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18 November 2019
Council Bluffs Man Sentenced for Tampering with and Retaliating Against a WitnessRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced that on November 12, 2019, 24 year-old Javon Joshua Jennings was sentenced to 57 months in prison by District Court Judge Rebecca Goodgame Ebinger for one count of Tampering with a Witness, and one count of Retaliating Against a Witness. Jennings was also ordered to serve a three-year term of supervised release for each count, to run concurrently, following the period of incarceration. The sentence was also ordered to be served consecutive to a sentence imposed in state court in April, 2019, for Child Endangerment Causing Death and Involuntary Manslaughter.
An inmate in the Pottawattamie County Jail was served a subpoena by the Federal Bureau of Investigation in April, 2019, and when the inmate informed his family in a telephone conversation other inmates overheard the conversation. Shortly thereafter, Jennings repeatedly assaulted the inmate that had been served with the subpoena.
This case was investigated by the Council Bluffs Police Department, the Pottawattamie County Sheriff’s Office, and the Federal Bureau of Investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Convicted Felon Is Sentenced to More Than 11 Years on Drug and Gun ChargesRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Andrew Murray announced today that Quinton Oshumond Littlejohn, 31, of Charlotte, was sentenced to 135 months in prison, followed by four years of supervised release on drug and gun charges. U.S. District Judge Robert J. Conrad Jr. presided over the hearing.
Vincent C. Pallozzi, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department (CMPD), join U.S. Attorney Murray in making today’s announcement.
According to filed court documents, evidence presented at trial, and today’s sentencing hearing, Littlejohn had been previously convicted in federal court of possession of a firearm by a felon, and was sentenced to 37 months in prison, and two years of supervised release. On September 21, 2017, officers with the U.S. Probation Office and the North Carolina Department Public Safety were conducting a routine check at Littlejohn’s residence. While searching the premises, probation officers discovered marijuana, a violation of Littlejohn’s conditions of release. CMPD officers obtained a search warrant for Littlejohn’s residence and vehicle. While executing the search warrant, the officers seized various items from the vehicle and the residence, including crack cocaine, digital scales, drug paraphernalia, $4,095 in cash, and a stolen firearm, loaded with five rounds of ammunition.
In February 2019, a federal jury convicted Littlejohn of possession of a firearm by a convicted felon, possession with the intent to distribute crack cocaine, and possession of a firearm in furtherance of a drug trafficking crime.
In making today’s announcement, U.S. Attorney Murray thanked the ATF and CMPD for their investigation of this case, and the U.S. Probation Office and the North Carolina Department of Public Safety for their invaluable assistance.
Assistant U.S. Attorneys Christopher Hess and Erik Lindahl, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Connecticut Man Sentenced for Possessing Fentanyl at Veterans Affairs Facility in Bath, NYRead 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 Nolan Rogers, 32, of Lisbon, CT, who was convicted of possession of fentanyl, was sentenced to time served and one year supervised release by U.S. Magistrate Judge Marian W. Payson.
Assistant U.S. Attorney Sean C. Eldridge, who handled the case, stated that the defendant was a resident at the Bath, NY Veterans Affairs Medical Center. On March 3, 2019, Rogers returned to the facility after a trip home to Connecticut, when he encountered a VA Police officer. During a pat-down, 20 small bags were removed by the officer from the defendant’s pocket, and Rogers told the officer that the bags contained fentanyl. Laboratory testing confirmed that the substance was fentanyl.
The sentencing is the result of an investigation by the Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent-in-Charge Sean J. Smith; and the Bath Veterans Affairs Police Department, under the direction of Chief Joseph Day. Assistance was also provided by the Steuben County Sheriff’s Office, under the direction of Sheriff James L. Allard; and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
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Chinese National Pleads Guilty to Illegal ReentryRead the Press Release
BOSTON - A Chinese national pleaded guilty today in federal court in Boston to illegally reentering the United States after being deported.
Chun Lin Zhang, 43, pleaded guilty to one count of illegal reentry of a deported alien. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Feb. 19, 2020.
Zhang was previously deported on July 17, 1999. Law enforcement officers discovered Zhang on Jan. 29, 2018, and determined him to be illegally present in the United States.
The charge of illegal reentry provides for a sentence of up to two years in prison, up to three years of supervised release and a fine of $250,000. Zhang will be subject to deportation upon completion of any sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Lelling’s Criminal Division is prosecuting this case.
Carbondale Man Sentenced to Federal Prison for Aggravated Identity TheftRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Bruce Alexander McIntyre, age 67, of Carbondale, Colorado was sentenced by U.S. District Court Judge William J. Martinez on November 15, 2019 to 24 months (2 years) imprisonment and 1 year of supervised release for Aggravated Identity Theft. The defendant appeared at the hearing in custody and was remanded at the hearing’s conclusion.
According to the stipulated facts contained in the plea agreement, McIntyre was a fugitive who traveled the world using a stolen identity for more than 25 years. In 1994, McIntyre was charged in the U.S. District Court for the District of Arizona with offenses involving money laundering and marijuana distribution, and he was released on bond. McIntyre absconded from that bond, bought stolen identity documents that belonged to another Arizona resident, and fled from the United States. Between 1994 and 2018, McIntyre traveled the world extensively buying art and antiques that he sold from a home in Canada, all under the stolen identity.
McIntyre returned to Carbondale in January 2017 and renewed a United States passport in the name of the stolen identity. In December 2018, the true identity holder sought a United States passport under the same identification that had been coopted by McIntyre. Because two different people claimed the same identifiers, the conflict was referred to the U.S. Department of State’s Diplomatic Security Service (DSS). DSS Special Agents investigated and concluded that McIntyre’s claim to that identity was fraudulent.
DSS Special Agents located McIntyre in Chaing Mai, Thailand on January 30, 2019 and revoked his fraudulently obtained passport. The Thailand Immigration Bureau then apprehended McIntyre for Thai immigration violations. McIntyre was questioned by DSS Special Agents in Thailand, and he admitted his true identity. A criminal complaint was obtained in the U.S. District Court for the District of Colorado and McIntyre was then escorted, in custody, back to the United States to face charges in Colorado.
“No matter where you go, if you are wanted by federal authorities you will eventually be found and held accountable,” said U.S. Attorney Jason Dunn. “This case demonstrates that hiding under a stolen identification won’t work.”
"The Diplomatic Security Service is committed to investigating and pursuing anyone who applies for or obtains a United States passport using false documents," said Angela L. Brenner, Resident Agent in Charge of DSS’ Denver Resident Office. "The U.S. passport is the most coveted travel document in the world. There are individuals who attempt to fraudulently acquire U.S. passports in someone else’s identity to flee, or to carry out criminal activities. These crimes threaten the national security of the United States."
This case was investigated by DSS’ Denver Resident Office with assistance from the Thailand Immigration Bureau. The defendant was prosecuted by Assistant U.S. Attorney David Tonini.
California Man was Smuggling Heroin and Meth to Kansas CityRead the Press Release
KANSAS CITY, KAN. – A California man who was arrested on his way to Kansas City pleaded guilty today to smuggling heroin and methamphetamine, U.S. Attorney Stephen McAllister said.
Allan Bryan DeJesus, 39, Bakersfield, Calif., pleaded guilty to one count of possession with intent to distribute heroin. In his plea, he admitted he was on his way to Kansas City on Jan. 5, 2019, when the Kansas Highway Patrol pulled him over on I-70 in Thomas County. In DeJesus’ vehicle, a trooper found two pounds of heroin and 20 pounds of crystal methamphetamine.
Sentencing is set for Feb. 3, 2019. He could face a penalty of not less than five years and not more than 40 years in federal prison and a fine up to $5 million. McAllister commended the Kansas Highway Patrol, the Drug Enforcement Administration and Assistant U.S. Attorney David Lind for their work on the case.
CBL/BFL Member Pleads Guilty to Racketeering Conspiracy and Selling Crack CocaineRead 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 Larry Watkins, 27, of Buffalo, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to racketeering conspiracy and possession with intent to distribute crack cocaine. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Paul C. Parisi, who is handling the case, stated that the defendant was a member of the CBL/BFL Gang, which stands for, among other things, “Cash Been Long” and “Brothers for Life.” The gang, which was involved in the illegal possession and distribution of narcotics, was formed around 2009 and operates primarily in the City of Buffalo at the Towne Gardens Housing Complex. The Towne Gardens served as a central hub for the gang with many members living within the housing complex, and many housing units used to store firearms and narcotics. Parking lots and business fronts adjacent to the Towne Gardens were utilized by members of the gang to distribute street level quantities of narcotics, including heroin, fentanyl, cocaine, crack cocaine, marijuana, and other drugs. The gang used violence, including murder and attempted murder, threats, and intimidation to defend their territory against rivals and anyone deemed to be a threat to the gang.
On January 11, 2014, Buffalo Police Officers were on patrol on Stanton Street and observed the defendant with another person. Watkins then ran down the street with his hand on the handle of a gun. The defendant then threw the firearm over the fence of a house on Stanton Street. Officers recovered a loaded 38 special revolver and ammunition.
On April 6, 2017, investigators executed a search warrant at 181 Sherman Street in Buffalo, and recovered one bag of crack cocaine and two digital scales in a grill in the backyard. The items belonged to the defendant. During the course of the investigation, investigators learned that Watkins frequently used the location at 181 Sherman Street as a location to store, manufacture, and distribute cocaine and crack cocaine.
On April 21, 2018, Buffalo Police Officers stopped the defendant’s vehicle which he was driving without a license and illegally tinted windows. Officers located a bag of crack cocaine and a bag of marijuana inside the car.
On July 24, 2018, the defendant was at 998 Smith Street in Buffalo when investigators executed a search warrant and recovered one bag crack cocaine, four bags of marijuana, a digital scale, and narcotics packaging.
“The good citizens of Western New York do not deserve to live in fear of young men who decide to join these violent neighborhood street gangs,” stated U.S. Attorney Kennedy. “In joining these gangs, members agree to a rulebook which seems to require them to poison their home field through drug dealing and to eradicate their opposition through gun violence. Those are not the rules, however, and if these young men ignore the warnings being given to them by law enforcement through its community policing efforts and decide to participate in a zero sum game that is gang membership, then my Office will enforce the actual rulebook—in the form of federal criminal law—and remove them from our community. By actively targeting and removing those who possess or use guns illegally, federal prosecutions for illegal firearms this year at an all-time high in our District. It is no coincidence that this surge in federal gun prosecutions has corresponded with the reduction in gun violence in the community.”
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the New York State Police, under the direction of Major Edward Kennedy; the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard; the Cheektowaga Police Department, under the direction of Chief David Zack; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Bureau of Alcohol Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Lackawanna Police Department, under the direction of Chief James Michel; and the Erie Crime Analysis Center. Additional assistance was provided by the Erie County District Attorney’s Office, under the direction of District Attorney John Flynn.
Sentencing is scheduled for April 6, 2020, before Judge Vilardo.
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Business owner sentenced to 8 years in prison for crimes involving more than $2 million in Department of Defense contractsRead the Press Release
COLUMBUS, Ohio – Daniel Emerson Norton, 52, formerly of Arlington, Va. and the owner of Torrance, Calif.-based Emerson Company, was sentenced in U.S. District Court today to 96 months in prison. Norton fraudulently secured approximately $2.2 million in contracts to provide critical parts to the U.S. Department of Defense, which he then filled with defective parts made in China, in violation of the Buy American Act.
A trial against Norton began on April 8. He interrupted the trial after five days to enter pleas of guilty.
According to court documents and testimony at trial, the Department of Defense (DOD) barred Emerson Company from doing business with the U.S. Government in 2011. Between 2011 and 2013, Norton continued to recruit people who either already had companies or were willing to start companies to do his bidding on solicitations and contract with the military to provide parts for the U.S. military. When one of the companies was awarded a purchase order, Norton directed the company to send the purchase order to Emerson Company, which would buy and ship the part directly to DoD.
Norton bought the parts from manufacturers in China, even though the contracts required a large number of the parts to be made in the United States. The parts Norton provided had dimensional defects, material substitutions, incorrect or missing markings, incorrect finishes, improper shapes or styles, mislabeled packaging or poor workmanship and thus failed to conform to the contract requirements.
Additionally, when contracts called for an exact part from a specific domestic manufacturer, rather than obtaining these parts from the specified manufacturer (OEM), Norton supplied imitation parts obtained from China that were defective. They involved a variety of parts used on military aircraft, vessels, vehicles, weapons systems and nuclear reactor programs, including the F-16 Fighting Falcon, A-10 Thunderbolt, C-130 Hercules, B-52 Stratofortress, AH-64 Apache attack helicopter, the Paladin M109A6 155mm Artillery System, HMMWV “HUMVEE” vehicles and Nimitz Class CVN Aircraft Carriers. Emerson’s defective parts were recalled from military depots worldwide.
Once Norton realized he was under investigation in 2013 by the Defense Logistics Agency (DLA), the Defense Criminal Investigative Service (DCIS) and the U.S. Attorney’s Office, he took several steps to mislead the government in its investigations.
For example, in an effort to avoid an extension of debarment for providing a non-conforming bolt used on a C-130 aircraft engine, Norton submitted false documents to the DoD deflecting blame from Emerson Company to one of the nine companies under his control. Norton knew, however, that he, personally, had ordered the bolts from a manufacturer in China and they were not supplied by the required OEM.
Norton also admitted to obstructing justice by falsely communicating information to his attorney, or allowing such information to be communicated, with the intent that it be communicated to the United States as it related to its grand jury investigation, thereby obstructing that investigation.
As part of his sentence, Norton was ordered to pay $2.38 million in restitution, and forfeit more than $333,000 in his bank account in the name of Emerson Manufacturing Inc. and a $725,000 residence held by Emerson Manufacturing Company in Kihei, Hawaii.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Leigh-Alistair Barzey, Special Agent in Charge, U.S. Department of Defense, Defense Criminal Investigative Services (DCIS), Central Field Office; and Bryant Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation announced the sentence imposed today by U.S. District Judge Michael H. Watson. Assistant United States Attorneys Jessica W. Knight and J. Michael Marous represented the United States in this case.
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Buffalo Man Indicted for Murder and Selling Heroin That Led to A DeathRead 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 a federal grand jury has returned a 12-count superseding indictment charging Donte Walker, a/k/a Slim, 28, of Buffalo, NY, with murder while engaged in a continuing criminal enterprise and narcotics conspiracy, tampering with a witness, discharge of firearms causing death in furtherance of crimes of violence and drug trafficking crimes, conspiracy to distribute heroin resulting in death, and several narcotics offenses. The charges can carry a mandatory sentence of life in prison, or a mandatory minimum penalty of 20 years in prison and a maximum penalty of life in prison and a fine up to a $20,000,000.
Assistant U.S. Attorneys Charles J. Volkert, Jr. and Paul. C. Parisi, who are handling the case, stated that according to the superseding indictment, the defendant is accused of orchestrating the murder of Ryan Thurnherr on October 16, 2018, and causing the heroin overdose death of an individual identified as M.O.
Between 2012 and November 2018, Walker was a leader of a heroin and cocaine trafficking organization operating in the Buffalo, NY, area. In 2013, as part of the ongoing narcotics conspiracy, the defendant was responsible for the distribution of heroin to M.O., which resulted in M.O.’s death.
To further his drug-trafficking operation, Walker utilized various associates, including drug runners and lower-level drug dealers. At a peak in the defendant’s heroin distribution enterprise in 2015 and 2016, Walker was responsible for the daily distribution of hundreds of grams of heroin, sometimes mixed with butyryl fentanyl or furanyl fentanyl. Over the years, the defendant also regularly sold cocaine.
On October 16, 2018, the defendant lured Ryan Thurnherr to an area near the East Ferry Liquor Store in Buffalo under the auspices of engaging in a drug transaction. Shortly after shots were fired, and Thurnherr was found murdered in a vacant lot near the T-intersection of Winslow Avenue and Brooklyn Street. Walker believed Thurnherr was a witness or a threat to become a witness in the ongoing DEA investigation into the defendant’s drug-trafficking organization.
Donte Walker is scheduled for an arraignment on the superseding indictment on November 22, 2019, at 10:30 a.m.
The indictment is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the Tonawanda Police Department, under the direction of Chief William Strassburg; and the Cheektowaga Police Department, under the direction of Chief David Zack.
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Brookshire woman imprisoned for sending homemade bombs to state and federal officialsRead the Press Release
HOUSTON – A 48-year-old resident of Brookshire has been ordered to prison after admitting to transportation of explosives with the intent to kill, injure and intimidate a person, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge Perrye K. Turner of the FBI. Julia Ann Poff pleaded guilty July 1, 2019.
Today, U.S. District Judge Vanessa Gilmore handed Poff a 120-month sentence to be immediately followed by three years of supervised release. She was also ordered to pay $9,700 in restitution.
Poff admitted to mailing a package on or about Oct. 2 - 3, 2016, that contained a homemade bomb that was addressed to the former president of the United States. As part of her plea, she also acknowledged mailing two similar packages addressed to the Texas governor and then Acting Social Security Administrator.
Each of those packages contained a victim-activated, booby trapped, improvised explosive device (IED) containing explosives materials.
The investigation revealed that on Oct. 6, 2016, authorities intercepted a U.S. Postal Service (USPS) small, flat rate box at a White House mail handling facility at Bolling Air Force Base in the District of Columbia. They opened the package, and it appeared to contain a bomb.
An FBI explosives expert conducted an examination and determined it to be a homemade bomb.
Further examination linked the box and its contents to Julia Poff or her husband. The outer box contained a taped address label, under which they found a feline hair. Testing revealed this hair was microscopically consistent with the hairs taken from a cat the Poff family cared for and owned. Also, a box contained within the USPS box contained a micro-USB cable box, cellular phone, hobby fuse, matches, paper wadding, plastic sacks, sandpaper and two 20-ounce coke bottle caps as well as pyrotechnics and smokeless powder.
Poff’s daughter identified the phone as her old cell phone which was last seen in their home’s garage in August or September 2016. Authorities also learned Poff used her bank debit card to purchase a micro-USB box with the same bar code as the one found in the USPS package.
At the time of her plea, Poff admitted she was solely responsible for sending the bomb-filled packages.
She has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bryan FBI JTTF conducted the investigation with assistance from the U.S. Postal Inspection Service, Texas Rangers, Social Security Administration - Office of Inspector General (OIG) and Department of Agriculture - OIG. The Bryan Resident Agency JTTF is comprised of the FBI; sheriff’s offices in Brazos, Waller and Walker Counties; police departments in Bryan, Texas A&M University and College Station; Secret Service; Texas Department of Criminal Justice - OIG and Immigration and Customs Enforcement’s Homeland Security Investigations.
Assistant U.S. Attorneys Ralph Imperato, Rob Jones and Alamdar Hamdani prosecuted the case.
Brooklyn Businessman Sentenced to 18 Months’ Imprisonment for Defrauding Investors in Cryptocurrency Initial Coin OfferingsRead the Press Release
Earlier today, in federal court in Brooklyn, Maksim Zaslavskiy was sentenced by United States District Judge Raymond J. Dearie to 18 months’ imprisonment for conspiring to commit securities fraud. The conspiracy stemmed from two Initial Coin Offerings (ICOs) – REcoin Group Foundation, LLC (“REcoin”) and DRC World, Inc., also known as Diamond Reserve Club (“Diamond”) – which Zaslavskiy and others fraudulently marketed to the public. The amount of restitution will be determined by the Court at a later date.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
“Zaslavskiy committed an old-fashioned fraud camouflaged as cutting-edge technology,” stated United States Attorney Donoghue. “This Office will continue to investigate and prosecute those who defraud investors, whether involving traditional securities or virtual currency.” Mr. Donoghue extended his grateful appreciation to the Securities and Exchange Commission (SEC), New York Regional Office, for their assistance in this case.
In July 2017, Zaslavskiy marketed RECoin as “The First Ever Cryptocurrency Backed by Real Estate,” and subsequently Diamond as an “exclusive and tokenized membership pool” hedged by diamonds. In reality, Zaslavskiy bought neither real estate nor diamonds, and the certificates he sent to investors were worthless. Zaslavskiy also falsely advertised that REcoin had a “team of lawyers, professionals, brokers and accountants” who would invest the proceeds from the REcoin ICO in real estate, and that 2.8 million REcoin tokens had been sold.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Julia Nestor and Andrey Spektor are in charge of the prosecution.
The Defendant:
MAKSIM ZASLAVSKIY
Age: 39
Brooklyn, New YorkE.D.N.Y. Docket No. 17-CR-647 (S-1) (RJD)
Atchison Company Agrees to Pay $1 Million for Violating Clean Air ActRead the Press Release
TOPEKA, KAN. – An Atchison, Kan., company today pleaded guilty to violating the federal Clean Air Act and is expected to pay a $1 million fine, U.S. Attorney Stephen McAllister said.
MGP Ingredients, Inc. pleaded guilty to a misdemeanor offense of negligently violating the Clean Air Act. In its plea, the company admitted that on Oct. 21, 2016, a greenish-yellow chlorine gas cloud formed when 4,000 gallons of sulfuric acid were mistakenly combined with 5,800 gallons of sodium hypochlorite. The Atchison County Department of Emergency Management ordered community members to shelter in place and to evacuate in some areas. Approximately 140 individuals including members of the public, first responders, employees of MGP Ingredients and Harcos Chemicals sought medical attention.
Sentencing is set for Feb. 24. The company could be sentenced to a term of probation up to five years.
McAllister commended the Environmental Protection Agency and Assistant U.S. Attorney Rich Hathaway for their work on the case.
Victims can get more information on US v. Midwest Grain Products, Inc., by visiting https://www.justice.gov/usao-ks/victim-witness and filling out a victim questionnaire, leaving a message on a designated phone line at 913-551-6543 or emailing questions to [email protected] .
Alleged Cryptocurrency Fraudster Extradited from Thailand to Face Charges in Multi-Million Dollar Investment SchemeRead the Press Release
A citizen of Sweden has been extradited from Thailand to the United States today to stand trial for alleged securities fraud, wire fraud and money laundering.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney David L. Anderson of the Northern District of California and Special Agent in Charge Kelly R. Jackson of the IRS Criminal Investigation (IRS-CI), Washington, D.C. Field Office made the announcement.
On July 25, 2019, a federal grand jury indicted Roger Nils-Jonas Karlsson, 45, and his company, Eastern Metal Securities (EMS), charging the defendants with engaging in a scheme to defraud victims of more than $11 million. Karlsson was arrested June 17, 2019, in Thailand.
According to a complaint filed March 4, 2019, in connection with the case, since September 2006, Karlsson, also known by several aliases, including Steve Heyden, Euclid Deodoris, Joshua Millard, Lars Georgsson, Paramon Larasoft and Kenth Westerberg, used websites to communicate false representations to victims in a scheme to defraud potential investors. For example, one website, www.easternmetalsecurities.com, allegedly was registered to a fictitious person and advertised shares in a product called a “Pre Funded Reversed Pension Plan” (PFRPP). The indictment alleges Karlsson used the website to invite potential investors to purchase shares of the plan for $98 per share in exchange for an eventual payout of 1.15 kilograms of gold per share, even though as of Jan. 2, 2019, 1.15 kilograms of gold was worth more than $45,000.
Karlsson also allegedly advised investors that, in the unlikely event that the gold payout did not happen, he guaranteed to them 97 percent of the amount they invested. According to the complaint, the government found no evidence of any accounts held by Karlsson that would allow him to pay off the investors. Instead, the complaint alleges, the funds provided by victims were transferred to Karlsson’s personal bank accounts and now appear to be tied up in real estate in Thailand.
The complaint further describes how Karlsson allegedly used a second website, www.hci25.com, to make multiple false communications to potential investors. Karlsson allegedly brought the investors in HCI25 together with the investors in the PFRPP and posted multiple communications to delay the moment investors would realize there would be no payout. For example, on one occasion, Karlsson allegedly explained that a payout had not occurred because releasing so much money all at once could cause a negative effect on financial systems throughout the world. Karlsson also falsely represented that EMS was working with the U.S. Securities and Exchange Commission to prepare the way for a payout.
The complaint alleges Karlsson directed his victims to make investments using virtual currencies, such as Bitcoin. Karlsson allegedly defrauded no less than 3,575 victims of more than $11 million.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Trial Attorney Catherine Alden Pelker of the Department of Justice Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney William Frentzen of the Northern District of California are prosecuting this case with the assistance of Bridget Kilkenny. This prosecution is the result of an investigation by the IRS-CI Washington, D.C. Cyber Crimes Unit. The Criminal Division’s Office of International Affairs, the FBI Legal Attaché Office in Thailand, the IRS Criminal Investigation Attaché Office in Hong Kong and the Royal Thai Police Crime Suppression Division provided significant assistance.
Alleged Cryptocurrency Fraudster Extradited from Thailand to Face Charges in Multi-Million Dollar Investment SchemeRead the Press Release
SAN FRANCISCO – Roger Nils-Jonas Karlsson, a citizen of Sweden, has been extradited from Thailand to stand trial for alleged securities fraud, wire fraud, and money laundering, announced United States Attorney David L. Anderson; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Washington, D.C. Field Office.
On July 25, 2019, a federal grand jury indicted Roger Nils-Jonas Karlsson, 45, and his company, Eastern Metal Securities (EMS), charging the defendants with engaging in a scheme to defraud victims of more than $11 million. Karlsson was arrested June 17, 2019, in Thailand.
According to a complaint filed March 4, 2019, in connection with the case, Karlsson, also known by several aliases including Steve Heyden, Euclid Deodoris, Joshua Millard, Lars Georgsson, Paramon Larasoft, and Kenth Westerberg, used websites to communicate false representations to victims in a scheme to defraud potential investors. For example, one website, www.easternmetalsecurities.com, allegedly was registered to a fictitious person and advertised shares in a product called a “Pre Funded Reversed Pension Plan” (PFRPP). The complaint alleges Karlsson used the website to invite potential investors to purchase shares of the plan for $98 per share in exchange for an eventual payout of 1.15 kilograms of gold per share, even though as of January 2, 2019, 1.15 kilograms of gold was worth more than $45,000.
Karlsson also allegedly advised investors that, in the unlikely event that the gold payout did not happen, he guaranteed to them 97% of the amount they invested. According to the complaint, the government found no evidence of any accounts held by Karlsson that would allow him to pay off the investors. Instead, the complaint alleges, the funds provided by victims were transferred to Karlsson’s personal bank accounts and now appear to be tied up in real estate in Thailand.
The complaint further describes how Karlsson allegedly used a second website, www.hci25.com, to make multiple false communications to potential investors. Karlsson allegedly brought the investors in HCI25 together with the investors in the PFRPP and posted multiple communications to delay the moment investors would realize there would be no payout. For example, on one occasion, Karlsson allegedly explained that a payout had not occurred because releasing so much money all at once could cause a negative effect on financial systems throughout the world. Karlsson also falsely represented that EMS was working with the U.S. Securities and Exchange Commission to prepare the way for a payout.
The complaint alleges Karlsson directed his victims to make investments using virtual currencies, such as Bitcoin. Karlsson allegedly defrauded no less than 3,575 victims of more than $11 million.
The indictment charges Karlsson with wire fraud, in violation of 18 U.S.C. § 1343; securities fraud, in violation of 15 U.S.C. §§ 78j(b) and 78ff and 17 C.F.R. § 240.10b-5; and money laundering, in violation of 18 U.S.C. § 1957. Karlsson was arrested June 17, 2019, in Thailand and arrived in the United States today to face the charges.
An indictment and a criminal complaint merely allege that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Karlsson made his initial federal court appearance this morning before U.S. Magistrate Judge Sallie Kim. Magistrate Judge Kim ordered Karlsson detained and pending a further detention hearing scheduled for Friday, November 22, 2019.
If convicted, the defendant faces a maximum sentence of 20 years in prison and a maximum $250,000 fine for the wire fraud and securities fraud charges, and 20 years in prison and a $500,000 maximum fine for the money laundering charge. In addition, the court also may order an additional term of supervised release, fines or other assessments, and restitution, if appropriate. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney William Frentzen and Trial Attorney Catherine Alden Pelker of the Department of Justice Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting this case. This prosecution is the result of an investigation by the IRS-CI Washington, D.C. Cyber Crimes Unit. The Criminal Division’s Office of International Affairs, the FBI Legal Attaché Office in Thailand, the IRS Criminal Investigation Attaché Office in Hong Kong and the Royal Thai Police Crime Suppression Division provided significant assistance.
17 November 2019
Sioux Falls Woman Sentenced for Possession of Child PornographyRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, woman convicted of Possession of Child Pornography was sentenced on November 15, 2019, by U.S. District Judge Karen E. Schreier.
Sharon Dvorak, age 49, was sentenced to time served, 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Dvorak was indicted by a federal grand jury on March 5, 2019. She pled guilty on August 5, 2019.
The conviction stemmed from incidents between on or about July 16, 2018, and July 19, 2018, when Dvorak knowingly possessed child pornography that had been mailed, shipped, and transported in or affecting interstate or foreign commerce by any means, including by computer.
While on Facebook, Dvorak communicated with three individuals on the internet. Their messages were sexual in nature and they exchanged images of child pornography. Some of the images included prepubescent children.
This case was investigated by the Department of Homeland Security. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Mission Man Indicted for Aggravated SexualRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse and Sexual Abuse.
Larry Black Lance, III, age 28, was indicted on November 13, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on November 15, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on May 25, 2019, in Todd County, South Dakota, Black Lance knowingly engaged in a sexual act with the victim, by the use of force, and that the victim was incapable of declining participation in the sexual act.
The charges are merely accusations and Black Lance is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Black Lance was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Mission Man Charged with Felon in Possession of a FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Felon in Possession of a Firearm and Ammunition.
David D. Larvie, Jr., age 37, was indicted on November 13, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on November 15, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on October 25, 2019, in Todd County, South Dakota, Larvie, having previously been convicted of a felony, knowingly possessed a firearm and ammunition.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The charge is merely an accusation and Larvie is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Larvie was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Fort Thompson Man Charged with Aggravated Sexual Abuse by Force and Sexual AbuseRead the Press Release
United States Attorney Ron Parsons announced that a Fort Thompson, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse by Force and Sexual Abuse.
Devon Wayne Saul, age 27, was indicted on November 5, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on November 14, 2019, and pled not guilty to the Indictment.
According to the Indictment, on August 18, 2019, in Buffalo County, South Dakota, Saul knowingly caused and attempted to cause the victim to engage in a sexual act by using force. The indictment also alleges that Saul engaged in a sexual act with the victim while the victim was incapable of appraising the nature of the conduct, or physically incapable of declining participation in and communicating her unwillingness to engage in the sexual act.
The maximum penalties upon conviction for each count are as follows: up to life imprisonment and/or a $250,000 fine; a mandatory minimum term of five (5) years, up to life, of supervised release; $100 to the Federal Crime Victims Fund; $5,000 assessment to the domestic trafficking fund; and restitution may be ordered.
The charges are merely accusations and Saul is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Bureau of Indian Affairs – Office of Justice Services. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Saul was released to the custody of third party custodians. A trial date of January 14, 2020, has been set.
Faulkton Man Charged with Obstruction of Correspondence and Delay or Destruction of MailRead the Press Release
United States Attorney Ron Parsons announced that a Faulkton, South Dakota, man has been indicted by a federal grand jury for Obstruction of Correspondence and Delay or Destruction of Mail.
Kenneth Jones, age 60, was indicted on September 10, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on November 14, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between August 1, 2018, and September 26, 2018, Jones, who was employed as an officer with the United States Postal Service, opened, embezzled, delayed, and destroyed mail that was entrusted to him to deliver.
The charges are merely accusations and Jones is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Officer of the Inspector General. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Jones was released on bond pending trial. A trial date has not been set.
16 November 2019
Multi-Convicted Felon Charged with Firearm and Drug Law ViolationsRead the Press Release
PITTSBURGH, Pa. -- A resident of Braddock, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal drug and firearms laws, United States Attorney Scott W. Brady announced today.
The three-count Superseding Indictment named Mario Tiller, age 41, as the sole defendant.
According to the Superseding Indictment, on June 19, 2018, Tiller possessed with intent to distribute cocaine base, commonly known as crack. The Indictment further alleges that Tiller unlawfully possessed a Glock 9 millimeter pistol in furtherance of the drug offense, after having been convicted of multiple crimes punishable by more than one year in prison. Those convictions include two convictions for possession with intent to deliver controlled substances, two convictions for terroristic threats, and one conviction for theft by unlawful taking. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition.
The law provides for a maximum total sentence of life in prison, a fine of $1,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christy C. Wiegand is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosive, along with the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Tiller. The case was brought as part of Project Safe Neighborhoods (PSN), 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.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Lake Station Man Convicted at Trial of Drug Conspiracy and Causing Death During the Drug ConspiracyRead the Press Release
HAMMOND-Lajuan Fitzpatrick, 38, of Lake Station, Indiana, was convicted after a four-day jury trial before U.S. District Court Judge Philip P. Simon of conspiracy to possess with intent to distribute marijuana and discharging a firearm causing death during this drug trafficking crime, announced U.S. Attorney Kirsch.
The evidence at trial showed that on December 2, 2013, in Gary, Indiana, Fitzpatrick and his co-conspirators attempted to rob individuals they believed were marijuana dealers. The co-conspirators intended to resell the marijuana. Fitzpatrick fired his gun as gunfire broke out during the course of the attempted robbery. Ronaldo Correa, Jr., 22, who was coming to the aid of his victim neighbors, was shot to death.
This case is the result of the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives, East Chicago Police Department, Federal Bureau of Investigation, Gary Police Department, Hammond Police Department, Lake County, Indiana, Sheriff’s Department and Lake County High Intensity Drug Trafficking Area officers and agents. The case is being prosecuted by Assistant U.S. Attorneys David J. Nozick and Caitlin Padula.
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15 November 2019
Washington, PA Man Sentenced for Check-Kiting Scheme Targeting Local Credit UnionsRead the Press Release
PITTSBURGH, PA - A resident of Washington, PA, has been sentenced in federal court to six months’ imprisonment and five years of supervised release on his conviction of conspiracy to commit bank fraud, United States Attorney Scott W. Brady announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Wednesday on Solomon Chambers, Sr., age 52, of Washington.
According to information presented to the court, from July 14, 2016 to July 23, 2016, Chambers and a co-conspirator executed a check-kiting scheme in the Washington area, which defrauded Members 1st Federal Credit Union and Pennsylvania State Employees Credit Union. Chambers and a co-conspirator deposited non-sufficient checks into bank accounts that they had opened at those credit unions, using ATMs with a different bank. The conspirators then made cash withdrawals or point-of-sale purchases that rendered those accounts overdrawn before the insufficiency was discovered by the financial institutions. The credit unions suffered a total loss of $28,425.74.
Assistant United States Attorney Adam N. Hallowell prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Solomon Chambers, Sr.
Virginia Duo Sentenced to 28 Years for Trafficking CocaineRead the Press Release
NEWPORT NEWS, Va. – Two individuals were sentenced to prison yesterday for possessing two firearms while, and in the furtherance of, distributing cocaine.
Marcus Troy Moody, 30, of Suffolk, was sentenced to approximately 17 years in prison, while Latoya Patrice Carter, 29, of Hampton, was sentenced to 11 years in prison.
According to court documents, Moody and Carter were initially stopped by Newport News Police for a routine traffic violation at 3:42 in the morning on December 30, 2018. Police immediately smelled a strong odor of marijuana emitting from both the vehicle occupants and subsequently conducted a narcotics investigation. A lawful search of the vehicle and its occupants resulted in two loaded firearms – one with an extended magazine; an additional loaded magazine; a distribution amount of cocaine; narcotics packaging material; a digital scale; and approximately $3,913.30 in U.S. currency.
A jury found the co-conspirators guilty on all counts charged: Conspiracy to Possess with Intent to Distribute Cocaine; Possess with Intent to Distribute Cocaine; and two counts of Possess a Firearm in Furtherance of a Drug Trafficking Crime. Moody, a prior felon, was also found guilty of Felon in Possession of a Firearm.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division; and Steve R. Drew, Chief of Newport News Police, made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar. Special Assistant U.S. Attorney Kristen S. Taylor and Assistant U.S. Attorney Peter G. Osyf prosecuted 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. 4:19-cr-51.
Violent Latin Counts Gang Member Sentenced to 30 Years in Prison for Drive-By Shooting in Southwest DetroitRead the Press Release
A Latin Counts gang member was sentenced yesterday to 30 years in federal prison for conspiracy to commit murder in aid of racketeering and assault with a dangerous weapon in aid of racketeering, announced United States Attorney Matthew Schneider, Special Agent in Charge James Deir of the ATF’s Detroit Division, and Chief James Craig of the Detroit Police Department.
Ryan Jose Taylor, a/k/a “Loco,” 24, of Detroit, was sentenced by U.S. District Judge Robert H. Cleland for planning and carrying out with fellow Latin Counts gang members a drive-by shooting in a residential neighborhood of southwest Detroit that occurred on October 7, 2017, killing one victim and injuring two others. According to court records, Taylor fired the gunshot that killed the deceased victim.
Also according to court records, the Latin Counts gang operates primarily in southwest Detroit and the downriver communities of Lincoln Park and Ecorse. The Latin Counts are a criminal enterprise responsible for murders, robberies, and the distribution of illegal drugs. The Latin Counts use violence to retaliate against rivals, intimidate citizens in the community, and advance members’ positions within the gang.
Under the Detroit One initiative, and through the lead efforts of the ATF, FBI, and the Detroit Homicide Task Force, law enforcement identified and charged a total of seven violent members of the Latin Counts gang responsible for the drive-by shooting, all of whom have since pleaded guilty.
Detroit One is a collaborative effort between law enforcement and the community to reduce homicides and other violent crimes in Detroit. By working together, local, state, and federal law enforcement agencies strive to maximize their ability to identify and arrest individuals and groups initiating violence in Detroit.
The case was prosecuted by Assistant United States Attorneys Louis Crisostomo, Robert VanWert, and Eric Straus.
Vallejo Man Sentenced to 3 Years in Prison for Multimillion Dollar Mortgage and Foreclosure Rescue Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Garland E. Burrell Jr. sentenced Omar Anabo, 57, of Vallejo, to three years in prison for conspiracy to make false statements on loan applications, U.S. Attorney McGregor W. Scott announced. Judge Burrell also ordered Anabo to pay $379,068 in restitution to victims of the conspiracy.
According to court documents, between Oct. 2004 and May 2007, Anabo and co‑conspirators Sergio Roman Barrientos, 66, and Zalathiel Aguila, 46, operated Capital Access LLC in Vallejo, a company that preyed on homeowners nearing foreclosure. The defendants convinced homeowners to sign over the title to their homes to Capital Access and then spent any equity those homeowners still had, which was then used for operational expenses of the scheme and personal expenses of Anabo and his co-conspirators.
The defendants also used straw buyers to obtain home loans under false pretenses and defraud federally insured financial institutions out of millions of dollars. Vulnerable homeowners across California lost their homes and savings as a result of the scheme, and lenders lost an estimated $10.47 million from the fraud.
This case was the product of an investigation by the Federal Bureau of Investigation and the United States Postal Inspection Service. Assistant U.S. Attorneys Matthew M. Yelovich and Christina McCall prosecuted the case.
Barrientos was sentenced on Nov. 2, 2018, to 14 years in prison for his role in the scheme. Aguila was sentenced on July 26, 2019, to four years in prison.
Union County Registered Sex Offender Admits Distribution of Child Pornography and Online EnticementRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man today admitted distributing multiple images and videos depicting child sexual abuse, as well as soliciting two children to engage in sexually explicit conduct online, U.S. Attorney Craig Carpenito announced.
Christopher Gardiner, 36, of Cranford, New Jersey, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an indictment charging him with one count of distributing child pornography and two counts of online enticement of a minor to engage in criminal sexual conduct.
According to documents filed in this case and statements made in court:Between March 2018 and June 2018, Gardiner engaged an undercover agent in an ongoing sexually graphic conversation on a web-based social media application. During the course of the conversation, Gardiner publicly posted in a chatroom multiple videos depicting the sexual abuse of children and sent similar videos to the undercover agent directly. Law enforcement subsequently discovered numerous images and videos of child pornography on Gardiner’s electronic devices when he was arrested at his home in August 2018.
During a forensic examination of Gardiner’s electronic devices, law enforcement discovered multiple conversations in which Gardiner engaged children in sexually explicit conversations and encouraged them to record themselves engaging in criminal sexual conduct. Law enforcement subsequently identified the children and confirmed that they were under the age of 18 at the time of their conversations with Gardiner.
Gardiner was previously convicted of endangering the welfare of a child and distribution of child pornography in Union County in 2007. For a repeat offender, the charge of distribution of child pornography carries a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 40 years in prison, and a $250,000 fine. The charges of online enticement carry a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life imprisonment, and a $250,000 fine. Sentencing is scheduled for March 4, 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 Special Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Criminal Division in Newark.
Defense counsel: Michael B. Campagna Esq., Elizabeth, New Jersey
Two sentenced to prison for conspiring to steal, cash stolen and fraudulent checksRead the Press Release
CINCINNATI – Two local men were sentenced in U.S. District Court for their roles in a bank fraud conspiracy which involved stealing checks from the mail and reprinting the checks in the name of new payees for cashing at financial institutions.
Stephano Henderson, 32, of Cincinnati, was sentenced on Nov. 8 to 87 months in prison. Laneal Henderson, 33, of Cincinnati, was sentenced today to 51 months in prison.
According to court documents, the Hendersons and others stole checks from the mail at residences and businesses. They then re-printed checks by inserting the names of new payees and caused the fraudulent checks to be presented for cash at financial institutions. Co-conspirators recruited “cashers” to serve as the new payees on the re-printed checks in exchange for part of the profit.
Stephano Henderson was primarily involved in re-printing checks for new payees to cash. Laneal Henderson primarily recruited individuals to cash fraudulent checks and provided the fraudulent checks to the cashers. The plea agreement set forth a loss amount of between $150,001 and $250,000.
Stephano Henderson pleaded guilty in July 2019 to one count of conspiring to commit bank fraud and one count of aggravated identity theft. Laneal Henderson pleaded guilty in May 2019 to one count of conspiring to commit bank fraud.
Two others were charged and have pleaded guilty in this case: Eugene Clifford, 31, of Cincinnati, and Markalo Harris, 27, of Cincinnati. They have not yet been sentenced.
David M. DeVillers, United States Attorney for the Southern District of Ohio, Tommy D. Coke, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Pittsburgh Division, Yvonne DiCristoforo, Special Agent in Charge, U.S. Secret Service, Hamilton County Sheriff Jim Neal, West Chester Police Chief Joel Herzog, Green Township Police Chief James Vetter, Greensburg, Ind. Interim Police Chief Brendan Bridges, Norwood Police Chief William Kramer and Madeira Police Chief Dave Schaefer announced the sentence imposed today by U.S. District Judge Timothy S. Black. Assistant United States Attorney Matthew C. Singer is representing the United States in this case.
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Two Mt.Vernon Men Charged with Trafficking MethRead the Press Release
A pair of Mt. Vernon residents is under federal indictment today for methamphetamine- related offenses. Malcolm Brooks, 36, and Garry V. Gilliams, 40, are named in a seven-count indictment returned on Oct. 24, 2019. According to the indictment, the two men conspired to distribute 50 grams or more of methamphetamine within the Southern District of Illinois from December 2018 to
April 2019.The two men are also accused of distributing 5 grams or more of methamphetamine on several occasions. Gilliams is charged separately with distributing 50 grams or more of methamphetamine on two dates in December 2018. The indictment further alleges that on April 21, 2019, Brooks possessed with intent to distribute 5 grams or more of methamphetamine.
If convicted of the conspiracy charge, Brooks and Gilliam each face 10 years to life imprisonment, a fine of up to $10 million, and at least 5 years of supervised release. The same limits of punishment apply to Gilliams’ alleged methamphetamine distributions last December. All other charges carry a statutory penalty of 5-40 years imprisonment, a fine of up to $5 million, and supervised release of not less than 4 years.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation in this case was conducted by the Drug Enforcement Administration, the Mt. Vernon
Police Department, the Jefferson County Sheriff’s Office, the Illinois State Police, the
United States Marshal Service, the Marion Police Department, and the FBI.
Two Members of the CFL/BFL Plead Guilty to Racketeering Conspiracy and Other ChargesRead 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 Miquise Jones, a/k/a Scaife, 22, of Buffalo, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to racketeering and narcotics conspiracy. The charges carry a maximum penalty of 20 years in prison and a $1,000,000 fine. In addition, Michael Walker, also of Buffalo, pleaded guilty to racketeering conspiracy and assault with a dangerous weapon in aid of racketeering, which carry a maximum penalty of life in prison.
Assistant U.S. Attorney Paul C. Parisi, who is handling the case, stated that the defendants were members of the CBL/BFL Gang, which stands for, among other things, “Cash Been Long” and “Brothers for Life.” The gang, which was involved in the illegal possession and distribution of narcotics, was formed around 2009 and operates primarily in the City of Buffalo at the Towne Gardens Housing Complex. The Towne Gardens served as a central hub for the gang with many members living within the housing complex, and many housing units used to store firearms and narcotics. Parking lots and business fronts adjacent to the Towne Gardens were utilized by members of the gang to distribute street level quantities of narcotics, including heroin, fentanyl, cocaine, crack cocaine, marijuana, and other drugs. The gang used violence, including murder and attempted murder, threats, and intimidation to defend their territory against rivals and anyone deemed to be a threat to the gang.
During his plea, defendant Jones admitted to the following:
• Sometime in 2013 and 2014, Jones, and others, recorded several music videos in and around the Towne Gardens for songs entitled “Damn Fool,” “My Side of Town,” and “War.” They displayed firearms, United States currency, and association with the enterprise.
• On August 21, 2015, the defendant drove a vehicle on Dodge Street Buffalo with two co-defendants who shot at Victim J, a rival gang member, in retaliation for the shooting of Larell Watkins.
• On August 30, 2015, Jones drove a vehicle to Genesee and Crossman Streets in Buffalo, with two co-defendants who shot at Victim K, a rival gang member.
• On September 21, 2015, at East Ferry Street in Buffalo, the defendant drove a vehicle with three co-defendants. One of the co-defendants exited the vehicle, fired a gun numerous times at Victim L, a rival gang member. Victim L sought refuge in a store and the co-defendant then opened up the door to the store and began to shoot inside of the store. Victim L was struck in his arm and sustained injuries. Approximately 20 minutes later, Jones drove the vehicle in the area of Genesee and Crossman Streets in Buffalo. Another co-defendant in the car fired shots and struck Victim K, a rival gang member.
• On April 4, 2016, the defendant appeared in a video on Snapchat and displayed three firearms.
• On June 4, 2016, Jones was in a vehicle stopped by the Buffalo Police Department and possessed a Beretta semi-automatic pistol with ammunition.
• On December 11, 2016, the defendant was at Skyzone in Cheektowaga, NY when rival gang members shot at members of CBL/BFL. Jones and others agreed to retaliate. The defendant drove to the bar called The Groove in Buffalo where a co-defendant fired gunshots at Victim L, a rival gang member.
• On June 2, 2017, in the Towne Gardens, Jones possessed marijuana packaged for distribution.As part of his plea, defendant Walker admitted to the following:
• On May 13, 2013, in Buffalo, the defendant was stopped by a Buffalo Police Officer while riding a bicycle in violation of New York State Vehicle and Traffic Law. During the encounter, Walker possessed crack cocaine and marijuana.
• On February 1, 2017, law enforcement observed the defendant and a co-defendant exiting 974 Jefferson Avenue in Buffalo. A search warrant was then executed at the residence and officers recovered two pistols, both with a magazine and ammunition, a barrel extender, and a semi-automatic rifle with a magazine. Also recovered were metal spoons, digital scales, grinders, and kilogram presses, as well as various bags containing controlled substances, including heroin, fentanyl, butyryl fentanyl, furanyl fentanyl, and U-47700.
• On March 10, 2017, Walker provided an attorney for a co-defendant with an affidavit the defendant prepared and signed stating the he rented the apartment at 974 Jefferson Avenue, and that he possessed a 9mm and 40 caliber gun and the heroin in the apartment. The defendant provided the affidavit in an effort falsely to exonerate the co-defendant for possessing controlled substances and firearms.
• On June 19, 2019, Walker met up with Victim 1 on Genesee Street in Cheektowaga, while a co-defendant waited down the street. Walker accused Victim 1 of killing a CBL/BFL member and also of cooperating with law enforcement in the investigation of CBL/BFL. The defendant and co-defendant then both began punching Victim 1 and stomping Victim 1’s upper body and head onto the pavement. Walker and the co-defendant then ran away. Victim 1 was treated at a hospital for a fractured shoulder bone and concussion.“The good citizens of Western New York do not deserve to live in fear of young men who decide to join these violent neighborhood street gangs,” stated U.S. Attorney Kennedy. “In joining these gangs, members agree to a rulebook which seems to require them to poison their home field through drug dealing and to kill anyone who plays for an opposing team. Those are not the rules, however, and if these young men cannot recognize that in joining these gangs they are participating in a zero sum game, then my Office will enforce the actual rulebook—in the form of federal criminal law—and remove them from our community.”
The pleas are the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the New York State Police, under the direction of Major Edward Kennedy; the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard; the Cheektowaga Police Department, under the direction of Chief David Zack; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Bureau of Alcohol Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Lackawanna Police Department, under the direction of Chief James Michel; and the Erie Crime Analysis Center. Additional assistance was provided by the Erie County District Attorney’s Office, under the direction of District Attorney John Flynn.
Sentencing is scheduled for March 27, 2020, before Judge Vilardo.
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Two Illegal Aliens from Mexico Plead Guilty to Unlawful Return After RemovalRead the Press Release
Gulfport, Miss. – Osvaldo Martinez-Zamora, 44, and Mauricio Munoz-Martinez, 45, both citizens of Mexico, pled guilty yesterday to unlawful reentry by an alien after deportation or removal, announced U.S. Attorney Mike Hurst, Jere T. Miles, Special Agent in Charge of U.S. Immigration & Customs Enforcement's Homeland Security Investigations in New Orleans, and Gregory K. Bovino, Chief Patrol Agent of the Border Patrol’s New Orleans Sector.
Martinez-Zamora previously pled guilty before U.S. District Judge Sul Ozerden and will be sentenced on February 18, 2020 at 9:30 a.m. Munoz-Martinez pled guilty before Senior U.S. District Judge Louis Guirola, Jr. and will be sentenced on February 11, 2020, at 1:30 p.m. Both men face a potential 2 years in prison, 1 year of supervised release, and a $250,000 fine, as well as Department of Homeland Security removal proceedings.
On September 12, 2019, an agent with the Harrison County Sheriff’s Office Interdiction Unit stopped a 2019 black sport utility vehicle on Interstate 10 eastbound. Indicators of illegal alien smuggling were detected, and a Border Patrol Agent arrived to assist. Agents made contact with the driver of the vehicle, and the front seat passenger, who was the driver’s husband. Among the passengers were three men, including Martinez-Zamora and Munoz-Martinez, who were illegal aliens in the United States who had returned after being formally removed from the United States. All vehicle occupants were transported to the Border Patrol Station in Gulfport, for further processing and investigation.
Defendants Martinez-Zamora and Munoz-Martinez were determined to have entered the United States through Nuevo Laredo, Mexico, about four days before their arrest in Mississippi. It was learned that both men had been previously ordered removed from the United States, and had been physically removed pursuant to their removal orders.
U.S. Attorney Hurst praised the cooperation exhibited by the U.S. Department of Homeland Security, Homeland Security Investigations, the U.S. Border Patrol, and the Harrison County Sheriff’s Department. Assistant U.S. Attorney Stan Harris is the prosecutor for the case.
Two Denver Men Arrested After Search Found Large Quantity of Fentanyl, Heroin, and CocaineRead the Press Release
DENVER – United States Attorney Jason Dunn announced that two Denver men were charged yesterday for possessing fentanyl with the intent to distribute it. Gilbert Franco Garcia, age 38, and Jesus Aviles-Higuera, age 29, appeared before a U.S. Magistrate Judge yesterday afternoon where they were advised of their rights and the charges pending against them. Both men are in custody, and will be held pending a detention hearing, scheduled for early next week.
According to facts contained in an affidavit in support of the criminal complaints, on November 1, 2019, members of the Denver Police Department executed a search warrant at 4860 West Mexico Avenue. During the search, officers recovered approximately 1 kilogram of fentanyl, most of which was in the form of a dark-colored brick; approximately 134 fentanyl pills; approximately 454 grams of black tar heroin; and approximately 75 grams of cocaine. Officers initially suspected the dark-colored brick was black tar heroin and the pills were Oxycodone, but laboratory testing revealed the only controlled substance in the brick and the pills was fentanyl.
Fentanyl is a powerful synthetic opioid that is often said to be 50 to 100 times more potent than morphine, and many more times more potent than heroin. After seizure, the Denver Police Department issued a public health bulletin to inform the public of the large fentanyl find because of the risk that it could be confused for black tar heroin.
The Denver Police Department and the Regional Anti-Violence Enforcement Network (RAVEN) are conducting the investigation. Assistant U.S. Attorney Peter McNeilly is prosecuting the case.
The defendants are presumed innocent unless and until proven guilty in a court of law.
Tulsa Man Sentenced for Stealing Almost $370,000 from EmployerRead the Press Release
TULSA, Okla. – A Tulsa man was sentenced Wednesday in federal court for stealing $368,329.61 from his employer, announced U.S. Attorney Trent Shores.
Chief U.S. District Judge John E. Dowdell sentenced Ernest Everette Howard, 49, of Tulsa, to 15 months in federal prison, followed by three years of supervised release, for wire fraud. The court further ordered Howard to pay $368,329.61 in restitution.
“White collar crime corrupts the economic welfare of businesses and communities. Mr. Howard’s embezzlement scheme undermined the mission of his employer as he abused his position of trust. Now, he is headed to federal prison to account for his crimes,” said U.S. Attorney Trent Shores.
Howard was employed as a controller at the Tulsa offices of an international company from 2017 to his termination in January 2019. As such, he oversaw the payroll process and, from January 2018 until his termination, fraudulently padded his own paychecks with unauthorized bonuses and automobile allowances. In an effort to disguise his thefts, Howard attributed the illegal payments to cost of goods sold. Howard used the funds for his personal benefit.
The U.S. Attorney’s Office Asset Forfeiture Section has secured assets from Howard in the approximate amount of $130,000, to be applied to the restitution owed to the victim company, and the Office’s Financial Litigation Unit will pursue the remaining restitution owed.
The FBI conducted the investigation. Assistant U.S. Attorney Kevin C. Leitch prosecuted the case.
Tulsa Man Sentenced for Stealing Almost $370,000 from EmployerRead the Press Release
A Tulsa man was sentenced in federal court for stealing $368,329.61 from his employer, announced U.S. Attorney Trent Shores.
Chief U.S. District Judge John E. Dowdell sentenced Ernest Everette Howard, 49, of Tulsa, to 15 months in federal prison, followed by three years of supervised release, for wire fraud. The court further ordered Howard to pay $368,329.61 in restitution.
“White collar crime corrupts the economic welfare of businesses and communities. Mr. Howard’s embezzlement scheme undermined the mission of his employer as he abused his position of trust. Now, he is headed to federal prison to account for his crimes,” said U.S. Attorney Trent Shores.
Howard was employed as a controller at the Tulsa offices of an international company from 2017 to his termination in January 2019. As such, he oversaw the payroll process and, from January 2018 until his termination, fraudulently padded his own paychecks with unauthorized bonuses and automobile allowances. In an effort to disguise his thefts, Howard attributed the illegal payments to cost of goods sold. Howard used the funds for his personal benefit.
The U.S. Attorney’s Office Asset Forfeiture Section has secured assets from Howard in the approximate amount of $130,000, to be applied to the restitution owed to the victim company, and the Office’s Financial Litigation Unit will pursue the remaining restitution owed.
The FBI conducted the investigation. Assistant U.S. Attorney Kevin C. Leitch prosecuted the case.
Tuba City Man Sentenced to Prison for MurderRead the Press Release
PHOENIX, Ariz. – On October 31, 2019, Richard Kingston Shepherd, of Tuba City, Ariz., was sentenced by U.S. District Judge Douglas L. Rayes to 14 years of imprisonment to be followed by five years of supervised release. Shepherd had previously pleaded guilty to second-degree murder.
In July 2018, Shepherd attacked and killed the victim near Tuba City High School, on the Navajo Nation Indian Reservation. Shepherd is an enrolled member of the Navajo Nation, as was the victim.
The investigation in this case was conducted by the Navajo Nation Division of Public Safety and the Federal Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorney Alexander Samuels, District of Arizona, Phoenix.
Three Felons Appear in Court This Week in Connection with Federal Gun Crimes and Drug OffensesRead the Press Release
SHREVEPORT, MONROE, ALEXANDRIA, La. – United States Attorney David C. Joseph announced the resolution of several cases this week, all of which are separately noted, that were brought pursuant to the Project Safe Neighborhoods (PSN) Program, which is the centerpiece of the Department of Justice’s violent crime reduction efforts. Project Safe Neighborhoods 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.
Federal Jury Convicts Monroe Man on Firearms and Drug Charges
MONROE – United States Attorney David C. Joseph announced that a federal jury handed down a guilty verdict on November 14, 2019, against a Monroe man for possession of a firearm by a convicted felon, possession with intent to distribute marijuana, and possession of a firearm in furtherance of a drug trafficking crime.
Jmarreon D. Mack, 38, of Monroe, was convicted after a two-day jury trial presided over by U.S. District Judge Terry A. Doughty.
Evidence presented during trial revealed that an officer with Louisiana State Police initiated a stop of Mack’s vehicle on April 12, 2018, for a traffic violation. As the trooper approached the vehicle, he smelled marijuana coming from inside. During a search of the vehicle, the trooper and an officer with the Monroe Police Department found a Glock .45 caliber semi-automatic pistol loaded with 10 rounds of ammunition in the magazine and one round in the chamber. In addition to the firearm, officers also found approximately 23.5 grams of marijuana in a bag on the front driver’s seat, a marijuana cigar, a marijuana grinder, and a digital scale. The gun that Mack possessed had been reported stolen.
Jmarreon Mack has prior felony convictions in Ouachita Parish for possession of cocaine (2005 and 2014), attempted distribution of cocaine (2005), and possession with intent to distribute cocaine (2008).
Mack will be sentenced by Judge Doughty on March 4, 2020, and faces five years to life in prison, up to five years of supervised release, and a $500,000 fine.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Louisiana State Police, Monroe Police Department, Richland Parish Sheriff’s Office and Rayville Police Department investigated the case. Assistant U.S. Attorneys Cadesby Cooper and Earl M. Campbell are prosecuting the case.
Shreveport Felon Sentenced for Firearms and Drug Offenses
SHREVEPORT – Demarcus Antonio June, 40, of Shreveport, Louisiana, was sentenced today, by U.S. District Judge Elizabeth E. Foote, to 10 months in prison for possession with intent to distribute cocaine and five years in prison for possession of a firearm in furtherance of a drug trafficking crime, to run consecutively. Judge Foote also sentenced Demarcus June to three years of supervised release following his release from prison.
According to court documents, Shreveport Police officers were patrolling a neighborhood in the Shreveport area when they encountered a female inside a vehicle parked in front of a residence. After learning from the female that she was concerned for the safety of someone inside, the officers made contact with Demarcus June, the owner of the residence. June let them in and officers observed small baggies, a digital scale, and 22 bags of crack cocaine in plain view on the living room coffee table. A search of the bedroom uncovered a Taurus PT111 9mm semi-automatic pistol with 10 rounds, and in the laundry room they found a Glock .45 caliber pistol with a high capacity magazine attached with 39 rounds of .45 caliber ammunition.
Demarcus June is a convicted felon and sex offender, having been convicted of carnal knowledge of a juvenile, and countless arrests for possession with intent to distribute, attempted murder, and obstruction of justice.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Shreveport Police Department conducted the investigation. Assistant U.S. Attorney J. Aaron Crawford prosecuted the case.
Alexandria Felon Pleads Guilty to Firearms and Drug Offenses
ALEXANDRIA – Ronald Louis Hall Jr., 29, of Alexandria, Louisiana, pleaded guilty before U.S. District Judge Dee D. Drell on November 14, 2019, to possession of ammunition by a convicted felon and possession with intent to distribute Oxycodone.
According to the guilty plea, on January 6, 2019, while traveling in Rapides Parish, a Louisiana State trooper initiated a stop of Hall’s vehicle for two traffic violations. As the officer approached the vehicle to make contact with Hall, he encountered the smell of burnt marijuana. Hall admitted to smoking marijuana earlier and consented to a search of his vehicle. During the search, officers found a 9mm extended magazine containing 16 rounds of ammunition in the glove compartment. Officers later discovered a hidden compartment in the vehicle that held five plastic cellophane bags containing 452 Oxycodone pills.
Hall has prior felony narcotics convictions in Rapides Parish for possession of marijuana second offense (2013) and third offense (2015), and possession with intent to distribute cocaine (2014).
Hall faces up to 10 years in prison, three years of supervised release and a $250,000 fine for the firearms offense, and up to 30 years in prison, six years of supervised release, and a $2 million fine for the drug charge. Judge Drell set the sentencing date for February 14, 2020.
The FBI Central Louisiana Safe Streets Task Force, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Louisiana State Police conducted the investigation. Assistant U.S. Attorney Jamilla A. Bynog is prosecuting the case.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of a firearm or ammunition.
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Tax Preparers Plead Guilty to Filing Fraudulent Tax ReturnsRead the Press Release
Michegel Butler and Brittany Patterson, residents of St. John the Baptist Parish, Louisiana, pleaded guilty yesterday to conspiracy to defraud the United States, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and the U.S. Attorney’s Office for the Eastern District of Louisiana. Patterson also pleaded guilty to aiding and assisting in the filing of false tax returns.
According to court documents, Butler owned Crown Tax Service LLC, located in Kenner, Louisiana, and Patterson worked there as a tax return preparer. From approximately January 2013 through April 2013, Butler, Patterson, and others conspired to inflate their clients’ refunds by preparing returns falsely claiming Schedule C businesses, dependents, and dependent care expenses. To substantiate the false expenses, the conspirators directed clients to fill out fraudulent receipts. They also encouraged some clients to buy or sell dependents that could be used on tax returns.
When sentenced, Butler and Patterson each face a maximum sentence of five years, three years of supervised release, restitution, and other monetary penalties. Patterson also faces an additional maximum sentence of three years imprisonment for each count of aiding and assisting in the preparation of a false tax return.
Principal Deputy Assistant Attorney General Zuckerman and the U.S. Attorney’s Office for the Eastern District of Louisiana.commended special agents of Internal Revenue Service-Criminal Investigation, who conducted the investigation, and Trial Attorneys Lauren Castaldi and Jessica Kraft of the Tax Division and Assistant U.S. Attorney G. Dall Kammer, who prosecuted the case.
Tax Preparers Plead Guilty to Filing Fraudulent Tax ReturnsRead the Press Release
WASHINGTON – Michegel Butler and Brittany Patterson, residents of St. John the Baptist Parish, Louisiana, pleaded guilty yesterday to conspiracy to defraud the United States, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and the U.S. Attorney’s Office for the Eastern District of Louisiana. Patterson also pleaded guilty to aiding and assisting in the filing of false tax returns.
According to court documents, Butler owned Crown Tax Service LLC, located in Kenner, Louisiana, and Patterson worked there as a tax return preparer. From approximately January 2013 through April 2013, Butler, Patterson, and others conspired to inflate their clients’ refunds by preparing returns falsely claiming Schedule C businesses, dependents, and dependent care expenses. To substantiate the false expenses, the conspirators directed clients to fill out fraudulent receipts. They also encouraged some clients to buy or sell dependents that could be used on tax returns.
When sentenced, Butler and Patterson each face a maximum sentence of five years, three years of supervised release, restitution, and other monetary penalties. Patterson also faces an additional maximum sentence of three years imprisonment for each count of aiding and assisting in the preparation of a false tax return.
Principal Deputy Assistant Attorney General Zuckerman and the U.S. Attorney’s Office for the Eastern District of Louisiana.commended special agents of Internal Revenue Service-Criminal Investigation, who conducted the investigation, and Trial Attorneys Lauren Castaldi and Jessica Kraft of the Tax Division and Assistant U.S. Attorney G. Dall Kammer, who prosecuted the case.
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Superseding Indictment Charges Former Precious Metals Salesman with Racketeering ConspiracyRead the Press Release
A former salesperson in the New York offices of a U.S. bank (Bank A) was charged in a superseding indictment filed yesterday and made public today for his alleged participation in a racketeering conspiracy in connection with the manipulation of the markets for precious metals futures contracts, which spanned over eight years and involved thousands of unlawful trading sequences, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office.
Jeffrey Ruffo, 56, of Morristown, New Jersey, was charged in a superseding indictment filed in the Northern District of Illinois with one count of conspiracy to conduct the affairs of an enterprise involved in interstate or foreign commerce through a pattern of racketeering activity (more commonly referred to as RICO conspiracy) and one count of conspiracy to commit wire fraud affecting a financial institution, bank fraud, commodities fraud, price manipulation and spoofing.
The superseding indictment follows the original indictment filed on Aug. 22, 2019, which charges Gregg Smith, 55, of Scarsdale, New York; Michael Nowak, 45, of Montclair, New Jersey; and Christopher Jordan, 47, of Mountainside, New Jersey, with one count of RICO conspiracy; one count of conspiracy to commit wire fraud affecting a financial institution, bank fraud, commodities fraud, price manipulation and spoofing; one count of bank fraud and one count of wire fraud affecting a financial institution. Those original charges – as well as the original charges of one count of attempted price manipulation, one count of commodities fraud and one count of spoofing against Smith and Nowak – are incorporated into the superseding indictment.
The case is pending before U.S. District Judge Edmond E. Chang of the Northern District of Illinois. The next status hearing in the case is scheduled for Dec. 5, 2019, at 10:45 a.m., during which Ruffo is expected to be arraigned.
The superseding indictment alleges that between approximately March 2008 and August 2016, Ruffo along with the other defendants and co-conspirators were members of Bank A’s global precious metals desk in New York, London and Singapore, with varying degrees of seniority and supervisory responsibility over others on the desk. Ruffo, who joined Bank A in May 2008, worked there until August 2017. During that time, he was an executive director and a salesperson on Bank A’s precious metals desk in New York, specializing in hedge fund sales. Ruffo’s clients included hedge funds that were global investment management firms that invested in precious metals. As it relates to the RICO conspiracy, the defendants and their co-conspirators were allegedly members of an enterprise—namely, the precious metals desk at Bank A—and conducted the affairs of the desk through a pattern of racketeering activity, specifically, wire fraud affecting a financial institution and bank fraud.
The superseding indictment alleges that the defendants engaged in widespread spoofing, market manipulation and fraud while working on the precious metals desk at Bank A through the placement of orders they intended to cancel before execution (Deceptive Orders) in an effort to create liquidity and drive prices toward orders they wanted to execute on the opposite side of the market. In thousands of sequences, the defendants and their co-conspirators allegedly placed Deceptive Orders for gold, silver, platinum and palladium futures contracts traded on the New York Mercantile Exchange Inc. (NYMEX) and Commodity Exchange Inc. (COMEX), which are commodities exchanges operated by CME Group Inc. By placing Deceptive Orders, the defendants and their co-conspirators allegedly intended to inject false and misleading information about the genuine supply and demand for precious metals futures contracts into the markets, and to deceive other participants in those markets into believing something untrue, namely that the visible order book accurately reflected market-based forces of supply and demand. This false and misleading information was intended to, and at times did, trick other market participants into reacting to the apparent change and imbalance in supply and demand by buying and selling precious metals futures contracts at quantities, prices and times that they otherwise likely would not have traded, the superseding indictment alleges.
As also alleged in the superseding indictment, the defendants and their co-conspirators defrauded Bank A’s clients who had bought or sold “barrier options” by trading precious metals futures contracts in a manner that attempted to push the price towards a price level at which Bank A would make money on the option (barrier-running), or away from a price level at which Bank A would lose money on the option (barrier-defending). Namely, when barrier-running, the defendants and their co-conspirators would allegedly place orders for precious metals futures contracts in a way that was intended to deliberately trigger the barrier option held by Bank A. Conversely, when barrier-defending, the defendants and their co-conspirators would allegedly place orders for precious metals futures contracts in a way that was intended to deliberately avoid triggering the barrier option held by clients of Bank A.
The superseding indictment alleges that one of the reasons the defendants and their co‑conspirators used Deceptive Orders in their trading was to service and benefit key clients, including Ruffo’s hedge fund clients, which were important sources of revenue and market intelligence for the precious metals desk at Bank A. For example, as alleged in the superseding indictment, if a hedge fund client wished to purchase gold, Ruffo would receive the order and communicate it to Smith, who, with Ruffo’s knowledge and encouragement, would then place Deceptive Orders to sell gold futures contracts in order to artificially lower the price at which the hedge fund could buy (or the defendants and their co-conspirators could buy on the hedge fund’s behalf). By passing along the lower price, the superseding indictment alleges, the defendants and their co-conspirators hoped to retain that hedge fund’s business for the precious metals desk at Bank A.
The charges in the superseding indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is the result of an ongoing investigation by the FBI’s New York Field Office. The Commodity Futures Trading Commission’s Division of Enforcement provided assistance in this case. Trial Attorney Matthew F. Sullivan and Assistant Chief Avi Perry of the Criminal Division’s Fraud Section are prosecuting the case.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information at https://www.justice.gov/criminal-fraud/victim-witness-program.
Suburban Chicago Man Charged with Attempting to Provide Material Support to ISISRead the Press Release
The leader of a Chicago-area street gang has been arrested for allegedly attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS).
Jason Brown, also known as “Abdul Ja’Me,” allegedly provided $500 in cash to an individual on three separate occasions this year, with the understanding that the money would be wired to an ISIS soldier engaged in active combat in Syria, according to a criminal complaint and affidavit filed in U.S. District Court in Chicago. Unbeknownst to Brown, the individual to whom he provided the money was confidentially working with law enforcement, and the purported ISIS fighter was actually an undercover law enforcement officer.
Brown, 37, of Lombard, Illinois, was arrested Thursday, Nov. 14, 2019. He is charged with attempting to provide material support and resources to a foreign terrorist organization. A detention hearing is set for Nov. 21, 2019, at 11:00 a.m., before U.S. Magistrate Judge Sunil R. Harjani in Chicago.
The complaint alleges that Brown is the leader of the AHK street gang, which is based in the Chicago suburb of Bellwood and comprised of former members of other gangs, including the Black P Stones, Gangster Disciples, and Four Corner Hustlers. AHK members trafficked various narcotics in the Chicago area, including a fentanyl analogue, heroin, and cocaine, and often boasted about the gang’s activities on social media, the charges allege.
Also Thursday, several AHK members or associates were arrested on federal drug charges. As part of the investigation, law enforcement shut down the gang’s operation of two illicit drug markets on the West Side of Chicago and executed search warrants at numerous locations.
Seven AHK members or associates are charged in criminal complaints filed in federal court. Charged with conspiracy to possess a fentanyl analogue, heroin, and cocaine with the intent to distribute are Tristan Clanton, 34, of Chicago, Randall Langston, 25, of Bellwood, Ill., his brother, Brandon Langston, 22, of Bellwood, Ill., Hezekiah Wyatt, 19, of Hillside, Ill., Lenolis Muhammad-Curtis, 24, of Bellwood, Ill., and Frank Thaxton, 19, of Chicago. Charged with illegal distribution of the drug Xanax is Maurice Thomas, 30, of Chicago. Judge Harjani set detention hearings for Wyatt and Brandon Langston for Nov. 18, 2019; Thomas and Muhammad-Curtis for Nov. 19, 2019; and Clanton for Nov. 20, 2019. An arrest warrant has been issued for Randall Langston.
According to the charges, Clanton is an influential AHK member who leads a drug trafficking operation in Chicago and Bellwood. The organization is responsible for trafficking more than a half kilogram of heroin, at least 474 grams of fentanyl analogue, and distribution quantities of cocaine and other drugs, the charges allege. Clanton and his crew sold drugs near two intersections in the North Lawndale and Humboldt Park neighborhoods of Chicago. Law enforcement shut down the crew’s operation of these markets as part of the federal probe.
The public is reminded that charges contain only accusations and are not evidence of guilt. The material support charge against Brown is punishable by up to 20 years in prison. The drug conspiracy charge carries a maximum sentence of life in prison, while the drug distribution charge is punishable by up to five years. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Substantial investigative assistance was provided by the IRS Criminal Investigation Division, Illinois State Police, U.S. Postal Inspection Service, U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Lombard, Illinois, Police Department, Addison, Illinois, Police Department, and Chicago Police Department. The case is being prosecuted by Assistant U.S. Attorneys Shoba Pillay, Sean Driscoll and Nicholas Eichenseer of the Northern District of Illinois with support from the National Security Division, Counterterrorism Section.
St. Croix Man Who Downloaded Images from the BitTorrent Network Pleads Guilty to Possession of Child PornographyRead the Press Release
St. Croix, USVI – On Thursday, November 14, 2019, Collin Gomes, 26, of St. Croix, Virgin Islands, pleaded guilty before U.S. Magistrate Judge George Cannon, Jr., to possession of child pornography, United States Attorney Gretchen C.F. Shappert announced.
According to the plea agreement filed with the court, on or about August 16, 2018, September 6, 2018 and October 22, 2018, a Grand Prairie, Texas police detective was conducting an online investigation on the BitTorrent network for offenders sharing child pornography. An investigation was initiated for a device on the IP address used by the defendant because it was associated with a torrent with a particular infohash [SHA1 Hash over the part of a torrent file that includes: ITEM: length(size) and path (path with filename) Name: The name to search for. Piece length: The length(size) of a single piece. Pieces: SHA1 Hash of EVERY piece of this torrent]. On each of the dates above, a download of files was successfully completed from the device that the defendant’s IP address was making available. Each download contained child pornography.
On December 14, 2018, HSI executed a search warrant on the defendant’s residence. Agents explained to the defendant what they were searching for and advised him of his rights. The defendant waived his rights and agreed to speak to the agents. They asked if he viewed, downloaded and made available for download any files containing images or videos depicting child pornography and the defendant said "yes." The defendant also told the agents he had an HP computer on which he had child pornography and that he had been downloading child pornography since 2011 and collected thousands of images and videos. He stated that there was approximately one and a half Terabytes of material. HSI found thousands of child pornography images and videos found on the defendant’s computer and external hard drives.
Gomes faces a maximum sentence of 10 years and a $250,000 fine. A sentencing date has been set for March 18, 2020.
The case was investigated by Homeland Security Investigations. The case is being prosecuted by Assistant U.S. Attorney Rhonda Williams-Henry.
Sinaloa Cartel Member Extradited to the United StatesRead the Press Release
Sinaloa Cartel member Luis Arellano-Romero (aka “Bichi,” “Bichy,” “Helio”), age 44, has been extradited from Mexico to face federal racketeering charges in the Western District of Texas. Arellano-Romero had his initial appearance in El Paso today before U.S. Magistrate Judge Anne Berton. Arellano-Romero remains in federal custody.
U.S. Attorney John F. Bash, Special Agent in Charge Kyle W. Williamson of the Drug Enforcement Administration’s (DEA) El Paso Division, Special Agent in Charge Luis Quesda of the FBI’s El Paso Field Office and, Special Agent in Charge Jeffrey C. Boshek, II, of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Dallas Division made the announcement.
In April 2012, Arellano-Romero was charged in the same federal grand jury indictment as Joaquin Guzman Loera, aka “El Chapo,” Ismael Zambada Garcia aka “Mayo,” Jose Antonio Torres Marrufo “aka Jaguar” and 20 other individuals responsible for the operations and management of the Sinaloa Cartel (Cartel). The indictment charged them with violating the Racketeer Influenced and Corrupt Organizations (RICO) Act. According to the indictment, Luis Arellano-Moreno was Torres Marrufo’s personal body guard who participated in numerous kidnappings and murders as part of Torres Marrufo’s assassin squads. Upon conviction, Luis Arellano-Romero faces up to life in federal prison.
The 14-count grand jury indictment, returned on April 11, 2012, charges conspiracy to violate the RICO statute; conspiracy to possess more than five kilograms of cocaine and over 1000 kilograms of marijuana; conspiracy to import more than five kilograms of cocaine and 1000 kilograms of marijuana; conspiracy to commit money laundering; conspiracy to possess firearms in furtherance of drug trafficking crimes; murder in furtherance of a continuing criminal enterprise (CCE) or drug trafficking; engaging in a CCE in furtherance of drug trafficking; conspiracy to kill in a foreign country; kidnapping; and violent crimes in aid of racketeering.
According to the indictment, the purpose of the Sinaloa Cartel is to smuggle large quantities of marijuana and cocaine, as well as other drugs, into the United States for distribution. Laundered proceeds of drug trafficking activities are returned to Cartel members and are used in part to purchase properties related to the daily functioning of the Cartel, including real estate, firearms, ammunition, bullet proof vests, radios, telephones, uniforms and vehicles. In an effort to maintain control of all aspects of their operations, the Cartel and it’s associates, including members of the Gente Nueva (“New People”) and the Artistas Asesinos (“Murder artists”), kidnap, torture and murder those who lose or steal assets belonging to, are disloyal to, or are enemies of the Cartel.
This includes the Juarez Cartel, a competing drug organization who at the time was led by Vicente Carrillo Fuentes, as well as it’s enforcement arm known as La Linea and the Barrio Aztecas. Oftentimes, murders committed by the Cartel involve brutal acts of violence as well the public display of the victim along with banners bearing written warnings to those who would cross the Cartel.
The indictment references two acts of violence allegedly committed by members of the Cartel. First, the indictment alleges that in September 2009, Torres Marrufo, Gabino Salas-Valenciano, Fernando Arellano-Romero (Luis’s brother) and Mario Iglesias-Villegas, under the leadership of Guzman Loera and Zambada Garcia, conspired to kidnap and murder a Horizon City, Texas, resident. Specifically, Torres Marrufo ordered the kidnapping of the victim to answer for the loss of a 670-pound load of marijuana seized by the U.S. Border Patrol at the Sierra Blanca checkpoint on Aug. 5, 2009. After the kidnapping, the victim was taken to Juarez where Torres Marrufo interrogated him and ordered that he be killed. On Sept. 8, 2009, the victim’s mutilated body was discovered in Juarez.
Second, the indictment alleges that on May 7, 2010, Torres Marrufo, Fernando Arellano-Romero and Iglesias-Villegas, under the leadership of Guzman Loera and Zambada Garcia, conspired to kidnap and murder an American citizen and two members of his family. Specifically, Torres Marrufo caused an individual in El Paso to travel to a wedding ceremony in Juarez to confirm the identity of a target. The target was the groom, a U.S. citizen and a resident of Columbus, New Mexico. Under Torres Marrufo’s orders, the groom, his brother and his uncle were all kidnapped during the wedding ceremony and subsequently tortured and murdered. Their bodies were discovered by Juarez police a few days later in the bed of an abandoned pickup truck. Additionally, a fourth person was killed during the kidnapping at the wedding ceremony.
This investigation resulted in the seizure of hundreds of kilograms of cocaine, and thousands of pounds of marijuana in cities throughout the U.S. Law enforcement also took possession of millions of dollars in drug proceeds which were destined to be returned to the Cartel in Mexico. Agents and officers likewise seized hundreds of weapons and thousands of rounds of ammunition intended to be smuggled into Mexico to assist the Cartel’s battle to take control of one of the key drug trafficking corridors used to bring drugs into the U.S.
The DEA, FBI and ATF together with U.S. Immigration and Customs Enforcement’s-Homeland Security Investigations, U.S. Border Patrol, U.S. Customs and Border Protection, U.S. Marshals Service, El Paso Police Department, El Paso Sheriff’s Office and Texas Department of Public Safety investigated the case. The Office of International Affairs of the Department of Justice’s Criminal Division provided significant support in securing and coordinating Arellano-Romero’s arrest and extradition. U.S. Attorney Bash also expresses his appreciation to the U.S Attorney’s Office in New Mexico; Attorney General of Mexico Alejandro Gertz Manero and his attorneys; and, to law enforcement authorities in Mexico for their assistance.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
San Diego Real Estate Agent Arrested in Latvia and Extradited to Face Charges on $12 Million Fraud SchemeRead the Press Release
NEWS RELEASE SUMMARY – November 15, 2019
SAN DIEGO – Alexander Avergoon, a longtime San Diego real estate agent and businessman, was arraigned in federal court today following his extradition Thursday from Latvia to San Diego to face charges stemming from two investment fraud schemes in which he stole more than $12 million from unwitting investors.
Avergoon made his initial appearance today before U.S. Magistrate Judge Burkhardt. At the hearing, prosecutors moved to detain Avergoon based on his risk of flight. A detention hearing is scheduled for November 19 at 9:00 a.m. before U.S. Magistrate Judge Burkhardt.
Avergoon was indicted in August in the Southern District of California. He was located by Latvian law enforcement authorities and arrested in October. He was transferred to San Diego on Thursday.
The indictment, which was unsealed in October and provided to Latvian authorities, details Avergoon’s long-running schemes to defraud San Diego investors by pretending to use their money to buy and invest in real estate around San Diego County. Using his connections and reputation as a real estate agent, Avergoon scammed his clients and real estate investors by arranging fictitious real estate purchases and by selling them the rights to collect on fictitious loans.
From as early as 2010, Avergoon invited his victims to partner with him to purchase multi-unit apartment buildings or commercial office space, promising that the rental income would generate monthly dividends and that the investors would share in the appreciation when the properties were eventually sold. After collecting the money from investors, Avergoon told them he had purchased the buildings, and promised to service the rentals and distribute the rental income. In reality, Avergoon never actually bought these buildings; instead, he diverted the investors’ money to his own use. In order to sustain the illusion that the investment was legitimate, Avergoon made years’ worth of regular monthly payments to the investors, telling them the money came from rent payments.
In another scheme, the indictment charges that Avergoon offered additional victim investors the “opportunity” to earn approximately 8 to 20 percent interest on short-term loans to homeowners, and pretended to act as a broker between investors and homeowners. In reality, the homeowners were not working with Avergoon, did not agree to borrow money from the investors, and never signed the loan agreements Avergoon presented to his investor clients. Avergoon forged the loan documents—and the signatures on deeds of trust. He then simply diverted the investors’ money to his own use.
U.S. Attorney Robert Brewer praised the FBI and IRS for their important work bringing Avergoon to justice. “Criminals can run, but we will work with our law enforcement partners around the globe to make sure they are brought to justice. We are committed to protecting the public from con artists and identifying thieves who undermine our trust and financial well-being.”
“Through lies and manipulation, Avergoon devised an egregious scheme in order to steal from investors; a classic case of greed overcoming honest business practices,” said FBI Special Agent In Charge Scott Brunner. “Today’s extradition shows that criminals who commit crimes and run will be subject to the long arm of American justice.”
“Mr. Avergoon allegedly victimized unwitting investors out of millions by falsely promising to purchase income-generating residential and business rental properties,” said Ryan Korner, Special Agent in Charge of IRS Criminal Investigation. “Mr. Avergoon used an elaborate system of fraudulent trust deeds, forged signatures, fake IRS documents, and shell companies to orchestrate his scheme. Perpetrators like Mr. Avergoon work to destroy the public’s trust in real estate professionals and the safety of investing in our housing markets. The agents of IRS Criminal Investigation will work tirelessly with our law enforcement partners to pursue these criminals and hold them accountable wherever they run or hide.”
The U.S. Attorney’s Office wishes to thank the Office of International Affairs of the Justice Department’s Criminal Division and our Latvian law enforcement partners, including the State Police of Latvia, for their extraordinary work in securing Avergoon’s return to the United States to face charges.
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
DEFENDANTS Case Number 19CR02955-BAS
Alexander Avergoon Age: 43 San Diego, CA
SUMMARY OF CHARGES
Wire Fraud, in violation of 18 U.S.C. § 1343
Maximum penalty: Twenty years in prison per count, $250,000 fine
Aggravated Identity Theft, in violation of 18 U.S.C. § 1028A
Maximum Penalty: Mandatory term of imprisonment of two years, to be served consecutive to the sentence imposed for any underlying charge; fine of up to $250,000
Money Laundering, in violation of 18 U.S.C. § 1956(a)(1)(B)
Maximum penalty: Twenty years in prison per count, $500,000 fine
Money Laundering in Amounts Over $10,000, in violation of 18 U.S.C. § 1957
Maximum penalty: Ten years in prison per count, $250,000 fine
AGENCIES
Federal Bureau of Investigation
Internal Revenue Service
San Diego Contractor Pleads Guilty in $11 Million “Rent-A-Vet” SchemeRead the Press Release
Assistant U.S. Attorneys Rebecca Kanter (619) 546-7304 and Aaron Arnzen (619) 546-8384
NEWS RELEASE SUMMARY – November 15, 2019
SAN DIEGO, CA – Action Telecom, a Santee-based government contractor, pleaded guilty in federal court Thursday to fraud charges, admitting that the company illegally obtained $11 million in federal contracts that were supposed to be set aside for service-disabled veteran-owned businesses.
Action Telecom was indicted in April along with another company, A&D General Contracting, Inc., and its owner, Andrew Otero. Otero and A&D were convicted by a federal jury on fraud and conspiracy charges a year ago and were sentenced in June to 18 months custody and over $1.5 million in financial penalties.
Action Telecom, which is co-owned by Navy veteran Roger Ramsey and non-veteran Bruce Madden, admitted in its plea agreement to participating in a conspiracy to defraud the government by forming a joint venture with A&D – and falsely representing that Action and the joint venture qualified as service-disabled veteran-owned small businesses (SDVOSB). Based on the false claim to SDVOSB eligibility, the conspirators fraudulently obtained approximately $11 million in federal government construction contracts or task orders with the Department of Veterans Affairs and the Army Corps of Engineers.
The fraud conspiracy involved set-aside contracts that could only be bid upon by legitimate service-disabled veteran-owned small businesses – a designation that did not apply to Otero or A&D. To appear qualified, Ramsey, Madden and co-conspirator Otero initially executed an agreement to create the joint venture, which stated that Action Telecom would be the managing venturer, employ a project manager for each of the set-aside contracts, and receive the majority of the joint venture’s profits.
However, Otero, Ramsey and Madden signed a secret side agreement six months later that made clear the joint venture was ineligible under the SDVOSB program. For example, the side agreement said the parties created the venture so that A&D could simply “use the Disabled Veteran Status of Action Telecom” to bid on contracts. The side agreement also stated that A&D – not Action Telecom – would run the construction jobs. They also agreed that “A&D will keep 98 percent of every payment; Action Telecom will receive 2 percent of every payment.”
In addition to the secret side agreement, the joint venture did not operate as a legitimate SDVOSB, but was essentially controlled by Otero and A&D. For example, although Ramsey (a service-disabled veteran) nominally served as president of Action Telecom and the joint venture, he actually worked full-time as a vice president for another telecommunications company owned by Madden. Otero and A&D, not Ramsey, controlled the day-to-day management, daily operation and long-term decision making of the joint venture. Among other things, Otero and A&D appointed an A&D employee as the project manager for every contract and task order.
“Our nation strives to repay the debt of gratitude we owe to our veterans by setting aside some government contracts for veterans with service-related disabilities,” said U.S. Attorney Robert Brewer. “These unscrupulous contractors abused this program through a cynical and illegal ‘rent-a-vet’ scheme. Our office will continue to protect these programs and hold those who abuse them fully accountable.”
Acting SAC Rebeccalynn Staples, Veterans Affairs Office of Inspector General (VA OIG), stated, “Every day legitimate SDVOSB companies lawfully compete to obtain set aside government contracts. Unfortunately, some non-veteran owned companies misrepresent themselves as a SDVOSB and fraudulently obtain set side contracts. The VA OIG remains committed to aggressively pursuing these cases in an effort to maintain the sanctity of the program for all veterans.”
Action Telecom was ordered to appear before U.S. District Judge John Houston for sentencing on February 10, 2020 at 10 a.m.
CORPORATE DEFENDANTS
Action Telecom Inc., Santee, California
Criminal Case No. 17CR0879-JAH
SUMMARY OF CHARGE
False statement, in violation of 18 U.S.C. § 1001
Maximum penalty: Five years in prison
AGENCIES
Department of Veterans Affairs, Office of Inspector General
Sacramento Man Sentenced to 11 Years in Prison for Receiving Child PornographyRead the Press Release
SACRAMENTO, Calif. —Robert Charles Chavez, 33, of Sacramento, was sentenced today to 11 years and one month in prison for receiving child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, in March 2015, Chavez used peer-to-peer file sharing software to download from the internet videos and images of nude prepubescent children engaged in sexually explicit conduct.
This case was investigated by the Sacramento Internet Crimes Against Children (ICAC) Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant U.S. Attorneys Brian A. Fogerty and Mira Chernick prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Roger Stone Found Guilty of Obstruction, False Statements, and Witness TamperingRead the Press Release
Roger J. Stone, Jr., of Florida, was found guilty by a jury today of obstructing a congressional investigation into Russian interference in the 2016 U.S. presidential election and related offenses. The announcement was made by U.S. Attorney Jessie K. Liu and Timothy R. Slater, Assistant Director in Charge of the FBI’s Washington Field Office.
Stone was found guilty of obstruction of a congressional investigation, five counts of making false statements to Congress, and tampering with a witness. The verdict followed a trial in the U.S. District Court for the District of Columbia. Stone faces a prison sentence of up to five years for counts one to six and up to 20 years for count seven. He will be sentenced on February 6, 2020, by the Honorable Amy Berman Jackson.
According to the government’s evidence, in January 2017, the United States House of Representatives Select Permanent Committee on Intelligence (“House Intelligence Committee”) announced an investigation into allegations of Russian interference in the 2016 U.S. presidential election, including allegations that Russia was involved in the publication of documents related to the presidential election by WikiLeaks in 2016. On September 26, 2017, in testimony to the Committee, Stone made a number of false statements relating to the identity of a person he had referred to in August 2016 as his “back-channel” or “intermediary” to the head of WikiLeaks; whether he had asked that person to do anything on his behalf; whether he had written communications with that person; whether he discussed that person with anyone involved with the Trump campaign; and whether he had written communications with third parties about the head of WikiLeaks. On October 13, 2017, Stone sent the House Intelligence Committee a letter falsely stating that the person he had referenced in August 2016 was an individual named Randy Credico. Stone then engaged in witness tampering by urging Credico either to corroborate this false account, or to tell the Committee that he could not remember the relevant events, or to invoke his Fifth Amendment right against self-incrimination to avoid testifying before the Committee. Credico ultimately invoked his Fifth Amendment right in response to a Committee subpoena.
In announcing the verdict, U.S. Attorney Liu and Assistant Director Slater acknowledged the work of the FBI agents involved in the investigation and prosecution of Stone, as well as the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorneys Jonathan Kravis and Michael Marando, Special Assistant U.S. Attorneys Adam Jed and Aaron Zelinsky, and Paralegal Specialist Amanda Rohde of the Fraud and Public Corruption Section.
Registered sex offender pleads guilty to enticing young men to produce child pornographyRead the Press Release
DAYTON – Brendan J. Eardly, 48, of Troy, Ohio pleaded guilty to producing child pornography by enticing at least seven juvenile males in Ohio and elsewhere to engage in explicit sexual conduct for the purpose of producing pornographic videos.
Eardly also pleaded guilty to committing a felony as a registered sex offender. He faces at least 15 years in prison for producing the child pornography and at least an additional ten years for committing a felony as a registered sex offender.
According to court documents, Eardly set up accounts on multiple social media platforms and communicated with more than 60 juveniles around the world, offering to provide them with advice about sex. Eardly sent some of them sexually explicit videos of himself and pornographic videos of other men engaged in sexually explicit conduct.
Eardly pleaded guilty before U.S. District Judge Walter H. Rice on November 14. Eardly was ordered held in custody until sentencing, which is scheduled for March 16, 2020.
Terms of the plea agreement include a requirement that Eardly forfeit the computer, cell phones and computer storage media including 17 CD’s, an external hard drive and three thumb drives he used to commit the crimes.
At the time he committed the crimes, he was required to register as a sex offender due to a case in Miami County in 2004.
David M. DeVillers, United States Attorney for the Southern District of Ohio, Joseph Deters, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Troy Police Chief Charles Phelps, and the Bureau of Criminal Investigation in Ohio Attorney General Dave Yost’s office announced the sentence. Assistant United States Attorney SaMee Harden is representing the United States in this case.
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Providence Man Admits to Trafficking Kilos of Fentanyl, Heroin and CocaineRead the Press Release
PROVIDENCE – A Providence man is awaiting sentencing in federal court after admitting to the court he trafficked more than eight kilograms of fentanyl, more than two kilograms of cocaine and nearly two kilograms of heroin.
Ronny B. Nova, a/k/a Benancio, 33, of Providence, arrested by members of the Rhode Island DEA Drug Task Force on August 23, 2017, appeared on Thursday before U.S. District Court Judge John J. McConnell, Jr., and pleaded guilty as charged by way of federal indictment with possession with intent to distribute heroin, possession with intent to distribute cocaine, conspiracy with intent to distribute fentanyl, and attempt to distribute fentanyl, announced United States Attorney Aaron L. Weisman and Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division Brian D. Boyle.
According to court documents and information presented to the court, on November 17, 2015, an investigation into Nova’s drug trafficking activities included the purchase of 2.5 grams of heroin from Nova while under the surveillance of law enforcement. Three days later, members of the DEA Drug Task Force executed a federal court-authorized search of a residence tied to Nova, and seized 2,269.3 grams of cocaine, 1,954.1 grams of heroin, and 348.4 grams of fentanyl.
According to court documents and information presented to the court, in late August 2017, Missouri State Police executed a traffic stop of a rental truck, inside of which they discovered a box containing six kilograms of fentanyl. The driver was arrested. The fentanyl and the truck were seized. When interviewed by Missouri State Police, the driver told troopers that he left Baldwin Park, California, on August 20, 2017, with the fentanyl, with instructions to bring the truck to a pre-determined location in Warwick, Rhode Island.
On August 23, 2017, an undercover law enforcement officer, posing as the truck driver arrested in Missouri, drove a similar rental truck to the same location the truck carrying the fentanyl was to have been driven to. Law enforcement established surveillance in the area of the truck and watched as a vehicle entered the area and the driver, Ronny Nova, surveilled the truck then drove away. Shortly after, the undercover officer posing as the person instructed to drive the truck containing the fentanyl to Warwick, was directed to a different parking lot nearby. When the truck arrived at the second location, the same vehicle arrived and the driver, Ronny Nova, exited the vehicle and began to approach the truck. As he did so, law enforcement arrested Nova. Nova was found to be carrying $12,892 in cash, close to the amount he was to have paid the driver for the delivery of the fentanyl.
Nova is scheduled to be sentenced by U.S. District Court John J. McConnell, Jr., on January 30, 2020.
The case is being prosecuted by Assistant U.S. Attorneys Paul F. Daly and William J. Ferland.
The Rhode Island DEA Drug Task Force is comprised of law enforcement personnel from DEA, Rhode Island State Police, and the East Providence, Central Falls, Coventry, Cranston, Newport, North Kingstown, Pawtucket, Providence, South Kingstown, Warwick, West Warwick and Woonsocket Police Departments.
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Ponchatoula Woman Sentenced for Obstructing JusticeRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that ANGEL PERILLOUX, age 39, of Ponchatoula, was sentenced on November 14, 2019 for obstruction of justice.
According to the court documents, PERILLOUX obstructed a federal grand jury investigation by soliciting individuals to remove evidence from an impounded vehicle. PERILLOUX discussed several unsuccessful attempts to break into the vehicle on recorded jail calls. Ultimately, at PERILLOUX’s direction, an employee of Cooper’s Salvage Yard and Wrecker Service removed a firearm and drug money from a vehicle and provided them to PERILLOUX.
U.S. District Judge Carl J. Barbier sentenced PERILLOUX to (3) years probation, to include (6) months of home detention. A $100 special assessment was also imposed.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Tangipahoa Parish Sheriff’s Office investigated this matter. The case was prosecuted by Assistant United States Attorney Maria M. Carboni.
Panama National Sentenced for Possession of Fraudulent Immigration DocumentsRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that FELIX ANTONIO SANCHEZ-GOMEZ, age 54, a citizen of the Republic of Panama, was sentenced on November 12, 2019 for possession of fraudulent immigration documents.
According to court documents, FELIX ANTONIO SANCHEZ-GOMEZ possessed a counterfeit Permanent Resident card.
U.S. District Judge Wendy B. Vitter sentenced FELIX ANTONIO SANCHEZ-GOMEZ to time served, and one year supervised release after imprisonment, and a $100 special assessment.
U.S. Attorney Strasser praised the work of the Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Owner of California Substance Abuse Treatment Facilities Charged in Scheme to Defraud ACA ProgramsRead the Press Release
U.S. Attorney John H. Durham of the District of Connecticut, Special Agent in Charge Phillip Coyne of the Boston Regional Office of the Office of the Inspector General of the Department of Health and Human Services, Special Agent in Charge Brian C. Turner of the FBI’s New Haven Division, and Special Agent in Charge Kristina O’Connell of IRS Criminal Investigation in New England, today announced that a federal grand jury in Connecticut has returned an indictment charging R. JEFFREY YATES, 52, of Santa Ana, California, with conspiracy and fraud offenses related to a scheme to defraud several state Affordable Care Act programs of millions of dollars.
The indictment was returned under seal on October 31, 2019, and Yates was arrested on November 6 in California. The indictment was unsealed in the District of Connecticut on November 13. Yates is released on bond pending his arraignment in Connecticut, which is not yet scheduled.
As alleged in the indictment, Yates owned and operated Morningside Recovery, a business that operated substance abuse treatment facilities in California. Yates conspired with others, including Jeffrey White and his son, Nicholas White, to defraud health care plans operating under the Affordable Care Act (“ACA,” commonly referred to as “Obamacare”) in Connecticut and other states by fraudulently enrolling individuals in ACA plans in states where the individuals did not live. In order to maximize their proceeds from the fraud scheme, the Whites would enroll the individuals in ACA plans in states that paid the highest amount for substance abuse treatment, even though the individuals did not live in those states. The Whites and Yates then arranged to have the individuals admitted to Morningside Recovery facilities for treatment. Morningside Recovery then billed ACA plans in Connecticut and elsewhere for thousands of dollars for treatment services. Yates and Morningside Recovery then paid the Whites for each patient that had been placed in a Morningside facility.
The indictment charges Yates with one count of conspiracy to commit health care fraud and mail fraud, seven counts of health care fraud, and five counts of mail fraud. If convicted, Yates faces a maximum term of imprisonment of 20 years on each of the conspiracy and mail fraud counts, and a maximum term of imprisonment of 10 years on each health care fraud count.
On October 12, 2018, Jeffrey White and Nicholas White each pleaded guilty to one count of conspiracy to commit health care fraud and admitted that their scheme resulted in more than $27 million in losses to ACA plans across the country, including ACA plans in Connecticut, Arizona, California, Delaware, Indiana, Kentucky, New Jersey, Ohio, Oregon, Pennsylvania, Tennessee and Texas. They await sentencing.
U.S. Attorney Durham noted that this case is believed to be the first of its kind involving fraudulent enrollment of individuals in ACA plans on a national scale.
This investigation is being conducted by the Office of the Inspector General of the U.S. Department of Health Human Services, the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation Division, and the U.S. Postal Inspection Service.
U.S. Attorney Durham thanked the Connecticut Affordable Care Act exchange, known as Access Health CT, and the U.S. Attorney’s Office for the Central District of California for their assistance with the investigation.
The case is being prosecuted by Assistant U.S. Attorney David J. Sheldon.