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Tuesday 27 August 2019
Former Financial Adviser Arrested on Fraud Charge for Allegedly Swindling Millions from ClientsRead the Press Release
CHICAGO — A Chicago financial adviser has been arrested on a federal fraud charge for allegedly swindling millions of dollars from clients, including a man who received approximately $5 million in a wrongful conviction settlement.
MARCUS E. BOGGS, 49, is charged with one count of wire fraud. Boggs was arrested on Aug. 22, 2019, at O’Hare International Airport in Chicago prior to boarding an international flight. He appeared Monday before U.S. Magistrate Judge Jeffrey Cole and was ordered to remain detained in federal custody without bond.
The complaint and arrest were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI. Valuable assistance was provided by the Chicago Regional Office of the U.S. Securities and Exchange Commission, which previously filed a civil enforcement action against Boggs. The government is represented by Assistant U.S. Attorney John D. Mitchell.
Boggs worked as a financial adviser in the Chicago office of a large wealth management firm, according to a criminal complaint and affidavit filed in U.S. District Court in Chicago. From 2009 to 2018, Boggs stole at least $2 million from client funds and used the money to make mortgage payments, travel to lavish international locations, and pay other personal expenditures, the complaint states.
The complaint describes the misappropriation of funds from four of Boggs’s clients. One of those clients received approximately $5 million in a 2014 settlement after being wrongfully convicted of murdering a 14-year-old girl, the complaint states. The man invested some of the settlement funds with Boggs’s firm on the understanding that Boggs would manage the money and ensure that he had enough funds for the rest of his life. Boggs instead stole approximately $815,000 from the man’s accounts to pay personal credit card debt, the complaint states.
Another victim cited in the complaint sold his home and invested the proceeds with Boggs. The victim understood that Boggs would manage the funds in safe investments to generate retirement income, the complaint states. When the value of his accounts began decreasing, Boggs misrepresented that it was due to fluctuations in the stock market, the complaint states. In reality, Boggs had used approximately $127,000 from the man’s accounts to pay personal credit card debt, the charge alleges.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Wire fraud is punishable by up to 20 years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Former CPA Indicted for Failing to Report Foreign Bank Accounts and Filing False Documents with the IRSRead the Press Release
A federal grand jury returned a superseding indictment charging Brian Booker, a former resident of Fort Lauderdale, Florida, whose business specialized in international trade, with failing to file Reports of Foreign Bank and Financial Accounts (FBARs) and filing false documents with the Internal Revenue Service (IRS), announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and United States Attorney Ariana Fajardo Orshan for the Southern District of Florida.
According to the superseding indictment, Booker, a former Certified Public Accountant, owned a cocoa trading company that was organized under the laws of the Republic of Panama. Booker allegedly operated that company from Venezuela, Panama, and his former residence in Fort Lauderdale, Florida. The superseding indictment further alleges that, for calendar years 2011 through 2013, Booker failed to disclose his interest in financial accounts located in Switzerland, Singapore, and Panama on annual Reports of Foreign Bank and Financial Accounts (FBARs) as required by law. Booker also allegedly filed false individual income tax returns for tax years 2010 through 2012 that failed to report to the IRS all of Booker’s foreign bank accounts.
Booker is also charged with filing a false “Streamlined Submission” in conjunction with the Streamlined Domestic Offshore Procedures. The IRS Streamlined procedures allowed eligible taxpayers residing within the United States, who failed to report gross income from foreign financial accounts on prior tax returns, failed to pay taxes on that gross income, or who failed to submit an FBAR disclosing foreign financial accounts, to voluntarily disclose their conduct to the IRS. The superseding indictment alleges that Booker’s Streamlined submission falsely claimed that his failure to report all income, pay all tax, and submit all required information returns, such as FBARs, was due to non-willful conduct.
If convicted, Booker faces a maximum sentence of five years in prison for each count relating to his failure to file an FBAR. He also faces a maximum sentence of three years in prison for each of the counts related to filing false tax documents.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
The case was investigated by special agents of IRS-Criminal Investigation. Trial Attorneys Sean Beaty and Alexander Effendi of the Tax Division are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Florida Man Charged Under “Drug Kingpin Statute” for Running Large Cocaine and Money Laundering RingRead the Press Release
PITTSBURGH - A resident of Lauderhill, Florida, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal drug laws, United States Attorney Scott W. Brady announced today.
The six-count Superseding Indictment named Racoco Williams, age 37, as the sole defendant.
According to the Superseding Indictment, on or about April 23, 2017 and on or about August 29, 2017, Williams possessed with intent to deliver five kilograms or more of cocaine. The earlier filed criminal complaint alleged that Williams was staying at a room at the Extended Stay Hotel in Monroeville, Pennsylvania. A federal search warrant of his room revealed 17 kilograms of cocaine and more than $192,000 in cash. The Superseding Indictment further alleges that from in and around 2012 and continuing thereafter to in and around March 2018, Williams conspired with persons known and unknown to distribute and possess with intent to distribute five kilograms or more of cocaine and a quantity of marijuana. The Superseding Indictment further alleges that from in and around 2012 and continuing thereafter to in and around March 2018, Williams participated as a principal administrator in a continuing criminal enterprise that involved 150 kilograms or more of cocaine. The Superseding Indictment further alleges that from in and around 2012 and continuing thereafter to in and around August 2017, Williams conspired with persons known and unknown to commit money laundering. Finally, the Superseding Indictment also alleges that from 2012 and continuing thereafter to in and around August 2017, Williams travelled between states in aid of racketeering activity, namely drug trafficking.
The law provides for a mandatory sentence of life in prison, a maximum fine of $32,750,000 or both.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The United States Department of Homeland Security, the United States Postal Inspection Service and the Pennsylvania State Police conducted the investigation leading to the Superseding Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Fifteen people indicted for their roles in a conspiracy to bring large amounts of cocaine and heroin from Mexico and California to Stark CountyRead the Press Release
Fifteen people were indicted for their roles in a conspiracy to bring large amounts of cocaine and heroin from Mexico and California to the Canton area.
Named in the 39-count indictment are: Miguel Reyes-Perez, 33, a Mexican citizen living in Canton; Miguel Ayala-Cardona, 52, of Canton; Juan Silverio Castro-Castrio, 18, of Massillon; Louis Dunson. Jr., 49, of Canton; Louis Dunson, III, 26, of Canton; Oscar Fabian Garcia-Reyes, 29, of Canton; Michael Yarnell Harris, 40, of Massillon; David Deon Jones-Dehart, 38, of Orrville; Stephanie Joy Dehart, 48, of Orrville; Albino Lopez-Ruvalcaba, 43, of Canton; Willie J. Middleton, 63, of Canton; Earnest Lee Nelson, Jr., 36, of Orrville; Rogelio Tello-Ramirez, 51, of Canton; Ciro Ajualip, 26, of Canton, and Alvaro Orosco, 34, of Canton.
Reyes–Perez received cocaine and heroin from California, Mexico and elsewhere, which he then redistributed to drug customers including Ayala-Cardona, Castro-Castrio, the Dunsons, Garcia-Reyes, Harris, Jones-Dehart, Dehart, Lopez-Ruvalcaba, Middleton, Nelson, Tello-Ramirez and Ajualip . Those defendants then sold the drugs to other customers, according to the indictment.
This took place between August 2016 and at least April 2019, according to the indictment.
Additionally, Reyes-Perez is charged with illegal reentry into the United States. He was found here on April 4, 2019, after having been deported on January 30, 2018, according to the indictment.
“This group brought large amounts of heroin and cocaine into Stark County at time when record numbers of our neighbors were dying from drug overdoses,” U.S. Attorney Justin Herdman said. “We will continue to work to disrupt drug trafficking organizations and seek long prison sentences for those profiting off the drug epidemic.”
"These fifteen indicted individuals may live in our area hometowns of Canton, Massillon, Orrville and Wooster, but they had far reaching contacts that allowed them to bring dangerous illegal drugs into and across our country,” said FBI Special Agent in Charge Eric B. Smith. “The FBI and our law enforcement partners will continue to identify and disrupt drug trafficking networks distributing perilous substances in our neighborhoods."
“The Canton Police Department remains committed to working with its federal law enforcement partners to eradicate this type of criminal activity from our city,” said Canton Police Chief Jack Angelo.
“The Massillon Police Department is pleased to have been able to participate with our law enforcement partners in this endeavor and we are committed to maintaining these relationships for the safety and welfare of our community,” said Massillon Police Chief Keith T. Moser
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case was investigated by the Federal Bureau of Investigation, Canton Police Department, MEDWAY Drug Enforcement Agency and Massillon Police Department. It is being prosecuted by Assistant U.S. Attorney Margaret Sweeney.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Felon Sentenced to 34 Months for Possessing Loaded HandgunRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Juan Longino, 46, Madison, Wisconsin, was sentenced today by U.S. District Judge James D. Peterson to 34 months in federal prison, for unlawfully possessing a loaded firearm as a convicted felon. Longino pleaded guilty to this charge on April 23, 2019. His prison term will be followed by a three-year period of supervised release.
In December 2018 and January 2019, Longino drove a heroin dealer around Madison, while the dealer sold heroin to an undercover officer. A warrant was executed at Longino’s home on January 9, 2019, and officers recovered a loaded handgun under his mattress, as well as 5.6 grams of heroin. Longino claimed the heroin was for his personal use and that the firearm was for protection. Longino has an extensive criminal history that spans 26 years. His most recent felony conviction was obtained in 2014, for strangulation/suffocation.
Judge Peterson initially imposed a sentence of 42 months, but then credited Longino for the eight months he has spent in pretrial detention.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach involves collaboration by federal, state and local law enforcement agencies, prosecutors and communities to prevent and deter gun violence.
The charge against Longino was the result of an investigation conducted by the Dane County Narcotics Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Rita M. Rumbelow.
Federal Jury Convicts Haywood County Man for Conspiracy to Commit Multiple Armed Business RobberiesRead the Press Release
Jackson, TN – After a three-day jury trial, Johnny Lee Nixon, Jr., 23, was found guilty of Conspiracy to Commit multiple business robberies, Hobbs Act business robbery, possession of a firearm during a robbery, and receiving firearms while under indictment. U.S. Attorney Dunavant announced the guilty verdict today.
According to information presented in court, during a period of 5 days in 2016, two masked men armed with pistols robbed three businesses in the Brownsville, Haywood County area: the F&D Quick Stop, the Discount Tobacco andMore, and the Bells Express Truck Stop. Also during this time, there were two different shootings where 9mm shell casings and .22 LR shell casings were recovered by the Brownsville Police Department.
On April 25, 2016 after the Bells Express Truck Stop robbery, deputies with the Haywood County Sheriff's Department collected clothing on a nearby road that was worn by the armedmaskedmen observed in the surveillance footage. Deputies forwarded those items of evidence to the Tennessee Bureau of Investigation for DNA analysis, which in 2018 linked Lacey Jeter and Johnny Lee Nixon, Jr. to the clothing.
On April 26, 2016, Officers with the Brownsville Police Department observed a vehicle that matched the description of the vehicle seen leaving the scene of the Bells Express Truck Stop robbery and initiated a traffic stop. After a brief chase, the vehicle crashed in rural Haywood County. The occupants of the vehicle ran into nearby woods leaving behind two pistols similar to the ones described in the recent robberies. Officers with the Brownsville Police Department collected the firearms fromthe scene and submitted them to the Tennessee Bureau of Investigation for comparison to the shell casings recovered from the recent shootings. TBI Agents were able to confirm that the shell casings recovered after the shootings were fired fromone of the firearms recovered near the scene of the crash. Johnny Lee Nixon, Jr. was indicted by a federal grand jury in January of 2019.
During the three-day trial, evidence was presented showing Johnny Lee Nixon, Jr. and co-conspirators used the proceeds from the robberies to illegally purchase the firearms used in the shootings and ultimately at least one robbery, and also participated in the conspiracy to commit the robberies and were present during the robbery of the Bells Express Truck Stop and possessed a firearm during the robbery.
U.S. Attorney D. Michael Dunavant said, "Violent crime affects and endangers all communities in West Tennessee, both urban and rural. Robberies of businesses with a firearm are especially dangerous and violent due to the high risk of death and serious bodily injury to innocent victims. Business robberies also have a substantially negative impact on the local economy and commerce, which victimizes the entire community. As a result of this guilty verdict, Nixon will have plenty of time in federal prison to suffer with the consequences of his criminal conduct, and the citizens of Haywood County will be safer for it."
Haywood County Sheriff Billy Garrett, Jr., said: "Special thanks to the hard working people of our U.S. Attorney’s Office for helping our office keep the law abiding citizens of Haywood county safe. I appreciate the teamwork and look forward to working with you again."
"The City of Brownsville is grateful for the support of the U.S. Attorney’s Office, the Bureau of Alcohol, Tobacco and Firearms, the Haywood County Sherriff’s Office and the Brownsville Police Department in the prosecution and conviction of Johnny Nixon. Nixon was a danger to society with his lengthy criminal history of robberies, domestic assaults and weapons violations. Working together, Brownsville is a much safe place," said Brownsville Police Chief Barry Diebold.
Sentencing is scheduled forNovember 21, 2019, beforeU.S. District Court Judge J. Daniel Breen. Nixon faces sentences of up to 20 years imprisonment each for the Conspiracy and the Hobbs Act business robbery, a mandatory minimum consecutive sentence of 5 years for the possession of the firearm during a crime of violence, and up to 10 years imprisonment for each of the 3 counts of possession of firearm while under indictment.
This case was investigated by the Brownsville Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Haywood County Sheriff’s Department and the Tennessee Bureau of Investigation.
Assistant U.S. Attorneys Hillary Parham and Matt Wilson are prosecuting this case on behalf of the government.
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FBI Arrests Manhattan Beach Man Facing Federal Charges Related to Movie Investment Scam that Cost Victims $14 MillionRead the Press Release
LOS ANGELES – A Manhattan Beach man surrendered this morning to face federal charges that allege he collected $14 million from investors who were falsely told their money would be used to produce a feature film that Netflix would distribute and would involve several notable Hollywood figures.
Adam Joiner, 41, is expected to make his initial appearance this afternoon in United States District Court in downtown Los Angeles. A criminal complaint filed August 13 and unsealed this morning charges Joiner with wire fraud, money laundering and aggravated identity theft.
According to the affidavit in support of the complaint, Joiner used fake documents and forged signatures to raise millions of dollars from foreign investment firms based in South Korea and China for a project he said would be called “Legends,” which is described in court papers as “an anachronistic mash-up of legendary and historical figures from nineteenth century America, such as Davy Crockett, Calamity Jane, Paul Bunyan, and John Henry.”
Joiner, who operated a company called Dark Planet Pictures, LLC, allegedly defrauded Korea Investment Global Contents Fund, a South Korean investment fund whose assets are managed by Korean Investment Partners Co., Ltd. (KIP). The complaint also accuses Joiner of defrauding a Chinese investment firm called Star Century Pictures Co., Ltd. and a related company called PGA Yungpark Capital Ltd.
The scheme allegedly began in late 2015 when Joiner met a director of KIP and provided him a script for “Legends,” which Joiner said had been written by his brother. As KIP considered making an investment in the film, Joiner falsely told company representatives that Netflix had agreed to distribute the picture, a claim Joiner supported with a bogus distribution agreement that appeared to be signed by a Netflix executive, according to the complaint. After Joiner provided a copy of the purported distribution agreement, KIP agreed to invest $8 million in the project and, in April 2016, transferred the first half of the investment to Dark Planet Pictures.
During the investigation, FBI agents spoke to the Netflix executive who appeared to have signed the distribution agreement. That executive told the FBI that he had never heard of Joiner, his company or the “Legends” project, nor did he sign the purported distribution agreement, according to the affidavit.
Soon after KIP sent the $4 million to Dark Planet Pictures, Joiner entered into an agreement with the Chinese investors that was supported by the same bogus Netflix distribution agreement, according to the complaint affidavit. As a result of this fraudulent misrepresentation, Yungpark wired $6 million to Dark Planet Pictures in June 2016.
After receiving the initial $10 million from the victim investors, Joiner provided them with updates claiming that well known Hollywood figures – such as producer Don Murphy – had agreed to work on the project, the affidavit states. While Murphy was retained to produce the film and secure a distribution agreement, no distributor was identified, no talent was secured, and no director committed to the film, the complaint alleges. Murphy terminated his arrangement with Joiner in mid-2017.
In late 2016, Joiner allegedly told his investors that he had terminated the distribution agreement with Netflix and had secured a new agreement with Amblin Partners – all of which was bogus, according to executives at both companies. However, the new distribution agreement prompted the South Korean investors to complete their investment by wiring another $4 million to Dark Planet Pictures in early 2017, the complaint alleges.
Following this final wire transfer, Joiner provided a series of excuses to his investors as to why the project was not moving forward, according to the affidavit. He also allegedly provided a forged bank statement to the South Korean investors to prove that he could repay their investment. The FBI reviewed Dark Planet Pictures bank records and determined that more than $5 million of the investors’ money was used to purchase Joiner’s Manhattan Beach residence and another $4.3 million was transferred to a bank account that may be linked to another film in development linked to Joiner.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
The charge of wire fraud carries a statutory maximum sentence of 20 years in federal and the money laundering offense could lead to a sentence of up to 10 years. The aggravated identity theft charge carries a mandatory two-year prison term.
This matter is being investigated by the FBI.
This case is being prosecuted by Assistant United States Attorney Alexander B. Schwab of the Major Frauds Section.
FBI Agent, KCPD Sergeant Honored for Significant InvestigationsRead the Press Release
KANSAS CITY, Mo. – Tim Garrison, United States Attorney for the Western District of Missouri, announced today that two local and federal law enforcement officers were recognized for the work on several significant cases as recipients of the 2019 Guardian of Justice Award.
FBI Special Agent Jason Ramsey was recognized for his investigation into a kidnapping conspiracy that involved carjacking, robbing, and forcing drugs upon three young female victims. Both defendants in that case were convicted following a three-day trial.
Det. Sgt. Eric Greenwell of the Kansas City, Mo., Police Department was recognized for his leadership role in investigating a number of violent crimes, including murders and armed robberies.
Ramsey and Greenwell were honored on Thursday, Aug. 15, 2019, during the 17th Annual LECC Training Seminar in Springfield, Missouri.
Special Agent Jason Ramsey
Ramsey has been involved in investigating high-profile, complex cases that involve dangerous defendants exhibiting an extraordinary level of violence against innocent victims. Such victim-intensive cases require investigators to rise to a higher standard of professionalism, capability, and responsibility, a standard that Ramsey exceeds.
In the case of USA v. Wortham, et al, co-defendants Jamerl M. Wortham and Anthony B. Williams were each found guilty of one count of conspiracy to commit kidnapping, three counts of kidnapping, one count of carjacking, one count of conspiracy to commit armed robbery, one count of attempted armed robbery, one count of distribution of phencyclidine (PCP), six counts of possession of a short-barreled shotgun in furtherance of a crime of violence or drug trafficking crime, one count of being felons in possession of a firearm, one count of possession of an unregistered short-barreled shotgun, and one count of possession of a firearm with an obliterated serial number.
Following the trial, jurors needed only an hour and a half to reach guilty verdicts on all counts against both defendants. Neither defendant has been sentenced as yet; Wortham faces a mandatory minimum sentence of 60 years in federal prison without parole, up to life in prison, while Williams faces a mandatory minimum sentence of seven consecutive life sentences.
Initially, the night these crimes were committed, only one defendant was apprehended. Ramsey continued the investigation for two months in order to identify the second defendant. At trial, Ramsey was crucial in evidence-gathering, witness preparation, and determining trial strategy. He was a key witness during the trial as well. Ramsey took a substantial role in communicating with the victims regarding the prosecution of the case, displaying the ability to comfort victims while maintaining a working, professional relationship with them.
Det. Sgt. Eric Greenwell
Greenwell has been the supervisor of the Kansas City, Missouri Police Department’s Career Criminal Task Force for nearly two decades. This squad is tasked with investigating the worst of the worst, recidivistic offenders in the metropolitan area. The offenses the unit investigates include, rape, robbery, assault, gang shootings, drug trafficking, armed robbery, and murder. This unit is unique because it is made up not only of police officers, but multiple federal agents that work under Greenwell’s supervision. The work done by this unit has resulted in countless prosecutions that have benefitted the welfare and safety of the community.
This task force, in conjunction with the FBI, has aggressively targeted subjects involved in armed robberies at local businesses, resulting in 24 federal indictments in the last fiscal year. This places the Kansas City’s initiative fifth in the nation for such indictments. Among those cases was a five-member crew involved in multiple takeover-style robberies of 7-Eleven stores and other businesses. This crew operated by finding two locations next to each other and then simultaneously robbing them both. They did so by shooting out the business windows and holding the employees at gunpoint while demanding money from the business. Another crew robbed taxi drivers, including a 53-year-old Z-Trip driver who refused to give up her money and was shot 18 times with an assault rifle. Another investigation targeted two separate crews who coordinated their robberies of cell phone stores. The violent groups, which stole iPhones, pistol whipped multiple store employees and beat customers. Members of the group were connected to homicides and shootings. Another five-member crew was involved in 11 violent takeover-style armed robberies of local businesses. In one of those robberies, a convenience store clerk was shot and killed. Another six-member crew was involved in 26 armed takeover-style business robberies. While attempting to rob a pharmacy, the crew’s leader was shot and killed in a gun battle with law enforcement officers.
The Career Criminal Task Force coordinated the effort of the Kansas City Police Department and the FBI to identify and arrest a suspect in the murder of seven victims on or around the Indian Creek Trail in Kansas City. Greenwell’s task force also has been involved in several murder cases that have been charged in federal court. Greenwell also coordinated the investigations into nine missing and/or abducted children. Seven of these children were recovered, including a kidnapped infant who was taken from Kansas City to California.
Guardian of Justice Award
The annual Guardian of Justice Award recognizes a state or local officer as well as a federal agent for investigative excellence, selfless collaboration, tireless trial support, commendable diligence and professionalism, and noteworthy assistance to prosecution. The prestigious law enforcement award is presented by the U.S. Attorney’s Office each year during the law enforcement training conference.
Escape from Federal Custody Results in Longer SentenceRead the Press Release
A man who escaped from custody while serving a federal sentence in the Gerald R. Hinzman Center was sentenced August 26, 2019, to serve an additional four months in federal prison.
Shaquandis Thurmond, age 25, from Cedar Rapids, Iowa, received the prison term after a May 10, 2019 guilty plea to escape from federal custody.
In a plea agreement, Thurmond admitted he was in the Gerald R. Hinzman Center in Cedar Rapids pursuant to an August 3, 2018, federal court order issued for a supervised release violation following his previous conviction in a firearms case. On August 26, 2018, Thurmond left the facility claiming he was going to a local church. Thurmond remained a fugitive until his arrest on March 18, 2019, when he was found by the University of Northern Iowa Police Department.
Thurmond was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Thurmond was sentenced to four months’ imprisonment to be served consecutively with the 12 month sentence Thurmond received for his supervised release revocation. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Thurmond is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Patrick J. Reinert and investigated by the United States Marshals Service and the Northern Iowa Fugitive Task Force, with the assistance of the University of Northern Iowa Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-00035.
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Ely Man Indicted for Murder of 3-Year-Old GirlRead the Press Release
LAS VEGAS, Nev. – An enrolled member of the Ely Shoshone Tribe was indicted by a federal grand jury charging him with the murder of a three-year-old girl.
“Violent crime against women and children on tribal land is a significant priority for the Department of Justice,” said United States Attorney Nicholas A. Trutanich for the District of Nevada. “I am proud to be part of an organization that does its very best to protect vulnerable victims.”
“One of the reasons that the Las Vegas Division augmented our resources in Northern Nevada was to amplify and strengthen our existing partnerships with our local and tribal partners,” said Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Field Office. “This complex investigation underscored the success of these efforts.”
Colon Jackson, 28, was arrested last week Friday in White Pine County, Nev. His detention hearing is scheduled to be continued to August 29, before United States Magistrate Judge Carla Baldwin Carry. Jackson is charged with one count of murder in the first degree. A trial date has been set for October 22, 2019. If convicted, the maximum penalty is life in prison.
According to the indictment and facts presented at the detention hearing, on January 9, 2019, the 3-year-old girl went to day care and was later picked-up by her mother and taken home so Jackson could care for her while her mother was at work. After the victim’s mother returned to work, Jackson called her to tell her that the girl was unconscious. The mother came home and took the child to the emergency room in Ely. The girl was then flown from Ely to Salt Lake City and died shortly thereafter. As alleged, Jackson abused the girl resulting in a significant head injury causing her death.
The charge is merely an allegation and the defendant is presumed innocent unless and until proven guilty in a court of law.
The case was investigated by the FBI. Assistant United States Attorneys Penelope Brady and Sue Fahami are prosecuting the case.
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Ellenville Man Sentenced for Defrauding the Social Security AdministrationRead the Press Release
ALBANY, NEW YORK – Anthony Alvarez, age 38, of Ellenville, New York, was sentenced yesterday to 15 months in prison, to be followed by 3 years of supervised release, for fraudulently obtaining more than $38,000 in benefits from the Social Security Administration (SSA).
The announcement was made by United States Attorney Grant C. Jaquith and John F. Grasso, Special Agent in Charge of the SSA Office of the Inspector General, New York Field Office.
As part of his January 3, 2019 guilty plea, Alvarez admitted that from January 2011 to February 2015, he fraudulently concealed from the SSA the fact that he was living in the Philippines so that he could continue to receive Supplemental Security Income benefits.
Senior United States District Judge Gary L. Sharpe also ordered Alvarez to pay $38,894.42 in restitution to the SSA.
This case was investigated by the SSA Office of the Inspector General, and was prosecuted by Assistant U.S. Attorney Joshua R. Rosenthal and Special Assistant U.S. Attorney Jason W. White.
Eight Defendants Charged with Running Two of the Largest Illegal Television Show and Movie Streaming Services in the United StatesRead the Press Release
A federal grand jury returned an indictment today charging eight individuals with conspiring to violate federal criminal copyright law by running two of the largest unauthorized streaming services in the United States, resulting in the loss of millions of dollars by television program and motion picture copyright owners.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia and Assistant Director in Charge Timothy R. Slater of the FBI’s Washington Field Office made the announcement today.
According to the indictment, Kristopher Lee Dallmann, 36; Darryl Julius Polo, aka djppimp, 36; Douglas M. Courson, 59; Felipe Garcia, 37; Jared Edward Jaurequi, aka Jared Edwards, 38; Peter H. Huber, 61; Yoany Vaillant, aka Yoany Vaillant Fajardo, 38; and Luis Angel Villarino, 40, allegedly ran an entity called Jetflicks, an online subscription-based service headquartered in Las Vegas, Nevada, that permitted users to stream and, at times, download copyrighted television programs without the permission of the relevant copyright owners.
The defendants reproduced tens of thousands of copyrighted television episodes without authorization, and distributed the infringing programs to tens of thousands of paid subscribers located throughout the U.S. At one point, Jetflicks claimed to have more than 183,200 different television episodes. One of the defendants, Polo, left Jetflicks and created a competing site based in Las Vegas called iStreamItAll (ISIA) that at one point claimed to have 115,849 different television episodes and 10,511 individual movies. Like Jetflicks, ISIA offered content for a regular subscription fee to viewers around the United States, and ISIA publicly asserted that it had more content than Netflix, Hulu, Vudu and Amazon Prime. The two services were not only available to subscribers over the internet but specifically designed to work on many different types of devices, platforms and software including numerous varieties of computer operating systems, smartphones, tablets, smart televisions, video game consoles, digital media players, set-top boxes and web browsers.
In addition, the grand jury charged Dallmann with two counts of criminal copyright infringement by reproduction or distribution, two counts of criminal copyright by public performance and four counts of money laundering, and charged Polo with two counts of criminal copyright infringement by distributing a copyrighted work being prepared for commercial distribution, two counts of criminal copyright infringement by reproduction or distribution, two counts of criminal copyright infringement by public performance and four counts of money laundering.
According to the indictment, Jetflicks allegedly obtained infringing television programs from pirate websites around the world—including some of the globe’s biggest torrent and Usenet sites specializing in infringing content such as The Pirate Bay, RARBG and Torrentz—using various automated computer scripts, often providing episodes to subscribers the day after the shows originally aired on television. Specifically, the defendants allegedly used sophisticated computer code to scour global pirate sites for new illegal content to download, process and store the shows, and then make those episodes available on servers in the United States and Canada to Jetflicks subscribers for streaming and/or downloading.
According to the indictment, Polo was allegedly part of the computer programming team that built Jetflicks but later left and started ISIA, a competing service based in Las Vegas that offered not only television programs but movies. Polo allegedly used many of the same automated tools that Jetflicks employed to locate, download, process and store illegal content, and then quickly make those television programs and movies available on servers in Canada to ISIA subscribers for streaming and/or downloading. In fact, some of the movies offered by ISIA were not yet available for authorized sale, download, or viewing outside a movie theater.
The charges and allegations contained in the indictment are merely accusations. The defendants are presumed innocent until and unless proven guilty.
The FBI conducted the investigation. Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Alexander P. Berrang of the Eastern District of Virginia and are prosecuting the case.
Eight Defendants Charged with Running Two of the Largest Illegal Streaming Services in U.S.Read the Press Release
ALEXANDRIA, Va. – A federal grand jury returned an indictment today charging eight Las Vegas residents with conspiring to violate federal criminal copyright law by running two of the largest unauthorized streaming services in the United States, resulting in the loss of millions of dollars by television program and motion picture copyright owners.
According to the indictment, the defendants allegedly ran an entity called Jetflicks, an online, subscription-based service headquartered in Las Vegas that permitted users to stream and, at times, download copyrighted TV programs without the permission of the relevant copyright owners.
The defendants reproduced tens of thousands of copyrighted TV episodes without authorization, and distributed the infringing programs to tens of thousands of paid subscribers located throughout the United States. At one point, Jetflicks claimed to have more than 183,200 different TV episodes. One of the defendants, Polo, left Jetflicks and created a competing site based in Las Vegas called iStreamItAll (ISIA) that at one point claimed to have 115,849 different television episodes and 10,511 individual movies. Like Jetflicks, ISIA offered content for a regular subscription fee to viewers around the United States, and ISIA publicly asserted that it had more content than Netflix, Hulu, Vudu and Amazon Prime. The two services were not only available to subscribers over the internet but specifically designed to work on many different types of devices, platforms, and software including numerous varieties of computer operating systems, smartphones, tablets, smart televisions, video game consoles, digital media players, set-top boxes and web browsers.
According to the indictment, Jetflicks allegedly obtained infringing TV programs from pirate websites around the world—including some of the globe’s biggest torrent and Usenet sites specializing in infringing content such as The Pirate Bay, RARBG and Torrentz—using various automated computer scripts, often providing episodes to subscribers the day after the shows originally aired on TV. Specifically, the defendants allegedly used sophisticated computer code to scour global pirate sites for new illegal content to download, process and store the shows, and then make those episodes available on servers in the United States and Canada to Jetflicks subscribers for streaming and/or downloading.
The defendants are: Kristopher Lee Dallmann, 36; Darryl Julius Polo, aka “djppimp”, 36; Douglas M. Courson, 59; Felipe Garcia, 37; Jared Edward Jaurequi aka “Jared Edwards”, 38; Peter H. Huber, 61; Yoany Vaillant, aka “Yoany Vaillant Fajardo”, 38; and Luis Angel Villarino, 40.
According to the indictment, Polo was allegedly part of the computer programming team that built Jetflicks but later left and started ISIA, a competing service based in Las Vegas that offered not only television programs but movies. Polo allegedly used many of the same automated tools that Jetflicks employed to locate, download, process, and store illegal content, and then quickly make those TV programs and movies available on servers in Canada to ISIA subscribers for streaming and/or downloading. In fact, some of the movies offered by ISIA were not yet available for authorized sale, download, or viewing outside a movie theater.
All eight defendants are charged with conspiracy to commit criminal copyright infringement and, if convicted, they face a maximum penalty of five years in prison. The criminal copyright infringement by reproduction or distribution and criminal copyright infringement by public performance charges, with which Dallmann and Polo are charged, each carries a maximum penalty of one year in prison. The criminal copyright infringement by distributing a copyrighted work being prepared for commercial distribution offenses, with which Polo is charged, carry a maximum penalty of five years in prison. And, each of the charged money laundering offense carry a maximum penalty of 20 years in prison. 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Brian A. Benczkowski, Assistant Attorney General for the Justice Department’s Criminal Division, and Timothy R. Slater, Assistant Director of the FBI’s Washington Field Office, made the announcement. Assistant U.S. Attorney Alexander P. Berrang and Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property 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-253.
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.
District Man Sentenced to 36 Months for Assault with a Dangerous WeaponRead the Press Release
WASHINGTON – Maxim R. Smith, 25, of Washington, D.C., was sentenced today to 36 months in prison followed by three years of supervised release for assault with a dangerous weapon, and for beating a man approximately 12 months ago in Northwest Washington, U.S. Attorney Jessie K. Liu announced today.
Smith was found guilty on June 19, 2019, following a trial in the Superior Court of the District of Columbia. Smith was convicted of assault with a dangerous weapon and assault with significant injury while armed. He was sentenced by the Honorable Judge Kimberley S. Knowles.
“Today’s sentence holds Maxim Smith accountable for brutally beating a man,” said U.S. Attorney Liu. “This prosecution vindicates the principle that everyone in our community deserves the protection of the law.”
According to the government’s evidence, on August 6, 2018, the victim was driving in his vehicle through Georgetown after a friend’s gathering. As he drove toward Wisconsin Avenue NW on M Street NW, he encountered Smith stopped on his bicycle in the middle of the right turn lane. The victim honked his horn, and Smith yelled expletives at the victim and did not move. The victim then passed the defendant on the left side in his vehicle, and at that point heard a loud thump on the back of his car. Assuming the defendant had hit his car with an object, the victim turned right onto Wisconsin Avenue NW and pulled his car to the side of the road. The victim got out of his car to inspect for damage and to call the police. Smith also turned right onto Wisconsin Avenue NW and rode his bike to Prospect Street. As soon as Smith turned back and saw the victim on the phone, he shouted to the victim, “Are you really calling the police?” and directed a racial slur at him. The victim is a black male from Cameroon, and the defendant is a white male. Smith then rode aggressively back toward the victim and got into a physical altercation with him. Smith then struck the victim on the head with a metal u-lock while yelling racial slurs at him. The victim required 21 stiches to his head as a result of the assault.
This was a brutal attack accompanied by explicit racial slurs. The Office charged the hate-bias enhancement, the jury hung on that charge, and the Honorable Judge Knowles was asked to consider the hate motivation at sentencing.
In announcing the sentence, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department. She also acknowledged the work of those who handled the case at the U.S. Attorney’s Office including Assistant U.S. Attorneys Jack Korba and Alyse Constantinide.
District Man Sentenced to 19 Years in Prison for Assault with Intent to Kill While Armed in 2017 Shooting in Northeast, Washington, D.C.Read the Press Release
WASHINGTON – Garland Goddard, 35, of Washington, D.C., was sentenced today to 19 years in prison for shooting a man in October 2017 near the busy intersection of Minnesota Avenue and Clay Place, in NE, Washington, D.C.
The announcement was made by U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Goddard was found guilty by a jury of assault with intent to kill while armed and related assault and firearms charges following a May 2019 trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Juliet McKenna.
According to the government's evidence, on October 21, 2017, just before 9:00 p.m., Goddard walked over to the unarmed victim while he was sitting and talking with another person in the 3800 block of Minnesota Avenue, NE. Goddard pulled out a 9-millimeter semi-automatic handgun and fired seven shots at the victim, who got up and ran for his life. The victim was hit twice, but managed to get away until collapsing on the street in the next block. He was taken to Prince Georges County Hospital, where he underwent surgery and remained hospitalized for weeks.
Shortly after the shooting, MPD arrived at the scene. The victim was unable to identify the shooter, but investigators recovered video surveillance footage from several local establishments that captured the shooting. Footage showed the shooter entering and exiting a black SUV shortly before and after the shooting. Investigators later identified the driver of the black SUV, and a search of the driver's apartment uncovered a 9-millimeter handgun that matched shell casings found at the scene of the shooting.
Goddard was arrested on a separate charge in November 2017, and has been in custody since that time.
In announcing the sentence, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the District of Columbia Department of Forensic Sciences. They acknowledged the efforts of those who worked on the case from the U.S. Attorney's Office, including Assistant U.S. Attorneys Sitara Witanachchi and Ahmed Baset, and Special Assistant U.S. Attorney Raymond Hulser; Paralegal Specialists Antoinette Sakamsa and Debra Joyner; and Supervisory Litigation Technology Specialist Leif Hickling.
Defendants sentenced for violent takeover robberies of metro Atlanta business and bankRead the Press Release
ATLANTA – Lenard Gibbs, Kyre Campbell, and Benita Alveranga have been sentenced for their roles in the violent take-over robberies of two metro-Atlanta businesses - a Loan Max store and a PNC Bank branch.
“The takeover-style robberies were designed to terrify employees and customers,” said U.S. Attorney Byung J. “BJay” Pak. “These violent criminals are off the streets – in Gibbs’ case for decades to come. We are committed to keep our communities safe from violence and seek justice for the victims of these crimes.”
“No one should ever be terrorized physically or emotionally, like the victims in these two violent armed robberies, simply because they work at a business or patronize that business,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Thanks to the assistance from our local law enforcement partners, these three criminals won’t be able to wreak harm on any other innocent citizens for a long time.”
“I’m proud of our department and their work alongside the other law enforcement agencies involved in this case,” said Lilburn Police Chief Bruce Hedley. “This teamwork across agencies resulted in the quick arrest of all three individuals. We support the U.S. Attorney’s Office for the Northern District of Georgia’s firm stance and commitment to reduce violent crimes in our communities.”
“We are appreciative of the cooperative effort of the involved agencies and the successful prosecution of the offenders. We will continue to work closely with our Federal, State, and local law enforcement partners in our efforts to combat criminal activity,” said Gwinnett County Police Chief Butch Ayers.
“I am proud of the results the Conyers detectives achieved on this armed bank robbery. Their work along with the efforts of our local and federal partners have taken these violent predators off the streets for a substantial amount of time. I hope this outcome gives the victims some peace of mind,” said Conyers Chief of Police Gene Wilson.
“The Cobb County Police Department remains committed to interagency cooperation to help keep the citizens of Cobb County safe. Law enforcement agencies must continue to work together and share information in cases like this in order to make sure violent criminals who prey upon the public are brought to justice regardless of jurisdictional lines,” said Cobb County Police Chief Tim Cox.
According to U.S. Attorney Pak, the charges and other information presented in court: Gibbs, along with co-defendant Kyre Campbell, robbed at gunpoint a Loan Max store on the morning of November 3, 2016. Gibbs, while pointing the firearm in the faces of two employees, demanded all of the money in the safe. He fled the establishment with the cash.
Later that same afternoon, Gibbs, Campbell and Campbell’s girlfriend, Benita Alveranga, robbed a PNC Bank. During that robbery, Gibbs repeatedly hit a teller with his gun while demanding she move quickly in emptying her drawer. He stole cash from the bank, and all of the defendants fled. Lilburn Police Department located them and after a brief police chase, Campbell and Alveranga were captured. Gibbs was able to flee the scene. A multi-jurisdictional investigation eventually led to his capture three weeks later.
- Lenard Gibbs, 36, of Atlanta, Georgia, has been sentenced to 59 years, seven months in prison to be followed by five years of supervised release, and ordered to pay restitution in the amount of $3,089. On June 13, 2019, a jury convicted Gibbs of Hobbs Act, and armed bank, robbery charges, and related offenses of brandishing a firearm during the robberies.
- Kyre Campbell, 24, of Lilburn, Georgia, pleaded guilty to brandishing a firearm during the bank robbery of PNC bank on January 4, 2019. He was sentenced to seven years in prison to be followed by five years of supervised release and ordered to pay restitution in the amount of $3,089.00.
- Benita Alveranga, 25, of Lilburn, Georgia, pleaded guilty to Misprision of a Felony on July 2, 2019. She was sentenced to one year, one day in prison to be followed by one years of supervised release and ordered to pay $3,089.00 in restitution.
This case was investigated by the Federal Bureau of Investigation, Cobb County Police Department, Conyers Police Department, Lilburn Police Department, and Gwinnett Police Department.
Assistant U.S. Attorneys Phyllis Clerk and Angela Adams prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
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.
Citizen of El Salvador Charged with Illegally Reentering U.S.Read the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that, on August 13, 2019, a federal grand jury in New Haven returned an indictment charging MARIO ANTONIO HERRERA, 36, a citizen of El Salvador last residing in East Hartford, with one count of illegally reentering the U.S. after being deported.
Herrera appeared today before U.S. Magistrate Judge Robert M. Spector in New Haven and entered a plea of not guilty to the charge.
As alleged in court documents and statements made in court, on March 26, 2010, Herrera was deported from the U.S. to El Salvador. Herrera’s removal followed his conviction in Manchester Superior Court in July 2008 for assault in the second degree. Herrera’s criminal history also includes Connecticut convictions for carrying a dangerous weapon, reckless endangerment, and other offenses.
On July 1, 2019, Herrera, who was using the name Antonio Morales, was arrested by the East Hartford Police Department and charged with disorderly conduct and interfering/resisting arrest.
If convicted of the charge of illegal reentry, Herrera faces a maximum term of imprisonment of 10 years.
Herrera has been detained since his arrest.
U.S. Attorney Durham stressed that an indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial at which it is the government’s burden to prove guilt beyond a reasonable doubt.
This matter is being investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement. The case is being prosecuted by Assistant U.S. Attorney Deborah R. Slater.
California Man Sentenced to over 25 Years in Prison for Trafficking Meth from California to IowaRead the Press Release
A man who admitted trafficking meth from California to Iowa was sentenced August 26, 2019, to more than 25 years in federal prison.
Thomas Edward Clutts, Jr., age 45, from Riverside, California, received the prison term after a January 4, 2019, guilty plea to conspiracy to distribute methamphetamine.
In a plea agreement, Clutts admitted he arranged for another man to purchase a total of seven pounds of methamphetamine from a California source for distribution in Iowa. Clutts also admitted possessing a gun while in Iowa that he carried in connection with and furtherance of the drug conspiracy. Clutts has a long criminal history, including prior convictions for multiple drug-related crimes and robbery in California
Clutts was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Clutts was sentenced to 323 months’ and 25 days imprisonment. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Clutts is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; and the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 1:18-cr-00070-CJW-MAR.
Follow us on Twitter @USAO_NDIA.
Buffalo Man Pleads Guilty to Gun and Drug ChargesRead 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 Felix M. Velazquez, 43, of Buffalo, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to possession with intent to distribute cocaine, and possession of a firearm in furtherance of drug trafficking. The charges carry a mandatory minimum penalty of five years in prison, a maximum of life, and a $1,000,000 fine.
Assistant U.S. Attorney Seth T. Molisani, who is handling the case, stated that in June 2018, the Lackawanna Police Department Narcotics Unit began investigating the narcotics trafficking activities of the defendant, a mid-level street cocaine distributor who had a large customer base in the Buffalo area. Velazquez conducted his distribution activities through his cellular phone, and at his apartment on Weyand Avenue in Buffalo.
On August 14, 2018, the Buffalo Police Department executed a New York State search warrant at the defendant’s Weyand Avenue residence. Officers recovered approximately 130 grams of cocaine; a digital scale; drug packaging materials; a .380 semi-automatic pistol, loaded with seven rounds; and $42,955.00 cash.
The plea is the result of an investigation by the Lackawanna Police Department, under the direction of Chief James Michel; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
Sentencing is scheduled for January 6, 2020, at 9:30 a.m. before Judge Arcara.
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Buffalo Man Faces at Least 10 Years in Prison After Pleading Guilty for His Role in Drug Trafficking OrganizationRead 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 Quinton Jones, 39, of Buffalo, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to conspiracy to possess with intent to distribute, and distribution of, five kilograms or more of cocaine. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that between November 2016 and September 29, 2017, the defendant conspired with others to distribute cocaine in the South Buffalo area for a drug trafficking organization led by co-defendant Cesar Rivera-Figueroa. On August 3, 2017, co-defendant Daniel Navarro obtained three kilograms of cocaine from co-defendant Luis Andino. At the direction of Rivera-Figueroa, Navarro distributed the cocaine to three others, including Quinton Jones. On August 18, 2018, Jones made payment of approximately $30,000 for this kilogram of cocaine.
On September 13, 2017, the drug trafficking organization received several parcels containing cocaine through the U.S. Postal Service. Rivera-Figueroa contacted Jones immediately upon receipt of the parcels to arrange for the defendant to pick up a kilogram and distribute it in the Buffalo area. On his way to collect the kilogram of cocaine, Jones was stopped by a marked Erie County Sheriff’s vehicle, and law enforcement found him in possession of $19,995 in U.S. currency.
Over the course of the defendant’s involvement in the conspiracy, Jones regularly distributed at least one kilogram of cocaine per month on behalf of the drug trafficking organization.
On September 29, 2017, the defendant was arrested inside his residence at 57 Juniata Street in Buffalo. A search warrant was executed and investigators recovered $4,023 in U.S. currency; a .22 caliber rifle with a defaced serial number; multiple rounds of ammunition; and a quantity of cocaine.
Jones is one of 12 defendants charged in this case and the eighth to be convicted.
The plea is the result of an investigation by the Federal Bureau of Investigation, Safe Streets Task Force, under the direction of Special Agent-in-Charge Gary Loeffert; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; and the New York State Police, under the direction of Major Edward Kennedy.
Sentencing is scheduled for January 17, 2020, before Judge Vilardo.
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Bridgeport Man with Prior Federal Heroin Conviction Pleads Guilty to Heroin Trafficking OffenseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that STEVEN HUTCHINSON, 29, of Bridgeport, pleaded guilty today in Hartford federal court to one count of possession with intent to distribute heroin.
According to court documents and statements made in court, on November 20, 2014, Hutchinson was sentenced in federal court to 60 months of imprisonment, followed by five years of supervised release, for distributing heroin in Bridgeport. He was released from federal prison on May 22, 2018.
Shortly after Hutchinson was released from prison, Stamford Police received information that Hutchinson was again selling heroin in Fairfield County. On June 21, 2018, a Stamford Police officer, acting in an undercover capacity, arranged to purchase 300 bags of heroin from Hutchinson in exchange for $1,800. Hutchinson was arrested after he arrived at a parking lot in Stamford to complete the transaction and exited his car in possession of 300 bags of heroin.
Subsequent laboratory analysis of the seized drugs revealed that the bags contained a mixture of heroin and fentanyl.
Hutchinson is scheduled to be sentenced by U.S. District Judge Michael P. Shea in Hartford on November 19, 2019, at which time he faces a maximum term of imprisonment of 20 years. Hutchinson also faces additional penalties for violating the conditions of his supervised release from his prior federal conviction.
Hutchinson has been detained since his arrest.
This investigation has been conducted by the Stamford Police Department and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Rahul Kale.
Brevard County Man Sentenced to 50 Years in Federal Prison for Production of Child PornographyRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. has sentenced Roberto Oquendo (38, Brevard County) to 50 years in federal prison for conspiracy to produce child pornography and production of child pornography. The court also ordered Oquendo to forfeit two cellphones that he had used in connection with the offense.
Oquendo had pleaded guilty on January 30, 2019.
According to the plea agreement, on September 15, 2016, Oquendo was the subject of a traffic stop. During the traffic stop, deputies from the Brevard County Sheriff’s Office received a tip that Oquendo possibly had child pornography in his possession. As a result, task force agents with the FBI and Homeland Security Investigations interviewed Oquendo. During the interview, Oquendo admitted that, for several years, he had used a cellphone to search for and view child pornography. Oquendo also disclosed that while residing in Brevard County, he had used a cellphone to take explicit photos of two female children in his custody.
Further investigation led to the seizure of several items of computer media from a place in Brevard County where Oquendo had resided. The computer media contained thousands of images and videos of the two young girls, who were toddlers at the time, as well as other children engaged in sexually explicit conduct. Oquendo’s collection of child pornography contains depictions of infants, toddlers, and young children engaged in sexual activity, including sadistic conduct.
In addition, Oquendo had used a social media application to engage in live chats with a co-conspirator, Rose Beth Litzky, during which Litzky engaged two female children in sexually explicit conduct for Oquendo’s viewing and sexual gratification. At the time, Oquendo resided in Virginia, and Litzky resided in Florida. Oquendo created screenshots of the visual depictions involving the two girls.
A federal jury previously found Litzky guilty of conspiracy to produce child pornography, production of child pornography, and possession of child pornography. Her sentencing hearing is set for October 15, 2019.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by the Federal Bureau of Investigations, Homeland Security Investigations, and the Brevard County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.
Berkeley County man admits to firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Herman Lee Brown, Jr., of Inwood, West Virginia, has admitted to a firearms violation, United States Attorney Bill Powell announced.
Brown, age 51, pled guilty to one count of “Unlawful Possession of a Firearm.” Brown, a person prohibited from having a firearm, admitted to having a .380 caliber pistol in July 2018 in Berkeley County.Brown faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Martinsburg Police Department investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Bangladeshi National Pleads Guilty to Bringing Aliens to the United StatesRead the Press Release
A Bangladeshi national formerly residing in Monterrey, Mexico, pleaded guilty for his role in a scheme to smuggle aliens to the United States for the purpose of commercial advantage or private financial gain.
With the plea, Moktar Hossain, 31, admitted that from March 2017 to August 2018, he conspired to bring and brought Bangladeshi nationals to the United States at the Texas border in exchange for payment. Hossain operated out of Monterrey, Mexico, where he housed aliens before sending them on the last leg of the journey to the United States. Hossain paid drivers to transport the aliens to the U.S. border, and gave them instructions how to cross the Rio Grande River.
“Human smuggling is a national security threat,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Today’s plea makes clear that defendants who smuggle illegal aliens across the United States border for profit should expect to face the consequences in a United States courtroom.”
“HSI is committed to dismantling criminal schemes that mitigate the security of our borders and disrupting the flow of illicit money to these criminal networks,” said Special Agent in Charge Shane Folden of U.S Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) San Antonio. “HSI remains steadfast in aggressively pursuing members of transnational criminal organizations that exploit and endanger the people they smuggle into the United States. We will continue to work with our law enforcement partners to maintain the integrity of our borders and the safety of our communities.”
The guilty plea was accepted by U.S. District Judge Diana Saldana. Sentencing has not yet been scheduled.
This case is being investigated by HSI Laredo, with assistance from HSI Monterrey, HSI Houston, HSI Calexico, U.S. Customs and Border Protection, U.S. Border Patrol and the U.S. Marshals Service. The investigation is being conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
This case is being prosecuted by Trial Attorneys James Hepburn and Erin Cox of the Criminal Division’s Human Rights and Special Prosecutions Section with assistance from the U.S. Attorney’s Office for the Southern District of Texas.
Augusta Man Sentenced to Time Served for Illegal Possession of a SilencerRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Ryan D. Merrill, 40, of Augusta, Maine, was sentenced today in U.S. District Court by Judge Lance E. Walker to time served (six days) in jail and three years of supervised release for possessing an unregistered silencer. Merrill pleaded guilty on April 23, 2019.
According to court records, on July 17, 2018, officers with the Augusta Police Department responded to a complaint of gunshots in a residential area. Merrill had been firing a .22 caliber rifle at a fox and at small propane tanks behind his home. Officers discovered that Merrill had modified an automotive oil filter and attached it to the muzzle of the rifle using a special adapter in order to suppress the sound of the shots he fired. Merrill had not registered the silencer in the National Firearms Registration and Transfer Record and he knew that the possession of the silencer was prohibited by federal law.
The case was investigated by the Augusta Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Auburn Man Sentenced to 60 Months in PrisonRead the Press Release
FORT WAYNE – David Lee Wirges, age 39, of Auburn, Indiana, was sentenced by U.S. District Court Chief Judge Theresa L. Springmann after pleading guilty to possession with intent to distribute heroin and selling a firearm to a felon, announced United States Attorney Thomas L. Kirsch II.
Wirges was sentenced to 60 months imprisonment, followed by 3 years of supervised release, and the judgment included forfeiture of $1,546.00 in United States currency.
According to documents in the case, in March of 2018, a confidential informant made controlled buys of heroin from Wirges at his Auburn, Indiana residence at a time when Wirges was out on bond from drug charges pending against him in Dekalb County Superior Court. During the federal investigation, Wirges also sold a .380 caliber firearm to the confidential informant even though Wirges knew the confidential informant was a convicted felon.
This case was investigated by the Bureau of Alcohol Tobacco Firearms and Explosives with the assistance of the Auburn Police Department. The case was handled by Assistant United States Attorney Tina Nommay.
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Attorney General’s Advisory Subcommittee on Native American Issues to Convene in New MexicoRead the Press Release
BILLINGS—U.S. Attorney Kurt Alme will meet with fellow members of the Attorney General’s Advisory Subcommittee on Native American Issues (NAIS) in Santa Ana Pueblo, New Mexico, to discuss public safety and law enforcement issues that impact Native American and Alaska Native communities. Attorney Alme is vice chair of the subcommittee.
“After listening to tribal leaders last week at the Government to Government Consultation in Michigan, I look forward to meeting with the other U.S. Attorneys from across the country to improve safety for our American Indians and Alaska Natives, and especially for indigenous women,” Attorney Alme said. “We need to work together to reduce drug trafficking and violence, to ensure that those who go missing are found, and that victims of crime receive the help they need to heal.”
The annual meeting will begin Aug. 28 and run through Aug. 30. During this time, the NAIS will engage with tribal leaders and develop strategies and best practices to address missing and murdered indigenous people, drug trafficking, needed law enforcement resources, and safeguarding children from sexual abuse in Indian country.
The most common crimes investigated in Indian country include child sexual abuse, violent assaults, and adult sexual assaults, followed by homicide, other forms of child abuse, drug, and property crimes. According to a 2016 study funded by the National Institute of Justice, more than four in five American Indian and Alaska Native adults have experienced some form of violence in their lifetime, and more than half of all American Indian and Alaska Native women have experienced violence from an intimate partner. Native women and girls suffer a high rate of violence, including murder.
“United States Attorneys nationwide are committed to improving public safety in Indian country and rural Alaska. The work of Attorney General Barr’s Native American Issues Subcommittee is focused on reducing violent crime, improving law enforcement resources, and combating the distribution of methamphetamine and opioids,” said U.S. Attorney Trent Shores, of the Northern District of Oklahoma and chair of the NAIS. “The disproportionate rates of violence affecting Native American and Alaska Native women is particularly troubling to me. With Attorney General Barr’s leadership, we will continue working with tribal leaders to find solutions to the epidemic of violence against indigenous women.”
Panel discussions will also focus on the Indian Arts and Crafts Act and preserving Native American cultural patrimony. The Indian Arts and Crafts Act of 1990 is a truth-in-advertising law that prohibits misrepresentation in the marketing of Indian arts and crafts products within the United States. It is illegal to offer or display for sale, or sell any art or craft product in a manner that falsely suggests it is Indian produced, an Indian product, or the product of a particular Indian or Indian tribe or Indian arts and crafts organization, resident within the United States.
The NAIS consists of 53 U.S. Attorneys serving in districts that include Indian Country or one or more federally recognized tribes and makes policy recommendations to the Attorney General. The NAIS has identified four priority areas: 1) Violent crime 2) Law enforcement resources 3) Drug trafficking and substance abuse, and 4) White collar crime. It is the longest standing subcommittee to the Attorney General’s Advisory Committee and helps develop, shape, and otherwise implement justice policies affecting Native Americans and Alaska Natives.
In fiscal year 2018, the Department of Justice awarded $113 million in grant awards to improve public safety, serve victims of crime, combat violence against women, and support youth programs, to 134 Indian tribes and Alaska Native villages. In addition, the Department awarded a total of 154 grants totaling $88 million as part of the first-ever Tribal Victim Service Set-Aside program; these awards were supported by the Crime Victims Fund, a repository of federal criminal fines, fees, and special assessments. The awards will help tribes develop, expand and improve services to victims of crime by providing funding, programming and technical assistance. Even more funding will be available – up to $168 million – under the set-aside this year.
In July 2019, the Department announced a new tool giving tribal governments the ability to input data directly and gain access to the FBI’s National Sex Offender Registry (NSOR) using the Tribe and Territory Sex Offender Registry System (TTSORS). TTSORS is a fully functioning registry system that complies with Sex Offender Registration and Notification Act requirements. The system connection will be available to all tribal governments already participating in the Tribal Access Program (TAP), which allows information sharing between tribal and federal government criminal information systems. TAP has been instrumental in assisting tribes with ongoing implementation of SORNA. In fiscal year 2019, the department expanded TAP to 25 more tribes, for a total of more than 70 participating tribes across the country.
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Alabama Man Sentenced to Prison for Filing a False Tax ReturnRead the Press Release
WASHINGTON – A Jefferson County man was sentenced to 30 months in prison today for filing a false tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Jay E. Town for the Northern District of Alabama.
According to court documents and information provided to the court, Larry Wayne Battle owned and operated a tax preparation business in Jefferson County, Alabama. On his 2014 federal income tax return, Battle understated the gross receipts for his tax preparation business by approximately $321,638, resulting in a tax loss to the Internal Revenue Service (IRS) of $163,401. Battle also admitted to preparing false tax returns for clients.
“Today’s prison sentence for Larry Wayne Battle is an example of the commitment of the Tax Division and its partners in United States Attorneys’ Offices and the IRS to prosecute fraudulent tax return preparers and to hold such unscrupulous preparers accountable,” said Principal Deputy Assistant Attorney General Zuckerman.
“Tax preparers are held to a higher standard because of their position with public trust,” said U.S. Attorney Town. “We will continue to protect the public fisc from those who abuse their position to the detriment of the American taxpayer.”
In addition to the term of imprisonment imposed, Battle was ordered to serve one year of supervised release and to pay restitution in the amount of $234,300.53 to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Town commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant United States Attorney and former Tax Division Trial Attorney Allison Garnett and Assistant United States Attorney Melissa Atwood, who prosecuted the case.
Alabama Man Sentenced to Prison for Filing a False Tax ReturnRead the Press Release
A Jefferson County man was sentenced to 30 months in prison today for filing a false tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Jay E. Town for the Northern District of Alabama.
According to court documents and information provided to the court, Larry Wayne Battle owned and operated a tax preparation business in Jefferson County, Alabama. On his 2014 federal income tax return, Battle understated the gross receipts for his tax preparation business by approximately $321,638, resulting in a tax loss to the Internal Revenue Service (IRS) of $163,401. Battle also admitted to preparing false tax returns for clients.
“Today’s prison sentence for Larry Wayne Battle is an example of the commitment of the Tax Division and its partners in United States Attorneys’ Offices and the IRS to prosecute fraudulent tax return preparers and to hold such unscrupulous preparers accountable,” said Principal Deputy Assistant Attorney General Zuckerman.
“Tax preparers are held to a higher standard because of their position with public trust,” said U.S. Attorney Town. “We will continue to protect the public fisc from those who abuse their position to the detriment of the American taxpayer.”
In addition to the term of imprisonment imposed, Battle was ordered to serve one year of supervised release and to pay restitution in the amount of $234,300.53 to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Town commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant United States Attorney and former Tax Division Trial Attorney Allison Garnett and Assistant United States Attorney Melissa Atwood, who prosecuted the case.
Akron Man Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – An Akron, Ohio man pled guilty to possessing with intent to distribute methamphetamine, heroin, and fentanyl in Huntington last year, announced United States Attorney Mike Stuart. Anton Marcel Jeffries, 25, pled guilty in federal court in Huntington. Stuart commended the investigative efforts of the Huntington Violent Crime & Drug Task Force and the Huntington Police Department.
“Akron has become a particular problem point for West Virginia. We don’t need Akron exporting their problems to our district. More must be done to keep Akron troublemakers in Akron,” said United States Attorney Mike Stuart. “A city that once exported tires, from the Rubber Capital of the world, is now exporting drugs to West Virginia and other great places. It needs to end. Jeffries had 108 grams of meth, 25 grams of heroin and 12 grams of fentanyl. We’re working with our law enforcement partners to get Akron drug dealers out of here and send them to federal prison.”
Jeffries admitted that on September 19, 2018, in an apartment residence at 917 9th Ave. in Huntington, he possessed multiple plastic baggies of what was purported to be methamphetamine, heroin, and fentanyl. After forensic testing, the substances possessed by Jeffries were determined to be approximately 108 grams of methamphetamine, 25 grams of heroin, and 12 grams of fentanyl.
Jeffries faces a minimum mandatory 5 years in prison with a maximum of 40 years when sentenced on December 2, 2019.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorneys Ryan A. Keefe and Monica D. Coleman are handling the prosecution.
This case is being prosecuted as part of Operation Synthetic Opioid Surge (S.O.S.), a focused enforcement effort that seeks to reduce the supply of deadly synthetic opioids in high impact areas.
Akron Drug Trafficker Sentenced to 131 Months in Prison for Drug and Gun CrimesRead the Press Release
CHARLESTON, W.Va. – An Akron, Ohio, drug trafficker was sentenced to 131 months in prison, announced United States Attorney Mike Stuart. Rodney Lammar Hargrove, 48, previously pled guilty to possession with intent to distribute methamphetamine and carrying a firearm during a drug trafficking crime.
“Another Akron drug dealer on Charleston’s West Side with 20 grams of pure meth, 6 grams of a mixture containing deadly carfentanyl, and a gun,” said United States Attorney Mike Stuart. “A gram of carfentanyl could kill 50,000 people, so we’re very fortunate law enforcement intercepted this deadly mixture. Hargrove will now serve almost 11 years in prison before he can step foot in Akron or Charleston again.”
As established by public court filings and hearings, on February 16, 2018, police were investigating a known drug house on Frame Street in Charleston. The investigators found heroin, needles, and other drug paraphernalia in the house. As they were preparing to leave, Hargrove entered the house. Hargrove admitted that he was carrying a gun, which the investigators retrieved for their safety. The gun was a loaded .22 caliber revolver. Hargrove also gave the investigators permission to retrieve drugs that he was carrying: approximately 20 grams of pure methamphetamine and 6 grams of a mixture containing carfentanyl, a powerful and deadly fentanyl analogue.
Investigators arrested Hargrove and transported him to the police station, where he confessed to investigators that he was a drug dealer. Hargrove explained that he had been receiving about a half-ounce of methamphetamine and 10 grams of heroin at a time for resale in Charleston.
Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorneys Drew O. Inman and L. Alexander Hamner prosecuted the case.
Follow us on Twitter: SDWVNews and USAttyStuart
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Monday 26 August 2019
Winnebago Man Sentenced for Sexual Assault on the Winnebago Indian ReservationRead the Press Release
United States Attorney Joe Kelly announced today that Russell Morrison, 18, of Winnebago, was sentenced Monday by Senior United States District Judge Laurie Smith Camp to 60 months’ imprisonment for sexually assaulting a minor on the Winnebago Indian Reservation. There is no parole in the federal system. Morrison will be on supervised release for a period of five years after he serves his sentence. He will also have to register as a sex offender.
Morrison sexually assaulted an intoxicated minor after providing her with alcohol. The minor did not recall much of the incident, but learned of it later when images of her in a state of undress were shared on Snapchat, a social media application. The minor reported that she thought she may have been sexually assaulted and obtained a rape kit. Morrison’s DNA was obtained and analysis revealed his DNA from the sexual assault kit obtained from the minor.
This case was investigated by the Winnebago Police Department and the Federal Bureau of Investigation.
Van Zandt County Man Guilty of Drug Trafficking in East TexasRead the Press Release
TYLER, Texas – A 55-year-old Canton, Texas man has pleaded guilty to federal drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown and FBI Special Agent in Charge Matthew D. DeSarno.
Andrew Mark Harris pleaded guilty to conspiracy to distribute and possess with intent to distribute methamphetamine today before U.S. Magistrate Judge John D. Love.
According to information presented in court, on July 14, 2018, Harris was stopped for a traffic violation in Van Zandt County, Texas, and found to be in possession of 1.4 grams of methamphetamine. During the investigation, Harris admitted to being responsible for the distribution of between 50 and 200 grams of methamphetamine. Harris was indicted by a federal grand jury on May 22, 2019 and charged with federal drug trafficking violations.
Under federal statutes, Harris faces up to 20 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the Federal Bureau of Investigation and the Van Zandt County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Alan Jackson.
U.S. Attorney Steven D. Weinhoeft's Statement on Fatal Shooting of Illinois State Trooper Nick HopkinsRead the Press Release
Steven D. Weinhoeft, U.S. Attorney for the Southern District of Illinois, issued this
statement following the death of Illinois State Trooper Nick Hopkins:“We were deeply saddened to learn that Trooper Nick Hopkins will not survive the senseless act of
violence he suffered in the line of duty earlier this morning. The entire federal law enforcement
community stands as one today to mourn his passing. Our hearts go out to his family and all those
who are grieving his loss. We also condemn in the strongest possible terms the despicable, cowardly
act that took his life.”“Trooper Hopkins was a dedicated officer who served our community with honor, bravery, and
fidelity. He leaves behind an enduring legacy that will live on in the lives he touched; in the
work that the courageous men and women of the Illinois State Police continue to perform; and in a
community that is safer because of his devoted service. His loss underscores the real dangers that
are routinely faced by those who protect and serve us each and every day. Their work is truly
heroic, and we are forever in their debt.”
Three Defendants Indicted for Transnational Fraud SchemeRead the Press Release
An indictment was unsealed today in federal court in Central Islip charging Kamal Zafar, Jamal Zafar and Armughanul Asar with conspiracy to commit wire fraud and conspiracy to launder money in furtherance of their fraudulent scheme directed at thousands of individuals in the United States. The defendants were arrested this morning in the Eastern District of New York, and are scheduled to be arraigned this afternoon before United States Magistrate Judge Steven I. Locke.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Jonathan D. Larsen, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI), J. Russell George, Treasury Inspector General for Tax Administration (TIGTA), James P. O’Neill, Commissioner, New York City Police Department (NYPD), and Kenneth Jackson, Commissioner, Garden City Police Department (GCPD), announced the charges.
As alleged in the indictment, between January 2018 and September 2018, the defendants, together with co-conspirators operating from call centers in India, targeted victims in the United States, and falsely claimed to be employees of the IRS, the Social Security Administration or the Drug Enforcement Administration. The victims were informed that they owed a sum of money to the United States government or one of its agencies and that they would be arrested if the debts were not promptly paid. After victims wired payments to bank accounts that the defendants had opened in the names of inactive and shell corporations to receive the fraud proceeds, the funds were withdrawn and laundered through additional bank accounts. The scheme is estimated to have netted over $2 million from victims across the United States.
“The defendants’ transnational fraud scheme utilized callers falsely claiming to be federal employees and threatening arrest to extract payment from their victims,” stated United States Attorney Donoghue. “This Office, together with our federal and local law enforcement partners, will continue working tirelessly to hold accountable scam artists who perpetrate telephone frauds.”
“These defendants remotely used ruthless scare tactics and threatened innocent citizens including the elderly, widows, and professionals under the guise of having to pay off unfounded financial obligations to the U.S. government for their own personal gain,” stated IRS-CI Special Agent-in-Charge Larsen. “IRS-CI will continue to apprehend those who victimize the public while posing as government officials both abroad and here at home.”
“The victimization of American taxpayers by individuals impersonating Internal Revenue Service employees is a serious crime,” stated TIGTA Inspector General George. “I would like to thank the U.S. Attorney’s Office, Internal Revenue Service Criminal Investigation, the New York City Police Department and the Garden City Police Department on their outstanding efforts resulting in this indictment.”
“These indictments reflect the lengths that criminals will go in order to fraudulently separate honest people from their hard earned money,” stated NYPD Commissioner O’Neill. “I congratulate the NYPD detectives, our law enforcement partners, and the U.S. Attorney for the Eastern District of New York for their hard work in dismantling this illegal operation.”
“This case is an excellent example of collaboration and cooperation between multiple law enforcement agencies, which included federal, city and local authorities in the arrest of the participants of a major scheme to defraud numerous victims throughout the United States,” stated GCPD Commissioner Jackson.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face up to 20 years’ imprisonment.
The government’s case is being handled by the Office’ Long Island Criminal Division. Assistant United States Attorneys Charles P. Kelly and Diane Leonardo are in charge of the prosecution.
The Defendants:
KAMAL ZAFAR
Age: 51
South Huntington, New YorkJAMAL ZAFAR
Age: 48
Huntington, New YorkARMUGHANUL ASAR
Age: 68
College Point, New YorkE.D.N.Y. Docket No. 19-CR-385 (SJF)
Tankship Owner and Operator and Senior Officers Convicted of Violations for Air PollutionRead the Press Release
The owner and operator will pay a total criminal fine of $3,000,000.00
ST. CROIX – U.S. Attorney Gretchen Shappert for the District of the Virgin Islands announced that IONIAN SHIPPING & TRADING CORP., LILY SHIPPING LTD., STAMATIOS ALEKIDIS, ATHANASIOS PITTAS and REY ESPULGAR have been convicted and sentenced for various pollution, recordkeeping, and obstruction of justice crimes on the Motor Tanker (“M/T”) Ocean Princess in St. Croix, U.S.V.I. The defendants’ conduct included using fuel that exceeded the maximum allowable sulfur concentration in the U.S. Caribbean Emission Control Area (“U.S. Caribbean ECA”) and efforts to deceive U.S. Coast Guard inspectors about the source of the fuel being used aboard the M/T Ocean Princess.
The M/T Ocean Princess was owned by LILY SHIPPING LTD. and operated by IONIAN SHIPPING & TRADING CORP., both Greece-domiciled companies. The vessel was engaged in transporting petroleum products throughout the Caribbean including from Limetree Terminals, St. Croix, U.S.V.I. The commercial manager of the vessel would authorize the Master of the vessel, STAMATIOS ALEKIDIS, to transfer petroleum cargo from the cargo tanks into the vessel’s fuel tanks, known as bunker tanks. As the owner and operator of the vessel, LILY SHIPPING LTD. and IONIAN SHIPPING & TRADING CORP. were further responsible for ensuring the vessel used fuel that complied with the U.S. Caribbean ECA standards.
While vessels are operating within the U.S. Caribbean ECA, they must not use fuel that exceeds 0.10% sulfur by weight in order to help protect air quality. Between January 3, 2017, and July 10, 2018, the M/T Ocean Princess entered into, and operated within, the U.S. Caribbean ECA using fuel that contained excessive sulfur on twenty-six separate occasions. The fuel was petroleum cargo that had been transferred to the fuel tanks as authorized by the vessel’s commercial manager. Once notification was received from Master STAMATIOS ALEKIDIS, Chief Officer REY ESPULGAR coordinated with Chief Engineer ATHANASIOS PITTAS to make the transfers from the cargo tanks to the bunker tanks. REY ESPULGAR then falsified the Oil Record Book, Part II, by failing to record that cargo had been transferred to the bunker tanks. ATHANASIOS PITTAS also falsified the Oil Record Book, Part I, by falsely recording that the fuel in the bunker tank originated from a shore-side company in St. Martin, F.W.I. Additionally, ATHANASIOS PITTAS created fictitious Bunker Delivery Notes that claimed the fuel in the bunkers came from the same shore-side company in St. Martin, F.W.I. Between March 2, 2016, and February 6, 2018, nineteen separate fictitious Bunker Delivery Notes were created on and kept aboard the vessel.
U.S. Coast Guard inspectors boarded the M/T Ocean Princess on July 10, 2018, to conduct an inspection. During the inspection, the U.S. Coast Guard discovered that the vessel was using fuel with an excessive sulfur content. Chief Officer REY ESPULGAR instructed some of the lower-ranking crewmembers to lie to the U.S. Coast Guard inspectors about where the fuel came from and to say the ship took on fuel in St. Martin, F.W.I., when in fact it did not.
“Protection of our unique environment and air quality are important priorities of federal law enforcement and prosecutors in the U.S. Virgin Islands,” said U.S. Attorney Shappert. “These convictions underscore our commitment to holding violators accountable while defending precious natural resources. I am deeply grateful for the way that the federal partners worked together during this investigation to ensure that Justice is served.”
“Ocean going vessels emit hazardous air pollutants or air toxics that are associated with adverse health effects impacting populations living near ports and coastlines,” said Tyler Amon, Special Agent in Charge of EPA’s criminal enforcement program in the Virgin Islands. “EPA, along with its law enforcement partners are committed to ensuring the shipping industry continues to comply with laws designed to protect air quality.”
“The results announced today send a strong message to anyone who seeks to take shortcuts and intentionally pollute our environment, and I couldn’t be prouder of the Coast Guard’s Resident Inspection Office in St. Croix and Sector San Juan marine inspectors who first identified the issue as well as our Coast Guard Investigative Service agents who worked closely with the Environmental Protection Agency in San Juan to investigate this case,” said Rear Adm. Peter Brown, Commander Coast Guard District Seven. “We will continue to work with our Department of Justice and environmental protection partners to hold accountable any who put profit above the protection of our waters, beaches, and the air above them for future generations.”
IONIAN SHIPPING & TRADING CORP. and LILY SHIPPING LTD. will each pay a fine of $1,500,000.00, be placed on four years of probation, and implement an Environmental Compliance Plan. STAMATIOS ALEKIDIS, ATHANASIOS PITTAS, and REY ESPULGAR were sentenced to three years of probation and ordered not to return to the United States on a ship during that time. REY ESPULGAR was also fined $3,000.00.
The U.S. Coast Guard Investigative Service and the U.S. Environmental Protection Agency-Criminal Investigation Division conducted the investigation. Assistant U.S. Attorney Kim Chisholm and Department of Justice, Environmental Crimes Section Senior Trial Attorney Kenneth Nelson prosecuted the case.
Statement of United States Attorney James P. Kennedy, Jr. Regarding Resolution of Criminal and Civil Forfeiture Cases Against Dr. Sreekrishna M. Cheruvu, M.D.Read the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051United States Attorney James P. Kennedy, Jr. announced today that the United States Attorney’s Office has executed a Non-Prosecution and Compliance Agreement dismissing all criminal charges against Dr. Sreekrishna M. Cheruvu, M.D., and entered into a stipulation resolving a civil disagreement over the correct CPT codes to bill for services rendered by T3 Medical, Dr. Cheruvu’s medical practice.
“Pursuant to the terms of the non-prosecution and compliance agreement, if Dr. Cheruvu’s medical license is restored, then any reimbursement claims he submits will, for a period of time, be monitored by a medical billing compliance expert agreed to by the parties,” Kennedy stated. “Additionally, the civil forfeiture case is being resolved with the government returning a total of $99,378.17, of the $466,158.33 seized from Dr. Cheruvu, to three different insurance companies he billed.”
In explaining his Office’s willingness to enter into a non-criminal disposition, Kennedy stated, “the crux of this litigation involved a dispute over the propriety of the billing codes used by Dr. Cheruvu in his medical practice. It was never a dispute over the quality of care provided by Dr. Cheruvu. Since the criminal and forfeiture cases were filed in 2014, my Office has continued carefully to collect, review, and evaluate evidence directed toward Dr. Cheruvu’s mens rea in billing as he did. Through that process new evidence came to light and at the end of that review, we determined that a non-criminal disposition was the just result. Remember, we are the Department of Justice, not the Department of Convictions.”
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St. Thomas Man Charged with Bringing Illegal Aliens into the U.S. Territory and Two Charged with Unlawful EntryRead the Press Release
St. Thomas, USVI – Kalik Aaron, 22, Arkim Clersaint, 20, and Le Shaun Fahie, 23, appeared today before U.S. Magistrate Judge Ruth Miller for an advice of rights hearing after being taken into custody by Homeland Security Investigations on August 25, 2019. Aaron was charged with Bringing in or Harboring Illegal Aliens, and Clersaint and Fahie were both charged with Improper Entry by an Alien, United States Attorney Gretchen C.F. Shappert announced. At the conclusion of the hearing, Magistrate Miller released the defendants pending trial.
According to court documents, on Sunday, August 25, 2019, at approximately 9:00 p.m., Customs and Border Security (CBP) Marine Interdiction agents stopped a vessel operated by Aaron after it was observed leaving Tortola, British Virgin Islands, and entered the United States’ waters near St. John with improper lighting. After stopping the vessel, CPB’s Maritime Interdiction agents discovered two aliens and one United States citizen onboard. The aliens were identified as Clersaint and Fahie, both citizens of St. Lucia. Clersaint and Fahie provided the agents with St. Lucian passports, and Aaron provided proof of U.S. citizenship. Aaron, the captain of the vessel, told the agents that all three individuals had departed St. Thomas in the Frydenhoj Lagoon area on the evening of August 25, 2019, onboard the vessel, and traveled to Jost Van Dyke, British Virgin Islands, for a few hours before returning to St. John. The point of entry and time of their arrival, however, is not a designated port of entry nor hour of operation for Immigration and Customs Enforcement.
This case is being investigated by Customs and Border Protection and Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Delia L. Smith.
United States Attorney Shappert reminds the public that an information is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty.
Southern Oregon Marijuana Trafficker Charged in Murder-For-Hire PlotRead the Press Release
MEDFORD, Ore.—A federal criminal complaint was unsealed today charging a Southern Oregon man and frequent marijuana trafficker with attempting to pay for the murder of an associate.
John Tobe Larson, 68, of Josephine County, Oregon, is charged with using interstate commerce facilities in the commission of murder-for-hire in violation of 18 U.S.C. § 1958.
According to the complaint, beginning in May 2019, the Oregon State Police Southwest Region Marijuana Team (OSP-SWRMJ) learned that Larson was involved in the interstate distribution of marijuana from Southern Oregon throughout the U.S. and smuggling cash back into Oregon via a private plane Larson pilots. As a result, OSP-SWRMJ and the U.S. Drug Enforcement Administration (DEA) began investigating Larson.
By May of 2019, investigators had learned that Larson was allegedly looking for someone to murder an associate who owed him approximately $75,000 in unpaid debt. In early June, investigators arranged for a special agent from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), acting in an undercover capacity, to meet with Larson in Grants Pass, Oregon to discuss his plans. Larson told the agent that he “would prefer that the body [of his associate] is never [expletive] found.” Larson went on to explain that he believed the intended victim was “a rat” who had worked with law enforcement in the past.
After further discussion, Larson and the agent agreed to a price of $20,000 for the murder. Before the meeting concluded, Larson told the agent that he was planning a flight on his private plane to deliver marijuana to and bring cash proceeds back from St. Louis, Missouri. Larson indicated that he would use the money he made from his trip to pay the agent a down payment for the planned murder.
On June 27, 2019, Larson met the agent at a hotel room in Grants Pass and delivered a $10,000 cash payment. Larson also provided the agent with the identity, address, phone numbers, and social media account information of the intended victim. He told the agent that he wanted his associate’s body dumped in the ocean where “lice and crabs” would naturally dispose of it and that he wanted a photo of the body going over the side of a boat before paying the remaining $10,000.
On August 21, 2019, Larson was arrested in Rogue River, Oregon. Immediately preceding the arrest, Larson provided the agent with $5,000 and concentrated marijuana after being lead to believe the murder was complete.
Larson made his first appearance in federal court today in Medford. A status conference and detention hearing are scheduled for September 16, 2019.
This case was investigated by the OSP-SWRMJ, DEA and ATF and is being prosecuted by Adam E. Delph and Marco A. Boccato, Assistant U.S. Attorneys for the District of Oregon.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
South Florida Doctor Pleads Guilty to Conspiring to Illegally Distribute OxycodoneRead the Press Release
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Omar Perez, Special Agent in Charge, U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG), Miami Regional Office, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Adolphus P. Wright, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division announced that Dr. Rodolfo Gonzalez Garcia, 65, of Weston, Florida pled guilty on August 23, 2019, to conspiring to dispense a controlled substance, Oxycodone, before U.S. District Judge Roy K. Altman (Case No. 19-cr-20055).
According to the court record, including the agreed upon factual proffers, from November 2016, through and including September 2018, Dr. Rodolfo Gonzalez Garcia, his wife Arlene Gonzalez, 59, also of Weston, Annie Suarez Gonzales, 35, of Chicago, Illinois, and Fidel Marrero-Castellanos, 57, of Hialeah, Florida and others, used West Medical Office, Inc. located in Hialeah (later named West Pines Medical Office) for illicit purposes. During this time period, the defendants agreed to prescribe purported patients that had been brought to the office by patient recruiters, prescriptions for Oxycodone. They also agreed that patient recruiters could merely bring lists containing the names of purported patients directly to West Medical Office, instead of requiring the patients’ presence. In either scenario, the defendants agreed that the patient or patient recruiters would pay West Medical Office a certain cash amount per patient present in the office or per patient name on a list, in exchange for an Oxycodone prescription. Sometimes, these agreements—money for prescriptions—were directly with the purported patient. The defendants knew that these patients were Medicare and Medicaid beneficiaries, and that filling those prescriptions at pharmacies would result in the submission of claims to Medicare and Medicaid for payment of those prescriptions.
The charged co-conspirators had various roles in the conspiracy. Marrero-Castellanos acted as a patient recruiter, bringing lists and paying cash in exchange for a prescription for the names on his list. Marrero-Castellanos took the patients with their prescriptions to pharmacies, including Medicare Part D participating pharmacies, to fill the aforementioned prescriptions. When he got the prescriptions based on just a patient list, he provided the aforementioned prescriptions to pharmacies, including Medicare Part D participating pharmacies. Sometimes, the patients went to the pharmacies on their own. All of the recruited patients gave Marrero-Castellanos their Oxycodone pills. Marrero-Castellanos sold those pills to others. Suarez and Arlene Gonzalez facilitated the exchange of cash for prescriptions, filled out prescriptions, and in certain instances, Arlene Gonzalez signed prescriptions with Dr. Rodolfo Gonzalez Garcia’s name. These activities occurred even when Dr. Rodolfo Gonzalez Garcia was not in the office. To facilitate the conspiracy, Dr. Rodolfo Gonzalez Garcia provided prescriptions for Oxycodone, even though he did not provide patients with a meaningful consultation or examination commensurate with prescribing oxycodone according to national standards and norms, nor those of the State of Florida, for such prescriptions. As a result of the conspiracy, Dr. Gonzalez Garcia unlawfully distributed Oxycodone.
Dr. Gonzalez Garcia is scheduled to be sentenced on November 8, 2019, by Judge Altman. He faces a maximum statutory sentence of 20 years in prison.
Co-defendants Arlene Gonzalez and Suarez pled guilty to conspiracy to pay and receive health care kickbacks and are scheduled to be sentenced on November 8, 2019, and October 25, 2019, respectively. They each face a maximum statutory sentence of 5 years in prison. Co-defendant Marrero-Casetellanos previously pled guilty to conspiracy to pay and receive health care kickbacks and conspiracy to distribute controlled substances and is scheduled to be sentenced on October 25, 2019. He faces a maximum statutory sentence of 20 years in prison.
U.S. Attorney Fajardo Orshan commended the investigative efforts of HHS-OIG, FBI and DEA. This case was prosecuted by Assistant U.S. Attorneys Michael Gilfarb and Lindsey Lazopoulos Friedman.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Sallisaw Man Sentenced to 18 Months for Possession of Incendiary BombRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Randall Doyle McGuire, age 39, of Sallisaw, Oklahoma, was sentenced to 18 months’ imprisonment and 3 years of supervised release for Possession Of Unregistered Firearm (Destructive Device-Incendiary Bomb), in violation of Title 26, United States Code, Sections 5861(d), 5841 and 5871. The charges arose from an investigation by the Sallisaw Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Indictment alleges that on or about July 16, 2018, within the Eastern District of Oklahoma, the defendant knowingly possessed a destructive device – an incendiary bomb – which is a firearm, as defined in Title 26, United States Code, Section 5845, not registered to him in the National Firearms Registration and Transfer Record.
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.
Rogersville Business Owner Indicted for $4 Million Fraud Scheme, Failure to Pay TaxesRead the Press Release
SPRINGFIELD, Mo. – A Rogersville, Missouri business owner has been indicted by a federal grand jury for a $4 million scheme to defraud his customers and his failure to pay federal income and employment taxes.
Michael David Dismer, 51, was charged in a 28-count indictment returned under seal by a federal grand jury in Springfield, Missouri, on Thursday, Aug. 22. That indictment was unsealed and made public today upon Dismer’s arrest and initial court appearance.
Dismer has operated at least eight different businesses (most recently, Worldwide Construction, Inc., and Lakeland Marine Builders, LLC, at Stockton, Missouri) that built large boats, barges, and tugboats for customers around the world since 1993. The federal indictment alleges that Dismer engaged in a $4 million scheme to defraud 22 customers of his boat-building businesses from 2013 to 2018.
According to the indictment, Dismer signed contracts with customers and solicited deposits from them. Although Dismer told customers he would use their deposits and payments to build the boats for which they contracted, the indictment says, Dismer instead used a substantial portion of the funds for purposes unrelated to the construction of the customers’ boats. Dismer allegedly spent those funds to purchase of jewelry, lingerie and other clothing, salon services, flowers, firearms, airline and event tickets, a Hawaiian vacation for himself and six young women, private school and university tuition, furniture, improvements to his personal residence, and the purchase of real property.
Dismer also falsely represented the construction status of their projects to customers, the indictment says, in order to receive additional milestone payments and to lull customers into not attempting to obtain the return of their funds.
Dismer allegedly induced 22 customers to pay him more than $4 million for the construction of specific vessels. Among those customers, the indictment says, 14 customers paid Dismer more than $2.5 million and he provided them with inoperable and unseaworthy vessels. Seven of those customers paid Dismer more than $1 million and received nothing in return.
The indictments cite six companies that were allegedly defrauded by Dismer. Among the victims of Dismer’s alleged fraud scheme is Igiugig Village (an unincorporated Native American village in Alaska), which received a $200,000 federal grant to purchase a boat for the economic benefit of its community. On Dec. 22, 2015, the Igiugig Tribal Council contracted with Dismer (doing business as Lakeland Marine Builders) to build a push-style truckable tugboat for $275,000. The council paid Dismer an initial deposit of $96,250. On the same day, Dismer withdrew $70,000 of those funds and used the money to purchase a Stockton boat construction facility, which he had previously lost in foreclosure proceedings. The council paid Dismer an additional $77,375 in April 2016, most of which Dismer allegedly used to pay the outstanding real estate taxes on the Stockton property. The council made two additional payments to Dismer in May 2016. According to the indictment, the council has received nothing in return for the total $242,375 it paid to Dismer.
From 2013 to 2016, the indictment alleges, Dismer filed no federal income tax returns. According to the indictment, Dismer’s gross income exceeded $1 million in 2013 and 2016. Dismer’s gross income was $865,910 in 2014 and $688,770 in 2015.
Dismer also allegedly attempted to evade paying employment taxes for his companies’ employees from 1993 through 2002, and from 2004 through 2007. The indictment alleges that Dismer engaged in a practice known as “pyramiding” – he ceased operating under business names that accumulated unpaid tax assessment, and continued to earn income through new business entities.
According to the indictment, Dismer established at least 32 different accounts at seven different banks; he routinely intermingled business and personal withdrawals and made frequent inter-account transfers.
The federal indictment charges Dismer with 18 counts of wire fraud, five counts of tax evasion, four counts of failure to file a tax return, and one count of making false statements to federal law enforcement agents.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by IRS-Criminal Investigation and the FBI.
Orange County Man Sentenced to 17½ Years in Federal Prison for Selling Counterfeit Opioid Pills Laced with FentanylRead the Press Release
SANTA ANA, California – A Santa Ana man who admitted his role in a scheme that used fentanyl and other synthetic opioids to manufacture and sell counterfeit pharmaceutical pills designed to look like brand-name oxycodone pills was sentenced this morning to 210 months in federal prison.
Wyatt Pasek, 22, who lived in the penthouse of a luxury high-rise in Santa Ana until his arrest last year, was sentenced by United States District Judge James V. Selna.
Pasek – who used in the moniker “oxygod” when soliciting customers in online marketplaces, and posted images and videos of himself to social media platforms under the moniker Yung10x – pleaded guilty last November to participating in a narcotics-trafficking conspiracy, being a convicted felon in possession of a firearm, and money laundering.
Pasek “caused highly toxic drugs to be mixed into counterfeit pharmaceuticals at a clandestine laboratory in a highly populated residential and commercial area, the Newport Beach Peninsula, and sold the drugs in massive quantities for approximately one year,” prosecutors wrote in a sentencing memorandum filed with the court.
According to court documents, Pasek and two co-defendants obtained fentanyl and a similar drug called cyclopropyl fentanyl through internet from Chinese suppliers, used a pill press to make counterfeit pills, and distributed the narcotics through the mails, often arranging sales through a dark-net marketplace. Pasek also sold the counterfeit pills in hand-to-hand transactions.
The other two defendants in this case – Duc Cao, 22, of Orange, and Isaiah Suarez, 23, of Newport Beach – also pleaded guilty and were sentenced earlier this year by Judge Selna to 87 months and 37 months in federal prison, respectively.
“The defendants in this case played a direct role in fueling this nation’s opioid crisis,” said United States Attorney Nick Hanna. “The use of powerful drugs such as fentanyl in counterfeit pills intentionally made to look like less-lethal opioids demonstrates a complete disrespect for human life.”
When the three defendants were arrested in April 2018, authorities seized a pill press lab in Suarez’s apartment, along with bags that contained nearly 100,000 counterfeit oxycodone pills, hundreds of bogus Xanax pills, nearly six kilograms of fentanyl and fentanyl analogues, and bundles of cash.
During a six-month investigation led by the Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation, and the Costa Mesa Police Department, authorities recovered blue pills stamped “A 215” that resemble 30 mg. oxycodone pills. In the weeks leading up the arrests in this case, investigators intercepted 20 packages that were being sent to Pasek’s customers.
“Had federal agents not intercepted these packages, they would have resulted in substantial counterfeit opioids containing fentanyl and fentanyl analogues to be distributed to New York, California, Massachusetts, Illinois, Texas, Florida, Nevada, Georgia, Utah, Virginia, Tennessee, North Carolina, Colorado, Alabama, and Nebraska,” according to the sentencing memo.
Pasek, who has three prior drug-related convictions, apologized during today’s hearing. “I know I have affected countless [people],” he said. “I can’t even imagine how much damage I have done.”
As part of his plea agreement, Pasek agreed to forfeit to the government a number of items seized in relation to his arrest in April 2018: more than $21,000 in cash; jewelry, including a Silver Royal Offshore watch with diamonds, and a gold and diamond Bitcoin necklace; two gold bars seized from his mother’s residence; and thousands of dollars in cryptocurrency/Bitcoin he possessed in his Blockchain wallet.
This matter was investigated by the Drug Enforcement Administration, IRS Criminal Investigation, the Costa Mesa Police Department, the United States Postal Inspection Service, the Food and Drug Administration – Office of Criminal Investigations, the United States Marshals Service, and the Federal Bureau of Investigation.
This case was prosecuted by Assistant United States Attorney Brett A. Sagel of the Santa Ana Branch Office.
Operation Synthetic Opioid Surge (S.O.S.) Defendants Sentenced in Federal CourtRead the Press Release
HUNTINGTON, W.Va. – Three men prosecuted as part of Operation Synthetic Opioid Surge (S.O.S.) were sentenced in federal court in Huntington today, announced United States Attorney Mike Stuart.
“We are prosecuting each and every dealer of deadly opiates like heroin and fentanyl,” said United States Attorney Mike Stuart. “Vigorous enforcement is critically important in our fight against the opioid epidemic and in our efforts to reduce overdose deaths, and our record in this area is tough, tough, tough. Rest assured, we will continue to do our part in this fight.”
In one case, two men from Detroit, Michigan, were sentenced to prison for their role in a federal heroin offense last year. Drevonte Larnielle Patterson, 21, and Christian Vincent Gordon, 22, were each sentenced to 30 months in prison, after both previously pled guilty to possession with intent to distribute heroin. Both were also ordered to serve three years of supervised release upon their release from prison.
Patterson and Gordon previously admitted that on March 15, 2018, officers executed a search warrant at the apartment located at 156 1/2 Sixth Avenue in Huntington. During the search, Patterson and Gordon were found in the bathroom attempting to flush approximately 49 grams of heroin down the toilet. Officers seized the heroin which Patterson and Gordon admitted they intended to distribute. Patterson and Gordon further admitted they distributed heroin from the apartment during the month of March 2018.
Assistant United States Attorney Joseph F. Adams handled the prosecutions.
In a separate case, a Huntington man was sentenced to federal prison for selling fentanyl. Carl Dillow III, 29, was sentenced to 16 months in prison for distribution of fentanyl. Dillow previously admitted that on May 22, 2017, he met a confidential informant at the Adams Landing apartments in Huntington and gave the informant fentanyl in exchange for $70.
Assistant United States Attorney Stephanie S. Taylor is handling the prosecution.
The Huntington Police Department conducted the investigations. United States District Judge Robert C. Chambers imposed the sentences.
These cases were prosecuted as part of Operation Synthetic Opioid Surge (S.O.S.), a focused enforcement effort that seeks to reduce the supply of deadly synthetic opioids in high impact areas.
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Operation Mountaineer Highway Update: New Jersey Man Pleads Guilty to Federal Drug ChargeRead the Press Release
CHARLESTON, W.Va. – A New Jersey man pled guilty today for his participation in a drug trafficking operation in Fayette County, announced United States Attorney Mike Stuart. Larry Avery, 37, from New Jersey, and formerly of Beckley, entered his guilty plea to using a communication device to facilitate a drug trafficking offense. Stuart commended the cooperative investigative efforts of the Drug Enforcement Administration and the Central West Virginia Drug Task Force, with the support of the West Virginia State Police, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Fayette County Sheriff’s Department, the Beckley/Raleigh County Drug Task Force, the Southern Regional Drug and Violent Crime Task Force, the Fayetteville Police Department, and Oak Hill Police Department.
“500 grams of cocaine,” said United States Attorney Mike Stuart. “Once again, law enforcement does a tremendous job in getting illicit drugs off the streets. Operation Mountaineer Highway was a hugely successful effort in keeping a wide variety of illegal drugs out of our central and southern West Virginia communities.”
Avery admitted that on July 7, 2018, he used a communication device, his cell phone, to facilitate the distribution of over 500 grams of cocaine. Avery admitted that a car registered in his name was stopped by the police. Police obtained a search warrant for that car. During a search of the car, officers found over 500 grams of cocaine hidden in a secret electronic compartment commonly referred to as a trap. Avery further admitted that he knew the cocaine was to be distributed in and around the Southern District of West Virginia.
Avery faces up to 8 years in federal prison and a $500,000.00 fine when he is sentenced on November 15, 2019.
Assistant United States Attorneys Timothy D. Boggess and Andrew J. Tessman are in charge of the prosecution. The plea hearing was held before United States District Judge Joseph R. Goodwin.
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Ocala Convicted Felon Gets 30 Months in Federal Prison After Shooting Himself with A FirearmRead the Press Release
Ocala, Florida – Senior United States District Judge John Antoon II has sentenced Michael Guell (37, Ocala) to 30 months in federal prison for possession of a firearm and ammunition as a convicted felon. Guell had pleaded guilty on May 14, 2019.
According to court documents, on November 28, 2018, Guell was admitted to a hospital in Ocala with gunshot wounds. When detectives from the Ocala Police Department arrived at the hospital, Guell told them that he had been robbed at gunpoint and shot by an unknown assailant. Investigating further, police located Guell’s car and saw ammunition and shell casings through the car’s window. When interviewed a second time, Guell admitted that he had been drinking in his car and had accidentally shot himself. A search of Guell’s vehicle revealed a semi-automatic handgun, 26 rounds of ammunition, and multiple shell casings. At the time, Guell had five prior felony convictions, including possession of a controlled substance, theft by taking, and fleeing and eluding a law enforcement officer. As a convicted felon, Guell is prohibited from possessing any firearms or ammunition under federal law.
This case was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the City of Ocala Police Department. It was prosecuted by Assistant United States Attorneys William S. Hamilton and Robert E. Bodnar, Jr.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Northern Nevada Doctor Sentenced to Prison for Illegally Writing Opioid PrescriptionsRead the Press Release
RENO, Nev. – A northern Nevada doctor specializing in family medicine was sentenced today to one year and one day in federal prison and ordered to pay a $125,000 fine for overprescribing highly addictive pain pills Oxycodone and Hydrocodone not for a legitimate medical purpose, announced United States Attorney Nicholas A. Trutanich for the District of Nevada, Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Field Office, and Special Agent in Charge Timothy B. DeFrancesca for the Office of Inspector General of the United States Department of Health and Human Services.
“Today’s sentencing is a reminder of our unwavering commitment to hold dirty doctors accountable for feeding into the addiction of their patients,” said U.S. Attorney Trutanich. “We will continue to aggressively pursue medical professionals who disregard their oath to do no harm.”
“The accessibility of deadly drugs are a threat to our communities,” said Special Agent in Charge Rouse. “Each and every day, the FBI and our partners in Nevada are working hard targeting distributors, who illegally contribute to the opioid crisis that continues to devastate communities all over the state of Nevada.”
Dr. Shouping Li, 57, the former Vice Chief of Staff for Humboldt County General Hospital in Winnemucca, Nev., pleaded guilty in February 2019, to distribution of a controlled substance, specifically Oxycodone and Hydrocodone. In addition to the imprisonment, United States District Judge Miranda Du sentenced Dr. Li to three years of supervised release.
According to court documents, the investigation into Dr. Li, who specialized in family medicine with a concentration in cardiovascular disease, began in March 2018, after the FBI received reports of several deaths related to opioid pain medication overdoses and allegations that Dr. Li may have illicitly been prescribing narcotics not for a legitimate medical purpose. Dr. Li admitted that, between August 2015 and February 2018, he prescribed Oxycodone and Hydrocodone at a high dosage rate to his patients outside the usual course of his professional practice and without a legitimate medical purpose. He further admitted that several of his patients passed away while he actively attended to them.
The case was investigated by the FBI, Tri-County Drug Enforcement Team, Nevada Department of Public Safety, Humboldt County Sheriff's Office, Winnemucca Police Department, Elko Combined Narcotics Unit, Elko Police Department, Elko County Sheriff's Office, and the Office of Inspector General of the U.S. Department of Health and Human Services. Assistant United States Attorney Sue Fahami and Assistant Chief Kilby MacFadden from the Department of Justice Fraud Section prosecuted the case.
If you have a tip or information about illegal sales or distribution of prescription opioids, including Fentanyl, Oxycodone, and Hydrocodone by doctors and pharmacies, contact the FBI at tips.fbi.gov.
The Opioid Fraud and Abuse Detection Unit is a program that utilizes data to identify and prosecute individuals that are contributing to the prescription opioid epidemic. Since 2017, when the Department of Justice funded a dedicated opioid prosecutor in the District of Nevada, the United States Attorney’s Office has prosecuted about 12 opioid-related cases and charged about 24 defendants.
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North Olmsted man sentenced to eight years in prison for trafficking cocaine, MDMA analogue and marijuana, as well as laundering drug profitsRead the Press Release
A North Olmsted man was sentenced to eight years in prison for his role in a conspiracy to distribute cocaine, N-Ethylpentylone (an analogue to MDMA or “molly”) and marijuana.
Emad Silmi, 45, was sentenced to 96 months in prison.
Silmi obtained large amounts of cocaine and then sold it to other drug dealers from his business Global Auto Body & Collision at 4317 W. 130th Street. He also obtained large amounts of N-Ethylpentylone – an analogue of “molly” – which he sold other dealers from his Cleveland auto body shop, according to court documents.
Silmi obtained kilograms of cocaine and more than 100 kilograms of marijuana between January 2016 and March 2017, according to court documents.
Silmi also laundered money as part of an effort to hide his drug profits, according to court documents.
The case was prosecuted by Assistant U.S. Attorney Patrick Burke following an investigation by the FBI, the U.S. Postal Inspection Service, the Cuyahoga County Sheriff’s Department, Cleveland Division of Police, the IRS, and members of the Northern Ohio Law Enforcement Task Force and High Intensity Drug Trafficking Area personnel.
New York Man Charged with Threats Against the President of the United StatesRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jesse Allen Blake, age 24, of Waverly, New York, was indicted by a federal grand jury on August 22, 2019, with threats against the President of the United States and mailing a threatening communication.
According to United States Attorney David J. Freed, the indictment alleges that Blake mailed a letter to FBI headquarters in Washington, D.C. on March 29, 2019, threatening to kill President Trump and blow up the White House, Trump Tower, the Pentagon, and United Nations Headquarters when he was released from prison. At the time he sent the letter, Blake was in custody on state charges at the Bradford County Correctional Facility in Troy, Pennsylvania.
The case was investigated by the U.S. Secret Service with the assistance from the FBI Task Force, and the Bradford County Correctional Facility. Assistant U.S. Attorney George J. Rocktashel is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for these offenses is a total of 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Multiple Arizona Residents Sentenced to Prison for Using the Dark Web to Distribute Heroin, Methamphetamine, and Cocaine Throughout the United StatesRead the Press Release
PHOENIX, Ariz. – Last week, Kevin Dean McCoy, 28, of Tucson, Ariz., was sentenced by Senior U.S. District Judge James A. Teilborg to 15 years in prison. Silvester Ruelas, 50, of Peoria, Ariz., was previously sentenced to 20 years in prison. Two other co-defendants, Amber Worrell and Peggy Gomez, were sentenced to 10 years in prison and 5 years in prison, respectively. All four defendants pleaded guilty to conspiracy to distribute controlled substances and launder proceeds from drug distribution.
Between 2015 and 2017, the defendants used the vendor name “Iceman21” to advertise and sell heroin, methamphetamine, and cocaine on various dark web marketplaces, including AlphaBay, Hansa, and Dream Market. The investigation revealed that the defendants were using the United States Postal Service to ship drugs from the Phoenix metropolitan area to locations throughout the United States. During the investigation, the United States Postal Inspection Service seized parcels containing illegal drugs that were en route to Arkansas, California, Florida, Georgia, Kansas, Minnesota, Missouri, Montana, Nevada, New York, North Carolina, Oregon, Pennsylvania, and Texas. To conceal and launder proceeds they generated through drug distribution, the defendants used encrypted technology, sold cryptocurrency through peer-to-peer exchangers, and created bank accounts for non-existent businesses. During the investigation, law enforcement officials seized a Seattle Seahawks Super Bowl XL ring, numerous gold, silver, and platinum bars, and an extensive collection of firearms, including a Texas Weapons System AK-47, a Mossberg 12 gauge shotgun, and a .50 caliber Bohica sniper rifle.
“Our office is committed to working closely with our agency partners to aggressively investigate and prosecute drug traffickers,” said U.S. Attorney Michael Bailey. “Hiding behind computer keyboards and using our mail system to move their drugs will not shield them from lengthy prison sentences.”
“Drug traffickers using the dark web feel a sense of security with the anonymity to sell their poisons throughout the world,” said Doug Coleman, Special Agent in Charge of the Drug Enforcement Administration (DEA) in Arizona. “This investigation clearly demonstrates they aren’t safe, they aren’t anonymous, and they can’t evade justice. DEA and our partners will relentlessly pursue criminals who prey on our citizens, no matter where they are and no matter what means they use to distribute their illicit and deadly products.”
“Homeland Security Investigations (HSI) has continued to demonstrate a commitment to combating illicit activities spread by online dark web markets,” said Scott Brown, HSI Special Agent in Charge for the Phoenix office. “By joining forces with our law enforcement partners, we are utilizing all tools and authorities to investigate and dismantle narcotics trafficking and financial crimes that plague the internet. As this case demonstrates, there is no safe dark web marketplace beyond our investigative reach.”
“This drug trafficking organization used sophisticated means to sell and distribute dangerous drugs throughout the country. No matter the methods used by criminals, IRS-CI Special Agents have the skills needed to investigate high tech drug and money laundering schemes,” said Special Agent in Charge Ismael Nevarez, Jr., of the Phoenix Field Office of IRS - Criminal Investigations.
“This investigation once again showcases the excellent collaboration between the United States Postal Inspection Service and other law enforcement agencies. Through these partnerships, we continue working to keep our communities safe from the spread of illegal narcotics purchased through the dark web. We continue to challenge the anonymous nature of the dark web, proving time and again you are never truly anonymous,” stated Acting Inspector in Charge Jessica Wagner of the United States Postal Inspection Service.
The investigation was conducted by the Drug Enforcement Administration, Homeland Security Investigations, Internal Revenue Service - Criminal Investigations, and the United States Postal Inspection Service, with assistance from the Scottsdale, Mesa, and Peoria Police Departments, as part of an operation supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that provides supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The case was prosecuted by Matthew Binford and Carolina Escalante, Assistant United States Attorneys, District of Arizona, Phoenix.