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11 September 2019
Fayetteville Woman Sentenced to Federal PrisonRead the Press Release
CHARLESTON, W.Va. – A Fayetteville woman was sentenced to federal prison for heroin, fentanyl, and methamphetamine trafficking, announced United States Attorney Mike Stuart. Jessical Lynn Hall, 29, was sentenced to 71 months in prison for possession with intent to distribute 50 grams or more of methamphetamine, along with quantities of heroin and fentanyl. Upon completing her prison sentence, Hall will serve an additional term of four years of supervised release.
“Hall and her boyfriend were serious drug dealers in Fayette County,” said United States Attorney Mike Stuart. “Hall is now off to serve a substantial federal prison sentence and her boyfriend will soon learn his fate.”
Hall previously admitted that she sold heroin and fentanyl to an informant on three occasions in January 2019 at her residence on Deepwater Mountain Road. On January 15, 2019, members of the Central West Virginia Drug Task Force executed a search warrant and seized 446 grams of methamphetamine, 89.95 grams of heroin, 90.82 grams of fentanyl and three handguns. Hall’s boyfriend, Jason Treadway, 37, pled guilty in June to distribution of heroin and possession with intent to distribute 50 grams or more of methamphetamine and quantities of heroin and fentanyl. Treadway faces 5 to 40 years’ prison when he is sentenced on October 3, 2019.
The Central West Virginia Drug Task Force conducted the investigation. United States District Judge Irene C. Berger imposed the sentence.
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Fayette County Man Admits Making Hoax Emergency Phone Calls to Elicit an Armed Police Response: Practice is Known as “Swatting”Read the Press Release
PITTSBURGH, PA - A resident of Dunbar, Pennsylvania, pleaded guilty in federal court to a charge of interstate threats, United States Attorney Scott W. Brady announced today.
Nicholas Huffine, age 20, pleaded guilty to one count before Senior United States District Judge Donetta W. Ambrose.
In connection with the guilty plea, the court was advised that Huffine participated in a practice known as "swatting," in which he, along with others, made hoax emergency telephone calls to the Winter Garden, Florida, Police Department, and falsely reported an ongoing, dangerous crime in order to elicit an armed police response (from a SWAT team, hence the term "swatting") to a specific location, in order to harass someone whom he believed was there. The calls resulted in emergency personnel being deployed, as well as physical damage due to forced entry to one of the residences where Huffine directed the law enforcement officers.
"Swatting is terrifying to victims, as well as highly dangerous as law enforcement agents operate under the belief that they are responding to the scene of active and ongoing violent criminal activity," said U.S. Attorney Brady.
Judge Ambrose scheduled sentencing for January 9, 2020. The law provides for a total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Huffine.
Dominican Fugitive Charged with Identity Theft and Making False Statements in an Immigration DocumentRead the Press Release
BOSTON – A Dominican national was arrested yesterday in Miami on a federal warrant for aggravated identity theft and immigration fraud charges filed in federal court in Boston in May 2019, as well as a federal warrant from 1997 in a drug trafficking case.
Teodoro Tejada Rivas, 63, a Dominican national who resided in Lawrence until recently, was charged in an criminal complaint unsealed today with one count of making false statements in an immigration document and one count of aggravated identity theft. Rivas made an initial appearance on those charges in the Southern District of Florida today, and was detained pending a detention hearing scheduled for Sept. 16, 2019 in Miami.
The Massachusetts complaint alleges that since at least 2006, Tejada Rivas has been using the identity of a U.S. citizen from Puerto Rico. Tejada Rivas used the name, social security number, and date of birth of the Puerto Rican man to apply for a U.S. passport in 2007, and to file an immigration form in 2016 in an attempt to bring his Dominican wife and children into the United States. The fraudulent immigration form was filed three years after the death of the U.S. citizen whose identity Tejada Rivas had stolen.
United States Attorney Andrew E. Lelling; William B. Gannon, Special Agent in Charge of the U.S. Department of State’s Diplomatic Security Service, Boston Field Office; and John Gibbon, U.S. Marshal for the District of Massachusetts made the announcement today. Assistant U.S. Attorney Elianna Nuzum of Lelling’s Major Crimes Unit is prosecuting the case.
District Man Sentenced to 72 Months for Federal Firearms OffenseRead the Press Release
WASHINGTON – Michael Wells, 48, of Southeast, D.C., was sentenced today to 72 months in prison for a federal firearms charge stemming from his possession of a loaded firearm on March 23, 2018, in the 600 block of Raleigh Place, Southeast, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Wells pled guilty in the U.S. District Court for the District of Columbia to one count of unlawful possession of a firearm and ammunition by a person convicted of a crime punishable by imprisonment for a term exceeding one year and one count of possession of phencyclidine (PCP) on May 23, 2019. The Honorable Richard J. Leon sentenced Wells today and required an additional 36 months of supervised release after Wells’ incarceration.
According to the government’s evidence, on March 23, 2018, at approximately 5:00 p.m., MPD was conducting drug enforcement operations in the 600 block of Raleigh Place, Southeast. Officers observed Wells purchase PCP from another individual. Wells, along with others, were stopped by police. In Wells’ left jacket pocket, law enforcement recovered a wet PCP cigarette, and inside of Wells’ backpack, they located a RG14 six-cylinder loaded revolver as well as 23 .22 caliber bullets.
At the time of his arrest, Wells had previously been convicted of a number of felonies, including the same charge—Unlawful Possession of a Firearm—out of U.S. District Court for the District of Columbia in 2000. Wells had also previously been convicted of several narcotics trafficking offenses out of D.C. Superior Court.
In announcing the sentence, U.S. Attorney Liu and Chief Newsham, commended the work of the MPD officers who investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorney Gregory Rosen.
Detroit Heroin Trafficker Sentenced to Federal PrisonRead the Press Release
CHARLESTON, W.Va. – A Detroit, Michigan, man was sentenced to federal prison for a federal drug trafficking crime, announced United States Attorney Mike Stuart. Eddie Riago-Javone Bryant, 27, was sentenced to 43 months in prison for possession with intent to distribute heroin.
“Bryant was selling drug mixtures containing heroin, fentanyl and PCP,” said United State Attorney Mike Stuart. “Drug dealers from Detroit have caused so much misery and despair throughout West Virginia communities. We’re taking our streets back and putting poison peddlers behind bars.”
According to public court hearings and Bryant’s plea agreement, Bryant sold drugs to a police undercover confidential informant in Charleston and Cross Lanes, West Virginia, on February 8, February 12, and February 14, 2018. Bryant sold drug mixtures containing heroin, fentanyl, and phencyclidine (PCP). On February 15, 2018, investigators arrested Bryant at the Cross Lanes Motel 6 and found that he was carrying around 25 grams of a heroin mixture, $688 in drug proceeds, and a digital scale.
After Bryant’s release from jail, he again sold a mixture of heroin and fentanyl to a confidential informant on April 18, 2018, in Charleston. Investigators arrested Bryant that day and executed a search warrant at the apartment where he was temporarily residing on West Washington Street. They recovered approximately 12 grams of a heroin and fentanyl mixture and found a .22 caliber revolver hidden in a cereal box in the kitchen cabinets.
The Metropolitan Drug Enforcement Network Team (MDENT), Charleston Police Department, West Virginia State Police, and the Drug Enforcement Administration conducted the investigation. Senior United States District Judge John T. Copenhaver, Jr., presided over the hearing. Assistant United States Attorney Drew O. Inman handled the prosecution.
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Dallas-Based Human Trafficker Charged by Criminal ComplaintRead the Press Release
A Dallas man has been charged with operating a large-scale human trafficking organization, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Tremont Blakemore, 40, was charged by criminal complaint with sex trafficking through force, fraud and coercion and made his initial appearance before Magistrate Judge Rutherford Wednesday afternoon.
According to victim statements detailed in the complaint, Mr. Blakemore -- who goes by the street name “Macknificent” -- may have trafficked hundreds of women across the United States between 2011 and 2018.
Mr. Blakemore allegedly cultivated an “environment of paranoia,” demanding near constant updates from the victims he forced into commercial sex and doling out severe physical punishment from those he believed were “keeping secrets,” according to the criminal complaint.
Victims said they were required to alert Mr. Blakemore of each illicit encounter as it happened or face grotesque abuse.
“I’m going to make an example out of someone soon,” he wrote in a group text message to victims. “I will not continue to tolerate disrespect that’s one of my biggest pet peeves.”
Mr. Blakemore allegedly set a quota of commercial sex proceeds – generally about $1,000 or more per day – and required victims turn all earnings over to him, either in bulk cash or via money transfers. He set the rates for various commercial sex acts, and occasionally lowered victims’ rates to flood out competition.
“We need to be bringing in 100k a week,” he told victims in another text. “Those don’t like working need day jobs.”
To enforce the rules, Mr. Blakemore allegedly slapped, punched, choked, and kicked his victims, and occasionally burned them with cigarettes.
After one victim expressed a desire to leave his organization and have a family, Mr. Blakemore allegedly body-slammed her into an air conditioning unit, leaving her bruised, bloodied, and with severe back injuries. The victim told agents she believed Mr. Blakemore wanted to “make an example” in front of the other victims so they’d be afraid to talk about a life outside his control.
Mr. Blakemore allegedly appointed certain victims “group leaders” tasked with managing the trafficking organization’s business, including posting commercial sex advertisements online and booking women’s cross-country travel to engage in commercial sex as far away as New York and Hawaii.
In order to recruit new victims, Mr. Blakemore flouted his lavish lifestyle on social media, giving the illusion that his victims were also living in luxury.
He even encouraged women to tattoo his street name on their bodies to signal their loyalty to him.
A criminal complaint is a formal accusation of criminal conduct, not evidence, and like all defendants, Mr. Blakemore is innocent unless and until proven guilty in a court of law.
If convicted, he faces a sentence of up to life in prison.
Homeland Security Investigations, North Texas Trafficking Task Force, with the assistance of the Oakridge Police Department, along with the Federal Bureau of Investigations and Dallas Police Department conducted the investigation.
This case is being prosecuted by AUSA Melanie Smith, AUSA Nicole Dana, and AUSA Cara Foos Pierce.
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Public Affairs Officer Erin Dooley will be out of the office thru Monday, Sept. 16.
If you need immediate assistance, please contact Suzanne Martin at [email protected] .DEA Proposes to Reduce the Amount of Five Opioids Manufactured in 2020, Marijuana Quota for Research Increases by Almost a ThirdRead the Press Release
The U.S. Drug Enforcement Administration (DEA) is proposing to reduce the amount of five Schedule II opioid controlled substances that can be manufactured in the United States next year compared with 2019, per the Notice of Proposed Rulemaking being published in the Federal Register tomorrow and available for public inspection here today.
DEA proposes to reduce the amount of fentanyl produced by 31 percent, hydrocodone by 19 percent, hydromorphone by 25 percent, oxycodone by nine percent and oxymorphone by 55 percent. Combined with morphine, the proposed quota would be a 53 percent decrease in the amount of allowable production of these opioids since 2016.
DEA proposes to increase the amount of marijuana that can be produced for research by almost a third over 2019’s level, from 2,450 kilograms to 3,200 kilograms, which is almost triple what it was in 2018. This will meet the need created by the increase in the amount of approved research involving marijuana. Over the last two years, the total number of individuals registered by DEA to conduct research with marijuana, marijuana extracts, derivatives and delta-9-tetrahydrocannabinol (THC) has increased by more than 40 percent, from 384 in January 2017 to 542 in January 2019.
“The aggregate production quota set by DEA each calendar year ensures that patients have the medicines they need while also reducing excess production of controlled prescription drugs that can be diverted and misused,” said Acting Administrator Uttam Dhillon. “DEA takes seriously its obligations to both protect the public from illicit drug trafficking and ensure adequate supplies to meet the legitimate needs of patients and researchers for these substances.”
The Proposed Aggregate Production Quotas and Assessment of Annual Needs being published in the Federal Register addresses more than 250 Schedule I and II controlled substances and three List I chemicals, which include ephedrine, pseudoephedrine, and phenylpropanolamine. This reflects the total amount of substances needed to meet the country’s legitimate medical, scientific, research, industrial and export needs for the year and for the maintenance of reserve stocks. DEA endeavors to set production limits at a level required to meet these needs, without resulting in an excessive amount of these potentially harmful substances.
In setting the aggregate proposed quota (APQ), DEA considers data from many sources, including estimates of the legitimate medical need from the Food and Drug Administration; estimates of retail consumption based on prescriptions dispensed; manufacturers’ disposition history and forecasts; data from DEA’s internal system for tracking controlled substance transactions; and past quota histories. As a result of new laws and regulations that took effect in 2018, the number of factors that DEA considers in setting the APQ has increased. Information on these factors and how they were assessed appears in the Notice.
The five opioid substances were subject to special scrutiny following the enactment last year of the Substance Use-Disorder Prevention that Promotes Opioid Recovery and Treatment for Patients and Communities Act, known as the SUPPORT Act, which requires DEA to “estimate the amount of diversion of the covered substance that occurs in the United States” and “make appropriate quota reductions. DEA’s estimates of the amount of diversion that took place for each of these five opioid substances and how those estimates were calculated appear in the Notice.
Interested parties may submit public comments on the proposed APQ until 11:59 p.m. on October 10, following the instructions in the Notice. After taking the comments into account, DEA will publish another notice later in the year informing the public of the established APQ. After that, DEA allocates individual manufacturing and procurement quotas to those manufacturers that apply for them. DEA may revise a company’s quota at any time during the year if change is warranted due to increased sales or exports, new manufacturers entering the market, new product development, or product recalls.
Columbia County Man Pleads Guilty in Connection with Two Overdose DeathsRead the Press Release
ALBANY, NEW YORK – Jacob Ebel, age 32, of Niverville, New York, pled guilty today to drug conspiracy and possession charges, and admitted that he distributed heroin and fentanyl to two people who took these drugs and then died in Columbia County in July 2016. He agreed to be sentenced to 18 years in prison.
The announcement was made by United States Attorney Grant C. Jaquith; New York State Police Superintendent Keith M. Corlett; and Columbia County Sheriff David P. Bartlett.
United States Attorney Grant C. Jaquith stated: “Jacob Ebel was a merchant of death whose heroin and fentanyl killed two people in less than three weeks. Thanks to the quick and thorough work of our law enforcement partners, Ebel is being held responsible for his crimes and the pain and suffering he inflicted on two families. We will continue to pursue those who peddle this poison, while also maintaining our robust education and outreach efforts aimed at turning the tide of opiate addiction.”
State Police Superintendent Keith M. Corlett stated: “I commend our members at Troop K and our law enforcement partners for bringing this perpetrator to justice. Jacob Ebel had absolutely no regard for his victims, instead selling them a dangerous and deadly mix of illegal drugs just to make a profit. We have absolutely no tolerance for those who destroy lives, families and communities for their own personal gain.”
Columbia County Sheriff David Bartlett stated: “There should be zero tolerance for those who peddle poison on our streets. These dealers are killers and we will continue to work with our federal and state law enforcement partners to bring them to justice for their heinous behavior. I thank the U.S. Attorney’s Office, U.S. Drug Enforcement Administration, New York State Police, Columbia County District Attorney Paul Czajka and members of the Columbia County Sheriff’s Office who all worked collaboratively to deliver justice in this case.”
In pleading guilty, Ebel admitted to selling heroin, fentanyl and other controlled substances, from 2014 through July 26, 2016, in Columbia County.
Ebel admitted to dealing heroin and fentanyl first to a man identified as S.B., who overdosed on July 3, 2016 and died five days later, and then to a woman identified as S.S., who overdosed and died on July 23, 2016.
S.B., age 29, overdosed and was found unconscious in Niverville on July 3, 2016, less than a mile from Ebel’s house. A State Police investigation established that prior to the overdose, S.B. had had extensive text message communications with Ebel, and that Ebel had sold heroin and fentanyl to S.B. at about 2:15 p.m. on July 3, 2016, several hours before S.B. was found unresponsive. Inside S.B.’s vehicle, State Police located a folded, yellow sticky note with heroin and fentanyl, and “4-0” written on the outside – the amount of money that S.B. told the defendant he had in the text message conversations.
Ebel and S.B. were friends. Ebel knew that S.B. had died, but he kept dealing heroin and fentanyl.
On the morning of July 23, 2016, the Columbia County Sheriff’s Office (CCSO) responded to a house in Stuyvesant, New York, and found S.S. dead. Sheriff’s Investigators found three folded sticky notes in a small plastic bag on her bed; the notes contained heroin and fentanyl. The CCSO investigation established that Ebel had sold heroin and fentanyl to S.S.’s husband in the days prior to S.S.’s death, and that S.S., age 19, had taken these drugs and died.
Law enforcement executed a search warrant on Ebel’s house in the early morning hours of July 26, 2016. Investigators seized about 16 grams of heroin and fentanyl that Ebel intended to sell. Ebel was arrested that day and has been in custody ever since.
In his plea agreement, Ebel agreed to be sentenced to 216 months, or 18 years, in prison, to be followed by 3 years of supervised release. United States District Judge Mae A. D’Agostino will decide whether to accept or reject the recommended sentence on or before the January 8, 2019 sentencing date. If Judge D’Agostino does not agree with an 18-year sentence, Ebel would be allowed to withdraw his plea and the case would proceed to trial.
This case was the result of a joint investigation conducted by the New York State Police-Troop K and Columbia County Sheriff’s Office, with assistance from the U.S. Drug Enforcement Administration (DEA) and the office of Columbia County District Attorney Paul Czajka. The case is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Cocaine and Heroin Trafficker Sentenced to 10 Years in Federal PrisonRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Andrew Harris (58, Jacksonville) to 10 years in federal prison for conspiracy to distribute cocaine and heroin, the weight of cocaine being at least five kilograms.
Harris had pleaded guilty on June 3, 2019.
According to court documents, during 2016, Harris and others had received approximately 24 kilograms of cocaine. Harris was responsible for distributing a total of 10 kilograms in Jacksonville. He also distributed smaller quantities of heroin. On July 26, 2016, Harris was arrested by the Florida Highway Patrol.
This case was investigated by the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Frank Talbot.
Citizen of Peru Admits Illegally Reentering U.S.Read the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that CESAR RUBEN YLLESCAS, 45, a citizen of Peru last residing in Hartford, pleaded guilty today in Hartford federal court to illegally reentering the U.S. after being deported.
According to court documents and statements made in court, on August 1, 2014, Yllescas was arrested by Hartford Police for possession of narcotics. On December 21, 2015, he pleaded guilty in state court to the drug offense and to a charge of failing to appear for a related court appearance. Yllescas served approximately six months of imprisonment and was removed to Peru in June 2016.
Yllescas was arrested on May 8, 2019, in Hartford.
Yllescas is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on December 2, 2019, at which time he faces a maximum term of imprisonment of two years. He has been detained since his arrest.
This matter has been investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement. The case is being prosecuted by Assistant U.S. Attorney Margaret E. Maigret.
Chinese National Convicted at Trial of Entering the Restricted Grounds at Mar-a-Lago and Lying to U.S. Secret Service AgentsRead the Press Release
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office announced that Yujing Zhang, 33, a Chinese national, was convicted by a South Florida federal jury today of unlawful entry of restricted buildings or grounds, in violation of Title 18, United States Code, Section 1752(a)(1) (Count 1), and making false statements to the U.S. Secret Service, in violation of Title 18, United States Code, Section 1001 (Count 2) (Case No. 19CR80056).
Zhang is scheduled to be sentenced by U.S. District Judge Roy K. Altman, in Fort Lauderdale, on November 22, 2019, at 10 a.m. Zhang faces a maximum statutory sentence of 1 year in prison, up to 1 year of supervised release and up to a $1,000 fine as to Count 1, and a maximum statutory sentence of 5 years in prison, up to 3 years of supervised release and up to a $250,000 fine as to Count 2.
According to the trial record, Zhang fraudulently gained entry onto the restricted grounds at the Mar-a-Lago Club where the U.S. President and other persons protected by the U.S. Secret Service were temporarily visiting. U.S. Secret Service agents detained Zhang at the main reception area due to her suspicious actions. Zhang was then escorted off the property for further questioning. During questioning, Zhang repeatedly misrepresented to U.S. Secret Service agents that she was at the Mar-a-Lago Club to attend a “United Nations Friendship Event.”
U.S. Attorney Fajardo Orshan commended the investigative efforts of the USSS’s Miami Field Office, and the FBI’s Miami Field Office in this matter. The case is being prosecuted by Assistant U.S. Attorneys Rolando Garcia and Michael Sherwin.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Chichester Car Dealer Pleads Guilty to Financial CrimesRead the Press Release
CONCORD - Michael A. Albert, 51, of Chichester, pleaded guilty in federal court on Tuesday to structuring cash deposits from his business, Mike’s Affordable Auto, LLC, for the purpose of evading bank reporting requirements, money laundering, and evading reporting requirements with respect to cash transactions in excess of $10,000, United States Attorney Scott W. Murray announced.
According to court documents and statements made in court, Albert, who ran a used car business at locations in Concord and Chichester, knew that if he deposited cash in amounts more than $10,000, the bank was required to file reports of those transactions with the IRS. Albert structured cash deposits from his business in order to evade the reporting requirements imposed on the bank. Additionally, Albert accepted cash in amounts greater than $10,000 for the purchase of vehicles from a person who represented that the cash was proceeds of illegal drug trafficking. Finally, Albert failed to file required forms with the IRS identifying cash receipts in his business in excess of $10,000.
Albert is scheduled to be sentenced on December 17, 2019. As part of his plea agreement, he has agreed to the civil forfeiture of over $400,000.
“Federal financial laws help to ensure that businesses do not engage in money laundering or facilitate other financial crimes,” said U.S. Attorney Murray. “When those who operate businesses fail to comply with their legal obligations, they face potential criminal prosecution.”
“Federal laws that regulate the reporting of currency transactions, to include vehicles purchased for cash, are in place to detect and stop illegal activities,” said Kristina O’Connell, Special Agent in Charge of IRS Criminal Investigation’s Boston Field Office. "Individuals who engage in this type of financial fraud should know they will not go undetected. We will continue to work closely with the U.S. Attorney’s Office and our law enforcement partners to hold them accountable."
This matter was investigated by the Drug Enforcement Administration and the Internal Revenue Service, with assistance from Immigration and Customs Enforcement’s Homeland Security Investigations and the Manchester Police Department. The case is being prosecuted by Assistant U.S. Attorney Arnold Huftalen. The civil forfeiture matter is being handled by Assistant U.S. Attorney Robert Rabuck.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Charleston Man Pleads Guilty to Drug CrimeRead the Press Release
Charleston, W.Va. – A Charleston man pled guilty to a drug crime, announced United States Attorney Mike Stuart. Rahem Lipford, 36, pled guilty to possession with intent to distribute heroin.
“Heroin and firearms,” said United States Attorney Mike Stuart. “As long as law enforcement keeps finding drug dealers like Lipford, we’ll keep prosecuting them.”
Lipford admitted that on July 13, 2017, members of the Metropolitan Drug Enforcement Network Team (MDENT), executed a search warrant at his residence and located 24.94 grams of heroin. Lipford admitted to possessing the heroin with the intention of distributing it. Detectives also seized a firearm, which was present inside the residence.
Lipford faces up to 30 years in prison when sentenced on December 10, 2019.
MDENT, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Drug Enforcement Administration conducted the investigation. Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Ryan A. Saunders is handling the prosecution.
This case is being prosecuted as part of the Project Safe Neighborhoods (PSN) program, 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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Buffalo Man Pleads Guilty to Ramming FBI Property with His Car Causing Tens of Thousands of Dollars in DamageRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. — U.S. Attorney James P. Kennedy, Jr. announced today that Robert Lowe, 37, of Buffalo, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to depredation of government property. The charge carries a maximum of one year in prison and a $100,000 fine.
Assistant U.S. Attorney Paul E. Bonanno, who is handling the case, stated that on March 30, 2017, at approximately 10:45 p.m., the defendant willfully crashed his motor vehicle into two exterior gates at the Federal Bureau of Investigation office located at One FBI Plaza in Buffalo.
As a result of the crash, $889.50 had to be spent on emergency gate repairs and emergency temporary barriers. Subsequently, an additional $88,040.58 had to be spent to purchase new gates, new gate controllers, and a new guard booth. An additional $20,866.72 was spent on overtime for guards necessitated by the repair work. The total amount spent because of the crash was $109,796.80.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
Sentencing is scheduled for December 19, 2019, before Judge Arcara.
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Brothers Sentenced for Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS – United States District Judge Jane Triche Milazzo sentenced DUSTIN DINET, age 32, of New Orleans, and STEVEN DINET, age 44, of Jonesboro, Arkansas, who are brothers, for conspiring to distribute and to possess with the intent to distribute 28 grams or more of crack cocaine and 100 grams or more of heroin.
The DINETs had previously pleaded guilty to conspiring together to deal crack cocaine and heroin. The DINETs acknowledged making three sales of an ounce of crack each to an undercover source. They also admitted that approximately ¼ kilogram of heroin and $78,000 discovered during the execution of a search warrant at a residence in Marrero belonged to them. DUSTIN DINET, who qualified as a Career Criminal because of prior drug trafficking convictions, was sentenced to 188 months in prison and 4 years of supervised release. STEVEN DINET was ordered to serve 37 months in prison and 3 years of supervised release.
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 safe for everyone. Former Attorney General Jeff Sessions made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
U.S. Attorney Strasser praised the work of the Drug Enforcement Administration and the Jefferson Parish Sheriff’s Office in investigating this matter. Assistant U.S. Attorney David Haller is in charge of the prosecution.
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Beacon Falls Man Involved in Marijuana Trafficking Ring Sentenced to 55 Months in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that TERRELL GIVENS, 34, of Beacon Falls, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 55 months of imprisonment, followed by three years of supervised release, for his involvement in a large-scale marijuana trafficking conspiracy.
According to court documents and statements made in court, in 2016, the Federal Aviation Administration began investigating a Piper single-engine aircraft, owned by Donald Burns of Milford, that was making regular flights between Stratford, Connecticut, and northern California via the southwest United States. On June 28, 2017, Burns flew the aircraft from northern California to Lubbock, Texas. The next day, Burns flew the aircraft from Texas to Arkansas, and then to West Virginia and Connecticut, where he landed in the evening at Sikorsky Airport in Stratford. After it landed, a law enforcement search of the plane revealed approximately 400 pounds of marijuana in vacuum-sealed packages, and Burns was arrested. Investigators determined that the marijuana was intended for Robert Capelli, Scott Bodnar, Terrell Givens and others to distribute in Connecticut.
The investigation revealed that, for more than two years, Capelli and his associates earned millions of dollars by trafficking nearly two tons of marijuana from California to Connecticut. Members of the conspiracy also laundered more than $6 million to purchase marijuana in California, maintain properties for distribution in Connecticut, pay Burns to transport the marijuana, and for other expenses related to the conspiracy.
Givens was arrested on June 12, 2018. On May 3, 2019, he pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, 1,000 kilograms or more of marijuana, and one count of conspiracy to launder monetary instruments.
Judge Arterton also ordered Givens to forfeit his 2009 Jaguar XF and jewelry valued at approximately $8,000, which were seized during the investigation.
Givens, who is released on a $300,000 bond, is required to report to prison on October 23, 2019.
On May 2, 2019, Bodnar, of Ansonia, pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, 1,000 kilograms or more of marijuana, and one count of conspiracy to launder monetary instruments. On September 4, 2019, he was sentenced to 55 months of imprisonment and ordered to forfeit his 2012 Toyota Camry.
On July 26, 2019, a jury found Capelli, of Milford, guilty of one count of conspiracy to distribute, and to possess with intent to distribute, 100 kilograms or more of marijuana, and one count of possession with intent to distribute 100 kilograms or more of marijuana. He was found not guilty of one count of conspiracy to launder monetary instruments, and one count of money laundering. Capelli has forfeited approximately $90,000 to date, and additional forfeiture proceedings are pending.
On May 6, 2019, Burns, of Milford, pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, 1,000 kilograms or more of marijuana. He also has agreed to forfeit the Piper aircraft.
Capelli and Burns await sentencing.
This matter has been investigated by the Drug Enforcement Administration’s New Haven Task Force, the Federal Aviation Administration’s Law Enforcement Assistance Program (LEAP), the Customs and Border Protection’s Air and Marine Operations Center, the Internal Revenue Service – Criminal Investigation Division, the U.S. Marshals Service, the Stratford, Derby and West Haven Police Departments, and the Second Judicial Drug Task Force in Jonesboro, Arkansas.
The case is being prosecuted by Assistant U.S. Attorneys Rahul Kale and Marc Silverman.
Armed Robber Sentenced to 6 YearsRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Christian Killian, 33, Madison, Wisconsin, was sentenced today by U.S. District Judge James D. Peterson to six years in federal prison, for robbing a Pizza Hut restaurant while armed. Killian pleaded guilty to these charges on May 6, 2019. His prison term will be followed by a three-year period of supervised release.
On January 29, 2019, at approximately 11:50 a.m., Killian robbed a Pizza Hut restaurant on South Park Street, Madison. Killian demanded money from the clerk and when the clerk asked if he was joking, Killian opened his coat and held a revolver close to his chest. The clerk complied with the demand and gave Killian the money from the register.
Killian fled from the store and citizen witnesses reported that he ran into the Arboretum. Madison Police officers responded to the Arboretum and saw Killian in possession of a firearm, but Killian kept running and ignored commands to stop. Officers spent over two hours looking for Killian in frigid temperatures and below-zero wind chills. When they arrested Killian, officers recovered on his person a loaded speed loader (used to quickly load a revolver) and the stolen money.
At the time of the offense, Killian was out on bond in two felony drunk driving cases (5th or 6th), in Dane County.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach involves collaboration by federal, state and local law enforcement agencies, prosecutors and communities to prevent and deter gun violence.
The charges against Killian were the result of an investigation conducted by the Madison Police Department. The prosecution of the case has been handled by Assistant U.S. Attorney Rita M. Rumbelow.
Armed Drug Trafficker Receives 10 Years in Federal PrisonRead the Press Release
WILMINGTON — United States Attorney Robert J. Higdon, Jr. announced that United States Judge District James C. Dever III sentenced GERICK TURNER, 41, of New Hanover County to 120 months’ imprisonment, followed by 5 years of supervised release.
On April 15, 2019, TURNER pled guilty to possession with the intent to distribute 500 grams or more of cocaine, 28 grams or more of crack cocaine and a quantity of heroin, a separate count of possession with intent to distribute a quantity of heroin and possession of a firearm in furtherance of a drug trafficking crime.
On September 4, 2018, narcotics officers with the New Hanover County Sheriff’s Office received information that TURNER was transporting narcotics from Charlotte to Wilmington, North Carolina. Detectives performed a traffic stop on his rental car in Wilmington. After a trained K-9 detected the odor of narcotics emitting from the car, TURNER acknowledged to the officer that they were going to find drugs. A search of the vechible resulted in the discovery of more than more than 900 grams of cocaine, 50 grams of crack cocaine and 965 bags of heroin.
On September 5, 2018, New Hanover County Detectives searched TURNER’S residence in Wilmington and found an additional 30 grams of heroin, a loaded .44 caliber handgun and packaging material and a cutting agent used in the distribution of heroin and crack cocaine.
This prosecution is part of an extensive investigation by the United States Attorney’s Office’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This case is also part of the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The investigation of this case was conducted by the Federal Bureau of Investigation’s Coastal Carolina Continuing Criminal Enterprise Task Force which includes task force officers from the New Hanover County Sheriff’s Office, Wilmington Police Department, the North Carolina State Bureau of Investigation, and the New Hanover County Sheriff’s Office Vice and Narcotics Division. Assistant United States Attorney Timothy Severo prosecuted the case on behalf of the government.
281 Arrested Worldwide in Coordinated International Enforcement Operation Targeting Hundreds of Individuals in Business Email Compromise SchemesRead the Press Release
WASHINGTON – Federal authorities announced September 10, 2019 a significant coordinated effort to disrupt Business Email Compromise (BEC) schemes that are designed to intercept and hijack wire transfers from businesses and individuals, including many senior citizens. Operation reWired, a coordinated law enforcement effort by the U.S. Department of Justice, U.S. Department of Homeland Security, U.S. Department of the Treasury, U.S. Postal Inspection Service, and the U.S. Department of State, was conducted over a four-month period, resulting in 281 arrests in the United States and overseas, including 167 in Nigeria, 18 in Turkey and 15 in Ghana. Arrests were also made in France, Italy, Japan, Kenya, Malaysia, and the United Kingdom (UK). The operation also resulted in the seizure of nearly $3.7 million.
BEC, also known as “cyber-enabled financial fraud,” is a sophisticated scam often targeting employees with access to company finances and businesses working with foreign suppliers and/or businesses that regularly perform wire transfer payments. The same criminal organizations that perpetrate BEC also exploit individual victims, often real estate purchasers, the elderly, and others, by convincing them to make wire transfers to bank accounts controlled by the criminals. This is often accomplished by impersonating a key employee or business partner after obtaining access to that person’s email account or sometimes done through romance and lottery scams. BEC scams may involve fraudulent requests for checks rather than wire transfers; they may target sensitive information such as personally identifiable information (PII) or employee tax records instead of, or in addition to, money; and they may not involve an actual “compromise” of an email account or computer network. Foreign citizens perpetrate many BEC scams. Those individuals are often members of transnational criminal organizations, which originated in Nigeria but have spread throughout the world.
“The Department of Justice has increased efforts in taking aggressive enforcement action against fraudsters who are targeting American citizens and their businesses in business email compromise schemes and other cyber-enabled financial crimes,” said Deputy Attorney General Jeffrey Rosen. “In this latest four-month operation, we have arrested 74 people in the United States and 207 others have been arrested overseas for alleged financial fraud. The coordinated efforts with our domestic and international law enforcement partners around the world has made these most recent actions more successful. I want to thank the FBI, more than two dozen U.S. Attorney’s Offices, U.S. Secret Service, U.S. Postal Inspection Service, Homeland Security Investigations, IRS Criminal Investigation, U.S. Department of State’s Diplomatic Security Service, our partners in Nigeria, Ghana, Turkey, France, Italy, Japan, Kenya, Malaysia, and the UK, and our state and local law enforcement partners for all of their hard work to combat these fraud schemes and protect the hard-earned assets of our citizens. Anyone who engages in deceptive practices like this should know they will not go undetected and will be held accountable.”
“The FBI is working every day to disrupt and dismantle the criminal enterprises that target our businesses and our citizens,” said FBI Director Christopher A. Wray. “Cooperation is the backbone to effective law enforcement; without it, we aren’t as strong or as agile as we need to be. Through Operation reWired, we’re sending a clear message to the criminals who orchestrate these BEC schemes: We’ll keep coming after you, no matter where you are. And to the public, we’ll keep doing whatever we can to protect you. Reporting incidents of BEC and other internet-enabled crimes to the IC3 brings us one step closer to the perpetrators.”
“The Secret Service has taken a multi-layered approach to combating Business Email Compromise schemes through our Global Investigative Operations Center (GIOC),” said U.S. Secret Service Director James M. Murray. “Domestically, the GIOC assists Secret Service Field Offices and other law enforcement partners with analysis and investigative tactics to enhance the impact of local BEC investigations. Internationally, the GIOC targets and identifies transnational organized crime networks that perpetrate these cyber-enabled financial fraud schemes. Through this approach, the Secret Service continues to strive to protect the citizens of the United States and our financial infrastructure from these complex crimes.”
“Homeland Security Investigations (HSI), together with its law enforcement partners, has proven once again, that cyber-enabled financial fraud will not be tolerated in the United States,” said Acting Director Matthew T. Albence of U.S. Immigration and Customs Enforcement (ICE). “Operation reWired sends a clear message to criminals, that no matter how or where crimes are committed, we will do everything within our means to dismantle criminal enterprises that seek to manipulate U.S. institutions and taxpayers.”
“The consequences of this type of fraud scheme are far reaching, affecting not only people in the United States, but also across the world,” said Chief Postal Inspector Gary Barksdale. “This investigation is just another example of how effective law enforcement agencies can be when they join forces. By working together, we can keep our communities and our vulnerable populations safe from financial exploitation. The U.S. Postal Inspection Service is proud to be at the forefront of the fight against fraud and Postal Inspectors will continue to adapt to the ever changing landscape to stop the scammers and protect our customers.”
“In unraveling this complex, nationwide identity theft and tax fraud scheme, we discovered that the conspirators stole more than 250,000 identities and filed more than 10,000 fraudulent tax returns, attempting to receive more than $91 million in refunds,” said Chief Don Fort of IRS Criminal Investigation. “We will continue to work with our international, federal and state partners to pursue all those responsible for perpetrating this fraud, preying on innocent victims and attempting to cheat the U.S. out of millions of dollars.”
“The investigation of these crimes crossed international borders,” said Director Todd J. Brown of the U.S. Department of State’s Diplomatic Security Service (DSS). “Today’s charges are another successful example of our commitment to working together with both foreign colleagues abroad as well as local, state and federal law enforcement partners here at home in the pursuit of those who commit cyber-related financial crimes.”
A number of cases involved international criminal organizations that defrauded small to large sized businesses, while others involved individual victims who transferred high dollar funds or sensitive records in the course of business. The devastating effects these cases have on victims and victim companies affect not only the individual business but also the global economy. According to the Internet Crime Complaint Center (IC3), nearly $1.3 billion in loss was reported in 2018 from BEC and its variant, Email Account Compromise (EAC), nearly twice as much as was reported the prior year. BEC and EAC are prevalent scams and the Justice Department along with our partners will continue to aggressively pursue and prosecute the perpetrators, including money mules, regardless of where they are located.
Money mules may be witting or unwitting accomplices who receive ill-gotten funds from the victims and then transfer the funds as directed by the fraudsters. The money is wired or sent by check to the money mule who then deposits it in his or her own bank account. Usually the mules keep a fraction for “their trouble” and then wire the money as directed by the fraudster. The fraudsters enlist and manipulate the money mules through romance scams or “work-at-home” scams, though some money mules are knowing co-conspirators who launder the ill-gotten gains for profit.
BEC scams are related to, and often conducted together with, other forms of fraud such as:
- “Romance scams,” where victims are lulled into believing they are in a legitimate relationship, and are tricked into sending or laundering money under the guise of assisting the paramour with an international business transaction, a U.S. visit, or some other cover story;
- “Employment opportunities scams,” where victims are convinced to provide their PII to apply for work-from-home jobs, and, once “hired” and “overpaid” by a bad check, to wire the overpayment to the “employer’s” bank before the check bounces;
- “Fraudulent online vehicle sales scams,” where victims are convinced they are purchasing a nonexistent vehicle and must pay for it by sending the codes of prepaid gift cards in the amount of the agreed upon sale price to the “seller;”
- “Rental scams,” where a scammer agrees to rent a property, sends a bad check in excess of the agreed upon deposit, and requests the overpayment be returned via wire before the check bounces; and
- “Lottery scams,” where victims are convinced they won an international lottery but must pay fees or taxes before receiving the payout.
Starting in May 2019, this coordinated enforcement action targeted hundreds of BEC scammers. Law enforcement agents executed over 214 domestic actions including arrests, money mule warning letters, and asset seizures and repatriations totaling nearly $3.7 million. Local and state law enforcement partners on FBI task forces across the country, with the assistance of multiple District Attorney’s Offices, also arrested alleged money mules for their role in defrauding victims.
Among those arrested on federal charges in BEC schemes include:
- Following an investigation led by the FBI’s Chicago Division, Brittney Stokes, 27, of Country Club Hills, Illinois, and Kenneth Ninalowo, 40, of Chicago, Illinois, were charged in the Northern District of Illinois with laundering over $1.5 million from proceeds of BEC scams. According to the indictment, a community college and an energy company were defrauded into sending approximately $5 million to fraudulent bank accounts controlled by the scammers. Banks were able to freeze approximately $3.6 million of the $5 million defrauded in the two schemes. Law enforcement officials seized a 2019 Range Rover Velar S from Stokes and approximately $175,909 from Stokes and Ninalowo.
- As a result of a joint investigation by the FBI, HSI, and DSS, Opeyemi Adeoso, 44, of Dallas, Texas, and Benjamin Ifebajo, 45, of Richardson, Texas, were arrested and charged in the Northern District of Texas with bank fraud, wire fraud, money laundering, and conspiracy. Adeoso and Ifebajo are alleged to have received and laundered at least $3.4 million. In furtherance of their scheme, they are alleged to have assumed 12 fictitious identities and defrauded 37 victims from across the United States.
- As part of a larger investigation by the FBI and the USSS in Miami, Yamel Guevara Tamayo, 36, of Miami, Florida, and Yumeydi Govantes, 39, of Miami, Florida, were charged in the Southern District of Florida with laundering more than $950,000 of proceeds of BEC scams. The two individuals were also responsible for recruiting approximately 18 other individuals to serve as money mules, who laundered proceeds of BEC scams for an international money laundering network. The victims of the BEC scams included title companies, corporations, and individuals. The individuals were indicted June 18, 2019 and arrested June 20, 2019. The change of plea for both individuals is scheduled for Sept. 16.
- In an investigation by FBI Atlanta, two individuals were charged in the Northern District of Georgia for their involvement in a Nigeria-based BEC scheme that began with a $3.5 million transfer of funds fraudulently misdirected from a Georgia-based health care provider to accounts across the United States. Two Nigerian nationals, Emmanuel Igomu, 35, of Atlanta, Georgia, and Jude Balogun, 29, of San Francisco, California, have been arrested on charges of aiding and abetting wire fraud for their part in receiving and transmitting monies derived from the BEC.
- Following an investigation by the FBI, Cyril Ashu, 34, of Austell, Georgia; Ifeanyi Eke, 32, of Sandy Springs, Georgia; Joshua Ikejimba, 24, of Houston, Texas; and Chinedu Ironuah, 32, of Houston, Texas, were charged in the Southern District of New York with one count of conspiracy to commit wire fraud and one count of wire fraud for their involvement in a Nigeria-based BEC scheme that impacted hundreds of victims in the United States, with losses in excess of $10 million.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The cases were investigated by the FBI, U.S. Secret Service, U.S. Postal Inspection Service, ICE’s Homeland Security Investigations (HSI), IRS Criminal Investigation and U.S. Department of State’s Diplomatic Security Service. U.S. Attorney’s Offices in the Districts of Arizona; Central, Eastern and Southern California; Colorado; Delaware; Southern Florida; Northern Georgia; Northern Illinois; Kansas; Eastern Louisiana; Massachusetts; Nebraska; Nevada; Southern New York; Middle North Carolina; Northern Ohio; Oregon; Northern, Western and Southern Texas; Western Tennessee; Eastern Virginia; Eastern Washington, and elsewhere have ongoing investigations some of which have resulted in arrests in Nigeria. The Justice Department’s Computer Crime and Intellectual Property Section, Money Laundering and Asset Recovery Section, and Office of International Affairs of the Criminal Division provided assistance. District Attorney’s Offices of Harris County, Texas; Fort Bend County, Texas; and Washington County, Arkansas are handling state prosecutions. Additionally, private sector partners and the Nigerian Economic and Financial Crimes Commission, Ghana Police Service (GPS) and Economic and Organized Crime Office (EOCO), Turkish National Police (TNP) Cyber Department, Direction Centrale de la Police aux Frontieres (PAF) of France, Squadra Mobile Di Caserta and Italian National Police, National Police Agency of Japan, Tokyo Metropolitan Police Department (TPMD), Royal Malaysian Police, Directorate of Criminal Investigations (DCI) of Kenya and the National Crime Agency (NCA), North Wales Police, Metropolitan Police Service and Hertfordshire Constabulary of the UK provided significant assistance.
This operation serves as a model for international cooperation against specific threats that endanger the financial well-being of each member country’s residents. Deputy Attorney General Rosen expressed gratitude for the outstanding efforts of the participating countries, including law enforcement actions that were coordinated and executed by the Economic and Financial Crimes Commission (EFCC) in Nigeria to curb business email compromise schemes that defraud businesses and individuals alike.
The Justice Department’s efforts to confront the growing threat of cyber-enabled financial fraud led to the formation of the BEC Counteraction Group (BCG), which assists U.S. Attorney’s Offices and the Department with the coordination of BEC cases and the centralization of related expertise. The BCG facilitates communication and coordination between federal prosecutors, serves as a bridge between federal prosecutors and federal agents, centralizes and manages institutional knowledge and training, and participates in efforts to educate the public about protecting themselves and their organizations from BEC scams.
The BCG draws upon the expertise of the following sections within the Department’s Criminal Division: the Computer Crime and Intellectual Property Section, which regularly investigates and prosecutes cases involving computer crimes, including network intrusions; the Fraud Section, which manages complex litigation involving sophisticated fraud schemes; the Money Laundering and Asset Recovery Section, which brings experience in seizing assets obtained through criminal activity; the Office of International Affairs, which plays a central role in securing international evidence and extradition; and the Organized Crime and Gang Section, which contributes strategic guidance in prosecuting complex transnational criminal cases.
Operation reWired was funded and coordinated by the FBI and the Justice Department’s International Organized Crime Intelligence and Operations Center (IOC-2) and follows “Operation Wire Wire,” the first coordinated enforcement action targeting hundreds of BEC scammers. That effort, announced in June 2018, resulted in the arrest of 74 individuals, the seizure of nearly $2.4 million, and the disruption and recovery of approximately $14 million in fraudulent wire transfers.
Victims are encouraged to file a complaint online with the IC3 at bec.ic3.gov. The IC3 staff reviews complaints, looking for patterns or other indicators of significant criminal activity, and refers investigative packages of complaints to the appropriate law enforcement authorities in a particular city or region. The FBI provides a variety of resources relating to BEC through the IC3, which can be reached at www.ic3.gov.
For more information on BEC scams, visit: https://www.ic3.gov/media/2019/190910.aspx.# # #
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27 Year Old Klemme, IA Man Sentenced to Federal PrisonRead the Press Release
A man who was in possession of a stolen firearm and methamphetamine was sentenced Tuesday, September 11, 2019 to more than 12 years in federal prison.
Jacob Dean Ganseveld, age 27, from Klemme, Iowa, received the prison term after a guilty plea to one count of possession with intent to distribute methamphetamine and one count of possession of a firearm in furtherance of a drug trafficking crime.
In a plea agreement, Ganseveld admitted to distributing methamphetamine. On January 6, 2019, law enforcement stopped Ganseveld for multiple traffic violations. An officer’s K9 smelled a controlled substance coming from Ganseveld’s car. After searching the car, police located eight baggies containing methamphetamine, marijuana, multiple syringes, as well as a digital scale with methamphetamine residue. Police also discovered a revolver and a box of ammunition. Ganseveld admitted to possessing the gun in furtherance of a drug trafficking crime as well as distributing methamphetamine.
Ganseveld was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Ganseveld was sentenced to 145 months’ imprisonment and must pay a special assessment of $200. Ganseveld must also serve a 4-year term of supervised release after the prison term. There is no parole in the federal system.
Ganseveld 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 Jack Lammers and investigated by Hancock County Sheriff’s Office, Garner Police Department and the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-3012.
10 September 2019
Ymer Shahini Pleads Guilty to Securities Fraud Conspiracy in Connection with Scheme to Defraud Investors and ShareholdersRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that YMER SHAHINI pled guilty today before United States District Judge P. Kevin Castel in connection with his role in a scheme to defraud shareholders of a publicly traded company and the investing public.
U.S. Attorney Geoffrey S. Berman said: “Ymer Shahini has now admitted to his vital role in a multimillion-dollar fraud. He knowingly served as a straw man to conceal beneficial ownership of stock, which facilitated a fraudulent scheme that reaped tens of millions in illegal profits.”
According to the allegations contained in the Indictment:
From 2009 to 2011, YMER SHAHINI, along with co-defendants Jason Galanis, John Galanis, Derek Galanis, Gary Hirst, and Gavin Hamels, engaged in a scheme to defraud the shareholders of a publicly traded company called Gerova Financial Group, Ltd. (“Gerova”), and the investing public, by obtaining secret control over millions of shares of Gerova stock and then manipulating the market for the stock as the defendants caused their secretly held shares to be sold. As part of the scheme, the defendants fraudulently generated demand for Gerova stock by bribing investment advisers to purchase for client accounts the Gerova stock that was sold by the defendants, thereby enabling the defendants to cash out from the scheme and make millions in illegal profits.
As a part of the scheme to defraud, Jason Galanis obtained such control over Gerova so as to be able to cause Gerova to enter into transactions of his design, and for his benefit, including the issuance of Gerova stock. Jason Galanis obtained this control without identifying himself as an officer or director of Gerova to avoid the SEC-imposed bar that prohibited him from holding such positions at publicly traded companies. Among other means and methods, Jason Galanis, with the assistance of Gary Hirst, caused more than five million shares of Gerova stock, which represented nearly half the company’s public float and which was intended for Jason Galanis’s ultimate benefit, to be issued to and held in the name of YMER SHAHINI, who knowingly served as a foreign nominee for Jason Galanis. SHAHINI, Jason Galanis, John Galanis, Derek Galanis, and Hirst understood that the purpose of the stock grant to SHAHINI was to disguise Jason Galanis’s ownership interest in the stock, and to evade the SEC’s regulations for issuing unregistered shares of stock.
At the same time, and as a further part of the scheme to defraud, John Galanis and Derek Galanis, among others, with the knowledge and approval of YMER SHAHINI and Jason Galanis, opened and managed brokerage accounts in the name of SHAHINI (the “SHAHINI Accounts”), effected the sale of Gerova stock from the SHAHINI Accounts, and received and concealed the proceeds, knowing that this activity was designed to conceal from the investing public Jason Galanis’s ownership of and control over the Gerova stock.
Jason Galanis also fraudulently induced investment advisers, including Gavin Hamels and others, to purchase shares of Gerova stock in the investment advisers’ client accounts by offering compensation and/or other benefits to the respective investment adviser. By causing the purchase of Gerova stock at the time, quantity, and/or price of their choosing, Jason Galanis was able to, among other things, effectuate the sale of large quantities of Gerova stock from the SHAHINI Accounts that Jason Galanis controlled while artificially maintaining the price of Gerova stock through coordinated match trading. Such coordinated trading served to manipulate the market for Gerova stock and deceive the investing public. As a result, Jason Galanis and his co-conspirators reaped nearly $20 million in profits.
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SHAHINI, 49, a citizen of Kosovo, was the first defendant extradited to the United States pursuant to the extradition treaty between the United States and the Republic of Kosovo, which went into effect on June 13, 2019. SHAHINI pled guilty to one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison. SHAHINI will be sentenced by Judge Castel on December 12, 2019, at 2:15 p.m.
The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Berman praised the work of the United States Postal Inspection Service and the Federal Bureau of Investigation, and thanked the U.S. Securities and Exchange Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Brian Blais, Rebecca Mermelstein, and Elizabeth Espinosa are in charge of the prosecution.
Winnebago Man Sentenced for Sexual Abuse of a MinorRead the Press Release
United States Attorney Joe Kelly announced that Ricky T. Wolfe, 19, of Winnebago, was sentenced today in federal court of sexual abuse of a minor. Senior United States District Court Judge Laurie Smith Camp sentenced Wolfe to 18 months in prison. Wolfe will begin a five-year term of supervised release following his release from prison.
Wolfe, then 18, engaged in a sexual act with a 13-year-old on the Winnebago Reservation in December 2018. He claimed it was consensual. Minors do not have the capacity to consent and individuals who are 18 or older and more than four years older than a child under the age of 16 violate federal law.
This case was investigated by the Winnebago Police Department and the Federal Bureau of Investigation.
West Virginia Pharmacist Found Guilty of Drug Trafficking in Eastern KentuckyRead the Press Release
PIKEVILLE, Ky.— Jackson Noel, a pharmacist operating Buffalo Drug Inc., in Buffalo WV., was found guilty on Tuesday of conspiring to dispense and distribute oxycodone and oxymorphone.
Proof at trial established that as part of the conspiracy Noel unlawfully dispensed oxycodone and oxymorphone pills from the pharmacy to out-of-state customers, including customers from Kentucky. Noel dispensed the pills on a cash only basis.
According to the indictment, Noel began conspiring and distributing the drugs in June 2015 through December 2016 in Pike County, the Eastern District of Kentucky, and elsewhere.
Noel will be sentenced in December 2019 and faces up to 20 years in prison, as well as a $1 million fine and at least three years of supervision after release.
“The defendant’s unlawful dispensing of powerful opioid pills contributed to the crisis currently affecting the Appalachian region, and our District, specifically,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “The jury’s verdict ensures that the defendant will be held accountable for his actions. I commend the efforts of the various law enforcement and regulatory agencies who played a role in this investigation.”
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Dan Dodds, Acting Special Agent in Charge of the DEA; and Richard W. Sanders, Commissioner, Kentucky State Police jointly announced the jury’s verdict.
The investigation was conducted by the DEA, KSP, Kentucky Office of the Attorney General, the Putnam County, West Virginia, Sheriff’s Office, and the West Virginia Board of Pharmacy. The United States was represented by Assistant U.S. Attorney Sam Dotson.
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United States Attorney Mike Stuart Issues Statement on Fayette County's HIDTA DesignationRead the Press Release
FAYETTE COUNTY WILL NOW BE PART OF THE APPALACHIA HIDTA (AHIDTA)
CHARLESTON, W.VA. – United States Attorney Mike Stuart issued the following statement about Fayette County’s designation as a High Intensity Drug Trafficking Area (HIDTA) by the White House Office of National Drug Control Policy (ONDCP):
“West Virginia and the Southern District is once again the recipient of great news in the fight against drug peddlers. This is big news and Fayette County earned its HIDTA designation. I was happy to go to bat for Fayette County throughout the designation process, but it was Fayette County law enforcement that hit the ball out of the park. The law enforcement agencies working in Fayette County earned this designation through hard work, collaboration and leadership committed to a team approach. Operation Mountaineer Highway is a great example of collaborative, team oriented law enforcement in which agencies including the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the West Virginia State Police, the Central West Virginia Drug and Violent Crime Task Force, the West Virginia National Guard, the Fayetteville Police Department, the Fayette County Sheriff’s Department, the Oak Hill Police Department, the National Park Service, the Fayette County Prosecuting Attorney’s Office and many others, worked together, collaboratively and in close partnership, to dismantle a multi-state, poly-drug network operating from South Carolina to New Jersey. The ONDCP and the AHIDTA have provided enormous resources and support in our fight against drug dealers, drug thugs, and drug trafficking organizations that wrought devastation, despair, and death to our communities. It is an honor to work arm-in-arm with our partners in the Appalachia HIDTA. Congratulations Fayette County on your hard-earned designation.”
The ONDCP press release on new HIDTA county designations can be found here: https://trumpwhitehouse.archives.gov/briefings-statements/ondcp-designates-13-new-counties-curb-drug-trafficking/
Follow us on Twitter: SDWVNews and USAttyStuart
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Un hombre de Mississippi condenado a 11 años por quemar una cruzRead the Press Release
El Honorable Juez Keith Starrett, del Tribunal Federal de Distrito para el Distrito Sur de Mississippi, condenó al acusado Louie Bernard Revette, de 38 años de edad, a 11 años de cárcel por cargos federales que se basan en su quema de cruces del 24 de octubre del 2017 en Seminary, Mississippi. Previamente, Revette se había declarado culpable el 12 de abril del 2019 a un cargo de interferencia al derecho a la vivienda, lo que es una vulneración de derechos civiles, y un cargo de confabulación a emplear un incendio para cometer un delito federal grave. Revette, junto con un coconspirador que él había reclutado, construyó y quemó una cruz de madera cerca de la casa de la víctima, M.H., un menor de edad que vivía en una zona residencial de Seminary habitada principalmente por afroestadounidenses. Quemó la cruz para amenazar, asustar e intimidar a M.H. y a otros residentes afroestadounidenses por motivos de su raza y color de piel y por vivir en y ocupar residencias en esa zona de Seminary.
«El acusado aterrorizó a miembros comunitarios sencillamente por motivos de su raza y el lugar donde vivían», afirmó el Fiscal General Auxiliar de la División de Derechos Civiles, Eric Dreiband. «El Departamento de Justicia no tolerará estos actos de odio y seguiremos enjuiciando delitos de odio como este en la medida que lo permita la ley».
«Cualquier individuo que infunda temor y terror en nuestros vecinos y conciudadanos por motivos del color de su piel se les aplicará, desde la Fiscalía Federal, todo el peso de la ley», declaró Mike Hurst, el Fiscal Federal para el Distrito Sur de Mississippi. «No hay un lugar en nuestra sociedad o nación para este tipo de comportamiento, y haremos todo lo posible por prevenir estos actos racistas y enjuiciar a aquellos que estén decididos a cometer estos delitos».
«Todo vecino de Mississippi tiene derecho a sentirse seguro en su comunidad, pero delitos como este no hacen más que reabrir viejas cicatrices que todavía se están curando», dijo Michelle A. Sutphin, la Agente Especial Encargada del FBI en Mississippi. «El FBI, junto con nuestros socios, no tolerará delitos motivados por el odio y perseguiremos activamente a cualquiera que los cometa».
Este caso fue investigado por la Oficina Local del FBI en Jackson, Mississippi, incluyendo el Equipo de Trabajo del FBI para promover las Calles Seguras y el Equipo de Trabajo de Jackson contra la Corrupción Pública. Julia Gegenheimer, Consejera Especial de Litigios de la División de Derechos Civiles del Departamento de Justicia, y Candace Mayberry, Fiscal Federal Auxiliar para el Distrito Sur de Mississippi, enjuiciaron el caso.
Tucson Couple Sentenced to 5 Years Prison for Weapons SmugglingRead the Press Release
TUCSON, Ariz. – On September 3, 2019, Michael Justin Huynh, 29, of Tucson, Arizona, was sentenced by U.S. District Court Judge Jennifer G. Zipps to 63 months’ imprisonment. Huynh’s co-defendant, Katie Ellen O’Brien, 28, also of Tucson, was sentenced by Judge Zipps to 60 months’ imprisonment on January 16, 2019. Both had previously pleaded guilty to smuggling AK-type and .50 caliber semiautomatic assault rifles from the United States into Mexico.
Between June of 2017 and January of 2018, Huynh and O’Brien together purchased a total of at least 16 AK-type semiautomatic rifles and three .50 caliber semiautomatic rifles. They purchased these firearms for another individual whom they knew was a drug trafficker, and provided the firearms to the trafficker with the knowledge that they would be smuggled into Mexico and provided to a criminal organization.
The investigation in this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with assistance from the United States Postal Service Office of Inspector General. The prosecution was handled by Angela W. Woolridge, Assistant U.S. Attorney, District of Arizona, Tucson.
Stamford Man Sentenced to Prison for Cocaine Distribution OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that NORMAN PETERS, also known as “Ski,” 38, of Stamford, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 18 months of imprisonment, followed by three years of supervised release, for cocaine distribution offenses.
According to court documents and the evidence presented during his trial, between approximately September 2015 and May 2016, Bobby Gutierrez, also known as “B.O.,” and others, including his brother Wilfredo Gutierrez, conspired to distribute at least 10 kilograms of heroin in Fairfield County. Bobby Gutierrez and others also acquired kilogram quantities of cocaine from sources located in Florida and New York and sold the drug locally.
On April 1, 2016, Peters was intercepted over a court-authorized wiretap arranging to purchase 14 grams of cocaine from Gutierrez. Peters was then observed meeting with Gutierrez at B & B Deli in Bridgeport, which was owned by the Gutierrez family and served as a hub for drug dealing. Investigators stopped Peters after he drove from Bridgeport to Stamford. A search of his person revealed approximately 14 grams of cocaine.
On February 21, 2019, Peters was convicted after trial of one count of possession with intent to distribute cocaine, and one count of use of a telephone to facilitate a drug trafficking felony.
On November 21, 2016, Bobby Gutierrez pleaded guilty to one count of conspiracy to possess with intent to distribute 500 grams or more of cocaine and one count of conspiracy to possess with intent to distribute 100 grams or more of heroin. On April 24, 2017, he was sentenced to 160 months of imprisonment and was ordered to forfeit $171,462 in cash that was seized during the investigation.
On March 16. 2017, Wilfredo Gutierrez was sentenced to 180 months of imprisonment.
This investigation was conducted by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force, Stamford Police Department, Norwalk Police Department and Connecticut State Police. The case was prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and Elena L. Coronado.
Stamford Man Arraigned on Firearm ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that KEVIN GENIS, 26, of Stamford, has been charged by indictment with one count of possession of a firearm by a previously convicted felon.
The indictment was returned by a grand jury in New Haven on August 20, 2019. Genis appeared today before U.S. Magistrate Judge Robert M. Spector in New Haven and entered a plea of not guilty to the charge. Genis has been detained since his arrest on June 27, 2019.
As alleged in court documents, on May 28, 2019, an individual working with law enforcement purchased a Century Arms International 7.62 caliber AK pistol and 10 rounds of ammunition from Genis for $900.
It is further alleged that, in November 2015, Genis was convicted in state court of three counts of possession with intent to sell narcotics.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
If convicted of the offense, Genis faces a maximum term of imprisonment of 10 years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Stamford Police Department. The case is being prosecuted by Assistant U.S. Attorney Maria del Pilar Gonzalez.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
St. Croix Man Sentenced to 41 Months for Possession of a Firearm while Under Indictment for Robbery, Assault, and Other Firearms ChargesRead the Press Release
St. Croix, USVI – United States Attorney Gretchen C.F. Shappert announced today that Ameade Williams, 24, of St. Croix, was sentenced to 41 months of incarceration for possession of a firearm while under indictment by District Court Judge Wilma A. Lewis on September 9, 2019. Judge Lewis also ordered Williams to pay a fine in the amount of $1,000.00, to supervised release for three years, and to pay a special assessment of $100.00.
On September 11, 2018, Virgin Islands police and other law enforcement officers executed a search warrant at the Williams’ residence located at No. 4E Two Williams, Frederiksted, St. Croix, Virgin Islands. During the search, police uncovered a .223 Kel Tec pistol with two attached loaded magazines each containing 30 live rounds on a living room couch. They also uncovered a 9mm firearm loaded with 13 rounds. Firearm analysis revealed that both firearms were operable. Williams admitted that the firearms belonged to him. At the time of the search he was facing robbery, assault and firearm charges in the Superior Court of the Virgin Islands in an unrelated matter.
The case was investigated by the Virgin Islands Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorney Alphonso Andrews, Jr.
St. Croix Man Sentenced to 41 Months for Possession of a Firearm While Under Indictment for Robbery, Assault, and Other Firearms ChargesRead the Press Release
St. Croix, USVI – United States Attorney Gretchen C.F. Shappert announced today that Ameade Williams, 24, of St. Croix, was sentenced to 41 months of incarceration for possession of a firearm while under indictment by District Court Judge Wilma A. Lewis on September 9, 2019. Judge Lewis also ordered Williams to pay a fine in the amount of $1,000.00, to supervised release for three years, and to pay a special assessment of $100.00.
On September 11, 2018, Virgin Islands police and other law enforcement officers executed a search warrant at the Williams’ residence located at No. 4E Two Williams, Frederiksted, St. Croix, Virgin Islands. During the search, police uncovered a .223 Kel Tec pistol with two attached loaded magazines each containing 30 live rounds on a living room couch. They also uncovered a 9mm firearm loaded with 13 rounds. Firearm analysis revealed that both firearms were operable. Williams admitted that the firearms belonged to him. At the time of the search he was facing robbery, assault and firearm charges in the Superior Court of the Virgin Islands in an unrelated matter.
The case was investigated by the Virgin Islands Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorney Alphonso Andrews, Jr.
Seven Nigerian Nationals Indicted in International Phishing, Romance Scam, and Other Cyber Financial Fraud SchemesRead the Press Release
BOSTON – Seven Nigerian nationals were charged in indictments unsealed today in connection with their roles in expansive online fraud schemes targeting individuals and businesses in the United States, including phishing schemes, romance scams, business email compromise schemes, work-at-home scams, identity theft schemes, theft of personally identifiable information (PII) and credit card theft.
Chukwuemeka Francis Meke, a/k/a “Meke Angelo,” a/k/a “Lvrkdnona,” was charged on July 23, 2019, with conspiracy to commit computer fraud and abuse, wire fraud conspiracy, and aggravated identity theft. Jude Akhigbe, Happy Chukwuma, and Uche Solomon were charged on Aug. 20, 2019, with two counts of wire fraud conspiracy. Micahel Eromosele Iyoriobhe and Ajibola Ayomide Olanrewaju were charged on Sept. 3, 2019, with wire fraud conspiracy, unlawful possession of means of identification, and aggravated identity theft. Talib Gbolahan a/k/a “Talib Gbolahan Nkosi,” a/k/a “Loco Smith,” was charged with wire fraud and aggravated identity theft. All four indictments were unsealed today in Boston.
According to the indictments, the defendants each participated in a variety of international online fraud schemes. The defendants and their co-conspirators each deployed “phishing kits” that mimicked the appearance of legitimate websites to gather online credentials. In some cases, those credentials themselves were used to obtain money and property from U.S. victims. For instance, Gbolahan, using a “phishing kit” that mimicked the appearance of the dating websites “SeniorPeopleMeet” and “OurTime,” directly obtained account credentials, personally identifiable information, and payment card data from individuals who thought they were visiting those websites. Gbolahan then used that credit card information to make fraudulent purchases.
In other cases, certain defendants created fictitious online personas to develop online romantic relationships with individuals in the U.S., and then leveraged those relationships to obtain money and property. For instance, Iyoriobhe, using the personas “Alisha Keary” and “Alisha White,” and Olanrewaju, using the persona “Rita Mercer,” established online relationships with men in the United States pretending to be an American woman living overseas. Iyoriobhe and Olanrewaju conspired together to obtain money from these men through various ruses, such as pretending to travel to the United States to see the victim, but needing assistance paying taxes on an inheritance.
Individuals across the country, including in the Massachusetts towns of South Easton, Lynn, Gloucester, Lawrence, Somerville, North Dartmouth, and others, were victimized by the defendants’ online fraud schemes.
The fraud schemes targeted businesses as well as individuals. For instance, Meke and his co-conspirators were charged with using the emails and passwords of three employees from a retail company based in Massachusetts that employs more than 25,000 people and has locations in more than a dozen states, to send an email to another employee, seeking to transfer $300,000 from the company to pay a vendor. This type of scheme is known as a business email compromise (BEC) scheme.
The indictments in the District of Massachusetts are part of an ongoing national effort by the Department of Justice to address online fraud schemes that target United States citizens from abroad, often based out of Nigeria. Today, the Department of Justice announced significant actions, including 281 arrests in Operation reWired, a nationwide coordinated effort to disrupt BEC and other cyber-enabled financial frauds. Several actions were taken this summer in the District of Massachusetts as part of Operation reWired, including the arrests of Chukwuemeka Eze, who was charged by complaint with bank fraud and money laundering on June 11, 2019, and Seyon Balogun a/k/a “Oshine,” who was indicted in a money laundering conspiracy on July 9, 2019.
The wire fraud and wire fraud conspiracy charges provide for a sentence of up to 20 years in prison, and the conspiracy and possession of a means of identification charges provide for a sentence of up to five years in prison. The aggravated identity theft charges provide for a mandatory sentence of two-years in prison that must run consecutively to any other sentence imposed. Each charge also provides for up to three years of supervised release, a fine of $250,000 or twice the gross gain/loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Assistant U.S. Attorneys Amy Harman Burkart, David J. D’Addio, Seth B. Kosto, and Mackenzie A. Queenin of Lelling’s Cybercrime Unit are prosecuting the cases unsealed today.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Second Member of Heroin-Fentanyl Conspiracy SentencedRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Arthur Jones, 41, Chicago, Illinois, was sentenced today by Chief U.S. District Judge James D. Peterson to three years in federal prison for conspiring to distribute fentanyl-laced heroin in the Madison area from May through November of 2018. Jones and his co-conspirator Corey Douglas, 28, also of Chicago, both pleaded guilty to this charge on June 5, 2019. Douglas was sentenced by Judge Peterson on August 29 to a three-year prison sentence.
Jones maintained a residence in Fitchburg that police knew from their investigation was a stash house for drugs. Douglas was arrested by Dane County Narcotics Task Force officers on November 29, 2018, after he left the residence. At that time, Douglas possessed almost 12 grams of a mixture of heroin and fentanyl pre-packaged for street-level sale. A subsequent search of the residence maintained by Jones resulted in the discovery of more than 80 grams of additional heroin and fentanyl mixture.
In sentencing both Jones and Douglas, Judge Peterson weighed the defendants’ lack of criminal history against the danger associated with distributing a mixture of heroin and fentanyl throughout the community. Despite the lack of criminal history, Judge Peterson said the offense deserved a significant sentence because of the higher risk of an overdose death associated with a mixture of heroin and fentanyl, and the defendants’ repeated exploitation of others’ addiction.
The charges against Arthur Jones and Corey Douglas were the result of an investigation conducted by the Dane County Narcotics Task Force. The prosecution of the case has been handled by Assistant U.S. Attorney Robert Anderson.
Purdy Man Sentenced to 15 Years for Drug Trafficking, Illegal FirearmRead the Press Release
SPRINGFIELD, Mo. – A Purdy, Mo., man was sentenced in federal court today for possessing methamphetamine to distribute and illegally possessing a firearm.
Guadalupe Urbina-Rodriguez, 71, was sentenced by U.S. District Judge M. Douglas Harpool to 15 years in federal prison without parole.
Urbina-Rodriguez was found guilty at trial on March 26, 2019, of possessing methamphetamine to distribute, possessing a firearm in furtherance of a drug-trafficking crime, and being a felon in possession of a firearm.
A federal postal inspector seized a package on Aug. 31, 2018, that was addressed to Urbina-Rodriguez’s address. The package, which contained 430.8 grams of pure methamphetamine, was purportedly mailed from a nonexistent address in California. The postal inspector delivered the package to Urbina-Rodriguez, who was sitting in a chair under a tree in the front yard. Urbina-Rodriguez had a loaded Marlin .22-caliber rifle sitting beside him. Law enforcements officers then executed a search warrant of the residence and seized the package.
According to court documents, Urbina-Rodriguez was involved in a large-scale conspiracy to distribute methamphetamine from California to various places across the country, including Missouri. Twelve additional packages originating in California were delivered to Urbina-Rodriguez’s residence in 2018. When the packages arrived, two women retrieved them from Urbina-Rodriguez. He received a cash payment each month in exchange for accepting packages.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Urbina-Rodriguez has four prior felony convictions related to drug trafficking or possessing a controlled substance and a prior felony conviction for maintaining a public nuisance.
This case was prosecuted by Special Assistant U.S. Attorney Jessica R. Keller and Supervisory Assistant U.S. Attorney Randall D. Eggert. It was investigated by the Ozarks Drug Enforcement Team, the Cassville, Mo., Police Department, the Barry County, Mo., Sheriff’s Office, the U.S. Postal Inspection Service, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Pulaski County Woman Sentenced to 33 Months as part of Department of Justice’s Elder Fraud CrackdownRead the Press Release
LONDON, Ky. – Mitzi Shawn Sears, 59, of Nancy, was sentenced to 33 months in federal prison Monday by United States District Judge Robert E. Wier for taking over half a million dollars from an elderly couple, as part of a bank fraud scheme.
Sears must pay $502,780.10 in restitution and forfeit her rights to a property she purchased with the victims’ money. Upon release from prison, Sears will be on supervised release for five years.
According to her plea agreement, Sears convinced the victims to buy a certain piece of real property in Pulaski County with her as an investment. Sears then told the victims that the property was part of a lawsuit and they needed to provide more funds to pay attorneys and others in order to finish the transaction, but the transaction never existed. To keep the victims unaware of the scheme, Sears pretended to be various people in phone calls and drafted fake emails. When the victims ran out of money to give to Sears, they took out a $40,000 loan and provided their bank with the false information that Sears had given to them.
Sears used those checks to purchase a different property in Nancy that she must now forfeit. Additionally, Sears forged 16 checks belonging to the victims.
“Working with our law enforcement partners, we are committed to holding accountable those who of engage in financial exploitation of elderly victims,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “The defendant’s fraud scheme deprived the victims’ of a substantial amount of money. The sentence imposed reflects the seriousness of her offense.”
U. S. Attorney Duncan, Special Agent in Charge James Robert Brown, Federal Bureau of Investigation, and Commissioner Richard W. Sanders, Kentucky State Police jointly announced the sentence.
The investigation was conducted by the Federal Bureau of Investigation and the Kentucky State Police. Assistant U.S. Attorney Dmitriy Slavin represented the United States.
This prosecution is part of the Department of Justice’s efforts, together with federal and state partner agencies, to investigate and combat elder financial exploitation and obtain restitution for vulnerable victims. For information on the Kentucky Elder Justice Task Force, including how to report abuses, please visit: https://www.justice.gov/usao-edky/elder-justice-task-force.
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Previously Convicted Cocaine Trafficker Sentenced to Four Years in Federal Prison for Illegally Possessing FirearmsRead the Press Release
Hattiesburg, Miss. – Joe Lamont Gholar, 46, formerly of Jefferson Davis County, Mississippi, was sentenced today by Senior U.S. District Judge Keith Starrett to 48 months in federal prison, followed by 3 years of supervised release, for being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst, Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Special Agent-in-Charge Brad L. Byerley with the Drug Enforcement Administration (DEA).
On June 9, 2015, agents with the Drug Enforcement Administration Hattiesburg High Intensity Drug Trafficking Area (HIDTA) team served a search warrant at a residence where Gholar was living. Gholar was present during the search, and 35 rounds of .380 ammunition were found in his room. A .380 caliber pistol was found in a vehicle for which Gholar was the only driver, and a shotgun and rifle belonging to Gholar were also found on the premises. Gholar was previously convicted in the Western District of Texas for possession with intent to distribute cocaine.
Gholar was indicted on October 18, 2017 for being a felon in possession of a firearm. He pled guilty before Judge Starrett on February 1, 2018.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration. It was prosecuted by Assistant U.S. Attorney Stan Harris.
Portland, Indiana Man Sentenced to 15 Years in PrisonRead the Press Release
FORT WAYNE- Zackary Galloway, 28, of Portland, Indiana was sentenced by U.S. District Court Judge Holly A. Brady after pleading guilty to possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking offense, announced U.S. Attorney Thomas L. Kirsch II.
Galloway was sentenced to a total of 180 months in prison followed by 5 years of supervised release.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Portland Police Department and Jay County Prosecuting Attorney’s Office. This case was handled by Assistant United States Attorney Anthony Geller.
Pinon Man Sentenced to Prison for Violent Crimes Committed in Grand Canyon National ParkRead the Press Release
PHOENIX, Ariz. – Last month, Nathaniel Vernon Dempsey, of Pinon, Ariz., was sentenced by U.S. District Judge Dominic W. Lanza to 30 months of imprisonment to be followed by 3 years of supervised release. Dempsey had previously pleaded guilty to burglary and assault on a federal officer.
On October 10, 2018, Dempsey went to his girlfriend’s residence inside Grand Canyon National Park. While no one was home, Dempsey burglarized the residence and stole several items. After his girlfriend returned home later that night, Dempsey returned to the home, tried to force his way inside again, and threatened her with a knife. Law Enforcement Rangers with the National Park Service responded to the home. When a Ranger ordered Dempsey to get on the ground, Dempsey refused. Dempsey, holding a knife in each hand, then charged at the Ranger. The Rangers eventually took Dempsey into custody without anyone being seriously injured.
The investigation in this case was conducted by the National Park Service – Investigative Services Branch. The prosecution was handled by Assistant U.S. Attorney Alexander Samuels, District of Arizona, Phoenix.
Owners of Pasco County Marketing Firm Plead Guilty for Conspiring to Pay Healthcare KickbacksRead the Press Release
Tampa, Florida – Frank Monte (40, Valrico) and Kimberley Anderson (52, New Port Richey) today pleaded guilty to conspiracy to pay healthcare kickbacks. Each faces up to five years in federal prison and each has also agreed to forfeit $1,717,925.50 in assets.
According to the plea agreement, in May 2014, Monte and Anderson, acting on behalf of their marketing company Centurion Compounding, Inc., entered into a marketing agreement with the owners of a Pinellas County-based pharmacy called Lifecare. Centurion employed sales representatives to market compounded medications, specifically creams for pain and scars, among others, to beneficiaries of healthcare plans, especially TRICARE. These creams typically ranged in price from $900 to $21,000 for a one-month supply. Between June and November 2014, Monte, Anderson, the owners of LifeCare pharmacy (Carlos Mazariegos and Benjamin Nundy), and a Pinellas-based physician (Dr. Anthony Baldizzi), agreed that, in exchange for paying kickbacks to Baldizzi equal to 10% of the after-cost amount of each claim paid by TRICARE or other health care benefit programs, Baldizzi would write prescriptions for compounded medications filled by LifeCare for Centurion-recruited patients. Mazariegos, acting on behalf of the conspirators, made cash payments and provided other things of value to Baldizzi as kickbacks, including a new BMW M3.
During the conspiracy, Baldizzi wrote prescriptions for compounded creams and the conspirators caused the submission of claims for these creams to TRICARE, which resulted in TRICARE paying LifeCare more than $4.4 million. The profit to LifeCare for these creams was approximately $4 million. A substantial portion of these claims resulted from TRICARE patients recruited by Centurion. Pursuant to the agreement of the parties, LifeCare received 45% of the profits, Centurion expected to receive 45% of the profits, and Baldizzi was promised 10% of the profits.
Using the profits from the conspiracy, Monte and Anderson purchased real property and luxury automobiles. The following items were seized and forfeited: $8,730.50 in cash; a 2009 Bentley Continental; a 2012 Lamborghini Aventador; a 2012 Itasca motorhome, a 2011 Mercedes-Benz SLS AMG; a 2014 Maserati; a 2005 Ford GT; a 2012 Fisker Karma; real property in Land O Lakes; a 2010 Ferrari California; a 2013 McLaren 12C Spider; a 2012 Porsche Panamera; and real property in Plant City.
Separately charged co-conspirators Carlos Mazariegos and Benjamin Nundy previously pleaded guilty to conspiracy to commit health care fraud. Anthony Baldizzi previously pleaded guilty to conspiracy to commit healthcare fraud and receiving healthcare kickbacks. Mazariegos, Nundy, and Baldizzi are scheduled to be sentenced in November and December 2019.
The guilty pleas of Monte and Anderson conclude a multi-agency investigation that lasted more than five years, resulting in the successful prosecution of 10 defendants. As a result of this investigation, TRICARE claims totaling more than $58 million have been repaid or reversed, and an additional $6 million has been repaid to TRICARE by the conspirators.
This case was investigated by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services Office of Inspector General, the Defense Investigative Service, the Internal Revenue Service – Criminal Investigation, and U.S. Air Force Office of Special Investigation. It is being prosecuted by Assistant United States Attorneys Mandy Riedel, Colin McDonell, and Suzanne Nebesky.
Omaha Man Sentenced for Distributing MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that Mark Davis, 47, of Omaha, Nebraska, was sentenced Monday to 186 months in prison by Senior United States District Judge Laurie Smith Camp for possession with intent to distribute five grams or more of methamphetamine (actual). In addition to his prison term, Davis will serve four years of supervised release following his release from prison.
On January 28, 2018, officers pulled Davis over for operating a vehicle with a defective driver’s side brake light. Officers saw a digital scale in plain view on Davis’s lap. A probable cause search was conducted on Davis, and officers found approximately 5 grams of methamphetamine in Davis’s pocket.
A subsequent search of the vehicle resulted in officers locating an additional one and a half ounces of methamphetamine. A total of 47 grams of actual methamphetamine was recovered.
This case was investigated by the Omaha Police Department.
Occupational Therapist Sentenced to Federal Prison for Illegally Accessing Private Health Data and Stealing OpioidsRead the Press Release
A licensed occupational therapist who improperly accessed the private health and residence information of at least 1,900 patients, and then entered or burglarized thirteen homes across North Central Iowa in repeated attempts to steal prescription opioids from vulnerable and elderly persons, was sentenced September 9, 2019, to more than one year in federal prison.
Samantha Jo Rogers, age 33, from Mason City, Iowa, originally from Lapeer, Michigan, received the prison term after a March 11, 2019, guilty plea to one count of acquiring and attempting to acquire a controlled substance by misrepresentation, fraud, deception, and subterfuge, one count of wrongfully obtaining individually identifiable health information under false pretenses and with intent to use for personal gain, and one count of false statements relating to health care matters.
In a plea agreement and at sentencing, it was established that Rogers was an Iowa-licensed occupational therapist who worked for a North Iowa hospital and various therapy companies. From at least July 2017 through June 2018, Rogers illegally accessed the private health and residence information of no less than 1,900 patients at the hospital. Rogers also similarly accessed such information from one of the therapy companies no less than 1,572 times. Rogers then used this information to locate and travel to some of the residences and attempted to obtain the patients’ prescription pain medication on the pretense that she was a public health worker. On other occasions, Rogers used a crow bar to break down the patients’ doors and commit burglaries to obtain the narcotics. In early 2018, for example, Rogers burglarized the same Forest City home twice in attempts to steal an elderly man’s prescription pain killers.
Another one of Rogers’s victims was an elderly woman who had recently been discharged to her residence from a Waverly nursing home after receiving skilled nursing care. In January 2018, Rogers travelled to the woman’s home and falsely stated that the woman’s doctor did not want her taking her pain medications anymore. Rogers then took the medications from the woman. As a result of Rogers’s false statements, the woman’s family had to take the woman to the emergency room due to the excruciating pain she began experiencing. The woman eventually had to return to the Waverly nursing home for more skilled care as a result of Rogers’s actions. Then, after the woman was discharged a second time from the nursing home, Rogers returned to the woman’s home and knocked on her doors and windows trying to get into the home, until one of the woman’s family members arrived to help the elderly woman.
Rogers was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Judge Williams called Rogers’ crimes “egregious” and emphasized that the victims of her burglaries would never fully regain the sense of safety they had previously felt in their homes. Judge Williams also found it was “particularly egregious” when, less than a month after law enforcement officers had executed a search warrant at Rogers’ Mason City home, Rogers took a crow bar to another home as a part of her scheme.
Rogers was sentenced to 14 months’ imprisonment. She was ordered to make $524.59 in restitution to one of the victims of her burglaries and an additional $20.92 to Medicare. Rogers must also serve a three-year term of supervised release after the prison term, and she must forfeit her State of Iowa occupational therapy license to the United States. There is no parole in the federal system. After violating her pretrial release on numerous occasions, Rogers is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Tim Vavricek and investigated by the Department of Health and Human Services, Office of Inspector General, Office of Investigations, the Hancock County Sheriff’s Office, and the Mason City Police Department. The Worth County Sheriff’s Office, the Winnebago County Sheriff’s Office, the Hampton Police Department, the Clear Lake Police Department, and the Iowa State Patrol also assisted in Rogers’ prosecution.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-3051.
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Nevada Man Sentenced for Meth, Illegal FirearmsRead the Press Release
SPRINGFIELD, Mo. – A Nevada, Missouri, man was sentenced in federal court today for illegally possessing firearms and methamphetamine to distribute.
Justin Nolan, 28, was sentenced by U.S. District Judge M. Douglas Harpool to nine years in federal prison without parole.
On March 13, 2019, Nolan pleaded guilty to being a felon in possession of a firearm and to possessing methamphetamine with the intent to distribute.
Nevada police officers executed a search warrant at Nolan’s residence on April 4, 2018. Officers seized approximately 42 grams of methamphetamine, $5,898, and drug paraphernalia from an unlocked safe in Nolan’s bedroom. Officers also seized a loaded Jiminez Arms .380-caliber pistol and a stolen Iver Johnson Cadet .38-calbier revolver from a locked safe in the bedroom.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Nolan has a prior felony conviction for maintaining a public nuisance, related to maintaining a residence where illegal drugs were used, possessed, or distributed.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Nevada, Mo., Police Department and the Bureau of Alcohol, tobacco, Firearms and Explosives.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.National, State, Local and Tribal Government Officials Announce New Statewide Mississippi Human Trafficking Council to Combat This Violent CrimeRead the Press Release
Assistant Attorney General Eric Dreiband of the Justice Department’s Civil Rights Division joined U.S. Attorney Mike Hurst, Southern District of Mississippi, U.S. Attorney Chad Lamar, Northern District of Mississippi, Commissioner Marshall Fisher, Mississippi Department of Public Safety, and Philip Gunn, Speaker of the Mississippi House of Representatives, today to announce the creation and launch of a new, statewide Mississippi Human Trafficking Council.
Building on the foundation established by Governor Phil Bryant’s Human Trafficking Task Force Report from 2015, as well as task forces from around the country, the Mississippi Human Trafficking Council’s mission will be to prevent trafficking, protect victims, and prosecute criminals using a victim-centered, collaborative, and multi-disciplinary model. The Council will be led by three Co-Chairs: (1) Susan Bradley, Assistant U.S. Attorney, Northern District of Mississippi; (2) Kathlyn Van Buskirk, Assistant U.S. Attorney, Southern District of Mississippi; and (3) Ashlee Lucas, Mississippi Human Trafficking Coordinator, Mississippi Department of Public Safety.
“The Department of Justice is proud to announce the formation of the Mississippi Human Trafficking Council, which will serve as a crucial component to ongoing efforts to secure justice for victims of sex and labor trafficking crimes,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “This is the first statewide trafficking council, and it will help law enforcement more effectively prosecute criminals and protect the rights of victims. This is another strong step in the Department of Justice’s commitment to fighting violent crime and protecting the most vulnerable in our society.”
“Human trafficking is a crime against humanity, and the monsters who commit these crimes against our children and our fellow human beings will continue to face swift and certain justice in our district,” said U.S. Attorney Mike Hurst. “This Council will coordinate multiple entities and agencies, and help our citizens effectively battle this growing epidemic in our state. I want to thank our law enforcement, our prosecutors, and our governmental and non-governmental partners for stepping up to take this fight to the traffickers. At the end of the day, this is all about protecting victims, preventing trafficking and prosecuting the criminals.”
“We are so pleased to announce the launching of multiple regional human trafficking task forces throughout the state, Northern and Southern Districts,” said U.S. Attorney Lamar. “Not only are these task forces collaborative efforts by federal, state and local law enforcement, but also state service agencies and non-government service providers. The Human Trafficking Council and its committees, comprised of members from both Districts, will provide valuable direction and support.”
“The Mississippi Department of Public Safety is dedicated to building an effective Human Trafficking Division to combat those who prey upon, victimize and traffic others for sexual or labor purposes,” said Commissioner Marshall Fisher. “With the aid of the Human Trafficking Council, MDPS’s Human Trafficking Division has access to a team of state and federal resources to thwart these threats to our communities.”
“Strengthening and improving Mississippi’s human trafficking laws has been and continues to be one of my top priorities,” said Mississippi House Speaker Philip Gunn. “It’s important to me that we make the process work for these victims while we support those law enforcement personnel on the ground across our state who are on the front lines fighting human trafficking. I envision the Mississippi Human Trafficking Council being an important resource to complement our state’s five existing regional task forces by collaborating and offering assistance when and where needed,” said Mississippi House Speaker Philip Gunn.
- Steering Committee
The Council will have a Steering Committee, overseen by the Council Co-Chairs, and will be made up of the five subcommittee chairpersons along with the Council Co-Chairs. The Steering Committee will serve as the primary policy making body of the Council. The Steering Committee will discuss and propose recommendations for the Council, upon which the Co-Chairs will vote to approve or disapprove of such recommendations.
- Subcommittees
The Council will consist of five subcommittees and will focus on all forms of domestic and international human trafficking, to include commercial sex trafficking and labor trafficking, for the protection of both adult and minor victims. Each subcommittee chairperson will oversee the operation of each subcommittee, arranges logistics for meetings, keeps records of activities and issues, serves as a member of the Steering Committee and performs other duties as necessary for the efficient and productive operation of the Council.
The five subcommittees and chairpersons are:
- Outreach and Public Awareness Subcommittee
Chair: Mandy Davis, Mississippi Department of Public Safety
- Strategic Planning and Trafficking Protocol Subcommittee
Chair: Dr. Tamara Hurst, University of Southern Mississippi
- Policy and Legislation Subcommittee
Co-Chairs: Angela Cockerham, Mississippi House of Representatives; Lora Hunter, Mississippi Department of Public Safety
- Training Subcommittee
Chair: Paula Broome, Mississippi Attorney General’s Office
- Victim Service Subcommittee
Co-Chairs: Hollie Jeffery, Children’s Advocacy Center of Mississippi; Heather Wagner, Mississippi Department of Health
- Task Forces
The Council will also consist of small, regional Task Forces, made up of local, state, federal and tribal law enforcement, local prosecutors, and victim service providers, and will be led by an Assistant U.S. Attorney. These Task Forces will meet monthly and will share information, coordinate investigations, and discuss potential matters and active cases in preparation for prosecution.
The Department of Justice continues to fight human trafficking through investigating and prosecuting traffickers, dismantling transnational human trafficking networks, enhancing victim identification and protection of all victims of trafficking, and funding and providing domestic and international anti-trafficking programs. Information on the Department of Justice’s efforts to combat human trafficking can be found here. An update on human trafficking prosecution statistics can be found here.
National, State, Local and Tribal Government Officials Announce New Statewide Mississippi Human Trafficking CouncilRead the Press Release
Jackson, Miss. – Assistant Attorney General Eric Dreiband of the Justice Department’s Civil Rights Division joined U.S. Attorney Mike Hurst, Southern District of Mississippi, U.S. Attorney Chad Lamar, Northern District of Mississippi, Commissioner Marshall Fisher, Mississippi Department of Public Safety, and Philip Gunn, Speaker of the Mississippi House of Representatives, today to announce the creation and launch of a new, statewide Mississippi Human Trafficking Council.
Building on the foundation established byGovernor Phil Bryant’s Human Trafficking Task Force Report from 2015, as well as task forces from around the country, the Mississippi Human Trafficking Council’s mission will be to prevent trafficking, protect victims, and prosecute criminals using a victim-centered, collaborative, and multi-disciplinary model. The Council will be led by three Co-Chairs: (1) Susan Bradley, Assistant U.S. Attorney, Northern District of Mississippi; (2) Kathlyn Van Buskirk, Assistant U.S. Attorney, Southern District of Mississippi; and (3) Ashlee Lucas, Mississippi Human Trafficking Coordinator, Mississippi Department of Public Safety.
"The Department of Justice is proud to announce the formation of the Mississippi Human Trafficking Council, which will serve as a crucial component to ongoing efforts to secure justice for victims of sex and labor trafficking crimes," said Assistant Attorney General Eric Dreiband of the Civil Rights Division. "This is the first statewide trafficking council, and it will help law enforcement more effectively prosecute criminals and protect the rights of victims. This is another strong step in the Department of Justice’s commitment to fighting violent crime and protecting the most vulnerable in our society."
"Human trafficking is a crime against humanity, and the monsters who commit these crimes against our children and our fellow human beings will continue to face swift and certain justice in our district," said U.S. Attorney Mike Hurst. "This Council will coordinate multiple entities and agencies, and help our citizens effectively battle this growing epidemic in our state. I want to thank our law enforcement, our prosecutors, and our governmental and non-governmental partners for stepping up to take this fight to the traffickers. At the end of the day, this is all about protecting victims, preventing trafficking and prosecuting the criminals."
"We are so pleased to announce the launching of multiple regional human trafficking task forces throughout the state, Northern and Southern Districts," said U.S. Attorney Lamar. "Not only are these task forces collaborative efforts by federal, state and local law enforcement, but also state service agencies and non-government service providers. The Human Trafficking Council and its committees, comprised of members from both Districts, will provide valuable direction and support."
"The Mississippi Department of Public Safety is dedicated to building an effective Human Trafficking Division to combat those who prey upon, victimize and traffic others for sexual or labor purposes," said Commissioner Marshall Fisher. "With the aid of the Human Trafficking Council, MDPS’s Human Trafficking Division has access to a team of state and federal resources to thwart these threats to our communities."
"Strengthening and improving Mississippi’s human trafficking laws has been and continues to be one of my top priorities," said Mississippi House Speaker Philip Gunn. "It’s important to me that we make the process work for these victims while we support those law enforcement personnel on the ground across our state who are on the front lines fighting human trafficking. I envision the Mississippi Human Trafficking Council being an important resource to complement our state’s five existing regional task forces by collaborating and offering assistance when and where needed," said Mississippi House Speaker Philip Gunn.
I. Steering Committee
The Council will have a Steering Committee, overseen by the Council Co-Chairs, and will be made up of the five subcommittee chairpersons along with the Council Co-Chairs. The Steering Committee will serve as the primary policy making body of the Council. The Steering Committee will discuss and propose recommendations for the Council, upon which the Co-Chairs will vote to approve or disapprove of such recommendations.
II. Subcommittees
The Council will consist of five subcommittees and will focus on all forms of domestic and international human trafficking, to include commercial sex trafficking and labor trafficking, for the protection of both adult and minor victims. Each subcommittee chairperson will oversee the operation of each subcommittee, arranges logistics for meetings, keeps records of activities and issues, serves as a member of the Steering Committee and performs other duties as necessary for the efficient and productive operation of the Council.
The five subcommittees and chairpersons are:
1. Outreach and Public Awareness Subcommittee
Chair: Mandy Davis, Mississippi Department of Public Safety
2. Strategic Planning and Trafficking Protocol Subcommittee
Chair: Dr. Tamara Hurst, University of Southern Mississippi
3. Policy and Legislation Subcommittee
Co-Chairs: Angela Cockerham, Mississippi House of Representatives
Lora Hunter, Mississippi Department of Public Safety
4. Training Subcommittee
Chair: Paula Broome, Mississippi Attorney General’s Office
5. Victim Service Subcommittee
Co-Chairs: Hollie Jeffery, Children’s Advocacy Center of Mississippi
Heather Wagner, Mississippi Department of Health
III. Task Forces
The Council will also consist of small, regional Task Forces, made up of local, state, federal and tribal law enforcement, local prosecutors, and victim service providers, and will be led by an Assistant U.S. Attorney. These Task Forces will meet monthly and will share information, coordinate investigations, and discuss potential matters and active cases in preparation for prosecution.
The Department of Justice continues to fight human trafficking through investigating and prosecuting traffickers, dismantling transnational human trafficking networks, enhancing victim identification and protection of all victims of trafficking, and funding and providing domestic and international anti-trafficking programs. Information on the Department of Justice’s efforts to combat human trafficking can be found here. An update on human trafficking prosecution statistics can be found here.
Mother and Uncle Sentenced to Federal Prison for Drug Conspiracy Tied to 17 Year Old's DeathRead the Press Release
Charleston, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Lisa Cohen, age 55, and her brother Natale Colitte, age 51, both of North Charleston, were sentenced in federal court for conspiring to possess with intent to distribute and to distribute heroin, fentanyl, and methamphetamine. United States District Judge Richard M. Gergel, of Charleston, sentenced Cohen to 12 years in federal prison, to be followed by 3 years of supervised release, and sentenced Colitte to 8 years in federal prison, to be followed by 3 years of supervised release.
Evidence presented in the case established that Colitte began living with Cohen and her 17-year-old son Sebastian Cohen in late June 2017. Despite knowledge of her son’s substance abuse issues, Cohen routinely purchased heroin and sent Colitte to purchase heroin. Cohen and Colitte would then share the heroin while also allowing Sebastian to use the drugs. In September 2017, Cohen brought Sebastian home after a short stay at a treatment facility. She and Colitte initially began providing Sebastian with methamphetamine in an attempt to dissuade him from using heroin before ultimately sharing heroin with him again.
Despite their source of supply, Brian Lee (who is awaiting sentencing in a separate federal case), telling them that the heroin he was selling them was stronger than what he had previously been giving them, Cohen and Colitte still made no efforts to keep the drugs from Sebastian. On September 25, 2017, Cohen traded jewelry to her source of supply for what she believed was heroin and methamphetamine. The following day, Colitte became unconscious after injecting some of the drugs and was moved from the bathroom to the couch by Cohen and Sebastian. Later that night, Cohen found Sebastian unconscious on the kitchen floor. Sebastian was pronounced dead at the scene by paramedics and later testing showed that Sebastian died from an overdose of fentanyl, while also having methamphetamine in his system at the time of his death. Cohen and Colitte proceeded to finish using the remaining drugs the following day.
“The U.S. Attorney’s Office and our law enforcement partners are committed to stemming the tide of the opioid epidemic through strategic community partnerships as well as the aggressive prosecution of individuals who distribute these deadly drugs without regard for the lives of others,” said U.S. Attorney Lydon. “That a mother, aided by her brother, would willingly provide such dangerous drugs to her 17-year-old son, ultimately causing his death, is beyond comprehension. The tragic facts of this case demonstrate the dire impact this crisis is having on families across the country. We will continue to fight to provide some measure of justice to families like Sebastian’s, who have lost loved ones much too soon.”
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division stated, “An unprecedented, tragic loss of life in this investigation defines the severity of the prescription opioid crisis this country is experiencing. In this case, the defendants distributed opioids to Sebastian Cohen. Tragically, the drugs led to his death. DEA, its law enforcement partners and the U.S. Attorney’s Office are committed to bringing to justice those responsible for fueling this deadly crisis.”
The case was investigated by agents of the Drug Enforcement Administration and the North Charleston Police Department. Assistant United States Attorney Nick Bianchi of the Charleston Office is prosecuting the case.
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Mississippi Man Sentenced to 11 Years in Prison for CrossburningRead the Press Release
WASHINGTON – The Honorable Judge Keith Starrett, of the United States District Court for the Southern District of Mississippi, sentenced defendant Louie Bernard Revette, 38, to serve 11 years on federal charges for his commission of a crossburning on Oct. 24, 2017, in Seminary, Mississippi. Revette previously pled guilty on April 12, to one count of interference with housing rights, a federal civil rights violation, and one count of using fire to commit a federal felony. Revette, along with a co-conspirator whom he recruited, built and burned a wooden cross near the home of a juvenile victim, M.H., who lived in a predominantly African-American residential area of Seminary. He burned the cross to threaten, frighten, and intimidate M.H. and other African-American residents because of their race and color, and because they lived in and occupied residences in that area of Seminary.
“The defendant terrorized members of a community simply because of their race and where they lived,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Department of Justice will not tolerate these acts of hate, and we will continue to prosecute hate crimes like these to the fullest extent of the law.”
“Those who instill fear and terror into our neighbors and our fellow citizens because of the color of their skin will face the full weight and force of the law from the U.S. Attorney’s Office,” said U.S. Attorney Mike Hurst of the Southern District of Mississippi. “There is absolutely no place in our society or our country for this type of behavior, and we will do all that we can to prevent these racist acts and bring to justice those who are intent on committing these crimes.”
“All Mississippians have the right to feel safe in their communities, but crimes like these only tear open wounds that are still healing,” said Michelle A. Sutphin, Special Agent in Charge of the FBI in Mississippi. “The FBI and our partners will not tolerate crimes motivated by hate, and we will vigorously pursue those that commit them.”
This case was investigated by the FBI’s Jackson, Mississippi Field Office, including the FBI Safe Streets Task Force and the Jackson Public Corruption Task Force. Special Litigation Counsel Julia Gegenheimer of the Department of Justice Civil Rights Division and Assistant U.S. Attorney Candace Mayberry of the Southern District of Mississippi prosecuted the case.
Mississippi Man Sentenced to 11 Years for CrossburningRead the Press Release
The Honorable Judge Keith Starrett, of the United States District Court for the Southern District of Mississippi, sentenced defendant Louie Bernard Revette, 38, to serve 11 years on federal charges for his commission of a crossburning on Oct. 24, 2017, in Seminary, Mississippi. Revette previously pled guilty on April 12, to one count of interference with housing rights, a federal civil rights violation, and one count of using fire to commit a federal felony. Revette, along with a co-conspirator whom he recruited, built and burned a wooden cross near the home of a juvenile victim, M.H., who lived in a predominantly African-American residential area of Seminary. He burned the cross to threaten, frighten, and intimidate M.H. and other African-American residents because of their race and color, and because they lived in and occupied residences in that area of Seminary.
“The defendant terrorized members of a community simply because of their race and where they lived,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Department of Justice will not tolerate these acts of hate, and we will continue to prosecute hate crimes like these to the fullest extent of the law.”
“Those who instill fear and terror into our neighbors and our fellow citizens because of the color of their skin will face the full weight and force of the law from the U.S. Attorney’s Office,” said U.S. Attorney Mike Hurst of the Southern District of Mississippi. “There is absolutely no place in our society or our country for this type of behavior, and we will do all that we can to prevent these racist acts and bring to justice those who are intent on committing these crimes.”
“All Mississippians have the right to feel safe in their communities, but crimes like these only tear open wounds that are still healing,” said Michelle A. Sutphin, Special Agent in Charge of the FBI in Mississippi. “The FBI and our partners will not tolerate crimes motivated by hate, and we will vigorously pursue those that commit them.”
This case was investigated by the FBI’s Jackson, Mississippi Field Office, including the FBI Safe Streets Task Force and the Jackson Public Corruption Task Force. Special Litigation Counsel Julia Gegenheimer of the Department of Justice Civil Rights Division and Assistant U.S. Attorney Candace Mayberry of the Southern District of Mississippi prosecuted the case.
Michigan man sentenced to more than 16 years for drug and firearms chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Lamar Perdue, of Detroit, Michigan, was sentenced today to 195 months incarceration for drug distribution and firearms charges, United States Attorney Bill Powell announced.
“This is a significant sentence in a significant case. Methamphetamine, fentanyl, and firearms is a trifecta you do not want to be part of. When you combine these activities with a location near a school, the sentence is just and effective. We will continue to aggressively take action against those traveling to our communities to do our citizens harm. This prosecution is an example of excellent work by law enforcement and our prosecution team. More prosecutions are coming,” said Powell.
Perdue, age 21, pled guilty to one count of “Conspiracy to Possess With the Intent to Distribute and Distribute Controlled Substances,” one count of “Aiding and Abetting Possession With the Intent to Distribute Methamphetamine within 1000 Feet of a Protected Location,” one count of “Aiding and Abetting Possession With the Intent to Distribute Heroin within 1000 Feet of a Protected Location,” one count of “Aiding and Abetting Possession With the Intent to Distribute Fentanyl within 1000 Feet of a Protected Location,” and one count of “Aiding and Abetting Possession of Firearm in Furtherance of Drug Trafficking Crime” in May 2019.
Perdue was distributing the drugs near West Fairmont Middle School in Marion County. The crimes took place from the fall of 2018 to January 2019.
During the investigation, agents seized drugs valued at approximately $200,000, including over 1.9 kilos of methamphetamine, 80 grams of fentanyl, and hundreds of prescription pills, including opiates, and marijuana. The amount of fentanyl was enough to kill 40,000 people. Agents also found a rifle, two pistols, and more than $18,000 in cash in a rental property in Fairmont, West Virginia.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods 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.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Three Rivers Drug and Violent Crimes Task Force, Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Mexican Foreign National Convicted of Methamphetamine TraffickingRead the Press Release
HOUSTON – A federal jury sitting in Houston has convicted a 34-year-old man for conspiracy and methamphetamine smuggling, announced U.S. Attorney Ryan K. Patrick. The jury deliberated for less than three hours following a three-day trial before convicting Rogelio Rivera Benito aka Mecanico, who illegally resided in Houston, for the conspiracy to possess with intent to distribute methamphetamine.
The jury heard testimony from co-defendant Mexican national Genaro Pavon Pena that Benito operated stash houses in Houston between July 2016 and late 2017. The stash houses were used to produce methamphetamine for distribution in Houston, and Benito and Pena had discussed the movement of methamphetamine and cash proceeds. The jury also heard from law enforcement officers regarding search warrants and seizures of more than 130 kilograms of methamphetamine between November 2016 and February 2018.
Benito removed gasoline tanks from vehicles coming from Mexico to extract liquid methamphetamine which was later processed into crystalized methamphetamine for distribution. Authorities seized 27 kilograms of methamphetamine April 4, 2017, which was directly tied to a stash house belonging to Pena. Testimony demonstrated that Benito delivered at least 25 kilos of methamphetamine he produced at his residence to the Pena residence before the seizure. Pena testified that the organization moved at least 500 kilograms of methamphetamine during the course of the conspiracy.
The defense argued that authorities did not seize drugs directly from Benito and that Pena falsely testified in order to receive a lesser sentence for his previous conviction. The jury was not convinced and convicted Benito as charged.
U.S. District Judge David Hittner presided over trial and set sentencing for Dec. 6, 2019. He has been and will remain in custody pending that hearing.
Pena, 32, and Edwin Sanchez-Villa, 27, of Houston, previously pleaded guilty for their roles in the conspiracy and are set for sentencing Nov. 5 and 20, 2019, respectively. All three men face a minimum of 10 years and up to life in federal prison.
The Drug Enforcement Administration conducted the investigation. Assistant U.S. U.S. Attorneys Edward Gallagher and Abe Martinez are prosecuting the case.
Meth Lab, False Statements and Illegal Re-Entry Indictments ReturnedRead the Press Release
LAREDO, Texas – A Laredo federal grand jury has returned several unrelated indictments, four of which involved a methamphetamine conversion lab, illegal firearms purchases and two habitual illegal aliens, announced U.S. Attorney Ryan K. Patrick.
Isidro Gonzalez, 44, Ismael Espinoza-Martinez, 37, Jesus Sanchez-Rico, 42, and Heriberto Castro-Escamilla, 45, were all originally charged by criminal complaint and have remained in custody. Today, a Laredo grand jury returned seven, one, one and seven-count indictments, respectively. They are all expected for their arraignments before U.S. Magistrate Judge Diana Song Quiroga in the near future.
Gonzalez is a legal permanent resident who resided in Dallas and is charged with importing more than 43 kilograms of methamphetamine and having a conversion lab found in a family home.
The indictment alleges that on July 30, 2019, federal agents searched his family home in Dallas, at which time, they allegedly found a liquid methamphetamine conversion lab, two kilograms of crystal methamphetamine, 13.5 kilograms of liquid methamphetamine and conversion equipment. They also discovered a box of empty bottles in his daughter’s bedroom closet that tested positive for methamphetamine residue, according to the charges.
The liquid methamphetamine was allegedly transported from Mexico via bus lines and couriers through Laredo, to the Dallas residence where he converted it into crystal methamphetamine.
If convicted, he faces a minimum of 10 years and up to life in prison and a possible $10 million maximum fine.
The two separate, but similar indictments against Mexican citizens Espinoza-Martinez and Sanchez-Rico allege they illegally re-entered the country on multiple occasions. According to the charges, Espinoza-Martinez was removed from the U.S. a total of six times - March 26, 2004, Sept. 19, 2006, March 4, 2008, Feb. 25, 2012, March 24, 2015, and Aug. 3, 2018. The 2015 removal followed his conviction for driving while intoxicated, according to court records. Nevertheless, he allegedly returned to the U.S. without authorization near Hebbronville once again Aug. 25, 2019.
Authorities apprehended Sanchez-Rico near Laredo for illegally re-entering the country Aug. 24, 2019, according to his charges. He had allegedly been removed July 21, 2009, March 10, 2010, and March 18, 2019. The final removal date was subsequent to a felony conviction for aggravated stalking.
If convicted, both men face up to 20 years in prison and a maximum $250,000 possible fine.
Castro-Escamilla is a U.S. citizen who had lived in Nuevo Laredo, Mexico, for 34 years. He is charged for his role in aiding and abetting others and for making a false statement in connection with the purchase of firearms. According to the criminal complaint, he purchased five AR-15 type semi-automatic rifles over the course of three months beginning March 27, 2019. On the federal form required for the purchases, he claimed the weapons were for himself when, in fact, they were allegedly going to Mexico, according to the charges.
If convicted, Castro-Escamilla faces up to 10 years in federal prison and a possible $250,000 maximum fine.
Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) conducted the Gonzalez investigation with the assistance of the Dallas County Sheriff’s Office. Border Patrol and HSI conducted the illegal re-entry investigations, while the Bureau of Alcohol, Tobacco, Firearms and Explosives handled the Castro-Escamilla investigation with the assistance of HSI, Border Enforcement Security Task Force and Laredo Police Department.
Assistant U.S. Attorney (AUSA) Mary McAuliffe is prosecuting the methamphetamine and firearms cases, while AUSA Adam Harper is handling the illegal re-entry matters.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless and until convicted through due process of law.Member of New Haven Drug Ring Sentenced to PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that NIGEL JONES, 37, of West Haven, was sentenced yesterday by U.S. District Judge Stefan R. Underhill in Bridgeport to 18 months of imprisonment, followed by five years of supervised release, for his role in a heroin and cocaine trafficking ring. Judge Underhill also ordered Jones to serve the first six months of his term of supervised release in home confinement.
This matter stems from a joint investigation headed by the DEA New Haven Task Force, FBI and New Haven Police Department into a New Haven-based drug trafficking organization that acquired and distributed heroin and cocaine.
During the investigation, law enforcement officers seized more than 500 grams of heroin, more than 300 grams of fentanyl, more than one kilogram of cocaine, three firearms, over $90,000 in cash, vehicles, jewelry and precious metals.
According to court documents and statements made in court, Jones purchased heroin from another member of the organization and sold the drug in smaller quantities to his own customers.
On April 19, 2018, a grand jury in New Haven returned an indictment charging Jones and 18 other individuals with narcotics trafficking offenses. Jones and several other members of the conspiracy were arrested on April 25, 2018.
On September 13, 2018, while he was released on bond, Jones was arrested by New Haven Police and charged with possession of a controlled substance and possession of a controlled substance with intent to sell after he was found in possession of distribution quantities of heroin and marijuana.
Jones’ federal bond was revoked and, on January 15, 2019, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute heroin and cocaine.
Jones criminal history includes a federal conviction in April 2014 for using a telephone to facilitate the commission of a drug trafficking felony. He was sentenced to 30 months of imprisonment for that offense.
The DEA New Haven Task Force includes participants from the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia, Meriden, Derby, Middletown, Naugatuck and Waterbury Police Departments. The Connecticut Department of Correction, Milford Police Department and East Haven Police Department have assisted the investigation.
The case is being prosecuted by Assistant U.S. Attorney H. Gordon Hall.