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10 October 2019
Michigan Resident Appears in Bay Area Federal Court on Hacking ChargesRead the Press Release
SAN FRANCISCO – Alleged hacker Anthony Tyler Nashatka, a/k/a “psycho,” appeared today in federal court on charges of conspiracy to commit computer fraud and abuse, conspiracy to commit wire fraud, aggravated identity theft and other charges related to a scheme to defraud victims of at least $1.4 million in cryptocurrency in December of 2017, announced United States Attorney David L. Anderson and U.S. Secret Service Special Agent in Charge Thomas Edwards. Nashatka was arraigned before U.S. Magistrate Judge Jacqueline Scott Corley and was released on bond pending further proceedings.
A federal grand jury indicted Nashatka, a current resident of Michigan, along with his co-conspirator, United Kingdom resident Elliott Gunton, a/k/a “planet,” a/k/a “Glubz,” on August 13, 2019. According to the indictment, in December of 2017, Nashatka conspired to target a cryptocurrency exchange platform to obtain the private keys and other information of hundreds of its users as part of a scheme to steal the users’ cryptocurrency. The indictment further describes how the defendants unlawfully used the identity of a victim to gain access to the platform’s domain name settings, caused the transmission of a command to disable all of the cryptocurrency company’s servers, diverted users from the actual platform to a fake website, and fraudulently induced victims to input their cryptocurrency addresses and private keys into the fake website. The indictment alleges between December 20 and 21, 2017, Nashatka and his co-conspirators logged the credentials of hundreds of victims, stole their cryptocurrency, and transferred approximately $600,000 in cryptocurrency to one cryptocurrency address controlled by Nashatka and his co-conspirators. In addition, using this fraud scheme, Nashatka and his co-conspirators stole and additional $800,000 from a single victim on December 26, 2017. The investigation to identify additional victims is continuing.
In sum, each defendant was charged with one count each of the following crimes: conspiracy to commit computer fraud and abuse, in violation of 18 U.S.C. § 1030(b); transmission of a program, information, code, and command to cause damage to a protected computer, in violation of 18 U.S.C. §§ 1030(a)(5)(A), (c)(4)(B)(i) and (c)(4)(A)(i)(VI); unauthorized access to a protected computer to obtain value, in violation of 18 U.S.C. §§ 1030(a)(4) and (c)(3)(A); conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349; and aggravated identity theft, in violation of 18 U.S.C. § 1028A(a)(1).
Nashatka was arrested in New York on September 6, 2019. His next court appearance is scheduled for November 13, 2019, before the Honorable Edward M. Chen, U.S. District Judge for a status conference.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces the following maximum statutory sentences:
CHARGE
MAXIMUM PENALTY
Conspiracy to Commit Computer Fraud and Abuse
10 years in prison and a $250,000 fine or twice the gross gain or loss resulting from the scheme
Transmission of a Program, Information, Code, and Command to Cause Damage to a Protected Computer
10 years in prison and a $250,000 fine or twice the gross gain or loss resulting from the scheme
Unauthorized Access to a Protected Computer To Obtain Value
5 years in prison and a $250,000 fine or twice the gross gain or loss resulting from the scheme
Conspiracy to Commit Wire Fraud
20 years in prison and a $250,000 fine or twice the gross gain or loss resulting from the scheme
Aggravated Identity Theft
2 years in prison (to run consecutive to any other term imposed) and a $250,000 fine or twice the gross gain or loss resulting from the scheme
The court also may order additional periods of supervised release, fines, and restitution, if appropriate, for each violation. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
This case is being prosecuted by the Special Prosecutions Section of the United States Attorney’s Office. The prosecution is the result of an investigation by the United States Secret Service and the Federal Bureau of Investigation.
Mexican National Pleads Guilty to Drug Trafficking Cocaine in LexingtonRead the Press Release
LEXINGTON, Ky.— Roberto Bernal Salas, 32, pleaded guilty Thursday to possessing and intending to distribute three kilograms of cocaine and 122 gram of crack cocaine.
In his guilty plea, Salas admitted that he possessed and intended to sell over three kilograms of cocaine and over 122 grams of crack cocaine found by law enforcement in Salas’s home in Lexington. Salas also admitted that the amount of $33,000 seized from his home represented proceeds from the sale of a kilogram of cocaine. Salas was indicted by a grand jury in July 2019.
Robert M. Duncan Jr., United States Attorney for the Eastern District of Kentucky, James Robert Brown Jr., Special Agent in Charge FBI Louisville Field Division; and Chief Lawrence Weathers, Lexington Police Department, jointly made the announcement today after Salas entered his guilty plea.
The investigation was conducted by FBI and Lexington Police Department. The United States was represented in the case by Assistant United States Attorney Roger W. West.
Salas is currently scheduled to appear for sentencing before United States District Court Judge Karen K. Caldwell in Lexington on Jan. 9, 2020, at 10:30 a.m.
Salas faces a maximum prison sentence of not less than 5 years but not more than 40 years. However, any sentence following conviction would be imposed by the court after consideration of the United States Sentencing Guidelines and the federal sentencing statutes.
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Marion Meth User Sentenced to Maximum Sentence in Federal Prison for Possessing GunsRead the Press Release
A Cedar Rapids man, responsible for possessing nine guns while using drugs, was sentenced October 9, 2019, to 120 months in prison.
Logan Gerber, age 30, from Marion, Iowa, received the prison sentence after a May 6, 2019 guilty plea to possession of a firearm by a drug user.
Information disclosed at sentencing and at his plea hearing showed that on June 9, 2018, Gerber was stopped by Cedar Rapids police officers for driving his grandparent’s Mustang without their consent. Officers found Gerber had a loaded Glock 9mm firearm in his waistband. Gerber was under the influence of methamphetamine at the time. Officers also searched another car Gerber was driving prior to taking his grandparent’s car. They located additional guns including a sawed-offed shotgun, a large amount of ammunition, extended magazines, tactical vests, and zip ties. Gerber was later released. In October 2018, Gerber was once again stopped by Cedar Rapids police officers. In his vehicle, officers located a nine-inch knife within Gerber’s reach, marijuana, and another firearm. In total, Gerber was found responsible for unlawfully possessing nine guns.
Gerber was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Gerber was sentenced to 120 months’ imprisonment. He was ordered to make payment of $100 to the special assessment fund. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Ashley Corkery. This case was brought as part of Project Safe Neighborhoods (PSN) through a cooperative effort of the Cedar Rapids Police Department, Marion Police Department, and Bureau of Alcohol, Tobacco, and Firearms. 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.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-00024.
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Man Sentenced to Prison for Straw Purchasing a FirearmRead the Press Release
NEWPORT NEWS, Va. – A Newport News man was sentenced today to one and a half years in prison for straw purchasing a firearm.
According to court documents, Treyshard Jackson-Cooper, 25, was introduced to an individual from a Maryland Bike Crew who asked him to purchase a firearm for him, specifically a Glock, Model 30, semi-automatic pistol. In October 2018, Jackson-Cooper went to Superior Pawn, a licensed dealer of firearms, located in Hampton, and purchased the requested firearm. During the transaction, Jackson-Cooper completed an ATF Form 4473. Question 11(a) on ATF Form 4473 asks whether the individual filling out the form is the “actual transferee/buyer of the firearm.” Jackson-Cooper answered this question in the affirmative, though he subsequently admitted that he was not and knew he was not the actual transferee/buyer at the time he purchased the firearm and filled out the form.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by Senior U.S. District Judge Rebecca Beach Smith. Special Assistant U.S. Attorney Kristen S. Taylor 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. 4:19-cr-48.
Madison Heroin Dealer Sentenced to 4 YearsRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Sedale Lacey-Robinson, 27, Madison, Wisconsin, was sentenced today by U.S. District Judge James D. Peterson to four years in federal prison for distributing heroin laced with fentanyl. Lacey-Robinson pleaded guilty to this charge on July 15, 2019. His sentence will be followed by a three-year term of supervised release.
On five separate occasions in March and April 2019, Lacey-Robinson distributed heroin laced with fentanyl or cocaine to an undercover officer, for a total of 6.7 grams. A search warrant was executed at Lacey-Robinson’s Madison home in April 2019, and officers recovered an additional 1.7 grams of heroin, and a handgun in the garage.
During these drug transactions, Lacey-Robinson was on state probation because he was convicted of distributing heroin in 2014. Lacey-Robinson’s term of state probation was revoked in June 2019, and he was sentenced to 18 months in prison. Judge Peterson rejected his request for a concurrent sentence, and ordered the federal sentence to run consecutively to the state revocation sentence.
The charge against Lacey-Robinson was the result of an investigation conducted by the Madison Police Department. The prosecution of the case has been handled by Assistant U.S. Attorney Rita M. Rumbelow.
MS-13 Gang Member Sentenced to 25 Years’ Imprisonment for Murder on Long IslandRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Marlon Guevara, also known as “Mosquito,” a member of the Sailors Locos Salvatruchas Westside clique of La Mara Salvatrucha, also known as the MS-13 (MS-13), a transnational criminal organization, was sentenced by United States Circuit Judge Joseph F. Bianco to 25 years’ imprisonment for his participation in the October 13, 2016 murder of Dewann Stacks, and conspiracy to distribute marijuana. Guevara pleaded guilty to the charges in January 2019. Upon completion of his sentence, Guevara faces deportation from the United States.
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), Geraldine Hart, Commissioner, Suffolk County Police Department (SCPD), and Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), announced the sentence.
“With today’s sentence, Guevara will now pay for participating in the execution of Dewann Stacks as part of MS-13’s warped mission to attack and kill perceived rivals,” stated United States Attorney Donoghue. “The brutality of this murder is a reminder of the necessity of the Eastern District’s and the FBI’s Long Island Gang Task Force’s commitment to eradicate the MS-13.”
“While today’s sentence might not salve the pain this man inflicted on Mr. Stack’s family, and the community terrorized by the violence going on around them, it does send a message to others they will be held accountable for their murderous and criminal actions,” stated FBI Assistant Director-in-Charge Sweeney. “Our FBI Long Island Gang Task Force is doing all we can to stop MS-13 from further harming anyone, and we’ve made a truly significant impact. Having said that, we still need the community members to know they can come forward with information so we can continue the progress.”
“The senseless homicide of Dewann Stacks, who was brutally attacked in an incomprehensible manner, is a reminder of the ruthlessness and violence committed at the hands of MS-13,” stated SCPD Commissioner Hart. “Our commitment to dismantling MS-13 has led to today’s sentencing, and I would like to thank the Eastern District of New York and the FBI’s Long Island Gang Task Force for their dedication to holding these gang members accountable for their heinous crimes.”
“Today’s sentencing in the brutal murder of Dewann Stacks by MS-13 gang member Marlon Guevara shows that law enforcement is working together with our state and federal partners. We will expand every resource to arrest those offenders of these horrific crimes and follow through until conviction and sentencing. Our combined zero tolerance approach will continue to keep our residents and communities safe,” stated NCPD Commissioner Ryder.
According to court filings and facts presented during the sentencing proceeding, on October 13, 2016, Guevara and other MS-13 co-conspirators drove around the streets of Central Islip and Brentwood hunting for rival gang members to attack and kill. They spotted Stacks on American Boulevard in Brentwood and, believing him to be a rival gang member, decided to kill him. Guevara, wielding a machete, and two other MS-13 members, one armed with a machete and the other a baseball bat, attacked Stacks, beating and hacking him to death. The victim sustained severe sharp and blunt force trauma to the face and head, rendering him nearly unrecognizable.
From April 2016 to March 2017, Guevara and members and associates of the Sailors clique sold street-level quantities of marijuana in and around Brentwood. The profits were turned over to the clique leaders, who purchased more marijuana and firearms and wired money to MS-13 leaders in El Salvador
Guevara was 17 years of age at the time of the murder, and was initially charged by a juvenile information. He subsequently agreed to be transferred to adult status for trial and, in January 2019, he waived indictment and pleaded guilty.
Today’s sentencing is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13. The MS-13’s leadership is based in El Salvador and Honduras, but the gang has thousands of members across the United States, and they are primarily immigrants from Central America. With numerous branches, or “cliques,” the MS-13 is the largest and most violent street gang on Long Island. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders and assaults. Since 2010, this Office has obtained indictments charging MS-13 members with carrying out more than 50 murders in the Eastern District of New York, and has convicted dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, comprising agents and officers of the FBI, SCPD, NCPD, Nassau County Sheriff’s Department, Suffolk County Probation, Suffolk County Sheriff’s Department, Rockville Centre Police Department, New York State Police and Bureau of Alcohol, Tobacco, Firearms and Explosives.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys John J. Durham, Paul G. Scotti and Justina L. Geraci are in charge of the prosecution.
The Defendant:
MARLON GUEVARA (also known as “Mosquito”)
Age: 20
Brentwood, NEW YORKE.D.N.Y. Docket No. 18-CR-275 (S-1) (JFB)
Lower Brule Man Sentenced for Resisting and Impeding a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that a Lower Brule, South Dakota, man convicted of Resisting and Impeding a Federal Officer was sentenced on October 7, 2019, by U.S. District Judge Roberto A. Lange.
Vincent Battese, age 33, was sentenced to 12 months in federal prison, followed by 1 year of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $25.
Battese was indicted by a federal grand jury on October 16, 2018. He pled guilty on July 16, 2019.
The conviction stemmed from an incident on October 5, 2018, when law enforcement went to a known address of Battese, who had an outstanding warrant, and observed Battese in a pickup truck driving from the tree line near the residence. When Battese saw law enforcement, a pursuit ensued and Battese sped away reaching speeds of 80 mph on gravel roads. When Battese attempted to take the vehicle off the road, the pickup became stuck in a ditch and Battese was ultimately apprehended.
This case was investigated by the Bureau of Indian Affairs - Lower Brule Agency, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the U.S. Marshals Service. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Battese was immediately turned over to the custody of the U.S. Marshals Service.
Long Island Man Sentenced to More Than 10 Years in Prison for Supplying Heroin to Queens-Based Bloods GangRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Stanley Fuller was sentenced to 10 years and one month in prison following his guilty plea to two separate heroin distribution conspiracies. The sentencing was held before United States District Court Judge Jack B. Weinstein. Fuller pleaded guilty to the charges in April 2019.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the sentencing.
“Fuller had a lucrative business selling lethal heroin to gang members, but ultimately all he earned for his efforts was a significant prison sentence,” stated United States Attorney Donoghue. Mr. Donoghue thanked the Department of Homeland Security, New York, the Drug Enforcement Administration, New York Division, and the New York City Police Department for their outstanding work on the case.
Between April 2013 and July 2015, Fuller supplied large quantities of heroin to a “set” of the Bloods street gang known as the Paper Chasing Goons, or POV City, based in Jamaica, Queens. As part of the government’s investigation, members of law enforcement intercepted numerous telephone conversations with Fuller and gang members discussing heroin sales, demand and prices, as well as the quality of heroin sold under the brand names “Sweet Dreams,” “Pepsi” and “First Take,” and feedback from his distributors about those brands. Fuller distributed heroin to the gangs’ street-level dealers who, in turn, sold the heroin in the vicinity of Liberty Park, a park in South Jamaica.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Alicia N. Washington, Erin Reid and Jonathan Algor are in charge of the prosecution.
The Defendant:
STANLEY FULLER (also known as “Webo” and “Morty”)
Age: 43
Valley Stream, New YorkE.D.N.Y. Docket Nos. 15-CR-382 (S-2) (JBW) and 19-CR-21 (JBW)
Local Business Owner Sentenced to Federal Prison for Tax Evasion and Ordered to Pay $409,958.99Read the Press Release
Fayetteville, AR – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced today that Derek E. Sands, age 37, of Lincoln, Arkansas, was sentenced to serve 9 months in federal prison followed by another 9 months of home detention while under electronic monitoring and a term of supervised release for 27 months. He was further ordered to pay a total of $409,958.99 in restitution for his conviction on one felony count of Attempt to Evade or Defeat Tax. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, Sands owned and operated a fencing business in Northwest Arkansas using the business names Sands Fencing, Sands Fencing & Outdoor Living Areas, and Sands Enterprises, Inc. The Internal Revenue Service Criminal Investigation Division began investigating Sands after receiving information that he was, among other things, cashing thousands of dollars of his customer’s checks instead of depositing the checks into a bank account. The investigation revealed that Sands last filed a personal federal income tax return for the tax year 2009, and thus has not filed personal federal income tax returns for tax years 2010-2017, even though he earned income and was required to file a return during each of those years.
The investigation revealed that Sands willfully evaded payment and assessment of income tax. He paid his employees in cash and converted customer’s checks to cash. Sands also gave a family member out-of-state customer’s checks to deposit into the family member’s bank account and then had the family write Sands a check for the same amount so he could cash it at his local bank. When customers paid Sands by credit card, he ran the credit card through his company’s material supplier’s bank account and then had the credit applied to his materials account. As a result of Sand’s actions, the tax loss to the United States is $409,958.99.
Sands was named in a one-count Information filed in the Western District of Arkansas, Fayetteville Division, in June 2019. United States Magistrate Judge Erin L. Wiedemann accepted Sands’ guilty plea in June 2019.
The investigation was conducted by IRS Criminal Investigations Division. Assistant United States Attorney Kimberly Harris prosecuted the case for the United States.
Lexington Man Sentenced to 60 months for Trafficking FentanylRead the Press Release
LEXINGTON, Ky. – Chris D. Lewis, 49, of Lexington, was sentenced Thursday to 60 months in federal prison, by United States District Judge Karen K. Caldwell, for possession with intent to distribute 40 grams or more of fentanyl.
According to his plea agreement, in December 2018, Lexington Police officers apprehended Lewis and located 58 grams of fentanyl and 13 grams of methamphetamine in his coat pocket. Lewis further admitted that he intended to distribute the fentanyl to other persons.
Under federal law, Lewis must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for four years following his release.
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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Lev Parnas and Igor Fruman Charged with Conspiring to Violate Straw and Foreign Donor BansRead the Press Release
Defendants Orchestrated Scheme to Advance Their Business Interests and the Political Interests of At Least One Ukrainian Government Official Through Contributions and Donations to Multiple Candidates and Campaign Committees in Violation of Campaign Finance Laws; Two Others Charged in Foreign Donor Scheme
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced that LEV PARNAS, IGOR FRUMAN, DAVID CORREIA and ANDREY KUKUSHKIN were charged in a four-count indictment alleging that each of the defendants conspired to violate the ban on foreign donations and contributions in connection with federal and state elections. In addition, PARNAS and FRUMAN were charged with conspiring to make contributions in connection with federal elections in the names of others, and with making false statements to and falsifying records to obstruct the administration of a matter within the jurisdiction of the Federal Election Commission (“FEC”). PARNAS and FRUMAN were arrested yesterday evening at Washington Dulles International Airport and will be presented at 2:00 p.m. this afternoon before U.S. Magistrate Judge Michael S. Nachmanoff in the Eastern District of Virginia. KUKUSHKIN was arrested yesterday in California and will be presented at 10:30 a.m. Pacific Time before U.S. Magistrate Judge Jacqueline Scott Corley in the Northern District of California. CORREIA remains at large. The case is assigned to U.S. District Judge J. Paul Oetken in the Southern District of New York.
U.S. Attorney Geoffrey S. Berman said: “As alleged in the Indictment, the defendants broke the law to gain political influence while avoiding disclosure of who was actually making the donations and where the money was coming from. They sought political influence not only to advance their own financial interests but to advance the political interests of at least one foreign official – a Ukrainian government official who sought the dismissal of the U.S. ambassador to Ukraine. Protecting the integrity of our elections – and protecting our elections from unlawful foreign influence – are core functions of our campaign finance laws. And as this Office has made clear, we will not hesitate to investigate and prosecute those who engage in criminal conduct that draws into question the integrity of our political process.”
FBI Assistant Director William F. Sweeney Jr. said: “Campaign finance laws exist for a reason. The American people expect and deserve an election process that hasn’t been corrupted by the influence of foreign interests, and the public has the right to know the true source of campaign contributions. These allegations aren’t about some technicality, a civil violation, or an error on a form. This investigation is about corrupt behavior and deliberate law breaking. The FBI takes the obligation to tackle corruption seriously – there are no exceptions to this rule.”
According to the Indictment[1] unsealed today in Manhattan federal court:
Through its election laws, Congress prohibits foreign nationals from making contributions, donations, and certain expenditures in connection with federal, state, and local elections. The election laws also prohibit individuals from using straw donors to make legal contributions in their own names, rather than in the name of the true source of the funds. The purpose of these laws is to prevent the electoral system from illegal foreign influence, and to further inform candidates, their campaign committees, federal regulators and the public of the true sources of contributions. In or about 2018, the defendants violated these laws by, among other things, agreeing to facilitate foreign donations to federal and state candidates, and agreeing to make straw donations to federal candidates in an effort to conceal true sources of the funds.
The Straw Donor Scheme
In or about March 2018, PARNAS and FRUMAN began attending political fundraising events in connection with federal elections and making substantial contributions to candidates, joint fundraising committees, and independent expenditure committees with the purpose of enhancing their influence in political circles and gaining access to politicians. PARNAS and FRUMAN, who had no significant prior history of political donations, sought to advance their personal financial interests and the political interests of at least one Ukrainian government official with whom they were working.
In or about May 2018, to obtain access to exclusive political events and gain influence with politicians, PARNAS and FRUMAN made a $325,000 contribution to an independent expenditure committee (“Committee-1”) and a $15,000 contribution to a second independent expenditure committee (“Committee-2”). Despite the fact that the FEC forms for these contributions required PARNAS and FRUMAN to disclose the true donor of the funds, they falsely reported that the contributions came from Global Energy Producers (“GEP”), a purported liquefied natural gas (“LNG”) import-export business that was incorporated by FRUMAN and PARNAS around the time the contributions were made. In truth and in fact, the donations to Committee-1 and Committee-2 did not come from GEP funds. Rather, the donations came from a private lending transaction between FRUMAN and third parties, and never passed through a GEP account. PARNAS and FRUMAN deliberately made the contributions in GEP’s name in order to evade federal reporting requirements and to conceal that they were the true source of the contributions, including so as to hide from creditors the fact that they had access to funding. When media reports about the GEP contributions first surfaced, an individual working with PARNAS remarked, “[t]his is what happens when you become visible . . . the buzzards descend,” to which PARNAS responded, “[t]hat’s why we need to stay under the radar. . . .”
Among other donations alleged to have been made in furtherance of the scheme, in or about May and June 2018, PARNAS and FRUMAN committed to raise $20,000 or more for a then-sitting U.S. Congressman (“Congressman-1”). At and around the same time PARNAS and FRUMAN committed to raising those funds for Congressman-1, PARNAS met with Congressman-1 and sought Congressman-1’s assistance in causing the U.S. Government to remove or recall the then-U.S. Ambassador to Ukraine (the “Ambassador”). PARNAS’s efforts to remove the Ambassador were conducted, at least in part, at the request of one or more Ukrainian government officials. Moreover, in an effort to reach their contribution commitment to Congressman-1 and further their political goals, in or about June 2018, after FRUMAN had already made a maximum $2,700 contribution to Congressman-1, FRUMAN paid for another maximum $2,700 contribution to Congressman-1 that was made and reported in PARNAS’s name.
In response to a complaint filed with the FEC regarding the $325,000 contribution to Committee-1, and to further conceal the true source of the funds used to make certain of their donations, in or about October 2018, PARNAS and FRUMAN submitted sworn affidavits to the FEC that contained false statements, including that the contribution to Committee-1 “was made with GEP funds for GEP purposes” and that “GEP is a real business enterprise funded with substantial bona fide capital investment; its major purpose is energy trading, not political activity.”
The Foreign Donor Scheme
Beginning in or around July 2018, PARNAS, FRUMAN, CORREIA, and KUKUSHKIN made plans to form a recreational marijuana business (the “Business Venture”) that would be funded by Foreign National-1, a Russian national, and required gaining access to retail marijuana licenses in particular states, including Nevada (the “Business Venture”). To further the Business Venture, PARNAS, FRUMAN, CORREIA, and KUKUSHKIN planned to use Foreign National-1 as a source of funding for donations and contributions to state and federal candidates and politicians in Nevada, New York, and other states to facilitate acquisitions of retail marijuana licenses.
In or about September and October 2018, CORREIA drafted a table of political donations and contributions, which was subsequently circulated to the defendants and Foreign National-1. The table described a “multi-state license strategy” to make between $1million and $2 million in political contributions to federal and state political committees. The table also included a “funding” schedule of two $500,000 transfers. Foreign National-1 then arranged for two $500,000 wires on or about September 18, 2018, and October 16, 2018, to be sent from overseas accounts to a U.S. corporate bank account controlled by FRUMAN and another individual.
PARNAS, FRUMAN, CORREIA, and KUKUSHKIN then used those funds transferred by Foreign National-1, in part, to attempt to gain influence and the appearance of influence with politicians and candidates. For example, on or about October 20, 2018, PARNAS, FRUMAN, and KUKUSHKIN attended a campaign rally for a candidate for a statewide office in Nevada (“Candidate-1”), at which a different Nevada state candidate was present (“Candidate-2”). Following that event, on or about November 1, 2018, a donation in the amount of $10,000 was made to Candidate-2 in FRUMAN’s name, but it was funded with funds from Foreign National-1. On or about November 1, 2018, a donation in the amount of $10,000 was made to Candidate-1 in FRUMAN’s name, but it was funded with funds from Foreign National-1. On or about November 4, 2018, PARNAS asked KUKUSHKIN to arrange for additional funding from Foreign National-1 to make an additional donation to Candidate-1, to which KUKUSHKIN responded that the $1 million Foreign National-1 had already provided to GEP was “in order to cover all the donations whatsoever.” Further communications confirm the defendants’ use of foreign funds – and, in particular, funds from Foreign National-1 – to make the donations described above. For example, on or about October 30, 2018, Foreign National-1 wrote to PARNAS, FRUMAN, and KUKUSHKIN that he had “fulfilled all my obligations completely,” including “500 [for] Nevada” in order to “work on obtaining licenses [in] these states.” KUKUSHKIN similarly noted in response that “Money transferred by [Foreign National-1] to [GEP] was to support the very specific people & states (per [FRUMAN’s] table) in order to obtain green light for licensing.”
Although PARNAS, FRUMAN, CORREIA, and Foreign National-1 continued to meet into the spring of 2019, the Business Venture did not come to fruition.
* * *
PARNAS, 47, FRUMAN, 53, CORREIA, 44, all Florida residents, and KUKUSHKIN, 46, a California resident, are each charged with one count of conspiring to violate the ban on foreign donations and contributions in connection with federal and state elections, which carries a maximum sentence of five years in prison. PARNAS and FRUMAN are also each charged with one count of conspiring to make contributions in connection with federal elections in the names of others, which carries a maximum sentence of five years in prison; one count of making false statements, which carries a maximum sentence of five years in prison; and one count of falsifying records to obstruct the administration of a matter within the jurisdiction of the FEC, which carries a maximum sentence of 20 years in prison.
The statutory maximum and mandatory penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by the judge.
Mr. Berman praised the outstanding investigative work of the FBI.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Rebekah Donaleski and Nicolas Roos are in charge of the prosecution.
The charges contained in the Indictment are merely accusations. The defendants are 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 therein should be treated as an allegation.
Law Enforcement Takedown Targets Interstate Drug Trafficking OrganizationRead the Press Release
MEDFORD, Ore.—Five people have been charged for their roles in a conspiracy to distribute methamphetamine and heroin manufactured in Mexico in and around Klamath Falls, Oregon, announced Billy J. Williams, U.S. Attorney for the District of Oregon.
Rogelio Gomez-Arias, 23, Irving Beas Ceballos, 34, Alexis Chavez-Franco, 22, and Domingo Matias-Hernandez, 36, are each charged by indictment with conspiring to distribute and possess with intent to distribute methamphetamine between May and October 2018. Additionally, Ceballos is charged with possessing methamphetamine and heroin with the intent to distribute and Gomez-Arias, Chavez-Franco and Matias-Hernandez are charged with distributing methamphetamine.
Juan Rodriguez-Ramirez, 62, is charged by criminal complaint with conspiracy to possess with intent to distribute methamphetamine.
All defendants are known to reside in and around Klamath Falls and Dorris, California.
On October 9, 2019, a coordinated, multi-agency law enforcement operation was conducted to dismantle the drug trafficking organization. Five federal search warrants were executed in Klamath Falls and Dorris. Investigators seized more than 37 pounds of methamphetamine, 440 grams of heroin, 14 firearms, and nearly $50,000 in cash and arrested all five defendants.
All five defendants made their first appearances in federal court today before U.S. Magistrate Judge Mark D. Clarke and were detained pending further proceedings. Conspiring to distribute and possessing with intent to distribute methamphetamine carries a maximum sentence of life in prison with a 10-year mandatory minimum.
This case was investigated by the U.S. Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), the Basin Interagency Narcotics Enforcement Team (BINET) and the Siskiyou Unified Major Investigation Team (SUMIT). It is being prosecuted the U.S. Attorney’s Office for the District of Oregon.
An indictment and criminal complaint are only accusations of a crime, and defendants are presumed innocent unless and until proven guilty.
This case was brought as part of the Justice Department’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the department’s strategy for reducing the availability of drugs in the U.S. OCDETF was established in 1982 to mount a comprehensive attack on drug trafficking by disrupting and dismantling major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in coordination with state and local law enforcement.
Kent County Man Charged with Federal Wire Fraud and Tax CrimesRead the Press Release
The five-count indictment alleges that Brian John Scalabrino, formerly of East Grand Rapids, embezzled more than $250,000 from his former employer, and filed false tax returns
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that a federal grand jury charged Brian John Scalabrino, 46, with wire fraud for embezzling more than $250,000 from his former employer, Metal Standard Corporation of Holland, Michigan. He was also charged with four counts of filings false tax returns. He was arrested on these charges and appeared in court today.
The wire fraud charge carries a possible prison term of 20 years. The tax charges carry a possible prison term of three years each.
The indictment alleges that Scalabrino, who was the former Director of Finance for Metal Standard Corporation, embezzled money by altering his payroll records to show a negative federal income tax withholding amount for most pay periods. This fraudulently raised his income most pay periods so that his net income exceeded his reported gross income. He used this method to fraudulently increase his annual pay each year.
The indictment further alleges that Scalabrino created false IRS Form W-2 Wage and Tax Statements which showed fictitious amounts of federal tax withheld from his paycheck. He submitted these false Forms W-2 to the IRS when he filed his federal income tax returns. Scalabrino also wired additional money from Metal Standard Corporation to the United States Treasury to pay the federal income taxes that had not been withheld from his paychecks. Finally, the indictment alleges that Scalabrino filed four false tax returns for each tax year from 2013 through 2016.
The Criminal Investigation section of the Internal Revenue Service is handling this investigation. Assistant U.S. Attorney Clay Stiffler is handling the prosecution.
The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
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James Nickolas Renfro Sentenced to Serve 200 Months in Prison for Distributing Child PornographyRead the Press Release
CHATTANOOGA, Tenn – On October 9, 2019, James Nickolas Renfro, 27, of Chattanooga, Tennessee, was sentenced by the Honorable Curtis L. Collier, Senior U.S. District Court Judge, to serve 200 months in federal prison.
Renfro pleaded guilty on June 19, 2019, to distributing child pornography. The defendant admitted in Court that he had placed an online advertisement offering to permit other collectors of child pornography to engage in a live online session with an 8-year-old child while the child was in a bathtub. The advertisement included nude images of an acquaintance’s child in a bathtub. The defendant admitted that his goal was to trade the live sessions for images of child pornography. The defendant surrendered his electronic devices to law enforcement officials, and a subsequent search of his devices revealed numerous images of child pornography.
“Individuals who distribute child pornography further injure innocent victims each time these illegal images are distributed more widely online," said John Condon, special agent in charge of Homeland Security Investigations Nashville. “Child sex abuse is one of the most serious crimes HSI investigates due to the lasting psychological and physical damage it can inflict on victims, and as such it will continue to be one of the agency’s highest priorities.”
United States Attorney J. Douglas Overbey emphasized the importance of seeking lengthy terms of imprisonment for those convicted of offenses involving the exploitation of children, stating, “Defendants such as Mr. Renfro are dangerous predators, and our office will continue in our vigorous efforts to protect our children, the most vulnerable and innocent of our society.”
The case was investigated by Homeland Security Investigations, Special Agent David Nalley. Assistant U.S. Attorney James T. Brooks prosecuted the case for the United States.
Illegal Alien Sentenced to 41 Months in Federal Prison for Unlawfully Re-Entering the United StatesRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Carlos Humberto Moreno-Hernandez (49, Honduras) to 41 months in federal prison for illegally re-entering the United States after previously being deported. Moreno-Hernandez had pleaded guilty on July 19, 2019.
According to evidence presented in court, on May 17, 2019, deputies from the Orange County Sheriff’s Office arrested Moreno-Hernandez on a state criminal charge of operating a motor vehicle without a valid license. Agents soon discovered that Moreno-Hernandez had previously been deported from the United States on six occasions. Moreno-Hernandez also had three prior felony illegal re-entry convictions, four prior drug-related convictions, and six prior DUI convictions.
This case was investigated by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations (Orlando) and the Orange County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Chauncey A. Bratt.
Honduran Man Recently Charged with Illegal Re-Entry Faces Additional Firearms & Drug Distribution ChargesRead the Press Release
NASHVILLE, Tenn. – October10, 2019 – Franklin Pineda-Caceras, aka “Bomba”, 19, of Honduras, was indicted yesterday by a federal grand jury and charged with immigration violations, firearms and drug offenses, announced U.S. Attorney Don Cochran for the Middle District of Tennessee. Pineda-Caceras was previously charged last month with illegally re-entering the United States after having been previously deported.
In addition to the immigration charge, the indictment charges Pineda-Caceras with being an illegal alien in possession of ammunition on July 17, 2019, and on September 8, 2019 - being an illegal alien in possession of a firearm and ammunition; possessing another firearm which had the serial number removed; possession with intent to distribute marijuana and cocaine; and possession of a firearm in furtherance of a drug crime.
According to charging documents, agents with Homeland Security Investigations (HSI) and officers of the Metropolitan Nashville Police Department (MNPD) first encountered Pineda-Caceres in October 2017, during the execution of an arrest warrant on another individual at a Nashville residence. Pineda-Caceres was taken into custody at that time by the MNPD and charged with drug crimes. HSI agents determined that Pineda-Caceres unlawfully entered the United States in 2014 and a final order of removal was issued in June 2016.
In February 2018, Pineda-Caceres was transferred to the custody of HSI and on May 3, 2018, he was placed on a plane and deported from the United States.
In July, HSI and MNPD learned that Pineda-Caceres had returned to the United States and attempted to arrest him at a residence in Nashville on an outstanding warrant for aggravated kidnapping. Pineda-Caceres was able to evade arrest but officers found cocaine, marijuana and digital scales inside the car he abandoned.
On September 8, Pineda-Caceres was involved in an automobile accident in Nashville and MNPD officers recovered a substantial amount of cocaine from his vehicle. Pineda Caceres was transported to Vanderbilt Hospital where MNPD officers subsequently identified him and arrested him on the outstanding kidnapping warrant.
If convicted, Pineda-Caceres faces a minimum of five years and up to life in prison.
This case is being prosecuted by Assistant U.S. Attorney Ahmed Safeeullah.
An indictment is merely an accusation and the defendant is presumed innocent until proven guilty in a court of law.
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High Desert Tax Preparer Sentenced to More Than 2 Years in Prison for Tax Scheme that Collected over $1 Million in Fraudulent RefundsRead the Press Release
LOS ANGELES – A San Bernardino County tax preparer was sentenced this morning to 26 months in federal prison for filing fraudulent tax returns with the IRS as part of a scheme that illegally generated more than $1 million in refunds.
Scott Douglas Cutting Sr., 70, of Apple Valley, was sentenced by United States District Judge George H. Wu, who also ordered Cutting to pay $1,392,765 in restitution to the IRS.
After a three-day trial in April, a federal jury found Cutting guilty of six counts of aiding and assisting in the preparation of false and fraudulent tax returns.
Cutting, who portrayed himself as a certified public accountant despite his CPA license expiring 30 years ago, prepared and filed fraudulent tax returns on behalf clients. Cutting had tax refunds – which typically were hundreds or thousands of dollars from each fraudulent tax return – directly deposited into his own bank accounts, often giving his clients nothing or only a small portion of the refund.
Cutting filed tax returns on behalf of low- or no-income individuals that falsely claimed income or credits to create a tax refund. Cutting electronically filed the returns with the IRS, but he did not identify himself as the preparer of the tax returns. Cutting often filed tax returns for people when he had no authority to do so – including for dead people – using personal identifying information of individuals and their family members without their permission. He often hired “recruiters” to purchase taxpayers’ personal identifying information to use in his fraudulent tax returns.
Between 2008 and 2016, Cutting prepared and filed approximately 477 false or fraudulent tax returns, and the IRS issued approximately $1,392,765 in refunds, according to the government’s sentencing memorandum.
This case was investigated by IRS Criminal Investigation.
This matter was prosecuted by Assistant United States Attorneys Veronica M.A. Alegría and Bryant Y. Yang of the International Narcotics, Money Laundering, and Racketeering Section.
Hartford Drug Trafficker Sentenced to 3 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that LUIS RODRIGUEZ, 33, formerly of Hartford, was sentenced yesterday by U.S. District Judge Michael P. Shea in Hartford to 36 months of imprisonment, followed by three years of supervised release, for distributing heroin and fentanyl in Hartford.
According to court documents and statements made in court, in August 2017, the Drug Enforcement Administration’s Hartford Task Force launched an investigation into an organization that was selling large amounts of heroin, fentanyl and other narcotics in Hartford. The investigation, which included approximately six months of court-authorized wiretaps, controlled purchases of narcotics and physical surveillance, revealed that members of the organization, including Rodriguez, supplied distribution quantities of narcotics to several Hartford-area drug dealers, and used multiple locations in Hartford to process, store and distribute narcotics.
Rodriguez was intercepted during wiretapped conversations discussing the extensive narcotics distribution enterprise, and attempting to broker the acquisition of firearms.
Rodriguez and other members of the organization were arrested on July 19, 2018. On that date, investigators executed 10 search warrants and seized approximately 2.7 kilograms of fentanyl, one kilogram of heroin, approximately 500 grams of crack cocaine, 100 grams of cocaine, eight firearms, cash, and other evidence of narcotics trafficking activity.
On August 2, 2018, a grand jury in Hartford returned an indictment charging Rodriguez and 15 co-defendants with various offenses.
On May 22, 2019, Rodriguez pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute heroin, fentanyl, cocaine and cocaine base (“crack”).
Rodriguez, who is currently residing in Rocky Hill while released on a $100,000 bond, is required to report to prison on November 15.
The Drug Enforcement Administration’s Hartford Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments. Agencies assisting the investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, Connecticut Department of Correction, and the East Hartford, New Britain, Newington and West Hartford Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Guatemalan Man Guilty of Heroin TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Cesar Moscoso-Sagastume, age 39, a citizen of Guatemala, pleaded guilty on October 8, 2019, before Senior U.S. District Court Judge A. Richard Caputo, to participating in a conspiracy that transported more than a kilogram of heroin that was seized by investigators on Interstate 80 near Hazleton in February 2018.
According to United States Attorney David J. Freed, Moscoso-Sagastume admitted to conspiring with others to distribute and possess with intent to distribute between three and ten kilograms of heroin (which is equivalent to between 120,000 and 400,000 retail bags of heroin) between November 2017 and February 2018. Investigators seized approximately five kilograms of heroin during the investigation.
Judge Caputo ordered a presentence investigation to be completed. Sentencing is scheduled for April 30, 2020.
The charge against Moscoso-Sagastume resulted from an investigation by the Drug Enforcement Administration (DEA) and the Pennsylvania State Police. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
The maximum penalty under federal law is life imprisonment. The charge also carries a mandatory minimum penalty of 10 years in prison. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Grand Jury Returns Three IndictmentsRead the Press Release
MADISON, WIS. – A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Fort Atkinson Man Charged With Distributing Child Pornography
Kyle A. Riggs, 33, Fort Atkinson, Wisconsin, is charged with two counts of distributing a visual depiction of a minor engaging in sexually explicit conduct. The indictment alleges that Riggs used Kik, a mobile app, to distribute two child pornography videos on October 5, 2019.
If convicted, Riggs faces a mandatory minimum penalty of five years and a maximum of 20 years in federal prison on each count. The charges against him are the result of an investigation by the Wisconsin Department of Justice Division of Criminal Investigation, the Eau Claire and Fort Atkinson Police Departments, the Jefferson and Shawano County Sheriffs’ Offices, and the Wisconsin Department of Natural Resources. Assistant U.S. Attorney Elizabeth Altman is handling the prosecution.
Madison Man Charged With Using Unauthorized Access Devices to Commit Wire Fraud
Ahmad Kanan, 48, Madison, Wisconsin, is charged with using unauthorized access devices with the intent to defraud. The first count of the indictment charges him with using the account number and routing number of a bank account of a foreign embassy from July 21 to December 21, 2017, to obtain things of value totaling approximately $191,836. The second count charges him with using the account number and routing number of a bank account of a foreign embassy on December 21, 2017, to attempt to obtain things of value totaling approximately $35,370.
If convicted, Kanan faces a maximum penalty of 10 years in federal prison on each count. The charges against him are the result of an investigation by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Wisconsin Department of Justice Division of Criminal Investigation, and the Wisconsin Department of Revenue, Office of Criminal Investigation. Assistant U.S. Attorneys Meredith Duchemin and Zachary Corey are handling the prosecution.
Illinois Man Charged With Drug Crime
Enricki Gomez, 30, Rockford, Illinois, is charged with possessing 500 grams or more of cocaine with the intent to distribute. The indictment alleges that he possessed the cocaine on October 7, 2019.
If convicted, Gomez faces a mandatory minimum penalty of five years and a maximum of 40 years in federal prison. The charge against him is the result of an investigation by the Drug Enforcement Administration. Assistant U.S. Attorney Aaron Wegner is handling the prosecution.
Goldsboro Man Convicted for Distribution of Fentanyl and HeroinRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announces that DONTE TERRILL KORNEGAY, A/K/A “BOSTON,” was found guilty by a jury sitting in New Bern on Friday, October 4, 2019, for Conspiracy to Distribute Heroin and Fentanyl, and Distribution of Fentanyl.
The case involved the overdose death by fentanyl of a twenty-one year old victim in Sneads Ferry, North Carolina. Trial testimony and text messages and phone toll records recovered from witnesses’ cell phones established that on the night of April 6, 2016, the victim purchased fentanyl from a coconspirator, at the direction of KORNEGAY. In addition, the trial testimony revealed that prior to that night, KORNEGAY had been distributing heroin in the Sneads Ferry area since 2015.
At sentencing, which is scheduled for the February, 2020 term of court, kornegay faces a maximum term of imprisonment of 20 years on each count, a $1,000,000 fine, and a term of supervised release following any term of imprisonment.
Mr. Higdon commented: “The United States Justice Department and the United States Attorney’s Office are aggressively pursuing distributors of heroin and fentanyl. These drugs pose a serious danger to the people of Eastern North Carolina and we intend to remove that danger as part of our effort to “Take Back North Carolina” from the drug traffickers and violent criminals.”
The Onslow County Sheriff’s Office, with assistance from the Drug Enforcement Administration’s Wilmington Resident Office, conducted the investigation in this matter. Assistant United States Attorneys Ethan Ontjes and Toby Lathan represented the government.
GirlsDoPorn Owners and Employees Charged in Sex Trafficking ConspiracyRead the Press Release
Assistant U. S. Attorneys Joseph Green (619) 546-6955 and Sabrina Feve (619) 546-6786
SAN DIEGO – The owners and two employees of the popular adult websites GirlsDoPorn and GirlsDoToys were charged in federal court today with sex trafficking crimes in connection with a scheme to deceive and coerce young women to appear in sex videos.
According to a complaint, owners Michael James Pratt and Matthew Isaac Wolfe along with adult film performer and producer Ruben Andre Garcia and administrative assistant Valorie Moser used deception and false promises to lure the victims, who had responded to ads for modeling jobs that would supposedly pay $5,000. Eventually the women were told the job was really for adult films.
To persuade the women to participate, the defendants convinced them they could remain anonymous and that their videos would not be posted on the internet. In reality, the entire purpose was to post the videos on the internet. According to financial records, the websites have generated more than $17 million in revenue.
According to the complaint, the circumstances were not at all what was promised. Some of the women were pressured into signing documents without reviewing them and then threatened with legal action or outing if they failed to perform; some were not permitted to leave the shooting locations until the videos were made; family and friends and the general public eventually saw the videos online; some victims were harassed and ridiculed and estranged from their families as a result; and some were sexually assaulted and in at least one case raped. Some were forced to perform certain sex acts they had declined to do, or they would not be paid or allowed to leave.
Garcia was arrested on October 9; Wolfe was taken into custody Tuesday by immigration officials and transferred to federal criminal custody. They were arraigned this afternoon. Moser’s arraignment is scheduled for tomorrow before U.S. Magistrate Judge Linda Lopez. Pratt is a fugitive.
On October 9 at approximately 7:00 p.m., FBI agents executed a search warrant at an office located in the Spreckels Theatre Building located at 121 W. Broadway in San Diego. According to the search warrant, the office was used by members of the conspiracy to operate the GirlsDoPorn website.
Any additional victims of the alleged crime are encouraged to call the San Diego FBI at 858-320-1800.
DEFENDANTS Case Number 19cr19mj4453
Michael James Pratt Age: 36 Unknown
Matthew Isaac Wolfe Age 37 San Diego,
Ruben Andre Garcia Age: 31 San Diego,
Valorie Moser Age: 37 San Diego,
SUMMARY OF CHARGES
Counts 1-3 (charging Pratt, Wolfe and Garcia)
Sex Trafficking by Force, Fraud and Coercion, 18 U.S.C. § 1591(a) and (b)(1)
Minimum penalty: Fifteen years in prison; Maximum penalty: life in custody, $250,000 fine.
Count 4 (charging all defendants)
Conspiracy to Commit Sex Trafficking by Force, Fraud and Coercion, 18 U.S.C. § 1594
Maximum Penalty: Life in prison, $250,000 fine.
INVESTIGATING AGENCY
FBI
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Gainesville man sentenced for defrauding his former brokerage firm clients with “biofuel” schemeRead the Press Release
ATLANTA – Winston Wade Turner, a former licensed broker for nationwide financial services firms, has been sentenced for mail fraud.
“Turner pitched a bogus biofuel scheme to former clients he met through reputable brokerage firms where he previously worked,” said U.S. Attorney Byung J. “BJay” Pak. “He lured his victims into signing ‘corporate notes’ with promises of immediate returns on a profitable biofuel producer which turned out to be only a shell company of his own invention. This case is a reminder that if it seems too good to be true, it usually is.”
“Retirees simply looking for safe and secure returns on their hard earned investments should not have to worry about someone like Turner, who preyed on them for his own greed,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Those individuals who use false promises to capitalize financially at the expense of unsuspecting investors should be aware that the FBI will vigorously pursue them for prosecution.”
According to U.S. Attorney Pak, the indictment, and other information presented in court: beginning in July 2015, Turner represented to investors that he was a broker for “North American BioFuel,” a purported biofuel producer based in Bradenton, Florida. Turner encouraged his victims, former clients from his previous employment at two financial services firms, to move funds he had invested for them, or in some cases, new funds, in North American BioFuel. Turner promised them their ‘loans’ would generate a stream of monthly interest payments and return of the full principal at the end of investment periods ranging from one to three years.
Unknown to his victims, Turner had been fired, lost his broker’s license and been banned from the securities industry. Turner represented the company as specializing in and already producing biofuel, at a time when it was in fact only a shell company consisting of a rented mailbox address and articles of incorporation in Florida. Turner typically made a fraction of the promised interest payments, did not return the principal, and ceased contact with the victims. Turner was found to have bilked investors in the fictitious biofuel firm of $877,188.
Winston Wade Turner, 50, of Jefferson, Georgia, was sentenced by U.S. District Court Judge Richard W. Story to two years, nine months in prison to be followed by three years of supervised release, and was ordered to pay $877,188 in restitution. He was also ordered to forfeit $160,149.52. Turner pleaded guilty to mail fraud on June 5, 2019.
This Federal Bureau of Investigation investigated this case.
Assistant U.S. Attorney Brian Pearce prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Framingham Man Charged with Producing False Identification DocumentsRead the Press Release
BOSTON – A Framingham man was indicted today in federal court in Boston with producing a false identification document, aiding and abetting and Social Security card fraud.
Cristiano Ribeiro De Moura, 32, was indicted on one count of producing an identification document, authentication feature, or false identification document; aiding and abetting; and one count of Social Security card fraud.
According to the charging documents, Ribeiro De Moura sold four counterfeit Lawful Permanent Resident cards and four counterfeit Social Security cards in July and August 2019. Ribeiro De Moura charged $350 for a set of fake documents, which included one Lawful Permanent Resident card and one Social Security card. The buyers provided their name and date of birth, and Ribeiro De Moura provided the Social Security number.
The charge of producing a false identification document provides for a sentence of up to 15 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of Social Security card fraud provides for a sentence of up to five years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Boston Field Office; and Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Four Health Care Professionals Indicted for Stealing Controlled Substance Medications for Their Own Personal UseRead the Press Release
St. Louis, Missouri –Four licensed health care professionals were indicted today by a federal grand jury for receipt of controlled substance medications by deceit, fraud and misrepresentation. They stole Schedule II controlled substances from the locked medication cabinets where they worked and falsified patient and/or pharmacy records to conceal the theft. The following individuals were indicted:
Alyssa Wedepohl, 29, of Hillsboro, Missouri, was a registered nurse at Mercy Hospital South. Between October 2018 and May 2019, Wedepohl stole Hydrocodone, Hydromorphone, Oxycodone, Morphine, Dronabinol, Lorazepam, and Tramadol.
Jessica Powell, 32, of St. Louis County, Missouri, an employee of Davita Hospital Services, was a registered nurse in the dialysis unit at DePaul Hospital in Bridgeton and SSM Health Lake St. Louis Hospital. Between February 13, 2017 and February 14, 2018, Powell stole Hydromorphone and Oxycodone-Acetaminophen.
Jacob Gottreu, 26, of St. Charles, Missouri, was a licensed paramedic and worked in the ER of SSM Health DePaul Hospital. Between May 1, 2019 and June 12, 2019, Gottreu stole Fentanyl.
Rebekkah Johnson, 27, of St. Louis, Missouri, was a pharmacist and worked the night shift at the CVS in Clayton. During 2019, Johnson stole Methylphyphenidate ER, Vyvanse, and Dextroamphetamine-amphetamine ER.
If convicted, each face a maximum penalty of four years in prison and a $250,000 fine. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The Drug Enforcement Administration is investigating these cases. Assistant United States Attorney Dorothy McMurtry is handling this case.
Charges set forth in the Indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Fort Wayne Man Sentenced to 60 Months in PrisonRead the Press Release
FORT WAYNE – Billy Harris, age 38, of Fort Wayne, Indiana was sentenced before U.S. District Court Judge Holly A. Brady upon his plea of guilty to being a felon in possession of a firearm, announced U.S. Attorney Kirsch.
Harris was sentenced to 60 months in prison followed by 2 years of supervised release.
According to documents in this case, in July of 2017, Mr. Harris possessed a firearm after twice being convicted of felony offenses. In 2012, Harris was convicted of resisting law enforcement and in 2015, he was convicted of invasion of privacy along with committing domestic battery in presence of a child less than 16 years of age. Both these convictions were in Allen Superior Court, Allen County, Indiana.
The case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Indiana State Police. The case was handled by Assistant United States Attorney Lesley Miller-Lowery
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Former Montgomery County Music Teacher Facing Federal Indictment for Possession of Child PornographyRead the Press Release
Greenbelt, Maryland – A federal grand jury today returned an indictment charging Charles Victor Kopfstein-Penk, age 74, of Bethesda, Maryland, with possession of child pornography. Kopfstein-Penk, a music teacher who gave lessons out of his home, was arrested earlier this year on related state charges.
The federal indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI) Baltimore; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Montgomery County State’s Attorney John McCarthy.
According to the indictment, Kopfstein-Penk possessed images depicting the sexual abuse of children, including images of child pornography involving a prepubescent minor. The indictment also seeks the forfeiture of any property traceable to profits from the offense or used to commit the offense, including a desk top computer and five external hard drives.
Anyone who may have information about possible victims or details related to the investigation of Charles Victor Kopfstein-Penk is asked to contact the Maryland Center for Missing and Exploited Children at 1-800-637-5437.
If convicted, Kopfstein-Penk faces a maximum sentence of 20 years in federal prison for possession of child pornography. Kopfstein-Penk had an initial appearance in U.S. District Court in Greenbelt, and was released under the supervision of U.S. Pretrial Services.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur commended HSI, the Maryland State Police Internet Crimes Against Children Task Force, and the Montgomery County State’s Attorney’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Rajeev Raghavan and Kristi N. O’Malley, who are prosecuting the federal case.
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Former Jefferson Parish Justice of the Peace Sentenced to Three Years in Federal Prison for Corruption and Financial FraudRead the Press Release
Shreveport, New Orleans, Lafayette, La. – Today, Patrick Hale Dejean, former Justice of the Peace for the Second Justice Court of Jefferson Parish, was sentenced by U.S. District Judge Mary Ann Vial Lemmon to three years in federal prison for committing 13 counts of mail fraud and three counts of making false statements to a bank, announced United States Attorney for the Western District of Louisiana, David C. Joseph. Judge Lemmon also ordered Dejean to serve a three-year term of supervised release following confinement and to pay $73,046.49 in restitution. On February 27, 2019, after a 7-day trial, Patrick Dejean was found guilty by a federal jury in New Orleans for using his position to illegally obtain wage garnishments and loans.
During Dejean’s trial, the government proved that from May 2009 through August 2016, Dejean diverted money from a Second Justice Court bank account for his personal use and made false statements to a bank to improperly borrow money on behalf of the court, which he later spent on himself.
At trial, jurors heard evidence that Dejean systematically abused the Second Justice Court’s garnishment procedures to defraud creditors and debtors with business before the court. As a Justice of the Peace, Dejean judged small claims civil cases for creditors seeking payment from customers who were behind in their payments. If a judgment was obtained by the creditor, Dejean issued garnishment judgments instructing employers of the debtors to send wage garnishments directly to the Second Justice Court.
Evidence showed that Dejean improperly used this process to enrich himself by failing to forward the proper amounts of the wage garnishments collected to the creditors and instead spent the money on himself, primarily to gamble at local casinos. In order to facilitate his scheme, Dejean would continue to garnish the wages on unsuspecting debtors after they had already paid the amount owed under the judgment.
The jury also found that Dejean lied on bank applications in 2012 and 2013 to influence First Bank and Trust to lend over $50,000 to the Second Justice Court. Dejean applied for bank loans on behalf of the court despite knowing that the court was prohibited by Louisiana law from borrowing money. Rather than using the loan proceeds for expenses related to the court, Dejean gambled with the money and otherwise used it for personal expenses.
“The sentence today holds the defendant responsible for the crimes he committed as a Louisiana elected official,” said U.S. Attorney Joseph. “In this case, Justice of the Peace Dejean targeted some of the most vulnerable members of our society and stole their hard earned wages, defrauded banks, and abused the trust placed in him by the public. This prison sentence should serve as a warning to other Louisiana public officials who may intend to use elected office to line their own pockets. Public corruption will not be tolerated in Louisiana.”
“The sentence handed down today should send a message to all public officials who engage in illegal and corrupt practices that they will be held accountable for their conduct,” said FBI Special Agent in Charge of the New Orleans Field Division Bryan A. Vorndran. “Patrick Dejean misused his office and a position of trust for his own personal benefit. The FBI New Orleans Field Office stands with our federal, state, and local partners and prosecutors to declare our commitment to vigorously investigate and prosecute corruption at all levels.”
The case was prosecuted by the U.S. Attorney’s Office for the Western District of Louisiana because the U.S. Attorney’s Office for the Eastern District of Louisiana was recused from the case.
The FBI, Louisiana Legislative Auditor, Metropolitan Crime Commission, Jefferson Parish Sheriff’s Office, and Jefferson Parish Inspector General’s Office conducted the investigation. U.S. Attorney David C. Joseph and Assistant U.S. Attorneys John Luke Walker and David J. Ayo prosecuted the case.
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Former Dental Clinic Owner Sentenced for $1 Million Health Care, Payroll Tax FraudRead the Press Release
SPRINGFIELD, Mo. – A Marshfield, Missouri, woman has been sentenced in federal court for multiple fraud schemes totaling more than $1 million that involved Medicaid payments to her dental clinics, failing to pay over payroll taxes and collecting unemployment benefits she wasn’t entitled to receive.
Pamela M. Van Drie, 59, was sentenced by U.S. District Judge M. Douglas Harpool on Wednesday, Oct. 9, to four years and nine months in federal prison without parole. The court also ordered Van Drie to pay $1,139,794 in restitution.
Van Drie and her husband, Lorin G. Van Drie, 60, were convicted at trial on Feb. 20, 2019, of all 40 counts contained in a federal indictment.
Pamela and Lorin Van Drie were the owners of All About Smiles, LLC, a Springfield company that provided dental services at clinics in Springfield (until it closed in November 2015), Mountain Grove, Missouri (until it closed in October 2014), and Bolivar, Missouri (until it closed in March 2014). They also owned PL Family Management Company, LLC, which managed the staff for those clinics.
$885,748 Health Care Fraud Conspiracy
Pamela Van Drie participated in a conspiracy to commit health care fraud from Oct. 6, 2010, to Aug. 19, 2015. This conspiracy consisted of two fraud schemes. Pamela Van Drie and Dr. James R. Dye, a dentist at the clinics, conspired to fraudulently bill Medicaid for speech aid prosthetics they did not provide to Medicaid beneficiaries. They also conspired to bill Medicaid for dentures and other dental services for beneficiaries who were ineligible to receive such services because the services were not medically necessary.
In the first scheme, Pamela Van Drie and Dye purchased Ortho-Tain orthodontic appliances (designed to straighten teeth without braces) for approximately $50 each, provided them to Medicaid pediatric beneficiaries and billed each such appliance to Medicaid as a speech aid prosthesis for approximately $695. They knew the Ortho-Tain appliances should have been billed to Medicaid as orthodontic services; they also knew Medicaid did not cover orthodontic services unless the Medicaid program’s requirements were met and they received precertification, which required review by a dentist/orthodontist employed by Medicaid. They billed the Ortho-Tain appliances as speech aid prostheses in order to bypass the precertification requirement.
Between Oct. 6, 2010, and Aug. 19, 2015, Pamela Van Drie submitted and received payment for approximately 241 claims submitted for speech aid prostheses. On each claim, All About Smiles (or its predecessor company) was paid between $675 to $695, for an approximate total amount of $165,700.
In the second scheme, Pamela Van Drie and Dye arranged for All About Smiles to provide dentures and other dental services to adults who did not qualify for Medicaid reimbursement. They submitted claims to Medicaid for those dentures and other dental services, knowing that Medicaid’s requirements were not met. Pamela Van Drie, through All About Smiles, submitted and received $720,048 on numerous claims for dentures and other dental services that lacked the required written referral from a physician.
Dye pleaded guilty on Feb. 11, 2016, to health care fraud in a separate but related case. According to court documents, the Missouri Dental Board suspended Dye’s license, a suspension that arose from his substandard care for patients at the Van Dries’s clinics.
$194,751 Payroll Tax Fraud ConspiracyPamela and Lorin Van Drie participated in a conspiracy to defraud the government by failing to pay over to the IRS payroll taxes from Jan. 31, 2013, to Jan. 31, 2015. Although payroll taxes were withheld from the paychecks of employees at All About Smiles and PL Family Management Company, the Van Dries failed to pay over to the IRS approximately $194,751 in payroll taxes.
The Van Dries diverted a substantial amount of money from their businesses during this period. Rather than paying the payroll taxes due and owing, the Van Dries purchased and made payments on a 2013 Tracker boat and trailer, a recreational vehicle, multiple vehicles (including a 2010 Hummer and a 2009 Mercedes), several utility trailers, two golf carts, a motorcycle, expenses associated with two homes and family vacations in Florida, and a pulling truck called “Momma’s Money,” which Pamela Van Drie’s son used in pulling competitions throughout Missouri.
Additional Charges
In addition to these two criminal conspiracies, Pamela Van Drie was found guilty of eight counts of health care fraud related to fraudulent claims for speech aid prosetheses and 10 counts of health care fraud related to fraudulent claims for dentures and other dental services.
Pamela Van Drie also was found guilty of one count of theft of public money related to $3,520 in unemployment benefits that she was not entitled to receive while working full-time at All About Smiles. From June 2012 through the end of December 2012, Medicaid paid into Pamela and Lorin Van Drie’s business bank account three-quarters of a million dollars. Also during that time period, Pamela Van Drie took a weeklong vacation to a resort in Florida. Nonetheless, from June 2012 through January 2013, Pamela Van Drie falsely certified to the Missouri Department of Employment Security 31 times that she was not employed, was available and searching for work, and was not receiving any type of employment income.
In addition to the payroll tax conspiracy, Lorin Van Drie also was found guilty of 18 counts of failure to pay over employment tax and one count of theft of public money related to $11,840 in unemployment benefits that he was not entitled to receive while working at his own construction company and doing maintenance work at All About Smiles.
Under federal statutes, Lorin Van Drie is subject to a sentence of up to 10 years in federal prison without parole for theft of unemployment benefits and five years in federal prison without parole on each additional count of conviction. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing has not been scheduled.
This case is being prosecuted by Assistant U.S. Attorneys Cindi S. Woolery and Steve Mohlhenrich and Special Assistant U.S. Attorney Shannon Kempf of the Missouri Attorney General’s Office. It was investigated by Health and Human Services – Office of Inspector General, the Missouri Attorney General’s Office Medicaid Fraud Control Unit and IRS-Criminal Investigation.
Former Chief Financial Officer of the Boyd Group Pleads Guilty to Stealing More Than 3.5 Million DollarsRead the Press Release
St. Louis, MO – Bryan G. Vonderahe, 45, of Kirkwood, Missouri, pleaded guilty to three felony counts of wire fraud. Vonderahe appeared in federal court today before U.S. District Judge Ronnie L. White who accepted his plea and set his sentencing date for January 16, 2020.
According to court documents, beginning during January 2012 and continuing through January 2019, Vonderahe schemed to defraud The Boyd Group and its affiliated companies where he was employed as chief financial officer and controller. Vonderahe issued approximately 500 company checks to himself during that period of time, totaling approximately 3.8 million dollars, without the knowledge or authority of the company’s ownership. Vonderahe falsified internal company records and issued false financial statements to the company’s outside auditors in order to cover up and conceal his fraud scheme. Vonderahe used the stolen and embezzled funds for his own personal use, unrelated to the legitimate business of the company, including to pay for travel for himself and his family to locations such as Florida, Colorado, and Nevada; to make payments on his personal residential mortgage; and to pay for gambling and related activities.
“It is unfortunate that some people are willing to betray the trust placed in them,” said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. “But when it occurs, we will aggressively act to protect businesses and the public from fraud and corruption.”
As part of his guilty plea, Vonderahe agreed to forfeit to the United States a GMC Acadia Denali; a Land Rover, Range Rover Sport; and his residence at 1943 Windy Hill Road, St. Louis, MO 63122.
Vonderahe faces a maximum penalty of 20 years in prison and a $250,000 fine as to each of the three counts. Restitution is also mandatory. In determining the actual sentence, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The Federal Bureau of Investigation is investigating this case. Assistant U.S. Attorneys Hal Goldsmith and Kyle Bateman are handling the case for the U.S. Attorney’s Office.
Former Chief Executive Officer of Mozaic Group Ltd. Pleads Guilty to Bank FraudRead the Press Release
St. Louis, MO –Mary Ann Gibson, 63, of St. Louis, Missouri, pleaded guilty to one felony charge of bank fraud. Gibson appeared this morning in front of United States District Judge Henry E. Autrey who accepted her plea and set her sentencing date for January 16, 2020.
According to court documents, Gibson obtained a line of credit for Mozaic Group Ltd. from Enterprise Bank and Trust and subsequently drew down on that line of credit to run the business. From approximately January 2016 through August 2017, Gibson falsely and fraudulently inflated the cash flow of the company she reported to the bank in order to maintain and increase the line of credit from Enterprise Bank and Trust. Mozaic and Gibson thereafter defaulted on the loan because Mozaic did not, in fact, have the cash flow Gibson reported to the bank. Gibson’s fraud resulted in a loss of approximately $2.5 million to the bank.
Gibson faces up to 30 years in prison and a fine of not more than $1,000,000 or both. Restitution is also mandatory. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The Federal Bureau of Investigation is investigating this case. Assistant U.S. Attorney Lindsay McClure-Hartman is handling the case for the U.S. Attorney’s Office.
Former Bank Executive Pleads Guilty to Fraud Related to Failed Country Bank of Aledo, IllinoisRead the Press Release
ROCK ISLAND, Ill. – The former executive vice president and chief loan officer for the failed Country Bank of Aledo, Ill., Dana Frye, today pleaded guilty to charges of making false statements to the bank. During his appearance before Chief U.S. District Judge Sara Darrow, Frye pleaded guilty to conspiring with others to make materially false statements to the Country Bank board of directors to influence the bank to make loans to entities in which he held a personal financial interest.
Frye, 66, currently of Bettendorf, Iowa, served as executive vice president and chief lending officer for Country Bank, in Aledo, from its formation in March 2000 to Dec. 31, 2010. During that time, Frye held financial interest in multiple real estate developments. These developments included a golf course and surrounding residential lots in Sherrard, Ill., known as the “Fyre Lake Project,” which benefitted from Country Bank loans that totaled more than $20 million.
Frye admitted that he conspired with others to influence Country Bank to make loans to projects in which he held a personal financial interest, including the Fyre Lake Project, but failed to disclose his financial interest. Frye further admitted that he used his position to assist others to secure loans for the Fyre Lake Project and another project in Milan, Ill.
Frye held ownership in multiple companies that either directly participated in real estate development or provided services to persons and entities engaged in the development. One company, known as Webgem, Inc., owned by Frye and his son, provided accounting and other services to developers. Frye did not disclose to the bank board of directors that Webgem was going to be paid, and eventually was paid, $480,000, from bank loans of $5 million related to the project in Milan. In May 2009, Country Bank received $4.1 million in aid through the Department of Treasury’s Troubled Asset Relief Program, known as TARP. In October 2011, Country Bank failed and the Federal Deposit Insurance Corporation, as receiver, covered losses in excess of $70 million.
At sentencing, scheduled on February 26, 2020, Frye faces a potential sentence of imprisonment of five years along with payment of restitution.
The FDIC Office of Inspector General and the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) conducted the investigation. First Assistant U.S. Attorney Douglas Quivey and Assistant U.S. Attorney Douglas McMeyer represent the U.S. Attorney’s Office for the Central District of Illinois in the case prosecution.
Florida Woman Sentenced to Federal Prison for Health Care FraudRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Natacha Gonzalez, age 47, of Weston, Florida, was sentenced to 12 months and one day in prison after pleading guilty to Health Care Fraud and Aggravated Identity Theft. Gonzalez was also ordered to pay $61,738.08 in restitution to various insurance companies. United States District Court Judge Timothy Cain, of Anderson, presided.
Evidence presented to the court established that Gonzalez owned a Florida business engaged in medical marketing. Gonzalez brokered false prescriptions for compounded medications and received a profit when they were filled.
Gonzalez identified three doctors and obtained blank prescriptions in their names. Gonzalez forged prescriptions by completing the blank prescriptions with drug names and the doctor’s information. These forged prescriptions were then sent to a South Carolina pharmacy to be filled. The pharmacy then billed insurers for these fraudulent prescriptions and received payment. The pharmacy then sent a portion of the payment to Gonzalez.
“Fraud on our insurance companies raises health care costs for everyone,” said U.S. Attorney Lydon. “The U.S. Attorney’s Office is committed to protecting the integrity of our health care system holding accountable those who seek to enrich themselves through unlawful kickback schemes.”
"This sentencing is the product of a thorough investigation and demonstrates the intent of the Defense Criminal Investigative Service (DCIS) and our law enforcement partners to root out fraud and corruption involving medical professionals who put patients’ health at risk with criminal intent,” said Special Agent in Charge Robert E. Craig, Jr., DCIS Mid-Atlantic Field Office. “DCIS will continue to protect the integrity of the Department of Defense by targeting fraud, waste, and abuse that negatively impacts critical programs such as TRICARE."
Agents of the DCIS and the United States Army Criminal Investigation Command Major Procurement Fraud Unit – Atlanta investigated the case. Assistant United States Attorney Winston David Holliday, Jr., of the Columbia office prosecuted the case.
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Federal grant of $200,000 to help Yellowstone Substance Abuse Connect develop community planRead the Press Release
BILLINGS—A $200,000 federal grant has been awarded to help fund efforts of Yellowstone Substance Abuse Connect to increase prevention and treatment efforts as part of a larger initiative to reduce violent crime in the community, U.S. Attorney Kurt Alme announced today.
The Office of National Drug Control Policy awarded $200,000 to the Rocky Mountain High Intensity Drug Trafficking Area, which will fund Yellowstone Connect and their efforts.
The grant is the second major award from ONDCP for this effort. Last October, a $358,741 grant launched Yellowstone Connect and their project to create a community plan by 2020 for prevention, treatment and diversion.
Yellowstone Connect was organized though the leadership of United Way of Yellowstone County and Project Safe Neighborhoods, which is a Department of Justice initiative reinvigorated two years ago to reduce violent crime. Yellowstone Connect is a coalition of more than 82 area nonprofit organizations and governmental entities. The community plan will be available to other communities.
“We are excited to receive this second grant, which will continue the important work Yellowstone Connect is doing create a community plan to address substance abuse. Enforcement is only a part of the solution to reducing violent crime. We need the community’s help and support to reduce drug demand through prevention, treatment and drug court diversion,” U.S. Attorney Alme said.
“I want to thank all of our PSN federal, state and local law enforcement, and probation and parole partners for their outstanding work to make this community safer. I also want to thank the Rocky Mountain HIDTA Executive Board and other members of the Montana Sub Committee, including Bryan Lockerby, administrator of the Montana Division of Criminal Investigation, and Billings Police Chief Rich St. John. In addition, I want to recognize United Way of Yellowstone County for its leadership, the City of Billings for administering the grant, and all of the Yellowstone Connect partners for their commitment to reducing the demand for meth in this community,” U.S. Attorney Alme said.
“These additional HIDTA funds are game-changing for the coalition’s ability to move to action. I want to thank Project Safe Neighborhoods and our HIDTA partners for making this possible -- especially U.S. Attorney Kurt Alme, and Billings Police Chief Rich St. John. I also want to thank our entire Substance Abuse Connect executive team, consultants, and all two hundred plus coalition members who have contributed to the work so far. With this new funding, I believe we will soon be celebrating prevention, treatment, and diversion wins,” said Kristin Lundgren, United Way’s Director of Impact.
Through PSN in Yellowstone County, federal, state and local law enforcement and probation and parole identified methamphetamine trafficking as the leading cause for an increase in violent crime and have focused on arresting and prosecuting drug traffickers, armed robbers and violent felons with firearms. The enforcement partners also recognize that meth prevention, treatment and court diversion are necessary to reduce violence.
Yellowstone Connect, established in May 2018, has worked with a series of consultants to complete an in-depth assessment of substance abuse in the community, map services and gaps, learn about what is working elsewhere, and engage the community in a rigorous planning process to establish priorities for action in prevention, treatment, and diversion. Their plan will be completed by December 31, 2019.
For more information about Yellowstone Connect, contact Kristin Lundgren, at 406-272-8505.
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Federal Jury Convicts Baltimore Heroin and Fentanyl DealerRead the Press Release
Baltimore, Maryland – A federal jury convicted Maximo Gondres-Medrano, age 35, of Baltimore, Maryland, after a three-day trial for the federal charge of possession with intent to distribute more than 400 grams of fentanyl and heroin. The jury returned its verdict late on October 9, 2019.
The guilty plea was 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; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI) Baltimore; and Commissioner Michael Harrison of the Baltimore Police Department.
“State and federal law enforcement and prosecutors in Baltimore City are working together to arrest and prosecute those who peddle deadly fentanyl on our streets and in our neighborhoods,” said U.S. Attorney Robert K. Hur. “I am grateful to Baltimore City State’s Attorney Marilyn Mosby, who shares my resolve and has cross-designated an Assistant State’s Attorney from her office, so that we are effectively using our resources to coordinate our efforts. We are committed to reducing overdose deaths from fentanyl and from all opioids.”
According to evidence presented at his three-day trial, on September 8, 2017, federal law enforcement prepared an operation to arrest and search Gondres-Medrano based on information that he would be transporting a large quantity of narcotics. The agents observed Gondres-Medrano leave his residence in the 800 block of Whitelock Avenue, in Northwest Baltimore, carrying a shoebox believed to contain narcotics, and then enter the passenger seat of a vehicle. The vehicle was stopped and law enforcement recovered the box, which contained a wrapped package of almost 793 grams of a mixture of heroin and fentanyl—a quantity sufficient to kill hundreds of thousands of people. During the investigation, federal law enforcement learned that on August 24, 2017, Gondres-Medrano received a shipment of suspected narcotics in a commercial mail shipping envelope from Mexico. Gondres-Medrano used his phone to record a series of instructional videos of himself opening the envelope while he demonstrated how the narcotics were successfully concealed within the envelope so that it would not be detected. In the videos, Gondres-Medrano filmed himself opening the envelope, peeling back a black film that masked the drugs that came from Mexico, and showing the suspected heroin/fentanyl to viewers.
In a recorded interview with law enforcement after his arrest, Gondres-Medrano admitted that the August 24, 2017 shipping envelope contained heroin, and provided information about his drug trafficking activity. Gondres-Medrano admitted that he had multiple sources of supply of heroin and ordered kilogram-sized quantities from them. Gondres-Medrano testified at trial and denied that he carried the shoebox of narcotics to the car on September 8, 2017, and asserted that he never looked inside the nearly 793 gram package to see that it contained narcotics. However, on cross examination, he admitted that he had taken delivery of the narcotics, which he knew to contain heroin, from one of his sources of supply in order to deliver it to another individual.
Gondres-Medrano faces a mandatory minimum sentence of 10 years in federal prison and a maximum sentence of life in federal prison. U.S. District Judge George L. Russell, III has not yet scheduled Gondres-Medrano’s sentencing.
United States Attorney Robert K. Hur commended the FBI, HSI, and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Special Assistant U.S. Attorney Jeffrey M. Hann, an Assistant State’s Attorney from the Office of the State’s Attorney for Baltimore City who is cross-designated to handle fentanyl and other drug cases in federal court, and Assistant U.S. Attorney Derek E. Hines, who are prosecuting the case.
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Executive Office for Immigration Review Announces Case Completion Numbers for Fiscal Year 2019Read the Press Release
The Justice Department’s Executive Office for Immigration Review (EOIR) today announced the agency’s case completion numbers topped 275,000 cases for fiscal year 2019 (FY19), the second highest number of case completions in EOIR’s history. This number marks an increase of roughly 80,000 case completions from fiscal year 2018 (FY18), the same year that EOIR established case completion goals for immigration judges in response to years of declining or stagnant productivity. The FY19 numbers are nearly double the number of completed cases from just three years ago.
“Our immigration courts are doing everything in their power to efficiently adjudicate immigration cases while respecting due process rights, but efficient adjudication alone cannot resolve the crisis at the border,” said EOIR Director James McHenry. “While EOIR is doing an unprecedented job adjudicating cases fairly and expeditiously, the nearly one million case backlog will continue to grow unless Congress acts to address the crisis at the border.”
As part of a continued effort to return the rule of law to America’s immigration system, the Justice Department has introduced initiatives to improve EOIR’s efficiency in adjudicating cases without compromising due process. The Department has also worked to reduce EOIR’s “backlog” of cases by hiring new judges, expanding court capacity, and emphasizing the importance of timely completing cases consistent with the law. However, due to the high volume of immigration cases filed by the Department of Homeland Security (DHS) driven by the ongoing border crisis, EOIR’s pending caseload was approximately 987,000 as of the end of FY19. The 444,000 new cases filed by DHS in FY19 is the highest number in history and is well over the historical average of 225,294 from FY09 to FY16.
EOIR had 442 immigration judges as of Sept. 30, 2019, the highest number in its history. Additionally, 92 new judges were hired in four classes over FY19, and another class of judges is expected to join EOIR in November 2019. On average, immigration judges who performed over the whole year completed 708 cases each in FY19.
Dominican National Sentenced for Identity TheftRead the Press Release
BOSTON – A Dominican national was sentenced today in federal court in Boston for identity theft.
Maissel Avalo-Mejia, 30, a Dominican national residing in Foxboro, was sentenced by U.S. District Court Judge George A. O’Toole Jr. to 27 months in prison. He will face deportation proceedings upon completion of his sentence. In May 2019, Avalo-Mejia pleaded guilty to one count of misuse of a Social Security number and one count of aggravated identity theft.
Avalo-Mejia used the name, date of birth, and Social Security number of a Puerto Rican man, who is presently a Specialist in the U.S. Army, to obtain several Massachusetts driver’s licenses, the most recent issued on April 10, 2014. Avalo-Mejia was identified, among other things, from a fingerprint match with a Dominican Republic identification document issued to him and bearing his photo.
United States Attorney Andrew E. Lelling; Jason Molina, Special Agent in Charge of Homeland Security Investigations in Boston; and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. Assistant U.S. Attorney Sandra S. Bower of Lelling’s Major Crimes Unit prosecuted the case.
Dominican National Indicted for Identity Theft and Making False Statements in an Immigration DocumentRead the Press Release
BOSTON – A Dominican national was indicted today for making false statements in an immigration document and aggravated identity theft.
Teodoro Tejada Rivas, 63, a Dominican national who resided in Lawrence until recently, was indicted on one count of making false statements in an immigration document and one count of aggravated identity theft. Tejada Rivas was arrested on Sept. 10, 2019, in Miami, Fla., and has been detained since.
It is alleged that since at least 2006, Tejada Rivas has been using the identity of a U.S. citizen from Puerto Rico. Tejada Rivas used the name, Social Security number and date of birth of the Puerto Rican man to apply for a U.S. passport in 2007, and to file an immigration form in 2016 in an attempt to bring his Dominican wife and children into the United States. The fraudulent immigration form was filed three years after the death of the U.S. citizen whose identity Tejada Rivas had stolen.
United States Attorney Andrew E. Lelling; William B. Gannon, Special Agent in Charge of the U.S. Department of State’s Diplomatic Security Service, Boston Field Office; and John Gibbons, U.S. Marshal for the District of Massachusetts, made the announcement today. Assistant U.S. Attorney Elianna Nuzum of Lelling’s Major Crimes Unit is prosecuting the case.
Despite Fake Mustache, Bank Robber Winds up in PrisonRead the Press Release
KANSAS CITY, KAN. – A man who wore a fake mustache and a hospital mask when he robbed a bank in Overland Park was sentenced today to four years in federal prison, U.S. Attorney Stephen McAllister said.
Steven D. Lavy, 56, pleaded guilty to one count of bank robbery. According to court records, he robbed the Bank of the West at 12080 Blue Valley Parkway in Overland Park on June 21, 2017. During the robbery, he wore a yellow striped polo shirt, khaki pants, a fake mustache, a blue and white hospital mask, a straw hat and sunglasses. He also had his left arm in a sling.
Police spotted his getaway car a few minutes after the robbery and there was a chase during which Lavy drove on sidewalks and twice rammed a police car. Police found the fake mustache on the dashboard of his car when they arrested him.
McAllister commended the Overland Park Police Department, the Leawood Police Department, the FBI and Assistant U.S. Attorney Tris Hunt for their work on the case.
Court-Appointed Executor of Decedent’s Estate Sentenced to Two Years in Prison for EmbezzlementRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that GREGORY BAYARD was sentenced to 24 months in prison in White Plains federal court for embezzling approximately $1.4 million from a decedent's estate for which he served as a court-appointed administrator. BAYARD had pled guilty to one count of wire fraud on October 23, 2018. U.S. District Judge Cathy Seibel imposed today’s sentence.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Gregory Bayard was obligated to ensure that the assets of a decedent he represented were protected and that the rightful beneficiaries received their inheritances. But Bayard disregarded his fiduciary duties when he embezzled more than $1.4 million from his client’s estate. Now, a judge has ordered him to repay the estate and spend two years behind bars.”
According to the allegations contained in court documents:
BAYARD was appointed administrator of the estate of a former resident of Mt. Vernon by the Surrogate’s Court in 2008. His duties as administrator included collecting the assets of the estate. As an administrator, BAYARD had a fiduciary duty to the estate and to the decedent’s son, the sole beneficiary of his father’s will. New York law provides for a fee to estate administrators like BAYARD based on a percentage of the value of the estate’s assets.
In 2009, the decedent’s son retained an attorney and filed a motion in the Surrogate’s Court to remove BAYARD as the administrator of his father’s estate. While the motion was pending, BAYARD embezzled more than $1.4 million from the estate’s bank account. From June 2011 to June 2012, BAYARD wrote approximately 14 checks totaling more than $435,000 from the estate’s account to himself. From December 2012 to May 2016, BAYARD caused more than 70 electronic wire transfers of a total of more than $1 million from the estate’s account to his personal account. BAYARD spent the money on home renovations, college tuition, and other personal expenses, and transferred some of the money to family members.
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In addition to the prison term, BAYARD, 59, of Scotch Plains, New Jersey, was sentenced to three years of supervised release and was ordered to pay restitution in the amount of $1,457,739.
Mr. Berman praised the outstanding investigative work of the U.S. Postal Inspection Service and the New York State Comptroller.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorney James McMahon is in charge of the prosecution.
Cortland County Woman Pleads Guilty to Sexually Exploiting a ChildRead the Press Release
SYRACUSE, NEW YORK – Brittany Berry, age 25, of Cortland, New York, pled guilty today to one count of conspiracy to sexually exploit a child and five counts of sexual exploitation of a child, announced United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of her guilty plea, Berry admitted that she conspired with Lawrence Berry (whose charges are still pending) to sexually exploit a 3-year-old minor child in August and September of 2018 and that she engaged in sexual exploitation of that child on five different occasions. Berry further admitted that she transmitted images of the sexual abuse of the child to Lawrence Berry over livestream and by sending Lawrence Berry a video and images of the abuse.
Sentencing is scheduled for February 6, 2020 in Utica before United States District Judge David N. Hurd. Berry faces a minimum sentence of 15 years and up to 30 years in prison on each of the six counts of conviction. She also will be required to spend at least 5 years and up to a lifetime term on post-imprisonment supervised release. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the FBI and the City of Cortland Police Department, and is being prosecuted by Assistant U.S. Attorney Michael D. Gadarian as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal 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 https://www.justice.gov/psc
Convicted Felon Pleads Guilty to Armed Robberies in the Central West EndRead the Press Release
St. Louis, MO – Brandon Mardell Woods, 35, of St. Louis, pleaded guilty to one count of robbery and two counts of using a firearm during a crime of violence for his involvement in two robberies in the Central West End. Woods appeared before U.S. District Judge Henry E. Autrey who accepted his plea and set his sentencing date for January 27, 2020.
According to court documents, on June 17, 2018, a victim was walking to her vehicle when Woods approached her, pointed a firearm at her, and ordered her into her vehicle. Woods got into the driver’s seat and directed the victim into the passenger seat. Victim complied and Woods drove the victim’s vehicle to an ATM where he withdrew $500.00 from the victim’s bank account.
On June 19, 2018, two victims were seated in their vehicle when Woods got into the backseat, pointed a firearm at them, and ordered one of the victims to drive him to an ATM. Once at the ATM, Woods directed one of the victims to withdraw money from her bank account. She withdrew $200.00 from her account and gave it to Woods.
On June 20, 2018, officers of the St. Louis Metropolitan Police Department arrested Woods and found him to be in possession of a firearm.
The St. Louis Metropolitan Police Department, the Federal Bureau of Investigation, and the Circuit Attorney’s Office investigated this case. Assistant United States Attorney Jennifer Roy is handling the case for the U.S. Attorney’s Office.
Cheswick Man Involved in Stamp Theft Scheme Detained Pending SentencingRead the Press Release
PITTSBURGH, PA - A resident of Cheswick, Pennsylvania, pleaded guilty in federal court to charges related to theft of government property and uttering and possessing false securities, United States Attorney Scott W. Brady announced today.
John Martell, 38, pleaded guilty to five counts before United States District Judge J. Nicholas Ranjan.
In connection with the guilty plea, the court was advised that between approximately April 23, 2018 and June 11, 2018, Martell and his codefendant, Holly Lovasik, who was a former employee of the United States Postal Service, engaged in a stamp theft scheme in order to pay a debt they owed to their drug dealer. The coconspirators purchased $34,800 in stamps from approximately 28 different Post Offices in the Western District of Pennsylvania, using checks that were written on closed accounts and checks that belonged to two deceased doctors that were falsely altered, completed and signed. Martell and Lovasik then re-sold the stamps for cash, predominantly at a pawn shop in Tarentum, PA. The court was further informed that, in addition to the stamp theft, the United States Post Office incurred $2,790 in check surcharges, for a total loss of $37,590.
Judge Ranjan scheduled sentencing for January 30, 2020 at 10:00 a.m. The law provides for a total sentence of 45 years in prison, a fine of $1,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history of the defendant.
Martell’s bond was revoked due to a bond violation and failure to appear for the bond violation hearing, and as such, he has been detained pending sentencing.
Assistant United States Attorney Christy C. Wiegand is prosecuting this case on behalf of the government.
The United States Postal Inspection Service conducted the investigation that led to the prosecution of Martell.
Chelsea Man Sentenced for RICO Conspiracy Involving Attempted MurderRead the Press Release
BOSTON – A Chelsea man was sentenced today in federal court in Boston for RICO conspiracy involving attempted murder and drug trafficking.
Brandon Baez, aka “Big Baby,” was sentenced by U.S. District Court Judge Richard G. Stearns to 10 years in prison and five years of supervised release. In January 2019, Baez pleaded guilty to one count of conspiracy to conduct enterprise affairs through a pattern of racketeering activity and one count of conspiracy to distribute cocaine base and cocaine.
During an investigation into a network of street gangs that had created alliances to traffic weapons and drugs throughout Massachusetts, Baez was identified as a member of the East Side Money Gang (ESMG), a Chelsea-based street gang, which uses violence to further its criminal activities and enforce its internal rules. Specifically, ESMG uses violence to protect its members/associates, target rival gang members/associates and intimidate potential witnesses.
In intercepted calls on April 3, 2016, Baez informed Angel Mejia, a leader in the ESMG, that he had just shot two men in a black Cadillac at a gas station in Revere because he believed that they were members of a rival street gang. Baez told Mejia that he believed he had killed at least one of the intended victims. Two days before the shooting, Mejia and fellow ESMG member Josue Rodriguez had provided Baez with the .22 caliber revolver used in the shooting. Following the shooting, Baez asked Mejia for assistance getting a larger caliber handgun after learning that no one was killed during the Revere shooting. Baez was subsequently arrested in Chelsea by local law enforcement officers while armed with the .22 caliber revolver used in the Revere shooting.
In October 2017, Rodriguez was sentenced to over 10 years in prison and five years of supervised release. In June 2019, Mejia was sentenced to more than 15 years in prison and five years of supervised release. In September 2019, Jesus Perez, a leader in a rival Chelsea-based street gang (the Outlaws), was sentenced to 20 years in prison and four years of supervised release for multiple federal charges, including violent crime in aid of racketeering, drug trafficking and firearms charges.
Baez is one of 53 defendants indicted in June 2016 on federal firearms and drug charges following an investigation into a network of street gangs that created alliances to traffic weapons and drugs and to generate violence against rival gang members. According to court documents, the defendants, who are leaders, members, and associates of the 18th Street Gang, East Side Money Gang and the Boylston Street Gang, were responsible for fueling a gun and drug pipeline across a number of cities and towns in eastern Massachusetts. During the course of the investigation, over 70 firearms were seized.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; John Gibbons, U.S. Marshal for the District of Massachusetts; Maura Healey, Attorney General of Massachusetts; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Boston Police Commissioner William Gross; Chelsea Police Chief Brian Kyes; and Brockton Police Chief John Crowley made the announcement. The U.S. Attorney’s Office also acknowledges the assistance of the Suffolk and Middlesex County Sheriff Departments and the Malden, Revere and Everett Police Departments. Lelling’s Organized Crime and Gang Unit is prosecuting the case.
Charity employee charged federally with stealing fundsRead the Press Release
INDIANAPOLIS – United States Attorney Josh J. Minkler announced today that Christina Short, 43, of Speedway, Indiana, was arrested and charged with wire fraud for perpetrating a multi-year scheme to steal over $450,000 from the charitable foundation where she worked.
“Charities serve a critical role in our society. Those who donate should feel secure in knowing their funds will go where intended,” said Minkler. “And those who choose to steal should likewise know that they will be caught, prosecuted, and held accountable in court.”
Short’s now-former employer was Zeta Tau Alpha (ZTA), a national women’s college fraternity headquartered in Carmel, Indiana, with thousands of student members in approximately 170 college chapters, as well as approximately 200,000 living alumnae members. Since 2002, Short served as the financial coordinator for the ZTA Foundation, a 501(c)(3) charity and the national philanthropic organization of ZTA. The Foundation received numerous donations on an almost daily basis, which it used for charitable purposes such as scholarships, promoting breast cancer awareness, and education. Short was responsible for receiving, depositing, and accounting for individual donations.
In 2012, according to the charges, Short began stealing donations. Specifically, the charges allege that the Foundation would receive dozens of donations each month, and each month, Short would pocket several of them, typically money orders. Short would allegedly alter the “pay to” information, making the money orders payable to herself, and then deposit them in one of her several bank accounts. Over time, Short allegedly stole greater and greater numbers of donations. By 2016, she was stealing over 150 donations per year, until she was caught in late 2018.
The charges further allege that Short took multiple steps to conceal her fraud from her employer and ZTA Foundation donors. For example, Short ensured that each donation received, including the ones she ultimately stole, was entered into the ZTA Foundation donation database. This concealed her thefts from donors by ensuring that individual donors received “thank you” cards and tax deduction information, and college chapters would see accurate giving totals when they checked the ZTA website.
At the same time, Short would allegedly alter the ZTA Foundation’s books and records regarding the total amounts donated and deposited into the bank, reducing those totals by the amounts she stole. So when the Foundation checked its bank account balances, they matched their books. Short even allegedly provided altered documents to ZTA’s outside auditors to conceal her fraud.
Short allegedly stole approximately 800 money orders intended for the ZTA Foundation and deposited them into her personal bank accounts. In total, she allegedly embezzled over $450,000 in charitable funds.
Short’s conduct was brought to light when a fraud examiner at her bank noticed what appeared to be doctored money orders deposited into her account. The bank promptly notified ZTA, who quickly investigated the matter and terminated Short. ZTA and the bank also notified law enforcement, who immediately began investigating, with ZTA’s cooperation.
This case was jointly investigated by the Federal Bureau of Investigation and the Carmel Police Department.
According to Assistant U.S. Attorney Nick Linder, who is prosecuting the case for the government, Short would face up to 20 years in prison on each charge and payment of full restitution, if convicted.
The investigation is ongoing.
Charges are not evidence of guilt. All defendants are presumed innocent until proven otherwise, by trial or guilty plea, in federal court.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting complex, long-running fraud schemes. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 5.1
California Resident Charged with Leading Telemarketing Conspiracy to Defraud and Extort U.S. ConsumersRead the Press Release
On Oct. 8, 2019, Angel Armando Adrianzen, 45, of California was indicted by a Miami, Florida grand jury on fraud and extortion charges for engaging with call centers in Peru that took money from U.S. Spanish-speaking victims through lies and threats. Adrianzen was charged with conspiracy to commit mail fraud and wire fraud, five counts of wire fraud, five counts of mail fraud, and four counts of extortion.
Assistant Attorney General Jody Hunt, U.S. Attorney Ariana Fajardo Orshan, and Acting Miami Division Postal Inspector in Charge Lesley C. Allison announced the return of the indictment.
The indictment alleges that Adrianzen partnered with a series of Peruvian call centers that contacted U.S. consumers, many of whom were elderly and vulnerable, using Internet-based telephone calls. According to the indictment, these callers claimed to be attorneys and government representatives, and falsely told victims that they had failed to pay for or receive delivery of products. The callers also falsely threatened victims with court proceedings, negative marks on their credit reports, imprisonment, or immigration consequences if they did not immediately pay for the purportedly delivered products and settlement fees. Many victims made monetary payments based on these baseless threats. According to the indictment, Adrianzen received the victims’ payments and shipped products to the victims for these call centers, knowing that they used fraudulent and extortionate means to extract money from vulnerable victims.
Adrianzen was originally charged by criminal complaint and was arrested on Sept. 16 in California. He was ordered detained pending trial and is expected to arrive in Miami to face the charges against him next week.
“The Department of Justice is committed to identifying and prosecuting foreign-based fraud schemes that target and extort U.S. consumers,” said Assistant Attorney General Jody Hunt of the Department of Justice's Civil Division. “The Department of Justice’s Consumer Protection Branch will continue to work hand-in-hand with our Transnational Elder Fraud Strike Force partners to bring to justice international fraudsters who prey on vulnerable U.S. consumers.”
“The charges in this case seek to protect vulnerable and elderly victims of an international fraudulent scheme. Individuals who defraud American consumers will be brought to justice, no matter where they are located,” said U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida.
“The defendant in this case used the U.S. Mail in furtherance of a criminal enterprise and Postal Inspectors were able to quickly identify the scheme and worked aggressively with the Department of Justice’s Consumer Protection Branch to ultimately bring him to justice,” said Lesley C. Allison, Acting Inspector in Charge of the Miami Division of the U.S. Postal Inspection Service.
Trial Attorneys Phil Toomajian and Joshua Rothman of the Department of Justice’s Consumer Protection Branch are prosecuting the case. The U.S. Postal Inspection Service investigated the case and the U.S. Attorney’s Office of the Southern District of Florida has provided critical assistance.
The charges in the indictment are only allegations, and the defendant is presumed innocent unless and until proven guilty.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past March the Department announced the largest elder fraud enforcement action in American history, charging more than 260 defendants in a nationwide elder fraud sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act. Today’s action was developed as part of the efforts of the Department’s Transnational Elder Fraud Strike Force, which the Attorney General established in June to combat the threat of foreign fraud schemes targeting American seniors.
California Resident Charged with Leading Telemarketing Conspiracy to Defraud and Extort U.S. ConsumersRead the Press Release
MIAMI - On October 8, 2019, Angel Armando Adrianzen of California was indicted by a Miami grand jury on fraud and extortion charges for engaging with call centers in Peru that took money from U.S. Spanish-speaking victims through lies and threats. Adrianzen, 45, was charged with conspiracy to commit mail fraud and wire fraud, five counts of wire fraud, five counts of mail fraud, and four counts of extortion.
U.S. Attorney Ariana Fajardo Orshan, Assistant Attorney General Jody Hunt, and Acting Miami Division Postal Inspector in Charge Lesley C. Allison announced the return of the indictment.
The indictment alleges that Adrianzen partnered with a series of Peruvian call centers that contacted U.S. consumers, many of whom were elderly and vulnerable, using Internet-based telephone calls. According to the indictment, these callers claimed to be attorneys and government representatives, and falsely told victims that they had failed to pay for or receive delivery of products. The callers also falsely threatened victims with court proceedings, negative marks on their credit reports, imprisonment, or immigration consequences if they did not immediately pay for the purportedly delivered products and settlement fees. Many victims made monetary payments based on these baseless threats. According to the indictment, Adrianzen received the victims’ payments and shipped products to the victims for these call centers, knowing that they used fraudulent and extortionate means to extract money from vulnerable victims.
Adrianzen was originally charged by criminal complaint and was arrested on September 16 in California. He was ordered detained pending trial and is expected to arrive in Miami to face the charges against him next week.
“The charges in this case seek to protect vulnerable and elderly victims of an international fraudulent scheme. Individuals who defraud American consumers will be brought to justice, no matter where they are located,” said U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida.
“The Department of Justice is committed to identifying and prosecuting foreign-based fraud schemes that target and extort U.S. consumers,” said Assistant Attorney General Jody Hunt. “The Department of Justice’s Consumer Protection Branch will continue to work hand-in-hand with our Transnational Elder Fraud Strike Force partners to bring to justice international fraudsters who prey on vulnerable U.S. consumers.”
“The defendant in this case used the U.S. Mail in furtherance of a criminal enterprise and Postal Inspectors were able to quickly identify the scheme and worked aggressively with the Department of Justice’s Consumer Protection Branch to ultimately bring him to justice,” said Lesley C. Allison, Acting Inspector in Charge of the Miami Division.
Trial Attorneys Phil Toomajian and Joshua Rothman of the Department of Justice’s Consumer Protection Branch are prosecuting the case. The U.S. Postal Inspection Service investigated the case and the U.S. Attorney’s Office of the Southern District of Florida has provided critical assistance.
The charges in the indictment are only allegations, and the defendant is presumed innocent unless and until proven guilty.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past March the Department announced the largest elder fraud enforcement action in American history, charging more than 260 defendants in a nationwide elder fraud sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act. Today’s action was developed as part of the efforts of the Department’s Transnational Elder Fraud Strike Force, which the Attorney General established in June to combat the threat of foreign fraud schemes targeting American seniors.
Businessman Sentenced to a Year in Prison for Stealing Employer’s Trade Secrets While Planning New Job in ChinaRead the Press Release
CHICAGO — A federal judge has sentenced a 30-year employee of a McHenry County manufacturing firm to a year and a day in federal prison for stealing trade secret information while planning to work for a rival company in China.
ROBERT O’ROURKE, 59, of Lake Geneva, Wisc., was convicted earlier this year by a federal jury in Chicago on seven counts of theft of trade secrets. In addition to the prison term, U.S. District Judge Andrea R. Wood on Wednesday also fined O’Rourke $100,000.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Larry L. Lapp, acting Special Agent-in-Charge of the Chicago office of the FBI.
“Theft of trade secrets is a serious offense with wide-ranging consequences to the victim companies and the United States economy,” Assistant U.S. Attorney Shoba Pillay argued in the government's sentencing memorandum. “A would-be insider thief must understand the consequences of stealing their employer's trade secrets in order to benefit competitors, particularly when those competitors are based in China.”
Ms. Pillay and Assistant U.S. Attorney Christopher V. Parente represented the government.
According to evidence at trial, O’Rourke since 1984 worked for Dura-Bar, a Woodstock-based manufacturer of continuous cast-iron products. O’Rourke held the positions of plant metallurgist, quality assurance manager and salesperson, and helped the company develop business in China and other locations. In late 2013, O’Rourke began several months of negotiations to take a similar job with a rival firm in Jiangsu, China.
In September 2015, while still employed at Dura-Bar, O’Rourke accepted the job offer in China. He then downloaded electronic data and documents belonging to Dura-Bar without authorization two days before officially leaving the company. The following week, he packed up the proprietary information and went to O’Hare International Airport in Chicago to board a flight to China. Federal authorities intervened at the airport and seized the stolen trade secrets from O’Rourke before he could travel to China.
Browning man sentenced to five years in prison for distributing, receiving child pornographyRead the Press Release
GREAT FALLS—A Browning man who admitted using his phone to access and distribute child pornography from his dorm room at the University of Montana was sentenced today to five years in prison, followed by 10 years of supervised release and was ordered to pay $18,000 restitution, U.S. Attorney Kurt Alme said.
Dylan LaPlant, 22, pleaded guilty in June to distribution of child pornography and receipt of child pornography.
U.S. District Judge Brian M. Morris presided.
In court records filed in the case, the prosecution said an investigation began in March 2018 when an FBI special agent in New York notified an FBI special agent in Montana that during an ongoing child porn investigation, agents had discovered an instant messenger application account in Montana that was linked to the receipt and distribution of numerous child pornography images. The investigation identified LaPlant as a participant in group chat sessions and a chat member who sent multiple links to images and videos of child pornography to other group members.
During an interview with FBI agents in April 2018, LaPlant admitted he had been a student at the University of Montana, and while in his dorm room, he would access the internet with his smart phone. He admitted to accessing group accounts that contained messages and links to child pornography and that he used his phone to view the material and forward links to other group users.
FBI agents served a search warrant on LaPlant’s home in Browning and seized electronic devices that were found to contain more than 500 images and videos of child pornography.
Assistant U.S. Attorney Jeffrey Starnes prosecuted the case, which was investigated by the FBI.
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Bozeman man sentenced to more than three years in prison for possessing child pornographyRead the Press Release
MISSOULA—A Bozeman man who admitted to viewing and downloading child pornography for years was sentenced today to 41 months in prison followed by 10 years of supervised release, U.S. Attorney Kurt Alme said.
Bruce Alan Gagne, 59, pleaded guilty to possession of child pornography in June.
U.S. District Judge Donald W. Molloy presided. Judge Molloy also ordered the forfeiture of computer equipment and USB storage devices seized in the case.
The prosecution said in court records that in May 2018, the Gallatin County Sheriff’s Office received a USB storage device, or thumb drive, with suspected images of child pornography and that the device was known to belong to Gagne. A detective examined the thumb drive after getting a search warrant and determined the device contained images of children engaged in sexually explicit conduct. A Bozeman Police detective, who is a member of the Montana Internet Crimes Against Children Task Force, got a warrant to search Gagne’s residence. During the search, officers seized numerous items including a USB device and laptop, which were examined and found to contain images and videos of child pornography. The child pornography included prepubescent children. In an interview the day of the search, Gagne admitted he had viewed and downloaded child pornography for years.
Assistant U.S. Attorney Cyndee Peterson prosecuted the case, which was investigated by the Bozeman Police Department, ICAC Task Force, and Homeland Security Investigations.
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