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Tuesday 30 July 2019
Eight Individuals Indicted for Social Security FraudRead the Press Release
SAN JUAN, P.R. – On July 24 and 26, 2019, a Federal Grand Jury in the District of Puerto Rico returned six separate indictments charging eight (8) individuals with fraud against the Social Security Administration (SSA) in Puerto Rico, announced U.S. Attorney Rosa Emilia Rodríguez Vélez for the District of Puerto Rico. These cases were investigated by the Social Security Office of Inspector General (SSA-OIG) with the collaboration of the Department of Homeland Security, Office of Inspector General (DHS-OIG); Health and Human Services, Office of Inspector General (HHS-OIG); the Food and Drug Administration, Office of Criminal Investigations (FDA); Department of Veterans Affairs, Office of the Inspector General (VA-OIG); Federal Bureau of Investigation (FBI); Drug Enforcement Administration (DEA); and the Police of Puerto Rico.
The SSA is responsible for the implementation of the Disability Insurance Benefits Program. The SSA provides monetary benefits to workers with severe, long-term disabilities, who have worked in SSA-covered employment for a required length of time. Spouses and dependent children of disabled workers may also be eligible to receive benefits. Pursuant to SSA regulations, a claimant must prove to SSA that he or she is disabled by furnishing medical and other evidence with the application. The application and supporting evidence is evaluated by SSA to determine the individual’s medical impairments and the effect of the impairment on the claimant’s ability to work on a sustained basis.
Three indictments charged four individuals with theft of government property, health care fraud, concealment, or failure to disclose work activity to SSA, and false statements or representations to the SSA. These defendants knowingly and willfully embezzled, stole, and converted to their own use the Social Security Disability Insurance Benefit payments to which the defendants knew that they were not entitled.
The defendants charged with accepting by fraud the Social Security Disability Insurance Benefit payments, knowing that they were not entitled to the same, are: Brunilda Rodríguez-Reyes and her son, Gerardo O. Navedo-Rodríguez, who received $156,616.50 from SSA, and fraudulently caused Medicare to pay approximately $55,151.51; Lalin Mercado-Vargas who received $168,854.90 from SSA and fraudulently caused Medicare to pay him approximately $77,780.78; and Ramón Julbe-Rosa (Julbe-Rosa), who received $79,369.00 from SSA and fraudulently caused Medicare to pay him $47,002.10.
Defendant Julbe-Rosa is also facing one count of fraud against the Department of Veterans Affairs for fraudulently receiving unemployability benefits, and one count of Fraud in Connection with Major Disaster or Emergency Benefits related to Hurricane María. Julbe-Rosa applied for an SBA Disaster Loan by falsely representing that on September 20, 2017, his primary residence, damaged by Hurricane Maria was located in Morovis, Puerto Rico when he well knew that this was not his primary residence. As a result, the defendant fraudulently received $50,000.00 from SBA. Julbe-Rosa was also charged with his wife Ena I. Octaviani with Introduction into Interstate Commerce of Unapproved New Drugs. Defendant Julbe-Rosa established and operated the website www.acietedeguanabana.com through which he promoted and sold various products intended as treatments for serious medical conditions without FDA approval. Defendant Julbe-Rosa sold at least $341,242.26 worth of unapproved new drugs. Defendant Ena I. Octaviani-Santana was charged in this same indictment with aiding and abetting Julbe-Rosa to submit false information to SSA.
Defendant Carlos Del Valle-Figueroa was charged with distribution of controlled substances, theft of government property, concealment, or failure to disclose work activity to SSA, and false statements or representations to the SSA. Del Valle-Figueroa fraudulently received $33,222.00 from SSA.
Defendant Johana Torres-Figueroa was charged with making false statements to SSA, aggravated identity theft, and fraud in connection with major disaster or emergency benefits. Between October 11, 2017, and continuing through January 2, 2018, Torres-Figueroa falsely and fraudulently applied for FEMA benefits on behalf of an elderly victim (M.G.O.), although the defendant knew that she was not the caregiver with authorization to request assistance on behalf of the elderly victim. As a result of this fraudulent scheme, Johana Torres-Figueroa received $500.00 for Critical Needs Assistance; $869.65 for Home Repair Assistance; $3,807.66 for Personal Property Assistance; and $748.00 for Rental Assistance, for a total of $5,925.31.
In another indictment, David Arocho-Castro (son of C.C.R) was charged with theft of government property. After C.C.R died on December 21, 2011, David Arocho-Castro failed to notify SSA about her death and used the money that his mother received from the SSA, benefits to which he knew he was not entitled. As a result of this scheme, between January 3, 2012, and continuing through December 3, 2018, David Arocho-Castro stole from SSA approximately $31,392.00.
“The U.S. Attorney’s Office and Federal Law Enforcement partners remain vigilant in our quest to identify those corrupt individuals who by deceit and fraud attempt to illegally benefit from federal funds depriving other law abiding citizens from much needed health benefits, disability and emergency assistance. We remain steadfast in our commitment to bring to justice unscrupulous individuals who illegally seek personal financial gain,” said United States Attorney Rosa Emilia Rodríguez-Vélez.”
“Today’s arrests are the latest in our continued and ongoing effort to bring to justice all individuals who commit Social Security Fraud, said SSA-OIG, Special Agent in Charge John F. Grasso. “I am very grateful for the efforts of our law enforcement partners involved in these investigations, and for the continued commitment from the United States Attorney’s Office for the Commonwealth of Puerto Rico to aggressively pursue these important cases. I strongly encourage the public to report suspected instances of Social Security fraud to our dedicated Fraud Hotline at 1-855-278-5982 or https://oig.ssa.gov/report.”
“The FBI appreciates the outstanding work of the U.S. Attorney’s Office, the Office of Inspector General for the Social Security Administration, Health & Human Services, and the Drug Enforcement Administration, and remains confident the we and our partners have the capacity to address any fraud scheme that threatens those who are in real need of these benefits, especially the elderly and the children,” said Judith Priegues-Lopez, Assistant Special Agent in Charge of the FBI-San Juan Field Office. “As always, we encourage anyone who has information on this fraud and any other fraud schemes to come forward. We are available 24 hours a day at 787-754-6000 and https://www.fbi.gov/tips”.
“The FDA’s drug approval process ensures that patients receive safe and effective products. Evading the FDA’s authority and selling unapproved drugs to vulnerable consumers will not be tolerated,” said Justin C. Fielder, Acting Special Agent in Charge, FDA Office of Criminal Investigations, Miami Field Office. “The FDA remains fully committed to aggressively pursuing those who place profits above the health and safety of American consumers.”
Special Assistant U.S. Attorney Vanessa D. Bonano-Rodríguez is in charge of the prosecution of these cases. If convicted, the defendants charged with SSA fraud could face a maximum penalty of 10 years in prison; the defendant charged with Fraud in Connection with Major Disaster (Hurricane María) or Emergency Benefits faces a maximum penalty of up to 30 years in prison; and the defendant charged with health care fraud faces a maximum penalty of up to 10 years in prison. All defendants are subject to a fine of up to $250,000.00. The indictments contain only charges and are not evidence of guilt. The defendants are presumed to be innocent unless and until proven guilty.
The U.S. Department of Justice established the National Center for Disaster Fraud (NCDF) to investigate, prosecute, and deter fraud in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region. Its mission has expanded to include suspected fraud from any natural or manmade disaster. More than 20 federal, state, and local agencies participate in the NCDF, which allows the center to act as a centralized clearinghouse of information related to disaster relief fraud.
Members of the public are reminded to apply a critical eye and do their due diligence before trusting anyone purporting to be working on behalf of disaster victims, and to be especially cautious of anyone who contacts you seeking personal identifying information or financial information. Members of the public who suspect fraud involving disaster relief efforts, or who believe that they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. The telephone line is staffed by a live operator 24 hours a day, 7 days a week. You can also fax information to the Center at (225) 334-4707, or email it to [email protected]. Learn more about the NCDF at www.justice.gov/disaster-fraud and watch a public service announcement here.
Dover Man Pleads Guilty to Methamphetamine TraffickingRead the Press Release
CONCORD – Alfonz Vei, 45, of Dover, pleaded guilty in federal court to distributing methamphetamine, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, beginning in September of, 2018, an undercover law enforcement officer (UC) purchased methamphetamine from Kristen Hodgkins. On October 9, 2018, in Dover, Vei and Hodgkins distributed 43.6 grams of methamphetamine to a UC. Agents observed Vei weighing out the methamphetamine on a scale just before Hodgkins took the drugs and delivered them to the UC.
On January 11, 2019, postal inspectors intercepted a package from a fictitious address and addressed to a residence in Dover, where Vei had a prior affiliation. Investigators observed Vei arrive at the address at approximately the time the package was due to be delivered. The package was searched pursuant to a warrant and was determined to contain 444.4 grams of methamphetamine.
On January 16, 2019, Vei was stopped driving a car in Exeter. He had an unloaded Glock 9 mm firearm in the vehicle, as well as approximately one ounce of methamphetamine and 115 ecstasy pills.
Hodgkins previously pleaded guilty on June 19, 2019 and will be sentenced on September 25, 2019. Vei is scheduled to be sentenced on November 14, 2019.
“Methamphetamine presents a grave threat to the health and safety of the residents of New Hampshire,” said U.S. Attorney Murray. “In order to protect the public, we will continue to be aggressive in our efforts to identify and prosecute those who distribute this dangerous drug in the Granite State.”
This matter was investigated by the Drug Enforcement Administration and the United States Postal Inspection Service with assistance from the New Hampshire State Police and the Rochester Police Department. The case is being prosecuted by Assistant U.S. Attorney John Davis.
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Detroit Man Pleads Guilty to Federal Drug CrimesRead the Press Release
CHARLESTON, W.VA.– United States Attorney Mike Stuart announced that a Detroit, Michigan man pled guilty to an indictment charging him with federal drug crimes. Edward King, 29, pled guilty to conspiracy to distribute and possession with intent to distribute oxycodone. The case was investigated by the Kanawha County Sheriff’s Department.
“Since the opioid epidemic began, Detroit drug dealers have wreaked havoc and destruction in West Virginia,” said United States Attorney Mike Stuart. “The target that’s been on the backs of our citizens is now on the backs of the drug dealers. We’re focused in. Taking them down. And holding them accountable.”
During the plea hearing, King admitted that in April 2015 he conspired with another person to distribute oxycodone. He further admitted that he traveled to Charleston from Detroit on April 7, 2015 and that he possessed 115 30 milligram oxycodone pills which he intended to distribute in the Charleston area.
King faces up to 40 years in prison when he is sentenced on October 31, 2019.
Assistant United States Attorney Ryan A. Saunders handled the prosecution. Senior United States District Judge John T. Copenhaver, Jr. presided over the plea hearing.
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Delaware County Man Pleads Guilty on the Eve of Trial to Violent 2018 CarjackingRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that John Leroy Gordon, 27, of Chester, Pennsylvania, entered a plea of guilty to carjacking before the Honorable Gerald J. Pappert yesterday, just before trial was set to commence.
The charge arose from the defendant’s June 26, 2018 armed carjacking of a Chester woman in front of her home. During the incident, the defendant robbed the victim of her car, which he then drove directly to Interstate 95, where he crashed it several minutes later. The defendant then fled on foot. The defendant’s flight was thwarted when he was swiftly apprehended approximately 15 minutes after crashing the stolen car, less than a half mile from the crash site, by officers from the Chester Police Department and the Pennsylvania State Police – Media Barracks.
“The defendant’s actions here both terrorized the victim and jeopardized the safety of other innocent drivers. A conviction in a high-profile, violent crime case such as this one serves justice and also brings relief to the entire community,” said U.S. Attorney McSwain. “I want to thank our investigating partners at the federal and local level who did such tremendous work bringing this defendant into custody.”
“Carjackings are terrifying for their victims, particularly when, as in this case, the perpetrator is armed,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “Each and every day, the FBI and our law enforcement partners are working together to get violent criminals off the street and make our community safer all around.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Federal Bureau of Investigation, Chester Police Department, and Pennsylvania State Police, and is being prosecuted by Assistant United States Attorney Sarah Damiani.
Defendant Sentenced in T&A Crips Gang CaseRead the Press Release
COLUMBUS, Ohio – One of 19 defendants charged in a gang-related racketeering conspiracy was sentenced in U.S. District Court today to 120 months in prison.
Dominique Bryant, also known as “Doggy,” 27, of Columbus, pleaded guilty in the racketeering conspiracy in January.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Jonathan McPherson, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Todd A. Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Interim Columbus Police Chief Thomas Quinlan, United States Marshal Pete Tobin and Franklin County Prosecutor Ron O’Brien, announced the sentence handed down today by U.S. District Judge Michael H. Watson.
According to court documents, Bryant and the other defendants are members and associates of the Trevitt and Atcheson Crips gang known as T&A.
The gang derived its name from Trevitt and Atcheson streets in the King-Lincoln District of Columbus, where its members predominantly reside.
Beginning in June 2010, T&A members and associates conspired in a racketeering enterprise and engaged in murders, attempted murders, drug trafficking, firearms trafficking, witness tampering, robbery, assault and other crimes.
The gang controlled the neighborhood through intimidation, fear and violence. Gang members were expected to retaliate with acts of violence when their members and associates were disrespected, threatened, intimidated or subjected to acts of violence.
Specifically, co-conspirators are charged with five murders:
the murder of Franky Tention on July 1, 2012, in the area of 431 Ellison Street;
the murder of William Moore on March 15, 2013;
the murder of Marvin Ector on December 23, 2013, on East 5th Avenue;
the murder of Quincy Story on January 24, 2015; and
the murder of Deaonte Fisher on March 4, 2016.
As part of Bryant’s plea agreement, he accepted responsibility for firing a gun and striking two members of the rival gang Poindexter Thug Life (PTL) at Beatty Park Recreation Center in June 2014.
Again, in 2014, Bryant retaliated against members of a second rival gang, the Milo Bloods, by shooting his firearm at a vehicle containing Milo Bloods members.
U.S. Attorney Glassman commended the investigation of this case by ATF, FBI and Columbus Police, as well as Assistant United States Attorneys David M. DeVillers, Kevin W. Kelley and Noah R. Litton, who are prosecuting the case.
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Covington Man Sentenced for Possessing and Making SilencersRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that ROBERT LYONS, age 34, of Covington, was sentenced on Thursday, July 25, 2019 for federal firearms violations.
According to court documents, on March 3, 2017, LYONS possessed firearm silencers that were not registered to him in the National Firearms Registration and Transfer Record (“NFRTR). LYONS also made firearm silencers without obtaining prior approval from the federal government or paying the requisite tax.
U.S. District Judge Jane Triche Milazzo sentenced LYONS to 12 months and 1 day in prison, followed by 2 years of supervised release. A mandatory assessment fee of $200 will also be assessed.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U. S. Attorney Strasser praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives in investigating this matter. The case is being prosecuted by Assistant United States Attorney Maria M. Carboni.
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Couple Charged in Marriage Fraud SchemeRead the Press Release
PITTSBURGH, PA -A Nigerian citizen residing in the Pittsburgh area and a resident of Newark, NJ have been indicted by a federal grand jury in Pittsburgh on a charge of conspiracy to defraud the United States, United States Attorney Scott W. Brady announced today.
The one-count indictment, returned on July 11 and unsealed yesterday, named:
• Monsuru Ogunbiyi, age 36, of Pittsburgh, PA 15227 (Whitehall); and
• Ajia Strauss, age 28, of Newark, NJ 07017.
According to the indictment presented to the court, from June 2016, to March 2019, Monsuru Ogunbiyi and Ajia Strauss conspired with one another to defraud the United States. Ogunbiyi, a native and citizen of Nigeria, and Strauss, a native and citizen of the United States, agreed to enter into a sham marriage so that Ogunbiyi could obtain lawful permanent residency in the United States. As part of the conspiracy, Ogunbiyi agreed to pay money to Strauss, including $1,500 on the day of their June 3, 2016, marriage in New Jersey. Also as a part of the conspiracy, Ogunbiyi and Strauss submitted false and fraudulent statements and documents to the United States.
The law provides for a maximum total sentence of not more than five years in prison, a fine of not more than $250,000, or both, for the charge of conspiracy to defraud the United States. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The Department of Homeland Security Investigations conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Convicted Money Launderer Indicted for Fraudulent SchemeRead the Press Release
BOSTON – A Hingham man who was convicted earlier this year of money laundering has been indicted by a federal grand jury on new charges of wire fraud, unlawful monetary transactions and money laundering conspiracy.
Yannick A. Minang, 26, was arrested on July 1, 2019, and charged by criminal complaint with one count of international money laundering conspiracy. Today, Minang was indicted on five counts of wire fraud, one count of unlawful monetary transactions and one count of money laundering conspiracy.
Earlier this year, Minang pleaded guilty to a five-count indictment for his role in a similar business email compromise (BEC) scheme in 2017. Minang is scheduled to be sentenced on those charges on Sept. 24, 2019, before U.S. District Court Judge F. Dennis Saylor.
As alleged in today’s indictment, Minang conspired with others to open numerous bank accounts in Massachusetts in the name of sham companies, as part of an apparent BEC scheme, which is a sophisticated scam often targeting businesses involved in wire transfer payments. The fraud is carried out by compromising and/or “spoofing” legitimate business email accounts through social engineering or computer intrusion techniques to cause employees of the victim company (or other individuals involved in legitimate business transactions) to transfer funds to accounts controlled by the scammers.
Through the use of fraudulent invoices and spoofed email accounts, Minang allegedly conspired to trick the victims of the scheme into wiring hundreds of thousands of dollars to bank accounts under his control. Minang and his co-conspirators then transferred funds from the accounts to others located overseas.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of the greater of either $250,000 or twice the gross gain or loss. The charge of unlawful monetary transactions provides for a sentence of up to10 years in prison, three years of supervised release and a fine of the greater of either $250,000 or twice the value of the criminally derived property. The charge of money laundering conspiracy provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $500,000 or twice the amount involved in the transaction, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorneys William B. Brady, of Lelling’s Criminal Division, and Jordi de Llano, Deputy Chief of Lelling’s Securities & Financial Fraud Unit, are prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Connecticut Landlord Sentenced to Prison for Tax EvasionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ANTHONY A. VALENTINO, 76, of Palm City, Florida, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to nine months of imprisonment, followed by one year of supervised release, for tax evasion. Judge Dooley also ordered Valentino to pay a $10,000 fine.
According to court documents and statements made in court, Valentino is a real estate investor who owns property in Connecticut and New York, including a 100-unit apartment complex in Naugatuck, Connecticut. From 2011 to 2013, Valentino deposited more than $1.1 million of rental real estate receipts, paid in cash or checks, into his personal bank accounts in Connecticut and New York, and failed to report the receipts on his personal and partnership federal tax returns.
For the 2011 through 2013 tax years, Valentino failed to report $1,008,125 in taxable income on his tax returns, and only reported $42,815 in taxable income. As a result, he evaded payment of $302,449 in income taxes.
The investigation also revealed that, in 2013, Valentino made or caused to be made 27 cash deposits totaling $247,100 into his savings account in Connecticut. Many of the cash deposits, which ranged in amounts from $7,000 to $9,900, were made on the same day at different times, or on consecutive days.
Federal law requires all financial institutions to file a Currency Transaction Report (“CTR”) for currency transactions that exceed $10,000. To evade the filing of a CTR, individuals will often structure their currency transactions so that no single transaction exceeds $10,000.
Valentino has paid restitution to the U.S. Treasury of $302,339, but still owes approximately $333,000 in tax penalties and interest. He also has forfeited $100,000 related to his structuring of cash deposits.
On March 25, 2019, Valentino pleaded guilty to one count of tax evasion.
Valentino, who is released on a $50,000 bond, is required to report to prison on October 28, 2019.
This matter was investigated by the Internal Revenue Service, Criminal Investigation Division, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the Hartford and Stamford Police Departments. The case was prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
Civil Settlement Reached with New Jersey CompanyRead the Press Release
NEWARK, N.J. – A New Jersey company and its principal will pay $2.4 million to resolve allegations that it improperly obtained contracts set aside for companies owned and controlled by service-disabled veterans, U.S. Attorney Craig Carpenito announced
The settlement resolves allegations that Regiment Construction Corp. and its principal, Daniel Hernandez, made false claims in conjunction with contracts awarded to Regiment by the United States. The government contends that Regiment and Hernandez improperly represented that Regiment was eligible to bid on contract set aside for companies owned and controlled by service-disabled veterans when, in fact, a veteran did not own and control Regiment. The United States contends that Regiment was owned by Hernandez, and not the veteran to whom ownership and control was attributed in Regiment’s certification to the United States.
U.S. Attorney Carpenito credited Special Agent Rafael Valverde of the United States Department of Veteran’s Affair’s Office of Inspector General, and Special Agent Michael Moffa of the U.S. Small Business Administration’s Office of Inspector General, with the investigation.
The government is represented by Assistant U.S. Attorney Mark C. Orlowski of the U.S. Attorney’s Civil Division and David E. Dauenheimer, Deputy Chief of the U.S. Attorney’s Civil Division, in Newark.
Chinese National Sentenced to over Three Years in Prison for Trafficking Counterfeit Apple Goods into the United StatesRead the Press Release
A Chinese national living in the United States on a student visa was sentenced today to 37 months in prison followed by one year of supervised release for his role in a scheme to traffic and smuggle counterfeit Apple products, including phony iPhones and iPads, from China into the United States.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Craig Carpenito of the District of New Jersey, Special Agent in Charge Brian Michael of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Newark and Bergen County Prosecutor Mark Musella made the announcement.
Jianhua “Jeff” Li, 44, previously pleaded guilty before U.S. District Judge Kevin McNulty of the District of New Jersey, to one count of conspiracy to traffic in counterfeit goods and labels and smuggle goods into the United States and one count of trafficking in counterfeit goods. Judge McNulty imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court, from July 2009 through February 2014, Li, working through his company Dream Digitals, conspired with Andreina Becerra, Roberto Volpe, Rosario LaMarca and others to smuggle and traffic into the United States from China more than 40,000 electronic devices and accessories, including iPads and iPhones, along with labels and packaging bearing counterfeit Apple trademarks.
Li shipped the devices separately from the labels to avoid detection by U.S. Customs and Border Protection officials. The devices were then shipped to conspirators all over the United States. Proceeds were funneled back to conspirator accounts in Florida and New Jersey via structured cash deposits and then a portion was transferred to conspirators in Italy, further disguising the source of the funds. Over $1.1 million in sales proceeds were wired from U.S. accounts into accounts Li controlled overseas.
LaMarca, Becerra, and Volpe previously pleaded guilty to their respective roles in the scheme. LaMarca was sentenced July 21, 2017, to serve 37 months in prison. Becerra and Volpe were sentenced Oct. 15, 2018, to serve three years’ probation and 22 months in prison, respectively.
The HSI Newark Seaport Investigations Group and the Bergen County Prosecutor’s Financial Crimes Unit investigated the case with significant assistance from HSI Attaché Rome, Europol and Italy’s Guardia di Finanza.
Senior Trial Attorney Kebharu Smith of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Leslie Schwartz of the District of New Jersey prosecuted the case.
Chinese National Sentenced to 37 Months in Prison for Trafficking Counterfeit Apple Goods into United StatesRead the Press Release
NEWARK, N.J. – A Chinese national living in the United States on a student visa was sentenced today to 37 months in prison for his role in a scheme to traffic and smuggle counterfeit Apple products, including phony iPhones and iPads, from China into the United States.
U.S. Attorney Craig Carpenito of the District of New Jersey; Assistant Attorney General Brian Benczkowski of the Justice Department’s Criminal Division; Special Agent in Charge Brian Michael of Homeland Security Investigations (HSI) in Newark, and Bergen County Prosecutor Mark Musella made the announcement.
Jianhua “Jeff” Li, 44, previously pleaded guilty before U.S. District Judge Kevin McNulty to one count of conspiracy to traffic in counterfeit goods and labels and smuggle goods into the United States and one count of trafficking in counterfeit goods. Judge McNulty imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From July 2009 through February 2014, Li, working through his company Dream Digitals, conspired with Andreina Becerra, Roberto Volpe, Rosario LaMarca, and others to smuggle and traffic into the United States from China more than 40,000 electronic devices and accessories, including iPads and iPhones, along with labels and packaging bearing counterfeit Apple trademarks.
Li shipped the devices separately from the labels to avoid detection by U.S. Customs and Border Protection officials. The devices were then shipped to conspirators all over the United States. Proceeds were funneled back to conspirator accounts in Florida and New Jersey via structured cash deposits and then a portion was transferred to conspirators in Italy, further disguising the source of the funds. Over $1.1 million in sales proceeds were wired from U.S. accounts into accounts Li controlled overseas.
In addition to the prison term, Judge McNulty sentenced Li to one year of supervised release.
LaMarca, Becerra, and Volpe previously pleaded guilty to their respective roles in the scheme. LaMarca was sentenced July 21, 2017, to 37 months in prison. Becerra and Volpe were sentenced Oct. 15, 2018, to three years’ probation and 22 months in prison, respectively.
The HSI Newark Seaport Investigations Group and the Bergen County Prosecutor’s Financial Crimes Unit investigated the case with significant assistance from Europol and Italy’s Guardia di Finanza.
The government is represented by Assistant U.S. Attorney Leslie Schwartz of the District of New Jersey and Senior Trial Attorney Kebharu Smith of the Criminal Division’s Computer Crime and Intellectual Property Section.
Billings man convicted of meth distribution at bench trialRead the Press Release
BILLINGS – A federal judge today convicted Billings resident Darrell Franklin Holliday on methamphetamine distribution charges after a two-day bench trial, U.S. Attorney Kurt Alme said.
U.S. District Judge Susan P. Watters presided and found Holliday, 48, guilty of all three counts in an indictment. Holliday was charged with possession with intent to distribute meth and two counts of distribution of meth. The trial began on Monday.
Holliday faces a minimum mandatory five years to 40 years in prison, a $5 million fine and at least four years of supervised release. He remains in custody pending sentencing.
Judge Watters will set a sentencing date.
Prosecutors presented evidence, including three witnesses, that Holliday was distributing meth in the Billings area and Montana beginning in August 2017. Investigators worked with a confidential informant, who obtained gram quantities of meth from Holliday in two controlled buys. In April 2018, Holliday provided officers a recorded statement in which he admitted to using meth daily when he had the chance. After his arrest, Holliday made statements during recorded jail calls implicating himself.
Assistant U.S. Attorneys Zeno Baucus and Karla Painter prosecuted the case, which was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force and the FBI.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Anchorage Man Sentenced to Federal Prison for Making Threatening Statements against Family Members, Police Officers, OthersRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Tyler Chance Bateman, 29, of Anchorage, was sentenced today by Chief U.S. District Judge Timothy M. Burgess to serve four years in federal prison, followed by three years of supervised release, for using the internet to threaten Bateman’s parents, two Anchorage Police Department officers and their families, and shoppers at a local business. After a three-day trial in October 2018, a federal jury convicted Bateman on all eight counts of threatening interstate communications.
According to evidence presented at trial, on Feb. 4, 2018, Bateman left his home in Anchorage on a one-way airline ticket to New York City. On Feb. 26, 2018, while in New York, Bateman created a text message thread to three people – two family members and a former employer, writing about why he left Alaska, his plans for making a living in New York, how those plans failed, and asked that someone buy him a ticket back to Alaska. After none of the text message recipients offered to buy him a ticket, Bateman responded with a series of messages threatening to shoot, poison, and cut the victims. One of the threats suggested that Bateman would commit a mass shooting.
Later that same day, Bateman threatened, via social media, to shoot and poison an Anchorage Police Officer and “several other people.” Bateman also sent threats to the Police Officer’s personal social media account. Further, Bateman sent threats to APD’s public Facebook page saying, among other things, “I am going to walk into a building with an AR15. I am going to hurt a lot of people.” Approximately seven minutes later, Bateman sent a message to the same APD account alleging that a specific address is where the Chief of Police lived.
At the sentencing hearing, Judge Burgess remarked that “words matter,” noting that the defendant’s threats had a “profound impact” on the victims.
The Federal Bureau of Investigation (FBI), with assistance from the Anchorage Police Department (APD), conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Jonas M. Walker.
Akron Man Pleads Guilty to Stealing FEMA Grant Funding Intended for Education ExpensesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Richard A. Lobur, 55, of Akron, NY, pleaded before U.S. District Judge Elizabeth A. Wolford to theft of government money. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney John D. Fabian, who is handling the case, stated that on January 12, 2015, the defendant deposited into his account at the Bank of Akron, $18,000 of grant funds intended to be used for educational expenses for his children. The funds were administered as part of a Federal Emergency Management Agency (FEMA) Staffing for Adequate Fire and Emergency Response (SAFER) grant.
Between January 12 and June 9, 2015, Lobur provided $15,000 of the grant funds to his children, but also converted more than $1,000 of the remaining $3,000 to his personal use. The defendant knew that he was not entitled to convert the grant funds to his own personal use and he knew that the intended and lawful use of the funds was for educational expenses for his children.
As part of his plea agreement, Lobur will pay restitution totaling $39,182.92. The money was used for, among other things: payments on a Yard Card, Discover Card, and FIA Card, which were used to buy a truck, lawnmower and camper, and a payment to Akron Mobile Home Park.
“It’s a sad day when a defendant chooses to line his own pockets with federal funding intended for the educational expenses of his own children,” stated U.S. Attorney Kennedy. “The SAFER grant is designed to allow individuals to serve the public as firefighters and first responders without the added burden and stress of having to figure out how to pay for their children’s education. Any misuse of such funding will not be tolerated and anyone who does attempt to abuse the program will be brought to justice.”
“The Department of Homeland Security (DHS), Office of Inspector General (OIG), is pleased by the assistance of the New York State Comptroller’s Office’s with the joint investigation to pursue criminal charges against Rick Lobur, a former firefighter in Akron, New York, for committing FEMA grant fraud,” stated John Tiano, Special Agent-in- Charge, Detroit Field Office. “The DHS-OIG will always relentlessly pursue those who selfishly use their position to betray the public trust.”
“Mr. Lobur took nearly $40,000 in federal grant money meant to further the education of firefighters and their families and instead used it for personal expenses including paying off his credit card debt and making loan payments,” said State Comptroller Thomas P. DiNapoli. “Thanks to my investigators and auditors working with the Federal Department of Homeland Security, Office of Inspector General, and the United States Attorney's Office for the Western District of New York, this shameless abuse of the public’s money was exposed. I thank United States Attorney James P. Kennedy and Acting Homeland Security Inspector General Jennifer L. Costello for their continued partnership.”
The plea is the result of an investigation by the Department of Homeland Security, Office of Inspector General, under the direction of Special Agent-in-Charge John Tiano, Detroit Field Office, and the New York State Comptroller’s Office, under the direction of New York State Comptroller Thomas DiNapoli.
Sentencing is scheduled for October 30, 2019, before Judge Wolford.
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Monday 29 July 2019
Wichita Man Pleads Guilty to Threatening Operation Rescue workerRead the Press Release
WICHITA, KAN. – A Wichita man pleaded guilty today to threatening an employee of the pro-life organization Operation Rescue, U.S. Attorney Stephen McAllister said.
Christopher M. Thompson, 22, Wichita, Kan., pleaded guilty of one count of making a threat. In his plea, he admitted making three phone calls to Operation Rescue in one day containing threats against the group’s employees.
Sentencing is set for Oct. 15. He faces a penalty of up to 20 years in federal prison and a fine up to $250,000. McAllister commended the FBI, the Wichita Police Department and Assistant U.S. Attorney Ryan McCarty for their work on the case.
Virginia Man Pleads Guilty to Producing Child PornographyRead the Press Release
HUNTINGTON, W.Va. – A Virginia man pled guilty today to a child pornography offense, announced United States Attorney Mike Stuart. Conner Ray Blevins, of Vinton, Virginia, entered his guilty plea to two counts of production of child pornography.
“Heinous crime,” said United States Attorney Mike Stuart. “There are far too many individuals like Blevins on social media with the intent of sexually exploiting children. We will prosecute every one we find and lock them up for as long as possible.”
Blevins admitted that on October 5, 2018, he traveled from his residence in Virginia to West Virginia, where he picked up two minors under the age of 12 with whom he had been communicating with over Facebook. Blevins took the minors to a hotel in Putnam County where he proceeded to record a video depicting himself engaging in sexually explicit conduct with one of the minors. Blevins also admitted to engaging in sexually explicit conduct with the other minor as well.
Blevins faces at least 15 and up to 30 years in federal prison when he is sentenced on October 28, 2019. Upon his release from prison, he will be required to serve a term of supervised release of at least five years and up to life. He will also be required to register as a sex offender.
The investigation was conducted by the Putnam County Sheriff’s Department, the Mason County Sheriff’s Department, the West Virginia State Police, and the Department of Homeland—Security Homeland Security Investigations. Assistant United States Attorney Jennifer Rada Herrald is in charge of the prosecution. The plea hearing was held before United States District Judge Robert C. Chambers.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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U.S. Attorney's Office Continues to Promote Elder Justice Initiative by Partnering with Meals on WheelsRead the Press Release
The U.S. Attorney’s Office for the Eastern District of North Carolina continues to promote the Department of Justice’s (DOJ) Elder Justice Initiative (EJI) throughout the Wake County area. On July 22, 2019, the Eastern District partnered with Meals on Wheels in Wake County to conduct Phase II of its outreach to approximately 1,300 seniors in the area to raise awareness about DOJ’s Elder Justice Initiative and provide facts about financial exploitation and how seniors can protect themselves from falling victim.
Below are some facts shared with the community about financial exploitation:
- Examples of financial exploitation include:
- Using ATM cards without permission
- Forging a signature on a check or property title (wills, deeds)
- Using a power of attorney to benefit oneself rather than the older adult
- Unauthorized sales, such as a family ring or the family farm
- Threats to harm precious property if money is not handed over
- How to protect yourself from financial exploitation
- Check your financial statements each month
- Store financial materials in a locked drawer or out of sight
- Talk to your bank about age-friendly banking options
- Contact a civil legal attorney before signing documents
- Visit ftc.gov every year to get your free credit reports
The mission of the Elder Justice Initiative is to support and coordinate DOJ’s enforcement and programmatic efforts to prevent and combat elder abuse, neglect, financial exploitation and scams that target our nation’s seniors by promoting justice for older adults; helping older victims and their families; enhancing state and local efforts through training and resources; and supporting research to improve elder abuse policy and practice.
For more information about DOJ’s efforts to prevent and combat elder abuse, please visit the Elder Justice Website at https://www.justice.gov/elderjustice. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. You can also contact the Victim Connect Hotline between 9am-6pm, Monday through Friday, at: 1- 855-4VICTIM (1-855-4842846), or contact the Elder Justice Coordinator at the U.S. Attorney’s Office for the Eastern District of North Carolina at (919) 856-4530.
- Examples of financial exploitation include:
Two Men Arrested for Conspiring to Provide Material Support to ISISRead the Press Release
TUCSON – John Demers, Assistant Attorney General for National Security, Michael Bailey, the United States Attorney for the District of Arizona, Michael McGarrity, Assistant Director of the FBI's Counterterrorism Division, and Sean Kaul, Special Agent in Charge of the FBI Phoenix Field Office, announced that on July 26, Ahmed Mahad Mohamed and Abdi Yemani Hussein, were arrested for conspiring to provide material support and resources to ISIS, a designated foreign terrorist organization.
According to the criminal complaint, the defendants had been in communication with an FBI undercover employee whom they believed was a supporter of ISIS ideology. These communications revealed the defendants’ desire to travel overseas in order to fight on behalf of ISIS or to conduct an attack within the United States if they were unable to travel. Ultimately, the defendants purchased airline tickets to travel to Egypt, with the intention to travel on to Sinai and join ISIS. FBI agents arrested Mohamed and Hussein after they checked in for their flight at the Tucson International Airport in Arizona.
According to court documents, both defendants came to the United States as refugees from Somalia. At the time of their arrest, Mohamed had obtained lawful permanent resident status and Hussein remained a refugee.
The prosecution is being handled by Kevin C. Hakala and Beverly Anderson, Assistant United States Attorneys in the District of Arizona, and Alicia Cook, Trial Attorney with the National Security Division’s Counterterrorism Section.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Two Men Arrested for Conspiring to Provide Material Support to ISISRead the Press Release
John Demers, Assistant Attorney General for National Security, Michael Bailey, the United States Attorney for the District of Arizona, Michael McGarrity, Assistant Director of the FBI's Counterterrorism Division, and Sean Kaul, Special Agent in Charge of the FBI Phoenix Field Office, announced that on July 26, Ahmed Mahad Mohamed and Abdi Yemani Hussein, were arrested for conspiring to provide material support and resources to ISIS, a designated foreign terrorist organization.
According to the criminal complaint, the defendants had been in communication with an FBI undercover employee whom they believed was a supporter of ISIS ideology. These communications revealed the defendants’ desire to travel overseas in order to fight on behalf of ISIS or to conduct an attack within the United States if they were unable to travel. Ultimately, the defendants purchased airline tickets to travel to Egypt, with the intention to travel on to Sinai and join ISIS. FBI agents arrested Mohamed and Hussein after they checked in for their flight at the Tucson International Airport in Arizona.
According to court documents, both defendants came to the United States as refugees from Somalia. At the time of their arrest, Mohamed had obtained lawful permanent resident status and Hussein remained a refugee.
The prosecution is being handled by Kevin C. Hakala and Beverly Anderson, Assistant United States Attorneys in the District of Arizona, and Alicia Cook, Trial Attorney with the National Security Division’s Counterterrorism Section.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Two Local Men Sentenced for Federal Drug CrimesRead the Press Release
HUNTINGTON, W.Va. – Three local men were sentenced today on federal drug crimes in United States District Court in Huntington, announced United States Attorney Mike Stuart.
“We’re working with our law enforcement partners 24/7 to identify and prosecute drug dealers like Pittman and Pardue who are poisoning our communities with meth and opioids,” said United States Attorney Mike Stuart.
Michael Pittman, 38, of Charleston, was sentenced to 30 months in prison for possessing with the intent to distribute methamphetamine and heroin. On October 9, 2018, officers with the Huntington Police Department were dispatched to the intersection of 18th Street West and Jefferson Avenue for a report of a man down. When they arrived on scene, they found Pittman laying in the middle of the road with no shirt or shoes on. Pittman told officers he had just injected heroin. Officers found approximately 53 grams of methamphetamine and approximately 9 grams of heroin in Pittman’s truck. Pittman admitted he intended to sell the methamphetamine and heroin. The Huntington Police Department conducted the investigation.
In a separate proceeding, Richard Pardue, 34, of Huntington, was sentenced to 21 months in prison for selling heroin. Pardue previously admitted that on January 18, 2017, he met a confidential informant in Ona, West Virginia. He gave the informant ½ gram of heroin in exchange for $60. The Violent Drug and Crime Task Force West conducted the investigation.
United States District Judge Robert C. Chambers imposed all of the sentences. Assistant United States Attorney Stephanie S. Taylor prosecuted the cases.
Both cases were prosecuted as part of Operation Synthetic Opioid Surge (S.O.S.), an enforcement surge that seeks to reduce the supply of deadly synthetic opioids in high impact areas.
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Two Former Vernon County Ambulance District Employees Sentenced for $270,000 EmbezzlementRead the Press Release
SPRINGFIELD, Mo. – The former director and the former bookkeeper of the Vernon County Ambulance District have been sentenced in federal court for embezzling more than $270,000 from the district.
Tina L. Werner, 53, and James D. McKenzie, 54, both of Nevada, Mo., were sentenced on Friday, July 26, by U.S. District Judge Roseann Ketchmark. Werner was sentenced to three years and 10 months in federal prison without parole. McKenzie was sentenced to 15 months in federal prison without parole. The court also ordered Werner and McKenzie to pay $260,000 in restitution to the ambulance district, for which they are jointly and severally liable.
In January 2019, Werner pleaded guilty to wire fraud and McKenzie pleaded guilty to misprision of a felony. McKenzie and Werner embezzled a total of $270,902 from the ambulance district from January 2013 to October 2015.
Although Werner pleaded guilty to only one count of wire fraud as a part of her plea agreement, according to court records, she committed numerous fraudulent transactions over a period of nearly three years. McKenzie willingly turned a blind eye to and concealed the actions of Werner, his employee with whom he was engaged in an adulterous relationship. The ambulance district suffered substantially as a result, to the point of having a lien filed against it for $213,158 for unpaid payroll taxes and taking out two substantial loans after the discovery of the fraud just to maintain its daily caretaking operations and pay outstanding debts.
McKenzie and Werner were employed with the ambulance district until October 2015, McKenzie as the director and Werner as a bookkeeper. McKenzie’s duties as director included managing the daily operations of the district, including the personnel and financial management of the district. McKenzie began his employment with the ambulance district in 1987. Werner’s duties as bookkeeper included managing payroll, conducting financial transactions and managing the accounts receivable. Werner began her employment in 2000.
Werner, utilizing her position as bookkeeper, began electronically transferring money from the ambulance district’s bank accounts into personal bank accounts held by herself and McKenzie in January 2013. Additionally, Werner initiated electronic bill payments from ambulance district bank accounts to pay the personal credit cards held by herself and McKenzie. Werner and McKenzie did not have authorization to conduct such payments and their actions caused the ambulance district to suffer financial loss.
Additionally, from January 2013 until October 2015, Werner and McKenzie issued payments from an ambulance district credit card account for the purpose of paying McKenzie’s personal utility bills and those of a McKenzie family member, resulting in the ambulance district suffering additional financial loss. Werner and McKenzie did not have authorization to conduct such payments.
Werner also falsified electronic payroll records and recorded additional overtime hours worked for herself and McKenzie. As a result, the ambulance district issued electronic payments to Werner and McKenzie for overtime hours that were not actually worked, resulting in the district falsely overpaying Werner and McKenzie, thereby suffering additional financial loss.
The ambulance district office provided opportunities for its employees to save money for the Christmas shopping season and to donate money for an annual toy drive. In addition to stealing money from the district’s operating account and utilizing district credit cards for personal benefit, Werner also embezzled over $95,000 from the employee Christmas account and over $111,000 from the charity toy drive account.
Werner attempted to conceal the embezzlement by entering a false deposit of $130,000 in a QuickBooks application, and by obtaining a $20,000 line of credit from OnDeck without the knowledge or authorization of the ambulance district’s board of directors. McKenzie and Werner destroyed financial and business documents belonging to the ambulance district while they were in the district’s office on Oct. 23, 2015, in an effort to conceal their embezzlement.
This case was prosecuted by Assistant U.S. Attorneys Steven M. Mohlhenrich and Casey Clark. It was investigated by the FBI and the Missouri State Highway Patrol.
Trucking School Owner and President Pleads Guilty in $4.2 Million Fraud for Collecting Tuition for Veterans Who Didn’t Attend ClassesRead the Press Release
LOS ANGELES – The owner and president of a San Fernando Valley trucking school pleaded guilty today to federal criminal charges for bilking the United States Department of Veterans Affairs out of more than $4 million in tuition and other payments after falsely certifying that veterans had attended classes that they never took.
Emmit Marshall, 52, of Woodland Hills, pleaded guilty to five felony counts of wire fraud. United States District Judge Stephen V. Wilson scheduled a November 18 sentencing hearing, where Marshall will face a statutory maximum sentence of 100 years in federal prison.
Marshall, the owner and president of Chatsworth-based Alliance School of Trucking (AST), admitted in his plea agreement that, from July 2011 until April 2015, he and co-defendant Robert Waggoner, 56, of Canyon Country, who was a director at AST, schemed to defraud the VA. Marshall and Waggoner recruited eligible veterans to take trucking classes paid under the Post-9/11 GI Bill. AST was certified to offer classes under the Post-9/11 GI Bill that included a 160-hour Tractor Trailer & Safety class and a 600-hour Select Driver Development Program.
Pursuant to the Post-9/11 GI Bill, the VA paid tuition and fees directly to the school at which the veteran was enrolled. The VA also paid a housing allowance to the veteran enrolled full-time in an approved program, and, in some cases, the VA paid a books and supplies benefit directly to the veteran. Marshall admitted that Waggoner and another individual recruited eligible veterans to enroll at AST by telling the veterans they could collect housing and other fees from the VA without attending the programs. Knowing that the vast majority of veterans enrolling at AST did not intend to attend any portion of those programs, Marshall and Waggoner created and submitted fraudulent enrollment certifications, according to Marshall’s plea agreement. They also created student files that contained bogus documents.
When they became aware of the investigation into their conduct, Marshall, Waggoner and others at AST removed fraudulent documents from student files, and Marshall later ordered that these files be destroyed, the plea agreement states.
From the end of 2011 through April 2015, as a result of the fraudulent scheme, the VA paid AST approximately $2.3 million in tuition and fee payments for veterans who purportedly attended approved programs at AST, according to the plea agreement. During that same period, the VA also paid approximately $1.9 million in education benefits directly to veterans who purportedly attended approved programs at AST, the plea agreement states. Investigators are continuing to finalize the exact loss figure, but the total loss to the VA is estimated to be approximately $4.2 million
Waggoner is scheduled to go to trial in this case on February 25, 2020.
This matter was investigated by the U.S. Department of Veterans Affairs’ Office of Inspector General, the U.S. Department of Justice Office of the Inspector General, and the Federal Bureau of Investigation.
This case is being prosecuted by Assistant United States Attorney Kimberly D. Jaimez of the Major Frauds Section.
Third Portland-Area Man Sentenced in Methamphetamine Trafficking ConspiracyRead the Press Release
PORTLAND, Ore.—U.S. Attorney Billy J. Williams announced today that a third Portland-area man was sentenced to federal prison for his role in a conspiracy to traffic large quantities of methamphetamine into the Portland Metropolitan Area.
Ulises Mayares Jr., 26, of Portland, was sentenced today to 48 months in prison and five years’ supervised release for conspiracy to possess with the intent to distribute methamphetamine.
Mayares’ sentence follows two sentences previously imposed for related conduct. On June 3, 2019, Francisco Alvarez, 49, also of Portland, was sentenced to 188 months in prison and five years’ supervised release. On May 1, 2019, Carlos Ortega-Estrella, 35, of Beaverton, Oregon, was sentenced to 140 months in prison and five years’ supervised release.
According to court documents, over a period of years, Alvarez, a convicted felon, supervised a drug trafficking organization responsible for obtaining hundreds of pounds of methamphetamine from a supplier for distribution in and around Portland. He was typically the only person in the trafficking organization who had direct contact with Ortega-Estrella, his supplier.
Alvarez supervised multiple runners, including Mayares, who stored methamphetamine, firearms and large amounts of cash in locations throughout Multnomah County. Mayares was Alvarez’s closest associate and supervising runner. He was responsible for obtaining methamphetamine from Alvarez, storing it, giving it to other runners to distribute and collecting money from other runners for their services. Mayares admitted to making some deliveries himself and, at times, dealing directly with Ortega-Estrella.
Ortega-Estrella would transport large quantities of drugs from California and deliver them to Oregon. He maintained two separate residences in Beaverton, Oregon to store and repackage methamphetamine, heroin and cocaine. Upon searching these properties, investigators found several pounds of these drugs along with two assault-style weapons, four semiautomatic pistols and approximately $90,000 in cash.
In a search of Mayares’ residence, investigators seized an additional 28 pounds of methamphetamine, $90,000 in cash, and two handguns.
Ortega-Estrella pleaded guilty to possession with intent to distribute methamphetamine on June 20, 2018. Alvarez and Mayares each pleaded guilty to conspiracy to possess with the intent to distribute methamphetamine on March 11 and 21, 2019, respectively.
This case was investigated by the U.S. Drug Enforcement Administration (DEA), the Gresham Police Department and the Multnomah County Sheriff’s Office. It was prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Texas Man Pleads Guilty to Possession of Credit Card Counterfeiting DeviceRead the Press Release
CHARLESTON, W.VA.– United States Attorney Mike Stuart announced that an Austin, Texas man pled guilty today to being in possession of a device to counterfeit credit cards. Tofyk Ali Oro entered his guilty plea to illegal possession, production, or trafficking of device-making equipment. The case was investigated by the United States Secret Service and United States Postal Inspection Service.
“Great work by federal law enforcement to thwart Oro’s plan,” said United States Attorney Mike Stuart. “Their work has prevented the victimization of many West Virginians.”
Oro admitted that on November 30, 2018 that he shipped 55 credit cards and the device equipment from Austin, Texas to Charleston, West Virginia. Oro also admitted the intent with the 55 cards was to defraud individuals whose accounts were linked to those cards.
Oro faces up to 15 years imprisonment when he is sentenced on October 21, 2019.
Assistant United States Attorney Chris Arthur handled the prosecution. The plea hearing was held before United States District Judge Joseph R. Goodwin.
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Texas Man Convicted of Conspiracy to Commit Theft of Trade SecretsRead the Press Release
WASHINGTON – A Texas man was convicted today by a federal jury in Washington D.C. of conspiracy to commit theft of trade secrets.
Following a nine-day trial, Shan Shi, 54, of Houston, Texas, was convicted of one count of conspiracy to commit theft of trade secrets. Shi was originally indicted in June 2017 for conspiracy to commit theft of trade secrets, and a superseding indictment containing one count of conspiracy to commit economic espionage and one count of conspiracy to commit money laundering charges issued in April 2018. Shi was acquitted on the other charges.
“Shan Shi and his coconspirators went to great lengths to cash in on the Chinese government’s desire to obtain syntactic foam technology,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “As this case demonstrates, the Department of Justice is and will remain on the front lines of defending U.S. companies against the theft of their trade secrets.”
“The jury’s verdict makes clear that Shan Shi conspired to steal trade secrets by poaching employees from a U.S. company and enticing them to bring technical data to his company,” said Assistant Attorney General for National Security John C. Demers. “He did this against the backdrop of China’s strategic plan to close the gap between China and United States in buoyancy technology and with the benefit of millions of dollars of funding from China. Like our many other prosecutions implicating China’s economic aggression, this case exemplifies both the threat to American companies and our commitment to confront it.”
“We take very seriously the theft of intellectual property that was developed in the United States through long years of research, development, and innovation,” said U.S. Attorney Jessie K. Liu for the District of Columbia. “Shi chose to steal the secrets of a U.S. company rather than do the hard work necessary to succeed honestly in the free market. He is now being held accountable for that choice.”
“Shan Shi attempted to obtain sophisticated U.S. technology with both military and civilian uses for the ultimate benefit of China,” said Assistant Director John Brown of the FBI’s Counterintelligence Division. “It is no secret that China is determined to achieve superiority in virtually all high-tech areas, and the FBI is equally determined to stop individuals who commit illegal acts to help China achieve its goals. The stakes are high both for U.S. national security and for American companies who invest so much money and time on research and development.”
“FBI Houston’s elite counterintelligence investigators worked for years to dismantle Mr. Shi’s prolific network and bring him to justice,” said Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office. “Our highly trained agents and intelligence analysts work every day to protect American businesses from unscrupulous foreign adversaries. We are pleased by today’s verdict, and we will continue to aggressively protect America's economic security and intellectual property from those who would do us harm.”
Evidence introduced at trial established that Shi conspired with others to steal trade secrets from a Houston-based company, Trelleborg Offshore, relating to syntactic foam, a strong, lightweight material with commercial and military uses that is essential for deep-sea oil and gas drilling. In public statements of its national priorities, China has made clear its desire to develop this technology. Shi sought to obtain information about syntactic foam for the benefit of CBM-Future New Material Science and Technology Co. Ltd. (CBMF), a Chinese company based in Taizhou, and for the ultimate benefit of the People’s Republic of China. Four of Shi’s codefendants—some of whom worked at Trelleborg—had pleaded guilty to conspiring to steal trade secrets, and two testified as cooperating witnesses at trial. From 2014 to 2017, CBMF sent Shi’s company in Houston approximately $3.1 million from China in order to promote Shi’s activity in the United States.
Sentencing has been set for Oct. 25, 2019.
The FBI’s Houston Field Office conducted the investigation. Senior Counsel Joss Nichols of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Jeffrey Pearlman and Luke Jones for the District of Columbia are prosecuting the case.
Texas Man Convicted of Conspiracy to Commit Theft of Trade SecretsRead the Press Release
A Texas man was convicted today by a federal jury in Washington D.C. of conspiracy to commit theft of trade secrets.
Following a nine-day trial, Shan Shi, 54, of Houston, Texas, was convicted of one count of conspiracy to commit theft of trade secrets. Shi was originally indicted in June 2017 for conspiracy to commit theft of trade secrets, and a superseding indictment containing one count of conspiracy to commit economic espionage and one count of conspiracy to commit money laundering charges issued in April 2018. Shi was acquitted on the other charges.
“Shan Shi and his coconspirators went to great lengths to cash in on the Chinese government’s desire to obtain syntactic foam technology,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “As this case demonstrates, the Department of Justice is and will remain on the front lines of defending U.S. companies against the theft of their trade secrets.”
“The jury’s verdict makes clear that Shan Shi conspired to steal trade secrets by poaching employees from a U.S. company and enticing them to bring technical data to his company,” said Assistant Attorney General for National Security John C. Demers. “He did this against the backdrop of China’s strategic plan to close the gap between China and United States in buoyancy technology and with the benefit of millions of dollars of funding from China. Like our many other prosecutions implicating China’s economic aggression, this case exemplifies both the threat to American companies and our commitment to confront it.”
“We take very seriously the theft of intellectual property that was developed in the United States through long years of research, development, and innovation,” said U.S. Attorney Jessie K. Liu for the District of Columbia. “Shi chose to steal the secrets of a U.S. company rather than do the hard work necessary to succeed honestly in the free market. He is now being held accountable for that choice.”
“Shan Shi attempted to obtain sophisticated U.S. technology with both military and civilian uses for the ultimate benefit of China,” said Assistant Director John Brown of the FBI’s Counterintelligence Division. “It is no secret that China is determined to achieve superiority in virtually all high-tech areas, and the FBI is equally determined to stop individuals who commit illegal acts to help China achieve its goals. The stakes are high both for U.S. national security and for American companies who invest so much money and time on research and development.”
“FBI Houston’s elite counterintelligence investigators worked for years to dismantle Mr. Shi’s prolific network and bring him to justice,” said Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office. “Our highly trained agents and intelligence analysts work every day to protect American businesses from unscrupulous foreign adversaries. We are pleased by today’s verdict, and we will continue to aggressively protect America's economic security and intellectual property from those who would do us harm.”
Evidence introduced at trial established that Shi conspired with others to steal trade secrets from a Houston-based company, Trelleborg Offshore, relating to syntactic foam, a strong, lightweight material with commercial and military uses that is essential for deep-sea oil and gas drilling. In public statements of its national priorities, China has made clear its desire to develop this technology. Shi sought to obtain information about syntactic foam for the benefit of CBM-Future New Material Science and Technology Co. Ltd. (CBMF), a Chinese company based in Taizhou, and for the ultimate benefit of the People’s Republic of China. Four of Shi’s codefendants—some of whom worked at Trelleborg—had pleaded guilty to conspiring to steal trade secrets, and two testified as cooperating witnesses at trial. From 2014 to 2017, CBMF sent Shi’s company in Houston approximately $3.1 million from China in order to promote Shi’s activity in the United States.
Sentencing has been set for Oct. 25, 2019.
The FBI’s Houston Field Office conducted the investigation. Senior Counsel Joss Nichols of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Jeffrey Pearlman and Luke Jones for the District of Columbia are prosecuting the case.
South Point Man Sentenced for Federal Meth ChargeRead the Press Release
HUNTINGTON, W.Va. – A South Point, Ohio man who was caught selling methamphetamine in Huntington last year was sentenced to 62 months in federal prison, announced United States Attorney Mike Stuart. Jose Cisneros, 28, previously entered a guilty plea to distributing methamphetamine. Stuart commended the investigative efforts of the FBI Drug Task Force.
“We’re prosecuting record numbers of meth dealers and the convictions are resulting in significant prison sentences,” said United States Attorney Mike Stuart. “Meth dealers should take heed.”
On October 25, 2018, an informant working at the direction of the FBI contacted Cisneros to arrange a meth transaction. Cisneros subsequently met the informant at a location in Huntington where he sold the informant one and a half ounces of methamphetamine in exchange for $650. Cisneros was arrested on November 6, 2018, in the 2900 block of 5th Avenue in Huntington and agents seized additional meth that Cisneros intended to distribute.
Assistant United States Attorney Joseph F. Adams handled the prosecution. The sentence was imposed by United States District Judge Robert C. Chambers.
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September 11th Victim Compensation Fund to End Award Reductions and Restore Previously Reduced Awards Following the Permanent Authorization of the FundRead the Press Release
President Donald Trump today signed into law H.R. 1327, The Never Forget the Heroes: James Zadroga, Ray Pfeifer, and Luis Alvarez Permanent Authorization of the September 11th Victim Compensation Fund (VCF) (VCF Permanent Authorization Act). The Act extends the VCF’s claim filing deadline from Dec. 18, 2020, to Oct. 1, 2090, and appropriates such funds as may be necessary to pay all approved claims.
Attorney General William P. Barr noted the Department’s strong support for the VCF and its continuing commitment to providing compensation to those who have suffered as a result of the terrorist attacks of September 11, 2001. “The VCF is an extraordinarily successful program, having awarded over $5.2 billion in compensation on more than 23,000 claims from individuals who have suffered physical health conditions, or from families of those who have died, as a result of exposure at the sites in New York City, at the Pentagon, and in Shanksville. With 20,000 claims currently awaiting consideration, and more certain to be filed in the months and years ahead, today’s action ensures that the VCF can continue in its successful effort to compensate every deserving individual impacted by the tragic events of September 11,” said Attorney General Barr.
The VCF’s Special Master Rupa Bhattacharyya, who was appointed to her position by the Attorney General in July 2016, reflected on the significance of today’s signing: “This is a momentous day for the VCF and the 9/11 community, and we are extremely grateful for this show of confidence from Congress and the President. The entire VCF team is ready and eager to move forward into the next phase of this successful program with renewed energy and a reinvigorated clarity of purpose, and, as always, we remain dedicated to serving the needs of the 9/11 community.”
In February of this year, the Special Master announced that she had determined that the $7.375 billion of appropriated available funding was insufficient to compensate all pending claims and all claims anticipated to be filed by the previous claim filing deadline of Dec. 18, 2020. As a result, she implemented reductions to awards to ensure, as required by law, that the VCF did not expend funds beyond its appropriated limit. With the enactment of the VCF Permanent Authorization Act, the Special Master has determined that the VCF’s funding is now sufficient to pay all pending and projected claims without the need for any continued reductions in awards.
Under the Act, the VCF is required to issue payments to any claimants who were impacted by the reductions in order to make up the difference between the reduced award that was paid and the unreduced value that would have been awarded had the reductions not been necessary. The law requires that the VCF issue these payments in the first fiscal year beginning after enactment of the VCF Permanent Authorization Act, which is the government’s fiscal year 2020 beginning on Oct. 1, 2019. Recognizing the urgent needs of this community, the VCF is committed to beginning this process immediately, taking the steps necessary to notify each of the nearly 1,700 affected individuals of their unreduced award prior to Sept. 11, 2019. The VCF will begin processing the additional payment immediately following that notification, assuming the VCF has the documentation required to pay the claim.
“By this year’s anniversary of the September 11, 2001, terrorist attacks, we hope to have begun the payment process on unreduced awards for all previously-reduced claims,” said VCF Special Master Bhattacharyya. “We look forward to completing that process as quickly as possible so that we can continue the important work of providing needed compensation to those who are suffering.”
For additional information about the VCF and how to file a claim, and for detailed information about the implementation of the VCF Permanent Authorization Act, please visit the VCF’s website at www.vcf.gov. If you have any questions about the claim form, the website, or the VCF process, please contact the VCF’s toll-free Helpline at 1-855-885-1555.
Seattle Tech Worker Arrested for Data Theft Involving Large Financial Services CompanyRead the Press Release
A former Seattle technology company software engineer was arrested today on a criminal complaint charging computer fraud and abuse for an intrusion on the stored data of Capital One Financial Corporation, announced U.S. Attorney Brian T. Moran. PAIGE A. THOMPSON a/k/a erratic, 33, made her initial appearance in U.S. District Court in Seattle today and was ordered detained pending a hearing on August 1, 2019.
According to the criminal complaint, THOMPSON posted on the information sharing site GitHub about her theft of information from the servers storing Capital One data. The intrusion occurred through a misconfigured web application firewall that enabled access to the data. On July 17, 2019, a GitHub user who saw the post alerted Capital One to the possibility it had suffered a data theft. After determining on July 19, 2019, that there had been an intrusion into its data, Capital One contacted the FBI. Cyber investigators were able to identify THOMPSON as the person who was posting about the data theft. This morning agents executed a search warrant at THOMPSON’s residence and seized electronic storage devices containing a copy of the data.
“Capital One quickly alerted law enforcement to the data theft -- allowing the FBI to trace the intrusion,” said U.S. Attorney Moran. “I commend our law enforcement partners who are doing all they can to determine the status of the data and secure it.”
Computer fraud and abuse is punishable by up to five years in prison and a $250,000 fine.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI. The case is being prosecuted by Assistant United States Attorneys Steven Masada and Andrew Friedman.
thompson_complaint.pdfSeattle Felon Arrested with Cache of Firearms Including Assault Weapons and ‘Bump Stocks’Read the Press Release
A 66-year-old Seattle resident was arrested this morning for illegally possessing approximately 20 firearms following the serving of a search warrant at a home he owns, announced U.S. Attorney Brian T. Moran. PARK QUAN was arrested after FBI agents investigating a data theft served a search warrant on his home and discovered the cache of weapons. QUAN has two federal convictions for firearms violations and is prohibited from possessing firearms. QUAN made his initial appearance in U.S. District Court in Seattle today. He remains detained pending a hearing on August 1, 2019.
According to the criminal complaint, agents investigating the data theft were sweeping the residence for safety when they observed numerous firearms in a bedroom used by QUAN. Agents observed approximately twenty firearms in the bedroom, including what appeared to be an AR15-style assault rifle, an AK47-style assault rifle, and handguns; firearm accessories, including bump stocks, scopes, and grips; ammunition; and gun powder. Agents also encountered what appear to be fake grenades in the bedroom.
QUAN has a 1983 conviction in Washington for being a felon in possession of explosives and a 1991 conviction in Texas for possessing an unregistered machine gun. QUAN is prohibited from possessing firearms.
Being a felon in possession of a firearm is punishable by up to ten years in prison and a $250,000 fine.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI and the Bureau of Alcohol, Tobacco, Firearms & Explosives. The case is being prosecuted by Assistant United States Attorneys Steven Masada and Andrew Friedman.
Registered Sex Offender Indicted for Child Pornography Production in WisconsinRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that on July 23, 2019 a federal grand jury returned a two-count indictment against Timothy L. Tyler (age: 40) of Milwaukee, WI.
Tyler faces charges alleging he distributed and possessed child pornography contrary to Title 18, United States Code, Sections 2252A(a)(2)(A) and (a)(5)(B). If convicted of all of the charges, Tyler will serve a mandatory 15 years in federal prison.
This case was investigated by the Federal Bureau of Investigation and the High Technology Unit of The Milwaukee Police Department. It will be prosecuted by Assistant United States Attorney Megan J. Paulson.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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Randolph County woman sentenced for methamphetamine chargeRead the Press Release
ELKINS, WEST VIRGINIA – Gina Carol McCauley, of Beverly, West Virginia, was sentenced today to 60 months incarceration for her role in a methamphetamine distribution operation, United States Attorney Bill Powell announced.
McCauley, age 38, pled guilty to one count of “Conspiracy to Distribute Methamphetamine” and one count of “False Statement in Connection with the Acquisition of a Firearm” in April 2019. McCauley admitted to conspiring with another to distribute methamphetamine in Randolph County from March to November of 2018. McCauley also admitted to lying to a firearms dealer when purchasing a .380 caliber pistol and 49 rounds of .380 caliber ammunition.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Bureau of Alcohol, Firearms, Tobacco and Explosives, The Mountain Region Drug & Violent Crime Task Force, the Greater Harrison Drug &Violent Crime Task Force, a HIDTA-funded initiative, the West Virginia State Police, Upshur County Sheriff’s Office, Lewis County Sheriff’s Office, the Buckhannon Police Department, and the Weston Police Department investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. District Judge Thomas S. Kleeh presided.
Putnam County Man Sentenced to Prison for Lying on ATF Form to Obtain FirearmsRead the Press Release
HUNTINGTON, W.Va. – A Putnam County man was sentenced to prison for lying on an ATF form in an attempt to obtain firearms. Stephen Cyrus, 35, sentenced to 5 months in prison by United States District Judge Robert C. Chambers.
“Persons with domestic violence convictions are prohibited from having firearms for good reason,” said United States Attorney Mike Stuart. “And we are working with ATF to keep guns out of the wrong hands and prevent gun crimes.”
Cyrus previously admitted that on March 20, 2018, he attempted to obtain four firearms from Ultimate Pawn & Performance. On the ATF form he lied about whether he had been previously convicted of domestic violence. Cyrus was prohibited from obtaining firearms under federal law because he was convicted of domestic battery on January 19, 2018 in Putnam County, West Virginia. The Bureau of Alcohol, Tobacco, Firearms & Explosives conducted the investigation.
Assistant United States Attorney Stephanie Taylor handled the prosecution.
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Prisoners Sentenced to an Additional 20 Years in Prison for Attempting to Kill a Federal Correctional Officer, Assault on a Federal Correctional OfficerRead the Press Release
FRESNO, Calif. — U.S. District Judge Lawrence J. O’Neill sentenced Jonathan Mota, 37, and Dominic Adams, 27, today to 20 years in prison, following their convictions at trial, U.S. Attorney McGregor W. Scott announced.
Mota was sentenced for attempting to kill a federal officer, and Adams was sentenced for assault on a federal officer. The sentences are to be served consecutively to the federal sentences they are currently serving, and will be followed by three years of supervised release.
According to court documents and evidence presented at trial, on October 6, 2017, Mota, Adams and four other inmates brutally attacked a Federal Bureau of Prisons officer who was a teacher working at the federal penitentiary in Atwater. The officer was repeatedly stabbed with homemade knives and kicked and beaten by the inmates.
According to court documents, on the day of the attack, Mota and Eric Chiago, 28, entered the copy room where the officer was making copies and repeatedly stabbed him. William Roe Acevedo, 33; Michael Martin, 30; Joey Thomas, 26; and Adams stationed themselves outside the room. When the victim was able to free himself and escape down the hallway, the six defendants tackled him and wrestled him to the floor where they repeatedly kicked, punched and stabbed him. Adams and Thomas also assaulted an officer who was responding to the attack.
Chiago, Acevedo, Martin, and Thomas pleaded guilty to aggravated assault. Chiago was sentenced to 15 years and eight months in prison, Acevedo was sentenced to 13 years in prison, Martin was sentenced to 12 years and six months in prison, and Thomas was sentenced to eight years and one month in prison.
This case was the product of an investigation by the Federal Bureau of Investigation and the Federal Bureau of Prisons. Assistant U.S. Attorney Kirk E. Sherriff prosecuted the case.
Pittsfield Man Sentenced to Two Years for Conspiring to Violate the Federal Firearms LawsRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Ethan Rumery, 24, of Pittsfield, Maine, was sentenced today in U.S. District Court by Judge Nancy Torresen to two years in prison and three years of supervised release for conspiring to violate the federal firearms laws. The defendant pled guilty on February 25, 2019.
According to court records, between February 2015 and September 2016, Rumery conspired with others to fraudulently obtain firearms from federally licensed dealers in Maine. When buying the firearms, Rumery and his coconspirators falsely claimed that they were the actual purchasers of the firearms. The firearms were, in fact, purchased for and sold to individuals residing outside of Maine.
The case was investigated by the Massachusetts State Police; the Newport and Pittsfield (Maine) Police Departments; and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
New Jersey Man Sentenced for Federal Drug and Firearms OffensesRead the Press Release
HUNTINGTON, W.Va. – A New Jersey man who was caught selling drugs near a school in West Huntington last September was sentenced to 72 months in federal prison, announced United States Attorney Mike Stuart. Eric Moore Bellamy, 51, previously entered guilty pleas to possession with intent to distribute crack cocaine and heroin within 1,000 feet of a school and possession of firearms in furtherance of a drug trafficking crime. Stuart commended the investigative efforts of the Huntington Police Department.
“We don’t want drug dealers in our communities and this drug dealer should have stayed in New Jersey,” said United States Attorney Mike Stuart. “We certainly won’t tolerate drug peddling near our schools. Get near our children with your poisons and I’m going to hammer you to the fullest extent of the law. Our school zones are drug free zones. Cross that line and it’s a one way ticket to a federal pen.”
On September 12, 2018, after officers with the Huntington Police Department developed information that Bellamy was selling drugs in West Huntington, a search warrant was executed at his residence located at 1037 Madison Avenue. During the search, officers seized crack cocaine and heroin from a dresser in the residence. In a separate drawer of the same dresser containing the drugs, officers seized a loaded Springfield .45 caliber pistol, a loaded Ruger Model P85, 9mm pistol, and a loaded Imperial Metal, Model 9, .22 caliber revolver. Bellamy was arrested and admitted to officers that he possessed the drugs and firearms and that he had been selling both crack and heroin in the West Huntington area.
Bellamy’s residence is located within 1,000 feet of Grace Christian School, a private elementary and secondary school. Bellamy admitted at that he possessed the firearms to serve as protection based on his distribution of drugs. Bellamy was also prohibited from possessing firearms based on multiple prior felony convictions he received in the State of New Jersey.
Assistant United States Attorney Joseph F. Adams handled the prosecution. The sentence was imposed by United States District Judge Robert C. Chambers.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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###Multiple Rapid City Defendants Indicted on Federal Gun ChargesRead the Press Release
United States Attorney Ron Parsons announced that three men and one woman from Rapid City, South Dakota, have been indicted by a federal grand jury on federal gun charges. All Defendants were indicted on July 23, 2019.
Julie Cagle, a/k/a Julie Davis, a/k/a Julie Dzuirman, age 48, appeared before U.S. Magistrate Judge Daneta Wollmann on July 26, 2019, and pled not guilty to the Indictment charging her with Possession of a Firearm by a Prohibited Person.
The maximum penalty upon conviction is 10 years in federal prison and/or a $250,000 fine, 3 years supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Cagle, a previously convicted felon who is prohibited from possessing firearms, unlawfully being in possession of two firearms in June 2019 at Rapid City.
Mason Means, age 21, appeared before U.S. Magistrate Judge Daneta Wollmann on July 26, 2019, and pled not guilty to the Indictment charging him with Possession of a Firearm by a Prohibited Person.
The maximum penalty upon conviction is 10 years in federal prison and/or a $250,000 fine, 3 years supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Means, a previously convicted felon who is prohibited from possessing firearms, unlawfully possessing a semi-automatic pistol in June 2019 at Rapid City.
Wanbli Morris, age 34, appeared before U.S. Magistrate Judge Daneta Wollmann on July 26, 2019, and pled not guilty to the Indictment charging him with Possession of a Firearm by a Prohibited Person and Possession of a Stolen Firearm.
The maximum penalty upon conviction for each count is 10 years in federal prison and/or a $250,000 fine, 3 years supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Morris, a previously convicted felon who is prohibited from possessing firearms, unlawfully possessing a stolen semi-automatic pistol in April 2019 at Rapid City.
Juan Rosales, age 45, appeared before U.S. Magistrate Judge Daneta Wollmann on July 26, 2019, and pled not guilty to the Indictment charging him with Possession of a Firearm by a Prohibited Person.
The maximum penalty upon conviction is 10 years in federal prison and/or a $250,000 fine, 3 years supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Rosales, a previously convicted felon who is prohibited from possessing firearms, unlawfully possessing a semi-automatic pistol in June 2019 at Rapid City.
The charges are merely accusations and all Defendants are presumed innocent until and unless proven guilty.
These cases are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
The investigations are being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson is prosecuting the cases.
All four Defendants have been detained pending trial. Trial dates have not been set.
Moldovan National Sentenced to 41 Months in Prison for Faking His Death for $2 Million Insurance PayoutRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of IGOR VOROTINOV, 55, to 41 months in prison for faking his death in order to collect a $2 million life insurance payment. VOROTINOV, who pleaded guilty on May 3, 2019, was sentenced today before Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minnesota.
According to the defendant’s guilty plea and documents filed in court, in March 2010, IGOR VOROTINOV obtained a $2 million life insurance policy on his own life from Mutual of Omaha Insurance Company (Mutual of Omaha), and designated his wife, IRINA VOROTINOV, as the primary beneficiary.
According to the defendant’s guilty plea and documents filed in court, on October 1, 2011, the Moldovan police discovered the corpse of an adult male by the side of a road near the Moldovan village of Cojusna. Based upon the dead body and the defendant’s identification documents in its clothing, the Moldovan police and a Moldovan morgue official purported to determine that Igor Vorotinov had died of a heart attack on October 1, 2011. After his purported death, VOROTINOV began using the name “Nikoly Patoka” and lived in Transnistria, a small Russian-controlled region of Moldova, from approximately 2012 until approximately November 2018.
On November 7, 2011, IRINA VOROTINOV submitted a claim for death benefits against the Mutual of Omaha life insurance policy, claiming that VOROTINOV had died in the Republic of Moldova on October 1, 2011. VOROTINOV was aware of his former wife’s filing of the fraudulent death claim, and therefore continued living and doing business as “Nikoly Patoka.” On March 23, 2012, Mutual of Omaha mailed a check payable to IRINA VOROTINOV in the amount of $2,048,414.09 to her home in Maple Grove, Minnesota.
According to documents filed in court, IRINA recruited a third party to open an account at a local branch of U.S. Bank and to deposit the insurance check into the account. She then caused the third party to transfer $1.5 million to another account at U.S. Bank in the name of her son, ALKON VOROTINOV. Between March 29, 2012 and January 2015, more than $1.5 million of the life insurance proceeds were transferred to accounts located in Switzerland and Moldova.
According to documents filed in court, on November 27, 2013, ALKON VOROTINOV was stopped by Customs and Border Protection (CBP) in Detroit, Michigan upon returning from a trip to Moldova. A computer seized by CBP agents contained digital photographs of IGOR VOROTINOV taken on April 19, 2013 and on May 12, 2013, in which IGOR is alive.
This case is the result of an investigation conducted by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. The Justice Department’s Office of International Affairs handled the extradition in this matter.
Assistant U.S. Attorneys David J. MacLaughlin and Matthew Ebert prosecuted the case.
Defendant Information:
IGOR VOROTINOV, 55
No known address
Convicted:
- Mail Fraud, 1 count
Sentenced:
- 41 months in prison
- Three years of supervised release
- $2,048,414.09 in restitution to Mutual of Omaha
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Michigan Woman Sentenced for Fraud and Identity TheftRead the Press Release
United States Attorney Joe Kelly announced today that on July 26, 2019, United States District Court Judge Robert F. Rossiter, Jr. sentenced Mechelle Anna Major, age 32, of Clinton Township, Michigan, to 31 months’ imprisonment to be followed by three years of supervised release for fraudulent use of social security numbers and aggravated identity theft. There is no parole in the federal system.
Major, using stolen identifications of credit worthy actual people, in October 2018 at the Viaero cellphone retail stores in Norfolk and Wayne, Nebraska, purchased and attempted to purchase high-end cellphones. Major provided high-quality counterfeit driver’s licenses and social security numbers of actual people to the Viaero stores for the purpose of qualifying for credit to purchase the cellphones. Upon Major’s arrest on October 25, 2018 at the Viaero store in Wayne, additional sets of counterfeit identification documents were found in her purse. Currently there are outstanding warrants for Major in the States of Kentucky and Colorado for similar criminal conduct related to identity thefts.
This case was investigated by the Office of Inspector General for the Social Security Administration, the Federal Bureau of Investigation and the Wayne Police Department, Nebraska.
Mexican Man Pleads Guilty to Illegally Reentering the United StatesRead the Press Release
A Mexican national pleaded guilty today to illegally reentering the United States after he had been deported.
According to court documents, Marcos Ordonez-Ortiz, 28, was found illegally in the United States two months ago when he was arrested and convicted in Virginia Beach for public swearing or intoxication. He had been deported at taxpayer expense eight months earlier, after sustaining a Virginia Beach DUI conviction and after overstaying authorization for voluntary departure. He then returned to Hampton Roads sometime in that eight-month period.
Ordonez-Ortiz pleaded guilty to illegal reentry of a previously deported alien, and faces a maximum penalty of two years in prison when sentenced on November 18. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Lyle A. Boelens, Acting Field Office Director for U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) Washington, D.C., made the announcement after Senior U.S. District Judge Robert G. Doumar accepted the plea. Assistant U.S. Attorney William B. Jackson is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-112.
Man Sentenced for Role in Firearms TraffickingRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to more than one year in prison for using his girlfriend to making false statements when acquiring eight firearms between 2012 and 2016.
“Straw purchasing a firearm is a federal crime with serious consequences,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “This case is representative of a focused effort here in EDVA to investigate and prosecute individuals who straw purchase and illegally traffick firearms. Once on the streets, straw purchased firearms often end up in the hands of prohibited persons like Toole, who are legally prohibited from obtaining and possessing firearms.”
According to court documents, Jeffrey Quinton Toole, 56, recruited his girlfriend Yolanda Lisa Stone, 47, to purchase eight firearms for him at federally licensed firearms dealers in the Richmond metropolitan area between 2012 and 2016. When purchasing these firearms, Stone falsely stated on forms she was legally required to complete that she was the actual purchaser of the firearms, when in fact, she was straw purchasing them for Toole. Toole sold three of the guns to Abdul Shahid Davis, who then sold them to an undercover New York City Police Detective. Toole kept four of the guns that were turned over to agents during the investigation, while one gun remains missing. Toole has been convicted of multiple felonies, including a 1991 conviction for making false statements on Virginia state firearms purchase forms.
“This case serves as another perfect example of why ATF will continue to vigorously pursue and arrest anyone involved in the trafficking of illegal firearms,” said Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division. “Falsifying forms for the purpose of purchasing a firearm is more than a mere paperwork violation—it’s a federal crime. These criminals are putting guns in the hands of serious criminals who pose a significant threat to the safety of our communities.”
Seven other defendants have earned felony convictions and have been sentenced for making false statements in connection with this scheme:
Name, Age
Hometown
Felony Conviction
Sentence
Cherie Elanda Wyatt, 42
Richmond
False Statement to Acquire Firearm
1 year of probation
Kevin Edward Wilson, 29
Powhatan
False Statement to Acquire Firearm
2 years of probation, 180 days of home detention
Denise Michelle Sinkford, 41
Richmond
False Statement to Acquire Firearm
2 years of probation, 180 days of home detention
Shanta Teisha Brown, 29
Richmond
False Statement to Acquire Firearm
2 years of probation, 60 days of home detention
Evelyn Jean Collins-Chandler, 54
Richmond
Conspiracy to Make False Statements to Acquire Firearm
2 years of probation, 60 days of home detention
Ebony Danielle Clarke, 34
Richmond
False Statement to Acquire Firearm
3 years of probation, 210 days of home detention
Jeremy Durand Lewis, 35
Chesterfield County
False Statement to Acquire Firearm
2 1/2 years in prison
Two defendants have pleaded guilty to making false statements on firearm forms and are awaiting sentencing:
Name, Age
Hometown
Convictions
Sentencing Date
Brandon Andrea Powell, 40
Chester
False Statement to Acquire Firearm
October 3
Yolanda Lisa Stone, 47
Richmond
False Statement to Acquire Firearm
August 5
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck. Assistant U.S. Attorneys Michael C. Moore and Kenneth Simon prosecuted the case.
Special assistance in this investigation and prosecution was provided by the New York City Police Department and the New York County District Attorney’s Office.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 3:18-37, 56, 77, 86, 110, 120, 138, 154, and 3:19-cr-13.
Man Pleads Guilty to 2016 Armed CarjackingRead the Press Release
NEWPORT NEWS, Va. – A Hampton man pleaded guilty today on charges of brandishing a firearm during a 2016 carjacking.
According to court records, in December 2016, Daniel Lee Pittman, Jr., 20, approached the driver of a Porsche Panamera outside a Hampton barbershop and pointed a semi-automatic firearm at the driver’s head, ordering him to “run his pockets” and get out of the vehicle. Pittman fled in the Porsche and shortly thereafter he led police on a high-speed chase up to speeds of 100 mph. Police terminated the pursuit and later located the stolen car in a nearby Hampton neighborhood. Pittman was identified by the victim approximately two hours after the carjacking.
Pittman faces a mandatory minimum sentence of seven years and a maximum of life in prison when sentenced on October 30. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, Terry L. Sult, Chief of Hampton Police Division, and Anton Bell, Hampton Commonwealth’s Attorney made the announcement after U.S. District Judge Raymond A. Jackson accepted the plea. Special Assistant U.S. Attorneys Amy E. Cross and Christopher O. Taylor are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:19-cr-36.
Main figure in fraudulent debt-collection scheme sentenced to federal prisonRead the Press Release
SAVANNAH, GA: A Florida man who set up and operated a fake debt collection business has been sentenced to federal prison for fraud.
Vincent Plumb, 56, of Sarasota, Fla., was sentenced to 48 months in prison by U.S. District Court Judge Lisa G. Wood after pleading guilty to one count of Conspiracy to Commit Wire Fraud, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. In addition, Plumb and other previously sentenced defendants are ordered to forfeit assets as part of $130,523.13 in restitution to more than 200 victims who were defrauded in the scheme, and to serve three years of supervised release after completion of his incarceration. There is no parole in the federal system.
According to court documents and testimony, Plumb – who originally is from London, England – set up and led Crown Oaks Media, a fraudulent debt-collection business in Douglas, Ga. Employees of the Coffee County business, using written scripts, would call victims demanding payment of fictitious payday loan and credit card debt, often threatening service with legal documents.
Individuals who worked at Crown Oaks Media reported the scheme to authorities, who initiated an investigation in January 2016. Plumb was indicted in 2018, and pled guilty in December 2018. Three co-conspirators, including Plumb’s son, Alex Plumb, previously were sentenced for their involvement in the scheme.
“Most junk telephone calls are merely annoying and inconvenient, but these scam calls cheated vulnerable people out of their hard-earned money to line the pockets of greedy crooks,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “Vincent Plumb will find his telephone privileges are significantly limited from inside federal prison.”
“This case was initiated by the U.S. Secret Service when one good citizen saw behavior that they deemed reprehensible by their fellow coworkers,” said Glen M. Kessler, Resident Agent in Charge of the Savannah Resident Office of the U.S. Secret Service. “When defendants like Vincent Plumb choose to victimize the elderly and veterans of our country, more citizens should step up and alert law enforcement to assist in closing these fraudulent telemarketing operations.”
“This sentencing further shows that IRS Criminal Investigation is committed to identifying and prosecuting those who try to take advantage of our most vulnerable citizens. People who create elaborate schemes that have no purpose other than to mislead others run the very high risk of prosecution,” said Thomas J. Holloman, III, Special Agent in Charge of the Atlanta Field office of the Internal Revenue Service Criminal Investigation.
The case was investigated by the U.S. Secret Service, the IRS Criminal Investigation, the Coffee County Sheriff’s Office and the Georgia Southern University Armstrong Campus Cyber Forensics Department, and prosecuted for the United States by Assistant U.S. Attorney Marcela C. Mateo and the Asset Recovery Unit for the U.S. Attorney’s Office.
Levant Man Sentenced to 16 Months for Conspiring to Make False Statements to a Federal Firearms DealerRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Zachary Morneault, 35, of Levant, Maine, was sentenced today in U.S. District Court by Judge Nancy Torresen to 16 months in prison and three years of supervised release for making false statements to a federal firearms dealer. The defendant pled guilty on October 2, 2018.
According to court records, in late February 2018, Brewer Police Department (BPD) officers seized a .380 caliber handgun while executing a drug trafficking search warrant. The firearm had been purchased about ten days earlier at an area firearms dealer. An investigation revealed that the defendant, and at least two others, agreed to have one conspirator falsely claim that she was the true purchaser of the firearm when the actual buyer was another conspirator who was paying her to make the purchase.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the BPD, with assistance provided by the Penobscot County Sheriff’s Office.
Large Scale Drug Trafficking Organization Taken Down in Colorado SpringsRead the Press Release
DENVER – Fourteen individuals have been charged and arrested for illegal drug distribution as well as firearm crimes that took place in Colorado Springs, announced U.S. Attorney Jason Dunn, FBI Denver Division Special Agent in Charge Dean Phillips, Colorado Springs Police Chief Vince Niski and El Paso County Sheriff Bill Elder. In addition to the arrests, agents and officers seized methamphetamine, heroin, cocaine, fentanyl, cash and firearms.
According to court records, in 2018, detectives with the Colorado Springs Metro Vice, Narcotics, and Intelligence Division (Metro VNI) initiated an investigation into individuals distributing illegal narcotics to patrons at various bars and nightclubs in downtown Colorado Springs and in unincorporated El Paso County, Colorado. Due to the scope of this investigation, Metro VNI requested assistance from the Federal Bureau of Investigation (FBI) Southern Colorado Safe Streets Task Force. From mid-2018 to early 2019, numerous arrest and search warrants were authored and executed. The following items were seized as part of this investigation:
- Approximately 70 pounds of methamphetamine
- Approximately 15 pounds of heroin
- Approximately 4 pounds of cocaine
- Approximately 3,100 fentanyl pills
- Approximately $140,000.00 in US currency
- 29 Firearms (including: semi -automatic handguns, assault rifles and shotguns)
Those arrested include:
United States v. Jesse Santiago Anaya et al (19-cr-234-PAB) (4 defendants)
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- 1,413 grams of methamphetamine
- 263.2 grams of cocaine
- 89.3 grams of heroin
- 13 guns
United States v. Missael Leyva Castro (19-cr-172-CMA) (1 defendant)
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- 3,703 grams of methamphetamine
- 210 grams of heroin
- 1 gun
United States v. Cristian Diaz De Leon Beltran (19-cr-071-RM) (1 defendant)
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- 1,764 grams of heroin
- 5,868 grams of methamphetamine
- 1 gun
United States v. Maria Ruiz Del Carmen Gutierrez et al (19-cr-236-REB) (3 defendants)
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- 12,431 grams of methamphetamine;
- 2,796 grams of heroin;
- 1,097.4 grams of cocaine
- 8 guns
United States v. Fabian Perales (19-cr-053-RBJ) (1 defendant)
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- 3,113 grams of methamphetamine
- 1,470 grams of heroin
- 3,234 tablets of fentanyl (approximately 330.838 grams) (1 defendant)
United States v. Jeff Skelton (19-cr-030-WJM)
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- 1,909 grams of methamphetamine
- 1,909 grams of methamphetamine
United States v. Octavio Solis-Garcia (19-cr-103-WJM) (1 defendant)
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- 70 grams of cocaine
- 2 guns
United States v. Daniel James Ingham (19-cr-175-WYD) (1 defendant)
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- 20 grams of heroin
- 1 gun
“This investigation proves that when it comes to stopping major drug trafficking in Colorado, great federal-state partnerships make great cases,” said U.S. Attorney Jason Dunn. “The Colorado Springs Police Department, the El Paso County Sheriff’s Office and the FBI did terrific work and the results speak for themselves.”
“The FBI’s Safe Streets Task Force, working in conjunction with the Colorado Springs Police Department and El Paso County Sheriff’s Office, brought criminals to justice for weapons and drug-related crimes,” said FBI Denver Special Agent in Charge Dean Phillips. “This positive outcome reflects how collaboration makes us a formidable force in ensuring public safety.”
This case is being investigated by the FBI, the Colorado Springs Police Department’s Metro Vice Narcotics and Intelligence Division (VNI). The defendants are being prosecuted by Assistant U.S. Attorneys Peter McNeilly and Justin DeRosa.
Judge Sentences Erie Man to More Than 6 Years in Prison for Violating Laws Relating to the Sexual Exploitation of ChildrenRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been sentenced in federal court to six years and eight months (80 months) in prison, followed by five years supervised release and ordered to pay $1,500 in restitution on his conviction of violating federal laws relating to the sexual exploitation of children, United States Attorney Scott W. Brady announced today.
United States District Judge David S. Cercone imposed the sentence on Terry Chase White, 51.
According to information presented to the court, White received computer images and movies depicting prepubescent minors engaging in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation and the Pennsylvania State Police for the investigation leading to the successful prosecution of White.
Japanese Manufacturer Agrees to Plead Guilty to Fixing Prices for Suspension Assemblies Used in Hard Disk DrivesRead the Press Release
NHK Spring Co. Ltd. (NHK Spring), a Japanese manufacturer of suspension assemblies used in hard disk drives, has agreed to plead guilty for its role in a global conspiracy to fix prices, the Department of Justice announced today.
According to a one-count felony charge filed today in the U.S. District Court for the Eastern District of Michigan in Detroit, NHK Spring reached agreements with co-conspirators to refrain from price competition and allocate their respective market shares for suspension assemblies used in hard disk drives. Pursuant to their agreements not to compete, NHK Spring and its co-conspirators exchanged pricing information including anticipated pricing quotes, which they used to inform their negotiations with U.S. and foreign customers that purchased suspension assemblies and produced hard disk drives for sale in, or delivery to, the U.S. and elsewhere. NHK Spring participated in the conspiracy from at least as early as May 2008 and continuing until at least April 2016. Subject to court approval, the company has agreed to plead guilty, to pay a $28.5 million criminal fine, and to cooperate in the ongoing investigation.
“Today’s charge affirms the Antitrust Division’s commitment to eradicate price fixing by companies, foreign or domestic,” said Assistant Attorney General Makan Delrahim of the Antitrust Division. “While these parts are physically small, they are critical to the operation and performance of electronic devices, and their impact on American consumers and businesses is direct and substantial.”
“The FBI will aggressively investigate price-fixing schemes to ensure American businesses and consumers are not negatively impacted,” said Assistant Director of the FBI’s Criminal Investigative Division Robert Johnson. “Our international corruption squads will pursue these cases at home or abroad in order to uncover this type of illegal activity. No one should underestimate the broad reach of the FBI.”
“Activities related to illegal price-fixing and market allocation do not promote an environment conducive to open competition. When this occurs, the consumer is not guaranteed the best products at the lowest prices,” said Special Agent in Charge Scott Pierce, U.S. Postal Service Office of Inspector General. “The U.S. Postal Service spends hundreds of millions of dollars every year on supplies and services related to information technology, including computers and associated hardware. Along with the Department of Justice and our federal law enforcement partners, the USPS Office of Inspector General will aggressively investigate those who would engage in this type of harmful conduct.”
Suspension assemblies are components of hard disk drives, which are used to store information electronically and are incorporated into computers or sold as stand-alone electronic storage devices. Hard disk drives use magnetic recording heads to read from and write onto rapidly spinning disks. Suspension assemblies hold the recording heads in close proximity to the disks and provide the electrical connection from the recording heads to the hard disk drives’ circuitry.
The charge against NHK Spring resulted from an ongoing investigation being conducted by the Antitrust Division’s Washington Criminal II Office, the International Corruption Unit of the FBI, and the United States Postal Service Office of Inspector General. Anyone with information in connection with this investigation is urged to call the Washington Criminal II Section at 202-598-4000, or visit https://www.justice.gov/atr/contact/newcase.html.
Jamaican National and Leader of Drug Conspiracy Is Sentenced to 27 Years in Prison for Trafficking MethamphetamineRead the Press Release
CHARLOTTE, N.C. – Today, Chief U.S. District Judge Frank D. Whitney sentenced Basil Lanas Noble, 50, a Jamaican national residing in Palm Springs, Florida, to 27 years in prison and five years of supervised release on drug trafficking conspiracy and money laundering conspiracy charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
According to filed court documents and today’s sentencing hearing, from at least 2017 to November 2018, Noble was the leader of a drug conspiracy responsible for trafficking large amounts of narcotics in and around Mecklenburg County. Noble and his co-conspirators received the drugs from a supply source in Mexico. According to court records and statements made in court, when law enforcement arrested Noble in November 2018, they seized approximately 1.4 kilograms of methamphetamine from inside his vehicle. Law enforcement also recovered one kilogram of cocaine and one kilogram of heroin, as well as three firearms and a bulletproof vest, from a residence that Noble maintained for drug trafficking purposes. Court records show that the conspiracy was also responsible for laundering the drug proceeds and sending the money back to the supply source in Mexico.
Noble previously pleaded guilty to conspiracy to distribute and possession with intent to distribute methamphetamine; distribution and possession with intent to distribute methamphetamine; and money laundering conspiracy.
Noble will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
This case is as part of an ongoing investigation by the Wester District’s Organized Crime Drug Enforcement Task Force (OCDETF) that has resulted in the federal arrest and prosecution of more than 200 methamphetamine traffickers and the seizure of more than 100 pounds of methamphetamine, $1,000,000 in United States currency and more than 60 firearms. 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 drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
In making today’s announcement U.S. Attorney Murray thanked the investigators from the Department of Homeland Security, Homeland Security Investigations and Huntersville Police Department, as well as the Drug Enforcement Administration, the Charlotte-Mecklenburg Police Department, North Carolina State Highway Patrol, North Carolina State Bureau of Investigation, North Carolina Alcohol Law Enforcement, the Gastonia Police Department, the Gaston County Police Department, the Mooresville Police Department, the Cleveland County Sheriff’s Office, the Hickory Police Department, the Caldwell County Sheriff’s Office, the Catawba County Sheriff’s Office, the Iredell Count Sheriff’s Office, the Alexander County Sheriff’s Office, the Boone Police Department, the Mocksville Police Department, the Cornelius Police Department, the Rowan County Sheriff’s Office, and the Mint Hill Police Department for their assistance in this investigation.
Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Jacksonville Gang Member Sentenced to Five Years in Federal Prison for Selling Crack CocaineRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Natario Bernard Peterson (22, Jacksonville) to five years in federal prison for distributing crack cocaine. Peterson had pleaded guilty on March 27, 2019.
According to court documents and information presented at sentencing, Peterson, a mid-level member of the Rollin’ 20s gang, sold crack cocaine to an undercover detective with the Jacksonville Sheriff’s Office (JSO) on three occasions in 2018. On one of those occasions, Peterson teamed up with co-defendant Dashawn Rose to sell the crack cocaine. During the transaction, Rose was concealing a large, AR-style pistol with a drum magazine in his pants.
On July 18, 2019, Rose pleaded guilty to distribution of crack cocaine and possession of a firearm in furtherance of a drug trafficking crime. He faces a mandatory minimum sentence of five years, and up to life, in federal prison. His sentencing is set for October 30, 2019.
At the time, the Bureau of Alcohol, Tobacco, Firearms and Explosives, in conjunction with JSO, was conducting a long-term investigation of the Rollin’ 20s gang. In September 2018, Peterson admitted that he had authorized another Rollin’ 20s gang member, David Brian Edwards, to carjack his ex-girlfriend at gunpoint. Edwards entered his ex-girlfriend’s vehicle and forced her, at gunpoint, to follow another vehicle, which was driven by Peterson. After the vehicles came to a stop, Edwards put his gun to the victim’s head and told her that he was there to kill her. Edwards then hit the victim in the face multiple times with the gun and kicked her as she escaped from the vehicle.
Edwards was prosecuted by the State Attorney’s Office and sentenced to 20 years in state prison for his role in the armed carjacking.
In September and October 2018, Peterson stated his intention to prevent the carjacking victim and a witness from testifying against him. In one conversation, he stated that he was going to get the witness “out the way” and “we gonna have a funeral.”
“This sentencing represents ATF’s commitment to continually work with our law enforcement partners to protect the citizens of our communities from those that choose to commit violent firearms-related crimes,” said ATF Special Agent in Charge Daryl McCrary.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Jacksonville Sheriff’s Office, and the State Attorney’s Office, Fourth Judicial Circuit. It is being prosecuted by Assistant United States Attorney Laura Cofer Taylor.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.