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Thursday 1 August 2019
Harrison County Man Sentenced to over Three Years in Prison on Federal Gun ChargesRead the Press Release
Gulfport, Miss. – Damion Xavier Giglio, 34, of Saucier, Mississippi, was sentenced today by U.S. District Judge Louis Guirola, Jr. to 41 months in prison, followed by three years of supervised release, for being an unlawful user of controlled substances in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Kirk Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Giglio was also ordered to pay a $5,000 fine.
On February 15, 2018, Harrison County Sheriff Deputies responded to a call regarding a shooting and found Giglio with a rifle. Giglio was out on bond for a prior aggravated assault charge and was taken into custody. He admitted to smoking marijuana since he was 16 years old and using methamphetamine.
On January 8, 2019, Giglio was charged in a federal indictment with possession of a firearm by a user of controlled substances. He pled guilty before Judge Guirola on April 1, 2019.
The Harrison County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. The case was prosecuted by Assistant United States Attorney Annette Williams.
Gulfport Man Pleads Guilty to Transporting Images of Minors Engaged in Sexually Explicit ConductRead the Press Release
Gulfport, Miss. – Jesse Allen Nichols, 37, of Gulfport, pled guilty today before Senior U.S. District Judge Louis Guirola Jr. to transporting images of minors engaged in sexually explicit conduct, announced U.S. Attorney Mike Hurst and Jere T. Miles, Special Agent in Charge of Immigration and Customs Enforcement’s Homeland Security Investigations in New Orleans.
“Dealing in sexually explicit videos of children is despicable. I appreciate the National Center for Missing and Exploited Children, our Homeland Security agents, trial attorneys from the U.S. Department of Justice, and our prosecutors for putting an end to this criminal’s evil trade. We will continue to work with our government and private sector partners to make sure all these types of deviants are brought to justice,” said U.S. Attorney Hurst.
In February 2018, Nichols transported images of minors engaging in sexually explicit conduct to “Dropbox”, on online storage medium, which resulted in the National Center for Missing and Exploited Children (NCMEC) issuing a CyberTipline Report to authorities at Homeland Security Investigations containing at least 56 videos of minors engaging in sexually explicit conduct. Further investigation revealed the email and user name of Nichols and it was determined that Nichols’s cell phone was used in transporting the images of the minors.
Nichols was indicted on December 12, 2018. When arrested on the indictment, Nichols admitted to the use of his cellular telephone to access various social media platforms and online storage mediums. He affirmed the use of his cellular telephone and the email identified in the CyberTipline Report, and that through such access on his cellular device he stored images and videos of child pornography.
Nichols will be sentenced by Judge Guirola on November 12, 2019, at 10:00 a.m. in Gulfport. He faces a maximum penalty of 20 years in prison and a $250,000 fine.
The case was investigated by Homeland Security Investigations. It was prosecuted by Assistant U.S. Attorney Andrea Jones and Trial Attorney Ralph A. Paradiso with the Department of Justice Criminal Division’s Child Exploitation and Obscenity Section.
This 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. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), 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.projectsafechildhood.gov.
Fugitive Arrested in Norwich Pleads Guilty to Federal Gun ChargeRead 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, pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to one count of possession of a firearm in furtherance of a drug trafficking crime.
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.
Judge Dooley scheduled sentencing for October 24, 2019, at which time Corwise faces a mandatory term of imprisonment of at least five years.
Corwise has been detained since his arrest.
This investigation has been conducted by the Norwich Police Department and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins.
French National Indicted for Six Million Dollar Bank Fraud Scheme and for Lying in an Application for U. S. Government Insured LoansRead the Press Release
NEW ORLEANS – U.S. Attorney Peter Strasser announced today that GILES CASSE (“CASSE”), age 49, was charged on July 25, 2019 by a Grand Jury sitting in the Eastern District of Louisiana in a four-count indictment with violating Title 18, United States Code, Section 1344, Bank Fraud and Title 18, United States Code, Section 1014, False Statements to obtain a government insured loan.
In 2000, CASSE, a native of France, started a Houma, Louisiana based company, along with several other individuals, called GMD International which did business as “NOLATEK”. NOLATEK’s business model was the buying of used electronic testing parts, restoring the parts, and reselling them for a profit. CASSE maintained personal control of the company and applied for a series of loans, lines of credit and factoring agreements with banks in Louisiana and Texas. Two of the loans were backed by U.S. Government guarantors, such that if the loans were not repaid, the government was obligated to reimburse the banks up to 80% of the loan.
The indictment alleges two schemes victimizing three banks. The heart of the scheme was an inflated appraisal of NOLATEK’s inventory. CASSE hired an appraisal company to perform the economic evaluations, but CASSE provided undocumented estimates of NOLATEK’s inventory purchase costs. Specifically, the indictment alleges that CASSE fraudulently inflated the value of NOLATEK’s inventory that he provided to the appraiser. The indictment also alleges that although the initial appraisal valued NOLATEK inventory at over $21 million dollars in 2007, that same inventory was sold for approximately $64,000 in 2010.
The indictment further alleges that CASSE, on behalf of NOLATEK, presented an inflated and fraudulent appraisal in a loan guarantee application with the U.S. Department of Agriculture (U.S.D.A) for a $3,000,000 loan at Prosper Bank in Dallas, Texas. The false loan application was executed in Louisiana and transmitted to the Texas bank. NOLATEK defaulted on the loan in 2009. In 2010, the USDA paid $2,107,259 to make good on the loan guarantee. Prosper Bank suffered a loss of $900,000.
The indictment further alleges that in March 2009, CASSE, through another company controlled by him, Test and Measurement Rentals, LLC, obtained a $1,000,000 loan from First NBC Bank in New Orleans (FNBC). This loan was guaranteed by the Small Business Administration, a U.S. Government agency. CASSE again provided the fraudulent and grossly inflated inventory appraisals of the companies controlled by CASSE, as well as fraudulent invoices, as collateral.
CASSE also defaulted on this loan and caused the Small Business Administration to pay $774,041 to FNBC to honor its guarantee. FNBC suffered a loss of approximately $225,000 on the loan.
Finally, the indictment alleges that CASSE, through NOLATEK, entered into a factoring agreement with Gulf Coast Bank in New Orleans in May 2009. Factoring is a financial arrangement whereby a company sells its accounts receivables for immediate cash. In this type of arrangement, the business gets money more quickly and the financial institution gets a verifiable repayment. The indictment alleges that CASSE submitted fraudulent and fictitious invoices to cause Gulf Coast Bank to release money under its care and custody. CASSE presented more than thirty invoices claiming NOLATEK sold $1.3 million dollars of merchandise in July, August, and September 2009. In reality, NOLATEK sold only $17,200 of product in that period. CASSE defaulted on the factoring agreement and Gulf Coast Bank lost $2,000,000 as a result.
If convicted, CASSE faces a maximum term of imprisonment of thirty years per count, a maximum fine of $1,000,000 per count, a supervised release of five years and a mandatory special assessment of $100 per count and restitution to the banks and government agencies.
A Magistrate Judge in the Eastern District of Louisiana issued an arrest warrant for CASSE in 2017. The arrest warrant was forwarded to INTERPOL, which caused a “red notice” to be issued which would cause the arrest of CASSE if he used his French passport in international travel.
U. S. Attorney Strasser reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation and the Inspectors General of the Small Business Administration and the Department of Agriculture in investigating this matter. Assistant U. S. Attorney Carter K. D. Guice, Jr. is in charge of the prosecution.
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Fraudster Brought Back from Kenya to Face Jail Time for Stealing Almost $750,000 from UCSD through a Spear Phishing CampaignRead the Press Release
Assistant U. S. Attorney Alexandra F. Foster (619) 546-6735
NEWS RELEASE SUMMARY – August 1, 2019
San Diego – Amil Hassan Raage pleaded guilty to fraudulently receiving almost $750,000 as part of a spear phishing scheme. (Spear-phishing is when an unwitting victim responds to a bogus email, which the victim believes is from a trusted sender, and reveals confidential information to the fraudsters.)
On July 23, 2018, the University of California San Diego (UCSD) received a spear phishing email from a fraudulent Dell email account instructing UCSD to redirect its payments meant for Dell equipment and services to Raage’s Wells Fargo bank account in Minnesota. Believing that the email was from a legitimate Dell employee, UCSD followed the instructions and redirected payment.
The email actually originated from one of Raage’s co-conspirators in Kenya. From August 8 through September 12, 2018, UCSD sent Raage 28 payments totaling $749,158.37. Each time UCSD wired money to Raage’s account, Raage would promptly withdraw the money or transfer it to another account. When UCSD learned of the fraud, it halted payments.
UCSD was not alone. Raage and his co-conspirators perpetrated a similar scheme on another university, this one in Pennsylvania. Again, a co-conspirator in Kenya used a falsified Dell account to instruct the Pennsylvania university to redirect its Dell payments to a bank account in Minnesota again controlled by Raage. Over the month of January 2018, the Pennsylvania university wired six payments totaling $123,643.77 to Raage’s bank account before the university was alerted to the fraud and stopped payments.
After the bank froze Raage’s accounts, he fled to Kenya on September 22, 2018. Working with Kenyan law enforcement, the FBI’s Legal Attaché in Kenya, and the Department of Justice’s Office of International Affairs, Kenyan police arrested Raage on May 7, 2019, and extradited back to the United States on May 23, 2019, to face prosecution for his involvement in this theft.
“Modern criminals like Raage have ditched the ski mask and getaway vehicle and opted for a computer as their weapon of choice,” said U.S. Attorney Robert Brewer. “As this defendant has learned, we are matching wits with new-age thieves and successfully tracking them down and putting an end to their high-tech deception.”
“As exemplified by this outstanding result, criminals who operate in cyberspace falsely believe themselves to be beyond the reach of law enforcement, but they are sorely mistaken,” said FBI Special Agent-In-Charge Scott Brunner. “Our agents will relentlessly pursue justice, aided by our foreign partners. Thank you to the Kenyan National Police and the Office of International Affairs for their invaluable assistance in bringing Mr. Raage before the bar of justice.”
This type of spear phishing activity has been on the rise, especially for universities, local governments and other entities with procurement paperwork available on-line.
If you or your business or organization have been victimized by an email compromise scam, such as this one, it is important to act quickly. Contact your financial institution immediately and request that they contact the financial institution where the fraudulent transfer was sent. Next, call the FBI at 1-800-CALL-FBI and also file a complaint—regardless of dollar loss—with the FBI’s Internet Crime Complaint Center (IC3).
Raage’s sentencing is set for 8:30 a.m. on October 11, 2019, before U.S. District Judge Gonzalo P. Curiel.
DEFENDANT Case Number: 18CR4858-GPC
Amil Hassan Raage Age: 48
SUMMARY OF CHARGE
Conspiracy to Commit Wire Fraud, in violation of Title 18 United States Code, Sections 1349
Maximum Penalty: Twenty years in prison
AGENCIES
Federal Bureau of Investigation, San Diego Division
Kenya Police Service
Director of Public Prosecutions, Kenya
Legal Attaché, U.S. Embassy, Nairobi, Kenya
U.S. Department of Justice, Office of International Affairs
Former Sheriff of Philadelphia Sentenced to PrisonRead the Press Release
The former Sheriff of Philadelphia John Green, 72, of Philadelphia, Pennsylvania, was sentenced today to serve five years in prison followed by one year of supervised release, and ordered to forfeit $76,581 by U.S. District Judge Wendy Beetlestone of the Eastern District of Pennsylvania.
John Green was convicted of conspiring to defraud the citizens of Philadelphia of his honest services as Sheriff of Philadelphia by receiving and accepting a stream of hidden personal benefits from co-defendant James Davis in exchange for giving Davis millions of dollars of business at the Philadelphia Sheriff’s Office. From 2002 to 2011, Green accepted hidden bribes and kickbacks from his co-defendant Davis totaling over $675,000. The bribes and kickbacks that Davis gave to Green included: (1) a move-in ready home in Philadelphia for Green and his new wife in 2003, with rent-free living and then Green’s purchase of the home at a discount; (2) employment of Green’s new wife as a subcontractor when she started a new business in 2004, paying her over $89,000, and being the primary and at times sole employer of Green’s wife; (3) facilitation of over $65,000 in hidden campaign contributions to Green’s 2007 re-election campaign through others; (4) payment of over $148,000 in advertising for Green’s 2007 re-election campaign and falsely reporting the payments on the campaign finance reports; and (5) over $320,000 in payments to Green to assist him with the purchase of his retirement home in Florida in 2010. In exchange, Green gave his co-defendant Davis over $35 million of business at the Philadelphia Sheriff’s Office in the sale of homes at sheriff’s sales.
“Sheriff Green sold the business of his office for hundreds of thousands of dollars in bribes and kickbacks,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Today’s sentence holds him accountable for his near-decade-long betrayal of the public trust.”
“Public officials hold office to serve the public good, not to line their own pockets” said U.S. Attorney William M. McSwain for the Eastern District of Pennsylvania. “When public servants abuse their authority and flout the rule of law, they disgrace themselves and the offices they hold. That is what Green did here and he is now paying the price. Every public official should be on notice after today’s sentence: federal law enforcement is watching and we will hold you accountable to the law and to the public that you are supposed to serve.”
“This type of corruption erodes the faith of citizens in the city's ability to function and causes people to question the honesty, integrity and efficiency of how the city is run,” said City of Philadelphia Inspector General Amy L. Kurland. “This case was especially significant to the city and this sentence sends a strong message that we will not tolerate employees or officials using their positions to enhance their own wealth at the taxpayers’ expense.”
Green left office at the end of 2010, over one year before the expiration of his term, after the City of Philadelphia, Office of the Controller had issued an audit report in October 2010 expressing concern about potential irregularities with respect to the funds held by the Philadelphia Sheriff’s Office relating to Sheriff’s sales. The Controller’s Office hired Deloitte Financial Advisory Services, which conducted a forensic investigation of the Sheriff’s Office. Deloitte issued a report in October 2011 that revealed the extent of the hidden business that Green had given to co-defendant Davis. Deloitte provided its findings to the government. Green pleaded guilty in April 2019.
The case was investigated by the FBI, IRS Criminal Investigation, and the City of Philadelphia Office of Inspector General. Trial Attorney Jennifer A. Clarke of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Sarah L. Grieb and Christopher Diviny of the Eastern District of Pennsylvania prosecuted the case.
Former President of Investment Adviser Firm Sentenced and Former Comptroller Charged in Multimillion-Dollar Investment FraudRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that HECTOR MAY, the president of Executive Compensation Planners, Inc. (“ECP”), a registered investment adviser and financial planning firm located in New City, New York, was sentenced to 13 years in prison for participating in a conspiracy to defraud certain investment advisory clients (the “Victims”) out of more than $11 million. MAY was sentenced yesterday by United States District Judge Vincent Briccetti.
U.S. Attorney Berman also announced the return of an indictment charging VANIA MAY BELL, MAY’s daughter and former comptroller of ECP, with participating in the conspiracy to defraud certain investment advisory clients. She was arraigned this afternoon before U.S. District Court Judge Nelson S. Roman.
U.S. Attorney Geoffrey S. Berman said: “For more than two decades, May conceived and orchestrated a multimillion-dollar Ponzi scheme. His conduct was marked by extreme cunning, ruthlessness, and utter disregard for the well-being of his victims, including aging couples, close friends, relatives, and an employment pension plan.”
At the sentencing hearing, Judge Briccetti said that MAY is “a fraud and a thief,” and that his conduct was “appalling, reprehensible, and evil.”
According to the allegations in the Information to which MAY pled guilty, court filings, statements made in court, and the Indictment charging BELL[1]:
Since 1982, MAY was the president of ECP and provided financial advisory services to numerous clients. Since 1994, MAY was a registered representative of a broker dealer (“Broker Dealer-1”). In its role as a broker dealer, Broker Dealer-1 facilitated the buying and selling of securities for clients of Broker Dealer-1’s registered representatives, including clients of MAY. To that end, Broker Dealer-1 and associated clearing firms maintained securities accounts for ECP’s clients and, through those accounts, held ECP’s clients’ money, executed their securities trades, produced account statements reflecting activity in the clients’ accounts, and forwarded these account statements to ECP’s clients.
In order to obtain money from the Victims’ securities accounts with Broker Dealer-1, MAY advised the Victims, among other things, that they should use money from those accounts to have ECP, rather than Broker Dealer-1, purchase bonds on their behalf. He further represented that by purchasing bonds through ECP directly, the Victims could avoid transaction fees. Because MAY lacked the authority to withdraw money directly from the Victims’ accounts with Broker Dealer-1, he persuaded the Victims to withdraw the money themselves and to forward that money to an ECP “custodial” account (the “ECP Custodial Account”), so that he could use the money to purchase bonds on their behalf.
With the assistance of BELL, MAY guided the Victims, first, to withdraw their money from their Broker Dealer-1 accounts, and second, to send that money to the ECP Custodial Account by wire transfer or check. At times, MAY falsely represented that the funds being withdrawn from Victims’ Broker Dealer-1 accounts were the proceeds of prior bond purchases MAY had made. After the Victims sent their money to the ECP Custodial Account, MAY did not use the money to purchase bonds. Instead, MAY and BELL spent the money on business expenses, personal expenses, and to make payments to certain Victims in order to perpetuate the scheme and conceal the fraud.
Specifically, in some cases, MAY used Victims’ funds to make purported bond interest payments to other Victims. In other cases, MAY used Victims’ funds to make payments to other Victims who wished to withdraw funds from their accounts. MAY and BELL also created phony “consolidated” account statements that they issued through ECP and sent to the Victims. These “consolidated” account statements purported to reflect the Victims’ total portfolio balances and included the names of bonds MAY falsely represented that he purchased for the Victims and the amounts of interest the Victims were supposedly earning on the bonds. In order to create the phony consolidated account statements, MAY provided BELL with bond names and false interest earnings, and BELL created ECP computerized account statements and distributed them to the Victims.
To keep track of the money that the co-conspirators were taking from the Victims, BELL processed the Victims’ payments for the purported bonds, entered them in a computerized accounting program, and, through that program, kept track of how MAY and BELL received and spent the Victims’ stolen money. In this way, from the late 1990’s through March 9, 2018, MAY and BELL induced Victims to forward them more than $11,400,000.
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In addition to his prison term, MAY, 78, of Orangeburg, New York, was ordered to serve three years of supervised release, pay $8,041,233 in restitution, and forfeit $11,452,185.
BELL, 54, of Montvale, New Jersey, is charged with one count each of conspiracy to commit wire fraud and wire fraud. Each count carries a maximum sentence of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense. 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.
Mr. Berman praised the outstanding investigative work of the U.S. Postal Inspection Service, Special Agents of the United States Attorney’s Office, and the Federal Bureau of Investigation. He also thanked the Securities and Exchange Commission, which initiated civil proceedings against MAY and BELL, for its assistance.
The criminal case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys Margery B. Feinzig and Vlad Vainberg are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment charging BELL and the descriptions of the Indictment constitute only allegations, and every fact described should be treated as an allegation.
Former Philadelphia Sheriff John Green Sentenced to Five Years in PrisonRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that former Philadelphia Sheriff John Green, 72, of Philadelphia, Pennsylvania, was sentenced today to sixty months’ imprisonment, one year supervised release, forfeiture of $76,581, and a $17,500 fine by United States District Court Judge Wendy Beetlestone.
Green pled guilty in April 2019 to conspiring to defraud the citizens of Philadelphia while serving as Sheriff by receiving and accepting a stream of hidden personal benefits from co-defendant James Davis, in exchange for giving Davis millions of dollars of business from the Philadelphia Sheriff’s Office.
From 2002 to 2011, Green accepted bribes and kickbacks from Davis totaling over $675,000. The bribes and kickbacks included: (1) a move-in ready home in Philadelphia for Green and his new wife in 2003; (2) employment of Green’s wife as a subcontractor when she started a business in 2004, paying her over $89,000; (3) facilitation of over $65,000 in hidden campaign contributions to Green’s 2007 re-election campaign; (4) payment of over $148,000 in advertising for Green’s 2007 re-election campaign and falsely reporting the payments on the campaign finance reports; and (5) over $320,000 in payments to Green to assist him with the purchase of his retirement home in Florida in 2010.
In exchange, Green gave his Davis over $35 million in business at the Philadelphia Sheriff’s Office through the sale of homes at Sheriff’s sales. Green left office at the end of 2010, over one year before the expiration of his term, after the City of Philadelphia, Office of the Controller, issued an audit report in October 2010 expressing concern about potential irregularities with respect to the funds from Sheriff’s sales held by the Philadelphia Sheriff’s Office. The Controller’s Office hired Deloitte Financial Advisory Services, which conducted a forensic investigation of the Sheriff’s Office. Deloitte issued a final report in October 2011 that revealed the extent of the hidden business that Green had given to Davis and provided its findings to the government.
“Public officials hold office to serve the public good, not to line their own pockets” said U.S. Attorney McSwain. “When public servants abuse their authority and flout the rule of law, they disgrace themselves and the offices they hold. That is what Green did here and he is now paying the price. Every public official should be on notice after today’s sentence: federal law enforcement is watching and we will hold you accountable to the law and to the public that you are supposed to serve.”
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigation, and the City of Philadelphia Office of Inspector General, and is being prosecuted by Assistant United States Attorneys Sarah L. Grieb and Christopher Diviny, and U.S. Department of Justice Trial Attorney Jennifer A. Clarke.
Former Lake City Ammunition Plant employee sentenced for fraud schemeRead the Press Release
KANSAS CITY, Mo. – A Buckner, Missouri, woman was sentenced in federal court today for a more than $160,000 embezzlement scheme while employed at the Lake City Ammunition Plant in Independence, Mo.
Brooke Brooks, 37, was sentenced by U.S. District Judge Howard F. Sachs to 18 months in federal prison without parole. The court also ordered Brooks to pay $163,493 in restitution.
On Jan. 18, 2019, Brooks pleaded guilty to stealing government property.
Lake City is a U.S. Army facility previously operated by Orbital Alliance Tech System, a defense system contractor. Brooks was employed by a company called Fastenal, a subcontractor for Orbital Alliance Tech System engaged in daily operations of the Lake City plant. Brooks was responsible for ordering materials and equipment for the plant.
Brooks admitted that, in her role with Fastenal, she over-ordered equipment – such as power washers, electric drills, and electric saws – paid for by Orbital Alliance Tech System. Brooks re-sold the excess equipment on Craigslist, Ebay, and to other employees working at Lake City. Brooks advertised these items to employees working at the Lake City plant by claiming that it was part of a Fastenal tool sale, where on occasion, the company ordered an excess of certain items and was selling them at discounted prices to reduce inventory. Because the items cost Brooks nothing, and were being sold at prices well under retail, she had no difficulty selling the items.
Brooks engaged in a variety of fraudulent practices to alter invoices for plant equipment, such as changing the description of products, deleting invoices, combining part numbers, and over-ordering. The federal government paid the amount reflected on the doctored invoice, but Brooks only delivered the actual quantity ordered by Orbital Alliance Tech System, thus leaving her with a surplus that she sold on the side.
Brooks fraud scheme resulted in a loss of $163,493. Her scheme was discovered when the plant’s security manager received a complaint from another Lake City employee that he hadn’t received the equipment he ordered from Brooks. The security manager then began an investigation and contacted the FBI.
This case was prosecuted by Assistant U.S. Attorney Brent Venneman. It was investigated by the FBI.
Former FCI-Berlin Chaplain Sentenced to 40 Months for Accepting Bribes to Smuggle Drugs into PrisonRead the Press Release
CONCORD - Joseph Buenviaje, 53, of Berlin, was sentenced to serve 40 months for accepting bribes from inmates and providing contraband in prison, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, Buenviaje began working as a chaplain at the Federal Correctional Institution in Berlin, New Hampshire in 2015. From April of 2018 until he was caught in November of 2018, Buenviaje smuggled drugs (including Suboxone, synthetic cannabinoids and marijuana) cellular telephones, tobacco, and other contraband into the prison in exchange for bribe payments. When interviewed by investigators in November 2018, Buenviaje admitted that he had been smuggling drugs and other contraband into the prison once or twice per week. In exchange, Buenviaje received over $52,000 in bribe payments.
Buenviaje received the contraband and some of the bribe payments by mail addressed to his ministry. Buenviaje received Suboxone—an opioid ordinarily prescribed to treat drug addiction—in its original packaging. Upon receipt, Buenviaje repackaged the drug in cellophane for distribution in the prison. Buenviaje also received notebooks with drug-soaked pages that he smuggled into the prison. After smuggling items he received into the prison, Buenviaje placed the contraband in a cabinet in the prison chapel where inmates would later retrieve the items.
In November 2018, on the day of his arrest, investigators found 111 Suboxone strips, some of which were in Buenviaje’s car and some of which were in Buenviaje’s chaplain office repackaged for distribution. Investigators also located multiple notebooks that Buenviaje had hidden in a cabinet in his office for an inmate. Some pages in the notebooks had been soaked with unlawful synthetic cannabinoids, specifically FUB-AMB and 5F-ADB. These drugs are known to cause serious side effects, including death.
Buenviaje previously pleaded guilty on April 30, 2019.
“This defendant’s conduct constituted a massive breach of trust,” said U.S. Attorney Murray. “The defendant sought to profit from his position as a prison chaplain by smuggling drugs and other contraband into a federal prison. These reprehensible acts endangered the safety of the inmates and staff at FCI-Berlin. The defendant deserves the substantial prison sentence that he received for his unlawful and unethical conduct.”
“While serving in his capacity as a chaplain, Buenviaje was supposed to provide religious counseling to inmates,” said Guido Modano, Special Agent in Charge, Department of Justice Office of the Inspector General, New York Field Office. “Instead, he devised a self-serving scheme to collect bribes in exchange for smuggling contraband, including dangerous drugs, into the prison, and he also utilized the prison chapel to carry out his scheme. He will fittingly serve time for his actions, which placed inmates, correctional officers, and other prison staff in harm’s way, and threatened the overall security of the prison facility.”
This matter was investigated by the U.S. Department of Justice Office of the Inspector General and FCI-Berlin’s Office of the Special Investigative Supervisor. The case was prosecuted by Special Assistant U.S. Attorney Matthew T. Hunter and Assistant U.S. Attorney Anna Z. Krasinski.
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Former Chief Executive Officer and Chief Financial Officer of Publicly Traded Company Charged with Accounting FraudRead the Press Release
Audrey Strauss, Attorney for the United States acting under authority conferred by 28 U.S.C. § 515 for the Southern District of New York, and Philip R. Bartlett, Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), announced today the unsealing of an Indictment in Manhattan federal court charging MICHAEL CARROLL and MICHAEL PAPPAGALLO, the respective former chief executive officer and chief financial officer of Brixmor Property Group (“Brixmor”), a publicly traded real estate investment trust (“REIT”), with fraud. Specifically, CARROLL and PAPPAGALLO were charged with securities fraud in connection with their participation in a scheme to fraudulently “smooth” a key metric reported in Brixmor’s public filings and used by the investing public to evaluate the financial performance of publicly traded REITs such as Brixmor. The case is assigned to U.S. District Judge Colleen McMahon.
MICHAEL CARROLL and MICHAEL PAPPAGALLO are expected to be presented later today before Judge McMahon in Manhattan federal court.
Deputy U.S. Attorney Audrey Strauss said: “As alleged, the most senior executives at Brixmor engaged in a years-long scheme to cook the books and deceive the investing public. When executives allegedly lie to the investing public about their company’s performance and thereby harm the integrity of the market, they must be held accountable.”
USPIS Inspector-in-Charge Philip R. Bartlett said: “By devising schemes to make Brixmor more appealing to the investing public, Carroll and Pappagallo not only committed criminal acts, their actions led them down a path of distrust from shareholders. The investing public depends on the veracity of information released by publicly traded companies and the U.S. Postal Inspection Service is devoted in protecting the integrity of this information.”
According to the allegations contained in the Indictment[1] unsealed today in Manhattan federal court and statements made in related court filings and proceedings:
Brixmor is a publicly-traded REIT headquartered in New York, New York. At all relevant times, Brixmor owned and operated hundreds of commercial shopping centers located in cities around the United States. From the time of its initial public offering in 2013 until 2015, MICHAEL CARROLL served as Brixmor’s chief executive officer, MICHAEL PAPPAGALLO served as Brixmor’s chief financial officer, Steven Splain served as Brixmor’s chief accounting officer, and Michael Mortimer served as a senior vice president for management accounting. As a publicly traded company, Brixmor was required to file, and filed, quarterly and annual reports with the U.S. Securities and Exchange Commission (the “SEC”) that were also available to the investing public. These reports contained important information regarding Brixmor’s financial performance for the relevant reporting period. As the respective CEO and CFO of the company, CARROLL and PAPPAGALLO were required to sign these reports and file certifications entitled “Certification of Periodic Report Under Section 302 of the Sarbanes-Oxley Act of 2002” that attested to, among other things, the veracity of Brixmor’s SEC filings. Brixmor, like many public companies, also filed, and otherwise released to the investing public, supplemental documents along with their periodic filings that provided additional representations regarding Brixmor’s performance and financial condition.
In addition to financial metrics governed by Generally Accepted Accounting Principles (“GAAP”), Brixmor, like many REITs, reported a non-GAAP metric related to its financial performance known as Same Store Net Operating Income (“SS-NOI”). SS-NOI measures the amount of income derived from a set group of properties (the “Property Pool”). In addition to SS-NOI, Brixmor also reported a metric that tracked the increase (or decrease) in SS-NOI (“SS-NOI Growth”) for a set group of properties between one period and the same period in the prior year. More specifically, SS-NOI Growth is derived from comparing SS-NOI in a particular reporting period (the “Current Period”) with SS-NOI in a past period, for example, the same quarter in the prior year, (the “Comparison Period”) for the same Property Pool. SS-NOI Growth was a key performance metric utilized by investors when assessing investments in publicly traded REITs such as Brixmor. Because of the importance of this metric, Brixmor also provided forecasts to the investing public on what it expected SS-NOI Growth to be for each annual reporting period, often narrowing that guidance over the course of a given year.
From 2013 through 2015, CARROLL and PAPPAGALLO regularly touted Brixmor’s consistent SS-NOI Growth from quarter to quarter and understood that the investing public paid significant attention to this metric. For example, on August 6, 2014, CARROLL stated during a quarterly earnings call for the second quarter of 2014 that Brixmor had “a steady state portfolio with a large same property pool that is delivering consistent organic growth. . . . As I said, we are consistent, transparent and easy to understand.” Similarly, on September 17, 2015, PAPPAGALLO spoke publicly at an industry conference in New York, New York, stating that “[S]ame-property NOI, which is certainly a metric which is looked at very, very carefully by REIT investors, it’s been at or above 3.4% for 12 quarters. Very consistent same-property NOI growth coming from our primary drivers.” CARROLL and PAPPAGALLO also understood that the investing public paid careful attention to whether Brixmor’s SS-NOI Growth fell within previously forecasted guidance for the year. For every quarter between the fourth quarter of 2013 and the third quarter of 2015, Brixmor’s reported SS-NOI that fell squarely within its forecasted guidance for the year.
In reality, however, Brixmor’s SS-NOI Growth was not as steady and consistent quarter over quarter as represented to the public, and instead fluctuated significantly – often outside the bounds of what Brixmor’s guidance was for the relevant year. From 2013 through 2015, however, CARROLL, PAPPAGALLO, Splain, and Mortimer engaged in a scheme to hide that volatility from the investing public and instead report SS-NOI Growth numbers each quarter that showed even growth and that always fell in line within the annual guidance. Rather than report the true results of their operations, CARROLL and PAPPAGALLO dictated where Brixmor’s reported SS-NOI Growth should land each quarter, and others, including Splain and Mortimer, carried out the necessary manipulation to reach those results.
CARROLL, PAPPAGALLO, Splain, and Mortimer engaged in this manipulation of SS-NOI Growth through three primary means. First, in quarters in which Brixmor generated more than enough income to meet the bottom, or in some cases middle, of its guidance range, it illicitly “stored” reportable income instead of immediately recognizing it, a deceptive practice often referred to as “cookie jar” accounting. In fact, certain Brixmor employees frequently referred to a particular account that was used to hold such income as the “cookie jar.” Brixmor employees then utilized that income in later quarters as necessary to inflate SS-NOI Growth in order to report the desired steady and smooth SS-NOI Growth to the investing public. For example, on April 6, 2015, PAPPAGALLO emailed Splain, Mortimer, and others to schedule a meeting “regarding same property NOI planning” the “objective” of which was “to try to make decisions on 1Q number – push a little or squirrel away stuff for 2Q & 3Q.”
Second, Brixmor reported in all of its public filings that it did not take lease termination income (“LSI”) into account when calculating SS-NOI. LSI is money that a tenant pays as a lump sum payment upon the early termination of a lease. Notwithstanding these representations, CARROLL, PAPPAGALLO, Splain, and Mortimer included some portion of LSI within SS-NOI when doing so helped show steady SS-NOI Growth or to meet guidance.
Third, CARROLL, PAPPAGALLO, Splain, and Mortimer at times removed payments that had been included in SS-NOI in a prior Comparison Period in order to the boost SS-NOI Growth for the current period. Because SS-NOI Growth effectively measures the SS-NOI change from one period to another, retroactively reducing the SS-NOI for a prior Comparison Period has the effect of creating a bigger spread to SS-NOI in the current period, thereby increasing the SS-NOI Growth metric for the current period. For example, after the close of the third quarter of 2015 but before reporting SS-NOI Growth for that period, CARROLL instructed certain Brixmor employees as to what SS-NOI Growth figures he wanted the company to show for the third and fourth quarters of the year. CARROLL, PAPPAGALLO, Splain, Mortimer, and others then went to work manipulating Brixmor’s SS-NOI Growth number for the third quarter, including by making multiple changes to the Comparison Period, in order to report the SS-NOI Growth number that had been pre-determined by CARROLL – a number that showed consistent growth over the year and was within guidance. Toward the end of these discussions, on October 6, 2015, PAPPAGALLO sent an email to Splain and Mortimer, stating “[Splain] and [Mortimer] LLC Bratwurst at its Finest,” to which Mortimer responded with an image of a man holding a batch of sausage.
As a result of these manipulations, Brixmor reported steady quarter-by-quarter SS-NOI Growth between 2013 and 2015 that consistently fell within the company’s public annual guidance. The below chart shows Brixmor’s reported SS-NOI Growth as compared to reported guidance:
The below chart shows the actual SS-NOI Growth figures absent manipulation:
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MICHAEL CARROLL, 51, of New York, New York, and MICHAEL PAPPAGALLO, 60, of Trumbull, Connecticut, were each charged in the Indictment with conspiracy to commit securities fraud and other offenses (Count One), securities fraud (Count Two), making false statements in filings with the SEC (Counts Three and Four); and filing false certifications (Counts Five and Six). The securities fraud, false filings charges, and false certification charges each carry a maximum prison term of 20 years. The charge of conspiracy carries a maximum prison term of five years.
Steven Splain, 57, of Cheshire, Connecticut, pled guilty on July 16, 2019, before United States District Judge Vernon S. Broderick to one count of conspiracy to commit securities fraud and to make false filings with the SEC, and one count of securities fraud. The conspiracy charge carries a maximum prison term of five years and the securities fraud charge carries a maximum prison term of 20 years.
Michael Mortimer, 49, of Yardley, Pennsylvania, pled guilty on July 10, 2019, before United States District Judge Valerie E. Caproni to one count of conspiracy to commit securities fraud and to make false filings with the SEC, and one count of securities fraud. The conspiracy charge carries a maximum prison term of five years and the securities fraud charge carries a maximum prison term of 20 years.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.
Ms. Strauss praised the investigative work of the U.S. Postal Inspection Service, and thanked the Federal Bureau of Investigation for its assistance. She also thanked the Securities and Exchange Commission, which has brought a civil action against the defendants.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Martin S. Bell, Daniel M. Tracer, and Rebecca Mermelstein are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment constitute only allegations, and every fact described should be treated as an allegation.
Five-Time Felon Sentenced to 10 Years in Federal Prison for Illegal Possession of AmmunitionRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Christopher Kofi Noble, 41, of Anchorage, was sentenced yesterday by Chief U.S. District Judge Timothy M. Burgess to serve 10 years in federal prison for being a felon in possession of ammunition. Noble was linked to five separate shootings in Anchorage during a three-month period of time. 10 years in prison is the maximum sentence for this crime.
According to court documents, Noble was originally charged with five counts of felon in possession of ammunition, representing five separate events where different types of .45 caliber ammunition were used from the same firearm. The Anchorage Police Department (APD) used the National Integrated Ballistic Information Network (NIBIN) in order to link the shell casings from the five shootings to the same firearm. The NIBIN system is a database that catalogues shell casings found at crime scenes and makes comparisons to other shell casings at other crime scenes. It allows the Anchorage Police to compare shell casings and determine if the same firearm was used on different occasions during different shootings.
The shootings where Noble possessed the firearm were an April 3, 2018, shooting where he shot at a female that owed him money; an April 18, 2018, shooting where he shot at an apartment building; a May 30, 2018, shooting where he shot at a man he had a verbal argument with; and a June 14, 2018, shooting where he handed a firearm to another man who shot and killed an individual. After a May 18, 2018, report of gunshots near the Sullivan Arena, APD found .45 caliber shell casings on a trail behind the Arena that matched the .45 caliber shell casings from the other four shootings. This type of ammunition or shell casings were found at each scene that all traced back to being shot from the same firearm.
Noble has five prior felony convictions out of Illinois, Indiana, and Alaska for crimes including assault, eluding law enforcement, and possession of cocaine. As someone convicted of a felony offense, Noble was prohibited from possessing firearms and ammunition.
“This case highlights the use of an important new technology – NIBIN,” said U.S. Attorney Schroder. “The U.S Attorney’s Office and our law enforcement partners, in this case ATF and APD, will use every tool at our disposal to bring dangerous armed criminals to justice.”
“NIBIN has proven to be an invaluable tool in the fight against crime,” said Anchorage Police Captain Josh Nolder, Commander of the Detective Division. “Thanks to NIBIN, we can now link seemingly random cases to one firearm and bring the individual behind that firearm to justice.”
“ATF is committed to working with our partners across the state to protect Alaskans from violent offenders like Mr. Noble, whose contempt for law and order led to his continued criminal use of firearms, placing the community at risk,” said ATF Seattle Field Division Special Agent in Charge Darek Pleasants. “Sentences like this one serve as a deterrent to others while removing a repeat violent offender from our streets.”
At the sentencing hearing, Judge Burgess noted that Noble has 28 prior criminal convictions, and had over 29 other arrests. Judge Burgess was concerned about protecting the public from the defendant due to his history of violent and assaultive behavior and the serious nature of the defendant’s conduct.
The Anchorage Police Department (APD) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Kelly Cavanaugh.
This case was made possible by investigative leads generated from ATF’s National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crime involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
Federal jury convicts northeast Louisiana couple for armed bank robbery spreeRead the Press Release
MONROE, La. – United States Attorney David C. Joseph announced today that a federal jury in Monroe convicted two northeast Louisiana residents for robbing three financial institutions at gunpoint and for multiple firearms violations. The verdict came in this afternoon following a four-day trial, which was presided over by U.S. District Judge Terry A. Doughty.
Lakendria Nicole Goings, 35, of Monroe, and David Ray Johnson, 36, of Winnsboro, Louisiana, were convicted of all counts submitted to the jury – two counts of bank robbery, one count of credit union robbery, and three counts of using, carrying, brandishing and discharging a firearm during a crime of violence. In addition, Johnson was found guilty of two counts of convicted felon in possession of a firearm.
“Today’s verdict brings justice for the victims of these armed robberies and reinforces my office’s resolve to assist those Louisiana communities that suffer under the menace of violent crime,” said David C. Joseph, U.S. Attorney for the Western District of Louisiana. “We cannot undo the terror these defendants caused during their rampage, but we can take solace that they have been held accountable by a jury of their peers, and will be spending substantial time in federal prison as a result of their crimes. I am thankful for the extraordinary efforts and teamwork of the federal and local law enforcement officers that investigated these crimes and those Franklin Parish Sheriff’s deputies who put their lives on the line to stop the defendants before anyone was hurt.”
Evidence presented at trial showed that Goings and Johnson’s spree began when they robbed the Guaranty Bank branch in Epps, Louisiana on November 10, 2017. The defendants entered the bank wearing hoodies to obscure their faces, and waiving semi-automatic handguns in the direction of customers and employees. Johnson stood at the entrance door acting as lookout and rear guard, while Goings directed the gun at the face of a bank teller, ordering the bank teller to fill a bag with money. The robbers left Guaranty Bank with approximately $17,307. After the robbery, Epps Police Department officers and West Carroll Parish Sheriff’s detectives found a cloth work glove worn by Johnson during the robbery, several rolls of coins, and a .40 caliber semi-automatic handgun, in a vacant lot close to the bank. DNA from the glove matched David Ray Johnson’s DNA, which was in a North Carolina DNA database as a result of Johnson’s 2012 felony conviction for financial card theft.
The second and third robberies occurred on November 27, 2017 (Barksdale Federal Credit Union in Cotton Valley, Louisiana), and December 18, 2017 (Winnsboro State Bank in Gilbert, Louisiana). On both occasions the defendants entered dressed in black, bulky hooded clothing with dark fabric covering their faces, waiving semi-automatic firearms at bank customers and employees and demanding money from the tellers. They left Barksdale FCU with $12,756, and Winnsboro State Bank with $28,447.
After the robbers left Winnsboro State Bank with a duffel bag full of money, Franklin Parish Sheriff’s deputies located the getaway car and began a high-speed chase with the defendants’ Toyota Sequoia, sometimes exceeding 100 mph. During the chase, Johnson, who was driving, pointed a semi-automatic handgun out of the driver’s window and fired several times at the deputies. The vehicle later crashed in a residential area in Winnsboro, Louisiana, and the defendants surrendered to authorities. Johnson exited the vehicle with a .40 caliber pistol in his hand, loaded with a round in the chamber and four live rounds in the magazine, which dropped to the ground as he submitted to arrest. This .40 caliber semi-automatic pistol was of the same make, model and caliber handgun that investigators found in the vacant lot near the Guaranty Bank robbery in Epps.
In the Sequoia, deputies found a duffel bag with $28,477 in cash, black clothing, hooded jackets, black fabric consistent with the masks worn during the robberies, and paper coin wrappers bearing handwritten account numbers belonging to Barksdale FCU customers. Officers also found a Double Star Brand, Model Star 15, .223-caliber semi-automatic AR-type rifle, which Johnson had just brandished in the Winnsboro State Bank robbery, loaded with a live round in the chamber and 27 rounds in a detachable magazine.
Goings and Johnson face seven years in prison for each count of using of a weapon during a crime of violence and 25 years in prison for each count of bank robbery. Johnson faces up to 10 years for discharging the weapon during the high speed chase, and he also faces up to 10 years in prison for the convicted felon in possession of a firearm counts. Judge Doughty set the sentencing date for David Ray Johnson on November 6, 2019, and for Lakendria Nicole Goings on November 7, 2019.
The FBI, ATF, Louisiana State Police, Franklin Parish Sheriff’s Office, East Carroll Parish Sheriff’s Office, Webster Parish Sheriff’s Office, Epps Police Department, Cotton Valley Police Department, and Winnsboro Police Department investigated the case, and the federal prosecution was greatly aided by District Attorney Mack Lancaster’s office, Fifth Judicial District of Louisiana. Assistant U.S. Attorneys J. Aaron Crawford and Brandon B. Brown prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. Project Safe Neighborhoods 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.
Federal Jury Convicts Marilyn Yvette Cook on Fraud ChargesRead the Press Release
[KNOXVILLE, TN] - Following a two-day trial in United States District Court, Knoxville, Tennessee, a jury returned a verdict of guilty, convicting Marilyn Yvette Cook (also known as Marilyn Yvette Powell), of Alcoa, of presenting a fictitious obligation to a financial institution and presenting a false claim to the United States.
Sentencing is set for December 3, 2019, at 10:00 a.m., in United States District Court in Knoxville, Tennessee. Cook faces a sentence of up to 25 years in prison and other possible penalties.
At trial, the jury heard testimony that, in October of 2017, Cook attempted to deposit a false “bill of exchange,” with a face value of $1 million, to the Regions Bank branch in Alcoa. In support of the “bill of exchange,” which had the appearance of a bank check, Cook presented fictitious documents purporting to show that she possessed Treasury bonds worth more than $100 billion. The jury also heard testimony that, in January of 2017, Cook filed a fraudulent federal tax return through which she sought a tax refund of more than $251,000. In addition, the jury heard testimony that Cook had been convicted in 2006 for multiple counts of defrauding the United States through false tax returns on which she fraudulently used the personal information of indigent individuals who purportedly received assistance from Cook’s faith-based organization, Sheep Ministries, Inc.
“The United States Attorney’s Office for the Eastern District of Tennessee applauds the jury’s verdict in this case against an individual seeking to defraud a bank by depositing non-existent funds into a bank account, and enriching herself at taxpayers’ expense by filing a false income tax return,” said U.S. Attorney J. Douglas Overbey. “Our office will continue to prosecute those who attempt to pass off such fraudulent documents in order to enrich themselves at the expense of others.”
Law enforcement agencies participating in the joint investigation which led to the indictment and subsequent conviction of Marilyn Cook included the U.S. Department of Treasury, Office of Inspector General, the Internal Revenue Service, U.S. Secret Service, and the Alcoa Police Department. Assistant U.S. Attorneys Frank M. Dale, Jr. and Jennifer Kolman represented the United States at trial.
Fairfield, Ohio Man Was Sentenced on Child Pornography ChargesRead the Press Release
A Fairfield, Ohio man was sentenced yesterday to 250 months’ imprisonment on charges of production of child pornography, announced United States Attorney Matthew Schneider.
Schneider was joined in the announcement by Acting Special Agent in Charge Jeffrey Downey, Federal Bureau of Investigation, Detroit Division.
Sentenced was James Coy Whitaker, Jr., 36.
According to court records, beginning in 2013 and continuing to April 2017, Whitaker enticed and persuaded a minor female to produce images and live stream videos of herself engaging in sexually explicit conduct. Whitaker met the minor female in an online social media chat room and conned the victim into sending him a nude image of herself, which he then used to threaten violence and embarrassment if she did not continue to send sexually explicit photos and videos of herself. This conduct began when the female victim was just 12 years old.
“The images sent to Whitaker are not merely pictures but are a permanent record of the sexual abuse and exploitation of a child,” stated United States Attorney Schneider. “I commend the work of the FBI and Michigan State Police Internet Crimes Against Children Task Force for their dedication to investigating crimes against children.”
This case was investigated by special agents with the FBI and the Michigan State Police Internet Crimes Against Children Task Force, It was prosecuted by Assistant United States Attorneys Christopher Rawsthorne and Ann Nee.
Eight People Arrested on Drug Distribution and Weapons Charges in North MississippiRead the Press Release
Tupelo, Miss. – A total of eight individuals are behind bars today following their arrest by federal, state and local law enforcement officers on federal drug trafficking and weapons charges in North East Mississippi. The FBI together with the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Attorney’s Office and Tupelo Police Department announced that the arrests were made on Tuesday and Wednesday following an extensive multi-year, multi-agency investigation.
The eight individuals currently in custody on federal drug trafficking charges include:
- Jeremy Mairidith, age 38, of Tupelo;
- Eiko T. Jones, age 42, of Waukegun, Illinois;
- Fernando Gonzalez, age 24, of Turlock, California;
- Stefanie K. Johnson, age 30, of Tupelo;
- Dmitri R. Kimble, age 35, of Atlanta, Georgia;
- Samuel Wilson, III, age 30, of Shannon;
- Desmonya Lewis, age 29, of Saltillo;
- Andraea Stovall, age 36, of Corinth.
In addition to drug trafficking charges, Mairidith, Johnson, and Wilson all face federal firearms charges.
Mairidith, Jones, and Gonzalez were first arrested on state drug trafficking charges on May 18, 2019, and have been held in custody since their arrest. On July 23, 2019, Mairidith first appeared in court on related federal drug trafficking charges. Mairidith appeared in court with his defense counsel on Monday for arraignment and a detention hearing on a federal indictment alleging that he was the head of a drug trafficking organization responsible for distributing methamphetamine and marijuana for multiple years in North Mississippi. After hearing testimony, U.S. Magistrate Judge Roy Percy ordered that Mairidith be detained without bond pending trial.
Jones and Gonzalez are scheduled to make their first appearance on the federal indictment on August 19. The remaining subjects are scheduled to appear on the indictment before a United States Magistrate Judge in the Northern District on Mississippi later this week. In addition, law enforcement officials indicated today that they expect additional arrests in this case in the near future.
The case was investigated by the FBI Jackson Division’s Oxford Resident Agency and the Bureau of Alcohol, Tobacco, Firearms and Explosives as a part of the Organized Crime Drug Enforcement Task Force (OCDETF) and Project Safe Neighborhoods programs, in partnership with state and local law enforcement. Agencies assisting with the investigation were the Tupelo Police Department, Lee County Sheriff’s Office, Corinth Police Department, Alcorn County Sheriff’s Office, United States Attorney’s Office for the Northern District of Mississippi, Mississippi Highway Patrol, Mississippi Bureau of Narcotics, North Mississippi Narcotics Unit, DEA, United States Postal Inspection Service, Mississippi Department of Corrections and the United States Marshals Service.
Following the arrests, Tupelo Police Chief Bart Aguirre emphasized the importance of this investigation, and praised the joint law enforcement efforts. “The combination of illegal narcotics and illegal weapons leads to violence in our communities. Tupelo Police Officers are constantly working to break this cycle of violence and a key part of our strategy is targeting these dealers who prey on our citizens,” remarked Aguirre. “I am proud of the men and women of our department who put themselves at risk on a daily basis pursuing individuals who engage in narcotics and weapons related crimes. We at TPD are also honored to work with other partner agencies at the local, state and federal level. It is only through these partnerships that we can be successful.”
Like Chief Aguirre, representatives from ATF reiterated their agency’s commitment to apprehending armed individuals who commit crimes in North Mississippi. “ATF, along with our federal, state, and local law enforcement partners will continue to focus our efforts on removing armed violent criminals from our streets,” said ATF New Orleans Field Division Assistant Special Agent in Charge William McCrary. "ATF and our partners remain committed to pursuing and bringing to justice those who seek to disrupt communities and harm law abiding citizens.”
The FBI likewise indicated its commitment to coordinated efforts like the instant one. FBI Special Agent in Charge Michelle A. Sutphin remarked: “The FBI’s commitment to our law enforcement partnerships and to the community continues to be at the forefront of our mission to keep our neighborhoods safe.”
U.S. Attorney William C. Lamar praised all of the agencies involved in the operation and the law enforcement initiatives that helped make this joint investigation possible. “As a part of Project Safe Neighborhoods and the OCDETF program, we are working closely with local, state and federal partners to apprehend violent armed offenders and to insure that our communities and streets are safer. We are committed to doing everything in our power to facilitate joint investigations and enforcement efforts like the one in this case so that those who choose to deal drugs or victimize others will be held accountable for their actions.”
The case is being prosecuted by AUSA Chad Doleac.
All charges are merely an accusation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Eagle Point Drug Trafficker Sentenced to 120 Months in Federal Prison for Distributing MethamphetamineRead the Press Release
PORTLAND, Ore.—Rodrigo Caro-Gonzalez, 35, a noted drug trafficker residing in Eagle Point, Oregon, was sentenced today to 120 months in federal prison and five years’ supervised release for conspiring to distribute methamphetamine and illegally possessing a firearm.
According to court documents, the U.S. Drug Enforcement Administration (DEA) began investigating Caro-Gonzalez in May 2016. A few months later, based on a tip, the Oregon State Police (OSP) stopped a car driven by one of Caro-Gonzalez’s associates carrying more than 30 pounds of methamphetamine. The investigation of Caro-Gonzalez continued when, in March 2017, a person believed to have obtained methamphetamine from Caro-Gonzalez was stopped with approximately 16 pounds of methamphetamine.
Later in March 2017, a confidential source met with Caro-Gonzalez and a third associate. The group arranged a drug deal. The deal never occurred, but the associate was arrested a few days later with more than five pounds of methamphetamine. The DEA then executed a search warrant at Caro-Gonzalez’s Eagle Point residence and seized $9,585, an AK-style firearm, a thirty-round magazine, a pistol and ammunition. Caro-Gonzalez admitted to being in the U.S. illegally, making his possession of the weapons unlawful.
On April 2, 2019, Caro-Gonzalez pleaded guilty to one count each of conspiracy to distribute and possess with the intent to distribute methamphetamine and possessing a firearm as an illegal alien.
This case was investigated by DEA, the Springfield Police Department, INET and OSP and prosecuted by Jeffrey Sweet, Assistant U.S. Attorney for the District of Oregon.
The case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Dominican National Pleads Guilty to Identity TheftRead the Press Release
BOSTON – A Dominican national pleaded guilty yesterday in federal court in Boston to Social Security fraud and aggravated identity theft.
Alejandro Yoel Diaz Diaz, 28, a Dominican national formerly residing in Lawrence, pleaded guilty to one count of false representation of a Social Security number and one count of aggravated identity theft. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Nov. 1, 2019.
On Aug. 1, 2017, Diaz Diaz applied for a Massachusetts identification card using the name, date of birth and Social Security number of a Puerto Rican born United States citizen. At the time of his arrest in April 2019, Diaz Diaz was on probation out of Lawrence District Court for distribution of heroin in the United States citizen’s identity. Diaz Diaz was identified, among other things, from a fingerprint match with a Dominican Republic identification document issued to him and bearing his photo.
The charge of false representation of a Social Security number provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison to run consecutive to any other term of imprisonment imposed, one year of supervised release and a fine of $250,000. Diaz Diaz will also be subject to deportation proceedings upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. Assistant U.S. Attorney Lindsey E. Weinstein of Lelling’s Major Crimes Unit is prosecuting the case.
District Man Found Guilty of First-Degree Murder in 2015 Killing of Southwest ManRead the Press Release
WASHINGTON – Gary Proctor, 41, of Washington, D.C., was found guilty by a jury today of first-degree murder while armed, possession of a firearm during a crime of violence, unlawful possession of a firearm, and carrying a pistol without a license, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Proctor was found guilty following a trial in the Superior Court of the District of Columbia. The Honorable Danya Dayson scheduled sentencing for December 13, 2019. Proctor faces a potential sentence of life in prison without parole.
According to the government’s evidence, on July 27, 2015, at approximately 4:40 p.m., Proctor entered the residence of the victim, Jerome “Beanie” Diggs, at 1360 First Street, SW, and fired 8 shots, striking the decedent 7 times. The defendant ran out of the house, leaving the victim for dead. But decedent managed to pick up the phone and call his sister, telling her that their cousin, “Little Gary” Proctor, had just shot him. When his sister asked why he didn’t call for help, he stated that he did not think he was going to make it, and he wanted someone to know what happened to him. The sister hung up with Beanie and instantly called 911, where she relayed what Beanie had told her. Meanwhile, Beanie, still clinging to life, crawled out the back door of his home where he was spotted by several neighbors who also called for help. One of these neighbors heard Beanie state “Lil Gary” was the person who shot him. Diggs lost consciousness shortly thereafter and died later that day from his wounds. Proctor was arrested pursuant to a warrant the very next day and has been held in custody ever since.
In announcing the verdict, U.S. Attorney Liu and Chief Newsham commended the work of those investigating the case from the Metropolitan Police Department (MPD). They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Melissa Jackson, John Timmer and Chrisellen Kolb; Supervisory Victim/Witness Services Coordinator Katina Adams-Washington; Victim/Witness Services Coordinator La June Thames; Victim/Witness Program Specialist Lesley Slade; Supervisory Security Specialists Laverne Perry, Tanya Via, and Wanda Queen; Administrative Services Specialist Karen Lee-Putt; Supervisory Paralegal Sharon Newman; Paralegals Kelly Blakeney and Meridith McGarrity; Victim Advocate Marcia Rinker; Supervisory IT Specialist Leif Hickling; Information Technology Specialist Jeanie Latimore-Brown; Interns Jared Andre and Jennifer Kenel; and Investigative Analyst Zach McMenamin.
Finally, they commended the work of Assistant U.S. Attorneys Jeffrey Nestler, who investigated the case, and Gilead Light and Alicia Long, who prosecuted the case.
Convicted Felon Wanted for Aggravated Assault in Valdosta Is Sentenced for Gun Crime in Federal CourtRead the Press Release
ALBANY – A Valdosta man with a violent criminal history in that community was sentenced in federal court today after admitting he illegally possessed a firearm, announced Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. Kenneth Diamond Fountain, 28, of Valdosta, Georgia previously entered a guilty plea to one count of Possession of a Firearm by a Convicted Felon and was sentenced on August 1, 2019 by U.S. District Judge Louis Sands to 70 months in prison, plus three years supervised release. There is no parole in the federal system.
According to his signed guilty plea, on April 5, 2018, Mr. Fountain was apprehended inside a vehicle on College Street in Valdosta, wanted on two violent felony warrants in Lowndes County, Aggravated Assault with a Deadly Weapon and Possession of Firearm or Knife during the Commission or Attempt to Commit Certain Felonies. Mr. Fountain was in possession of a semi-automatic handgun, loaded with a round in the chamber and rounds in the magazine. A loose round was also in the pocket of a backpack and two additional rounds of 9 mm ammunition were found in the driver’s door. Mr. Fountain admitted to purchasing the handgun two weeks prior from a criminal associate. Mr. Fountain was previously convicted of Assault with a Deadly Weapon in Lowndes County Superior Court.
“This week alone, three convicted felons with violent criminal histories in the Valdosta area faced federal-level consequences for illegally possessing firearms,” said U.S. Attorney Charlie Peeler. “Removing deadly weapons from known dangerous players in the Valdosta community is a priority for law enforcement, and we will hold convicted felons accountable for illegally possessing firearms. I want to thank the Lowndes County Sherriff’s office and the FBI for their partnership.”
The case is being prosecuted 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.
The case was investigated by the Lowndes County Sheriff’s Office and Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Julia C. Bowen. Questions concerning this case can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Collin County Man Arrested for Sending Threatening Social Media TextsRead the Press Release
PLANO, Texas – A 23-year-old Richardson, Texas man has been arrested for federal violations in the Eastern District of Texas announced U.S. Attorney Joseph D. Brown and FBI Special Agent in Charge Matthew DeSarno.
Rahul Ramesh Joshi was arrested on August 1, 2019, pursuant to a criminal complaint issued by the U.S. District Court charging him with sending threatening communications to injure another, in interstate commerce. Joshi will make an initial appearance today in Plano.
According to information presented in court, in December 2018, a federal law enforcement agent began investigating a complaint from a female Snapchat user. She allegedly received threatening messages on different messaging apps from several different user that all seemed to be connected. Further investigation revealed multiple victims in different states all receiving similar threatening messages. Forensic analysis of the messages led investigators to the defendant and determined Joshi had lived in Michigan before attending the University of Texas and eventually moving to Richardson, Texas.
“These were extreme messages, and no one should have to put up with that kind of nonsense,” said United States Attorney Joseph D. Brown. “Your freedom of speech does not extend to the point that you can threaten and intimidate others. We will stop that kind of abusive behavior.”
“The victims in this case were subjected to daily harassment and lived in a constant state of fear,” said Matthew DeSarno, Special Agent in Charge of the FBI Dallas Field Office. “We want to send the message that individuals cannot use social media to anonymously target innocent victims. The FBI and its law enforcement partners will continue working together to identify these individuals and hold them accountable for their actions.”
If convicted, Joshi faces up to five years in federal prison.
This case is being investigated by the Federal Bureau of Investigation’s Dallas Field Office, University of Pittsburgh Police Department, University of Texas Police Department, and Wellesley Police Department in Massachusetts.
It is important to note that a complaint, arrest, or indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
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Cincinnati Man Sentenced to 6 Years in Prison for Possessing Firearm in Furtherance of Drug Trafficking OffenseRead the Press Release
CINCINNATI – Rodney Anderson, 35, of Cincinnati, was sentenced in U.S. District Court to 72 months in prison for possessing a firearm in furtherance of a drug trafficking offense.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Jonathan McPherson, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Cincinnati Police Chief Eliot K. Isaac, announced the sentence handed down today by U.S. District Judge Timothy S. Black.
According to court documents, in July 2018, Narcotics Unit investigators with the Cincinnati Police Department were working overtime targeting citywide drug hotspots. While conducting surveillance near the 1600 block of Race Street, they observed Anderson in his vehicle. Anderson violated a traffic law at West Liberty and Elm streets.
During the traffic stop, officers discovered more than 60 bindles containing a detectable amount of fentanyl and a pistol.
Anderson pleaded guilty in January to possessing a firearm in furtherance of a drug trafficking offense.
U.S. Attorney Glassman commended the cooperative investigation by ATF and Cincinnati Police, as well as Assistant United States Attorney Anthony Springer, who is representing the United States in this case.
This case is being prosecuted 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.
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Chapmanville Man Sentenced to Seven Years in Prison for Federal Methamphetamine and Firearm OffensesRead the Press Release
CHARLESTON, W.Va. – A Chapmanville man was sentenced after pleading guilty to drug and firearm offenses, announced United States Attorney Mike Stuart. Courtney Edward Dalton, 39, was sentenced to seven years in prison for possession with intent to distribute methamphetamine and possession of a firearm in furtherance of drug trafficking. The case was investigated by the U.S. 119 Drug and Violent Crime Task Force and the Federal Bureau of Investigation (FBI).
“Dealing meth, carrying a gun,” said United States Attorney Mike Stuart. “It’s a sure way to end up in federal prison.”
On March 13, 2018, as part of an ongoing drug investigation, police stopped Dalton as he was driving on WV Route 10 in Harts, Lincoln County, West Virginia. Upon searching the vehicle, police found approximately 1.5 ounces of methamphetamine, marijuana, scales, and a loaded Taurus 9mm pistol. Dalton admitted that he intended to distribute the methamphetamine and that he carried the pistol in order to protect himself from being robbed of his drugs.
Assistant United States Attorney Joshua C. Hanks handled the prosecution. United States District Judge Joseph R. Goodwin imposed the sentence.
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California Couple Charged with Wire Fraud and Money Laundering in $7 Million Ponzi SchemeRead the Press Release
NEWARK, N.J. – A California couple was arrested today on charges of operating a $7 million advance fee Ponzi scheme, U.S. Attorney Craig Carpenito announced.
Jason M. Torres, 41, and Jordana Weber, 30, of Lake Tahoe, California, are charged by complaint with one count of wire fraud conspiracy and one count of money laundering. They are scheduled to appear today before U.S. Magistrate Judge Deborah Barnes in Sacramento, California, federal court.
According to documents filed in this case and statements made in court:
Between April 2017 and the present, Torres, Weber, and others owned and operated several shell companies – one of which employed individuals who lived in New Jersey and performed work while in New Jersey – that falsely purported to offer lending services to customers, typically small business owners seeking high value loans, often in excess of $100 million. As part of the scheme, Torres, Weber and others required customers to pay up to 5 percent of a potential total loan amount as a “fee” prior to the loan being funded.
After the victim’s “fee” was paid, the defendants and others would engage in a fake “due diligence” period, during which they frequently gave victims bogus explanations for why the funding of their loan was delayed. It was also common to provide the victims with falsified or fraudulent documents, including bank statements that purported to show that the shell companies had sufficient money to fund the loan.
Torres, Weber, and others used the “fees” paid by the victims for their daily living expenses, as well as for numerous lavish purchases, which included several luxury vehicles, high priced artwork, and vacations. The “fees” were also used to pay back previous victims of the fraud, in the manner of a traditional Ponzi scheme. To date, approximately six victims have been identified with a total of $7 million being transferred to bank accounts controlled by Torres, Weber, and others.
The wire fraud charge carries a statutory maximum of 30 years in prison and a $1 million fine. The money laundering charge carries a statutory maximum of 20 years in prison and a fine of not more than $500,000 or twice the value of the property involved, whichever is greater.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorney Anthony Torntore of the U.S. Attorney’s Cybercrimes Unit in Newark.
The charges and allegations in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Browning man admits strangulationRead the Press Release
GREAT FALLS – Browning resident Delwin Paul Calflooking, Sr., today admitted to strangling a woman earlier this year at his home on the Blackfeet Indian Reservation, U.S. Attorney Kurt Alme said.
Calflooking, 47, pleaded guilty to strangulation of a dating partner. He faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release.
U.S. District Judge Brian M. Morris presided. Sentencing is set for Nov. 14, 2019. Judge ordered Calflooking detained pending sentencing.
The prosecution said evidence would show that the victim had been drinking with Calflooking on May 6, 2019 at his residence when he began questioning her and strangled and assaulted her. The victim found herself on the ground with Calflooking’s hands around her neck and lost consciousness several times. The victim suffered fractured ribs, a broken arm and significant bruising.
Assistant U.S. Attorney Kalah Paisley is prosecuting the case, which was investigated by the FBI.
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Brookhaven Man Sentenced to over Three Years in Federal Prison for Illegally Possessing FirearmRead the Press Release
Natchez, Miss. – Lattrick Williams, 26, of Brookhaven, was sentenced today by U.S. District Judge David C. Bramlette III to 38 months in federal prison, followed by three years supervised release, for possession of a firearm by a convicted felon, announced U.S. Attorney Mike Hurst and Special Agent in Charge Kirk Thielhorn with the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Williams was also ordered to pay a $1,500 fine.
The case arose after an arrest warrant was executed by the United Stated Marshals Service on October 2, 2018 in McComb, Mississippi, in response to pending charges against Williams out of Lincoln County. Upon arrival, agents found Williams in possession of a Taurus .380 firearm. Williams has a previous conviction in Lincoln County for sale of marijuana and is prohibited from possessing a firearm.
On November 6, 2018, Williams was charged in a federal criminal indictment with being a felon in possession of a firearm. He pled guilty before Judge Bramlette on March 1, 2019.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Candace Mayberry.
Brazilian National Sentenced for Making False Statements Concerning Purported South Boston School ShootingRead the Press Release
BOSTON – A Brazilian national was sentenced yesterday in connection with sending a letter to U.S. Citizenship and Immigration Services (USCIS) that threatened an armed attack on a South Boston school in 2018.
Clebio P. De Lima, 43, a Brazilian national previously residing in Quincy, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to time served (23 weeks). De Lima will now face deportation to Brazil. In June 2019, De Lima pleaded guilty to two counts of making false statements to federal authorities.
In February 2018, USCIS’ Boston Office received an unsigned letter handwritten in Portuguese stating that an individual identified by the name of “Mario” was going to carry out an attack at a South Boston school. The letter stated that Mario had purchased two firearms and that he was looking to buy more. The letter concluded by stating, “I invite you to take action, I trust in you. Thank you for the great security of this country.”
Following an investigation, it was determined that the allegations in the letter were false, and that De Lima sent the letter to USCIS hoping that the federal government would arrest his ex-wife’s boyfriend. During a subsequent interview with law enforcement in September 2018, De Lima falsely denied any knowledge about the unsigned letter sent to USCIS.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Jason Molina, Acting Special Agent in Charge of the Homeland Security Investigations in Boston, made the announcement. The case was investigated by the FBI Boston Joint Terrorism Task Force. Assistant U.S. Attorney George P. Varghese of Lelling’s National Security Unit prosecuted the case.
Box Elder man admits to assaulting womanRead the Press Release
GREAT FALLS – Box Elder resident Ryan John Gardipee on July 31 admitted to assaulting and injuring a woman during an argument that began while they were out for the evening and continued at a residence on the Rocky Boy’s Indian Reservation, U.S. Attorney Kurt Alme said.
Gardipee, 23, pleaded guilty to assault resulting in substantial bodily injury to a dating partner. He faces a maximum five years in prison, a $250,000 fine and three years of supervised release.
U.S. District Judge Brian M. Morris presided and set sentencing for Nov. 14, 2019. Gardipee is detained pending sentencing.
The prosecution said in court records that on Dec. 8, 2018, Gardipee, the victim and another person were out drinking at a casino and then went to another business. An argument began between Gardipee and the victim and continued after they returned to the casino. At one point, Gardipee and the victim began to drive to a residence. Gardipee grabbed the victim’s head as she was driving, and she slammed on the brakes. When the car began moving again, Gardipee jumped out and returned to the casino. Fearing that Gardipee may have injured himself, the victim returned to the casino and the two left together for the residence. On the drive, Gardipee again grabbed the victim’s head and yelled at her to drive to the residence. At the residence, Gardipee assaulted and strangled the victim.
Assistant U.S. Attorney Jared Cobell is prosecuting the case, which was investigated by the FBI.
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Billings meth dealer sentenced to six years in prisonRead the Press Release
BILLINGS—A man who admitted selling methamphetamine in the Billings area was sentenced on July 31 to six years in prison and four years of supervised release, U.S. Attorney Kurt Alme said.
Albert Garcia, 48, hometown unknown, pleaded guilty in November to possession with intent to distribute meth.
Chief U.S. District Judge Dana L. Christensen of Missoula presided.
The prosecution said in court records that law enforcement received information in September 2017 that Garcia was selling meth in the Billings area. Agents worked with a confidential informant who made two controlled buys of meth, totaling about 26 grams, from Garcia.
Assistant U.S. Attorney Bryan Dake prosecuted the case, which was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force.
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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Army Reservist Pleads Guilty to Participating in Money Laundering SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that EMEKA NNAWUBA, a/k/a “Benjamin Alabie,” who is a member of the United States Army Reserves, has pled guilty to participating in a scheme to launder the proceeds of frauds perpetrated against dozens of victims. NNAWUBA pled guilty today before United States District Judge Katherine Polk Failla, who will impose sentence on January 7, 2020.
U.S. Attorney Geoffrey S. Berman said: “Emeka Nnawuba admitted today that he received over $1 million from unsuspecting women in internet romance scams and laundered those proceeds to conceal their origin. Nnawuba callously preyed upon victims looking for companionship, only to come away as victims of theft. Nnawuba tried his luck in love and lost, as he now faces time in prison.”
According to the allegations in the Superseding Indictment and statements made in court:
From at least 2016 until 2018, NNAWUBA participated in a scheme to launder the proceeds of frauds perpetrated against dozens of victims. Among other things, NNAWUBA used false identities and false passports to open bank accounts, received or attempted to receive more than $2,000,000 in fraud proceeds, withdrew tens of thousands of dollars of fraud proceeds in cash, and transferred more than $1 million of fraud proceeds to bank accounts controlled by co-conspirators in an effort to conceal the source of funds.
The funds laundered by NNAWUBA were procured principally by (a) romance scams, in which members of the scheme trolled dating websites to find unsuspecting women and stole their money on false pretenses, and (b) business compromise scams, in which members of the scheme impersonated individuals, professionals, or businesses in the course of otherwise ordinary financial transactions, and then fraudulently induced the counterparties to those transactions to transfer funds to bank accounts controlled and operated by NNAWUBA or other members of the scheme.
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NNAWUBA, 29, of Fayetteville, Arkansas, pled guilty to one count of participating in a conspiracy to commit money laundering, which carries a maximum sentence of 20 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 defendants will be determined by the judge.
Five other individuals previously were charged and pled guilty in connection with their participation in the scheme.
On February 12, 2018, Ifeanyi Ezeji pled guilty to participating in a conspiracy to commit money laundering. On May 31, 2018, Judge Failla sentenced Ifeanyi Ezeji to 40 months in prison and three years of supervised release, and ordered him to forfeit $2,080,347.14 and pay restitution in the amount of $873,891.31.
On May 31, 2018, Christopher Ezeji pled guilty to passport counterfeiting. On October 4, 2018, Judge Failla sentenced Christopher Ezeji to five years of probation, and ordered him to forfeit $500.00 and pay restitution in the amount of $873,891.31.
On June 22, 2018, Peter Abbah pled guilty to aggravated identity theft. On October 2, 2018, Judge Failla sentenced Abbah to 24 months in prison and one year of supervised release, and ordered him pay restitution in the amount of $218,498.76.
On July 27, 2018, Michael Akhiero pled guilty to participating in a conspiracy to commit bank fraud. On April 22, 2019, Judge Failla sentenced Akhiero to seven months in prison and three years of supervised release, and ordered him to forfeit $600.00 and pay restitution in the amount of $143,192.99.
On January 11, 2019, Okechukwu Peter Ezika pled guilty to engaging in monetary transactions in property derived from specified unlawful activity. Ezika’s sentencing has not yet been scheduled.
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Mr. Berman praised the outstanding investigative work of the U.S. Secret Service, and thanked United States Immigration and Customs Enforcement’s Homeland Security Investigations for its assistance.
The prosecution is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Juliana N. Murray and Robert B. Sobelman are in charge of the prosecution.
Acoma Pueblo Man Pleads Guilty to Federal Child Sexual Abuse ChargesRead the Press Release
ALBUQUERQUE – Benedict Anthony Sena, 59, a member and resident of Acoma Pueblo, N.M., pleaded guilty in federal court in Albuquerque, N.M., on July 30, 2019, to a felony information charging him with two counts of abusive sexual contact of children under the age of 12 years. Sena was remanded into federal custody after entering his guilty plea.
Sena was arrested on Aug. 1, 2016, on an indictment that charged him with aggravated sexual abuse. According to the indictment, Sena sexually assaulted two children under the age of 12 years between Jan. 1, 2016 and Feb. 15, 2016, in Indian Country in Cibola County, N.M.
Sena entered his guilty plea under a plea agreement in which he admitted committing the two crimes charged in the felony information in Acoma Pueblo between Jan. 1, 2016 and Feb. 15, 2016. In his plea agreement, Sena admitted touching the two child victims, both under the age of 12 years, on their groins and buttocks to arouse and gratify his sexual desire.
Sena will remain in custody pending his sentencing hearing, which has yet to be scheduled. At sentencing, Sena faces a statutory maximum penalty of life imprisonment, and will be required to register as a sex offender.
The Acoma Agency of the BIA’s Office of Justice Services investigated this case with assistance from the Acoma Pueblo Tribal Police Department. Assistant U.S. Attorney Michael Murphy is prosecuting the case.
Wednesday 31 July 2019
“Camry Cruzin’ Bandit” Sentenced to 15 Years in Federal Prison for Stealing Approximately $479k from Multiple BanksRead the Press Release
In San Antonio today, a federal judge sentenced 42-year-old Dennis Edward Stephen of San Antonio, to 15 years in federal prison for robbing multiple San Antonio banks and stealing approximately $479,000, announced U.S. Attorney John F. Bash, F.B.I. Special Agent in Charge Christopher Combs, San Antonio Division, and San Antonio Police Chief William McManus.
In addition to the prison term, U.S. District Judge Xavier Rodriguez ordered that Stephen pay $442,284 restitution and be placed on supervised release for a period of three years after completing his prison term.
“The financial industry is critical to American capitalism. Today’s 15-year sentence makes clear that it ultimately doesn’t pay to target banks,” stated U.S. Attorney Bash.
On November 8, 2018, Stephen pleaded guilty to one count of bank robbery. By pleading guilty, Stephen admitted responsibility for eight different bank robberies in San Antonio and the surrounding area between November 14, 2013, and July 23, 2018. The robberies include:
- November 14, 2013; April 17, 2014; and September 19, 2014 – Frost Bank on Vance Jackson Rd. – approximately $37,604; $36,280; and $133,000 stolen, respectively;
- November 24, 2015 – Broadway Bank in Helotes, TX – approximately $11,323 stolen;
- June 16, 2016 – Frost Bank on Wurzbach Rd. – approximately $56,077 stolen;
- November 4, 2016; July 5, 2017; and July 23, 2018 – Frost Bank on N. Loop 1604 – approximately $67,000; $101,000; and $36,561 stolen, respectively.
According to court records, authorities dubbed Stephen the “Camry Cruzin’ Bandit” because he drove a Toyota Camry during his scheme and often wore the same attire while committing the robberies: blue jeans, a denim long sleeve button down shirt, a white t-shirt and a UTSA Roadrunners baseball cap covering his head, sunglasses and a surgical mask covering his face, and rubber surgical gloves covering his hands.
Authorities arrested Stephen on July 23, 2018, following the Frost Bank robbery. They were also able to recover the $36,561 he stole during that robbery. He has since remained in federal custody.
The F.B.I. together with the San Antonio Police Department investigated this case. Assistant U.S. Attorney Sarah Wannarka prosecuted this case on behalf of the Government.
Worthington Woman Sentenced to Prison for Stealing Social Security Benefits from Vulnerable AdultsRead the Press Release
United States Attorney Erica H. MacDonald announced the sentencing of ELIZABETH ANN BERGER, 58, to one year and one day in prison for stealing thousands of dollars in Social Security benefits from vulnerable adults. BERGER, who pleaded guilty to one count of theft of government funds on April 1, 2019, was sentenced yesterday by Chief Judge John R. Tunheim in U.S. District Court in Saint Paul, Minnesota.
According to the defendant’s guilty plea and documents filed in court, from March 2013 through April 2015, BERGER was acting as the President and CEO of Prairie Payee Services, Inc., an organizational representative payee for vulnerable adults who were Social Security beneficiaries. Between March 2013 and September 2014, BERGER stole $49,651.78 in Social Security benefits administered by Prairie Payee Services, Inc. and fees collected from the Social Security Administration.
This case was the result of an investigation by the Social Security Administration-Office of the Inspector General. Special Assistant U.S. Attorney Lindsey E. Middlecamp prosecuted the case.
Defendant Information:
ELIZABETH ANN BERGER, 58
Worthington, Minn.
Convicted:
- Theft of government funds, 1 count
Sentenced:
- One year and one day in prison
- Two years of supervised release
- $49,651.78 in restitution
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Wayne County Man Sentenced for Illegally Possessing Ammunition While Being a Prohibited PersonRead the Press Release
HUNTINGTON, W.Va. – Steven Ferguson, 40, of Wayne County, was sentenced today to nine months in prison for being a prohibited person while possessing ammunition, announced United States Attorney Mike Stuart.
“If you want to own a firearm, you need to know the rules,” said United States Attorney Mike Stuart. “If you’re prohibited, you’re prohibited from firearms and ammo. It’s pretty simple. And if we catch you in violation of the law, we’re going to prosecute you.”
On February 2, 2018, a Huntington Police Officer on patrol observed a black Dodge truck stuck in the mud in Rotary Park in Huntington. The officer observed two occupants in the vehicle. After observing and securing a large machete and a hunting knife, Ferguson told the officer a bag contained ammunition. Ferguson was prohibited from possessing the ammunition under federal law because of a 2012 misdemeanor domestic battery 2nd offense conviction in Cabell County Magistrate Court.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie Taylor handled the prosecution of the case.
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Waunakee Man Sentenced to 84 Months for Fraud SchemeRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Patrick O’Connor, 61, Waunakee, Wisconsin, was sentenced yesterday by U.S. District Judge William Conley to 84 months in federal prison for wire fraud and money laundering. O’Connor, a real estate developer and licensed real estate agent, pleaded guilty to these charges on April 4, 2019.
The government’s investigation revealed that between 2011 and 2018, O’Connor solicited funds from several individuals for investment in an entity he created entitled “Madison Financial Services.” As part of his solicitations, O’Connor made various material misrepresentations to investors regarding Madison Financial Services. For example, O’Connor represented that Madison Financial Services would invest all of the investors’ funds into a TradeStation online brokerage account. O’Connor represented that he would use the TradeStation account to actively trade purchased securities and he projected an average annual return on the investment of 2% a month, or 24% annually.
In fact, O’Connor used a large portion of the investors’ funds for his own personal expenses, including expenses related to his real estate development business and to repay other investors. In addition, of the funds that O’Connor actually deposited into his TradeStation accounts and actively traded, he either lost or withdrew the vast majority of the funds and rarely generated any profit.
To further perpetuate the fraud, O’Connor provided investors with purported account statements from their investments with Madison Financial Services. The account statements were fictitious and showed the investors’ supposed year-to-date profits and their supposed current portfolio balance. In addition, O’Connor made Ponzi-style payments to some investors and stated that the money was interest income earned from their investment in Madison Financial Services.
On October 26, 2017, a criminal investigator from the Internal Revenue Service visited O’Connor at his home in Waunakee. During the interview, the investigator questioned O’Connor regarding the particulars of Madison Financial Services and its investments. Specifically, the investigator asked about a $500,000 check from an investor where only $300,000 was transferred into O’Connor’s TradeStation account. Records showed O’Connor used the remaining $200,000 to pay off a real estate loan and for various personal expenses. When pressed to explain the transactions, O’Connor lied to the investigator and stated the investor was also investing in his real estate company. O’Connor also falsely stated that any remaining money used for his own personal expenses came from a fee charged to the client for his services.
In the months following the interview with the IRS investigator, O’Connor continued to solicit people for investments and convinced two investors to provide him with over $1.7 million. In total, O’Connor convinced six investors to invest over $12 million with him. The total loss to the investors once the fraud scheme was revealed was $9,686,848.
In imposing the sentence, Judge Conley stated O’Connor’s Ponzi scheme was “calculated and predatory” and the total amount of money that he stole was “staggering.” Judge Conley noted that O’Connor was living a lie while destroying his investors’ finances, and it was a life full of pride, hubris, and greed. Judge Conley also noted that O’Connor’s decision to take more money from investors after being interviewed by law enforcement was “morally bankrupt.”
The charges against O’Connor were a result of an investigation conducted by IRS Criminal Investigation. The prosecution of the case has been handled by Assistant U.S. Attorney Aaron Wegner.
Waterloo Man Sent to Federal Prison After Carrying Assault Rifle During Altercation in 2016Read the Press Release
A man who possessed a firearm in 2016, after the Black Hawk County Sheriff denied him a gun permit in 2014, was sentenced yesterday to more than three years in federal prison. Michael Thomas Buttermore, age 38, from Waterloo, Iowa, originally from Beaver County, Pennsylvania, received the prison term after a January 2, 2019, guilty plea to possessing a firearm as a prohibited person.
Evidence presented in court showed that, in 2005, Buttermore was committed to a mental institution in Pennsylvania. In 2014, after moving to Iowa, Buttermore applied to the Black Hawk County Sheriff for a permit to acquire a firearm. The Sheriff denied Buttermore’s application and reminded Buttermore that it was illegal for him to possess firearms under federal law on account of his 2005 commitment. In 2016, the Waterloo Police Department began receiving reports about Buttermore acting erratically. In September 2016, Buttermore was involved in an altercation at his residence with another man; during the incident, Buttermore was carrying a Colt M4 assault rifle and the other man had a knife. A woman later reported that Buttermore had chased her down the street with the assault rifle. Ultimately, officers approached Buttermore and he agreed to surrender the firearm along with ammunition he illegally possessed, including two high-capacity magazines. After surrendering the firearm, however, Buttermore unsuccessfully attempted to regain possession of the firearm from the Waterloo Police Department. In addition to his prior commitment, Buttermore, who has a criminal history in both Pennsylvania and Iowa, now admits he was an unlawful user of methamphetamine and heroin, which also made it unlawful for Buttermore to possess firearms.
Buttermore was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Buttermore was sentenced to 41 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Buttermore is being held in the United States Marshal’s custody until he can be transported to a federal prison. The case was prosecuted by Assistant United States Attorney Tim Vavricek and investigated by the Waterloo Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-2063.
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Virginia Man Pleads Guilty to Fraud Scheme and Possessing Fraudulent Austrian PassportRead the Press Release
WASHINGTON – Tyrone Grandberry, 59, of Woodbridge, Virginia, pled guilty yesterday to federal charges of wire fraud, stemming from a scheme to defraud individuals that trusted the defendant to invest money on their behalf, and possessing a fraudulent immigration document, stemming from obtaining and possessing a fraudulent Austrian passport in another name.
U.S. Attorney Jessie K. Liu for the District of Columbia, Charles A. Dayoub, Acting Special Agent in Charge, Criminal Division, FBI Washington Field Office, and Todd J. Brown, Director of the Diplomatic Security Service made the announcement today.
Grandberry pled guilty before the Honorable Paul L. Friedman in the U.S. District Court for the District of Columbia to one count of wire fraud, under 18 U.S.C. § 1343, and to one count of possessing a fraudulent immigration document, under 18 U.S.C. § 1546(a). The charges carry statutory maximums of twenty years and ten years in prison. Grandberry also agreed to the forfeiture of $2,123,033.57 that was seized pursuant to a warrant. Sentencing is scheduled for October 30, 2019.
According to the government’s evidence, Grandberry engaged in conduct that constituted an investment fraud scheme. Grandberry along with others solicited investments totaling approximately $4,000,000, in which they benefited from the scheme by diverting money for their personal use. In some cases, Grandberry “repaid” or “refunded” prior victims with money that he obtained from new investors.
In announcing the plea, U.S. Attorney Liu, Acting Special Agent in Charge Dayoub, and Director Brown commended the work of those who investigated the case at the FBI’s Washington Field Office. Assistance was provided by Assistant U.S. Attorney Thomas Swanton, Paralegal Specialists Jessica McCormick and Chela Okonji, and former Assistant U.S. Attorney Veronica Jennings of the U.S. Attorney’s Office for the District of Columbia. They also praised Assistant U.S. Attorney Demian Ahn of the U.S. Attorney’s Office for the District of Columbia who prosecuted the case.
Upshur County woman sentenced for role in a methamphetamine distribution operationRead the Press Release
ELKINS, WEST VIRGINIA – Angela Dawn White, of Buckhannon, West Virginia, was sentenced today to five years probation for her participation in a methamphetamine distribution operation, United States Attorney Bill Powell announced.
White, age 48, pled guilty to one count of “Distribution of Methamphetamine” in November 2017. White admitted to distributing methamphetamine in Upshur County in March 2017.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Bureau of Alcohol, Firearms, Tobacco and Explosives, The Mountain Region Drug & Violent Crime Task Force, the Greater Harrison Drug &Violent Crime Task Force, a HIDTA-funded initiative, the West Virginia State Police, Upshur County Sheriff’s Office, Lewis County Sheriff’s Office, the Buckhannon Police Department, and the Weston Police Department investigated.
U.S. District Judge John Preston Bailey presided.U.S. Citizen Arrested for Sexual Conduct with A Minor in A Foreign PlaceRead the Press Release
HONOLULU – George Alexis Theros, 76, was arrested yesterday and charged by criminal complaint with engaging in illicit sexual conduct in a foreign place, in violation of 18 United States Code § 2423(c). He made an initial appearance in federal court on July 31, 2019.
Kenji M. Price, U.S. Attorney for the District of Hawaii, announced that the criminal complaint charges Theros with sexually abusing a 14 year-old girl on a boat in Panama. The complaint alleges that witnesses in Panama reported acts of sexual conduct Theros committed on the girl, whom he had claimed was his daughter. Witnesses in Thailand reported that, years ago, Theros paid the girl’s family in Thailand in order to "adopt" her when she was nine or ten years old. The witnesses also reported that the girl then proceeded to live with Theros in his home in Thailand.
According to the criminal complaint, in the spring of 2019, Theros traveled with the girl from Thailand to Panama, and planned to transport her to Hawaii on a boat. When witnesses on the boat realized Theros was sexually abusing the girl, they reported his conduct to law enforcement in Panama. Theros abruptly fled back to Thailand, leaving the girl behind in Panama. He traveled to Hawaii last week, and was arrested on July 30, 2019.
Combatting the exploitation of children is a significant enforcement priority for the U.S. Attorney’s Office for the District of Hawaii (USAO), as well as federal law enforcement agency components in Hawaii, such as the Department of Homeland Security, Homeland Security Investigations (HSI), and the Federal Bureau of Investigation. This prosecution is one of many brought by the USAO in the last 15 months to hold those who sexually exploit minors accountable.
Last May, the USAO brought federal charges against Defendant Dustin Miyakawa for coercion and enticement of a minor, sex trafficking of children, and sexual exploitation of a child. Miyakawa pleaded guilty to coercion and enticement of a minor, and is facing a minimum term of 10 years of imprisonment when he is sentenced in October. Since last May, the USAO brought significant charges against 12 additional defendants—which includes Theros—for exploiting children. Eight of these defendants are charged with attempting to entice a minor to engage in sexual acts, and some of the eight are charged with other offenses. If convicted of attempted enticement, the defendants face a mandatory minimum term of 10 years of imprisonment.
Three of the 12 defendants are charged with child pornography offenses. Two of them—Daniel Lyles and Justin Furr—pleaded guilty. At sentencing, both face a mandatory minimum term of five years of imprisonment.
"These prosecutions demonstrate the federal law enforcement community’s commitment to protecting one of Hawaii’s most precious assets—the boys and girls who hold its future in their hands," stated U.S. Attorney Price. "Our message as a law enforcement community is simple: If your goal is to sexually exploit children, we’ll do everything in our power as a federal law enforcement community to find a home for you in federal prison."
"The sexual exploitation of children is a heinous offense, U.S. citizens traveling abroad need to be cognizant of the fact that U.S. law prohibits this activity and that U.S. law enforcement agents will work tirelessly to bring perpetrators to justice," said John F. Tobon, Acting Special Agent in Charge for HSI Honolulu.
The Theros prosecution was jointly investigated by HSI in Honolulu, Hawaii and Panama City, Panama, the U.S. Department of State’s Diplomatic Security Service (DSS) Overseas Criminal Investigations Division with assistance from the DSS Honolulu Resident Office, and local law enforcement in Panama and Thailand. It is being prosecuted by Assistant U.S. Attorney Morgan Early.
A criminal complaint is merely an allegation, and a defendant charged by complaint or indictment is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. If convicted of the charge in the complaint, Theros faces up to thirty years in prison. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
U.S. Attorney’s Office to Take Part in 36th Annual National Night OutRead the Press Release
Roanoke, VIRGINIA – United States Attorney Thomas T. Cullen will join law enforcement, community leaders, and residents on Tuesday, August 6th in Bristol, Virginia, to celebrate the 36th annual National Night Out crime and drug-prevention event. Officials from the U.S. Attorney’s Office will also attend events in Roanoke, Roanoke County, Harrisonburg, Rockingham County, Lynchburg, Bedford County, Tazewell County, Albemarle County, Pulaski, Marion, Waynesboro, Winchester, Salem, and Abingdon.
National Night Out is a community-building and crime prevention campaign that promotes collaborative law enforcement-community partnerships and neighborhood camaraderie. Thousands of communities nationwide will participate in neighborhood block parties, festivals, cookouts, safety demonstrations, seminars, and activities that heighten crime and drug prevention awareness and generate support for and participation in local anticrime efforts. Events such as these help to strengthen neighborhood spirit, police-community partnerships, and demonstrate a shared commitment for strong and safe communities.
“Reducing violent crime and promoting safety in American communities is a major focus of the Justice Department and U.S. Attorneys across the country,” said Deputy Attorney General Jeffrey A. Rosen. “National Night Out is an opportunity to strengthen the bonds, the respect, and the camaraderie between neighbors and law enforcement officers. These relationships make our country stronger and safer.”
“Our local law-enforcement partners play a vital role in critical DOJ initiatives, including violent-crime reduction and drug enforcement,” U.S. Attorney Cullen stated. “We are proud to stand with them as they work to increase cooperation and trust between their agencies and the communities they serve.”
National Night Out organizers are expecting over 16,000 communities and 38 million people nationwide to take part in community events on Tuesday.
U.S. Attorney's Office Seeks Death Penalty for Two Men Charged in Witness-Tampering Murder, Drug-trafficking ConspiracyRead the Press Release
KANSAS CITY, Mo. – The U.S. Attorney’s Office for the Western District of Missouri has filed a notice of intent to seek the death penalty against two men previously charged in two area murders.
Shawn Burkhalter, also known as “Deuce,” 30, of Kansas City, Missouri, and Joshua Nesbitt, also known as “T,” 25, of Crowder, Mississippi, were indicted last year for the murders of Anthony Dwayne Johnson and Danny Lamont Dean. On Tuesday, July 30, the government filed a notice of intent to seek the death penalty against Burkhalter and Nesbitt.
The notice of intent states that the government believes a sentence of death is justified for Johnson’s murder in furtherance of an evidence-tampering conspiracy, for Johnson’s murder as a potential witness, and for Johnson’s murder in furtherance of a drug-trafficking crime. The notice also states that the government believes a sentence of death is justified for Dean’s murder in furtherance of a drug trafficking crime. Each of those four counts of the indictment carry a possible sentence of death.
Murder of Anthony Dwayne Johnson
The federal indictment alleges that Burkhalter and Nesbitt shot and killed Johnson on Oct. 4, 2015, using a Rock River Arms AR-15 5.56-caliber semi-automatic rifle.
Burkhalter and Nesbitt are charged together in one count of murdering a potential witness. The indictment alleges that Johnson’s murder occurred in order to prevent his testimony and to prevent him from communicating with law enforcement.
Burkhalter and Nesbitt also are charged together with participating in a witness- and evidence-tampering conspiracy that resulted in Johnson’s murder. Their objective, the indictment says, was to kill or at least intimidate and threaten Johnson to prevent his testimony and to prevent him from communicating with law enforcement. They also allegedly threatened to kill another person, identified as “Witness #1,” to cause that person to help conceal the AR-15 rifle used to murder Johnson and Dean, so that it could not be used as evidence.
Burkhalter and Nesbitt also are charged together with using a firearm to commit murder during and in relation to a drug-trafficking crime. The indictment alleges that Johnson’s murder occurred during a robbery of marijuana from an apartment.
Murder of Danny Lamont Dean
The indictment alleges that Burkhalter and Nesbitt shot and killed Dean on Sept. 10, 2015, while robbing him of cocaine. They allegedly used the same AR-15 rifle. Burkhalter and Nesbitt are charged together in one count of using a firearm to commit murder during and in relation to a drug-trafficking crime.
Superseding Indictment
Burkhalter and Nesbitt were originally charged in a Feb. 21, 2018, federal indictment. A federal grand jury in Kansas City, Missouri, returned a superseding indictment on Tuesday, July 30, 2019, that contains two additional charges against Burkhalter and Nesbitt. The superseding indictment also charges an additional defendant.
The superseding indictment charges Burkhalter and Nesbitt with evidence tampering (related to the conspiracy) and charges Burkhalter with witness tampering. Burkhalter, while in pretrial detention after his arrest, allegedly threatened a person identified as “Witness #2” by using another detainee to pass a message to Witness #2, who was being held at a different detention facility.
Anthony Peltier, also known as “A-1,” 37, of Lawrence, Kansas, is also charged in the superseding indictment, along with the original co-defendants – Sharika Hooker, 30, and Autry Hines, also known as “Bud,” 28, both of Kansas City, Mo.; Nickayla Jones, also known as “Red,” 24, of Blue Springs, Mo.; and Rachel Ryce, 31, of Raytown, Mo. Co-defendant Joslyn Lee, also known as “Bless,” 27, of Blue Springs, has already pleaded guilty and therefore is not charged in the superseding indictment.
The superseding indictment retains the original charges against several co-defendants. Jones, Hines, and Ryce are charged with participating with Burkhalter and Nesbitt in the witness and evidence-tampering conspiracy that resulted in Johnson’s murder. Jones, Hines, Ryce, Hooker, and Peltier are charged together with being accessories after the fact of Johnson’s murder. The indictment alleges they assisted Burkhalter and Nesbitt by, among other things, taking steps to hide or destroy evidence pertaining to the murder of Johnson.
Drug-Trafficking Conspiracy
Six of the seven defendants – Burkhalter, Nesbitt, Jones, Hines, Ryce and Peltier – are charged with participating in a conspiracy to distribute cocaine and marijuana from 2008 to Feb. 20, 2018.
In addition to the conspiracy, Burkhalter and Nesbitt are charged together with one count of possessing cocaine (which they allegedly stole from Dean) with the intent to distribute on Sept. 10, 2015.
Burkhalter and Nesbitt also are charged together with one count of discharging a firearm in furtherance of a drug-trafficking crime, related to the discharge of the AR-15 rifle in furtherance of the drug-traffficking conspiracy and the possession of cocaine to distribute.
Burkhalter, Nesbitt, Jones, Hines and Ryce also are charged together with possessing marijuana with the intent to distribute on Oct. 4, 2015. The indictment alleges that they intended to sell a quantity of the marijuana they robbed from Johnson on that date. They are also charged together in one count of discharging a firearm in furtherance of a drug-trafficking crime.
Armed Robbery
Burkhalter and Nesbitt are charged together in one count with robbing a Kansas City, Mo., business on Sept. 8, 2015, and in one count with brandishing a firearm (the same AR-15 rifle) in furtherance of a crime of violence. Burkhalter and Nesbitt are also charged together in one count of being felons in possession of a firearm.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorneys David Raskin and Adam Caine. It was investigated by the FBI and the Kansas City, Mo., Police Department.
U.S. Attorney Issues Public Safety Alert: Fentanyl Crisis Raging in San DiegoRead the Press Release
Kelly Thornton (619) 546-9726
NEWS RELEASE SUMMARY – July 31, 2019
SAN DIEGO – In the wake of four fentanyl overdose deaths in San Diego County in 24 hours last week, U.S. Attorney Robert Brewer issued a public safety alert today for drug users to be aware that a lethal strain of fentanyl designed to look like oxycodone is being sold on the streets to unwitting buyers and the price may be the buyer’s life.
Brewer also warned that the fentanyl crisis is raging here as border seizures, prosecutions and overdoses are on pace to hit all-time highs in San Diego County at the end of 2019.
“That heroin, that meth, that coke, that oxy you think you are taking? Well, it just might have fentanyl in it, and it just might be the last thing you ever do,” Brewer said. “I cannot be more clear than this: Fentanyl may be the costliest drug you ever do, because you may pay with your life, and you won’t even know you took it.”
Fentanyl-related deaths are rapidly climbing to unprecedented levels. The Medical Examiner’s Office reports 50 confirmed fentanyl-related overdose deaths so far this year, plus another 28 suspected but yet-to-be confirmed cases with four months remaining in the year. Should this trend continue for the remainder of 2019, the death toll could potentially reach 130, which would amount to a 47 percent increase over last year’s total of 90 deaths, and a staggering 787 percent hike over five years ago when there were 15. The victims are overwhelmingly male, and the average age is 36, with the youngest 18 and the oldest 66.
“Just when we think it can’t get any worse, the latest numbers prove us wrong,” Brewer said. “I am alarmed by the dramatic surge in trafficking activity and deaths, particularly of young people. San Diego is the fentanyl gateway to the rest of the country, and we are working hard to close that gate with interdiction, prosecution and education.”
Federal authorities, led by U.S. Customs and Border Protection and Homeland Security Investigations, have confiscated an estimated 533 kilograms – or 1,175 pounds – of illicit fentanyl at and near the international border so far this year. That’s more than half a ton. Just four years ago, authorities seized a fraction of that - only 30 kilograms. In addition, there has been a record number of seizures involving counterfeit blue pills labeled M-30 that contain fentanyl.
“Your dealer, BFF, lover, or classmate may become your murderer and the medical examiner may become your personal physician,” said DEA Special Agent in Charge Karen Flowers. “Life is precious. Don’t gamble yours away for a quick high that sends you home from the party in a body bag.”
“Homeland Security Investigations (HSI) is committed to pursuing transnational criminal organizations who continue to profit from smuggling and distributing this deadly opioid that threatens our communities,” said Timothy J. Tubbs, Acting Special Agent in Charge for HSI in San Diego. “HSI will continue to collaborate with our local, state, federal, and international law enforcement partners to protect our communities from dangerous drugs.”
“Fentanyl is a dangerous synthetic drug that poses a deadly risk for people who encounter this opiate,” said CBP Director of Field Operations in San Diego, Pete Flores. “CBP officers take special safety precautions when handling such substances and taking them off the street is another example of how CBP protects our communities against all threats.”
The DEA is working in conjunction with local law enforcement agencies in San Diego to ensure the most effective overdose death investigations and prosecutions. DEA is actively investigating fatal overdose deaths that occur in the San Diego County and has established an Overdose Response Group, which consists law enforcement from DEA, SDPD, Homeland Security Investigations, California Department of Health Care Services and FBI. The goal of this specialized group is to identify the distributors of these deadly drugs that are bringing heartbreak to our communities.
Fentanyl is 30-50 times more powerful than heroin and so dangerous that in its purest form, even a tiny amount touching the skin can be deadly. According to law enforcement reports, the price of fentanyl in 2019 – whether in powder form and pill form – is declining, meaning that both forms are readily available in our community.
Users are also ordering up fentanyl from the so-called “Dark Web” like they would order something from Amazon. The drug is being purchased online and sent directly to customers by mail or express delivery service in the U.S.
Brewer urged users who opt to disregard his dire warning to seek Narcan, a drug that can reverse the effects of opioid overdose and save lives. Narcan is available by prescription and can be purchased at many pharmacies without a prescription.
The law enforcement community has taken this problem very seriously and developed a multi-level strategy that involves a number of approaches from different disciplines.
The U.S. Attorney’s Office and District Attorney’s Office are working closely with the Medical Examiner’s Office, and its law enforcement partners, on overdose cases involving fentanyl to trace the origin of these deadly substances and build possible murder cases against suppliers. So far, the U.S. Attorney’s Office has charged about a dozen alleged dealers.
In November, U.S. Attorney Brewer, DEA, HIDTA and the San Diego Prescription Drug Abuse Task Force are sponsoring a Western States Opioid Summit that will bring together hundreds of professionals from multiple disciplines to provide training and best practices to combat the fentanyl scourge. Surgeon General Jerome Adams will address the group.
The U.S. Attorney’s Office and its partners created a local Fentanyl Working Group in early 2017, which meets quarterly. This is a multi-dimensional group that includes local, state and federal investigative agencies, toxicologists, the Medical Examiner’s Office, DEA Lab Chemists, first responders, plus local, county and federal prosecutors. This collaboration is a significant step in working together to promote streamlined investigations.
The Fentanyl Working Group also held the sixth Fentanyl Forum on July 18, 2019, where hundreds of local and federal law enforcement officers learned about the dangers of encountering fentanyl in the field; the local smuggling trends from Mexico and China to the U.S.; parcel interdiction cases, prosecution of overdose cases in state and federal courts; and prosecution collaboration with our office and that of the District Attorney.
The Fentanyl Working Group is also committed to arming the community and first responders with the important information they need to stay safe.
Members of the public who encounter suspicious counterfeit blue pills labeled M-30 are urged to dispose of them safely by referring to resources listed at https://www.sandiegorxabusetaskforce.org/community-resources
People who need help with mental health including substance use disorder, suicide prevention, medication needs, and more can call the San Diego County Crisis line at 888-724-7240. It’s open seven days a week, 24 hours a day.
Two Money Mules Plead Guilty in Federal Court for Role in Sextortion SchemeRead the Press Release
Charleston, South Carolina --- United States Attorney Sherri A. Lydon announced today that Andreika Mouzon, age 29, of Kingstree, and Flossie Brockington, age 29, of Columbia, pleaded guilty to federal charges involving a scheme to defraud and extort military service members. Mouzon pleaded guilty to conspiracy to commit wire fraud and money laundering, and Brockington pleaded guilty to money laundering.
Evidence presented to the court showed that Mouzon and Brockington were involved in a scheme to extort and defraud Department of Defense service members. According to evidence presented to the court, during the course of the scheme, inmates posed as females on dating apps and began communicating with service members. Posing as the females, the inmates sent nude photographs of young females to the service members and solicited nude photographs in exchange. The inmates then posed as the females’ father or impersonated law enforcement, claiming that the service member was in possession of child pornography and threatening to have him arrested if he did not pay money. The inmates utilized money mules, including Mouzon and Brockington, who would receive the extorted funds via wire transfer directly from the service members, then transfer the money to inmates and their associates.
During the course of the conspiracy, Mouzon was responsible for transferring $20,421.73 of extorted funds from at least 11 service members, and Brockington was responsible for transferring $14,465.00 of extorted funds from at least eight service members.
Mouzon and Brockington both face a maximum term of imprisonment of 20 years and a fine of $250,000.00. United States District Judge David C. Norton, of Charleston, accepted the guilty pleas and will sentence Mouzon and Brockington after receiving and reviewing a presentence report prepared by the United States Probation Office.
This case was investigated by the Naval Criminal Investigative Services, Internal Revenue Service – Criminal Investigations, Department of Defense Criminal Investigative Services, Air Force Office of Special Investigations, U.S. Army Criminal Investigations Command, United States Marshals Service, South Carolina Department of Corrections, and South Carolina Law Enforcement Division. Assistant United States Attorney Emily Limehouse of the Charleston office is prosecuting the case.
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Two Mid-Missouri Women Arrested on Charges They Distributed Morphine Leading to Multiple OverdosesRead the Press Release
St. Louis - The United States Marshals Service today arrested Megan Lowe, 41, of Bevier, Missouri and Kimberly Ann Basler, 44, of Atlanta, Missouri on Federal drug charges. The Indictment against Lowe and Basler was unsealed following their arrests. It alleges that on October 5, 2018, Lowe and Basler distributed controlled substances, and that two people, identified only as E.O. and M.J., ingested those drugs. M.J., of Columbia, Missouri, died as a result, and E.O., also of Columbia, became seriously ill. Lowe and Basler are each charged with two counts – one count of Distribution of a Controlled Substance Resulting in Serious Bodily Injury and one count of Distribution of a Controlled Substance Resulting in Death. They are expected to make their initial appearances in the United States District Court for the Eastern District of Missouri in St. Louis on August 1, 2019.
The case was investigated by multiple law enforcement agencies, including the Columbia, Missouri Police Department and the Missouri State Highway Patrol.
Lowe and Basler face mandatory minimum sentences of 20 years on each of the two counts with which they are charged. These sentences could be ordered to be served concurrently (at the same time) or consecutively (one after the other).
Charges set forth in the Indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Two Indiana Men Sentenced to More Than Ten Years in Prison for Armed Robbery of Scranton PharmacyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Rashad Coleman, age 26, and Coreon House, age 21, both of Indianapolis, Indiana, were each sentenced on July 30, 2019, by United States District Court Senior Judge James M. Munley, to serve 125 months’ imprisonment for the armed robbery of a CVS Pharmacy in Scranton.
According to United States Attorney David J. Freed, House and Coleman previously pleaded guilty to the charges of armed robbery of a pharmacy and brandishing a firearm in furtherance of a crime of violence, filed as a result of the armed robbery of the CVS Pharmacy, located on Moosic Street in Scranton, which occurred on May 21, 2018. House, Coleman and a third individual, Nicola Dunlap, age 21, also of Indianapolis, traveled from Indianapolis to the CVS Pharmacy in Scranton. Upon entering the pharmacy, House pointed a firearm at a CVS employee while Coleman acted as a lookout and Dunlap acted as a getaway driver. House and Coleman proceeded to take numerous bottles of pills from the pharmacy, including oxycodone, morphine and xanax. All three were apprehended a short time later after police stopped the vehicle in which they were traveling.
The charges against Nicola Dunlop are still pending.
The investigation was conducted by the Federal Bureau of Investigation, the Scranton Police Department and the Pennsylvania State Police. Assistant United States Attorney Robert J. O’Hara prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. 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 enforcement and the local community to develop effective, locally-based strategies to reduce crime.
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Two Convicted Felons Admit Guilt in Separate Felony Gun CasesRead the Press Release
ALBANY – Two defendants with lengthy criminal histories involved in separate felony gun cases in the Valdosta, Georgia area entered guilty pleas for their crimes this afternoon, announced Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. Clifford Timothy Bradley, II, 38, of Valdosta, Georgia, and Paul A. Bradford, 48, of Lakeland, Georgia, entered guilty pleas to one count of Possession of a Firearm by a Convicted Felon before U.S. District Judge Louis Sands. Both defendants face a maximum sentence of ten years in prison and a $250,000.00 fine, or both. The defendants will be sentenced on October 24, 2019 at 3:00 p.m.
According to a statement of fact submitted by the Government, Mr. Bradley was pulled over for speeding in a Valdosta residential area on August 17, 2018. Mr. Bradley was taken into custody, and Lowndes County deputies discovered a loaded semi-automatic pistol in the center console. Mr. Bradley has three prior felony convictions in Lowndes County, including pleading guilty to a 2006 robbery for which he was imprisoned. Mr. Bradley admitted he knew at the time of his 2018 arrest that he was illegally in possession of a firearm.
According to a statement of fact submitted by the Government, Mr. Bradford was arrested at his home in Lakeland, Georgia on July 18, 2018 during the service of an arrest warrant for another individual living in his home. Deputies discovered a 12-gauge shotgun, and Mr. Bradford admitted that the firearm belonged to him, and that he was in possession of it illegally. Mr. Bradford had prior felony convictions in Lanier County Superior Court, including a 1990 Burglary and Theft by Taking conviction and a 1998 Statutory Rape conviction.
“Our office remains relentless in its pursuit to remove guns from the hands of convicted felons with violent criminal histories,” said Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. “We are working alongside law enforcement agencies across the Middle District to curb violent crime, and holding felons accountable for illegally possessing dangerous weapons is a common-sense approach to meeting our shared goal.”
Both cases were prosecuted 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.
Mr. Bradley’s case was investigated by the Lowndes County Sheriff’s Office. Mr. Bradford’s case was investigated by the Federal Bureau of Investigation and the Lanier and Berrien County Sheriff’s Offices. Both cases were prosecuted by Assistant U.S. Attorney Robert McCullers.
Questions concerning this case can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Two Arrested for Cross-Country Marijuana Trafficking ConspiracyRead the Press Release
A criminal complaint has been unsealed in the Eastern District of New York charging Kevin Lau, Kenneth Tam and Jack Thai with conspiracy to distribute, and possession with intent to distribute, large quantities of marijuana. Thai was arrested on July 24, 2019 in Las Vegas, Nevada, and made his initial appearance today in federal court in Brooklyn before United States Magistrate Judge Steven L. Tiscione. Thai was released on a $50,000 bond. Tam surrendered to law enforcement yesterday and made his initial appearance yesterday before Magistrate Judge Tiscione. Tam was released on a $500,000 bond. Lau is currently a fugitive.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Angel M. Melendez, Special Agent-in-Charge, Department of Homeland Security, Homeland Security Investigations, New York Field Office (HSI), announced the arrests.
“Today’s arrests end the defendants’ scheme of shipping marijuana by tractor trailer and grounds their use of commercial airline flights to transport illicit drug cash,” stated United States Attorney Donoghue. “Together with HSI, our Office will continue to identify and prosecute traffickers who distribute narcotics into our communities.”
“This trio allegedly operated a coast to coast operation, moving more than 50 tons of marijuana to New York and other cities around the U.S.,” stated HSI Special Agent-in-Charge Melendez. “Over the course of 3 years, trucks were used to move the product east, as far as Queens, while the proceeds were smuggled back to the west coast by plane. HSI’s Border Enforcement Security Task Force followed the money in this large-scale drug distribution conspiracy, which resulted in the three arrests this morning. These individuals will now make that same trip, from West Coast to East Coast, to face prosecution.”
As alleged in court documents, between February 2015 and December 2018, the defendants conspired to ship multiple kilogram quantities of marijuana by tractor trailer from California and Washington State to Queens and elsewhere for distribution. The shipping crates used to transport the marijuana were falsely labeled as containing furniture, clothing and other merchandise. Lau’s co-conspirators stored the crates in commercial facilities and residences in Queens and other locations in New York City. The cash proceeds of the marijuana were then smuggled back to the West Coast concealed in luggage on commercial airlines.
During the investigation, HSI agents seized approximately $500,000 in cash from members of the conspiracy. Based on records of more than 200 marijuana shipments and the seizures of marijuana by law enforcement, HSI estimates that the defendants transported more than 100,000 pounds of marijuana, marijuana oil and drug paraphernalia.
If convicted, the defendants face a mandatory minimum of 10 years’ imprisonment, and up to life in prison.
The charges in the complaint are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorneys James P. McDonald and Philip Pilmar are in charge of the prosecution.
The Defendants:
KEVIN LAU
Age: 34
San Francisco, CaliforniaKENNETH TAM
Age: 35
San Francisco, CaliforniaJACK THAI
Age: 39
Las Vegas, NevadaE.D.N.Y. Docket No. 19-MJ-626
Twelve People Charged in Long-Running Investigation of Newark G-Shine BloodsRead the Press Release
NEWARK, N.J. – Twelve members, associates, and suppliers of a drug trafficking organization based in Newark have been charged in connection with their roles in distributing heroin, fentanyl, and crack cocaine and using firearms to protect their illegal operation, U.S. Attorney Craig Carpenito announced today.
The 12 defendants were charged in a complaint unsealed today (six others have been previously charged on separate complaints). Eight of the 12 defendants charged today are scheduled to appear this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court. One remains at large. (See table below.)
“That these defendants allegedly used a neighborhood rec center as a place to conceal and sell dangerous drugs is almost beyond comprehension,” U.S. Attorney Carpenito said. “While neighborhood children were coming here to play basketball and chess, they may have been just a few feet away from narcotics and the criminals who sell them. Getting the people who ran this operation off the street is a priority for law enforcement, and together with our partners in the DEA, the Newark Police, the New Jersey State Police and many others, we are doing just that.”
“Today’s operation highlights how cooperation between law enforcement at all levels can successfully lead to the dismantlement of a drug operation,” Special Agent in Charge of the Drug Enforcement Administration’s New Jersey Division, Susan A. Gibson, said. “Those arrested not only held a community hostage with their violence and drug dealing, but they also utilized a community recreation center to deliver and store their heroin. These people were concerned only with making money with no concern for damage they were causing.”
“Once again, a great collaboration with our federal partners helps Newark to become a safer place,” Newark Public Safety Director Anthony F. Ambrose said. “Last year, the US Attorney’s Office was responsible for over 100 violent cases. I’m glad to see this trend continue in 2019. The people of Newark are the benefactors.”
According to the documents filed in this case and statements made in court:
The charges and arrests are the result of a long-running wiretap investigation led by the DEA. The organization’s leaders – Edward Williams and Wali Duncan – obtained their supply of narcotics from Rahim Jackson and Arthur Hardy, who would deliver the narcotics personally or through runners. On numerous occasions, large narcotics deliveries took place in and around the Rotunda Recreation and Wellness Center on Clifton Avenue, where Hardy was the director and Jackson and Williams were employees. These individuals also used the center to stash drugs and money.
Williams and Duncan are members of the G-Shine set of the Bloods street gang, which operates at the Janice Cromer Village public housing complex, also known as the Broadway Townhomes, in Newark. Duncan supplied narcotics to numerous individuals who would sell them in the neighborhood, which is near two elementary schools and a high school.
U.S. Attorney Carpenito credited special agents of DEA, under the direction of Special Agent in Charge Gibson; members of the Newark Department of Public Safety, under the direction of Public Safety Director Anthony F. Ambrose; and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to the charges.
He also thanked the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; the Rockaway Township Police Department, under the direction of Chief Martin McParland; and special agents of the ATF, under the direction of Special Agent in Charge Charlie J. Patterson in Newark for their assistance.
This investigation was part of the Violent Crime Initiative (VCI), which was formed in August 2017 to combat violent crime in and around Newark. Federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders. The VCI is composed of the U.S. Attorney’s Office, FBI, ATF, DEA, U.S. Marshals, Newark Department of Public Safety, Essex County Prosecutor’s Office, Essex County Sheriff’s Office, N.J. State Parole Board, Union County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, N.J. Department of Corrections, East Orange Police Department, and Irvington Police Department.
The government is represented by Assistant U.S. Attorney Heather K. Suchorsky of the U.S. Attorney’s Office’s Organized Crime and Gangs Unit in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
The charges and allegations contained in the complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
DEFENDANT
AGE
CHARGES
POTENTIAL PENALTIES
Edward Williams,
a/k/a “Fadia,”51
Conspiracy to distribute one kilogram or more of heroin
10 year mandatory minimum; up to life
Wali Duncan,
a/k/a “Haneef Toler,”
a/k/a “Remix,”
a/k/a “Black Ass,”
37
Conspiracy to distribute one kilogram or more of heroin
10 year mandatory minimum; up to life
Rahim Jackson,
a/k/a “Rah,”43
Conspiracy to distribute one kilogram or more of heroin
10 year mandatory minimum; up to life
Arthur Hardy,
a/k/a “Art,”41
Conspiracy to distribute one kilogram or more of heroin
10 year mandatory minimum; up to life
Tieshorn Fletcher,
a/k/a “X,”
a/k/a “Fat Boy,”37
Conspiracy to distribute one kilogram or more of heroin
10 year mandatory minimum; up to life
Kareem Collier,
a/k/a “Grimey,”
a/k/a “Grime,”41
Conspiracy to distribute one kilogram or more of heroin
10 year mandatory minimum; up to life
*Fuquan Bunn,
a/k/a “G Fu,”
38
Conspiracy to distribute one kilogram or more of heroin
Distribution and possession with intent to distribute heroin and cocaine base10 year mandatory minimum; up to life
20 year maximum
Shyiem Gordon,
a/k/a “GT,”24
Conspiracy to distribute one kilogram or more of heroin
10 year mandatory minimum; up to life
Michael Graham,
a/k/a “Soulman,”
35
Conspiracy to distribute one kilogram or more of heroin
10 year mandatory minimum; up to life
**Terrell Evans,
a/k/a “Rell30
Conspiracy to distribute one kilogram or more of heroin
Distribution and possession with intent to distribute heroin and cocaine base10 year mandatory minimum; up to life
20 year maximum
*Arraheem Washington
42
Conspiracy to distribute one kilogram or more of heroin
10 year mandatory minimum; up to life
*Wilfredo P. Jimenez,
a/k/a “Pedro Munoz,”
a/k/a “Pedro Munoz Almonte,”
a/k/a “Carlos Rivera”47
Conspiracy to distribute one kilogram or more of heroin
Distribution and possession with intent to distribute heroin10 year mandatory minimum; up to life
Five year mandatory minimum; up to 40 years
*Already in custody on separate state charges
**At large
Tuscaloosa Man Sentenced to 10 Years in Prison for Felon in Possession of a FirearmRead the Press Release
BIRMINGHAM – A Tuscaloosa man who tried to run over a Tuscaloosa police officer was sentenced to 10 years in prison on Monday, announced U.S. Attorney Jay E. Town and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Marcus Watson.
U.S. District Judge L. Scott Coogler sentenced DEVONTE JAISHUN TUCKER, 23, Tuscaloosa, to 10 years in prison for being a felon in possession of a firearm. Tucker pled guilty in April to one-count of being a felon in possession of a firearm.
“This sentence comes at a time when we have seen an increase in violence against law enforcement in Alabama,” Town said. “Those who would threaten the life of any member of law enforcement would threaten the life of any member of the community. While Tucker is provided a federal prison bed in which to lay, the rest of us should all stand with the men and women of the badge.”
“Reducing the potential for violent crime in this case was critical due to ATF partnering with our state, local and federal partners,” Watson said.
On November 15, 2018, just after midnight, Tuscaloosa police officer Joshua Smith attempted to stop a stolen vehicle in the parking lot of Creekwood Village Apartments. The unidentified driver obeyed Officer’s Smith’s commands to exit the vehicle when the armed passenger, Tucker, jumped in the driver’s seat. Tucker attempted to run over Officer Smith as he fled the scene in the stolen car. A high speed chase ensued.
Tuscaloosa police officer Jacob Morris was in the area, observed Tucker speeding near Stillman College. Officers Morris and Smith pursued Tucker in a high speed chase on 15th Street and McFarland Boulevard with Tucker reaching speeds near 100 mph. Tucker finally abandoned the stolen vehicle and fled on foot near the Springbrook neighborhood. Although Tucker was armed, Officers Morris and Smith relentlessly pursued Tucker and apprehended him. Tucker was armed with a stolen Hi-Point .45 caliber pistol.
Tucker was sentenced to the statutory maximum of 10 years based on his criminal history. He endangered the life of Officer Joshua Smith, other Tuscaloosa police officers involved in the chase, and innocent lives traveling on Tuscaloosa streets that morning.
ATF investigated the case, which the Assistant United States Attorney Blake Milner prosecuted.
Tucker County man sentenced for methamphetamine distributionRead the Press Release
ELKINS, WEST VIRGINIA – Donald Allen Poling, of Hambleton, West Virginia, was sentenced today to 46 months incarceration for drug distribution, United States Attorney Bill Powell announced.
Poling, age 52, pled guilty to one count of “Distribution of Methamphetamine” in March 2019. Poling admitted to selling methamphetamine in December 2017 in Tucker County.
Assistant U.S. Attorney Brandon S. Flower prosecuted the case on behalf of the government. The Mountain Region Drug and Violent Crimes Task Force investigated.
U.S. District Judge John Preston Bailey presided.