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17 October 2019
Armed Career Criminal Sentenced to 15 Years for Illegally Possessing FirearmRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard today sentenced Jamaal Abu Talib Hameen (59, Jacksonville) to 15 years in federal prison for possessing a firearm as a convicted felon. A jury had found Hameen guilty on March 1, 2019.
According to evidence presented at trial and at the sentencing hearing, on February 7, 2018, Hameen was found to be in possession of a loaded .380 caliber pistol, when officers from the Jacksonville Sheriff’s Office arrested him for trespassing at a local motel. At the time, Hameen had numerous prior felony convictions, including for aggravated assault, sale or delivery of cocaine, and sale or delivery of heroin. As a previously convicted felon, Hameen was prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Jacksonville Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorneys David B. Mesrobian and Frank Talbot.
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.
A Leader of Brooklyn Eight Trey Cowboy Crips Gang Pleads Guilty to Narcotics Trafficking and Firearms ChargesRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Rahmel Smith, a leader of the Eight Trey Cowboy Crips gang that operates in Flatbush, pleaded guilty to conspiracy to distribute cocaine base, heroin and marijuana, and use of a firearm in relation to a drug trafficking crime. When sentenced, he faces a mandatory minimum sentence of 15 years’ imprisonment and a maximum of life imprisonment. The guilty plea was entered before United States District Judge Allyne R. Ross.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the guilty plea.
“The defendant is now facing a significant prison sentence for endangering the Flatbush community not only by dealing dangerous drugs, but also by using firearms in connection with his gang’s drug trafficking,” stated United States Attorney Donoghue. “This Office will continue to working tirelessly with our law enforcement partners to dismantle and eradicate violent street gangs like the Eight Trey Cowboy Crips.” Mr. Donoghue expressed his grateful appreciation to the Federal Bureau of Investigation, New York Field Office, and the New York City Police Department for their outstanding work on the case.
Between May 2018 and February 2019, Smith directed fellow gang members to sell crack cocaine, heroin and marijuana on a daily basis. As part of the government’s investigation, law enforcement agents and officers intercepted numerous telephone communications during which Smith discussed narcotics transactions with fellow gang members. Between May 10, 2018 and December 18, 2018, under the supervision of law enforcement, a confidential informant made 12 crack cocaine purchases from Smith in the total amount of approximately 280 grams.
As part of his plea agreement with the government, Smith will forfeit three firearms he used in furtherance of the gang’s drug trafficking, specifically, a .25 caliber Lorcin pistol, a Jimenez 9mm pistol and a Romarm Cugir rifle, commonly referred to as an AK-47.
Two co-defendant gang members, Michael Martin and Shakim Carr, pleaded guilty in May 2019 and October 2019, respectively, to conspiracy to distribute and possess with intent to distribute cocaine base, heroin and marijuana, and are awaiting sentencing.
This case was brought as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorneys’ 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 being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Erin Reid and Temidayo Aganga-Williams are in charge of the prosecution.
The Defendant:
RAHMEL SMITH (also known as “Mello”)
Age: 30
Brooklyn, New YorkDefendants Who Previously Pleaded Guilty:
SHAKIM CARR (also known as “Sha”)
Age: 39
Brooklyn, New YorkMICHAEL MARTIN (also known as “Scooter”)
Age: 26
Brooklyn, New YorkE.D.N.Y. Docket No. 19-CR-137 (ARR)
34 Individuals Sentenced on Federal Drug and Money Laundering Violations in Operation “Gangster’s Paradise”Read the Press Release
Memphis, TN –A total of 34 individuals have been sentenced after a two-year investigation known as Operation "Gangster’s Paradise" conducted by the Organized Crime and Drug Enforcement Task Force ("OCDETF"). Members of the drug trafficking organization have been sentenced to federal prison for drug and money laundering violations. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee announced the sentences today.
According to information presented in court, in 2016, the Memphis Division of the Drug Enforcement Administration ("DEA") began investigating a drug trafficking organization responsible for distributing cocaine, heroin, and marijuana in the Memphis area. This led to several multi-defendant indictments involving a variety of narcotics and money laundering charges. On today’s date, the final defendant was sentenced. Below is a list of those indicted, the charges for which they were convicted, and the sentences imposed:
Rafael Garza, 47, conspiracy to possess with intent to distribute cocaine, on July 31, 2019, U.S. District Court Judge Samuel H. Mays Jr., sentenced Garza to 210 months.
Timothy Woods, 49, conspiracy to possess with intent to distribute cocaine, on July 31, 2019, U.S. District Court Judge Samuel H. Mays Jr., sentenced Woods to 120 months.
Juan Cisneros, 36, conspiracy to possess with intent to distribute cocaine, on April 12, 2018, U.S. District Court Judge Samuel H. Mays Jr., sentenced Cisneros to 121 months; 5 years supervised release.
Alfredo Arambul, 37, conspiracy to possess with intent to distribute cocaine, U.S. District Court Judge Samuel H. Mays sentenced Arambul to 120 months followed by 3 years supervised release.
Carlos Lopez, 41, conspiracy to possess with intent to distribute cocaine, U.S. District Court Judge Samuel H. Mays sentenced Lopez to 46 months and 2 years supervised release.
Tiffany Harper, 48, conspiracy to possess with intent to distribute cocaine, on March 13, 2019, U.S. District Court Judge Samuel H. Mays sentenced Harper to time served, 24 months supervised release.
Anthony Hope, 49, conspiracy to possess with intent to distribute cocaine, on July 17, 2018, U.S. District Court Judge Samuel H. Mays sentenced Hope to 100 months; 3 years supervised release.
Corey Blair, 48, conspiracy to possess with intent to distribute cocaine, on July 19, 2018, U.S. District Court Judge Samuel H. Mays sentenced Blair to 46 months; 3 years supervised release.
Marcus Joyner, 35, conspiracy to possess with intent to distribute cocaine, on July 12, 2018, U.S. District Court Judge Samuel H. Mays sentenced Joyner to 30 months; 2 years supervised release.
Ricky Dortch, 56, conspiracy to possess with intent to distribute cocaine, on May 31, 2019, U.S. District Court Judge Samuel H. Mays Jr., sentenced Dortch to 15 months; 3 years supervised release.
Johnny Smith, 61, conspiracy to possess with intent to distribute cocaine, on November 14, 2018, U.S. District Court Judge Samuel H. Mays Jr., sentenced Smith to 60 months; 4 years supervised release.
Wanda Amos, 44, conspiracy to commit money laundering, on February 15, 2019, U.S. District Court Judge Sheryl H. Lipman sentenced Amos to 24 months supervised release (probation).
Savino Juarez Cabrales, 46, conspiracy to possess with intent to distribute cocaine and heroin, on June 21, 2019, U.S. District Court Judge Thomas L. Parker sentenced Cabrales to 120 months; 5 years supervised release.
Marco Antonio Cruz, Jr., 30, conspiracy to possess with intent to distribute cocaine and heroin, on July 18, 2018, U.S. District Court Judge Thomas L. Parker sentenced Cruz to 51 months.
Jackie Arnold, 49, conspiracy to possess with intent to distribute cocaine, heroin, marijuana and conspiracy to commit money laundering, on July 17, 2019, U.S. District Court Judge Sheryl H. Lipman sentenced Arnold to 180 months; 4 years supervised release.
Travis Bobo, 57, conspiracy to possess with intent to distribute heroin, on February 25, 2019, U.S. District Court Judge Sheryl H. Lipman sentenced Bobo to 120 months; 5 years supervised release.
Joseph Brown, 43, conspiracy to possess with intent to distribute cocaine, on September 6, 2019, U.S. District Court Judge Sheryl H. Lipman sentenced Brown to 34 months; 3 years supervised release.
Timothy Brown, 39, conspiracy to possess with intent to distribute cocaine, on April 2, 2019, U.S. District Court Judge Sheryl H. Lipman sentenced Brown to 18 months; 3 years supervised release.
Dedrick Chism, 44, conspiracy to possess with intent to distribute cocaine and marijuana, on September 12, 2019, U.S. District Court Judge Sheryl H. Lipman sentenced Chism to 60 months; 4 years supervised release.
Foyice Clark, 62, conspiracy to possess with intent to distribute cocaine, on July 31, 2019, U.S. District Court Judge Sheryl H. Lipman sentenced Clark to 57 months; 5 years supervised release.
Reginald Duncan, 48, conspiracy to possess with intent to distribute cocaine, on May 10, 2019, U.S. District Court Judge Sheryl H. Lipman sentenced Duncan to 18 months; 3 years supervised release.
Theotis Evans, 42, conspiracy to possess with intent to distribute cocaine, on May 31, 2019, U.S. District Court Judge Sheryl H. Lipman sentenced Evans to 24 months; 3 years supervised release.
Rico Fason, 33, conspiracy to possess with intent to distribute cocaine and marijuana, on May 20, 2019, U.S. District Court Judge Sheryl H. Lipman sentenced Fason to 90 months; 4 years supervised release.
Antonio Goss, 43, conspiracy to possess with intent to distribute cocaine and being a convicted felon in possession of a firearm, on February 4, 2019, U.S. District Court Judge Sheryl H. Lipman sentenced Goss to 120 months; 3 years supervised release.
Rodney Harper, 43, conspiracy to possess with intent to distribute cocaine, on September 7, 2018, U.S. District Court Judge Sheryl H. Lipman sentenced Harper to 33 months; 3 years supervised release.
Tangela Jackson, 50, conspiracy to possess with intent to distribute cocaine, on February 22, 2019, U.S. District Court Judge Sheryl H. Lipman sentenced Jackson to 60 months; 4 years supervised release.
Lakata Johnson, 47, conspiracy to commit money laundering, sentenced on June 12, 2016, U.S. District Court Judge Sheryl H. Lipman sentenced Johnson to 12 months, 1 day; 2 years supervised release.
Roderick Kelley, 44, conspiracy to possess with intent to distribute cocaine, on August 5, 2019, U.S. District Court Judge Sheryl H. Lipman sentenced Kelley to 46 months; 4 years supervised release.
Tawana Rice, 42, conspiracy to commit money laundering, on June 18, 2019, U.S. District Court Judge Sheryl H. Lipman sentenced Rice to time served; 2 years supervised release.
Roy Rodgers, 54, conspiracy to possess with intent to distribute cocaine, on March 12, 2019, U.S. District Court Judge Sheryl H. Lipman sentenced Rodgers to 27 months; 3 years supervised release.
Rodney Taylor, 41, conspiracy to possess with intent to distribute marijuana, on August 21, 2019, U.S. District Court Judge Sheryl H. Lipman sentenced Taylor to 8 months; 3 years supervised release.
Shunta Thompson-Truehart, 40, conspiracy to possess with intent to distribute cocaine and marijuana, on January 14, 2019, U.S. District Court Judge Sheryl H. Lipman sentenced to Thompson-Truehart to 24 months; 4 years supervised release.
Barrett Young, 54, conspiracy to possess with intent to distribute marijuana, on October 17, 2019, U.S. District Judge Mark S. Norris, sentenced Young to 18 months; 3 years supervised release.
John Robinson, 45, conspiracy to possess with intent to distribute marijuana and cocaine, on October 3, 2019, U.S. District Court Judge Mark S. Norris sentenced Robinson to 12 months; 3 years supervised release.
U.S. Attorney D. Michael Dunavant said: "Use and trafficking of illegal drugs continues to destroy lives, families, and communities in Memphis, Shelby County, and across West Tennessee. The joint cooperation between federal, state, and local law enforcement in this OCDETF case demonstrates our ability and resolve to dismantle drug trafficking organizations, including those that distribute narcotics from locations across the country. These sentences send a clear message to those gangsters, drug dealers, and money launderers who distribute poison in the Western District of Tennessee: You cannot prey upon our citizens for your selfish personal gain with impunity; For you, there is no paradise – only a reckoning that ends in federal prison."
OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking organizations and organized criminal enterprises, 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.
The Drug Enforcement Administration, the Memphis Police Department’s Organized Crime Unit, the West Tennessee Drug Task Force, and the United States Postal Inspection Service investigated these cases.
Assistant United States Attorneys Jerry Kitchen and Michelle Kimbril-Parks prosecuted these cases on behalf of the government.
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$3.1 Million Judgment Entered Against Five Rural Home Health Providers in Iowa and South DakotaRead the Press Release
On October 16, 2019, a federal court in Cedar Rapids entered a consent judgment for a total of $3,133,282.95 against five home health providers located in Iowa and South Dakota. The providers – Sergeant Bluff Healthcare, LLC (Iowa); Red Oak Healthcare, LLC (Iowa); Logan Healthcare, LLC (Iowa); Elk Point Health Care #1 LLC (South Dakota); and Flandreau Healthcare 2, LLC (South Dakota) – provided home health services to Medicare beneficiaries.
In a complaint filed on October 2, 2019, the United States alleged that, between January 2012 and December 2015, the five companies submitted false claims to Medicare for therapy services. The complaint alleged the claims were false either because the services provided were not skilled or because the beneficiaries’ medical conditions did not justify the need for skilled therapy services. The United States further alleged that the companies received notifications that their claims for therapy services were inordinately high and that the companies failed to take adequate steps to address their billing procedures after receiving the notifications.
In a civil judgment filed in federal court in Cedar Rapids on October 16, 2019, judgment was entered against each entity as follows: Sergeant Bluff Healthcare, LLC ($1,245,149.01); Red Oak Healthcare, LLC ($228,333.42); Logan Healthcare, LLC ($775,373.15); Elk Point Healthcare #1, LLC ($788,484.69); and Flandreau Healthcare 2, LLC ($115,942.46). The entities are all affiliates of Welcov Healthcare, LLC, a Minnesota entity in the midst of assignment proceedings in Hennepin County (Minnesota) District Court.
The matter arose from an affirmative investigation. False Claims Act cases can also be brought under the qui tam provisions of the Act, which encourage whistleblowers to bring suit on behalf of the United States and share in any financial recovery.
The case was handled by Assistant United States Attorneys from three different United States Attorney’s Offices: Jacob Schunk, Northern District of Iowa (United States Attorney Peter E. Deegan, Jr.); Meghan Roche, District of South Dakota (United States Attorney Ron Parsons); and David Faith, II, Southern District of Iowa (United States Attorney Marc L. Krickbaum). The Department of Health and Human Services Office of Inspector General led the investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-cv-4066-LTS-KEM.
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16 October 2019
Wetzel County man admits to operating a drug houseRead the Press Release
WHEELING, WEST VIRGINIA – David M. Metz, of New Martinsville, West Virginia, has admitted to maintaining a house to sell drugs, U.S. Attorney Bill Powell announced.
Metz, age 44, pled guilty to one count of “Aiding and Abetting the Maintaining of a Drug-Involved Premises.” Metz admitted to having a house on Veteran’s Highway in New Martinsville for the purpose of distributing and using methamphetamine from July 2018 to June 2019.
Metz faces up to 20 years incarceration and a fine of up to $500,000. 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 Robert H. McWilliams, Jr. is prosecuting the case on behalf of the government. The Marshall County Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the West Virginia State Police investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Westminster Woman Sentenced to Federal Prison After Selling Heroin That Led to Overdose DeathRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced today that Kayla Pagano, age 24, of Westminster, Colorado, was sentenced by Senior U.S. District Court Judge Robert E. Blackburn to serve 77 months (6 years and 5 months) in federal prison for distribution of heroin and methamphetamine. Following her prison sentence, Pagano will serve 4 years of supervised release. She appeared at the sentencing hearing in custody, and was remanded to the custody of the U.S. Marshals Service at the hearing’s conclusion.
According to the facts contained in Pagano’s plea agreement, on May 31, 2018, an individual with the initials E.N., a woman named Ariel Walker and an individual with the initials C.T., drove to Westminster to buy heroin from Kayla Pagano. E.N. paid Walker approximately $80 to purchase the heroin and approximately $40 for arranging the drug deal. Walker then met with Pagano at a Circle K in Westminster where she sold Walker approximately .20 grams of heroin and approximately .20 grams of methamphetamine. E.N. used the heroin and then passed out. Police later found E.N.’s dead body dumped in an alley in Denver. The heroin which caused E.N.’s death was the heroin Walker purchased from Pagano outside the Circle K and then distributed to E.N. Walker has pleaded guilty to distribution of heroin resulting in death in criminal case number 18-cr-414-RBJ and is scheduled to be sentenced on December 16, 2019.
“I hope drug dealers are getting the message: when someone dies as a result of your conduct, you will be held accountable and you will do time in federal prison,” said U.S. Attorney Jason Dunn.
“Today’s sentencing of Kayla Pagano illustrates the FBI’s commitment to investigating those that enable the heroin epidemic and the consequential tragedies resulting from this growing problem,” said FBI Denver Special Agent in Charge Dean Phillips. “We extend our gratitude to the Denver Police Department, the DEA, and the U.S. Attorney’s Office for their invaluable investigatory and prosecutorial assistance in this case.”
This case was investigated by the Denver Police Department with assistance from the FBI Denver OCDETF Strike Force. The defendant was prosecuted by Assistant U.S. Attorney Peter McNeilly.
Vance AFB Major Pleads Guilty to Kickbacks Involving Compounding PharmaciesRead the Press Release
OKLAHOMA CITY – ROMEATRIUS MOSS, 39, a nurse and Air Force Major stationed at Vance Air Force Base in Enid, has pleaded guilty to criminal health care fraud in which she accepted kickbacks for referring TRICARE beneficiaries to pharmacies furnishing compounded drugs, announced U.S. Attorney Timothy J. Downing.
According to a felony information filed on September 30, 2019, Moss solicited and received $73,823.06 in return for referrals to compounding pharmacies involving individuals covered by TRICARE, which is a health insurance program for members of the U.S. military. Because of resulting cost increases and infringement on patient choice, it is a crime to solicit or receive payments for referrals to health care providers for an item or service that could be paid, in whole or in part, by a federal health care program.
Moss pleaded guilty on October 15 before U.S. District Judge Patrick R. Wyrick. She admitted that while she was employed in the medical unit at Vance AFB, she gave military members pre-printed prescription pads and induced them to ask their doctors for specific compounded drugs. Moss admitted she then sent the prescriptions or caused them to be sent to specific pharmacies. Moss admitted she was paid a kickback that was a percentage of the gross reimbursement the pharmacies received from TRICARE for filling the prescriptions.
At sentencing, Moss faces a maximum penalty of five years in prison and a fine of up to $250,000, in addition to up to three years of supervised release. As a result of her plea agreement, she will pay restitution to TRICARE in the amount of $622,459, the total amount of kickbacks she received in the referral scheme. She has also agreed to the criminal forfeiture of her residence in Enid, a 2016 Porsche Cayenne, and a 2000 Fleetwood Pace Arrow.
These charges are the result of an investigation by the Defense Criminal Investigative Service, the Air Force’s Office of Special Investigations, and the Federal Bureau of Investigation–Oklahoma City Division. The case is being prosecuted by Assistant U.S. Attorney Amanda Maxfield Green.
Reference is made to court filings for further information.
Valley man sent to prison for lying on federal firearms formRead the Press Release
BROWNSVILLE, Texas – A 40-year-old Harlingen resident has been ordered to federal prison following his conviction of lying on a firearm application at a local Wal-Mart, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). A Brownsville jury deliberated for 30 minutes before convicting Juan Sauceda following a one-day trial June 18, 2019.
Today, U.S. District Judge Rolando Olvera handed Sauceda an 18-month sentence to be immediately followed by two years of supervised release. At the hearing, the defense argued for probation as there was “no harm, no foul.” The court denied that request and imposed the federal prison term.
On Sept. 6, 2018, Sauceda attempted to purchase a 12-gauge pump shotgun at a Wal-Mart in Harlingen. As a part of the purchase, he was required to fill out ATF Form 4473 in order to complete a background check. He signed the form, attesting that he never had a felony conviction. However, the investigation revealed he had a conviction for two counts of assault and battery with a deadly weapon. Sauceda had stabbed two individuals in 2013 in a dispute in Custer County, Oklahoma.
The defense attempted to convince the jury Sauceda was too uneducated to understand the form when he made the false statement as to his criminal history. The jury was not persuaded and found him guilty as charged.
Sauceda was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
ATF conducted the investigation. Assistant U.S. Attorney Justin Schorr Dinsdale and Israel Cano III prosecuted the case.
Upshur County residents indicted on drug and counterfeit chargesRead the Press Release
ELKINS, WEST VIRGINIA – Garry William Moran, II, and Johnna Dee Courtney, both of Buckhannon, West Virginia, were indicted today by a federal grand jury on methamphetamine and counterfeit charges, U.S. Attorney Bill Powell announced.
Moran, age 39, and Courtney, age 38, were each indicted on one count of “Conspiracy to Distribute Methamphetamine,” one count of “Possession with Intent to Distribute Methamphetamine,” one count of “Counterfeiting,” and one count of “Possession of Counterfeit Obligations.” Moran and Courtney are accused of distributing more than five grams of “crystal” methamphetamine, also known as “ice,” in May 2019 in Upshur County. They are also accused of making counterfeit money and having 95 counterfeit $100 bills in their possession.
Moran and Courtney each face at least five years and up to 40 years incarceration and a fine of up to $5,000,000 for the drug counts, and each face up to 20 years incarceration and a fine of up to $250,000 for each of the counterfeit counts. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The Mountain Lakes Drug & Violent Crimes Task Force and the United States Secret Service investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
United States Attorney Announces $6.84 Million in Grants Received from the Department of JusticeRead the Press Release
BIRMINGHAM – To close the 2019 Fiscal Year, the United States Department of Justice awarded twenty grants, amounting to nearly seven million dollars to support public safety and crime fighting initiatives throughout the Northern District of Alabama, announced U.S. Attorney Jay E. Town. Nine north Alabama counties (Calhoun, Cullman, DeKalb, Etowah, Jefferson, Lauderdale, Madison, St. Clair, and Tuscaloosa) will receive funding to enhance public safety services through various Department of Justice grants.
“The Department of Justice has again demonstrated its commitment to Alabama by providing much needed resources to local law enforcement and community partners in order to fight crime, reduce recidivism, and support the recovery of victims of crime,” Town said. “The harm that violent and drug crimes cause our communities, both urban and rural, is profound. This support will assist our local partners in remedying some of that damage by delivering justice to both victims and perpetrators.”
Eight cities (Anniston, Bessemer, Birmingham, Decatur, Florence, Gadsden, Huntsville, and Tuscaloosa) alongside DeKalb and St. Clair counties are receiving funding through the Office of Justice Programs’ Bureau of Justice Assistance (BJA) and the Edward Byrne Memorial Justice Assistance Grant (JAG) program. Under the JAG program, the cities will receive a total amount of $1,534,680 to support a broad range of activities to prevent and control crime based for their own state and local needs and conditions. JAG funds will be used to support all components of the criminal justice system, from multi-jurisdictional drug and gang task forces, to crime prevention and domestic violence programs, courts, corrections, treatment, justice information enforcement, and programs aimed at reducing crime and/or enhancing public/officer safety.
The Jefferson County District Attorney’s Office is receiving funding through the Office of Justice of Programs’ Bureau of Justice Assistance and BJA’s National Sexual Assault Kit Initiative (SAKI) grant program. Under the SAKI grant, the District Attorney’s Office will receive $876,804 to support the Department’s criminal justice priorities of reducing violent crime and supporting law enforcement officers and prosecutors by providing jurisdictions with resources to address sexual assault kits (SAKs) in their custody that have not been submitted to a forensic laboratory for testing with Combined DNA Index System (CODIS)-eligible DNA methodologies, and improving investigation and prosecution in connection with evidence and cases resulting from the testing process. The program also provides sites with resources to collect DNA samples from qualifying individuals who should have a sample in CODIS, but from whom a sample has never been collected or submitted to a laboratory for testing. In addition, SAKI will provide investigators with assistance on how to effectively question subjects, which could provide stronger investigative leads and build stronger prosecutorial cases, which in turn could help solve more crimes.
The Link of Cullman County, Inc. (The Link) is receiving funding through the U.S. Department of Justice’s Office of Justice Programs’ Bureau of Justice Assistance and Community-Based Adult Reentry with Small or Rural Organizations Program. Under the Community Based Adult Reentry Grant, The Link will receive $500,000. The Link will use these funds to provide a comprehensive approach to adult reentry to identify transitional needs of the offender by providing case management, cognitive intervention, and follow-up measures.
City of Birmingham Police Department (BPD) is receiving funding through the U.S. Department of Justice’s Office of Justice Programs’ Bureau of Justice Assistance’s Body Warn Camera Program. Under the Body Warn Camera Program, Birmingham Police Department will receive $276,000 to support the implementation of body-worn cameras. The intent of the program is to help BPD develop, implement, and assess the body warn camera as an additional tool in their comprehensive problem-solving approach to leverage the evidentiary value of digital footage; enhance officer and citizen safety, promote mutual trust and civility between officers and the public; and build community trust.
All of these grant monies are in addition to the Project Safe Neighborhoods programs currently underway across the Northern District, along with the DOJ funding, training, and technical assistance already being provided through the National Public Safety Partnership in the Cities of Birmingham, Anniston, and Oxford.
Announced last week, the Department of Justice awarded the National Children’s Advocacy Center three grants totaling $2,734,498.
U.S. Attorney Ariana Fajardo Orshan, Nova Southeastern University’s CREATE Program and Federal Task Force Host Human Trafficking SymposiumRead the Press Release
U.S. Attorney for the Southern District of Florida Ariana Fajardo Orshan, Nova Southeastern University’s Coalition for Research and Education Against Trafficking and Exploitation (CREATE) and the Federal South Florida Human Trafficking Task Force hosted a symposium yesterday to raise public awareness about human trafficking. The free program provided advanced human trafficking training and resources to more than 380 individuals, including victim service providers, law enforcement personnel, prosecutors, medical professionals, and members of the local community.
“Partnerships and collaboration are vital to our fight against human trafficking,” stated U.S. Attorney Fajardo Orshan. “We cannot rescue victims, provide services to survivors, or successfully prosecute traffickers without our expanded partnerships and ongoing collaboration.”
The Federal South Florida Human Trafficking Task Force, led by the U.S. Attorney’s Office, Homeland Security Investigations, Miami-Dade Police Department, and International Rescue Committee, works to increase public awareness, identify victims, ensure that survivors receive assistance, and prosecute traffickers. The Task Force is composed of federal agencies including, the FBI (specifically, its Child Exploitation and Human Trafficking Task Force), U.S. Department of State’s Diplomatic Security Service, and U.S. Department of Labor. Several other state and local law enforcement entities in South Florida are supportive task force members. Additionally, the Task Force collaborates with non-law enforcement entities, including the Florida Department of Children and Families, service providers, victim advocates, faith-based organizations, academic representatives and community members. Presently, the Task Force includes more than 300 non-law enforcement members. In addition, many of our northern partners support the West Palm Beach Human Trafficking Task Force, while the South Florida Human Trafficking Task Force, which covers Miami-Dad and Broward counties, has more than 400 members.
CREATE’s mission is to equip all members of the community – including private citizens, educators, current and future health care professionals and members of organizations – with the skills to identify victims of human trafficking, in order to increase reporting and referrals to appropriate health and social services.
Since being appointed as U.S. Attorney for the Southern District of Florida in 2018, Ariana Fajardo Orshan has remained committed to expanding our partnerships to combat human trafficking, educating the public, and ensuring that the prosecution of human trafficking cases is a priority for the Office. She currently serves on the Attorney General’s Advisory Subcommittee on Human Trafficking. Recently, she expanded the Special Prosecution’s Section of the U.S. Attorney’s Office. The Section has helped to oversee the district’s Human Trafficking and Project Safe Childhood Programs (PSC), and the Office’s Violence Reduction Partnership (VRP) Program, while prosecuting cases involving victims of violent crimes (resulting in death or serious bodily injury), human trafficking, child exploitation, and other criminal offenses. As a native of Miami and concerned citizen, U.S. Attorney Fajardo Orshan is committed to raising public awareness and promoting community outreach – in order to help us all to combat human trafficking.
Since the beginning of 2019, the Task Force has participated in more than 100 human trafficking community outreach events. Audiences include grade school, university, and college students, teachers, professors, medical professionals, faith-based organizations, immigration and labor attorneys, federal, state, and local government employees, as well as hotel and motel employees. These efforts come in advance of Miami Super Bowl 54 in February. In preparation for the event, the Task Force will continue its efforts to expand partnerships, collaboration, training of state, local, and federal law enforcement officers and prosecutors, and community outreach.
The U.S. Attorney’s Office for the Southern District of Florida and the entire Task Force is fully committed to utilizing a victim-centered approach to rescuing victims and aggressively prosecuting traffickers. From Fiscal Year 2013 through Fiscal Year 2019, the U.S. Attorney’s Office for the Southern District of Florida prosecuted 72 offenders in 51 human trafficking cases, including labor and sex trafficking. These cases collectively involved the victimization of more than 80 survivors of human trafficking. For Fiscal Year 2019, the U.S. Attorney’s Office for the Southern District of Florida charged 12 human trafficking cases against 15 defendants in federal court, an increase from Fiscal Year 2018. Presently, 5 human trafficking cases are charged federally in Miami.
“We cannot do this work alone; we also rely on the members of our diverse community to continue to raise public awareness and report suspected trafficking,” stated U.S. Attorney Fajardo Orshan. “Sadly, despite the hard work of so many people in our community we continue to see human traffickers exploit children, adults, males, females, LGBTQ persons, drug addicts, foreign nationals and U.S. citizens. We encourage everyone to report human trafficking and help victims to come out of the shadows, where they can be seen and set free.”
To report suspected human trafficking or to obtain resources for victims, please call 1-888-373-7888; text “BeFree” (233733), or live chat at HumanTraffickingHotline.org. The toll-free phone, SMS text lines, and online chat function are available 24 hours a day, 7 days a week, 365 days a year. Help is available in English, Spanish, Creole, or in more than 200 additional languages. The National Hotline is not managed by law enforcement, immigration or an investigative agency. Correspondence with the National Hotline is confidential and you may request assistance or report a tip anonymously.
To learn more about CREATE visit www.nova.edu/create. To learn more about the National Resource Hotline visit www.humantraffickinghotline.org. To learn more about the U.S. Department of Justice’s efforts to combat human trafficking visit www.justice.gov/humantrafficking.
To learn more about the nationwide Project Safe Neighborhoods (PSN) initiative and local Violence Reduction Partnership (VRP) visit https://www.justice.gov/psn, https://www.justice.gov/usao-sdfl/violence-reduction-partnerships.
U.S. Attorney Announces Multiple Charges Against Bronx Tax PreparerRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Jonathan D. Larsen, Special Agent in Charge of the New York Office of the Internal Revenue Service, Criminal Investigation Division (“IRS-CI”), announced today the arrest of LORENZO ALMANZAR for preparing fraudulent tax returns containing more than $400,000 in fraudulent deductions and making false statements to federal agents. ALMANZAR was presented in Manhattan federal court today before U.S. Magistrate Judge Stewart D. Aaron.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Lorenzo Almanzar used his accounting skills to bilk the government of thousands of dollars. Almanzar now faces 30 counts of criminal tax charges, and the possibility of time behind bars.”
IRS-CI New York Special Agent in Charge Jonathan D. Larsen said: “Well-intentioned taxpayers can be victimized by tax return preparers who mislead people into taking credits or deductions they aren’t entitled to in order to increase their fee or burnish their reputation. As Almanzar learned today when he was arrested, there are serious consequences for allegedly defrauding his clients. IRS-CI special agents are committed to identifying and prosecuting unscrupulous tax return preparers.”
According to the allegations in the Complaint unsealed in Manhattan federal court[1]:
From 2014 through 2017, ALMANZAR owned and operated a business called Future International Corp. (“Future”) in the Bronx, New York, which purported to offer tax preparation services. As alleged in the Complaint, ALMANZAR prepared fraudulent returns that fabricated and falsely overstated various items, including, among other things, medical expenses, charitable expenses, and unreimbursed employee business expenses. Additionally, ALMANZAR made false statements to federal agents during the course of their investigation into those fraudulent returns.
ALMANZAR prepared multiple fraudulent tax returns containing more than $400,000 in fraudulent deductions, which resulted in a tax loss of at least $57,000.
* * *
ALMANZAR, 63, of White Plains, New York, is charged with 30 counts of aiding and assisting the preparation of false and fraudulent tax returns, each of which carries a maximum sentence of three years in prison, and one count of making false statements to federal agents, which carries a maximum sentence of five years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Berman praised the outstanding investigative work of Special Agents from IRS-CI. The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Jarrod L. Schaeffer is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the descriptions of the Complaint constitute only allegations, and every fact described should be treated as an allegation.
Tulsa Woman Indicted for Mail Theft at Sheridan StationRead the Press Release
A federal grand jury returned an indictment in early October charging a Tulsa woman with stealing mail and destroying post office boxes at a U.S. Post Office station located in south Tulsa, announced U.S. Attorney Trent Shores. The indictment was unsealed today after Hillary Victoria Ginn, 42, was arrested by U.S. Postal Inspection Service Inspectors and she made an initial appearance in U.S. District Court.
Ginn allegedly stole mail or attempted to steal mail from mailboxes located in the Tulsa, Oklahoma, Sheridan Station on six different occasions from Aug. 18, 2019, through Sept. 22, 2019. Ginn is charged with six counts of Theft of Mail and Attempted Theft of Mail and six counts of Destruction of Letter Boxes and Mail.
“Maintaining the integrity of the mail is vital to commerce and communication throughout our country and beyond its borders,” said U.S. Attorney Trent Shores. “Mail theft is often the first step in other serious crimes such as identity theft and fraud. These white collar crimes can be financially ruinous for victims. The U.S. Postal Inspection Service and U.S. Attorney’s Office will always partner up to stop mail thieves.”
The U.S. Postal Inspection Service’s Fort Worth Division Inspector in Charge Thomas Noyes said, “The U.S. Postal Inspection Service is committed to protecting our employees, customers and the U.S. Mail. The public depends on the sanctity of the mail, and theft of that mail is an attack on the trust the American public has placed in the mail system. Postal Inspectors investigate all reports of mail theft to identify and hold accountable those responsible. We value our partnerships with our local law enforcement partners in the Tulsa area and the U.S. Attorney’s Office.”
The Tulsa Police Department and U.S. Postal Inspection Service are the investigative agencies. Assistant U.S. Attorney Joseph F. Wilson is prosecuting the case.
An Indictment is a formal statement of charges or alleged violations of law. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Three Members of “Head Shot Mafia” Drug Crew ArrestedRead the Press Release
BOSTON – Three members of a violent Brockton drug crew were arrested and charged in connection with operating a fentanyl delivery service. One member of the drug crew remains at large.
Placido Armando Pereira, 33; Natalio Miranda, 28; andDjoy Defrancesco, 23, all of Brockton, were arrested this morning and charged with conspiracy to distribute and to possess with intent to distribute fentanyl. The defendants were detained following an initial appearance today before U.S. Magistrate Judge M. Page Kelley. A fourth defendant, Jason Miranda, 24, of Taunton, remains at large.
As alleged in charging documents, law enforcement began investigating a violent Brockton-area drug crew that distributed large quantities of fentanyl throughout southeastern Massachusetts. The drug crew, which refers to itself as “HSM,” for “Head Shot Mafia,” ran a fentanyl delivery service that encompassed all of Brockton as well as neighboring cities. Specifically, it is alleged that drug users/customers placed orders for fentanyl by contacting a cellphone maintained and shared by HSM crew members, and that HSM members worked together to deliver the fentanyl order. Beginning in September 2019, agents succeeded in introducing an undercover law enforcement officer to HSM, who made six purchases of fentanyl from members of the crew.
According to the criminal complaint and court records, the defendants have criminal records. In 2017, Pereira was convicted of unlawful possession of a firearm and possession with intent to distribute marijuana and was sentenced to three years in prison. In 2010, Pereira was arrested on drug trafficking charges at Logan Airport as he returned to the U.S. from Cape Verde, and later sentenced to 30 months in prison and three years of supervised release. On Feb. 20, 2014, Pereira was the target of an assassination attempt in Brockton.
According to court documents, Natalio Miranda sold fentanyl to the undercover officer while on probation for a state drug trafficking offense. Furthermore, Defrancesco sold fentanyl to the undercover officer while on pre-trial release from a Plymouth Superior Court indictment charging him with trafficking in fentanyl, possession of a firearm, and possession of a high capacity feeding device, among other offenses.
The charge of conspiracy to distribute and possess with intent to distribute fentanyl provides for a sentence of up to 20 years in prison, three years of supervised release, and a fine of up to $1 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Brockton Police Chief John Crowley; John Gibbons, U.S. Marshal for the District of Massachusetts; and Plymouth County District Attorney Timothy J. Cruz made the announcement today. Assistance was provided by the East Bridgewater, West Bridgewater, Whitman and Bridgewater State University Police Departments as well as the Plymouth County Sheriff’s Office. Assistant U.S. Attorney Christopher Pohl of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the complaint are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Statement of the U.S. Attorney’s Office for Domestic Violence Awareness MonthRead the Press Release
By Presidential Proclamation, October is Domestic Violence Awareness month. Domestic violence is a heinous crime that terrorizes adults and children, destroys relationships, and shatters the home, which should be a place of safety, love, and respect. Across the country, domestic violence threatens – in the worst cases ends – lives. During this month of awareness, we reaffirm our steadfast commitment to empowering survivors and ending this horrible, destructive, and life-threatening form of abuse. As a country, we must resolve to show zero tolerance for acts of domestic violence. This is a top priority for the Department of Justice. In Vermont, the zero tolerance policy is in full effect. The U.S. Attorney’s Office is doubling down on efforts to combat domestic violence in the Green Mountain State. We are working with our state and local law enforcement partners and community providers as never before to prevent and bring serious consequences to domestic abusers and to ensure victims and survivors are connected to support and empowerment networks. The reason: domestic violence is a problem in Vermont. In recent years, nearly half of Vermont’s homicides have arisen in the domestic context, and Vermont has outpaced the national average for instances of male perpetrators and female victims.
The first component of our renewed and invigorated campaign is outreach to state and local law enforcement. Roughly 40 percent of Vermont’s domestic violence homicides are committed with a gun. There is a collection of federal laws – many pertaining to firearms – that can be used to prevent domestic violence and bring justice to perpetrators. These federal crimes can very often be proven without the testimony of the victim, who, for obvious reasons, may be unready and reluctant to testify in a court proceeding against an abuser. The U.S. Attorney’s Office has created a comprehensive brochure listing and summarizing the federal statutes that may be charged in the domestic violence context. The brochure can be found on our website at /media/1025776/dl?inline. The U.S. Attorney’s Office is circulating this information to State’s Attorney’s Offices, the Vermont Attorney General’s Office, and to federal, state, local, and county law enforcement. The written information will be accompanied by in-person meetings.
The pertinent federal domestic violence laws can generally be grouped into two different categories. First, crimes under the Gun Control Act, particularly those proscribing prohibited persons – such as convicted felons, individuals previously convicted of misdemeanor domestic violence offenses, individuals subject to restraining orders, drug users, individuals previously adjudicated mentally defective, and others – from possessing firearms. It is also a federal crime to lie to a gun store about your prohibited person status in the course of buying a firearm. Second, the Violence Against Women Act contains a series of prohibitions relating to domestic violence, including laws against interstate travel to commit domestic violence or to violate a restraining order, cyberstalking, and interstate stalking. We are committed to ensuring we inform our state and local partners of these laws and maximize referral of these cases to the U.S. Attorney’s Office.
As with all issues of public safety, while we will make as many arrests as we can consistent with the interests of justice, we cannot arrest our way out of the problem. We are working closely with our partners in the prevention, education, and victim-survivor support communities to advance a comprehensive approach to ending domestic violence in Vermont. The Department of Justice recently awarded Vermont a Project Safe Neighborhoods grant. The Vermont Project Safe Neighborhoods Task Force – comprised of federal, state and local law enforcement, and a community nonprofit partner – has elected to direct the grant monies toward combatting domestic violence in Vermont. The grant will be administered by the anti-domestic violence nonprofit organization, Circle, and we will encourage solicitations that seek to use the money for domestic violence prevention and education. In addition, along with its brochure describing relevant federal crimes, the U.S. Attorney’s Office has created a short flyer summarizing the resources available to domestic violence victims and survivors in every county of Vermont. The flyer can be found on our website at /media/1025771/dl?inline.
The U.S. Attorney’s Office also recently worked closely with the Vermont Attorney General’s Office to support its successful application for a Domestic Violence Technical Assistance Grant from the Department of Justice Office of Violence against Women and the National Council for Juvenile and Family Court Judges. Vermont is one of only a handful of locations in the country to receive this grant, and the only state to receive the grant on a statewide basis. Discussion amongst stakeholders is currently underway to determine how best to deploy the technical assistance grant.
Lastly, the U.S. Attorney was recently appointed to the Domestic Violence Working Group of the U.S. Attorney General’s Advisory Committee. This group serves to advise the Attorney General and federal law enforcement nationwide as to how to effectively marshal federal resources to combat domestic violence.
As Vermonters and Americans, we must remain vigilant in our quest to end the horror of domestic violence and promote peace and safety in the home. While we must recognize and face head-on the existence and tragedy of domestic violence, we should also take heart in knowing that combatting and preventing this crime are top priorities of law enforcement at all levels, and that stakeholders are working closely across disciplines to bring a stop to it. We are working with urgency, because this is a matter of life and death.
Springfield federal firearms licensee sentenced for falsifying recordsRead the Press Release
DAYTON – The owner of a Springfield gun store whose falsified records showed he was selling guns to a deceased individual was sentenced in U.S. District Court today to 18 months in prison.
James A. Mayhugh, Jr., 61, of Springfield, Ohio, falsified firearms sales records for more than 200 gun sales. Mayhugh lied in his records concerning the identity of the purchaser and then actually sold the firearms to unknown individuals on the black market. A least two of the 248 weapons were later discovered by law enforcement officers out of state while executing search warrants.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Jonathan McPherson, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), announced the sentence imposed by U.S. District Judge Walter H. Rice.
Mayhugh owned and operated Jim’s Sports in Springfield. According to court documents, ATF Industry Operation Investigators (IOI) noticed unusual trends in Mayhugh’s sales records. Identical firearm sales to an identical group of individuals had been recorded between 2008 and 2018. Also, while federal law required the purported purchaser to personally complete and sign forms before acquiring a firearm, each document instead bore Mayhugh’s handwriting.
While further reviewing Mayhugh’s records, ATF IOIs discovered one customer had died in 2014, even though Mauhugh’s records reflected gun purchases as recently as early 2018. Other customers had actually purchased from Mayhugh on one occasion 15 to 20 years ago, but records showed repeated buys in recent years.
Subsequent to a court-authorized search, agents discovered documents reflecting more than 200 firearm sales to fictitious customers.
Mayhugh pleaded guilty in May to willfully violating federal requirements to provide the name, age and address of firearms purchasers.
Mayhugh also agreed to surrender his federal firearms license and no longer operates a business.
U.S. Attorney Glassman commended the investigation of this case by ATF and Assistant United States Attorney Brent G. Tabacchi, who is representing the United States in this case.
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Springfield Man Pleads Guilty to Drug ChargeRead the Press Release
BOSTON – A Springfield man pleaded guilty today in federal court in Springfield to distributing cocaine.
Samuel Diaz, a/k/a “Sammy,” 36, pleaded guilty to distributing approximately 50 grams of cocaine to a cooperating witness on March 24, 2015. Diaz also sold a firearm and ammunition to the cooperating witness on the same day.
U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Jan. 23, 2020.
The charge of distributing and possessing with intent to distribute cocaine provides a sentence of up to 20 years in prison, at least three years of supervised release, and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement today. Assistant U.S. Attorney Katharine A. Wagner of Lelling’s Springfield Branch Office is prosecuting the case.
South Korean National and Hundreds of Others Charged Worldwide in the Takedown of the Largest Darknet Child Pornography Website, Which was Funded by BitcoinRead the Press Release
WASHINGTON - Jong Woo Son, 23, a South Korean national, was indicted by a federal grand jury in the District of Columbia for his operation of Welcome To Video, the largest child sexual exploitation market by volume of content. The nine-count indictment was unsealed today along with a parallel civil forfeiture action. Son has also been charged and convicted in South Korea and is currently in custody serving his sentence in South Korea. An additional 337 site users residing in Alabama, Arkansas, California, Connecticut, Florida, Georgia, Kansas, Louisiana, Maryland, Massachusetts, Nebraska, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Texas, Utah, Virginia, Washington State and Washington, D.C. as well as the United Kingdom, South Korea, Germany, Saudi Arabia, the United Arab Emirates, the Czech Republic, Canada, Ireland, Spain, Brazil and Australia have been arrested and charged.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jessie K. Liu for the District of Columbia, Chief Don Fort of IRS Criminal Investigation (IRS-CI) and Acting Executive Associate Director Alysa Erichs of U.S. Immigration and Customs Enforcement (ICE)’s Homeland Security Investigations (HSI), made the announcement.
“Darknet sites that profit from the sexual exploitation of children are among the most vile and reprehensible forms of criminal behavior,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “This Administration will not allow child predators to use lawless online spaces as a shield. Today’s announcement demonstrates that the Department of Justice remains firmly committed to working closely with our partners in South Korea and around the world to rescue child victims and bring to justice the perpetrators of these abhorrent crimes.”
“Children around the world are safer because of the actions taken by U.S. and foreign law enforcement to prosecute this case and recover funds for victims,” said U.S. Attorney Jessie K. Liu. “We will continue to pursue such criminals on and off the darknet in the United States and abroad, to ensure they receive the punishment their terrible crimes deserve.”
“Through the sophisticated tracing of bitcoin transactions, IRS-CI special agents were able to determine the location of the Darknet server, identify the administrator of the website and ultimately track down the website server’s physical location in South Korea,” said IRS-CI Chief Don Fort. “This largescale criminal enterprise that endangered the safety of children around the world is no more. Regardless of the illicit scheme, and whether the proceeds are virtual or tangible, we will continue to work with our federal and international partners to track down these disgusting organizations and bring them to justice.”
“Children are our most vulnerable population, and crimes such as these are unthinkable,” said HSI Acting Executive Associate Director Alysa Erichs. “Sadly, advances in technology have enabled child predators to hide behind the dark web and cryptocurrency to further their criminal activity. However, today’s indictment sends a strong message to criminals that no matter how sophisticated the technology or how widespread the network, child exploitation will not be tolerated in the United States. Our entire justice system will stop at nothing to prevent these heinous crimes, safeguard our children, and bring justice to all.”
According to the indictment, on March 5, 2018, agents from the IRS-CI, HSI, National Crime Agency in the United Kingdom, and Korean National Police in South Korea arrested Son and seized the server that he used to operate a Darknet market that exclusively advertised child sexual exploitation videos available for download by members of the site. The operation resulted in the seizure of approximately eight terabytes of child sexual exploitation videos, which is one of the largest seizures of its kind. The images, which are currently being analyzed by the National Center for Missing and Exploited Children (NCMEC), contained over 250,000 unique videos, and 45 percent of the videos currently analyzed contain new images that have not been previously known to exist.
Welcome To Video offered these videos for sale using the cryptocurrency bitcoin. Typically, sites of this kind give users a forum to trade in these depictions. This Darknet website is among the first of its kind to monetize child exploitation videos using bitcoin. In fact, the site itself boasted over one million downloads of child exploitation videos by users. Each user received a unique bitcoin address when the user created an account on the website. An analysis of the server revealed that the website had more than one million bitcoin addresses, signifying that the website had capacity for at least one million users.
The agencies have shared data from the seized server with law enforcement around the world to assist in identifying and prosecuting customers of the site. This has resulted in leads sent to 38 countries and yielded arrests of 337 subjects around the world. The operation has resulted in searches of residences and businesses of approximately 92 individuals in the United States. Notably, the operation is responsible for the rescue of at least 23 minor victims residing in the United States, Spain and the United Kingdom, who were being actively abused by the users of the site.
In the Washington, D.C.-metropolitan area, the operation has led to the execution of five search warrants and eight arrests of individuals who both conspired with the administrator of the site and were themselves, users of the website. Two users of the Darknet market committed suicide subsequent to the execution of search warrants.
Amongst the sites users charged are:
•Charles Wunderlich, 34, of Hot Springs, California, was charged in the District of Columbia with conspiracy to distribute child pornography;
•Brian James LaPrath, 34, of San Diego, California, was arrested in the District of Columbia, for international money laundering; and was sentenced to serve 18 months in prison followed by three years of supervised release;
•Ernest Wagner, 70, of Federal Way, Washington, was arrested and charged in the District of Columbia with conspiracy to distribute child pornography;
•Vincent Galarzo, 28, of Glendale, New York, was arrested and charged in the District of Columbia with conspiracy to distribute child pornography;
•Michael Ezeagbor, 22, of Pflugerville, Texas, was arrested and charged in the District of Columbia with conspiracy to distribute child pornography;
•Nicholas Stengel, 45, of Washington, D.C., pleaded guilty to receipt of child pornography and money laundering and was sentenced to serve 15 years in prison followed by a lifetime of supervised release;
•Eryk Mark Chamberlin, 25, of Worcester, Massachusetts, pleaded guilty to possession of child pornography and is pending sentencing;
•Jairo Flores, 30, of Cambridge, Massachusetts, pleaded guilty in the District of Massachusetts to receipt and possession of child pornography and was sentenced to serve five years in prison followed by five years of supervised release;
•Billy Penaloza, 29, of Dorchester, Massachusetts, pleaded guilty in the District of Massachusetts to possession and receipt of child pornography. His sentencing is scheduled for Oct. 22, 2019;
•Michael Armstrong, 35, of Randolph, Massachusetts, pleaded guilty in the District of Massachusetts, to receipt and possession of child pornography. He was sentenced to serve five years in prison followed by five years of supervised release. Restitution will be determined at a future date;
•Al Ramadhanu Soedomo, 28, of Lynn, Massachusetts, pleaded guilty to possession of child pornography and was sentenced in the District of Massachusetts (Boston), to serve 12 months and one day followed by five years of supervised release;
•Phillip Sungmin Hong, 24, of Sharon, Massachusetts, pleaded guilty in the District of Massachusetts (Boston), to receipt and possession of child pornography and is pending sentencing;
•Eliseo Arteaga Jr., 28, of Mesquite, Texas, pleaded guilty in the Northern District of Texas to possession of prepubescent child pornography. He is pending sentencing;
•Richard Nikolai Gratkowski, 40, of San Antonio, Texas, a former HSI special agent, was arrested in the Western District of Texas. Gratkowski pleaded guilty to the indictment charging one count of receipt of child pornography and one count of access with intent to view child pornography. Gratkowski was sentenced to serve 70 months in prison followed by 10 years of supervised release, and ordered to pay $35,000 in restitution to seven victims and a $10,000 assessment;
•Paul Casey Whipple, 35, of Hondo, Texas, a U.S. Border Patrol Agent, was arrested in the Western District of Texas, on charges of sexual exploitation of children/minors, production, distribution, and possession of child pornography. Whipple remains in custody awaiting trial in San Antonio;
•Michael Lawson, 36, of Midland, Georgia, was arrested in the Middle District of Georgia on charges of attempted sexual exploitation of children and possession of child pornography. He was sentenced to serve 121 months in prison followed by 10 years of supervised release following his plea to a superseding information charging him with one count of receipt of child pornography;
•Kevin Christopher Eagan, 39, of Brookhaven, Georgia, pleaded guilty to possession of child pornography in the Northern District of Georgia;
•Casey Santioius Head, 37, of Griffin, Georgia, was indicted in the Northern District of Georgia for distribution, receipt, and possession of child pornography;
•Andrew C. Chu, 28, of Garwood, New Jersey, was arrested and charged with receipt of child pornography. Those charges remain pending;
•Nader Hamdi Ahmed, 29 of Jersey City, New Jersey, was arrested in the District of New Jersey, for sexual exploitation or other abuse of children. Ahmed pleaded guilty to an information charging him with one count of distribution of child pornography. He is scheduled to be sentenced Oct. 1, 2019;
•Jeffrey Lee Harris, 32, of Pickens, South Carolina, pleaded guilty in the District of South Carolina for producing, distributing, and possessing child pornography;
•Laine Ormand Clark Jr., 27, of Conway, South Carolina, was arrested and charged in U.S. District Court in South Carolina Division for sexual possession of child pornography;
•Jack R. Dove III, 38, of Lakeland, Florida, was arrested in the Middle District of Florida for knowingly receiving and possessing visual depictions of minors engaged in sexually explicit conduct;
•Michael Matthew White, 39, of Miami Beach, Florida, was arrested in the Southern District of Florida for coercion and enticement;
•Nikolas Bennion Bradshaw, 24, of Bountiful, Utah, was arrested in the State of Utah, and charged with five counts of sexual exploitation of a minor, and was sentenced to time served with 91 days in jail followed by probation;
•Michael Don Gibbs, 37, of Holladay, Utah, was charged in the District of Utah with receipt of child pornography and possession of child pornography;
•Ammar Atef H. Alahdali, 22, of Arlington, Virginia, pleaded guilty in the Eastern District of Virginia to receipt of child pornography and was sentenced to serve five years in prison and ordered to pay $3,000 in restitution;
•Mark Lindsay Rohrer, 38, of West Hartford, Connecticut, pleaded guilty in the District of Connecticut to receipt of child pornography and was sentenced to serve 60 months in prison followed by five years of supervised release;
•Eugene Edward Jung, 47, of San Francisco, California, was indicted in the Northern District of California on possession of child pornography and receipt of child pornography;
•James Daosaeng, 25, of Springdale, Arkansas, pleaded guilty to possession of child pornography and was sentenced in the Western District of Arkansas (Fayetteville) to serve 97 months in prison followed by 20 years of supervised release;
•Alex Daniel Paxton, 30, of Columbus, Ohio, was arrested and indicted in Franklin County Ohio Court of Common Pleas for pandering sexually oriented matter involving a minor;
•Don Edward Pannell, 32, of Harvey, Louisiana, pleaded guilty in the Eastern District of Louisiana for receipt of child pornography. He is pending sentencing;
•Ryan Thomas Carver, 29, of Huntsville, Alabama, was arrested and charged under Alabama State Law. He was charged federally in the Northern District of Alabama with possession of child pornography. His case is pending in Huntsville, Alabama;
•Andrew Buckley, 28, of the United Kingdom, pleaded guilty to 10 offences in the UK of possession and distribution of indecent images of children, possession of extreme and prohibited images and possession of a class A drug. He was sentenced to serve 40 months in prison for the distribution of indecent images and possession of class A drugs. Buckley is also subject to an indefinite Sexual Harm Prevention Order;
•Kyle Fox, 26, of the United Kingdom, pleaded guilty to 22 counts including rape, sexual assault, and sharing indecent images, and was sentenced to serve 22 years in prison; and
•Mohammed Almaker, 26, of Fort Collins, Colorado, was arrested in the Kingdom of Saudi Arabia (KSA), charged with KSA Law involving the endangerment of children. He is awaiting judicial proceedings in furtherance of criminal charges.
A forfeiture complaint was also unsealed today. The complaint alleges that law enforcement was able to trace payments of bitcoin to the Darknet site by following the flow of funds on the blockchain. The virtual currency accounts identified in the complaint were allegedly used by 24 individuals in five countries to fund the website and promote the exploitation of children. The forfeiture complaint seeks to recover these funds and, ultimately through the restoration process, return the illicit funds to victims of the crime.
The charges in the indictment are merely allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The international investigations were led by the IRS-CI, HSI and the NCA. The Korean National Police of the Republic of Korea, the National Crime Agency of the United Kingdom and the German Federal Criminal Police (the Bundeskriminalamt), provided assistance and coordinated with their parallel investigations. The Department of Justice’s Office of International Affairs of the Criminal Division provided significant assistance.
The cases are being handled by Assistant U.S. Attorneys Zia M. Faruqui, Lindsay Suttenberg, and Youli Lee, Paralegal Specialists Brian Rickers and Diane Brashears, Legal Assistant Jessica McCormick, and Records Examiner Chad Byron of the U.S. Attorney’s Office for the District of Columbia and Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section. Additional assistance has been provided by Deputy Chief Keith Becker and Trial Attorney James E. Burke IV of the Criminal Division’s Child Exploitation and Obscenity Section, and former U.S. Attorney’s Office Paralegal Specialists Toni Anne Donato and Ty Eaton.
South Korean National and Hundreds of Others Charged Worldwide in the Takedown of the Largest Darknet Child Pornography Website, Which was Funded by BitcoinRead the Press Release
WASHINGTON – Jong Woo Son, 23, a South Korean national, was indicted by a federal grand jury in the District of Columbia for his operation of Welcome To Video, the largest child sexual exploitation market by volume of content. The nine-count indictment was unsealed today along with a parallel civil forfeiture action. Son has also been charged and convicted in South Korea and is currently in custody serving his sentence in South Korea. An additional 337 site users residing in Alabama, Arkansas, California, Connecticut, Florida, Georgia, Kansas, Louisiana, Maryland, Massachusetts, Nebraska, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Texas, Utah, Virginia, Washington State and Washington, D.C. as well as the United Kingdom, South Korea, Germany, Saudi Arabia, the United Arab Emirates, the Czech Republic, Canada, Ireland, Spain, Brazil and Australia have been arrested and charged.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jessie K. Liu for the District of Columbia, Chief Don Fort of IRS Criminal Investigation (IRS-CI) and Acting Executive Associate Director Alysa Erichs of U.S. Immigration and Customs Enforcement (ICE)’s Homeland Security Investigations (HSI), made the announcement.
“Darknet sites that profit from the sexual exploitation of children are among the most vile and reprehensible forms of criminal behavior,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “This Administration will not allow child predators to use lawless online spaces as a shield. Today’s takedown demonstrates that the Department of Justice remains firmly committed to working closely with our partners in South Korea and around the world to rescue child victims and bring to justice the perpetrators of these abhorrent crimes.”
“Children around the world are safer because of the actions taken by U.S. and foreign law enforcement to prosecute this case and recover funds for victims,” said U.S. Attorney Jessie K. Liu. “We will continue to pursue such criminals on and off the darknet in the United States and abroad, to ensure they receive the punishment their terrible crimes deserve.”
Through the sophisticated tracing of bitcoin transactions, IRS-CI special agents were able to determine the location of the Darknet server, identify the administrator of the website and ultimately track down the website server’s physical location in South Korea,” said IRS-CI Chief Don Fort. “This largescale criminal enterprise that endangered the safety of children around the world is no more. Regardless of the illicit scheme, and whether the proceeds are virtual or tangible, we will continue to work with our federal and international partners to track down these disgusting organizations and bring them to justice.”
“Children are our most vulnerable population, and crimes such as these are unthinkable,” said HSI Acting Executive Associate Director Alysa Erichs. “Sadly, advances in technology have enabled child predators to hide behind the dark web and cryptocurrency to further their criminal activity. However, today’s indictment sends a strong message to criminals that no matter how sophisticated the technology or how widespread the network, child exploitation will not be tolerated in the United States. Our entire justice system will stop at nothing to prevent these heinous crimes, safeguard our children, and bring justice to all.”
According to the indictment, on March 5, 2018, agents from the IRS-CI, HSI, National Crime Agency in the United Kingdom, and Korean National Police in South Korea arrested Son and seized the server that he used to operate a Darknet market that exclusively advertised child sexual exploitation videos available for download by members of the site. The operation resulted in the seizure of approximately eight terabytes of child sexual exploitation videos, which is one of the largest seizures of its kind. The images, which are currently being analyzed by the National Center for Missing and Exploited Children (NCMEC), contained over 250,000 unique videos, and 45 percent of the videos currently analyzed contain new images that have not been previously known to exist.
Welcome To Video offered these videos for sale using the cryptocurrency bitcoin. Typically, sites of this kind give users a forum to trade in these depictions. This Darknet website is among the first of its kind to monetize child exploitation videos using bitcoin. In fact, the site itself boasted over one million downloads of child exploitation videos by users. Each user received a unique bitcoin address when the user created an account on the website. An analysis of the server revealed that the website had more than one million bitcoin addresses, signifying that the website had capacity for at least one million users.
The agencies have shared data from the seized server with law enforcement around the world to assist in identifying and prosecuting customers of the site. This has resulted in leads sent to 38 countries and yielded arrests of 337 subjects around the world. The operation has resulted in searches of residences and businesses of approximately 92 individuals in the United States. Notably, the operation is responsible for the rescue of at least 23 minor victims residing in the United States, Spain and the United Kingdom, who were being actively abused by the users of the site.
In the Washington, D.C.-metropolitan area, the operation has led to the execution of five search warrants and eight arrests of individuals who both conspired with the administrator of the site and were themselves, users of the website. Two users of the Darknet market committed suicide subsequent to the execution of search warrants.
Amongst the sites users charged are:
- Charles Wunderlich, 34, of Hot Springs, California, was charged in the District of Columbia with conspiracy to distribute child pornography;
- Brian James LaPrath, 34, of San Diego, California, was arrested in the District of Columbia, for international money laundering; and was sentenced to serve 18 months in prison followed by three years of supervised release;
- Ernest Wagner, 70, of Federal Way, Washington, was arrested and charged in the District of Columbia with conspiracy to distribute child pornography;
- Vincent Galarzo, 28, of Glendale, New York, was arrested and charged in the District of Columbia with conspiracy to distribute child pornography;
- Michael Ezeagbor, 22, of Pflugerville, Texas, was arrested and charged in the District of Columbia with conspiracy to distribute child pornography;
- Nicholas Stengel, 45, of Washington, D.C., pleaded guilty to receipt of child pornography and money laundering and was sentenced to serve 15 years in prison followed by a lifetime of supervised release;
- Eryk Mark Chamberlin, 25, of Worcester, Massachusetts, pleaded guilty to possession of child pornography and is pending sentencing;
- Jairo Flores, 30, of Cambridge, Massachusetts, pleaded guilty in the District of Massachusetts to receipt and possession of child pornography and was sentenced to serve five years in prison followed by five years of supervised release;
- Billy Penaloza, 29, of Dorchester, Massachusetts, pleaded guilty in the District of Massachusetts to possession and receipt of child pornography. His sentencing is scheduled for Oct. 22, 2019;
- Michael Armstrong, 35, of Randolph, Massachusetts, pleaded guilty in the District of Massachusetts, to receipt and possession of child pornography. He was sentenced to serve five years in prison followed by five years of supervised release. Restitution will be determined at a future date;
- Al Ramadhanu Soedomo, 28, of Lynn, Massachusetts, pleaded guilty to possession of child pornography and was sentenced in the District of Massachusetts (Boston), to serve 12 months and one day followed by five years of supervised release;
- Phillip Sungmin Hong, 24, of Sharon, Massachusetts, pleaded guilty in the District of Massachusetts (Boston), to receipt and possession of child pornography and is pending sentencing;
- Eliseo Arteaga Jr., 28, of Mesquite, Texas, pleaded guilty in the Northern District of Texas to possession of prepubescent child pornography. He is pending sentencing;
- Richard Nikolai Gratkowski, 40, of San Antonio, Texas, a former HSI special agent, was arrested in the Western District of Texas. Gratkowski pleaded guilty to the indictment charging one count of receipt of child pornography and one count of access with intent to view child pornography. Gratkowski was sentenced to serve 70 months in prison followed by 10 years of supervised release, and ordered to pay $35,000 in restitution to seven victims and a $10,000 assessment;
- Paul Casey Whipple, 35, of Hondo, Texas, a U.S. Border Patrol Agent, was arrested in the Western District of Texas, on charges of sexual exploitation of children/minors, production, distribution, and possession of child pornography. Whipple remains in custody awaiting trial in San Antonio;
- Michael Lawson, 36, of Midland, Georgia, was arrested in the Middle District of Georgia on charges of attempted sexual exploitation of children and possession of child pornography. He was sentenced to serve 121 months in prison followed by 10 years of supervised release following his plea to a superseding information charging him with one count of receipt of child pornography;
- Kevin Christopher Eagan, 39, of Brookhaven, Georgia, pleaded guilty to possession of child pornography in the Northern District of Georgia;
- Casey Santioius Head, 37, of Griffin, Georgia, was indicted in the Northern District of Georgia for distribution, receipt, and possession of child pornography;
- Andrew C. Chu, 28, of Garwood, New Jersey, was arrested and charged with receipt of child pornography. Those charges remain pending;
- Nader Hamdi Ahmed, 29 of Jersey City, New Jersey, was arrested in the District of New Jersey, for sexual exploitation or other abuse of children. Ahmed pleaded guilty to an information charging him with one count of distribution of child pornography. He is scheduled to be sentenced Oct. 1, 2019;
- Jeffrey Lee Harris, 32, of Pickens, South Carolina, pleaded guilty in the District of South Carolina for producing, distributing, and possessing child pornography;
- Laine Ormand Clark Jr., 27, of Conway, South Carolina, was arrested and charged in U.S. District Court in South Carolina Division for sexual possession of child pornography;
- Jack R. Dove III, 37, of Lakeland, Florida, was arrested in the District of Florida for knowingly receiving and possessing visual depictions of minors engaged in sexually explicit conduct;
- Michael Matthew White, 39, of Miami Beach, Florida, was arrested in the Southern District of Florida for coercion and enticement;
- Nikolas Bennion Bradshaw, 24, of Bountiful, Utah, was arrested in the State of Utah, and charged with five counts of sexual exploitation of a minor, and was sentenced to time served with 91 days in jail followed by probation;
- Michael Don Gibbs, 37, of Holladay, Utah, was charged in the District of Utah with receipt of child pornography and possession of child pornography;
- Ammar Atef H. Alahdali, 22, of Arlington, Virginia, pleaded guilty in the Eastern District of Virginia to receipt of child pornography and was sentenced to serve five years in prison and ordered to pay $3,000 in restitution;
- Mark Lindsay Rohrer, 38, of West Hartford, Connecticut, pleaded guilty in the District of Connecticut to receipt of child pornography and was sentenced to serve 60 months in prison followed by five years of supervised release;
- Eugene Edward Jung, 47, of San Francisco, California, was indicted in the Northern District of California on possession of child pornography and receipt of child pornography;
- James Daosaeng, 25, of Springdale, Arkansas, pleaded guilty to possession of child pornography and was sentenced in the Western District of Arkansas (Fayetteville) to serve 97 months in prison followed by 20 years of supervised release;
- Alex Daniel Paxton, 30, of Columbus, Ohio, was arrested and indicted in Franklin County Ohio Court of Common Pleas for pandering sexually oriented matter involving a minor;
- Don Edward Pannell, 32, of Harvey, Louisiana, pleaded guilty in the Eastern District of Louisiana for receipt of child pornography. He is pending sentencing;
- Ryan Thomas Carver, 29, of Huntsville, Alabama, was arrested and charged under Alabama State Law. He was charged federally in the Northern District of Alabama with possession of child pornography. His case is pending in Huntsville, Alabama;
- Alexander Buckley, 28, of the United Kingdom, pleaded guilty to 10 offences in the UK of possession and distribution of indecent images of children, possession of extreme and prohibited images and possession of a class A drug. He was sentenced to serve 40 months in prison for the distribution of indecent images and possession of class A drugs. Buckley is also subject to an indefinite Sexual Harm Prevention Order;
- Kyle Fox, 26, of the United Kingdom, pleaded guilty to 22 counts including rape, sexual assault, and sharing indecent images, and was sentenced to serve 22 years in prison; and
- Mohammed Almaker, 26, of Fort Collins, Colorado, was arrested in the Kingdom of Saudi Arabia (KSA), charged with KSA Law involving the endangerment of children. He is awaiting judicial proceedings in furtherance of criminal charges.
A forfeiture complaint was also unsealed today. The complaint alleges that law enforcement was able to trace payments of bitcoin to the Darknet site by following the flow of funds on the blockchain. The virtual currency accounts identified in the complaint were allegedly used by 24 individuals in five countries to fund the website and promote the exploitation of children. The forfeiture complaint seeks to recover these funds and, ultimately through the restoration process, return the illicit funds to victims of the crime.The charges in the indictment are merely allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The international investigations were led by the IRS-CI, HSI and the NCA. The Korean National Police of the Republic of Korea, the National Crime Agency of the United Kingdom and the German Federal Criminal Police (the Bundeskriminalamt), provided assistance and coordinated with their parallel investigations. The Department of Justice’s Office of International Affairs of the Criminal Division provided significant assistance.
The cases are being handled by Assistant U.S. Attorneys Zia M. Faruqui, Lindsay Suttenberg, and Youli Lee, Paralegal Specialists Brian Rickers and Diane Brashears, Legal Assistant Jessica McCormick, and Records Examiner Chad Byron of the U.S. Attorney’s Office for the District of Columbia and Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section. Additional assistance has been provided by Deputy Chief Keith Becker and Trial Attorney James E. Burke IV of the Criminal Division’s Child Exploitation and Obscenity Section, and former U.S. Attorney’s Office Paralegal Specialists Toni Anne Donato and Ty Eaton.
****View press conference here.
South Korean National and Hundreds of Others Charged Worldwide in the Takedown of the Largest Darknet Child Pornography Website, Which was Funded by BitcoinRead the Press Release
Jong Woo Son, 23, a South Korean national, was indicted by a federal grand jury in the District of Columbia for his operation of Welcome To Video, the largest child sexual exploitation market by volume of content. The nine-count indictment was unsealed today along with a parallel civil forfeiture action. Son has also been charged and convicted in South Korea and is currently in custody serving his sentence in South Korea. An additional 337 site users residing in Alabama, Arkansas, California, Connecticut, Florida, Georgia, Kansas, Louisiana, Maryland, Massachusetts, Nebraska, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Texas, Utah, Virginia, Washington State and Washington, D.C. as well as the United Kingdom, South Korea, Germany, Saudi Arabia, the United Arab Emirates, the Czech Republic, Canada, Ireland, Spain, Brazil and Australia have been arrested and charged.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jessie K. Liu for the District of Columbia, Chief Don Fort of IRS Criminal Investigation (IRS-CI) and Acting Executive Associate Director Alysa Erichs of U.S. Immigration and Customs Enforcement (ICE)’s Homeland Security Investigations (HSI), made the announcement.
“Darknet sites that profit from the sexual exploitation of children are among the most vile and reprehensible forms of criminal behavior,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “This Administration will not allow child predators to use lawless online spaces as a shield. Today’s announcement demonstrates that the Department of Justice remains firmly committed to working closely with our partners in South Korea and around the world to rescue child victims and bring to justice the perpetrators of these abhorrent crimes.”
“Children around the world are safer because of the actions taken by U.S. and foreign law enforcement to prosecute this case and recover funds for victims,” said U.S. Attorney Jessie K. Liu. “We will continue to pursue such criminals on and off the darknet in the United States and abroad, to ensure they receive the punishment their terrible crimes deserve.”
“Through the sophisticated tracing of bitcoin transactions, IRS-CI special agents were able to determine the location of the Darknet server, identify the administrator of the website and ultimately track down the website server’s physical location in South Korea,” said IRS-CI Chief Don Fort. “This large-scale criminal enterprise that endangered the safety of children around the world is no more. Regardless of the illicit scheme, and whether the proceeds are virtual or tangible, we will continue to work with our federal and international partners to track down these disgusting organizations and bring them to justice.”
“Children are our most vulnerable population, and crimes such as these are unthinkable,” said HSI Acting Executive Associate Director Alysa Erichs. “Sadly, advances in technology have enabled child predators to hide behind the dark web and cryptocurrency to further their criminal activity. However, today’s indictment sends a strong message to criminals that no matter how sophisticated the technology or how widespread the network, child exploitation will not be tolerated in the United States. Our entire justice system will stop at nothing to prevent these heinous crimes, safeguard our children, and bring justice to all.”
According to the indictment, on March 5, 2018, agents from the IRS-CI, HSI, National Crime Agency in the United Kingdom, and Korean National Police in South Korea arrested Son and seized the server that he used to operate a Darknet market that exclusively advertised child sexual exploitation videos available for download by members of the site. The operation resulted in the seizure of approximately eight terabytes of child sexual exploitation videos, which is one of the largest seizures of its kind. The images, which are currently being analyzed by the National Center for Missing and Exploited Children (NCMEC), contained over 250,000 unique videos, and 45 percent of the videos currently analyzed contain new images that have not been previously known to exist.
Welcome To Video offered these videos for sale using the cryptocurrency bitcoin. Typically, sites of this kind give users a forum to trade in these depictions. This Darknet website is among the first of its kind to monetize child exploitation videos using bitcoin. In fact, the site itself boasted over one million downloads of child exploitation videos by users. Each user received a unique bitcoin address when the user created an account on the website. An analysis of the server revealed that the website had more than one million bitcoin addresses, signifying that the website had capacity for at least one million users.
The agencies have shared data from the seized server with law enforcement around the world to assist in identifying and prosecuting customers of the site. This has resulted in leads sent to 38 countries and yielded arrests of 337 subjects around the world. The operation has resulted in searches of residences and businesses of approximately 92 individuals in the United States. Notably, the operation is responsible for the rescue of at least 23 minor victims residing in the United States, Spain and the United Kingdom, who were being actively abused by the users of the site.
In the Washington, D.C.-metropolitan area, the operation has led to the execution of five search warrants and eight arrests of individuals who both conspired with the administrator of the site and were themselves, users of the website. Two users of the Darknet market committed suicide subsequent to the execution of search warrants.
Amongst the sites users charged are:
- Charles Wunderlich, 34, of Hot Springs, California, was charged in the District of Columbia with conspiracy to distribute child pornography;
- Brian James LaPrath, 34, of San Diego, California, was arrested in the District of Columbia, for international money laundering; and was sentenced to serve 18 months in prison followed by three years of supervised release;
- Ernest Wagner, 70, of Federal Way, Washington, was arrested and charged in the District of Columbia with conspiracy to distribute child pornography;
- Vincent Galarzo, 28, of Glendale, New York, was arrested and charged in the District of Columbia with conspiracy to distribute child pornography;
- Michael Ezeagbor, 22, of Pflugerville, Texas, was arrested and charged in the District of Columbia with conspiracy to distribute child pornography;
- Nicholas Stengel, 45, of Washington, D.C., pleaded guilty to receipt of child pornography and money laundering and was sentenced to serve 15 years in prison followed by a lifetime of supervised release;
- Eryk Mark Chamberlin, 25, of Worcester, Massachusetts, pleaded guilty to possession of child pornography and is pending sentencing;
- Jairo Flores, 30, of Cambridge, Massachusetts, pleaded guilty in the District of Massachusetts to receipt and possession of child pornography and was sentenced to serve five years in prison followed by five years of supervised release;
- Billy Penaloza, 29, of Dorchester, Massachusetts, pleaded guilty in the District of Massachusetts to possession and receipt of child pornography. His sentencing is scheduled for Oct. 22, 2019;
- Michael Armstrong, 35, of Randolph, Massachusetts, pleaded guilty in the District of Massachusetts, to receipt and possession of child pornography. He was sentenced to serve five years in prison followed by five years of supervised release. Restitution will be determined at a future date;
- Al Ramadhanu Soedomo, 28, of Lynn, Massachusetts, pleaded guilty to possession of child pornography and was sentenced in the District of Massachusetts (Boston), to serve 12 months and one day followed by five years of supervised release;
- Phillip Sungmin Hong, 24, of Sharon, Massachusetts, pleaded guilty in the District of Massachusetts (Boston), to receipt and possession of child pornography and is pending sentencing;
- Eliseo Arteaga Jr., 28, of Mesquite, Texas, pleaded guilty in the Northern District of Texas to possession of prepubescent child pornography. He is pending sentencing;
- Richard Nikolai Gratkowski, 40, of San Antonio, Texas, a former HSI special agent, was arrested in the Western District of Texas. Gratkowski pleaded guilty to the indictment charging one count of receipt of child pornography and one count of access with intent to view child pornography. Gratkowski was sentenced to serve 70 months in prison followed by 10 years of supervised release, and ordered to pay $35,000 in restitution to seven victims and a $10,000 assessment;
- Paul Casey Whipple, 35, of Hondo, Texas, a U.S. Border Patrol Agent, was arrested in the Western District of Texas, on charges of sexual exploitation of children/minors, production, distribution, and possession of child pornography. Whipple remains in custody awaiting trial in San Antonio;
- Michael Lawson, 36, of Midland, Georgia, was arrested in the Middle District of Georgia on charges of attempted sexual exploitation of children and possession of child pornography. He was sentenced to serve 121 months in prison followed by 10 years of supervised release following his plea to a superseding information charging him with one count of receipt of child pornography;
- Kevin Christopher Eagan, 39, of Brookhaven, Georgia, pleaded guilty to possession of child pornography in the Northern District of Georgia;
- Casey Santioius Head, 37, of Griffin, Georgia, was indicted in the Northern District of Georgia for distribution, receipt, and possession of child pornography;
- Andrew C. Chu, 28, of Garwood, New Jersey, was arrested and charged with receipt of child pornography. Those charges remain pending;
- Nader Hamdi Ahmed, 29 of Jersey City, New Jersey, was arrested in the District of New Jersey, for sexual exploitation or other abuse of children. Ahmed pleaded guilty to an information charging him with one count of distribution of child pornography. He is scheduled to be sentenced Oct. 1, 2019;
- Jeffrey Lee Harris, 32, of Pickens, South Carolina, pleaded guilty in the District of South Carolina for producing, distributing, and possessing child pornography;
- Laine Ormand Clark Jr., 27, of Conway, South Carolina, was arrested and charged in U.S. District Court in South Carolina Division for sexual possession of child pornography;
- Jack R. Dove III, 38, of Lakeland, Florida, was arrested in the Middle District of Florida for knowingly receiving and possessing visual depictions of minors engaged in sexually explicit conduct;
- Michael Matthew White, 39, of Miami Beach, Florida, was arrested in the Southern District of Florida for coercion and enticement;
- Nikolas Bennion Bradshaw, 24, of Bountiful, Utah, was arrested in the State of Utah, and charged with five counts of sexual exploitation of a minor, and was sentenced to time served with 91 days in jail followed by probation;
- Michael Don Gibbs, 37, of Holladay, Utah, was charged in the District of Utah with receipt of child pornography and possession of child pornography;
- Ammar Atef H. Alahdali, 22, of Arlington, Virginia, pleaded guilty in the Eastern District of Virginia to receipt of child pornography and was sentenced to serve five years in prison and ordered to pay $3,000 in restitution;
- Mark Lindsay Rohrer, 38, of West Hartford, Connecticut, pleaded guilty in the District of Connecticut to receipt of child pornography and was sentenced to serve 60 months in prison followed by five years of supervised release;
- Eugene Edward Jung, 47, of San Francisco, California, was indicted in the Northern District of California on possession of child pornography and receipt of child pornography;
- James Daosaeng, 25, of Springdale, Arkansas, pleaded guilty to possession of child pornography and was sentenced in the Western District of Arkansas (Fayetteville) to serve 97 months in prison followed by 20 years of supervised release;
- Alex Daniel Paxton, 30, of Columbus, Ohio, was arrested and indicted in Franklin County Ohio Court of Common Pleas for pandering sexually oriented matter involving a minor;
- Don Edward Pannell, 32, of Harvey, Louisiana, pleaded guilty in the Eastern District of Louisiana for receipt of child pornography. He is pending sentencing;
- Ryan Thomas Carver, 29, of Huntsville, Alabama, was arrested and charged under Alabama State Law. He was charged federally in the Northern District of Alabama with possession of child pornography. His case is pending in Huntsville, Alabama;
- Alexander Buckley, 28, of the United Kingdom, pleaded guilty to 10 offences in the UK of possession and distribution of indecent images of children, possession of extreme and prohibited images and possession of a class A drug. He was sentenced to serve 40 months in prison for the distribution of indecent images and possession of class A drugs. Buckley is also subject to an indefinite Sexual Harm Prevention Order;
- Kyle Fox, 26, of the United Kingdom, pleaded guilty to 22 counts including rape, sexual assault, and sharing indecent images, and was sentenced to serve 22 years in prison; and
- Mohammed Almaker, 26, of Fort Collins, Colorado, was arrested in the Kingdom of Saudi Arabia (KSA), charged with KSA Law involving the endangerment of children. He is awaiting judicial proceedings in furtherance of criminal charges.
A forfeiture complaint was also unsealed today. The complaint alleges that law enforcement was able to trace payments of bitcoin to the Darknet site by following the flow of funds on the blockchain. The virtual currency accounts identified in the complaint were allegedly used by 24 individuals in five countries to fund the website and promote the exploitation of children. The forfeiture complaint seeks to recover these funds and, ultimately through the restoration process, return the illicit funds to victims of the crime.
The charges in the indictment are merely allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The international investigations were led by the IRS-CI, HSI and the NCA. The Korean National Police of the Republic of Korea, the National Crime Agency of the United Kingdom and the German Federal Criminal Police (the Bundeskriminalamt), provided assistance and coordinated with their parallel investigations. The Department of Justice’s Office of International Affairs of the Criminal Division provided significant assistance.
The cases are being handled by Assistant U.S. Attorneys Zia M. Faruqui, Lindsay Suttenberg, and Youli Lee, Paralegal Specialists Brian Rickers and Diane Brashears, Legal Assistant Jessica McCormick, and Records Examiner Chad Byron of the U.S. Attorney’s Office for the District of Columbia and Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section. Additional assistance has been provided by Deputy Chief Keith Becker and Trial Attorney James E. Burke IV of the Criminal Division’s Child Exploitation and Obscenity Section, and former U.S. Attorney’s Office Paralegal Specialists Toni Anne Donato and Ty Eaton.
- Charles Wunderlich, 34, of Hot Springs, California, was charged in the District of Columbia with conspiracy to distribute child pornography;
South Korean National and Hundreds of Others Charged Worldwide in the Takedown of the Largest Darknet Child Pornography Website, Which Was Funded by BitcoinRead the Press Release
Dozens of Minor Victims who were Being Actively Abused by Users of Site Rescued
WASHINGTON, D.C. – Jong Woo Son, 23, a South Korean national, was indicted by a federal grand jury in the District of Columbia for his operation of Welcome To Video, the largest child sexual exploitation market by volume of content. The nine-count indictment was unsealed today along with a parallel civil forfeiture action. Son has also been charged and convicted in South Korea and is currently in custody serving his sentence in South Korea. An additional 337 site users residing in Alabama, Arkansas, California, Connecticut, Florida, Georgia, Kansas, Louisiana, Maryland, Massachusetts, Nebraska, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Texas, Utah, Virginia, Washington State and Washington, D.C. as well as the United Kingdom, South Korea, Germany, Saudi Arabia, the United Arab Emirates, the Czech Republic, Canada, Ireland, Spain, Brazil and Australia have been arrested and charged.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jessie K. Liu for the District of Columbia, Chief Don Fort of IRS Criminal Investigation (IRS-CI) and Acting Executive Associate Director Alysa Erichs of U.S. Immigration and Customs Enforcement (ICE)’s Homeland Security Investigations (HSI), made the announcement.
“Darknet sites that profit from the sexual exploitation of children are among the most vile and reprehensible forms of criminal behavior,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “This Administration will not allow child predators to use lawless online spaces as a shield. Today’s announcement demonstrates that the Department of Justice remains firmly committed to working closely with our partners in South Korea and around the world to rescue child victims and bring to justice the perpetrators of these abhorrent crimes.”
“Children around the world are safer because of the actions taken by U.S. and foreign law enforcement to prosecute this case and recover funds for victims,” said U.S. Attorney Jessie K. Liu. “We will continue to pursue such criminals on and off the darknet in the United States and abroad, to ensure they receive the punishment their terrible crimes deserve.”
“Through the sophisticated tracing of bitcoin transactions, IRS-CI special agents were able to determine the location of the Darknet server, identify the administrator of the website and ultimately track down the website server’s physical location in South Korea,” said IRS-CI Chief Don Fort. “This largescale criminal enterprise that endangered the safety of children around the world is no more. Regardless of the illicit scheme, and whether the proceeds are virtual or tangible, we will continue to work with our federal and international partners to track down these disgusting organizations and bring them to justice.”
“Children are our most vulnerable population, and crimes such as these are unthinkable,” said HSI Acting Executive Associate Director Alysa Erichs. “Sadly, advances in technology have enabled child predators to hide behind the dark web and cryptocurrency to further their criminal activity. However, today’s indictment sends a strong message to criminals that no matter how sophisticated the technology or how widespread the network, child exploitation will not be tolerated in the United States. Our entire justice system will stop at nothing to prevent these heinous crimes, safeguard our children, and bring justice to all.”
According to the indictment, on March 5, 2018, agents from the IRS-CI, HSI, National Crime Agency in the United Kingdom, and Korean National Police in South Korea arrested Son and seized the server that he used to operate a Darknet market that exclusively advertised child sexual exploitation videos available for download by members of the site. The operation resulted in the seizure of approximately eight terabytes of child sexual exploitation videos, which is one of the largest seizures of its kind. The images, which are currently being analyzed by the National Center for Missing and Exploited Children (NCMEC), contained over 250,000 unique videos, and 45 percent of the videos currently analyzed contain new images that have not been previously known to exist.
Welcome To Video offered these videos for sale using the cryptocurrency bitcoin. Typically, sites of this kind give users a forum to trade in these depictions. This Darknet website is among the first of its kind to monetize child exploitation videos using bitcoin. In fact, the site itself boasted over one million downloads of child exploitation videos by users. Each user received a unique bitcoin address when the user created an account on the website. An analysis of the server revealed that the website had more than one million bitcoin addresses, signifying that the website had capacity for at least one million users.
The agencies have shared data from the seized server with law enforcement around the world to assist in identifying and prosecuting customers of the site. This has resulted in leads sent to 38 countries and yielded arrests of 337 subjects around the world. The operation has resulted in searches of residences and businesses of approximately 92 individuals in the United States. Notably, the operation is responsible for the rescue of at least 23 minor victims residing in the United States, Spain and the United Kingdom, who were being actively abused by the users of the site.
In the Washington, D.C.-metropolitan area, the operation has led to the execution of five search warrants and eight arrests of individuals who both conspired with the administrator of the site and were themselves, users of the website. Two users of the Darknet market committed suicide subsequent to the execution of search warrants.Among the sites users charged are:
• Andrew C. Chu, 28, of Garwood, New Jersey, was arrested and charged with receipt of child pornography. Those charges remain pending; • Nader Hamdi Ahmed, 29 of Jersey City, New Jersey, was arrested in the District of New Jersey, for sexual exploitation or other abuse of children. Ahmed pleaded guilty to an information charging him with one count of distribution of child pornography. He was sentenced Oct. 1, 2019, to 78 months in prison; • Charles Wunderlich, 34, of Hot Springs, California, was charged in the District of Columbia with conspiracy to distribute child pornography; • Brian James LaPrath, 34, of San Diego, California, was arrested in the District of Columbia, for international money laundering; and was sentenced to serve 18 months in prison followed by three years of supervised release; • Ernest Wagner, 70, of Federal Way, Washington, was arrested and charged in the District of Columbia with conspiracy to distribute child pornography; • Vincent Galarzo, 28, of Glendale, New York, was arrested and charged in the District of Columbia with conspiracy to distribute child pornography; • Michael Ezeagbor, 22, of Pflugerville, Texas, was arrested and charged in the District of Columbia with conspiracy to distribute child pornography; • Nicholas Stengel, 45, of Washington, D.C., pleaded guilty to receipt of child pornography and money laundering and was sentenced to serve 15 years in prison followed by a lifetime of supervised release; • Eryk Mark Chamberlin, 25, of Worcester, Massachusetts, pleaded guilty to possession of child pornography and is pending sentencing; • Jairo Flores, 30, of Cambridge, Massachusetts, pleaded guilty in the District of Massachusetts to receipt and possession of child pornography and was sentenced to serve five years in prison followed by five years of supervised release; • Billy Penaloza, 29, of Dorchester, Massachusetts, pleaded guilty in the District of Massachusetts to possession and receipt of child pornography. His sentencing is scheduled for Oct. 22, 2019; • Michael Armstrong, 35, of Randolph, Massachusetts, pleaded guilty in the District of Massachusetts, to receipt and possession of child pornography. He was sentenced to serve five years in prison followed by five years of supervised release. Restitution will be determined at a future date; • Al Ramadhanu Soedomo, 28, of Lynn, Massachusetts, pleaded guilty to possession of child pornography and was sentenced in the District of Massachusetts (Boston), to serve 12 months and one day followed by five years of supervised release; • Phillip Sungmin Hong, 24, of Sharon, Massachusetts, pleaded guilty in the District of Massachusetts (Boston), to receipt and possession of child pornography and is pending sentencing; • Eliseo Arteaga Jr., 28, of Mesquite, Texas, pleaded guilty in the Northern District of Texas to possession of prepubescent child pornography. He is pending sentencing; • Richard Nikolai Gratkowski, 40, of San Antonio, Texas, a former HSI special agent, was arrested in the Western District of Texas. Gratkowski pleaded guilty to the indictment charging one count of receipt of child pornography and one count of access with intent to view child pornography. Gratkowski was sentenced to serve 70 months in prison followed by 10 years of supervised release, and ordered to pay $35,000 in restitution to seven victims and a $10,000 assessment; • Paul Casey Whipple, 35, of Hondo, Texas, a U.S. Border Patrol Agent, was arrested in the Western District of Texas, on charges of sexual exploitation of children/minors, production, distribution, and possession of child pornography. Whipple remains in custody awaiting trial in San Antonio; • Michael Lawson, 36, of Midland, Georgia, was arrested in the Middle District of Georgia on charges of attempted sexual exploitation of children and possession of child pornography. He was sentenced to serve 121 months in prison followed by 10 years of supervised release following his plea to a superseding information charging him with one count of receipt of child pornography; • Kevin Christopher Eagan, 39, of Brookhaven, Georgia, pleaded guilty to possession of child pornography in the Northern District of Georgia; • Casey Santioius Head, 37, of Griffin, Georgia, was indicted in the Northern District of Georgia for distribution, receipt, and possession of child pornography; • Jeffrey Lee Harris, 32, of Pickens, South Carolina, pleaded guilty in the District of South Carolina for producing, distributing, and possessing child pornography; • Laine Ormand Clark Jr., 27, of Conway, South Carolina, was arrested and charged in U.S. District Court in South Carolina Division for sexual possession of child pornography; • Jack R. Dove III, 38, of Lakeland, Florida, was arrested in the Middle District of Florida for knowingly receiving and possessing visual depictions of minors engaged in sexually explicit conduct; • Michael Matthew White, 39, of Miami Beach, Florida, was arrested in the Southern District of Florida for coercion and enticement; • Nikolas Bennion Bradshaw, 24, of Bountiful, Utah, was arrested in the State of Utah, and charged with five counts of sexual exploitation of a minor, and was sentenced to time served with 91 days in jail followed by probation; • Michael Don Gibbs, 37, of Holladay, Utah, was charged in the District of Utah with receipt of child pornography and possession of child pornography; • Ammar Atef H. Alahdali, 22, of Arlington, Virginia, pleaded guilty in the Eastern District of Virginia to receipt of child pornography and was sentenced to serve five years in prison and ordered to pay $3,000 in restitution; • Mark Lindsay Rohrer, 38, of West Hartford, Connecticut, pleaded guilty in the District of Connecticut to receipt of child pornography and was sentenced to serve 60 months in prison followed by five years of supervised release; • Eugene Edward Jung, 47, of San Francisco, California, was indicted in the Northern District of California on possession of child pornography and receipt of child pornography; • James Daosaeng, 25, of Springdale, Arkansas, pleaded guilty to possession of child pornography and was sentenced in the Western District of Arkansas (Fayetteville) to serve 97 months in prison followed by 20 years of supervised release; • Alex Daniel Paxton, 30, of Columbus, Ohio, was arrested and indicted in Franklin County Ohio Court of Common Pleas for pandering sexually oriented matter involving a minor; • Don Edward Pannell, 32, of Harvey, Louisiana, pleaded guilty in the Eastern District of Louisiana for receipt of child pornography. He is pending sentencing; • Ryan Thomas Carver, 29, of Huntsville, Alabama, was arrested and charged under Alabama State Law. He was charged federally in the Northern District of Alabama with possession of child pornography. His case is pending in Huntsville, Alabama; • Andrew Buckley, 28, of the United Kingdom, pleaded guilty to 10 offences in the UK of possession and distribution of indecent images of children, possession of extreme and prohibited images and possession of a class A drug. He was sentenced to serve 40 months in prison for the distribution of indecent images and possession of class A drugs. Buckley is also subject to an indefinite Sexual Harm Prevention Order; • Kyle Fox, 26, of the United Kingdom, pleaded guilty to 22 counts including rape, sexual assault, and sharing indecent images, and was sentenced to serve 22 years in prison; and
• Mohammed Almaker, 26, of Fort Collins, Colorado, was arrested in the Kingdom of Saudi Arabia (KSA), charged with KSA Law involving the endangerment of children. He is awaiting judicial proceedings in furtherance of criminal charges.A forfeiture complaint was also unsealed today. The complaint alleges that law enforcement was able to trace payments of bitcoin to the Darknet site by following the flow of funds on the blockchain. The virtual currency accounts identified in the complaint were allegedly used by 24 individuals in five countries to fund the website and promote the exploitation of children. The forfeiture complaint seeks to recover these funds and, ultimately through the restoration process, return the illicit funds to victims of the crime.
The charges in the indictment are merely allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The international investigations were led by the IRS-CI, HSI and the NCA. The Korean National Police of the Republic of Korea, the National Crime Agency of the United Kingdom and the German Federal Criminal Police (the Bundeskriminalamt), provided assistance and coordinated with their parallel investigations. The Department of Justice’s Office of International Affairs of the Criminal Division provided significant assistance.
The cases are being handled by Assistant U.S. Attorneys Zia M. Faruqui, Lindsay Suttenberg, and Youli Lee, Paralegal Specialists Brian Rickers and Diane Brashears, Legal Assistant Jessica McCormick, and Records Examiner Chad Byron of the U.S. Attorney’s Office for the District of Columbia and Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section. Additional assistance has been provided by Deputy Chief Keith Becker and Trial Attorney James E. Burke IV of the Criminal Division’s Child Exploitation and Obscenity Section, and former U.S. Attorney’s Office Paralegal Specialists Toni Anne Donato and Ty Eaton.
Sioux Falls Woman Charged with Bank Fraud and Theft or Receipt of Stolen Mail MatterRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, woman has been indicted by a federal grand jury for Bank Fraud and Theft or Receipt of Stolen Mail Matter.
Tessa Crawford, age 23, was indicted on October 8, 2019. She appeared before U.S. Magistrate Judge Mark A. Moreno on October 15, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 30 years in federal prison and/or a $250,000 fine, 5 years of supervised release, and up to $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that beginning on or about November 8, 2017, and continuing through on or about February 14, 2018, Crawford, along with others, knowingly executed and attempted to execute a scheme and artifice to defraud several banks and to obtain money, funds, credits, assets, securities, and other property owned by, and under the custody and control of, the banks. More specifically, Crawford altered checks drawn on the accounts of various individuals and then negotiated said checks for her own purpose and benefit. Crawford also recruited others to negotiate the checks on her behalf.
The Indictment also alleges that Crawford stole, took and abstracted, and attempted to steal, take and abstract letters, postal cards, packages, bags, and mail out of mail boxes, mail receptacles, and other authorized mail depositories, and embezzled and destroyed such letters, postal cards, packages, bags, and mail and articles and things contained therein, namely envelopes containing multiple checks that did not belong to her.
The charges are merely accusations and Crawford is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Postal Inspection Service. Assistant U.S. Attorney Ann M. Hoffman is prosecuting the case.
Crawford was released on bond pending trial. A trial date has not been set.
Sioux Falls Man Indicted on Child Pornography ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Transportation of Child Pornography and Distribution and Receipt of Child Pornography.
Enoch Fields, age 38, was indicted on September 4, 2019. He appeared before U.S. Magistrate Judge Veronica L. Duffy on October 11, 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, life of supervised release, and up to $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between October 28, 2018, and March 20, 2019, Fields knowingly transported child pornography using a Google Photos account via the internet.
The Indictment also alleges that between May 31, 2019, and June 18, 2019, Fields also knowingly received and distributed, and attempted to receive and distribute, child pornography that had been mailed, shipped, and transported in or affecting interstate or foreign commerce by any means, including a computer.
The charges are merely accusations and Fields is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Department of Homeland Security. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Fields was released on bond pending trial, which has not been set.
Shelbyville Man Sentenced to 151 Months for Receiving Child PornographyRead the Press Release
FRANKFORT, Ky. – Joseph S. Gable, 63, of Shelbyville, Kentucky, was sentenced to 151 months in federal prison on Wednesday, by United States District Judge Gregory F. Van Tatenhove, for knowingly receiving child pornography.
Gable previously admitted that, in August of 2018, he knowingly received images of child pornography on his computer. A forensic examination of Gable’s computer and electronic storage devices revealed 35,972 still images and 807 videos of child pornography, including some that depicted children under the age of 12 and some that depicted sadistic or masochistic conduct.
Under federal law, Gable must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for life following his release from prison.
“Child pornography and child exploitation cases are some of the most important and impactful cases that law enforcement encounters,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “We, along with our federal, state, and local law enforcement partners, are committed to holding accountable those who manufacture, possess, or receive child pornography. To be clear, receiving child pornography is not a victimless crime. The creation of these images causes untold harm to the children depicted, and their victimization continues each time an image is shared with someone else. The defendant is well deserving of the sentence he received today.
United States Attorney Duncan, Steve Igyarto, Special Agent in Charge, Department of Homeland Security- Homeland Security Investigations (DHS-HSI), and Andy Beshear, Kentucky Attorney General, jointly announced the sentence.
The investigation was conducted by HSI and the Kentucky Office of Attorney General’s Cyber Crimes Branch. The United States was represented by Assistant United States Attorney David Marye.
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Second area man sent to prison for child pornography chargesRead the Press Release
BROWNSVILLE, Texas – A 68-year-old Brownsville man has been ordered to prison following his convictions of distributing and possessing child pornography, announced U.S. Attorney Ryan Patrick. Arnoldo Villagomez pleaded guilty Jan. 4, 2018.
Today, U.S. District Judge Rolando Olvera Jr. sentenced Villagomez to 120 months for the distribution and possession convictions, respectively. The sentences will run concurrently for a total 10-year term of imprisonment. Villagomez was further ordered to pay $263,952.83 in restitution to the known victims and will serve 10 years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender.
In July 2016, authorities learned an as-yet-unidentified individual in Brownsville was involved in distributing child pornography via the internet. The investigation led them to an address in Brownsville where Villagomez resided.
Law enforcement executed a search warrant Nov. 9, 2016, and seized a computer and other digital devices belonging to Villagomez. Forensic analysis later revealed more than 5,000 images and 145 videos of child pornography.
Immigration and Customs Enforcement’s Homeland Security Investigations - Rio Grande Valley Child Exploitation Task Force conducted the investigation.
Assistant U.S. Attorney Ana C. Cano prosecuted the case which was brought as part of Project Safe Childhood(PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Rochester Man Pleads Guilty to Gun ChargeRead 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 Jesus Santiago, 29, of Rochester, NY, pleaded guilty, before U.S. District Judge David G. Larimer, to being a felon-in-possession of a firearm. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Cassie Kocher, who is handling the case, stated that on July 2, 2018, the defendant, in exchange for $1,200, sold a loaded 9mm handgun to an individual working with law enforcement officers. Santiago also admitted to participating in a similar illegal gun sale in May, 2018. In 2016, the defendant was convicted of Attempted Criminal Possession of a Weapon in the Second Degree in Erie County Court, and as a result is legally prohibited from possessing a firearm or ammunition.
The plea is the result of an investigation by the Rochester Police Department, under the direction of Chief La’Ron Singletary, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
Sentencing is scheduled for December 17, 2019, at 3:00 p.m. before Judge Larimer.
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Rapid City Man Charged with Unlawful Possession of a FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man was charged in federal district court with Possession of a Firearm by a Prohibited Person.
Austin Bennett, age 22, was charged on September 10, 2019. Bennett appeared before U.S. Magistrate Judge Daneta Wollmann on October 11, 2019, and pleaded not guilty to the charge. The maximum penalty upon conviction is 10 years in federal prison and/or a $250,000 fine, 3 years supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Bennett, a previously convicted felon who is prohibited from possessing firearms, unlawfully possessing a semi-automatic pistol in July 2019 at Rapid City. The charge is merely an accusation and Bennett is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Rapid City Police Department. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
Bennett was detained pending trial. A trial date has not been set.
Philadelphia Man Sentenced to Nearly 6 Years in Prison for Scheme to Create Fake IDs and Bribe PennDOT OfficialRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Bakary Camara, 32, of Philadelphia, Pennsylvania, was sentenced to 70 months’ incarceration and three years’ supervised release by United States District Judge John R. Padova for his scheme to produce fake Pennsylvania identification documents by bribing a state official. In February 2019, a jury convicted Camara of numerous charges, including conspiracy to unlawfully produce identification documents, bribery of an agent from the Pennsylvania Department of Transportation (PennDOT), misuse of a social security number, and aggravated identity theft.
According to evidence presented at trial, Camara bribed a PennDOT agent with cash payments in exchange for the issuance of driver’s licenses to dozens of foreign nationals who failed to take the required tests and failed to provide proof of residency. Some who received their license through Camara were new to the country, could not speak English, and were unfamiliar with the process of obtaining a driver’s license, while others could not pass the PennDOT knowledge or road tests. In particular, Camara fraudulently used another person’s social security number on proof of residency documents in an attempt to make it appear that two New York residents were residents of Pennsylvania.
Camara’s co-conspirator, the PennDOT agent, entered false information into the PennDOT system stating the individuals passed the required tests and met the residency requirements when they had not. The PennDOT agent then unlawfully issued driver’s licenses to those individuals. The scheme ran from at least April 2014 through May 2015. During that time, Camara unlawfully assisted at least 30 immigrants in obtaining Pennsylvania learner’s permits and driver’s licenses. Camara charged these individuals $300 to $7,000 for each Pennsylvania driver’s license. Camara provided the PennDOT official at least $5,100 in bribes.
“This kind of bribery and fraud is atrocious and an affront to public safety,” said U.S. Attorney McSwain. “Government-issued identification should never be procured by fraud, but to provide fraudulent driver’s licenses to those who should not be operating a vehicle on our roads is incredibly dangerous. We will aggressively investigate and root out this type of unconscionable behavior.”
The case was investigated by the Department of Homeland Security, the Social Security Administration, Office of Inspector General, and Pennsylvania Department of Transportation. The case is being prosecuted by Assistant United States Attorney Tiwana Wright.
Overprescribing Opioids Costs La Jolla Doctor $125,000Read the Press Release
Assistant U.S. Attorney Dylan M. Aste (619) 546-7621
NEWS RELEASE SUMMARY – October 16, 2019
SAN DIEGO – Dr. Roger A. Kasendorf, an osteopathic physician practicing in La Jolla, agreed to pay $125,000 to resolve allegations that he illegally prescribed opioids to his patients. The highly addictive and frequently abused opioids he prescribed included fentanyl, hydromorphone, oxymorphone, and oxycodone.
In response to the Justice Department’s focus on combatting the opioid epidemic, the Drug Enforcement Administration (DEA) and the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) investigated Dr. Kasendorf’s prescribing practices. This investigation arose from data analytics tools which allow the Department of Justice to perform a variety of functions, including identifying statistical outliers, such as which doctors prescribe the highest opioid dosages and which doctors prescribe combinations of opioids and other drugs known to increase the risk of addiction, abuse, and overdose. Based on the investigation, the United States contends that Dr. Kasendorf wrote prescriptions for opioids, including fentanyl, that were not issued for a legitimate medical purpose and while not acting in the usual course of his professional practice in violation the Controlled Substances Act and the False Claims Act.
“Opioid addiction often begins with doctors prescribing excessive amounts of pain killers,” said U.S. Attorney Robert S. Brewer, Jr. “While we continue to prosecute criminals who supply opioids on the dark web, we will also hold doctors accountable when they write illegitimate and unnecessary opioid prescriptions. This settlement demonstrates our commitment to combatting the opioid epidemic on all fronts.”
“Whether you are a patient, a prescriber, a distributor, a manufacturer or a regulator, you play an important role in utilizing opioids correctly and pursuant to the law,” said DEA Special Agent in Charge Karen Flowers. “When a DEA registrant operates outside the law, there are consequences. In this instant, a civil fine.”
The Centers for Disease Control and Prevention (CDC), the American Academy of Pain Medicine, the American Pain Society, state agencies and medical boards, and other medical literature provide guidance on appropriate practices when prescribing opioids. One common tool is for health care providers to determine the Morphine Milligram Equivalent (MME, also commonly referred to as Morphine Equivalent Dose or MED) of prescribed opioids. MME is a uniform scale used to determine daily opioid dosage by using an equivalency factor to calculate a dose of morphine that is equivalent to the prescribed opioid. The CDC recommends primary care clinicians who prescribe opioids for chronic pain outside of active cancer treatment, palliative care, or end‑of‑life care should avoid increasing opioid daily dosage over 90 MME or carefully justify a decision to titrate daily dosage to over 90 MME. Prescribers should also seek to avoid prescribing opioid pain medication in combination with benzodiazepines (e.g., Xanax, Valium, Klonopin) when possible, and should consider whether the benefits outweigh the risks of combining opioids with other depressants (i.e., muscle relaxants and sleep medications).
Report illicit pharmaceutical activities and prescription abuse to DEA at 877-RX-Abuse (877‑792‑2873). Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the U.S. Department of Health and Human Services at 800‑HHS-TIPS (800-447-8477).
This matter was handled by Assistant U.S. Attorney Dylan M. Aste of the U.S. Attorney’s Office for the Southern District of California, with the assistance of agents and investigators from the DEA and HHS‑OIG.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
Online Drug Dealer Sentenced to 15 Years for Distributing Counterfeit Pills Containing Fentanyl that Caused Overdose DeathRead the Press Release
Assistant U. S. Attorney Michael A. Deshong (619) 546-9290
NEWS RELEASE SUMMARY – October 16, 2019
SAN DIEGO – Drug dealer Trevon Antone Lucas was sentenced in federal court today to 15 years in prison for selling the counterfeit oxycodone pills containing deadly fentanyl that caused the overdose death of a La Jolla resident in June of 2018.
Lucas, a resident of Highland, California, pleaded guilty in June to Distribution of Fentanyl Resulting in Death. In his plea, he admitted that he posted online advertisements for the illegal sale of prescription pills. The investigation revealed that Lucas was warned about the danger of the pills he was selling on two separate occasions. In late 2017, Lucas was warned that the pills he was selling were counterfeit and contained fentanyl that was much stronger than oxycodone pills. Then, just two months prior to the victim’s death in mid-2018, Lucas was explicitly warned that counterfeit pills containing fentanyl had caused the overdose of a San Diego resident. Lucas was undeterred and continued to sell the counterfeit pills.
“Trevon Lucas knew the pills he was selling were deadly, but he sold them anyway, showing a remarkable disregard for the safety and well-being of his fellow human beings,” said U.S. Attorney Robert Brewer. “His greed transcended his humanity, and for that he will serve a very long sentence.” Brewer praised prosecutor Michael Deshong and federal, state and local investigators who worked hard to protect the community from the scourge of opioids and achieve justice for the victim and his family.
“Our hearts go out to the victim’s family,” said DEA Special Agent in Charge Karen Flowers. “The potential of their loved one will never be realized; but their hopes, dreams, love and laughter will forever be remembered. Earthly justice is a small measure of what awaits those who prey on the weak out of greed.” Flowers further stated, “We at DEA are proud to be part of bringing justice to families scarred by the scourge of drug trafficking. We are relentless and we will not shy from putting murderers out of business. No matter how hard it is or how long it takes, DEA will always be in pursuit until we can close the case and look at the victim’s loved ones and say, justice is done.”
According to Lucas’ plea agreement, on the evening of June 29, 2018, Lucas met the victim and sold him nine “blues,” a slang term for prescription oxycodone pills, for $240. The “blues” purchased from Lucas were counterfeit and contained deadly fentanyl—the same pills that Lucas had previously been warned about selling. The victim died after consuming the pills. The victim’s mother found him dead in his room the following morning.
Three other individuals, Cenclair Marie Fields, Kevin Vandale Chandler and Donovan Adontas Carter were charged in the same indictment with conspiring with Lucas to distribute prescription hydrocodone pills. All three have since pleaded guilty and been sentenced.
This case is the result of ongoing efforts by the U.S. Attorney’s Office, the San Diego County District Attorney’s Office, and multiple law enforcement agencies to investigate and prosecute the distribution of dangerous illegal drugs that result in overdose deaths.
Many opioid addicts start their addiction with legitimate prescription drugs. Drug cartels, looking to capitalize on the opioid epidemic, are making counterfeit prescription pills using deadly fentanyl. More than 399,000 people died from opioid overdoses, including prescription and illicit opioids, from 1999–2017.
In July 2018, Narcotics Task Force Team 10 was created to address drug overdose deaths in San Diego County. Team 10’s first investigation was the fentanyl drug overdose of this La Jolla man on June 30, 2018. The victim was 37 years old and he left behind his mother and brother. He had recently completed his bachelor’s degree in radiological sciences and was preparing to fly to the East Coast for a specialized program in dosimetry at the time he passed.
DEFENDANTS Case Number 18cr4224-CAB
Trevon Antone Lucas Age: 23 Highland, CA
SUMMARY OF CHARGES
Distribution of Fentanyl Resulting in Death – Title 21, U.S.C., Section 841(b)(1)(C)
Maximum Penalty: Mandatory minimum 20 years in prison up to life
AGENCIES
Drug Enforcement Administration
San Diego Police Department
Homeland Security Investigations
California Department of Health Care Services
Federal Bureau of Investigation
San Diego County District Attorney’s Office
Ohio man admits to drug distributionRead the Press Release
WHEELING, WEST VIRGINIA – Tyler Oliver, of St. Louisville, Ohio, has admitted to a drug distribution charge, U.S. Attorney Bill Powell announced.
Oliver, age 33, pled guilty to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute 3,4-Dichloro-N-[2-(dimethylamino) cyclohexyl]-Nmethylbenzamide (“U47700”).” Oliver admitted to working with another to distribute “U47700,” a synthetic opioid, from June 2016 to December 2016 in Ohio County and elsewhere.
Oliver faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen L. Vogrin is prosecuting the case on behalf of the government. The United States Postal Inspection Service investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Ohio County man sentenced for escapeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Garrett Michael Carrigan, of Wheeling, West Virginia, was sentenced today to 18 months incarceration for escaping federal custody, United States Attorney Bill Powell announced.
Carrigan, age 33, pled guilty to one count of “Escape from Constructive Custody” in September 2019. Carrigan, who was incarcerated for a previous child pornography case in the Northern District of West Virginia, escaped when traveling from a federal institution to a residential reentry center in Clarksburg in February 2019.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The United States Marshals Service investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Officers Seize 144 Pounds of Meth from KC Man Charged with Drug TraffickingRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man has been charged in federal court with drug trafficking after investigators seized 144 pounds of methamphetamine hidden in automobile wheels inside his shed.
Jorge A. Rodriguez-Gonzalez, 38, was charged in a criminal complaint filed in the U.S. District Court in Kansas City on Tuesday, Oct. 15.
The federal criminal complaint alleges that Rodriguez-Gonzalez possessed 500 grams or more of methamphetamine with the intent to distribute. Rodriguez-Gonzalez remains in federal custody pending a detention hearing, which has not yet been scheduled.
According to an affidavit filed in support of the complaint, a confidential source told Independence, Missouri, police detectives that he/she purchased a minimum of one kilogram of methamphetamine from Rodriguez-Gonzalez at least five days per week. The confidential source engaged in a controlled buy of one kilogram of methamphetamine from Rodriguez-Gonzalez on Thursday, Oct. 10. When Rodriguez-Gonzalez arrived at the arranged meeting location with his wife and two children (a 6-year-old girl and a 3-year-old boy), he was arrested. Officers seized a Glock handgun from a purse inside the vehicle. A police canine alerted to the presence of illegal drugs in the vehicle behind what appeared to be hidden compartments, the affidavit says. The vehicle was towed pending the execution of a search warrant.
On Friday, Oct. 11, law enforcement officers executed a search warrant at Rodriguez-Gonzalez’s residence. They seized an H&R Pardner Pump 20-gauge shotgun, a TGI Knox 7.62x39-caliber AK-style rifle, a bag that contained 471 grams of marijuana, what appeared to be a drug ledger, and cash from the residence.
Inside a detached shed, officers found a set of four Toyota wheels and tires. Because the tires seemed extremely heavy, the affidavit says, detectives cut one open and found a metal compartment attached to the inside of the wheel. The metal compartment was then cut open and found to contain methamphetamine.
Each wheel and tire was dismantled by investigators, who found methamphetamine packaged in an identical manner inside each of the four tires. Investigators found six packages of methamphetamine, each of which weighed approximately six pounds, inside each tire, for a total weight of 144 pounds of methamphetamine removed from the four tires.
During the execution of the search warrant, a police canine also alerted to the presence of illegal drugs in a Toyota Tundra and a GMC Sierra that were parked at the residence. The vehicles were towed and secured by law enforcement until search warrants are obtained.
The charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Special Assistant U.S. Attorney Mary Kate Butterfield and Assistant U.S. Attorney Emily A. Morgan. It was investigated by the Independence, Mo., Police Department, the Jackson County Drug Task Force, and the Kansas City, Mo., Police Department.
Newport Man Pleads Guilty to Theft of a FirearmRead the Press Release
Bangor, Maine: A Newport man pleaded guilty today in federal court in Bangor to stealing a firearm from a federally licensed firearms dealer, U.S. Attorney Halsey B. Frank announced.
According to court records, Adam Shawley, 33, entered the shop of a licensed dealer in Newport, went behind the counter, and stole at least one firearm. The dealer later received both text messages and phone calls from Shawley acknowledging that he had stolen firearms from the shop.
Shawley faces up to 10 years imprisonment and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The Newport Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
New York Man Sentenced to Prison for Conspiring to Distribute Crack, Heroin and FentanylRead the Press Release
Bangor, Maine: A Rochester, New York man was sentenced today in federal court in Bangor for conspiring to distribute cocaine base, heroin and fentanyl, U.S. Attorney Halsey B. Frank announced.
U.S. District Judge John A. Woodcock, Jr. sentenced Jamie Betances, a/k/a “Booger,” 33, to 126 months in prison and three years of supervised release. Betances pleaded guilty on October 16, 2018.
According to court records, between June 2015 and March 2017, Betances conspired with others to acquire crack, heroin and fentanyl in Rochester and transport it to central Maine for distribution. Betances traveled from Rochester to manage the Maine operation, overseeing distribution of drugs from 12 to 15 area “trap houses.”
The U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency and the Kennebec County Sheriff’s Office investigated the case, with assistance provided by the Augusta Police Department. This case was investigated and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Neshoba County Man Pleads Guilty to Bank RobberyRead the Press Release
Jackson, Miss. – David Keith Frazier, 33, of Neshoba County and a member of the Mississippi Bank of Choctaw Indians, pled guilty yesterday before U.S. District Judge Carlton W. Reeves to bank robbery by use of a dangerous weapon, announced U.S. Attorney Mike Hurst and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
On March 19, 2019, Frazier made threatening phone calls to two tribal elementary schools. During these phone calls, Frazier threatened to cause damage to both schools by means of explosives. The purpose of these phone calls was to cause law enforcement to respond to the schools and therefore to be away from the local bank that Frazier intended to rob.
Shortly after he made these phone calls, Frazier entered Trustmark National Bank, an FDIC-insured bank located on the Choctaw Indian Reservation at 110 Choctaw Town Center, for the purpose of robbing the bank by use of threatened force. Frazier was carrying an air pistol with the intent of making the employees of the bank believe that it was a real pistol. By brandishing and pointing a dangerous weapon, Frazier threatened to injure the employees of Trustmark if they did not give him money that was in the possession of Trustmark. Frazier’s intentional and intimidating behavior caused the employees to give him money in the bank’s possession out of fear of bodily injury.
Frazier took the money from Trustmark and fled. Law enforcement officers responded quickly and caught Frazier, who was in possession of some of the money taken from Trustmark, a short time later. Officers found the rest of the money, along with the air gun, in the woods where Frazier had fled after the bank robbery. All of the money taken by Frazier from Trustmark National Bank was recovered by law enforcement.
Frazier will be sentenced by Judge Reeves on January 8, 2020. He faces a maximum penalty of up to 25 years in federal prison, 5 years of supervised release, and a $250,000 fine.
The case was investigated by the Choctaw Police Department and the Federal Bureau of Investigation with assistance from numerous other state and local law enforcement agencies. The case is being prosecuted by Assistant United States Attorney Dave Fulcher.
NYC Department of Environmental Protection Employee Pleads Guilty to Using Long Island Residence to Manufacture Ecstasy and Cultivate MarijuanaRead the Press Release
Joseph Guida, an employee of New York City Department of Environmental Protection, pleaded guilty today to using a stash house in Mastic, Long Island to produce ecstasy (MDMA) and grow marijuana. The plea was entered before United States District Judge Joan M. Azrack at the federal courthouse in Central Islip. When sentenced, Guida faces up to 20 years in prison. As part of his guilty plea, Guida agreed to forfeit his interest in the Mastic residence and a Dodge Durango that he used in connection with his drug operation.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York Field Office (HSI), and Troy Miller, Director of Field Operations, U.S. Customs and Border Protection, New York Field Office (CBP), announced the guilty plea.
“Guida turned a house in a residential neighborhood into a drug factory, with total disregard for the danger posed to his neighbors by the volatile chemicals used to manufacture ecstasy,” stated United States Attorney Donoghue. “Today’s guilty plea is the result of swift action taken by this Office, working closely with our law enforcement partners, to safely shut down the defendant’s illegal drug operation.” Mr. Donoghue expressed his grateful appreciation to the Drug Enforcement Administration, New York State Police Contaminated Crime Scene Emergency Response Team, Suffolk County Police Department and New York City Police Department for their assistance during the investigation.
“Guida created a clandestine lab in his home to manufacture synthetics drugs and grow illegal marijuana. He sought to make a profit from his criminal business while endangering those in his community,” stated HSI Special Agent-in-Charge Fitzhugh. “It was the seamless collaboration with our partners at CBP, DEA and New York State Police before and during this investigation that allowed law enforcement to shut down Guida and his illicit enterprise.”
“This case serves as a great example of collaborative law enforcement efforts to combat international narcotics trafficking conspirators,” stated CBP Director Miller. “U.S. Customs and Border Protection thanks our partners at HSI and DEA for their continued cooperation.”
According to court filings and facts presented at the guilty plea proceeding, between November 2013 and December 2018, Guida used a house in Mastic to manufacture MDMA and marijuana for resale. In December 2018, CBP officers intercepted a package containing PMK methyl-glycidate (PMK), a MDMA precursor, that was mailed from China to Guida’s apartment in Queens. HSI agents then interviewed Guida, and he admitted that he ordered the PMK from China and used the Mastic residence as an MDMA lab and marijuana grow-house.
A subsequent search of the Mastic residence by law enforcement agents, some wearing protective hazmat suits, revealed chemicals and laboratory equipment for manufacturing MDMA, as well as approximately 36 marijuana plants and approximately 1.3 kilograms of processed marijuana.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Bradley T. King and Madeline M. O’Connor are in charge of the prosecution.
The Defendant:
JOSEPH GUIDA
Age: 45
Queens, New YorkE.D.N.Y. Docket No. 19-CR-12 (DRH)
Monongalia County woman sentenced for drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Bonnie Jo Korzun, of Granville, West Virginia, was sentenced today to 77 months incarceration for her involvement in a drug distribution operation, U.S. Attorney Bill Powell announced.
Korzun, age 39, pled guilty to one count of “Distribution of Heroin” in April 2019. Korzun admitted to selling heroin in Monongalia County in May 2018.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Mexican National Invovled in Poly-Drug Distribution Ring Is Sentenced to More Than 15 Years in PrisonRead the Press Release
STATESVILLE, N.C. – Today, U.S. District Judge Kenneth D. Bell sentenced Ricardo Cervantes-Sanchez, 40, of Mexico, residing in Hickory, N.C., to 188 months in prison and five years of supervised release on drug conspiracy charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Cervantes-Sanchez was a multi-kilogram level distributor of methamphetamine, cocaine and marijuana, operating mainly out of North Carolina and Tennessee.
Cervantes-Sanchez’s co-defendant, Raymundo, Villarreal, 22, of Newton, N.C. was also sentenced to eight years in prison and 5 years of supervised release for his role in the drug conspiracy.
According to today’s sentencing hearings and filed court documents in this and related cases, from 2014 until August 2018, Cervantes-Sanchez and Villarreal were part of a drug distribution ring responsible for trafficking methamphetamine, cocaine and marijuana in Western North Carolina, centered in and around Catawba County. The conspiracy extended well beyond North Carolina to Tennessee, Georgia, Texas, California, Illinois, Mexico and elsewhere, and involved the trafficking of multi-kilogram quantities of narcotics. Several defendants received sentencing enhancements for their possession of firearms during the conspiracy.
In addition to Cervantes-Sanchez and Villarreal, to date, 15 additional defendants involved in the poly-drug conspiracy have been sentenced to prison, as follows:
- Tommy Boyett was sentenced to 198 months in prison.
- Martin Santillan was sentenced to 156 months in prison.
- Joey Carroll was sentenced to 150 months in prison.
- Robert Long was sentenced to 144 months in prison.
- Ricky Moses was sentenced to 132 months in prison.
- Juan Villarreal was sentenced to 125 months in prison.
- David McIntosh was sentenced to 120 months in prison.
- Jamie Sigmon was sentenced to 114 months in prison.
- Rogelio Santillan was sentenced to 101 months in prison.
- Jesus Bedolla was sentenced to 81 months in prison.
- Ivan Garcia-Arcos was sentenced to 70 months in prison.
- Samuel Ibarra was sentenced to 60 months in prison.
- Jose Villagomez was sentenced to 57 months in prison.
- Manuel Martinez was sentenced to 46 months in prison.
- Clayton Rivera-Trejo was sentenced to 30 months in prison.
In making today’s announcement, U.S. Attorney Murray commended the work of the Drug Enforcement Administration with the assistance of the Federal Bureau of Investigation; the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Secret Service; the United States Probation Office; the North Carolina State Bureau of Investigation; the Catawba County Sheriff’s Office; the Alexander County Sheriff’s Office; the Hickory Police Department; the Newton Police Department; the Lincolnton Police Department; the Maiden Police Department; and the Cornelius Police Department. U.S. Attorney Murray also thanked the DEA’s offices in McAllen, Texas; Louisville, Kentucky; Indianapolis, Indiana; and Knoxville Tennessee, and the 9th Judicial Drug Task Force in Tennessee for their assistance in this case.
Assistant U.S. Attorney William Bozin of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Mexican National Charged with Smuggling Nine Kilograms of Heroin into United States at Port of Entry in Santa Teresa, N.M.Read the Press Release
ALBUQUERQUE, N.M. – Manuel A. Gonzalez, 49, a Mexican national residing in Bosque, New Mexico, appeared in federal court in Las Cruces, New Mexico yesterday for an initial appearance on a criminal complaint charging him with importation of a controlled substance.
According to the complaint, Gonzalez allegedly drove his pickup truck from Mexico to the Santa Teresa port of entry on October 10, 2019. Gonzalez allegedly had about nine kilograms of heroin concealed in the tailgate of his truck when U.S. Customs and Border Protection officers inspected his vehicle.
Gonzalez is a lawful permanent resident of the United States. He is currently in custody pending a detention hearing scheduled for October 18. He faces from ten years to life in prison if convicted of the charged offense. A criminal complaint is only an accusation. A defendant is presumed innocent until proven guilty.
Homeland Security Investigations investigated the case with Customs and Border Protection. Assistant U.S. Attorney Joni A. Stahl of the Las Cruces Branch Office is prosecuting the case.
McAllen woman charged in Medicare kickback conspiracyRead the Press Release
McALLEN, Texas – A 44-year-old McAllen woman has been charged with conspiring to pay illegal kickbacks to physicians and marketers in exchange for the referral of Medicare and Medicaid beneficiaries, announced U.S. Attorney Ryan K. Patrick.
A federal grand jury returned the indictment, under seal, against Claudia Haro Oct. 9, which was unsealed as authorities arrested her today. She is expected to make her initial appearance tomorrow morning before U.S. Magistrate Judge J. Scott Hacker.
The indictment charges Haro with engaging in a conspiracy from 2011 through 2016. Haro and her co-conspirators allegedly paid kickbacks to physicians and various other individuals in exchange for beneficiary referral and certification and for services and supplies billed to Medicare and Medicaid. According to the indictment, Haro delivered cash payments in return for the referral of beneficiaries to a home health agency and other providers with whom Haro was associated.
Haro is also charged with one count of making false statements to federal agents.
If convicted of any of the charges, she faces up to five years in prison.
The FBI, Department of Health and Human Services‐Office of Inspector General, Texas Attorney General’s Medicaid Fraud Control Unit and Texas Health and Human Services Commission conducted the investigation. Assistant U.S. Attorneys Andrew Swartz and Cynthia Villanueva are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Marion Man Sentenced to 84 Months in PrisonRead the Press Release
FORT WAYNE – Daniel King, age 68, of Marion, Indiana was sentenced before U.S. District Court Judge Holly A. Brady upon his plea of guilty to receipt of material involving the sexual exploitation of minors, announced U.S. Attorney Kirsch.
King was sentenced to 84 months imprisonment followed by 5 years of supervised release and the Court ordered forfeiture of the items involved in the commission of offense.
According to documents in this case, in July of 2016, King, was indicted for receiving child pornography and ultimately pled guilty to this offense. In his plea agreement, King also agreed to forfeit a tablet, a thumb drive, a laptop computer and 5 hard drives.
The case was investigated by Federal Bureau of Investigation’s Violent Crimes Against Children (VCAC) Task Force. The case was handled by Assistant United States Attorney Lesley J. Miller Lowery.
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Manhattan U.S. Attorney Files Civil Rights Suit Against Real Estate Firm and Developer for Designing and Constructing 68 Rental Apartment Buildings with Inaccessible ConditionsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that the United States has filed a federal civil rights lawsuit against real estate firm ATLANTIC DEVELOPMENT GROUP, LLC (“ATLANTIC”), and its principal, PETER FINE, for engaging in a pattern or practice of violations of the accessible design and construction requirements of the Fair Housing Act (“FHA”). Specifically, the United States alleges that ATLANTIC and FINE have designed and constructed more than 6,000 apartments in 68 rental buildings throughout the Bronx, Manhattan, and Westchester County that do not comply with the FHA’s accessibility requirements. The lawsuit seeks a court order directing ATLANTIC and FINE to retrofit these buildings to make them accessible to people with disabilities, to make changes to policies and procedures, and to compensate individuals who suffered discrimination due to the inaccessible conditions.
Manhattan U.S. Attorney Geoffrey S. Berman said: “The Fair Housing Act’s accessibility provisions were enacted to ensure that people with disabilities are not consigned to second-class status when it comes to housing. These rights under the FHA apply equally to residents who live in affordable housing as those living in luxury high-rises. With today’s lawsuit, real estate firms and developers in this District – including developers of affordable housing like Atlantic and Fine – should know that this Office will continue to use all available tools to enforce the FHA’s promise of accessibility in housing for people with disabilities.”
The FHA’s accessible design and construction provisions require multifamily housing complexes constructed after January 1991 to have basic features accessible to persons with disabilities. According to the Complaint, ATLANTIC and FINE failed to comply with the FHA’s accessibility requirements in designing and constructing 68 rental buildings that contain more than 6,000 apartments. As alleged in the Complaint, the inaccessible conditions include, among others:
- Excessively high thresholds at building entrances and entrances to common use areas like community rooms;
- Entrance ramps that lack handrails on both sides;
- Insufficient clear floor space in bathrooms within individual apartments;
- Insufficient widths between sinks or refrigerators and opposing ranges or counters in kitchens within individual apartments;
- Excessively high thresholds at entrances to individual apartments and within individual apartments; and
- Common use bathrooms that lack pipe insulation and toilet grab-bars.
The Complaint also alleges that these types of inaccessible conditions recur throughout the rental buildings developed by ATLANTIC and FINE across more than 15 years and involving multiple architects. Further, according the Complaint, many of the rental buildings at issue are designated for low-income residents, and FINE, through ATLANTIC, earned substantial profits from those developments on account of having received so-called 421-a tax exemption certificates for developing low-income rental properties.
Due to the inaccessible conditions at the rental buildings they designed and constructed, the Complaint alleges that ATLANTIC and FINE engaged in a pattern or practice of resistance to the full enjoyment of rights protected by the FHA and in denying such rights to people with disabilities. The Complaint seeks a court order directing ATLANTIC and FINE to retrofit the individual apartments as well as the public and common use areas in the 68 rental buildings so that they are accessible, to adopt policies and procedures to ensure FHA compliance in future constructions, and to compensate people who suffered discrimination due to the inaccessible conditions.
People who believe they may have experienced discrimination due to the inaccessible conditions at the 68 rental buildings developed by ATLANTIC and FINE may contact the Civil Rights Complaint Line at (212) 637-0840, use the Civil Rights Complaint Form available on the United States Attorney’s Office’s website http://www.justice.gov/usao/nys/civilrights.html, or send a written report to:
U.S. Attorney’s Office, Southern District of New York
86 Chambers Street, 3rd Floor
New York, New York 10007
Attention: Chief, Civil Rights Unit
The case is being handled by the Office’s Civil Rights Unit. Assistant U.S. Attorneys Li Yu, Jacob Lillywhite, Steven Kochevar, and Natasha Teleanu are in charge of the case.
Man Charged with Intent to Distribute MethamphetamineRead the Press Release
FORT WAYNE – Antonio Munos, 47, of Fort Wayne, Indiana, was charged in a criminal complaint with possession with intent to distribute methamphetamine, announced U.S. Attorney Kirsch.
The criminal complaint alleges that Munos possessed in excess of 2 pounds of methamphetamine. It was alleged that a Mr. Munos had agreed to sell methamphetamine to an individual on October 14, 2019. Mr. Munos and the individual met but did not come to agreement on the price so Mr. Munos was allegedly going to drive to the source of supply’s house. While driving to the house, Mr. Munos committed a traffic violation and was stopped by police. He exhibited nervous behavior when asked about the presence of narcotics in the vehicle, causing the officer to request a K-9 sweep. The K-9 alerted on the vehicle where over 2 pounds of methamphetamine were located in the trunk.
The United States Attorney’s Office emphasizes that a criminal complaint is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case is being investigated by the DEA with the assistance of the Fort Wayne Police Department. This case is being prosecuted by Assistant United States Attorney Stacey R. Speith.
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Man Admits to Dismantling and Stealing Oil Field EquipmentRead the Press Release
A Wynona man pleaded guilty Wednesday in U.S. District Court for dismantling and stealing oil pumping rig equipment from pumpjacks in Osage County, announced U.S. Attorney Trent Shores.
Lee Charles Smith, 32, pleaded guilty to Destruction of an Energy Facility. In his plea agreement, Smith admitted to dismantling and stealing the oil pumping rig equipment from Sept. 14 through Sept. 17, 2018.
"The oil and gas industry is the life blood of the Oklahoma economy. Lee Charles Smith dismantled pumpjack rig motors in Osage County to sell for parts. His thievery was an attack on the livelihood of all Oklahomans,” said U.S. Attorney Trent Shores. “I’m proud of the investigative team for bringing Smith to justice. He caused in excess of $30,000 in damages and disrupted valuable production time. This United States Attorney’s Office will work with our law enforcement partners to prosecute the destruction and theft of pumping equipment.”
U.S. District Judge Gregory K. Frizzell accepted Smith’s plea and set sentencing for Jan. 16, 2020.
The Osage County Sheriff’s Office, Oklahoma State Bureau of Investigation and FBI conducted the investigation. Assistant U.S. Attorney Scott Proctor is prosecuting the case.
Major Methamphetamine Supplier from Texas Sentenced to Life in Prison for ConspiracyRead the Press Release
Gulfport, Miss. – David Quevedo Martinez, 40, of Houston, Texas, was sentenced yesterday by Senior U.S. District Judge Louis Guirola to life in federal prison for conspiring to possess with intent to distribute 500 grams or more of methamphetamine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Brad L. Byerley with the Drug Enforcement Administration. Martinez was also ordered to pay a $15,000 fine.
“This defendant rightfully deserves to spend the rest of his life in prison for the innocent lives he has damaged or destroyed. I applaud the hard work of our law enforcement partners and our prosecutors, ensuring that this criminal will no longer threaten our people or the Mississippi Gulf Coast. Because of their diligence and courageous actions, our kids and communities are safer today,” said U.S. Attorney Hurst.
On June 26, 2019, Martinez was found guilty by a jury in federal court of conspiring to possess with intent to distribute 500 grams or more of methamphetamine. Judge Guirola presided over the three-day trial.
Trial testimony revealed that Martinez sold numerous kilograms of methamphetamine to co-conspirators in Houston, Texas. Those co-conspirators brought the methamphetamine back to the Mississippi Gulf Coast and distributed it throughout Gulfport and Moss Point.
The case was investigated by the Drug Enforcement Administration and the Pasadena, Texas, Police Department. It was prosecuted by Assistant U.S. Attorneys Kathlyn R. Van Buskirk and John Meynardie.
MS-13 Leaders Charged with Racketeering, Narcotics, and Firearms OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Peter C. Fitzhugh, the Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), and James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of an Indictment charging AMILCAR ROMERO, a/k/a “Soldado,” JAIME SANTANA, a/k/a “Smiley,” JOSE GARCIA, a/k/a “Tricky,” and ALEXANDER RIVERA, a/k/a “Extrano,” with racketeering conspiracy and narcotics distribution conspiracy. CRISTIAN GUERRERO-MELGARES, a/k/a “Enigma,” and GUSTAVO LLEVANO-RIVERA are charged in the narcotics conspiracy count. Several defendants also face firearms charges.
GARCIA, GUERRERO-MELGARES, and RIVERA were arrested this morning and will be presented today before Magistrate Judge Stewart D. Aaron. SANTANA was arrested last night and will be presented today in the Middle District of Tennessee. ROMERO is currently in state custody in California on other charges and will be transferred to federal custody in New York and presented at a later date. LLEVANO-RIVERA remains at large. The case is assigned to U.S. District Judge William H. Pauley III.
Manhattan U.S. Attorney Geoffrey S. Berman said: “The defendants in this case include alleged leaders of the L.A. Program of MS-13, operating across the United States. They and their co-defendants are alleged to have engaged in acts of violence, narcotics distribution, and the use of firearms. Thanks to our remarkable partners at HSI and the NYPD, the defendants now face federal charges for these very serious crimes.”
HSI Special Agent-in Charge Peter C. Fitzhugh said: “Today, three high ranking members of MS-13 were arrested for various charges, including, racketeering, drug distribution and firearms offenses. These three gang members allegedly utilized violence and intimidation in order to further their criminal enterprise. HSI New York and our other field offices around the country continue to work with our local law enforcement partners to combat MS-13. It is only through these coordinated efforts that we will be able to disrupt and ultimately dismantle this gang.”
NYPD Commissioner James P. O’Neill said: “Targeting gangs and crews, and preventing the violence so often associated with their illegal activities, continues to be among the highest priorities for the NYPD and our law enforcement partners. By precisely targeting the relatively small percentage of individuals responsible for committing much of the violence in New York, we are making the safest large city in America even safer. We remain relentless in our efforts to identify, arrest, and prosecute anyone who allegedly involves themselves in such criminal behavior.”
According to the allegations in the Indictment unsealed today in Manhattan federal
court as well as court filings[1]:
ROMERO, SANTANA, GARCIA, and RIVERA are members of a transnational racketeering enterprise known as Mara Salvatrucha, or MS-13, which operates throughout North and Central America, including in El Salvador, Mexico, New York, California, Texas, Virginia, Tennessee, and North Carolina. In order to enrich the enterprise, protect and expand its criminal operations, enforce discipline among its members, and retaliate against members of rival gangs, members and associates of MS-13 committed, conspired, attempted, and threatened to commit acts of violence; distributed and possessed with intent to distribute narcotics, including methamphetamine and cocaine; and obtained, possessed and used firearms.
MS-13 is organized into chapters called “cliques.” Groups of cliques, in turn, are aligned as “programs.” Each program is governed by a group of senior gang leaders known as the “table.” ROMERO, SANTANA, and GARCIA are high-ranking members of the table of the “L.A. Program” of MS-13.
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ROMERO, 50, SANTANA, 39, GARCIA, 31, and RIVERA, 31, are charged with one count of racketeering conspiracy, which carries a statutory maximum sentence of life in prison. Those four defendants, as well as GUERRERO-MELGARES, 32, and LLEVANO-RIVERA, 23, are charged with one count of conspiracy to distribute and possess with intent to distribute: (i) 50 grams and more of methamphetamine, (ii) 500 grams and more of mixtures and substances containing a detectable amount of methamphetamine, and (iii) mixtures and substances containing a detectable amount of cocaine, which carries a statutory maximum sentence of life in prison, and a mandatory minimum sentence of 10 years in prison. SANTANA, GARCIA, and GUERRERO-MELGARES are charged with possessing, carrying, and using firearms during, in relation to, and in furtherance of, the narcotics conspiracy, which carries a statutory maximum sentence of life in prison, and a mandatory minimum sentence of five years in prison. SANTANA and RIVERA are charged with possessing firearms while unlawfully or illegally in the United States, which carries a statutory maximum sentence of 10 years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.
Mr. Berman praised the investigative work of HSI and the NYPD.
This case is being handled by the Office’s Violent & Organized Crime Unit. Assistant United States Attorneys Michael D. Longyear, Justin V. Rodriguez, and Jacob Warren are in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment as well as the referenced letter constitute only allegations, and every fact described herein should be treated as an allegation.
Lewiston Woman Sentenced for Conspiracy to Manufacture MarijuanaRead the Press Release
Portland, Maine: A Lewiston woman was sentenced today in federal court in Portland for conspiring to manufacture marijuana, U.S. Attorney Halsey B. Frank announced.
U.S. District Judge George Z. Singal sentenced Stephanie Beck, 41, to 60 days in prison and three years of supervised release. Beck pleaded guilty on April 8, 2019.
According to court records, Beck was licensed by the State of Maine Department of Professional & Financial Regulation as a Certified Clinical Supervisor and an Alcohol and Drug Counselor. Between December 1, 2017, and February 27, 2018, she provided patient names (including the names of MaineCare recipients) to a nurse practitioner, who in turn created fraudulent medical marijuana certifications. These certifications allowed a marijuana trafficking conspiracy to illegally cultivate marijuana plants under the cover of the Maine Medical Use of Marijuana Program.
The U.S. Drug Enforcement Administration; the U.S. Department of Health & Human Services, Office of Inspector General; the Healthcare Crimes Unit of the Maine Office of Attorney General; and the IRS Criminal Investigation Division investigated the case.
Lead defendant in MS-13 racketeering case sentenced to life in prison with no chance of releaseRead the Press Release
COLUMBUS, Ohio – The lead defendant in a racketeering conspiracy involving five murders was sentenced in U.S. District Court here today.
Martin Neftali Aguilar-Rivera (a/k/a Momia), 34, of Columbus, was sentenced to life in prison by U.S. District Judge Edmund A. Sargus, Jr. for conspiring to commit racketeering and murder in aid of racketeering. Aguilar-Rivera accepted responsibility in July for participating in five murders.
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, Rebecca Adducci, Detroit Field Office Director, U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations, Franklin County Sheriff Dallas Baldwin and Interim Columbus Police Chief Thomas Quinlan announced the sentence imposed this afternoon.
“This defendant’s ties to MS-13 in the Southern District of Ohio stretch back to the mid-2000s,” U.S. Attorney Glassman said. “From 2015 to the date of his arrest in August 2017, he was the unquestioned leader of the Columbus clique of MS-13. Under Aguilar-Rivera’s leadership, MS-13 members in Columbus became more organized, more violent, and more ruthless. He deserves to spend the rest of his life in prison.”
In February 2018, 23 individuals were charged in a second superseding indictment and alleged to be members and associates of MS-13 in Columbus.
The defendants are charged in a racketeering conspiracy, which includes five murders as well as attempted murder, extortion, money laundering, drug trafficking, assault, obstruction of justice, witness intimidation, weapons offenses and immigration-related violations.
The second superseding indictment alleges that the defendants committed a host of overt acts in furtherance of the conspiracy, including: 1) the December 2006 murder of Jose Mendez, a suspected confidential informant, in Perry County; 2) the November 2008 murder of Ramon Ramos on Lockbourne Road in Columbus; 3) the mid-2015 murder of Carlos Serrano-Ramos, a suspected rival gang member, near Innis Road in Columbus; 4) the November 2015 murder of Wilson Villeda near Innis Road in Columbus; and 5) the December 2016 murder of Salvador Martinez-Diaz, a suspected rival gang member, on Melroy Avenue in Columbus.
The murders sometimes involved defendants using weapons like machetes, knives and hammers to attack and beat their victims to death. In two of the charged murders, the victims were stabbed and slashed with bladed weapons before being buried in a nearby park.
U.S. Attorney Glassman commended the investigation of this case by the FBI, ICE, Columbus Division of Police and Franklin County Sheriff’s Office, and the assistance of the Ohio Bureau of Criminal Investigation (BCI) and Homeland Security Investigations (HSI), as well as Assistant United States Attorneys Brian J. Martinez and Jessica H. Kim, who are prosecuting the case.
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Las Vegas Man Sentenced to 8 Years in Prison for Committing Nearly $2 Million Business Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man who admitted to defrauding more than $1.8 million from victims of a business fraud scheme was sentenced today to eight years in federal prison and ordered to pay $1,715,475 in restitution, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
Jihad Anthony Zogheib, 53, pleaded guilty without a plea agreement in October 2018, to eight counts of wire fraud in connection to a fraud scheme. Zogheib was sentenced by U.S. District Judge Larry R. Hicks.
Zogheib admitted in court that, from about 2010 to about 2013, he devised a scheme to fraudulently obtain money from people falsely representing that he would use their money for business purposes. As part of the scheme, he influenced victims’ decisions by using forged business documents and fictitious emails from banks. Specifically, in February 2011, Zogheib falsely told one of his victims about forming a mobile crane company and a mobile crane leasing company. He claimed he had millions of dollars in an overseas account, but it was placed on a hold. After showing the victim a fictitious bank record showing millions of dollars on deposit, Zogheib’s dupe caused the victim into giving him $548,000 to fund the sham companies. From November 2010 to about August 2013, Zogheib defrauded two other victims by falsely claiming he was in the business of flipping real estate. He made false representations to the victims in order to receive hundreds of thousands of dollars for the nonexistent real estate investments. These two victims sent Zogheib a total of $1,307,475. Zogheib immediately used the ill-gotten proceeds to fund his gambling habit and high-end lifestyle.
The case was investigated by the FBI. Assistant U.S. Attorneys Patrick Burns and Steven Myhre prosecuted the case.
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