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10 October 2019
Boston Man Pleads Guilty to Firearms OffenseRead the Press Release
BOSTON – A Boston man pleaded guilty in federal court in Boston today to the unlicensed transportation of a firearm.
Kenny Romero, 24, pleaded guilty to one count of unlicensed transportation of firearms before U.S. Senior District Court Judge George A. O’Toole Jr., who scheduled sentencing for Jan. 14, 2020. Romero has been detained since his arrest on July 9, 2019.
Law enforcement officers discovered Romero to be in possession of a firearm during a vehicle stop in December 2016. A subsequent investigation revealed that the firearm, which had been used in a shooting earlier that month, was purchased in Virginia in November 2016. Agents learned that another individual purchased the firearm at Romero’s direction, and Romero subsequently transported the firearm from Virginia back to Massachusetts, where he resides.
The charge of unlicensed transportation of firearms provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Office, made the announcement today. Valuable assistance was provided by the U.S. Attorney’s Office for the Eastern District of Virginia, the ATF - Falls Church Field Office and the Boston Police Department. Assistant U.S. Attorney Anne Paruti of Lelling’s Major Crimes Unit is prosecuting the case.
Billboard Licensing Company Pays $2.85 Million to Resolve Allegations That It Defrauded the Postal ServiceRead the Press Release
DENVER -- Jason Dunn, the United States Attorney for the District of Colorado, today announced a resolution that resolves fraud allegations against All Vision LLC (“All Vision”), a company that manages a portfolio of licenses for billboards and other outdoor advertising. Under the resolution announced today, All Vision will pay $2.85 million to settle allegations that the company made false statements and improperly withheld money owed to the United States Postal Service (“U.S. Postal Service”) in connection with the company’s marketing and management of various commercial outdoor advertising licenses. The settlement is in addition to approximately $5.2 million that the company has already paid back to the U.S. Postal Service.
The U.S. Postal Service leases land to billboard companies for advertising. All Vision manages licenses for billboards and other commercial outdoor advertising in locations such as New York, Texas, Minnesota and Missouri. All Vision formerly maintained an office and conducted its accounting operations in Highlands Ranch, Colorado. In 2009 and 2011, the U.S. Postal Service entered into contracts with All Vision for All Vision to manage and market a portfolio of billboard advertising licenses with other companies. Under the contracts, All Vision was required to collect payments, including percentage rent and lump sum fee payments, from the companies. Once collected, All Vision was required to timely forward the payments, less its applicable fees, to the U.S. Postal Service.
The United States’ allegations in this matter relate to All Vision’s conduct under those contracts. The United States alleged that the U.S. Postal Service relied upon All Vision to collect and timely remit payments. Throughout the contract terms, however, All Vision misrepresented the actual amounts it had collected in various reports that it sent to the U.S. Postal Service. In addition, certain employees at All Vision knowingly withheld and failed to remit and report millions of dollars in percentage rent and lump sum fee payments owed to the U.S. Postal Service.
All Vision voluntarily repaid the U.S. Postal Service over $5.2 million in past-due amounts that the company identified through its own investigation, and has agreed to pay an additional $2.85 million to resolve the matter. All Vision also provided cooperation with the United States’ civil investigation.
The claims settled by this civil agreement are allegations. In entering into this civil settlement, All Vision did not admit liability.
“Companies entrusted with taxpayer money have an obligation to safeguard it,” said U.S. Attorney Jason Dunn. “When they fail to do so, we will aggressively seek to hold them accountable.”
“We are gratified to have contributed to this investigation and applaud the exceptional work by the investigative and legal teams for safeguarding the contracting process and overall program costs,” said Scott Pierce, Special Agent in Charge, U.S. Postal Service Office of Inspector General. “The USPS OIG will continue to seek out and aggressively investigate those who would engage in activities detrimental to the U.S. Postal Service.”
The United States was represented in this matter by Assistant United States Attorney Lila Bateman.
Beverly Man Sentenced for Sending White Powder and Purported AIDS-Infected Blood to Online Dating WebsiteRead the Press Release
BOSTON – A Beverly man was sentenced to probation today for sending a series of threatening letters to the CEO of an online dating website; one letter contained a white powder described as Anthrax and another contained a red substance described as blood infected with the AIDS virus.
Liam MacLeod, 47, was sentenced by U.S. District Court Judge Patti B. Saris to two years of probation, with the first two months to be served in a halfway house and eight months in a sober house on home confinement. The government recommended five months in prison, followed by two years of supervised release which would include five months of community or home confinement.
In June 2019, MacLeod pleaded guilty to two counts of mailing threatening communications and two counts of conveying false information concerning purported biological weapons.
Between September and December 2017, MacLeod mailed nine letters containing threatening communications and/or suspicious substances to the CEO of the online dating website OkCupid.com in Dallas, Texas. On or about Sept. 12, 2017, MacLeod mailed an envelope addressed to the CEO that contained a suspicious white powder, along with a handwritten letter that stated:
Greetings from Beverly
Ban me will ya
Welcome to the wonderful world of ANTHRAX
Expect a package within the next couple of days
It won’t be ticking but it should be interesting!
MacLeod mailed another envelope to the CEO in Dallas, on or about Sept. 14, 2017, containing a typewritten letter with the following message, amongst other text:
How’d you like what I sent you? Aww, go take a powder. Oh, the things I have in store for you! I can go on like this for years. How long can you last?
Incidentally, my father was an angel: That’s Hell’s
Angel to you. You see, we have some pull. Take for
example your vehicles. We now know who owns
what, and where each of you parks his.
Hmm, think of the possibilities!
MacLeod sent a third letter to the CEO in Dallas on or about Sept. 20, 2017. The envelope and its contents, a blank piece of paper, were both stained with a red substance consistent with blood. The next day, MacLeod mailed another letter to the CEO which identified the red substance on the previous letter as blood infected with the AIDS virus.
Between Oct. 4, 2017 and Dec. 21, 2017, MacLeod mailed five additional envelopes addressed to the CEO in Dallas, each containing threatening communications and/or suspicious substances. Each of these mailings generated a response by federal law enforcement in order to rule out the presence of active biological or chemical agents. Laboratory testing later confirmed that the substances contained in the envelopes, including the white powdery substance, did not contain hazardous materials.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division, made the announcement today. The investigation was conducted by the FBI Boston’s Joint Terrorism Task Force, with assistance from the Beverly Police Department. OkCupid and its parent company were fully cooperative with the investigation. Assistant U.S. Attorney Jason A. Casey of Lelling’s National Security Unit prosecuted the case.
Belgian Citizen Sentenced for Insider TradingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that NICHOLAS ZANEN, 46, of Belgium, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 15 months of imprisonment for insider trading. Judge Thompson also ordered Zanen to pay a $6,000 fine.
According to court documents and statements made in court, Zanen was employed by Cheniere Energy, Inc. (“Cheniere”), a Houston-based energy company whose common stock traded on the New York Stock Exchange under the symbol LNG. Zanen was a vice president of trading in the Cheniere’s United Kingdom Branch and was based in London. Cheniere maintained written policies prohibiting the direct or indirect disclosure of confidential information and requiring employees to prevent the disclosure of such confidential information. In his position, Zanen had access to non-public information concerning Cheniere’s deals, financings, and other business information, and he was in possession of inside information prior to public announcements.
Between November 2011 and December 2012, Zanen disclosed Cheniere inside information to a friend, Francis J. Van Steenberge, and advised him whether to buy or sell Cheniere securities with the understanding that Van Steenberge would execute the security transactions on the basis of these instructions. Zanen and Van Steenberge generated approximately $1 million through this scheme.
Zanen also caused to be made materially false and fraudulent statements to the Financial Industry Regulatory Authority (“FINRA”) that he was unaware of the circumstances under which Van Steenberge gained knowledge of Cheniere’s business activities.
On June 4, 2014, a federal grand jury in New Haven returned an indictment charging Zanen with one count of conspiracy to commit securities fraud and three counts of securities fraud. Zanen, who was living abroad in London, Singapore and Belgium, was apprehended on April 22, 2019, in Pisa, Italy. He was extradited to the U.S. on June 13, 2019.
On August 12, 2019, Zanen pleaded guilty to one count of conspiracy to commit securities fraud. He has been detained since his arrest.
On April 4, 2014, Van Steenberge pleaded guilty to the same offense. He awaits sentencing.
In the companion case Securities and Exchange Commission v. Nicolas Zanen and Francis J. Van Steenberge, Zanen has paid the SEC a disgorgement, plus interest and penalties, totaling $832,398.45.
This investigation has been conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Michael S. McGarry.
U.S. Attorney Durham thanked the U.S. Department of Justice’s Office of International Affairs for its assistance in this matter, in particular former DOJ Rome Attache’ Cristina Posa.
U.S. Attorney Durham stressed that protecting the integrity of the capital markets and ensuring that individuals comply with our nation’s securities laws is a priority of the Justice Department. Individuals who believe that they have been victimized by this insider trading scheme should contact the FBI in New Haven at 203-777-6311.
Baltimore Drug Dealer Sentenced to More Than 12 Years in Federal Prison for Conspiracy to Distribute Fentanyl, Heroin, and CocaineRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Knowledge Sharpe, age 19, of Baltimore Maryland, to 12 ½ years in federal prison, followed by five years of supervised release, for conspiracy to distribute fentanyl, heroin, and cocaine, and for assaulting a federal officer.
The sentence 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; U.S. Marshal Johnny Hughes; Commissioner Michael Harrison of the Baltimore Police Department; and Anne Arundel County Police Chief Tim Altomare.
“Knowledge Sharpe brought the deadly combination of guns and drugs to the streets of Baltimore,” said U.S. Attorney Robert K. Hur. “Not only did he endanger members of his own community, but he also attacked a federal law enforcement officer. This sentence demonstrates that we will hold accountable criminals who attempt to terrorize law-abiding citizens and those who are sworn to protect them. Sharpe will serve over 12 years in a federal prison far from home, where there is no parole—ever. Please put down the gun. You’ll save a life, maybe even your own.”
According to his plea agreement, from January 2017 until July 2018, Sharpe conspired to distribute fentanyl, heroin, and cocaine as a member of the Young Finesse Kings (YFK), a drug shop that operated primarily in the German Park area of Baltimore City. During the course of the investigation, investigators from the FBI and the Baltimore Police Department obtained authority to intercept wire and electronic communications of members of the YFK drug shop and conducted physical surveillance of the YFK drug shop observing many instances of drug trafficking.
On April 11, 2018, investigators intercepted phone calls which led them to believe that Sharpe and several co-defendants were going to commit a retaliatory act of violence, after someone had shot at Sharpe’s car. Sharpe contacted his co-conspirators to get them to assist with the retaliation. Investigators immediately responded to the area where the conspirators had discussed meeting: Mount Royal Terrace and North Avenue, in Baltimore City. While in the vicinity, investigators observed a gold Nissan van occupied by up to six individuals parked near Druid Park Lake. That Nissan van was registered to an address used by one of Sharpe’s co-defendants. The van left the area before investigators were able to stop it. A short time later investigators learned that a gun was discharged in the area of 1700 North Carey Street. Investigators checked the location information of Sharpe’s cellular telephone and compared it to time that the discharging occurred. At the time of the discharging, Sharpe’s cellular telephone was at a location in the same block of Carey Street.
Shortly afterwards, investigators located the gold van in the parking lot of the Security Mall in Baltimore. A short time later, Sharpe and co-defendants Kenneth Grossman, Dana Dunnock, Anthony Whitaker, Quran Smoot, and another individual were seen exiting the mall and entering the van. Investigators surrounded the vehicle and stopped the van before it could exit the parking spot. Immediately upon opening the front passenger door, a firearm was observed on the front passenger floorboard. All occupants were detained and a search of the van showed six firearms within easy reach of all occupants. Specifically, a CM11 assault pistol with a loaded magazine was located on the front passenger-side floorboard (where Sharpe was sitting), a .32-caliber revolver loaded with 6 rounds and a .380-caliber revolver with a loaded magazine were in the rear third row cup holder and on the rear third row seat, respectively (where Grossman and the other individual were sitting), a 9mm pistol with a loaded magazine in the front center console near the driver (where Smoot was sitting), from Whitaker’s waistband area an officer recovered a .40-caliber handgun loaded with 5 rounds, and from Dunnock’s front waistband area an officer recovered a .45-caliber handgun loaded with 10 rounds and attached to a second magazine containing 9 more rounds. There was also a bag containing loose ammunition and a black ski mask located in the van. Black ski masks were also recovered from Sharpe, Whitaker, and Grossman. Sharpe admitted that he possessed a firearm in furtherance of his drug trafficking activities. At sentencing, prosecutors proved that Sharpe also made a credible threat of violence.
Sharpe also attacked an employee of the Department of Public Safety and Correctional Services (DPSCS) while he was a pretrial detainee at the Chesapeake Detention Facility, which is run by the U.S. Marshals and maintained by the DPSCS. The victim had denied Sharpe’s request for a second meal. When the victim returned to Sharpe’s housing area later, Sharpe sneaked up behind the victim, struck the victim with a closed fist to his face, and continued to strike the victim after he had fallen to the ground. Other federal detainees also struck the victim, as well as another person who had come to the victim’s aid. After the fight, which was broken up by deploying pepper spray, the two victims of the attack were treated for their injuries.
All nine defendants have pleaded guilty to their roles in the drug conspiracy or for possessing a firearm in the van with Sharpe, including Kenneth Grossman, age 29; Dana Dunnock, age 21; Quran Smoot, age 21; and Anthony Whitaker, age 24, all of Baltimore. Six defendants have been sentenced including Sharpe, Dunnock who was sentenced to 135 months in federal prison, and Whitaker who was sentenced to 13 years in federal prison.
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. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the FBI, the U.S. Marshal Service, the Baltimore Police Department, and the Anne Arundel County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Christine Goo and Brandon K. Moore, who are prosecuting the case.
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Armed Drug Dealer Sentenced to 25 Years in PrisonRead the Press Release
NEWPORT NEWS, Va. – A Hampton man was sentenced today to 25 years in prison for distributing cocaine and heroin while possessing a firearm.
According to court documents, Lorenzo Golden, 35, admitted that he had agreed to distribute and distributed more than five kilograms of cocaine and more than a kilogram of heroin, including two heroin sales to law enforcement in February and March 2018. Golden took over a residence in the 400 block of East Pembroke Avenue and used the residence to distribute cocaine and heroin. In July 2018, law enforcement executed search warrants on the residence and a storage unit connected to Golden. They recovered scales, cellular phones, five firearms, ammunition, packaging materials and other items used in the sale of drugs.
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, Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, Terry L. Sult, Chief of Hampton Police Division, and Anton Bell, Hampton Commonwealth Attorney, made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar. Special Assistant U.S. Attorney Amy Cross 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. 4:18-cr-90.
Allen Man Charged with Assault with a Dangerous WeaponRead the Press Release
United States Attorney Ron Parsons announced that an Allen, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Daniel Bull Bear, age 29, appeared before U.S. Magistrate Judge Daneta Wollmann and pleaded not guilty to the Indictment.
The maximum penalty upon conviction for each charge is 10 years in prison, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Bull Bear using a metal stand to assault a female near Allen on January 6, 2019. This assault resulted in serious bodily injury to the female.
The charges are merely accusations and Bull Bear is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs – Office of Justice Services. Assistant U.S. Attorney Heather Sazama is prosecuting the case.
Bull Bear was released on bond pending trial. A trial date has been set for December 10, 2019.
246 Arrested as Part of Combined Law Enforcement Operation “Invictus Civitas” – Undefeatable Community - in Yakima CountyRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that a fifteen-week-long joint federal, state, local and Tribal law enforcement initiative has resulted in 246 arrests of fugitives and violent offenders in Yakima County. Fifty-four percent of the arrests were gang-related. The arrests involved a variety of criminal charges, including homicide, assault, sexual assault, extortion, kidnapping, robbery, weapons offenses, burglary, failure to register as a sex offender and narcotics violations.
Operation “Invictus Civitas” (Undefeatable Community) has been a coordinated Project Safe Neighborhoods violence reduction initiative led by the U.S. Marshal Service and the U.S. Attorney’s Office for the Eastern District of Washington. Federal, state, local and Tribal law enforcement partners reduce violent crime within Yakima, Yakima County and the Yakama Reservation by identifying and arresting violent fugitives and criminal offenders, and by targeting violent gang activity. The operation collected and utilized intelligence information leading to the systematic removal of individuals charged with committing violent crimes.
Operation “Invictus Civitas” launched on June 3, 2019. As part of this coordinated and targeted initiative, the arrests included: 9 for sexual offenses; 62 for assaults; 19 for robberies; 29 for weapons violations; 5 for homicides; 1 for kidnapping; 1 for arson; 15 for burglaries; 63 for narcotics violations; and 40 for other crimes.
In addition, Operation “Invictus Civitas” resulted in the seizure of 33 firearms, nearly 4.5 pounds of controlled substances, over $37,000 in U.S. currency, a ballistic vest, and 12 vehicles that were either stolen and recovered or seized as a result of criminal activity.
“The revitalized Project Safe Neighborhoods program is a major success,” said Attorney General William P. Barr. “It packs a powerful punch by combining advanced data with local leadership, further reducing violence in communities across the country and improving overall public safety. U.S. Attorneys continue to focus their enforcement efforts against the most violent criminals and work in partnership with federal, state, local, and Tribal police. The Justice Department’s relationships across the board have never been stronger.”
United States Attorney Hyslop said, “No violent crime is acceptable in the Eastern District of Washington. Operation ‘Invictus Civitas’ has been hugely successful. And it highlights the joint commitment, dedication, and partnership between our state, local, Tribal and federal partners in combatting violent crime and removing violent criminals and gang members from the community to face justice. I commend the outstanding work and tireless efforts of all our law enforcement partners. In addition, Maike & Associates provided tremendous data analysis and support as the Project Safe Neighborhoods research partner.”
U. S. Marshal Craig Thayer, Eastern District of Washington, commented that, “The 246 violent offenders safely arrested during Operation ‘Invictus Civitas’ are testament to the dedication and professionalism of the participating law enforcement agencies. Our communities are safer because of this success. We recognize that there are still those who are committing illegal acts against the community, and we want them to know that we are committed to protecting the community from violent crime going forward.”
Operation “Invictus Civitas” is a joint United States Marshal Service, Operation Triple Beam, Project Safe Neighborhoods (PSN) and Pacific Northwest Violent Offender Task Force initiative geared toward reducing violent crime in the Yakima region. Project Safe Neighborhoods is a national initiative that brings together federal, state, local and Tribal law enforcement officials, prosecutors, and community leaders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them. Yakima County, and specifically the City of Yakima, was selected as a PSN area of focus in 2018 due to its high rates of gang and gun-related violent crime. The U.S. Marshal Service designed Operation “Invictus Civitas” to initiate a community-based, comprehensive, multi-component strategy being implemented over a two-year period.
The Pacific Northwest Violent Offender Task Force (PNVOTF) is a U.S. Marshal Service sponsored partnership composed of federal, state and local law enforcement officers from Washington, Oregon and Alaska. The primary mission of the PNVOTF is to locate, arrest, and return to the justice system the most violent, most egregious federal and state fugitives. Operation “Invictus Civitas” partners include the United States Marshal Service, United States Attorney’s Office, Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, Yakima County Sheriff’s Office, Washington State Department of Corrections, Yakima Police Department, Union Gap Police Department, Yakama Nation Department of Public Safety, Benton County Sheriff’s Office, Kennewick Police Department, LEAD Task Force, Yakima County Prosecutors Office and Maike & Associates.
2 Manhattan Men Charged with 2010 MurderRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of an Indictment charging JAMAL ADAMSON, a/k/a “J-Rock,” and HASAHN MURRAY, a/k/a “Sauce,” with the June 20, 2010, murder of David Moore, 23, in New York, New York. ADAMSON was arrested today and will be presented this afternoon before U.S. Magistrate Judge Ona T. Wang. MURRAY is in New York state custody and is being transferred to federal custody. This case is assigned to United States District Judge Gregory H. Woods.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Over nine years ago, David Moore was shot and killed during a gang dispute in Manhattan. Now, thanks to the outstanding work of the NYPD and the Special Agents of our Office, Jamal Adamson and Hasahn Murray have been charged for their alleged participation in that heinous crime.”
NYPD Commissioner James P. O’Neill said: “This case reflects the NYPD’s continued effort to eradicate violent street crime by targeting those most responsible. I am grateful to these hard-working investigators and our law enforcement partners for ensuring these two alleged dangerous criminals will be held to account for their alleged actions.”
According to the allegations in the Indictment unsealed in Manhattan federal court[1]:
On or about June 20, 2010, in the vicinity of East 122nd Street and Lexington Avenue in New York, New York, ADAMSON and MURRAY, both members of a gang operating in East Harlem known as the Cash Money Boys (or “CMB”) participated in the murder of David Moore, during which David Moore was shot and killed.
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ADAMSON, 26, of New York, New York, and MURRAY, 25, also of New York, New York, are each charged with one count of murder in aid of racketeering, which carries a maximum sentence of life in prison, and one count of using a firearm to commit murder, which carries a maximum sentence of life in prison, and a mandatory minimum sentence of five years in prison. The maximum and minimum sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the NYPD and the Special Agents of the U.S. Attorney’s Office for the Southern District of New York.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Maurene Comey, Jacob Warren, and Tara LaMorte are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
18 Members of International Fraud and Money Laundering Conspiracy Charged in Manhattan Federal CourtRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), Troy Miller, Director, Field Operations, New York, U.S. Customs and Border Protection (“CBP”), and James P. O’Neill, the Police Commissioner for the City of New York (“NYPD”), today announced the unsealing of an indictment and two superseding indictments charging 18 defendants with participating in an international conspiracy to commit a variety of offenses, including access device fraud, wire fraud, bank fraud, and aggravated identity theft.
Defendants NIKOLAOS LIMBERATOS, a/k/a “Nicu Limberto,” CRISTIAN COSTEA, a/k/a “Momo,” THEOFRASTOS LYMBERATOS, ANDREW ELIOPOULOS, PETER SAMOLIS, KELLY KARKI LAM, and IULIANA MIHAILESCU were arrested this morning and will be presented in federal court in Manhattan before U.S. Magistrate Judge Ona T. Wang later today. Defendants MIRCEA CONSTANTINESCU, a/k/a “Sobo,”ALIN HANES CALUGARU, IONELA CONSTANTINESCU, a/k/a “Pitica,” and GEORGE SERBAN were also arrested this morning and will be presented in federal court in Miami before U.S. Magistrate Judge Lauren F. Louis later today. Defendant FLORIAN CLAUDIU MARTIN, a/k/a “Florin Claudiu,” a/k/a “Johnny Ion,” a/k/a “Jane Hotul,” a/k/a “Petru Andrioaie,” a/k/a “Petru Andrioane,” was arrested this morning in Cabo San Lucas, Mexico, and defendant RAUL IONUT VIDRASAN, a/k/a “Michu,” a/k/a “The Boy,” was arrested this morning in Perugia, Italy. Defendants VALENTIN PETRESCU, a/k/a “Gico Cosmin Giscan,” a/k/a “Zoltan Pruma,” DRAGOS DIACONU, MADLIN ALEXANDRU ANCA, a/k/a “Mateo Fernandez Alejandro,” and CRISTIAN ULMANU, a/k/a “Boris Moravec,” are currently in custody on other charges and will be transferred to federal custody in New York and presented at a later date. The case has been assigned to U.S. District Judge Laura Taylor Swain.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, the defendants participated in a wide-ranging international ATM skimming and money laundering operation, using their technological know-how to steal tens of millions of dollars from financial institutions and individual victims. Thanks to the FBI, CBP, and the NYPD, the defendants are in custody and facing felony charges for their alleged offenses.”
FBI Assistant Director William F. Sweeney Jr. said: “An extremely frustrating thing to experience, you grab cash from an ATM but then find out your bank information was stolen and your account drained. The scheme detailed here cost victims money, time, and effort to get their finances returned and their identities restored, which can be an infuriating long process. The FBI New York Cyber Crimes Task Force and our law enforcement partners have worked exhaustively to find the members of this criminal organization, and the arrests and charges are a testament to their hard work stopping these thieves from creating more havoc for anyone trying to access their hard-earned money.”
CBP Director of New York Field Operations Troy Miller said: “This case serves as a great example of collaborative law enforcement efforts to combat international debit card schemes. U.S. Customs and Border Protection in coordination with our partners at FBI and the NYPD will continue to work tirelessly to ensure that criminals associated with transnational criminal organizations are brought to justice.”
NYPD Commissioner James P. O’Neill said: “The NYPD and its law enforcement partners are committed to dismantling criminal enterprises that leverage attacks against our cyber infrastructure. We comprehensively confront everything from highly-sophisticated transnational groups, like this one, to those criminals who exploit our citizens with cyber-enabled scams. I want to thank our federal partners and NYPD detectives for their coordination and tireless efforts in bringing this important case.”
According to the allegations in the Indictment and Superseding Indictments[1] unsealed today in Manhattan federal court:
From 2014 until September 2019, FLORIAN CLAUDIU MARTIN, a/k/a “Florin Claudiu,” a/k/a “Johnny Ion,” a/k/a “Jane Hotul,” a/k/a “Petru Andrioaie,” a/k/a “Petru Andrioane,” ALEX DONATI, RAUL IONUT VIDRASAN, a/k/a “Michu,” a/k/a “The Boy,” MIRCEA CONSTANTINESCU, a/k/a “Sobo,” NIKOLAOS LIMBERATOS, a/k/a “Nicu Limberto,” CRISTIAN COSTEA, a/k/a “Momo,” ALIN HANES CALUGARU, IONELA CONSTANTINESCU, a/k/a “Pitica,” THEOFRASTOS LYMBERATOS, ANDREW ELIOPOULOS, VALENTIN PETRESCU, a/k/a “Gico Cosmin Giscan,” a/k/a “Zoltan Pruma,” PETER SAMOLIS, KELLY KARKI LAM, GEORGE SERBAN, DRAGOS DIACONU, MADLIN ALEXANDRU ANCA, a/k/a “Mateo Fernandez Alejandro,” CRISTIAN ULMANU, a/k/a “Boris Moravec,” and IULIANA MIHAILESCU participated in a transnational organization that engaged in what is colloquially referred to as “ATM skimming” (the “Skimming Organization”). The Skimming Organization unlawfully obtained victim accountholders’ debit card account information by using advanced technological devices to surreptitiously record the debit card numbers and personal identification numbers at automatic teller machines (“ATMs”), and then manufacturing counterfeit and fraudulent debit cards that bore the victim accountholders’ account information. The Skimming Organization’s members then used those cards to fraudulently withdraw cash from victims’ bank accounts.
Certain of the defendants directed, or worked in, teams that the Skimming Organization deployed across the United States in order to carry out ATM skimming attacks, casing ideal locations for the attacks, installing skimming devices on ATMs, removing those devices, and cashing out large numbers of fraudulent debit cards manufactured as a result of the skimming operations. Other defendants assisted in receiving packages containing skimming devices or component parts that were shipped from other parts of the U.S. and from abroad. Other defendants assisted in engineering the skimming devices that the Skimming Organization used. Still other defendants laundered the proceeds of the skimming attacks through bank accounts, properties, businesses, and the transportation of bulk cash.
The defendants carried out hundreds of ATM skimming operations across the U.S., including in New York and at least 17 other states. The scheme defrauded financial institutions and individual victims of more than $20 million.
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Each defendant is charged with one count of conspiracy to commit access device fraud, which carries a maximum sentence of 7 ½ years in prison; one count of conspiracy to commit wire and bank fraud, which carries a maximum sentence of 30 years in prison; and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison, consecutive to any other sentence imposed. FLORIAN CLAUDIU MARTIN, a/k/a “Florin Claudiu,” a/k/a “Johnny Ion,” a/k/a “Jane Hotul,” a/k/a “Petru Andrioaie,” a/k/a “Petru Andrioane,” MIRCEA CONSTANTINESCU, a/k/a “Sobo,” NIKOLAOS LIMBERATOS, a/k/a “Nicu Limberto,” CRISTIAN COSTEA, a/k/a “Momo,” ALIN HANES CALUGARU, and KELLY KARKI LAM are also charged with one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison. FLORIAN CLAUDIU MARTIN, a/k/a “Florin Claudiu,” a/k/a “Johnny Ion,” a/k/a “Jane Hotul,” a/k/a “Petru Andrioaie,” a/k/a “Petru Andrioane” is also charged with two counts of bank fraud, each of which carry a maximum sentence of 30 years in prison. ALEX DONATI is also charged with one count of access device fraud, which carries a maximum sentence of 10 years in prison.
The statutory maximum and minimum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge. A chart with the defendants’ ages, places of residence, and nationalities is below.
Mr. Berman praised the outstanding investigative work of the FBI, CBP, and the NYPD, and thanked the United States Postal Inspection Service, INTERPOL-Rome, INTERPOL-Mexico City, and Mexico’s Agencia de Investigación Criminal and Instituto Nacional de Migración for their assistance.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Elizabeth A. Hanft, Daniel M. Loss, Samuel P. Rothschild, and Robert B. Sobelman are in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
Defendant
Age
Place of Residence
Nationality
FLORIAN CLAUDIU MARTIN,
a/k/a “Florin Claudiu,”
a/k/a “Johnny Ion,”
a/k/a “Jane Hotul,”
a/k/a “Petru Andrioaie,”
a/k/a “Petru Andrioane,”
44
Cabo San Lucas, Mexico
Romania
ALEX DONATI
51
Cabo San Lucas, Mexico
Romania
RAUL IONUT VIDRASAN,
a/k/a “Michu,” a/k/a “The Boy”
27
Perugia, Italy
Romania
MIRCEA CONSTANTINESCU, a/k/a “Sobo”
44
Cooper City, Florida
Romania
NIKOLAOS LIMBERATOS, a/k/a “Nicu Limberto”
53
Deer Park, New York
Greece
CRISTIAN COSTEA, a/k/a “Momo”
44
Queens, New York
Romania
ALIN HANES CALUGARU
39
Sunny Isles, Florida
Romania
IONELA CONSTANTINESCU, a/k/a “Pitica”
35
Cooper City, Florida
Romania
THEOFRASTOS LYMBERATOS
36
Queens, New York
United States
ANDREW ELIOPOULOS
34
Queens, New York
United States
VALENTIN PETRESCU, a/k/a “Gico Cosmin Giscan,” a/k/a “Zoltan Pruma”
32
Russellville, Arkansas
Romania
PETER SAMOLIS
30
Queens, New York
United States
KELLY KARKI LAM
42
New York, New York
United States
GEORGE SERBAN
32
Miami, Florida
Romania
DRAGOS DIACONU
41
Nashville, Tennessee
Romania
MADLIN ALEXANDRU ANCA, a/k/a “Mateo Fernandez Alejandro”
22
Nashville, Tennessee
Romania
CRISTIAN ULMANU, a/k/a “Boris Moravec”
54
Russellville, Arkansas
Romania
IULIANA MIHAILESCU
42
Queens, New York
Romania
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and Superseding Indictments, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
149 Arrested During Joint Law Enforcement Initiative in the Golden Triangle AreaRead the Press Release
A six-week joint federal, state, and local law enforcement initiative has resulted in the arrests of 149 individuals in North Mississippi on a variety of criminal charges, including violent crimes, drug crimes and gang related activities. “Operation Triple Beam,” a U.S. Marshals led initiative brought together federal, state, and local law enforcement partners in an effort to reduce crime in the Golden Triangle area by identifying and arresting violent fugitives, targeting violent gang activity, and collecting intelligence to allow for the systematic removal of individuals who are responsible for committing crimes in North Mississippi.
In addition to the arrests, Operation Triple Beam resulted in the seizure of approximately $65,820 worth of narcotics and narcotics related proceeds. Danny McKittrick, U.S. Marshal for the Northern District of Mississippi, and Chad Lamar, U.S. Attorney for the Northern District of Mississippi, made the announcement on Wednesday in Columbus, together with their federal, state and local law enforcement partners.
Operation Triple Beam commenced in the Golden Triangle area on July 15, 2019, and concluded on August 30, 2019. As a part of the initiative, approximately 50 gang members were arrested or validated by law enforcement. In addition, 155 registered sex offenders living in Northeast Mississippi and the Golden Triangle area were checked for compliance with sex offender registration requirements. Compliance checks were also conducted on eight moderate and high-risk federal and state probationers.
The arrests, seizures and compliance checks occurring as part of the Operation Triple Beam initiative resulted from the combined efforts of a half dozen local law enforcement agencies across three counties in North Mississippi, along with State and Federal law enforcement partners. Law enforcement agencies participating in the Operation Triple Beam initiative included: U.S. Marshal’s Service; U.S. Attorney’s Office; U.S. Probation; U.S. Customs and Border Protection Air and Marine Unit; Bureau of Alcohol Tobacco and Firearms; Mississippi Bureau of Narcotics; Mississippi Highway Patrol; Mississippi Bureau of Investigation; Mississippi Department of Corrections; Mississippi Air National Guard; West Point Police Department, Lowndes County Sheriff’s Department; Columbus Police Department; Clay County Sheriff’s Department; Oktibbeha County Sheriff’s Department; and the Starkville Police Department.
The use and sharing of investigative resources and the multi-agency partnerships that were crucial to the success of Operation Triple Beam as a whole are key components of the Project Safe Neighborhoods (PSN) Program, the Department of Justice’s gun violence reduction initiative. PSN began in 2002 under President George W. Bush, continued under President Obama, and was reinvigorated in October of 2017 during President Trump’s administration.
As with Operation Triple Beam, PSN focuses on reducing violent crime and making communities safer through partnerships and collaborative efforts between federal, state and local law enforcement and community partners. The PSN program in the Northern District of Mississippi has long been a priority for the U.S. Attorney’s Office and a primary means of combatting violent gun crime. Although it originally focused in the areas of Clarksdale and Greenville, Mississippi, the U.S. Attorney’s Office expanded the program in 2017 to reach other areas of the District, including Columbus and Lowndes County.
U.S. Attorney General William Barr praised the efforts and partnerships that are a part of the District’s PSN Initiative. “The revitalized Project Safe Neighborhoods program is a major success,” said Attorney General William P. Barr. “It packs a powerful punch by combining advanced data with local leadership, further reducing violence in communities across the country and improving overall public safety. U.S. Attorneys continue to focus their enforcement efforts against the most violent criminals and work in partnership with federal, state, local, and tribal police. The Justice Department’s relationships across the board have never been stronger.”
U.S. Marshal McKittrick and U.S. Attorney Lamar announced the results of Operation Triple Beam on Wednesday in conjunction with the two year anniversary of the reinvigoration and renewal of the PSN program.
U.S. Marshal McKittrick and Chief Deputy Jeff Woodfin praised the collaboration between the federal, state and local law enforcement agencies that took part in the operation. “This initiative gave the public a small glimpse of what law enforcement carries out on a daily basis. We couldn’t be more proud of the men and women who worked diligently during this highly effective operation,” McKittrick remarked. “This all-hands-on-deck approach was pivotal in the success of this operation, which will make a difference in our communities. Some of these cases will be prosecuted in federal court and some in state court. There are additional ongoing investigations that may lead to future arrests, all of which are important in the pursuit of dismantling the criminal element in the Northern District of Mississippi.”
U.S. Attorney Chad Lamar thanked the many law enforcement agencies who participated in Operation Triple Beam and praised the results. “Columbus and the larger Golden Triangle area are focus points for our Project Safe Neighborhoods program and this Operation Triple Beam is a prime example of what law enforcement can accomplish when local, federal, and state partners work together,” Lamar stated. “By running operations like Operation Triple Beam that rely on partnerships, intelligence-driven data and targeted enforcement, we can and will keep make our neighborhoods safer for all citizens.”
110 Gang Syracuse RICO Trial Ends in ConvictionRead the Press Release
SYRACUSE, NEW YORK – Following an eight-day trial, a federal jury in Syracuse convicted Anthony Hopper, age 32, of Syracuse, of violating the Racketeering Influenced Corrupt Organizations Act (RICO), announced United States Attorney Grant C. Jaquith; James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Syracuse Police Chief Kenton Buckner. The RICO conviction included a finding that Hopper was guilty of a murder. The jury acquitted on another murder allegation contained in the RICO indictment and on a charge of discharge of a firearm during a crime of violence. The other 13 men charged in the same indictment as Hopper have all pled guilty and are awaiting sentencing.
During the trial, jurors heard testimony from members of the 110 Gang and others about the 110 Gang’s robberies, drug trafficking, and illegal possession of firearms. They also heard from witnesses who described how the 110 Gang retaliated against other gangs for shootings and murders.
“No one should have to live in a neighborhood controlled by thugs,” said U.S. Attorney Grant Jaquith. “Thanks to the dedicated work of the Syracuse Police Department, the FBI, and law enforcement agencies in Onondaga County, another 110 Gang member will now be held responsible for killing a person in our community. We will never waver in our resolve to prosecute violent gang members.”
Syracuse Police Chief Kenton Buckner, said, “The Syracuse Police Department would like to thank United States Attorney Grant C. Jaquith for his partnership in the indictment of 14 men, members and known associates of the “110” Gang, on Racketeering charges. The convictions of these individuals culminates the efforts of our local, state and federal partners. This is another example of how working together is beneficial to our entire community. We look forward to continuing in this partnership.”
“Anthony Hopper chose to terrorize his community through violence and fear on behalf of the 110 Gang, and now he will face the consequences of those actions,” said James Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI). “The FBI and our partners will continue to aggressively pursue gangs wherever they surface and are committed to making Syracuse and the surrounding communities a safe place for our citizens.”
Sentencing is scheduled for June 16, 2020 in Syracuse before Senior United States District Judge Frederick J. Scullin, Jr. Hopper faces a maximum sentence of life imprisonment, based upon the jury’s finding that he was guilty of committing a murder. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the Federal Bureau of Investigation (FBI), the Syracuse Police Department, and the Gang Violence Task Force, which consists of members of the Syracuse Police, the FBI, the U.S. Drug Enforcement Administration (DEA), the U.S. Marshals Service, the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the New York State Police, the New York State Department of Corrections, the New York State Attorney General, and the Onondaga County District Attorney’s Office. This case is being prosecuted by Assistant U.S. Attorneys Nicolas Commandeur and Kristen Grabowski.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
"ThePedoMan" Sentenced to Prison for Possession of Child PornRead the Press Release
Athens, Georgia— A Walton County, Georgia man, known as “ThePedoMan” on child pornography websites, was sentenced in federal court to 41 months in prison, announced Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. John McCurdy, a/k/a John McCurdy-Walker, 27, of Loganville, Georgia previously pleaded guilty to the indictment charging him with one count possession of child pornography, and was sentenced on October 9, 2019 by U.S. District Judge C. Ashley Royal. There is no parole in the federal system.
“Law enforcement at every level remain relentless in tracking down and arresting the makers and the possessors of child pornography in Georgia, and we will continue to prosecute these criminals to the fullest extent allowed by the law,” said U.S. Attorney Charlie Peeler. “Predators who view child pornography are victimizing the innocent and directly fueling abhorrent abuse. I want to thank the FBI and the GBI for their work protecting Georgia children.”
“The victimization of a child doesn’t end when that child’s pornographic images are recorded. Every time an individual like McCurdy possesses those images and views them for personal gratification, that child is victimized again, and again,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI will always make it a priority to protect our most vulnerable assets, our children.”
“The GBI and the Georgia ICAC Task Force will continue to diligently work with our local, state and federal partners to protect our children,” said Debbie Garner, Special Agent in Charge and Commander, Georgia ICAC Task Force. “The committed network of law enforcement officers that investigate the possession, distribution and production of online child sexual abuse material is dedicated to finding and prosecuting those who sexually exploit our children.”
According to the stipulation of fact entered in court, at or around December 3, 2015, Mr. McCurdy used a computer or interactive computer service to access, possess and view videos and still photos of between 150 and 300 images of child pornography, including images featuring prepubescent minors. According to information presented in court, Mr. McCurdy admitted that he has been looking at child pornography since he was 14-years-old and that he accessed child pornography through the dark web under the user name “ThePedoMan”. Mr. McCurdy’s defense argued for a downward variance on the federal sentencing guidelines recommended for the charge. That request was denied by the Court.
The case was investigated by the FBI and the Georgia Bureau of Investigation ICAC Task Force. Assistant U.S. Attorney Lyndie M. Freeman prosecuted the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
9 October 2019
Wilson Man Indicted on Ammunition ChargeRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned an indictment charging JOHN DAVID JONES, age 37, of Wilson, with possession of ammunition as a convicted felon.
As alleged in open court during JONES’ detention hearing on October 9, 2019, on January 14, 2019 North Carolina State Highway Patrol Trooper Daniel Harrell conducted a traffic stop on a vehicle JONES was driving. The defendant fled during the initial stop, firing several rounds into the windshield of Trooper Harrell’s vehicle, striking Trooper Harrell in the face. JONES then fled the scene. Investigators recovered shell casings from the scene of the shooting, and the defendant’s DNA was found on a recovered shell casing.
At the detention hearing it was determined that JONES would remain in custody until the disposition of the charges against him. If convicted, JONES would face a maximum of 10 years imprisonment, a $250,000 fine, and a term of up to three years supervised release following any term of imprisonment.
The charges and allegations contained in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
This case is part of the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. For more information about this initiative, CLICK HERE .
The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), United States Marshals Service, North Carolina State Highway Patrol, North Carolina State Bureau of Investigation, Wilson County Sheriff’s Office, Nash County Sheriff’s Office, and Greenville Police Department investigated this matter. Assistant United States Attorney Chad E. Rhoades is prosecuting the case for the government.
Wilmington Gang Members Receives 11 Years in Federal PrisonRead the Press Release
NEW BERN – United States Attorney Robert J. Higdon, Jr. announced that in federal court, United States District Judge Louise W. Flanagan sentenced JAQUARIES WASHINGTON, 20, of Wilmington North Carolina to 132 months imprisonment, followed by 3 years of supervised release.
WASHINGTON was named in an indictment filed on February 13, 2019 charging him with possession with the intent to distribute a quantity of heroin. On June 20, 2019, WASHINGTON pled guilty to the indictment.
According to the investigation, on November 27, 2018, the New Hanover County Sheriff’s Office Vice Unit ordered a quantity heroin from WASHINGTON to be delivered to a hotel room in Wilmington. Upon arriving to the hotel room, WASHINGTON was arrested for possession of heroin. After WASHINGTON’s arrest, law enforcement searched the car in which WASHINGTON arrived and found a juvenile in the backseat and a loaded pistol on the floorboard.
According to law enforcement, WASHINGTON was a validated gang member. WASHINGTON was prohibited from associating with other gang members of his set because of a North Carolina State Civil Gang Injunction at the time of his arrest.
This case is part of an FBI-led Organized Crime Drug Enforcement Task Force (OCDETF) operation named “Dodge Ball.” This operation is focused on members of the Nine Trey sect of the United Blood Nation, a violent gang in Wilmington, North Carolina involved in the distribution of heroin, possession of firearms and associated violence. This is a joint investigation by the FBI Safe Streets Task Force (Gang Unit), Bureau of Alcohol, Tobacco, Firearms and Explosives, Wilmington Police Department, and New Hanover Sheriff’s Office. The FBI Safe Streets Task Force and ATF utilize resources from federal, state, and local law enforcement in order to efficiently and effectively target and combat criminal gangs and drug trafficking organizations operating in coastal southern North Carolina. A key component of federal task force’s success involves the use of task force officers from local law enforcement who have direct knowledge of the criminal gang activity in their areas.
This case is also part of the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The Federal Bureau of Investigation Safe Streets Task Force, Bureau of Alcohol, Tobacco, Firearms and Explosives, New Hanover County Sheriff’s Office, Wilmington Police Department, and North Carolina State Bureau of Investigation investigated this case. Assistant United States Attorney Timothy Severo prosecuted the case on behalf of the government.
Wife of Ponzi Scheme Perpetrator Pleads Guilty to Federal Charge for Conspiring to Remove and Conceal Assets in Violation of Court OrdersRead the Press Release
Baltimore, Maryland – Amanda Mahlstedt Merrill, age 30, of Towson, Maryland, pleaded guilty today to the federal charge of conspiracy to remove property to prevent seizure, obstruct justice, and disobey court orders.
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; and Special Agent in Charge Robert W. Manchak of the Federal Housing Finance Agency, Office of Inspector General.
“This prosecution demonstrates our commitment to the integrity of the judicial process. When the district court enters an order in a case, we expect the affected persons to abide by the order, not conspire to remove and hide assets,” said U.S. Attorney Robert K. Hur. “We will prosecute those, like Amanda Merrill, who hide assets which are subject to seizure, who obstruct justice, and who attempt to keep ill-gotten gains for their own benefit rather than restoring them to the victims of fraud.”
According to her plea agreement, on September 11, 2018, Amanda Merrill’s husband, Kevin Merrill, was indicted on federal charges of conspiracy to commit wire fraud, identity theft, money laundering conspiracy, and money laundering, in connection with a $394 million Ponzi scheme. The indictment included a forfeiture allegation for $39 million, six real estate properties, 25 cars, a boat, an interest in an aircraft, an insurance policy, and jewelry. The properties to be forfeited included the Merrills’ residence in Towson and a home on Spyglass Lane in Naples, Florida. On September 13, 2018, the Securities and Exchange Commission (SEC) brought a civil enforcement action against Kevin Merrill, other persons and entities, and Kevin Merrill’s companies. The Court issued a temporary restraining order freezing assets and granting other emergency relief and appointed a temporary receiver. Anyone receiving notice of the receivership order who possessed property, business books, records, accounts, or assets of the receivership parties was directed to provide those items to the receiver.
On September 18, 2018, Kevin Merrill was arrested at his residence in Towson and agents seized jewelry, his watch collection, cars, and over $520,000 in cash, mostly from a safe. Kevin Merrill was subsequently ordered to be detained pending trial as a risk of flight and a risk of obstruction of justice. FBI Special Agents provided Amanda Merrill with a receipt of items taken and asked her to disclose any information to assist agents in locating items not collected at the residence. Amanda Merrill was counseled by the FBI agents to be completely truthful in her answers and was warned against attempting to hide or move assets. Amanda Merrill’s counsel was also provided with a copy of the restraining order and the receivership order.
Nevertheless, beginning on October 3, 2018, Amanda Merrill redeemed the points on an American Express business credit card belonging to Kevin Merrill, even though she was not an authorized user. Amanda Merrill received 127 gift cards worth $26,075 for retail businesses such as Target, Home Depot, Nordstrom, Sephora, and Starbucks.
On October 13, 2018, Amanda Merrill and another individual traveled by plane to Naples, Florida, to the Spyglass Lane property, which the Merrills had purchased earlier that year for $10 million. The Merrills were captured on several recorded jail calls that day discussing Amanda Merrill’s trip to the Florida property, which they referred to in coded language as “the restaurant.” On the recorded jail calls, Kevin and Amanda Merrill discussed how to open the safe at the property. Amanda Merrill removed cash and other items from the home, which she placed into her purse, two large suitcases, and a carry-on bag. She told the other individual who accompanied her on the trip that she intended to tell her attorney that she had found the safe unlocked and empty. Video footage from BWI Airport security for October 13, 2018 shows Amanda Merrill returning from Florida rolling a carry-on bag and holding a large purse. Video footage revealed that Amanda Merrill also retrieved two large suitcases from the baggage carousel. American Express statements for Kevin Merrill’s business card (for which Amanda Merrill was not an authorized user) also show the purchase of plane tickets for Amanda Merrill and her companion, and payment for a rental car. Amanda Merrill’s American Express statement shows two airline charges of $75 each for two pieces of luggage, each of which was over the 50-pound limit, for the trip from Ft. Myers, Florida to BWI.
On October 30, 2018, counsel for Amanda Merrill e-mailed a letter directed to “Government, SEC, and Receiver,” which stated, among other things, that Amanda Merrill and her companion had gone to the house in Naples, Florida and “the unlocked safe at the house was empty,” and that they had removed six boxes of children’s clothing and personal items. The statement was false because Amanda Merrill misrepresented what had happened in Florida to her counsel and omitted the cash, the over-weight-limit suitcases, and the carry-on luggage in talking with her attorney.
In early November 2018, FBI Special Agents executed search warrants at the Merrill homes in Towson and Naples. In the Towson home, agents discovered approximately $15,378 in cash, $8,878 in a purse in Amanda Merrill’s bedroom, with the remainder in a closet drawer. Agents also located the two large suitcases, which were still tagged from the trip, but were empty, as well as the six boxes of children’s clothing and personal items in the Towson home. In the Florida home, agents used the transcription of the recorded jail call to gain access to the safe, which was empty.
According to the plea agreement, at sentencing the government will recommend that Amanda Merrill serve 12 months on electronic home monitoring with work release and restitution. U.S. District Judge Richard D. Bennett has scheduled sentencing for January 22, 2020 at 3:00 p.m.
Kevin Merrill, age 54, of Towson, previously pleaded guilty to conspiracy and wire fraud arising from his role in a $394 million investment fraud scheme that operated from 2013 through September 2018. Merrill faces a maximum of 40 years in prison for the wire fraud conspiracy and for wire fraud, as well as a possible fine of $500,000, or twice the gross gain, at his sentencing hearing scheduled to begin on October 10, 2019.
United States Attorney Robert K. Hur commended the FBI in Baltimore and Tampa; the Federal Housing Finance Agency, Office of the Inspector General; and the SEC for their work in this investigation. Mr. Hur thanked Assistant U.S. Attorneys Joyce K. McDonald and Martin J. Clarke, who are prosecuting the criminal case.
# # #
Wichita Man Sentenced in Commercial RobberiesRead the Press Release
WICHITA, KAN. – A Wichita man who robbed three stores was sentenced Tuesday to 84 months in federal prison, U.S. Attorney Stephen McAllister said.
Willie Smith, 39, Wichita, Kan., pleaded guilty to one count of robbery. In his plea, he admitted that in 2018 he robbed the QuikTrip store at 1532 S. Seneca. He showed the clerk what appeared to be a revolver before demanding money. Later, when investigators searched his apartment, they found a black BB gun they believe Smith used in three robberies.
At sentencing, the court also took into account as relevant conduct two other robberies Smith committed in 2018. Smith robbed the Express Mart at 565 S. Market. During the robbery, he showed the clerk what appeared to be a revolver. Smith also robbed Pete’s Liquor at 332 W. Harry. During the robbery, he pulled out what appeared to be a revolver.
McAllister commended the Wichita Police Department and Assistant U.S. Attorney David Lind for their work on the case.
Western Iowa Methamphetamine Traffickers SentencedRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced three sentences for Conspiracy to Distribute Methamphetamine imposed by Chief District Court Judge John Jarvey on October 8, 2019. Joseph A. Brown, a 35 year-old Omaha, Nebraska, resident, was sentenced to ten years in prison, followed by five years of supervised release. Christopher M. Rouse, a 31 year-old Omaha, Nebraska, resident was sentenced to twenty years in prison, followed by five years of supervised release. Bernave Navarrete, a 28 year-old resident of Council Bluffs, Iowa was sentenced to twenty years in prison, followed by five years of supervised release.
The convictions were the result of a lengthy investigation by Iowa Division of Narcotics Enforcement and the Federal Bureau of Investigation Safe Streets Task Force into methamphetamine trafficking in Western Iowa. The investigation revealed that methamphetamine was being brought into the Omaha, Nebraska, area from Mexico, and then transported to various locations in Nebraska and Western Iowa for distribution.
As part of this investigation, the following individuals were already sentenced to prison: Jackie Thielen, ten years; Brandy Kumpula, eight years; Chase Richard, fifteen years; Jessica Snavely, ten years; and William LaBenz, five years. The sentencing hearings for Omar Martinez, Laura Rausch-Anderson, Colby Dunn and Manda May Rowell are still pending.
This matter was investigated by Iowa Division of Narcotics Enforcement, Federal Bureau of Investigation’s Safe Streets Task Force, Omaha Police Department, Southwest Iowa Narcotics Task Force, Council Bluffs Police Department, Harlan, Iowa Police Department and the Shelby County Sheriff’s Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Wausau Doctor Sentenced for Fraudulent Fentanyl Prescription SchemeRead the Press Release
Madison, Wis. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Thomas Strick, 60, Wausau, Wisconsin, was sentenced today by U.S. District Judge William Conley to three months in federal prison for obtaining fentanyl by use of misrepresentation and fraud.
During the timeframe of the government’s investigation, Strick was employed as a family practice physician at Aspirus Wausau Hospital and the Aspirus Wausau Family Clinic. The government’s investigation revealed that between 2011 and 2018, Strick prescribed fentanyl patches to at least six patients without a medical need. Strick instructed the patients to fill the prescriptions and return the fentanyl patches to him for personal use, telling the patients that he needed the fentanyl to relieve his pain. Investigators determined that Strick had written 193 fraudulent prescriptions for fentanyl patches and had acquired 3,156 patches as a result of the prescriptions.
In imposing the sentence, Judge Conley stated that Strick violated the public’s trust by using his position as a physician to feed his own drug addiction. Judge Conley noted that Strick had abused his professional responsibility by enlisting his patients to participate in prescription fraud. Judge Conley noted that Strick’s scheme exploited his patients by using their sense of obligation to him while he repeatedly breached their trust. Judge Conley also expressed deep concern that Strick had been previously convicted in Marathon County in 2004 for similar conduct.
As a result of his conviction in this case, Strick has been suspended from practicing medicine and surgery by the Wisconsin Medical Examining Board.
The charges against Strick are the result of an investigation by the Drug Enforcement Administration and the Wausau Police Department. The prosecution of this case has been handled by Assistant U.S. Attorney Aaron D. Wegner.
Waterbury Resident Charged with Violating Federal Sex Offender Registration LawRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that KURTIS GASKINS, 46, of Waterbury, was arrested today based on an indictment charging him with violating the Sex Offender Registration and Notification Act (SORNA).
On September 25, 2019, a grand jury returned an indictment charging Gaskins with the offense. Following his arrest by the U.S. Marshals Service this morning, Gaskins appeared before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven, entered a plea of not guilty to the charge, and was released on a $10,000 bond under GPS monitoring.
In 1992, Gaskins was convicted in Massachusetts of sexual assault offenses. The indictment alleges that Gaskins failed to register as a sex offender in Connecticut when he moved to Connecticut in November 2018, and failed to update his sex offender registration in Massachusetts.
If convicted of the offense, Gaskins faces a maximum term of imprisonment of 10 years.
U.S. Attorney Durham stressed that an indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial at which it is the government’s burden to prove guilt beyond a reasonable doubt.
This matter is being investigated by the U.S. Marshals Service and prosecuted by Assistant U.S. Attorney Nathaniel J. Gentile.
Warren County Man Charged with Possessing Child PornographyRead the Press Release
ALBANY, NEW YORK – Terry Lajeunesse, age 48, of Pottersville, New York, was arrested yesterday and charged by criminal complaint with possessing child pornography.
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
According to a criminal complaint, Lajeunesse possessed multiple images of child pornography on his cell phone. The charge in the complaint is merely an accusation. The defendant is presumed innocent unless and until proven guilty.
Lajeunesse appeared yesterday before United States Magistrate Judge Christian F. Hummel, who ordered him detained pending further proceedings.
If convicted, Lajeunesse faces at least 10 years and up to 20 years in prison, as well as a term of post-imprisonment supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the FBI and its Child Exploitation Task Force, which includes members of the New York State Police, and is being prosecuted by Assistant U.S. Attorney Ashlyn Miranda.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/
U.S. DOJ awards $6.3 million to local and state law enforcementRead the Press Release
Seattle – U.S. Attorney Brian T. Moran today announced more than $6 million in federal grant funds to support law enforcement officers and community safety in Washington. Speaking at Microsoft for the 2019 Regional Conference for the Internet Crimes Against Children (ICAC) Task Forces, U.S. Attorney Moran congratulated the Seattle Police based ICAC for successfully competing for a $606,404 grant to support ICAC investigations in 25 of Washington’s 39 counties.
“More than 100 partner law enforcement agencies are working with the Seattle based ICAC to investigate predators who are using the internet to lure children and steal their innocence,” said Moran. “These grant monies are a tangible indication of how important our ICAC task forces are – they are literally saving children from predation and exploitation, and we owe the men and women who have devoted their professional lives to preventing these crimes a debt of gratitude.”
The ICAC grant is just one of a number of grant awards to law enforcement at the state and local level to enhance public safety. Just over $3.3 million was awarded to Washington State as part of the Edward Byrne Memorial Justice Assistance Grant program. The monies will be funneled to state and local organizations supporting a variety of initiatives including anti-gang and drug task forces, crime prevention, and officer safety.
Other Byrne grants include: $672,410 to the City of Seattle; $290,738 to Tacoma; $96,127 to Clark County; $51,888 to Snohomish County; $35,915 to Kitsap County; $20,200 to Bremerton; $36,076 to Bellingham; $41,723 to Lakewood; $13,585 to Marysville; and $12,972 to Longview.
The Washington Association of Sheriffs and Police Chiefs were awarded two grants totaling $368,667 under the Project Safe Neighborhood program. The grant monies are used to support gang task forces working to reduce violent crime, firearms offenses, human trafficking and drug trafficking.
Finally, under the National Officer Safety Initiatives Program, Polis Solutions of Seattle was awarded $750,000 to evaluate and update defensive training for state, local, tribal and territorial law enforcement agencies. The grant is to develop a model defensive tactics training program that law enforcement agencies and academies can implement.
The Byrne Grants are named in honor of New York City Police Officer Edward R. Byrne, who was killed in the line of duty on February 26, 1988. Officer Byrne was just 22-years-old.
For additional information on individual grants, please contact the recipient organizations.
U.S. Attorney David C. Joseph Announces Progress in Making Our Communities Safer Through Project Safe NeighborhoodsRead the Press Release
SHREVEPORT/LAFAYETTE/ALEXANDRIA/LAKE CHARLES/MONROE, La.: Two years ago, the Department of Justice announced the revitalization and enhancement of Project Safe Neighborhoods (PSN), the centerpiece of the department’s violent crime reduction strategy. 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.
Throughout the past two years, the department’s United States Attorneys have partnered with all levels of law enforcement, local organizations, and members of the community to reduce violent crime and make our neighborhoods safer for everyone. According to FBI’s 2018 Uniform Crime Report released last week, the violent crime rate decreased for the second consecutive year, down 3.9 percent from the 2017 numbers. The 2018 statistics show the estimated rate of violent crime was 368.9 offenses per 100,000 inhabitants.
“The revitalized Project Safe Neighborhoods program is a major success,” said Attorney General William P. Barr. “It packs a powerful punch by combining advanced data with local leadership, further reducing violence in communities across the country and improving overall public safety. U.S. Attorneys continue to focus their enforcement efforts against the most violent criminals and work in partnership with federal, state, local, and tribal police. The Justice Department’s relationships across the board have never been stronger.”
“My number one priority remains aggressively prosecuting violent crime in the Western District of Louisiana through the Project Safe Neighborhoods initiative,” said U.S. Attorney Joseph. “PSN is a proven strategy that works when federal, state and local law enforcement partners come together to identify and prioritize prosecution of the most violent criminals in our neighborhoods — holding them accountable for their crimes and preventing future criminal conduct. We will not allow a culture of violence to deprive honest, hardworking Louisianans of the freedoms and opportunities we cherish as Americans. I want to thank the prosecutors from my office and our federal, state and local law enforcement partners for their hard work and dedication over the past year to make our communities safer.”
Throughout the past year, the United States Attorney’s Office for the Western District of Louisiana has continued to make good on its promise to prioritize reducing violent crime through the implementation of PSN throughout the district. Monthly meetings are being held with prosecutors from the U.S. Attorney’s Office and violent crime task forces from the five metropolitan cities within the district, consisting of federal, state, and local law enforcement officers as well as state prosecutors. Directly as a result of this collaboration, teamwork, and shared intelligence and resources, approximately three times the number of firearm and violent crime offenses were charged by the U.S. Attorney’s Office as compared to prior years.
Enforcement Actions
Some of the more notable cases charged in the Western District of Louisiana under this initiative are as follows:
- On August 27, 2019, DeMarcus D. Morris, ring leader of the “Block Boyz” gang, was sentenced to over 33 years in prison and each of the other members were sentenced to substantial prison time. The “Block Boyz” was a notorious street gang that long terrorized Shreveport neighborhoods using the west side of the Queensborough neighborhood as their base of operations. On October 3, 2018, following a two-week trial, five gang members were convicted of RICO and other offenses. The remaining defendants pleaded guilty. https://www.justice.gov/usao-wdla/pr/block-boyz-gang-leader-and-last-two-members-sentenced-serve-time-federal-prison
- On August 1, 2019, Lakendria Nicole Goings and David Ray Johnson were convicted by a federal jury in Monroe, Louisiana, for an armed bank robbery spree involving three financial institutions and multiple firearms violations. https://www.justice.gov/usao-wdla/pr/federal-jury-convicts-northeast-louisiana-couple-armed-bank-robbery-spree
- Just last week, Ivory Carl Myers was sentenced to 30 years in prison for the armed robbery of a shift manager at a Bossier City Burger King. Myles took the money after threatening to kill the manager and forced the victim at gunpoint to leave the Burger King with him. On the way to Houston, Texas, he sexually assaulted his victim on two occasions. https://www.justice.gov/usao-wdla/pr/armed-robber-sentenced-30-years-federal-prison
- Demarcus Jontue Scales, a violent repeat offender in Alexandria, Louisiana, was sentenced last week to 44 months in federal prison for felon in possession of a firearm. The 44-month sentence will run consecutively with his 15-year state court sentence for murder. https://www.justice.gov/usao-wdla/pr/six-convicted-felons-receive-federal-prison-sentences-week-illegally-possessing
- On March 18, 2019, seven-time convicted felon, Anthony Joseph Meaux, was sentenced to 25 years in prison for possession of a firearm by a convicted felon. Meaux’s previous convictions include simple burglary, simple robbery, and drug-related offenses. https://www.justice.gov/usao-wdla/pr/seven-time-convicted-felon-sentenced-25-years-prison-possession-firearm
Improvements to Community Safety
The U.S. Attorney’s consistent engagement and collaboration with law enforcement and the commitment of substantial resources by our partners at the federal, state, and local levels have proven effective in reducing violent crime. FBI data shows that violent crime rates dropped in the Western District of Louisiana even more than the national average of 3.9 percent. Specifically, 2018 saw violent crime drop 38% in Monroe, 14% in Shreveport, 9% in Lake Charles, and 5% in Lafayette. Violent crime in the major metropolitan cities in the Western District of Louisiana decreased from 4,997 events in 2017 to 4,206 events in 2018. This resulted in 791 fewer victims of violent crime in the Western District of Louisiana.
These enforcement actions and partnerships are 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. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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U.S. Attorney Bart M. Davis Announces Progress in Making Our Communities Safer through Project Safe NeighborhoodsRead the Press Release
BOISE – Two years ago, the Department of Justice announced the revitalization and enhancement of Project Safe Neighborhoods (PSN), the centerpiece of the department’s violent crime reduction strategy. 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.
Throughout the past two years, we have partnered with all levels of law enforcement, local organizations, and members of the community to reduce violent crime and make our neighborhoods safer for everyone. According to FBI’s 2018 Crime in the United States Report released this week, the violent crime rate decreased for the second consecutive year, down 3.9 percent from the 2017 numbers.
“The revitalized Project Safe Neighborhoods program is a major success,” said Attorney General William P. Barr. “It packs a powerful punch by combining advanced data with local leadership, further reducing violence in communities across the country and improving overall public safety. U.S. Attorneys continue to focus their enforcement efforts against the most violent criminals and work in partnership with federal, state, local, and tribal police. The Justice Department’s relationships across the board have never been stronger.”
“State, local, tribal, and federal partners’ cooperation has been vital to the successful implementation of Project Safe Neighborhoods in Idaho,” said U.S. Attorney Bart M. Davis. “Through these combined efforts, many violent and dangerous offenders have been removed from our streets. And we are not done! Every day, these partners work to reduce violent crime across all of Idaho.”
As we celebrate the two-year anniversary of the revitalized PSN program, here are some of the highlights of our PSN actions:
Enforcement Actions
Idaho’s PSN Task Force is working together with state and local partners to seek out serious offenders that pose a risk to the community. In 2019, the U.S. Attorney’s Office increased its prosecution of violent offenders by nearly 30 percent. The following cases exemplify some of the work accomplished by PSN.
- Kuna Man Sentenced to 30 Years in Federal Prison for Drug Trafficking and Gun Crimes.
- Garden City Woman Sentenced to 10 Years in Federal Prison for Gun and Drug Crimes
- Drug and Sawed Off Shotgun Dealer Sentenced to 78 Months
Improvements to Community Safety
- For the second consecutive year, the estimated number of violent crimes in the nation decreased when compared with the previous year’s statistics, according to FBI figures released today. In 2018, the number of violent crimes was down 3.3 percent from the 2017 number.
- The 2018 national statistics show the estimated rate of violent crime was 368.9 offenses per 100,000 inhabitants. The violent crime rate fell 3.9 percent when compared with the 2017 rate. While Idaho had an increase of 1.95 percent in 2018, Idaho has the lowest violent crime rate among the Western region and the sixth-lowest in the country. Further, in 2018, Idaho experienced a 0.8 percent decrease in aggravated assault offenses, which accounts for 72.4 percent of the violent crime in Idaho.
These enforcement actions and partnerships are 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. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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U.S. Attorney Announces Civil Action to Resolve Ownership of Jean Dubuffet Painting Formerly in Possession of Indicted Art Dealer Michel CohenRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that the United States filed a civil lawsuit to resolve potential claims to “Site avec 5 personnages” (the “Painting”), an acrylic work on canvas by renowned 20th century-artist Jean Dubuffet (1901-1985) that was last known to be the personal property of Michel Cohen (“Cohen”), a former art dealer who has been under indictment for wire and mail fraud since 2003. The Federal Bureau of Investigation (“FBI”) came into the possession of the Painting during the course of its investigation into Cohen, who, according to the indictment against him previously filed in this District, induced numerous national and international art galleries, collectors, and investors to consign to him expensive works of art and to give him large sums of money as part of fraudulent transactions. The civil action filed today, known as an interpleader, seeks to allow the Government to divest itself of the Painting in favor of the party with the rightful claim to it, as determined by the Court. The case is assigned to U.S. District Judge Jed S. Rakoff.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Michel Cohen fled the United States rather than face charges that he used others’ expensive artworks to defraud his numerous victims. With this civil action, we ensure that a valuable painting that he left behind when he fled will end up with the rightful owner.”
As alleged in the Government’s complaint-in-interpleader, the Painting is one of a series of largely abstract canvases that Jean Dubuffet, a prolific French avant-garde artist and founder of the “Art Brut” or “raw art” movement, and was completed in 1981. The Painting’s catalogue raisonné number is E183, in Catalogue des travaux de Jean Dubuffet : Psycho-sites (1981 - 1982), fasc. XXXIV. Similar paintings from this series have sold at auction in recent years for hundreds of thousands of dollars. The Painting was initially the property of the Dubuffet estate, before it was sold to a purchaser in Asia through a Paris gallery in 1993. The Painting’s provenance between 1993 and 1996, the earliest known date that it was in Cohen’s possession, is unknown. Cohen has not had possession of the Painting since 2001, when he left it with a New York art dealer to attempt its sale. That sale never occurred and Cohen has never made an attempt to reclaim the Painting, which was since deposited with the FBI. The complaint names as interpleader defendants Cohen, as the last known claimed owner of the Painting, and Sotheby’s Financial Services, Inc., an art financing company which has a 2002 civil judgment from New York Supreme Court against Cohen for defrauding it of over a million dollars. The complaint also names several John Does, individuals and entities who are unknown at this time but may also hold judgments against Cohen or may have had title to the Painting prior to 1996. If you hold a court judgment against Cohen or believe you have a claim to title of the Painting, please contact the U.S. Attorney’s Office at (866) 874-8900.
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Mr. Berman thanked the FBI for its ongoing efforts in this matter.
This case is being handled by the Office’s Civil Division. Assistant United States Attorney Stephen Cha-Kim is in charge of the case.
Two Men Admit Drug Conspiracy after Seizure of Fentanyl and HeroinRead the Press Release
TRENTON, N.J. – Two men have admitted their roles in a drug distribution conspiracy in connection with the seizure of fentanyl and heroin at a New Jersey rest stop, U.S. Attorney Craig Carpenito announced.
Luis Aponte, 48, of Riverside, California, pleaded guilty today before U.S. District Judge Peter Sheridan in Trenton federal court to an information charging him with one count of conspiracy to distribute fentanyl and heroin. Denny Diaz, 29, of Philadelphia, Pennsylvania, pleaded guilty before Judge Sheridan on Sept. 10, 2019.
According to the documents filed in the case and statements made in court:
Aponte drove a tractor-trailer truck to a rest stop in Bloomsbury, New Jersey, on March 1, 2019. The next day, he met Diaz in a car and gave Diaz approximately six kilograms of fentanyl. Both men were arrested shortly thereafter. Law enforcement officers searched Aponte’s truck at the rest stop and found an additional two kilograms of fentanyl and 11 kilograms of heroin inside.
The charge to which the defendants have pleaded guilty carries a mandatory minimum sentence of 10 years in prison, a maximum sentence of life imprisonment, and a maximum fine of $10 million. Sentencing for Aponte is scheduled for Feb. 6, 2020, and for Diaz, Dec. 16, 2019.
U.S. Attorney Craig Carpenito credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Ray Donovan, New York Division; New York City Police Commissioner James P. O’Neill; and N.Y. State Police Acting Superintendent Keith M. Corlett with the investigation leading to the guilty pleas. This case is being investigated by the DEA’s New York Drug Enforcement Task Force, comprising agents and officers of the DEA, New York City Police Department and New York State Police.
The government is represented by Assistant U.S. Attorney Andrew Macurdy of the U.S. Attorney’s Office Criminal Division in Newark.
Two Brothers Plead Guilty to Preparing False Tax ReturnsRead the Press Release
KANSAS CITY, Mo. – Two brothers who formerly operated a tax preparation business in Kansas City, Missouri, pleaded guilty in federal court today to preparing false tax returns.
Eliyas Jiregna, 34, of Kansas City, and his brother, Eyob Jiregna, 42, of Memphis, Tennessee (formerly of Kansas City), pleaded guilty in separate appearances before U.S. District Judge Stephen R. Bough. Eliyas and Eyob Jiregna each pleaded guilty to one count of aiding and assisting in the preparation of a false tax return.
Eliyas Jiregna owned and operated a tax preparation business, Tax-N-Go Services, with three locations in Kansas City, Missouri: 1108 E. Armour Blvd., 7934 Troost Ave., and 10411 Blue Ridge Blvd. Eyob Jiregna prepared tax returns at the 1108 E. Armour Blvd. office during the 2015 return filing seasons.
Under federal statutes, Eliyas and Eyob Jiregna each are subject to a sentence of up to three years in federal prison without parole. Under the terms of their plea agreements, Eliyas and Eyob Jiregna must pay restitution to the Internal Revenue Service in the total amount of federal tax loss as determined by the court at sentencing. 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 will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Thomas M. Larson and Matthew N. Sparks. It was investigated by IRS-Criminal Investigation.
Tuscaloosa Felon Convicted on a Federal Charge Arising from ShootingRead the Press Release
BIRMINGHAM -- A federal jury convicted a Tuscaloosa man of being a felon in possession of a firearm, announced United States Attorney Jay E. Town and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Marcus Watson.
The jury returned its guilty verdict against Larry Leon Bryant, 33, on October 8th, after two days of testimony before U.S. District Judge L. Scott Coogler. His sentencing is scheduled for February 27, 2020.
“This verdict sends a clear message to those felons who choose to pick up a firearm and take the law into their own hands,” Town said. “Bryant, an armed career criminal, will finally be removed from our community and will soon call a federal prison cell home.”
“ATF’s priority is reducing violent crime,” Watson said. “Criminals often utilize firearms as tools of their trade causing harm to our communities. This case illustrates ATF’s commitment to effective law enforcement partnerships and dedication to keeping our cities safe.”
Evidence at trial showed that on December 13, 2018, Bryant and his brother went looking for Bryant’s stolen Chevy Suburban. Driving separate vehicles, they found the Suburban on a busy four-lane highway in Tuscaloosa. After boxing the vehicle in at a red-light, they got out of their vehicles and began shooting into the Suburban, as the driver attempted to get away. Bryant’s brother shot the driver, a juvenile, who survived.
He has six felony drug convictions, three of which involved distributions that qualify him for a sentence of 15 years to life under the Armed Career Criminal Act.
ATF investigated the case, which Assistant United States Attorneys Alan Baty and Brittney Bucak prosecuted the case.
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Tulsa Man Sentenced for Laundering Money in Large Scale Methamphetamine OperationRead the Press Release
A Tulsa man was sentenced Tuesday in U.S. District Court for his involvement in drug trafficking and money laundering operations while he worked at Casa Herrera, a local money remitter business, announced U.S. Attorney Trent Shores.
U.S. District Judge Gregory K. Frizzell sentenced Domingo Aguirre, 62, of Tulsa, to 44 months in federal prison for money laundering conspiracy.
“Corrupt money remitter businesses can play significant roles in facilitating criminal enterprises - fraud schemes, human trafficking, terrorism, and, as in this case, the trafficking of large quantities of methamphetamine from Mexico to Oklahoma,” said U.S. Attorney Trent Shores. “Unscrupulous individuals and drug trafficking organizations that exploit addiction for profit will be prosecuted by my office. Mr. Aguirre will now spend time in federal prison as punishment for his role in this drug trafficking enterprise. I hope this sentence sends a message of deterrence to anyone who might think about becoming involved in the drug trade.”
Aguirre was indicted in August 2018, along with 21 other defendants, and pleaded guilty to the charge on Aug. 15, 2019. In his plea agreement, Aguirre stated that he received money and sent it back to Mexico to individuals who supplied methamphetamine for distribution in Tulsa and the surrounding areas. To facilitate the process, he used Casa Herrera to generate wire transfers using nominee names. A “nominee name” is used to hide the actual recipient of the money and disguise the true nature of the transactions. Aguirre explained that he along with Alfredo Herrera and Javier Passement maintained communication with the source of supply, counting money and generating wire transfers to send drug proceeds from Tulsa to Mexico. As a result of the criminal prosecutions associated with this case, Casa Herrera is no longer in business.
Aguirre will remain in the custody of the U.S. Marshals Service until transfer to a U.S. Bureau of Prisons facility.
The Drug Enforcement Administration, FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and Tulsa Police Department conducted the investigation. Assistant U.S. Attorney Joel-lyn A. McCormick prosecuted the case. AUSA McCormick serves as the lead attorney for the United States Attorney’s Organized Crime Drug Enforcement Task Forces.
Towson Man Sentenced to 12 Years in Federal Prison for Distribution of Child PornographyRead the Press Release
Baltimore, Maryland – On October 8, 2019, U.S. District Judge Deborah K. Chasanow sentenced Stephen Bayne Fields, Jr., age 47, of Towson, Maryland, to 12 years in federal prison, followed by lifetime supervised release, for distribution of child pornography. Fields admitted using multiple social media accounts to send and receive video and still images of children engaging, and being used to engage in, sexually explicit conduct via the Internet. Judge Chasanow also ordered that, upon his release from prison, Fields must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence 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); Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Chief Melissa R. Hyatt of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to Fields’ plea agreement, between July and September 2018, Fields used four social media accounts under alias names that were variations of a name beginning with the letter “T” and each included images of an adult female by that name as profile photos. “T” was 20 years old at the time and was known personally to Fields, who obtained the profile photos for his alias accounts from a genuine social media account used by “T” in her own name.
Fields admitted that during this time, using the four social media accounts created using “T’s” name and photos, he sent and received child pornography on numerous occasions. For example, as detailed in the plea agreement, while posing as “T” in July 2018, Fields sent messages to other social media users stating that he (or she) lived in Maryland and requesting “young girl pictures.” Between July 24 and September 2018, Fields received at least five videos depicting prepubescent minors engaged in sexually explicit conduct from other social media users. Fields also sent at least three videos and one still image depicting minors engaged in sexually explicit conduct to other users.
On August 30 and 31, 2018, Fields corresponded through the social media accounts with another user discussing that person’s sexual abuse of a seven-year-old minor female. Fields received two videos from the user depicting an adult male engaging in sexually explicit conduct with a prepubescent female. Fields also sent the other user a sexually explicit video. During their conversations, Fields asked the user to send him photos or videos of the user sexually abusing the girl.
Law enforcement became aware of Fields’ alias accounts through a series of Cybertipline reports made to the National Center for Missing and Exploited Children. Internet Protocol addresses used in August 2018 to access three of these accounts were subscribed by Fields at his residence in Towson. Law enforcement executed a search warrant at the residence and seized a laptop computer and other electronic devices.
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 the FBI, HSI-Baltimore, the Baltimore County Police Department, and the Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Matthew J. Maddox, who prosecuted the federal case.
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Toledo man charged in federal court after law enforcement officials seized nearly 10 kilograms of what is believed to be fentanylRead the Press Release
A Toledo man was charged in federal court after law enforcement officials seized nearly 10 kilograms of what is believed to be fentanyl.
Robert Escobar, 49, was charged in federal court with one count of possession with intent to distribute fentanyl.
According to an affidavit filed in federal court:
DEA agents used a confidential source to make numerous drug purchases from Escobar between March and October 2019. The drugs were tested and found to be mixtures of heroin and/or fentanyl.
During a buy from Escobar’s residence on Westmonte Road in Toledo in October, Escobar stated he has two different kinds of heroin: “XXX” and “Maserati”. Escobar then traveled to a house on North Michigan Street and returned with drugs, that he sold. The drugs were tested and returned results for fentanyl and a fentanyl analogue.
A search warrant was executed on the house on North Michigan Street on October 8. Agents found ten packages in the attic area which weighed approximately 9,615 grams. Three of the packages were marked “Maserati” while other packages were marked “XXX”. The contents of the packages will be tested, according to the complaint.
“This is believed to be the largest seizure of fentanyl in the Toledo area,” U.S. Attorney Justin Herdman said. “This defendant is accused of branding deadly narcotics with names like ‘XXX’ and ‘Maserati.’ The idea that more than 20 pounds of this deadly substance was being sold in a residential neighborhood is both infuriating and terrifying. I applaud the Drug Enforcement Administration, the Perrysburg Township Police Department, Ohio State Highway Patrol, Wauseon Police Department, Sylvania Police Department, BCI, Sandusky Police, CBP and Toledo Police Department for this action – they have undoubtedly saved many lives today.”
“Our communities have been plagued by fentanyl-related overdose deaths for far too long and bringing charges against a major distributor like this will save lives,” said DEA Special Agent in Charge Keith Martin. “We will continue to work with our local law enforcement partners to get drug dealers out of our communities and brought to justice.”
The DEA Toledo Task Force investigated the case. The Task Force includes representatives of the DEA, Perrysburg Township Police, Ohio State Highway Patrol, Wauseon Police Department, Sylvania Police Department, Ohio Bureau of Criminal Investigation and the Sandusky Police Department and the U.S. Customs and Border Protection. The Toledo Police Department SWAT team also assisted. The case is being prosecuted by Assistant U.S. Attorneys Ashley A. Futrell and Alissa M. Sterling.
If convicted, the defendants’ sentences will be determined by the Court after reviewing factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
A charge is only an allegation and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
To Serve and Protect: A Shared Understanding of the Meaning of SacrificeRead the Press Release
PHILADELPHIA – On Saturday, October 5, 2019, United States Attorney William M. McSwain addressed members of law enforcement, the military, and civilian guests as the Law Enforcement Guest of Honor at the Marine Corps-Law Enforcement Foundation’s Philadelphia Gala. The annual event, held this year at the SugarHouse Casino, is a fundraiser to support the Foundation’s core mission: to provide scholarships to children who have lost a parent serving in the U.S. Marine Corps or federal law enforcement. Since its founding in 1995, MC-LEF has awarded over $76 million in educational awards and other humanitarian assistance to over 4,100 recipients.
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Remarks as Prepared for Delivery
Thank you, Chief Inspector Boyle for that kind introduction and for your work as Vice President of the Pennsylvania Chapter of the Marine Corps-Law Enforcement Foundation (MCLEF).
There are a few other thank-yous that I would like to make at the outset. First, I want to thank the organizers of this wonderful Gala. In particular, I’d like to thank Kevin Cauley, both for inviting me to speak to this distinguished group of heroes and friends, and more importantly, for his continued support of law enforcement and the military. Our country needs more citizens like Kevin – people who appreciate the sacrifices that those serving in the military and in law enforcement make every day.
I’d like to thank our military guest of honor, General James T. Conway, the 34th Commandant of the Marine Corps: it is an honor to be with you this evening, General, though this is not the first time that our paths have crossed in a meaningful way to me. Back when I was a boot Second Lieutenant at Quantico, General Conway – or Colonel Conway at the time – was in command of The Basic School, which as many of you know is an arduous, six-month infantry training course for newly commissioned Second Lieutenants. Among these Lieutenants, it is known as TBS. Which either stands for The Basic School, or perhaps, depending on your mood at the time, “The Big Suck.”
Anyway, as a boot Second Lieutenant, I had the privilege of sitting next to General Conway at our TBS Mess Night. I actually had General Conway on my right, and General Christmas to my left. That’s pretty heady stuff for a Second Lieutenant. Sitting with those two great men, listening to their stories, absorbing their lessons, and seeing the way that they treated each other (and the way that they treated me) solidified my love for the Marine Corps in a way that has stayed with me for my whole life, and that will always be with me.
I also would like to express my gratitude this evening to the five brave Medal of Honor recipients who grace us with their presence: Barney Barnum (USMC); Brian Thacker (Army); Tom Kelley (Navy); Mike Thornton (Navy SEAL); and Tommy Norris (Navy SEAL, and retired FBI). Every American is indebted to you for your incredible fortitude, sacrifice, and valor.
Next, I want to thank and congratulate Tony McIntyre, founder of the McIntyre Group, for being selected to receive the Eagle Globe & Anchor Award tonight, and Quint Avenetti, Vice President, Combat Systems Development and Support at Navmar Applied Sciences Group, for receiving the Semper Fidelis Award. Both of these men have made extraordinary contributions to the Marine Corps-Law Enforcement Foundation’s cause, and tonight’s recognition is very well-deserved.
And my final thank you is, in many ways, the most important one: I would like to recognize and thank those in the audience tonight who have either served in the military or in law enforcement (or both, as is the case for many of you). Whether you served in the past or serve in the present, and whether you are a reservist or active duty, a police officer or a federal agent – you are the heroes among us. And you share the same purpose: to keep Americans safe and to ensure that we all can sleep peacefully at night. All Americans are indebted to you for your service. If everyone could please join me in a round of applause to thank our heroes.
There is much that is similar about military service and law enforcement service, so it comes as no surprise that likeminded individuals are drawn to this sort of work. There’s a natural bond between the military and law enforcement.
For one thing, to succeed, both jobs require discipline and mental and physical toughness. They both also rely on structure and a healthy respect for rules. That said, there’s also a good bit of uncertainty that comes with both lines of work. For example, when you volunteer for this life, there is often uncertainty about where you will be assigned or even what you will do; more poignantly, when you are on the job, you don’t know whether you will return home safely at the end of a shift or the end of the tour of duty. These parallels between the military and law enforcement bring me to three main points I would like to make this evening.
First, I believe those who serve in the military or in law enforcement share a set of core values that enable them to serve and protect others and preserve our American way of life. One of my favorite aspects of the job as U.S. Attorney is that I get to work side-by-side with our federal, state, and local law enforcement partners every day. I see, firsthand, how hard they work to do the right thing, to protect our communities, and to help victims of crime. And as I have said publicly, their jobs are made all the more difficult by a disturbing culture of disrespect for law enforcement in some circles in this City. This is unconscionable and despicable. But I make you this promise: as long as I’m the U.S. Attorney, I will use the full power of my Office for every minute of every day to stand with and stand up for the police and law enforcement. Because that is what you deserve.
It is the shared core values of the military and law enforcement – values like honor, courage, commitment, humility, integrity, resilience, and selflessness – that bind us together, and what makes this organization so special. You have embraced sacrifice as a way of life, not because it’s easy, but because you recognize the power and the good that comes from it. There is no greater calling than the one you have chosen in a life of service.
Second, while service to others requires personal sacrifice, the act of service also bestows great gifts to those who choose this path in life. That observation certainly holds true for me, both from my time as a Marine and my time in law enforcement. And when it comes to the Corps, I know that it has given me much more than I could ever give in return.
There is, first and foremost, the satisfaction that comes with committing yourself totally to something greater than yourself. But there are also practical, day-to-day gifts. Two that come to mind immediately are the lasting friendships and the lifelong lessons in leadership that I’ve received. I am at my happiest when I am with my Marine Corps brothers and sisters. I know that they would do anything for me, and I would do anything for them. Those friendships bring joy and meaning to my life.
And I can also say with certainty that my time in the Corps has influenced my career as a lawyer more than anything else. Whenever I come to a fork in the road and encounter a difficult decision in my civilian career, I always try to think back to what my Marine Corps commanders would expect of me – what would people like General Conway expect me to do? What can I do that is true to values that I learned in the Corps? What decision would that version of myself from long ago choose to make? In short, what would Lieutenant McSwain do?
I ask myself these questions and they give me clear answers. It isn’t always easy to do the right thing – especially in today’s complicated civilian world, with its attendant social and political pressures, the desire to be liked, the temptation to just go along to get along, and the natural human desire to do less, not more. I sometimes fail to meet the expectations of the Marine Corps. But I know what they are – and I know right from wrong. I draw strength from that. And I always will.
Which brings me to my final point. This evening’s event – a Gala to raise scholarship funds for the children of fallen military or law enforcement officers – is a microcosm of all that is good and pure about the people drawn to military and law enforcement service. We can never repay the debt that we owe to the fallen and their family members. And we cannot replace the void or take away the families’ pain. But what we can do is take care of the families and work tirelessly to make sure that the sacrifices that their loved ones made will never be forgotten. I am profoundly proud to be part of that everlasting cause.
May God bless you, and may God bless the United States of America. Thank you and Semper Fi.
Texarkana Felon Sentenced for Firearms PossessionRead the Press Release
TEXARKANA, Texas – A 31-year-old Texarkana, Texas, man has been sentenced to federal prison for firearms violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Kendall Ray Gray was found guilty by a jury on May 29, 2019, of being a felon in possession of a firearm and was sentenced to 120 months in federal prison today by U.S. District Judge Robert W. Schroeder III.
According to information presented in court, on Nov. 9, 2018, Gray’s vehicle was spotted by police as he drove to a location known for drug activity in Texarkana. Upon noticing the marked patrol car, Gray attempted to evade police by making four successive left turns and then briefly parking in a restaurant parking lot. Gray then exited the business parking lot by illegally turning directly into a center lane. Again, officers attempted to follow Gray as he improperly signaled turns and accelerated away from their marked police car. Gray drove into a residential area and parked along a public street. As police activated the lights on their car, Gray jumped out of the vehicle, locked the doors, and ran. Gray was apprehended by a police office on foot and arrested for evading detention. A search of the vehicle revealed small bags containing suspected marijuana and a loaded handgun with a chambered round was positioned under the driver’s side seat.
Further investigation revealed Gray was a convicted felon having been previously convicted of counterfeiting and forging obligations or securities of the United States in 2012 in the Eastern District of Texas and forgery in 2015 in Bowie County, Texas. As a convicted felon, Gray is prohibited from owning or possessing firearms or ammunition. Gray was indicted by a federal grand jury on Jan. 17, 2019, and charged with federal firearms violations.
This case was prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence; deterring illegal possession of guns, ammunition, and body armor; and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state, and local law enforcement agencies.
This case was investigated by the Texarkana, Texas Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorneys Colleen Bloss and Alan Jackson.
Statement of United States Attorney Thomas T. Cullen and Jesse R. Fong, Special Agent in Charge of the Drug Enforcement Administration’s Washington Field DivisionRead the Press Release
Roanoke, VIRGINIA – On Monday, September 23, 2019, agents with the Drug Enforcement Administration (DEA) arrived at a property owned by Dr. Vincent K. Jones to execute a federal arrest warrant. Upon arrival, agents found Dr. Jones unresponsive and acted promptly to administer emergency, life-saving care and additionally called for medical transport. Dr. Jones was transported to a nearby hospital. He died the next day.
Due to his death, the United States Attorney’s Office moved to dismiss the September 19, 2019 indictment that charged Dr. Jones with illegal drug distribution, which was granted today.
Springdale Man Received Maximum Possible Sentence in Federal Prison for Being A Felon in Possession of A FirearmRead the Press Release
Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Jackson Abed Rodriguez-Robles, age 36, of Springdale, Arkansas, was sentenced today to 120 months imprisonment followed by three years of supervised release and ordered to pay $2500 in fines and special assessments for one count of being a Felon in Possession of a Firearm. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in 2001, Rodriguez-Robles was convicted of a felony in the United States territory of Puerto Rico. In February 2019, officers responded to a crime in progress at Rodriguez-Robles’ apartment in Springdale. Upon entry into the apartment, Rodriguez-Robles fled out of the back of the apartment but was apprehended by officers. Inside the apartment, officers located a firearm. Rodriguez-Robles later admitted ownership of the firearm.
Rodriguez-Robles was indicted by a federal grand jury in March 2019. He entered a guilty plea in June 2019.
This case was investigated by the Springdale Police Department and the Bureau of Alcohol, Fire, Tobacco, and Explosives (ATF). Assistant United States Attorney Brandon Carter prosecuted the case for the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.
South Texas man learns fate for smuggling nearly 30 illegals in cargo trailerRead the Press Release
CORPUS CHRISTI, Texas – A 25-year-old resident of Alamo has been sentenced in Corpus Christi federal court for transporting illegal aliens within the country, announced U.S. Attorney Ryan K. Patrick.
Jose Angel Herrera pleaded guilty July 10.
Today, U.S. District Judge David S. Morales ordered him to prison for 45 months to be immediately followed by three years of supervised release. In handing down the sentence, the court noted Herrera’s criminal history and the needless and substantial risk to human life his actions caused.
On May 21, Herrera approached the primary inspection lane of the Border Patrol (BP) checkpoint near Sarita driving a Chevrolet Silverado and pulling a cargo trailer. During routine inspection, Herrera appeared nervous and would not make eye contact with authorities.
A K-9 also alerted to the trailer, indicating the possible presence of humans and /or narcotics.
In secondary inspection, law enforcement located a total of 28 undocumented aliens inside the cargo trailer, one of whom was an unaccompanied minor.
At the time of his plea, Herrera admitted that he knowingly transported the aliens in the trailer.
Immigration and Customs Enforcement’s Homeland Security Investigations and BP conducted the investigation. Assistant U.S. Attorney Joel Dunn prosecuted the case.
South Florida Jury Convicts Man Who Cybserstalked and Threatened Families of Parkland VictimsRead the Press Release
MIAMI – Today, a federal jury in South Florida convicted Brandon Michael Fleury, 22, of Santa Ana, California, of cybserstalking and sending a kidnapping threat to families of victims of a mass shooting in Parkland, Florida, announced U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office.
According to evidence introduced at trial, Fleury used thirteen different Instagram accounts, using aliases including alleged Parkland shooter Nikolas Cruz, notorious serial killer Ted Bundy, and others, to target families and friends of Parkland shooting victims with messages over the course of three weeks between Dec. 22, 2018 and Jan. 11, 2019. Many of the messages, including ones written under usernames referring to Cruz and containing Cruz’s profile picture, taunted the message recipients about the deaths of loved ones in the Parkland shooting. On Dec. 25, 2018, Fleury, sent a message stating, “I’m your abductor I’m kidnapping you fool.” On January 9, 10, and 11, 2019, Fleury continued to harass, intimidate, and threaten the message recipients from multiple Instagram accounts. These included messages sent under the username “the.douglas.shooter,” and using a profile picture of Nikolas Cruz. These messages included statements like, “With the power of my AR-15, you all die,” and “With the power of my AR-15, I take your loved ones away from you PERMANENTLY.”
After examining Fleury’s tablets, law enforcement found thousands of saved images of Ted Bundy, images of the targeted victims, and saved screenshots of the messages that he had sent the victims.
Fleury was convicted of interstate transmission of a threat to kidnap, in violation of Title 18, United States Code, Section 875(c), and interstate cyberstalking, in violation of Title 18, United States Code, Section 2261A. Fleury is scheduled to be sentenced on Dec. 2, 2019 by United States District Judge Rudolfo A. Ruiz II (Case No. 19cr60056). Fleury faces a maximum statutory sentence of 20 years in prison.
U.S. Attorney Fajardo Orshan commended the investigatory efforts of the FBI’s South Florida Violent Crime Fugitive Task Force and Broward Sheriff’s Office in this matter. U.S. Attorney Fajardo Orshan also thanked the FBI’s Los Angeles Field Office and task force members. This case is being prosecuted by Assistant U.S. Attorneys Jared M. Strauss and Ajay Alexander.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Sheboygan Man Faces Mandatory Minimum 15-Year Sentence in Federal Prison After Being Found Guilty of Methamphetamine and Firearm OffensesRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on October 8, 2019, Ey Lao (age: 34) of Sheboygan, Wisconsin, was found guilty following a jury trial in federal court in Green Bay, Wisconsin, of possession with the intent to distribute methamphetamine in violation of Title 21 United States Code, Sections 841(a) and 841(b)(1)(A). The jury also found beyond a reasonable doubt that the possession involved 50 grams or more of actual (“crystal’) methamphetamine. Lao was further convicted of being a felon in possession of a firearm.
The evidence at trial revealed that Lao and his girlfriend, Lola Yang a/k/a “Lola Chang,” slid off an Interstate 43 exit ramp into the “gore” area where their vehicle became stuck during a March 1, 2019 blizzard. A Brown County Sheriff’s lieutenant made contact with the couple and became suspicious when Lao and Yang declined his offer of assistance. Further investigation revealed that Lau and Yang were in possession of 73.01 grams of actual (“crystal”) methamphetamine, a digital scale, and drug paraphernalia located inside a locked safe. Following the couple’s arrest, the vehicle was more closely searched and a loaded 9mm Kel-Tec firearm was located in the glove box.
Yang previously entered a guilty plea in the case.
Lao was convicted in 2015 on state charges of possessing methamphetamine with the intent to distribute for which he was sentenced to a five-year term of imprisonment. Based on his prior felony drug conviction and the jury’s determination, Lao faces a mandatory fifteen-year term in federal prison and up to a lifetime of imprisonment when he is sentenced by Chief Federal Judge William C. Griesbach in January 2020. He remains incarcerated pending that hearing.
The case was investigated by the Brown County Sheriff’s Office with the assistance of the U.S. Drug Enforcement Administration and the Wisconsin Department of Justice, Division of Criminal Investigation. It is being prosecuted by Assistant United States Attorneys Rebecca L. Taibleson and Daniel R. Humble.
Seven Indicted in Connection with Gas Station Skimming SchemeRead the Press Release
ALBANY, NEW YORK – Seven people have been indicted for a scheme in which they stole and used credit and debit card numbers of gas station customers in Albany, Broome and Montgomery Counties.
The announcement was made by United States Attorney Grant C. Jaquith; James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Inspector in Charge Joseph Cronin, Boston Division, United States Postal Inspection Service (USPIS).
The three defendants arrested to date are:
- Joan Jesus Manso Dieguez, age 33, of Miami, Florida, charged with conspiracy to commit access device fraud and money laundering;
- Atnetys Ferreira, age 40, of Miami, charged with conspiracy to commit money laundering; and
- Hugo Hernandez, age 32, of Miami Lakes, Florida, charged with conspiracy to commit access device fraud and money laundering.
The charges in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
According to the indictment, from April 2016 through approximately December 2018, defendants conspired to build and install gas station skimming devices and install those devices inside gas pumps in Albany, Broome, and Montgomery Counties, so that they could steal credit and debit card data of gas station customers who used the “pay at the pump” function to purchase gasoline.
The defendants then used that data to create fraudulent debit and credit cards, which they or co-conspirators used to obtain money orders, gift cards, cash, and other merchandise. The indictment also alleges that five of the defendants conspired to engage in financial transactions with money orders and gift cards obtained through the scheme that were designed to conceal the source of the stolen funds, and obtain cash or transfer the value of the gift cards, using gift card exchange websites, to bank accounts controlled by the members of the conspiracy.
If convicted, Dieguez, Ferreira, and Hernandez each face up to 20 years in prison, and a fine of up to $500,000 or twice the value of the property involved in the money laundering conspiracy. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the FBI and USPIS, and is being prosecuted by Assistant U.S. Attorneys Rick Belliss and Emily C. Powers.
Rochester Man Pleads Guilty to Fraud, Conspiracy, and Money Laundering in Rochester Federal Court; Charged in Federal Court in Pennsylvania as A Result of His Role in Masterminding A Nationwide Multi-Million Dollar Ponzi SchemeRead the Press Release
ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr., of the Western District of New York, together with David J. Freed, U.S. Attorney for the Middle District of Pennsylvania, announced today that Perry Santillo, 39, of Rochester, NY, pleaded guilty, before Chief U.S. District Judge Frank P. Geraci, Jr. for the Western District of New York, to conspiracy to commit mail fraud, mail fraud, and conspiracy to launder money. The charges carry a maximum penalty of 20 years in prison and a $1,000,000 fine. As part of his plea in the Western District of New York, Santillo has also agreed to plead guilty to a mail fraud charge, which is also relating to his Ponzi scheme activities, that is currently pending against him in the Middle District of Pennsylvania. That charge carries a maximum penalty of 20 years and a $500,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case in the Western District of New York, and Assistant U.S. Attorney Sean A. Camoni, who is handling the case in the Middle District of Pennsylvania, stated that between January 2008 and June 2018, the defendant conspired with an individual identified as C.P., and others, to obtain money through an investment fraud commonly known as a Ponzi scheme. Specifically, in 2007, Santillo and C.P., as equal partners, formed a business known as Lucian Development in Rochester. Prior to approximately July 2007, Lucian Development raised millions of dollars from investors in Rochester, and elsewhere, by soliciting investments for City Capital Corporation, a business operated by Ephren Taylor. In July 2007, Santillo and C.P. were advised by Ephren Taylor that their investors’ money had been lost. In response, in August 2007, Santillo and C.P. agreed to acquire the assets and debts of City Capital Corporation. The acquisition proved financially ruinous, with the amount of the acquired debt far exceeding the value of the acquired assets. Taylor was later prosecuted and convicted of operating a Ponzi scheme.
Subsequently, Santillo and C.P. chose not to disclose the truth to investors that their money, entrusted to Lucian Development for investment in City Capital Corporation, was gone. Instead, the defendant and C.P. continued to solicit ever-increasing amounts of money from new investors in an unsuccessful attempt to recoup the losses. In order to find potential investors to solicit and defraud, Santillo and C.P. purchased businesses from established investment advisors or brokers who were looking to exit their businesses. Between approximately 2008 and September 2017, Santillo and C.P., using money obtained from prior investors, purchased the businesses of at least 15 investment advisors or brokers, located in Tennessee, Ohio, Minnesota, Nevada, California (5 businesses), Florida, South Carolina (2 businesses), Texas, Pennsylvania, Maryland, and Indiana.
The investment offerings pitched by Santillo and C.P. consisted principally of unsecured promissory notes and preferred stock issued by various entities controlled by Santillo and C.P. Potential investors were offered an apparent array of investment options to create the illusion of a diversified investment portfolio. Those investment options included products issued by purported issuers such as First Nationle Solutions (FNS), Percipience Global Corporation, United RL Capital Services, Boyles America, Middlebury Development Corporation, and NexMedical Solutions, among others. None of these issuers had substantial bona fide business operations or used investor money in the manner and for the purposes represented to investors. To the extent that an issuer may have had some minor legitimate business activities, it was not profitable and insufficient revenues were generated to pay investors any returns (let alone return the principal amounts of their investments). Santillo, and others, sold fraudulent investments from these issuers to investors who were told that the money received would be used to conduct the purported business of each respective issuer. In fact, however, such issuers were the defendant’s various Ponzi schemes. Santillo, and others working with him, fraudulently induced investors to invest at least $46,000,000 in the First Nationle offering since February 2012, $22,000,000 in the Percipience offering since July 2012, and $25,000,000 in the United RL offering since March 2015.
Over the years, to keep the Ponzi scheme from being detected, a substantial portion of incoming new investor monies were depleted by making promised interest and other payments to earlier investors. Most of the rest of incoming investor money was used by Santillo, C.P. and other co-conspirators: to finance lavish lifestyles of the conspirators, their families and associates; to expand the scheme by purchasing investment advisor/brokerage businesses to obtain access to fresh investors; and to pay operating expenses – salaries for a sales force and administrative staff, office rents and related expenses, housing for employees, and interest on loans—all of which were used to keep the scheme going and maintain a façade of legitimate business operations.
Very little investor money was deployed in productive investments, and when so deployed, the investments yielded meager income and were not profitable, or failed altogether. The Ponzi scheme was headquartered and based out of locations in Rochester, with a number of satellite offices around the country. Administrative and banking functions were largely performed out of Rochester. The conspiracy employed a variety of sales people, including Santillo and C.P., who traveled around the country to meet with and solicit new investors. In the Middle District of Pennsylvania, Santillo, and others, conducted their fraud scheme under the guise of an investment business located in Scotrun, Monroe County, using various business names, including Advice and Life Group, Poconos Investments, First American Securities, and Financial Planners Group of America.
Between January 2012 and June 19, 2018, Santillo and C.P. obtained at least $115.5 million from approximately 1000 investors. By the time the scheme collapsed in late-2017/early 2018, Santillo and C.P., doing business through an array of corporate entities, had returned approximately $44.8 million to investors as part of their scheme, but continued to owe investors approximately $70.7 million in principal.
Among the Rochester/Pennsylvania victims area victims of the Ponzi scheme were the following:
- A resident of Webster, NY with a total asset value of $94,341.89 with a fictitious company known as First Nationle Solutions (FNS), which, as of December 31, 2017, was worthless or close to worthless, and
- A resident of Victor, NY and his wife invested approximately $221,758.67 with FNS and Middlebury Development. The couple received three payments of $2500 but lost approximately $214,258.67.
- Since May 2015, Santillo and others fraudulently raised at least $3,000,000 from approximately 30 investors in Pennsylvania, including the MDPA.
Santillo and C.P. controlled hundreds of different business bank accounts opened under numerous different business names at various financial institutions, including but not limited to Bank of America, Citizens Bank, Genesee Regional Bank and ESL Federal Credit Union. Santillo and C.P. directed and authorized the transactions that occurred in the accounts, including deposits, withdrawals, check writing and funds transfers. The various bank accounts were used to transfer money from one account to another. Incoming investor money was routinely transferred through several accounts before the funds were finally spent on whatever purpose Santillo and/or C.P. authorized. By moving investors funds through various accounts in various entity names, Santillo and C.P. were able to, conceal and obscure the fact that new investor money was being used to repay earlier investors, finance the operations of the Ponzi scheme, and fund their lifestyles.
“Today’s announcement reaffirms the shared commitment that United States Attorney’s Office’s across the country have to discovering those who hide behind deceptive fraud schemes in an effort to bilk investors out of their hard earned money and savings,” noted U.S. Attorney Kennedy. “This investigation and these pleas should make clear to fraudsters everywhere that you cannot hide and that we will work together across jurisdictions to find you and to bring you to justice.”
“As he did in districts throughout the country, Perry Santillo came to the Middle District of Pennsylvania and purchased a business from a trusted investment advisor for the sole purpose of finding new victims to exploit,” said U.S. Attorney Freed. “This massive nationwide fraud was committed for one simple reason – to enrich Santillo and his confederates. This was a scam from day one, and Santillo and the others knew it. Thankfully, federal law enforcement was on the case. I want to particularly thank my friend and colleague U.S. Attorney J.P. Kennedy and his team for their hard work on this case and commend all of the federal agencies involved for their industry and cooperative efforts.”
“The United States Postal Inspection Service is committed to protecting consumers from falling victim to fraud, including illegitimate investment schemes,” stated Postal Inspector-in-Charge Joseph W. Cronin. “Along with our law enforcement counterparts, Postal Inspectors will always pursue individuals who utilize the US Mail to steal the hard earned money of our customers through false and misleading representations."
“Greed fueled Perry Santillo’s crimes and became the common thread throughout this investigation,” said Gary Loeffert, Special Agent-in-charge of the FBI Buffalo Office. “Everyone touched by his greed will forever feel the painful consequences. Santillo’s plea serves as a teachable moment for those criminals who believe they can stay ahead of their Ponzi schemes.”
“Defendants like Perry Santillo lure innocent investors by taking full advantage of their trust and hopes for a better financial future,” said Michael T. Harpster, Special Agent- in-Charge of the FBI’s Philadelphia Division. “As victims envision their nest eggs growing, these scammers are diverting, even pocketing, that hard-earned money. The FBI and our law enforcement partners will continue to bring such financial fraud to light, and its perpetrators to justice.”
IRS-CI Special Agent in Charge Jonathan D. Larsen said, “Tracing the complex flow of money between hundreds of bank accounts is vital in unraveling a Ponzi scheme such as the one perpetrated by Mr. Santillo, and we are proud of the excellence displayed by our team. The collaboration and partnership of our skilled financial investigators and prosecutors provides a formidable adversary in the fight for victims as seen in this case.”
“Perry Santillo, Jr., conspired with his co-defendants by engaging in a Ponzi scheme that swindled unwitting investors out of tens of millions of dollars in retirement savings. The investors liquidated their retirement accounts to invest with companies Santillo and his-co-conspirators operated. We will continue to work with our law enforcement partners to protect the integrity of employee benefit plans,” said Michael C. Mikulka, Special Agent-in-Charge, New York Region, U.S. Department of Labor Office of Inspector General.
“The alleged acts by the perpetrator endangered the financial security of hard-working, innocent New Yorkers and their families,” said Superintendent of Financial Services Linda A. Lacewell. “Anyone who commits insurance fraud by definition is acting against the interest of consumers. I commend the investigative work by DFS in coordination with fellow law enforcement agencies for apprehending the suspect.”
The plea is the result of an investigation by the United States Postal Inspection Service, under the direction of Inspector-in-Charge Joseph W. Cronin of the Boston Division; the Federal Bureau of Investigation, Buffalo Division, under the direction of Special Agent-in-Charge Gary Loeffert, and FBI Scranton Division; the Internal Revenue Service, Criminal Investigation Division, under the direction of Jonathan D. Larsen, Special Agent-in-Charge; the U.S. Department of Labor, Office of Inspector General, Office of Investigations – Labor Racketeering and Fraud, under the direction of Michael C. Mikulka, Special Agent-in-Charge, New York Region, the New York State Department of Financial Services, under the direction of Superintendent Linda A. Lacewell; and the Securities and Exchange Commission.
Sentencing in the Western District of New York is scheduled for March 6, 2020, before Chief Judge Geraci. The arraignment date in the Middle District of Pennsylvania has not yet been set.
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Rochester Man Going to Prison for 10 Years on Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Christopher Johnson, 47, of Rochester, NY, who was convicted of receipt of child pornography, was sentenced to serve 121 months in prison and 15 years supervised release by U.S. District Judge Charles J. Siragusa. The defendant was also ordered to pay $3,000 in restitution to victims.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that Johnson was arrested in June 2018, after distributing child pornography to an undercover FBI Agent via the Internet. That arrest prompted law enforcement officers to execute a search warrant at the defendant’s residence in Rochester. Investigators seized Johnson’s computers which contained approximately 52,372 images and 316 videos of child pornography. Some the videos and images depicted the sexual abuse of infants and toddlers.
The sentencing is the result of an investigation by members the FBI's Child Exploitation Task Force, under the direction of Special Agent-in-Charge Gary Loeffert.
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Over 300 firearms seized and firearms dealer closed downRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today that approximately 390 firearms, silencers and receivers were seized from Federal Firearms Licensee (FFL), G2FS LLC (G2 Sports Products/G2 Firearms Sales) on Tuesday, October 8, 2019. Months of investigation into the FFL, located at 8255 Indy Court in Indianapolis, revealed numerous regulatory and statutory violations of federal law. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) found evidence that the FFL knowingly transferred handguns to an out-of-state resident, made false entries in records, failed to report multiple sales of handguns and knowingly transferred firearms to a prohibited person.
The FFL agreed to an enhanced surrender of its federal license. As a result, none of the owners will be eligible to reapply for their license or engage any further in the business of dealing in firearms. The owners also agreed to the seizure of approximately 390 firearms, silencers and receivers including rifles, shotguns and handguns with a total estimated value of $224,000.00.
This seizure follows an Indictment against Scott Genung for being a Prohibited Person in Possession of a Firearm. The investigation revealed that law enforcement made several undercover purchases of firearms at G2 Sports from Genung, a convicted felon, who personally processed the sales. Scott Genung was observed carrying a firearm on his person during those transactions. Genung, who indicated he was responsible for much of the store operations at G2 Sports, also placed an order from a distributor for a firearm, despite the fact he was prohibited by law from doing so.
“This prosecution, firearms seizure, and license surrender represent our commitment to reducing violent crime in the Southern District of Indiana by keeping firearms out of the hands of individuals who have no legal right to possess firearms,” said Minkler.
This investigation was conducted by a team of Special Agents, Auditors and Industry Operations Investigators with the ATF. The ATF was assisted by officers and investigators by with Indianapolis Metropolitan Police Department, Fishers Police Department, Zionsville Police Department and the Marion County Sheriff’s Department.
ATF Special Agent in Charge Jonathan McPherson believes the dual missions of the ATF, criminal and regulatory enforcement, were tantamount to the successful outcome of this investigation. McPherson stated that “ATF is committed to investigating FFLs who operate outside the law and regulations they are responsible to uphold. This FFL will never again have to ability to place firearms in the hands of prohibited persons.”
“Working closely with our local, state, and federal law enforcement partners, we continue to hold accountable not only those who commit violent gun crimes, but also those who illegally provide the guns used in crimes,” said IMPD Chief Bryan Roach. “Removing crime guns from our neighborhoods is critical to our efforts to make Indianapolis a safer place.”
An Indictment is merely a charge and not evidence of guilt. All defendants are presumed innocent until proven otherwise in federal court. If convicted of the charge in the indictment, Scott Genung faces a maximum of 10 years in prison and a $250,000 fine.
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 utilize and partner with law enforcement agencies to protect the community from gun violence. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 2.9.
Orange County Woman Admits to Embezzling Social Security Benefits Intended for Disabled and Elderly PeopleRead the Press Release
LOS ANGELES – A former Social Security Administration (SSA) employee pleaded guilty today to a federal criminal charge for stealing more than $176,000 in Social Security benefits designated for elderly and disabled beneficiaries.
Rowena Isabel Lokeni, 36, of Garden Grove, pleaded guilty today to one count of wire fraud. Lokeni was hired as an SSA service representative in 2008 and worked in the administration’s field office in Fountain Valley. She resigned from SSA shortly after her September 6 arrest on a federal grand jury indictment in this matter.
From her work cubicle, between April 2017 and August 2019, Lokeni accessed the SSA computer databases and queried the records of 10 Social Security beneficiaries, according to her plea agreement. Once she accessed the victims’ records, Lokeni fraudulently changed each victim’s direct deposit bank account and routing numbers to instead reflect her personal bank account’s routing and account numbers, the plea agreement states.
Of the 10 victims whose Social Security benefits were affected by Lokeni’s fraud, eight victims were supposed to be receiving disabled adult children benefits because they were unmarried adults who had a disability that began prior to their 22nd birthday, court documents state. The ninth victim was supposed to be receiving disability insurance benefits, while the tenth victim was supposed to be receiving retirement insurance benefits, according to the plea agreement.
Lokeni admitted to fraudulently obtaining a total of approximately $176,015 in Social Security payments.
United States District Judge John F. Walter has scheduled a January 6, 2020 sentencing hearing, at which time Lokeni will face a statutory maximum sentence of 20 years in federal prison.
This matter was investigated by the Social Security Administration – Office of the Inspector General.
This case is being prosecuted by Special Assistant United States Attorney David H. Chao of the General Crimes Section.
Ohio Man Sentenced to 5 Years in Federal Prison for Distributing Child PornographyRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ROBERT DUDUKOVICH, 25, of Wakeman, Ohio, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 60 months of imprisonment, followed by seven years of supervised release, for distributing child pornography.
According to court documents and statements made in court, between July and October 2017, Dudukovich managed a chat group on “Kik,” a smartphone messaging application, that provided a forum for group members to communicate about their sexual interest in young boys and to share and trade child pornography primarily depicting young boys engaged in sexually explicit conduct. Dudukovich shared with the group members, including an individual in Connecticut, images and videos of child pornography. The child pornography included videos of a minor engaged in sexual acts with another minor, and a video of a minor engaged in a sexual act with an adult. Dudukovich also shared with the group members a link to his Dropbox account, which contained additional images and videos of minors engaged in sexually explicit conduct.
The investigation revealed that Dudukovich also used his Tumblr account to access and view child pornography.
Dudukovich was arrested on September 5, 2018. Subsequent analysis of Dudukovich’s laptop and cellphone, which were seized at the time of his arrest, revealed additional videos of child pornography.
Dudukovich has been detained since his arrest. On July 17, 2019, he pleaded guilty to one count of distribution of child pornography.
This matter was being investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). The case was prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Norwich Man Sentenced to More Than 6 Years in Federal Prison for Trafficking Cocaine and CrackRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that HAROLD BUTLER, also known as “Haas,” 42, of Norwich, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 77 months of imprisonment, followed by four years of supervised release, for distributing cocaine and crack.
According to court documents and statements made in court, in 2018, the FBI, Norwich Police Department and other law enforcement agencies began investigating a drug trafficking organization that was distributing heroin, cocaine and crack cocaine in southeastern Connecticut. The investigation, which included court-authorized wiretaps and six controlled purchases of crack from Butler, revealed that Butler and others were distributing narcotics to drug users and other street-level dealers in southeastern Connecticut. Butler also used his Norwich business, Hat Boyz, to store and distribute narcotics.
Butler has been detained since his arrest on February 25, 2019. On March 5, a grand jury returned an indictment charging Butler and 12 other individuals with narcotics trafficking offenses. On June 24, Butler pleaded guilty to one count of conspiracy to distribute cocaine and 28 grams or more of cocaine base (“crack”).
Butler’s criminal history spans more than 20 years and includes 19 convictions.
This investigation is being conducted by the Federal Bureau of Investigation, Connecticut State Police and Norwich, Town of Groton and Waterford Police Departments, with the assistance of the FBI’s Baltimore Field Office, Baltimore Police Department and Delaware State Police. The case is being prosecuted by Assistant U.S. Attorneys Natasha M. Freismuth and S. Dave Vatti.
North Carolina Licensed Attorney Sentenced for Harboring AlienRead the Press Release
NEW BERN – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that SARAH JANE BRINSON, age 34, of Clinton, North Carolina, was sentenced yesterday by United States District Judge Louise W. Flanagan to three months in the custody of the Bureau of Prisons followed by three years of supervised release, for the crime of harboring an alien.
On June 4, 2019, BRINSON pleaded guilty to a criminal information charging that she encouraged and induced an alien to reside in the United States, knowing and in reckless disregard of the fact that such residence in the United States was in violation of the law. Pursuant to the terms of the plea agreement leading to BRINSON’s guilty plea, BRINSON surrendered her law license to the North Carolina State Bar and forfeited $5,000.
According to Court records, Homeland Security Investigations initiated an inquiry into BRINSON, a licensed attorney and notary public in North Carolina, based upon her representation of an alien in North Carolina state court. The representation included appearing before a North Carolina district court judge to enter a prayer for judgment continued on behalf of an alien while knowing the alien was assuming the identity of a United States citizen. In the meantime, BRINSON represented the same alien in immigration proceedings under the alien’s real name without disclosing the alien’s use of another name. Further, BRINSON notarized the alien’s signature under the assumed name in connection with North Carolina state court proceedings, while knowing that was not the alien’s true name.
Additionally, the investigation revealed that from December 2011 to August 31, 2014, BRINSON hired an illegal alien to work at her law firm knowing the employee was unlawfully present in the United States.
United States Attorney Higdon commented, “Misconduct by a member of the Bar – and officer of the Court – is particularly troubling and poses a grave threat to the administration of our civil and criminal justice systems. The prosecution of this defendant, an attorney, is critical if we are to maintain the integrity of our legal system. And, here, the prosecution itself, even more than the actual sentence, sends a message throughout the legal system that we expect lawyers to be honest and reliable or face the consequences of their misconduct.”
“This attorney had no regard for our nation’s laws. She blatantly hired and harbored at least one alien illegally present in the United States and knowingly represented an alien in state court proceedings who was using a United States citizen's identity,” said Ronnie Martinez, Special Agent in Charge of HSI Charlotte. “HSI’s investigative work through the Document and Benefit Fraud Task Force ensured this attorney can no longer practice law in North Carolina.”
The Document Benefit Fraud Task Force (DBFTF) in the Eastern District of North Carolina investigated this case. The DBFTF is led by Homeland Security Investigations, in partnership with United States Citizenship and Immigration Services and various other federal, state and local law enforcement agencies. More Here.
Nine Defendants Charged in Federal Court with Drug Trafficking and Firearms Possession after Seizure of 58 Pounds of MethRead the Press Release
United States Attorney Matthew D. Krueger has announced federal charges related to a significant drug enforcement investigation undertaken by federal, state, and local agencies in Green Bay and surrounding communities, including a seizure of approximately 58 pounds of methamphetamine last month. On October 8, 2019, a federal grand jury returned a six-count indictment charging nine defendants with conspiracy to distribute heroin, methamphetamine, and marijuana. Additionally, the indictment charges some defendants with possession of firearms in furtherance of drug trafficking.
The defendants charged in the indictment are:
Name
Age
Charge
Derek A. Liebergen
26
Conspiracy to Distribute Controlled Substances; Possession with intent to Distribute Cocaine; Possession of a Firearm in Furtherance of a Drug Crime
Malachi J. Root
29
Conspiracy to Distribute Controlled Substances; Possession with intent to Distribute Cocaine; Possession of a Firearm in Furtherance of a Drug Crime
Wayne L. Stilen
39
Conspiracy to Distribute Controlled Substances; Possession of a Firearm in Furtherance of a Drug Crime
Sally A. Miller
35
Conspiracy to Distribute Controlled Substances
Jeremy M. Ludwig
32
Conspiracy to Distribute Controlled Substances
Kayla R. Kennedy
39
Conspiracy to Distribute Controlled Substances
Jasmine L. Gillette
24
Conspiracy to Distribute Controlled Substances
Christopher S. Ullmer
22
Conspiracy to Distribute Controlled Substances
Peter F. Thao
23
Conspiracy to Distribute Controlled Substances
According to a criminal complaint filed in the case on September 17, 2019, and detention hearing held October 9, 2019, law enforcement executed multiple search warrants in September 2019, including one at a hotel in Outagamie County resulting in the seizure of approximately 58 pounds of methamphetamine, one kilogram of a white powder later determined to be tramadol, 57 grams of cocaine, 32 marijuana vaping cartridges, marijuana edibles, $39,215 in U.S. currency. Derek Liebergen rented the hotel room and was arrested in the vicinity of the room. When arrested, Liebergen possessed a handgun in the waistband of his pants. Law enforcement indicates that the street value of 58 pounds of methamphetamine is $500,000-$750,000 after it is divided for further delivery.
Furthermore on September 9, 2019, Brown County Drug Task Force investigators arrested Malachi Root in Green Bay. On the driver’s seat of Root’s car, law enforcement seized a loaded Ruger 9 mm handgun. A variety of drugs were located in several bags and suitcases including 930 grams hash oil, 463 grams marijuana, 68 grams MDMA, 23 grams of methamphetamine, 8 grams of cocaine, a money counter, marijuana edibles (cookies and gummies) and approximately $25,728.
United States Attorney Krueger stated: “Meth is highly addictive and destroys lives. That is why law enforcement partners at all levels—federal, state, and local—are working together to bring federal charges against drug traffickers to the fullest extent of the law. The enormous quantity of meth seized in connection with this case underscores both the real danger posed by meth and our resolve to combat it. I commend the extraordinary investigative efforts that made these charges possible.”
The national methamphetamine problem is a growing concern here in the state of Wisconsin, as evidenced by this large seizure of methamphetamine and the indictments of six individuals. The U.S. Drug Enforcement Administration (DEA) works daily with our local, state and federal law enforcement partners in an attempt to stem the flow of methamphetamine into Wisconsin, as well as, hold drug dealers accountable for their disregard for human life and public safety,” said Paul E. Maxwell, Jr., Assistant Special Agent in Charge, DEA’s Milwaukee District Office.
If convicted of the conspiracy to distribute controlled substances, the defendants face a minimum term of ten years, up to life in prison. Convictions on the firearms counts would expose the defendants to additional terms of incarceration.
An indictment is only a charge and is not evidence of guilt. Defendants are presumed innocent and are entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
The investigation was led by the following law enforcement groups: Brown County Drug Task Force, Lake Winnebago Area Metropolitan Drug Unit, Green Bay Police Department, Brown County Sheriff’s Office, Brown County District Attorney’s Office, Outagamie County District Attorney’s Office, Wisconsin Department of Justice-Division of Criminal Investigation, U.S. Drug Enforcement Administration, Oconto County Sheriff Department, and Oconto Falls Police Department. The case is being prosecuted by Assistant United States Attorney William Roach.
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Natick Man Pleads Guilty to Child PornographyRead the Press Release
BOSTON – A Natick man pleaded guilty yesterday in federal court in Boston to possessing child pornography.
Joshua Bemis, 28, pleaded guilty to one count of possession of child pornography and one count of receipt of child pornography. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Jan. 8, 2020. Bemis was arrested and charged in November 2018.
Federal authorities received information from law enforcement in the United Kingdom about an individual whose IP address was traced to Bemis’ Natick residence, who had posted child pornography on a photo sharing website. Law enforcement subsequently executed a search warrant where they seized a laptop computer and separate hard drive, both of which contained numerous videos of children, including some that depict the rape of children as young as seven-years-old.
Bemis faces a mandatory minimum sentence of five years and up to 40 years in prison, a minimum of five years and up to a lifetime of supervised release and a $250,000 fine. 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; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Natick Police Chief James G. Hicks made the announcement today. Assistant U.S. Attorney David G. Tobin is prosecuting the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Minnesota Man Sentenced to 20 Years on Attempted Enticement and Child Pornography ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Jordan, Minnesota, man convicted of Attempted Enticement of a Minor Using the Internet and Receipt of Child Pornography was sentenced on October 2, 2019, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Rodney Allen Buetow, age 36, was sentenced to 20 years in federal prison, followed by 10 years of supervised release, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund.
The conviction stemmed from Buetow communicating with someone he believed to be a 14-year-old girl for the purpose of engaging in sexual acts. Buetow drove from Minnesota to Rapid City to meet the 14-year-old and was arrested at a pre-arranged meeting location. Buetow was also found to possess child pornography videos and images on his cellular phone.
The investigation was conducted by the Internet Crimes Against Children Taskforce. Assistant U.S. Attorney Sarah Collins prosecuted the case.
Buetow was immediately remanded to the custody of the U.S. Marshals Service.
Methuen Man Sentenced for Possession of a Firearm and AmmunitionRead the Press Release
BOSTON – A Methuen man has was sentenced today in federal court in Boston for illegal possession of a firearm and ammunition.
Michael O’Neil, 38, was sentenced by U.S. District Court Judge Douglas P. Woodlock to one year and a day in prison and three years of supervised release. In June 2019, O’Neil pleaded guilty to one count of being a felon in possession of a firearm and ammunition after being arrested on Dec. 1, 2018 in Andover, when police seized a loaded .380 caliber pistol from him. O’Neil is prohibited from possessing a firearm due to a prior conviction of a crime punishable by more than one year in prison.
United States Attorney Andrew E. Lelling; Essex County District Attorney Jonathan W. Blodgett; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police made the announcement today. Assistant U.S. Attorney Evan Panich of Lelling’s Office 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. PSN is 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.