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30 September 2019
Laredo woman admits to smuggling minor across US borderRead the Press Release
LAREDO, Texas – A 27-year-old resident of Laredo has entered a guilty plea to federal charges stemming from her attempt to smuggle a Mexican national minor, announced U.S. Attorney Ryan K. Patrick.
On July 13, Rosa Elia Amaya applied for admission into the country from Mexico at the Lincoln Juarez Port of Entry accompanied by a minor male and her U.S. citizen daughter. She claimed to be the boy’s mother and presented authorities with a birth certificate as proof of citizenship.
Upon questioning, the minor boy remained silent as authorities asked for the location of his mother. The investigation subsequently confirmed the unaccompanied minor was not Amaya’s son.
Today, she admitted she had agreed to smuggle him into the U.S. in return for $1,500.
U.S. District Judge Marina Garcia Marmolejo will impose a sentencing at a later date. At that time, Amaya faces up to 10 years in federal prison and a possible $250,000 maximum fine. She was permitted to remain on bond pending that hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with assistance from Customs and Border Protection. Assistant U.S. Attorney Aaron Petters is prosecuting the case.
Kings County Woman Pleads Guilty to Drug and Firearms Trafficking ChargesRead the Press Release
FRESNO, Calif. — Alexis Sanchez, 20, of Kettleman City, pleaded guilty today to conspiring to possess with the intent to distribute narcotics and conspiring to traffic in firearms by an unlicensed person, U.S. Attorney McGregor W. Scott announced.
According to court documents, between April 2016 and March 2018, Sanchez participated in a conspiracy to purchase and ship firearms from Tennessee to California. Sanchez assisted in sending firearms that were purchased by co-conspirators in Tennessee to California. The California-based co-conspirators then sold the firearms for a profit. In her plea agreement, Sanchez acknowledged that none of the conspirators were licensed firearms dealers. In addition, from Jan. 2017 to March 2018 Sanchez conspired with some of the same individuals to distribute narcotics.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation. The U.S. Postal Inspection Service, Lenoir City Police Department in Tennessee, Homeland Security Investigations (HSI), and the U.S. Attorney’s Office for the Eastern District of Tennessee assisted in the investigation. Assistant U.S. Attorneys Thomas Newman and Stephanie Stokman are prosecuting the case.
Alexis Sanchez is scheduled to be sentenced by U.S. District Judge Lawrence J. O'Neill on Dec. 16. Sanchez faces a maximum statutory penalty of 20 years in prison related to the distribution of narcotics, and a $1 million fine; and a maximum statutory penalty of five years in prison and a $250,000 fine related to the conspiracy to traffic in firearms by an unlicensed person. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Kane County Man Sentenced to 17 Years in Federal Prison for Producing and Sharing Child PornographyRead the Press Release
CHICAGO — A Kane County man has been sentenced to 17 years in federal prison for producing and sharing images of child pornography.
MATTHEW BROWN, 31, of Montgomery, took photographs of a prepubescent minor and shared them with users on the Kik online messaging application. Brown also possessed more than 240 other photographs and videos of child pornography.
Brown pleaded guilty last year to federal charges of production and transportation of child pornography. In addition to the 17-year prison term, U.S. District Judge Sara L. Ellis on Thursday ordered Brown to pay $80,292 in restitution to the known victims depicted in the pornographic images and videos.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Larry L. Lapp, acting Special Agent-in-Charge of the Chicago office of the FBI. The Cook County Sheriff’s Office provided valuable assistance.
“Defendant preyed upon the most innocent and vulnerable of victims – children,” Assistant U.S. Attorney John D. Mitchell argued in the government’s sentencing memorandum. “These images are shocking and display the horrific exploitation of young children.”
According to evidence in the case, Brown accessed the Kik messaging application under the screennames “MaddMatter” and “ratsoff2u.” He frequented Kik chatrooms that were set up for the purpose of exchanging child pornography. Unbeknownst to Brown, one of the Kik users with whom he began communicating in 2015 was an undercover law enforcement officer. Brown sent the undercover officer several images and videos of child pornography, including a sexually explicit photograph of a prepubescent minor that Brown had personally taken.
The images and videos were submitted to the National Center for Missing and Exploited Children, which determined that Brown possessed two series of child pornography. Authorities have been able to identify some of the children who were exploited in the images and videos shared by Brown and others. Some of the victims submitted statements to the Court in advance of Brown’s sentencing, detailing the harm caused by the production, distribution and possession of their images by individuals like Brown.
If you believe you are a victim of sexual exploitation, you are encouraged to call NCMEC at 1-800-843-5678, or log on to http://www.missingkids.com. The service is available 24 hours a day, seven days a week.
KCK Woman Sentenced for Break-In at Cabela’sRead the Press Release
KANSAS CITY, KAN. – A Kansas City, Kan., woman was sentenced to 12 months and a day in federal prison Monday for her role in crashing a car into a Cabela’s store to steal guns, U.S. Attorney Stephen McAllister said.
Brenda Tosh, 28, Kansas City, Kan., pleaded guilty to one count of conspiring to steal guns from a federally licensed firearms dealer. In her plea, she admitted that she and a co-defendant crashed a car into a Cabela’s store in Kansas City, Kan. They took long guns from the firearms section of the store and placed them into a shopping cart. According to court records, the guns included two 12-gauge shotguns, a .22-caliber rifle, a .308-caliber rifle and a .223-caliber rifle.
Law enforcement officers arrived and arrested Tosh before she could leave the store. The co-defendant was arrested later, after fleeing the store and stealing a car from a nearby dealership.
Co-defendant Kyle Mendez, 29, Kansas City, Kan., is scheduled for sentencing Nov. 26.
McAllister commended the Kansas City, Kan., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Chris Oakley for their work on the case.
Justice Department Sues Owners and Managers of Rental Properties in Honolulu, Hawaii for Discriminating Against Families with ChildrenRead the Press Release
The Department of Justice today announced that it has filed a lawsuit alleging that the owners and managers of residential rental housing in Honolulu, Hawaii, refused to rent to families with children, in violation of the Fair Housing Act.
The lawsuit, filed in the U.S. District Court for the District of Hawaii, alleges that the defendants—Hawaii Student Suites Inc., Hawaii Student Residences LLC or Hawaii Student Suites, Savio Hauoli Street LLC, and 258-60 Beach Walk LLC—engaged in unlawful familial status discrimination in connection with three properties in Honolulu: Beachwalk, Kalo Terrace, and Pacific Villa. Specifically, the complaint alleges that since at least 2015, the Defendants have discriminated against families with children by: (1) refusing to rent or to negotiate for the rental of the three properties on the basis of familial status; (2) steering prospective renters with children who inquired about housing away from the properties to a separate property management company; and (3) making discouraging and other discriminatory statements to potential renters with children who inquired about housing, including that the housing was not “suitable” or the right “fit” for families with children.
“Owners and managers of rental housing must ensure their housing is open to families with children,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Fair Housing Act requires it, and the Justice Department will continue both to enforce the Act vigorously and to seek relief for families victimized by unlawful discrimination.”
“Discrimination against families with children is completely contrary to the values of our community in Hawaii and is especially damaging where, as here, housing can be difficult to obtain,” said U.S. Attorney Kenji M. Price of the district of Hawaii. “We will pursue violations of federal anti-discrimination laws to provide the fairest opportunities for families with children to find affordable housing.”
The Legal Aid Society of Hawaii brought this matter to the Department’s attention after conducting testing which, as the complaint alleges, showed discrimination against families with children in connection with the defendants’ properties. Today’s lawsuit seeks monetary damages to compensate the victims, a civil penalty to vindicate the public interest, and a court order barring future discrimination and harassment. The complaint contains allegations of unlawful conduct; the allegations must be proven in federal court.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. Individuals who believe that they may have been victims of familial status discrimination or other types of housing discrimination at rental dwellings owned or managed by the Defendants, or who have other information that may be relevant to this case, can contact the Housing Discrimination Tip Line, at 1-800-896-7743, and select mailbox 998 to leave a message.
Individuals can also report housing discrimination by e-mailing the Justice Department at [email protected].
Justice Department Alleges Maryland Used Car Dealership Engaged in Illegal Lending Discrimination Against African AmericansRead the Press Release
The Department of Justice filed a lawsuit today alleging that defendant Guaranteed Auto Sales, a used car dealership, along with its owner and manager, defendants Kelly Ann West and Robert Chesgreen, violated the federal Equal Credit Opportunity Act by offering different terms of credit based on race to those seeking to purchase and finance used cars in Glen Burnie, Maryland. The lawsuit is based on the results of testing conducted by the department’s Fair Housing Testing Program, in which individuals pose as prospective car buyers to gather information about possible discriminatory practices.
The complaint, which was filed in the U.S. District Court for the District of Maryland, alleges that defendants engaged in a pattern or practice of discrimination by offering less favorable auto loan terms to African American testers than white testers. Most significantly, the complaint alleges that employees of Guaranteed Auto Sales told African American testers that they needed larger down payments than white testers for the same used cars, and told African American testers that they were required to fund their down payments in one lump sum, while they gave white testers an option of paying in two installments.
“Using race as a factor in determining credit terms, including the amount of down payment that a customer must pay, is despicable and illegal,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “By filing this lawsuit, the Justice Department is acting to ensure that all individuals are treated equally regardless of their race as they seek information about auto financing terms and apply for credit.”
The federal Equal Credit Opportunity Act prohibits lending discrimination based on race, color, religion, national origin, sex, marital status, age, because an applicant receives income from a public assistance program, or because an applicant has in good faith exercised any right under the Consumer Credit Protection Act. The Justice Department’s enforcement of fair lending laws is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section. Additional information about the Section’s fair lending enforcement can be found at www.justice.gov/fairhousing. Individuals who believe that they may have information that relevant to this case can contact the U.S. Department of Justice at (202) 514-4713.
Johnstown Man Sentenced to Prison for Heroin Trafficking ConspiracyRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa. has been sentenced in federal court in Johnstown to 66 months in prison and four years’ supervised release on his conviction of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
United States District Judge Kim R. Gibson imposed the sentence on Justin R. Guillarmod, 36.
On May 2, 2019, Guillarmod pleaded guilty to count one of an indictment which stated that on July 27, 2017, Guillarmod and a co-defendant did possess with intent to distribute more than 100 grams of heroin.
Assistant United States Attorney Maureen Sheehan-Balchon prosecuted this case on behalf of the government.
Mr. Brady commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force for the investigation that led to the successful prosecution of Guillarmod.
Inyo County Man Pleads Guilty to Operating a Plane Without a LicenseRead the Press Release
FRESNO, Calif. — Arnold Peterson, 57, of Big Pine, pleaded guilty today to operating a plane without an airman’s certificate, U.S. Attorney McGregor W. Scott announced.
According to court documents, on June 8, 2017, Peterson flew a private aircraft into Portales Municipal Airport located in Portales, New Mexico without having a valid airman certification issued by the Federal Aviation Administration.
On June 8, 2017, Peterson flew an aircraft through Class C Airspace at Lubbock Preston Smith International Airport in Lubbock, Texas without calling the airport’s Air Traffic Control (ATC). Two-way radio communication with ATC is required prior to entry into and while in Class C Airspace. His action caused a regional jet to deviate from its flight path in order to avoid the unknown, uncommunicative aircraft. ATC tracked the aircraft until in landed in Portales, New Mexico. A subsequent investigation established that the aircraft’s registration was expired and that Peterson’s previously issued airman certificate had been surrendered for revocation on June 17, 2014, and had never been reinstated.
“The guilty plea in this U.S. Department of Transportation, Office of Inspector General (DOT-OIG) investigation demonstrates our commitment to safeguarding the National Airspace System,” said Jeffrey Dubsick, DOT-OIG Regional Special Agent-in-Charge. “Working with the Federal Aviation Administration and our prosecutorial partners, we will continue our efforts to vigorously pursue unlicensed pilots who illegally operate aircraft.”
This case is the product of an investigation by the DOT-OIG and the Federal Aviation Administration. Assistant U.S. Attorneys Laura D. Withers and Vincente A. Tennerelli are prosecuting the case.
Peterson is scheduled to be sentenced on Dec. 16 by U.S. District Judge Lawrence J. O’Neill. Peterson faces a maximum statutory penalty of three years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Inland Empire Man Sentenced to Nearly 6 Years in Federal Prison for Bogus Debt-Elimination Services that Cost Victims $1.6 MillionRead the Press Release
LOS ANGELES – A Riverside man was sentenced today to 70 months in federal prison for defrauding hundreds of victims, mainly distressed homeowners who paid thousands of dollars after attending seminars that promoted a “Free and Clear” program pitched by the defendant and his salespeople.
James Ignatius Diamond, 69, was sentenced by United States District Judge R. Gary Klausner.
At the conclusion of a six-day trial in June, Diamond was found guilty by a jury of 15 counts of mail fraud affecting a financial institution and 15 counts of wire fraud affecting a financial institution.
Between 2010 and 2013, Diamond sold fraudulent debt-elimination services to desperate victims whose finances had been ravaged by the Great Recession. Diamond owned and operated a number of businesses – including the Riverside-based Transmitting Assets Inc., Operation Safe Haven, Buyer Beware, and Unlimited Logistics Corp. – through which he fraudulently offered services that he claimed could wipe out the debts of homeowners behind on their mortgage payments and other debts.
Diamond personally pitched the “Diamond Home Reclamation Method” to solicit victims with false promises that his methods would entirely eliminate their mortgages and allow people to own their homes “free and clear.”
Relying on the false representations, victims paid substantial fees, including an upfront fee – typically $3,500, payable only in cash, money orders or cashier’s checks – periodic program fees, and inflated notary fees. After paying the upfront fee, victims were required to sign and notarize documents, which they were instructed to send to financial institutions and government agencies – documents prosecutors described in court documents as “fraudulent and nonsensical.”
When victims of the scheme in 2011 began receiving mortgage default notices and lost their homes, Diamond launched another debt-elimination scam called the “EFT Program,” under which Diamond claimed to be able to eliminate victims’ debt with “EFT” checks. This scam required victims to pay Diamond 13 percent of the debt that was to be eliminated.
Diamond knew that his methods did nothing to discharge debts. In fact, when FBI agents searched his business in 2013, they recovered hundreds of “rejection letters” from financial institutions indicating that documents submitted as part of the debt-elimination programs did nothing to help the victims. Diamond’s email accounts contained numerous complaints and refund requests from victims – all of which he ignored.
Investigators have identified more than 500 victims who suffered losses of at least $1.6 million. Diamond spent victims’ money on luxury hotels, jewelry, alcoholic beverages, and living expenses.
Previously in this case, a Diamond associate – Tricia Mae Gruber, 43, also of Riverside – pleaded guilty to conspiracy to commit mail fraud and admitted helping operate the scheme. Her sentencing hearing is scheduled for October 21.
This case was investigated by the FBI.
This matter was prosecuted by Assistant United States Attorneys Marina A. Torres of the International Narcotics, Money Laundering, and Racketeering Section and Kevin B. Reidy of the General Crimes Section.
Huntington Woman Pleads Guilty to Federal Drug ConspiracyRead the Press Release
HUNTINGTON, W.Va. – A Huntington woman pled guilty today to a federal drug conspiracy charge, announced United States Attorney Mike Stuart. Krystal Ewing, 31, entered a guilty plea to an indictment charging her with conspiracy to distribute heroin and fentanyl.
“Operation Free Market disrupted a significant heroin and fentanyl trafficking organization operating between Detroit and Huntington,” said United States Attorney Mike Stuart. “My office is setting historic records in the number of prosecutions of drug dealers and poison peddlers. We are working hard every day to shutter drug networks responsible for bringing these deadly drugs into our state.”
Ewing admitted that between December 2018 and May 2019 she conspired with other individuals to distribute heroin and fentanyl in Huntington, West Virginia. Ewing admitted that she would travel to Detroit, Michigan to obtain heroin for George Lockhart for him to sell in Huntington.
Ewing faces up to twenty years in federal prison when she is sentenced on January 13, 2020.
Operation Free Market was a long-term drug investigation in the Huntington area. The investigation was the result of a joint effort by the Drug Enforcement Administration and the Violent Crime and Drug Task Force West.
The plea hearing was held before United States District Judge Robert C. Chambers. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
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Huntington Woman Pleads Guilty to EmbezzlementRead the Press Release
HUNTINGTON, W.Va.—A Huntington woman pled guilty to embezzling money from 2015 until April 2019 from the Huntington branch of the West Virginia Federal Credit Union (WVFCU), announced United States Attorney Mike Stuart. Frances McComas, 56, pled guilty to embezzling $165,500 from WVFCU.
“This was an egregious crime by a bank employee,” said United States Attorney Mike Stuart. “McComas stole cash for approximately four years from the credit union that employed her. We will continue to work with the FBI to prosecute cases like this.”
McComas, who worked as a teller at WVFCU, admitted she took $165,500 from the credit union’s vault and falsified the financial records to hide the embezzlement. McComas faces up to 30 years in prison and 5 years supervised release when sentenced on January 6, 2020.
The Federal Bureau of Investigation handled the investigation. United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Chris Arthur is handling the prosecution.
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Huntington Man Pleads Guilty to Federal Drug ChargeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man pled guilty today to a federal drug charge, announced United States Attorney Mike Stuart. Kenneth Alexander, 33, entered a guilty plea to an indictment charging him with aiding and abetting the distribution of heroin.
“We’re taking heroin dealers off the streets one by one and, on certain days, by the dozens,” said United States Attorney Mike Stuart. “We are laser focused on prosecuting drug dealers and making our communities safer for West Virginia families.”
Alexander admitted that on August 1, 2018, he and another individual sold heroin to a confidential informant in the 1100 block of 9th Avenue in Huntington, West Virginia.
Alexander faces up to twenty years in federal prison when he is sentenced on January 13, 2020.
The Cabell County Sheriff’s Department conducted the investigation. The plea hearing was held before United States District Judge Robert C. Chambers. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
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Hayward Resident Charged with Acting as an Illegal Agent for ChinaRead the Press Release
SAN FRANCISCO – The United States Attorney’s Office for the Northern District of California unsealed charges today in a criminal complaint charging Xuehua Peng, a/k/a Edward Peng, for acting as an illegal foreign agent in delivering classified United States national security information to officials of the People’s Republic of China’s Ministry of State Security (MSS), announced United States Attorney David L. Anderson, Assistant Attorney General for the Department of Justice National Security Division, John C. Demers, and Federal Bureau of Investigation San Francisco Division Special Agent in Charge John F. Bennett.
“The conduct charged in this case alleges a combination of age-old spycraft and modern technology,” said U.S. Attorney Anderson. “Defendant Xuehua (Edward) Peng is charged with executing dead drops, delivering payments, and personally carrying to Beijing, China, secure digital cards containing classified information related to the national security of the United States.” U.S. Attorney Anderson further stated, “The charges announced today provide a rare glimpse into the secret efforts of the People’s Republic of China to obtain classified national security information from the United States and the battle being waged by our intelligence and law-enforcement communities to protect our people, our ideas, and our national defense.”
“According to the allegations, Peng conducted numerous dead drops here in the United States on behalf of Chinese intelligence officers and delivered classified information to them in China. His arrest exposes and disrupts an operation by those Chinese intelligence officers to collect such information without having to step foot in this country,” said AAG Demers. “Coming on top of our many recent Chinese espionage cases—involving both national security and intellectual property information—this case illustrates the seriousness of Chinese espionage efforts and the determination of the United States to thwart them.”
"The FBI, along with our partners, will aggressively pursue foreign agents operating illegally in the United States attempting to steal our country's most sensitive information." said FBI Assistant Director John Brown of the Counterintelligence Division. "This case should serve as a warning to the government of China as well as any other foreign adversary looking to replicate this activity. The FBI, and our intelligence and law enforcement partners, will not waiver. We will bring all of our resources to bear to defeat hostile foreign intelligence services and protect our nation's security. I would like to thank FBI counterintelligence personnel throughout the country who tirelessly worked this investigation over the course of many years, particularly those personnel in our Counterintelligence and San Francisco Divisions."
“Putting an end to Mr. Peng’s alleged actions are an important and significant step in dismantling the PRC’s overall efforts against our country,” said Special Agent in Charge Bennett. "Our message is clear: the FBI, along with our intelligence community partners, will pursue foreign adversaries—at any level of an operation—and disrupt their malicious activity when it is detected."
According to the complaint filed September 24, 2019, and unsealed this morning, Peng, 56, a U.S. citizen living in Hayward, Calif., acted at the direction and under the control of MSS officials in China in retrieving classified information passed to him by a confidential human source (“the source”), leaving money behind for the source, or both. His activities included one dry run and at least five successful “dead drops” between October 2015 and July 2018. The dead drops occurred in the Bay Area and in Columbus, Georgia.
The table below summarizes the allegations in the complaint about each successful dead drop, including the date of the dead drop, the location of the dead drop, what Peng left in the hotel room, and what Peng retrieved from the hotel:
Date
Location
Peng Left in the Hotel
Peng Retrieved from the Hotel
6/23/2015
Newark, CA
n/a
Empty package (dry run)
10/24/2015
Newark, CA
n/a
SD card
4/23/2016
Oakland, CA
$20,000
SD card
7/1/2017
Columbus, GA
$20,000
n/a
9/9/2017
Columbus, GA
$10,000
SD card
6/30/2018
Columbus, GA
$20,000
SD card
In the June 23, 2015 “dry run,” no information or money was exchanged. Instead, an empty package was left by the source for Peng at the front desk of a hotel, and Peng later retrieved it. In the first successful dead drop, Peng retrieved a package containing an SD card from the front desk of a hotel. In each of the other four successful dead drops, Peng booked hotel rooms and left a room key to be picked up by the source. Peng then left envelopes of cash in the room, retrieved a secure digital card left there by the source, or both.
In each instance in which he retrieved an SD card from the hotel room, Peng then traveled to Beijing, China, shortly thereafter. The complaint further alleges that Peng was told by an MSS handler, in coded language, where and when to conduct the dead drops, how much money to leave in exchange for the SD cards, and when to return to China to deliver them. As alleged in the Complaint, the FBI secretly filmed Peng conducting some of the dead drops, and intercepted Peng’s telephone conversations with his MSS handlers in China.
On Friday, September 27, 2019, Peng was arrested at his residence in Hayward and made his initial appearance in federal court in San Francisco before U.S. Magistrate Judge Joseph C. Spero. Magistrate Judge Spero ordered Peng held without bond pending further proceedings. Peng’s next hearing has been scheduled for October 2, 2019, at 10:30 am before the Honorable Jacqueline Corley, 450 Golden Gate Ave., 15th Floor, for a detention hearing and identification of counsel.
A complaint merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Peng faces a maximum sentence of 10 years and a fine of $250,000 for acting as an agent of a foreign government without notifying the United States Attorney General, in violation of 18 U.S.C. § 951. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines, as applicable, and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
This case is being prosecuted by the Special Prosecutions Section of the United States Attorney’s Office for the Northern District of California and the Counterintelligence and Export Control Section of the Department of Justice, National Security Division. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
A video filed in this case can be found at the following websites:
- https://youtu.be/Op5nROF7IAo
- https://youtu.be/HKweGYTguB0
Guatemalan National Wanted for Crimes Against Humanity Pleads Guilty to Illegal ReentryRead the Press Release
BOSTON – A Guatemalan national wanted for his role in the 1980s massacre of indigenous Guatemalans pleaded guilty today in federal court in Boston.
Francisco Cuxum Alvarado, a/k/a Francisco Cuxun-Alvarado, 64, pleaded guilty to one count of illegal reentry into the United States. U.S. District Court Judge Indira Talwani scheduled sentencing for Dec. 20, 2019. On May 29, 2019, Cuxum Alvarado was indicted and has been detained since that time.
According court documents, beginning in the early 1980s, there were a series of attacks committed against the indigenous Maya Achi people of Rio Negro, in and around the municipality of Rabinal, in Guatemala. During these massacres, Guatemalan armed forces assisted by civilian militias known as the Civil Defense Patrols (PACs), forcibly removed the Maya Achi from Rio Negro and attacked and killed hundreds of them. More than 400 Maya Achi people were killed in the Rio Negro massacres and hundreds of others were forcibly removed from their homes. In addition to the murders, there were mass sexual assaults carried out against Achi-Mayan women.
Cuxum Alvarado was a member of the PAC in Rabinal, and in 1998, was named as a suspect in the March 13, 1982, massacre of women and children at Cerro Pacoxom. In 2018, the Guatemalan government charged Cuxum Alvarado with crimes against humanity for participating in the mass sexual assault of Maya Achi women in and around Rabinal. In connection with the charges, the Guatemalan government obtained an INTERPOL Red Notice for Cuxum Alvarado’s arrest, which is a request to law enforcement agencies worldwide to locate and provisionally arrest suspects pending extradition to the jurisdiction in which they are charged. Cuxum Alvarado will be subject to extradition to Guatemala following any sentence imposed.
On April 30, 2019, Cuxum Alvarado was located in Waltham and arrested. During a subsequent interview with law enforcement, Cuxum Alvarado admitted that he was a member of the Rabinal PAC. At the time of his arrest, Cuxum Alvarado was unlawfully in the United States. He previously unlawfully entered the country in March 2004 in Arizona, and was ordered to be removed.
The charging statute provides for a sentence of up to two years in prison, one year of supervised release and a fine of $250,000. The defendant will be subject to deportation upon completion of any sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Jason Molina, Acting Special Agent in Charge of Homeland Security Investigation in Boston made the announcement today. The Waltham Police Department and the HSI Attaché in Guatemala City, Guatemala assisted in the investigation. Assistant U.S. Attorney George P. Varghese of Lelling’s National Security Unit is prosecuting the case.
Fugitive Arrested in Norwich Sentenced to 5 Years in Federal Prison for Possessing Gun and DrugsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that LEWIS CORWISE, 29, formerly of Norwich and New York City, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 60 months of imprisonment, followed by four years of supervised release, for illegally possessing a firearm in relation to his drug trafficking activity.
According to court documents and statements made in court, on April 5, 2018, Norwich Police arrived at a Norwich residence to arrest Corwise, who had a warrant for his arrest in New York. Corwise attempted to run from police, resisted and was apprehended. At the time of his arrest, Corwise possessed a loaded Springfield xD-45 handgun, a zip lock bag containing nearly 60 grams of heroin, a small quantity of marijuana, a digital scale, five cellphones and other items.
Corwise has been detained since his arrest. On August 1, 2019, he pleaded guilty to one count of possession of a firearm in furtherance of a drug trafficking crime.
This investigation was conducted by the Norwich Police Department and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins.
Fremont Man Sentenced for Bank TheftRead the Press Release
United States Attorney Joe Kelly announced that Marcus File, 36, was sentenced today in federal court in Omaha for his role in a bank theft. The Honorable Laurie Smith Camp sentenced File to four months’ imprisonment. There is no parole in the federal prison system. After his release from prison, File will serve a three-year term of supervised release. His sentence will run consecutive to state sentences for delivery and possession of controlled substances.
In December 2017, federal agents began investigating suspicious withdrawals from an account at First Nebraska Bank in Fremont, Nebraska. The investigation showed that between August 2017 and December 2017, Marcus File and his wife, Erica File, a bank employee, acted together to make unauthorized withdrawals from a customer’s account. Marcus File has been ordered to pay restitution to the bank, who reimbursed the unauthorized withdrawals. Co-defendant Erica File is scheduled to be sentenced on November 18, 2019.
This case was investigated by the Federal Bureau of Investigation.
Founder of Delta Homes and Former Employees Sentenced for Mortgage Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Today, Senior U.S. District Judge William B. Shubb sentenced three defendants for conspiring to commit wire fraud in a mortgage fraud scheme, U.S. Attorney McGregor W. Scott announced.
Moctezuma “Mo” Tovar, 50, of Sacramento, was sentenced to four years and six months in prison; Jun Michael Dirain, 47, of Antelope, was sentenced to six months in prison, followed by six months of home detention; and Sandra Hermosillo, 57, of Woodland, was sentenced to nine months of home detention.
According to court documents, Tovar was the founder and president of Delta Homes and Lending Inc., a now-defunct Sacramento-based real estate and mortgage lending company. Delta Homes opened one office in 2003 and eventually had several offices in Sacramento and Woodland. As the president of Delta Homes, Tovar managed the day-to-day operations of the company and prepared and submitted residential home loan applications on behalf of Delta Homes’ clients. Dirain was a loan processor at Delta Homes, and Hermosillo was a loan officer at the Woodland office and was also responsible for submitting residential home loan applications on behalf of clients.
Between October 2004 and May 2007, Tovar, Dirain, and Hermosillo conspired along with others to obtain home loans from mortgage lenders based upon false and fraudulent loan applications and supporting documents that falsely represented the borrowers’ assets and income, liabilities and debts, and employment status. They provided money to the borrowers in order to inflate their bank account balances. Once the loans were secured, the borrowers returned the money to the defendants. The aggregate sale price of the homes involved in the overall conspiracy was in excess of $10 million. As a result of the conspiracy, mortgage lenders and others suffered losses of at least $4 million.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Brian A. Fogerty and Justin L. Lee prosecuted the case.
Co-defendant Christian Parada Renteria, 43, formerly of Sacramento, pleaded guilty to two counts of concealing felonies related to the wire fraud conspiracy, and was previously sentenced to serve one year in prison.
Co-defendant Manuel Herrera, 39, of Davis, pleaded guilty to conspiracy to commit wire fraud, and co-defendants Jaime Mayorga, 40, and Ruben Rodriguez, 42, both of Sacramento, were convicted of conspiracy to commit wire fraud at a jury trial. Herrera will be sentenced by Judge Shubb on a date to be determined. Mayorga and Rodriguez will be sentenced by U.S. District Judge John A. Mendez on Nov. 5. Each defendant faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former bookkeeper of Maui nursery sentenced to 43 months of prison after pleading guilty to wire fraudRead the Press Release
HONOLULU, Hawaii – Thelma Pascua-Suyat, 64, of Maui, Hawaii, was sentenced today in federal court by Senior United States District Judge Susan Oki Mollway to 43 months of imprisonment for wire fraud. As part of her sentence, Pascua-Suyat must serve three years of supervised release, and pay $1,167,895.47 in restitution.
U.S. Attorney for the District of Hawaii Kenji M. Price announced that, according to court documents and information presented in court, from 2008 to 2016, Pascua-Suyat used her position as the bookkeeper for Ki-Hana Nursery, a Maui County nursery business, to falsify electronic bookkeeping records and steal over $1.3 million dollars from the Nursery. Pascua-Suyat’s scheme to defraud Ki-Hana Nursery lasted over the course of 7 years and that during that time she used the funds of Ki-Hana to pay over $1 million dollars in personal credit card debt and to make over $65,000 in payments on her home mortgage.
The case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Ken Sorenson.
Former Yahoo Software Engineer Pleads Guilty to Using Work Access to Hack into Yahoo Users’ Personal AccountsRead the Press Release
SAN JOSE – Reyes Daniel Ruiz pleaded guilty in federal court in San Jose today to hacking into the accounts of thousands of Yahoo users in search of private and personal records, primarily sexual images and videos of the account holders, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John F. Bennett.
In pleading guilty, Ruiz, a former Yahoo software engineer, admitted to using his access through his work at the company to hack into about 6,000 Yahoo accounts. Ruiz cracked user passwords, and accessed internal Yahoo systems to compromise the Yahoo accounts. Ruiz admitted to targeting accounts belonging to younger women, including his personal friends and work colleagues. He made copies of images and videos that he found in the personal accounts without permission, and stored the data at his home. Once he had access to the Yahoo accounts, Ruiz admitted to compromising the iCloud, Facebook, Gmail, DropBox, and other online accounts of the Yahoo users in search of more private images and videos. After his employer observed the suspicious account activity, Ruiz admitted to destroying the computer and hard drive on which he stored the images.
Ruiz, 34, of Tracy, California, was indicted by a federal Grand Jury on April 4, 2019. He was charged with one count of Computer Intrusion, in violation of 18 U.S.C. § 1030(a)(2)(C), and one count of Interception of a Wire Communication, in violation of 18 U.S.C. § 2511(1)(a) and (4)(a). Under the plea agreement, pled guilty to the count of Computer Intrusion.
Ruiz is currently on release pursuant to the conditions of an unsecured $200,000 bond.
Ruiz’s sentencing hearing is scheduled for February 3, 2020 at 1:30 p.m. before The Honorable Edward J. Davila, U.S. District Court Judge, in San Jose. The maximum statutory penalty for each count in violation of Computer Intrusion, 18 U.S.C. § 1030(a)(2)(C), is five years imprisonment and a fine of $250,000, plus restitution. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Daniel Kaleba is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Tong Zhang. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Former Fresno Resident Pleads Guilty to Investment Fraud SchemeRead the Press Release
FRESNO, Calif. — Gary John Koval, 76, formerly of Fresno, pleaded guilty today to one count of wire fraud in connection with an investment fraud scheme, U.S. Attorney McGregor W. Scott announced. According to court documents, from 2012 to approximately Nov. 2014, Koval executed an investment fraud scheme, where he falsely represented himself to potential investors as an experienced and successful businessperson and investor with significant relationships and contacts in the banking and investment community. He convinced several investors to give him money by falsely claiming that he was a facilitator for opportunities where one could purchase foreign bank notes or lines of credit and have them resold at a significant profit. Koval, in fact, used the money to fund his own business ventures unrelated to foreign investments or spent the money on his personal expenses. Koval also gave inconsistent, conflicting explanations and excuses concerning the lack of return on their investment and the inability to return the investment principal to investors that requested such a return. Some of the explanations and excuses provided by Koval induced investors to provide additional money. Koval’s conduct caused a loss to investors of over $550,000. This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Henry Z. Carbajal III is prosecuting the case. Koval is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Jan. 13. Koval faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.Financial Adviser Charged in Multimillion-Dollar Ponzi SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Peter C. Fitzhugh, the Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), announced today the unsealing of an Indictment charging JAMES T. BOOTH with securities fraud, wire fraud, and investment adviser fraud charges in connection with his years-long scheme to defraud customers of his financial services firm, Booth Financial Associates (“Booth Financial”). Throughout the scheme, BOOTH solicited money from clients of Booth Financial and falsely promised to invest their money in securities offered outside of their ordinary advisory and brokerage accounts. Instead, BOOTH used nearly all of the money to pay personal and business expenses. In total, BOOTH fraudulently obtained nearly $5 million from his customers. BOOTH was arrested this morning in Norwalk, Connecticut, and will be presented this afternoon before Magistrate Judge Kevin N. Fox in Manhattan federal court.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, James Booth convinced his clients that he would deliver solid and secure returns on their investments. Instead, as alleged, Booth delivered only lies and deceit, and bilked some 40 clients of nearly $5 million. Booth is now in federal custody and will have to answer for his alleged crimes.”
Special Agent-in-Charge Peter C. Fitzhugh: “In an elaborate scheme of false promises and deception, it is alleged that Booth attained almost $5 million by luring investors to move their assets with the guarantee of safer investments and higher returns. Instead, Booth allegedly pocketed the money. HSI New York’s El Dorado Task Force has investigated financial fraud cases for more than two decades, and with the continued law enforcement partnerships in these cases, we are able to arrest alleged fraudsters who seek to take advantage of the hopes and dreams of others for their own illicit gain.”
As alleged in the Indictment unsealed today in Manhattan federal court:[1]
From 2013 through 2019, BOOTH solicited money from clients of Booth Financial and falsely promised to invest their money in securities offered outside of their ordinary advisory and brokerage accounts. Specifically, BOOTH directed certain of his clients to write checks or wire money to an entity named “Insurance Trends, Inc.” Instead of investing his clients’ funds, BOOTH, who controlled the bank account of Insurance Trends, Inc., subsequently misappropriated his clients’ funds to pay his personal and business expenses.
In total, BOOTH raised approximately $4.9 million from approximately 40 investors. BOOTH lured many of his victims with false promises of safe investments with high returns. For example:
- BOOTH convinced a recently widowed elderly investor (“Investor-1”) to move money she had received from her late husband’s pension into Insurance Trends, Inc. BOOTH falsely promised Investor-1 that she would have $1 million by the time she was 100 years old. As a result of BOOTH’s false assurances, Investor-1 invested more than $600,000 with BOOTH.
- BOOTH similarly convinced another investor (“Investor-2”) to move his money into an investment product that, according to BOOTH, would never lose its principal and would grow with the market. Based on this false representation, Investor-2 moved money he had set aside for his child’s college expenses, at least approximately $60,000, to BOOTH. BOOTH subsequently failed to provide Investor-2 with documentation of his investment or to allow Investor-2 to redeem his investment.
- BOOTH convinced another elderly investor (“Investor-3”) to withdraw money from an annuity established for the care of his disabled sibling, approximately $18,000, and invest that money with BOOTH. Investor-3 gave the money to BOOTH with the understanding that BOOTH would invest that money for the benefit of Investor-3’s sibling’s continued care.
To prevent investors from seeking a return of their money, and to induce additional investments, BOOTH provided investors with fabricated account statements that falsely indicated that BOOTH had purchased certain securities on their behalf and that those investments had generated a profit. BOOTH further concealed the truth from investors by using money obtained from new investors to make redemption payments to previous investors, in a Ponzi-like fashion.
* * *
BOOTH, 74, of Norwalk, Connecticut, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison, one count of securities fraud, which carries a maximum sentence of 20 years in prison, and one count of investment adviser fraud, which carries a maximum sentence of five years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Anyone with information about the crimes charged in the Indictment should call the United States Attorney’s Office at 866-874-8900.
Mr. Berman praised the investigative work of HSI New York and HSI Boston - New Haven, Connecticut. Mr. Berman also thanked the U.S. States Postal Inspection Service, the U.S. Internal Revenue Service, the New York City Police Department, and the New York City Sherriff’s Office, which assisted in the investigation. Mr. Berman also thanked the Securities and Exchange Commission, which has filed a civil enforcement action against the defendant.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Robert L. Boone is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Federal charges and civil action announced in efforts to combat opioid epidemicRead the Press Release
SAVANNAH, GA: Pharmacists, a pharmacy, and several individuals have been named as defendants in various criminal and civil actions filed in federal court in the Southern District of Georgia as part of continuing efforts by the U.S. Attorney’s Office to combat the opioid epidemic.
The actions in Georgia and Florida were coordinated by the U.S. Department of Justice, and include 67 individuals charged in connection with various healthcare and controlled substance schemes.
For the actions taken in the Southern District of Georgia, U.S. Attorney Bobby L. Christine announced the following actions:
- A civil lawsuit in U.S. District Court in Brunswick, Ga., accuses Darien Pharmacy and Janice Ann Colter, 62, of Darien, Ga., pharmacist-in-charge of Darien Pharmacy, with filling prescriptions for controlled substances that she “knew or should have known were not issued for legitimate medical reasons and by a provider not acting with the regular course of professional practice.” The lawsuit represents the first-ever Controlled Substances Act suit against a pharmacy in the history of the Southern District of Georgia.
- A federal grand jury in Savannah indicted Jenna Savage, 26, of Port Wentworth, Ga.; Norman Lee Burnsed, 27, of Port Wentworth, Ga.; Tucker Chambers, 21, of Ellabell, Ga.; Macaila Brown, 22, of Rincon, Ga.; and Cameron Hilliard, 26, of Savannah, Ga., with conspiracy charges under the Controlled Substances Act relating to the distribution of oxycodone, Adderall, alprazolam, and clonazepam. Savage was further charged with 50 counts of illegally acquiring a controlled substance.
- A criminal information charges David L. Williford, 59, of Rincon, Ga., with illegally acquiring oxycodone. Williford, a pharmacist, is alleged in the information to have acquired the oxycodone from a pharmacy where he was employed.
“Nearly 70,000 people in the United States die each year from drug overdoses, and more than two-thirds of those deaths are due to opioid abuse,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “It is beyond outrageous when medical professionals and others fuel this crisis by pouring illegally prescribed drugs into the illicit drug supply pipeline, and our office will continue to take aim at such illegal activity.”
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Division, said “Pharmaceutical products that are distributed for non-medical reasons can be just as deadly as illicit drugs. The defendants in these cases endangered the community by their actions. These cases have been a success because of the unified efforts of our federal, state and local law enforcement counterparts.”
“Being a healthcare professional in the Medicare program is a privilege, not a right. When physicians and other healthcare providers put their own financial gain above patient well-being and honest billing of government health programs, they violate the basic trust that taxpayers extend to healthcare professionals,” said Special Agent in Charge Derrick L. Jackson of the HHS-OIG Atlanta Regional Office. “These cases put corrupt medical professionals on alert that law enforcement will do everything possible to root out all forms of waste, fraud and abuse in our federal health care programs.”
Criminal indictments and informations contain only charges; defendants are presumed innocent unless and until proven guilty. The claims asserted against defendants in a civil suit are allegations only and are not determinations of liability.
These cases are being investigated by the Drug Enforcement Administration and the Department of Health and Human Resources Office of Inspector General, and prosecuted for the United States by Assistant U.S. Attorneys Bradford Patrick, Jonathan Porter, Katelyn Semales, and Marcela C. Mateo.
Federal Inmate Pleads to Weapon ChargeRead the Press Release
BLUEFIELD, W.Va. – An inmate at the Federal Correctional Institution at McDowell pled guilty to a weapon offense, announced United States Attorney Mike Stuart. Devin Dantzler, 24, pled guilty to being an inmate in possession of a weapon.
Dantzler admitted that on June 26, 2019, while he was an inmate at the prison, he possessed a handcrafted weapon commonly called a “shank.” A staff member at the prison found the shank in Dantzler’s pocket during a search.
Dantzler faces up to five years in prison when sentenced on February 3, 2020.
The Federal Bureau of Prisons conducted the investigation. Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney John File is handling the prosecution.
Fatal Stabbing in Indian Country Leads to Five-Year Prison SentenceRead the Press Release
OKLAHOMA CITY – SAGE ATHEAKEE GOMEZ, 23, a member of the Ponca Tribe of Oklahoma, has been sentenced to five years in prison for involuntary manslaughter, announced U.S. Attorney Timothy J. Downing.
According to court documents, on September 15, 2018, Gomez stabbed B.L.W., a member of the Tonkawa Tribe, at a rural residence on Indian land near Ponca City. The victim died of his wounds on October 2. Gomez has been in federal custody since his arrest in late September 2018.
On October 16, 2018, a federal grand jury charged Gomez with three federal crimes: voluntary manslaughter "upon sudden quarrel and heat of passion" in Indian Country, Assault with a Dangerous Weapon in Indian Country, and Assault Resulting in Serious Bodily Injury in Indian Country. On March 8, 2019, Gomez pleaded guilty to a superseding information that charged him with involuntary manslaughter. In particular, the new charge alleged that when he stabbed the victim during an altercation, Gomez committed a reckless act "without due caution and circumspection, which might produce death."
After a lengthy hearing today, U.S. District Judge Charles B. Goodwin sentenced Gomez to five years in the custody of the Bureau of Prisons, to be followed by three years of supervised release. This prison sentence is above the advisory imprisonment range under the U.S. Sentencing Guidelines. The court also ordered Gomez to pay $6,890.27 in restitution to cover funeral expenses. Of that amount, $5,500 will go to the Tonkawa Tribe and $1,390.27 will go to the Oklahoma Crime Victims Fund.
This case is result of an investigation by the Bureau of Indian Affairs. It was prosecuted by Assistant U.S. Attorneys Arvo Q. Mikkanen and Matthew Anderson.
Reference is made to public filings for further information.
Enumclaw, WA couple charged with mail fraud for scheme to steal local drainage district tax dollars for their own useRead the Press Release
Seattle – An Enumclaw, Washington couple were charged in U.S. District Court in Seattle today in connection with their six-year scheme to divert more than $400,000 in local tax dollars to their own use, announced U.S. Attorney Brian T. Moran. ALLAN B. THOMAS and JOANN E. THOMAS are scheduled to appear on the federal charges in U.S. District Court in Seattle at 2:00 p.m. today.
According to the criminal complaint, ALLAN B. THOMAS served as Commissioner for Drainage District 5 in King County for more than 35 years. As a commissioner, THOMAS was involved in estimating the costs of drainage maintenance for the district so that the county auditor could set and assess the appropriate taxes. The Commissioners then authorized payment to service providers who were supposed to do maintenance work on the drainage system.
As early as 2012, JOANN THOMAS set up a joint bank account with ALLAN THOMAS’ son from a previous marriage. The account was a business account for a company called A C Services. Over the next six years, ALLAN THOMAS had $413,323 of local tax dollars paid to A C Services claiming it was for drainage ditch maintenance. However, THOMAS’ son said other than two small jobs performed in 2012, he did not perform any drainage ditch work. Financial records indicate that over the six years, shortly after the tax dollars were deposited into A C Services account, the money was quickly transferred to other accounts belonging to the THOMASES, or was used to pay their expenses for such things as hay, mortgage payments, or property taxes. More than $70,000 was withdrawn as cash.
In 2018, after the couple became aware of an investigation into their conduct, they began funneling the tax dollars through another company: City Biz. The couple submitted warrants for City Biz to be paid for drainage maintenance work and within days of the funds arriving in City Biz bank accounts, nearly all of the money was transferred directly to ALLAN THOMAS or the THOMASES’ dairy farm. In all the criminal complaint alleges the THOMASES defrauded taxpayers of $468,165.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
Mail fraud is punishable by up to 20 years in prison and a $250,000 fine.
The FBI and IRS - Criminal Investigation are leading the investigation with assistance from the Enumclaw Police Department. The Enumclaw City Attorney initiated the review of the district finances. The Washington State Auditor’s Office also conducted an audit of the district in 2019. The King County Prosecuting Attorney’s Office, in consultation with the U.S. Attorney’s Office, determined the case was appropriate for federal prosecution.
The case is being prosecuted by Assistant United States Attorneys Justin Arnold and Andrew Friedman.
thomas_complaint.pdfEastport Man Sentenced to Prison for Possessing Child PornographyRead the Press Release
Bangor, Maine: An Eastport, Maine man was sentenced today in federal court in Bangor for possessing child pornography, U.S. Attorney Halsey B. Frank announced.
U.S. District Judge Nancy Torresen sentenced Ryan Mumme, 48, to eight years in prison and supervised release for life. Mumme was also ordered to pay $1,000 in restitution. He pled guilty in June 2018 after being charged in December 2017.
According to court records, Mumme admitted to agents during an interview at his home that he had child pornography on his laptop computer. A subsequent forensic examination of the laptop revealed images and videos of children under the age of 12 engaged in sexually explicit conduct.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Maine State Police Computer Crimes Unit and the Eastport Police Department investigated the case. The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Easton-Area Attorney Charged with Defrauding EstateRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Angelo Perrucci, Jr., of Bangor, PA was arrested and charged by Indictment with wire fraud.
The indictment alleges that between on or about March 16, 2016 and on or about May 29, 2019, Angelo Perrucci, Jr., while serving as the administrator of an estate of a deceased Bergen County, N.J. individual, defrauded the estate of more than $300,000. During the more than three-year period in which Perrucci purported to serve as the administrator of the estate, he issued more than seventy checks to himself.
“As alleged in the indictment, this defendant – an attorney entrusted with the care of this estate – committed fraud and stole from the true beneficiaries of the estate,” said U.S. Attorney McSwain. “Attorneys of any kind, public or private, take an oath to act in accordance with the law – not to use their law license to steal. My Office will continue to root out the type of conduct that is alleged here.”
If convicted, the defendant faces a maximum possible sentence of 100 years’ imprisonment.
The case was investigated by the United States Postal Inspection Service, and is being prosecuted by Assistant United States Attorney Christopher J. Mannion of the Eastern District of Pennsylvania.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
District Man Sentenced to 15 Years for Fatal Stabbing in SoutheastRead the Press Release
WASHINGTON – David A. Hackney, 60, of Southeast, Washington, D.C., was sentenced to 15 years in prison for the fatal stabbing of a man in Southeast Washington, announced U.S. Attorney Jessie K. Liu.
On September 27, 2019, pursuant to Hackney’s guilty plea, the Honorable Milton C. Lee of the Superior Court of the District of Columbia sentenced Hackney to 15 years in prison. Hackney pled guilty to second-degree murder while armed in the killing of Chester Belfield at a prior proceeding on July 11, 2019. Upon completion of his sentence, Hackney will also be placed on five years of supervised release.
According to the government’s evidence, on April 13, 2019, at approximately 2:30 p.m., members of the Metropolitan Police Department (MPD) were dispatched to 1039 Southern Avenue, Southeast for a stabbing incident. Upon arrival at the scene, MPD located an adult male victim – later identified as Chester Belfield – unresponsive suffering from stab wounds to the body. Mr. Belfield was then transported to the District’s United Medical Center where he later died from his injuries.
According to multiple witnesses, Hackney and Mr. Belfield engaged in a verbal confrontation. Witnesses then observed Hackney escalating the verbal fight by chasing Mr. Belfield across Southern Avenue, SE with a knife in his right hand. Mr. Belfield was not armed and tried to run away from Hackney. The witnesses then observed Hackney stab Mr. Belfield at least three times. Hackney fled the scene after killing Mr. Belfield. The witness’s testimony was further confirmed by a cellular telephone video that captured the entire incident from start to finish.
Hackney was arrested on April 22, 2019, where he remains in custody until his 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 expressed appreciation for the work of Supervisory Victim Witness Advocate Jennifer Clark and Paralegal Specialist Debra Forte. Finally, she commended the work of Assistant U.S. Attorneys Nebiyu Feleke and Laura Bach who investigated and prosecuted the case.
Cuban Citizen Sentenced for Making False Statements on an Application for Lawful Permanent Residence and for Theft of Government FundsRead the Press Release
MIAMI – A Cuban citizen and high-ranking official in the Cuban government living in Miami, Florida, was sentenced on September 27, 2019, to six months in prison for making false statements in his application for lawful permanent residence and for theft of government funds. The Court also ordered the defendant to be deported to Cuba immediately upon completion of his sentence.
U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge George L. Piro the of the FBI’s Miami Field Office, Special Agent in Charge Anthony Salisbury of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office, and Special Agent in Charge Rodregas Owens from the Social Security Administration, Office of the Inspector General (SSA-OIG) made the announcement.
Saul Santos Ferro, 74, previously pleaded guilty to one count of making false statements in an immigration document and theft of government funds (Case No. 18cr20982). Santos was sentenced by U.S. District Judge Darrin P. Gayles of the Southern District of Florida who also ordered Santos to be removed to Cuba immediately upon completion of his sentence and pay restitution in the amount $12,522.28.
According to admissions in court documents, Santos made a number of lies and misrepresentations in his application to register as a permanent resident, which he knowingly presented to U.S. immigration authorities, ultimately obtaining lawful permanent resident status. Specifically, when he applied to register as a permanent resident, Santos failed to disclose his membership or affiliation with any organization, falsely stated that he never served in or been a member of a police unit and falsely stated that he never served in any situation that involved detaining persons. In fact, Santos served as a Major in the Cuban government’s Department of State Security or Departamento de Seguridad del Estado (DSE) for decades and was involved in arresting and detaining political dissidents in Cuba.
Additionally, Santos admitted that he falsely stated that he never gave false or misleading information to any U.S. government official while applying for any immigration benefit and falsely stated that he never lied to U.S. immigration authorities to gain entry or admission into the United States and to obtain immigration benefits. In fact, Santos told a series of lies about his past employment with the DSE to U.S. immigration authorities in the course of obtaining authority to enter the United States on a visitor visa in 2010 and 2012.
Santos further admitted to receiving Supplemental Security Income (SSI) benefits to which he was not entitled. SSI is a program funded by tax dollars and administered by the Social Security Administration to provide the elderly and people with disabilities with cash for basic needs including food, clothing and shelter. Santos and his wife qualified for and began receiving SSI benefits in September 2014, but by April 2015, Santos and his wife misrepresented their living situation and began receiving more money than they were entitled to receive. Because of his misrepresentation, the Court held Santos responsible for overpayments to him and his wife, which amounted to $28,491.83.
The FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and SSA-OIG, with support from the FBI’s International Human Rights Unit, investigated the case.
Assistant U.S. Attorney Daniel Cervantes of the Southern District of Florida and Trial Attorney Rami S. Badawy of the Criminal Division’s Human Rights and Special Prosecutions Section prosecuted the case, with the support of historian Joanna Crandall.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Chubbuck Man Sentenced to over 19 Years in Federal Prison for Distributing Child PornographyRead the Press Release
POCATELLO – Vincent Miera, 53, of Chubbuck, Idaho, was sentenced today in U.S. District Court to 235 months in federal prison followed by a lifetime of supervised release for distributing sexually explicit images of minors, U.S. Attorney Bart M. Davis announced. Miera was also ordered to pay $25,000 in restitution to victims of the offense. Miera was sentenced by Chief U.S. District Judge David C. Nye. Miera pleaded guilty on May 2, 2019.
According to court records, law enforcement officers executed a search warrant at Miera’s Chubbuck home in June 2018. Officers previously received information that Miera had downloaded a large amount of child pornography from the internet. At Miera’s home, officers discovered two phones in Miera’s possession. During a forensic search of Miera’s phones, officers found 159 images and 588 videos of child pornography. Miera admitted in court that he distributed the child pornography through a texting application.
At sentencing, Judge Nye also ordered Miera to forfeit the phones used in the commission of the offense. As a result of his conviction, Miera will be required to register as a sex offender.
This case was investigated by Homeland Security Investigations in Idaho Falls and the Chubbuck Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
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Canton Woman Charged for Role in Fraudulent SchemeRead the Press Release
BOSTON – A Canton woman was charged on Friday, Sept. 27, 2019, in federal court in Boston in connection with an ongoing investigation into a business email compromise (BEC) scheme.
Bintu Toure, 26, was charged with wire fraud and money laundering conspiracy. Toure will appear in federal court in Boston at a later date. She is the second defendant to be charged in connection with this scheme, following the indictment of Yannick Minang in July.
Toure allegedly conspired with others to open numerous bank accounts in Massachusetts in the name of sham companies, as part of an apparent BEC scheme. A BEC scheme is a sophisticated scam often targeting businesses involved in wire transfer payments. The fraud is carried out by compromising and/or “spoofing” legitimate business email accounts through social engineering or computer intrusion techniques, to cause employees of the victim company (or other individuals involved in legitimate business transactions) to transfer funds to accounts controlled by the scammers.
It is alleged that, through the use of fraudulent invoices and spoofed email accounts, Toure conspired to trick the victims of the scheme into wiring hundreds of thousands of dollars to bank accounts under her control. Toure and her co-conspirators then transferred funds from the accounts on to others located overseas.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release, and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater. The charge of money laundering conspiracy provides for a sentence of up to 20 years in prison, three years of supervised release, and a fine of $500,000 or twice the amount involved in the transaction, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney William B. Brady, of Lelling’s Criminal Division, and Jordi de Llano, Deputy Chief of Lelling’s Securities & Financial Fraud Unit, are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Bucks County Bar and Restaurant Owners Charged with Tax OffensesRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Stephen Eckler, 68, of Ivyland, Pennsylvania, and Robert Yost, 52, of Southampton, Pennsylvania, were charged by Information with willful failure to pay employment taxes.
The information alleges that Eckler and Yost, owners of the Kopper Kettle Bar and Restaurant, located in Feasterville, Pennsylvania, did not report $263,340 in cash wages that they paid to dishwasher employees at the Kopper Kettle Bar and Restaurant during the period March 2012 through at least September 2016. As a result of this practice, defendants Eckler and Yost failed to properly collect and pay over employment taxes to the Internal Revenue Service, including Social Security Tax and the Medicare Tax, commonly referred to as “FICA” taxes, and federal income tax withholdings.
“Our tax system requires businesspeople to truthfully report the wages paid to their employees,” said U.S. Attorney McSwain. “The defendants’ practice of paying their employees in cash, concealing this from the IRS, and failing to collect and pay federal employment taxes, undermines the integrity of the federal income tax system and harms those who play by the rules. My Office will aggressively pursue businesspeople who operate in such an illegal manner.”
If convicted, the defendants face a maximum possible sentence of five years in prison, a $250,000 fine, and full restitution paid to the IRS.
The case was investigated by the Internal Revenue Service, Criminal Investigation Division, and is being prosecuted by Assistant United States Attorney Richard P. Barrett.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Berkeley County man admits to role in cocaine, heroin, and fentanyl distribution operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Shavon Craig, of Kearneysville, West Virginia, has admitted to his role in a cocaine, heroin, and fentanyl distribution operation, U.S. Attorney Bill Powell announced.
Craig, age 35, pled guilty to one count of “Possession with Intent to Distribute Cocaine Base.” Craig admitted to distributing cocaine base in Berkeley County in December 2018.
Craig is facing up to 20 years incarceration and a fine of up to $1,000,000. 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 K. Omps-Botteicher, Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, and Assistant U.S Attorney Timothy D. Helman, are prosecuting the case on behalf of the government. The Federal Bureau of Investigation; the West Virginia State Police; the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Berkeley County Prosecuting Attorney’s Office, the Berkeley County Sheriff’s Office, the Jefferson County Sheriff’s Office, the Martinsburg Police Department, the Charles Town Police Department, and the Ranson Police Department investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Robert W. Trumble presided.
Baton Rouge Man Sentenced to Federal Prison for Drug Trafficking and Gun ChargesRead the Press Release
United States Attorney Brandon J. Fremin announced that U.S. Chief Judge Shelly D. Dick sentenced Kendrick Hardnett, age 40, of Baton Rouge, to 111 months in federal prison following his conviction for possession of a firearm by a convicted felon and possession with intent to distribute marijuana, cocaine, and cocaine base. The Court further sentenced Hardnett to 4 years of supervised release following his term of imprisonment, and ordered that the firearm involved be forfeited.
According to admissions made as part of his guilty plea, on September 6, 2017, Baton Rouge Police Department narcotics detectives executed a search warrant on Hardnett’s residence. Prior to executing the warrant, Hardnett was observed exiting the residence and departing in a vehicle. The detectives initiated a traffic stop of Hardnett’s vehicle and recovered two clear plastic baggies containing marijuana, one clear plastic containing cocaine base, and $1,100 from his pockets. Upon further search of the vehicle, the detectives recovered a firearm from the front driver's side floorboard where Hardnett was seated. At the same time, a second group of BRPD detectives entered Hardnett’s residence and recovered several clear plastic baggies containing marijuana, cocaine, and cocaine base, and a digital scale from the living room.
Prior to possessing the firearm, Hardnett was convicted of aggravated second-degree battery on April 4, 2007, and possession with the intent to distribute marijuana on September 30, 2010, both in East Baton Rouge Parish.
U.S. Attorney Fremin stated, “This conviction and sentence is yet another example of how our partnership with Baton Rouge Police Department and ATF can remove dangerous criminals from our streets to make our communities safer for our citizens.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Baton Rouge Police Department, with substantial assistance from the Louisiana State Police Crime Laboratory. The case is being prosecuted by Assistant United States Attorney Demetrius Sumner.
Bakersfield Man Sentenced to 15 Years in Prison for Receipt of Child PornographyRead the Press Release
FRESNO, Calif. — Augustine Amon Reyes, 33, of Bakersfield, was sentenced today by U.S. District Judge Dale A. Drozd to 15 years in prison for receiving child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, between Oct. 28, 2016, and Nov. 27, 2016, in Kern County, Reyes was found to have received or distributed through the internet between 10 and 150 images of minors engaged in sexually explicit conduct. The images also included depictions of prepubescent minors. Reyes also engaged in a pattern of activity involving the sexual abuse of minors.
This case was the product of an investigation by the Bakersfield office of Homeland Security Investigations as well as the California Department of Corrections and Rehabilitation. Assistant U.S. Attorney Brian W. Enos prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Anchorage Man Indicted on Child Pornography ChargesRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that Mr. Shannon Robert Bell, 53, has been indicted on charges of possession and distribution of child pornography. Bell was arraigned this afternoon before U.S. Magistrate Judge Deborah M. Smith, and is a resident of Anchorage, Alaska, where he was employed as a clinical therapist at multiple inpatient treatment facilities for children.
The indictment alleges that on Sept. 29, 2018, Bell knowingly distributed child pornography involving prepubescent minors, or minors who have not attained 12 years of age, by any means and facility of interstate and foreign commerce. Additionally, allegations state that on July 1, 2019, Bell knowingly possessed and accessed child pornography with intent to view material that contained images of child pornography, including images involving prepubescent minors.
If the public has any further information regarding Bell,
please contact Anchorage FBI at (907) 276-4441.
If convicted, Bell faces a statutory minimum of five years in prison and guideline sentence of the statutory maximum of 20 years in prison. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Federal Bureau of Investigation (FBI) and the Anchorage Police Department (APD) conducted the investigation leading to the indictment in this case. This case is being prosecuted by Assistant U.S. Attorney Adam Alexander.
This case is being brought as part of Project Safe Childhood. In May 2006, DOJ launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood combines federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Adams County Man Sentenced to 44 Months for Cocaine ConspiracyRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Lonell Johnson, 27, Grand Marsh, Wisconsin, was sentenced on September 26 by U.S. District Judge William M. Conley to 44 months in federal prison for conspiracy to distribute cocaine. Jackson pleaded guilty to this charge on July 11, 2019.
Johnson was charged along with 11 other individuals for participating in a cocaine distribution scheme. Gregory Smith mailed packages containing cocaine from Houston, Texas, to Joseph Harper in Madison. Postal records from November 2017 to November 2018 showed 32 packages mailed from Smith to addresses in Wisconsin or Iowa associated with Harper. Based on witness statements and multiple cocaine seizures in the case, each of the packages contained between a half kilogram and one kilogram of cocaine.
Intercepted communications during the wiretap investigation revealed that Johnson was a highly trusted confidant of Harper and also a frequent cocaine customer. The investigation revealed that Johnson cooked the purchased cocaine into crack cocaine and sold it to multiple customers in the Grand Marsh area. In addition, on September 26, 2018, law enforcement agents observed Johnson bring a cocaine package mailed by Smith into Harper’s stash house in Madison.
In imposing the sentence, Judge Conley noted that Johnson has a lengthy criminal history including crimes involving guns and violence to women. Judge Conley was also concerned that it appeared Johnson was serving in an apprenticeship role to Harper and was becoming more involved in the conspiracy as time progressed.
Judge Conley previously sentenced Harper to 12 years in prison and Smith to 11 years in prison for their respective roles in the conspiracy. All 12 defendants charged in the case have entered guilty pleas.
The charge against Johnson is the result of a joint investigation by the Drug Enforcement Administration, U.S. Postal Inspection Service, Federal Bureau of Investigation, Wisconsin Department of Justice Division of Criminal Investigation, and the Dane County Sheriff’s Office. The investigation was conducted and funded by the Organized Crime Drug Enforcement Task Force (OCDETF), a multi-agency task force that coordinates long-term narcotics trafficking investigations. The prosecution of the case is being handled by Assistant U.S. Attorney Aaron Wegner.
27 September 2019
Woman Pleads Guilty to Straw Purchasing FirearmsRead the Press Release
ALEXANDRIA, Va. – An Alexandria woman pleaded guilty today to straw purchasing multiple firearms.
According to court documents, Joni Maria Metcalf, 34, straw purchased five firearms from federal firearm licensees on behalf of a man she was dating at the time and his friend. These individuals provided Metcalf with money and instructions on how to purchase the firearms. Police in Washington, D.C. recovered one of the illegally purchased firearms from her boyfriend’s friend, 11 days after Metcalf straw purchased the firearm.
Metcalf pleaded guilty to making false statements with respect to the purchase of firearms and faces a maximum penalty of five years in prison when sentenced on Jan. 24, 2020. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after U.S. District Judge Liam O’Grady accepted the plea. Assistant U.S. Attorney Nicholas U. Murphy II and Special Assistant U.S. Attorney Annie Zanobini 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-286.
Winchester Man Sentenced to 24 Months for Extorting Singapore GovernmentRead the Press Release
LEXINGTON, Ky. —Mikhy Farrera-Brochez, a 34-year-old man originally from Winchester, Kentucky, was sentenced to 24 months in federal prison Friday, by United States Chief District Judge Danny C. Reeves, for sending extortionate communications to the Government of Singapore and its Ministry of Health and using the means of identification of over 14,200 people as leverage in his extortion attempt.
According to trial testimony, Farrera-Brochez obtained access to a database belonging to the Singaporean Ministry of Health that listed the private identifying and medical information of thousands of people in Singapore living with HIV, including more than 50 U.S. citizens. Farrera-Brochez sent the database to his mother in Kentucky, and retrieved it when he returned to Kentucky in 2018.
On January 22, Farrera-Brochez sent an email to several officials of the Government of Singapore that included three links to places on the internet where he had put copies of the database. Farrera-Brochez made several demands in that email. On February 18, Farrera-Brochez sent a second email to officials of the Government of Singapore threatening to publish the database if his demands were not met.
Farrera-Brochez was convicted on June 4. In addition to the sentencing, Farrera-Brochez was also ordered to forfeit to the federal government the electronic devices and Google accounts that he used in his crimes. Upon release from prison, Farrera-Brochez will be on supervised release for 3 years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and James Robert Brown, Jr., Special Agent in Charge of the FBI, jointly made the announcement.
“The defendant’s conduct was serious and significant, affecting thousands of people across the world,” said United States Attorney Robert M. Duncan, Jr. “The defendant unlawfully obtained the private, personal identifying information of more than 14,000 people, including American citizens, and used this information in an attempt to extort the government of a foreign nation. Without the hard work of law enforcement personnel, the defendant could have caused significant additional harm, by publishing this personal and private information.”
The investigation was conducted by the FBI with assistance from the Kentucky State Police. The United States was represented by Assistant United States Attorney Dmitriy Slavin and Special Assistant United States Attorney James Chapman.
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Williamsport Man Charged with Wire FraudRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Benjamin Butler, age 33, of Williamsport, Pennsylvania, was charged on September 26, 2019, with six counts of wire fraud.
According to United States Attorney David J. Freed, the indictment alleges that Butler engaged in a kiting scheme in September and October of 2015, whereby he allegedly used multiple credit card accounts to fraudulently pay off $18,850 of credit card charges by using the temporary credit on one card to pay off another account even though he did not have the funds to ultimately cover such a payment.
The charges stem from an investigation by the Federal Bureau of Investigation and the Department of Justice Office of the Inspector General. Assistant United States Attorney Geoffrey MacArthur 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.
Butler is facing a maximum of 20 years’ imprisonment and a $250,000 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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U.S. Attorney’s Office representative appointed to the Montana Missing Indigenous Persons Task ForceRead the Press Release
BILLINGS—The U.S. Attorney’s Office announced today that Assistant U.S. Attorney Jared Cobell has been appointed as the office’s representative on the Montana Missing Indigenous Persons Task Force.
The task force met today at the DoubleTree hotel in Billings. The task force was created by the Looping in Native Communities Act or LINC Act, which was passed by the 2019 Montana Legislature.
Montana Attorney General Tim Fox appointed Cobell based on a recommendation from the task force after it received a request from U.S. Attorney Kurt Alme. Cobell is a prosecutor in the Great Falls office and serves as the tribal liaison coordinator.
“We are pleased to be included on this new task force and know AUSA Cobell will represent us well. We support the state’s effort to better determine the scope of and help find missing Indigenous persons, and we look forward to working with the task force on this important issue that affects the entire state,” U.S. Attorney Alme said.
In June, the U.S. Attorney’s Office, the Montana Department of Justice, FBI and BIA co-sponsored a training for the public and law enforcement on how to use missing persons databases and alerts, what families can do when a loved one goes missing and related topics. A second training will be held on Oct. 16 in Billings at the First Interstate Bank Operation’s Center.
Later this year, the office is facilitating training to tribal governments and members on how to enter and review information in the National Missing and Unidentified Persons System, or NamUS, which is an online database available to the public and law enforcement.
The U.S. Department of Justice, BIA and Mt Department of Justice have provided or are working to provide all tribal and BIA law enforcement access to the state Criminal Justice Information Network and the National Crime Information Center Missing Person’s File.
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U.S. Attorney Scott W. Brady Statement on Confirmation of Mike Baughman as United States MarshalRead the Press Release
PITTSBURGH - United States Attorney Scott W. Brady congratulates Michael Baughman on his confirmation yesterday as United States Marshal for the Western District of Pennsylvania.
“Mike Baughman is a dedicated professional who has worked diligently throughout his career to keep our communities safe,” said U.S. Attorney Brady. “The mission of the United States Marshals Service in apprehending fugitives, protecting the federal judiciary, transporting prisoners and protecting witnesses is critical to the function of federal courts. The President’s confidence in U.S. Marshal Baughman is shared by the prosecutors at the United States Attorney’s Office.”
U.S. Attorney Bryan Schroder Participated in Anchorage Hate Crimes Forum Hosted by Z.J. Loussac LibraryRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder and Mayor Ethan Berkowitz were opening speakers at the Anchorage Hate Crimes Forum hosted by Z.J. Loussac Library on Saturday, Sept. 21. Attorney Schroder also participated as member of the Law Enforcement panel.
Members of the Law Enforcement panel addressed how to report a crime, what to expect in a criminal investigation, and how to determine whether a hate crime occurred. The panelists reminded community members that law enforcement actions depend upon the community timely reporting crimes.
Members of the Community panel provided an outlook on victims of bias and hate crimes, including the reluctance that many victims have to report crimes. The panelists also addressed concerns of bias against marginalized groups and violence against women in Anchorage and throughout the state.
Members of the Resource panel discussed resources that are available to victims or witnesses to crimes. The panelists highlighted available advocacy and enforcement groups, and encouraged affected individuals to not be afraid to seek help.
The event’s empowering keynote address came from Judy and Dennis Shepard of the Matthew Shepard Foundation, presenting their mission “to erase hate by replacing it with understanding, compassion, and acceptance.”
Attorney Schroder provided an encouraging recap, stating “Anchorage is a diverse city and we must recognize the complexities associated with diversity. This public discussion assembled individuals, agencies, and organizations with a common goal: fight hatred. We must fight hatred by having a strong community that will not tolerate prejudice. Through continuous outreach, awareness, and education, we can build a stronger community to support our common goal.”
For more information about Department of Justice’s work to combat and prevent hate crimes, visit www.justice.gov/hatecrimes: a one-stop portal with links to Department of Justice hate crimes resources for law enforcement, media, researchers, victims, advocacy groups, and other organizations and individuals.
Law enforcement members joining U.S. Attorney Bryan Schroder at this event included officials from the Anchorage Police Department, Alaska State Troopers, Anchorage District Attorney Office, and Federal Bureau of Investigation. Help make a difference by reporting crimes to your local law enforcement officials.
Two men sentenced in Bozeman drug probe after investigators find nearly five pounds of meth in vehicleRead the Press Release
MISSOULA—Two men convicted of methamphetamine trafficking charges were sentenced to prison today after an investigation in which law enforcement seized almost five pounds of meth from a vehicle, U.S. Attorney Kurt Alme said.
Victor Manuel Ortega-Yescas, 51, of Bozeman, was sentenced to three years in prison, followed by referral to U.S. Immigration and Customs Enforcement for deportation. Ortega-Yescas pleaded guilty in June to possession with intent to distribute meth.
Co-defendant Carmelo Enrique Ruiz-Morales, 45, of Bozeman, was sentenced to 18 months in prison, followed by referral to U.S. Immigration and Customs Enforcement for deportation. Ruiz-Morales pleaded guilty in June to distribution of meth.
The prosecution said in court documents that the defendants were identified as sources for meth in Bozeman. A confidential informant working with the Missouri River Drug Task Force made three controlled buys of two ounces each time from Ruiz-Morales in late 2018. Investigators then set up a controlled buy with Ruiz-Morales, and the informant bought one pound of meth for $7,500. One pound of meth is the equivalent of about 3,624 doses.
Law enforcement began investigating Ortega-Yescas as a potential source after observing Ruiz-Morales meeting with him. A search warrant served on Ruiz-Morales’ phone showed a large number of text messages between the two men that indicated Ortega-Yescas supplied meth to Ruiz-Morales. Investigators learned that Ortega-Yescas would take 15-hour drives to Lynwood, CA, spend a few hours there and return to Montana. On Feb. 8, Ortega-Yescas drove to Lynwood, arrived the next day and reentered Montana on Feb. 10. Officers pulled him over in Big Sky and executed a search warrant on his Ford Expedition. Officers found a large quantity of meth, which was found to be 2,146 grams, or 4.7 pounds, of 99 percent pure meth. That amount of meth is the equivalent of about 17,032 doses.
Assistant U.S. Attorney Tom Bartleson prosecuted the case, which was investigated by the Missouri River Drug Task Force and Montana Highway Patrol.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Two Robeson County Men Sentenced for Robbery and Gun CrimesRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that Chief United States District Judge Terrence W. Boyle sentenced DANIEL THOMPSON 22, of Fairmont, North Carolina, to 112 months’ imprisonment and ELIJAH MITCHELL 24, of Lumberton, North Carolina, to 125 months’ imprisonment.
THOMPSON and MITCHELL were named in a two-count Indictment on March 6, 2019. Count One charged both men with Interference with Commerce by Means of Robbery and Aiding and Abetting, and Count Two charged both men with Brandishing a Firearm during a Crime of Violence and Aiding and Abetting. On June 19, 2019, both men pled guilty to both counts.
On September 9, 2018, around 6:30 a.m., THOMPSON and MITCHELL entered a Murphy USA gas station located in Fayetteville, North Carolina. There, THOMPSON approached the store clerk and brandished a firearm at her while demanding money from the cash register. MITCHELL then jumped over the counter and stood by the victim as she removed money from the cash registers. In addition to the money, cartons of cigarettes and other tobacco products were also stolen from the store. Surveillance video captured the robbery, and law enforcement disseminated still shots of the robbery, which ultimately led to identification and arrest of THOMPSON and MITCHELL.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Since 2017 the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
That effort has been implemented through the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices in those communities on a sustained basis to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Fayetteville Police Department and the Fairmont Police Department investigated this case. Assistant United States Attorney Chad E. Rhoades prosecuted the case for the government.
Two More Arrested in Connection to Eastern Avenue Marijuana Distribution Conspiracy, ShootingsRead the Press Release
Roanoke, VIRGINIA –A pair of Roanoke men, Chad Custer and Darion Harvey, who conspired with others to run a marijuana operation out of a rented, Eastern Avenue home in the City of Roanoke, have been charged in a federal criminal complaint with drug and gun charges. United States Attorney Thomas T. Cullen made the announcement today as part of the Western District of Virginia’s ongoing Project Safe Neighborhoods initiative to reduce drug and violent crime.
Custer and Harvey are the latest in a series of arrests tied to the alleged drug operation at the Eastern Avenue home. Earlier this week, Aaron Woods was arrested and charged with federal drug and firearms-related crimes.
“These and other recent arrests reflect the commitment of federal law enforcement and the Roanoke Police Department to respond, in an aggressive manner, to rising levels of violence and organized drug activity in the city,” U.S. Attorney Cullen stated today. “Working collaboratively, we will continue to investigate individuals and groups engaged in these activities and, when appropriate, prosecute them in federal court.”
As alleged in the criminal complaints, Woods, Custer, Harvey, and others had been working together since at least 2017 to distribute large amounts of marijuana from an Eastern Avenue home Woods rented. Law enforcement estimated that a dozen or more individuals would visit the home each day to purchase marijuana from large, vacuum-sealed bags left out on a table. According to witnesses, purchasers streamed in and out throughout the day as others played video games, smoked marijuana and socialized. Witnesses described seeing Woods, Custer and Harvey in possession of firearms, which they kept out on tables or in their waistbands.
Nolan Kyle Harman, also of Roanoke, was charged federally in February of this year for making straw purchases of firearms for Custer, at Custer’s request.
The complaints allege the distribution activity at Woods’ Eastern Avenue residence culminated in a shooting death on July 10, 2018. According to witnesses, three individuals who had earlier in the day left the residence following an argument about a marijuana purchase, returned around 9:45 p.m. Something like a brick was thrown through the front, plate glass window at which point Woods, Harvey and Custer began shooting. Two-way gunfire ensued, resulting in the death of an individual who was shot in the head and neck as he/she apparently attempted to flee the scene. Woods, Harvey, Custer, and others, fled the Eastern Avenue home following the shooting.
Investigation of these cases was conducted by the Roanoke City Police Department, the Bureau of Alcohol, Tobacco, Firearm, and Explosives, the Drug Enforcement Administration, the Federal Bureau of Investigation, the U.S. Marshals Service, the Roanoke County Police Department, the Bedford County Sheriff’s Office, the Virginia State Police, and members of the region’s High Intensity Drug Trafficking Area (HIDTA) task force. Assistant United States Attorney Kari Munro will prosecute these cases for the United States.
These cases were brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
A criminal complaint is only a charge and not evidence of guilt. These defendants are entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Two Men Charged with Conspiring to Distribute Fentanyl, Heroin, and CocaineRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Justin Blake, 36, of Brooklyn, New York, and Michael Graham, 37, of Burlington, Vermont, were indicted yesterday by the federal grand jury on charges of conspiring to distribute, possessing with intent to distribute, and distributing fentanyl, heroin, and cocaine, in violation of the Controlled Substances Act. Blake and Graham were both arrested on September 20, 2019, and are currently detained pending trial.
According to court records, the Burlington Police Department, with assistance from the Drug Enforcement Administration, conducted multiple purchases of fentanyl from Blake and Graham. BPD Detectives identified three Burlington residences that Blake and Graham utilized as part of their drug distribution activities, and obtained warrants authorizing their search. On September 20, 2019, BPD and DEA executed the three warrants on Washington Street, Riverside Avenue, and Archibald Street, seizing approximately 100 grams of cocaine, 30 grams of fentanyl, 14 grams of heroin, $5,300 of U.S. Currency, and a .22 caliber Beretta semi-automatic pistol.
If convicted, both defendants face a maximum of twenty years of imprisonment on each count. The actual sentence however, would be determined by the Court with guidance from the advisory Federal Sentencing Guidelines. The United States Attorney emphasizes that the charges in the indictment are merely accusations, and that the defendants are presumed innocent unless and until proven guilty.
United States Attorney Christina E. Nolan commended the collaborative investigative efforts of the Burlington Police Department and the Drug Enforcement Administration.
The United States is represented in this matter by Assistant U.S. Attorney Jonathan Ophardt. Defendant Blake is represented by Robert L. Sussman, Esq. Defendant Graham is represented by Gregory S. Mertz, Esq.
Two Individuals Indicted for Child Pornography Charges Under Project Safe Childhood InitiativeRead the Press Release
Jackson, TN – On September 26, 2019, a federal grand jury in Memphis indicted John Sanderson, 36 of Dyersburg, Tennessee and Matthew Berry, 40, of Bells, Tennessee for child pornography violations. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the indictments today.
As charged in the indictments, Sanderson was charged with producing child pornography (18 USC 2251) and possessing child pornography (18 USC 2252). Sanderson was first arrested in Dyer County on a complaint on August 29, 2019. He faces 15-30 years in custody if convicted of production, and up to 20 years if convicted for possession. Investigators are seeking information that can assist in the identification of minor victims. Please contact the FBI’s Child Exploitation Task Force in Jackson, Tennessee, if you may have information about the sexual exploitation of minors.
The grand jury also returned an indictment charging Matthew Berry with receipt and possession of child pornography. According to facts presented at a detention hearing in federal district court in Jackson, Tennessee, on September 20, 2019, Berry used peer-to-peer software to view images of minors engaging in sexually explicit conduct. Berry was a Crockett County employee at the time the alleged conduct occurred. The Crockett County Sheriff’s Department and the FBI are investigating this case.
U.S. Attorney D. Michael Dunavant said: "With new and ever-changing technology, offenders are finding new and increasingly disturbing ways to victimize and exploit child victims. These cases demonstrate that no matter where offenders are located, our Project Safe Childhood Initiative and FBI partners will find them and hold them accountable for internet crimes against children."
Both of these cases are being brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC 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 PSC, please visit http://www.justice.gov/psc/ For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
These cases are being prosecuted by the Eastern Division of the U.S. Attorney’s Office on behalf of the government.
The charges and allegations contained in the indictments are merely accusations, and the defendants are considered innocent unless and until proven guilty.
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Three New York Men Sentenced for Firearms and Heroin Trafficking OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that United States District Court Judge A. Richard Caputo sentenced three men from New York for various heroin trafficking and firearms offenses. On September 19, 2019, Judge Caputo sentenced Jose Mendoza, age 41, to a time served sentence of approximately 13 months, and three years of supervised, for conspiring to distribute heroin. On September 26, 2019, Judge Caputo sentenced Edwin Aguilar, age 27, to two years of probation, for conspiring to distribute heroin. That same day, Luis Mercado, age 48, was sentenced to 110 months’ imprisonment and four years of supervised release, for conspiring to distribute in excess of 100 grams of heroin, and for aiding and abetting the transportation of stolen firearms.
According to United States David J. Freed, Mercado brokered the sale of 47 firearms stolen from Fulmer’s Sporting Goods, a federally licensed firearms dealer in Wysox, Pennsylvania. Mercado and his co-conspirators, Jared Miller and Aaron Vanderpool, received heroin and cash in exchange for the stolen firearms. Mercado admitted to trafficking between 100 grams and 400 grams of heroin, which is the equivalent of approximately 4,000 to 16,000 potentially fatal doses of heroin between New York and Pennsylvania in June 2012 through June 2015. As part of his sentence, Mercado was ordered to pay $27,383.75 in restitution.
Mendoza and Aguilar worked as drug couriers who trafficked between 20 grams and 40 grams of heroin, which is the equivalent to approximately 800 to 1,600 potentially fatal doses of heroin. Mendoza and Aguilar were apprehended transporting heroin from New York to Pennsylvania on August 31, 2015.
Miller previously was sentenced to 84 months’ imprisonment, and Vanderpool was sentenced to 77 months’ imprisonment for their roles in the offenses. One other individual associated with the investigation, Jose Espinosa, pleaded guilty to heroin trafficking and stolen firearms offenses, and awaits sentencing.
The matter was investigated by the Bureau of Alcohol Tobacco, Firearms and Explosives, and the Pennsylvania State Police. Assistant United States Attorney Phillip J. Caraballo prosecuted the cases.
These cases are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The cases were brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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St. Petersburg Man Sentenced for Distribution of Synthetic OpioidRead the Press Release
Tampa, Florida – U.S. District Judge Steven Merryday today sentenced Mario Marquez Roberson (28, St. Petersburg) to 15 years and 8 months in federal prison for distribution of 4-flouroisobutyrl fentanyl, a synthetic opioid.
Roberson had pleaded guilty on April 2, 2019.
According to court documents, Roberson engaged in six transactions with an undercover officer during which he sold the officer hydromorphone pills and an approximate total of 52 grams of a synthetic opioid.
This case was investigated by the Drug Enforcement Administration and the St. Petersburg Police Department. It was prosecuted by Assistant United States Attorney Callan Albritton.
This investigation is also the result of the Organized Crime Drug Enforcement Task Forces (OCDETF) program. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.