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Monday 23 September 2019
Soldier at Fort Riley Charged with Distributing Instructions for BombsRead the Press Release
TOPEKA, KAN. - A soldier stationed at Fort Riley was charged in federal court here today with sending over social media instructions for making bombs, U.S. Attorney Stephen McAllister said.
Jarrett William Smith, 24, Fort Riley, Kan., was charged with one count of distributing information related to explosives and weapons of mass destruction.
Smith, a specialist first class infantry soldier, joined the Army June 12, 2017, and was transferred to Fort Riley, Kan., on July 8, 2019. According to an FBI investigator’s affidavit, Smith said on Facebook he was interested in traveling to the Ukraine to fight with a paramilitary group called the Azov Batallion.
During a Facebook chat, Smith offered to teach other Facebook users to make cell phone explosive devices “in the style of the Afghans.” On Aug. 19, 2019, Smith told an undercover investigator he was looking for “radicals” like himself. Smith talked about killing members of Antifa and destroying nearby cell towers or a local news station. On Aug. 21, Smith told an undercover investigator about how to make a vehicle bomb. When the investigator commented that most of the components were household items, Smith said: “Making AK47s out of expensive parts is cool, but imagine if you will if you were going to WalMart instead of a gun store to buy weapons.”
Smith also described in detail to the undercover investigator how to build a bomb that could be triggered by calling a cell phone.
“Be very careful with the fully armed device,” Smith warned the investigator.
If convicted, Smith could face up to 20 years in federal prison and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney Tony Mattivi is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Russian Hacker Pleads Guilty for Involvement in Massive Network Intrusions at U.S. Financial Institutions, Brokerage Firms, A Major News Publication, and Other CompaniesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that ANDREI TYURIN, a/k/a “Andrei Tiurin,” pled guilty in Manhattan federal court to computer intrusion, wire fraud, bank fraud, and illegal online gambling offenses in connection with his involvement in a massive computer hacking campaign targeting U.S. financial institutions, brokerage firms, financial news publishers, and other American companies. These hacks included one of the largest thefts of customer data from a U.S. financial institution in history. TYURIN is charged with committing these crimes with Gery Shalon, a/k/a “Garri Shalelashvili,” a/k/a “Gabriel,” a/k/a “Gabi,” a/k/a “Phillipe Mousset,” a/k/a “Christopher Engeham”; Joshua Samuel Aaron, a/k/a “Mike Shields”; and Ziv Orenstein, a/k/a “Aviv Stein,” a/k/a “John Avery,” in furtherance of securities market manipulation, illegal online gambling, and payment processing fraud schemes perpetrated by Shalon, Aaron, Orenstein, and their co-conspirators. TYURIN pled guilty before U.S. District Judge Laura Taylor Swain.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Andrei Tyurin’s extensive hacking campaign targeted major financial institutions, brokerage firms, news agencies, and other companies. Ultimately, he gathered the customer data of more than 80 million victims, one of the largest thefts of U.S. customer data from a single financial institution in history. With today’s plea, Tyurin’s global reign of computer intrusion is over and he faces significant time in a U.S. prison for his crimes.”
According to the allegations contained in the Indictments to which TYURIN pled guilty, other filings in this case, and statements made during court proceedings, including TYURIN’s guilty plea hearing:
From approximately 2012 to mid-2015, TYURIN engaged in an extensive computer hacking campaign targeting financial institutions, brokerage firms, and financial news publishers in the U.S., including the theft of personal information of over 100 million customers of the victim companies. TYURIN’s hack of one financial institution headquartered in Manhattan resulted in the theft of personal information of over 80 million customers, making it one of the largest theft of customer data from a U.S. financial institution in history. TYURIN engaged in these crimes at the direction of Shalon and in furtherance of other criminal schemes overseen and operated by Shalon and his co-conspirators, including securities fraud schemes in the United States. For example, in an effort to artificially inflate the price of certain stocks publicly traded in the U.S., Shalon and his co-conspirators marketed the stocks in a deceptive and misleading manner to customers of the victim companies whose contact information TYURIN stole in the intrusions.
In addition to the U.S. financial sector hacks, TYURIN also conducted cyberattacks against numerous U.S. and foreign companies in furtherance of various criminal enterprises operated by Shalon and his co-conspirators, including unlawful internet gambling businesses and international payment processors. Nearly all of these illegal businesses, like the securities market manipulation schemes, exploited the fruits of TYURIN’s computer hacking campaigns. Through these various criminal schemes, TYURIN, Shalon, and their co-conspirators obtained hundreds of millions of dollars in illicit proceeds.
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TYURIN, 35, of Moscow, Russia, pled guilty to one count of conspiracy to commit computer hacking, which carries a maximum sentence of five years in prison; one count of wire fraud, which carries a maximum sentence of 20 years in prison; one count of conspiracy to violate the Unlawful Internet Gambling Enforcement Act, which carries a maximum sentence of five years in prison; and one count of conspiracy to commit wire fraud and bank fraud, which carries a maximum sentence of 30 years in prison. In addition, TYURIN pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum sentence of 30 years in prison; and one count of conspiracy to commit computer hacking, which carries a maximum sentence of five years prison, which was transferred from the Northern District of Georgia for purposes of his plea.
TYURIN is scheduled to be sentenced by Judge Swain on February 13, 2020.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by Judge Swain.
Mr. Berman praised the investigative work of the FBI and the U.S. Secret Service, and expressed his sincere gratitude to the Chief Prosecutor’s Office of Georgia and the Ministry of Justice of Georgia for their support and assistance with the extradition proceedings. He also thanked the Securities and Exchange Commission, Homeland Security Investigations, the Financial Industry Regulatory Authority, the Office of International Affairs of the U.S. Department of Justice for its assistance with the extradition, and the Financial Services Information Sharing and Analysis Center, which significantly aided the investigation by facilitating information-sharing among the victim institutions.
The prosecution of this case is being overseen by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Eun Young Choi, Noah Solowiejczyk, and Sarah Lai are in charge of the prosecution.
Rockford Woman Sentenced to 34 Months in Prison for Transferring Firearms to FelonRead the Press Release
A Rockford woman was sentenced today in federal court before U.S. District Judge Philip G. Reinhard to 34 months in federal prison, to be followed by three years of supervised release, for selling and disposing of a firearm to a person she knew was a felon.
JASMINE C. TURNER, 26, pleaded guilty to the charge on June 12, 2019. According to a written plea agreement, Turner purchased a Glock .45-caliber pistol and a Diamondback 5.56-caliber pistol in May 2017 for her boyfriend at the time. Turner knew that her boyfriend previously had been convicted of second-degree murder, a felony. Turner admitted that she purchased the firearms at her boyfriend’s request and transferred the firearms to him shortly after purchasing them.
In addition, Turner admitted in the plea agreement that in April 2017 she made a false statement to a licensed firearms dealer in connection with the purchase of another firearm. Turner admitted that she falsely represented on a written form that she was the actual buyer of the firearm, when, in fact, Turner was buying the firearm for another individual. That individual was a friend-of-a-friend of Turner. Turner admitted that directly after the purchase, she gave the firearm to her friend to deliver to the other individual.
The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Timothy Jones, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; and Dan O’Shea, Chief of the Rockford Police Department. The government is represented by Assistant U.S. Attorney Talia Bucci.
Queens Attorney Sentenced to 30 Months’ Imprisonment for Bribing a Witness in Double Homicide Trial on Long IslandRead the Press Release
John Scarpa, Jr., a criminal defense attorney, was sentenced today in federal court in Brooklyn to 30 months’ imprisonment and fined $10,000 by United States District Judge Carol Bagley Amon for bribing a witness to commit perjury in a double homicide trial in Suffolk County Supreme Court. Scarpa was convicted following a four-day trial in May 2019. Scarpa, who will be disbarred, had been practicing law in New York since 1982, and was a prosecutor at three district attorneys’ offices in the metropolitan area before entering private practice in 2003.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
“As a defense attorney and former prosecutor, Scarpa was sworn to uphold the law he so egregiously subverted,” stated United States Attorney Donoghue. “Scarpa went from practicing law to breaking the law and will now pay a price for his crime.” Mr. Donoghue thanked the Queens County District Attorney’s Office for its assistance during the investigation.
As proven at trial, Scarpa plotted with co-conspirator Charles Gallman to bribe a convicted murderer, Luis Cherry, to testify in support of Scarpa’s client, who was charged with the execution-style murders of two men. Cherry then falsely testified at trial that he alone committed the second of the two murders, and that Scarpa’s client was innocent. In exchange for his testimony, Scarpa and Gallman promised to help Cherry with the appeal of his own murder conviction, and to spread word in the prison system that Cherry was not a government informant. Despite the false testimony, the trial judge found Scarpa’s client guilty of both murders.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Andrey Spektor, Lindsay K. Gerdes and Keith D. Edelman are in charge of the prosecution.
The Defendant:
JOHN SCARPA, JR.
Age: 66
Hauppauge, New YorkE.D.N.Y. Docket No. 18-CR-123(S-1) (CBA)
Quality Control Officer of Connecticut Meat Supplier Admits Fabricating E. Coli Test ResultsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Administrator Carmen Rottenberg, U.S. Department of Agriculture’s Food Safety and Inspection Service, announced that DEBBIE L. SMITH, 60, of Ellington, waived her right to be indicted and pleaded guilty today in Hartford federal court to a charge related to a Connecticut meat processing business’s falsification of numerous E. coli test results.
According to court documents and statements made in court, New England Meat Packing, LLC, located in Stafford Springs, is a federally inspected business engaged in the slaughtering, processing, selling and transporting of meat and meat food products for human consumption. Pursuant to the U.S. Department of Agriculture’s (USDA) approved Hazard Analysis and Critical Control Point (HACCP) plan for New England Meat Packing, the company is required to perform one generic E. coli carcass swab for every 300 animals slaughtered and to periodically collect ground beef samples for E. coli testing.
Memet Bequiri is the owner and general manager of New England Meat Packing, and Smith is/was the HACCP Coordinator/Quality Control Officer for the company. Between November 3, 2016 and September 9, 2017, Smith prepared and submitted in the company’s Lab Sample Report binder, which the USDA’s Food Safety Inspection Service (FSIS) reviews, a total of 36 documents relating to 52 separate carcass swabs and ground beef samples on behalf of New England Meat Packing. The 36 documents were each on the letterhead of a certified laboratory that tests food product samples to ensure safety and wholesomeness and signed by the laboratory director. The documents stated that the required E. coli testing of samples submitted by New England Meat Packing had been conducted and completed, and that all 52 samples tested negative for E. coli. In fact, none of the 52 carcass swabs and samples had been submitted or tested by the identified laboratory, or any other laboratory, and the 36 documents were fraudulently prepared using laboratory letterhead obtained from previous testing that New England Meat Packing had conducted with that laboratory.
The investigation revealed that Beqiri authorized the preparation and submission of the fabricated E. coli test results. During an interview with a USDA’s FSIS investigator, Beqiri admitted that the documents were fraudulent, and that his business did not collect and submit the samples to the certified laboratory because he did not correlate the potential impact on food safety with his sampling program and wanted to create the appearance he was compliant with all USDA HACCP testing requirements.
There have been no known instances of illnesses reported by anyone who consumed the meat in any of the states where the meat was distributed.
Smith pleaded guilty to one count of making and using a false document, a charge that carries a maximum term of imprisonment of five years.
Smith is released on bond pending sentencing, which is scheduled for December 10, 2019.
On August 20, 2019, Beqiri pleaded guilty to one count of making and using a false document and aiding and abetting. He awaits sentencing.
The investigation was conducted by the U.S. Department of Agriculture, Food Safety and Inspection Service, Office of Investigations, Enforcement and Audit. The case is being prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Philadelphia Woman Sentenced to Twenty Years’ Incarceration for Sex Trafficking of MinorsRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Shyniquah Lightner, 27, of Philadelphia, Pennsylvania, was sentenced today to twenty years’ incarceration and fifteen years’ supervised release by United States District Judge C. Darnell Jones II for her role in a scheme to sex traffic minor children.
In 2016 and 2017, Lightner recruited two children, ages 14 and 15, to engage in commercial sex acts at a house in Philadelphia. She advertised the children on the website Backpage.com, and she collected money from the sex buyers who came to the residence for sexual encounters with the minors. Her co-defendant, Malik Hudson, participated in the trafficking of the 15-year-old.
“Lightner’s crimes were devastating to her minor victims,” said First Assistant U.S. Attorney Williams. “Today’s sentence of twenty years’ incarceration reflects the seriousness of her crimes and the irrevocable damage she caused, all in pursuit of financial gain. We will continue to work collectively to investigate these destructive crimes against vulnerable children.”
“Today’s sentencing is a significant step in holding Ms. Lightner accountable for trafficking children,” said Marlon V. Miller, Special Agent in Charge of HSI Philadelphia. “Traffickers prey on the vulnerabilities of their victims, repeatedly exploiting them for their own personal gain. We will continue working with our partners at the Philadelphia Human Trafficking Task Force to hold these criminals accountable for their deplorable actions.”
The case was investigated by the Department of Homeland Security - Homeland Security Investigations, with assistance from the Philadelphia Police Department Special Victims Unit, and is being prosecuted by Assistant United States Attorney Michelle L. Morgan.
Philadelphia Man Convicted at Trial of Gun, Drug OffensesRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Salim Davis, 34, of Philadelphia, PA was convicted at trial of one count of being a felon in possession of a firearm, one count of possession of a firearm in connection with a drug trafficking offense, one count of possession with intent to distribute a controlled substance, and one count of aiding and abetting the making of a false statement to a federal firearms licensee.
At trial, the government presented evidence that, on December 29, 2017, at approximately 3:25 p.m., an off-duty Philadelphia Police Inspector was driving his unmarked police car in the area of 2500 Island Avenue when he heard gunshots. Minutes later, he observed defendant Salim Davis and another man carrying firearms while walking in an alleyway near the Inspector’s car. The Inspector commanded that they stop and put their hands up, but Davis fled and discarded his jacket. Police eventually caught up with Davis, placed him in custody, and recovered from him money, a bottle containing 72 Alprazolam pills, and several loose pills in Davis’s pocket. In addition, upon picking up Salim’s discarded jacket, officers recovered a Smith & Wesson, .40 caliber, semi-automatic handgun loaded with 10 live rounds. Police later determined that the weapon they recovered was purchased by a third party on Davis' behalf at Double Action, a federal firearm licensee, in Yeadon, PA.
“This guilty verdict is another important step towards protecting our communities from drug and gun offenders who bring violence to our communities,” said First Assistant U.S. Attorney Williams. “The United States Attorney’s Office, with our law enforcement partners, will aggressively investigate, prosecute, and hold these offenders accountable. We deeply appreciate the cooperation of all of our federal, state, and local partners in defending our communities and bringing Davis to justice.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by ATF and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Kate Driscoll.
North Highlands Man Sentenced to 20 Years in Prison for Possessing Child PornographyRead the Press Release
SACRAMENTO, Calif. — Today, U.S. District Judge William B. Shubb sentenced William Lamar Blessett, 40, of North Highlands, to 20 years in prison for possession of child pornography, U.S. Attorney McGregor W. Scott announced. The 20-year sentence includes 18 years for Blessett’s December 5, 2018, jury trial conviction, and an additional 2 years for violating his terms of supervised release. Particularly, while on federal supervised release for a 2008 child pornography conviction, Blessett was caught and convicted again in this case for possessing child pornography.
According to evidence presented during a two-day trial in December 2018, between mid-2016 and October 2017, Blessett possessed over 2,000 electronic images and videos of child pornography in a Dropbox cloud storage account and on at least five electronic devices, including a laptop computer, two smartphones, and two tablet computers. Blessett possessed these images knowing that at least some of them showed minors engaged in sexually explicit conduct. Blessett accessed the pornographic images on the internet, at least in part by using links he obtained on an instant messenger application called Kik. Blessett viewed the images and downloaded them to a Dropbox account that he owned and operated. Blessett then used the account to organize and view the images and transfer them to his electronic devices.
During sentencing, Judge Shubb also relied on additional evidence showing that Blessett was using the internet to contact and communicate with minors. This evidenced showed that Blessett engaged in online communications with several minors and encouraged them to exchange sexually suggestive messages.
This case was the product of an investigation by the Sacramento County Sheriff’s Department, Central Investigative Division, Hi-Tech Crimes Bureau; the Sacramento Valley Internet Crimes Against Children Task Force; and the Federal Bureau of Investigation. Assistant U.S. Attorneys Grant Rabenn and Amy Hitchcock, and Special Assistant U.S. Attorney Robert Artuz prosecuted the case.
North Carolina Woman Who Embezzled More Than $130K from Connecticut Company Sentenced to PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that SUSANNA KURUS, 44, of Garner, North Carolina, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 30 days of imprisonment, followed by 60 days of home confinement, for embezzling more than $130,000 from her former Connecticut employer. Kurus also must serve two years of supervised release, during which she is required to perform 100 hours of community service.
According to court documents and statements made in court, Kurus formerly resided in Connecticut and was employed as the accounting manager for a company based in Stratford. Between approximately October 2014 and June 2017, Kurus used the company’s financial accounting software to transfer customer credits to at least six personal debit card accounts, and then used the money for personal expenditures. Through this scheme, she stole $133,870.55.
Judge Shea ordered Kurus to make full restitution.
On March 13, 2019, Kurus pleaded guilty to one count of wire fraud.
Kurus, who is released on $200,000 bond, is required to report to prison on January 6, 2020.
This matter was investigated by the Connecticut Financial Crimes Task Force, U.S. Secret Service and Stratford Police Department. The case was prosecuted by Assistant U.S. Attorney Ray Miller.
Nebraska Man Charged with Aggravated Sexual Abuse of a MinorRead the Press Release
United States Attorney Ron Parsons announced that a Chadron, Nebraska, man has been indicted by a federal grand jury for four counts of Aggravated Sexual Abuse of a Minor.
William Bear Robe, age 36, appeared before U.S. Magistrate Judge Daneta Wollmann and pleaded not guilty to the Indictment.
The maximum penalty upon conviction for each charge is a mandatory minimum of 30 years up to life in prison, a mandatory minimum term of 5 years up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Bear Robe engaging in sexual acts with a female child, who had not reached the age of 12 years, between April and October of 2012, at Oglala, South Dakota.
The charges are merely accusations and Bear Robe is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Megan Poppen is prosecuting the case.
Bear Robe was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for November 19, 2019.
Muskegon Child Sex Trafficker Sentenced to 40 Years in Federal PrisonRead the Press Release
GRAND RAPIDS, MICHIGAN - Richardo Leodoro Urbina, 58, of Muskegon, Michigan was sentenced to serve 480 months in the Federal Bureau of Prisons for sex trafficking three minors; attempting to sex traffic three more minors; conspiring to sex traffic minors; sex trafficking an adult by force, fraud, or coercion; distributing cocaine and cocaine base; and conspiring to distribute cocaine and cocaine base. U.S. District Judge Janet T. Neff also imposed a lifetime period of supervised release and $40,000 in fines.
In sentencing Urbina, Judge Neff stated that it is "difficult to find offenses more serious than these" and that this case "is among the most serious the Court has ever seen." Judge Neff also noted the "depravity of the methods Urbina used to recruit young girls and control them to make money for himself."
On May 14, 2019, Urbina was found guilty after a six-day jury trial. Over the course of trial, the jury heard from 10 girls about Urbina’s sexual exploitation of them while they were minors. The jury learned that in May of 2015, Urbina—then 54—recruited and pimped high-school aged girls. He located his victims by befriending high schoolers, who identified the most vulnerable girls they knew. Urbina targeted runaways who needed money and a place to stay. He gave them alcohol and cocaine to make it more likely they would agree to "dance" or give "massages" to men Urbina arranged for them to meet. The girls only learned the men expected them to have sex after they were alone with the johns. Urbina kept half the money the johns paid.
The jury also heard from one woman who Urbina sex trafficked after learning she needed a place to stay. He originally offered to help her by letting her live with him. The first night she stayed with Urbina, he forced her to have sex with a john for money. She lived with Urbina for about six months. He kept all of the money johns paid her and gave her narcotics instead. When she tried to leave, Urbina said she owed him $1,000 and had to pay it in order to be released. She had no money to pay and eventually escaped with the help of a john.
Urbina has an extensive criminal history, including three felony assault convictions, three larceny convictions, two felony drug convictions, a witness intimidation conviction, and a perjury conviction.
In announcing the sentence, U.S. Attorney Birge stated, "Urbina targeted the most vulnerable victims he could find—girls, many one-third his age, who thought they had nowhere else to turn. The 40-year sentence he received today should serve as a warning to others looking to engage in sex trafficking of minors in West Michigan."
"The perpetrator in this case used physical violence, fear, and coercion to further the sexual exploitation of his victims," stated Steven M. D’Antuono, Special Agent in Charge of the FBI Detroit Field Office. "Our investigation in this case through the West Michigan Based Child Exploitation and Human Trafficking Task Force, in conjunction with our local and state partners demonstrates that combating sex trafficking and violence in our communities is of the highest priority for the FBI."
The West Michigan Based Child Exploitation Task Force (WEBCHEX) investigated Urbina. The investigation included members of the FBI, Michigan State Police, Kent County Sheriff’s Office, and Ottawa County Sheriff’s Office. The case was tried by Assistant U.S. Attorneys Alexis M. Sanford and Davin M. Reust.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney’s Office, county prosecutor's offices, the Internet Crimes Against Children task force (ICAC), federal, state, tribal, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
END
Monongahela Man Pleads Guilty to Possessing Sexual Images and Videos of ChildrenRead the Press Release
PITTSBURGH, PA - A resident of Monongahela, Pennsylvania, pleaded guilty in federal court to a charge of possession of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
Eric Allard, age 48, pleaded guilty to one count before Senior United States District Judge Donetta W. Ambrose.
In connection with the guilty plea, the court was advised that, on November 27, 2017, Allard possessed images and videos in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
Judge Ambrose scheduled sentencing for March 17, 2020 at 10 a.m. The law provides for a maximum sentence of 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Mark V. Gurzo is prosecuting this case on behalf of the government.
Homeland Security Investigations, with the assistance of the Monongahela Police Department, conducted the investigation that led to the prosecution of Allard.
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.justice.gov/psc.
Mineral County man sentenced to 14 years for role in a drug distribution operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Michael Corey Alt, of Elk Garden, West Virginia, was sentenced to 168 months incarceration for his involvement in a drug distribution conspiracy, United States Attorney Bill Powell announced.
Alt, age 34, pled guilty to one count of “Conspiracy to Distribute Methamphetamine” in March 2019. Alt admitted to working with others to distribute methamphetamine from August 2017 to June 2018 in Mineral, Hardy, and Hampshire Counties and elsewhere.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, The West Virginia State Police, and the Potomac Highlands Drug & Violent Crimes Task Force investigated.
The investigation was funded in part 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.
Chief U.S. District Judge Gina M. Groh presided.
Milwaukee Financial Advisor Sentenced to 30 Months in Federal Prison for Fraud Scheme that Targeted Elderly VictimsRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin announced that on September 19, 2019, the Honorable Pamela Pepper, United States District Court Judge for the Eastern District of Wisconsin, sentenced Chris Kubiak, 60, of Milwaukee, to 30 months in prison following his conviction for a fraud scheme that targeted elderly victims. The prison sentence will be followed by three years of supervised release. Kubiak also will be required to make restitution in the amount of $379,977 to the six victims named in the indictment.
Kubiak had earlier pleaded guilty to one count of wire fraud in violation of Title 18, United States Code, Section 1343. As admitted in his plea agreement, Kubiak worked as a financial advisor through Freedom Investors Corp, and Calton & Associates, Inc. In that role, Kubiak arranged to have funds withdrawn from several elderly clients’ investment accounts and mailed to their homes or wired to their bank accounts. Kubiak falsely told the clients that the funds were bonuses or dividends that he would reinvest for them. He solicited personal checks from the clients, but rather than reinvesting the money as promised, Kubiak deposited the funds into his own checking account and used the money for gambling and other personal expenses. The scheme spanned a period of five years and was ultimately discovered by a victim’s relative, who reported Kubiak to authorities.
Speaking for one of the victims, a relative described the debilitating emotional and mental distress suffered by her loved one who had long known and trusted Kubiak to grow her small nest egg. In sentencing Kubiak, the Court emphasized the need for punishment and deterrence, both for Kubiak and for others who might be similarly tempted to prey upon the elderly.
“The victims in this case entrusted Kubiak with savings they had earned through honest, hard work over their lifetimes,” said U.S. Attorney Krueger. “Kubiak exploited that trust and now faces years in federal prison. Let this case be a warning to anyone who would prey on elderly members of our community.”
The charges against Kubiak were announced as part of the U.S. Department of Justice’s largest-ever nationwide elder fraud sweep on March 7, 2019. The case was investigated by detectives from the Waukesha County Sheriff Department and the Franklin Police Department and Special Agents from the United States Secret Service Financial Crimes Task Force. The case was prosecuted by Assistant United States Attorney Carol L. Kraft.
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Michael Mann Charged with Bank FraudRead the Press Release
ALBANY, NEW YORK – Michael T. Mann, age 49, of Saratoga County, New York, appeared in federal court today on a criminal complaint charging him with committing a $70 million bank fraud.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
According to the complaint (copy attached), Mann fraudulently obtained at least $70 million in loans from banks and other financial institutions. He created companies that had no purpose other than to be used in the fraud; fraudulently represented to banks and financing companies that his fake businesses had certain receivables that they did not have; and obtained loans and lines of credit by borrowing against these non-existent receivables. Mann began the fraudulent scheme in 2010 or 2011.
Mann operates MyPayrollHr, based in Clifton Park, New York.
Until this month, MyPayrollHR processed payroll and tax payments for approximately 1,000 small-business clients located across the country.
On September 5, 2019, MyPayrollHR suddenly ceased operations after Mann’s banks froze his accounts, suspecting him of fraud. This account freeze affected MyPayrollHR’s clients because, as part of the fraudulent scheme, Mann diverted clients’ payroll payments to a bank account he controlled.
The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Mann appeared today before United States Magistrate Judge Daniel J. Stewart. Mann was released on a financial bond and with pretrial supervision conditions.
If convicted of the charge set forth in the complaint, Mann faces up to 30 years in prison, a maximum $1 million fine, and up to 5 years of post-release supervision. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the FBI, with assistance from the New York State Attorney General’s Office, and is being prosecuted by Assistant U.S. Attorneys Michael Barnett and Cyrus P.W. Rieck.
The FBI continues to seek information from people and businesses who may have suffered financial loss due to the alleged activities of Mann, MyPayroll, and affiliated companies. Information can be sent to the FBI by filling out a form on the FBI’s web site, available at https://forms.fbi.gov/seeking-victim-information-in-mypayrollhr-investigation.
Merrimack Valley Operation Results in Arrest of 40 IndividualsRead the Press Release
BOSTON – Forty people have been charged with federal drug offenses, and at least a dozen more individuals face state charges, as part of a 10-week coordinated enforcement operation in the Merrimack Valley called “Devil’s Highway.”
The 10-week enforcement operation, which took place during the summer months, was a coordinated effort by federal, state, and local partners to focus on drug distribution activity in the City of Lawrence and between Lawrence and destinations in New Hampshire. The operation targeted the distribution of opioids, including fentanyl and heroin, and resulted in charges against a total of 40 people for federal drug offenses, with at least a dozen more individuals facing state charges. In total, Operation Devil’s Highway resulted in the seizure of more than 14 kilograms of fentanyl, five kilograms of heroin, 29 kilograms of cocaine, four firearms, and body armor.
“Operation Devil’s Highway was tremendously successful in targeting street-level drug trafficking in Lawrence, which is a hub of illegal drug distribution for all of New England,” said United States Attorney Andrew E. Lelling. “This kind of operation can only succeed with the full commitment of federal, state and local law enforcement agencies, coupled with realistic planning to target the most prolific drug distributors. This will not be the last time we target drug dealers in Lawrence or their customers from points north.”
“Operation Devil’s Highway should serve as a warning to others thinking of filling the void created by these arrests—we aren’t finished. Everyone arrested this summer allegedly exploited Lawrence as their drug-trafficking hub, bringing perilous opioids like fentanyl and heroin - in addition to cocaine and marijuana - to neighborhoods across New England,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “That’s why the FBI and our law enforcement partners will not relent in putting those distributors profiting from addiction and lawlessness out of business, so that the hometowns they harm might heal.”
“DEA’s top priority is combating the opioid epidemic by bringing to justice anyone who distributes deadly drugs,” said DEA Special Agent in Charge Brian D. Boyle. “Illegal drug distribution ravages the very foundations of our families and communities. These enforcement actions with our federal, state and local partners show what happens when law enforcement works together.”
“The scourge of addiction continues to be fueled by Transnational Criminal Organizations who flood the streets of our commonwealth with poison. Motivated only by profit, we know all too well, that tackling this complex threat involves a united, comprehensive strategy and an aggressive approach by multiple entities across all levels of government,” said Jason J. Molina, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Boston. “The results of this operation should send a clear message that HSI Special Agents remain committed to combating the opioid crisis by pursuing traffickers at every level of the supply chain.”
The majority of criminal charges resulted from weekly “sweeps” in the City of Lawrence that targeted individuals distributing opioids. The enforcement actions brought together 40-60 federal, state, and local officers from Massachusetts and New Hampshire each week to conduct surveillance, investigate and arrest defendants.
During the operation, the following defendants were arrested on federal charges:
- Jason Medlen, 32, of Lisbon Falls, Maine, charged with conspiracy to possess with intent to distribute 40 grams or more of fentanyl and possession with intent to distribute 40 grams or more of fentanyl;
- Louis Delvecchio, 51, of Brunswick, Maine, charged with conspiracy to possess with intent to distribute 40 grams or more of fentanyl and possession with intent to distribute 40 grams or more of fentanyl;
- Santos Obispo Guerrero Lara, 35, of Lawrence, charged with possession with intent to distribute fentanyl;
- Douglas “Sunny” Grasso, 34, of Georgetown, charged with conspiracy to distribute fentanyl and possession with intent to distribute 40 grams or more of fentanyl;
- Brian Brea, 35, of Lawrence, charged with conspiracy to distribute fentanyl and possession with intent to distribute 40 grams or more of fentanyl;
- Enel Alfredo Mendez Aquino, 29, of Lawrence, charged with distribution of fentanyl and cocaine;
- Jorge Alexander Andujar Romero, 29, of Lawrence, charged with distribution of and possession with intent to distribute fentanyl;
- Edward Jesis Mar Carmona Ortiz, 42, of Lawrence, charged with possession with intent to distribute fentanyl;
- Steven de Jesus de Leon Trinidad, 22, of Lawrence, charged with distribution and possession with intent to distribute a heroin/fentanyl mix;
- Luis Felix Franco Herrera, 21, of Lawrence, charged with distribution of and possession with intent to distribute fentanyl;
- Jose Rodriquez-Walker, 32, of Lawrence, charged with possession with intent to distribute fentanyl, cocaine, and cocaine base;
- Johanny Mejia-Nunez, 43, of Philadelphia, Penn., charged with possession with intent to distribute 400 grams or more of fentanyl;
- Ronyel Pena, 18, of Lawrence, charged with conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl;
- Jose Martinez, 24, of Lawrence, charged with conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl, and being a felon in possession of firearms and ammunition;
- Ysrael Nunez, 37, of Lawrence, charged with conspiracy to distribute and possession with intent to distribute 400 grams or more of fentanyl; distribution of and possession with intent to distribute fentanyl; distribution of and possession with intent to distribute 400 grams or more of fentanyl; and aiding and abetting;
- William Cabrera, 30, of Lawrence, charged with distribution of and possession with intent to distribute heroin; and possession with intent to distribute heroin and oxycodone;
- Oscar Guadalupe Martinez, 37, of North Andover, charged with conspiracy with intent to distribute and distribution of 1 kilogram or more of heroin;
- Stiven Torres Martinez, 21, of North Andover, charged with conspiracy with intent to distribute and distribution of 1 kilogram or more of heroin;
- Jason Jimenez, 24, of Bronx, N.Y., charged with possession with intent to distribute over 40 grams of fentanyl;
- Milton Elias Lara, 42, of Lawrence, charged with distribution of and possession with intent to distribute 40 grams or more of fentanyl;
- Alexsander Padro, 28, of Methuen, charged with possession with intent to distribute and distribution of heroin and 40 grams or more of fentanyl;
- John Mena, 24, of Lawrence, charged with possession with intent to distribute and distribution of 10 grams or more of fentanyl;
- Yunior Darismir Prandys Torres, 22, of Lawrence, charged with conspiracy to possess with intent to distribute and to distribute a controlled substance, to wit, fentanyl;
- Juan Perez Diaz, 22, of Lawrence, charged with conspiracy to possess with intent to distribute and to distribute a controlled substance, to wit, fentanyl;
- Jose Ventura, 37, of Lawrence, charged with distribution of and possession with intent to distribute 10 grams or more of fentanyl;
- Leisy Baez-Zapata, 21, of Lawrence, charged with conspiracy to distribute and possession with intent to distribute 400 grams or more of fentanyl; distribution of and possession with intent to distribute 400 grams or more of fentanyl; and aiding and abetting;
- Erick Alberto Paulino Amador, 28, of Lawrence, charged with possession with intent to distribute and distribution of fentanyl;
- Bernardito Carvajal, 28, of Haverhill, charged with possession with intent to distribute fentanyl;
- Alfredo Rivera, 31, of Haverhill, charged with possession with intent to distribute fentanyl;
- Julio Esthil-Cifre, 30, of Lawrence, charged with possession with intent to distribute fentanyl;
- Edgar Castro, 45, of Revere, charged with conspiracy to distribute and to possess with intent to distribute 5 kilograms or more of cocaine;
- Julio Ortiz 47, of Boston, charged with conspiracy to distribute and to possess with intent to distribute 5 kilograms or more of cocaine;
- Crishanty Aybar Arias, 22, of Lawrence, charged with possession with intent to distribute fentanyl;
- Cesar Lara Castillo, 36, of Lawrence, charged with possession with intent to distribute a Schedule I controlled substance; false representation of social security number, and aggravated identity theft;
- Santiago Rubel Guerrero Tejeda, 22, of Lawrence, charged with possession with intent to distribute and distribution of fentanyl;
- Jesus Maria Aybar Franco, 34, of Lawrence, charged with distribution and possession with intent to distribute fentanyl;
- Marino Amador Baez, 34, of Lawrence, charged with possession with intent to distribute fentanyl;
- Willin Arias-Castillo, 35, of Lawrence, charged with possession with intent to distribute fentanyl.
- Julio Cruz, 21, of Lawrence, charged with possession with intent to distribute and distribution of fentanyl;
- Jonathan Marquez, 32, of Lawrence, charged with distribution of fentanyl.
The federal charge of drug distribution provides for a sentence of up to 20 years in prison, at least three years of supervised release and a $1 million fine. The charge of distribution of 40 grams or more of fentanyl provides for a minimum of five years and up to 40 years in prison, at least four years and up to a lifetime of supervised release and a $5 million fine. Charges of distribution of 400 grams or more of fentanyl and distribution of five kilograms or more of cocaine each provide for a minimum of 10 years and up to life in prison, at least five years and up to a lifetime of supervised release and a $10 million fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Lelling, FBI Boston SAC Bonavolonta, DEA Boston SAC Boyle and HSI Boston Acting SAC Molina made the announcement today. Valuable assistance was provided by the Massachusetts State Police and New Hampshire State Police; the Lawrence Police Department; the Andover, Billerica, Boston, Braintree, Chelsea, Concord, Dartmouth, Dover (N.H.), Franklin, Haverhill, Lowell, Manchester (N.H.), Methuen, Milton, Nashua (N.H.), North Andover, Peabody, Portsmouth (N.H.), Reading, Waltham, Watertown, and Woburn Police Departments; Massachusetts Department of Corrections; New Hampshire Department of Corrections; and Essex, Norfolk and Suffolk County Sheriff’s Departments.
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.
Manderson Man Charged with Assaulting a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that a Manderson, South Dakota, man has been indicted by a federal grand jury for Assaulting a Federal Officer.
Jacob Harvey, age 21, 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 Harvey kicking an officer in the hand, ribs, and knee on August 2, 2019, near Pine Ridge.
The charge is merely an accusation and Harvey 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.
Harvey was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for November 19, 2019.
Man Pleads Guilty to Straw Purchasing Five FirearmsRead the Press Release
ALEXANDRIA, Va. – A Maryland man pleaded guilty today to aiding and abetting the straw purchase of multiple firearms.
According to court documents, between July and September 2018, Lawrence Paul Chambers, 21, of Silver Spring, aided and abetted the straw purchase of five firearms from federal firearm licensees in the Eastern District of Virginia by providing a woman he was dating money and counsel to illegally purchase firearms on his behalf. Police in Washington, D.C. recovered one of the illegally purchased firearms from a co-conspirator, 11 days after it was straw purchased.
Chambers pleaded guilty to making false statements with respect to the purchase of firearms and faces a maximum penalty of five years in prison when sentenced on Jan. 24, 2020. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after U.S. District Judge Liam O’Grady accepted the plea. Assistant U.S. Attorney Nicholas U. Murphy II and Special Assistant U.S. Attorney Annie Zanobini are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-285.
Maine Man Charged with Attempted Sex Offenses Against a MinorRead the Press Release
ALBANY, NEW YORK – Jay Scott Cloutier, age 56, of Lyman, Maine, was charged today with attempting to entice and coerce a minor into committing criminal sex acts and traveling in interstate commerce for the purpose of meeting a minor for sex.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
According to a criminal complaint, Cloutier used a social networking and online dating application, text messages and phone calls to attempt to entice and coerce an individual whom he believed to be a 14- or 15-year-old boy to engage in various sexual acts with him, and he traveled from Maine to Colonie, New York, with the motivating purpose of engaging in such sexual acts with the boy. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Cloutier appeared today in Albany before United States Magistrate Judge Daniel J. Stewart, and was detained pending further proceedings.
If convicted, Cloutier faces a mandatory minimum of 10 years and up to life in prison on the enticement charge and up to 30 years in prison on the traveler charge, a fine of up to $250,000, per charge, and a term of post-imprisonment supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the FBI and its Child Exploitation Task Force, and is being prosecuted by Assistant U.S. Attorney Alicia Giglio Suarez.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Madison Township Man Sentenced to Home Confinement for Stealing from Tobyhanna Army DepotRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Timothy Scheitlan, age 43, of Madison Township, Pennsylvania, was sentenced on September 20, 2019, to six months home confinement, by United States District Court Judge A. Richard Caputo for stealing money from Tobyhanna Army Deport. Judge Caputo also ordered Scheitlan to pay restitution in the amount of $95,000.
According to United States Attorney David J. Freed, Scheitlan previously pleaded guilty to stealing over $95,000 from Tobyhanna Army Depot between 2014 and 2017, and admitted that during the course of his employment, he removed money from vending machines for his own personal use. The money that Scheitlan stole from the vending machines is used to provide recreational facilities to military personnel.
The case was investigated by the U.S. Army Criminal Investigation Division. Assistant United States Attorney Jenny P. Roberts prosecuted the case.
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Lower Brule Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that a Lower Brule, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance was sentenced on September 10, 2019, by U.S. District Judge Roberto A. Lange.
Teresa Jandreau, age 40, was sentenced to 64 months in federal prison, followed by 4 years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Jandreau was indicted by a federal grand jury on September 11, 2018. She pled guilty on May 28, 2019.
Beginning at a time unknown, but no later than December 1, 2015, through September 11, 2018, Jandreau knowingly and intentionally conspired with others to distribute methamphetamine in the District of South Dakota, in and around the Crow Creek and Lower Brule Sioux Indian Reservations. The conspiracy involved over 500 grams of methamphetamine that was supplied by Frank “Tank” Adams from St. Paul, Minnesota. Adams was recently found guilty of Conspiracy to Distribute Methamphetamine following a jury trial.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force, the Bureau of Indian Affairs Crow Creek and Lower Brule Agencies and the Pierre Police Department. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Jandreau was immediately turned over to the custody of the U.S. Marshals Service.
Lawrence Man Sentenced to 60 Months for Distributing FentanylRead the Press Release
CONCORD - Anthony Cabrera, 27, of Lawrence, was sentenced to 60 months for distribution of fentanyl, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on March 12, 2019, the defendant traveled from Massachusetts to New Hampshire and sold approximately 49 grams of fentanyl to an undercover officer in Salem, New Hampshire.
Cabrera previously pleaded guilty on June 6, 2019.
“Interstate fentanyl trafficking threatens the health and safety of people throughout New Hampshire,” said U.S. Attorney Murray. “This conduct clearly merits the imposition of substantial prison sentences. We will continue to work closely with our law enforcement partners to investigate, prosecute, and incarcerate those who are responsible for distributing this deadly drug.”
“The state of New Hampshire is faced with a fentanyl crisis unlike ever before,” said DEA Special Agent in Charge Brian D. Boyle. “Those responsible for distributing lethal drugs like fentanyl to the citizens of New Hampshire need to be held accountable for their actions. DEA will aggressively pursue Drug Trafficking Organizations and individuals who are coming from out of state to distribute this poison in order to profit and destroy people’s lives.”
This matter was investigated by the Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorney Anna Krasinski.
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Las Vegas Businessman Sentenced to Three Years in Prison for Role in $28 Million Tax Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – A Las Vegas businessman who pleaded guilty to committing a $28 million tax fraud conspiracy was sentenced today to three years in federal prison, announced United States Attorney Nicholas A. Trutanich of the District of Nevada and Special Agent in Charge Tara Sullivan for the IRS-Criminal Investigation.
Ramon Desage, 69, was charged by a second superseding indictment on February 11, 2014. On August 31, 2018, Desage pleaded guilty to one count of conspiracy to defraud the United States as charged in the second superseding indictment.
Today, in addition to the prison term, United States District Judge Jennifer A. Dorsey ordered Desage to pay $28,221,767 in restitution to the IRS and sentenced him to three years of supervised release upon his release from prison.
Desage admitted as part of his plea that, from about January 1, 2006, through about October 20, 2010, he conspired with his bookkeeper, co-defendant Gary Parkinson, and tax preparer, co-defendant Peter Akaragian, to cause fraudulent federal income tax returns to be filed for himself and his entities for tax years 2006, 2007, 2008, and 2009. According to court documents, Desage omitted tens of millions of dollars in income from his returns and created false business deductions to further avoid paying his income taxes. The false deductions that Desage and his co-conspirators claimed in the returns reclassified personal expenses as business expenses. Thus, they claimed fraudulent deductions for luxury car purchases, houses, jewelry, repayment of millions in gambling debts, private plane air travel, home improvements, and lavish gifts for Desage’s girlfriends and acquaintances. Desage’s outstanding tax due was approximately $28.2 million for tax years 2006 through 2009.
Akaragian pleaded guilty and was sentenced in October 2018, and Parkinson is scheduled to begin a jury trial in January 2020. The charges against Parkinson merely are allegations and he is presumed innocent unless and until proven guilty.
The case was investigated by IRS-Criminal Investigation. Assistant United States Attorney Patrick Burns prosecuted the case.
Knox County Man Pleads Guilty to Illegally Distributing Prescription PillsRead the Press Release
LONDON, Ky.- A Flat Lick, Kentucky man, Jerry “Rabbit” Cox, 70, admitted to drug trafficking in federal court on Monday.
Cox pled guilty to distributing a quantity of pills containing oxycodone and hydrocodone, before U.S. Magistrate Judge Hanly A. Ingram. Cox admitted to selling oxycodone 30 mg pills to an informant on April 17, 2018, from his residence in Knox County, and hydrocodone pills from his business in Knox County on April 26, 2018.
Cox was indicted in June 2019.
Robert M. Duncan Jr., U.S. Attorney for the Eastern District of Kentucky, Daniel Dodds, acting Special Agent in Charge, DEA Louisville Field Division, and Commissioner Richard W. Sanders, Kentucky State Police, jointly announced the guilty plea.
The investigation was conducted by the Drug Enforcement Administration and the Kentucky State Police. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Jason D. Parman.
A sentencing date has not yet been set. He faces up to 20 years in prison and a maximum fine of $1 million. However, any sentence will be imposed by the Court after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
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Inmate Sentenced to 20 Years for Distributing Drugs and Cell Phones in State Prison by Bribing an OfficerRead the Press Release
NEWS RELEASE SUMMARY – September 23, 2019
SAN DIEGO – Martin Gomez of California was sentenced in federal court today to 240 months in prison for leading a conspiracy to smuggle methamphetamine, heroin, marijuana, and cell phones through a Corrections Officer into a state prison.
Gomez had previously pleaded guilty to Conspiracy to Distribute Methamphetamine pursuant to a plea agreement, after being indicted with 10 other co-conspirators.
One co-defendant, Juan Gutierrez, charged in the conspiracy remains awaiting trial, which is scheduled for January 21, 2020. The trial was continued from May 2019 after Gutierrez struck his own attorney in open court during a status hearing just prior to his trial.
From his cell in a California state prison in Los Angeles, Gomez organized and directed a group of at least 11 other participants to smuggle contraband into a different state prison, Richard J. Donovan (“RJD”), in San Diego. Gomez arranged for individuals outside of prison to deliver the drugs and cell phones to a Corrections Officer, Anibal Navarro. He then instructed Navarro to collect the contraband and money, and deliver the contraband to certain inmates inside the prison. Gomez directed those inmates to retrieve the contraband and deliver it to other inmates within RJD.
Gomez approached Navarro while an inmate at RJD, offering him an avenue to make extra money Gomez knew Navarro needed. Navarro was paid between $1,000 and $2,000 each time he smuggled the contraband into the prison. Even after Gomez was transferred out of RJD to another prison, Gomez led the conspiracy for over two years. Over 500 grams of methamphetamine, heroin, cell phones, and other contraband were smuggled into RJD at Gomez’s direction while he was incarcerated elsewhere.
Gomez was able to continue coordinating and supervising the operation by conducting conference calls with Sylvia Gonzales, Gomez’s associate outside the prison, Navarro, and others. During these calls, the conspirators arranged for narcotics, cellular telephones and cash to be delivered to Navarro at various locations in Southern California.
In addition to Gonzales, the smuggling operation was also aided by others outside the prison, including Everaldo Santana, Norma Alvarado-Medina and Vanessa Jackson. These individuals provided Navarro with the narcotics and cellular telephones to smuggle into the prison.
After the contraband was smuggled into the prison, RJD inmates Agustin Aceves, Juan Gutierrez, John Price, Jeremy Gaither and Hugo Alvarado received and distributed the narcotics and cellular telephones to other inmates. The phones were used to coordinate criminal activity both inside and outside the facility.
“This defendant personally profited from a corrupt drug smuggling scheme that significantly interfered with the rehabilitation of his fellow inmates,” said U.S. Attorney Robert S. Brewer, Jr. “He also created a dangerous prison environment by providing cell phones, which can result in drug trafficking, fraud, and even violence. This sentence signals that justice does not stop at the prison gate; those who engage in prison corruption will face significant consequences.”
With the exception of Gutierrez, Gomez’s codefendants have all pleaded guilty. They have been sentenced as follows.
Sylvia Gonzales was convicted of Conspiracy to Commit Honest Services Wire fraud, and sentenced to five years’ probation.
Everaldo Santana was convicted of Conspiracy to Commit Honest Services Wire Fraud, and sentenced to time-served, with three years’ supervised release.
Agustin Aceves was convicted of Conspiracy to Distribute Methamphetamine, and sentenced to 151 months incarceration, to run 50% concurrent and 50% consecutive to his state case, followed by five years’ supervised release.
Norma Alvarado-Medina was convicted of Conspiracy to Distribute Methamphetamine, and sentenced to 41 months, with three years’ supervised release to follow.
John Price was convicted of Conspiracy to Distribute Methamphetamine and Heroin, and was sentenced to 51 months incarceration, to run 50% concurrent and 50% consecutive with his state case, followed by four years’ supervised release.
Vanessa Jackson was convicted of Conspiracy to Distribute Methamphetamine, and sentenced to 30 months, to be followed by four years of supervised release.
Hugo Alvarado was convicted of Conspiracy to Commit Honest Services Wire Fraud, and sentenced to 18 months to run concurrent with his state sentence, with three years of supervised release to follow.
Edgar Arreguin was convicted of Conspiracy to Commit Honest Services Wire Fraud, and sentenced to time served with three years’ supervised release.
The FBI encourages the public to report allegations of public corruption to our hotline at (877) NO-BRIBE (662-7423).
DEFENDANTS Case No. 17cr0446-AJB
MARTIN GOMEZ Age 58 Lancaster Prison
SYLVIA GONZALES Age 59 Sylmar, California
EVERALDO SANTANA Age 27 Los Angeles, California
AGUSTIN ACEVES Age 45 Lancaster Prison
NORMA ALVARADO-MEDINA Age 36 Al Monte, California
JUAN GUTIERREZ Age 44 Vacaville, California
JOHN PRICE Age 23 Salinas Valley Prison
VANESSA JACKSON Age 42 Pasadena, California
JEREMY GAITHER Age 35 Valley State Prison
HUGO ALVARADO Age 27 High Desert Prison
EDGAR ARREGUIN Age 44 Lemon Grove, California
DEFENDANTS Case No. 16cr1664-AJB
ANIBAL NAVARRO Age 40 Chula Vista, California
SUMMARY OF CHARGES
Conspiracy to Distribute Illegal Narcotics – Title 21, U.S.C., Sections 841(a) and 846
10-year mandatory minimum
Maximum penalty: Life in prison and $20,000,000 fine
AGENCY
Federal Bureau of Investigation – San Diego Field Office
California Department of Corrections and Rehabilitation’s Office of Internal Affairs
California Department of Corrections and Rehabilitation’s Investigative Service Unit
United States Postal Service – Inspector Service
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Inland Empire Man Pleads Guilty to Federal Narcotics Charges for Stealing Doctors’ IDs to Obtain Medication to Sell on the Dark-netRead the Press Release
LOS ANGELES – A Riverside County man pleaded guilty today to two federal drug trafficking charges, one of which involves the theft of at least nine doctors’ DEA numbers and dates of birth that he used to obtain oxycodone and other prescription medications that he later sold on the dark-net.
Christopher Lazenby, 29, of Homeland, pleaded guilty to a two-count criminal information charging him with possessing with intent to distribute methamphetamine and oxycodone.
According to his plea agreement, Lazenby perpetrated his scheme by stealing the identities of at least nine doctors and one physician’s assistant, which allowed him to use the Drug Enforcement Administration’s online registration system to change the addresses of eight doctors to mailboxes he had rented in South Los Angeles and Carson. Lazenby changed the address of a ninth doctor to show his medical office was a room at a Motel 6 in Inglewood, according to an affidavit filed with the criminal complaint in the case.
With official records showing new addresses for the doctors, Lazenby – who used the aliases “Jamey Neher,” “Bryan Sheldon,” and “Colin Bohlinger” – forged the doctors’ signatures on counterfeit prescriptions and ordered oxycodone, hydrocodone and Adderall to be sent to the addresses he controlled, the plea agreement states. Lazenby admitted that after he received the narcotics, he used the dark web and Craigslist to advertise the drugs for sale.
Lazenby was arrested on October 3, 2018 at his hotel room in Torrance, which he had rented using an alias, the plea agreement states. During searches of his hotel room and car, law enforcement seized narcotics including 196 grams of methamphetamine, oxycodone pills, prescription pads in the names of the identity theft victim doctors, rubber stamps in the names of ID theft victim doctors (which Lazenby used to fraudulently sign the counterfeit prescriptions), and computer equipment, according to the plea agreement.
United States District Judge Stephen V. Wilson scheduled a February 10, 2020 sentencing hearing, at which time Lazenby will face a statutory maximum sentence of life in federal prison and a mandatory minimum sentence of 10 years in federal prison.
This matter was investigated by the Drug Enforcement Administration.
This case is being prosecuted by Assistant United States Attorney Benjamin R. Barron, chief of the Santa Ana Branch Office.
Illegal Alien sentenced for reentry chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Omar Antonio Murillo-Bonilla, a citizen of Honduras, was sentenced to time served for an immigration violation, United States Attorney Bill Powell announced.
Murillo-Bonilla, age 32, pled guilty to one count of “Reentry of Removed Aliens” earlier this month. Murillo-Bonilla admitted to reentering the country illegally after be removed twice before. The crime allegedly occurred in August 2019 in Jefferson County.
Assistant U.S. Attorney Jeffrey A. Finucane prosecuted the case on behalf of the government. The Department of Homeland Security Immigrations and Customs Enforcement and the Jefferson County Sheriff’s Office investigated.
Chief U.S. District Judge Gina M. Groh presided.
Honduran National Sentenced to Prison for His Involvement in National Conspiracy to Sell Identity Documents to Illegal AliensRead the Press Release
A Honduran national was sentenced to 33 months in prison today for his role in a scheme to sell the identities of Puerto Rican U.S. citizens and corresponding identity documents to individuals illegally residing in the United States.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Rosa E. Rodríguez-Vélez of the District of Puerto Rico, Acting Director Matthew T. Albence of U.S. Immigration and Customs Enforcement (ICE) and Chief Postal Inspector Gary R. Barksdale of the U.S. Postal Inspection Service made the announcement.
Jose Armando Pavon Salazar (Pavon), 37, a citizen of Honduras, was sentenced by U.S. District Judge Gustavo A. Gelpi of the District of Puerto Rico, who also ordered Pavon to serve three years of supervised release. Pavon pleaded guilty on June 4, to one count of conspiracy to encourage an alien to reside in the United States for financial gain. Pavon was also ordered removed from the United States upon completion of his prison sentence. Pavon was arrested in El Salvador in January 2018 and extradited to the United States on Nov. 28, 2018. Before his arrest and extradition, Pavon had been a fugitive since March 22, 2012, when a federal grand jury sitting in the District of Puerto Rico returned a 50-count superseding indictment charging Pavon and 52 other defendants with offenses involving a massive identity fraud scheme.
According to the admissions made in connection with his guilty plea, Pavon and his co-conspirators participated in a scheme to encourage illegal aliens to reside in the United States for financial gain. To accomplish the scheme, Pavon and his co-conspirators sold government-issued identity documents, including Government of Puerto Rico-issued birth certificates and corresponding U.S. social security cards (identity documents). Pavon and his co-conspirators knew these documents pertained to real people. Pavon admitted that the documents were sold to illegal aliens so they could assume the identities of Puerto Rican U.S. citizens, and/or fraudulently apply for other identity documents in that person’s name in order to reside in the United States.
Pavon paid his supplier approximately $400 for the identify documents, consisting of a Puerto Rican birth certificate and a social security card. The supplier would then use the U.S. mail to send the documents to Pavon. To date, dozens of persons have been convicted in connection with the scheme.
ICE’s Homeland Security Investigations (HSI) Chicago and the U.S. Postal Inspection Service led the investigation with assistance from HSI San Juan, Puerto Rico. The HSI Attaché Office in the El Salvador along with El Salvador’s Transnational Criminal Investigative Unit provided invaluable support, with assistance from ICE and U.S. Postal Inspection Service offices around the country.
Trial Attorney Frank Rangoussis of the Criminal Division’s Human Rights and Special Prosecutions Section prosecuted this case with assistance from the U.S. Attorney’s Office for the District of Puerto Rico. The Criminal Division’s Office of International Affairs handled the extradition in this matter.
Potential victims and the public may obtain information about the case at: www.justice.gov/criminal/vns/caseup/beltrerj.html. Anyone who believes their identity may have been compromised in relation to this investigation or who may have information about particular crimes in this case should call the ICE toll-free hotline at 1-866-DHS-2ICE (1-866-347-2423) or use its online tip form at www.ice.gov/tipline.
Anyone who believes that they have been a victim of identity theft, or wants information about preventing identity theft, may obtain helpful information and complaint forms on various government websites including the Federal Trade Commission ID Theft Website at www.ftc.gov/idtheft. Additional resources regarding identity theft can be found at www.ojp.usdoj.gov/ovc/pubs/ID_theft/idtheft.html, www.ssa.gov/pubs/10064.html and www.irs.gov/privacy/article/0,,id=186436,00.html.
Hartford Man Pleads Guilty to Heroin Distribution and Firearm Possession OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that RAFAEL ARROYO, 34, of Hartford, pleaded guilty today in Hartford federal court to narcotics distribution and firearm possession offenses.
According to court documents and statements made in court, on July 26, 2018, a court-authorized search of Arroyo’s Broad Street apartment revealed approximately 400 bags of packaged heroin, a distribution quantity of cocaine, a Star S.A. 9mm semiautomatic pistol, an H&R “Sportsman” .22 caliber long rifle revolver, a Group Industries 9mm firearm, assorted ammunition, and three bulletproof vests.
Arroyo pleaded guilty to one count of possession with intent to distribute heroin and cocaine, which carries a maximum term of imprisonment of 20 years, and one count possession of firearms in furtherance of a drug trafficking crime, which carries a mandatory consecutive sentence of at least five years. He is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson on December 18, 2019.
Arroyo’s criminal history includes state felony convictions for drug and firearm offenses. Arroyo has been detained since his arrest on July 26, 2018.
This matter has been investigated by the Hartford Police Department and the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force. The case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Harrison County woman sentenced for firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Teressa Hall, of Bristol, West Virginia, was sentenced today to 36 months incarceration for a firearms charge, United States Attorney Bill Powell announced.
Hall, age 34, pled guilty to one count of “Use of a Firearm During and in Relation to a Drug Offense” in February 2019. Hall admitted to having a .380 caliber semi-automatic pistol with her when in possession of methamphetamine in December 2017 in Harrison County.This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated. The United States Marshal Service assisted in the arrests.
The investigation was funded in part 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.
Hamilton pain clinic doctor pleads guilty to running pill millRead the Press Release
CINCINNATI – The owner and operator of a Hamilton pain clinic pleaded guilty in U.S. District Court today to illegal distribution of controlled substances, health care fraud and violating the anti-kickback statute.
Nilesh Jobalia, 54, of Cincinnati, entered a guilty plea before U.S. District Judge Susan J. Dlott.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio; Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General; Ohio Attorney General Dave Yost; Anthony Groeber, Executive Director, State Medical Board of Ohio; Steven Schierholt, Executive Director, State of Ohio Board of Pharmacy; and Stephanie B. McCloud, Administrator, Ohio Bureau of Workers Compensation, announced the plea.
“Today Dr. Jobalia accepted responsibility for trafficking drugs by means of a prescription pad, health care fraud, and receiving kickbacks,” U.S. Attorney Glassman said. “He faces a substantial term of imprisonment for his crimes.”
According to court documents, Jobalia owned and operated Cincinnati Centers for Pain Relief in Hamilton, Ohio from March 2013 through December 2017. Although the practice was not licensed as such, it operated almost exclusively as a pain clinic.
Patients were prescribed fentanyl, oxycodone, methadone, morphine and other controlled substances on many occasions without actually being seen by the doctor.
Jobalia’s practice also billed Medicare, Medicaid and the Bureau of Workers’ Compensation for medically unnecessary prescriptions and services not rendered.
For example, prescriptions to one customer alone caused the Bureau of Workers’ Compensation to pay more than $450,000 for medically unnecessary drugs. In total, Jobalia caused more than $2 million in false claims.
“Our investigators started looking at Dr. Jobalia in 2015 for suspicious prescribing, and we’re pleased to see this case come to a just end,” said BWC Administrator/CEO Stephanie McCloud. “Even more so, we’re pleased to see him out of practice and out of the BWC system. Our injured workers are better off.”
Jobalia also received more than $103,000 from a pharmaceutical company for purported speaking engagements about a fentanyl spray, a medication intended for breakthrough cancer pain.
The speaking engagements were actually sham programs, though, in which many attendees were not medical professionals permitted to prescribe the fentanyl spray. Usually, Jobalia, some of his staff and the pharmaceutical sales representative were the only people present at the engagements, which were held at fine dining restaurants in the Cincinnati area.
Jobalia was indicted by a federal grand jury in June 2018.
As part of his plea agreement, the parties involved in his case are recommending a sentence range of 78 to 144 months in prison.
“This pain relief clinic was nothing more than a front for hard drug handouts,” Ohio Attorney General Dave Yost said. “Shutting the operation down is a big win for a region that’s been hit especially hard by the opioid crisis.”
“I applaud the dedication of our agents in helping to secure this conviction,” said State of Ohio Board of Pharmacy Executive Director Schierholt. “The coordination among agencies demonstrates the importance of collaboration in addressing the criminal activity fueling Ohio’s drug epidemic.”
U.S. Attorney Glassman commended the investigation by the HHS-OIG, Ohio Medical and Pharmacy boards, Bureau of Workers’ Compensation and Ohio Attorney General’s Medicaid Fraud Control Unit, as well as Assistant United States Attorneys Maritsa Flaherty and Salvador A. Dominguez, who are prosecuting the case.
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Girl’s Softball Coach Indicted for Transportation of A Minor with Intent to Engage in Criminal Sexual ActivityRead the Press Release
SAN JUAN, Puerto Rico – A federal grand jury returned a one-count indictment against Dennis Cotto-Alvarado for transporting a female minor with the intent to engage criminal sexual conduct, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Cotto-Alvarado was the coach of girls’ softball team called “Las Maratonistas de Coamo.”
The FBI is in charge of the investigation with the collaboration of the Puerto Rico Police Department and the Puerto Rico Department of Justice.
The indictment charges that from in or about June 2017 through February 2019, Cotto-Alvarado transported a 13-year-old female minor with the intent that the minor engage in unlawful sexual activity for which a person can be charged with a criminal offense under Puerto Rico law, all in violation of Title 18, United States Code, Section 2423(a).
The case is being prosecuted by Special Assistant U.S. Attorney Cristina Caraballo. If convicted, the defendant faces a mandatory minimum sentence of incarceration of ten years and a possible maximum statutory penalty of life imprisonment.
A criminal indictment contains only charges and is not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
Gang Member Sentenced to 37 Months in Federal Prison for Distributing Fentanyl and Heroin in HartfordRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that CRUZ FERNANDEZ, also known as “Blood,” 28, of Hartford, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 37 months of imprisonment, followed by three years of supervised release, for distributing fentanyl and heroin.
According to court documents and statements made in court, this matter stems from an investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department’s Vice and Narcotics Division targeting gang violence and narcotics trafficking in Hartford. The investigation revealed that Wilson Velez, also known as “Wiso,” a member of the Almighty Latin Kings Nation (“Latin Kings”), was distributing heroin and fentanyl. Velez employed family members and other Latin Kings members and associates to process, package and distribute the drugs from apartment buildings on Hamilton Street and Elliot Street in Hartford. During the investigation, law enforcement conducted multiple controlled purchases of narcotics from Velez and other members of the drug trafficking organization.
Fernandez, who is originally from New York, is a member of the Bloods, not the Latin Kings. He relocated to Springfield, Massachusetts, and then to Hartford, where he began distributing fentanyl/heroin that he had acquired from Velez and other Latin Kings members.
At the time of the offense, Fernandez was on probation following a heroin related arrest in Springfield.
On May 1, 2018, a grand jury returned a 41-count indictment charging Velez, Fernandez and eight other members and associates of the Latin Kings. Fernandez was arrested on May 7, 2018. On February 26, 2019, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and distribution of, heroin and fentanyl.
Velez was arrested on federal narcotics offenses on December 7, 2017, and was subsequently released on bond. He has been detained since April 5, 2018, when his bond was revoked. On February 22, 2019, he pleaded guilty to one count of conspiracy to distribute one kilogram or more of heroin and/or 400 grams or more of fentanyl, and one count of conspiracy to use and carry a firearm in relation to, and furtherance of, a drug trafficking crime. He awaits sentencing.
The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
This case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Fort Pierre Woman Indicted on Conspiracy ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Fort Pierre, South Dakota, woman has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance.
Tiffany Kay Frazier, n/k/a Tiffany Kay Castiglione, age 26, was indicted on September 10, 2019. She appeared before U.S. Magistrate Judge Mark A. Moreno on September 17, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 40 years in prison and/or a $5,000,000 fine, at least 4 years of supervised release, and $100 to the Federal Crime Victims Fund for each Count. Restitution may also be ordered.
The Indictment alleges that beginning at a time unknown, but no later than on or about the 1st day of January 2017, and continuing to on or about September 10, 2019, in the District of South Dakota and elsewhere, Castiglione knowingly and intentionally, combined, conspired, confederated, and agreed with persons known and unknown, to knowingly and intentionally distribute and possess with intent to distribute 50 grams or more of methamphetamine.
The charge is merely an accusation and Castiglione is presumed innocent until and unless proven guilty.
The investigation is being conducted by Pierre Police Department and the Northern Plains Safe Trials Drug Enforcement Task Force. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Castiglione was released on bond pending trial. A trial date has not been set.
Former Pawtucket Man Sentenced for Trafficking Crack Cocaine After Release from State PrisonRead the Press Release
PROVIDENCE – A former Pawtucket man who, while incarcerated in the Rhode Island Adult Correctional Institutions (ACI), made arrangements for the disposal of a firearm stored at his residence, and within six weeks of his release from state prison in April 2019 was arrested for twice selling crack cocaine to an undercover law enforcement officer who lived in Massachusetts, was sentenced today to 5 years in federal prison.
Shortly after his release from the ACI on April 11, 2018, Ricardo Dominquez, 24, contacted the same undercover out-of-state law enforcement officer that purchased his firearm and offered to sell him crack cocaine. Dominquez was arrested on May 22, 2018, for twice selling crack cocaine to the law enforcement officer.
Dominquez pleaded guilty on April 12, 2019, to two counts of distribution of 28 grams or more of cocaine base. He was sentenced today by U.S. District Court Chief Judge William E. Smith to 60 months in federal prison to be followed by 4 years of supervised release.
Gary Pagnozzi, 60, of Pawtucket, admitted to selling Dominquez’s .44 caliber revolver along with 3.5 grams of crack cocaine to the undercover law enforcement officer on April 5, 2018. Dominquez had called Pagnozzi from inside the ACI and asked him to retrieve and sell the firearm. He sold it that same day for $500 along with 3.5 grams of crack cocaine for $200.
Pagnozzi was sentenced by U.S. District Court Judge John J. McConnell, Jr., on September 12, 2019, to one year and a day in federal prison, to be followed by three years supervised release, the first six months to be served in a Pawtucket residential reentry center.
Dominquez and Pagnozzi’s sentences are announced by United States Attorney Aaron L. Weisman and Special Agent in Charge of the Boston Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Kelly D. Brady.
The cases were prosecuted by Assistant U.S. Attorney Milind M. Shah. The matters were investigated by ATF and the Rhode Island ATF Task Force.
United States Attorney Aaron L. Weisman thanks the Department of Corrections for their assistance in the investigation of Ricardo Dominquez and Gary Pagnozzi.
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Former Investment Banker Convicted at Trial for Insider Trading SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that SEAN STEWART, a former senior investment banker at two different New York-based investment banks, was convicted after a seven-day trial for illegally tipping his father, Robert Stewart, with material non-public information concerning five separate corporate acquisitions before they were publicly announced. U.S. District Judge Jed S. Rakoff presided over the trial.
Manhattan U.S. Attorney Geoffrey Berman said: “From 2011 through 2014, Sean Stewart used his position of trust at two different investment banks to steal confidential information and pass it on to his father so he could make illicit profits in the stock market. As a unanimous jury found today, he abused his positions over and over again to tip his father. Today’s verdict, which comes after the Second Circuit reversed Stewart’s original conviction, shows that this Office and our law enforcement partners at the FBI will persevere to achieve justice.”
According to the allegations contained in the Superseding Indictment and evidence presented at trial:
In early 2011, SEAN STEWART, who at the time held the position of Vice President in the Healthcare Investment Banking Group of a global bank headquartered in Manhattan (“Investment Bank A”), began tipping his father, Robert Stewart, with nonpublic information about upcoming mergers and acquisitions. The first of these tips related to the acquisition of Kendle International Inc. by INC Research, LLC, which was announced publicly on May 4, 2011. SEAN STEWART represented Kendle in the confidential negotiations that led to the deal announcement. Based on inside information from SEAN STEWART, Robert Stewart purchased Kendle stock and passed the information to another individual to trade on his behalf, and earned several thousand dollars in profits after the acquisition of Kendle was publicly announced.
The second deal about which SEAN STEWART tipped Robert Stewart was the acquisition of Kinetic Concepts, Inc. (“KCI”) by Apax Partners, announced on July 13, 2011. Robert Stewart passed the inside information to another co-conspirator, Richard Cunniffe, to trade on Robert’s behalf. Robert Stewart and Cunniffe earned more than $100,000 in profits after the acquisition was publicly announced.
In the summer of 2011, SEAN STEWART learned that the Financial Industry Regulatory Authority (“FINRA”) was conducting an inquiry into suspicious trading in Kendle securities, including trading by Robert Stewart. SEAN STEWART at first falsely claimed to compliance officials at Investment Bank A that he did not recognize his father’s name on a list of individuals who traded prior to the public announcement of Kendle’s acquisition. After FINRA and compliance officials at Investment Bank A recognized the connection between SEAN STEWART and his father, SEAN STEWART told a series of lies to those compliance officials, to make it seem as if Robert Stewart had decided on his own initiative to invest in Kendle without the benefit of inside information.
In October 2011, Sean Stewart joined an investment banking advisory firm headquartered in Manhattan (“Investment Bank B”) and was later promoted to Managing Director. During his tenure with Investment Bank B, SEAN STEWART provided his father with tips concerning non-public acquisition negotiations involving three more public companies: (1) the acquisition of Gen-Probe Inc. by Hologic, Inc., announced on April 30, 2012; (2) the acquisition, by tender offer, of Lincare Holdings Inc. by Linde AG, announced on July 1, 2012; and (3) the acquisition of CareFusion Corp. by Becton, Dickinson & Co. (“Becton”), announced October 4, 2014. Investment Bank B represented Hologic in connection with its acquisition of Gen-Probe; Linde in connection with its acquisition of Lincare; and CareFusion in connection with its acquisition by Becton. As before, Robert Stewart passed the information to Cunniffe in order to place trades for the two of them.
During the course of the scheme, SEAN STEWART became aware that his father was having financial problems. Rather than loan his father money, SEAN STEWART gave his father stock tips so that his father could profit from the information that STEWART stole from Investment Bank A and Investment Bank B and their clients. In total, with respect to all five deals, Robert Stewart and Cunniffe earned profits of more than $1.1 million.
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SEAN STEWART, 38, of North Merrick, New York, was convicted of one count of conspiracy to commit securities fraud and tender offer fraud, which carries a maximum sentence of five years in prison; one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; six counts of substantive securities fraud, and one count of substantive tender offer fraud, each of which carries a maximum sentence of 20 years in prison and a maximum fine of $5 million, or twice the gross gain or loss from the offense. 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 would be determined by the Court.
SEAN STEWART is scheduled to be sentenced before Judge Rakoff on January 29, 2020, at 4:00 p.m.
Robert Stewart pled guilty on August 12, 2015, to one count of conspiracy to commit securities fraud and tender offer fraud and was sentenced to four years’ probation, with the first year to be served in home detention, and $150,000 in forfeiture.
Richard Cunniffe pled guilty on May 12, 2015, to one count of conspiracy to commit securities fraud and tender offer fraud, one count of conspiracy to commit wire fraud, three counts of substantive securities fraud, and one count of substantive tender offer fraud, and was sentenced to one year of probation, and $900,000 in forfeiture.
Mr. Berman praised the investigative work of the Federal Bureau of Investigation and also thanked the U.S. Securities and Exchange Commission, which has brought a civil action against SEAN STEWART.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Richard Cooper and Samson Enzer are in charge of the prosecution.
Former City of Detroit Building Authority Official Sentenced for Bribery Conspiracy in Connection with the Detroit Demolition ProgramRead the Press Release
Aradondo Haskins, 48, the former Field Operations Manager for the City of Detroit Building Authority overseeing the demolition program in Detroit, was sentenced today to 12 months in prison after having pleaded guilty to charges of conspiracy to commit bribery and honest services fraud in connection with the Detroit Demolition Program.
The Honorable Victoria Roberts sentenced Haskins to serve 12 months in federal prison following his conviction for conspiracy to commit honest services fraud by taking bribes while he was employed at Adamo Group and at the City of Detroit. Following his release from prison, Haskins will serve a two-year term of supervised release. The Court also ordered that Haskins pay a $5,000 fine and that Haskins forfeit $26,500 for the bribes that he took while employed by Adamo and by the City.
The United States Treasury Department created the Blight Elimination Program, which focused on helping communities demolish vacant houses. The program was paid for through the Hardest Hit Fund (HHF), a housing support program intended to protect home values, preserve home ownership and promote economic growth. The City of Detroit was one of the recipients of this HHF money. Approximately $258,656,459 in Hardest Hits Funds have been allocated to the City of Detroit since Oct. 7, 2013.
As stated during Haskins’s guilty plea, from January 2013 through April 2015, Haskins was employed as an "estimator" with Adamo. Adamo is a private, "for profit," company which provides demolition services throughout the United States and Canada, including the City of Detroit. Haskins’s responsibilities at Adamo included assembling bid packages in response to "Requests for Proposals" (RFPs) issued by the City of Detroit. Adamo responded to the RFPs by submitting bids to the City hoping to secure demolition contracts by being the lowest bidder. In assembling the bid packages, Haskins contacted various subcontractors requesting bids for work to be included in Adamo’s submissions. "Contractor A" was one of the subcontractors who received Haskins’s invitation to bid. On several occasions, Contractor A paid Haskins money for disclosing confidential information about bids from Contractor A’s competitors. In return for these payments, Haskins disclosed confidential information about the lowest competitor bid which allowed Contractor A to submit an even lower bid, ensuring that Contractor A was awarded lucrative contracts. Haskins accepted bribes on at least eight occasions while he worked at Adamo totaling approximately $14,000.
According to the plea, due in large part to his experience at Adamo, Haskins was hired by the City of Detroit Building Authority (DBA) as a "Field Operations Manager" for its demolition program. As an official of the City of Detroit, Haskins was the primary point of contact for demolition contractors and he opened and read bids contractors submitted in response to RFPs. Contractor A, knowing that Haskins was still in a position to influence the demolition contract bidding process, continued to pay Haskins to use his official authority to influence the awarding of demolition related contracts to Contractor A. Haskins accepted the cash bribe payments from Contractor A in exchange for providing Contractor A confidential information about bids submitted to the DBA. With the confidential information, Contractor A was able to submit bids low enough to ensure that Contractor A was awarded City of Detroit demolition related contracts. In total, Haskins accepted approximately $11,500 in bribes from Contractor A. After his employment with the City of Detroit, Haskins accepted an additional approximately $1,000 from Contractor A for information Contractor A received while Haskins was employed with the City.
First Assistant U.S. Attorney Saima Mohsin of the Eastern District of Michigan and Assistant Attorney General Makan Delrahim of the Justice Department's Antitrust Division commended the outstanding work of the Special Inspector General of the Troubled Asset Relief Program (SIGTARP) and the Federal Bureau of Investigation (FBI) in conducting a comprehensive criminal investigation into the demolition program.
"The Antitrust Division will aggressively pursue collusion that corrupts the government contracting process, especially where the illicitly shared bid information enables the government contractor to submit anti-competitive bids to the detriment of taxpayer-funded programs," said Assistant Attorney General Delrahim.
"The City of Detroit and its demolition program were entrusted with millions of taxpayer dollars to tear down abandoned houses in Detroit’s neighborhoods. The corruption of the government contracting process by Aradondo Haskins damaged the integrity of the demolition program and broke the public trust. This prosecution serves as a warning to public officials that soliciting or accepting bribes will be punished and as a promise to the taxpaying public that such violations of the public trust will not be tolerated," said First Assistant U.S. Attorney Mohsin.
"Anti-competitive corruption by city officials that award contracts in the Hardest Hit Fund’s Blight Elimination Program will be met by justice and accountability," said Special Inspector General Christy Goldsmith Romero of the Troubled Asset Relief Program (SIGTARP). "Defendant Haskins started taking bribes from subcontractors when he worked for lead contractor Adamo and continued his crimes as a city official. I commend U.S. Attorney Matthew Schneider and Assistant Attorney General for Antitrust Delrahim for standing united with SIGTARP in fighting corruption in this TARP program."
"Mr. Haskins was sentenced today for corrupting the bidding process both while he was seeking contracts through a federally-funded program and after he became a City of Detroit employee," said Special Agent in Charge Steven M. D'Antuono of the FBI's Detroit Field Office. "The FBI’s Detroit Area Public Corruption Task Force will continue to investigate and fight corruption by those who give illegal, preferential treatment at the expense of honest American business. I would encourage anyone with information about potential public corruption in Michigan to contact FBI Detroit's Public Corruption tipline at 313-965-2222 or our main number at 313-965-2323."
The case was prosecuted by Assistant U.S. Attorneys Sarah Resnick Cohen, Karen Reynolds, Adriana Dydell and DOJ Antitrust Trial Attorney Matthew Stegman.
Former City of Detroit Building Authority Official Sentenced for Bribery Conspiracy in Connection with the Detroit Demolition ProgramRead the Press Release
Aradondo Haskins, 48, the former Field Operations Manager for the City of Detroit Building Authority overseeing the demolition program in Detroit, was sentenced today to 12 months in prison after having pleaded guilty to charges of conspiracy to commit bribery and honest services fraud in connection with the Detroit Demolition Program, announced First Assistant U.S. Attorney Saima Mohsin and Makan Delrahim, Assistant Attorney General of the Antitrust Division of the Department of Justice.
Joining in the announcement were Christy Goldsmith Romero, the Special Inspector General of the Troubled Asset Relief Program (SIGTARP), and Steven M. D'Antuono, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation (FBI).
The Honorable Victoria Roberts sentenced Haskins to serve 12 months in federal prison following his conviction for conspiracy to commit honest services fraud by taking bribes while he was employed at Adamo Group and at the City of Detroit. Following his release from prison, Haskins will serve a 2-year term of supervised release. The Court also ordered that Haskins pay a $5,000 fine and that Haskins forfeit $26,500 for the bribes that he took while employed by Adamo and by the City.
The United States Treasury Department created the Blight Elimination Program, which focused on helping communities demolish vacant houses. The program was paid for through the Hardest Hit Fund (HHF), a housing support program intended to protect home values, preserve home ownership, and promote economic growth. The City of Detroit was one of the recipients of this HHF money. Approximately $258,656,459 in Hardest Hits Funds have been allocated to the City of Detroit since October 7, 2013.
As stated during Haskins’s guilty plea, from January 2013 through April 2015, Haskins was employed as an “estimator” with Adamo. Adamo is a private, “for profit,” company which provides demolition services throughout the United States and Canada, including the City of Detroit. Haskins’s responsibilities at Adamo included assembling bid packages in response to “Requests for Proposals” (RFPs) issued by the City of Detroit. Adamo responded to the RFPs by submitting bids to the City hoping to secure demolition contracts by being the lowest bidder. In assembling the bid packages, Haskins contacted various subcontractors requesting bids for work to be included in Adamo’s submissions. “Contractor A” was one of the subcontractors who received Haskins’s invitation to bid. On several occasions, Contractor A paid Haskins money for disclosing confidential information about bids from Contractor A’s competitors. In return for these payments, Haskins disclosed confidential information about the lowest competitor bid which allowed Contractor A to submit an even lower bid, ensuring that Contractor A was awarded lucrative contracts. Haskins accepted bribes on at least eight occasions while he worked at Adamo totaling approximately $14,000.00.
According to the plea, due in large part to his experience at Adamo, Haskins was hired by the City of Detroit Building Authority (DBA) as a “Field Operations Manager” for its demolition program. As an official of the City of Detroit, Haskins was the primary point of contact for demolition contractors and he opened and read bids contractors submitted in response to RFPs. Contractor A, knowing that Haskins was still in a position to influence the demolition contract bidding process, continued to pay Haskins to use his official authority to influence the awarding of demolition related contracts to Contractor A. Haskins accepted the cash bribe payments from Contractor A in exchange for providing Contractor A confidential information about bids submitted to the DBA. With the confidential information, Contractor A was able to submit bids low enough to ensure that Contractor A was awarded City of Detroit demolition related contracts. In total, Haskins accepted approximately $11,500 in bribes from Contractor
A. After his employment with the City of Detroit, Haskins accepted an additional approximately $1,000 from Contractor A for information Contractor A received while Haskins was employed with the City.
First Assistant U.S. Attorney Saima Mohsin and Assistant Attorney General Makan Delrahim commended the outstanding work of SIGTARP and the FBI in conducting a comprehensive criminal investigation into the demolition program.
“The City of Detroit and its demolition program were entrusted with millions of taxpayer dollars to tear down abandoned houses in Detroit’s neighborhoods. The corruption of the government contracting process by Aradondo Haskins damaged the integrity of the demolition program and broke the public trust. This prosecution serves as a warning to public officials that soliciting or accepting bribes will be punished and as a promise to the taxpaying public that such violations of the public trust will not be tolerated,” said First Assistant U.S. Attorney Saima Mohsin.
“The Antitrust Division will aggressively pursue collusion that corrupts the government contracting process, especially where the illicitly shared bid information enables the government contractor to submit anti-competitive bids to the detriment of taxpayer-funded programs,” said Assistant Attorney General Makan Delrahim.
“Anti-competitive corruption by city officials that award contracts in the Hardest Hit Fund’s Blight Elimination Program will be met by justice and accountability,” said Special Inspector General Christy Goldsmith Romero. “Defendant Haskins started taking bribes from subcontractors when he worked for lead contractor Adamo and continued his crimes as a city official. I commend U.S. Attorney Matthew Schneider and Assistant Attorney General for Antitrust Makan Delrahim for standing united with SIGTARP in fighting corruption in this TARP program.”
“Mr. Haskins was sentenced today for corrupting the bidding process both while he was seeking contracts through a federally-funded program and after he became a City of Detroit employee,” said SAC D'Antuono. “The FBI’s Detroit Area Public Corruption Task Force will continue to investigate and fight corruption by those who give illegal, preferential treatment at the expense of honest American business. I would encourage anyone with information about potential public corruption in Michigan to contact FBI Detroit's Public Corruption tipline at 313-965-2222 or our main number at 313-965-2323.”
The case was prosecuted by Assistant U.S. Attorneys Sarah Resnick Cohen, Karen Reynolds, Adriana Dydell, and DOJ Antitrust Trial Attorney Matthew Stegman.
Florida woman sentenced for role in drug distribution operation in Berkeley and Jefferson CountiesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Brianna Katherine Murray, of Fort Lauderdale, Florida, was sentenced to three years probation for aiding in the distribution of heroin, fentanyl, and cocaine, United States Attorney Bill Powell announced.
Murray, age 38, pled guilty to one count of “Aiding and Abetting Travel Act – Promotion” in June 2019. Murray admitted to working with another to travel from West Virginia to Maryland to obtain heroin, fentanyl, and cocaine for distribution in West Virginia. The crime occurred in September 2018 in Berkeley County and elsewhere.This case is the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
Assistant U.S. Attorney Lara K. Omps-Botteicher and Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, prosecuted the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
The investigation was funded in part 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.
Chief U.S. District Judge Gina M. Groh presided.
Fayette County Family Practitioner Charged in 29-Count Indictment with Dispensing Opioids in Exchange for Sex and Health Care FraudRead the Press Release
PITTSBURGH - A physician who operates a private family practice in Perryopolis, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of unlawfully dispensing controlled substances and health care fraud, United States Attorney Scott W. Brady announced today.
The 29-count indictment, returned on September 19 and unsealed today, named Emilio Ramon Navarro, 58, of Coal Center, Pennsylvania, as the sole defendant.
According to Counts 1 – 28 of the Indictment, from April 2018 until April 2019, Navarro, a licensed physician, unlawfully distributed Oxymorphone and Oxycodone, Schedule II substances, to a person identified as "A.W." in return for sexual favors, either physically or by electronic communications, outside the usual course of professional practice and not for a legitimate medical purpose. Navarro is also charged in Count 29 with health care fraud for causing fraudulent claims to be submitted to Medicaid for payments to cover the costs of the unlawfully prescribed controlled substances.
Navarro was arrested this morning and made an initial appearance in federal court today before U.S. Magistrate Judge Patricia Dodge. The government is seeking the defendant’s detention pending trial and a hearing on that matter is scheduled for September 24, 2019 at 2 p.m.
The law provides for a maximum per count sentence of 20 years in prison, a fine of $1,000,000, or both, for the controlled substances offenses. Navarro faces an additional maximum term of imprisonment of 10 years and fines of $250,000 for the health care fraud charge. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Robert S. Cessar and Mark V. Gurzo are prosecuting this case on behalf of the government.
The investigation leading to the indictment in this case was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit (OFADU). The Western Pennsylvania OFADU, led by federal prosecutors in the U.S. Attorney’s Office, combines the expertise and resources of federal and state law enforcement to address the role played by unethical medical professionals in the opioid epidemic.
The agencies which comprise the Western Pennsylvania OFADU include: Federal Bureau of Investigation, U.S. Health and Human Services – Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, Pennsylvania Office of Attorney General – Bureau of Narcotic Investigations, United States Postal Inspection Service, U.S. Attorney’s Office – Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs-Office of Inspector General, Food and Drug Administration-Office of Criminal Investigations, U.S. Office of Personnel Management – Office of Inspector General and the Pennsylvania Bureau of Licensing.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Essex County Man Admits Role in $3.49 Million Food Stamps SchemeRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted his role in exchanging $3.49 million in Supplemental Nutrition Assistance Program (SNAP) benefits for cash, U.S. Attorney Craig Carpenito announced.
Juan Perdomo, 60, of Newark, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging him with one count of SNAP fraud, one count of engaging in monetary transactions in property derived from SNAP fraud, and one count of aiding in the preparation of a materially false tax return.
According to documents filed in this case and statements made in court:
From October 2015 to September 2018, Perdomo ran M&R Supermarket, a business that was authorized to accept benefits provided by SNAP, formerly known as the Food Stamp program. SNAP is administered by the U.S. Department of Agriculture. Retail food stores approved for participation may sell food in exchange for SNAP benefits, but may not exchange SNAP benefits for cash.
Every SNAP recipient receives an Electronic Benefit Transfer (EBT) card, similar to a debit card, to use to make purchases. Every retailer authorized to accept SNAP benefits has an EBT terminal. Food purchases are made by swiping the card at the terminal. After the customer enters a Personal Identification Number (PIN), the EBT terminal verifies the PIN, determines whether the customer’s account balance is sufficient to cover the proposed transaction, and informs the retailer whether the transaction should be authorized or denied. The amount of the purchase is deducted electronically from the SNAP benefits reserved for the customer and the purchase amount is credited to the retailer’s designated bank account.
Law enforcement agents verified the fraudulent exchange of SNAP benefits for cash through the use of an undercover law enforcement agent who engaged in 11 “purchases” at M&R Supermarket, where Juan Perdomo and his son, Jose Perdomo, exchanged money for SNAP benefits.
The bank account of M&R Supermarket showed numerous cash withdrawals in excess of $10,000 by Juan Perdomo and his wife, Maria Rodriguez, as well as several cashed checks in excess of $10,000 by Jose Perdomo.
In September 2018, Juan Perdomo, Jose Perdomo and Maria Rodriguez were charged by complaint with SNAP benefit fraud and conspiracy to commit wire fraud. They were also charged with money laundering conspiracy. Jose previously pleaded guilty to SNAP benefit fraud and money laundering. The charges against Rodriguez remain pending, and they are merely accusations; the defendant is presumed innocent unless and until proven guilty.
The count of SNAP benefit fraud carries a maximum penalty of 20 years in prison and a fine of $250,000, or twice the gross pecuniary gain or loss. The count of engaging in monetary transactions in property derived from specified unlawful activity carries a maximum penalty of 10 years in prison and a fine of $250,000 or twice the value of the property involved in the transaction. The count aiding in the preparation of false tax return carries a maximum penalty of three years in prison and a fine of $250,000 or twice the value of the property involved in the transaction. Sentencing is scheduled for Jan. 8, 2020.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Agriculture – Office of Inspector General, under the direction of Special Agent in Charge Bethanne M. Dinkins, special agents of the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Brian A. Michael, and IRS - Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s guilty plea.
The government is represented by Special Assistant U.S. Attorney Perry Farhat of the U.S. Attorney’s Office Criminal Division in Newark.
Eight Former SCDC Employees Plead Guilty to Federal Crimes Associated with Accepting Bribes to Smuggle Contraband into SCDC FacilitiesRead the Press Release
Columbia, South Carolina --- United States Attorney Sherri A. Lydon announced today that Jamal Early, Frank Pridgeon, Miguel Williams, Catherine Prosser, Holly Mitchem, Robert Hill, Ebonynisha Casby, and Sharon Johnson Breeland, all former employees of the South Carolina Department of Corrections (SCDC), have pleaded guilty in federal court to offenses associated with accepting bribes to smuggle contraband into SCDC facilities.
“Those who violate the public trust by taking bribes to smuggle dangerous contraband into our prisons endanger inmates, prison staff, and the general public,” said U.S. Attorney Lydon. “The U.S. Attorney’s Office and our partners at SCDC will not rest until we have rooted out the corruption in our prison system.”
“When a correctional officer brings contraband into an institution, it breaks a public trust and makes the institution and our state unsafe for everyone,” said Bryan Stirling, Director of the South Carolina Department of Corrections. “They deserve to spend time behind bars.”
The specific guilty pleas are as follows:
- On September 19, 2019, Jamal Early pleaded guilty to Use of an Interstate Facility to Facilitate Bribery. Facts presented in court showed Early, a former correctional officer at Ridgeland Correctional Institution, accepted bribes to smuggle tobacco and A-PVP (a synthetic narcotic) into prison. He faces a maximum penalty of five years in federal prison.
- On September 18, 2019, Frank Pridgeon pleaded guilty to Honest Services Wire Fraud. Facts presented in court showed Pridgeon, a former correctional officer at Kershaw Correctional Institution, accepted bribes to smuggle cocaine, marijuana, tobacco, and cell phones into prison. Pridgeon faces a maximum penalty of 20 years in federal prison.On September 13, 2019, Miguel Williams pleaded guilty to Use of an Interstate Facility to Facilitate Bribery. Facts presented in court showed Williams, a former correctional officer at Perry Correctional Institution, accepted bribes to smuggle tobacco and liquor into prison. Williams faces a maximum penalty of five years in federal prison.
- On September 13, 2019, Catherine Prosser pleaded guilty to Possession with Intent to Distribute Marijuana. Facts presented in court showed Prosser, a former correctional officer at McCormick Correctional Institution, accepted bribes to smuggle marijuana into prison. Prosser faces a maximum penalty of five years in federal prison.
- On September 13, 2019, Holly Mitchem pleaded guilty to Use of an Interstate Facility to Facilitate Bribery. Facts presented in court showed Mitchem, a food service worker at Tyger River Correctional Institution, accepted bribes to smuggle tobacco and K2 into prison. Mitchem and faces a maximum penalty of five years in federal prison.
- On September 13, 2019, Robert Hill pleaded guilty to Use of an Interstate Facility to Facilitate Bribery. Facts presented in court showed Hill, a horticulture specialist at Tyger River Correctional Institution, accepted bribes to smuggle marijuana, K2, tobacco, and cell phones into prison. Hill faces a maximum penalty of five years in federal prison.
- On September 10, 2019, Ebonynisha Casby pleaded guilty to Use of an Interstate Facility to Facilitate Bribery. Facts presented in court showed that Casby, a correctional officer at Lieber Correctional Institution, accepted bribes to smuggle a watch and jewelry into prison. Casby faces a maximum penalty of five years in federal prison.
- On August 6, 2019, Sharon Johnson Breeland pleaded guilty to Possession with Intent to Distribute Methamphetamine. Facts presented in court showed that Breeland, a correctional officer at Broad River Correctional Institution, accepted bribes to smuggle methamphetamine into prison. Breeland faces a maximum penalty of twenty years in federal prison.
These guilty pleas are the result of a partnership with the Federal Bureau of Investigation (FBI), the United States Attorney’s Office, and SCDC to investigate the smuggling of contraband into prisons by staff at SCDC. The investigation has uncovered a number of SCDC employees who accepted bribes to smuggle into prison various contraband such as cell phones, narcotics, or tobacco. Previous recent prosecutions by the United States Attorney’s Office of SCDC employees for these types of offenses have resulted in prison time for the offenders.
Assistant United States Attorney William Camden Lewis of the Columbia office is prosecuting the cases.
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Eagle Butte Woman Indicted on Methamphetamine ChargesRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, woman has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance.
Cheyenne Brown, age 32, was indicted on October 16, 2018. She appeared before U.S. Magistrate Judge Mark A. Moreno on September 10, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison, including a mandatory minimum of 10 years in federal prison and/or a $10,000,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that beginning at a time unknown but no later than on January 1, 2016, and continuing to October 16, 2018, in South Dakota, Brown knowingly and intentionally conspired with others to distribute and possess with the intent to distribute methamphetamine, a Schedule II controlled substance.
The charge is merely an accusation and Brown is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Brown was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Eagle Butte Woman Indicted on Assault ChargesRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, woman has been indicted by a federal grand jury for Assault With a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Chae Lynn LeClaire, age 27, was indicted on September 10, 2019. She appeared before U.S. Magistrate Judge Mark A. Moreno on September 11, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on July 23, 2019, LeClaire assaulted an individual with a chair with the intent to do bodily harm and the assault resulted in serious bodily injury.
The charges are merely accusations and LeClaire is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Michael J. Elmore is prosecuting the case.
LeClaire was released on bond pending trial. A trial date has not been set.
Eagle Butte Man Indicted for Aggravated Sexual AbuseRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse.
Ryan Dupris, age 24, was indicted on September 10, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 16, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on January 2, 2019, in Eagle Butte, Dupris knowingly caused, and attempted to cause, a female victim to engage in a sexual act by the use of force against and by threatening her.
The charge is merely an accusation and Dupris is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Cameron Cook is prosecuting the case.
Dupris was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Delaware man sentenced for heroin distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Terrance B. Fletcher, of Dover, Delaware, was sentenced to 36 months incarceration for distributing heroin, United States Attorney Bill Powell announced.
Fletcher, also known as “Flex,” age 25, pled guilty to one count of “Possession with Intent to Distribute Heroin” in June 2019. Fletcher admitted to distributing heroin in Berkeley County in February 2015.
Assistant U.S. Attorney Timothy D. Helman prosecuted the case on behalf of the government. The Eastern Panhandle Drug & Violent Crime Task Force, a HIDTA-funded initiative; the West Virginia State Police Bureau of Criminal Investigations; the Berkeley County Sheriff’s Office; and the Martinsburg Police Department investigated.
Chief U.S. District Judge Gina M. Groh presided.
Criminal Complaint Filed Charging Peter Rene Sanchez Montalvo in Multiple Fatal and Non-fatal Overdoses on Pittsburgh’s South SideRead the Press Release
PITTSBURGH – Peter Rene Sanchez Montalvo aka Carlos has been charged by federal criminal complaint with illegal distribution of a controlled substance resulting in death and serious bodily injury, United States Attorney Scott W. Brady, FBI Special Agent in Charge Robert Jones and Pittsburgh Public Safety Director Wendell Hissrich announced today.
According to the federal criminal complaint filed in this case, Montalvo was arrested early this morning at a residence in McKees Rocks, Pennsylvania, a Pittsburgh suburb. According to the affidavit in support of the complaint, the overdoses occurred after Montalvo distributed narcotics at an apartment on the South Side. During the party, Montalvo, wearing distinctive clothing, produced a large quantity of powdered narcotics in a box. He then cut into the narcotics and scooped out a large quantity of what the users believed was cocaine. Montalvo then started going around the room with the knife, allowing individuals to sniff the white powder from it. The surviving users stated that after they did a "bump" of suspected cocaine people immediately began to drop and suffer adverse effects. Investigation by the Allegheny County Medical Examiner’s Office has initially determined the presence of fentanyl in the white powder. Pittsburgh Police Zone 3 Officers and first responders from Pittsburgh Medics and Fire Departments were dispatched to the apartments at 2626 Tunnel Blvd. Upon entering the building one adult male was found deceased outside of an elevator. Five additional persons were located inside the apartment: two deceased males and three males suffering from a medical emergency, who were transported to UPMC Mercy.
Montalvo was arrested today and is scheduled to make an initial appearance in federal court at 1:30 p.m. before U.S. Magistrate Judge Patricia Dodge. The United States Attorney’s Office intends to seek detention of the defendant without bail. Assistant United States Attorney Brendan Conway is prosecuting this case on behalf of the government.
The law provides for a maximum total sentence of not less than 20 years and up to life in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The investigation leading to the filing of charges in these cases was conducted by the FBI’s Western Pennsylvania Opioid Task Force, which is comprised of law enforcement officers from the FBI, Port Authority Police of Allegheny County, the Allegheny County Sheriff’s Office, the North Versailles Police Department and the Stowe Twp. Police Department, along with the Pittsburgh
Bureau of Police and the Drug Enforcement Administration.
A criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Related Documents- Criminal Complaint - Montalvo
Colorado Man Pleads Guilty to Assaulting a CongressmanRead the Press Release
A Colorado man pled guilty on September 23, 2019, in United States District Court in Sioux City.
Blake Gibbins, 27, from Lafayette, Colorado, pled guilty to one count of assaulting a member of congress. At his guilty plea hearing, and in a plea agreement, Gibbins admitted that on March 22, 2019, at the Mineral City Mill & Grill in Fort Dodge, Iowa, he approached a table where U.S. Congressman Steve King and others were seated and assaulted Congressman King by intentionally throwing a cup of water on him.
Sentencing before Chief United States Magistrate Judge Kelly Mahoney will be set after a presentence report is prepared. Gibbons faces a possible maximum sentence of not more than one year imprisonment, a $100,000 fine, and up to 5 years’ probation.
The case is being prosecuted by Assistant United States Attorney Timothy T. Duax and was investigated by the Federal Bureau of Investigation, the Fort Dodge Police Department, and the United States Capitol Police.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is CR19-3033-LTS.
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Chief Executive Officer and Stock Promoter Indicted for Multi-Million Dollar Stock Manipulation SchemeRead the Press Release
Earlier today, in federal court in Central Islip, an indictment was unsealed charging Benjamin Conde, Chief Executive Officer of Essex Global Investments and President of Facultas Capital Management, and Lawrence Isen, the owner of Marketbyte, LLC, a purported stock promotion firm, with conducting a “pump and dump” scheme to defraud investors in Renewable Energy and Power, Inc. (RBNW). The charges include conspiracy to commit securities fraud, conspiracy to commit wire fraud, conspiracy to commit money laundering and substantive securities fraud. The defendants were arrested this morning and Conde will be arraigned this afternoon before United States District Judge Joanna Seybert at the United States Courthouse in Central Islip. Isen’s appearance for removal to the Eastern District of New York is scheduled for this afternoon at the federal courthouse in San Diego, California.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
“As alleged, Conde and Isen joined forces with a ‘boiler room’ crew to defraud investors, many of them elderly, and enrich themselves at the expense of their victims,” stated United States Attorney Donoghue. “The Department of Justice has made it a priority to hold accountable those who use our financial markets as a venue to lie, cheat and steal.” Mr. Donoghue expressed his grateful appreciation to the United States Securities and Exchange Commission for its significant cooperation and assistance in the investigation.
As alleged in the indictment, between March 2017 and July 2017, Conde and Isen hired a purported financial services business in Melville, New York, known by a number of names including My Street Research, that operated as a high pressure “boiler room.” The boiler room engaged in a pump and dump scheme to defraud investors in RBNW. As part of the scheme, the defendants and their co-conspirators artificially controlled the price and volume of traded shares and made misrepresentations to victim investors, many of whom were senior citizens, relating to the advisability of purchasing RBNW stock and its profitability. The scheme generated over $3.1 million in trading profits for the defendants and their co-conspirators and losses for the victim investors when the stock price plummeted.
The defendants attempted to conceal the scheme by laundering approximately $2.8 million in fraudulently obtained proceeds.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, Conde and Isen each face up to 20 years’ imprisonment.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Erin E. Argo is in charge of the prosecution.
The Defendants:
BENJAMIN CONDE
Age: 56
Fairfield, New JerseyLAWRENCE ISEN
Age: 66
San Diego, CaliforniaE.D.N.Y. Docket No. 19-CR-432 (JS)
Chamberlain Man Sentenced to Prison for Escape from CustodyRead the Press Release
United States Attorney Ron Parsons announced that a Chamberlain, South Dakota, man convicted of Escape from Custody was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Charles His Law, age 36, was sentenced on September 11, 2019, to 12 months and 1 day in federal prison, followed by 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
His Law was furloughed to travel by bus from the United States Penitentiary-McCreary in Pine Knot, Kentucky, to arrive in Rapid City and report to the Bureau of Prisons at the Community Education Center (CEC) on March 27, 2019. His Law failed to report and was placed on escape status.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
His Law was immediately turned over to the custody of the U.S. Marshals Service.