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9 October 2019
Memphis Man Sentenced for Conspiracy to Distribute Heroin Resulting in Fatal OverdoseRead the Press Release
Memphis, TN – David Mitchell Murray, 39, of Memphis has been sentenced to 188 months in federal prison for conspiracy to distribute heroin resulting in death. Also indicted as a co-defendant in this case was Glenda Aldape, 48, of Cordova. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee announced the sentence today.
According to information presented in court, on the evening of March 28, 2016, the victim Sean Heywood agreed over the phone to buy half a gram of heroin from Aldape for $75. Aldape texted Sean that she was sending "Mitch" (later identified as 39-year-old David Mitchell Murray) to deliver the heroin. Sean lived with his father, mother and grandmother at the time.
At 10 p.m., Sean told his father he was going to a nearby Huey’s location to have a beer. Surveillance tape showed Sean entering the bar area of the restaurant a few minutes after 10 p.m. and having one beer. During this period, he spoke on the phone with Mitch at least twice. The tape then shows him leaving the restaurant. After a few minutes, he left the bar and got into a car with Mitch, who then sold the heroin to Sean. Mitch then drove Sean home.
At approximately 12:30 p.m., Sean’s father found Sean unresponsive on the bathroom floor. Memphis emergency personnel arrived at the house and pronounced Sean dead at 1:02 a.m. Law enforcement responded and tagged all of the items as evidence – a plastic bag of heroin in his pocket, syringe, spoon and 0.19 grams of heroin, and Sean’s cell phone. The autopsy results concluded the cause of Sean’s death was a lethal dose of heroin.
U.S. Attorney D. Michael Dunavant said, "Under our district-specific opioid strategy, heroin distribution cases resulting in death receive top priority for investigation and federal prosecution, regardless of quantity of heroin involved or the prior criminal record of the offender. Our Heroin Initiative also provides time-sensitive case coordination between law enforcement agencies and medical examiners, to ensure that opioid overdose death cases are investigated quickly and thoroughly to identify the nature and source of the drug distribution. Finally, the U.S. Attorney’s Office will aggressively prosecute and seek the maximum guidelines sentences in these cases in order to disrupt trafficking organizations, hold the distributor accountable for the death of the victim, and to deter others from selling poison to our citizens."
On October 4, 2019, U.S. District Court Judge John T. Fowlkes Jr. sentenced Murray to 188 months in federal prison followed by 3 years supervised release. Judge Fowlkes Jr. sentenced Glenda Aldape, to 240 months imprisonment followed by 3 years supervised release on May 14, 2019.
This case was investigated the Drug Enforcement Administration and the Memphis Police Department Organized Crime Unit (OCU).
Assistant U.S. Attorney J. William Crow prosecuted this case on behalf of the government.
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Mattoon Man Charged with Transportation, Possession of Child PornographyRead the Press Release
URBANA, Ill. – An initial trial date of Dec. 9, 2019, has been scheduled for a Mattoon, Ill., man, Tyler L. Foote, 28, indicted on federal child pornography charges on Oct. 1. The indictment had remained sealed pending Foote’s arraignment today in federal court in Urbana. Foote, of the 1300 block of Champaign Ave, in Mattoon, was arrested on Aug. 16, on Coles County state charges.
The indictment alleges that on four occasions between March 2017 and January 2019, Foote used a computer to transmit sexually explicit images of minors, and that at the time of his arrest, on Aug. 16, 2019, Foote possessed child pornography.
If convicted, the statutory maximum penalty for each count of transportation of child pornography (four counts) is 20 years in prison; for possession of child pornography, the maximum penalty is 10 years in prison. Each of the five counts carries a potential fine of up to $250,000.
During today’s court appearance, U.S. Magistrate Judge Eric I. Long ordered that Foote remain in the custody of the U.S. Marshals Service.
The case is being prosecuted by Assistant U.S. Attorney Elly M. Peirson and Special Assistant U.S. Attorney Shannon O’Brien. The charges are the result of an investigation by the Illinois Attorney General’s Office Internet Crimes Against Children Task Force and the Mattoon Police Department.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Man who Attempted to Rob a South Side Bank in a Wheelchair is IndictedRead the Press Release
PITTSBURGH, PA – A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of attempted bank robbery, United States Attorney Scott W. Brady announced today.
The one-count Indictment, returned on October 8, named Emanuel Luna, 54, as the sole defendant. According to the Indictment and criminal complaint, Luna, while in wheelchair, attempted to rob the First National Bank, located at 1114 East Carson Street, Pittsburgh, PA, on August 13, 2019. Upon entering the bank, Luna approached the teller counter and handed the teller a note that stated he had a bomb and "will press the button and kill us all for no less than $50,000." Luna left the bank prior to receiving money from the teller. Surveillance video following the attempted robbery shows Luna using a cane to walk.
The law provides for a maximum total sentence of 20 years in prison, a fine of not more than $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Luna has been detained pending the resolution of the case.
Assistant United States Attorneys Rebecca L. Silinski and Haley Warden-Rodgers are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Pittsburgh Bureau of Police, and the O’Hara Township Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Man Who Assaulted 88-Year-Old Woman Charged via Criminal ComplaintRead the Press Release
The man who allegedly assaulted an 88-year-old woman inside her Dallas home yesterday has been charged via criminal complaint with carjacking and possession of a stolen firearm, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Kristopher Charles Martin Brown, 19, allegedly broke into the victim’s home on Cliffmere Drive around 2:30 a.m. on Oct. 8, likely through her back door, according to the federal complaint.
He punched her in the face, then brutally sexually assaulted her, the complaint alleges.
After the assault, he allegedly dug through her closet and purse, taking money, the keys to a 2007 Lexus RX, and a Remington shotgun. He then allegedly tied the victim to her chair, disabled her telephones, and told her she would find her vehicle at an address on East Overton Road in five days. He fled the scene in her Lexus.
A few hours later, Dallas Police Officers observed Mr. Brown filling up the Lexus’ tank at a local 7-Eleven, with the stolen shotgun in plain view in the rear of the vehicle. When he was apprehended, Mr. Brown was allegedly wearing Nike shoes that matched footprints found in the victim’s backyard.
After being read his Miranda rights, Mr. Brown told officers he’d purchased the Lexus for $900 at a complex at East Overton Road. He claimed he’d purchased the shotgun there too. While undergoing processing by DPD’s Crime Scene Response team, Mr. Brown asked officers if anyone had died, noting that “the old woman got up.”
A criminal complaint is merely an allegation of wrongdoing, not evidence. Like all defendants, Mr. Brown is presumed innocent unless and until proven guilty in a court of law.
If convicted, he faces up to 35 years in federal prison.
The Bureau of Alcohol, Tobacco, Firearms & Explosives and the Dallas Police Department conducted the investigation. Assistant U.S. Attorney P.J. Meitl is prosecuting the case.
Man Sentenced to 30 Months for Conspiracy to Commit Access Device FraudRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, United States District Judge James C. Dever III sentenced KAYODE FADAMORO, formerly of Raleigh, NC, to 30 months imprisonment, followed by 3 years of supervised release and ordered him to pay $35,466.93 in restitution to the defrauded credit issuers.
fadamoro was named in an eight-count Superseding Indictment on February 6, 2019, charging him with conspiracy to commit access device fraud; using unauthorized access devices; and, multiple counts of misuse of a social security number. On June 4, 2019, FADAMORO pled guilty to the conspiracy to commit, pursuant to a plea agreement.
As set forth in the charging document, FADAMORO conspired with others to obtain credit with the use of synthetic identities. FADAMORO’s name and actual date of birth were combined with a social security number not issued to him by the Social Security Administration in order to create a new credit profile, commonly referred to as a CPN. To enhance a CPNs’ credit worthiness, these new profiles are added to other individuals’ credit accounts with positive credit history.
In 2015 and 2016, two CPNs in FADAMORO’s name were used to obtain credit and purchase merchandise in various retail stores, in Raleigh, NC. On July 27, 2016, he was arrested by the Fuquay-Varina Police Department when he attempted to purchase approximately $8,723 in commercial grade equipment. He had submitted an online John Deere credit application using a CPN. According to the Superseding Indictment, persons utilizing CPNs, make purchases with no intention of paying the lenders or issuers for the items and services obtained.
The Fuquay-Varina and Raleigh Police Departments partnered with the Federal Bureau of Investigation and the Social Security Administration to conduct the investigation in this matter. Assistant United States Attorney Susan Menzer represented the government.
Man Indicted for Possession of a Firearm by a Prohibited PersonRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announces that ADAM RYAN CORNETT faces federal charges for possession of a firearm by a prohibited person and two counts of making false statements during the purchase of a firearm.
CORNETT was named in a three-count indictment, returned by a federal grand jury sitting in the Eastern District of North Carolina. The indictment alleges that CORNETT possessed a firearm, after he was subject to a Domestic Violence Protective Order that by its terms explicitly prohibited the use, attempted use or threatened use of physical force against a person that would reasonably be expected to cause bodily injury whereby CORNETT possessed a firearm. CORNETT was also charged with making false statements when completing forms to purchase firearms on two separate attempts, to which he stated he was not subject to a Domestic Violence Protective Order.
If convicted, CORNETT would face up to a maximum term of 10 years’ imprisonment, a $250,000 fine as to each of the three counts, 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.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this matter. Assistant United States Attorney Daniel W. Smith represents the government.
Madison Business Owner Sentenced to Prison for Harboring Illegal AliensRead the Press Release
Jackson, Miss. – Hector Valdez-Loera, 42, of Madison, was sentenced on Friday by Chief U.S. District Judge Daniel P. Jordan III to 12 months and one day in federal prison, followed by 3 years of supervised release, for harboring an illegal alien for commercial advantage and private financial gain, announced U.S. Attorney Mike Hurst, Jere T. Miles, Special Agent in Charge of Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations in New Orleans, and William Joyce, Acting Field Office Director of ICE Enforcement and Removal Operations (ERO). Valdez-Loera was also ordered to pay an administrative fine in the amount of $79,784.00.
On April 13, 2017, while searching for an illegal alien fugitive who had a prior order of removal for illegal reentry into the United States, ICE ERO officers went to a home located in Ridgeland, Mississippi where the illegal alien fugitive had been living. Upon arrival, officers found two additional illegal aliens living at the residence. Officers later determined the illegal alien fugitive had left for work at a jobsite located in Madison, Mississippi. At the jobsite, Madison Concrete was performing concrete work. Upon arrival, a number of the workers fled into the woods. Officers gave chase but was unable to apprehend the illegal alien fugitive.
Further investigation revealed that Madison Concrete was owned and operated by Hector Valdez-Loera and that Valdez-Loera hired illegal aliens who either had social security numbers that did not exist or belonged to someone deceased. He failed to check E-Verify to determine legitimacy of his workers and referred to them as subcontractors, when they were in fact his employees. The investigation also revealed that Valdez-Loera provided his financial information to obtain housing for at least two of his illegal alien employees.
Valdez-Loera was subsequently charged with two counts of harboring an illegal alien for commercial advantage and private financial gain. He pled guilty before Judge Jordan on May 24, 2019.
The case is the result of an investigation by Homeland Security Investigations and ICE Enforcement and Removal Operations. It was prosecuted by Assistant U.S. Attorney Keesha Middleton.
Lower Brule Woman Sentenced on Meth Trafficking ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Lower Brule, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance was sentenced on October 7, 2019, by U.S. District Judge Roberto A. Lange.
Alisha Flute, age 21, was sentenced to 72 months in federal prison, followed by 4 years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Flute was indicted by a federal grand jury on September 11, 2018. She pled guilty on May 14, 2019.
The conviction stemmed from a drug conspiracy that began at a time unknown, but no later than December 1, 2015, and continuing to November 14, 2018, where Flute knowingly and intentionally conspired with others to distribute and possess with the intent to distribute over 500 grams of methamphetamine, a Schedule II controlled substance, on the Crow Creek and Lower Brule reservations in South Dakota. The methamphetamine was supplied by Frank “Tank” Adams from St. Paul, Minnesota. Adams was convicted of Conspiracy to Distribute a Controlled Substance at a federal jury trial in August and will be sentenced in November.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force, Federal Bureau of Investigation, Bureau of Indian Affairs - Crow Creek Agency, Bureau of Indian Affairs - Lower Brule Agency, South Dakota Highway Patrol, and the Pierre Police Department. Assistant U.S. Attorney Meghan N. Dilges.
Flute was immediately turned over to the custody of the U.S. Marshals Service.
Los Angeles Man Sentenced to 10 Years in Federal Court for Drug and Money Laundering ConspiraciesRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that Michael Joseph Nicholson, 36, of Los Angeles, California, was sentenced yesterday by U.S. District Judge Timothy M. Burgess, to 10 years in prison, to be followed by a 5-year term of supervised release, for his role in a drug and money laundering conspiracy that distributed cocaine, heroin, and methamphetamine in Anchorage, Alaska.
According to documents filed, Nicholson along with Wendy Del Carmen Recinos, Jonathan Toliver Jr., and Reon Jordan; were part of a drug and money laundering conspiracy that began sometime in August 2016 and continued through December 2017. Among the conspirators there was an agreement to distribute heroin and cocaine in Alaska. Members of the conspiracy flew back and forth between California and Alaska for the purpose of distributing these illegal controlled substances. An Alaskan residence became a base of operations and is where the conspirators stored heroin, cocaine, and other controlled substances with the intent of distributing them in Anchorage. Investigators seized 1.4 kilos of cocaine, 2 pounds of heroin, 43 grams of benzodiazepine, and 76 grams of oxycodone.
During this same time frame, the conspirators used multiple methods to launder their drug proceeds, including deposits into bank accounts, wire transfers and shipments of bulk currency between Alaska and California. The deposited drug proceeds were used to pay travel expenses of the drug trafficking conspiracy.
Approximately $147,998 in U.S. currency, a Rolex “Sky Dweller” wrist watch, and four firearms were seized by the government as property constituting proceeds of the drug trafficking.
On February 4, 2019, Wendy Del Carmen Recinos was sentenced to six years in prison, to be followed by a five-year term of supervised release, for her role in the drug and money laundering conspiracies.
On February 4, 2019, Renee Livingston was sentenced to five years of probation for her role in the money laundering conspiracy.
On March 25, 2019, Jonathan Toliver Jr. was sentenced to five years in prison, to be followed by a five-year term of supervised release, for his role in the drug and money laundering conspiracies.
On March 25, 2019, Reon Jordan was sentenced to five years in prison, to be followed by a four-year term of supervised release, for her role in the drug and money laundering conspiracies.
On July 9, 2019, Nicole Manglona was sentenced to two years in prison, to be followed by a three-year term of supervised release, for her role in the money laundering conspiracy.
U.S. Attorney Bryan Schroder commends all investigative and prosecutorial officials. “This case is a great example of the interagency cooperation we see every day in Alaska. The law enforcement officers and prosecutors in this case worked diligently to take down a significant drug trafficking operation, but also conducted a financial investigation to disrupt the money laundering aspect of the organization and seize the money, jewelry, and firearms illegally obtained by the defendants.”
This case was investigated by the Drug Enforcement Administration (DEA), IRS-Criminal Investigation, Anchorage Police Department Vice Unit, Homeland Security Investigations, and the United States Postal Inspection Service.
Lawrence Man Sentenced to Prison for Conspiracy to Distribute FentanylRead the Press Release
BOSTON – A Lawrence man was sentenced today in federal court in Worcester in connection with a 2017 fentanyl trafficking conspiracy.
Carlos Rodriguez, 43, was sentenced by U.S. District Court Judge Timothy S. Hillman to 27 months in prison and two years of supervised release. Rodriguez previously pleaded guilty to conspiring to distribute and possession with the intent to distribute in excess of 40 grams of fentanyl.
Co-defendants Ernesto Rodriguez, Jorge Burgos, and Joshua Sanchez were sentenced to 20 months, 60 months, and 34 months in prison, respectively.
As a result of various wiretaps capturing the defendants’ discussions of sales and purchases of fentanyl, in November and December 2017, law enforcement conducted surveillance of Burgos purchasing fentanyl for resale from Carlos Rodriguez, Ernesto Rodriguez, and others. In addition, on Dec. 20, 2017, law enforcement stopped Sanchez after wire intercepts suggested he would be distributing 50 grams of fentanyl to co-defendant Jorge Burgos. Agents conducted a stop of the vehicle Carlos Rodriguez was driving and recovered 50 grams of fentanyl. Further investigation led to the recovery of 40 additional grams of fentanyl from Ernesto Rodriguez. Intercepted communications captured Carlos Rodriguez discussing with Burgos how agents had stopped him on the way to Burgos’ residence and captured him discussing with another individual where to hide a firearm from authorities.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Joseph W. Cronin, Inspector in Charge of the United States Postal Inspection Service; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Worcester Police Chief Steven M. Sargent; and Leicester Interim Police Chief Kenneth Antanavica made the announcement. Assistant U.S. Attorney Mark Grady of Lelling’s Criminal Division prosecuted the case.
Lawrence Man Pleads Guilty to Operating Major Fentanyl Trafficking OrganizationRead the Press Release
Concord – United States Attorney Scott W. Murray announced that Sergio Martinez, 29, of Lawrence, Massachusetts, pleaded guilty on Tuesday to leading a continuing criminal enterprise and participating in a money laundering conspiracy based upon his role in operating a Lawrence-based fentanyl trafficking organization. The plea agreement, if accepted by the judge at sentencing, would require Martinez to serve a 45-year prison sentence and forfeit $2,000,000 in cash, as well as three houses in Lawrence.
The guilty plea came on the sixth day of a jury trial. During the trial, which began on October 1, 2019, the government presented evidence that Martinez operated a fentanyl trafficking operation that employed numerous individuals to sell fentanyl to customers from various New England states, including New Hampshire. Testimony at trial showed that customers knew the Martinez organization by the name “Brian” and that most of the organization’s customers came from New Hampshire. Distributors knew to identify customers on the streets of Lawrence by their New Hampshire license plates.
Testimony at trial showed that the organization served three distinct sets of customers. The first group of customers, who ordered the smallest amounts of drugs, was served by various telephones (“small phones”) that were located in a specific residence and answered by dispatchers. This residence was referred to as “the base” and dispatchers staffed “the base” from 9:00 a.m. to 11:00 p.m. daily. Dispatchers took orders and directed customers to meet various distributors throughout the Merrimack Valley area, mostly in Lawrence or Haverhill, Massachusetts, but sometimes in Salem, New Hampshire. These phones usually received hundreds of calls daily from customers placing fentanyl orders. Street-level distributors were provided with 200-gram bags of fentanyl, which they sold for $30 per gram, generating $6,000 per bag of fentanyl sold. Distributors testified at trial that they sometimes had lines of 10 to 15 customers, most with New Hampshire license plates, waiting for them on the street.
A second set of customers was serviced by the so-called “big phone.” The big phone was reserved for customers who typically purchased from ten grams to 200 grams of fentanyl at a time, quantities which the purchasers would then distribute themselves. The defendant and his brother Raulin Martinez answered this telephone, took orders, and sent these customers to meet a different set of distributors. They promised these customers better and faster service than they received if they called the small phones. These phones received between approximately 50 and 100 calls daily.
A third, much smaller set of customers, who ordered particularly large quantities of fentanyl (usually one kilogram or more at a time) called the defendant directly to place orders. The organization would deliver directly to these individuals by sending a distributor, often in a taxi, to deliver to these customers at or near their residences.
Trial testimony showed that Martinez managed numerous individuals including between five and ten runners working each day, people who staffed “the base” answering telephones, and people who mixed and packaged the drugs in milling operations he operated at different locations in Lawrence. The jury was provided with evidence showing that investigators seized over 12 kilograms of fentanyl from the Martinez organization during the investigation. During one telephone call intercepted over a court-authorized wiretap and played at trial, Martinez spoke to a man who identified himself as a fentanyl supplier located in Sinaloa, Mexico. Martinez told him, “what I look for is quality for when I prepare it and give it to people. Because I’m one of those people that’s moving a lot here. I move between 15, to 30, to 35 kilos a month.” In other intercepted telephone calls played at trial, Martinez acknowledged the dangerous nature of the drug he distributed, noting that “what we give out is poison.”
Evidence at trial showed that Martinez received substantial income from his business and that he sent some of this money to the Dominican Republic. Drug runners testified that they provided the defendant with between $30,000 and $35,000 per day based on aggregate drug sales. On one occasion, the defendant was stopped by the police while transporting $400,494 in cash that he intended to send to the Dominican Republic. This money was seized by the DEA.
The plea agreement includes a forfeiture of $2,000,000 including funds in two bank accounts in the Dominican Republic in Martinez’s name.
Martinez is scheduled to be sentenced on January 28, 2020.
A total of 34 individuals were charged with participating in this conspiracy. Martinez is the last of various co-conspirators to plead guilty. The following individuals previously pleaded guilty and are awaiting sentencing:
- Miguel Alvarez, 38, of Haverhill, MA, pled guilty on January 31, 2019. His sentencing is scheduled for December 19, 2019;
- Eduard Amparo, 47, of Lawrence, MA, pled guilty on August 29, 2019. His sentencing is scheduled for December 16 2019;
- Edward Brailey Delacruz, 25, of Methuen, MA, pled guilty on June 24, 2019. His sentencing is scheduled for December 16, 2019;
- Edward Brito, 32, of Lawrence, MA, pled guilty on July 10, 2019. His sentencing is scheduled for November 4, 2019;
- Julio Colon, 25, of Lawrence, MA pled guilty on September 30, 2019. His sentencing is scheduled for January 28, 2020.
- Luz DeJesus, 34, of Lawrence, MA, pled guilty on January 31, 2019. Her sentencing is scheduled for November 15, 2019;
- Juan Dimel Gil Castillo, 25, of Lawrence, MA, pled guilty on February 6, 2019. His sentencing is scheduled for November 27, 2019;
- Ramon Gil Huma, 26, of Lawrence, MA, pled guilty on March 11, 2019. His sentencing is scheduled for November 12, 2019;
- Steven Lessard, 31, of Lowell, MA pled guilty on September 30, 2019. His sentencing is scheduled for January 28, 2020;
- Henry Marte, 22, of Lawrence, MA, pled guilty on January 25, 2019. His sentencing is scheduled for November 4, 2019;
- Raulin Martinez, 37, of Lawrence, MA, pled guilty on December 7, 2018. His sentencing is scheduled for November 29, 2019;
- Fernand Miranda, 24, of Haverhill, MA, pled guilty on September 16, 2019. His sentencing is scheduled for January 2, 2020.
- Jared Ortega-Peguero, 26, of Lawrence, MA, pled guilty on December 6, 2018. His sentencing is scheduled for December 19, 2019;
- Suhey Perez, 40, of Lawrence, MA, pled guilty on May 2, 2019. Her sentencing is scheduled for November 18, 2019;
- Luz Perez DeMartinez, 27, of Lawrence, MA, pled guilty on February 12, 2019. Her sentencing is scheduled for November 19, 2019;
- Wagner Pimentel, 29, of Lawrence, MA, pled guilty on March 15, 2019. His sentencing is scheduled for November 19, 2019;
- Luis Angel Polanco Huma, 23, of Lawrence, MA, pled guilty on August 14, 2019. His sentencing is scheduled for November 27, 2019.
- Jorge Rodriguez, 22, of Methuen, MA, pled guilty on February 28, 2019. His sentencing is scheduled for November 15, 2019;
- Luis Antonio Salomon Polanco, 21, of Lawrence, MA, pled guilty on March 11, 2019. His sentencing is scheduled for November 18, 2019;
- Juan Rafael Tejada-Jimenez, 39, of Lawrence, MA, pled guilty on November 29, 2018. His sentencing is scheduled for November 22, 2019.
In addition to the defendants listed above, nine other defendants have pleaded guilty and already have been sentenced. Four defendants remain fugitives.
In addition to these defendants, 13 New Hampshire-based individuals who obtained fentanyl from this organization have been charged with drug trafficking offenses. Twelve of those individuals have pleaded guilty and one is still awaiting trial.
“The evidence in this case demonstrates that Lawrence-based fentanyl traffickers have made huge profits from pumping large quantities of deadly fentanyl into New Hampshire,” said U.S. Attorney Murray. “Mr. Martinez ran a sophisticated marketing operation that served as a conduit between the Mexican drug cartels and customers in Northern New England. This was a complex case in which the entire law enforcement community worked together to bring high-level fentanyl traffickers to justice. The end result should serve as a warning to those who choose to sell fentanyl in the Granite State.”
“DEA is committed to investigating and dismantling large scale drug trafficking organizations like this one operating in Lawrence, MA led by Mr. Martinez,” said DEA Special Agent in Charge Brian D. Boyle. “Fentanyl distribution destroys people’s lives and wreaks havoc in our communities. DEA and our law enforcement partners will aggressively pursue any individual or organization that distributes this poison.”
This investigation was conducted by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
The case was a collaborative investigation that involved the DEA; the New Hampshire State Police; the Hillsborough County Sheriff’s Office; the Nashua Police Department; the Massachusetts State Police; the Massachusetts Attorney General’s Office; the New Hampshire Attorney General’s Office; the Essex County District Attorney’s Office; the Internal Revenue Service; Immigration and Customs Enforcement’s Homeland Security Investigations; United States Customs and Border Protection Boston Field Office; the United States Marshals Service; the United States Department of State’s Diplomatic Security Service; the Manchester Police Department; the Lisbon Police Department; the Littleton Police Department; the Seabrook Police Department; the Haverhill (MA) Police Department; the Methuen (MA) Police Department; the Lowell (MA) Police Department; and the Maine State Police.
The case is being prosecuted by Assistant United States Attorneys Georgiana L. Konesky and Seth R. Aframe.
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Laredo felon guilty of firearms violationRead the Press Release
LAREDO, Texas – A federal jury has convicted a 74-year-old local felon for unlawfully possessing a firearm, announced U.S. Attorney Ryan Patrick. They deliberated for one hour before returning the guilty verdict against Javier J. Trevino following a one-day trial.
During the trial, the jury heard testimony about an Aug. 10, 2016, search warrant authorities executed on Trevino’s residence. Upon entering the home, law enforcement observed multiple firearms in the living room, dining room, kitchen and bedrooms. Authorities ultimately discovered more than 120 firearms and a significant amount of ammunition within Trevino’s residence.
Trevino had a felony conviction for making false statements in relation to the purchase of firearms from 1987 and was, therefore, prohibited from possessing a firearm or ammunition per federal law.
At trial, the defense attempted to convince the jury Trevino owns multiple homes and did not reside in the home where authorities seized the firearms. He argued that because he resided somewhere else, he was not in possession of those firearms. The jury did not believe those claims and found Trevino guilty as charged.
U.S. District Judge Marina Garcia Marmolejo presided over the trial and set sentencing for Feb. 24, 2020. At that time, Trevino faces up to 10 years in federal prison and a possible $250,000 maximum fine.
He has been and will remain in custody pending that hearing.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the Webb County Sheriff’s Office and Laredo Police Department. Assistant U.S. Attorneys Christopher dos Santos and Anthony Brown prosecuted the case.
Kinston Woman Sentenced to 37 Months for Tax FraudRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, United States District Judge James C. Dever III sentenced ROSALIND JACKSON, of Kinston, NC to 37 months imprisonment, followed by three years of supervised release. She was also ordered to pay $393,724 in restitution to the Internal Revenue Service.
On July 10, 2019, JACKSON pled guilty to a two-count Criminal Information, charging her with willfully aiding and assisting in the preparation of false tax returns for others and filing a false income tax return in her name. JACKSON previously recruited individuals to have fraudulent tax returns prepared by Issac Blount, who operated a tax preparation service in Greenville, known as Enriched Tax Services. For the tax years 2009 through 2014, Blount filed at least 270 fraudulent income tax returns, seeking $1,746,347 in refunds. Blount generated these false refunds with fictitious wage and tax statements, enabling the taxpayers to qualify for the Earned Income and Additional Child Care tax credits. Alicia Jenkins and Kiawanna Langley also worked for Blount. The taxpayers were expected to pay an additional $1,500 in cash out of the fraudulent refund proceeds, which was split three-ways between Blount, Langley and the recruiter. In 2016, Blount, Jenkins and Langley pled guilty to tax charges and were sentenced to imprisonment and ordered to pay restitution to the Internal Revenue Service.
According to the Government’s proffer, after JACKSON disassociated herself from Blount, Jenkins and Langley, she continued to assist others in filing false tax returns in the same fraudulent manner. She took her clients’ files containing manufactured wage and tax statements to other tax preparation businesses or prepared and filed the returns herself, but falsely represented the returns were self-prepared by the taxpayer. Thirteen individuals confirmed that JACKSON had filed tax returns for them for multiple years. Those returns claimed approximately $363,368 in refunds to which the individuals were not entitled.
In addition, JACKSON filed false income tax returns in her own name for the tax years 2011 through and including 2015, seeking approximately $38,419 in refunds to which she was not entitled. Those returns similarly reported false wage income to qualify her for various tax credits.
United States Attorney Higdon commented, “Whenever anyone defrauds the Government by not filing their tax returns, by claiming refunds or monies to which they are not entitled, or, as here, by scheming with others to do those things, they are victimizing every American who works hard and who diligently pays their taxes to support our Government and the programs and services its provides. There is no such thing as a victimless tax fraud case; we are all victims when anyone pulls off a scheme like this one. We are gratified by the Court’s sentence and the message it sends to those who would attempt to defraud the tax system. You’ll be caught; you’ll be prosecuted; and, you’ll be punished.”
“Return Preparer fraud is a priority for IRS Criminal Investigation and we have committed many resources to investigating and prosecuting cases just like these,” said Matthew D. Line, Special Agent in Charge, IRS Criminal Investigation. “Let this be a reminder to others seeking to enrich themselves illegally; IRS-CI Special Agents will find you and uncover your fraudulent schemes that will lead you to prison.”
The Internal Revenue Service Criminal Investigation conducted the investigation in this matter. Assistant United States Attorney Susan Menzer represented the government.
Kansas City Man Sentenced to 15 Years for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Kansas City, Missouri, man was sentenced in federal court today for managing a conspiracy to distribute multiple pounds of methamphetamine in the Springfield, Missouri area.
Donald R. Taylor, also known as “Dee,” 35, was sentenced by U.S. District Judge M. Douglas Harpool to 15 years in federal prison without parole.
On Dec. 17, 2018, Taylor pleaded guilty to participating in a drug-trafficking conspiracy that lasted from Dec. 2, 2014, to Jan. 23, 2018. During the course of the investigation, law enforcement officers seized a total of 5.342 kilograms of methamphetamine from various co-conspirators.
Women were frequently used to transport illegal drugs during the conspiracy, including large quantities of methamphetamine in vehicles and smaller quantities of cocaine and heroin hidden inside of their vaginas. They were paid to drive to Texas, Arizona, or California to pick up methamphetamine and other drugs and transport them back to Springfield. Several women admitted they made multiple trips to acquire illegal drugs, sometimes in multi-kilogram quantities.
On one occasion, Taylor admitted, he flew to Arizona to deliver a large amount of cash to co-conspirators in order to purchase methamphetamine. Taylor attached a package that contained four pounds of methamphetamine onto a Chevrolet Avalanche near the gas tank, which co-conspirators drove back to Springfield. However, Arizona law enforcement officers stopped the vehicle and discovered the hidden methamphetamine.
Taylor is among seven co-defendants who have been sentenced in this case. Five co-defendants have pleaded guilty and await sentencing.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull II. It was investigated by the Drug Enforcement Administration, the Springfield, Mo., Police Department, and COMET (the Combined Ozarks Multijurisdictional Enforcement Team).
Jury convicts Nigerian for presenting fake British documents to open local bank accountsRead the Press Release
HOUSTON – A jury has returned a guilty verdict against a 57-year-old Nigerian man for committing passport fraud, announced U.S. Attorney Ryan K. Patrick. The jury deliberated for one hour before convicting Ademola Okulaja, Kingwood, following a two-day trial.
On June 6, 2016, Okulaja opened a checking account at a Houston branch of the International Bank of Commerce (IBC). At that time, he claimed to be a British citizen known as “Michael Millet” and provided the bank with a fraudulent passport the United Kingdon purportedly issued.
Okulaja entered a different IBC Branch in Houston on Nov. 21, 2016, and opened another checking account. This time, he used the name “David Allen” and presented another fraudulent British passport.
The defense conceded the passports were counterfeit, but attempted to convince the jury Okulaja was not the person presenting those passports to open the accounts. The jury was not convinced and found him guilty as charged.
U.S. District Judge Gray Miller presided over the trial and set sentencing for Jan. 23, 2020. At that time, Okulaja faces up to 10 years in federal prison and a possible $250,000 fine. He was permitted to remain on bond pending that hearing.
The U.S. Postal Inspection Service conducted the investigation. Special Assistant U.S. Attorney Benjamin C. Sandel and Assistant U.S. Attorney Jay Hileman prosecuted the case.
Jury Finds Lauderdale County Man Guilty of Being a Convicted Felon in Possession of Firearms Used in the Murder of a Pregnant WomanRead the Press Release
Memphis, TN – After a three-day jury trial, Sequna Copeland a/k/a "Cutthroat", 30, of Ripley, Tennessee has been found guilty of two counts of being a convicted felon in possession of a firearm. U.S. Attorney D. Michael Dunavant announced the guilty verdict today.
According to information presented in court, on June 18, 2018 in Lauderdale County, Tennessee a white minivan crashed on Highway 19. Two men emerged from the vehicle and ran in the direction of Maple Hill Circle. Multiple people identified these men as Sequna Copeland and Bryson Bonds. The Tennessee Highway Patrol investigated the wreck and found a Canik 9mm pistol and a Harrington & Richardson .22 revolver in the minivan. Tennessee Bureau of Investigation lab tests, codefendant statements, and circumstantial evidence revealed that these two handguns were used to kill Jessica Hunt and her unborn child on Berry Morrow Road earlier that same morning.
In 2016, Copeland, along with three other members of the Gangster Disciples, robbed the Ripley Express convenience store. He along with another defendant evaded law enforcement for eight months and was subsequently placed on the Tennessee Bureau of Investigation’s "Top 10 Most Wanted" list. On July 30, 2015, Copeland, while under oath and testifying as a witness in a proceeding before a Federal Grand Jury, made a false statement to prevent the punishment of two co-defendants. In July 2016, Copeland pleaded guilty to one count of perjury, and was sentenced to 27 months imprisonment followed by 3 years supervised release. In 2009, Copeland was convicted in Lauderdale County of Facilitation of the Second Degree Murder of Brian Bond, son of then Haywood County Sheriff Melvin Bond.
On October 1, 2018, the Lauderdale County Grand Jury returned indictments charging Copeland with two counts of Premeditated First Degree Murder, two counts of Felony First Degree Murder, one count of Especially Aggravated Kidnapping, one count of
Tampering with Evidence, one count of Felony Possession of a Firearm, one count of Employing a Firearm During the Commission of a Dangerous Felony, one count of Abuse of a Corpse, one count of Theft of Property, and one count of Leaving the Scene of an Accident. https://tbinewsroom.com/2018/10/06/tbi-top-ten-fugitive-captured-charged-in-lauderdale-county-homicide/
Sentencing for the federal firearms convictions is scheduled for November 22, 2019 before U.S. District Court Judge Thomas L. Parker, where Copeland faces a possible sentence of up to 10 years in federal prison.
U.S. Attorney D. Michael Dunavant said: "As his nickname indicates, ‘Cutthroat’ has a long criminal history of felony convictions involving violence, and has now been found guilty of possessing firearms that were used in the murder of Jessica Hunt and her unborn child, and while he was still on a period of supervised release from a prior felony conviction. Copeland has devoted his entire adult life to a career of criminal conduct in Lauderdale County, and that prior history has finally caught up with him. This federal conviction will remove this violent recidivist from the community for up to 10 years, will hopefully deliver justice for his victims, and will make Lauderdale County and West Tennessee a safer place."
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Tennessee Highway Patrol, The Tennessee Bureau of Investigation, Lauderdale County Sheriff’s Office, and the Ripley Police Department investigated this case.
Assistant U.S. Attorney P. Neal Oldham is prosecuting this case on behalf of the government.
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Jersey City, New Jersey, Man Charged with Receipt of Child PornographyRead the Press Release
NEWARK, N.J. – A Jersey City, New Jersey, man was charged today with allegedly receiving images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Benigno Gonzalez-Mendoza, 35, is charged by complaint with one count of receipt of child pornography. He appeared before U.S. Magistrate Judge Steven C. Mannion in Newark federal court.
According to documents filed in this case and statements made in court:
From March 9, 2019, through July 27, 2019, Gonzalez-Mendoza knowingly received images and videos of child sexual abuse, including videos of prepubescent children engaged in sexual acts with adults.
The charge of receipt of child pornography carries a maximum potential penalty of 20 years in prison, a minimum penalty of five years in prison, and a maximum $250,000 fine.
U.S. Attorney Craig Carpenito credited special agents with the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Emma Spiro of the U.S. Attorney’s Office Criminal Division in Newark.
Indictment: Former Immigration Officer Pretended to Be ICE SupervisorRead the Press Release
WICHITA, KAN. – A former ICE officer was indicted today on a charge of impersonating a federal officer, U.S. Attorney Stephen McAllister said.
Andrew J. Pleviak, 42, Topeka, is charged with one count of false impersonation of a federal officer. In court documents, Pleviak is alleged to have tried to have a man who was arrested by the Kingman County Sheriff’s Department released from custody.
Juan Tapia-Alfaro was arrested after deputies allegedly found a Kansas driver’s license he fraudulently obtained using a birth certificate and Social Security number of a person living in Puerto Rico. On the same day, Pleviak is alleged to have called the Sheriff’s Department claiming to be a supervisor with Immigration and Customs Enforcement. In fact, Pleviak was no longer an ICE employee. In 2018, he was convicted of violating a federal computer security statute.
On Sept. 3, 2019, Pleviak allegedly gave the Sheriff’s Department a letter on ICE letterhead claiming that Tapia-Alfaro was working as a confidential informant for the Drug Enforcement Administration and requesting charges be dropped. Sheriff’s Department officers saw through the ruse and arrested Pleviak on the spot.
According to court records, Tapia-Alfaro said he knew Pleviak from doing work on Pleviak’s house.
If convicted, Pleviak could face up to three years in federal prison and a fine up to $250,000. The Kingman County Sheriff’s Office and Homeland Security Investigations investigated. Assistant U.S. Attorney David Lind is prosecuting.
OTHER INDICTMENTS
Shawn Richard Seburn, 41, Hutchinson, Kan., is charged with one count of transporting child pornography through a Tumblr account via the internet. The crime is alleged to have occurred in August and September 2018 in Reno County, Kan.
If convicted, he could face a sentence of not less than five years and not more than 20 years in federal prison and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
John Dean Hopkins, 61, Haysville, Kan., is charged with two counts of transporting child pornography through Dropbox via the internet. The crimes are alleged to have occurred in January 2017 and October 2018 in Sedgwick County, Kan.
If convicted, he could face a sentence of not less than five years and not more than 20 years in federal prison and a fine up to $250,000 on each count. The FBI investigated. Assistant U.S. Attorney Jason Hart is prosecuting
Danny Del Real, 30, Dodge City, Kan., is charged in a superseding indictment with seven counts of distributing methamphetamine. The crimes are alleged to have occurred in 2018 and 2019 in Dodge City, Kan.
If convicted, he could face a sentence of not less than 10 years and a fine up to $10 million on each count. The Kansas Bureau of Investigation, the Dodge City Police Department and the Drug Enforcement Administration investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
Tomas Juan Tomas-Andres, 39, a citizen of Guatemala, is charged with one count of using another person’s Social Security number and one count of aggravated identity theft. The crimes are alleged to have occurred in October 2017 in Arkansas City, Kan.
If convicted, he could face up to five years in federal prison and a fine up to $250,000 on the Social Security count and a mandatory two years (consecutive) and a fine up to $250,000 on the identity theft count. The Kansas Department of Revenue investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
Cornel A. Owens, 42, Iola, Kan., is charged with one count of possession with intent to distribute methamphetamine and one count of unlawful possession of a firearm by a convicted felon. The crimes are alleged to have occurred in 2018 and 2019 in Iola and Independence, Kan.
If convicted, he could face a sentence of not less than 10 years and a fine up to $4 million on the drug charge and up to 10 years and a fine up to $250,000 on the firearm charge. The Kansas Bureau of Investigation investigated, the Iola Police Department, the Montgomery County Sheriff’s Office and the Independence Police Department investigated. Assistant U.S. Attorney Mona Furst is prosecuting.
Laveil D. Mansaw, 34, is charged with one count of possession with intent to distribute marijuana, one count of unlawful possession of a firearm in furtherance of drug trafficking and one count of unlawful possession of a firearm by a convicted felon. The crimes are alleged to have occurred on Feb. 15, 2019, in Bonner Springs, Kan.
If convicted, he could face a sentence of up to five years in federal prison and a fine up to $250,000 on the marijuana charge, not less than five years and a fine up to $250,000 on the first firearm charge and up to 10 years and a fine up to $250,000 on the second firearm charge. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Terra Morehead is prosecuting.
Sonia Hernandez-Smith, 41, Wichita, Kan., is charged with 20 counts of making false statements in federal tax returns. The crimes are alleged to have occurred in 2013, 2014 and 2015 in Sedgwick County, Kan.
The indictment alleges Hernandez-Smith prepared taxpayers’ returns that falsely stated they were eligible to claim Child Tax Credit, Additional Child Tax Credit and Earned Income Credit.
If convicted, Hernandez-Smith could face up to three years in federal prison and a fine up to $100,000 on each count. The Internal Revenue Service investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.
Gerson Ramos-Matamoros, 33, a citizen of Honduras, is charged with unlawfully re-entering the United States after being deported. He was found Sept. 20, 2019, in Republic County, Kan.
If convicted, he faces up to two years in federal prison and a fine up to $250,000. Homeland Security Investigations investigated. Assistant U.S. Attorney David Lind is prosecuting.Wade Dunn, 30, Wichita, Kan., was indicted by a grand jury on one count of escaping from federal custody. The indictment alleges that on Sept. 23, 2019, he failed to return to Mirror, Inc., Residential Re-Entry Center in Wichita after leaving the facility on a pass.
Initially, Dunn was charged Sept. 25, 2019, in a sealed criminal complaint filed in federal court.
On Sept. 28, Wichita police announced they had arrested Dunn in connection with a stabbing incident.
The federal complaint was unsealed Sept. 30.
If convicted, he could face a sentence of up to five years in federal prison and a fine up to $250,000. The Wichita Police Department and the U.S. Marshals Service investigated. Assistant U.S. Attorney David Lind is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Grand Jury Returns Indictments; Rock County Man Charged by ComplaintRead the Press Release
MADISON, WIS. -- A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Lincoln County Man Charged with Gun Crime
Daniel Boldt, 46, Town of Corning, Wisconsin, is charged with being a felon in possession of firearms and ammunition. The indictment alleges that on August 24, 2019, he possessed a .22 caliber rifle, a .32 caliber revolver, a .22 caliber pistol, a 12 gauge shotgun, a 9mm pistol, and .22 caliber ammunition.
If convicted, Boldt faces a maximum penalty of 10 years in federal prison. The charges against him are the result of an investigation by the Lincoln County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Rita M. Rumbelow is handling the prosecution.
Rock County Man Charged with Illegally Possessing a Firearm
Austin Hedges, 23, Clinton, Wisconsin, is charged in a complaint filed in U.S. District Court today with being a prohibited person in possession of a firearm. The complaint alleges that Hedges, knowing he had previously been committed to a mental institution, possessed a .38 caliber pistol.
The complaint and affidavit filed today allege that Hedges was the subject of an Order of Commitment issued in Rock County Circuit Court on June 12, 2013, and that as part of that order, Hedges was prohibited from possessing any firearm or ammunition. The affidavit alleges that federal law enforcement officers executed a search warrant at Hedge’s home in Clinton, and the pistol was found in his possession. Hedges was arrested by FBI agents. He appeared in federal court in Madison this afternoon and remains in federal custody.
The charge against Hedges is the result of an investigation by the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Elizabeth Altman is handling the prosecution.
Mexican Citizen Charged with Illegally Reentering US & Possessing Firearm & Ammunition
Francisco Arturo Cruz-Martinez, 32, a citizen of Mexico found in Madison, Wisconsin, is charged with being an illegal alien in possession of a firearm and ammunition, and with reentering the United States after previously being removed. The indictment alleges that on September 22, 2019, Cruz-Martinez was found in possession of a .38 caliber handgun and ammunition.
If convicted, Cruz-Martinez faces a maximum penalty of 10 years in federal prison on the gun charge, and two years in federal prison on the illegal reentry charge. The charges against him are the result of an investigation by U.S. Immigration and Customs Enforcement. Assistant U.S. Attorney Zachary Corey is handling the prosecution.
The charges filed today against Boldt, Hedges, and Cruz-Martinez have been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition, and violent crimes and drug crimes that involve the use of firearms.
Madison Man Charged With Sex Trafficking a Minor
James Coney, 31, Madison, Wisconsin, is charged with recruiting, enticing, harboring, transporting, and maintaining a minor from December 23, 2017 to about January 20, 2018, knowing the minor would be caused to engage in a commercial sex act.
The indictment also charges Coney with transporting the minor from Wisconsin to Illinois on December 24, 2017, with the intent that the minor engage in prostitution.
If convicted, Coney faces a mandatory minimum penalty of 10 years and a maximum of life in federal prison on each charge. The charges against him are the result of an investigation by the Wisconsin Department of Justice Division of Criminal Investigation, Federal Bureau of Investigation, and Fitchburg Police Department. Assistant U.S. Attorney Julie Pfluger is handling the prosecution.
Lake Delton Man Charged with Drug Crimes
Jack M. Washington, 43, Lake Delton, Wisconsin, is charged with three counts of distributing crack cocaine and one count of possessing 28 grams or more of crack cocaine with the intent to distribute. The indictment alleges that he distributed crack cocaine on May 31, July 11, and August 6, 2019, and that he possessed 28 grams or more of crack cocaine on August 21, 2019.
If convicted, Washington faces a maximum penalty of 20 years in federal prison on each of the distribution charges. The charge of possessing 28 grams or more of crack cocaine with intent to distribute carries a mandatory minimum penalty of five years and a maximum of 40 years in federal prison. The charges against him are the result of an investigation by the Sauk County Sheriff’s Office and the Lake Delton Police Department. Assistant U.S. Attorney Taylor Kraus is handling the prosecution.
Beloit Man Charged with Failing to Register as Sex Offender
Raynaldo Mendez, 44, Beloit, Wisconsin, is charged with failing to register as required under the Sex Offender Registration and Notification Act (SORNA). The indictment alleges that from September 2017 until March 2018, he traveled from Illinois to Wisconsin and failed to update his registration as required by SORNA.
If convicted, Mendez faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the Beloit Police Department, South Beloit (Illinois) Police Department, Wisconsin Department of Corrections, and U.S. Marshals Service. Assistant U.S. Attorneys Julie Pfluger and Taylor Kraus are handling the prosecution.
Genetic Testing Company and Three Principals Agree to Pay $42.6 Million to Resolve Kickback and Medical Necessity ClaimsRead the Press Release
The Justice Department announced today that UTC Laboratories Inc. (RenRX) has agreed to pay $41.6 million, and its three principals, Tarun Jolly M.D., Patrick Ridgeway, and Barry Griffith, have agreed to pay $1 million to resolve allegations that they violated the False Claims Act by paying kickbacks in exchange for laboratory referrals for pharmacogenetic testing and for furnishing and billing for tests that were not medically necessary. RenRX, a laboratory company headquartered in New Orleans, Louisiana, also agreed to a twenty-five year period of exclusion from participation in any federal health care program.
“The payment of kickbacks in exchange for medical referrals undermines the integrity of our healthcare system. Today’s settlement reflects the Department of Justice’s commitment to ensuring that taxpayer monies are well spent and not wasted on unnecessary medical testing,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division.
“Healthcare fraud, in any incarnation, hurts patients, honest medical practitioners, and all of the nation’s taxpayers,” said United States Attorney Peter G. Strasser of the Eastern District of Louisiana. “The favorable resolution of this False Claims Act matter illustrates the collaborative efforts and firm commitment by our federal partners to use all available remedies, both civil and criminal, to address signs of waste and abuse by providers in our healthcare markets.”
The government alleged that between 2013 and 2017, UTC and its principals offered and paid remuneration to physicians to induce the ordering of pharmacogenetic tests, purportedly in return for their participation in a clinical trial known as the Diagnosing Adverse Drug Reactions Registry (DART), clinical trial identifier NCT01970709. The government also alleged that UTC and its principals offered and paid remuneration, including sales commissions, to entities and individuals as part of the scheme, and furnished pharmacogenetic tests that were not medically necessary and billed the Medicare program.
“The payment of cash and thinly-disguised referral bribes, as contended by the government, resulted in a more than $42 million dollar resolution in this case," said Special Agent in Charge CJ Porter of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Additionally, my agency barred RenRX from receiving any payments from federal health programs for a full 25 years. Genetic testing scams are becoming all too common. OIG has a genetic testing fraud alert here.”
The settlement announced today resolves allegations in six lawsuits pending in the United States District Court for the Eastern District of Louisiana: United States ex rel. Bergeron v. UTC Labs., LLC, et al., No. 16-15440 (E.D. La.); United States ex rel. McNeil v. Tarun Jolly, UTC Labs., LLC, et al., No. 14-2247 (E.D. La.); United States ex rel. Green & Lawson v. UTC Labs., LLC d/b/a Renaissance RX & Stone Surgical, LLC, No. 15-297 (E.D. La.); United States ex rel. Church v. UTC Labs., LLC d/b/a Renaissance RX, No. 15-877 (E.D. La.); United States ex rel. Outerbridge v. UTC Labs., LLC d/b/a Renaissance RX, No. 15-1445 (E.D. La.). The lawsuits were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act also allows the government to intervene and take over the action, as it did in these cases. The whistleblower shares to be awarded have not yet been determined.
The government’s resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services (HHS), at 800-HHS-TIPS (800-447-8477).
The investigation was conducted by the U.S. Attorney’s Office for the Eastern District of Louisiana and the Department of Justice’s Civil Division, in conjunction with the HHS-OIG and the FBI.
The claims resolved by the settlements are allegations only and there has been no determination of liability.
Genetic Testing Company and Three Principals Agree to Pay $42.6 Million to Resolve Kickback and Medical Necessity ClaimsRead the Press Release
WASHINGTON - The Justice Department announced today that UTC Laboratories, Inc. (RenRX) has agreed to pay $41.6 million, and its three principals, Tarun Jolly, M.D., Patrick Ridgeway, and Barry Griffith, have agreed to pay $1 million to resolve allegations that they violated the False Claims Act by paying kickbacks in exchange for laboratory referrals for pharmacogenetic testing and for furnishing and billing for tests that were not medically necessary. RenRX, a laboratory company headquartered in New Orleans, Louisiana, also agreed to a twenty-five year period of exclusion from participation in any federal health care program.
“The payment of kickbacks in exchange for medical referrals undermines the integrity of our healthcare system. Today’s settlement reflects the Department of Justice’s commitment to ensuring that taxpayer monies are well spent and not wasted on unnecessary medical testing,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division.
“Healthcare fraud, in any incarnation, hurts patients, honest medical practitioners, and all of the nation’s taxpayers,” said United States Attorney for the Eastern District of Louisiana Peter G. Strasser. “The favorable resolution of this False Claims Act matter illustrates the collaborative efforts and firm commitment by our federal partners to use all available remedies, both civil and criminal, to address signs of waste and abuse by providers in our healthcare markets.”
The government alleged that between 2013 and 2017, UTC and its principals offered and paid remuneration to physicians to induce the ordering of pharmacogenetic tests, purportedly in return for their participation in a clinical trial known as the Diagnosing Adverse Drug Reactions Registry (DART), clinical trial identifier NCT01970709. The government also alleged that UTC and its principals offered and paid remuneration, including sales commissions, to entities and individuals as part of the scheme, and furnished pharmacogenetic tests that were not medically necessary and billed the Medicare program.
“The payment of cash and thinly-disguised referral bribes, as contended by the government, resulted in a more than $42 million dollar resolution in this case, said Special Agent in Charge CJ Porter of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Additionally, my agency barred RenRX from receiving any payments from federal health programs for a full 25 years. Genetic testing scams are becoming all too common. OIG has a genetic testing fraud alert here.”
The settlement announced today resolves allegations in six lawsuits pending in the United States District Court for the Eastern District of Louisiana: United States ex rel. Bergeron v. UTC Labs., LLC, et al., No. 16-15440 (E.D. La.); United States ex rel. McNeil v. Tarun Jolly, UTC Labs., LLC, et al., No. 14-2247 (E.D. La.); United States ex rel. Green & Lawson v. UTC Labs., LLC d/b/a Renaissance RX & Stone Surgical, LLC, No. 15-297 (E.D. La.); United States ex rel. Church v. UTC Labs., LLC d/b/a Renaissance RX, No. 15-877 (E.D. La.); United States ex rel. Outerbridge v. UTC Labs., LLC d/b/a Renaissance RX, No. 15-1445 (E.D. La.). The lawsuits were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act also allows the government to intervene and take over the action, as it did in these cases.
The government’s resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services (HHS), at 800-HHS-TIPS (800-447-8477).
The investigation was conducted by the U.S. Attorney’s Office for the Eastern District of Louisiana and the Department of Justice’s Civil Division, in conjunction with the HHS-OIG and the FBI.
The cases are captioned United States ex rel. Bergeron v. UTC Labs., et al., No. 16-15440 (E.D. La.); United States ex rel. Treci McNeil v. Tarun Jolly, UTC Labs., LLC, et al., No. 14-2247 (E.D. La.); United States ex rel. Green & Lawson v. UTC Labs., LLC, et al., No. 15-297 (E.D. La.); United States ex rel. Church v. UTC Labs., LLC, d/b/a Renaissance RX, No. 15-877 (E.D. La.); and United States ex rel. Outerbridge v. UTC Labs., LLC, d/b/a Renaissance RX and Tarun Jolly, No. 15-1445 (E.D. La.). The claims resolved by the settlements are allegations only and there has been no determination of liability. The whistleblower shares to be awarded have not yet been determined.
Fresenius Agrees to Pay $5.2 Million to Resolve Allegations that it Overbilled Medicare for Hepatitis B TestsRead the Press Release
BOSTON – The United States Attorney’s Office announced today that Fresenius Medical Care Holdings, Inc., d/b/a Fresenius Medical Care North America, Inc., the largest operator of kidney dialysis clinics in the United States, has agreed to pay $5.2 million to resolve allegations that the company tested dialysis patients for Hepatitis B surface antigen more frequently than medically necessary and then billed Medicare for the unnecessary tests.
“Providers are expected to closely follow Medicare rules and bill properly — nothing more, nothing less,” said United States Attorney Andrew E. Lelling. “When that obligation is violated, government health care programs – and American taxpayers – pay the price. This settlement is an example of how whistleblowers and government can work together to recoup and deter overbilling practices.”
Patients suffering from End Stage Renal Disease (ESRD) and Chronic Renal Disease (CRD) require dialysis treatments 3-4 times a week because their kidneys no longer can perform some functions naturally. Because certain ESRD and CRD patients are at risk of contracting Hepatitis B, a virus-borne disease that affects the liver, Medicare established a testing frequency schedule for dialysis clinics to follow for reimbursement. The schedule depended on each patient’s immunity to Hepatitis B infection, as determined through the result of a Hepatitis B antibody test. The schedule provided for reimbursement of monthly Hepatitis B surface antigen tests for patients who were not immune, but Fresenius also conducted, and billed Medicare for, frequent tests of patients it knew to be immune between Feb. 10, 2003 and Dec. 31, 2010. In many cases, Fresenius performed and billed Medicare for these tests for immune patients against their treating physicians’ orders and without any accompanying documentation of medical necessity. These tests were not eligible for Medicare reimbursement under Medicare’s testing frequency schedule, and the government alleged that Fresenius’s bills for these tests were false.
A former employee of Fresenius, Christopher Drennen, brought these allegations through a whistleblower lawsuit. Under the qui tam provisions of the False Claims Act, private individuals, known as relators, can sue on behalf of the government for false claims and share in any recovery. In connection with today’s announced settlement, Mr. Drennen will receive 27.5% of the recovery.
U.S. Attorney Lelling and Phillip M Coyne, Special Agent in Charge of the Office of the Inspector General for the U.S Department of Health and Human Services made the announcement today. Assistant U.S. Attorneys Abraham George, Kriss Basil, Steven Sharobem, Jessica Weber, and Christine Wichers handled the case.
Fort Wayne Man Sentenced to 120 Months in PrisonRead the Press Release
FORT WAYNE – Juan Williams, age 31, of Fort Wayne, Indiana was sentenced before U.S. District Court Judge Holly A. Brady upon his plea of guilty to possession with intent to distribute fentanyl and possessing a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Kirsch.
Williams was sentenced to 120 months in prison followed by 4 years of supervised release.
According to documents in this case, in September 2017, Mr. Williams distributed fentanyl to a confidential informant. In October 2017, officers searched the residence of Mr. Williams and his co-defendant and located more than 40 grams of fentanyl and a .40 caliber handgun, among other evidence.
The case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Fort Wayne Police Department. The case was handled by Assistant United States Attorney Anthony Geller.
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Former New Haven Resident Charged with Possessing Child PornographyRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Jason J. Molina, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), announced that a federal grand jury in Hartford returned an indictment today charging MICHELLE LYNN GSCHLECHT, formerly known as RICHARD GSCHLECHT, 49, last residing in New Haven, with possession of child pornography.
As alleged in the indictment, Gschlecht knowingly possessed child pornography on July 31, 2019. Gschlecht was previously convicted in state court of possession of child pornography and sexual assault in the first degree.
If convicted, Gschlecht faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of 20 years. The penalties in this matter are enhanced based on Gschlecht’s alleged criminal history.
Gschlecht has been detained since her arrest on a state probation violation on July 31, 2019.
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 U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and the New Haven Police Department, with the assistance of the Connecticut’s Office of Adult Probation. The case is being prosecuted by Nancy V. Gifford.
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.
Former Georgia CEO indicted for multi-million dollar investment fraud schemeRead the Press Release
ATLANTA –James Torchia has been indicted for running a fraud scheme that caused investors to spend over $40 million on his company’s promissory notes.
“Torchia is alleged to have stolen investors’ hard-earned money by lying to them about the security of their investments and how he would use their money,” said U.S. Attorney Byung J. “BJay” Pak. “It is important that investors thoroughly investigate who they are investing with before committing any of their hard-earned savings.”
“The harm that can be caused by greed and the false promise of safe investments can be devastating,” said Special Agent in Charge Chris Hacker of the FBI Atlanta field office. “By disrupting this alleged scheme, the FBI has demonstrated our commitment to aggressively pursue those engaged in acts of financial fraud.”
According to U.S. Attorney Pak, the charges, and other information presented in court: James Torchia was the CEO of a Georgia company named Credit Nation. Credit Nation purchased life insurance policies and subprime automobile loans and offered investors the opportunity to purchase promissory notes for those policies and loans. Torchia solicited investments in Credit Nation “promissory notes” that offered a 9% rate of return and that were purportedly “100% asset-backed” and “backed by hard asset dollar for dollar.” However, when making these representations, Torchia knew that these investments were not backed by hard assets “dollar for dollar” as Credit Nation had actually been operating at a significant financial loss. Torchia also allegedly lied to investors about how their funds would be used and diverted investors’ funds for undisclosed purposes.
The indictment further alleges that even after Torchia’s own forensic accountant produced a report to him showing that Credit Nation did not have sufficient assets to cover all outstanding promissory notes, Torchia continued to provide false information about the security of the promissory notes and the use of investors’ funds. All told, investors spent over $40 million on Credit Nation’s promissory notes.
In November 2015, the U.S. Securities and Exchange Commission (“SEC”) filed a federal civil complaint alleging that Credit Nation investors had been defrauded out of millions of dollars. Torchia allegedly sent a letter to investors refuting the SEC’s allegations. The letter also referenced steps that the company had taken during the SEC investigation, which included “hir[ing] a forensic accountant to assist the SEC with its understanding of our business operations and assets. All of this was to no avail.” The letter, however, failed to disclose that the forensic accountant’s report confirmed that Credit Nation could not pay back all of its investors.
James Torchia, 61, of Canton, Georgia was arraigned today before U.S. Magistrate Judge Catherine M. Salinas.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This Federal Bureau of Investigation is investigating this case. The Atlanta Division Office of the U.S. Securities and Exchange Commission previously brought a civil action against Torchia and Credit Nation in the Northern District of Georgia.
Assistant U.S. Attorneys Thomas J. Krepp and Leanne M. Marek are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga
Former Fort Peck tribal law enforcement officer sentenced for theft, tax evasionRead the Press Release
GREAT FALLS—An ex-law enforcement officer for the Fort Peck Tribes was sentenced today to six months in prison, two years of supervised release and ordered to pay restitution and back taxes for stealing $40,000 from a tribal program intended to help youth, U.S. Attorney Kurt Alme said.
Willard Wilson White III, 44, of Glasgow, pleaded guilty in June to wire fraud and to income tax evasion.
U.S. District Judge Brian M. Morris presided. Judge Morris also ordered White to pay $40,000 restitution to the tribes and $18,050 to the IRS.
“Mr. White’s illegal actions violated the trust placed in him as a law enforcement officer, hurt the youth of the Fort Peck Tribes and all taxpayers. Today’s sentencing sends the message that not only will those who steal from our tribes and federal government be disgorged of their profits, but they also will go to prison,” U.S. Attorney Alme said.
The prosecution said in court records that White was employed as a law enforcement officer for the Fort Peck Tribes. In June 2015, White approached the tribe’s Law and Justice Committee with a proposal to create a facility and programs to help troubled youth. White said he needed $40,000 to establish the proposed Family Justice Center. White posted about the project on Facebook.
White spent the money in less than 30 days and provided no services to the Fort Peck Tribes. Bank records indicated that White had $32.39 in his bank account before depositing the tribe’s money. The day of the deposit, White went to Williston, N.D., and withdrew $305 from his account at an ATM at Whisper’s, which is a local strip club. White continued spending money at retail stores and also bought a Jeep. In addition, White withdrew more than $11,000 in cash in less than three weeks.
Various tribal members saw White posting on Facebook and spending the money and instructed White to return the leftover money. White never did.
The investigation also showed that White omitted on a 2015 tax return the $40,000 of income from the tribes. He also claimed child dependents he was not entitled to claim to obtain a $5,860 refund while paying nothing in federal taxes. White’s tax evasion efforts resulted in him owing $10,184 to the IRS.
Assistant U.S. Attorneys Ryan Weldon and Karla Painter prosecuted the case, which was investigated by the Fort Peck Tribes, the Department of Interior’s Office of Inspector General and IRS Criminal Investigation.
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Former City Councilman Adam McFadden Pleads Guilty to New ChargesRead 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 Adam C. McFadden pleaded guilty before U.S. District Judge Elizabeth A. Wolford to wire fraud. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine. On April 1, 2019, McFadden previously pleaded guilty to unrelated wire and tax fraud charges.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that the defendant was the executive director of Quad A for Kids. Founded in 1994, Quad A for Kids provides after-school and extended-day learning programs at some Rochester City School District elementary schools. The four A’s in Quad A for Kids represent the well-rounded programming it delivers to the students: academics, athletics, arts, and achievement. Quad A for Kids operates as a separate entity funded through the Rochester Area Community Foundation Initiatives Inc. (RACF).
The defendant was the Executive Director for Quads A for Kids between 2004 and 2014. From 2014 to September 2016, McFadden served as an independent contractor for Quad A for Kids. From September 2016 until 2019, the defendant returned to his position as the Executive Director of Quad A for Kids.
Between February 2012 and December 2018, McFadden submitted fraudulent invoices and receipts to the RACF for reimbursements in the approximate amount of $131,163.00. The funds were used, in part, for the defendant’s personal benefit, including to pay personal debts. Specifically, McFadden created fraudulent invoices purportedly from: an individual for various computer and IT related services that were never provided; an entity that provided various sports, fitness and related products and services; entities that provided grant writing and related services; and Amazon, Walmart and Staples. After the submission of the fraudulent invoices, the RACF reimbursed the defendant personally or paid the various entities used by the defendant. The entities then used the money to pay debts owed by the defendant.
In addition, in August 2017 and February 2018, the defendant created fraudulent $4,000.00 invoices from the North East Area Development Association (NEAD) to Quad A for Kids, purportedly for training services provided by NEAD to Quad A for Kids. Although the training services were never performed by NEAD, McFadden caused Quad A for Kids to pay NEAD $8,000.00. NEAD then fraudulently paid the defendant $7,000.00 of the $8,000.00 that NEAD had fraudulently received.
“This defendant previously pleaded guilty to defrauding Rochester Housing Charities, and with today’s plea, he now stands convicted of defrauding yet another not-for-profit agency,” stated U.S. Attorney Kennedy. “While these not-for-profits were created to serve the economically disadvantaged and the youth of our community—defendant diverted funds away from those in need in our community and into his own pocket. That he would do so while serving as a Rochester City Councilman is particularly egregious, as such behavior is more consistent with that of a public parasite than it is of a public servant.”
The plea is the result of an investigation by the Federal Bureau of Investigation, Rochester Office, under the direction of Special Agent-in-Charge Gary Loeffert; the Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent-in-Charge Brad Geary; and the Internal Revenue Service, Criminal Investigations Division, under the direction of Jonathan D. Larsen, Special Agent-in-Charge, New York Field Office.Sentencing is scheduled for February 12, 2020, at 3:00 p.m. before Judge Wolford.
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Former Bordentown Township Police Chief Guilty of Lying to FBIRead the Press Release
CAMDEN, N.J. – The retired chief of the Bordentown Township Police Department was convicted today of lying to FBI agents who were questioning him about violating an 18-year-old man’s civil rights during an arrest; the jury will return to court tomorrow to resume deliberations on the hate crime and civil rights counts, U.S. Attorney Craig Carpenito announced.
Frank M. Nucera Jr., 62, of Bordentown, New Jersey, was convicted of one count of making false statements to FBI agents who were interviewing him about an arrest that occurred Sept. 1. 2016. Nucera is also charged by indictment with one count of hate crime assault and one count of deprivation of civil rights under color of law; the jury will return to court tomorrow to continue deliberating on those counts.
According to documents filed in this case and the evidence at trial:
On Sept. 1, 2016, two Bordentown Township police officers responded to a phone call from the Bordentown Ramada, complaining that two teenagers had stayed in a room at the hotel without paying. The teens were listed in the complaint as “Civilian 1,” an 18-year-old African American teenager, and “Civilian 2,” a 16-year-old African American girl. After the officers arrived and questioned the teenagers, the situation allegedly escalated into a physical confrontation, with both teens attempting to resist arrest. The officers called for backup, and numerous officers, including then-Chief Nucera, arrived on the scene.
After Civilian 1 was handcuffed and was being escorted out of the hotel by police, Nucera allegedly approached him from behind and slammed the man’s head into a metal doorjamb. During a video recorded interview by FBI special agents, Nucera falsely stated multiple times that he did not touch Civilian 1 during the arrest.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s conviction.
The remaining two counts of the indictment on which Nucera was tried are merely accusations, and he remains innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorney Molly S. Lorber and Senior Trial Counsel R. Joseph Gribko of the Office’s Criminal Division.
Felon Pleads Guilty to Possessing Firearm and AmmunitionRead 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 Angel Gonzalez-Reyes, 27, of Rochester, NY, pleaded guilty today before U.S. District Judge Elizabeth A. Wolford to being a felon in possession of a firearm and ammunition. The charge carries a maximum penalty of 10 years in prison, and a fine of $250,000, or both.
Assistant U.S. Attorney Charles Moynihan, who is handling the case, stated that Gonzalez-Reyes was arrested on June 15, 2019, after New York State Police troopers attempted a routine traffic stop of a car the defendant was driving in Rochester. Gonzalez-Reyes drove away from the troopers and a chase ensued. The defendant crashed his car into the yard of a house on Kohlman Street and ran before being apprehended by Rochester Police Department officers in the area. While searching the car, officers found a .40 caliber semiautomatic pistol along with ammunition for the handgun.
Gonzalez-Reyes was convicted in United States District Court in Puerto Rico in 2013 of conspiracy to possess with intent to distribute cocaine. As a result, he is legally prohibited from possessing a firearm and ammunition.
The matter was brought by the United States Attorney’s Office as part of its Project Safe Neighborhoods (PSN) initiative. 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.The plea is the result of an investigation by the New York State Police, under the direction of Major Eric Laughton; the Rochester Police Department, under the direction of Chief La’Ron Singletary; and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
Sentencing is scheduled for January 22, 2020, at 1:00 p.m. before Judge Wolford.
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Federal Jury Finds Pharmacy Shooter GuiltyRead the Press Release
NASHVILLE, Tenn. – October 9, 2019 – Dionte Breedlove, 25, of Nashville, was found guilty yesterday of robberies affecting interstate commerce and using a firearm during and in relation to crimes of violence, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
The verdicts were the result of a week-long trial in U.S. District Court where Breedlove was tried for participating in the robberies of the Rite Aid Pharmacy on West End Avenue in Nashville on September 14, 2017, and again on October 9, 2017, during which he shot an unarmed security guard.
Breedlove, along with Carlos Valcarcel-Arocho, 23, also of Nashville, were both charged in August 2018, after an investigation into the robberies determined that Valcarcel-Arocho, an employee of Rite-Aid, was present during each robbery and participated by texting Breedlove when the time was right for him to enter the store. Valcarcel-Arocho posed as a victim during each robbery and helped stuff cash into a bag after opening the safe and cash registers. The investigation also determined that Breedlove and Valcarcel-Arocho had been acquainted for several years. A search warrant later executed at Valcarcel-Arocho’s apartment uncovered several items connected to the robbery. Valcarcel-Arocho pleaded guilty to the charges in June.
During the October 2017 robbery, Breedlove pointed a gun at two employees, including Valcarcel-Arocho, and ordered them to put cash into a bag. The unarmed security guard stood nearby with his arms behind his head. Breedlove then shot him in the chest at close range and held the gun to the back of the head of the other employee while threatening him. The security guard underwent emergency surgery and was hospitalized for several weeks. Doctors were unable to remove a bullet that remains lodged in his spine.
Breedlove faces a mandatory minimum sentence of 17 years, and up to life in prison. Valcarcel-Arocho faces seven years, up to life in prison. Both will be sentenced in February 2020.
This case was investigated by the FBI and the Metropolitan Nashville Police Department. Assistant U.S. Attorneys Philip H. Wehby and Sunny A.M. Koshy prosecuted the case.
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Erie Residents Charged in Bank Fraud Scheme that Used the Homeless to Cash Stolen ChecksRead the Press Release
ERIE, Pa. – Two former residents of Erie, Pennsylvania have been indicted by a federal grand jury in Erie on charges of conspiracy and bank fraud, United States Attorney Scott W. Brady announced today.
The seven-count indictment named Victor Keenan Lemmons, 33 and Jasmine Nicole Carter, 30, as defendants.
According to the indictment presented to the court, from in and around August 2015, to in and around September 2018, Lemmons and Carter engaged in a scheme where they stole checks from the mail and used homeless people with valid identification to cash the checks. The defendants removed the legitimate name from the checks and replaced them with the homeless persons’ name.
The law provides for a maximum total sentence of 210 years in prison and a fine of $7,000,000 for both defendants. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Pennsylvania State Police, the Erie Police Department and the Millcreek Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Drug Runner Apprehended with Seven Kilos of Methamphetamine Sentenced in Federal Court to Ten Years in PrisonRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that United States District Court Judge Terry F. Moorer sentenced Du Minh Tran on October 4, 2019 to serve a term of imprisonment of 120 months followed by 5 years of supervised release for Conspiracy to Possess with the Intent to Distribute Methamphetamine in violation of 21 USC § 846 and Possession with Intent to Distribute Methamphetamine in violation of 21 USC § 841. The defendant previously entered a guilty plea with the Court on May 23, 2019.
Court documents filed in connection with his guilty plea establish that on November 29, 2018, the defendant Du Minh Tran and his co-defendant, Tadd Gobert, were en route to Mobile, Alabama when they were stopped in Covington, Louisiana for a traffic violation. At that time, Tran and Gobert were returning from picking up methamphetamine from a source of supply in Texas. Tran and Gobert had approximately seven kilograms of pure methamphetamine in their possession when they were stopped. Subsequently, Tran admitted to the authorities that he traveled to Texas on two occasions with Gobert to pick up methamphetamine.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations, and the Mobile Police Department Tactical Intelligence Unit. The case was prosecuted by Deputy Criminal Chief, Assistant United States Attorney George F. May.
District Man Sentenced to 10 Years in Prison for Possessing Multiple Firearms While Trafficking NarcoticsRead the Press Release
WASHINGTON – Kevin Fields, 38, of Southeast, D.C., was sentenced yesterday to 10 years in prison for possessing multiple firearms in furtherance of his drug trafficking, announced U.S. Attorney Jessie K. Liu, Peter Newsham, Chief of the Metropolitan Police Department (MPD), and Timothy M. Dunham, Special Agent in Charge, Criminal Division, FBI Washington Field Office.
Fields pled guilty in July 2019 before the Honorable Paul L. Friedman in the U.S. District Court for the District of Columbia to one count of possession of a firearm in furtherance of a drug trafficking offense. Judge Friedman sentenced Fields to ten years in prison to be followed by five years of supervised release.
According to the government’s evidence, on February 9, 2019, MPD officers executed a search warrant at Fields’ residence located in the 1900 block of Naylor Road, Southeast. After entering the apartment, MPD officers located Fields in the back bedroom. In that same room, officers located three loaded firearms, a Glock 21 .45 caliber firearm, a Ruger LC95 9mm caliber firearm, and an Intratec AB-10 firearm. An additional magazine with ammunition was also recovered. Law enforcement also discovered crack cocaine, heroin, multiple digital scales, razor blades, extensive drug packaging material, and U.S. currency in the residence. As part of his plea agreement, Fields acknowledged that all three firearms belonged to him and that he possessed them in furtherance of his drug trafficking. As part of the government’s investigation, the FBI assisted law enforcement by investigating the history of the firearms and their connection to other crimes committed in the District.
When Fields was arrested for trafficking narcotics and possessing firearms in the present case, he was on supervision with the U.S. Parole Commission following a 2012 D.C. Superior Court felony drug trafficking conviction. Fields now faces formal revocation of his supervised release and additional incarceration, separate from the above-referenced sentence, from the U.S. Parole Commission. Fields also had a prior 2002 D.C. Superior Court conviction for assault with intent to kill, where he was incarcerated for twelve years.
This case was investigated in support of the Felon in Possession initiative, a joint partnership between MPD and federal law enforcement agencies including the FBI Washington Field Office, ATF, and the U.S. Attorney’s Office, District of Columbia, in an effort to reduce gun violence within the District of Columbia.
In announcing the sentence, U.S. Attorney Liu, Chief Newsham, and Special Agent in Charge Dunham, commended the work of those who investigated the case. They also cited the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Paralegal Specialist Candace Battle, Legal Assistant Peter Gaboton, and Assistant U.S. Attorney Christopher Macchiaroli of the Violent Crime and Narcotics Section, who conducted the underlying investigation, indicted the case, and prosecuted the defendant.
Defense Intelligence Agency Employee Arrested for Leaking Classified Information to JournalistsRead the Press Release
ALEXANDRIA, Va. – An employee of the Defense Intelligence Agency (DIA) was arrested today on charges related to his alleged disclosure of classified national defense information (NDI) to two journalists in 2018 and 2019.
“Henry Kyle Frese was entrusted with TOP SECRET information related to the national defense of our country,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Frese allegedly violated that trust, the oath he swore to uphold, and is charged with engaging in dastardly and felonious conduct at the expense of our country. This indictment should serve as a clear reminder to all of those similarly entrusted with National Defense Information that unilaterally disclosing such information for personal gain, or that of others, is not selfless or heroic, it is criminal.”
Henry Kyle Frese, 30, of Alexandria, is a DIA employee and holds a Top Secret//Sensitive Compartmented Information U.S. government security clearance. According to court documents, between mid-April and early May 2018, Frese allegedly accessed classified intelligence reports, some of which were unrelated to his job duties, and provided TOP SECRET information regarding a foreign country’s weapons systems to a journalist (Journalist 1).
According to court documents, Frese and Journalist 1 had the same residential address from August 2017 through August 2018 and, based on reviews of Frese’s and Journalist 1’s public social media pages, it appears that they were involved in a romantic relationship for some or all of that period of time. The unauthorized disclosure of TOP SECRET information could reasonably be expected to cause exceptionally grave harm to the national security of the United States.
“As laid out in today’s indictment, Frese was caught red-handed disclosing sensitive national security information for personal gain,” said Assistant Attorney General for National Security John C. Demers. “Frese betrayed the trust placed in him by the American people—a betrayal that risked harming the national security of this country. This is one of six unauthorized disclosure cases the Department has charged in just over two years, and we will continue in our efforts to punish and deter this behavior.”
According to the indictment, a week after Frese accessed one of the intelligence reports (Intelligence Report 1) for the second time, Journalist 1 wrote to Frese on April 27, 2018, and asked whether he would be willing to speak with another journalist (Journalist 2). Frese stated that he was “down” to help Journalist 2 if it helped Journalist 1 because he wanted to see Journalist 1 “progress.”
As alleged, in that same communication, Frese and Journalist 1 also discussed a story that Journalist 1 was working on, the subject matter of which was the topic of Intelligence Report 1. Several days after that communication, Frese searched on a classified United States government computer system for terms related to the topics contained in Intelligence Report 1. According to the indictment, in the hours after searching for terms related to the topic of Intelligence Report 1, Frese spoke by telephone with both Journalist 1 (twice) and Journalist 2, and within approximately a half hour after Frese’s conversations with the two journalists, Journalist 1 published an article (Article 1) through News Outlet 1, which contained NDI from Intelligence Report 1 classified at the TOP SECRET//SCI level.
“Mr. Frese allegedly disclosed highly classified national defense information, which puts our country and people at risk,” said Alan E. Kohler Jr., Special Agent in Charge of the FBI's Washington Field Office Counterintelligence Division. “He violated his oath to serve and protect the United States. The men and women of the FBI work hard every day to protect the American people and uphold the Constitution - we will not stand by while trusted government employees violate that trust in such an egregious way.”
In addition, as alleged in the indictment, on Sept. 24, 2019, Frese was captured on court-authorized surveillance of his cell phone orally transmitting classified NDI to Journalist 2. These disclosures contained NDI classified at the SECRET level, meaning that the unauthorized disclosure of the information could reasonably be expected to cause serious harm to the national security of the United States.
A federal grand jury returned an indictment yesterday charging Frese with two counts of willful transmission of national defense information to persons not entitled to receive it. If convicted, he faces a maximum penalty of 10 years in prison on each count. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorney Danya E. Atiyeh and Trial Attorney Jennifer Kennedy Gellie of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-304.
Defense Intelligence Agency Employee Arrested for Leaking Classified Information to JournalistsRead the Press Release
An employee of the Defense Intelligence Agency (DIA) was arrested today on charges related to his alleged disclosure of classified national defense information (NDI) to two journalists in 2018 and 2019.
“As laid out in today’s indictment, Frese was caught red-handed disclosing sensitive national security information for personal gain,” said Assistant Attorney General for National Security John C. Demers. “Frese betrayed the trust placed in him by the American people—a betrayal that risked harming the national security of this country. This is one of six unauthorized disclosure cases the Department has charged in just over two years, and we will continue in our efforts to punish and deter this behavior.”
Henry Kyle Frese, 30, of Alexandria, is a DIA employee and holds a Top Secret//Sensitive Compartmented Information U.S. government security clearance. According to court documents, between mid-April and early May 2018, Frese allegedly accessed classified intelligence reports, some of which were unrelated to his job duties, and provided TOP SECRET information regarding a foreign country’s weapons systems to a journalist (Journalist 1). According to court documents, Frese and Journalist 1 had the same residential address from August 2017 through August 2018 and, based on reviews of Frese’s and Journalist 1’s public social media pages, it appears that they were involved in a romantic relationship for some or all of that period of time. The unauthorized disclosure of TOP SECRET information could reasonably be expected to cause exceptionally grave harm to the national security of the United States.
According to the indictment, a week after Frese accessed one of the intelligence reports (Intelligence Report 1) for the second time, Journalist 1 wrote to Frese on April 27, 2018, and asked whether he would be willing to speak with another journalist (Journalist 2). Frese stated that he was “down” to help Journalist 2 if it helped Journalist 1 because he wanted to see Journalist 1 “progress.”
As alleged, in that same communication, Frese and Journalist 1 also discussed a story that Journalist 1 was working on, the subject matter of which was the topic of Intelligence Report 1. Several days after that communication, Frese searched on a classified United States government computer system for terms related to the topics contained in Intelligence Report 1. According to the indictment, in the hours after searching for terms related to the topic of Intelligence Report 1, Frese spoke by telephone with both Journalist 1 (twice) and Journalist 2, and within approximately a half hour after Frese’s conversations with the two journalists, Journalist 1 published an article (Article 1) through News Outlet 1, which contained NDI from Intelligence Report 1 classified at the TOP SECRET//SCI level.
In addition, as alleged in the indictment, on Sept. 24, 2019, Frese was captured on court-authorized surveillance of his cell phone orally transmitting classified NDI to Journalist 2. These disclosures contained NDI classified at the SECRET level, meaning that the unauthorized disclosure of the information could reasonably be expected to cause serious harm to the national security of the United States.
“Henry Kyle Frese was entrusted with TOP SECRET information related to the national defense of our country,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Frese allegedly violated that trust, the oath he swore to uphold, and is charged with engaging in dastardly and felonious conduct at the expense of our country. This indictment should serve as a clear reminder to all of those similarly entrusted with National Defense Information that unilaterally disclosing such information for personal gain, or that of others, is not selfless or heroic, it is criminal.”
"Mr. Frese allegedly disclosed highly classified national defense information, which puts our country and people at risk," said Alan E. Kohler Jr., Special Agent in Charge of the FBI's Washington Field Office Counterintelligence Division. "He violated his oath to serve and protect the United States. The men and women of the FBI work hard every day to protect the American people and uphold the Constitution - we will not stand by while trusted government employees violate that trust in such an egregious way."
A federal grand jury returned an indictment yesterday charging Frese with two counts of willful transmission of national defense information to persons not entitled to receive it. If convicted, he faces a maximum penalty of 10 years in prison on each count. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorney Danya E. Atiyeh and Trial Attorney Jennifer Kennedy Gellie of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Defendants in drug conspiracy, firearms crimes get total sentences of more than 400 months in prisonRead the Press Release
SAVANNAH, GA: Three Savannah men will spend a total of nearly 34 years in federal prison after sentencing for a drug trafficking conspiracy and firearms crimes discovered after a high-speed chase with Georgia state troopers.
Amari Jermaine Sams, a/k/a/ “Face”, 37, of Savannah, was sentenced to 200 months in prison by U.S. District Court Judge R. Stan Baker, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Sams was convicted in July after a three-day jury trial for Conspiracy to Possess With Intent Distribute 50 grams or more of Methamphetamine and a quantity of Cocaine and Marijuana; Possession With Intent to Distribute 50 grams or more of Methamphetamine and a quantity of Cocaine and Marijuana; Possession of a Firearm by a Prohibited Person; Possession of a Stolen Firearm; and Possession of a Firearm in Furtherance of a Drug Trafficking Crime.
Also sentenced were Sams’ co-conspirators, Hakeem Campbell, 28, of Savannah, sentenced to 120 months in prison after pleading guilty to Possession with Intent to Distribute 50 Grams or More of Methamphetamine and a Quantity of Cocaine and Marijuana; and Jovonn Brisbon, 31, of Savannah, sentenced to 86 months in prison after pleading guilty to Conspiracy to Possess with Intent to Distribute Methamphetamine, Cocaine and Marijuana and Possession of a Firearm by a Convicted Felon. All three will be subject to terms of supervised release after completion of their incarceration, and there is no parole in the federal system.
“Our community is automatically a safer place today because three violent drug traffickers are off of our streets,” said U.S. Attorney Christine. “We’re grateful that our state troopers safely ended their reckless attempt to flee from justice, and applaud the work of our law enforcement partners and prosecutors in slamming the door on these dangerous felons.”
According to evidence presented in court documents and proceedings, on the morning of April 22, 2018, Sams, Brisbon and Campbell stole a Ford F-150 from the Savannah Airport and fled from Georgia State Patrol officers at speeds up to 120 mph. During the pursuit, a stolen Glock 40 firearm was thrown from the vehicle and later recovered. State troopers forced the vehicle to a stop and apprehended Brisbon and Campbell, and Savannah Police Department officers captured Sams hiding in a creek parallel to I-516. A search of the stolen vehicle yielded approximately 75 grams of methamphetamine, and inside a book bag found next to the vehicle officers found a stolen Springfield XD .45 caliber pistol, approximately 1 pound of marijuana, 29 grams of cocaine, scales and baggies. The occupants had more than $4,000 cash combined.
“This case is an example of the partnership between ATF and its local partners to investigate the perpetrators of violent crime,” said Beau Kolodka, Assistant Special Agent in Charge of the Atlanta Field Division of the Bureau of Alcohol, Firearms, Tobacco and Explosives (ATF). “These sentences will ensure the incarceration of three dangerous criminals and contribute to the restoration of order and peace in Savannah.”
“Law enforcement is a collaborative effort, as this case highlights,” said Everett Ragan, Chatham-Savannah County Narcotics Team (CNT) Director. “I am thankful for our partnerships and even more thankful our streets are now safer.”
“When criminals flee, it always adds an additional level of danger to the job a law enforcement officer performs,” said Lt. Stephanie Stallings, Public Information Director, Georgia State Patrol. “The Georgia State Patrol is proud to have well-trained troopers to assist when duty calls. It is an honor to take part in putting these criminals behind bars.”
This case was investigated by the ATF and CNT, along with the Savannah Police Department and the Georgia State Patrol. The case was prosecuted for the United States by Assistant U.S. Attorneys Joshua Bearden and Frank Pennington.
Cleveland man pleads guilty to selling drugs that resulted in fatal overdose inside downtown hotel last yearRead the Press Release
A Cleveland man pleaded guilty to selling drugs that resulted in a fatal overdose of a man inside a hotel in downtown Cleveland last year.
Terry Lee Christian, 36, was indicted Wednesday on one count of distribution of controlled substances, which included a sentencing enhancement for causing death. He is scheduled to be sentenced January 17, 2020.
Christian admitted to causing the death of a person identified in court papers as S.K. on July 13.
“This case demonstrates yet again that there are no safe street drugs, and the drug dealers who sell them, like this defendant, are focused only on their own interests,” U.S. Attorney Justin Herdman said. “By all accounts, the victim in this case believed he was buying cocaine, not fentanyl. People should assume that the cocaine they are buying on the street contains fentanyl and can kill them, even in small doses. Unfortunately the victim in this case is just one of hundreds who have died from cocaine and fentanyl mixes in Cuyahoga County since last year.”
“This case highlights the collaboration between the Cleveland Division of Police Heroin Death Investigators, the Drug Enforcement Administration, the Cuyahoga County Regional Forensic Science Laboratory and the Northern Ohio United States District Attorney’s Office,” said Cleveland Police Chief Calvin D. Williams. “The indictment of Mr. Christian should serve as an example to those trafficking in these dangerous and deadly narcotics. Through thorough investigations and the efforts of the attorneys who prosecute the cases, these criminals can be held accountable at the highest level.”
DEA Special Agent in Charge Keith Martin said: “This death underscores the seriousness of the opioid crisis plaguing northern Ohio and the need for dedicated collaboration from law enforcement. The DEA, Cleveland Division of Police and the United States Attorney’s Office will continue to expend our time, energy and resources in an effort to stem the tide against this epidemic.”
Members of the Cleveland Division of Police’s Heroin Involved Death Investigations Unit responded to a drug overdose at a hotel room in Cleveland on July 14, 2018. Officers observed a bag of suspected cocaine on the dresser and suspected cocaine residue on the dresser and bathroom vanity, according to an affidavit filed in the case.
The narcotics were tested and found to be a mixture of heroin, cocaine and fentanyl. The packaging material was tested and DNA found on the package matched Christian, according to the affidavit.
A review of the victim’s phone and other evidence revealed the man who overdosed met with Christian on July 13 and several calls between them on that day. Shortly after the calls and meeting, the man who overdosed made a hand-to-hand transaction with someone in a minivan, according to the affidavit.
The Cleveland Division of Police and Drug Enforcement Administration investigated the case. Assistant U.S. Attorneys Vasile Katsaros and Kathryn Andrachik are prosecuting the case.
Citizen of Singapore indicted in scheme to steal cloud computing power for cryptocurrency miningRead the Press Release
Seattle - A 14-count indictment was unsealed today charging a citizen of Singapore, HO JUN JIA, a/k/a Matthew Ho, 29, with federal crimes related to his scheme to mine cryptocurrencies using stolen computing power and services, obtained with the stolen identity and credit card account information of California and Texas residents, announced U.S. Attorney Brian T. Moran. HO was taken into custody by the Singapore Police Force on September 26, 2019, and is being investigated for various alleged offenses committed under Singapore law.
According to the indictment, between October 2017 and February 2018, following the surge in popularity, and value, of cryptocurrencies, HO ran a large-scale cryptocurrency mining operation, propelled predominantly, if not exclusively, through fraud and identity theft. HO, allegedly used stolen identity and credit card information of a prominent California video-game developer to open cloud computing accounts at multiple U.S. cloud service providers, which he used to mine various cryptocurrencies, such as Bitcoin and Ethereum. HO created a web of phony email accounts and used social engineering techniques to trick cloud computing providers to approve heightened account privileges, increased computer processing power and storage, and deferred billing.
HO used the fraudulently obtained computing power to mine cryptocurrency – a resource-intensive process by which “miners” essentially compete to verify blockchain transactions and receive an amount of cryptocurrency in return. HO then used the cryptocurrency or exchanged it for traditional funds on various marketplace websites. In the few months his scheme remained active, HO consumed more than $5 million in unpaid cloud computing services with his mining operation and, for a brief period, was one of Amazon Web Services (AWS) largest consumers of data usage by volume. Some of the bills were paid by the California game developer’s financial staff before the fraud was detected. HO also used the identities of a Texas resident and the founder of a tech company in India and, in addition to AWS, opened cloud services accounts with Google Cloud Services, which he similarly used as part of his cryptocurrency mining operation.
Wire fraud is punishable by up to 20 years in prison. Access device fraud is punishable by up to ten years in prison. Aggravated identity theft is punishable by a mandatory two years in prison to run consecutive to any other sentence imposed in the case.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI Seattle Office, Cyber Crime Unit, with assistance from the Singapore Police Force - Technology Crime Investigation Branch, the Attorney General’s Chambers of Singapore, the U.S. Department of Justice’s Criminal Division’s Office of International Affairs, and the FBI Legal Attaché Office.
The case is being prosecuted by Assistant United States Attorney Steven Masada.
ho_indictment.pdfChinese national faces federal charges of smuggling goods from United States and violating export control lawsRead the Press Release
ALBUQUERQUE, N.M. – Pengyi Li, 33, of Guangdong, China, appeared in federal court on Monday for arraignment on an indictment charging him with two counts of smuggling goods from the United States and two counts of violating the Export Control Reform Act.
A federal grand jury returned the indictment on August 29. It accuses Li of committing the offenses between May 30 and August 22. According to the indictment, Li allegedly attempting to export radiation-hardened drivers and microchips to China without obtaining a license and authorization from the Department of Commerce. According to a criminal complaint, Li’s illegal conduct allegedly included communicating with an undercover agent in New Mexico. The complaint also accuses Li of traveling from China to Hawaii to obtain the items and transport them back to China by airplane. However, the complaint further alleges that law enforcement officers arrested Li before he could leave the United States with the items.
Li appeared for his arraignment after being transported to New Mexico from Hawaii where agents from Homeland Security Investigations (HSI) arrested him on August 22. He is currently in custody awaiting placement at a halfway house. Li faces up to 10 years in prison if convicted of the smuggling offense and up to 20 years in prison if convicted of violating export control laws. An indictment is only an allegation. A defendant is presumed innocent until proven guilty.
HSI investigated this case with assistance from the Department of Commerce, Bureau of Industry and Security, FBI and U.S. Customs and Border Protection. Assistant U.S. Attorney Jon Stanford is prosecuting the case.
Burneyville Man Sentenced to 30 Months for Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jacob Rhett Holland, age 26, of Burneyville, Oklahoma, was sentenced to 30 months’ imprisonment and 3 years of supervised release for Felon In Possession Of Firearm. The charges arose from an investigation by the Oklahoma Department of Wildlife and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Information alleges that on or about March 10, 2019, in the Eastern District of Oklahoma, the Defendant, who had been convicted of a crime punishable by imprisonment for a term exceeding one year, knowingly possessed in and affecting commerce, a firearm, an SKS 7.62 x 39 mm caliber semi-automatic rifle, serial number 023245, which had been shipped and transported in interstate commerce.
United States Attorney Brian J. Kuester said, “Federal law prohibits previously convicted felons from possessing guns. Enforcing federal firearm statutes is an effective way to assist state and local law enforcement agencies in their ongoing efforts to combat and reduce violent crime. We are committed to continuing our relationships with those agencies and the use of federal resources to help carry out our top priority – protecting the public.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Dean Burris represented the United States.Buffalo Woman Indicted for Scheming to Defraud Hurricane VictimsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned a 33-count indictment charging Keonna Davis, 32, of Buffalo, NY, with wire fraud, mail fraud, and aggravated identity theft. The charges carry a maximum penalty of 20 years in prison and a $500,000 fine.
Assistant U.S. Attorney Jonathan P. Cantil, who is handling the case, stated that between September and December 2017, the defendant worked as a disaster recovery specialist for the United States Small Business Administration (SBA). The SBA provides low-interest disaster relief loans to help businesses and homeowners recover from federally declared disasters such as Hurricane Harvey and Hurricane Irma. In her role as a disaster recovery specialist, Davis spoke directly with loan applicants to assist in processing their loan applications. The defendant also had access to the SBA’s loan application database.
It is alleged that Davis abused her position at the SBA by stealing the identities of multiple disaster relief loan applicants, who were victims of Hurricane Harvey or Irma, and by using, and attempting to use, the victims’ identities fraudulently to enrich herself. She did so by opening new accounts using victim information, adding herself to existing victim accounts, using victim information to apply for loans, and purchasing goods using victim accounts. In the course of this scheme, Davis is alleged to have attempted to obtain, among other things, a $4,900 loan for a French bulldog, a $15,000 loan for plastic surgery, and a $35,000 personal loan.
The defendant was arraigned today before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. and released on conditions.
The indictment 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 fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Browning woman sentenced for death of pedestrianRead the Press Release
GREAT FALLS—A Browning woman convicted of involuntary manslaughter for hitting and killing a pedestrian while driving 90 mph on the Blackfeet Indian Reservation was sentenced today to one year and one day in prison, three years of supervised release and ordered to pay $3,500 restitution, U.S. Attorney Kurt Alme said.
After a three-day trial in March, a jury convicted Shayanna Marie England, 21, of involuntary manslaughter.
U.S. District Judge Brian M. Morris presided.
The prosecution presented evidence at trial that England had been drinking and driving throughout the night of Jan. 15, 2018 when she veered into the oncoming southbound lane on BIA Route 1, near the post office, and turned back, striking the victim. The victim, who had been with England and others earlier in the night, had been standing in the northbound land near an intersection. The victim was carried on top England’s vehicle as it left the roadway and crashed into a ditch. The victim was transported to the Indian Health Services Clinic in Browning where he died from injuries.
An investigation determined that England’s vehicle was traveling at approximately 90 mph on a road with a posted speed limit of 35 mph.
Assistant U.S. Attorney Jeffrey Starnes prosecuted the case, which was investigated by Blackfeet Law Enforcement Services, Bureau of Indian Affairs and Montana Highway Patrol.
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Brockton Man Sentenced for Possession of Child PornographyRead the Press Release
BOSTON – A Brockton man was sentenced today in federal court in Boston for possession of child pornography.
Alex Levin, 52, was sentenced by U.S. District Court Judge William G. Young to 78 months in prison, five years of supervised release, and restitution to be determined at a later time. In May 2019, Levin was convicted following a four-day jury trial of one count of possession of child pornography.
In August 2015, a search warrant was executed at Levin’s Norwood residence following a nation-wide investigation into the use of the Dark Web for the trade of child pornography. As a result of the search, videos and images depicting the rape and abuse of young children were found on Levin’s computer.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Valuable assistance was provided by the Boston Police Department. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, prosecuted the case.
The case is 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/.
Bridgeport Man Pleads Guilty to Trafficking Heroin and CocaineRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that EFRAIN MOLINA, also known as “Frankie,” 34, of Bridgeport, pleaded guilty yesterday before U.S. District Judge Victor A. Bolden in Bridgeport to a heroin and cocaine trafficking offense.
According to court documents and statements made in court, in December 2018, the Drug Enforcement Administration learn that Efrain Molina’s uncle, Carlitos Molina, also known as “Carlos,” was transporting kilogram-quantities of heroin and cocaine to Connecticut from his home in South Carolina. Efrain Molina then sold the drugs in and around Bridgeport. In January 2019, members of the DEA and Bridgeport Police Department arranged a controlled purchase of approximately one kilogram of cocaine and 400 grams of heroin from the Molinas in exchange for $53,000. On January 17, 2019, Efrain and Carlitos Molina were arrested after they arrived at location in Bridgeport in possession of narcotics.
Efrain Molina pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, more than 100 grams of heroin and more than 500 grams of cocaine, an offense that carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years. He is released on a $150,000 bond pending sentencing, which is not scheduled.
Carlitos Molina, 48, has been detained since his arrest. He pleaded guilty to the same charge on May 17, 2019, and is scheduled to be sentenced on October 17.
Carlitos Molina has an extensive criminal history and, at time of this offense, was on parole in the State of Georgia for trafficking methamphetamine. He faces the remaining 10 years of a 20-year state sentence when he is released from federal custody.
This matter has been investigated by the Drug Enforcement Administration, Bridgeport Police Department and Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Maria del Pilar Gonzalez
Boise Man Sentenced to Prison on Federal Gun ChargesRead the Press Release
BOISE – Jonathan Edward Ball, 35, of Boise, was sentenced to 48 months in federal prison for unlawful possession of a firearm, U.S. Attorney Bart M. Davis announced today. Senior U.S. District Judge Edward J. Lodge also sentenced Ball to serve three years of supervised release once he has completed his prison term. A federal grand jury indicted Ball on September 11, 2018.
According to court records, in October 2017, officers arrested Ball on an outstanding parole warrant at a home in Nampa, Idaho. Subsequent investigation revealed that Ball concealed a firearm, magazine, and ammunition inside of the home shortly before officers arrested him. Ball has prior convictions for possession of a controlled substance with intent to deliver and grand theft.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Nampa City Police Department.
This case was prosecuted as part of the Department of Justice’s Project Safe Neighborhoods (PSN) program. 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.
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Bloods Gang Members and Associates Indicted for Racketeering and Violent Crimes on East End of Long IslandRead the Press Release
Earlier today, a superseding indictment was unsealed in federal court in Central Islip variously charging six members and associates of the Red Stone Gorillas “set” of the Bloods street gang with racketeering, murder, robberies, narcotics trafficking and firearms offenses. The superseding indictment adds five new defendants, Jimmy Dean, Roger Foster, Corey Belcher, Willie Belcher and Eric Ross. Those defendants were arrested this morning in various locations on the East End of Long Island, and will be arraigned this afternoon before United States District Judge Joanna Seybert. Two defendants, the gang’s alleged leader Jimmy Dean and Terrill Latney, were already in custody, and will be arraigned at a later date.
Richard P. Donoghue, United States Attorney for the Eastern District of New York; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Timothy Sini, District Attorney, Suffolk County District Attorney’s Office (SCDA), Geraldine Hart, Commissioner, Suffolk County Police Department (SCPD), Keith M. Corlett, Superintendent, New York State Police (NYSP), and David J. Hegermiller, Chief, Riverhead Police Department, announced the charges.
“Through murder, assaults and drug sales, these members and associates of the Bloods’ Red Stone Gorillas posed a grave danger to communities on eastern Long Island,” stated United States Attorney Donoghue. “This Office, together with our federal and local law enforcement partners, will continue working tirelessly to prosecute defendants like these and eradicate violent street gangs throughout Long Island.” Mr. Donoghue expressed his grateful appreciation to the FBI’s Long Island Gang Task Force and the Suffolk County East End Drug Task Force for their work on the case.
“These arrests are the culmination of several years of intensive investigation to take out the worst-of-the-worst gang members terrorizing Eastern Long Island communities,” stated FBI Assistant Director-in-Charge Sweeney. “These subjects have allegedly created such a violent environment in parts of the town where they operate that they were dealing out in the open, without fear. We put a huge dent in that practice with the first round of arrests in this case, and today's action shows our FBI Long Island Gang Task Force and our law enforcement partners won’t stop until all of them are rounded up.”
“These are extremely dangerous gang members who are responsible not only for conspiring to commit murder, but for consistently driving crime on the East End through drug dealing and illegal firearm offenses,” stated Suffolk County District Attorney Sini. “Eradicating violent street gangs from our community is a top priority for my office. I thank all of our federal and local law enforcement partners for their continued partnership in the investigation and prosecution of gang members.”
“These Blood gang members and their associates engaged in violence and trafficked large quantities of narcotics for years on the East End of Long Island. Thanks to the diligent work of the FBI’s Long Island Gang Task Force and the Suffolk County East End Drug Task Force— they have been stopped and will be held accountable for their heinous crimes,” stated SCPD Commissioner Hart. “The department will continue to work with our law enforcement partners to rid our communities of violent street gangs.”
“I commend our federal, state, and local law enforcement partners for their commitment to Project Safe Neighborhoods,” stated NYSP Superintendent Corlett. “The arrests of these criminals are proof that, together, we are making our neighborhoods safer. Through our collaborative efforts, we will continue to target and apprehend gang members like the Blood Gang so they can no longer endanger the lives of New Yorkers through their heinous activities.”
“We truly appreciate the unprecedented cooperation and assistance from our federal, state and county law enforcement partners in helping us to remove these criminals from our local communities here on the east end of Long Island,” stated Riverhead Police Chief Hegermiller.
As detailed in the superseding indictment and other court filings by the government, the defendants’ gang committed acts of violence and distributed large quantities of crack cocaine, powder cocaine and heroin in the Riverhead area on Long Island for nearly a decade. On November 17, 2015, while attempting to carry out Dean’s order to kill an individual, Latney, and others fatally shot Thomas Lacolla as he sat in the intended victim’s car. On August 1, 2015, Foster and others shot and wounded a suspected member of the rival Crips gang and a female bystander. Following Dean’s arrest in 2016, Latney, Foster and others assumed control of the gang’s drug distribution operations.
The charges in the indictment are allegations, and the defendants are presumed to be innocent unless and until proven guilty. If convicted, the defendants face maximum sentences of up to life imprisonment.
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. The Department of Justice reinvigorated PSN in 2017 as part of the its renewed focus on targeting violent criminals, directing all U.S. Attorneys’ Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Nicole Boeckmann and Michael Maffei are in charge of the prosecution.
The Defendants:
Terrill Latney (also known as “Motis” and “Mo”)
Age: 39
Riverhead, New YorkCorey Belcher (also known as “Dot”)
Age: 34
Riverhead, New YorkWillie Belcher (also known as “Thug”)
Age: 33
Flanders, New YorkJImmy Dean (also known as “Jim Dick”)
Age: 41
Calverton, New YorkRoger Foster (also known as “RJ” and “YG”)
Age: 22
Baiting Hollow, New YorkEric Ross (also known as “Smurks”)
Age: 27
Flanders, New YorkE.D.N.Y. Docket No. 18-CR-606 (S-2) (JS)
Blackfoot Woman Sentenced to Prison for Making False Statement to FBI AgentRead the Press Release
POCATELLO – Olivia Sabrina Jay, 23, of Blackfoot, was sentenced to 12 months and one day in federal prison for making a false statement to a federal officer, U.S. Attorney Bart M. Davis announced today. Chief District Judge David C. Nye also ordered that Jay serve three years of supervised release after her release from prison. Jay pleaded guilty to the offense on June 25, 2019.
According to court records, on September 14, 2018, the Fort Hall Police responded to a residence on the Fort Hall Indian Reservation where a person had been run over by a car and suffered severe injuries. Officers contacted Jay, who blamed an intoxicated man for intentionally running over the victim with a car. Jay was later interviewed about the incident by an FBI Special Agent. Jay again said that the intoxicated man targeted and deliberately ran over the victim with a car.
A witness to the incident later told authorities that the intoxicated man was not driving the car, but that Jay was driving the car. Jay then admitted that she had lied to police officers and the FBI. She admitted accidentally running over the victim.
The case was investigated by the Federal Bureau of Investigation and the Fort Hall Police Department.
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Beaver Falls Man Indicted on Gun ChargeRead the Press Release
PITTSBURGH - A resident of Beaver Falls, PA, has been indicted by a federal grand jury on a charge of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
The one-count Indictment named JaeMere Scott, 24, as the sole defendant.
According to the Indictment, Scott was found to be in possession of a firearm. Scott is precluded from possessing firearms due to a previous conviction.
The law provides for a maximum total sentence of not more than 10 years in prison, a fine not to exceed $250,000.00, a term of supervised release of not more than 3 years, or a combination thereof. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Special Assistant United States Attorney Chad R. Parks is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Arizona Adoption Attorney Arrested for Adoption Fraud and Alien SmugglingRead the Press Release
Fayetteville, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas; Andrew Parker, Assistant Special Agent in Charge of the U.S. Department of State’s Diplomatic Security Service (DSS); Diane Upchurch, Special Agent in Charge of the FBI and Leslie Rutledge, Arkansas Attorney General announced today that Paul Petersen was arrested on federal charges. A federal grand jury in the Western District of Arkansas indicted Petersen on one count of Conspiracy to Smuggle Illegal Aliens for Commercial Advantage and Private Financial Gain, four counts of Aiding and Abetting in Alien Smuggling for Commercial Advantage and Private Financial Gain, seven counts of Wire Fraud, five counts of Mail Fraud, one count of Conspiracy to Commit Visa Fraud, and one count of Conspiracy to Commit Money Laundering.
According to the Indictment, Petersen is a licensed attorney who practices law in Arizona, Utah, and Arkansas. Beginning in 2014, Petersen devised a scheme to defraud and obtain money and property from unknowing adoptive parents and others. He paid pregnant Marshallese women large sums of United States currency to induce them to travel to the Western District of Arkansas and to put their babies up for adoption in the Western District of Arkansas. He purchased airline tickets for them and caused them to conceal their true travel purpose from the authorities in the Republic of the Marshall Islands (RMI) and the United States.
In furtherance of this scheme, Petersen caused adoption case files to be opened that were supported by documents containing fraudulent material false statements. He caused these court documents to be filed in the Circuit Clerk’s Offices in Washington and Polk counties and further caused case documents to be sent through the U.S. mail to government offices in Little Rock, Arkansas. Petersen is alleged to have intentionally concealed his involvement in the payments and conducted wire transactions to transfer more than one million dollars into a bank account.
The Indictment charges that Petersen, for the purpose of commercial advantage and private financial gain, encouraged and induced three RMI citizens to come to, enter, and reside in the United States when he knew it to be in violation of the law. Petersen conspired to cause them to make false claims to government officials and further conspired to transport and move them within the United States. The Indictment also charges that Petersen conducted wire communications in furtherance of his scheme to defraud and conspired to conduct financial transactions involving the proceeds of the aforementioned unlawful activities.
The DSS and the FBI are conducting the investigation and First Assistant U.S. Attorney Clay Fowlkes is prosecuting the case. The Justice Department’s Office of International Affairs of the Department’s Criminal Division also assisted in the investigation.
An Indictment is merely an accusation. An arrest warrant represents a finding of probable cause. A person is presumed innocent unless or until he or she is proven guilty beyond a reasonable doubt in a court of law.
Another charged in association with city of Weslaco scamRead the Press Release
McALLEN, Texas – A 56-year-old McAllen man has been arrested and charged with conspiracy to commit honest services wire fraud, announced U.S. Attorney Ryan K. Patrick.
Authorities arrested Sunil Wadhwani this morning upon the filing of a criminal complaint yesterday. He is set to appear before U.S. Magistrate Judge Juan Alanis at 11:00 a.m. today.
Beginning in at least April 2013, Wadhwani allegedly conspired with others to obtain a development agreement with favorable terms containing $300,000 in incentive agreements from the City of Weslaco Economic Development Corporation.
According to the criminal complaint, Wadhwani and Person A met with and engaged in e-mail communications with Person B and Person C in order devise a scheme to funnel thousands of dollars in funds to Person B, Person C and Commissioner A, who was a sitting Weslaco city commissioner and Economic Development Corporation Board member. According to the charges, the bribes were paid in order to ensure the commissioner’s votes before the Economic Development Corporation and the City Commission in obtaining the development agreement and its favorable terms.
In order to conceal the nature and source of the bribe payments, Wadhwani and others allegedly drafted and circulated a fictitious consulting agreement between a business entity he owned and another that Person C owned. According to the complaint, Wadhwani and the city commissioner visited a former Weslaco Economic Development Corporation executive director regarding the incentive agreement. That director allegedly felt pressured.
The charges further allege Person B and that city commissioner helped push the requests through the Weslaco Economic Development Corporation. It eventually granted a $300,000 incentive agreement the City of Weslaco approved to be paid in two equal $150,000 installments, according to the charges.
The final installment was allegedly deposited into a bank account for which Wadhwani was an authorized signer Nov. 3, 2014.
The FBI conducted the investigation. Assistant U.S. Attorney Roberto Lopez is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.