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11 October 2019
Long Island Man Sentenced to 10 Years in Prison for Possession of Cocaine, Crack and FirearmsRead the Press Release
Earlier today, in federal court in Central Islip, Daniel Harris was sentenced by United States District Judge Arthur D. Spatt to 10 years’ imprisonment for possession with intent to distribute more than 500 grams of cocaine and 28 grams of cocaine base, as well as possession of multiple firearms in furtherance of a drug trafficking crime. Harris pleaded guilty to the charges on April 8, 2019.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the sentence.
“With today’s sentence, the defendant is deservedly punished for endangering the residents of eastern Long Island with his drug dealing and arming himself to the teeth to protect his illicit business,” stated United States Attorney Donoghue. “This Office will continue working relentlessly with our federal and local law enforcement partners to address the dangerous combination of narcotics and firearms.” Mr. Donoghue thanked the Federal Bureau of Investigation, New York Field Office (FBI), and the Suffolk County East End Drug Task Force for their outstanding work on the case.
As part of an investigation into narcotics trafficking in and around Riverhead, New York, law enforcement agents and officers made multiple purchases of crack cocaine from Harris at his home in Flanders. On November 14, 2018, Harris was arrested, and a search warrant was executed at his home resulting in the seizure of more than one kilogram of powder cocaine and over 50 grams of cocaine base, $10,073 in cash, a shotgun, a .38 caliber revolver and a 9mm. handgun. At his guilty plea proceeding, Harris admitted that he kept the firearms to protect his drug trafficking business.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement, and the local community, to develop effective, locally based strategies to reduce violent crime.
The government’s case is being prosecuted by Assistant United States Attorney Michael Maffei.
The Defendant:
DANIEL HARRIS
Age: 36
Flanders, New YorkE.D.N.Y. Docket No. 18-CR-628 (ADS)
Local man set to appear for allegedly ramming military baseRead the Press Release
CORPUS CHRISTI, Texas – A 47-year-old Beeville man has been charged with possession of a stolen firearm, announced U.S. Attorney Ryan K. Patrick
Brian Dale Robinson is set to appear before U.S. Magistrate Judge Jason Libby at 9:00 a.m. today for a preliminary and detention hearing.
A criminal complaint was filed Oct. 7, after Robinson allegedly stole a truck and hit the denial barricade located at the North gate entrance of the Naval Air Station (NAS) in Corpus Christi. The charges allege that he was at a gas station in Beeville when he spotted a Dodge Ram 3500 pickup truck with the engine running. Robinson then allegedly entered the vehicle without permission and departed the area.
He approached the NAS and attempted to gain unauthorized access to the base, according to the charges. After he hit the barricade, the vehicle allegedly become inoperable. The charges allege Robinson exited the vehicle and left on foot with a handgun he had found inside and hid next to a dumpster.
Robinson allegedly had suicidal thoughts. However, he opted to drop the weapon so no one else would be hurt.
Following Robinson’s arrest, law enforcement located an HS Produkt, model XDM-9, 9mm pistol loaded with a full magazine.
The Naval Criminal Investigative Service and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Robert D. Thorpe Jr. is 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.Lincoln Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that Brian Joseph Bowder, 41, of Lincoln, was sentenced today to 23 years and seven months in federal prison by Chief United States District Judge John M. Gerrard for conspiracy to distribute and possess with the intent to distribute actual (pure) methamphetamine, methamphetamine mixture and marijuana between August of 2017 and July of 2018. Following the prison term, Bowder will serve 10 years on supervised release.
Information provided to law enforcement indicated that Bowder was responsible for the distribution of at least 5 grams of methamphetamine actual, at least 5 kilograms (11 pounds) of methamphetamine mixture and less than a kilogram of marijuana in the Lincoln area during that time-period. Bowder admitted as part of his plea agreement that he possessed a firearm in connection with this offense.
Between December of 2017 and February of 2018, an undercover officer made six purchases of methamphetamine from Bowder for a total of more than 30 grams. Purity analysis on two of those purchases showed at least 11 grams of actual (pure) methamphetamine. During one purchase, Bowder also provided a small amount of marijuana to the undercover officer.
In February of 2018, Bowder was contacted by Lincoln Police officers and was found in possession of drug paraphernalia. At that time, he admitted he was selling methamphetamine and marijuana. A search warrant was executed at his residence. During the search, officers found a small amount of methamphetamine and packaging materials.
On two occasions in July of 2018, Bowder was contacted by LPD officers and was found in possession of small amounts of methamphetamine.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Leaders and Members of Outlaw Gangsta Crips and Shoota Gang Sentenced to up to 210 Months’ ImprisonmentRead the Press Release
Yesterday, at the federal courthouse in Brooklyn, Lenard Barletto, a member of the Outlaw Gangsta Crips (“OGC”) and the Shoota Gang, was sentenced to 210 months’ imprisonment for racketeering conspiracy, conspiracy to distribute crack cocaine and conspiracy to murder two gang rivals. Barletto pleaded guilty to the charges in June 2018. He is the final gang member to be sentenced in this case, in which 23 defendants, including the gangs’ leaders, were charged and convicted of racketeering conspiracy, murder conspiracy, attempted murder, narcotics trafficking conspiracy and bank fraud, among other crimes. The sentencing proceedings were held before United States District Judge William F. Kuntz II.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the sentences.
“With Outlaw Gangsta Crips and Shoota Gang leaders and members now serving well-deserved prison terms, the East Flatbush community is a much safer place,” stated United States Attorney Donoghue. “We warn all violent street gang members, in no uncertain terms, to expect a similar fate for menacing our communities.”
“Violent street gangs, and the crews and subsets that splinter off from them, remain a focus of law enforcement wherever their illegal trade in narcotics and brutal rivalries threaten the safety of our city’s neighborhoods and residents,” stated NYPD Commissioner O’Neill. “We applaud our federal partners for working together in this case to eradicate a criminal franchise and ensure justice for the East Flatbush community with the culmination of this successful prosecution.”
OGC and the Shoota Gang were based in the East Flatbush neighborhood of Brooklyn. OGC was a violent set of the nationwide Crips street gang, and the Shoota Gang was a local offshoot of OGC that included members of OGC, the Eight Trey Gangsta Crips, the Bosses in Business (“BIB”) and the Bloods. Between August 9, 2013 and May 12, 2015, members of OGC and the Shoota Gang committed multiple acts of violence, sold drugs and guns, committed robberies and bank fraud and promoted prostitution. Among the crimes of conviction were the following:
Attempted Murder
On June 3, 2014, Conell Brogdon, a leader of both OGC and the Shoota Gang, and Malik Campbell, a member of the Bloods and the Shoota Gang, attempted to murder a victim identified as John Doe #1. Brogdon, Campbell and three other Shoota Gang members surrounded John Doe #1 inside the Big Boy Deli on Nostrand Avenue and attempted to steal his necklace. During the confrontation, Brogdon handed Campbell a gun, and Campbell shot John Doe #1, who survived.
Murder Conspiracy
In January 2014, OGC member Kareem Mitchell, also known as “Pop,” was murdered, and OGC and the Shoota Gang believed BIB was responsible. In a series of phone calls intercepted pursuant to judicially authorized wiretaps, Parris Desuze, a leader of both OGC and the Shoota Gang, and Lenard Barletto and Courtney Coy, both members of OGC and the Shoota Gang, confirmed that they had firearms and would meet at the location identified by Solomon Artis, another OGC member, to attack two BIB members. The plan was thwarted by FBI agents and NYPD detectives monitoring the wiretaps, and Artis, Barleto, Coy and Desuze were arrested. Subsequently, co-conspirator Andre Holman, a member of the Eight Trey Gangsta Crips, was also arrested.
Assault
On July 19, 2014, Cordero Passley, a member of the Eight Trey Gangsta Crips and associate of OGC, assaulted and stabbed a victim on Lenox Road. The confrontation began when Passley ordered a woman to stop playing a song recorded by an alleged rival gang member and rapper. When the victim defended the woman, Passley and others attacked him.
Drug Trafficking
Between August 9, 2013 and May 12, 2015, members of OGC and the Shoota gang conspired to sell crack cocaine in Brooklyn, Connecticut, West Virginia and elsewhere.
Bank Fraud Conspiracy
Between January 6, 2014 and January 20, 2015, members and associates of OGC, and members of the Eight Trey Gangsta Crips, conspired to defraud Bank of America, JPMorgan Chase, Citibank and TD Bank. The conspirators obtained paychecks issued to others and used the information on the checks to create fraudulent checks that appeared to be written by business entities. Those checks were then deposited into bank accounts, and the deposits were promptly withdrawn.
Convictions and Sentences
- Conell Brogdon, a leader of both OGC and the Shoota Gang, was sentenced to 210 months’ imprisonment for racketeering conspiracy, including predicate acts of attempted murder and conspiracy to distribute crack cocaine.
- Parris Desuze, a leader of both OGC and the Shoota Gang, was sentenced to 210 months’ imprisonment for racketeering conspiracy, including predicate acts of conspiracy to murder and conspiracy to distribute crack cocaine.
- Lenard Barletto, a member of both OGC and the Shoota Gang, was sentenced to 210 months’ imprisonment for racketeering conspiracy, including predicate acts of conspiracy to murder and conspiracy to distribute crack cocaine.
- Malik Campbell, a member of the Bloods and the Shoota Gang, was sentenced to 188 months’ imprisonment for racketeering conspiracy, including predicate acts of attempted murder and conspiracy to distribute crack cocaine.
- Courtney Coy, a high-ranking member of both OGC and the Shoota Gang, was sentenced to 168 months’ imprisonment for racketeering conspiracy, including predicate acts of conspiracy to murder and conspiracy to distribute crack cocaine.
- Solomon Artis, a member of OGC, was sentenced to 121 months’ imprisonment for racketeering conspiracy, including predicate acts of conspiracy to murder and conspiracy to distribute crack cocaine.
- Steven Cherenfant, Stanley Cherenfant and Stephon Rene, brothers and members of the Eight Trey Gangsta Crips and the Shoota Gang, were sentenced to 135, 121 and 121 months’ imprisonment, respectively, for conspiracy to distribute crack cocaine with OGC.
- Aikiam Floyd, a member of the Bloods and the Shoota Gang, was sentenced to 121 months’ imprisonment for conspiracy to distribute crack cocaine with OGC.
- Andre Holman, a member of the Eight Trey Gangsta Crips and associate of OGC, was sentenced to 87 months’ imprisonment for conspiracy to murder.
- Cordero Passley, a member of the Eight Trey Gangsta Crips and an associate of OGC, was sentenced to 46 months’ imprisonment for assault in aid of racketeering.
The government’s case was handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorney Allon Lifshitz is in charge of the prosecution.
The Defendant Sentenced Yesterday:
LENARD BARLETTO
Age: 31
Brooklyn, New YorkDefendants Previously Sentenced:
SOLOMON ARTIS
Age: 30
Brooklyn, New YorkDERRICK BIENAIME
Age: 24
Brooklyn, New YorkCONELL BROGDON
Age: 32
Brooklyn, New YorkDAVON BROWN
Age: 21
Brooklyn, New YorkMALIK CAMPBELL
Age: 32
Brooklyn, New YorkSTANLEY CHERENFANT
Age: 24
Brooklyn, New YorkSTEVEN CHERENFANT
Age: 28
Brooklyn, New YorkCOURTNEY COY
Age: 32
Brooklyn, New YorkPARRIS DESUZE
Age: 31
Brooklyn, New YorkBRANDON GREENIDGE
Age: 34
Brooklyn, New YorkCORY HARRIS
Age: 41
Brooklyn, New YorkJAMAR HARRY
Age: 30
Brooklyn, New YorkANDRE HOLMAN
Age: 31
Brooklyn, New YorkJEFFREY JOSEPH
Age: 34
Brooklyn, New YorkSILBERT NICHOLSON
Age: 27
Brooklyn, New YorkCORDERO PASSLEY
Age: 25
Brooklyn, New YorkGABRIEL PATTERSON
Age: 24
Brooklyn, New YorkSTEPHON RENE
Age: 23
Brooklyn, New YorkAKEEM WATSON
Age: 27
Brooklyn, New YorkE.D.N.Y. Docket No. 15-CR-287 (S-1) (WFK)
- Conell Brogdon, a leader of both OGC and the Shoota Gang, was sentenced to 210 months’ imprisonment for racketeering conspiracy, including predicate acts of attempted murder and conspiracy to distribute crack cocaine.
Law Enforcement in South Florida Lead Effort to Seize Independentgirls.com, an Internet Forum for Prostitution Ads Some Ads Involved MinorsRead the Press Release
U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Sheriff Gregory Tony of the Broward County Sheriff’s Office (BSO) announced the Oct. 4, 2019 seizure of independentgirls.com, an Internet forum for escort services and prostitution.
The main purpose of independentgirls.com was to allow escort agencies and independent escorts to post advertisements for prostitution services and provide a forum in which potential customers of prostitution could review the prostitute and post it on the website for others to read. Independentgirls.com allowed customers paying for sex to buy upgraded user accounts where they would be able to read customer reviews of advertising prostitutes, write reviews of prostitutes that were seen by other members, private message prostitutes, and view which prostitutes were currently available. Website members with upgraded user accounts were entitled to discounted hourly rates, invitations to parties hosted by independentgirls.com, as well as message forums discussing recent law enforcement action. Some of the females advertised for escort services and prostitution were minor victims.
“Our goal, as a law enforcement community, is to ensure that websites that facilitate human trafficking and child exploitation cease to exist and that the traffickers are held accountable in a court of law for their criminal exploits,” stated U.S. Attorney Fajardo Orshan. “There is no lawful market for companies or individuals that profit off of illicit commercial sex and the victimization of others.”
“The FBI will not tolerate sex trafficking regardless if it is arranged in person or over the Internet,” said George L. Piro, Special Agent in Charge of the FBI Miami’s Field Office. “The FBI and our law enforcement partners will continue to work tirelessly to combat those who engage in the sexual exploitation of others for profit.”
“At the center of this investigation was a website operated out of Broward County that catered to prostitution and served as a platform for human traffickers to advertise their victims for commercial sex acts,” said Sheriff Gregory Tony. “I commend BSO detectives and our federals partners who, through this significant arrest and seizure of this website, have made a large impact on the human trafficking activities in South Florida.”
In April of 2019, Neil Steven Greenberg, of Sunrise, Florida, the owner of the website independentgirls.com was arrested on a federal indictment charging him with two counts of production of child pornography, in violation of Title 18, United States Code, Sections 2251(a) and (e) (Case No. 19cr60132). During the execution of a search warrant at Greenberg’s residence, law enforcement is alleged to have discovered videos of Greenberg engaging in illicit sex acts with two minors. The case is pending before U.S. District Court Judge Rodolfo A. Ruiz II in Fort Lauderdale.
The charges and allegations contained in an indictment are merely accusations. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The effort to seize independentgirls.com was led by the U.S. Attorney’s Office for the Southern District of Florida. The law enforcement agencies conducting the investigation and seizure include the FBI’s Miami Field Office, BSO, and the South Florida Internet Crimes Against Children/Human Trafficking Task Force. The criminal case is being prosecuted by Assistant U.S. Attorney Jodi L. Anton. Assistant U.S. Attorney Richard O. Brown is handling the asset forfeiture aspects of the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Juries Return Convictions in Two Separate "Operation 922" Domestic-Violence Gun TrialsRead the Press Release
OKLAHOMA CITY – TERRENCE L. HILL, 38, of Oklahoma City, and RONALD BENTON, 47, of Temple, Oklahoma, have been convicted in separate cases of illegally possessing ammunition and a firearm respectively, announced U.S. Attorney Timothy J. Downing. Both cases are part of "Operation 922," the U.S. Attorney’s Office’s effort to prosecute individuals who perpetrate domestic violence and violate federal gun laws.
The Terrence L. Hill Conviction
A grand jury indicted Terrence Hill on February 5, 2019, for possessing four .380 caliber steel cartridge casings after having been convicted of a felony. On October 8 and 9, 2019, a federal jury heard evidence that Hill, who has a felony conviction, shot his former girlfriend at her residence in northwest Oklahoma City in the early morning hours of September 19, 2018. After having dated for approximately two years, Hill and his girlfriend broke up in early 2018. The girlfriend filed a petition for a protective order against Hill in Oklahoma County District Court on September 12, 2018. The evidence at trial showed that on the evening of September 18, 2018, Hill called his former girlfriend and threatened to kill her and her daughter. After a nearly sleepless night, the girlfriend saw Hill in her backyard at around 7:00 a.m. According to the trial evidence, he fired at least four shots at her through a patio window and hit her twice in the back as she tried to escape. Investigators recovered four casings in the backyard. The victim’s wounds were not fatal.
On October 11, 2019, a jury unanimously found Hill guilty of possessing ammunition after a felony conviction. At sentencing, he faces a maximum penalty of ten years in prison, followed by three years of supervised release, and a fine of up to $250,000. Sentencing will take place in approximately 90 days.
The Ronald Benton Conviction
Ronald Benton was indicted on December 12, 2018, for possessing a firearm after being convicted of a misdemeanor crime of domestic violence. He entered a guilty plea on March 11, 2019. On August 22, 2019, however, the court allowed him to withdraw his guilty plea because of a new U.S. Supreme Court case that held that the government must prove the defendant knew the status that made his gun possession a federal crime. On September 3, a grand jury returned a superseding indictment that added the allegation that Benton made a false statement on Bureau of Alcohol, Tobacco, Firearms & Explosives ("ATF") Form 4473 when he purchased a 9mm pistol in Lawton in May 2018 and stated he had never been convicted of a misdemeanor crime of domestic violence.
A jury heard the evidence against Benton on October 8, 2019. In particular, it heard that Benton had been convicted of misdemeanor battery against his spouse in New Mexico in 2007. The evidence showed the ATF contacted him after his May 2018 firearm purchase to inform him he was not allowed to possess a firearm. The ATF executed a search warrant at his home in Temple, Oklahoma, on June 15, 2018, and found the pistol and ammunition in his bedroom.
Benton was convicted unanimously on October 9 on the gun crime. The jury acquitted him of lying to purchase the weapon. He faces a maximum penalty of ten years in prison, followed by three years of supervised release, and a fine of up to $250,000. Sentencing will take place in approximately 90 days.
* * * * *
The Hill conviction is the result of an investigation by the Oklahoma City Police Department and the ATF, with assistance from FBI-Oklahoma City Division. It is being prosecuted by Assistant U.S. Attorneys Jacquelyn M. Hutzell and Matthew P. Anderson. The Benton conviction is the result of an investigation by the ATF. It is being prosecuted by Assistant U.S. Attorneys Wilson D. McGarry and Jason M. Harley.
"Operation 922" is the local implementation of the national PSN initiative in the Western District of Oklahoma. Rather than focusing on prosecutions coming from a geographic area, "Operation 922" prioritizes prosecutions on a subject matter plaguing Oklahoma: domestic violence. As part of this initiative, federal prosecutors focus on enforcing 18 U.S.C. § 922, which precludes specific individuals—including not only felons, but also domestic-violence abusers who are subject to a victim protective order or who have been previously convicted of a misdemeanor crime of domestic violence—from possessing firearms or ammunition. In addition, the U.S. Attorney’s Office prosecutes domestic abuse in Indian Country, including assaults, batteries, strangulations, and homicides.
Reference is made to public filings for further information.
Jamaican Citizen Sentenced to 46 Months for Defrauding Elderly Albany CoupleRead the Press Release
ALBANY, NEW YORK – Kevin R. Palmer, age 37, a Jamaican citizen residing in Suwanee, Georgia, was sentenced today to 46 months in prison for stealing more than $320,000 from an elderly Albany couple in a mail-based prize scam.
The announcement was made by United States Attorney Grant C. Jaquith and Joseph Cronin, Inspector in Charge, United States Postal Inspection Service (USPIS), Boston Division.
In March 2019, Palmer pled guilty to 1 count of mail fraud conspiracy and 12 counts of mail fraud. He admitted that in 2017, an elderly couple residing in Albany County was contacted through the mail and by telephone, and was told that they needed to send money in order to obtain an inheritance and tax refund, and claim lottery and sweepstakes prize money.
As instructed, the husband and wife mailed bank checks to addresses in Georgia, including Palmer’s address. They mailed a total of 12 checks; 10 of these checks were payable to Palmer, and all 12 were deposited into bank accounts for which Palmer was a signatory. Palmer admitted that his role in the fraudulent scheme was to receive checks sent by the couple, deposit them, and distribute the proceeds (totaling $321,342) among the participants to the scheme. At sentencing, he admitted to keeping 10 to 15 percent of the fraud proceeds for himself, and sending the remainder to co-conspirators overseas.
Palmer also admitted that in 2010, while residing in New York City, he committed a similar scam, fraudulently obtaining money from victims who were led to falsely believe they had won the lottery or a sweepstakes. Palmer pled guilty to a misdemeanor in Queens County Criminal Court and served a 90-day jail sentence.
In sentencing Palmer, Judge D’Agostino specifically found that he preyed upon vulnerable victims, and knew or reasonably should have known that they were vulnerable. “You are the worst kind of defendant in my eyes,” she told Palmer, because he had been imprisoned for committing a scheme to defraud in 2010, but was undeterred and went on to participate in the 2017 scam.
Judge D’Agostino ordered Palmer to pay restitution in the amount of $321,342. Additionally, as a result of his guilty plea, Palmer’s lawful status in the United States may be revoked, and he may be removed to Jamaica.
This case was investigated by the United States Postal Inspection Service, with assistance from the Georgia Bureau of Investigation, and was prosecuted by Assistant U.S. Attorney Michael Barnett.
Fraudsters routinely use the U.S. Mail to falsely inform victims that they have to pay “fees” or “taxes” in order to receive a tax refund, lottery or sweepstakes prize, or inheritance. These scams often target the elderly. To learn how to detect and avoid these scams, please visit the web site of the Federal Trade Commission, at https://www.consumer.ftc.gov/articles/0199-prize-scams.
Jacksonville Duo Sentenced to Prison for Selling Methamphetamine in Duval, Nassau, and Baker CountiesRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Sabrina Nicole Hoffa (40, Jacksonville) to eight years and four months in federal prison and Jeffrey Allen Mays (38, Jacksonville) to six years and three months in federal prison for distributing methamphetamine. The court also ordered Hoffa and Mays to forfeit $1,265 in U.S. currency, which was proceeds of the offense.
Hoffa and Mays had pleaded guilty on July 11, 2019.
According to court documents, in March 2019, an undercover detective from the Nassau County Sheriff’s Office began purchasing methamphetamine from Hoffa. After two transactions, Hoffa asked the detective to travel to her residence in Jacksonville to conduct future purchases. Hoffa also advised the detective that he should transport the drugs in a locked safe so that law enforcement could not open it without a court order.
The detective, working with the Bureau of Alcohol, Tobacco, Firearms and Explosives, made two additional purchases of methamphetamine from Hoffa at her residence. During one transaction, Hoffa told the detective that she had sold 17 ounces of methamphetamine the previous day for $550 per ounce. During the final transaction, Hoffa and Mays, working together, sold two ounces of methamphetamine to the undercover detective. The Drug Enforcement Administration later determined that the methamphetamine was 98% pure.
On March 27, 2019, Hoffa was arrested in Baker County after she showed up to sell two ounces of methamphetamine to a confidential source who was working with the Baker County Sheriff’s Office. The following day, ATF executed a search warrant at Hoffa and Mays’s home in Jacksonville. Mays was inside of the residence at the time and was arrested. He had two keys to two safes in his possession. Upon searching the safes, ATF located 16.8 grams of 99% pure methamphetamine, MDMA pills, diazepam pills, and other controlled substances.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Nassau County Sheriff’s Office, and the Baker County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Laura Cofer Taylor.
Inmate Led Sex and Drug Trafficking Ring from State Prison CellRead the Press Release
NORFOLK, Va. – A California man pleaded guilty today to organizing and running a methamphetamine trafficking conspiracy and commercial sex ring from his state prison cell.
“Gaines directed a drug and sex trafficking organization from the confines of his state prison cell,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “His crime was brazen, dangerous, manipulative, and inflicted untold mental, emotional, and physical harm on some of our community’s most vulnerable individuals.”
According to court documents, Foster Shane Gaines, 42, was serving an eight-year sentence in the California Department of Corrections and Rehabilitation for prostituting an adult woman. Beginning in approximately 2016, Gaines launched a drug trafficking organization that distributed methamphetamine from a source of supply in California to co-conspirators in the Tidewater area. Using cellphones smuggled into prison, Gaines directed co-conspirators in California, Nevada, and elsewhere to mail parcels of methamphetamine to co-conspirators in Chesapeake, Virginia Beach, Norfolk, Petersburg, and elsewhere. Once the methamphetamine was distributed to customers that Gaines, at times, personally arranged using his contraband cellphones, the co-conspirators returned the proceeds from the sales to Gaines and his confederates by way of prepaid stored value cards or bulk cash sent through the mail.
“Gaines didn’t learn his lesson. Even though he was already serving a prison sentence in California, he brazenly used contraband cell phones to lead a meth and sex trafficking conspiracy while incarcerated,” said Michael K. Lamonea, Assistant Special Agent in Charge of Homeland Security Investigations Norfolk. “Thanks to HSI and our law enforcement partners, we were able to take down this drug and sex trafficking ring and rescue multiple minor victims.”
In addition to his methamphetamine trafficking, Gaines also organized and led a commercial sex ring that at times involved approximately 10 adult females and two juvenile girls. Again using his smuggled cellphones, Gaines recruited women and girls to work as prostitutes by contacting them over various social media platforms. In exchange for 40 to 50 percent of their commercial sex proceeds, Gaines created online advertisements for commercial sex, rented hotel and motel rooms, communicated with customers, organized transportation, and otherwise managed their commercial sex activities. Gaines also arranged for a professional photographer to take sexually suggestive photographs of some women for use in the commercial sex advertisements he created for them, and frequently directed his co-conspirators to provide cocaine, methamphetamine, marijuana, and other drugs to the women and girls prostituting. As with the proceeds from the methamphetamine sales, Gaines directed that the women and girls transmit their commercial sex proceeds to him through bulk cash mailings or prepaid stored value cards.
“The U.S. Postal Inspection Service is determined to protect Postal employees and thwart illegal and dangerous use of the U.S. Mail,” said Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service. “Postal Inspectors will work with our law enforcement partners to pursue anyone, even those already incarcerated, who corrupt the U.S. Postal Service to further their criminal enterprises.”
Gaines pleaded guilty to conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine, commonly known as “ice,” and 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine, and sex trafficking of a child. Each charge carries a mandatory minimum term of 10 years and a maximum of life in prison when sentenced on Jan. 31, 2020. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk, Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, James A. Cervera, Chief of Virginia Beach Police, Col. K.L. Wright, Chief of Chesapeake Police, Larry D. Boone, Chief of Norfolk Police, and Colonel Gary T. Settle, Virginia State Police Superintendent, made the announcement after U.S. District Judge Arenda Wright Allen accepted the plea. Assistant U.S. Attorneys Darryl J. Mitchell and V. Kathleen Dougherty are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-143-1.
Inglewood-based Tax Preparer Convicted in Scheme that Sought More than $5 Million in Fraudulent RefundsRead the Press Release
LOS ANGELES – A tax preparer and ex-California Franchise Tax Board employee was found guilty by a jury today of federal criminal charges accusing him of defrauding the IRS out of millions of dollars by declaring bogus withholdings used to fraudulently claim substantial tax refunds.
Cubby Wayne Williams, 64, of Alhambra, was found guilty of 22 counts of assisting in the preparation of false tax returns for his clients and four counts of subscribing to false tax returns for himself.
United States District Judge Percy Anderson has scheduled a December 16 sentencing hearing, at which time Williams will face a statutory maximum sentence of 78 years in federal prison.
Williams, who owns and operates the Inglewood-based tax services company Williams Financial Network, filed tax returns claiming that his clients had accrued Original Issue Discount (OID) interest income, according to the evidence presented at his four-day trial. OID is a form of interest that accrues over the life of a bond or other debt instrument, but is not payable as it accrues. Financial institutions use IRS Forms 1099-OID to report this accrued, but unpaid, income, and any tax withholdings on it.
Williams fraudulently claimed OID withholdings on 22 tax returns for his clients for the tax years 2013 through 2016, and sought hundreds of thousands in bogus tax refunds. Williams took a cut of many of these refunds often by directing the IRS to deposit a portion into a bank account under Williams’s control.
When his clients complained that their returns had fallen under IRS scrutiny, had been corrected and that they now owed money to the IRS, Williams told them the IRS had made a mistake and they were still entitled to their tax refunds. When the same clients informed Williams they were being audited, he assured them he would represent them before the IRS and resolve any issues, but he ultimately did little other than to submit further fraudulent documentation to the IRS.
According to prosecutors, Williams’ scheme included many false returns in addition to the returns charged in the indictment, through which Williams attempted to fraudulently obtain more than $5 million in tax refunds and, in fact, obtained nearly $3 million for himself and his clients.
This case was investigated by IRS Criminal Investigation.
This matter is being prosecuted by Assistant United States Attorneys James C. Hughes and Ranee A. Katzenstein of the Major Frauds Section.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Oct. 8 was:
Emily Kaye Marie Gourneau, 32, of Poplar, on charges of assault with a dangerous weapon and assault resulting in serious bodily injury. If convicted of the most serious crime, Gourneau faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Gourneau was detained pending further proceedings. The case was investigated by the FBI, Wolf Point Police Department and Fort Peck Tribal law enforcement. Pacer case reference. 19-74.
Allesandro Shalamar Foursouls, 27, of Harlem, on charges of assault by strangulation and assault resulting in substantial bodily injury to a dating partner. If convicted of the most serious crime, Foursouls faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Foursouls was detained pending further proceedings. The case was investigated by the FBI and Fort Belknap Law Enforcement Services. Pacer case reference. 19-73.
Zachary Shawn Kendall, 27, of Fort Belknap Agency, on charges of assault with a dangerous weapon, assault resulting in serious bodily injury and domestic abuse by habitual offender. If convicted of the most serious crime, Kendall faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Kendall was detained pending further proceedings. The case was investigated by the FBI and Fort Belknap Law Enforcement Services. Pacer case reference. 19-75.
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Oct. 8 was:
Wyatt Michael Grayson, 23, of Billings, on charges of possession of a stolen firearm and receipt of a firearm by a person under indictment. If convicted of the most serious crime, Grayson faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Grayson was detained pending further proceedings. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Pacer case reference. 19-117.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Oct. 8 was:
Biranna Nicole Sparling, 32, of Ronan, on charges of possession with intent to distribute methamphetamine. If convicted of the most serious crime, Sparling faces a minimum mandatory 10 years to life in prison, a $10 million fine and five years of supervised release. Sparling was detained pending further proceedings. The case was investigated by the Drug Enforcement Administration. Pacer case reference. 19-46.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Indianapolis Man Sentenced for Multi-State Walgreens RobberiesRead the Press Release
United States Attorney for the District of Nebraska Joe Kelly announced that U.S. District Judge Donovan Frank, District of Minnesota, sentenced Javonn T. Lewis, 24, this week to 6 years, 10 months’ imprisonment for his involvement in two robberies. Lewis previously pleaded guilty to the robberies; one in Omaha and one in Edina, Minnesota. He was also ordered to pay $81,057 in restitution and will be required to serve 3 years of supervised release after his release from prison.
On March 11, 2018, the Walgreens Pharmacy at 1701 South Street, Lincoln, Nebraska was robbed by Lewis. He entered the pharmacy, threatened to kill the pharmacist and then took more than $20,000 worth of controlled substances. He was not immediately caught. A couple weeks later, empty pill bottles from the Walgreens were found on the grounds of a Lincoln hotel and Lewis’s fingerprints were found on one of the bottles.
On July 17, 2018, Lewis robbed a Walgreens Pharmacy in Edina, Minnesota by threatening employees with a replica firearm. Approximately $51,000 of controlled substances were taken.
Lewis was arrested in Minnesota. The FBI was able to link the two cases. The U.S. Attorney’s office for the District of Nebraska coordinated with the U.S. Attorney’s Office from the District of Minnesota for Lewis to enter his guilty plea in Minnesota.
The Lincoln Police Department and the FBI Great Plains Violent Crime Task Force, comprised of FBI agents, Omaha Police Department detectives, Nebraska State Patrol Investigators and Papillion Police Department Detectives were responsible for the investigation.
Hooksett Man Sentenced to Probation and Order to Pay Restitution for Embezzling Labor Union AssetsRead the Press Release
CONCORD - Dennis Robertson, 43, of Hooksett, was sentenced on Thursday in federal court to 3 years of probation and ordered to pay more than $37,000 in restitution for embezzling labor union assets, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, Robertson served as the business manager for a local union based in New Hampshire for approximately 14 years until his dismissal in or around March 2017. He was the only full-time paid officer or employee of the local union, which had approximately 140 to 170 dues-paying members. Robertson’s duties included managing finances, receiving dues, dispatching workers, and handling grievances.
Robertson had access to the organization’s bank accounts. After Robertson left the union in approximately March of 2017, an audit revealed substantial financial discrepancies under Robertson’s tenure. In sum, this review revealed that between August 2015 and February 2017, Robertson wrote and signed unauthorized expense checks to himself and made unauthorized cash withdrawals from the union’s checking account in the approximate amount of $23,519. He additionally embezzled union funds in two other ways: (1) by making unsupported mileage payments to himself of approximately $11,333 and (2) failing to disclose cash dues payments he received from members in the amount of approximately $3,045. When approached by investigators, Robertson admitted to taking the funds in order to fund his addiction to crack cocaine and other narcotics. The Court’s sentence includes restitution to make the local union and its insurer whole for their losses.
Robertson previously pleaded guilty on June 25, 2019.
“Union members put their trust in Mr. Robertson and he betrayed that trust,” said U.S. Attorney Murray. “The defendant improperly appropriated union funds for his personal use. As a result of his self-serving actions, he is now a federal felon.”
“Combatting financial fraud and investigating embezzlement of union funds help safeguard financial integrity in labor unions,” said DOL-OLMS Northeastern Regional Director Andriana Vamvakas. “This is a major priority for the U.S. Department of Labor’s Office of Labor-Management Standards. We will work with the United States Attorney’s Office to identify criminal violations and pursue appropriate legal action whenever anyone puts personal financial gain ahead of the best interests of union members.”
This matter was investigated by the U.S. Department of Labor, Office of Labor Management Standards. The case is being prosecuted by Assistant U.S. Attorney Charles L. Rombeau.
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Henrico Police Athletic League Agrees to Settle ADA ComplaintRead the Press Release
ALEXANDRIA, Va. – The Henrico Police Athletic League, (Henrico PAL), which is a chapter of the National Police Athletic/Activities Leagues, Inc., has agreed to pay $5,000 to one child, provide tuition-free enrollment in its summer camp program to a second child, and take remedial action to resolve two complaints that Henrico PAL failed to modify its policies, practices, and procedures to allow children with diabetes to attend its programs.
The allegations involved two children with Type I diabetes. When Henrico PAL was informed that the children had Type I diabetes and would need help with blood glucose monitoring, insulin administration, and other diabetes care tasks, it allegedly informed one parent that her child could no longer attend its after school program and informed another parent that her child could not attend its summer camp program.
“My office is committed to ensuring that children with disabilities have the same access to child care programs as their peers without disabilities,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Quality child care is essential to allowing parents to work or go to school. We are pleased that Henrico PAL has agreed to take steps to ensure that all of its programs will provide appropriate modifications to its policies, practices, and procedures to allow children with diabetes to attend its programs.”
The Henrico PAL serves over 2,500 youth each year through its after school and summer camp programs throughout Henrico County.
To resolve these complaints, Henrico PAL has agreed to adopt policies that will make its services accessible to children with diabetes; designate an ADA Administrator, who will be responsible for ensuring Henrico PAL’s compliance with the ADA; provide assistance with diabetes care tasks for children who need it; and provide training for its personnel on the ADA’s requirements and child-specific care for each child with diabetes.
The matter was investigated by Assistant U.S. Attorney Steve Gordon, who is the Civil Rights Enforcement Coordinator for the U.S. Attorney’s Office. The civil claims settled by this Americans with Disabilities Act agreement are allegations only; there has been no determination of civil liability.
The Department of Justice has a number of publications available to assist entities in complying with the ADA, including Commonly Asked Questions About Child Care Centers and the Americans with Disabilities Act, and the Justice Department has a toll-free ADA Information Line at 800-514-0301 or 800-514-0383. Additionally, the National Institutes of Health has published a guide entitled Helping the Student with Diabetes Succeed: A Guide for School Personnel. ADA complaints may be filed by email to: [email protected].
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Harrison County man sentenced after he admits to sex offender chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Scotty Lee Morris, of Bridgeport, West Virginia, was sentenced today to 30 months incarceration after he admitted to failing to update his sex offender registration, United States Attorney Bill Powell announced.
Morris, age 48, pled guilty today to one count of “Failure to Update Sex Offender Registration.” Morris failed to update his sex offender registration in October 2018 in Harrison County.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Assistant U.S. Attorney Brandon S. Flower prosecuted the case on behalf of the government. The United States Marshal Service investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Harlem man sentenced to prison for domestic abuseRead the Press Release
GREAT FALLS—A Harlem man was sentenced to 21 months in prison and three years of supervised release on Oct. 10 for conviction on domestic abuse charges, U.S. Attorney Kurt Alme said.
Jerel Edgar Johnson, 35, of Harlem, pleaded guilty in June to domestic abuse by a habitual offender.
U.S. District Judge Brian M. Morris presided.
The prosecution said in court records that Johnson assaulted the victim twice in June 2018 near Snake Butte on the Fort Belknap Indian Reservation. Johnson had been convicted of at least two separate prior domestic assaults in tribal court. The victim sought medical treatment for her injuries and reported the abuse. The victim reported that Johnson had hit, kneed, slapped and choked her.
Assistant U.S. Attorney Paulette Stewart prosecuted the case, which was investigated by the Fort Belknap Police Department and the FBI.
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Glenwood Postal Service Employee Pleads Guilty to Stealing More Than $100,000 in Government BenefitsRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of LISA ANN SCHAFER, 57, for stealing $108,490.47 in federal disability benefits. SCHAFER, who was charged via felony information on September 24, 2019, entered her guilty plea before Judge Eric C. Tostrud in U.S. District Court in St. Paul, Minnesota.
According to the defendant’s guilty plea and documents filed in court, from September 18, 2015, through May 3, 2019, SCHAFER, at the time an employee of the United States Postal Service, knowingly claimed Federal Employees’ Compensation Act (FECA) benefits by falsely asserting that a work-related injury prevented her from working in a full-time capacity. SCHAFER reported to her doctor that her medical condition required her to rest most of the day and that she could tolerate only sedentary work. SCHAFER’s doctor accordingly limited her to no more than two hours of office work a day, enabling SCHAFER to collect FECA benefits due to her purported work-related injury. However, during this time period, SCHAFER was observed participating in 30-40 dog-agility competitions where she is seen running, bending quickly at the waist, and using large arm movements to navigate dogs through a variety of exercises. In total, SCHAFER stole $108,490.47 in FECA benefits that she knew she was not entitled to receive.
Special Agent-in-Charge John D. Masters, Western Area Field Office, USPS Office of the Inspector General said, “The American public trusts that U.S. Postal Service employees will obey the law. When an employee of the Postal Service violates that trust, the Postal Service Office of Inspector General (USPS OIG) investigates those matters. Today’s plea sends a clear message that workers' compensation fraud is a federal crime, which carries serious consequences. The USPS OIG, along the U.S. Attorney's Office, remain committed to safeguarding the integrity of the workers’ compensation program and ensuring the accountability and integrity of U.S. Postal Service employees.”
This case is the result of an investigation conducted by the United States Postal Service, Office of Inspector General (USPS-OIG).
Assistant U.S. Attorney Jordan L. Sing is prosecuting the case.
Defendant Information:
LISA ANN SCHAFER, 57
Glenwood, Minn.
Convicted:
- Theft of government funds, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Georgia Man Pleads Guilty to Operating Ponzi Scheme on University of Georgia’s CampusRead the Press Release
A former University of Georgia undergraduate student pleaded guilty today for his role in a $1 million Ponzi scheme that targeted investors, including his fellow students.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Charles Peeler of the Middle District of Georgia and Special Agent in Charge J.C. Hacker of the FBI’s Athens, Georgia Field Office made the announcement.
Syed Arham Arbab, 22, of Augusta, Georgia, pleaded guilty to a one-count information charging him with securities fraud before U.S. District Judge C. Ashley Royal of the Middle District of Georgia. Sentencing is scheduled for Jan. 8, 2020, before Judge Royal.
As part of his guilty plea, Arbab admitted that from May 2018 through May 2019, while enrolled as an undergraduate student at the University of Georgia campus in Athens, Georgia, he solicited investors, many of whom were his fellow students, to invest in his entities, Artis Proficio Capital Management and Artis Proficio Capital Investments (collectively, APC), which he told investors were “hedge funds.” Arbab admitted that he convinced approximately 117 investors in Georgia and other states to invest funds with him and APC.
Arbab admitted that he made a number of misrepresentations in order to persuade victims to invest with him, including misrepresenting the funds’ returns, the number of investors, the total funds invested and the nature of the investment plays being made. He also admitted fabricating account statements. Victims invested approximately $1 million with Arbab in the course of his scheme, with Arbab falsely promising rates of returns as high as 22 percent or 56 percent, when his overall returns were nowhere near these amounts. Arbab offered some investors a seemingly risk-free “guarantee” on the first $15,000 invested, and the majority of investors, especially those who were students or younger professionals, invested less than this amount, believing that even if Arbab’s investment choices proved unsound or the market behaved unpredictably, they would still be paid back their entire principal investment.
Arbab admitted that knew he did not have the liquid capital to make good on these guarantees when he made them, but he did not disclose this to his investors. Further, when Arbab learned that some prospective investors were UGA football fans, he told them that a famous NFL player and UGA alumnus was an investor in the fund, when in fact the football player had never invested with APC. Arbab also misrepresented that he was an MBA candidate at UGA’s Terry College of Business. In fact, ARBAB had applied to and been rejected by UGA’s MBA program and was operating the fund primarily from his fraternity house as an undergraduate.
Arbab further admitted that he spent investor funds on personal expenses, including clothing, shoes, retail purchases, fine dining, alcoholic beverages, adult entertainment and interstate travel, including spending thousands of dollars gambling during three trips to Las Vegas in 2018 and 2019.
The FBI investigated the case. Trial Attorney Katie Rasor and Assistant Chief Justin Weitz of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Lyndie Freeman of the Middle District of Georgia are prosecuting the case. The Department of Justice appreciates the substantial assistance of the Enforcement Division of the Securities and Exchange Commission (SEC).
Arbab is also the subject of a previously filed civil complaint by the SEC alleging a Ponzi scheme and offering fraud.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
Fugitive Returned from Colombia to Face Drug ChargesRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that BERNAVE MILLAN-RASCON, 41, of Mexico, was extradited to the United States from Colombia, South America to face charges of Conspiracy to distribute and possess with the intent to distribute five kilograms or more of cocaine and Possess with the intent to distribute five kilograms or more of cocaine. A federal
indictment charging MILLAN-RASCON was returned on October 18, 2018.According to publicly filed
documents in federal court, it is alleged that MILLAN-RASCON and others have been involved in the international trafficking of cocaine from Mexico into various parts of the United States, including locations in the Eastern District of North Carolina. Specifically, it is alleged that, from Mexico, MILLAN-RASCON had been directing the smuggling of kilogram quantities of cocaine into the United States using hidden areas of trucks.According to publicly filed documents, in December 2016, members of the Raleigh District Office (DO) High Intensity Drug Trafficking Area (HIDTA) Group conducted an investigation resulting in the seizure of approximately 16 kilograms of cocaine, approximately $140,000 United States currency and two firearms. Information provided by the DEA Dallas Field Division and DEA Houston Field Division, led the Raleigh DO HIDTA Group to begin a communication intercept investigation, as authorized by a federal district judge.
Based upon the investigation, it is alleged in publicly filed documents that in December 2016, MILLAN-RASCON arranged with Carlos Miranda Lopez for the delivery of cocaine to the Eastern North Carolina – specifically, to the residence of Malcolm Hird. Law enforcement observed a flatbed trailer delivered to Hird’s residence and continued surveillance on the trailer. Law enforcement secured the area and obtained federal search warrants for the trailer, Hird’s residence, and Lopez’ residence. The subsequent searches resulted in the recovery of approximately 16 kilograms of cocaine on Hird’s premises including 5 kilograms of cocaine still secreted in the axle of the trailer. A search of Lopez’ residence resulted in the seizure of approximately $140,000 in currency and two firearms, an SKS 7.62 rifle, and .45 caliber Springfield 1911 semi-automatic handgun.
Lopez pled guilty on March 20, 2017 to conspiracy to distribute and possess with intent to distribute cocaine and Possession of a firearm in furtherance of a drug trafficking crime and sentenced on September 7, 2017 to 120 months of imprisonment.
Hird pled guilty on March 20, 2017 to conspiracy to distribute and possess with intent to distribute cocaine and sentenced on September 7, 2017 to 120 months of imprisonment.
The charges and allegations contained in the indictment, and associated publicly filed documents, are merely accusations. MILLAN-RASCON is presumed innocent unless and until proven guilty in a court of law.
This prosecution is part of an extensive investigation by the United States Attorney’s Office’s 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.
The Drug Enforcement Administration investigated this case and the United States Marshal’s Service assisted with the extradition. The Justice Department’s Office of International Affairs of the Department’s Criminal Division provided significant support in securing the defendant’s extradition from Colombia. Assistant United States Attorney Scott Lemmon is prosecuting this case on behalf of the United States.
Frankfort Man Pleads Guilty to Trafficking FentanylRead the Press Release
LEXINGTON, Ky. – Leonard Glover, 32, of Frankfort, pleaded guilty in federal court Thursday, before U.S. District Judge Gregory Van Tatenhove, to distribution of more than 10 grams of acetylfentanyl, a fentanyl analogue.
As part of his guilty plea, Glover admitted that, on June 11, he sold 13 grams of acetylfentanyl to a confidential informant for $900. He was indicted in May 2019.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; D. Dan Dodds, Special Agent in Charge of the DEA; and Charles Adams, Chief of the Frankfort Police Department, jointly announced the guilty plea.
The investigation was conducted by the U.S. Drug Enforcement Administration and the Frankfort Police Department. The United States was represented by Assistant U.S. Attorney David Kiebler.
Glover is scheduled to be sentenced on Jan. 23, 2020 in Frankfort, Kentucky. He faces up to 40 years in prison and a maximum fine of $5 million. However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
This case was prosecuted as part of the Organized Crime and Drug Enforcement Task Force’s (OCDETF) Operation Synthetic Opioid Surge (SOS), a Department of Justice initiative designed to target trafficking of dangerous synthetic opioids.
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Four admit to roles in oxycodone distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Three Detroit, Michigan residents and one West Virginia woman have admitted to their roles in a drug distribution operation, U.S. Attorney Bill Powell announced.
Konshawntas Boyd, age 39, of Detroit, pled guilty to one count of “Maintaining a Drug-Involved Premises.” Boyd, a nurse practitioner, admitted that she had an apartment located in Barrington North Apartments in Morgantown, West Virginia, for the purpose of distributing oxycodone from September 2016 to March 2017.
Devante Maddox, age 27, and Michael Wesley, also known as “Black” and “Big Flea,” age 47, each pled guilty to one count of “Distribution of Oxycodone.” Maddox and Wesley admitted to selling oxycodone in January 2017 in Monongalia County.
Tiffany Edwards, age 37, of Westover, West Virginia, pled guilty to one count of “Money Laundering Conspiracy.” Edwards admitted to handling financial transactions that involved money made from the distribution of oxycodone from the summer of 2013 to June 2017 in Monongalia County and elsewhere.
Maddox and Wesley each face up to 20 years incarceration and a fine of up to $1,000,000. Boyd and Edwards each face 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 Zelda E. Wesley is prosecuting the cases on behalf of the government. The Mon Metro Drug and Violent Crime Drug Task Force, a HIDTA-funded initiative, led the investigation. The Task Force consists of the U.S. Drug Enforcement Administration. the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, Monongalia County Sheriff’s Office, Morgantown Police Department, the Star City Police Department, the West Virginia State Police, the West Virginia University Police Department, the Granville Police Department, and the Monongalia County Prosecuting Attorney’s Office.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Michael John Aloi presided.
Former Vice President of South Florida Tech Support Scam Sentenced to Ten and A Half Years in PrisonRead the Press Release
The former vice president and sales manager of a fraudulent tech support business known as Client
Care Experts, LLC (CCE) will be spending the next 10½ years in federal prison, U.S. Attorney Steven
D. Weinhoeft announced today. Grant Clark Wasik, 36, of Oakland Park, Florida, was sentenced yesterday in federal district court in East St. Louis, Illinois, to 125 months in prison for conspiracy to commit wire fraud. The court also ordered Wasik to pay over $10.5 million in restitution to the victims of the fraud scheme.Wasik was the vice president and sales manager of CCE, formerly known as First Choice Tech Support, which was based in Boynton Beach, Florida. The company also operated a similar tech support business called ABC Repair Tech (ABC), located in Costa Rica.
According to court documents, the defendants purchased pop-up advertisements that would appear suddenly on a person’s computer screen. The pop-ups were made to look like system warnings and falsely informed the victims that serious problems, such as viruses or malware, had been detected on their computers. Often, the pop-ups caused the person’s internet browser to freeze up and stop responding. The pop-ups also typically warned the victims not to shut down their computers or else they would lose all their data. Instead, the ads directed them to call a toll-free number, where they were connected to sales representatives who continued the fraud.
The sales representatives would convince the victims to grant them remote access to their computers, where normal computer functions and routine processes were highlighted as evidence of serious computer problems. Victims were never told that the pop-ups that had hijacked their computers were just advertisements purchased by the tech support company, or that in most instances they could make the pop-ups go away simply by rebooting their computers. Instead, they were sold remote “tune-ups” for $250 and anti-virus protection software for another $400. If victims balked at the steep prices, the sales representatives would offer them a discount for being a senior citizen or a military veteran or something else.
From 2013-2016, the two companies – CCE and ABC – combined to defraud more than 40,000 people.
Victims were located in all 50 States, the District of Columbia, Puerto Rico, several
U.S. territories, all 10 Canadian provinces, the United Kingdom, and several other foreign countries. At least 57 victims of the scams were residents of the Southern District of Illinois, representing 22 of the district’s 38 counties, including St. Clair and Madison. All told, the two companies took in over $25 million.Wasik pled guilty to count one of a 14-count superseding indictment earlier this year. Two former owners of CCE, Michael Austin Seward, 32, of Deerfield Beach, Florida, and Kevin James McCormick, 46, of Delray Beach, Florida, also pled guilty to their role in the conspiracy and are set to be sentenced on November 18. The Honorable Joe Billy McDade from the Central District of Illinois, who presided over Wasik’s case, will also conduct the sentencings of Seward and McCormick.
The former CEO of ABC, Michael Cary Lawing, is due to be sentenced on October 15 before the
Honorable Nancy J. Rosenstengel, Chief United States District Judge for the Southern District of
Illinois. Lawing, 34, of Lincolnton, North Carolina, pled guilty to a felony information late last year. Since April 2017, 14 other employees of CCE and ABC have also pleaded guilty to federal fraud violations in the Southern District of Illinois:• Joseph Ralph Aievoli, IV, 26, of Boynton Beach, FL – Salesperson at CCE
• Cory Steven Bachman, 26, of Boynton Beach, FL – Salesperson at CCE
• Andrew Douglas Broad, 27, of Boynton Beach, FL – Director of Training at CCE
• Ryan Stocker Carr, 24, of Mount Laurel, NJ – Team Leader at CCE
• Joshua Dennis Cortez, 38, of Lake Worth, FL – Director of Training at CCE
• Erica Marie Crowell, 30, of Maple Shade, NJ – Salesperson at CCE
• Nicholas James Davidson, 27, of Boynton Beach, FL – Salesperson at CCE
• Patrick M. Dougherty, 36, of Boynton Beach, FL – Salesperson at CCE
• Tatum Elyse Espenshade, 27, of West Palm Beach, FL – Salesperson at CCE
• Eric M. Iannaccone, 33, of Monroe Township, NJ – Sales Manager at CCE
• Anthony Vincent Ludena, 30, of Boca Raton, FL – Salesperson at CCE
• Robert Thomas McCart, 33, of Boynton Beach, FL – Team Leader at CCE
• Timothy James Miller, II, 28, of Schwenksville, PA – Salesperson at CCE
• Jonathan Matthew Richardson, 28, of Lake Worth, FL – Salesperson at CCE
• Kyle Evan Swinson, 27, of Boynton Beach, FL – Team Leader at ABC/CCEBecause the crimes allegedly took place in connection with telemarketing and victimized 10 or more persons over the age of 55, the maximum punishment in each case is 30 years imprisonment. The defendants could also be ordered to serve up to five years of supervised release and pay a fine of up to $250,000. Under federal law, restitution to identified victims is mandatory.Ten of these additional defendants have been sentenced already:
Date Defendant Prison Sentence Restitution Mar. 8, 2018 Ryan Carr 12 months + 1 day $20,384.36 May 7, 2018 Joshua Cortez 18 months $3,034.00 June 8, 2018 Patrick Dougherty 12 months + 1 day $240,966.94 June 14, 2018 Anthony Ludena 12 months + 1 day $176,692.26 June 29, 2018 Nicholas Davidson 5 years probation $181,808.40 July 26, 2018 Timothy Miller 5 years probation + 200 hours community service $127,042.06 Aug. 3, 2018 Tatum Espenshade 1 day + 18 months home detention $132,683.68 Sept. 11, 2018 Andrew Broad 12 months + 1 day $55,238.28 Sept. 20, 2018 Jonathan Richardson 12 months + 1 day $78,638.99 Oct. 4, 2018 Corey Bachman 1 day $156,806.25These cases are part of an ongoing investigation by the St. Louis Field Office of the Chicago
Division of the United States Postal Inspection Service. The cases are being prosecuted by
Assistant United States Attorneys Scott A. Verseman, Ranley R. Killian, and Nathan D. Stump.The Florida Attorney General’s Office raided CCE in June 2016 and has been cooperating with the federal investigation, in addition to bringing its own civil enforcement action against CCE under
Florida state law.
Some consumers who were victimized by ABC or CCE / First Choice Tech Support have received additional fraudulent calls. These calls typically come from companies claiming either
(a) that the technical support the victims purchased has been transferred to them and additional funds are now needed; or (b) that they can help the victims obtain a refund. Victims should be advised that no companies have been authorized to provide them with any tech support services on behalf of ABC or CCE / First Choice Tech Support, or to provide them with a refund for any previous purchases.
Former Student Admits Running Ponzi Scheme from Fraternity House at the University of GeorgiaRead the Press Release
Macon, GA-- A former University of Georgia undergraduate student admitted to operating a Ponzi scheme which collected approximately $1 million in investments and defrauded 117 investors, including fellow students and their families. Syed Arham Arbab, 22, of Augusta, pleaded guilty on Friday, October 11, 2019 to a one-count information charging him with Securities Fraud before United States District Judge C. Ashley Royal. In his guilty plea, Mr. Arbab admitted he spent investor funds on personal expenses, including clothing, shoes, retail purchases, fine dining, alcoholic beverages, adult entertainment and interstate travel, including spending thousands of dollars gambling during three trips to Las Vegas in 2018. Mr. Arbab faces a maximum sentence of five years in prison, a $10,000 fine, three years supervised release and is subject to any restitution ordered by the Court. He will be sentenced on January 8, 2020 at 9:30 a.m. at the Federal Courthouse in Athens. There is no parole in the federal system.
“The defendant engaged in a pattern of deceit to gain the trust of unwitting investors who gave him their hard-earned money for what they believed was a sound investment. Instead of investing the victims’ money, the defendant funded a lavish lifestyle,” said Charlie Peeler, the U.S. Attorney for the Middle District of Georgia. “Our office is committed to protecting investors who are duped by fraudsters. I want to thank the FBI and the SEC for their efforts working together to bring justice for the victims.”
“Unfortunately this case is a stark reminder to investors to be very careful where they entrust their hard earned money, and always be skeptical of offers that sound too good to be true,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The victims of this scheme, many of them students, will never recover their losses, but can rest assured that Arbab’s greed will not go unpunished.”
Mr. Arbab admitted that from May 2018 through May 2019, while enrolled as an undergraduate student at the University of Georgia, he solicited investors, many of whom were his fellow students, to invest in his entities, Artis Proficio Capital Management and Artis Proficio Capital Investments (collectively “APC”), which he told investors were “hedge funds.” Arbab admitted that he convinced approximately 117 investors in Georgia and other states to invest funds with him and APC.
Mr. Arbab made a number of misrepresentations in order to persuade victims to invest with him. The defendant also fabricated account statements, misrepresented the fund’s returns, the number of investors, the total funds invested and the nature of the investment plays being made. Victims invested approximately $1 million with Mr. Arbab in the course of his scheme, with Mr. Arbab falsely promising rates of returns as high as 22% or 56%, when his overall returns were nowhere near these amounts. Mr. Arbab offered some investors a seemingly risk-free “guarantee” on the first $15,000 invested, and the majority of investors, especially those who were students or younger professionals, invested less than this amount, believing that even if Mr. Arbab’s investment choices proved unsound or the market behaved unpredictably, they would still be paid back their entire principal investment. Mr. Arbab admitted that knew he did not have the liquid capital to make good on these guarantees when he made them, but he did not disclose this to his investors. Further, when Mr. Arbab learned that some prospective investors were UGA football fans, he told them a famous NFL player and UGA alumnus was an investor in the fund, when in fact the football player had never invested with APC. Mr. Arbab also misrepresented that he was an MBA candidate at UGA’s Terry College of Business; in fact, he had applied to and been rejected by UGA’s MBA program and was operating the fund primarily from his fraternity house as an undergraduate.
Trial Attorney Katie Rasor, Assistant Chief Justin Weitz of the Criminal Division’s Fraud Section, and Assistant U.S. Attorney Lyndie Freeman of the Middle District of Georgia are prosecuting the case for the Government. The criminal investigation was conducted by the Federal Bureau of Investigation. Mr. Arbab is also the subject of a previously filed civil complaint by the Securities and Exchange Commission alleging a Ponzi scheme and offering fraud; the May 31, 2019, civil action is filed at 3:19-CV-00055. The Department of Justice appreciates the substantial assistance of the Enforcement Division of the Securities and Exchange Commission.
Individuals who believe that they may be a victim in this case, and are not receiving notifications, please contact the Fraud Section’s Victim Witness Specialist by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing [email protected].
Questions can be directed to Pamela Lightsey, Public Information Officer for the Middle District of Georgia, at (478) 621-2603, or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Former PCAOB Employee Sentenced for Scheme to Steal Confidential PCAOB InformationRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that JEFFREY WADA, a former employee of the Public Company Accounting Oversight Board (the “PCAOB”), was sentenced today to nine months in prison for participating in a scheme to defraud the PCAOB by obtaining, disseminating, and using confidential lists of which KPMG audits the PCAOB would be reviewing so that KPMG could improve its performance in PCAOB inspections. Wada was convicted of wire fraud charges in March 2019 following a month-long trial before U.S. District Judge J. Paul Oetken, who imposed today’s sentence.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Jeffrey Wada violated not just the terms of his employment with the PCAOB but also the law when he provided confidential information about upcoming audit reviews to co-conspirators at KPMG. Wada hoped to secure a job at KPMG. What he got was a nine-month prison sentence.”
According to the evidence presented at trial:
The PCAOB is a nonprofit corporation overseen by the SEC that inspects the audit work performed by registered accounting firms (“Auditors”) with respect to the financial statements of publicly traded companies (“Issuers”). The PCAOB inspects the largest U.S. accounting firms on an annual basis. As part of the inspection process, the PCAOB chooses a selection of audits performed by the accounting firm for a closer review, commonly referred to as an inspection. Until shortly before an inspection occurs, the PCAOB does not disclose which audits are being inspected, or the focus areas for those inspections, because it wants to ensure that an Auditor does not perform additional work or modify its work papers in anticipation of an inspection. Following the completion of an inspection, the PCAOB issues an Inspection Report containing any negative findings or “comments” with respect to both the specific audits reviewed and the accounting firm more generally.
KPMG is one of the largest accounting firms in the world. In recent years, KPMG fared poorly in PCAOB inspections and in 2014 received approximately twice as many comments as its competitor firms. By at least in or about 2015, KPMG was engaged in efforts to improve its performance in PCAOB inspections, including but not limited to recruiting and hiring former PCAOB personnel.
KPMG’s efforts to improve inspection results, however, were not limited to legitimate means. Instead, between 2015 and 2017, KPMG executives worked to illicitly acquire valuable confidential PCAOB information concerning which KPMG audits would be inspected in an effort to game the system and improve inspection results.
WADA was an Inspections Leader at the PCAOB, who was obligated to keep confidential the PCAOB’s nonpublic information. WADA joined the conspiracy in the fall of 2015 and began passing confidential information to KPMG. In March 2016, WADA provided Cynthia Holder, a KPMG employee, with confidential information on certain of the PCAOB’s 2016 inspection selections. Holder, in turn, provided the 2016 inspection selections to Sweet, who passed them to KPMG executives David Middendorf, Thomas Whittle, and David Britt. Middendorf, Whittle, Sweet, and Britt then agreed to launch a stealth program to “re-review” the audits that had been selected, and agreed to keep their stealth re-reviews within their “circle of trust.” In order to cover up their illicit conduct, other KPMG engagement partners were given a false explanation for the re-reviews. The stealth re-review program allowed KPMG to strengthen its work papers, and, in some cases, identify deficiencies or perform new audit work that had not been done during the live audit.
In January 2017, WADA, who had been passed over for promotion at the PCAOB, again stole valuable confidential PCAOB information, misappropriating a preliminary list of confidential 2017 inspection selections for KPMG audits and passing it on to Holder, referring to it in a voicemail as the “grocery list.” At the same time, WADA provided Holder with his resume and sought her assistance in helping him to acquire employment at KPMG. Sweet shared the preliminary inspection selections provided by WADA with Whittle, who in turn shared it with Middendorf, who approved its use to improve the audits on the list.
In February 2017, WADA texted Holder saying “I have the grocery list. . . . All the things you’ll need for the year.” WADA then spoke to Holder and provided her with the full confidential 2017 final inspection selections. Holder again shared the stolen information with Sweet, who shared it with Middendorf, Whittle, and Britt, so that it could be acted upon to improve the audits on the list.
In 2017, a KPMG partner who received early notice that her engagement was on the confidential 2017 inspection list reported the matter to her supervisor. The matter was ultimately reported to KPMG’s Office of General Counsel.
* * *
In addition to a prison sentence, WADA, 55, of Tustin, California, was sentenced to three years of supervised release. Restitution amount was deferred to a later date.
Mr. Berman praised the investigative work of the United States Postal Inspection Service and also thanked the Securities and Exchange Commission.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Rebecca Mermelstein, Jordan Estes, Margaret Graham, and Martin Bell are in charge of the prosecution.
Former Oshkosh Resident Charged in Federal Court for Walking from Indianapolis Suburb to Wisconsin to Engage in Sexual Activity with 14 Year-oldRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that Tommy Lee Jenkins (age: 32), recently a resident of Oshkosh, Wisconsin, was charged via a criminal complaint following his October 10, 2019, arrest by local and federal authorities.
According to the complaint and supporting affidavit, starting on October 1, 2019, Jenkins, who recently moved from Oshkosh to Whitestown, Indiana, began exchanging instant messages with “Kylee” whom he believed to be a 14 year-old girl living in Neenah, Wisconsin with her mother. Jenkins began demanding sexually explicit photographs from “Kylee” and making plans to engage in sexual activity with the minor. When his numerous requests for “Kylee” to join him in Indiana were rebuffed, Jenkins began walking the 351-mile trek from Whitestown, Indiana to Neenah, Wisconsin. Along the way, Jenkins continued to engage “Kylee” in sexually explicit conversations and updated her as to his current location.
“Kylee” was, in fact, a Winnebago County Sheriff’s Deputy assigned to the Internet Crimes Against Children (“ICAC”) Task Force. Upon his arrival in Winnebago County, sheriff’s deputies and a Special Agent with the Federal Bureau of Investigation placed Jenkins under arrest.
Jenkins faces charges of using a computer to attempt to persuade, induce, or entice a minor to engage in unlawful sexual activity, in violation of Title 18, United States Code, Section 2422(b). He faces a mandatory minimum sentence of 10 years and up to a lifetime of imprisonment if convicted of that charge.
“Our nation faces an epidemic of child sexual abuse, with the Internet making it too easy for predators to communicate with children across the country,” said United States Attorney Krueger. “The Justice Department is committed to working with federal, state, and local law enforcement agencies to prosecute child sexual abuse aggressively.”
This case was investigated by the Winnebago County Sheriff’s Office with the assistance of the Green Bay office of the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
A criminal complaint is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood, marshals, federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former Bordentown Township Police Chief Will Be Retried on Hate Crime and Use of Excessive Force ChargesRead the Press Release
Defendant Previously Convicted of Lying to FBI
CAMDEN, N.J – U.S. Attorney Craig Carpenito announced today that his office will retry the retired chief of the Bordentown Township Police Department on hate crime and civil rights charges after a jury deadlocked on those counts at his trial. The defendant was convicted by the same jury on Oct. 9, 2019, of lying to FBI agents who questioned him about violating an 18-year-old man’s civil rights during an arrest.
The jury deliberated eight days in the trial of Frank M. Nucera Jr., 62, of Bordentown, New Jersey, before announcing that they could not reach a unanimous decision on Counts One and Two – hate crime assault and deprivation of civil rights under color of law, respectively. U.S. District Judge Robert B. Kugler declared a mistrial on those counts. U.S. Attorney Carpenito thanked the jury for its efforts during deliberations.
Defense counsel: Rocco C. Cipparone Jr. Esq., Haddon Heights, New Jersey
Firearms and Narcotics Trafficker Sentenced to PrisonRead the Press Release
RICHMOND, Va. – A Petersburg man was sentenced today to 10 years in prison for trafficking narcotics and firearms.
“Armon Lee trafficked 21 firearms, including some that had obliterated serial numbers, to a felon he knew was prohibited from possessing them,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Lee knew that the guns were being sold for a nefarious purpose, and obliterated a number of serial numbers in an attempt to impede law enforcement’s ability to trace the firearms back to him. This successful investigation and prosecution is a testament to our terrific partnership with the ATF, and a reflection of our commitment to aggressively pursuing firearms traffickers in the Eastern District.”
According to court documents, Armon Lee, 26, was charged in a criminal indictment with seventeen counts of sale or disposal of firearms to a convicted felon and with distribution of “crack” cocaine between May 2018 and August 2018. In all, Lee trafficked 21 firearms to a felon who he knew was prohibited from possessing firearms. Four of the firearms that Lee sold had been previously reported stolen; seven of the firearms Lee trafficked were high capacity firearms in that each was capable of holding more than 15 rounds of ammunition; two of the firearms Lee sold had their serial numbers obliterated. The criminal indictment also charged Lee with four counts of distribution or aiding and abetting in the distribution of “crack” cocaine. In July 2018, Lee pleaded guilty to three of the counts set forth in the indictment, and was held responsible not only for illegally trafficking 21 firearms, but also for the distribution of more than 50 grams of cocaine base, commonly known as “crack.”
“Lee thought he could operate under the radar in Petersburg and evade detection. He was wrong,” said Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division. “ATF is putting all criminals engaged in firearms and narcotics trafficking on notice that we will continue to work with other law enforcement agencies, such as the Petersburg Police Department, to see to it that these dangerous individuals are brought to justice and held accountable under the law for their crimes. No longer will they threaten the safety and wellbeing of innocent citizens.”
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, and Kenneth A. Miller, Director of Public Safety, Petersburg Bureau of Police, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson. Assistant U.S. Attorney Angela Mastandrea-Miller prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:19-cr-037.
Final Defendant Sentenced to Federal Prison for Drug and Firearm Offenses in Connection with the Murder of Two Midlanders in July 2015Read the Press Release
In Midland today, a federal judge sentenced 25-year-old Sean Blake Jobe of Midland, to 30 years in federal prison on firearm and drug trafficking charges in connection with the murder of two Midland residents in July 2015, announced U.S. Attorney John F. Bash, Midland Police Chief Seth Herman and Drug Enforcement Administration (DEA) Special Agent in Charge Kyle W. Williamson, El Paso Division.
In addition to the prison term, U.S. District Judge David Counts ordered that Jobe be placed on supervised release for a period of five years after completing his prison term.
On January 25, 2019, Jobe pleaded guilty to one count of conspiracy to possess with intent to distribute marijuana; one count of discharging a firearm in furtherance of a drug trafficking crime; and, one count of murder resulting from the discharge of a firearm during and in relation to a drug trafficking crime.
By pleading guilty, Jobe admitted that on July 17, 2015, he and his co-defendants—Ryan David Green and Trace Ryan Roland—conspired to murder a Midland man because of drug money the man owed to Roland.
According to court records, in the early morning hours of July 17, 2015, Green and Jobe went to a home in Midland and shot and killed the man and his girlfriend, who were living in a shed behind the home. Then they set fire to the shed and burned the victims beyond recognition.
Earlier this year, both Green and Roland pleaded guilty to the same three federal charges. Yesterday, Judge Counts sentenced Green to 35 years in federal prison followed by five years of supervised release. On September 5, 2019, Judge Counts sentenced Roland to 35 years in federal prison followed by five years of supervised release.
“This was a horrific double-murder case, and I’m glad we achieved some measure of justice for the victims. It’s a reminder that although there’s a lot of good in this world, there’s a lot of evil too,” stated U.S. Attorney Bash.
“The positive aspects of this collaborative effort between local and federal agencies can not overshadow the tragic effect that illicit narcotic trafficking and use have on communities. Not only have the lives of young adults and their families been forever altered in the most tragic of ways, but the wellbeing of an entire community unsettled because of greed and ego,” stated Midland Police Chief Herman. “The Midland Police Department wishes to extend our sincere appreciation to the DEA and the United States Attorney’s Office for their partnership and professionalism throughout this extensive endeavor.”
“The sentencing of the defendants in this investigation sends a strong and unified message that these crimes will not be tolerated in our community and those who commit these offenses will be brought to justice,” stated DEA Special Agent in Charge Williamson. “DEA and their federal, state and local law enforcement partners will continue to work together to keep our community safe.”
The Midland Police Department and the Drug Enforcement Administration investigated this case. Assistant U.S. Attorneys Brandi Young and Glenn Harwood prosecuted this case on behalf of the government.
Federal Jury Convicts Sioux Falls Man of Distribution of Fentanyl Resulting in Serious Bodily Injury and Conspiracy to Distribute a Controlled SubstanceRead the Press Release
United States Attorney Ron Parsons announced that Michael Wayne Cooper, age 57, of Sioux Falls, South Dakota, was found guilty by a federal jury of one count of Distribution of a Controlled Substance Resulting in Serious Bodily Injury and one count of Conspiracy to Distribute a Controlled Substance. U.S. District Judge Karen E. Schreier presided over the four-day trial held at the federal courthouse in downtown Sioux Falls.
The convictions carry with them a mandatory minimum sentence of 20 years in federal prison, up to a maximum of life, and/or a $1 million to $10 million fine, a minimum of five years up to life of supervised release, and a $200 special assessment to the Federal Crime Victims Fund.
“Those who seek to profit from the suffering of others by dealing drugs in South Dakota will be held accountable for the damage they inflict,” said U.S. Attorney Parsons.
According to the evidence presented at trial, Cooper knowingly and intentionally distributed a controlled substance, namely fentanyl, resulting in the serious bodily injury of a victim in Sioux Falls, who overdosed on the fentanyl sold to him. The overdose victim was revived by first responders with two doses of Naloxone, commonly known as Narcan, which prevented his death.
The evidence at trial further demonstrated that Cooper had been involved in an ongoing conspiracy in Sioux Falls to illegally distribute hydromorphone (commonly known as Dilaudid), a Schedule II controlled substance, from about the beginning of 2015 through August 2018.
“The increasing prevalence of killer opioids like fentanyl, which we have found in everything from heroin to synthetic marijuana products and expertly manufactured imitation prescription pills, is an imminent threat to human life,” said U.S. Attorney Parsons. “Anyone who illegally obtains drugs cannot possibly know what the substance they receive actually contains. We must warn and educate everyone, especially our children, that no drug offered to you by friends, acquaintances, or dealers can be trusted. You are literally playing Russian roulette with your life when you ingest something.”
This case was investigated by the Drug Enforcement Administration, Sioux Falls Police Department, and Sioux Falls Area Drug Task Force. Special Assistant U.S. Attorney Tamara Nash and Assistant U.S. Attorney Connie Larson are prosecuting the case.
Following the jury’s verdict, Cooper was immediately remanded to the custody of the U.S. Marshals Service. After a presentence investigation, Cooper will be sentenced on December 30, 2019.
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
United States Attorney Trent Shores announced today the results of the October 2019 Federal Grand Jury B.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Michael Lee Davis. Possession of Firearms by an Unlawful User of a Controlled Substance (Counts 1 and 3); False Statements in Connection with the Acquisition of Firearms (Counts 2 and 4). Davis, 25, of Henryetta, is charged with knowing that he was an unlawful drug user in possession of a Sig Sauer, 5.56mm caliber semi-automatic rifle and a Kimber USA .45 ACP caliber semi-automatic pistol. He is further charged with making a false statement, and causing a false statement to be made, about his illegal drug use on the ATF Form 4473 when purchasing the firearms at a licensed firearms dealer in Broken Arrow. Davis is also charged with knowing he was an unlawful drug user in possession of a KelTec .40 S & W caliber semi-automatic rifle. Finally, Davis is charged with making a false statement, and causing a false statement to be made, about his illegal drug use on the ATF Form 4473 when purchasing the KelTec .40 S& W caliber semi-automatic rifle from a licensed firearms dealer in Owasso. Due to his drug use, Davis is prohibited from owning a firearm under federal law. Davis also possessed nearly 1,000 rounds of ammunition. The Henryetta Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Charles Michael Fox. Attempting to Damage and Destroy by Means of Fire and Explosive Materials. Fox, 44, of Tulsa, is charged with maliciously attempting to damage and destroy his apartment building by means of fire and explosive materials. The Tulsa Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Alicia Nicole Giboney. Possession of Methamphetamine With Intent to Distribute. Gibony, 31, of Tulsa is charged with knowingly possessing with intent to distribute 50 grams or more of methamphetamine. The Drug Enforcement Administration, Bureau of Indian Affairs and Pawhuska Police Department are the investigative agencies.
Angelo Latice Harrington. Possession of Methamphetamine With Intent to Distribute (Counts 1 & 5); Possession of Heroin With Intent to Distribute (Count 2); Possession of Cocaine With Intent to Distribute (Count 3); Possession of Firearms in Furtherance of Drug Trafficking Crimes (Counts 4 and 6). Harrington, 35, of Tulsa, is charged with knowingly possessing with intent to distribute 500 grams or more of methamphetamine on March 26, 2019; he is also charged with knowingly possessing with intent to distribute heroin and with knowingly possessing with intent to distribute cocaine on March 26, 2019. He is further charged with possessing an R.G. Industries .38 Special caliber pistol and a North American Arms Inc., .22 Magnum caliber pistol in furtherance of drug trafficking crimes On March 26, 2019. Harrington is also charged with knowingly possessing with intent to distribute 500 grams or more of methamphetamine on Aug. 20, 2019. Finally, Harrington is charged with possessing a North American Arms Inc., .22 Magnum caliber revolver and a Remington Arms .20 Gauge caliber shotgun in furtherance of drug trafficking crimes on Aug. 20, 2019. The Tulsa Police Department, Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Larry Wayne Lytle. Failure to Register as a Sex Offender. Lytle, 40, of Tulsa, is charged with failing to register as a sex offender since June 1, 2019. The Tulsa Police Department and U.S. Marshals Service are the investigative agencies.
Arthur James Mann. Attempted Coercion and Enticement of a Minor. Mann, 34, of Bristow, is charged with attempting to persuade and entice an individual whom he believed to be a minor to engage in sexual activity from July 29, 2018, to August 17, 2018. The Bristow Police Department is the investigative agency.
Carnell Lovette Matthews. Coercion and Enticement of a Minor; Receipt of Child Pornography. (superseding) From April 30 to May 2, 2019, Matthews, 43, of Tulsa, is alleged to have persuaded, induced, coerced, and enticed a minor to engage in sexual activity. He is further charged with receiving images of a minor engaged in sexually explicit conduct. The FBI and Broken Arrow Police Department are the investigative agencies.
Robert Lee Newsom Jr. Wire Fraud Conspiracy. Newsom Jr., 33, of Tulsa, is charged with conspiring with others to commit wire fraud from January 2017 to present. Mr. Newsom and his conspirators presented themselves to cashiers at various Walmart stores throughout the Northern District of Oklahoma, pretending to be Walmart representatives. The conspirators allegedly presented false vouchers to cashiers bearing the designations of “Rapid Reload Cash Voucher,” “Prepaid Debit Cash Travel Voucher” and “Walmart Corporate Cash Travel Voucher.” Newsom and his co-conspirators then requested that the cashiers credit Rapid Reload transaction cards in the amounts of approximately $500 each time. According to the indictment, the conspirators made purchases with the Rapid Reload cards and obtained cash. In total, it is alleged that Newsom and his co-conspirators caused a loss of more than $100,000 to Walmart. The U.S. Secret Service is the investigative Agency.
Juan Carlos Torres-Rangel. Possession of Methamphetamine With Intent to Distribute. Torres-Rangel, 31, of Tulsa, is charged with knowingly possessing with intent to distribute 500 grams or more of methamphetamine on Sept. 13, 2019. The Tulsa Police Department and Drug Enforcement Administration are the investigative agencies.
Pablo Jose Soriano-Villareal; Felix Gil-Cardenas; Diego Carrillo-Lopez; David Hernandez-Perez; Oscar Guadalupe Delgado-Trujillo, Marylou Diaz, Asael Rios, and Fernando Cabello-Sanchez. Drug Conspiracy (Count 1); Distribution of Heroin (Counts 2-13); Possession of Heroin With Intent to Distribute (Counts 14-18, 20); Attempt to Possess Heroin With Intent to Distribute (Count 19); Unlawful Reentry of Removed Alien (Count 21-24). Soriano-Villareal, of Tulsa; Gil-Cardenas, of Tulsa; Carrillo-Lopez, of Tulsa; Hernandez-Perez, of Tulsa; Delgado-Trujillo, residence unknown; Diaz, 38, of Pomona, California; Rios, 34, of Pomona, California; and Cabello Sanchez, 46, of Tulsa, are charged with conspiring to possess with intent to distribute and to distribute 1 kilogram or more of heroin. Gil-Cardenas, Hernandez-Perez, and Carrillo-Lopez are charged individually in Counts 2-13 with knowingly distributing heroin. Soriano-Villareal, Gil-Cardenas, Carillo-Lopez, Hernandez-Perez, Delgado-Trujillo, and Cabello-Sanchez are charged individually in Counts 14-18 and 20 with knowingly possessing with intent to distribute 100 grams or more of heroin. Cabello-Sanchez is charged in Count 19 with knowingly attempting to possess with intent to distribute 1 kilogram or more of heroin. Finally, Soriano-Villareal, Delgado-Trujillo, Cabello-Sanchez, and Hernandez-Perez are charged individually with reentry of a removed alien. The Drug Enforcement Administration is the investigative agency.
Federal Felon Charged with Violation of the Federal Gun Control ActRead the Press Release
NEW ORLEANS – United States Attorney Peter G. Strasser announced today that a federal grand jury returned a one-count indictment against defendant, TERRELL RICHARDSON, of New Orleans, for being a prohibited person in possession of a firearm in violation of 18 U.S.C.§ 922(g)(1) on October 10, 2019. RICHARDSON faces a maximum term of imprisonment of ten years, up to $250,000 in fines, up to three years supervised release following any term of imprisonment, and a $100 special assessment fee.
The indictment alleges that on or about June 29, 2019, RICHARDSON was in possession of a firearm after having been previously convicted on January 22, 2002 of a federal felony offense.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This matter was handled by the Bureau of Alcohol, Tobacco, Firearms and Explosives along with the Jefferson Parish Sheriff’s Office. Assistant United States Attorney Duane A. Evans is prosecuting the case.
Federal Correctional Officer Arrested and Charged with Bribery ConspiracyRead the Press Release
MIAMI - Victor Manuel DeJesus, 47, of Miami-Dade County, who is a correctional officer at the Federal Correctional Institution (FCI) in Miami, has been arrested on charges of conspiracy to defraud the United States and commit bribery, bribery, and other offenses in connection with a scheme to provide contraband items to inmates at the federal prison.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI’s Miami Field Office, made the announcement.
A 14-count indictment, filed in the Southern District of Florida, charges DeJesus and others with conspiring to bribe and bribing DeJesus with money in exchange for providing contraband to inmates within FCI-Miami. According to the indictment, from at least as early as December 2018 through September 2019, inmates and those acting on their behalf supplied DeJesus with bribe payments. DeJesus then deposited these monies in his personal bank account. In exchange for these bribe payments, the indictment alleges DeJesus used his official position to bring in prohibited items into the prison. The indictment further alleges that DeJesus had inmate co-conspirators distribute the contraband in FCI-Miami.
DeJesus will appear before U.S. Magistrate Judge Lauren F. Louis at 1:30 p.m. today. (Case No. 19CR20660)
An indictment contains only allegations. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Fajardo Orshan commended the investigatory efforts of the FBI, U.S. Postal Inspection Service, and FCI-Miami in this matter. She thanked the U.S. Department of Justice, Office of the Inspector General for their invaluable assistance. This case is being prosecuted by Assistant U.S. Attorney Alejandra L. López.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Federal Agent Pleads Guilty to Embezzlement and Conversion of Government PropertyRead the Press Release
CONCORD - Shawn Meehan, 47, of Scarborough, Maine, pleaded guilty in federal court in Portland, Maine, on Tuesday to embezzlement and conversion of government property, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, from about April 2015 to about October 2018, when Meehan was employed as the Resident Agent in Charge of the Homeland Security Investigations office in Portland, Maine, he sold government property on eBay for his personal profit.
According to the plea agreement filed in the case, Meehan acknowledged that the loss to the government was between $6,500 and $15,000 and that he abused a position of public trust in a way that significantly facilitated the commission and concealment of the offense. A sentencing date has not yet been set by the Court.
This matter was investigated by the United States Department of Homeland Security, Immigration and Customs Enforcement, Office of Professional Responsibility and is being prosecuted by Assistant U.S. Attorney Arnold Huftalen of the District of New Hampshire, appointed as a Special Attorney to the U.S. Attorney General to handle this case in the District of Maine.
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Fayetteville Man Sentenced to 15 Years in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Jerry Lawson, age 35, was sentenced yesterday to 180 months in federal prison followed by 4 years of supervised release for one count of Possession with Intent to Distribute Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in 2018, detectives received information that Lawson was distributing methamphetamine in the Fayetteville area. Detectives set up two controlled purchases of methamphetamine from Lawson. Upon the execution of search warrants, detectives located a stolen pistol and 324 grams of actual methamphetamine. Lawson was subsequently found to be in possession of a distribution amount of heroin.
Lawson was indicted by a federal grand jury in February 2019, and he entered a guilty plea in July 2019.
This case was investigated by the 4th Judicial Drug Task Force and the DEA. Assistant United States Attorney David A. Harris prosecuted the case for the United States.
Email Address Created for Questions Pertaining to Victims Affected by the Arrest of Paul PetersenRead the Press Release
Fayetteville, AR – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced today that a dedicated email address has been created to allow anyone affected by Paul Petersen’s arrest to email the United States Attorney’s office at [email protected]. A direct link is available on our website at www.justice.gov/wdar. Mr. Kees encourages anyone who is involved in ongoing adoption proceedings with Paul Petersen to send an email to this address with any questions or concerns about how Petersen’s arrest may affect them.
The identity of involved parties and information received will be strictly confidential.
Information about Paul Petersen’s arrest can be found at https://www.justice.gov/usao-wdar/pr/arizona-adoption-attorney-arrested-adoption-fraud-and-alien-smuggling.
District Man Sentenced to 80 Months in Prison for 2017 Shooting in Northeast WashingtonRead the Press Release
WASHINGTON – Derrick Watson, 42, of Washington, D.C., was sentenced today to 80 months in prison for his role in a three person shooting that took place in Northeast, Washington in July 2017, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Watson was found guilty by a jury of five counts assault with a dangerous weapon, assault with significant bodily injury while armed, six counts of possession of a firearm during a crime of violence, felon in possession by a jury on July 24, 2019 following a one-week trial in the Superior Court of the District of Columbia before the Honorable Craig Iscoe.
According to the government’s evidence, on July 10, 2017, at approximately 8:54pm, Watson engaged in a gun battle with Saheed Salu and Kevin Williams in a small courtyard behind 1341 I Street NE, Washington, DC. During the shooting at least 15 innocent adults and children were in the immediate area and a one-year-old was struck in the crossfire requiring medical attention. Earlier in the evening, Watson was involved in a verbal altercation with Saheed Salu over gambling. Saheed Salu left the area and returned with Kevin Williams both armed. Once Watson noticed Kevin Williams was armed, he walked to his car, retrieved his own firearm, and returned closer to Salu and Williams. Soon after, at least 13 gunshots were fired by the three shooters. Saheed Salu and Kevin Williams pleaded guilty and were sentenced in January 2019.
In announcing the sentence, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from Metropolitan Police Department. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Supervisory Litigation Technology Specialist Leif Hickling, Investigative Analyst Zachary McMenamin, Victim/Witness Program Specialist Karina Hernandez, former Victim-Witness Advocate Diana Lim, Supervisory Victim/Witness Services Coordinator Katina Adams-Washington, Supervisory Paralegal Specialist Sabrina Turner, Paralegals Tiffany Fogle and Antoinette Sakamsa, former Criminal Investigator John Marsh, intern Elizabeth Brown, former Assistant U.S. Attorneys Jennifer Kerkhoff and Louis Manzo.
Finally, they acknowledged the efforts of Assistant U.S. Attorney Rachel Bohlen who prosecuted the case and Monica Trigoso who investigated and prosecuted the case.
District Man Sentenced to 10 Years in Prison for Possessing a Loaded Firearm While Trafficking NarcoticsRead the Press Release
WASHINGTON – Thomas Washington, 66, of Northeast, D.C., was sentenced today to 10 years in prison for possessing a loaded firearm in furtherance of his drug trafficking, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Washington pled guilty in July 2019 before the Honorable Randolph D. Moss in the U.S. District Court for the District of Columbia to one count of possession of a firearm in furtherance of a drug trafficking offense. Judge Moss sentenced Washington to 10 years in prison to be followed by three years of supervised release.
According to the government’s evidence, on July 8, 2018, members of MPD’s Narcotics and Special Investigations Division observed Washington conducting hand-to-hand drug transactions. After arresting Washington, who had a stun gun and $3,067, MPD officers executed a search warrant at Washington’s residence that was located in the 4900 block of Nash Street, Northeast. During the execution of the search warrant, MPD officers recovered a High-Point model CF380 semi-automatic handgun in the dresser of the bedroom. The firearm was loaded with nine rounds of ammunition. Officers also recovered 6.5 grams of crack, a plate with residue, empty ziploc baggies, a digital scale, and $13,253.00.
When Washington was arrested for trafficking narcotics and possessing a firearm in the present case, he was on supervision with the U.S. Parole Commission following a 2012 D.C. Superior Court felony drug trafficking conviction. Washington now faces formal revocation of his supervised release and an additional sentence, separate from the above-referenced sentence, from the U.S. Parole Commission. Washington also had two additional prior drug trafficking convictions and a prior involuntary manslaughter conviction.
In announcing the sentence, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case. They also cited the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Paralegal Specialist Candace Battle, Legal Assistant Peter Gaboton, and Assistant U.S. Attorney Christopher Macchiaroli of the Violent Crime and Narcotics Section, who prosecuted the Defendant.
Detroit man admits to his involvement in an oxycodone distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Terry Thomas, of Detroit, Michigan, has admitted to multiple charges involving an oxycodone distribution operation that spanned two states and four North Central West Virginia counties, U.S. Attorney Bill Powell announced.
Thomas, also known as “Top,” age 47, pled guilty to one count of “ Conspiracy to Distribute Oxycodone,” one count of “Money Laundering Conspiracy,” 19 counts of “Distribution of Oxycodone,” 11 counts of “Aiding and Abetting Distribution of Oxycodone,” and one count of “Distribution of Cocaine Base.” Thomas, the ringleader of the operation, worked with his co-conspirators to distribute more than 500,000 oxycodone pills in Monongalia County and elsewhere for four years, from the summer of 2013 to June 2017.
“Our prosecution team and law enforcement partners have done incredible work on this investigation. Detroit and other locations outside of West Virginia have long been suppliers of pain and suffering , through their illegal drug operations. We will continue to have zero tolerance for these operations and aggressively dismantle and destroy them. Dozens of people are now paying for their activities with long prison sentences. Job well done,” said Powell.
Thomas faces up to 20 years incarceration and a fine of up to $1,000,000 for each of the drug charges and faces up to 20 years incarceration and a $500,000 fine for the money laundering charge. 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 Zelda E. Wesley is prosecuting the case on behalf of the government. The Mon Metro Drug and Violent Crime Drug Task Force, a HIDTA-funded initiative, led the investigation. The Task Force consists of the U.S. Drug Enforcement Administration. the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, Monongalia County Sheriff’s Office, Morgantown Police Department, the Star City Police Department, the West Virginia State Police, the West Virginia University Police Department, the Granville Police Department, and the Monongalia County Prosecuting Attorney’s Office.
Of the 34 indicted in this case, 33 have entered guilty pleas. Twenty-five defendants have been sentenced to a combined 580 months incarceration.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Michael John presided.
Detroit Man Sentenced to 27 months for Trafficking FentanylRead the Press Release
LEXINGTON, Ky. – Anthony McIntosh, 28, of Detroit, was sentenced Friday to 27 months in federal prison, by United States District Judge Danny C. Reeves, for possession with intent to distribute fentanyl.
In June 2018, Lexington Police officers apprehended McIntosh and located 21 grams of fentanyl in his vehicle. In his plea agreement, McIntosh admitted that he intended to sell the fentanyl to others.
Under federal law, McIntosh must serve 85 percent of his prison sentence. After his sentence, he will be under the supervision of the U.S. Probation Office for three years following his release and will have to pay a $3,600 fine.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; D. Dan Dodds, Special Agent in Charge of the DEA; and Lawrence Weathers, Chief of the Lexington Police Department, jointly announced the sentence.
The investigation was conducted by the U.S. Drug Enforcement Administration and the Lexington Police Department. The United States was represented by Assistant U.S. Attorney David Kiebler.
This case was prosecuted as part of the Organized Crime and Drug Enforcement Task Force’s (OCDETF) Operation Synthetic Opioid Surge (SOS), a Department of Justice initiative designed to target trafficking of dangerous synthetic opioids.
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Defendant given extra prison time for failing to self-surrender for first sentenceRead the Press Release
SACRAMENTO, Calif. — Damanpreet Singh, 34, of Los Angeles, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to nine additional months in prison for failing to self-surrender to serve his prison sentence, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Sept. 14, 2018, Singh was sentenced to two years in prison for conspiring to commit bribery, identity fraud and unauthorized access of a computer. He was ordered to self-surrender to begin serving his prison sentence on Jan. 4, 2019. Rather than turn himself in, however, Singh purposefully took steps to remain out of custody. He stopped answering his phones and drove a rental car to avoid detection.
When he was eventually arrested at the Burbank Airport on March 13, 2019, Singh lied to officers about who he was in order to remain out of custody.
This case was a product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Rosanne L. Rust prosecuted the case.
Court Sentences Four Drug Smugglers for Attempting to Smuggle 182 Kilograms of Cocaine into United States TerritoryRead the Press Release
On October 7, 2019 United States District Court Judge Jeffrey U. Beaverstock sentenced four drug smugglers: Angel Castro Garcia; Pedro Dino Cedado Nunez; Manely Enriquez; and Mike Castro Martinez, all Dominican Republic nationals, for attempting to smuggle 182 kilograms of cocaine from the Dominican Republic to Puerto Rico. The men were previously convicted at a jury trial concluding on June 28, 2019. Judge Beaverstock sentenced Angel Castro Garcia, Manely Enriquez and Mike Castro Martinez to 188 months imprisonment. Pedro Dino Cedado Nunez was sentenced to 132 months confinement. The Court recognized that Nunez was honest when confronted by law enforcement about his illegal activities.
The case arose when, on December 24, 2018, a United States Customs and Border Protection aircraft spotted a suspected drug smuggling vessel operating in international waters northeast of the Dominican Republic. The vessel was travelling on a known drug smuggling route to Puerto Rico. The aircraft notified the United States Coast Guard (USCG) and the USCG Cutter “Richard Dixon” proceeded toward the drug smuggling vessel. The USCG Cutter then launched an Over the Horizon (OTH) Zodiac type vessel from the Cutter with a four man crew.
The OTH USCG vessel interdicted the 25-foot Yola style drug smuggling vessel operating in international waters northeast of the Dominican Republic. The drug smugglers attempted to jettison most of the cocaine when they spotted the USCG OTH vessel. The four man Coast Guard crew recovered approximately 182 kilograms of cocaine in the water and on board the drug smuggling vessel. The cocaine had a retail value of nearly $30 million dollars in the United States.
Title 46 United States Code, § 70501 states: Congress finds and declares that (1) trafficking in controlled substances aboard vessels is a serious international problem, is universally condemned, and presents a specific threat to the security and societal well-being of the United States and (2) operating or embarking in a submersible vessel or semi-submersible vessel without nationality and on an international voyage is a serious international problem, facilitates transnational crime, including drug trafficking, and terrorism, and presents a specific threat to the safety of maritime navigation and the security of the United States. Title 46 further provides that such offenses may be prosecuted in any United States federal district court.The case was prosecuted by George F. May, Deputy Criminal Chief and Luis F. Peral, Lead Organized Crime Drug Enforcement Task Force (OCDETF) Attorney. Appellate Chief Scott Gray also provided invaluable assistance on the case. The case was investigated by the United States Coast Guard and the Department of Homeland Security, Homeland Security Investigations.
Correctional Officer Pleads Guilty to Federal Racketeering Charge Related to Maryland Correctional Institute JessupRead the Press Release
Greenbelt, Maryland – Correctional Officer Janel Griffin, age 41, of Baltimore, pleaded guilty today to a federal racketeering charge for participating in a scheme to smuggle contraband into the Maryland Correctional Institute Jessup (MCIJ), including narcotics, unauthorized flash drives, tobacco, and cell phones into the prison. Inmate Corey Alston, a/k/a “C,” age 29, pleaded guilty on September 18, 2019, to the same charge.
The guilty pleas were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone, of the Federal Bureau of Investigation, Baltimore Field Office; and Secretary Robert L. Green, of the Maryland Department of Public Safety and Correctional Services.
“This case demonstrates that we will not tolerate employees in positions of trust violating their oaths. Federal, state, and local officials will continue to work together to root out corrupt employees and others who undermine the administration of justice at our prisons,” said U.S. Attorney Robert K. Hur.
According to court documents, MCIJ was a medium-security prison in Anne Arundel County, Maryland, that housed approximately 1,100 male inmates, with 262 custody staff or Correctional Officers (COs) and 52 non-custody staff, including case management, medical, and administrative staff.
According to her plea agreement, Griffin smuggled contraband into MCIJ for at least inmate Corey Alston, including narcotics and tobacco. At Alston’s direction, Griffin met with co-conspirator facilitators, including Tyirisha Johnson, to receive contraband as well as bribe payments. Recorded jail calls between Alston and others confirm that between April 16 and August 14, 2017, Griffin met with Johnson or another facilitator on at least six occasions to obtain contraband and at least $2,800 in bribe payments. Griffin smuggled the contraband, including Suboxone and Percocet, into MCIJ.
Inmate Corey Alston admitted that he was a leader in the racketeering conspiracy. As detailed in the plea agreement, Alston conspired with four outside facilitators, including Johnson, who obtained and packaged contraband, met with the correction officers and employees to provide contraband and bribe payments, and managed the proceeds of illegal contraband sales for Alston. According to his plea agreement Griffin and another MCIJ employee brought the contraband into the prison for Alston, in exchange for bribe payments, and Alston conspired with another inmate to sell the contraband to other inmates.
Alston was overheard by law enforcement on a series of recorded calls arranging for contraband to be smuggled into MCIJ and arranging payment for the contraband and for bribes.
Griffin and Alston each face a maximum sentence of 20 years in prison. U.S. District Judge Paula Xinis has scheduled sentencing for Griffin on February 6, 2020, at 1:00 p.m. Tyirisha Johnson, age 23, of Baltimore, pleaded guilty to her role in the conspiracy on July 23, 2019. Johnson and Alston are also expected to be sentenced in February 2020.
This case arose from the efforts of the Maryland Prison Task Force, coordinated by the U.S. Attorney’s Office and comprised of local, state, and federal stakeholders that meet regularly to share information and generate recommendations to reform prison procedures and attack the gang problem that has plagued Maryland in recent years. The work of the Task Force previously resulted in the federal convictions of more than 80 defendants, including 16 correctional officers, at the Eastern Correctional Institution, and 40 defendants, including 24 correctional officers, at the Baltimore City Detention Center.
United States Attorney Robert K. Hur commended the FBI and the Department of Public Safety and Correctional Services for their work in the investigation. The U.S. Attorney expressed appreciation to the Department of Public Safety and Correctional Services, whose staff initiated the MCIJ investigation and have been full partners in this investigation. Mr. Hur thanked Assistant U.S. Attorneys Lauren E. Perry and Sean R. Delaney, who are prosecuting this case.
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Convicted Felon Sentenced to Federal Prison for Possession of a Gun and CyberstalkingRead the Press Release
A Sioux City man with a criminal history that included a domestic violence conviction, and a felony conviction was sentenced October 7, 2019 to more 13 years in federal prison.
Freddy Bernal, age 33, from Sioux City, Iowa, received the prison term after a March 23, 2019, jury verdict finding him guilty of one count of possessing a firearm and ammunition as a prohibited person, and one count of cyberstalking
Evidence at trial showed that on or about December 5, 2017, police were dispatched to the victim’s home where they found a gun that defendant, nicknamed “Trigger” for his habit of carrying a gun, had hidden at the home, and where officers learned of the unwelcome course of conduct defendant had visited upon the victim for a number of years.
Defendant’s pattern of behavior toward the victim included a string of threating text messages, frequent voice calls stating he was watching the victim and was going to kill her, and indirect calls by people calling on defendant’s behalf, demanding the victim call defendant. Finally, an incident where defendant held the victim’s baby out the window of a moving car to threaten and harass her.
The jury found, as a result of defendant’s course of conduct, the victim was placed in fear of death or serious injury to herself, and defendant caused substantial emotional distress to the victim.
Bernal had previously been convicted of multiple felony offenses including convictions for Willful Injury Causing Serious Injury; Criminal Gang Participation; Felony Theft; and Domestic Abuse Assault.
Bernal was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Bernal was sentenced to 156 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
“No one should be subjected to the kind of threatening and dangerous conduct that Freddy Bernal displayed in this case,” said U.S. Attorney Deegan. “I want to commend Assistant U.S. Attorneys Ford Fairchild and Margaret Groban and Senior Trial Attorney Mona Sedky for their outstanding work in bringing Bernal to justice.”
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Bernal is being held in the United States Marshal’s custody until he can be transported to a federal prison. There is no parole in the federal system
The case was investigated by the Sioux City Police Department and prosecuted by Assistant United States Attorney Forde Fairchild with the assistance of Assistant United States Attorney Margaret S. Groban, National Domestic Violence Coordinator of the USDOJ’s Office of Legal Programs and Senior Trial Attorney Mona Sedky, USDOJ’s Computer Crime and Intellectual Property Section.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-4013.
Follow us on Twitter @USAO_NDIA.
Convicted Felon Receives 55 Month Sentence for Illegal Possession of a FirearmRead the Press Release
Memphis, TN – Christopher Holmes, 31, has been sentenced to 55 months for being a convicted felon in possession of a firearm. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented in court, on February 6, 2018, around noon, Memphis police saw a silver Infiniti I30 west bound on Chelsea Avenue with very dark tinted windows that appeared to be beyond the legal limit. As officers executed a traffic stop, Holmes exited the vehicle and attempted to run from officers. He was apprehended a short distance later and struggled with officers while being handcuffed. Law enforcement located on his person a prescription bottle prescribed for someone else containing 43 alprazolam pills.
While searching the vehicle, law enforcement located a loaded Browning 9mm pistol in the front driver’s seat. Holmes has a prior felony conviction for aggravated assault, and a misdemeanor conviction for domestic violence.
On October 10, 2019, U.S. District Court Judge John T. Fowlkes Jr., sentenced Holmes to 55 months in federal prison followed by 2 years supervised release.
U.S. Attorney D. Michael Dunavant said, "Convicted felons who possess firearms are an inherent danger to the community, and in this case, Holmes was a violent offender who continued to possess a firearm despite his prior felony conviction history. There is and ought to be a significant consequence for such recidivist criminal behavior, and this is one more gun-toter that will be removed from our streets."
The Memphis Police Department investigated this case.
Special Assistant U.S. Attorney Sam Winnig prosecuted this case on behalf of the government. SAUSA Winnig is currently assigned from the Shelby County District Attorney General’s Office for the purpose of prosecuting violent crimes and firearms offenses in federal court.
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Chicago Man Charged with Conducting Illegal Sports Gambling BusinessRead the Press Release
CHICAGO — A Chicago man has been charged in federal court with conducting an illegal sports gambling business and concealing the income in a bankruptcy proceeding.
MICHAEL FRONTIER, also known as “Ira Goldberg,” “Brian Seagal,” and “Matthew Sullivan,” provided bettors with gambling accounts at an online sportsbook based in Costa Rica, according to a 14-count indictment returned in U.S. District Court in Chicago. Frontier paid a service fee to the sportsbook for use of its platform, and then personally collected or paid cash to the bettors depending on the outcomes of their bets, the indictment states.
The charges allege that Frontier concealed his gambling income when he fraudulently obtained an order from the U.S. Bankruptcy Court discharging his debts, including a $1.5 million civil judgment against him for negligence in a motorcycle accident. Frontier used the fraudulently-obtained bankruptcy order as leverage to ultimately settle the negligence case for only $4,500, the indictment states.
The indictment was returned Thursday. It charges Frontier, 35, of Chicago, with five counts of money laundering, five counts of making a false statement in a bankruptcy case, two counts of bankruptcy fraud, one count of conducting an illegal gambling business, and one count of making a false declaration before the U.S. Bankruptcy Court. Arraignment in federal court in Chicago has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Larry L. Lapp, acting Special Agent-in-Charge of the Chicago office of the FBI; and Kathy A. Enstrom, Special Agent-in-Charge of the Chicago office of the IRS Criminal Investigation Division. The United States Trustee Program provided valuable assistance. The government is represented by Assistant U.S. Attorneys Devlin N. Su and Erika Csicsila.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Each count of money laundering carries a maximum sentence of 20 years in prison, while the other counts in the indictment are each punishable by up to five years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Cameroon Man Charged with Bank Fraud and Wire FraudRead the Press Release
URBANA, Ill. – A citizen of Cameroon, Lovette Namatinga, was arrested on Oct. 7 at Washington Dulles International Airport by FDIC Office of Inspector General agents. Namatinga, who resides in Owings Mills, Maryland, was indicted by a Grand Jury on Oct. 1 on charges he defrauded a Kankakee County bank. He will appear for arraignment in Urbana, Illinois once he is transported to the Central District of Illinois by the U.S. Marshals Service.
The indictment alleges that from about Feb. 26, 2019 and continuing until about April 8, 2019, Namatinga devised a scheme to defraud Municipal Trust and Savings Bank (“MTSB”), a financial institution located in Kankakee County, Illinois, in which MTSB was fraudulently induced by electronic mails to mail four checks in large dollar amounts made payable to Keiko San Products (“Keiko”). The messages in the electronic mails falsely represented that the secretary of one of MTSB’s customers requested that the checks be mailed to Keiko, when in reality, the loan customer did not make this request.
Namatinga is the registered agent for Keiko, and the four checks were mailed to his home address. Once the checks were deposited into Keiko bank accounts, Namatinga transferred money from those accounts to his personal account or withdrew cash from those accounts. The loss to MTSB was approximately $141,000.
If convicted of bank fraud, each count carries a penalty of up to 30 years in prison and a fine of up to $1,000,000. If convicted of the offense of wire fraud, each count carries a penalty of up to 20 years in prison and a maximum fine of $250,000.
The charges are the result of an investigation by the FDIC Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Meredith Reiter.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
California Entrepreneur Sentenced in College Admissions CaseRead the Press Release
BOSTON – A California man became the eighth parent to be sentenced today in connection with the college admissions case.
Peter Jan Sartorio, 53, of Menlo Park, Calif., was sentenced by U.S. District Court Judge Indira Talwani to one year of probation, ordered to complete 250 hours of community service and to pay a fine of $9,500. In May 2019, Sartorio pleaded guilty to one count of conspiracy to commit mail fraud and honest services mail fraud.
The government recommended a sentence of one month in prison, one year of supervised release and a fine of $9,500.
Beginning in the spring of 2017, Sartorio conspired with William “Rick” Singer and others to have his daughter’s ACT exam corrected, thereby fraudulently inflating the score. As part of the scheme, Sartorio took steps to secure extended time for his daughter to take the ACT, which allowed her to take the exam at a test center in West Hollywood that Singer “controlled” through the center’s corrupt administrator, Igor Dvorskiy. After Sartorio’s daughter completed the exam on June 10, 2017, without using the extra time she had been allotted, co-conspirator Mark Riddell corrected her answers. As a result of the cheating scheme, Sartorio’s daughter received a score of 27 out of 36 on the exam, which placed her in the 86th percentile. Sartorio paid Singer $15,000 in cash, structuring the cash withdrawals in three smaller increments over several days to avoid bank reporting requirements.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright and Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit are prosecuting the case.
California Businessman Sentenced to Prison for Filing False Tax ReturnsRead the Press Release
A Beverly Hills, California, businessman was sentenced yesterday to 21 months in prison for filing false tax returns, which failed to report his offshore accounts in Germany and Israel and the income earned on those accounts, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Tax Division and U.S. Attorney Nicola T. Hanna for the Central District of California.
“Today’s prison sentence reinforces the message that the Tax Division alongside its strong partners in U.S. Attorneys’ Offices and the IRS is committed to prosecuting U.S. taxpayers, who willfully hide offshore accounts, and that the penalty for such criminal conduct is not just a financial penalty, but prison,” said Principal Deputy Assistant Attorney General Zuckerman.
According to court documents, Teymour Khoubian filed false tax returns for tax years 2009 and 2010, which failed to report foreign financial accounts in Germany and Israel and failed to report income earned on those accounts. Between 2005 and 2012, Khoubian jointly owned multiple accounts at Bank Leumi in Israel with his mother that held between $15 million and $20 million. Additionally, since at least 2005, Khoubian also owned a foreign account at Commerzbank AG in Germany. Despite his ownership interest in these accounts and a legal requirement to declare all offshore accounts containing $10,000 or more, Khoubian prepared false tax returns for tax years 2005 through 2011 that did not fully disclose his foreign accounts, nor report all the interest income earned on those accounts. Khoubian’s Bank Leumi accounts generated interest income in excess of $4 million between 2005 and 2010, none of which was reported to the Internal Revenue Service (IRS). The total tax loss associated with the Bank Leumi accounts is approximately $1.2 million.
Since at least 2009, Khoubian was aware of the IRS’s Offshore Voluntary Disclosure Program (OVDP). The OVDP allowed U.S. taxpayers to voluntarily disclose unreported foreign accounts and pay a reduced penalty to resolve their civil liability for not declaring foreign accounts to U.S. authorities. During 2011 and 2012, Bank Leumi requested that Khoubian sign a Form W-9 for U.S. tax reporting purposes. In an August 13, 2012, recorded telephone conversation with a banker at Bank Leumi, Khoubian stated that the reason he did not want to sign a Form W-9, was "because you have to pay half of it."
In 2012 and 2014, Khoubian knowingly made multiple false statements to IRS special agents investigating his foreign accounts, including falsely stating that the Bank Leumi accounts were not in his name, that he did not own a bank account in Germany from 2005 to 2010, that he closed his German bank account and moved all of that money to the United States, and that none of the money in his German bank account was moved to Israel.
As part of his sentence, Khoubian was ordered to pay $612,310 in restitution to the IRS. Additionally, as part of his guilty plea, Khoubian paid a Foreign Bank and Financial Accounts (FBAR) penalty in the amount of $7,686,004 plus interest and penalties.
This case was prosecuted by Trial Attorneys Christopher S. Strauss and Ellen M. Quattrucci of the Justice Department’s Tax Division, with the assistance of Assistant United States Attorney Robert Conte of the U.S. Attorney’s Office for the Central District of California, and was investigated by the IRS-Criminal Investigation.
CEO of Credit Card Processing Company Charged in $19 Million Credit Card Laundering SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced a superseding indictment today against BRANDON BECKER, the former CEO of CardReady, LLC (“CardReady”), on charges of fraudulently operating a credit card laundering scheme that enabled access to the credit card system for certain deceptive businesses, including an underlying telemarketing scheme. From about 2012 through 2015, according to the Indictment, the telemarketing scheme raised over $19 million from thousands of customers who received cold calls promising to reduce their overall debt burdens for fees of up to $1,495. The scheme resulted in many complaints of fraud and deceptive tactics and requests for millions of dollars in refunds and chargebacks. The charges include that, from approximately 2012 through 2015, BECKER and his co-conspirators enabled the scheme by creating dozens of sham merchant accounts and false merchant applications, defrauding an associated credit card processing company and a federally insured bank into processing more than $19 million in payments for the scheme.
BECKER was originally arrested at Los Angeles International Airport on September 22, 2019. He is scheduled to appear for arraignment on the instant charges on October 17, 2019, before United States District Judge Loretta A. Preska.
U.S. Attorney Berman said: “As our society relies ever more on credit cards and electronic payments, both individual citizens and corporations have every right to expect truthfulness and fair dealing in the marketplace – not fraud and deceit.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “People cringe when they see a telemarketer calling because they fear being scammed. This investigation is proof that fear isn’t misplaced. It also shows those who are allegedly scamming innocent victims aren’t getting away with their crimes. The FBI and our law enforcement partners are paying attention, and maybe one day the phone ringing won’t mean people losing their money.”
According to the Indictment unsealed today in Manhattan federal court[1]:
BECKER, was the CEO of CardReady, a Los-Angeles based company acting as a sales agent in the credit card processing industry. As part of its business as a sales agent, CardReady found merchants who wanted credit card processing services, and submitted merchant applications on behalf of those merchants to an Independent Sales Organization (“ISO”), referred to in the Indictment as the “New York ISO.” The New York ISO then evaluated the merchant applications, and referred acceptable merchant accounts for processing up the chain to Payment Processor-1 and to Bank-1. Bank-1 and Payment Processor-1, in turn, processed payments to merchants for purchases by customers who had used credit cards.
In or about 2012, BECKER negotiated a deal with the principal of Telemarketer-1 to provide credit card processing for Telemarketer-1. Under this deal, CardReady would retain approximately one-third of Telemarketer-1’s credit card sale transactions in exchange for providing Telemarketer-1 access to the credit card processing network. For roughly the next two years, Telemarketer-1 was engaged in a marketing scheme in which it cold-called customers and offered services, including debt consolidation and interest-rate reduction, which were prohibited by the applicable guidelines from Bank-1 and other associated processing entities (the “Guidelines”), and which – as BECKER knew – would produce chargebacks from dissatisfied customers far in excess of the number and rate of chargebacks permitted under the Guidelines.
In securing payment card processing for Telemarketer-1, BECKER concealed that Telemarketer-1 was the true underlying merchant. Instead, BECKER and his co-conspirators, over a period of more than 20 months, created approximately 26 sham merchant companies, each headed by a “signer” (the “Sham Merchants” and the “Sham Merchant Accounts”). The 26 signers for the 26 Sham Merchants typically had no business of their own, and lacked knowledge of Telemarketer-1’s business. In return for signing the paperwork provided to them, the signers were paid a nominal fee from CardReady. BECKER and his co-conspirators prepared and coordinated fraudulent merchant applications for each of the Sham Merchants, through merchant applications that falsely described the Sham Merchants to make them look like legitimate independent businesses and to make it more likely that the associated Sham Merchant Account would be approved for processing by the New York ISO, Payment Processor-1, and Bank-1. The merchant application for each Sham Merchant also concealed the Sham Merchant’s true association with Telemarketer-1.
By steering Telemarketer-1’s payment processing through these Sham Merchant Accounts, BECKER accomplished a number of fraudulent purposes. First, the use of these Sham Merchant Accounts made it possible for Telemarketer-1 and other high-risk merchants to conceal their identities from Payment Processor-1 and Bank-1 and to maintain payment card processing. This was particularly relevant, as Payment Processor-1 repeatedly required CardReady to close individual Sham Merchant Accounts because of excessive chargebacks and reports of sales of prohibited services. BECKER then caused CardReady to quickly replace the closed Sham Merchant Accounts with new Sham Merchant Accounts, precluding Payment Processor-1 from shutting down its processing of Telemarketer-1 and other high-risk merchants. Second, the fraudulent processing scheme enabled Telemarketer-1 and other high-risk merchants to spread out their charges, refunds, and chargebacks across multiple Sham Merchant Accounts. This enabled them to evade chargeback monitoring programs operated by Bank-1, Payment Processor-1, and the New York ISO.
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BECKER, 48, of Los Angeles, California, is charged in four counts, conspiracy to commit wire fraud and bank fraud, conspiracy to make false statements to a bank, wire fraud, and bank fraud. Counts One and Four carry maximum sentences of 30 years in prison, and maximum fines of $1 million or twice the gross gain or loss from the offense. Counts Two and Three carry maximum sentences of 20 years in prison, and maximum fines of $250,000 or twice the gross gain or loss from the offense. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the extraordinary work of the FBI and thanked the Federal Trade Commission for its invaluable assistance.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys David Raymond Lewis and Vladislav Vainberg are in charge of the prosecution.
The charges contained in the Indictment 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 Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Bucks County Drug Trafficker Convicted on Multiple Gun, Drug ChargesRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Matt “Mack” Jones, 36, of Bensalem, PA was convicted at trial of heroin trafficking and gun charges following a four day trial.
In January 2018, New Jersey State Police, the Philadelphia DEA, and the Philadelphia Police Department began a joint investigation of the defendant and other co-conspirators. Officers learned that the defendant was a supplier of heroin, and that he supplied two female associates with bags of heroin and directed them to deliver the bags to customers in New Jersey and the Philadelphia area.
Investigators conducted several controlled buys of heroin from the defendant and his co-conspirators with the assistance of a cooperating witness at the Cherry Hill Mall in Cherry Hill, NJ and the Philadelphia Mills (formerly Franklin Mills) in Philadelphia, PA. Laboratory analysis of the seized material confirmed the presence of heroin mixed with fentanyl. In July 2018, officers searched the defendant’s home and found firearms, including a Colt .38 handgun and a 12 gauge shotgun, ammunition, half a kilogram of heroin, cocaine, marijuana, drug packaging paraphernalia and more than $100,000 cash.
“Jones and other members of this drug organization pumped huge quantities of deadly drugs into our community for years,” said U.S. Attorney McSwain. “Drug trafficking is an inherently dangerous business and the traffickers ultimately deliver destruction to our communities. Our office is determined to investigate and convict these criminals, and put them behind bars.”
Jones faces a potential sentence of 35 years’ to lifetime imprisonment under federal sentencing laws.
The case was investigated by Drug Enforcement Administration, the Philadelphia Police Department, the New Jersey State Police, the Bensalem Township Police, and the Philadelphia District Attorney’s Office, and is being prosecuted by Assistant United States Attorney Frank Labor III.