sentenced on February 13, 2020 before U.S. Chief District Court Judge Michael W. Mosman.
As part of the plea agreement, Stevens and Ephrem have agreed to pay full restitution to their victims as determined and ordered by the court.
This case was investigated by the Tigard Police Department and the FBI and is being prosecuted by Donna Maddux and Julia Jarrett, Assistant U.S. Attorneys for the District of Oregon.
Elder abuse is a serious crime against some of our nation’s most vulnerable citizens, affecting nearly 10% of older Americans every year. Together with our federal, state, local and tribal partners, the Department of Justice and U.S. Attorney’s Office is steadfastly committed to combatting all forms of elder abuse and financial exploitation through enforcement actions, training and resources, research, victim services, and public awareness.
If you or someone you know are in immediate danger, please call 911.
If you or someone you know needs help, abuse complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder abuse victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.
Owners of Charlotte-Based Fraudulent Debt Collection Company Are Sentenced to Prison for Collecting More Than $5.7 Million from Unsuspecting Victims - Including Older Adults - Using Abusive and Intimidating TacticsRead the Press Release
CHARLOTTE, N.C. – Laurence A. Sessum, 46, of Matthews, N.C., and Jacqueline Dianne Okomba, 51, of Salisbury, N.C., were sentenced to 135 months and 72 months in prison, respectively, for defrauding victims throughout the United States of at least $5.7 million through their fraudulent Charlotte-based debt collection company, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Robert J. Conrad Jr. also ordered the defendants to serve two years under court supervision after they are released from prison.
In April 2019, a federal jury convicted Sessum and Okomba of wire fraud conspiracy and obstruction of justice. Sessum was also convicted of conspiracy to commit money laundering, and wire fraud.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation, Charlotte Division, joins the U.S. Attorney’s Office in making today’s announcement.
According to filed court documents, trial evidence and witness testimony, and today’s sentencing hearing, from October 2013 to January 2017, Sessum was the owner and operator of Direct Processing LLC (Direct Processing) a fraudulent debt collection company with offices in Mecklenburg County. Sessum was also the leader and organizer of the debt scheme. Okomba, was the registered agent and member-owner of Direct Processing, who also worked as a manager in charge of overseeing other company collectors and managed the finances and bank accounts of Direct Processing.
As part of the scheme, Sessum purchased lists of purportedly outstanding accounts, which the codefendants used to make fraudulent debt collections. Sessum intentionally sought out lists of old and unenforceable debts. Direct Processing used a dialer service to leave automated messages for victims, many of whom were elderly, directing them to contact the company to resolve the purported debts. To induce victims to call back, the automated messages often contained fraudulent and misleading information, including that there was “possible pending litigation” against the victims, or that there was a “process server” attempting to locate them.
When the victims returned the calls, they were connected with collectors working for Direct Processing. The collectors made similar threats and fraudulent statements about the purported debts and regularly used prepared scripts, including scripts handed out by Direct Processing management, that were designed to scare and intimidate victims to pay the purported debts. The defendants’ scheme harmed many elderly and retired victims, several of whom testified at trial about the lies and threats they were told to induce them to make payments.
Direct Processing also sent victims fraudulent documents, prepared to look like legal documents that had been filed in court, demanding restitution. Using threats and other intimidating tactics, company collectors regularly collected amounts that were not owed or they were not authorized to collect. One victim testified during trial that Direct Processing’s aggressive and fraudulent collections tactics made her feel “devastated” out of concern that she would be sent to jail if she failed to pay. That victim lost $1,250 in the scheme.
To disguise the fraudulent nature of the business, collectors often used fake company names when communicating with victims. In addition, Sessum directed others to establish nominee bank accounts, which were used to pay operational and other expenses associated with the fraudulent debt collection company.
When Sessum learned the FBI had seized funds held in an account associated with Direct Processing, Sessum, Okomba, and others removed Direct Processing computers, documents, and records from a location associated with the company in order to impede the federal investigation. When FBI agents arrived at the location to execute a search warrant, they found computer accessories, such as monitors, at collectors’ cubicles but no desktop units. When FBI agents questioned Okomba about the computers that had been removed, Okomba falsely told the agents that Direct Processing did not own any computers.
At today’s sentencing hearings, Judge Conrad said that the conduct was “heinous,” and the collection calls were “wicked.” He also stated that this was “a criminal spree that involved great deception.”
The FBI investigated the case. Assistant United States Attorneys William M. Miller and Maria Vento, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
In March 2019, Andrew Murray, U.S. Attorney for the Western District of North Carolina, announced the Office’s Elder Justice Initiative, which aims to combat elder financial exploitation by expanding efforts to investigate and prosecute financial scams that target seniors; educate older adults on how to identify scams and avoid becoming victims of financial fraud; and promote greater coordination with law enforcement partners. For more information please visit: /usao-wdnc/elder-justice-initiative.