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15 November 2019
Atlanta drug trafficker sentenced for heroin distributionRead the Press Release
ATLANTA – Ramone Shirley has been sentenced for possession with the intent to distribute heroin. Shirley is a prior convicted felon who had nearly 200 grams of heroin and two firearms in his possession when officers arrested him in 2018.
“Repeat offenders like Shirley pose a serious threat to public safety,” said U.S. Attorney Byung J. “BJay” Pak. “Their continual return to criminal activity represents a lack of fear of consequences for their actions. Citizens deserve safety and a drug-free community. Through our commitment to Operation SCOPE, we will continue prosecuting and removing repeat offenders from our streets.”
“This is a perfect example of cooperative drug law enforcement. The Atlanta-Carolinas HIDTA is committed to working with our Federal, State, Local and Tribal partners to rid our communities of this poison,” said HIDTA Executive Director Dan R. Salter.
“The successful results of this investigation should let career criminals like Mr. Shirley know that those who flood our streets with dangerous drugs like heroin, will ultimately be brought to justice by DEA, its law enforcement partners and the United States Attorney’s Office,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division.
“We are pleased that our combined efforts have led to the conviction of this repeat offender and he will no longer be distributing his poison on the streets of Atlanta,” said Homeland Security Investigations (HSI) Acting Special Agent in Charge Robert J. Hammer. “HSI is proud of its strong partnership with DEA Atlanta and will continue to partner with them to maximize our capabilities in dismantling these criminal networks.”
According to U.S. Attorney Pak, the charges and other information presented in court: In June 2016, Shirley distributed three kilograms of cocaine to another drug dealer inside his shop in Atlanta, Georgia. The cocaine was seized by Georgia State Patrol during a traffic stop, and DEA and Homeland Security Investigations agents eventually identified Shirley as the cocaine source.
After further investigation, agents arrested Shirley at his home on charges of distributing the cocaine seized in the 2016 traffic stop. During the arrest, they found a kilo-press, money counter, nearly 200 grams of heroin, and two loaded firearms, including one with an extended magazine. Agents also found parts of a kilo-press at Shirley’s shop, and his phone had videos of him waving vacuum-sealed bundles of cash. As a result of his conviction, Shirley forfeited his boat, a truck, two Harley Davidson motorcycles, and cash.
Ramone Shirley, a/k/a “Big Play Ray,” 44, of Atlanta, Georgia, was sentenced by U.S. District Judge Mark H. Cohen to seven years in prison to be followed by four years of supervised release. Shirley was convicted on these charges on April 9, 2019, after he pleaded guilty.
This case is presented as a part of Operation SCOPE (Strategically Combatting Opioids through Prosecution and Enforcement), which is an initiative launched by the U.S. Attorney’s Office to partner with federal and local law enforcement to fight the devastating effects that illegally-prescribed painkillers, heroin, and synthetic opioids, such as fentanyl have on our neighborhoods.
The Drug Enforcement Administration, the Atlanta-Carolina High Intensity Drug Trafficking Area Program, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations investigated this case.
Assistant U.S. Attorney Nicholas Hartigan prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Appleton Duo Indicted on Federal Firearm ChargesRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that November 14, 2019, a federal grand jury issued an indictment against Mason O. Beudry (age: 23) and Juan M. Cardenas (age: 23) both of Appleton, Wisconsin.
The indictment alleges that Cardenas made a “false and fictitious” statement in connection with the acquisition of a Taurus G2C model 9mm handgun from a Grand Chute, Wisconsin, Fleet Farm store in violation of Title 18, United States Code, Section 922(a)(6). It further alleges that Beaudry subsequently possessed the firearm purchased by Cardenas despite Beaudry’s status as a convicted felon contrary to Title 18, United States Code, Section 922(g)(1).
Each faces up to ten years’ imprisonment, a $250,000 fine, and three years of supervised release if convicted of their respective charges.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Appleton Police Department. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government must prove them guilty beyond a reasonable doubt.
For Additional Information Contact:
Public Information Officer Kenneth Gales 414-297-1700
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Antioch Resident Sentenced to More Than 11 Years in Prison for Possession of Child PornographyRead the Press Release
OAKLAND – Sonny Mitchell was sentenced today to 135 months in prison for possession of child pornography, announced United States Attorney David L. Anderson and United States Secret Service Special Agent in Charge Thomas C. Edwards. The Honorable Jon S. Tigar, U.S. District Judge, handed down the sentence earlier today.
Mitchell, 45, of Antioch, pleaded guilty to the charge on August 16, 2019. According to his plea agreement, Mitchell admitted to possessing and distributing to others images of children as young as seven years old engaged in sexually explicit conduct. Mitchell used a social media platform to communicate with others and then distribute the images, which included videos and GIFs (Graphics Interchange Format). In one video, an adult male voice is heard giving directions to two minors who were engaged in sexually explicit conduct. Mitchell also agreed he was subject to a minimum sentence of ten years imprisonment because of his conviction in 1999 for unlawful sex with a minor.
A federal grand jury indicted Mitchell on May 9, 2019, charging him with two counts of distribution of child pornography, in violation of 18 U.S.C. § 2252(a)(2) and (b)(1), and one count of possession of child pornography in violation of 18 U.S.C. § 2252(a)(4)(B) and (b)(2). Mitchell pleaded guilty to the possession count and the distribution counts were dismissed at sentencing.
This investigation began when a member of the public called local police to report Mitchell’s transmission of child pornography using a social media platform. In addition, during the course of the investigation, Mitchell was identified as the user of a social media account that had been reported by the National Center for Missing and Exploited Children (NCMEC) as being used to transmit child pornography. NCMEC had received a cyber-tip indicating that an individual was using a social media platform to send child pornography to other users. Law enforcement eventually identified Mitchell as the user of the account transmitting the images.
In addition to the prison term, Judge Tigar sentenced Mitchell to seven years of supervised release. The defendant will begin serving the prison term immediately. In addition, Judge Tigar scheduled a hearing for January 24, 2020, to determine issues regarding restitution.
Assistant U.S. Attorney Jonathan U. Lee is prosecuting the case with the assistance of Jessica Rodriguez and Kathleen Turner. The prosecution is the result of an investigation by the U.S. Secret Service, the Silicon Valley Internet Crimes Against Children Task Force, the Contra Costa District Attorney’s Office, and the Antioch Police Department.
Alleged Leader of Chicago-Area Street Gang Charged with Attempting to Provide Material Support to ISISRead the Press Release
CHICAGO — The suspected 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,” 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, the complaint states.
Brown, 37, of Lombard, Ill., was arrested Thursday. 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.
Six other alleged AHK members or associates were charged in a separate complaint with federal drug offenses. According to the charges, AHK members allegedly 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. 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.
“The conduct alleged in these two complaints presents grave risks to our communities,” said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois. “We will seek accountability to the fullest extent of the law.”
“These charges underscore the ceaseless efforts of federal, state, and local law enforcement agencies to disrupt the illegal flow of money and drugs,” said Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI. “The FBI is proud to collaborate with its partners to make our neighborhoods safer and to keep valuable resources out of the hands of gang and terrorist organizations.”
U.S. Attorney Lausch announced the charges along with John C. Demers, Assistant Attorney General for National Security at the U.S. Department of Justice, and Eddie Johnson, Superintendent of the Chicago Police Department. 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, Ill., Police Department, and Addison, Ill., Police Department. The government is represented 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.
The alleged AHK members or associates 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. Clanton, Brandon Langston, Wyatt and Muhammad-Curtis were arrested Thursday. Judge Harjani set their detention hearings for next week. Thaxton is currently in the custody of state law enforcement, and a federal court appearance will be scheduled at a later date. 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, according to the complaint. 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 is punishable by up to 20 years in prison. The drug conspiracy charge carries a maximum sentence of life in prison. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Alexandria Man Sentenced to Prison for Distributing Anabolic SteroidsRead the Press Release
ALEXANDRIA, Va. – An Alexandria man was sentenced today to five years in prison for manufacturing and distributing anabolic steroids and money laundering.
According to court documents, John Russell Kestel, 38, ran an anabolic steroid manufacturing and distribution conspiracy for at least three years. Kestel imported raw steroid powders from China and manufactured them into consumable steroid products in a clandestine laboratory in the basement of his home in Alexandria. In addition to steroid products, Kestel concocted homemade versions of pharmaceutical drugs intended to counter the side effects of long-term steroid abuse.
Kestel then distributed his homemade steroid products through social media sites including Facebook. After confirming the interest of potential clients in a private Facebook group, Kestel would direct them to a password-protected website where they could place orders and make payments.
Kestel utilized an elaborate money laundering scheme to conceal and disguise the nature of the proceeds of his steroid manufacturing and distribution operation. The money laundering scheme involved bank accounts that had been opened by the defendant in a multitude of names, including the names of real people known to the defendant and using their personally identifiable information.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); and Mark S. McCormack, Special Agent in Charge, FDA Office of Criminal Investigations, Metro Washington Field Office, made the announcement after sentencing by U.S. District Judge Liam O’Grady. Special Assistant U.S. Attorney Jason Trigger and Assistant U.S. Attorney Dennis M. Fitzpatick 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. 1:19-cr-244.
Additional Charges Filed Against Former NFL Player, More Defendants in Drug-Trafficking ConspiracyRead the Press Release
KANSAS CITY, Mo. – Additional charges have been filed against a former Kansas City Chiefs football player and eight co-defendants for their roles in a drug-trafficking conspiracy that operated primarily in Eastern Jackson County.
Saousoalii P. Siavii Jr., also known as “Junior,” 41, of Independence, Missouri, was charged in a nine-count superseding indictment returned under seal by a federal grand jury in Kansas City, Missouri, on Wednesday, Nov. 13. The superseding indictment replaces the original indictment against Siavii and includes additional charges and eight additional defendants. The indictment was unsealed today following the arrests and initial court appearances of some of those defendants.
The federal indictment alleges that Siavii, along with Marion D. McCrorey, also known as “Doug,” 40, Andrew A. Tofaeono, also known as “Drew,” 35, Isaac M. Butler, 34, Michelle M. Andrews, 37, Katie M. Thompson, also known as “Muneca,” 25, Michelle L. Morris, 25, and James J. Leach, 39, all of Independence; and Kristannie Casteel, 31, of Blue Springs, Missouri; participated in a conspiracy to distribute methamphetamine from July 11, 2018, to Nov. 13, 2019.
In addition to the conspiracy, Siavii is charged with two counts of possessing a firearm in furtherance of drug trafficking. Siavii allegedly possessed a Sturm Ruger 9mm semi-automatic handgun on Aug. 4, 2019, and a Smith and Wesson 9mm semi-automatic pistol on Aug. 24, 2019.
Siavii and Andrews are also each charged with one count of being a drug user in possession of a firearm. Siavii allegedly possessed a Phoenix Arms .22-caliber semi-automatic pistol on April 7, 2019. Andrews allegedly possessed a Kel-Tec .380-caliber pistol July 10, 2019.
Siavii is also charged with two counts of possessing methamphetamine with the intent to distribute. Tofaeono is also charged with one count of possessing methamphetamine with the intent to distribute.
Leach is also charged with being a felon in possession of a firearm. Leach, who has prior felony convictions, allegedly possessed a Ward’s Western Field 12-gauge pump-action shotgun on Sept. 30, 2019.
According to an affidavit filed in support of the original criminal complaint, Siavii was arrested on Aug. 24, 2019. Independence police officers responded to parking lot on U.S. 40 Highway, where a witness said he located his friend’s stolen 2017 Jeep Wrangler Sport. The witness told police he saw a man, later identified as Siavii, getting out of the driver’s seat of the vehicle.
Officers contacted Siavii, the affidavit says, who disregarded their commands, and an officer deployed his Taser on Siavii. Siavii, who is six feet, five inches tall and weighs approximately 330 pounds, fell to the ground. Officers attempted to gain control as he began to actively resist arrest. Siavii began pushing himself up off the ground, at which time a loaded Smith and Wesson 9mm pistol fell directly in front of him within his reach. An officer drew his duty weapon and put it to Siavii’s back, due to him not being under physical control, while another officer grabbed Siavii’s firearm and threw it several feet away. Officers continued to fight with Siavii, the affidavit says, while giving him commands to stop resisting and to place his hands behind his back. An officer deployed his Taser on Siavii again with little effect. Siavii was able to get on top of the officer, who was on the ground at this point. Another officer was eventually able to put Siavii in a neck restraint and render him unconscious long enough to handcuff him. Siavii continued to resist even after being handcuffed.
In addition to the Aug. 24 incident, the affidavit cites several more incidents in which Siavii was arrested while in possession of illegal drugs and firearms. In one incident, when officers responded to a report of a stolen Chevrolet Silverado that was tracked by On-Star to a motel parking lot, Siavii attempted to flee on foot, then resisted arrest, and fought with officers. In another incident, Siavii led officers in a vehicle pursuit that reached speeds up to 101 m.p.h. Siavii’s vehicle eventually left the roadway and he fled on foot before being located by officers and taken into custody.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Special Assistant U.S. Attorney Robert Smith. It was investigated by the Independence, Mo., Police Department.
Activity in the United States Attorney's OfficeRead the Press Release
Federal District Court Judge Alan B. Johnson sentenced LEWAUN CHRISTOPHER PORTER, 43, of Aurora, Colorado on November 12, 2019 for possession with intent to distribute methamphetamine, cocaine, and heroin, carrying a firearm during and in relation to a drug trafficking crime, and being a felon in possession of a firearm. Porter was arrested in Cheyenne, Wyoming. He received one hundred eight months of imprisonment, to be followed by sixty months of supervised release, and ordered to pay community restitution in the amount of $200.00 and a $300.00 special assessment. The Wyoming Division of Criminal Investigation investigated this case.
Federal District Court Judge Alan B. Johnson sentenced DAVID ANTHONY MCKEOWN, 51, of Casper, Wyoming on November 12, 2019 for conspiracy to distribute methamphetamine. McKeown was arrested in Casper, Wyoming. He received eighty-four months of imprisonment, to be followed by sixty months of supervised release, and ordered to pay community restitution in the amount of $400.00 and a $100.00 special assessment. The Wyoming Division of Criminal Investigation investigated this case.
Federal District Court Judge Nancy D. Freudenthal sentenced NICHOLAS ROSS HALCOTT, 20, of Cheyenne, Wyoming on November 14, 2019 for stealing of firearms from federal firearms license. Halcott was arrested in Cheyenne, Wyoming. He received thirty-seven months of imprisonment, to be followed by thirty-six months of supervised release, and ordered to pay restitution in the amount of $3,500.00 and a $100.00 special assessment. The Cheyenne Police Department and the ATF investigated this case.
Achille Man Pleads Guilty to Possession of Stolen FirearmsRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that David Shane Northcutt, age 42, of Achille, Oklahoma, entered a guilty plea to Possession Of Stolen Firearms, in violation of Title 18, United States Code, Sections 922(j) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleged that on or about March 5, 2019, in the Eastern District of Oklahoma, the defendant, knowingly possessed stolen firearms which had been shipped and transported in interstate commerce, knowing and having reasonable cause to believe the firearms were stolen.
The charges arose from an investigation by the Achille Police Department, the Bryan County Sheriff’s Office, the Oklahoma State Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Shannon Henson represented the United States.
79 Guns Taken Off Streets in Greater Lawrence Area and over 30 Individuals ChargedRead the Press Release
BOSTON – Thirty-two individuals have been charged with federal and state drug and gun charges. Seventy-nine guns, including assault weapons, have been removed from streets in the Greater Lawrence area.
This morning, over 70 federal, state and local law enforcement officers carried out the arrests of individuals alleged to have sold a large number of firearms and a variety of controlled substances, including fentanyl, heroin and cocaine. Eighteen of the 32 defendants are alleged to be members or associates of the Trinitarios street gang in Lawrence.
The following individuals were charged in U.S. District Court:
- Arismendy Gil-Padilla, a/k/a “Flow,” 29, of Methuen, was charged with being a felon in possession of firearms and ammunition, and distribution of and possession with intent to distribute cocaine and 40 grams or more of fentanyl;
- Jonathan Arias, 29, of Indianapolis, Ind., was charged with being a felon in possession of firearms and ammunition;
- Emilio Rodriguez, 32, of Lynn, was charged with distribution of and possession with intent to distribute 28 grams or more of cocaine base;
- Enrique Rosario, a/k/a “Kike”, 32, of Lawrence, was charged with being a felon in possession of firearms and ammunition;
- John Harry Morales, a/k/a “Harry”, 33, of Lawrence, was charged with being a felon in possession of firearms and ammunition;
- Jose Aponte, a/k/a “Kiko”, 33, of Lawrence, was charged with distribution of and possession with intent to distribute 100 grams or more of heroin, and being a felon in possession of firearms and ammunition;
- Jose Omar Hernandez-Aragones, a/k/a “Omar,” 22, of Lawrence, was charged with being a felon in possession of firearms and ammunition and distribution of and possession with intent to distribute cocaine and cocaine base;
- Kevin Gomez, a/k/a “Monkey,” 31, of Haverhill, was charged with distribution of and possession with intent to distribute heroin, and being a felon in possession of firearms and ammunition;
- Keysi Batista, 30, of Methuen, was charged with distribution of and possession with intent to distribute 40 grams or more of fentanyl;
- Luis Ruiz Gonzalez, 27, of Lawrence, was charged with being a felon in possession of firearms and ammunition, distribution of and possession with intent to distribute fentanyl; and
- Yisthen Ynoa, a/k/a “Cantifla,” 34, of Lawrence, was charged with distribution of and possession with intent to distribute cocaine.
The following 21 individuals were charged by the Essex County District Attorney’s Office with various state firearm and drug offenses:
- Pedro Arias, 63, of Lawrence;
- Jonathan Delgado, 35, of Lawrence;
- Victor Diaz, 22, of Lawrence;
- Luis Diaz-Brito, a/k/a “Blackie,” 22, of Lawrence;
- Yolvie Diaz-Martinez, 22, of Salem;
- Ulises Espinal, a/k/a “Ezequiel,” 34, of Methuen;
- Robinson Gaston-Santana, 29, of Lawrence;
- Francis Gotay, 29, of Haverhill;
- J.M.[1];
- J.R.2;
- Jose Nunez, a/k/a “Oreja,” 24, of Methuen;
- Anthony Nunez-Romano, 20, of Methuen;
- Alexis Paredes, a/k/a “Cabeza,” 31, of Lawrence;
- Kevin Perez-Lorenzo, 20, of Salem;
- Guaril Poche-Brito, a/k/a ‘Chamakito,” 21, of Haverhill;
- Kenneth Rodriguez, 31, of Lawrence;
- Temistocles Santana, a/k/a “Omar,” 28, of Lawrence;
- Jael Guillen-Perez, 20, of Haverhill;
- Alan Acosta, 23, of Lawrence;
- Abigail Arias, 20, of Lawrence; and
- Eliezer Taveras, a/k/a “Bad Bunny,” 18, of Lawrence.
Depending on the drug quantity, the federal drug trafficking conspiracy and distribution charges provide a sentence of up to 20 years, 40 years, or life in prison; a minimum of three, four or five years and up to a lifetime of supervised release; and fines of $1 million, $5 million and $10 million. The federal firearms charges provide for sentences of up to 10 years in prison, three years of supervised release and a fine of $250,000.
United States Attorney Andrew Lelling; Essex County District Attorney Jonathan Blodgett; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Commissioner Carol Mici of the Massachusetts Department of Corrections; and Lawrence Police Chief Roy P. Vasque made the announcement today. The FBI’s North Shore Gang Task Force provided assistance with the investigation.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
[1] These individuals are juveniles or were juveniles at the time they committed criminal offenses.
$50 Profit for Crimes Leads to 50 Months in Prison for Greenville ManRead the Press Release
A Greenville man who made $50 from his crimes will repay each dollar with a month in prison. Aeron
Michael Davis, 28, has been sentenced to 50 months imprisonment and three years of supervised release for methamphetamine distribution and for being a felon in possession of a firearm.Court documents establish that on Feb. 21, 2017, Davis, a previously convicted felon, facilitated the sale of a .22 caliber pistol by another man, Wade Garrett McWhorter. Davis received
$30 for his part. Six days later, Davis helped arrange for a buyer to purchase under 5 grams of pure methamphetamine, commonly known as “ice,” from McWhorter. For his efforts on that occasion, Davis received another $20.McWhorter and Davis were charged in the same indictment. Davis pleaded guilty in July to the two counts in which he was named. The following month, McWhorter pleaded guilty to all six charges against him – three counts of being a felon in possession of a firearm and three more counts of distributing methamphetamine. He is due to be sentenced on Dec. 11, 2019.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation leading to the charges in this case.
14 November 2019
York County Man Charged with Child Exploitation OffensesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Gilbert Joseph Swann, III, age 67, of Delta Borough, Pennsylvania, was indicted on November 13, 2019, by a federal grand jury for exploitation of minors.
According to United States Attorney David J. Freed, the indictment alleges that Swann received and possessed images of child pornography between May 2012 and July 2013, in York County. The indictment also seeks forfeiture of all electronic equipment used to take those images, Freed said.
This case was investigated by the Pennsylvania State Police with the assistance of the Federal Bureau of Investigation. Assistant United States Attorney James T. Clancy is prosecuting 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 individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for receipt of child pornography charge is 20 years’ imprisonment and a $250,000 fine. That charge carries a mandatory minimum term of imprisonment of 5 years. The possession of child pornography charge is punishable by a maximum of 10 years’ imprisonment and a $250,000 fine. Both charges carry a term of supervised released following imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Wood County Man Sentenced for Federal Gun ChargeRead the Press Release
CHARLSTON, W.Va. – A Wood County man was sentenced to prison for a federal gun charge, announced United States Attorney Mike Stuart. Robert Adams, 34, was sentenced to 60 months in prison for being a felon in possession of ammunition. Adams is currently in state prison serving a sentence of three to fifteen years. He will begin serving his federal sentence after completing his state sentence.
“We are working with a sense of urgency to prevent and reduce gun crime throughout the District,” said United States Attorney Mike Stuart. “Partnerships with federal, state and local law enforcement to insure violators of federal gun laws are held accountable are critical to our success. Those partnerships are strong.”
Adams previously admitted that on July 23, 2017, he knowingly possessed a Remington-Peters 4-10 shotgun cartridge, in and affecting commerce. Adams was prohibited from possessing the ammunition because of a 2008 felony offense of burglary in the Circuit Court of Wood County.
The Parkersburg Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation. Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Steven I. Loew handled the prosecution.
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Williamsville Father and Son Arrested with Marijuana at the BorderRead 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 Kenneth Francis Munroe, 60, and his son Kenneth Philip Munroe, 30, both of Williamsville, NY, were arrested and charged by criminal complaint with entry of goods by means of false statements and simple possession of a controlled substance. The charges carry a maximum penalty of two years in prison and a $250,000 fine.
Assistant U.S. Attorney Jeremiah E. Lenihan, who is handling the case, stated that on November 8, 2019, at approximately 3:38 p.m., the defendants attempted to enter the U.S. from Canada at the Peace Bridge Port of Entry. Kenneth Philip Munroe was driving the vehicle. According to the complaint, during primary inspection, both defendants told a Customs and Border Protection officer that they did not have any drugs and/or contraband. However, the officer smelled the odor of marijuana emanating from the vehicle and referred the father and son for secondary inspection.
During secondary inspection, officers recovered: two bags of suspected marijuana, which had been concealed in the pants of Kenneth Philip Munroe; three bags of suspected marijuana, which had been concealed in the pants of Kenneth Francis Munroe; and a sixth bag of suspected marijuana, which had been secreted under the driver’s seat. Approximately 250 grams of suspected marijuana were contained within those six packages recovered from the defendants and their vehicle.
The defendants made an initial appearance before U.S. Magistrate Judge Michael J. Roemer and were released.
The complaint is the result of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy, and Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Western PA Felon Sentenced to Prison for Attempted Possession of Xanax and Illegal Possession of GunsRead the Press Release
PITTSBURGH, Pa. - A resident of Jeannette, Pennsylvania, has been sentenced in federal court to a term of imprisonment of 15 months to be followed by three years of supervised release on his conviction of attempted possession with intent to distribute alprazolam and possession of a firearm and ammunition by a convicted felon, United States Attorney Scott W. Brady announced today.
Senior United States District Court Judge Donetta W. Ambrose imposed the sentence on James Robert Czachowski, age 22.
According to information presented to the court, in April 2018, agents interdicted an international express parcel addressed to the defendant with a return address in the United Kingdom. Pursuant to extended border search authority, agents opened the package which contained 11,000 pills consistent with the size and shape of Xanax. On April 11, 2018, U.S. Postal Inspectors made a controlled delivery of the parcel as addressed. The defendant’s father signed for the package. As the defendant’s father removed the package from the residence, but before he could deliver it to his son, agents stopped the defendant’s father, who stated that the package was to be delivered to his son at an address in Pittsburgh. The defendant contacted his father on the phone while his father was with the agents. Agents overheard the defendant ask his father whether he left yet and if everything was OK.
Agents then went to the defendant’s residence. The defendant admitted to investigators that he had purchased narcotics over the DarkNet for approximately one year. He admitted that he paid $4,200 for 10,000 Xanax bars and that he intended to sell them for $1.50 per bar. The defendant gave permission to search his residence and admitted to possessing a .22 revolver. A .380 9mm revolver, a Springfield XD 9mm and numerous rounds of ammunition were recovered, as well. As a result of a prior felony conviction, the defendant is prohibited from possessing firearms and/or ammunition.
Assistant United States Attorney Shanicka L. Kennedy prosecuted this case on behalf of the government.
The United States Postal Inspection Service, Homeland Security Investigations and Federal Bureau of Investigation conducted the investigation that led to the prosecution of Czachowski.
Vallejo Man Sentenced to over 7 Years in Prison for International Money Laundering Conspiracy and Tax FraudRead the Press Release
SACRAMENTO, Calif. — Marty Marciano Boone, 58, of Vallejo, was sentenced today by U.S. District Judge Troy L. Nunley to seven years and three months in prison following his conviction after jury trial for conspiracy to commit money laundering, two counts of substantive money laundering, and filing a false tax return, U.S. Attorney McGregor W. Scott announced.
According to court documents and evidence presented at trial, Marty Boone and his wife and co-defendant Ronda Boone, 56, filed separate false tax returns claiming that they were owed millions of dollars in refunds from the IRS. While the IRS flagged Ronda Boone’s tax return as fraudulent and denied her claim, Marty Boone’s false return resulted in the IRS paying him over $1.9 million in a refund check. Evidence at trial established that Marty and Ronda Boone then laundered those funds through domestic and foreign accounts, including by establishing a shell corporation in Cyprus and a church in the state of Washington through which the defendants moved the fraudulently obtained money.
This case is the product of an investigation by IRS Criminal Investigation. Assistant U.S. Attorney Matthew M. Yelovich is prosecuting the case.
Ronda Boone is scheduled to be sentenced on Nov. 21. She faces a maximum penalty of 10 years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
United States Files False Claims Act Complaint against South Dakota Neurosurgeon and Physician-Owned DistributorshipsRead the Press Release
The United States has filed a complaint against Sioux Falls, South Dakota, neurosurgeon Wilson Asfora M.D., Medical Designs LLC, and Sicage LLC alleging False Claims Act violations arising from the alleged payment of kickbacks to Asfora tied to the devices he used in spinal surgeries, the Justice Department announced today. Medical Designs and Sicage are medical device distributorships in South Dakota owned and operated by Asfora.
The Anti‑Kickback Statute prohibits offering or paying anything of value to induce the referral of items or services covered by Medicare, Medicaid, and other federal healthcare programs. The government’s complaint alleges that Asfora, Medical Designs, and Sicage engaged in multiple kickback schemes designed to pay Asfora hundreds of thousands of dollars in exchange for Asfora using spinal devices distributed by Medical Designs and Sicage in his spine surgeries. Despite receiving numerous warnings that he was performing medically unnecessary procedures with the devices in which he had a financial interest, Asfora allegedly continued to perform such procedures while personally profiting from his use of devices sold by Medical Designs and Sicage. The United States previously resolved related civil claims against several Sanford Health entities in October 2019.
“The Department of Justice will seek to hold accountable physicians and medical device companies that receive or pay illegal kickbacks in any form,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “Improper inducements have no place in our federal healthcare system where medical decisions should be based on the healthcare needs of patients and not on a physician’s personal financial interest.”
“Our office will aggressively pursue anyone who colludes to violate federal law and compromise the integrity of our healthcare system,” said U.S. Attorney Ron Parsons for the District of South Dakota.
“Government health program patients should be confident that surgical procedures are medically needed, not performed to increase physician profits,” said Curt L. Muller, Special Agent in Charge of the Office of Inspector General at the U.S. Department of Health and Human Services. “For years our fraud alert has warned that physician distributorships are inherently suspect under the Anti-Kickback statute.”
The United States filed its complaint in a lawsuit pending in the U.S. District Court for the District of South Dakota that was filed under the qui tam, or whistleblower, provisions of the False Claims Act. Under the act, a private citizen can sue on behalf of the government and receive a share of any recovery. The act permits the United States to intervene and take over responsibility for litigating the case, as it has done here. Those who violate the act are subject to treble damages and penalties.
The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800‑HHS‑TIPS (800-447-8477).
This matter is being handled by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the District of South Dakota, with assistance from the Department of Health and Human Service’s Office of Inspector General.
The case is captioned United States ex rel. Bechtold, et al. v. Asfora, et al., No. 4:16-cv-04115-LLP (D.S.D.). The claims asserted against the defendants are allegations only, and there has been no determination of liability.
United States Attorney General Announces Launch of Project Guardian – A Nationwide Strategic Plan to Reduce Gun ViolenceRead the Press Release
Today, United States Attorney General William P. Barr announced the launch of Project Guardian, a new initiative designed to reduce gun violence and enforce federal firearms laws across the country. Specifically, Project Guardian focuses on investigating, prosecuting, and preventing gun crimes.
Reducing gun violence and enforcing federal firearms laws have always been among the Department’s highest priorities. In order to develop a new and robust effort to promote and ensure public safety, the Department reviewed and adapted some of the successes of past strategies to curb gun violence. Project Guardian draws on the Department’s earlier achievements, such as the “Triggerlock” program, and it serves as a complementary effort to the success of Project Safe Neighborhoods (PSN). In addition, the initiative emphasizes the importance of using all modern technologies available to law enforcement to promote gun crime intelligence.
“Gun crime remains a pervasive problem in too many communities across America. Today, the Department of Justice is redoubling its commitment to tackling this issue through the launch of Project Guardian,” said Attorney General William P. Barr. “Building on the success of past programs like Triggerlock, Project Guardian will strengthen our efforts to reduce gun violence by allowing the federal government and our state and local partners to better target offenders who use guns in crimes and those who try to buy guns illegally.”
“ATF has a long history of strong partnerships in the law enforcement community,” said Acting Director Regina Lombardo. “Make no mistake, the women and men of ATF remain steadfast to our core mission of getting crime guns off of our streets. ATF and U.S. Attorneys nationwide will leverage these partnerships even further through enhanced community outreach initiatives and coordination with local, state, and tribal law enforcement and prosecutors to cut the pipeline of crime guns from those violent individuals who seek to terrorize our communities. Project Guardian will enhance ATF’s Crime Gun Intelligence, to include identifying, investigating and prosecuting those involved in the straw purchases of firearms, lying on federal firearms transaction forms, and those subject to the mental health prohibition of possessing firearms.”
Project Guardian’s implementation is based on five principles:
- Coordinated Prosecution. Federal prosecutors and law enforcement will coordinate with state, local, and tribal law enforcement and prosecutors to consider potential federal prosecution for new cases involving a defendant who: a) was arrested in possession of a firearm; b) is believed to have used a firearm in committing a crime of violence or drug trafficking crime prosecutable in federal court; or c) is suspected of actively committing violent crime(s) in the community on behalf of a criminal organization.
- Enforcing the Background Check System. United States Attorneys, in consultation with the Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in their district, will create new, or review existing, guidelines for intake and prosecution of federal cases involving false statements (including lie-and-try, lie-and-buy, and straw purchasers) made during the acquisition or attempted acquisition of firearms from Federal Firearms Licensees.
Particular emphasis is placed on individuals convicted of violent felonies or misdemeanor crimes of domestic violence, individuals subject to protective orders, and individuals who are fugitives where the underlying offense is a felony or misdemeanor crime of domestic violence; individuals suspected of involvement in criminal organizations or of providing firearms to criminal organizations; and individuals involved in repeat denials.
- Improved Information Sharing. On a regular basis, and as often as practicable given current technical limitations, ATF will provide to state law enforcement fusion centers a report listing individuals for whom the National Instant Criminal Background Check System (NICS) has issued denials, including the basis for the denial, so that state and local law enforcement can take appropriate steps under their laws.
- Coordinated Response to Mental Health Denials. Each United States Attorney will ensure that whenever there is federal case information regarding individuals who are prohibited from possessing a firearm under the mental health prohibition, such information continues to be entered timely and accurately into the United States Attorneys’ Offices’ case-management system for prompt submission to NICS. ATF should engage in additional outreach to state and local law enforcement on how to use this denial information to better assure public safety.
Additionally, United States Attorneys will consult with relevant district stakeholders to assess feasibility of adopting disruption of early engagement programs to address mental-health-prohibited individuals who attempt to acquire a firearm. United States Attorneys should consider, when appropriate, recommending court-ordered mental health treatment for any sentences issued to individuals prohibited based on mental health.
- Crime Gun Intelligence Coordination. Federal, state, local, and tribal prosecutors and law enforcement will work together to ensure effective use of the ATF’s Crime Gun Intelligence Centers (CGICs), and all related resources, to maximize the use of modern intelligence tools and technology. These tools can greatly enhance the speed and effectiveness in identifying trigger-pullers and finding their guns, but the success depends in large part on state, local, and tribal law enforcement partners sharing ballistic evidence and firearm recovery data with the ATF.
Federal law enforcement represents only about 15% of all law enforcement resources nationwide. Therefore, partnerships with state, local, and tribal law enforcement and the communities they serve are critical to addressing gun crime. The Department recognizes that sharing information with our state, local, and tribal law enforcement partners at every level will enhance public safety, and provide a greater depth of resources available to address gun crime on a national level.
- Coordinated Prosecution. Federal prosecutors and law enforcement will coordinate with state, local, and tribal law enforcement and prosecutors to consider potential federal prosecution for new cases involving a defendant who: a) was arrested in possession of a firearm; b) is believed to have used a firearm in committing a crime of violence or drug trafficking crime prosecutable in federal court; or c) is suspected of actively committing violent crime(s) in the community on behalf of a criminal organization.
U.S. Attorney’s Office hosts roundtable discussion on sexual harassment in the workplaceRead the Press Release
HOUSTON – The U.S. Attorney’s Office for the Southern District of Texas, Equal Employment Opportunity Commission and the Justice Department’s Civil Rights Division hosted a roundtable to discuss the problem of sexual harassment in the workplace, announced U.S. Attorney Ryan K. Patrick.
The Department of Justice, through the U.S. Attorney’s Offices and the Employment Litigation Section of the Civil Rights Division, enforces Title VII of the Civil Rights Act of 1964 against state and local government employers. The law prohibits discrimination in employment on the basis of race, color, national origin, sex and religion. Sexual harassment is among the conduct the law prohibits because it is a form of sex discrimination.
Harassment comes in many forms and can be verbal or nonverbal. It can be face-to-face or online. It can involve physical conduct or the display of images. Both men and women can be harassers or the victims of harassment. Harassment does not have to be repeated to be improper. A single incident can be enough, if severe.
This roundtable, which is the first in the country, is part of the Justice Department’s Sexual Harassment in the Workplace Initiative. The initiative seeks to bring sex discrimination claims against state and local government employers with a renewed emphasis on sexual harassment charges. The department also works to develop effective remedial measures that can be used to hold public sector employers accountable where systemic Title VII violations have been found. This includes identifying changes to existing employer practices and policies that will result in safe work environments. The creation of this initiative reflects the Department of Justice’s commitment to the aggressive enforcement of the nation’s anti-discrimination laws and an expansion of the Civil Rights Division’s efforts to eradicate sexual harassment by public employers.
This office is working closely with the Employment Litigation Section of the Civil Rights Division to spread the word here in the district about options to help public sector employees. Roundtable discussions like this one are one way to increase awareness and build strong partnerships in the community to combat this problem together.
Additional information about Title VII and other federal employment laws is available on the Civil Rights Division’s website.
DOJ encourages anyone who has experienced sexual harassment in the workplace, or knows someone who has, to contact the Civil Rights Division.
U.S. Attorney John C. Anderson Announces Appointment of Full-Time Assistant U.S. Attorney in Roswell, New MexicoRead the Press Release
ALBUQUERQUE, N.M. – U.S. Attorney John C. Anderson announced today the appointment of a full-time Assistant U.S. Attorney to be stationed permanently in Roswell, N.M., to strengthen the efforts of the U.S. Attorney’s Office to serve the citizens of southeastern New Mexico, and to enhance the office’s partnerships with federal, state, local, and tribal law enforcement agencies in the region.
“We are the U.S. Attorney’s Office for the entire State of New Mexico, and Roswell has always been an important focal point for our prosecutions in the southeastern part of the state,” said U.S. Attorney Anderson. “This new on-the-ground presence in Roswell will provide us with valuable insight into the needs and priorities of the communities of southeastern New Mexico, and offer our law enforcement partners in this region closer coordination and immediate guidance on the most urgent crime reduction and other public safety matters.”
Officials of the U.S. Marshals Service, FBI, Homeland Security Investigations (HSI), Drug Enforcement Administration (DEA), Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Internal Revenue Service Criminal Investigation (IRS-CI), U.S. Immigration and Custom Enforcement’s Enforcement and Removal Operations (ERO), U.S. Immigration and Customs Enforcement (ICE), and U.S. Border Patrol, joined the U.S. Attorney in making the announcement at the offices of the Roswell Police Department. These federal agencies routinely work with the U.S. Attorney’s Office to investigate and prosecute a wide-variety of federal criminal activity, including drug trafficking, human trafficking, firearms offenses, illegal immigration, violent crime in Indian Country, child exploitation, complex financial crime, public corruption, and national security offenses.
“Having a full-time prosecutor in Roswell, re-affirms our commitment in federal law enforcement to the Roswell and southeastern New Mexico communities,” said Sonya K. Chavez, U.S. Marshal for the District of New Mexico. “We are in this fight together and we are fully invested in continuing to support all law enforcement efforts and the people in this region of New Mexico.”
“The men and women at the FBI Roswell Resident Agency have investigated crimes ranging from drug-trafficking to bank robbery in southeast New Mexico for years,” said Special Agent in Charge James C. Langenberg of the FBI’s Albuquerque Division. “Having a permanently assigned Assistant U.S. Attorney here will give the FBI and our partners the ability to make an even greater impact in this important region of our state.”
“HSI is pleased to announce the opening of an investigations office in Roswell,” said Special Agent in Charge Jack P. Staton of the HSI’s El Paso Division. “HSI Special Agents assigned to the new office will increase our ongoing commitment and support to our local, state and federal law enforcement partners in eastern New Mexico.”
“Federal, state and local law enforcement have come together to meet the need for a greater presence in Roswell, New Mexico.” said Kyle W. Williamson, Special Agent in Charge of the DEA El Paso Division. “DEA is proud to work with our partners, leveraging our respective resources to pursue those who threaten our communities.”
“The U.S. Attorney’s Office has a long history of service to communities throughout New Mexico,” stated Special Agent in Charge Jeffrey C. Boshek II of the ATF Dallas Division.
“The addition of permanent services in Roswell is a tremendous enhancement to resources and strategies available to ATF, our law enforcement partners, community leaders, and residents of the area. We are thrilled with the announcement.”“IRS-CI is pleased to learn of the U.S. Attorney’s Office new presence in Southeastern New Mexico and we look forward to having an increased ability to investigate cases in a more effective and efficient manner in that part of the state,” said Ismael Nevarez Jr., Special Agent in Charge of the Phoenix Field Office of IRS Criminal Investigation.
“Officers with ICE Enforcement and Removal Operations have been living and working in Roswell for the past couple years, and we stand with all of our partners in our commitment to combat crime and threats to the safety of the citizens of Roswell,” said Corey A. Price, Field Office Director for ERO El Paso. “Our efforts to curb criminal activity are more effective when partnerships with local law enforcement are strong.”
The U.S. Attorney’s Office and its federal partners also work closely with state, local, and tribal law enforcement agencies towards the common goal of public safety. In addition to the Roswell Police Department, which hosted the press conference, the New Mexico State Police, Chaves County Sheriff’s Office, Eddy County Sheriff’s Office, Lea County Sheriff’s Department, Artesia Police Department, Carlsbad Police Department, and Hobbs Police Department joined U.S. Attorney Anderson in making the announcement.
“We at the Roswell Police Department not only welcome assistance from our federal partners, but we wholeheartedly appreciate this step toward making Roswell safer as a community,” said Phil Smith, Chief of Police for the City of Roswell.
“As the Chief of the New Mexico State Police, I understand the challenges associated with operating a law enforcement organization whose jurisdiction is the entire state,” said Tim Johnson, Chief of the New Mexico State Police. “Having an Assistant U.S. Attorney in Roswell will benefit and streamline communication not only for my officers, but also for all federal, state and local agencies in the southern part of New Mexico.”
“I sincerely support and welcome the addition of an AUSA in the Roswell area,” said Corey M. Helton, Lea County Sheriff. “This will greatly enhance our partnerships with all the Federal agencies involved.”
“The Carlsbad Police Department looks forward to working with the newly assigned Assistant U.S. Attorney and all our federal law enforcement partners,” said Brandon Skinner, Chief of Police for the City of Carlsbad. “The presence of the U.S. Attorney's Office in southeastern New Mexico will help us continue to serve those living and working in our community and in our effort to fight crime.”
“Federal prosecution of violent offenders has been, and continues to be, one of the cornerstones in the Artesia Police Department’s successful reduction of violent and drug crime within our community,” said Kirk E. Roberts, Chief of the Artesia Police Department. “The addition of a full-time federal prosecutor to Roswell will greatly enhance the effectiveness of the federal programs our agency and partners participate in.”
The U.S. Attorney’s Office for the District of New Mexico is one of 94 U.S. Attorney’s Offices in the United States. The District of New Mexico consists of 33 counties. The District's main office is located in Albuquerque. There is a staffed branch office in Las Cruces and an unstaffed branch office in Santa Fe.
U.S. Attorney General Announces Launch of Project Guardian -- A Nationwide Strategic Plan to Reduce Gun ViolenceRead the Press Release
DENVER – Yesterday Attorney General William P. Barr, Colorado U.S. Attorney Jason R. Dunn and others announced the launch of Project Guardian, a new initiative designed to reduce gun violence and enforce federal firearms laws across the country. Specifically, Project Guardian focuses on investigating, prosecuting, and preventing gun crimes.
Reducing gun violence and enforcing federal firearms laws have always been among the Department’s highest priorities. In order to develop a new and robust effort to promote and ensure public safety, the Department reviewed and adapted some of the successes of past strategies to curb gun violence. Project Guardian draws on the Department’s earlier achievements, such as the “Triggerlock” program, and it serves as a complementary effort to the success of Project Safe Neighborhoods (PSN). In addition, the initiative emphasizes the importance of using all modern technologies available to law enforcement to promote gun crime intelligence.
“Gun crime remains a pervasive problem in too many communities across America. Today, the Department of Justice is redoubling its commitment to tackling this issue through the launch of Project Guardian,” said Attorney General William P. Barr. “Building on the success of past programs like Triggerlock, Project Guardian will strengthen our efforts to reduce gun violence by allowing the federal government and our state and local partners to better target offenders who use guns in crimes and those who try to buy guns illegally.”
“The U.S. Attorney’s Office has a long history of prioritizing the investigation and prosecution of gun crime in Colorado,” said U.S. Attorney Jason Dunn. “Under Project Guardian we are redoubling our efforts to prosecute those who use guns to commit violent crime. Colorado will be safer as a result of Project Guardian.”
“ATF has a long history of strong partnerships in the law enforcement community,” said Acting Director Regina Lombardo. “Make no mistake, the women and men of ATF remain steadfast to our core mission of getting crime guns off of our streets. ATF and U.S. Attorneys nationwide will leverage these partnerships even further through enhanced community outreach initiatives and coordination with local, state, and tribal law enforcement and prosecutors to cut the pipeline of crime guns from those violent individuals who seek to terrorize our communities. Project Guardian will enhance ATF’s Crime Gun Intelligence, to include identifying, investigating and prosecuting those involved in the straw purchases of firearms, lying on federal firearms transaction forms, and those subject to the mental health prohibition of possessing firearms.”
Project Guardian’s implementation is based on five principles:
- Coordinated Prosecution. Federal prosecutors and law enforcement will coordinate with state, local, and tribal law enforcement and prosecutors to consider potential federal prosecution for new cases involving a defendant who: a) was arrested in possession of a firearm; b) is believed to have used a firearm in committing a crime of violence or drug trafficking crime prosecutable in federal court; or c) is suspected of actively committing violent crime(s) in the community on behalf of a criminal organization.
- Enforcing the Background Check System. United States Attorneys, in consultation with the Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in their district, will create new, or review existing, guidelines for intake and prosecution of federal cases involving false statements (including lie-and-try, lie-and-buy, and straw purchasers) made during the acquisition or attempted acquisition of firearms from Federal Firearms Licensees.
Particular emphasis is placed on individuals convicted of violent felonies or misdemeanor crimes of domestic violence, individuals subject to protective orders, and individuals who are fugitives where the underlying offense is a felony or misdemeanor crime of domestic violence; individuals suspected of involvement in criminal organizations or of providing firearms to criminal organizations; and individuals involved in repeat denials.
- Improved Information Sharing. On a regular basis, and as often as practicable given current technical limitations, ATF will provide to state law enforcement fusion centers a report listing individuals for whom the National Instant Criminal Background Check System (NICS) has issued denials, including the basis for the denial, so that state and local law enforcement can take appropriate steps under their laws.
- Coordinated Response to Mental Health Denials. Each United States Attorney will ensure that whenever there is federal case information regarding individuals who are prohibited from possessing a firearm under the mental health prohibition, such information continues to be entered timely and accurately into the United States Attorneys’ Offices’ case-management system for prompt submission to NICS. ATF should engage in additional outreach to state and local law enforcement on how to use this denial information to better assure public safety.
Additionally, United States Attorneys will consult with relevant district stakeholders to assess feasibility of adopting disruption of early engagement programs to address mental-health-prohibited individuals who attempt to acquire a firearm. United States Attorneys should consider, when appropriate, recommending court-ordered mental health treatment for any sentences issued to individuals prohibited based on mental health.
- Crime Gun Intelligence Coordination. Federal, state, local, and tribal prosecutors and law enforcement will work together to ensure effective use of the ATF’s Crime Gun Intelligence Centers (CGICs), and all related resources, to maximize the use of modern intelligence tools and technology. These tools can greatly enhance the speed and effectiveness in identifying trigger-pullers and finding their guns, but the success depends in large part on state, local, and tribal law enforcement partners sharing ballistic evidence and firearm recovery data with the ATF.
Federal law enforcement represents only about 15% of all law enforcement resources nationwide. Therefore, partnerships with state, local, and tribal law enforcement and the communities they serve are critical to addressing gun crime. The Department recognizes that sharing information with our state, local, and tribal law enforcement partners at every level will enhance public safety, and provide a greater depth of resources available to address gun crime on a national level.
- Coordinated Prosecution. Federal prosecutors and law enforcement will coordinate with state, local, and tribal law enforcement and prosecutors to consider potential federal prosecution for new cases involving a defendant who: a) was arrested in possession of a firearm; b) is believed to have used a firearm in committing a crime of violence or drug trafficking crime prosecutable in federal court; or c) is suspected of actively committing violent crime(s) in the community on behalf of a criminal organization.
U.S. Attorney Announces the Arrest of Five Individuals in Scheme to Steal Thousands of Checks from New York City Human Resources AdministrationRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), Margaret Garnett, Commissioner of the New York City Department of Investigation (“DOI”), and Michael Schmidt, New York State Commissioner of Taxation and Finance (“DTF”), announced the indictment of five individuals in a scheme to steal and deposit more than 4,000 rent subsidy checks worth more than $2.7 million issued by the New York City Human Resources Administration (“HRA”), and the indictment of one person in a related scheme to defraud the New York State Department of Taxation and Finance. SALIFOU CONDE, SEKHOU TOURE, and SYLVAIN GNALI GNAHORE were arrested on September 16, 2019. ABRAHIM DUKURAY and ABOUBAKAR BAKAYOKO were arrested today and are expected to appear before U.S. Magistrate Judge Katharine H. Parker later today. ALSENY KEITA remains at large. The case is assigned to U.S. District Judge Valerie E. Caproni.
U.S. Attorney Geoffrey S. Berman said: “As alleged, these defendants carried out a reverse Robin Hood scheme, stealing funds intended to aid those in need of financial assistance to line their own pockets. The alleged thefts are an affront to the very notion of offering a helping hand; these people had their hands in the till. Now they face serious criminal charges.”
FBI Assistant Director William F. Sweeney Jr. said: “Public assistance programs are established to help less fortunate families overcome their socio-economic challenges. When the system is corrupted by any means, to include fraud against the agencies that provide the financial assistance, everyone loses out. Not only is there less money available for those who need it most, but the taxpayers who fund these programs have been taken advantage of as well. As alleged, those arrested for their role in this scheme took money that didn’t belong to them. They’ve since learned the consequences of their alleged actions.”
DOI Commissioner Margaret Garnett said: “The City’s Human Resources Administration relied on Salifou Conde to provide a service, delivering to HRA unclaimed rental supplement checks to ensure funds could be appropriately redistributed to New Yorkers. Instead, the defendant allegedly used his access to steal thousands of checks, and with his co-conspirators, pocket millions in taxpayer dollars, according to the charges. DOI is proud to work with its partners, including the U.S. Attorney for the Southern District, to uncover schemes to defraud the government and steal public funds.”
Commissioner of Taxation and Finance Michael Schmidt said: “Individuals who attempt to defraud New York State and illegally pocket money they’re not entitled to must be held accountable. The fraudulent scheme alleged in this case unfairly places an additional tax burden on honest New Yorkers and will not be tolerated. We’ll continue to work with all levels of law enforcement to ensure a level playing field for all taxpayers.”
As alleged in the Indictment, which was unsealed today, and the previously filed criminal Complaints:[1]
HRA is an agency of the City of New York responsible for administering certain of the City’s public assistance programs. Among other things, HRA provides rental assistance to individuals and families with social service and economic needs. For individuals who qualify, HRA provides rental assistance by sending monthly rent supplement checks to landlords to cover a portion of the cost of documented expenses such as rent or storage costs.
HRA rent supplement checks that are undeliverable are sent back to the same P.O. Box in New York, New York. From there, a courier takes them from the P.O. Box back to HRA. CONDE took these undeliverable checks out of the mail.
Since in or about 2015, more than 4,000 HRA rent supplement checks worth more than $2.7 million were fraudulently deposited into more than 50 bank accounts. CONDE, DUKURAY, KEITA, TOURE, and BAKAYOKO were part of a scheme to open these accounts using fictitious identities, obtain HRA supplement checks that could not reach their destination, deposit the checks into bank accounts, and then quickly withdraw cash.
GNAHORE was a member of a related scheme to obtain tax refund checks issued by the New York State Department of Taxation and Finance, manipulate the checks, deposit them in fraudulently opened bank accounts, and then quickly withdraw funds from those accounts.
* * *
CONDE, 29, DUKURAY, 40, KEITA, 37, TOURE, 35, BAKAYOKO, 32, and GNAHORE, 43, are each charged with one count of wire fraud, which carries a maximum punishment of 20 years in prison; one count of bank fraud, which carries a maximum punishment of 30 years in prison; and one count of conspiracy to commit wire fraud and bank fraud, which carries a maximum punishment of 30 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Berman praised the outstanding work of the FBI, DOI, and DTF.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Kedar S. Bhatia is in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the texts of the Complaints and the Indictment, and the descriptions of the Complaints and the Indictment set forth herein, are only allegations, and every fact described should be treated as an allegation.
Two Massachusetts Men Arrested and Charged with Nationwide Scheme to Steal Social Media Accounts and CryptocurrencyRead the Press Release
BOSTON – Two Massachusetts men were arrested today and charged with conducting an extensive scheme to take over victims’ social media accounts and steal their cryptocurrency using techniques such as “SIM swapping,” computer hacking and other methods.
Eric Meiggs, 21, of Brockton, and Declan Harrington, 20, of Rockport, were indicted on one count of conspiracy, eight counts of wire fraud, one count of computer fraud and abuse and one count of aggravated identity theft. Meiggs and Harrington were arrested today and released on conditions following an initial appearance in federal court in Boston.
Meiggs and Harrington allegedly targeted executives of cryptocurrency companies, and others, who likely had significant amounts of cryptocurrency and those who had high value or “OG” (“Original Gangster”) social media account names. It is alleged that Meiggs and Harrington conspired to hack into, and take control over, these victims’ online accounts so they could obtain things of value, such as cryptocurrency. They used an illegal practice known as “SIM-swapping” and other techniques to access, take control of, and in some cases steal cryptocurrency from, the accounts.
As alleged in the indictment, with “SIM swapping,” cybercriminals convince a victim’s cell phone carrier to reassign the victim’s cell phone number from the SIM card inside the victim’s cell phone to the SIM card inside a cell phone controlled by the cybercriminals. Cybercriminals then pose as the victim with an online account provider and request that the provider send account password-reset links or an authentication code to the SIM-swapped device now controlled by the cybercriminals. The cybercriminals can then reset the victim’s account log-in credentials and then access the victim’s account without authorization, or “hack into” the account.
Meiggs and Harrington allegedly targeted at least 10 identified victims around the country. Members of the conspiracy allegedly stole, or attempted to steal, over $550,000 in cryptocurrency from the victims. Meiggs allegedly took control over two victims’ “OG” accounts with social media companies.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; United States Attorney Andrew E. Lelling of the District of Massachusetts; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement. Assistant U.S. Attorney Amy Harman Burkart, Chief of Lelling’s Cybercrime Unit and Senior Trial Attorney Mona Sedky of the Justice Department’s Computer Crime and Intellectual Property Section and are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Massachusetts Men Arrested and Charged with Nationwide Scheme to Steal Social Media Accounts and CryptocurrencyRead the Press Release
Two Massachusetts men were arrested today and charged in U.S. District Court in Boston with conducting an extensive scheme to take over victims’ social media accounts and steal their cryptocurrency using techniques such as “SIM swapping,” computer hacking and other methods.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Andrew E. Lelling for the District of Massachusetts, Special Agent in Charge Joseph R. Bonavolonta of the FBI’s Boston Field Office and Special Agent in Charge Kristina O’Connell of IRS Criminal Investigations (IRS-CI) made the announcement.
Eric Meiggs, 21, of Brockton, Massachusetts, and Declan Harrington, 20, of Rockport, Massachusetts, were charged in an 11-count indictment, charging them with one count of conspiracy, eight counts of wire fraud, one count of computer fraud and abuse and one count of aggravated identity theft.
According to the indictment, Meiggs and Harrington allegedly targeted executives of cryptocurrency companies and others who likely had significant amounts of cryptocurrency and those who had high value or “OG” (slang for “Original Gangster”) social media account names. Meiggs and Harrington allegedly conspired to hack into, and take control over, these victims’ online accounts so they could obtain things of value, such as cryptocurrency. They used an illegal practice known as “SIM-swapping” and other techniques to access, take control of, and in some cases steal cryptocurrency from, the accounts.
As alleged in the indictment, with “SIM swapping” cybercriminals convince a victim’s cell phone carrier to reassign the victim’s cell phone number from the SIM card (or Subscriber Identity Module card) inside the victim’s cell phone to the SIM card inside a cell phone controlled by the cybercriminals. Cybercriminals then pose as the victim with an online account provider and request that the provider send account password-reset links or an authentication code to the SIM-swapped device now controlled by the cybercriminals. The cybercriminals can then reset the victim’s account log-in credentials and can then use the log-in credentials to access the victim’s account without authorization, or “hack into” the account.
According to the indictment, Meiggs and Harrington targeted at least 10 identified victims around the country. Members of the conspiracy allegedly stole, or attempted to steal, over $550,000 in cryptocurrency from these victims alone. Meiggs allegedly took control over two victims’ “OG” accounts with social media companies.
The FBI and IRS-CI are investigating the case. Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Amy Harman Burkart, Chief of the Cybercrime Unit, are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Former Executives of the China Subsidiary of a Multi-Level Marketing Company Charged for Scheme to Pay Foreign Bribes and Circumvent Internal Accounting ControlsRead the Press Release
The former head of the China subsidiary of a publicly traded international multi-level marketing company (Company-1) and the former head of the external affairs department of the China subsidiary of the same company were charged today for their roles in a scheme to violate the anti-bribery and the internal control provisions of the Foreign Corrupt Practices Act (FCPA).
Yanliang Li, aka “Jerry Li,” 51, a citizen of China, the former head and managing director of the China subsidiary of Company-1, was charged with one count of conspiracy to violate the FCPA, one count of perjury and one count of destruction of records in federal investigations. Hongwei Yang, aka “Mary Yang,” 51, also a citizen of China, the former head of the external affairs department of the China subsidiary of Company-1, was charged with one count of conspiracy to violate the FCPA.
“Li and Yang allegedly led a brazen, decade-long corruption scheme, bribing foreign Chinese officials and then covering it up by providing false sworn testimony to the SEC and wiping clean computer files,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The Department of Justice will continue to hold individuals accountable who undermine the integrity of our financial markets by participating in these corrupt bribery schemes.”
“Li and Yang, both former top executives of a global multi-level marketing company headquartered in Los Angeles, allegedly approved the extensive and systematic payments of bribes to Chinese government officials over a 10-year period to promote and expand the company’s business in China and to avoid regulatory scrutiny in China,” said U.S. Attorney Geoffrey S. Berman of the Southern District of New York. “Moreover, in an effort to obstruct the government’s investigation into this widespread corruption scheme, Li lied under oath about the bribe payments when interviewed by the SEC and also destroyed evidence. This case signifies this office’s commitment to ensuring that companies operating in the U.S. do not gain an unfair advantage through corruption and illegal bribes of foreign officials.”
According to the allegations in the indictment, from approximately 2007 through February 2017, Li, Yang and others agreed to pay, and paid bribes to Chinese officials for the purpose of obtaining and retaining licenses for Company-1 to operate as a direct-selling enterprise in provinces throughout China. The conspirators also are alleged to have paid bribes to corruptly influence Chinese governmental investigations into Company-1’s compliance with Chinese laws and to corruptly influence Chinese state-owned and state-controlled media for the purpose of suppressing negative media reports about the company.
In order to carry out the scheme, Li, Yang and others allegedly obtained reimbursement for the bribes they paid to Chinese officials by submitting false and fraudulent expense claims designed to conceal the true nature of the expenditures at issue, thereby circumventing Company-1’s internal accounting controls. In addition, Li made false statements under oath in sworn investigative testimony before the U.S. Securities and Exchange Commission in New York, New York. Additionally, the indictment alleges that during the course of the federal SEC and DOJ investigations Li, with knowledge of these investigations, installed a “Wiping Application” onto his Company-1 issued laptop, which enabled him to erase 200 files from the laptop in a manner that would render the deleted files unrecoverable.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI’s New York Field Office investigated this case. Trial Attorney Jason Manning of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Joshua A. Naftalis and Scott A. Hartman of the Southern District of New York are prosecuting the case.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
To learn more about the government’s FCPA enforcement efforts, go to www.justice.gov/criminal/fraud/fcpa.
Two Former Executives of China Subsidiary of International Multi-Level Marketing Company Charged in Manhattan Federal Court for Scheme to Pay Bribes and Circumvent Internal Accounting ControlsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York (“SDNY”), Assistant Attorney General Brian A. Benczkowski of the Criminal Division of the United States Department of Justice (“DOJ”), and William F. Sweeney Jr., Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of charges against YANLIANG LI, a/k/a “Jerry Li,” the former head and managing director of the China subsidiary (the “China Subsidiary”) of a publicly traded international multi-level marketing company (“Company-1”), and HONGWEI YANG, a/k/a “Mary Yang,” the former head of the external affairs department of the China Subsidiary, in connection with a scheme, from in or about 2007 through in or about February 2017, to pay bribes and circumvent Company-1’s internal accounting controls in violation of the Foreign Corrupt Practices Act (“FCPA”). LI and YANG are each charged with one count of conspiring to violate the FCPA. LI is also charged with one count of perjury and one count of destruction of records in federal investigations. LI and YANG remain at large. The case is assigned to U.S. District Judge Vernon S. Broderick.
U.S. Attorney Geoffrey S. Berman said: “Li and Yang, both former top executives of a global multi-level marketing company headquartered in Los Angeles, allegedly approved the extensive and systematic payments of bribes to Chinese government officials over a ten-year period to promote and expand the company’s business in China and to avoid regulatory scrutiny in China. Moreover, in an effort to obstruct the Government’s investigation into this widespread corruption scheme, Li lied under oath about the bribe payments when interviewed by the SEC and also destroyed evidence. This case signifies this Office’s commitment to ensuring that companies operating in the U.S. do not gain an unfair advantage through corruption and illegal bribes of foreign officials.”
Assistant Attorney General Benczkowski said: “Today’s charges further demonstrate that the Department of Justice will hold accountable those who undermine the integrity of our financial markets by paying bribes and circumventing the internal controls of publicly traded companies. Furthermore, these charges send a clear message that committing perjury and destroying records to thwart SEC and grand jury investigations will not be tolerated.”
According to the allegations in the Indictment unsealed today in Manhattan federal court:[1]
Relevant Persons and Entities
Company-1 was a publicly traded multi-level marketing company that sold health care, personal care, and other products in more than 90 countries around the world, including China. Company-1 was headquartered in Los Angeles, California, and its shares traded on the New York Stock Exchange. Company-1 conducted business operations in China through a group of wholly owned subsidiaries based in China (collectively, the “China Subsidiary”).
Company-1 operated as a multi-level marketing business, including in the United States, but multi-level marketing was prohibited under Chinese law. Chinese law did, however, permit a company to engage in “direct selling” – selling a company’s products through independent sales representatives – subject to certain requirements. In particular, as relevant here, before engaging in direct selling in any Chinese province, Chinese law required a company to obtain a direct-selling license from national authorities and local authorities in that province. The China Subsidiary received its first direct-selling license in or about March 2007, and subsequently received additional direct-selling licenses for other Chinese provinces. By in or about 2016, the China Subsidiary was responsible for approximately 20 percent of Company-1’s worldwide net sales, which exceeded $4 billion.
The China Subsidiary’s external affairs department (“EA”) was responsible for interfacing with Chinese governmental agencies and Chinese media entities, including Chinese government-owned media entities, on behalf of Company-1 in China. EA employees frequently entertained Chinese government officials at meals and other events and provided gifts to Chinese government officials. Between in or about 2007 and in or about 2016, the China Subsidiary reimbursed EA employees more than $25 million for entertaining and gift-giving to Chinese Government officials.
From in or about 2004 through in or about December 2007, LI was the director of sales and/or sales vice president at the China Subsidiary. From in or about December 2007 through in or about May 2017, LI was the managing director of the China Subsidiary, where LI was primarily responsible for many of the China Subsidiary’s day-to-day operations, including sales. LI was Company-1’s most senior executive in China. From in or about February 2006 through in or about May 2017, YANG was the head of EA. LI was YANG’s direct supervisor.
Various Chinese provincial and central government officials at the Ministry of Commerce (collectively, “MOFCOM”) were responsible, at least in part, for issuing licenses required for companies, such as the China Subsidiary, to conduct direct selling in China. Various Chinese provincial and central government officials of the State Administration for Industry and Commerce (collectively, “AIC”) were responsible, at least in part, for enforcing compliance with Chinese laws applicable to direct-selling companies, such as the China Subsidiary. AIC had the authority to conduct investigations into direct-selling companies and to impose fines and other penalties against direct-selling companies, such as the China Subsidiary, that it deemed not to be in compliance with applicable laws.
The Scheme to Pay Bribes and Circumvent Internal Accounting Controls
From at least in or about 2007 through in or about February 2017, LI, YANG, and others participated in a scheme to pay bribes and to circumvent Company-1’s internal accounting controls. The scheme involved, among other things, bribing Chinese government officials for the benefit of Company-1, obtaining reimbursements from Company-1 relating to the illicit bribes through fraudulent reimbursement requests, and circumventing Company-1’s internal accounting controls that were intended to prevent bribery and fraud.
More specifically, LI, YANG, and others paid and agreed to pay bribes to Chinese government officials, including MOFCOM officials, AIC officials, and officials of a media company owned by the Chinese government, for the purpose of obtaining, retaining, and increasing Company-1’s business in China by, among other things, (1) obtaining and retaining the China Subsidiary’s licenses to operate as a direct-selling enterprise in provinces throughout China, (2) corruptly influencing Chinese governmental investigations into the China Subsidiary’s compliance with Chinese laws applicable to direct-selling enterprises, and (3) corruptly influencing Chinese state-owned and state-controlled media for the purpose of suppressing negative media reports about the China Subsidiary.
In order to carry out the scheme, LI, YANG, and others obtained reimbursement for the bribes they paid to Chinese officials from the China Subsidiary through fraudulent expense claims designed to conceal the true nature of the expenditures at issue. In doing so, LI, YANG, and others circumvented Company-1’s internal accounting controls related to EA’s expenditure on gifts and entertainment for Chinese government officials. These internal accounting controls, among other things, prohibited the payment of bribes, established limits on the value, frequency, and nature of expenditures on government officials, and required EA employees to provide receipts and other specific information, including the names of the government officials involved, in order to obtain approval and reimbursement for their expenditures. LI, YANG, and others agreed to, and did, submit and approve fraudulent reimbursement requests, obtain reimbursement for those fraudulent requests, and conceal their fraud from Company-1’s internal audit department.
Perjury
In or about 2013, the U.S. Securities and Exchange Commission (the “SEC”) opened a formal investigation into Company-1 for violations of the federal securities laws. On or about October 20 and 21, 2016, LI testified under oath before the SEC in New York, New York, in connection with the SEC’s investigation of Company-1.
During his sworn testimony before the SEC, LI was asked whether he had offered any payment to any government officials at MOFCOM or AIC, and whether he was aware of any such payments offered by anyone at the China Subsidiary. In response, LI, in sum and substance, falsely denied having knowledge of the China Subsidiary’s employees paying bribes or circumventing Company-1’s internal accounting controls.
During LI’s sworn testimony before the SEC, SEC staff also played for LI audio recordings of LI, including (a) a recording of a conversation from in or about 2006 in which LI and YANG discussed LI’s approval of giving “red envelopes” – i.e., cash gifts – to AIC officials, and (b) a recording of a conversation from in or about March 2007 in which LI and YANG agreed to making bribe payments of 35,000 yuan to various Chinese government officials, including 10,000 yuan to an official whom LI identified as an AIC deputy director. In response to questions posed to him by SEC staff regarding these recordings, LI, in sum and substance, again falsely denied having knowledge of the China Subsidiary’s employees paying bribes or circumventing Company-1’s internal accounting controls.
The SEC also asked LI whether he had a personal email account, and whether he used any email account other than his Company-1 email account. LI falsely stated, “No,” in response to both questions. In truth and in fact, LI had a personal email account (the “LI Gmail Account”), LI had used the LI Gmail Account throughout 2016, and LI had sent multiple emails from the LI Gmail Account approximately 16 days prior to his testimony before the SEC. LI had used the LI Gmail Account for, among other things, correspondence related to his work at the China Subsidiary.
Destruction of Records in Federal Investigations
In addition to the SEC’s investigation into Company-1, in or about 2013, a federal grand jury investigation in the Southern District of New York relating to Company-1 was also initiated.
LI received multiple notices from Company-1 attorneys informing him of his obligation to retain all Company-1 documents dating back to at least January 1, 2007, in connection with, among other things, pending U.S. governmental investigations and potential litigation. Those directives were initially sent beginning in 2012 and remained in place up to and including at least through February 2017. On or about January 20, 2017, Company-1 stated, in a public filing with the SEC, that, in sum and substance, the SEC had requested documents and other information related to Company-1’s anti-corruption compliance in China; Company-1 was undertaking its own review of that subject; and Company-1 had discussed these matters with the United States Department of Justice (the “DOJ”). LI received emails in or about late January 2017 that informed him of the pending SEC and DOJ investigations.
On or about February 11, 2017, LI was informed he would be interviewed by Company-1 attorneys in connection with an internal investigation into potential misconduct at the China Subsidiary. A few days later, on or about February 17, 2017, LI installed an application (the “Wiping Application”) onto the laptop that Company-1 had issued to him (the “LI Laptop”). The Wiping Application enabled a user to erase files in a manner that would render the deleted files unrecoverable. That same day, LI utilized the Wiping Application to delete approximately 200 files from the LI Laptop.
* * *
LI, 51, a citizen of China, and YANG, 51, a citizen of China, were each charged with one count of conspiracy to violate the FCPA, which carries a maximum sentence of five years in prison. LI was also charged with one count of perjury, which carries a maximum sentence of five years in prison, and one count of destruction of records in federal investigations, which carries a maximum sentence of 20 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentences would be determined by a judge.
Mr. Berman and Mr. Benczowski praised the outstanding work of the FBI and also thanked the SEC for its assistance and cooperation in this investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force and the FCPA Unit of the Fraud Section of DOJ’s Criminal Division. Assistant United States Attorneys Joshua A. Naftalis and Scott A. Hartman, and Trial Attorney Jason Manning of the FCPA Unit, are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the texts of the Indictment and the descriptions of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Two Eagletown Men Plead Guilty to Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Eagletown, Oklahoma, residents Ricardo Martinez, age 46, and Carlos Medina–Tamayo, age 39, entered guilty pleas to Distribution Of Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A); and to Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A) and Title 18, United States Code, Section 2 respectively. Both aforementioned charges are punishable by not less than 10 years and not more than life imprisonment, a fine up to $10.000,000.00, or both.
The Indictment alleged that on or about March 22, 2019, within the Eastern District of Oklahoma, the defendant, Ricardo Martinez, did knowingly and intentionally distribute 50 grams or more of methamphetamine (actual), a Schedule II controlled substance.
The Indictment further alleged that on or about May 17, 2019, within the Eastern District of Oklahoma, the defendant, Carlos Medina-Tamayo, did knowingly and intentionally possess with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charges arose from an investigation by the Drug Enforcement Administration.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Rob Wallace represented the United States.
Twelve Nuestra Familia Gang Members and Associates Charged with Federal Drug Trafficking Charges in Superseding IndictmentRead the Press Release
FRESNO, Calif. — A federal grand jury returned a 13-count superseding indictment today against 12 Nuestra Familia gang members and associates, U.S. Attorney McGregor W. Scott announced.
The individuals charged today were originally charged in June, along with about 40 others, as part of a multi-agency investigation into the prison-based gang’s criminal activities. The superseding indictment adds three additional federal drug charges, including a charge for conspiracy to distribute over 500 grams of cocaine. The defendants are:
Salvador Castro Jr., 49, of Pleasant Valley State Prison,
Raymond Jesse Marcos Lopez, 32, of Pleasant Valley State Prison,
Jesse Juarez, 29, of Visalia,
Daniel Juarez, 27, of Visalia,
Michael Rocha, 37, of Visalia,
Angel Montes, 23, of Visalia,
Rafael Lopez, 28, of Visalia,
Manuel Barrera, 24, of Kettleman City,
Manuel Garcia, 33, of Armona,
Joann Bernal, 33, of Armona,
Ramon Amador, 30, of Riverdale, and
Raul Lopez Jr., 48, of Visalia
According to court documents, high-ranking Nuestra Familia members Salvador Castro, Jr. and Raymond Lopez used contraband cellphones from inside Fresno County’s Pleasant Valley State Prison to arrange the transport of illicit narcotics from drug sources in California and Mexico to a stash house in Kings County. From that stash house, gang members outside of the prison coordinated the preparation and delivery of the drugs to distributors throughout Kings and Tulare Counties.
The case was the result of an investigation by the Kings County Gang Task Force; the Special Operations Unit – a team of agents from the California Department of Justice and the California Highway Patrol; California Department of Corrections and Rehabilitation; the FBI; and the Kings County District Attorney’s Office. The Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; and Homeland Security Investigations all assisted with the arrests. Assistant U.S. Attorneys Kimberly Sanchez, Laurel Montoya, and Justin Gilio are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The OCDETF Program was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
If convicted, the defendants face a range of maximum sentences, including up to life in prison. Several of the defendants also face a range of mandatory-minimum sentences ranging from between five to 10 years in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Three South Florida Residents Plead Guilty for Their Roles in $21 Million Sober Homes Fraud SchemeRead the Press Release
MIAMI – Three former co-owners and clinical directors of a group of purported substance abuse treatment centers and sober homes pleaded guilty yesterday for their roles in a conspiracy to commit health care fraud and wire fraud that resulted in an actual loss of more than $3.8 million, and through which the conspirators sought to obtain more than $21 million.
U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, and Special Agent in Charge Omar Pérez Aybar of the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) made the announcement.
Ali Ahmed, 38, Hector Efrain Alvarez, 49, and Mauren Morel, 45, all of Broward and Palm Beach Counties, pleaded guilty before U.S. District Judge Federico A. Moreno of the Southern District of Florida, to one count of conspiracy to commit health care fraud and wire fraud. The defendants are scheduled to be sentenced on Jan. 21, 2020 at 10:30 a.m. (Case No. 19cr60200)
As alleged in the indictment, in recent years, South Florida has become the locus for drug and alcohol addicts seeking assistance in an effort to become and remain sober. Substance abuse treatment centers that assist such persons undergoing detoxification from an intoxicating or addictive substance are regulated under state and federal law. These substance abuse treatment centers, or detox centers, offer a continuum of care including, from most intensive to least intensive, as follows: inpatient detox, Partial Hospitalization Programs (PHP’s), Intensive Outpatient Programs (IOP’s), and Outpatient Programs (OP’s). Persons undergoing treatment on an out-patient basis, whether in PHP, IOP, or OP, typically elect to live in a “recovery residence,” also known as a “sober home” or “halfway house,” with other persons who are also in treatment and committed to a drug and alcohol-free lifestyle.
Jacob’s Well, Inc. (Jacob’s Well) was a Florida corporation, located at 7950 SW 30th Street, Suite 202, Davie, Florida. Jacob’s Well was a substance abuse treatment center licensed with the Florida Department of Children and Families that purportedly provided private insurance beneficiaries with substance abuse treatments and services.
Medi MD, LLC. (Medi MD) was a Florida corporation, located at 7950 SW 30th Street, Suite 200, Davie, Florida. Medi MD was a substance abuse treatment center licensed with the Florida Department of Children and Families that purportedly provided private insurance beneficiaries with substance abuse treatments and services.
Arnica Health was a Florida corporation, located at 7950 SW 30th Street, Suite 202, Davie, Florida. Arnica Health was a purported medical treatment center co-located with the purported substance abuse treatment centers. Together with Medi MD and Jacob’s Well, Arnica Health operated as a part of Serenity Living and was affiliated with sober homes known as Serenity Ranch.
Ali Ahmed was Treasurer of Jacob’s Well, Director of Operations for Medi MD, and co-owner of Jacob’s Well, Medi MD, and Arnica Health.
Sebastian Ahmed was the CEO and co-owner of Jacob’s Well, Medi MD, and Arnica Health.
Hector Efrain Alvarez was Clinical Director of Medi MD.
Mauren Morel was Clinical Director and co-owner of Jacob’s Well.
According to court documents, from June 2016 through April 2019, Ali Ahmed, Sebastian Ahmed, and Mauren Morel, submitted and caused others to submit, via interstate wire communications, approximately $1,693,276 in claims which falsely and fraudulently represented that various health care benefits, primarily substance abuse PHP, IOP, and OP services, were medically necessary, prescribed by a doctor, and provided by Jacob’s Well to insurance beneficiaries of Aetna, BCBS, Cigna and UHC. As a result of such false and fraudulent claims, Aetna, BCBS, Cigna, and UHC made payments to the corporate bank accounts of Jacob’s Well in the approximate amount of $320,301.
Furthermore, during the same approximate time period, Ali Ahmed, Sebastian Ahmed, and Hector Efrain Alvarez submitted and caused others to submit, via interstate wire communications, approximately $21,899,439 in claims which falsely and fraudulently represented that various health care benefits, primarily substance abuse PHP, IOP, and OP services, were medically necessary, prescribed by a doctor, and provided by Medi MD to insurance beneficiaries of Aetna, BCBS, Cigna, Humana and UHC. As a result of such false and fraudulent claims, Aetna, BCBS, Cigna, Humana and UHC made payments to the corporate bank accounts of Medi MD in the approximate amount of $3,884,035.
Ali Ahmed, Sebastian Ahmed, Hector Efrain Alvarez, and Mauren Morel used the proceeds of the health care fraud for their personal use and benefit, the use and benefit of others and to further the fraud scheme.
Co-defendant Sebastian Ahmed, the former CEO of Jacob’s Well, Medi MD, and Arnica, who was charged in the same indictment, has pleaded not guilty and is set for trial in this matter to begin on Nov. 25, 2019, before Judge Moreno. He is presumed innocent of the charges.
The FBI and HHS-OIG investigated the case, with assistance from the Davie Police Department, Broward County Sheriff's Office and U.S. Drug Enforcement Administration (DEA). Assistant U.S. Attorneys Christopher J. Clark and Lisa H. Miller are prosecuting the case, and Assistant U.S. Attorneys Nicole Grosnoff and Peter A. Laserna are handling the asset forfeiture issues related to this matter.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Texas Man Heads to Prison for Leading Human Smuggling OrganizationRead the Press Release
LAREDO, Texas – A 36-year-old Dallas man has been ordered to federal prison following his conviction conspiracy transport undocumented aliens, announced U.S. Attorney Ryan K. Patrick.
Manuel Joe Reyes pleaded guilty May 10, 2018.
Today, U.S. District Judge Marina Garcia Marmolejo handed Reyes a 96-month sentence to be immediately followed by three years of supervised release. He was further ordered to pay a $5,000 fine.
At the hearing, the court heard testimony regarding how Reyes would recruit drivers and make between $20,000 and $30,000 a week smuggling undocumented aliens. Judge Marmolejo noted Reyes used his intelligence to convince others to commit crime. She admonished him that some of the drivers he hired had been incarcerated themselves.
On May 9, 2017, Darian Wade Humphrey drove up to the United States Border Patrol Checkpoint located on Interstate Highway 35 north of Laredo in a tractor-trailer. At that time, a K-9 alerted to the vehicle. Upon inspection, authorities found 32 individuals locked inside the trailer, all of whom were later determined to be undocumented aliens from Mexico. Four of them were minors between the ages of 15 and 17.
Humphrey admitted Reyes had hired him to transport undocumented aliens from Laredo to San Antonio. Humphrey claimed to have done so on four prior occasions and that he was paid $3,000 per load.
Law enforcement arrested Reyes Dec. 6, 2017, at his home in Dallas. He admitted he had been organizing human smuggling events between Mexico and the United States by hiring drivers and coordinating deliveries. Reyes estimated that between two and three loads of undocumented aliens were smuggled weekly, with each load averaging 20 people. He said he received $10,000 per load and his drivers were paid $3,000.
Humphrey also pleaded guilty. U.S. District Judge Hilda Tagle sentenced him to 37 months with three years of supervised release on Feb. 7, 2018.
Previously released on bond, Reyes was taken into custody following the sentencing today where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Border Patrol and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Francisco J. Rodriguez is prosecuting the case.
Taunton Man Indicted for Federal Drug and Firearm OffensesRead the Press Release
BOSTON – A Taunton man was indicted yesterday in federal court in Boston on firearm and drug charges.
Samael Mathieu, 23, was indicted on one count of possession of a firearm and ammunition while under indictment and one count of possession with intent to distribute a controlled substance.
According to court documents, on Oct. 1, 2019, Mathieu was arrested in Taunton in possession of approximately 30 grams of fentanyl, two 9mm semi-automatic handguns and 37 rounds of 9mm ammunition. Prior to this arrest, Mathieu was under indictment in Plymouth Superior Court for possession of a firearm and possession of a controlled substance.
The charge of possessing a firearm and ammunition while under indictment provides a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000. The charge of possession with intent to distribute a controlled substance provides a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Office; Bristol County District Attorney Thomas Quinn; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Taunton Police Chief Edward Walsh; and Fall River Police Chief Albert Dupere made the announcement. Assistant U.S. Attorney Nicholas Soivilien of Lelling’s Organized Crime and Gang Unit is prosecuting the case.
This prosecution 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 details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Swansea Man Sentenced to Thirty Years in Federal Prison on Federal Drug ChargesRead the Press Release
Charleston, South Carolina ---- United States Attorney Sherri Lydon announced today that James C. Edgerton, IV, age 35, was sentenced in federal court in Columbia after pleading guilty to conspiring to possess with intent to distribute and to distribute heroin and methamphetamine. Senior United States District Judge Joseph F. Anderson, Jr., of Columbia, sentenced Edgerton to 30 years in federal prison, to be followed by 5 years of court-ordered supervision. There is no parole in the federal system.
Evidence presented in the case established that Edgerton organized the transportation, packaging, and distribution of significant quantities of heroin and methamphetamine. The drugs were purchased in the Atlanta area and then distributed throughout the Columbia area by Edgerton and his associates. During the course of the investigation, Edgerton admitted to purchasing 15 kilograms of ice from an individual in Atlanta. The evidence also showed that Edgerton was responsible for having multiple kilograms of heroin brought from Atlanta to the Columbia area for distribution.
The case was investigated by agents of the Drug Enforcement Administration, Richland County Sheriff’s Department, City of Columbia Police Department, Lexington County Sheriff’s Department, and 5th Circuit Solicitor’s Office. Assistant United States Attorney Nick Bianchi of the Charleston office and former Assistant United States Attorney Bill Day of the Columbia office prosecuted the case.
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Suspected Neo-Nazi Charged with Gun CrimeRead the Press Release
A suspected neo-Nazi was charged with a gun crime following an investigation by the FBI, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Aiden Bruce-Umbaugh, 23, was charged with possession of a firearm by an unlawful user of a controlled substance after he was arrested in Post, Texas, dressed in tactical gear and in possession of multiple assault rifles.
A federal grand jury indicted Mr. Bruce-Umbaugh Wednesday.
According to a criminal complaint filed a week prior, local law enforcement executed a traffic stop for a blue Ford Focus on Nov. 4. The vehicle was driven by Kaleb Cole; Mr. Bruce-Umbaugh was seated in the front passenger seat.
Inside the vehicle, law enforcement allegedly discovered an AR-15 rifle, two AK-47 rifles, a Sig Sauer 9mm pistol, at least 1,500 rounds of ammunition, a small canister of marijuana, and approximately two grams of THC oil.
Mr. Bruce-Umbaugh – who “avoided eye contact and limited conversation” with law enforcement and denied having anything illegal inside the vehicle during the traffic stop– later admitted that the firearms, marijuana, and THC belonged to him, telling investigators he smoked marijuana on a daily basis, according to the complaint.
“Federal prosecutors are committed to enforcing our nation’s gun laws to keep communities safe,” said U.S. Attorney Nealy Cox. “As a drug user, this defendant should never have been allowed to possess firearms.”
“The large amount of weapons and ammunition seized from the defendant is alarming and we understand there is a cause for concern,” said FBI Special Agent in Charge Matthew J. DeSarno of the Dallas Field Office. “The FBI works with our law enforcement partners daily to protect our communities from harm. We want to reassure the public that swift action was taken to remove weapons from a dangerous individual.”
In a detention hearing Wednesday, prosecutors argued the government had reason to believe Mr. Bruce-Umbaugh is a member of AtomWaffen Division, a neo-Nazi hate group.
In jailhouse phone calls, Mr. Bruce-Umbaugh allegedly referenced his affiliation with “the group” and discussed a photo taken of him and another AtomWaffen Division member at the Auschwitz concentration camp, prosecutors said at the detention hearing.
Propaganda videos admitted into evidence – which spew hateful rhetoric against Jews – depict members of the AtomWaffen Division at self-described “hate camps” practicing hand-to-hand combat and shooting firearms.
An indictment is a formal accusation of criminal conduct, not evidence. Like all defendants, Mr. Bruce-Umbaugh is innocent unless and until proven guilty in a court of law.
If convicted, he faces a sentence of up to 10 years in federal prison.
The Federal Bureau of Investigation’s Lubbock Resident Agency and the Garza County Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Russell Lorfing is prosecuting the case.
Six Charged in Multi-Million Dollar Elder Fraud SchemeRead the Press Release
Six Las Vegas, Nevada area residents were charged with running a fraudulent mass-mailing scheme that tricked hundreds of thousands of consumers into paying more than $10 million in fees for falsely promised cash prizes, the Department of Justice has announced.
The unsealed indictment charges Mario Castro, 51, Jose Salud Castro, 70, Salvador Castro, 53, Miguel Castro, 55, Jose Luis Mendez, 45, and Andrea Burrow, 49, with mail fraud and conspiracy to commit mail fraud. The indictment, secured by the Department’s Consumer Protection Branch and the U.S. Attorney’s Office for the District of Nevada, also charges Salvador Castro with making a false statement to investigators. U.S. Postal Inspectors arrested five of the defendants last night. The sixth, Jose Salud Castro, turned himself into authorities this morning.
According to the indictment, the defendants’ prize-notification scheme led victims, many of whom were elderly and vulnerable, to believe that they could pay a small $20 or $30 fee to claim a large cash prize. The indictment alleged that none of the victims who submitted fees ever received a large cash prize.
“The Department will pursue and prosecute those who defraud elderly or vulnerable consumers,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “We have alleged that these defendants perpetrated a cruel hoax on their victims and relentlessly targeted many with repeated fraudulent mailings.”
The indictment asserts that the defendants operated the scheme from 2010 to February 2018, when postal inspectors executed multiple search warrants and the Department of Justice obtained a court order shutting down the fraudulent mail operation. Mario Castro, Jose Salud Castro, Salvador Castro, Miguel Castro, and Jose Luis Mendez allegedly worked at the printing and mailing businesses that sent the fraudulent mail and shared the profits from the fraudulent prize notices. The remaining defendant, Andrea Burrow, opened victim return mail, sorted cash and other payments, and entered data from the victims’ responses into a database that the scheme used to target past victims with more fraudulent mail, according to the indictment.
The defendants are alleged to have ignored multiple cease and desist orders from the United States Postal Service that prohibited their mailing companies from sending fraudulent mail. The defendants responded by changing the names of their companies and using straw owners to hide their continuing fraud.
Three of the defendants’ co-conspirators – Patti Kern, Edgar Del Rio, and Sean O’Connor – pleaded guilty to conspiracy to commit mail fraud earlier this year.
“It will be a priority of this office to dismantle organizations like this one that prey on the elderly and vulnerable,” said U.S. Attorney Nicholas Trutanich for the District of Nevada. “We will continue to investigate and prosecute these large-scale frauds that operate in Nevada and across the country.”
“Many people who received these solicitations in the mail thought they were winners, but they were not. In fact, they were victims of scams exploiting the vulnerable. For many years, the U.S. Postal Inspection Service has been at the forefront of protecting consumers from fraud. The consequences of this type of financial fraud scheme are far reaching and damaging. Anyone who engages in such conduct should know they will not go undetected and will be held accountable,” said Inspector in Charge Delany De Leon-Colon of U.S. Postal Inspection Service’s Criminal Investigations Group at National Headquarters.
The mail fraud and conspiracy charges each carry a statutory maximum sentence of 20 years in prison. The false statement charge carries a statutory maximum sentence of five years in prison. Each charge also carries a statutory maximum fine of $250,000 or twice the gross gain or gross loss from the offense.
An indictment is an accusation by a federal grand jury and is not evidence of guilt. The defendants should be presumed innocent unless and until proven guilty.
The U.S. Postal Inspection Service investigated the case. The case is being prosecuted by Trial Attorneys Timothy Finley and Daniel Zytnick of the Department of Justice’s Consumer Protection Branch and Assistant U.S. Attorney Nicholas Dickinson of the District of Nevada.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past March the Department announced the largest elder fraud enforcement action in American history, charging more than 260 defendants in a nationwide elder fraud sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act. Additional information on the Department of Justice’s efforts to combat elder fraud is at: https://www.justice.gov/civil/consumer-protection-branch/elder-fraud.
Six Charged in Multi-Million Dollar Elder Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – Six Las Vegas, Nevada area residents were charged with running a fraudulent mass-mailing scheme that tricked hundreds of thousands of consumers into paying more than $10 million in fees for falsely promised cash prizes, the Department of Justice has announced.
The unsealed indictment charges Mario Castro, 51, Jose Salud Castro, 70, Salvador Castro, 53, Miguel Castro, 55, Jose Luis Mendez, 45, and Andrea Burrow, 49, with mail fraud and conspiracy to commit mail fraud. The indictment, secured by the Department’s Consumer Protection Branch and the U.S. Attorney’s Office for the District of Nevada, also charges Salvador Castro with making a false statement to investigators. U.S. Postal Inspectors arrested five of the defendants last night. The sixth, Jose Salud Castro, turned himself into authorities this morning.
According to the indictment, the defendants’ prize-notification scheme led victims, many of whom were elderly and vulnerable, to believe that they could pay a small $20 or $30 fee to claim a large cash prize. The indictment alleged that none of the victims who submitted fees ever received a large cash prize.
“The Department will pursue and prosecute those who defraud elderly or vulnerable consumers,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “We have alleged that these defendants perpetrated a cruel hoax on their victims and relentlessly targeted many with repeated fraudulent mailings.”
The indictment asserts that the defendants operated the scheme from 2010 to February 2018, when postal inspectors executed multiple search warrants and the Department of Justice obtained a court order shutting down the fraudulent mail operation. Mario Castro, Jose Salud Castro, Salvador Castro, Miguel Castro, and Jose Luis Mendez allegedly worked at the printing and mailing businesses that sent the fraudulent mail and shared the profits from the fraudulent prize notices. The remaining defendant, Andrea Burrow, opened victim return mail, sorted cash and other payments, and entered data from the victims’ responses into a database that the scheme used to target past victims with more fraudulent mail, according to the indictment.
The defendants are alleged to have ignored multiple cease and desist orders from the United States Postal Service that prohibited their mailing companies from sending fraudulent mail. The defendants responded by changing the names of their companies and using straw owners to hide their continuing fraud.
Three of the defendants’ co-conspirators – Patti Kern, Edgar Del Rio, and Sean O’Connor – pleaded guilty to conspiracy to commit mail fraud earlier this year.
“It will be a priority of this office to dismantle organizations like this one that prey on the elderly and vulnerable,” said U.S. Attorney Nicholas Trutanich for the District of Nevada. “We will continue to investigate and prosecute these large-scale frauds that operate in Nevada and across the country.”
“Many people who received these solicitations in the mail thought they were winners, but they were not. In fact, they were victims of scams exploiting the vulnerable. For many years, the U.S. Postal Inspection Service has been at the forefront of protecting consumers from fraud. The consequences of this type of financial fraud scheme are far reaching and damaging. Anyone who engages in such conduct should know they will not go undetected and will be held accountable,” said Inspector in Charge Delany De Leon-Colon of U.S. Postal Inspection Service’s Criminal Investigations Group at National Headquarters.
The mail fraud and conspiracy charges each carry a statutory maximum sentence of 20 years in prison. The false statement charge carries a statutory maximum sentence of five years in prison. Each charge also carries a statutory maximum fine of $250,000 or twice the gross gain or gross loss from the offense.
An indictment is an accusation by a federal grand jury and is not evidence of guilt. The defendants should be presumed innocent unless and until proven guilty.
The U.S. Postal Inspection Service investigated the case. The case is being prosecuted by Trial Attorneys Timothy Finley and Daniel Zytnick of the Department of Justice’s Consumer Protection Branch and Assistant U.S. Attorney Nicholas Dickinson of the District of Nevada.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past March the Department announced the largest elder fraud enforcement action in American history, charging more than 260 defendants in a nationwide elder fraud sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act. Additional information on the Department of Justice’s efforts to combat elder fraud is at: https://www.justice.gov/civil/consumer-protection-branch/elder-fraud.
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Shaler Twp. Man Pleads Guilty in Safe Streets Task Force Investigation of Drug TraffickingRead the Press Release
PITTSBURGH, PA – A resident of Allison Park, Pennsylvania, pleaded guilty in federal court to charges of narcotics trafficking, United States Attorney Scott W. Brady announced today.
Marvin Porter, age 49, pleaded guilty to Count One of the Indictment at Criminal No. 19-160, charging him with conspiracy to distribute 100 grams or more of heroin, a Schedule I controlled substance, between April 2019 and May 2019, before Senior United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that the Greater Pittsburgh Safe Streets Task Force conducted a long-term investigation of drug trafficking occurring in and around the Braddock borough of Pittsburgh. In January of 2019, investigators obtained authorization to conduct a federal wire investigation, which continued through May of 2019. In April of 2019, intercepted communications confirmed that Mr. Porter was conspiring with others to possess with intent to distribute heroin in the Western District of Pennsylvania. Additionally, the Court was advised that on June 12, 2019, law enforcement seized a suitcase containing 612 bricks and one bundle of heroin, six firearms as well as related magazines and ammunition, jewelry, and a digital scale from Mr. Porter’s residence.
Judge Schwab scheduled sentencing for April 22, 2020, at 9:00 AM. The law provides for a maximum sentence of not less than five and not more than 40 years in prison, a fine of not more than $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Drug Enforcement Administration, Bureau of Alcohol Tobacco Firearms and Explosives, United States Marshals Fugitive Task Force, Allegheny County Sheriff’s Office, Allegheny County Police Department, Pennsylvania State Police, Pennsylvania Attorney General’s Office Bureau of Narcotics, and the Pittsburgh Bureau of Police. Other assisting agencies include the Monroeville Police Department, Penn Hills Police Department, Wilkinsburg Police Department, and Allegheny County Adult Probation.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Sex Trafficker of Three Underage Girls Is Sentenced to 30 YearsRead the Press Release
CHARLOTTE, N.C. – Zerrell Ross Fuentes, 24, of Charlotte, was sentenced today to 30 years in prison for sex trafficking three minor females, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, U.S. District Judge Max O. Cogburn Jr. ordered Fuentes to serve a lifetime under court supervision after he is released from prison.
According to filed court documents and today’s sentencing hearing, between April 28, 2016 and May 8, 2016, Fuentes, his wife, Brianna Wright, and his mother, Tanya Marie Fuentes, engaged in the sex trafficking of three minor victims. Court records show that, while he was in jail on state charges, Zerrell Fuentes devised a scheme to involve three underage girls in prostitution so that they could earn money for his bond. Zerrell Fuentes arranged for his wife to transport the minor victims from Charlotte to Myrtle Beach, S.C., for the purpose of engaging in commercial sex acts while they were in Myrtle Beach.
According to court records, Wright, accompanied by Zerrell Fuentes’ mother, Tanya Fuentes, drove the three minors from Charlotte to Myrtle Beach. While in Myrtle Beach, Tanya Fuentes paid for lodging. Brianna Wright drove the minors to meet clients for the purpose of engaging in sexual acts for money, and her phone was used to post prostitution advertisements for the minor victims on the Internet. While in Myrtle Beach, at least two minor victims committed sexual acts.
“Zerrell Fuentes, his wife, and his mother ran a depraved family business engaged in the sex trafficking of young girls for profit,” said U.S. Attorney Murray. “Children are not commodities to be advertised and traded for the financial benefit of wicked adults. The protection of helpless and impressionable minors should be an adult’s priority. Anyone who violates the trust of children for their financial gain deserves to spend three decades behind bars, if not longer, where they can no longer destroy young lives.”
Zerrell Fuentes is currently in federal custody. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
On August 26, 2019, Wright was sentenced to 10 years in prison, and Tanya Fuentes was ordered to serve 24 months in prison, for their involvement in the case.
In making today’s announcement U.S. Attorney Murray commended the law enforcement agents and officers from ICE’s Homeland Security Investigations and the Charlotte Mecklenburg Police Department who are members of the FBI’s Human Trafficking Task Force for their investigation. He also thanked the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives for their assistance in this case.
Assistant U.S. Attorney Kimlani Ford, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Seminole Man Pleads Guilty to Theft from Organization Receiving Federal Program FundsRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Randall Pete Loftis, age 41, of Seminole, Oklahoma, entered a guilty plea to Theft From Organization Receiving Federal Program Funds, in violation of Title 18, United States Code, Section 666(a)(1)(A), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The Information alleged that from on or about December 19, 2011, until on or about August 9, 2016, in the Eastern District of Oklahoma, the defendant, Randall Pete Loftis, being an agent, employee, and officer of Enviro Systems, Inc., an organization which received in excess of $10,000 in federal benefits in each one year period from 2011 through 2016, embezzled, stole, obtained by fraud, and without authority knowingly converted to the use of a person not the rightful owner, property of a value of $5,000 or more, owned by, under the care of, and under the control of Enviro Systems, Inc.
The charges arose from an investigation by the Seminole Police Department and the Department of Defense Office of Inspector General - Defense Criminal Investigative Service.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Rob Wallace represented the United States.
Sarasota Men Charged with International Arms TraffickingRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the return of a superseding indictment charging Romen Rafael Perez (47, Sarasota), Pedro Perez-Garcia (51, Sarasota), and Juan Miguel Martinez-Garcia (33, Sarasota) with conspiracy, making a false statement to a firearms dealer, delivery of firearms to a common carrier for shipment in foreign commerce without written notice, and smuggling goods from the United States. If convicted on all counts, each faces a maximum penalty of 30 years in federal prison.
According to the
superseding indictment , during the course of the conspiracy, Perez, Perez-Garcia, and Martinez-Garcia purchased more than 80 firearms from federally licensed firearms dealers located in the Middle District of Florida. The defendants represented themselves to be the actual buyers of each firearm at the time of purchase, despite having preexisting plans to ship those firearms to the Dominican Republic. During shipment, the men hid the firearms among innocuous items, such as clothing and food, and failed to inform the common carrier that the packages contained firearms. On September 11, 2019, investigators intercepted one such package destined for Puerto Plata, Dominican Republic. Inside, they discovered and seized 12 Glock semi-automatic 9mm handguns and accompanying magazines, as well as speed loaders hidden within several packages of breakfast cereal.An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, and the Manatee County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Carlton C. Gammons.
Repeat Sex Offender Is Sentenced to 15 Years for Child PornographyRead the Press Release
CHARLOTTE, N.C. – Matthew Stacks, 45, of Charlotte, was sentenced late yesterday to 15 years in prison for transportation of child pornography, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn Jr. also ordered Stacks to serve a lifetime of supervised release and to register as a sex offender after he is released from prison.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division joins U.S. Attorney Murray in making today’s announcement.
According to court documents and information introduced at the sentencing hearing, on January 3, 2018, Stacks was using a peer-to-peer network to access and transport multiple files containing child pornography. During a subsequent search of Stack’s residence, law enforcement seized electronic and storage devices. Forensic analysis of the items seized revealed that Stacks possessed over 27,000 images and 32 videos of child pornography, some of which depicted children as young as toddlers being sexually abused.
Stacks has prior convictions in North Carolina, including Second Degree Sexual Exploitation of a Minor in 2012. He was also convicted in 2013 for a sex offender registry violation.
Stacks pleaded guilty on May 15, 2019, to transportation of child pornography. He is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The FBI led the investigation. Assistant U.S. Attorney Cortney Randall of the U.S. Attorney’s Office in Charlotte prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Randolph County man sentenced for methamphetamine chargeRead the Press Release
ELKINS, WEST VIRGINIA – Scott Jackson Hamrick, of Elkins, West Virginia, was sentenced today to 60 months incarceration for his role in a methamphetamine distribution operation, U.S. Attorney Bill Powell announced.
Hamrick, also known as “Basic,” age 39, pled guilty to one count of “Conspiracy to Distribute Methamphetamine” in April 2019. Hamrick admitted to conspiring with another to distribute methamphetamine in Randolph County in the spring of 2017.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Bureau of Alcohol, Firearms, Tobacco and Explosives, The Mountain Region Drug & Violent Crime Task Force, the Greater Harrison Drug &Violent Crime Task Force, a HIDTA-funded initiative, the West Virginia State Police, Upshur County Sheriff’s Office, Lewis County Sheriff’s Office, the Buckhannon Police Department, and the Weston Police Department investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. District Judge Thomas S. Kleeh presided.
Queens, New York, Man Admits to Impersonating Federal Bureau of Investigation AgentRead the Press Release
NEWARK, N.J. – A Queens, New York, man today admitted impersonating a federal agent, U.S. Attorney Craig Carpenito announced.
Tornike Lubyk, 28, pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging him with one count of falsely impersonating an agent of the FBI.
According to documents filed in this case and statements made in court:
Lubyk admitted that on July 8, 2019, during a traffic stop by the Paramus Police Department, he falsely advised Paramus officers that he was with the FBI’s C-22 organized crime squad based in the Manhattan field office, and presented an apparent FBI badge, apparent FBI credentials, and an apparent FBI security access card.
The charge of impersonating a federal officer carries a maximum potential penalty of three years in prison and a fine of $250,000, or twice the gross pecuniary gain to the defendant or loss to the victim, whichever is greater. Sentencing is scheduled for Feb. 20, 2020.
U.S. Attorney Carpenito credited FBI task force officers and special agents, under the direction of Special Agent in Charge Gregory W. Ehrie, Newark Field Division; and special agents of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Brian A. Michael, with the investigation leading to today’s guilty plea. He also thanked the Paramus Police Department for their work on the case.
The government is represented by Assistant U.S. Attorney Cassye Cole of the U.S. Attorney’s Office’s Criminal Division in Newark.
Defense counsel: Warren S. Sutnick Esq., Hackensack, New Jersey
Provincetown Man Indicted for Distributing, Receiving and Possessing Child PornographyRead the Press Release
BOSTON – A Provincetown man was indicted today by a federal grand jury in Boston with distribution, receipt and possession of child pornography.
Kerry Adams, 59, was indicted on one count each of receipt of child pornography, possession of child pornography and distribution of child pornography. Adams was arrested and charged by criminal complaint in Oct. 17, 2018, and has been in federal custody since that time.
According to court documents, a federal search warrant was executed on Oct. 17, 2019 at Adams’s residence in Provincetown were multiple devices, including laptops, thumb drives and SD cards were located. During an initial on-scene forensic review of a laptop, hundreds of files in the computer’s peer-to-peer software program were located. At least a dozen of these files were found to contain child pornography, and three of the files contained videos depicting pre-pubescent boys engaging in sexual acts. These same three files had been previously downloaded from Adams’s IP address using the peer-to-peer software program to a law enforcement investigative computer. During a consensual interview, it is alleged that Adams initially denied that there would be pornography of 10-14 year-old-boys on his computer, but later admitted that 13-15 year-old-boys were once of sexual interest to him, but are not anymore.
Members of the public who have questions, concerns, or information regarding this case should call 617-748-3274.
The charges of distribution and receipt of child pornography each provides for a mandatory minimum sentence of five years and up to 20 years in prison. The charging of possession of child pornography provides for a sentence of up to 20 years in prison. All three offenses carry a minimum of five years and up to a lifetime of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Stephen Marks, Special Agent in Charge of U.S. Secret Service in Boston; and Barnstable Police Chief Matthew Sonnabend made the announcement today. Valuable assistance was provided by Provincetown Police Department and the Department of Homeland Security Investigations. Assistant U.S. Attorney Lindsey E. Weinstein of Lelling’s Major Crimes Unit is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Porcupine Man Charged with Assaulting a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that a Porcupine, South Dakota, man has been indicted by a federal grand jury for Assaulting a Federal Officer.
Ian Spotted Bear, age 24, appeared before U.S. Magistrate Judge Daneta Wollmann and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is 8 years in prison, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Spotted Bear pushing, striking, kicking, and physically resisting an officer on August 27, 2019, near Pine Ridge.
The charge is merely an accusation and Spotted Bear is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs - Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Heather Sazama is prosecuting the case.
Spotted Bear was released on bond pending trial. A trial date has been set for January 7, 2020.
Plainfield Man Sentenced to 35 Years for Sexual Exploitation of a ChildRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today that Kevin C. Baker, 56, Plainfield, Indiana, was sentenced today in federal court, by U.S. District Judge James Patrick Hanlon, to 35 years’ in federal prison, after having previously pleaded guilty to charges of sexual exploitation of a minor child.
“Protecting minor children from sexual predators is a top priority for the U.S. Attorney’s Office,” said Minkler. “We will use all available resources to locate and prosecute those who choose to sexually exploit minor children.”
Baker was charged on June 22, 2017, with several counts of sexually exploiting a child and possession of child pornography. Approximately one year after Baker’s conviction for accosting, enticing, or soliciting a child for an immoral purpose, in the 37th Circuit Court of Calhoun County, in Battle Creek, Michigan, for which he received a sentence of 48 months’ probation, Baker reoffended. On or about June 14, 2017, Baker used a messaging application to meet and correspond with Minor Victim 1, who was 13 years’ old. During those conversations, Baker induced Minor Victim 1 to produce child pornography images of herself, and distribute them to Baker.
During the evening of June 15, 2017, Baker traveled from Plainfield, Indiana, to Paxton, Illinois, and coerced and enticed Minor Victim 1 to cross state lines, and travel back with him to a hotel in Plainfield for the purpose of having sexual contact with her.
Baker abandoned Minor Victim 1 at the hotel. Approximately one day later, Minor Victim 1 left the hotel alone and barefoot, and used the telephone at a tire shop to call her mother, who called the local police department. Officers from the Plainfield Police Department later recovered Minor Victim 1 at a nearby restaurant.
This case was investigated by the Federal Bureau of Investigation (FBI) and the Plainfield Police Department.
“While no sentence can change the damage that Mr. Baker has inflicted to his young victim, it should serve as an example to others who sexually exploit children that they too should expect appropriately strong punishment for their heinous actions,” said Special Agent in Charge Grant Mendenhall, FBI Indianapolis. “It should also serve as a reminder that the FBI and our law enforcement partners remain committed to identifying, investigating and bringing these defendants to justice.”
According to Assistant U.S. Attorney Tiffany J. Preston, who prosecuted this case for the government, Baker will serve lifetime supervised release following his prison sentence.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the office’s firm commitment to utilize and partner with law enforcement agencies to prosecute individuals engaged in the sexual exploitation of children. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 4.1.
Picayune Man Sentenced to 30 Years for Producing Child PornographyRead the Press Release
Gulfport, Miss. – Dannie Curlee, Jr., 46, of Picayune, was sentenced today by Senior U.S. District Judge Louis Guirola Jr., to the maximum statutory penalty of 30 years in federal prison, followed by a lifetime of supervised release, for producing images of a minor engaged in sexually explicit conduct, announced U.S. Attorney Mike Hurst and Jere T. Miles, Special Agent in Charge of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in New Orleans. Curlee was also ordered to pay restitution in the amount of $3,000 to a victim, and a special assessment of $5,000 under the Justice for Victims of Trafficking Act of 2015.
“Harming children by producing child pornography is pure evil, plain and simple. Those who commit such evil acts will face severe consequences from this office. There is absolutely no place in our society for this abhorrent activity, and we will continue to do all that we can to protect children and prevent the most vulnerable among us from ever becoming a victim,” said U.S. Attorney Hurst.
In February 2017, Curlee produced images of a minor engaging in sexually explicit conduct. Curlee was identified by the Royal Canadian Mounted Police (RCMP), Homeland Security Investigations (HSI) Attaché Vancouver, and HSI in Mississippi, as an individual, with a specific user name, involved with numerous individuals posting images and videos depicting the sexual exploitation of children utilizing instant messaging mobile app “Kik.”
Further investigation and the identification of an internet protocol or “IP” address linked to Curlee led to the execution of a federal search warrant at Curlee’s Picayune residence in July 2018 and his subsequent arrest. Curlee admitted when interviewed that he had produced images of a minor child. Curlee was charged in a federal criminal indictment with producing images of a minor engaged in sexually explicit conduct. He pled guilty before Judge Guirola on August 7, 2019.
The case was investigated by the Homeland Security Investigations Gulfport Border Enforcement Security Task Force with assistance from the Pearl River County Sheriff’s Office. It was prosecuted by Assistant U.S. Attorney Andrea Jones.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Pensacola Man Pleads Guilty to Federal Charges Related to Human Trafficking in Multiple StatesRead the Press Release
PENSACOLA, FLORIDA – United States Attorney Lawrence Keefe, of the Northern District of Florida, announced today that David C. Williams, 41, a Pensacola massage parlor business operator, pled guilty to charges of using interstate facilities for purposes of racketeering, transporting females for purposes of prostitution, harboring illegal aliens for commercial advantage or private financial gain, and being involved in a money laundering conspiracy.
Williams was arrested by the FBI in August of this year in connection with his operation of multiple Asian massage parlors in Florida, Virginia, and Pennsylvania. Along with the arrest of
Williams on these federal charges, over a dozen search warrants were executed at massage parlors linked to Williams in these three states. This included multiple federal search warrants in
Pensacola, Gulf Breeze, and Gainesville, all of which are located in the Northern District of
Florida. Over half a dozen seizure warrants were also executed on bank accounts linked to Williams.“Human trafficking is high on the list of the most heinous crimes because its perpetrators treat people as property to be abused and monetized. Consequently, this office, and all of our law enforcement partners, will be vigilant and diligent in the prevention, pursuit, prosecution, and punishment of human trafficking,” stated United States Attorney Keefe.
During his guilty plea, Williams admitted operating Asian massage parlors that maintained Chinese females illegally present in the United States who were offering sexual acts at the parlors in return for money. The investigation revealed that Williams was using the now defunct website
“Backpage.com” to run tens of thousands of dollars’ worth of advertisements for his illicit businesses. Records obtained from financial institutions and airlines also confirmed that
Williams paid for the travel of the Chinese females throughout the United States and, particularly, to locations where he maintained illicit massage parlors. The records from financial institutions also revealed that Williams and his conspirators laundered hundreds of thousands of dollars through bank accounts that were opened in nominee names in an effort to distance Williams from the illegal activity.“Human trafficking is a crime that happens all around us, often in plain sight, impacting the safety of our neighborhoods and our quality of life,” said Rachel L. Rojas, Special Agent in Charge of the FBI Jacksonville Division. “When human beings are treated as commodities, they are not only being abused physically, but emotionally and financially as well. The FBI and our law enforcement partners will continue to collaborate at every level to disrupt and dismantle organizations responsible for this illegal activity."
“Tracing money obtained as the result of criminal acts is the specialty of IRS Criminal
Investigation agents, and to be able to do so in the aid of victims of human trafficking is additionally rewarding,” stated Mary Hammond, Special Agent in Charge of IRS Criminal
Investigation’s Tamp Field Office. “Criminal enterprises such as this one are a blight in the communities in which they operate.”“This criminal was profiting off human lives,” said HSI Jacksonville Assistant Special Agent in
Charge K. Jim Phillips. “Human trafficking is a complicated, intricate crime and HSI has made it a priority to work with all our law enforcement partners to identify these perpetrators and bring them to justice.”Assistant United States Attorney David L. Goldberg is prosecuting the case following a joint investigation by the Federal Bureau of Investigation, the Internal Revenue Service – Criminal
Investigations, Homeland Security Investigations, the Florida Department of Law Enforcement, the
Pennsylvania State Police, the Okaloosa County Sheriff’s Office, the Santa Rosa County Sheriff’s
Office, the Gainesville Police Department, the Clearwater Police Department, the Florida State
Attorney’s Office, and the Office of the Attorney General for the State of Pennsylvania.Williams faces up to ten years’ imprisonment on charges related to transporting females for purposes of prostitution and harboring them for financial gain. He also faces up to five years’ imprisonment for racketeering conduct and up to twenty additional years’ imprisonment for engaging in a money laundering conspiracy. As part of his guilty plea, Williams will also forfeit over
$125,000 in currency that was seized from his massage parlor locations and related bank accounts.
Sentencing has been set for February 7, 2020, at 1:00 pm at the United States Courthouse in
Pensacola.The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of
Florida website. For more information about the U.S. Attorney’s Office, Northern District of
Florida, visit http://www.justice.gov/usao/fln/index.html.Pennsylvania Man Sentenced to Twenty Five Years in Prison After He Traveled to Orlando to Rape Notional Thirteen-Year-Old GirlRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Thomas Rowland (51, Pennsylvania) to 25 years in federal prison for attempted enticement of a minor to engage in sexual activity.
Rowland had pleaded guilty on August 29, 2019.
According to court documents, in April and May 2019, Rowland engaged in conversations with an undercover (“UC”) agent on a “dark web” website. Over the course of several conversations, Rowland discussed plans to travel to Florida and videotape his rape of the UC’s fictional 13-year old daughter. Rowland was very specific in his requests, including asking for the “child’s” body measurements so that he could buy “sexy outfits” for her to wear during his sexual encounters with her.
Throughout their conversations, Rowland kept in touch with the UC and maintained his desire to fly to Florida to have sex with the “child.” Rowland also stated that he was bringing sexual devices to use on the “child.”
On June 21, 2019, Rowland arrived at the Orlando International Airport and was subsequently arrested. Inside Rowland’s luggage, law enforcement officers found sex toys and “sexy outfits,” along with other paraphernalia for use in sexual activity.
“This child predator thought he was going to travel into our local communities to sexually abuse a child,” said HSI Orlando Assistant Special Agent in Charge David J. Pezzutti. “Instead, he was met by HSI special agents and Brevard County Sheriff’s Office deputies and now he is being held accountable for his crimes.”
This case was investigated by the U.S. Department of Homeland Security Investigations and the Brevard County Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Sean P. Shecter and Ilianys Rivera Miranda.
This is another case 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 individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Palm Beach County Resident Convicted at Trial of Wire Fraud and Money Laundering Relating to Scheme to Steal over $2.7 Million by Compromising Employer’s Computer NetworkRead the Press Release
On November 8, 2019, a federal jury found Anthony Michael D’Amico, 39, of Boca Raton, Florida, guilty of wire fraud and money laundering, in a scheme where he secretly accessed his employer’s computer network to steal $2.7 million in propriety information.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and George L. Piro, Special Agent in Charge of the FBI’s Miami Field Office made the announcement.
According to evidence presented at trial, from approximately September 2017 through January 2018, D’Amico improperly accessed the computer network of his employer, an Austin-based company called All Web Leads. All Web Leads was in the business of, among other things, connecting people searching for health insurance on the internet with insurance companies who wanted potential customers. The evidence showed that D’Amico logged into the All Web Leads computer system late at night to reroute marketing calls generated by All Web Leads to companies paying him directly on the side. According to witnesses from All Web Leads, the proprietary information that D’Amico stole would have generated over $2.7 million for the company. Employees of All Web Leads further testified that D’Amico’s fraud significantly impacted the performance of the company that year and prevented All Web Leads employees from receiving bonuses.
Banking evidence demonstrated that D’Amico personally received over $1 million, in less than six months, by selling the proprietary information he stole from All Web Leads. According to the evidence presented at trial, D’Amico used the criminal proceeds he received from the scheme to buy a luxury automobile and pay a variety of personal expenses.
Sentencing has been scheduled for January 23, 2020 at 9:30 a.m. before Senior Judge James I. Cohn in Fort Lauderdale (Case No. 18cr80179).
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI’s Miami Field Office. This case is being prosecuted by Special Assistant U.S. Attorneys Elizabeth Young and Leila Babaeva, and Assistant U.S. Attorney Lisa Miller. Assistant U.S. Attorney Peter A. Laserna is handling the asset forfeiture issues related to this matter.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Oxford Native Sentenced to 15 years in Prison for Human TraffickingRead the Press Release
OXFORD – A federal judge sentenced an Oxford, Mississippi man to serve 15 years in federal prison on Thursday afternoon for sex trafficking of a minor in Oxford between February and March 2018. Edward Earl Daniels pled guilty on May 19, 2019, to the charge of sex trafficking of a child by force, fraud or coercion. Oxford Police officers initially arrested Daniels on March 1, 2018, for a traffic violation. However, Oxford Police officers and FBI agents investigated the circumstances of a minor in the vehicle, and determined Daniels had operated a prostitution ring with the minor and other victims. An announcement regarding Daniels’ sentence was made by Michelle A. Sutphin, Special Agent in Charge for the FBI Jackson Division, Oxford Police Chief Jeff McCutchen, Mississippi Attorney General Jim Hood, and U.S. Attorney William C. Lamar.
In sentencing Daniels to the 15-year term along with five years of supervised release, U.S. District Judge Michael P. Mills reviewed Daniels’ criminal history and remarked, “You have made the decision to lead a life of crime and take advantage of others. The facts you admitted to – you admitted to taking advantage of a young lady, and I can’t think of anything much worse.”
"People, especially children, are not property, and selling or trading them for any purpose is immoral and a criminal act," said SAC Sutphin. “We will continue to work side by side with the United States Attorney’s Office, along with our law enforcement partners, to target predators of children and to bring those who victimize the most vulnerable in our communities to justice.”
U.S. Attorney William C. Lamar reiterated the commitment of his office to combatting human trafficking. Lamar remarked, “Human trafficking in any form is a reprehensible crime and we will devote our full attention and efforts to combat these crimes, hold offenders accountable, and to help provide all necessary services to the victims, especially when our children are preyed upon.”
Oxford Police Chief Jeff McCutchen praised the efforts of those involved in the investigation and prosecution. “We are very proud of the effort and hard work by our officers and our federal partners. This is a perfect example of committed teamwork for the protection of our community. Thankfully, we have a determined team of federal agents and attorneys with the same passion that we have in keeping our children safe!”
Attorney General Jim Hood also praised the joint efforts of federal, state and local investigators and prosecutors in this case and recognized the impact of those efforts. “I offer a job well done to each agency and every hand we had working on this case from local to state to federal levels,” Attorney General Jim Hood said. “With a unified effort we are able to apply incredible pressure on the prevention of human trafficking and protecting our children in Mississippi and that was evident in this case.”
The investigation was a joint federal, state and local investigation with the Oxford Police Department, the Mississippi Attorney General’s Office, and the FBI. The case was prosecuted by AUSA Paul Roberts.
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Owner of Winter Park Tax Business Sentenced to 36 Months in Federal Prison for Filing Fraudulent Tax ReturnsRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Leslie Muniz to 36 months in federal prison for aiding and abetting the filing of false federal income tax returns. Muniz was also ordered to pay $1,615,143 in restitution to the United States.
Muniz had pleaded guilty on August 20, 2019.
According to court documents, between 2012 and 2016, Muniz owned and operated Royalty Tax Services, a tax preparation business located in Winter Park. During this time, in order to inflate her clients’ refunds, Muniz prepared, or caused her employees to prepare, hundreds of fraudulent tax returns for clients claiming false itemized deductions and fake Schedule C businesses and business losses. Muniz then used tax preparation numbers assigned to her employees to file the fraudulent tax returns with the IRS to avoid having the returns traced to her. When employees at Royalty Tax Services questioned Muniz about her tax practices or her use of their tax preparation numbers, she fired them. The total loss to the United States as a result of Muniz’s conduct was more than $1.6 million.
This case was investigated by IRS – Criminal Investigation. It was prosecuted by Assistant United States Attorney Chauncey A. Bratt.