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Monday 9 September 2019
CBL/BFL Member Pleads Guilty for His Role in Racketeering ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Dajon Nettles, a/k/a Gucc, 25, of Buffalo, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to racketeering conspiracy. The charge carries a maximum penalty of 20 years in prison, and a $250,000 fine.
Assistant U.S. Attorney Paul C. Parisi, who is handling the case, stated that between 2010 and August 28, 2018, the defendant was an associate with the CBL/BFL Gang, which stands for, among other things, “Cash Been Long” and “Brothers for Life.” He conspired with several other associates to sell drugs, commit robbery, retaliate against witnesses, and commit assault. CBL/BFL operated within a specifically defined geographic area on the East side of Buffalo. Gang members and associates engaged in drug trafficking to generate income and violent crimes to maintain control over their territory. As part of his plea, defendant Nettles admitted to participating in the following acts:
• On June 4, 2013, in the Towne Gardens neighborhood, the defendant shot approximately three times at a vehicle containing members of a suspected rival gang causing damage to the vehicle;
• On June 8, 2013, Nettles provided a revolver to a co-conspirator and member of the CBL/BFL enterprise. On that date, the co-conspirator was engaged in a dispute with another individual at 418 South Park Avenue in Buffalo, and during the dispute, the co-conspirator pointed the revolver at an individual’s head and pulled the trigger. The firearm did not discharge. The co-conspirator was stopped by Buffalo Police later that day, and the police recovered a .32 caliber revolver loaded with five rounds of ammunition;
• On September 21, 2015, the defendant appeared in a video on social media holding a rifle while a co-defendant held ammunition. Nettles’ possession of firearms as depicted on video, and other firearms he maintained access to as a member of the enterprise, occurred during times when the defendant and others were involved selling crack cocaine and other drugs as members of the enterprise;
• On August 7, 2017, Nettles sold crack cocaine to an individual working with investigators;
• On August 29, 2018, the defendant was on Spring Street and Mary B. Talbert Boulevard when he was stopped by members of the FBI and the Buffalo Police Department who had a federal warrant for his arrest. Nettles had one bag of crack cocaine in his underwear and a scale with cocaine residue in his pants pocket; and
• On two occasions between 2014 and 2017, defendant sold crack cocaine to an individual working with investigators.A total of 13 CBL/BFL members and associates have been charged in this case. Nettles is the fourth to be convicted. The fact that a defendant has been charged with a crime is merely an accusation, and the defendants are presumed innocent until and unless proven guilty.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the New York State Police, under the direction of Major Edward Kennedy; the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard; the Cheektowaga Police Department, under the direction of Chief David Zack; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Bureau of Alcohol Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Lackawanna Police Department, under the direction of Chief James Michel; the U.S. Marshals Service, under the direction of Marshal Charles Salina; and the Erie Crime Analysis Center. Additional assistance was provided by the Erie County District Attorney’s Office, under the direction of District Attorney John Flynn.
Sentencing is scheduled for January 24, 2020, before Judge Vilardo.
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Friday 6 September 2019
Youngstown physician indicted in federal court on sex trafficking charges involving minors as young as 12 years oldRead the Press Release
A Youngstown physician was indicted in federal court on sex trafficking charges involving minors as young as 12 years old.
Albert Aiad-Toss, 52, was indicted on four counts of sex trafficking of a minor and one count of production of child pornography.
Aiad-Toss is allegedly to have used force, threats of force, fraud or coercion to cause three minor victims to engage in commercial sex acts at various points in June 2019. The victims ranged in age from 12 to 14 years old, according to the indictment.
Aiad-Toss is also alleged to have induced a 15-year-old girl to engage in sexually explicit conduct for the purpose of producing a visual depiction of the conduct. This took place on June 29, 2019, according to the indictment.
“This defendant is accused of sexually assaulting children as young as 12 years old,” said U.S. Attorney Justin Herdman. “Those who prey upon children and other vulnerable victims will be held accountable for their actions.”
“The abuse of a child is despicable and incomprehensible. Individuals such as Dr. Toss who allegedly choose to engage in sex acts with minors and sharing sexually explicit photos of children will face a court of law,” said FBI Special Agent Eric B. Smith. “Law enforcement will continue our unceasing efforts to protect our most precious resource, our children."
“The charges brought against the defendant, Albert Aiad-Toss, are the product of the cooperation between Ashland law enforcement agencies, my office and the federal authorities,” said Ashland County Prosecutor Christopher Tunnell. “This case is prime an example of what happens when all the relevant criminal justice agencies act with the singular focus of keeping our children safe from predatory exploitation.”
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case was investigated by the Federal Bureau of Investigation, the Ashland Police Department and the Mansfield Police Department. It is being prosecuted by Assistant U.S. Attorney Ranya Elzein and First Assistant U.S. Attorney Bridget M. Brennan with the assistance of Ashland County Prosecutor Christopher Tunnell.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Whiting Man Sentenced to Prison and Ordered to Pay Restitution to the City of HammondRead the Press Release
HAMMOND- The United States Attorney for the Northern District of Indiana, Thomas L. Kirsch II and the Assistant Attorney General for the Environment and Natural Resources Division, Jeffrey Bossart Clark, announce that Kenneth Morrison, age 69, of Whiting, Indiana, was sentenced before United States District Court Judge Philip P. Simon on September 5, 2019. Morrison was sentenced to 24 months imprisonment, 2 years supervised release, and ordered to pay over $54,000 in restitution to the City of Hammond.
Morrison was found guilty of interstate transportation of stolen property. According to documents and testimony in this case, Morrison was convicted of stealing the Monon Bridge, located in Hammond, Indiana, and transporting the stolen metal parts across state lines, which he sold those metal parts for his personal benefit. The former bridge had spanned the Grand Calumet River. Morrison’s sentence was enhanced due to the eligibility of the bridge for the National Register of Historic Places.
The case was the result of an investigation by the U.S. Environmental Protection Agency-Criminal Investigation Division, U.S. Environmental Protection Agency-Office of Inspector General, Environmental and the U.S Coast Guard Criminal Investigative Service with the assistance of the Indiana Department of Natural Resources and the Indiana Department of Environmental Management. This case was prosecuted by Trial Attorney Richard J. Powers, U.S. Department of Justice, Environmental Crimes Section and Assistant United States Attorney Toi Denise Houston.
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United States Attorney Mike Stuart Issues Statement Regarding Allegations of Sexual Assault at the Beckley Veterans Affairs Medical CenterRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart issued the following statement regarding recent allegations of sexual assault at the Beckley Veterans Affairs Medical Center (VAMC):
“My office has been made aware of the sexual assault allegations at the Beckley VAMC. My office takes these allegations very seriously and is working closely with federal, state and local law enforcement agencies to ensure this matter is investigated thoroughly and quickly.”
Follow us on Twitter: SDWVNews and USAttyStuart
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Two Rochester Men Plead Guilty for Their Roles in Drug ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Pablo Rentas-Torres, 35, and Jesus Fernandez, 25, both of Rochester, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to conspiracy to possess with intent to distribute, and to distribute, quantities of fentanyl, cocaine and crack cocaine. The charge carries a maximum penalty of 20 years in prison, and a $1,000,000 fine.
Assistant U.S. Attorney Matthew T. McGrath, who is handling the case, stated that the defendants were members of a drug trafficking organization led by co-defendant Jose Casado. The organization distributed large quantities of fentanyl, cocaine and crack cocaine out of drug houses located on Clifford Avenue and Treyer Street in Rochester between December 2017 and May 15, 2019.
Jose Casado would obtain bulk quantities of fentanyl, heroin and crack cocaine, then he and other members of the conspiracy would “bag-up” or package the various substances to be sold to individual drug users. Drug users would contact Casado directly via cellular phone to order quantities of drugs and Casado would then routinely direct other members of the conspiracy, including the defendants, to obtain a particular quantity of drugs from the Casado organization’s drug stash, and deliver it to the customer at a pre-arranged location. The drug runners then met with the customer and provided the drugs in exchange for cash. Casado or another member of the organization would collect the proceeds of the drugs sales from the drug runners periodically throughout the day. Between December 2017 and April of 2019, investigators conducted 13 undercover purchases from the organization.
On March 14, 2019, a search warrant was executed at the Clifford Avenue drug house. Members of the Drug Enforcement Administration and Rochester Police Department recovered 18 baggies of fentanyl, nine baggies of powder cocaine, nine baggies of crack cocaine, numerous materials used to package controlled substances, 1,800 rounds of .22 caliber ammunition, and 50 shotgun shells. On May 15, 2019, a second search warrant was executed at the Clifford Avenue residence where investigators recovered a .22 caliber pistol.
Rentas-Torres and Fernandez were arrested along with five other defendants, including Jose Casado. A total of three have been convicted. Charges remain pending against Jose Casado, Whitney Casado, Ricardo Casado and Gamalliett Rosario-Martinez. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The pleas are the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division and the Rochester Police Department, under the direction of Chief La’Ron Singletary.
Rentas-Torres and Fernandez are scheduled to be sentenced on December 13, 2019, at 11:00 a.m. and 11:30 a.m. respectively, both before Judge Geraci.
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Troy McIlwain Sentenced to 48 Months for Possession with Intent to Distribute Crack Cocaine and Violations of Supervised Release ConditionsRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Troy McIlwain, 31, of St. Albans, Vermont, was sentenced today for possession with intent to distribute cocaine base and violations of conditions of supervised release. United States District Judge Christina Reiss sentenced McIlwain to 24 months based on the drug conviction, and 24 months based on the supervised release violation, for a total sentence of 48 months. Judge Reiss also ordered that McIlwain serve a three-year period of supervised release upon his release from prison.
According to court records, McIlwain’s criminal history includes a 2013 federal conviction in Vermont for possession of firearms as a convicted felon. He was placed on supervised release on April 13, 2018, after his release from a term of imprisonment in connection with a previous violation of release conditions. The court issued a warrant for his arrest in June 2018 due to his non-compliance with release conditions. On September 9, 2018, the Burlington Police Department encountered McIlwain as he was driving in Burlington and arrested him on the warrant. During processing at the Chittenden Regional Correctional Facility later that night, corrections officers recovered from McIlwain’s pocket a plastic bag containing 36 baggies of cocaine base. As a result, McIlwain was federally charged with possession with intent to distribute cocaine base.
The government and McIlwain entered into a plea agreement in which McIlwain admitted to the cocaine possession and the violations of supervised release conditions. The court accepted the parties’ agreement providing for a 48-month sentence and sentenced him accordingly.
The government was represented by First Assistant U.S. Attorney Kevin J. Doyle. McIlwain was represented by Paul S. Volk, Esq.
Texas Man Sentenced to 33 Years in Prison for Child KidnappingRead the Press Release
A Texas man was sentenced today to 33 years in prison, followed by five years of supervised release, for child kidnapping.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S Attorney Erin Nealy Cox of the Northern District of Texas and Special Agent in Charge Matthew J. DeSarno of the FBI’s Dallas Field Office made the announcement.
Rene Gloria, 57, of Muleshoe, Texas, was sentenced by U.S. District Judge James Wesley Hendrix of the Northern District of Texas. According to admissions that he made in connection with his guilty plea, on Dec. 24, 2018, Gloria lured two minor children into his car with the promise of money. Once they were in his car, Gloria threatened to kill them and refused to let them out of his car. After several hours, both minors eventually escaped from Gloria’s car and were recovered by law enforcement.
The case was investigated by the FBI with the assistance of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Muleshoe Police Department, the Bailey County Sheriff’s Office, the Plainview Police Department and the Hale County Sheriff’s Office. Trial Attorney Kyle P. Reynolds of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Russell Lorfing of the Northern District of Texas prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Stock Promoter Who Caused Tens of Millions in Losses Pleads Guilty to Securities Fraud ChargesRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Dino Paolucci, 41, of Mississauga, Ontario, entered a plea of guilty to four counts of securities fraud before United States District Judge Eduardo C. Robreno.
The charges resulted from the defendant’s participation in a scheme to manipulate the price and trading volume of the stocks of LiveWire Ergogenics (“LVVV”), YaFarm Technologies (“YFRM”), Resource Ventures (“REVI”), and Medical Cannabis Payment Solutions (“REFG”). This type of scheme is commonly referred to as a “pump-and-dump.”
During the course of the scheme, Paolucci, a stock promoter, worked with others to artificially increase the price and volume of the stocks through the use of false and misleading press releases, email blasts, radio advertisements and tweets, often in coordination with planned trading by other participants in the scheme. The misleading promotion in concert with planned trading was designed to control the price and volume of the stock. In order to hide their scheme from investors and regulators, Paolucci and his fellow schemers used offshore corporations and brokerage accounts, intermediaries, and even fake names, causing tens of millions of dollars of losses to investors while gaining millions in profits for themselves.
“Stock fraud is a danger to free markets and to individual investors, and our securities laws must be vigorously enforced to protect the public,” said U.S. Attorney McSwain. “Those who defraud investors and harm our securities markets will be tracked down and brought to justice, just as Paolucci was here.”
The case was investigated by the Federal Bureau of Investigations, with assistance from the Securities and Exchange Commission. It is being prosecuted by Assistant United States Attorneys Patrick Murray and Judy Smith.
South Carolina Man Pleads Guilt to Production and Receipt of Child PornographyRead the Press Release
PIKEVILLE, Ky. - A South Carolina man admitted in federal court Friday that he knowingly produced and received child pornography.
Jonathan Edward Manigault, 34, pleaded guilty to one count of production of child pornography and one count of knowingly receiving child pornography, before U.S. District Judge Karen K. Caldwell.
Manigault admitted he directed Christina B. Mitchell, of Pike County, to take photographs of a 3-year-old victim, engaging in sexually explicit conduct. Manigault provided Mitchell with specific, detailed instructions on what types of explicit photographs to produce and provide. According to the plea agreement, Mitchell transmitted the photographs of the minor to Manigault using the Facebook Messenger application. After receipt, Manigualt had Mitchell agree to produce additional images of underage victims.
Manigault and Mitchell were indicted on October 24, 2018.
Mitchell pleaded guilty to two counts of producing child pornography on August 26, 2019. According to her plea agreement, Mitchell produced sexually explicit images of a 3-year-old and 8-year-old victims.
“Protecting children from this unconscionable conduct is of the utmost importance to all law enforcement,” said United States Attorney Robert M. Duncan, Jr. “The defendant’s guilty plea today, and his co-defendant’s guilty plea in August, ensure that they will not have the opportunity to victimize other innocent children. I commend the efforts of law enforcement for their work in removing these dangerous individuals from our streets.”
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and James Robert Brown, Special Agent in Charge, FBI Louisville Field Division, jointly announced the guilty plea.
The investigation was conducted by the FBI. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Jenna E. Reed.
Mitchell’s and Manigault’s sentencing hearings are scheduled for December 16, 2019, in Pikeville. Mitchell faces up to 60 years in prison and Manigault faces up to 50 years in prison. Both defendants face a maximum fine of $250,000. However, any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
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Six Defendants Indicted for Methamphetamine Conspiracy ChargesRead the Press Release
Knoxville, Tenn. – On September 4, 2019 a federal grand jury in Knoxville also returned a single count indictment against the following individuals alleging a conspiracy to possess with the intent to distribute 50 grams or more of methamphetamine:
Alim Turner, 21, of Knoxville, Tennessee
Ushery Michael Stewart, 20, of Knoxville, Tennessee
Ronald J Turner, 23, of Knoxville, Tennessee
Kadaris Traysean Gilmore, 21, of Knoxville, Tennessee
Christopher Andrew Hounschell, 31, of Knoxville, Tennessee
Michael Scott Stewart, 40, of Knoxville, Tennessee
The trial is set for November 12, 2019, in front of United States District Judge Thomas A. Varlan. If convicted of the methamphetamine distribution conspiracy charge, each defendant faces a minimum mandatory term of at least 10 years and up to life in prison, at least 5 years of supervised release, a fine of up to $10,000,000, criminal forfeiture, and a $100 special assessment.
FBI Agents and Knoxville Police Officers are looking for Alim Turner. Turner goes by the street name “Baby Popoff.” Turner stands 5’ 9” and weighs 170 pounds. He is known to carry firearms. Anyone with information on his whereabouts is asked to contact the FBI’s Knoxville Field Office at (865) 544-0751 or the Knoxville Police Department at (865) 215-7212.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
This case was investigated by the FBI Safe Streets and High Intensity Drug Trafficking Area (HIDTA) Task Forces. These task forces are comprised of police officers from the Knoxville and Kingston Police Departments, Sheriff’s Deputies from the Knox, Blount, Sevier, Roane and Loudoun County Sheriff’s Offices and prosecutors from the District Attorney General’s Offices and the United States Attorney’s Office for the Eastern District of Tennessee. These task forces are resource multipliers for crime-fighting efforts in East Tennessee, leveraging law enforcement resources to fight the most violent criminals in the area. Assistant United States Attorney Kevin Quencer will represent the United States.
The investigation is a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Puyallup Bar Owner Pleads Guilty to Illegal Drug DistributionRead the Press Release
The former owner of Johnny’s Bar and Grill in Puyallup, Washington, pleaded guilty today in U.S. District Court in Tacoma to possession of methamphetamine with intent to distribute, announced U.S. Attorney Brian T. Moran. JOHN CHOE admits in his plea agreement that, in January 2018, he obtained methamphetamine, cocaine, and heroin from his sources and began selling them to customers at his bar. Between January 2019 and April 2019, CHOE sold cocaine to a person working with law enforcement on four different occasions. The Washington State Liquor and Cannabis Board suspended the bar’s liquor license on June 19, 2019. Judge Benjamin H. Settle scheduled sentencing for December 16, 2019.
According to the facts admitted in the plea agreement, the Drug Enforcement Administration (DEA) and state and local law enforcement began investigating CHOE after receiving information about drug sales at the bar. After the confidential informant and an undercover DEA agent purchased a total of 45 grams of cocaine on four different occasions, law enforcement served a court-authorized search warrant for the bar and for CHOE’s vehicle. Agents found methamphetamine, heroin, synthetic cannabinoids, and Percocet pills in a metal box at the bar. When CHOE was arrested, he was carrying cocaine. CHOE admits all the drugs were for distribution.
Possession of methamphetamine with intent to distribute is punishable by up to 40 years in prison and a $5,000,000 fine. Under some circumstances, the charge carries a mandatory minimum five-year prison term. The ultimate sentence will be determined by the Court based on the advisory Sentencing Guidelines and other statutory factors.
The case was investigated by the DEA’s Tacoma Narcotics Enforcement Task Force (TNET), in collaboration with the Puyallup Police Department. The case is being prosecuted by Assistant United States Attorney Seungjae Lee.
Pueblo Company Owner Pleads Guilty to Falsifying Records to Obstruct a Federal InvestigationRead the Press Release
DENVER – United States Attorney Jason R. Dunn announces that Pueblo business owner Mary Catherine Grasmick pled guilty to falsifying records with the intent to obstruct a federal investigation. The plea was accepted by U.S. District Court Judge Daniel D. Domenico yesterday in United States District Court in Denver. Sentencing is scheduled for December 17, 2019.
In addition to the guilty plea in the criminal case, Ms. Grasmick and her company MASS Service and Supply, LLC also agreed to pay a combined $500,000 to settle civil allegations that they made false statements to the Small Business Administration in connection with government contracts awarded to MASS under the SBA’s Historically Underutilized Business Zone program (“HUBZone”).
The HUBZone program provides federal contracting assistance to qualified small businesses located in historically underutilized business zones. One of the requirements to qualify is that at least 35 percent of a business’s employees must reside in a HUBZone. If a business qualifies, it’s eligible to bid on contracts specifically set aside for HUBZone businesses and gets a price preference when bidding on federal contracts subject to open competition. In order to remain in the HUBZone program, a small business must apply for recertification by the Small Business Administration every three years.
As part of the civil settlement, MASS and Ms. Grasmick acknowledged that between 2009 and 2012, MASS engaged in a scheme to deceive the SBA with the intent to influence the SBA’s effort to determine if MASS was eligible to continue participating in the HUBZone program. Ms. Grasmick directed the scheme, created false documents, and allowed others to create false documents. MASS falsely claimed that some of its employees resided in HUBZones when in fact those employees lived elsewhere in non-HUBZone areas. During that same period, MASS applied for and was awarded a HUBZone set aside contract and a federal contract on which MASS benefited from the HUBZone program’s pricing preference.
The Small Business Administration decertified MASS from the HUBZone program in 2012. The government then conducted an investigation into MASS’s previous representations to the Small Business Association. During the course of that investigation, a special agent of the Defense Criminal Investigative Service requested that MASS provide information relating to MASS’s employees and their HUBZone residency status. According to the facts contained in the plea agreement, Ms. Grasmick caused spreadsheets with false information to be created and sent to the special agent. Ms. Grasmick knew that information in the spreadsheets was false and that the spreadsheets contained false entries, but she intentionally submitted the spreadsheets to the special agent with the intent to impede and obstruct the government’s investigation.
“Obstructing a federal investigation is a crime,” said United States Attorney Jason R. Dunn. “Getting to the truth matters in every case. We are grateful that our prosecutors and excellent law enforcement partners work tirelessly to get to the truth in every investigation -- especially those that concern how our taxpayer dollars are spent.”
“Individuals that provide false information to gain access to SBA’s HUBZone Program harm eligible small businesses and undermine economic development in HUBZone areas,” said Inspector General Hannibal ‘Mike’ Ware. “OIG will continue to aggressively pursue individuals that undermine Americans’ confidence in federal contracting programs designed to assist small businesses. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication to pursuing justice.”
"Today's outcome is a clear example of the continued dedication by the U.S. Army's Criminal Investigation Command's Major Procurement Fraud Unit (MPFU) and our law enforcement partners who work diligently every single day to root out fraud and criminal deception," said Frank Robey, Director of MPFU. "Our reach and capabilities are far and wide."
"This case demonstrates the commitment of the Defense Criminal Investigative Service (DCIS), along with our law enforcement partners, to aggressively pursue those who attempt defraud the United States Government and the Department of Defense," said Michael Mentavlos, Special Agent-in-Charge of the DCIS Southwest Field Office. "This type of criminal activity undermines the integrity of the Small Business Program and demonstrates the commitment of DCIS and our investigative partners in holding those accountable for their actions."
The United States Attorney’s office thanks the Defense Criminal Investigative Service, the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit, the Air Force Office of Special Investigations, the Department of Defense Office of Inspector General, the U.S. General Services Administration Office of the Inspector General, the SBA Office of Inspector General, and the Defense Contract Audit Agency for their diligent work on this investigation.
Assistant United States Attorney Bryan Fields is prosecuting the criminal case. Assistant United States Attorney Jasand Mock handled the civil investigation.
Case No. 19-cr-00308
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Prohibited Possessor Sentenced to Prison for Transporting and Selling Firearms and AmmunitionRead the Press Release
TUCSON, Ariz. – On August 27, 2019, Joshua Pratchard, 38, of San Diego, California, was sentenced by U.S. Senior District Judge Cindy K. Jorgenson to seventy-five months imprisonment, to be followed by a term of five years of probation and two years of supervised release, to be served concurrently. Pratchard previously pleaded guilty to multiple counts of Possession of a Firearm and Ammunition by Convicted Felon and Transferring a Firearm to an Out-of State Resident.
Between January, 2018 and June 1, 2018, Pratchard, a prohibited possessor from California, traveled to southern Arizona, where he sold two firearms and approximately five hundred rounds of ammunition to another individual. The firearms Pratchard sold included a short-barreled rifle and a silencer. When arrested on June 1, 2018, agents searched Pratchard’s vehicle and found additional items including a short-barreled rifle, an AR 15-type rifle, a silencer, a .45 caliber pistol and hundreds of rounds of ammunition. Pratchard was convicted of possessing eight firearms, six of which were in violation of the National Firearms Act, and approximately 1,464 rounds of ammunition.
The investigation in this case was conducted by the Federal Bureau of Investigation, with assistance by the U.S. Border Patrol and Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution was handled by Beverly K. Anderson, Assistant U.S. Attorney, District of Arizona, Tucson.
Prison staff admits to striking an inmateRead the Press Release
CLARKSBURG, WEST VIRGINIA – Tony Moore, a cook supervisor at USP Hazelton in Bruceton Mills, West Virginia, has admitted to assaulting an inmate, United States Attorney Bill Powell announced.
Moore, age 39, pled guilty to one count of “Assault by Striking.” Moore admitted to striking an inmate while on duty without just cause or reason in November 2017.Moore faces up to 12 months incarceration and a fine of up to $1,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Andrew R. Cogar is prosecuting the case on behalf of the government. The Department of Justice Office of Inspector General investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Pennsylvania Man Sentenced for Attempted Travel to Philippines to Have Sex with MinorsRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that defendant Jack Russell Bristol, 62, of Troy, Pennsylvania, was sentenced to thirty years’ incarceration and ten years’ supervised release by United States District Court Judge Gerald J. Pappert for child exploitation offenses.
The defendant was arrested by the Department of Homeland Security Investigations as part of an online investigation involving the sexual exploitation and trafficking of children via live-streaming webcams. For more than a year, the defendant paid for live-streamed sex shows that featured children in the Philippines. The defendant sought out young girls, some as young as 8 years of age, and paid their adult handlers to have the girls strip on camera, masturbate, and engage in sex acts with other children and with adults. The investigation confirmed that Bristol spent approximately $600 every month for these live-streamed shows, and over the last few months before his arrest, had repeated contact with two sisters who were just 12 and 14 years old.
As part of his abuse of these girls, the defendant made arrangements to travel to the Philippines, where he had paid to stay with a host family that had five girls, all under the age of 18. Bristol’s plan was to have sex with the two sisters he had been communicating with online, but he was intercepted by federal agents in Philadelphia as he attempted to board a plane to the Philippines.
Bristol confessed to agents on the day of his arrest, and later pleaded guilty to all three charges in the Indictment, for which he was sentenced today: two counts of using the Internet to entice a minor to engage in sexual conduct, and one count of attempted foreign travel to engage in illicit sexual activity with a minor.
“Child predators often go to extreme lengths to get what they want, and this case is a prime example of that – this defendant was ready to travel literally to the other side of the globe,” said U.S. Attorney McSwain. “We stand ready with our federal and local partners to identify and prosecute those who would prey upon minor children.”
“Protecting children from predators is a top priority for Homeland Security Investigations,” said Marlon V. Miller, Special Agent in Charge of HSI Philadelphia. “Today’s sentencing demonstrates that we will not tolerate the sexual abuse of children anywhere in the world. HSI will vigorously investigate anyone who attempts to travel overseas to exploit and take advantage of children.”
This case is part of Project Safe Childhood (PSC), a program bringing together all levels of law enforcement and the communities they serve to reduce the sexual exploitation and abuse of children. The case was investigated by the Department of Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Michelle Rotella.
Pawnshop Robber Sentenced to 25 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Virginia M. Hernandez Covington today sentenced Terry Alonzo Wilson (53, Tampa) to 25 years in federal prison for planning and carrying out an armed robbery of a Tampa pawnshop. The court also ordered Wilson to forfeit $63,543, which includes the $61,943 in jewelry and $1,600 in cash that Wilson and his co-defendant, Jeremy Williams (35, Miami), had taken from the pawnshop during the robbery.
On June 18, 2019, a jury found Wilson guilty of conspiracy to commit robbery, robbery, brandishing a firearm during a robbery, and possessing a firearm as a convicted felon.
According to court documents and evidence presented during the trial and the sentencing hearing, Wilson recruited Williams to rob the Value Pawn & Jewelry, located at 5401 North 40th Street in Tampa. During the robbery, on September 14, 2018, Wilson pointed a loaded pistol at two employees and a customer who were inside the store and threated to kill them. Wilson also brought zip ties to the robbery and instructed Williams to tie up the employees and the customer. Wilson forced the store manager to disconnect the store’s security video recording system, which Wilson took with him when he left the store.
In total, Wilson and Williams took $63,543 worth of jewelry and cash from the pawnshop. At the time of the robbery, Wilson had recently completed a 20-year sentence for robbing another Tampa pawnshop at gunpoint. He was released from prison less than four months before committing the armed robbery of the Value Pawn & Jewelry.
Williams pleaded guilty to his role in the case and testified during Wilson’s trial. On July 16, 2018, Williams was sentenced to nearly 11 years in prison.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Taylor G. Stout.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Owner and Chief Executive Officer of Telemedicine Company Pleads Guilty to $424 Million Conspiracy to Defraud Medicare and Receive Illegal Kickbacks in Exchange for Orders of Durable Medical EquipmentRead the Press Release
The owner and chief executive officer (CEO) of a telemedicine company pleaded guilty today for his role in one of the largest health care fraud schemes ever investigated by the FBI and the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) and prosecuted by the Department of Justice, which resulted in charges in April 2019 against 24 defendants.
Lester Stockett, 52, of Medellin, Colombia, pleaded guilty today to one count of conspiracy to defraud the United States and pay and receive health care kickbacks, and one count of conspiracy to commit money laundering. Stockett was the owner of Video Doctor USA (Video Doctor) and Telemed Health Group LLC (AffordADoc) (collectively, the Video Doctor Network), and was the CEO of AffordADoc. In connection with his plea agreement, Stockett agreed to pay $200 million in restitution to the United States, as well as forfeit assets and property traceable to proceeds of the conspiracy to defraud the United States and conspiracy to commit money laundering. Stockett’s sentencing is set for Dec. 16 before U.S. District Judge Madeline Cox Arleo of the District of New Jersey, who accepted his plea today.
“This CEO and his co-conspirators lined their own pockets with hundreds of millions of dollars by exploiting telemedicine technology meant to help elderly and disabled patients in need of health care,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Today’s plea shows that the Department of Justice remains laser-focused on uprooting corporate health care fraud schemes, especially those built on the backs of the most vulnerable members of our community.”
“Health care fraud results in billions of dollars in losses and affects a multitude of people across American communities,” said FBI Assistant Director Robert Johnson. “We take violations of these laws extremely seriously. The FBI will use our full investigative resources and continue to collaborate with HHS-OIG, IRS-CI, and other partners to stop this type of illegal activity.”
“The extent of Mr. Stockett's fraud and money laundering, literally, knew no bounds,” said Special Agent in Charge Gregory W. Ehrie of the FBI’s Newark Field Office. “From the U.S. to Latin America, the Philippines, and the Dominican Republic, the FBI followed the trail of ill-gotten gains back to Stockett and his conspirators. They stole precious federal funds earmarked to assist the elderly. His admission today should resonate with anyone who is committing fraud against the U.S. government – the FBI will find you and your criminal efforts will not pay off.”
“This global scheme that took advantage of hundreds of thousands of vulnerable individuals was fueled by unbounded greed without regard for the rules of law,” said Deputy Inspector General for Investigations Gary L. Cantrell of the U.S. Department of Health and Human Services Office of Inspector General. “We will continue to work with our law enforcement partners to bring to justice those that prey on unsuspecting beneficiaries and steal from taxpayer-funded health care programs.”
“Bribes and illegal kickbacks will not be tolerated as part of our nation’s healthcare system,” said Special Agent in Charge John R. Tafur of IRS Criminal Investigation, Newark Field Office. “Medical equipment should only be ordered when medically necessarily, not when criminals wish to line their own pockets. Today’s guilty plea should let the American public know that IRS Criminal Investigation and our law enforcement partners will continue to root out individuals like Mr. Stockett who look to illegally profit off of our health care system.”
In connection with his guilty plea, Stockett admitted that he and others agreed to solicit and receive illegal kickbacks and bribes from patient recruiters, pharmacies, brace suppliers and others in exchange for arranging for doctors to order medically unnecessary orthotic braces (braces) for beneficiaries of Medicare and other insurance carriers. The beneficiaries were contacted through an international telemarketing network that lured hundreds of thousands of elderly and/or disabled patients into a criminal scheme that crossed borders, involving call centers in the Philippines and throughout Latin America.
Stockett admitted that, in order to obtain the orders that were transmitted in exchange for kickbacks and bribes, he and other executives and employees of the Video Doctor Network paid illegal kickbacks and bribes to health care providers to order medically unnecessary braces for Medicare beneficiaries. Many of these orders were written after only a short telephone call between the health care provider and the beneficiary, with whom the health care provider had no prior doctor-patient relationship.
Stockett and others transferred the brace orders to co-conspirator brace suppliers to support more than $424 million in false and fraudulent claims to Medicare that were submitted by brace suppliers, he admitted. Medicare paid these brace suppliers in excess of $200 million for these claims.
Stockett admitted that he and other executives and employees of the Video Doctor Network were aware that it was a violation of the Anti-Kickback Statute for the Video Doctor Network or its owners or investors to receive money, directly or indirectly, from patient recruiters, purported marketers or marketing organizations, brace suppliers or pharmacies. Stockett and his co-conspirators concealed the illegal kickbacks and bribes by causing them to be paid indirectly through nominee companies and bank accounts, opened by Stockett and others in nominee names both in the United States and in foreign countries, including in the Dominican Republic, Stockett admitted. Stockett further admitted that he and others hid the existence of the foreign companies and bank accounts by making, or causing to be made, false statements to financial institutions and falsely reporting to the IRS and others that they and others had no influence over foreign bank accounts.
In addition, Stockett admitted that he and other owners and executives of the Video Doctor Network schemed to defraud investors and others by making false and fraudulent representations that the Video Doctor Network was a legitimate telemedicine enterprise that made revenue of “$10 million per year” and “20% profit” from payments by beneficiaries who enrolled in a membership program and paid for the telemedicine consultations. These statements were false because revenue was obtained by the Video Doctor Network through the receipt of illegal kickbacks and bribes, Stockett admitted.
With regard to money laundering, Stockett admitted that beginning about March 2016 and continuing to about April 2019, he and other owners and executives of the Video Doctor Network conspired to engage in domestic and international money laundering. Specifically, Stockett and his coconspirators transferred in excess of approximately $10 million in illegal kickback payments that they received, from a bank account of PCS CC LLC, a corporation located in the United States, to the bank account of Droneza Consulting, a corporation located in the Dominican Republic. Stockett and others then transferred more than $9.8 million from a bank account of Droneza Consulting to bank accounts of AffordADoc in the United States, in order to conceal that the Video Doctor Network was receiving kickbacks from brace suppliers in exchange for arranging for doctors to write orders that the Video Doctor Network provided to the brace suppliers, Stockett admitted.
Stockett was charged along with Creaghan Harry, 51, of Highland Beach, Florida, and Elliot Loewenstern, 56, of Boca Raton, Florida, in an indictment charging one count of conspiracy to defraud the United States and pay and receive health care kickbacks and four counts of health care kickbacks. Stockett and Harry were separately charged with one count of conspiracy to commit money laundering. The case against Harry and Loewenstern is pending before Judge Arleo. Trial has not been set.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI, HHS-OIG and IRS-CI. Acting Assistant Chief Jacob Foster and Trial Attorney Darren Halverson of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Any doctors or medical professionals who have been involved with alleged fraudulent telemedicine and DME marketing schemes – including Video Doctor USA and AffordADoc – should call to report this conduct to the FBI hotline at 1-800-CALL-FBI.
Additional documents related to the investigation and prior indictments are available here: https://www.justice.gov/opa/documents-and-resources-april-9-2019-press-release-health-care-fraud.
Orlando Man Sentenced to 40 Years for Sexually Exploiting ChildrenRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced Carlos A. Rodriguez Fernandez (48, Orlando) to 40 years in federal prison for sexually exploiting a 14-year-old girl and for possessing child pornography. The court also ordered Rodriguez Fernandez to forfeit the electronic devices that he had used to commit the offenses.
A federal jury had found Rodriguez Fernandez guilty on June 14, 2019.
According to court documents and evidence presented during the trial and sentencing hearing, Rodriguez Fernandez hid a webcam in the victim’s bathroom and recorded sexually explicit videos of the child. He also used an online file-sharing program to download and view child pornography. The Florida Department of Law Enforcement Cybercrimes Task Force identified Rodriguez Fernandez after he had shared child pornography through a file-sharing program.
During the execution of a search warrant at Rodriguez Fernandez’s residence, agents recovered several electronic devices containing 160 images and 6 videos depicting the sexual abuse and exploitation of young children and teens. The agents also located a webcam that Rodriguez Fernandez had concealed behind an electrical outlet plate across from the toilet in the 14-year-old’s bathroom. Rodriguez Fernandez ran the camera’s USB cord through the bathroom wall to his office, where he had attached it to his computer. Rodriguez Fernandez recorded and saved the illicit videos of the child on his computer.
This case was investigated by the FDLE Cybercrimes Task Force, whose members include FDLE, Homeland Security Investigations, the Lake County Sheriff’s Office, the Clermont Police Department, the Kissimmee Police Department and the Altamonte Springs Police Department. It was prosecuted by Assistant United States Attorney Karen L. Gable.
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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to 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.
North Carolina Bloods Gang Members Plead Guilty to Racketeering Conspiracy Involving MurdersRead the Press Release
Two North Carolina members of the United Blood Nation (UBN or Bloods) street gang have pleaded guilty to Racketeer Influenced and Corrupt Organizations (RICO) conspiracy involving multiple murders.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney R. Andrew Murray for the Western District of North Carolina and Special Agent in Charge John A. Strong of the FBI’s Charlotte Field Office, made the announcement.
Tyquan Ramont Powell, aka Savage, 24, of Charlotte, North Carolina, and Lamonte Kentrell Lloyd, aka Murda Mo and Moo, 25, of Scotland Neck, North Carolina, both admitted their membership in the UBN and participation in the racketeering enterprise through acts involving murder and robbery.
According to court documents, Powell and Lloyd committed two murders and three attempted murders over the course of less than a month. Powell and Lloyd committed the first murder in Scotland Neck, North Carolina, in January 2016 by shooting into a car with three occupants because they believed that one of the occupants was cooperating with law enforcement and intended to testify in a criminal case against a close associate of the defendants. Bullets struck all three occupants and the intended target of the shooting was killed. The Defendants then fled to, among other places, Charlotte, North Carolina, where they sought and received refuge and resources from UBN members and associates while attempting to evade arrest.
Also according to court documents, Powell and Lloyd committed murder in Gastonia, North Carolina, in February 2016. The Defendants attempted to rob four victims using handguns. When the victims resisted the defendants’ robbery attempt, Powell fired his firearm and killed one of the victims. Also in February 2016, according to court documents, Powell and Lloyd attempted to rob another victim. Lloyd shot the victim in the back of the head, but the victim was effectively treated for his injuries at the hospital and lived.
According to court documents and evidence presented at a May 2018 trial against the godfathers of the UBN, the UBN is a violent criminal street gang operating throughout the east coast of the United States since it was founded as a prison gang in 1993. UBN members are often identified by their use of the color red, and can also often be identified by common tattoos or burn marks. Examples include: a three-circle pattern, usually burned onto the upper arm, known as a “dog paw”; the acronym “M.O.B.,” which stands for “Member of Bloods”; the words “damu,” or “eastside”; the number five; the five-pointed star and the five-pointed crown. UBN members have distinct hand signs and written codes, which are used to identify other members and rival gang members.
Members of the UBN are expected to conduct themselves and their illegal activity according to rules and regulations set by their leaders. Prominent among these is a requirement to pay monthly dues to the organization, often in the amounts of $31 or $93. UBN gang dues are derived from illegal activity performed by subordinate UBN members including narcotics trafficking, robberies and wire fraud, among other forms of illegal racketeering activity.
In May 2017, 83 members of the UBN were indicted in the Western District of North Carolina for crimes including RICO conspiracy. Seventy-eight defendants have now either pleaded guilty or been convicted at trial due to this investigation, and 68 have been sentenced. A jury convicted three top leaders of the UBN of racketeering conspiracy in May 2018, and one defendant was convicted of racketeering conspiracy and wire fraud conspiracy at trial in July 2019. Seventy-four defendants have pleaded guilty in this investigation, including four who participated in the racketeering conspiracy by, among other crimes, committing a murder in July 2016 in Chapel Hill, North Carolina.
The investigation was conducted by the FBI; the Charlotte Mecklenburg Police Department; the Shelby Police Department; the Cleveland County Sheriff’s Office; the Gastonia Police Department; the North Carolina State Highway Patrol; the Mecklenburg County Sheriff’s Office; the North Carolina Division of Adult Correction and Juvenile Justice; the North Carolina Department of Motor Vehicles; Scotland Neck Police Department; the North Carolina State Bureau of Investigation; the Halifax County Sheriff’s Office; the U.S. Federal Probation; the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; the IRS Criminal Investigation; the U.S. Postal Inspection Service; the U.S. Army Criminal Investigation Command and the New York Department of Corrections and Community Supervision, Office of Special Investigations.
Trial Attorney Beth Lipman of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Matt Warren and Christopher Hess for the Western District of North Carolina are prosecuting the case.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
North Carolina Bloods Gang Members Plead Guilty to Racketeering Conspiracy Involving MurdersRead the Press Release
CHARLOTTE, N.C. – Two North Carolina members of the United Blood Nation (UBN or Bloods) street gang have pleaded guilty to Racketeer Influenced and Corrupt Organizations (RICO) conspiracy involving multiple murders.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney R. Andrew Murray for the Western District of North Carolina and Special Agent in Charge John A. Strong of the FBI’ Charlotte Field Office, made the announcement.
Tyquan Ramont Powell, aka Savage, 24, of Charlotte, North Carolina, and Lamonte Kentrell Lloyd, aka Murda Mo and Moo, 25, of Scotland Neck, North Carolina, both admitted their membership in the UBN and participation in the racketeering enterprise through acts involving murder and robbery.
According to court documents, Powell and Lloyd committed two murders and three attempted murders over the course of less than a month. Powell and Lloyd committed the first murder in Scotland Neck, North Carolina, in January 2016 by shooting into a car with three occupants because they believed that one of the occupants was cooperating with law enforcement and intended to testify in a criminal case against a close associate of the defendants. Bullets struck all three occupants and the intended target of the shooting was killed. The Defendants then fled to, among other places, Charlotte, North Carolina, where they sought and received refuge and resources from UBN members and associates while attempting to evade arrest.
Also according to court documents, Powell and Lloyd committed murder in Gastonia, North Carolina, in February 2016. The Defendants attempted to rob four victims using handguns. When the victims resisted the defendants’ robbery attempt, Powell fired his firearm and killed one of the victims. Also in February 2016, according to court documents, Powell and Lloyd attempted to rob another victim. Lloyd shot the victim in the back of the head, but the victim was effectively treated for his injuries at the hospital and lived.
According to court documents and evidence presented at a May 2018 trial against the godfathers of the UBN, the UBN is a violent criminal street gang operating throughout the east coast of the United States since it was founded as a prison gang in 1993. UBN members are often identified by their use of the color red, and can also often be identified by common tattoos or burn marks. Examples include: a three-circle pattern, usually burned onto the upper arm, known as a “dog paw”; the acronym “M.O.B.,” which stands for “Member of Bloods”; the words “damu,” or “eastside”; the number five; the five-pointed star and the five-pointed crown. UBN members have distinct hand signs and written codes, which are used to identify other members and rival gang members.
Members of the UBN are expected to conduct themselves and their illegal activity according to rules and regulations set by their leaders. Prominent among these is a requirement to pay monthly dues to the organization, often in the amounts of $31 or $93. UBN gang dues are derived from illegal activity performed by subordinate UBN members including narcotics trafficking, robberies and wire fraud, among other forms of illegal racketeering activity.
In May 2017, 83 members of the UBN were indicted in the Western District of North Carolina for crimes including RICO conspiracy. Seventy-eight defendants have now either pleaded guilty or been convicted at trial due to this investigation, and 68 have been sentenced. A jury convicted three top leaders of the UBN of racketeering conspiracy in May 2018, and one defendant was convicted of racketeering conspiracy and wire fraud conspiracy at trial in July 2019. Seventy-four defendants have pleaded guilty in this investigation, including four who participated in the racketeering conspiracy by, among other crimes, committing a murder in July 2016 in Chapel Hill, North Carolina.
The investigation was conducted by the FBI; the Charlotte Mecklenburg Police Department; the Shelby Police Department; the Cleveland County Sheriff’s Office; the Gastonia Police Department; the North Carolina State Highway Patrol; the Mecklenburg County Sheriff’s Office; the North Carolina Division of Adult Correction and Juvenile Justice; the North Carolina Department of Motor Vehicles; Scotland Neck Police Department; the North Carolina State Bureau of Investigation; the Halifax County Sheriff’s Office; the U.S. Federal Probation; the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; the IRS Criminal Investigation; the U.S. Postal Inspection Service; the U.S. Army Criminal Investigation Command and the New York Department of Corrections and Community Supervision, Office of Special Investigations.
Trial Attorney Beth Lipman of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Matt Warren and Christopher Hess for the Western District of North Carolina are prosecuting the case.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Newton Man Sentenced for Business Loan SchemeRead the Press Release
BOSTON – A Newton man was sentenced yesterday in federal court in Boston for illegally using the identity of another individual to apply for two business loans.
Igor Mosieev, 59, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 30 months in prison and five years of supervised release. In addition, Mosieev was ordered to pay restitution in the amount of $91,418.
In May 2019, Mosieev pleaded guilty to two counts of bank fraud and one count of aggravated identity theft. In June 2018, Mosieev was arrested and charged with co-defendant Alexander Grinis, 47, of Jamaica Plain.
Grinis was the manager of Eastern Bank in Auburndale where his responsibilities included assisting customers with opening and closing accounts and applying for loans and lines of credit. In approximately February 2015, Grinis assisted Mosieev in opening a checking and savings account at Eastern Bank with the license and Social Security card of another individual, without the knowledge or consent of that person. Later that year, Grinis assisted Mosieev in adding the individual to a business account in the name of TFC Enterprises, LLC. Thereafter, Mosieev forged the individual’s name on applications for two purported business loans. On each loan application, Grinis falsely certified that he had complied with all bank procedures and, as a result, the loans were approved. The proceeds of the two loans were subsequently distributed to the business checking account and Mosieev forged the individual’s name on checks and withdrew money from the account to pay for his own personal expenses. In addition, Mosieev, with Grinis’ assistance, caused proceeds from the business checking account to be wired to Russia, Canada, and elsewhere overseas using the individual’s name. Both loans defaulted and were never paid back to Eastern Bank, resulting in a loss of over $90,000.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Laura J. Kaplan of Lelling’s Organized Crime and Gang Unit prosecuted the case.
Newton Accountant Pleads Guilty to Wire Fraud and Filing False Tax ReturnRead the Press Release
BOSTON – A Newton man pleaded guilty yesterday in federal court in Boston to charges of wire fraud and filing a false tax return.
Jeffrey Kellem, 49, pleaded guilty to four counts of wire fraud and one count of filing a false tax return. Kellem was charged by Information in August 2019. Sentencing has been scheduled for Dec. 5, 2019.
Kellem used his position as an accountant for an elderly client, and the estate of a deceased client, to steal more than approximately $1.6 million for his own use. Kellem transferred his clients’ funds, without their authorization, to bank accounts he opened and controlled. He also failed to report more than $500,000 in income from the funds he took on his tax returns. As a result, in 2017, Kellem avoided paying taxes totaling more than $150,000.
The charge of wire fraud carries a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater, and forfeiture. The charge of filing a false tax return carries a sentence of up to three years in prison, one year of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement. Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Securities and Financial Fraud Unit is prosecuting the case.
New Hampshire Drywall Business Owner Indicted for Tax FraudRead the Press Release
A federal grand jury sitting in Concord, New Hampshire, returned an indictment charging Walter Rodriguez with three counts of filing false tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and United States Attorney Scott W. Murray for the District of New Hampshire.
According to the indictment, from at least 2011 through 2013, Rodriguez owned and operated a drywall business in Manchester, New Hampshire, under the name Walter Rodriguez Drywall and Finish. Rodriguez’s drywall business allegedly performed work for large construction companies located in New Hampshire, Massachusetts, New York and other states. The indictment charges that the construction companies typically issued Forms 1099 to Rodriguez’s business for payments made to Rodriguez, or to his drywall business, during each of the relevant years. In addition to these payments reported to the Internal Revenue Service, the construction companies allegedly paid Rodriguez by checks issued in the names of fictitious or fraudulent identities. Rodriguez is alleged to have cashed or caused to have cashed these checks at commercial check cashers in the New Hampshire and Massachusetts area. The indictment charges that Rodriguez filed false tax returns that underreported the total gross receipts of his business.
If convicted, Rodriguez face a maximum penalty of three years in prison for each false tax return count. He also faces a period of supervised release, restitution, and monetary penalties.
An indictment merely alleges that crimes have been committed. A defendant is presumed innocent unless and until proven guilty.
The case was investigated by special agents of the Internal Revenue Service-Criminal Investigation. Tax Division Trial Attorney Brittney Campbell and Assistant United States Attorney Robert Kinsella are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Montgomery County Man Indicted for Bank Fraud in Scheme to Convert Collateral on Loans from the Farm Service AgencyRead the Press Release
LEXINGTON, Ky. – A Montgomery County man was indicted Thursday on multiple counts of bank fraud in a scheme to avoid repaying more than $150,000 in loans from the Farm Service Agency (FSA), a division of the United States Department of Agriculture.
A federal grand jury in Lexington returned an 11-count indictment charging Steven Ray Williams, 57, with selling off secured loan collateral, including cattle and farm equipment, in the names of other individuals and then forging endorsement signatures on checks, all in order to avoid turning over the proceeds to the Farm Service Agency.
Williams was also charged with aggravated identity theft for using the means of identity of another person, without permission, in order to facilitate bank fraud.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Bethanne M. Dinkins, Acting Special Agent in Charge, Southeast Region, United States Department of Agriculture Office of Inspector General, jointly announced the indictment. The investigation preceding the indictment was conducted by the U.S. Department of Agriculture, Office of Inspector General. The indictment was presented to the grand jury by Assistant U.S. Attorney William Moynahan.
A date for Williams to appear in federal court has not yet been scheduled. He faces up to 30 years in prison and a fine of $1,000,000 on each bank fraud count. For the aggravated identity theft, he faces a prison sentence of two years. However, any sentence following a conviction would be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
Any indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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Minnesota Man Sentenced for Attempted Receipt of Child PornographyRead the Press Release
United States Attorney Ron Parsons announced that an Eden, Minnesota, man convicted of Attempted Receipt of Child Pornography was sentenced on August 30, 2019, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Jimmy Custodio, age 41, was sentenced to 7 1/2 years in federal prison, followed by 5 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Custodio was one of nine men who were arrested and federally indicted as a result of an undercover sex trafficking operation conducted during the 2017 Sturgis Motorcycle Rally, targeting persons willing to pay to have sex with underage girls or boys obtained through the Internet. The conviction stemmed from Custodio communicating with someone he believed to be a minor for the purpose of engaging in sexual acts, and requesting that the minor send pornographic images to Custodio.
The undercover operation and arrests were a joint effort between the South Dakota Division of Criminal Investigation, the Department of Homeland Security, the Federal Bureau of Investigation, the Rapid City Police Department, and the Pennington County Sheriff’s office. Assistant U.S. Attorney Sarah Collins prosecuted the case.
Custodio was immediately remanded to the custody of the U.S. Marshals Service.
Methamphetamine Trafficker in Hattiesburg Sentenced to over 21 Years in Federal PrisonRead the Press Release
Hattiesburg, Miss. – Isaiah Longino, 38, of Hattiesburg, was sentenced yesterday by Senior U.S. District Judge Keith Starrett to serve 262 months in federal prison, followed by 5 years of supervised release, for possession with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Brad Byerley with the Drug Enforcement Administration (DEA). Longino was also ordered to pay a $5,000 fine.
An investigation by the DEA revealed that Longino was a distributor of methamphetamine in the Forrest County area. On January 25, 2018, in Hattiesburg, Longino sold 445 grams of methamphetamine to a DEA confidential source for $5,500. Longino pled guilty on April 12, 2019, to possession with intent to distribute methamphetamine.
The case was investigated by the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Shundral H. Cole.
McLaughlin Man Charged with Assaulting a Federal Officer and Assault with a Dangerous WeaponRead the Press Release
United States Attorney Ron Parsons announced that a McLaughlin, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer, and Assault with a Dangerous Weapon.
Amos Talks, age 24, was indicted on August 13, 2019. He appeared before U.S. Magistrate Judge William D. Gerdes on September 3, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 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 June 21, 2018, Talks did forcibly assault, resist, oppose, impede, intimidate, and interfere with a federal law enforcement officer, and that such conduct involved the use of a dangerous weapon.
The charges are merely accusations and Talks is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Kirsten Jasper is prosecuting the case.
Talks was released on bond pending trial. A trial date has not been set.
Man Sentenced for Looting Thrift Savings Plan AccountRead the Press Release
ALEXANDRIA, Va. – A Maryland man was sentenced today to four years in prison for stealing the identity of an Alexandria resident and withdrawing funds from the victim’s retirement savings account.
According to court documents, Alpha Kanu, 29, of Laurel, illegally obtained the victim’s name, date of birth, address, and Social Security number. He then used that information to access the victim’s online account with the Virginia Department of Motor Vehicles to obtain the victim’s driver’s license number, as well as to change the victim’s mailing address. Kanu learned that the victim, a 28-year federal employee presently serving as a civilian employee of the U.S. Army, had a substantial amount of retirement savings in a Thrift Savings Plan (TSP) account. Kanu, impersonating the victim, took out a $45,000 loan against the TSP account, the proceeds of which he deposited into a bank account in the victim’s name. Kanu subsequently withdrew those ill-gotten funds and used them on personal purchases.
The money stolen from the victim’s account was reimbursed to the victim as an administrative expense of the TSP, a cost borne by all TSP participants.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Timothy M. Dunham, Special Agent in Charge, Criminal Division, FBI Washington Field Office, and Richard Delmar, Acting Inspector General for the U.S. Department of Treasury, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. Special Assistant U.S. Attorney Michael L. Jones and Assistant U.S. Attorney Alexander E. Blanchard prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-147.
Malicious Cyber Activity and Online Scam Warning in Wake of Hurricane DorianRead the Press Release
PROVIDENCE – United States Attorney Aaron L. Weisman today urged everyone, particularly online users, to remain vigilant for malicious cyber activity and would-be scammers who may target Hurricane Dorian disaster victims and potential donors.
Fraudulent emails commonly appear after major natural disasters and often contain links or attachments that direct users to malicious websites. Users should exercise caution in handling any email with a hurricane related subject line, attachment, or hyperlink. In addition, users should be wary of social media pleas, texts, or door-to-door solicitations relating to severe weather events.
U.S. Attorney Aaron Weisman commented, “We have all seen the heartbreaking pictures and heard the heart wrenching details of the devastation hundreds of thousands of people are experiencing in the wake of Hurricane Dorian. Sadly, there are always heartless, greedy individuals waiting to pounce on the kindness of others and victimize them.”
U.S. Attorney’s across the country are encouraging Americans to review the following resources for more information and to take preventative measures to avoid becoming victims of malicious activity.
• Staying Alert to Disaster-related Scams
• Before Giving to a Charity
• Staying Safe on Social Networking Sites
• Avoiding Social Engineering and Phishing Attacks
If you believe you have been a victim of cybercrime, file a complaint with the Federal Bureau of Investigation Internet Crime Complaint Center at www.ic3.gov
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Local Plaintiff’s Attorney Sentenced to 3 Years in Prison for Corruptly Obstructing an IRS AuditRead the Press Release
SACRAMENTO, Calif. — Today, U.S. District Judge William B. Shubb sentenced Stephen J. Dougan, 57, formerly of Granite Bay, now residing in Utah, to three years in prison and one year of supervised release for corruptly endeavoring to impede the due administration of the Internal Revenue Laws, U.S. Attorney McGregor W. Scott announced.
According to court documents and evidence presented at trial, during an Internal Revenue Service audit of his 2006 and 2007 tax returns, Dougan made false statements, including falsely representing that he was redacting checks to protect client confidentiality when in fact, he also redacted his own name from checks he wrote to himself; withheld documents from the IRS; and provided false and misleading documents to the IRS that substantially underrepresented his income in 2006 and 2007. He also made false statements and provided false and misleading documents to the IRS in order to substantiate various business expenses he claimed on Schedule C of his 2006 tax return, including submitting a false advertising invoice and falsely claiming that his personal divorce attorney was his assistant or paralegal.
U.S. Attorney Scott stated: “This defendant is a lawyer who refused to obey the law. As determined by the trial judge and jury, he did not make an impulsive error in judgment, but rather his conduct was long-term, complex, and deliberate. This sentence reflects the discredit he brought to the legal profession.”
“The defendant used his legal knowledge and his lies to organize a complex scheme to hide over $1.4 million of income,” said Kareem Carter, Special Agent in Charge IRS Criminal Investigation. “When the IRS audited his tax returns, he concealed more than $650,000 in back taxes in an effort to obstruct the audit. Today’s sentencing sends a clear message that those involved in these types of schemes will be held accountable for their crimes.”
This case was the product of an investigation by IRS Criminal Investigation. Assistant U.S. Attorneys Michael M. Beckwith, Chi Soo Kim, Matthew D. Segal, Matthew M. Yelovich, and Amy S. Hitchcock prosecuted the case.
Lima Man Charged with Sex Trafficking Minor GirlRead the Press Release
COLUMBUS, Ohio – A registered sex offender has been charged with federal crimes related to sex trafficking a 14-year-old girl.
A federal grand jury has charged Nicholas Salvadore Cochran, 28, of Lima, Ohio, with sex trafficking a minor, sexually exploiting a minor, distributing and possessing child pornography and committing a sex offense while registered as a sex offender in an indictment filed here today.
Cochran was arrested on Aug. 9 as part of Operation Independence Day – a nationwide FBI-led operation to identify and arrest sex traffickers and recover child victims.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Todd A. Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Ohio Attorney General Dave Yost, Celina Police Chief Thomas Wale, Allen County Sheriff Matthew B. Treglia, Westerville Police Chief Charles Chandler and other members of the FBI’s Child Exploitation Task Force announced the charges.
According to the indictment, last month Cochran caused a minor female victim to engage in commercial sex acts with several men in exchange for money.
Court documents detail that Cochran met the minor victim on Snapchat approximately five months prior.
Phone numbers linked to Cochran were allegedly posted on the website skipthegames.com in the female escorts section. Cochran’s advertisement stated, in part: “…do not attempt to low ball me I can skype and I have duo for verification and i will send one nude No small talk time is money and I don’t like mine wasted…”
Investigation of the advertisements revealed that between July 9 and July 14, Cochran allegedly posted approximately 25 ads for the Lima-Findlay, Dayton and Columbus areas. He allegedly posted ads for sex with the child victim daily, and those ads contained nude photographs of the minor.
Cochran had been convicted of two counts of sexual battery and one count of attempted sexual battery in Henry County in 2009.
Cochran faces up to life in prison.
U.S. Attorney Glassman commended the investigation of this case by the FBI, the Ohio Attorney General’s Bureau of Criminal Investigation (BCI), the Celina and Westerville police departments and the Allen County Sheriff’s Office as well as Assistant United States Attorney Heather A. Hill, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Lexington Woman Indicted for Making Fake Bomb Threats to City’s 911 Emergency Response CenterRead the Press Release
LEXINGTON, Ky. – A Lexington woman was indicted Thursday for making multiple false bomb threats to Lexington’s 911 emergency response center.
A federal grand jury in Lexington returned a 3-count indictment charging 31-year-old Crystal Brotherton with intimidating individuals by making threats involving explosives and the destruction of buildings. The indictment specifically alleges Brotherton called Lexington’s 911 system and told the operator there were bombs at multiple business at an intersection off of New Circle Road. She allegedly demanded the businesses be evacuated in 15 minutes or “everyone will die.” According to the indictment, Brotherton made three calls to 911 around June 20 and 21, 2018, all involving similar threats of death and destruction.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; James Robert Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation; and Lawrence Weathers, Chief of the Lexington Police Department, jointly announced the indictment. The investigation preceding the indictment was conducted by the Lexington Police Department and the Federal Bureau of Investigation. The indictment was presented to the grand jury by Assistant U.S. Attorney William Moynahan.
A date for Brotherton to appear in federal court has not yet been scheduled. She faces up to 10 years in prison and a fine of $250,000 for each charge. However, any sentence following a conviction would be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
Any indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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Lexington Man Gets 10 Years in Federal Prison on Firearm and Drug ChargesRead the Press Release
Columbia, South Carolina -- United States Attorney Sherri A. Lydon announced today that Gabrielle Chase Watts, age 35, of Lexington, was sentenced to 10 years in federal prison after pleading guilty to being a felon in possession of a firearm and ammunition, two counts of possession with intent to distribute methamphetamine, and distribution of methamphetamine. Senior United States District Judge Cameron McGowan Currie of Columbia imposed the sentence. After 10 years, Watts will remain under court-ordered supervision for an additional 6 years. There is no parole in the federal system.
Evidence presented in court established that on June 4, 2018, deputies with the Lexington County Sheriff’s Department used a confidential informant to purchase approximately .38 grams of methamphetamine from Watts. Additional evidence established that on June 11, 2018, officers with the West Columbia Police Department were patrolling McSwain Drive in West Columbia in reference to ongoing complaints of criminal activity. Officers received information that Watts was selling drugs from a hotel in the area. They made contact with Watts as he was knocking on the door of room 111 of the hotel, and Watts advised he was trying to make contact with the person in room 111 because he heard the person was trying to sell televisions. Officers could see a knife clipped on Watts’ pants and seized it for the duration of the contact. When Officers asked Watts if he had anything else on his person, Watts turned his right side away from them, which was consistent with someone trying to conceal something. Officers conducted a pat-down and asked Watts what else he had on him, and Watts said he had a gun in his pocket. Officers retrieved a loaded .32 Charter Arms revolver from Watts’ right front pocket as well as a baggie of approximately 5.5 grams methamphetamine and a digital scale with residue consistent with methamphetamine. Additionally, on July 19, 2018, Lexington County Sheriff’s deputies received information that Watts, who had unserved warrants from Richland County, was staying at a hotel in West Columbia. Deputies located Watts and found approximately 13 grams of methamphetamine in his hotel room.
Federal law prohibits Watts from possessing firearms and ammunition based upon multiple prior state convictions: a 2006 criminal conspiracy, a 2008 criminal domestic violence of a high and aggravated nature, a 2009 strong arm robbery and criminal conspiracy, and a 2016 possession of methamphetamine.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the West Columbia Police Department, and the Lexington County Sheriff’s Department. It was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. Special Assistant United States Attorney Casey Rankin Smith of the 11th Circuit Solicitor’s Office prosecuted the case.
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Knoxville Man Indicted for Cocaine Conspiracy ChargeRead the Press Release
Knoxville, Tenn. – On September 4, 2019, a federal grand jury in Knoxville returned a single count indictment against the following individual alleging a conspiracy to possess with the intent to distribute crack cocaine:
Mahlon Tyron Prater, 22, of Knoxville, Tennessee
The case is set in front of Chief United States District Judge Pamela L. Reeves. If convicted of the cocaine distribution conspiracy charge, Prater faces up to 20 years in prison, at least 3 years of supervised release, a fine of up to $1,000,000, criminal forfeiture, and a $100 special assessment.
FBI Agents and Knoxville Police Officers are looking for Prater. Prater goes by the street name “Moe.” Prater stands 5’ 10” inches and weighs 165 pounds. He is known to carry firearms. Anyone with information on his whereabouts is asked to contact the FBI’s Knoxville Field Office at (865) 544-0751 or the Knoxville Police Department at (865) 215-7212.
Members of the public are reminded that an indictment constitutes only charges and that Prater is presumed innocent until his guilt has been proven beyond a reasonable doubt.
This case was investigated by the FBI Safe Streets and High Intensity Drug Trafficking Area (HIDTA) Task Forces. These task forces are comprised of police officers from the Knoxville and Kingston Police Departments, Sheriff’s Deputies from the Knox, Blount, Sevier, Roane and Loudoun County Sheriff’s Offices and prosecutors from the District Attorney General’s Offices and the United States Attorney’s Office for the Eastern District of Tennessee. These task forces are resource multipliers for crime-fighting efforts in East Tennessee, leveraging law enforcement resources to fight the most violent criminals in the area. Assistant United States Attorney Kevin Quencer will represent the United States.
The investigation is a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Kewaunee Man Sentenced for Child Pornography DistributionRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on September 4, 2019, Kyle D. Sanderson (age: 19) of Kewaunee, Wisconsin, was sentenced to 60 months in federal prison by Chief District Judge William C. Griesbach.
In April of 2018, the Department of Homeland Security was notified by a Canadian-based social media company that an individual known online as “Rp.Destiny” was sending pornographic images and videos of children to another user. Based on that information local law enforcement sought a search warrant and were able to identify “Rp.Destiny” as Kyle D. Sanderson.
Further investigation revealed that Sanderson exchanged passcodes with another individual online. These passcodes allowed them to access each other’s child pornography libraries utilizing a cloud storage application based in New Zealand. In total, investigators located approximately 4,400 images or videos depicting pornography on Sanderson’s smart phone, many involving the abuse of toddlers and infants.
At sentencing, Chief Judge Griesbach noted the serious nature of the crime and the need to send a message of deterrence to both Sanderson and the community. Chief Judge Griesbach also ordered Sanderson to spend 5 years on supervised release after his discharge from federal prison. Sanderson also will have to register as a sex offender.
This case was investigated by the Department of Homeland Security, Homeland Security Investigations, and the Wisconsin Department of Justice, Division of Criminal Investigations, with the assistance of the Kewaunee County Sheriff’s Office and the City of Kewaunee Police Department. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Kentucky and Tennessee Residents Indicted on Federal Kidnapping ChargeRead the Press Release
Lexington, Ky. – A federal grand jury sitting in London has indicted Douglas M. Edmonson, 36, of Corbin, Kentucky; Dallas Anna Chain Perkins, 25, of Jellico, Tennessee; Bryanna Soper, 25, of Corbin, Kentucky; and Erik Peace, 32, of Corbin, Kentucky for kidnapping.
The charge stems from a yearlong investigation by the ATF, the Kentucky State Police, and the Williamsburg Police Department. According to the indictment, the defendants kidnapped Victim 1 on August 10, 2018, for the purpose of assaulting Victim 1. The defendants used a Facebook account to lure Victim 1 to a prearranged meeting place. The indictment further alleges that the defendants transported Victim 1 across state lines during the course of the kidnapping. Pursuant to the indictment, Victim 1 was held against her will into August 11, 2018.
If convicted the defendants face up to life in prison. Soper had her initial appearance on September 4, 2019. Edmonson, Perkins, and Peace will have initial appearances scheduled.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Stuart Lowrey, Special Agent in Charge ATF; Kentucky States Police Commissioner Richard Sanders; and Chief Wayne Bird, Williamsburg Police Department, jointly made the announcement.
The investigation was conducted by the ATF London Office, the Kentucky State Police, and Williamsburg Police Department. The United States is represented by Assistant United States Attorney Jenna E. Reed.
An indictment by a grand jury is an accusation only, and individuals charged in an indictment are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Jury Finds North Dakota Man Guilty of Child Sexual Abuse and Aggravated IncestRead the Press Release
United States Attorney Ron Parsons announced that Ronnie White Mountain, age 51, of Mandan, North Dakota, was found guilty of Aggravated Sexual Abuse of a Child and Aggravated Incest as a result of a three-day federal jury trial in Aberdeen, South Dakota.
The charges carry a mandatory minimum of 30 years, up to life, in federal prison and/or a $250,000 fine, up to life of supervised release, and a $200 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
White Mountain was indicted by a federal grand jury on June 11, 2019.
Between January 2010 and December 2012, White Mountain traveled periodically from his home in Morris, Minnesota, to McLaughlin, South Dakota, along with his daughter, to stay with family on the Standing Rock Indian Reservation. After a night of drinking on one of the trips, White Mountain came back to the home and sexually assaulted his daughter.
This case was investigated by the Federal Bureau of Investigation and the Stevens County Minnesota Sheriff’s Department. Assistant U.S. Attorneys Kirsten E. Jasper and Troy R. Morley prosecuted the case.
A presentence investigation was ordered and a sentencing date has not been set. The defendant was remanded to the custody of the U.S. Marshals Service.
Jury Finds Former HUD Employee Guilty of Fraud and Identity TheftRead the Press Release
HONOLULU – A federal jury today found Chun Mei Tong, also known as Mei Tong, 43, of Honolulu, guilty of five counts of wire fraud and three counts of aggravated identity theft for her scheme to use an alias and forge signatures to rent out properties under the U.S. Department of Housing and Urban Development ("HUD") Housing Choice Voucher Program (also known as the "Section 8 Program") while she was also a HUD employee involved in overseeing the Section 8 program. The verdict followed a seven-day trial before Chief District Judge J. Michael Seabright. Sentencing is scheduled for December 16, 2019.
Kenji M. Price, United States Attorney, said that the Section 8 program is HUD’s major program for assisting low-income families, the elderly, and the disabled to afford housing in the private rental market in the local community. Participants can choose any housing that meets the requirements of the program. The Section 8 program is administered locally by public housing authorities. A housing subsidy that may cover the full rent depending on the income of the participant is paid to the landlord directly by the public housing authority on behalf of the participating family.
According to the information presented during trial, from 2014 to 2019, Tong directed funds to her company for five Section 8 rentals located on Oahu. Tong received approximately $207,000 from HUD as part of her scheme. Tong created the alias, "Debbie Kim," to act as a property manager and landlord for five properties that she rented to Section 8 voucher holders. Posing as "Debbie Kim," Tong submitted documentation to the local public housing authorities for rental approval and payments of HUD funds. Tong covered up her ownership of two of the properties and also forged the signatures of the owners of three of the properties to ensure that all of the HUD funds paid to the landlord went directly to her company’s bank account.
Information produced in court also disclosed that Tong became a HUD employee in 2005 and worked in the Honolulu Field Office until her resignation in November 2015. As a HUD employee, Tong was prohibited from participating in the Section 8 program. Tong was also prohibited from engaging in the business of real estate. Tong never disclosed her involvement in multiple real estate companies or aliases she used in connection with those companies to anyone she worked with at the local public housing authorities or HUD.
Tong will face a mandatory term of two years in prison for aggravated identity theft and up to twenty years in prison for each count of wire fraud.
The investigation was led by HUD’s Office of Inspector General. Assistant U.S. Attorneys Rebecca A. Perlmutter and Morgan Early handled the prosecution.
Jury Finds Eagle Butte Man Guilty of Abusive Sexual Contact of a ChildRead the Press Release
United States Attorney Ron Parsons announced that Lawrence Oakie, age 38, of Eagle Butte, South Dakota, was found guilty of three counts of Abusive Sexual Contact of a Child, as a result of a three-day federal jury trial in Pierre, South Dakota.
The charges each carry a maximum penalty of up to life in federal prison and/or a $250,000 fine, up to life of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
Oakie was indicted by a federal grand jury on May 13, 2018.
On September 2, 2017, Oakie was at a house party in Eagle Butte, South Dakota, with several individuals, along with two minor children who lived in the home. During the night, one of the minor children got up to use restroom and when she came back to the room, Oakie was in the bedroom sitting next to the other minor child and was touching the child in an inappropriate and sexual manner.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services, and the Federal Bureau of Investigation. Assistant U.S. Attorney Jay Miller prosecuted the case.
A presentence investigation was ordered and a sentencing date was set for November 25, 2019. The defendant was remanded to the custody of the U.S. Marshals Service.
Investment Adviser Sentenced to 70 Months in Prison for Stealing Millions of Dollars from ClientsRead the Press Release
NEWARK, N.J. – A former broker and investment adviser was sentenced today to 70 months in prison for stealing millions of dollars from his clients in order to pay for personal expenses, U.S. Attorney Craig Carpenito announced.
Gary Basralian, 72, of Springfield, New Jersey, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to an information charging him with one count of wire fraud and one count of investment adviser fraud. Judge Arleo imposed the sentence today in Newark federal court.
According to documents filed in the case and statements made in court:
Basralian was a registered broker who provided investment advisory services to clients and received compensation for advising them about investing in, purchasing, or selling securities. From 1989 until December 2017, he was registered with the Financial Industry Regulatory Authority (FINRA), or its predecessors, as working at “Securities Firm A,” a registered investment adviser and broker-dealer with its principal place of business in Jersey City, New Jersey. Securities Firm A provided a broker-dealer platform for more than 2,000 independent financial advisers across the United States.
From July 2007 through November 2017, Basralian defrauded his clients by falsely telling them that he would invest their money in securities and other investments when, in fact, he misappropriated those funds and used them for his own personal expenditures – including payments on a BMW automobile and tens of thousands of dollars in credit card bills.
In one instance Basralian wired money from at least one victim client’s investment account at Securities Firm A to various accounts that he controlled and used the proceeds for his own benefit. When the victim asked why the account had diminished in value, Basralian sent the victim a phony spreadsheet showing that the money was being invested as loans to various companies and would be paid back with interest. Basralian admitted stealing at least $2 million.
In addition to the prison term, Judge Arleo sentenced Basralian to three years of supervised release.
On May 22, 2018, the N.J. Bureau of Securities in the Office of the N.J. Attorney General issued a summary revocation order against Basralian that revoked his agent and investment adviser representative registrations.
U.S. Attorney Carpenito credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, and special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s sentencing. He also thanked the N.J. Bureau of Securities, under the direction of Bureau Chief Christopher Gerold, for its assistance.
The government is represented by Assistant U.S. Attorney Courtney A. Howard of the U.S. Attorney’s Office’s Economic Crimes Unit.
Indiana Man Sentenced to 120 Months in Prison for String of Twin Cities Drugstore RobberiesRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of MICHAEL IMAN WHITE, 20, to 120 months in prison for the robbery and attempted robbery of multiple Walgreens pharmacies. WHITE and his codefendant JAVONN T. LEWIS, 24, were charged in a superseding indictment on November 20, 2019. WHITE, who pleaded guilty on March 7, 2019, was sentenced today before Senior Judge Donovan W. Frank in U.S. District Court in St. Paul, Minnesota. LEWIS, who pleaded guilty on May 22, 2019, is scheduled to be sentenced on October 3, 2019.
According to the defendant’s guilty plea and documents filed in court, during a four-month period, between April and July of 2018, WHITE used force, violence, and fear of injury to rob or attempt to rob five Walgreens Pharmacies in St. Paul and Edina, Minnesota. WHITE terrorized numerous store employees by pointing actual or replica firearms at them and sometimes restraining them with zip ties. In total, WHITE and his accomplices stole more than $75,000 worth of narcotics and other controlled substances.
The Hobbs Act, passed by Congress in 1946, allows federal prosecutors to prosecute individuals who commit armed robberies of businesses engaged in interstate commerce. If convicted, WHITE faces a potential maximum penalty of 20 years in prison on each count.
This case was the result of an investigation conducted by the FBI, the Edina Police Department, the Saint Paul Police Department, and the Bloomington Police Department. This case is part of Project Safe Neighborhoods, an initiative that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.
Assistant U.S. Attorney Jeffrey S. Paulsen is prosecuting the case.
Defendant Information:
MICHAEL IMAN WHITE, 20
Muncie, Ind.
Convicted:
- Interference with commerce by robbery (Hobbs Act), 1 count
Sentenced:
- 120 months in prison
- Three years of supervised release
- $84,740 in restitution
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Houston Attorney Convicted of Offshore Tax Evasion SchemeRead the Press Release
A Houston, Texas, attorney was convicted today of one count of conspiracy to defraud the United States and three counts of tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Department of Justice’s Tax Division and U.S. Attorney Ryan K. Patrick for the Southern District of Texas.
According to the evidence presented at trial, Jack Stephen Pursley, also known as Steve Pursley, conspired with a former client to repatriate more than $18 million in untaxed income that the client had earned through his company, Southeastern Shipping. Knowing that his client had never paid taxes on these funds, Pursley designed and implemented a scheme whereby the untaxed funds were transferred from Southeastern Shipping’s business bank account, located in the Isle of Man, to the United States. Pursley helped to conceal the movement of funds from the Internal Revenue Service (IRS) by disguising the transfers as stock purchases in United States corporations owned and controlled by Pursley and his client.
At trial, the government proved that Pursley received more than $4.8 million and a 25% ownership interest in the co-conspirator’s ongoing business for his role in the fraudulent scheme. For tax years 2009 and 2010, Pursley evaded the assessment of and failed to pay the income taxes he owed on these payments by, among other means, withdrawing the funds as purported non-taxable loans and returns of capital. The government showed at trial that Pursley used the money he garnered from the fraudulent scheme for personal investments, and to purchase assets for himself, including a vacation home in Vail, Colorado and property in Houston, Texas.
Judge Lynn Hughes has set sentencing for Dec. 9. Pursley faces a statutory maximum sentence of five years in prison for the conspiracy count, and five years in prison for each count of tax evasion. He also faces a period of supervised release, monetary penalties, and restitution.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Patrick commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Sean Beaty, Grace Albinson, and Jack Morgan of the Tax Division, who prosecuted this case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Honduran National Pleads Guilty to Illegal Re-entryRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that PEDRO MANOLO ARAGON-HERNANDEZ, age 39, a citizen of Honduras, pled guilty on September 4, 2019 to a one-count bill of information with illegal reentry of a removed alien, in violation of 8 U.S.C. ' 1326. ARAGON-HERNANDEZ was immediately sentenced following the guilty plea.
According to the bill of information, ARAGON-HERNANDEZ reentered the United States after having been previously removed therefrom on or about December 20, 2001.
ARAGON-HERNANDEZ faced a maximum term of imprisonment of two years, a fine of up to $250,000.00, one year supervised release after imprisonment, and a $100 special assessment.
ARAGON-HERNANDEZ was sentenced to time served and a $100.00 special assessment.
U.S. Attorney Strasser praised the work of the United States Border Patrol, Customs and Border Protection in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
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Hobart Man Sentenced to 84 Months in PrisonRead the Press Release
HAMMOND- Carlos Rodriguez, 42, of Hobart, Indiana, was sentenced before District Court Judge Philip P. Simon, on September 5, 2019, following his plea of guilty to possessing with intent to distribute controlled substances within 1000 feet of a school and possessing a firearm in furtherance of a drug crime announced U.S. Attorney Kirsch.
Rodriguez received a sentence of 84 months in prison followed by 6 years of supervised release.
According to documents filed in this case, on December 4, 2018, Law Enforcement executed a search warrant on Rodriguez’s residence in Hobart, Indiana and recovered cocaine, heroin and drug paraphernalia within the home and vehicles on the property. The residence was within 1000 feet of a functioning school. Also on the property were firearms that Rodriguez possessed in furtherance of his drug crime.
This case was investigated by the Federal Bureau of Investigation with the assistance of the Hobart Police Department and was prosecuted by Assistant United States Attorney Thomas M. McGrath.
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High-Ranking Member of ‘Nine Trey Gangsta Bloods’ Sentenced to 15 Years in Prison in Connection with Manhattan Armed Robbery and Brooklyn ShootingRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that KIFANO JORDAN, a/k/a “Shotti,” was sentenced to 15 years in prison in connection with a robbery and a non-fatal shooting carried out as part of his participation in the Nine Trey Gangsta Bloods (“Nine Trey”). JORDAN pled guilty on March 28, 2019, before U.S. District Judge Paul A. Engelmayer, who imposed today’s sentence.
As alleged in the underlying Indictment and statements made in open court:
Nine Trey was a criminal enterprise involved in committing numerous acts of violence, including shootings, robberies, and assaults in and around Manhattan and Brooklyn. Members and associates of Nine Trey engaged in violence to retaliate against rival gangs, to promote the standing and reputation of Nine Trey, and to protect the gang’s narcotics business. Members and associates of Nine Trey enriched themselves by committing robberies and selling drugs, such as heroin, fentanyl, furanly fentanyl, MDMA, dibutylone, and marijuana.
JORDAN, a member of Nine Trey, pled guilty to one count of using and possessing a firearm in furtherance of a crime of violence, for an assault with a dangerous weapon that occurred in Manhattan on April 3, 2018; he also admitted to discharging a firearm in furtherance of a crime of violence for a shooting that occurred in Brooklyn on April 21, 2018.
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In addition to the prison term, JORDAN, 36, of Brooklyn, New York, was sentenced to 5 years of supervised release.
Mr. Berman praised the outstanding investigative work of the New York City Police Department, Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Michael Longyear, Jacob Warren, Jonathan Rebold, and Sebastian Swett are in charge of the prosecution.
Henderson Man Sentenced to Federal Prison for Heroin and Gun ConvictionsRead the Press Release
RALEIGH – Robert J. Higdon, Jr., the United States Attorney for the Eastern District of North Carolina, announces that United States District Judge James C. Dever, III, sentenced JERMILL BLACKNALL, 31, of Henderson, North Carolina, to 81 months’ imprisonment, followed by 5 years of supervised released.
On June 6, 2019, BLACKNALL, pled guilty to possession with intent to distribute heroin and possession of a firearm in furtherance of a drug trafficking crime. On January 21 and 28, 2018, officers of the Henderson Police Department (HPD) conducted controlled purchases of heroin using a confidential informant from BLACKNALL’S residence. Subsequently, a search warrant was executed at that location where officers recovered a loaded assault rifle with two extended magazines and a 50-round magazine “drum.” HPD also found raw heroin, a blender with heroin residue, digital scales, and packaging materials.
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. Since 2017 the United States Department of Justice has reinvigorated the PSN program and has targeted 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.
This case is also part of the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violence crime rate, drug trafficking, and crimes against law enforcement.
The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Henderson Police Department. Assistant United States Attorney Robert J. Dodson prosecuted the case for the government.
Harrison County Man Sentenced to over Five Years in Prison for Possession of a Firearm by a Convicted FelonRead the Press Release
Gulfport, Miss – William Lance Chaney, 27, of Biloxi, was sentenced yesterday by U.S. District Judge Sul Ozerden to 63 months in prison, followed by three years of supervised release, for being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Chaney was also ordered to pay a $5,000 fine.
During the course of an investigation, the Bureau of Alcohol Tobacco Firearms and Explosives discovered that Chaney was buying and selling firearms to known felons and Simon City Royals gang members. Agents determined that Chaney offered at least three firearms for sale in March, 2018. Chaney has a previous conviction for possession with intent to distribute a controlled substance in Harrison County in 2010 and is pending trial on a new drug charge in Harrison County. He was on parole with MDOC at the time of the federal charge.
Chaney pled guilty before Judge Ozerden on May 31, 2019 to being a felon in possession of a firearm.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. It was prosecuted by Assistant United States Attorney Annette Williams.
Guatemalan Man Sentenced for Illegally Using Social Security Number to Obtain EmploymentRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that WILMER A. GARCIA-LOPEZ, age 22, a native of Guatemala, was sentenced September 5, 2019 after previously pleading guilty to illegally using a Social Security number in order to obtain employment, in violation of Title 42, United States Code, Section 408(a)(7)(B).
United States District Court Judge Eldon E. Fallon sentenced GARCIA-LOPEZ to time served and a $100 special assessment fee. The defendant will be surrendered to the custody of Immigration and Customs Enforcement for removal proceedings.
According to court documents, on June 14, 2019, GARCIA-LOPEZ submitted a fraudulent Form I-9 application in order to obtain employment with a local company. He used a fraudulent Social Security card containing the Social Security number of a real United States citizen as verification. Subsequent record checks confirmed that GARCIA-LOPEZ was in the United States illegally and photographic evidence proved that GARCIA-LOPEZ and the victim were different people.
U.S. Attorney Strasser praised the work of Immigration and Customs Enforcement, Enforcement Removal Operations agents in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
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Franklin County Man Charged with Sexually Exploiting a ChildRead the Press Release
ALBANY, NEW YORK – Robert B. Fitzgerald, age 81, of St. Regis Falls, New York, was arrested on Wednesday on a criminal complaint charging him with sexually exploiting a child.
The announcement was made by United States Attorney Grant C. Jaquith and Kevin Kelly, Special Agent in Charge, Homeland Security Investigations (HSI), Buffalo Field Office.
The criminal complaint alleges that Fitzgerald: sexually exploited a girl for approximately three years and beginning when the child was 14 years old; photographed and video-recorded the sexual abuse; and distributed and sold this child pornography to others. According to the complaint, on August 9, 2019, Fitzgerald possessed a computer that contained videos depicting Fitzgerald sexually abusing the child when she was 17 years old.
The charge in the complaint is merely an accusation. The defendant is presumed innocent unless and until proven guilty
If convicted of the charge set forth in the complaint, Fitzgerald faces at least 15 years and up to 30 years in prison, and can also be sentenced to at least 5 years and up to lifetime post-imprisonment supervised release. 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.
Fitzgerald appeared today for a detention hearing before United States Magistrate Judge Gary L. Favro, and was ordered detained.
This case is being investigated by HSI and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Katherine Kopita.
Four Men Indicted for Kidnapping Resulting in DeathRead the Press Release
LEXINGTON, Ky. – A federal grand jury sitting in Lexington has charged four men for their involvement in a kidnapping that resulted in the deaths of two Lexington men. Rosario Diaz Barraza, 29, Ramon Camacho Zepeda, 51, Josė Felix Tlatenchi, 37, and Tomás Tlatenchi, 37, were each indicted Thursday for offenses related to the kidnapping and homicide of Josė Olascoaga, 29, and Marco Antonio Tunai Ortiz, 27, both of Lexington.
The grand jury charged all four defendants with one count of conspiracy to commit kidnapping that resulted in death, and one count of interstate transportation of stolen vehicles. The indictment alleges that the charged offenses occurred on or about September 11, 2017, at a business located on Blue Sky Parkway in Lexington. The victims were discovered on September 14, 2017, in the trunk of a Volkswagen Jetta at the Blue Sky Parkway crime scene.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Daniel Dodds, Acting Special Agent in Charge, DEA Louisville; and Lawrence Weathers, Chief of Police, Lexington Division of Police, jointly announced the indictment. Assistant United States Attorney Todd Bradbury presented the indictment to the grand jury.
All four defendants are scheduled to appear in federal court, for their arraignment on the charges, on September 10, 2019 at 2:30 p.m. Each defendant faces a maximum sentence of life imprisonment. However, any sentence following a conviction would be imposed by the Court, after its consideration of the United States Sentencing Guidelines and applicable federal statutes.
An indictment is an accusation only. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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