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5 September 2019
Hartford Man Sentenced to Prison for Role in Gang-Related Drug Trafficking RingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that NOEL CORTES, 55, of Hartford, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 27 months of imprisonment, followed by three years of supervised release, for distributing fentanyl.
According to court documents and statements made in court, this matter stems from an investigation conducted by the FBI’s Northern Connecticut Violent Crimes Task Force and Hartford Police Department’s Vice and Narcotics Division into the trafficking of narcotics and associated violence in Hartford’s South End by members and associates of the Almighty Latin Kings Nation (“Latin Kings”). The investigation, which included court-authorized wiretaps, physical surveillance and controlled purchases of narcotics, revealed that two alleged members of the Latin Kings operated separate drug trafficking organizations that distributed fentanyl, heroin, cocaine, and crack cocaine. The organizations used multiple locations to process, package, store and distribute narcotics, and possessed firearms in furtherance of their drug trafficking activities.
In May and June 2015, investigators conducted several controlled purchases of suspected fentanyl from Richard Colon, also known as “Droopy,” of Hartford. On May 15, 2018, Cortes delivered 200 bags of fentanyl on behalf of Colon to complete one of the transactions.
Cortes has been detained since his arrest on July 24, 2018. On April 24, 2019, he pleaded guilty to one count of possession with intent to distribute, and distribution of, fentanyl.
Cortes’ criminal history dates to 1985 and includes convictions for robbery, assault, narcotics and firearms offenses.
On August 20, 2019, Colon pleaded guilty to one count of conspiracy to possess with intent to distribute fentanyl. He awaits sentencing.
This matter is being investigated by the FBI’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department. The Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division and Shooting Task Force have provided valuable assistance to the investigation.
The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Guatemalan Man Charged with Marijuana Cultivation Operation in National Forest in Tulare CountyRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Oscar Alfredo Castanaza-Ortega, 34, of Guatemala, charging him with conspiring to manufacture, distribute, and possess with intent to distribute marijuana, manufacturing marijuana, damaging public lands and natural resources, and possessing a firearm in furtherance of drug trafficking, U.S. Attorney McGregor W. Scott announced.
According to court documents, law enforcement officers located 2,864 marijuana plants in the Twin Springs area of the Sequoia National Forest in Tulare County. Castanaza was found in the grow site with a loaded .38-caliber firearm and a box of .38-caliber ammunition.
The marijuana cultivation operation caused significant damage to the land and natural resources. Native trees, brush and other vegetation were cut down, and large amounts of fertilizers and pesticides were found in the area. Thousands of pounds of trash, irrigation hose, and camping equipment were found at the site.
This case is the product of an investigation by the U.S. Forest Service with assistance from the California Department of Justice’s Campaign Against Marijuana Planting (CAMP) and the Tulare County Sheriff’s Office. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
If convicted of the drug conspiracy and manufacturing offense, Castanaza faces a mandatory minimum statutory penalty of 10 years and a maximum penalty of life in prison, as well as a fine of up to $10 million. The environmental charge carries a maximum statutory penalty of 10 years in prison and a fine of up to $250,000. Castanaza faces a mandatory consecutive prison term of five years. In addition, he may be liable for restitution to the Forest Service for damage sustained to the land and natural resources as a result of the cultivation activities. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Guatemalan Citizen Sentenced to 60 Months for Alien SmugglingRead the Press Release
ALBANY, NEW YORK – Jose Eduardo Lopez-Hernandez, age 21, and a citizen of Guatemala who was residing in Providence, Rhode Island, was sentenced yesterday to 60 months in prison for smuggling aliens.
The announcement was made by United States Attorney Grant C. Jaquith and Robert N. Garcia, Chief Patrol Agent, United States Border Patrol, Swanton Sector.
As part of his guilty plea, Lopez-Hernandez admitted that on August 22, 2018, he and a co-defendant were paid to travel from Rhode Island to Chateaugay, New York, where they picked up five Romanian citizens who had just illegally entered the United States from Canada. When Border Patrol attempted to stop their vehicle, the co-defendant led Border Patrol on a high-speed chase before crashing the vehicle in Ellenburg, New York. Lopez-Hernandez, the co-defendant, and three of the Romanians fled the crash scene, but were all apprehended within hours; no one was injured.
Following his term of imprisonment, Lopez-Hernandez will be transferred to the custody of the U.S. Department of Homeland Security, for removal proceedings.
This case was investigated by the Border Patrol, and was prosecuted by Assistant U.S. Attorneys Katherine Kopita and Douglas Collyer.
Gregg County Man Sentenced for Federal Financial CrimesRead the Press Release
TYLER, Texas – A 59-year-old Longview, Texas, man has been sentenced to federal prison for criminal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown and FBI Special Agent in Charge Matthew J. DeSarno.
Timmy Lynn Vaughn pleaded guilty on May 2, 2019, to making false statements to a bank and was sentenced to 12 months and one day in federal prison today by U.S. District Judge Jeremy D. Kernodle. Vaughn was also ordered to pay restitution in the amount of $145,100.
According to information presented in court, in March of 2016, Vaughn applied for a personal loan at a bank located in the Eastern District of Texas using the name of another individual. The promissory note and documents submitted to the bank in connection with the application contained forged signatures of the borrower. As a result, the loan was approved and the proceeds remitted by a cashier’s check payable to one of Vaughn’s businesses. The cashier’s check was deposited the same day into an account controlled by Vaughn.
This case was investigated by the Federal Bureau of Investigation’s Tyler Resident Agency and prosecuted by Assistant U.S. Attorney Frank Coan.
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Former Vallejo Elementary School Teacher Pleaded Guilty to Attempted Enticement of a MinorRead the Press Release
SACRAMENTO, Calif. — Andrew Stephen Lund, 37, of Vallejo, pleaded guilty today to attempted online enticement of a minor to engage in sexual activity, U.S. Attorney McGregor W. Scott announced.
According to court documents, in April 2018, Lund engaged in online sexual chats with a person whom he believed to be a 14-year-old girl, but who was in fact an undercover agent. Lund was an elementary school teacher in Vallejo at the time he attempted to entice the minor.
This case is the product of an investigation by the Homeland Security Investigations and the Silicon Valley Internet Crimes Against Children Task Force. Assistant U.S. Attorney Amy Schuller Hitchcock is prosecuting the case.
Lund is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on Dec. 5. Lund faces a mandatory statutory minimum of 10 years in prison and a maximum of life in prison, as well as a fine up to $250,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Former Topsham Resident Pleads Guilty to Possessing Child PornographyRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Gary Boshoff, 52, formerly of Topsham, Maine, pleaded guilty today in U.S. District Court to possessing child pornography.
According to court records, in August 2016, agents investigating the sharing of child pornography over the internet downloaded files depicting minors engaged in sexually explicit conduct from a computer using an Internet Protocol address assigned to Boshoff’s residence in Topsham. A search warrant was obtained for the residence, and agents executed the warrant in October 2016. Boshoff admitted to agents that he had used the internet to search for and download child pornography images. A review of a laptop seized under the warrant revealed images depicting minors engaged in sexually explicit conduct.
Boshoff faces up to 10 years in prison and a $250,000 fine. He also faces a term of supervised release following his release from prison of no less than five years and up to life. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Maine State Police Computer Crimes Unit, the Naval Criminal Investigative Service and the Topsham Police Department. The 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. Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Hospital Worker Sentenced to 14 Years for Child Pornography OffensesRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza today sentenced Vorarut Vorasiangsuk (37, Orlando) to 14 years in federal prison for receipt and possession of child pornography. The court also ordered Vorasiangsuk to forfeit multiple computers and hard drives, which he had used to commit the offenses.
A federal jury had found Vorasiangsuk guilty on May 14, 2019.
According to court documents, evidence presented at trial, and information discussed during the sentencing proceeding, Vorasiangsuk used an online file-sharing program to download and view child pornography for years. The FBI initially identified Vorasiangsuk after he distributed child pornography to an undercover agent through the file-sharing program.
Upon executing a search warrant at Vorasiangsuk’s residence, agents recovered numerous electronic devices that contained more than 3,800 images and more than 140 videos depicting the sexual abuse of children, including many young children. During an interview with agents, Vorasiangsuk admitted that he had been viewing child pornography for approximately 16 years. During that same timeframe, he had worked with infants and children as a respiratory therapist at a local hospital.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Emily C. L. Chang.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Burbank Elementary School Teacher Pleads Guilty to Producing Child Pornography Depicting His Former StudentRead the Press Release
LOS ANGELES – A former elementary school teacher pleaded guilty today to federal criminal charges for sexually exploiting his 15-year-old former student by producing pornographic images of her.
Sean David Sigler, 55, of Burbank, pleaded guilty to two felony counts of production of child pornography. Sigler, whom a federal grand jury indicted in May 2018, previously taught fifth-grade students at Bret Harte Elementary School in Burbank and at Gardner Street Elementary School in Hollywood.
According to a criminal complaint filed in this case, Sigler became involved in the victim’s personal life after the child left Sigler’s classroom. He then used his position as former teacher, mentor, and father figure to gain the trust of the victim and her parent. Sigler then exploited that trust to gain sexual access to the minor victim. Over the course of 15 months, Sigler regularly transported the victim to his home, where he gave her alcohol and pills and then photographed and filmed his sexual activity with her. Sigler began having sex with the minor victim when she was just 15 years old.
Sigler admitted in his plea agreement that he created multiple sexually explicit videos of the victim, and that he also took sexually explicit photographs of her, beginning when she was 15 years old. Some of child pornography Sigler created included images and videos involving sadomasochistic conduct. Sigler also created child pornography by modifying a pornographic image of the minor victim’s body and digitally superimposing the face of a different underage former student. Sigler’s digital devices contained numerous images and videos of his sexual acts with the victim, as well as more than 5,000 images of child pornography depicting unknown pre-pubescent minors, according to court documents.
As part of his plea agreement, Sigler agreed to forfeit $271,506 in cash seized by the government, which constitutes the proceeds from the sale of the home where Sigler produced child pornography.
United States District Judge John A. Kronstadt has scheduled a December 5 sentencing hearing, at which time Sigler will face a statutory maximum sentence of 60 years in federal prison. Each count of production of child pornography also carries a mandatory minimum sentence of 15 years in federal prison.
This matter was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Burbank Police Department.
The case is being prosecuted by Assistant United States Attorneys Damaris Diaz of the Violent and Organized Crime Section and Devon Myers of the Cyber and Intellectual Property Crimes Section.
This case is part of Project Safe Childhood, which is a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Launched by the Justice Department in 2006 and led by the U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.
Five former Verizon employees indicted for opening bogus accounts with stolen identity informationRead the Press Release
ATLANTA – Seven defendants, including five former Verizon store employees, have been indicted for opening Verizon accounts using stolen identity information and then fraudulently charging tens of thousands of dollars’ worth of merchandise to those accounts.
“These former employees abused their positions—and numerous unsuspecting victims—by allegedly using stolen identity information to steal thousands of dollars,” said U.S. Attorney Byung J. “BJay” Pak. “Identity theft remains an all-too-common scourge causing widespread damage. We are targeting the problem through our valued partnerships with federal, state, and local authorities and with private companies.”
“This investigation and subsequent indictments demonstrate the Secret Service’s commitment to safeguarding innocent victims, our financial institutions, and our communities,” said Kimberly A. Cheatle, Special Agent in Charge of the United States Secret Service, Atlanta Field Office. “We will continue to collaborate with our law enforcement partners and the United States Attorney’s Office to arrest individuals who steal from unsuspecting victims.”
According to U.S. Attorney Pak, the charges, and other information presented in court: From about November 2018 through May 2019, five Verizon employees allegedly opened numerous fraudulent customer accounts at three Verizon stores in Georgia, located in Newnan, Buckhead, and Smyrna. The employees obtained and used stolen personally identifiable information (PII) to open the accounts. The scheme involved a group of “runners,” who also brought stolen PII into the stores. The PII belonged to real people and included names, addresses, dates of birth, and Social Security numbers. Using the stolen information, the corrupt employees created Verizon accounts in the victims’ names, without the victims’ knowledge. The employees ran credit checks on the victims before opening the accounts, using the victims’ Social Security numbers.
The defendants then used the accounts to purchase tens of thousands of dollars’ worth of wireless phones and accessories. After the fraudulent purchases, the accounts went into default, causing the victims to receive bills for the merchandise charged on the fraudulent accounts. Verizon immediately terminated the employees upon discovering the fraud.
The grand jury returned a 36-count indictment charging the following individuals with conspiracy, access device fraud, and aggravated identity theft:
- Edward Bolden, Jr., 37, of Newnan, Georgia, was the former General Manager of the Newnan store.
- Roland C. Newell, 31, of Newnan, Georgia, worked as a Solutions Specialists at the Newnan store.
- Robert A. Woods, 30, of Atlanta, Georgia, worked as a Solutions Specialists at the Newnan store.
- Christian R. James, 36, of Savannah, Georgia, worked as a Solutions Specialist at the Buckhead store.
- Marchel D. Robinson, 33, of Riverdale, Georgia, was charged as a runner in the scheme.
- Eric Gamboa, 39, of Conley, Georgia, was charged as a runner in the scheme.
The grand jury returned a separate 21-count indictment also charging the following individual with conspiracy, access device fraud, and aggravated identity theft:
- James C. Miller, 34, of Atlanta, Georgia, worked as a Solutions Specialist at the Smyrna store.
The defendants were indicted by a federal grand jury on August 28, 2019. Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove their guilt beyond a reasonable doubt at trial.
This case is being investigated by the U.S. Secret Service. Verizon’s Corporate Security Investigations Department in Atlanta provided valuable assistance to law enforcement through the investigation.
Assistant U.S. Attorney Stephen H. McClain, Chief of the Complex Frauds Section, is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
- Edward Bolden, Jr., 37, of Newnan, Georgia, was the former General Manager of the Newnan store.
Federal Grand Jury Indictments Allege Drug Trafficking Ring that Smuggled Hundreds of Pounds of Cocaine, Ecstasy, Other NarcoticsRead the Press Release
LOS ANGELES – Thirteen people were arrested today on two federal grand jury indictments alleging a conspiracy to export hundreds of pounds of narcotics, including cocaine, heroin and methamphetamine, from Mexico through Southern California and into Canada.
Three defendants were arrested in the Los Angeles area, while the others were arrested in the Seattle and Vancouver, Canada areas. Three additional defendants are currently in state custody and will be transferred over to federal custody at a later date.
The indictments unsealed today charge a total of 30 defendants with a series of narcotics-related offenses, including conspiracies to distribute, import, and export controlled substances. The indictments further allege that the organization imported MDMA, or ecstasy, from Canada to Southern California in exchange for other drugs.
According to the indictments and other court documents, the defendants, one of whom was arrested on August 24 and remains in federal custody, were members of related international drug trafficking organizations that worked together to traffic bulk quantities of cocaine, methamphetamine and heroin from Mexico to Canada through Southern California, including at locations in Costa Mesa, Compton, Ventura, and Redlands.
The drugs would be exchanged for either cash or bulk quantities of ecstasy, the indictments allege. Some of the defendants allegedly also conspired to transport narcotics to Australia from Southern California. The drug trafficking organizations included members of Canadian, Mexican, Serbian, Chinese, and Sudanese organized crime groups, according to court documents.
The defendants allegedly used modified cellular devices with military-grade end-to-end encryption to communicate with each other regarding their drug trafficking business, including the transportation of narcotics between the United States and Canada. These devices are manufactured primarily by Canadian companies that remove most functionality from the phones, leaving only an encrypted email system, court papers state.
In total, law enforcement seized approximately 428.5 kilograms (944.7 pounds) of cocaine, nine kilograms (19.8 pounds) of heroin, 46.6 kilograms (102.7 pounds) of methamphetamine, and 46.12 kilograms (106.1 pounds) of MDMA. Law enforcement also seized approximately $811,000 in Canadian currency.
Those defendants arrested today in the U.S. will appear this afternoon in United States District Court, including in downtown Los Angeles.
If convicted of all charges, the defendants would face a statutory maximum sentence of life in federal prison and a mandatory minimum sentence of 10 years in federal prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This matter was investigated by the Federal Bureau of Investigation, the Royal Canadian Mounted Police, the Los Angeles Police Department, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Critical support was provided by the Toronto Police Service, the Sudbury Police Service, the Hamilton Police Service, Peel Regional Police, the Hawthorne Police Department, the Baldwin Park Police Department, the West Covina Police Department, the Fontana Police Department, the California Highway Patrol, the U.S. Drug Enforcement Administration, the Department of Justice Canada, and the Criminal Division’s Office of International Affairs. This investigation is part of the Justice Department's Organized Crime Drug Enforcement Task Force (OCDETF).
This case is being prosecuted by Assistant United States Attorney Victoria A. Degtyareva of the International Narcotics, Money Laundering, and Racketeering Section.
Indictment 1 Indictment 2Father and Son Owners of Ambulette Company Plead Guilty to $8.6 Million Healthcare Kickback SchemeRead the Press Release
Earlier today in federal court in Brooklyn, Igor Radinovskiy and Aleksandr Radinovskiy, co-owners of Sabe Ambulette Services Inc., d/b/a Mobility Transportation, located in Brooklyn and North Bellmore, New York, pleaded guilty to one count of conspiracy to offer and pay health care kickbacks and one count of conspiracy to defraud the lawful functions of the Internal Revenue Service.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Scott J. Lampert, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General, New York Region (HHS-OIG), and Jonathan D. Larsen, Acting Special Agent-in-Charge, IRS Criminal Investigation (IRS-CI), announced the guilty pleas.
“The Radinovskiys used their ambulette company as a vehicle to falsely bill Medicaid for transportation services performed by drivers who were not enrolled in the Medicaid program, in exchange for kickbacks from the defendants,” stated United States Attorney Donoghue. “With today’s guilty pleas, the defendants have been held accountable for this scheme that they carried out at the expense of the taxpayer-funded program.”
According to court filings and admissions by the defendants, Igor Radinovskiy and Aleksandr Radinovskiy, father and son respectively, paid kickbacks to co-conspirator drivers for recruiting Medicaid beneficiaries for transportation to clinics in Brooklyn and Queens, and referring those beneficiaries to the defendants’ company. Those drivers were not enrolled in the Medicaid program, and were not authorized to bill Medicaid for the transportation. The defendants, whose ambulette company was enrolled in Medicaid, billed the government program for the drivers’ services, kept 15 to 20 percent of the Medicaid reimbursements and kicked back 80 to 85 percent to the unauthorized drivers. In total, between January 2008 and April 2018, the defendants and their co-conspirators paid more than $8.6 million in kickbacks.
For the calendar years 2008 through 2013, the defendants filed false tax returns, reporting the kickback payments as legitimate business expenses, under-reporting business income and claiming false business deductions.
The FBI, HHS-OIG and IRS-CI investigated the case, which was prosecuted by the Medicare Fraud Strike Force, under the supervision by the United States Attorney’s Office for the Eastern District of New York and the Criminal Division’s Fraud Section. Trial Attorney Andrew Estes of the Fraud Section is in charge of the prosecution.
The Defendants:
IGOR RADINOVSKIY
Age: 60
Brooklyn, New YorkALEKSANDR RADINOVSKIY
Age: 37
Brooklyn, New YorkE.D.N.Y. Docket No. 19-CR-373 (FB)
Father and Son Indicted on Gun and Drug ChargesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced today that PALMA JEFFERSON, SR. and PALMA JEFFERSON, JR., a father and son from the greater New Orleans area, were charged in a seven-count indictment by a Federal Grand Jury on August 29, 2019. PALMA JEFFERSON, JR. was charged with possession with the intent to distribute heroin, cocaine, methamphetamine, and marijuana, along with possession of a firearm in furtherance of drug trafficking. Both father and son were charged with being a felon in possession of a firearm.
PALMA JEFFERSON, JR. is charged in Counts 1 and 2 with Possession with the Intent to Distribute 100 grams or more of Heroin and 500 grams or more of cocaine hydrochloride, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(B)(i). If convicted on these counts, PALMA JEFFERSON, JR. faces a term of imprisonment between 5 and 40 years, up to a $5,000,000 fine, and at least 4 years of supervised release following any term of imprisonment. PALMA JEFFERSON, JR. is charged in Count 3 with Possession with the Intent to Distribute 50 grams or more of a mixture or substance containing a detectable amount of Methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(A)(viii). If PALMA JEFFERSON, JR. is convicted on this count, he faces a term of imprisonment of 10 years up to life, a $10,000,000 fine, and at least 5 years supervised release. PALMA JEFFERSON, JR. is charged in Count 4 with Possession with Intent to Distribute a quantity of Marijuana, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(D). If convicted of this count, PALMA JEFFERSON, JR. faces a term of imprisonment of not more than 5 years, a fine of up to $250,000, and at least 2 years supervised release. PALMA JEFFERSON, JR. is charged in Count 5 with Possessing a Firearm in Furtherance of a Drug Trafficking Crime, in violation of 18 U.S.C. § 924(c)(1)(A). If convicted of this count, PALMA JEFFERSON, JR. faces a mandatory minimum sentence of 5 years up to life imprisonment, along with a $250,000 fine and up to 5 years supervised release following any term of imprisonment. This sentence must run consecutively to all other sentences imposed upon the defendant.
PALMA JEFFERSON, JR. is charged in Count 6 and PALMA JEFFERSON, SR. is charged in Count 7 both with being felons in possession of firearms, in violation of 18 U.S.C. 922(g)(1). If convicted on these counts, both defendants face a maximum sentence of 10 years imprisonment, a $250,000 fine and up to 3 years of supervised release.
U. S. Attorney Strasser reiterated that the indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safe for everyone. Former Attorney General Jeff Sessions made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, then Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN was launched in 2001.
The case was investigated by the Jefferson Parish Sheriff’s Office, the U.S. Department of Homeland Security and the Federal Bureau of Investigation, New Orleans Gang Task Force. It is being prosecuted by Assistant United States Attorney Melissa Bücher of the Violent Crime/Strike Force Unit of the U.S. Attorney’s Office.
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Executive Director of Suburban Autism Center Charged with Fraudulently Billing for Nonexistent ServicesRead the Press Release
CHICAGO — The executive director of a suburban autism center has been indicted on federal fraud charges for allegedly billing a private insurer for nonexistent therapeutic services.
LATRICE HARRELL operated The Champion Center for Autism Inc., in Oak Forest. From November 2015 to May 2018, Harrell submitted fraudulent claims to a private insurer for therapeutic services that were not rendered, according to an indictment returned in U.S. District Court in Chicago. The claims represented that patients had received treatment by the center’s occupational therapist or behavioral analyst, when, in fact, Harrell knew that no such services were provided, the indictment states. Harrell used the names and information of the therapist and analyst without their knowledge to create the fictitious claim forms, the charges allege. As a result of the scheme, Harrell fraudulently obtained at least $1.6 million from Blue Cross Blue Shield of Illinois, the indictment states.
The indictment was returned Aug. 29, 2019. It charges Harrell, 46, of Olympia Fields, with seven counts of health care fraud, two counts of making false statements in a health care matter, and two counts of aggravated identity theft.
Harrell pleaded not guilty today at her arraignment before U.S. District Judge Virginia M. Kendall. A status hearing was scheduled for Nov. 18, 2019.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI. The government is represented by Assistant U.S. Attorney Eric Pruitt.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Each count of health care fraud is punishable by up to ten years in prison, while each false statement count carries a maximum sentence of five years. Aggravated identity theft carries a mandatory prison sentence of two years, which must be served consecutively to the sentence for the underlying offense. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
East Texas Men Guilty of Federal Drug Trafficking ViolationsRead the Press Release
TYLER, Texas – Two East Texas men have pleaded guilty to federal drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
David Anthony Ebanez, 23, of Jacksonville, and Vincent James Galella, 28, Whitehouse, each pleaded guilty this week to possession with intent to distribute methamphetamine before U.S. Magistrate Judge K. Nicole Mitchell.
According to information presented in court, on April 10, 2019, Ebanez was found in possession of over 50 grams of a substance containing methamphetamine at the Cherokee County Courthouse in Rusk, Texas.
On Sep. 24, 2018, Galella was found in possession of methamphetamine in a vehicle in Smith County, Texas.
Ebanez and Galella were both indicted by a federal grand jury on May 15, 2019, and charged with federal drug trafficking violations.
Under federal statutes, Ebanez faces a minimum of five years and up to 40 years in federal prison while Galella faces a maximum of 20 years. These guidelines prescribed by Congress are provided here for information purposes, as the sentencings will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the U.S. Probation Office.
This case was investigated by the DEA Dallas Field Division, Tyler Resident Office; the Cherokee County Sheriff’s Office, Jacksonville Police Department, and the Smith County Sheriff’s Office. This case is being prosecuted by Assistant U.S. Attorneys Mary Ann Cozby and Colleen Bloss.
District Man Pleads Guilty to Multiple Home Invasions in Trinidad NeighborhoodRead the Press Release
WASHINGTON – Donte Watson, 33, of Washington, DC, pleaded guilty on Friday in a case where he was charged with 38 counts of armed burglary, armed robbery, armed kidnapping, and other violent crimes that he committed in the Trinidad neighborhood of Northeast Washington, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Watson pleaded guilty in the Superior Court of the District of Columbia on August 30, 2019 to burglary while armed and kidnapping while armed. As part of the plea agreement he will serve between 15 and 27 years in prison. He will be sentenced on November 12, 2019, by the Honorable Robert Salerno.
According to the government’s evidence, over 11 days in November and December 2018, Watson committed 10 different home invasions and attempted home invasions in the Trinidad neighborhood of Washington D.C. All of the incidents occurred during nighttime hours when people were at home. In the instances where he successfully entered homes, he mostly confronted and robbed the occupants, usually with a weapon. In one case, he kidnapped two victims, taking them from their bedroom at knifepoint to go to ATM machines. Watson was on parole for a prior burglary conviction, where he likewise broke into an occupied Trinidad residence at night and robbed the victims, as well as two other convictions for attempted robbery.
In announcing the plea, U.S. Attorney Liu and Chief Newsham commended the work of the officers and detectives who investigated the case from the Metropolitan Police Department. They also commended the work of Assistant U.S. Attorney Matthew Palmer-Ball, who prosecuted the case.
Department of Justice grants will provide law enforcement and prosecution assistance in AugustaRead the Press Release
AUGUSTA, GA: Police and prosecutors in Richmond County are receiving federal grants to improve safety in the community under the Department of Justice’s Project Safe Neighborhoods program.
The Richmond County Sheriff’s Office will receive $35,790 to purchase GPS trackers, surveillance cameras, provide video software upgrades, and purchase video cameras, while the Augusta Judicial Circuit District Attorney’s Office will receive $18,000 to purchase GreyKey software for unlocking and searching cell phones, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.
U.S. Attorney Christine announced the grant awards Thursday, Sept. 5, at the Richmond County Sheriff’s Office.
“Local law enforcement agencies and prosecutors are a vital part of the public safety network in our communities,” said U.S. Attorney Christine. “We owe it to the law enforcement and prosecutors we rely upon to ensure that they have the best equipment and cutting-edge technology. These federal grants are a step toward fulfilling that obligation. We would like to congratulate Sheriff Richard Roundtree and District Attorney Natalie Paine for their successful applications for the Department of Justice grants, and thank the Project Safe Neighborhoods grant review committee for their service in reviewing the grant requests.”
Other Southern District recipients of this year’s grants include the Savannah Police Department, the Glynn County Police Department, and the Brunswick Police Department.
“We are very fortunate to have a U.S. Attorney like Bobby Christine who is committed to bringing resources to our district,” said Natalie Paine, District Attorney for the Augusta Judicial Circuit. “The equipment we are receiving will not only aide us tremendously in solving crimes, but it also will be used by any law enforcement agency in the Augusta Judicial Circuit, saving these agencies thousands of dollars. We look forward to continuing our strong partnership with the Southern District of Georgia’s United States Attorney’s office.”
“The Richmond County Sheriff’s Office’s long partnership with the Southern District of Georgia’s United States Attorney’s Office has always benefited this community,” said Sheriff Richard Roundtree. “The Project Safe Neighborhood grants awarded to the Sheriff’s Office will go a long way in helping to reduce violent crime, which is my No. 1 goal for the Sheriff’s Office.”
The U.S. Department of Justice’s Project Safe Neighborhoods (PSN) is a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer. For example, it was under the umbrella of PSN that federal, state and law enforcement agencies and the U.S. Attorney’s Office performed Operation 30906 to round up criminals on firearms charges in south Augusta, and Operation Gunsmoke in Georgia and South Carolina for prosecution on drugs, firearms and gang charges.
Delaware Pipe Bomber Sentenced to 105 Months of Federal PrisonRead the Press Release
WILMINGTON, Del. – David C. Weiss, United States Attorney for the District of Delaware, announced that Mark Consiglio, 49, of Elsmere, Delaware was sentenced today in federal court in Delaware for his role in detonating a pipe bomb at a home in Elsmere, Delaware.
According to court documents and statements made in open court, Consiglio detonated a pipe bomb at his estranged wife’s residence in the early morning hours of March 12, 2018 before fleeing the scene. The pipe bomb was thrown at the living room window and bounced back after damaging the window. The pipe bomb then exploded in the front yard of the residence. Two occupants were home at the time of the pipe bomb explosion, one of whom was in the living room. Shrapnel from the explosion was found inside the living room.
After conducting a search warrant at Consiglio’s house, four more pipe bombs were recovered as well as a .38 caliber revolver; materials used to make a pipe bomb, including PVC, fuse wire, ball bearings, and gunpowder; a World War II-era flare launcher that had been modified to accept 9mm ammunition; and a book titled “CIA improvised sabotage devices” that was dog-eared to the page on “incendiary devices.” At the time he set off the pipe bomb, Consiglio was already facing state charges for threatening to kill his wife. The government’s court filings noted that Consiglio had a history of violence and threats of violence both toward his estranged wife and other members of the community.
In sentencing Consiglio to 105 months of prison, Judge Andrews noted Consiglio’s history of violence and stated, “During his entire adult life Defendant has threatened and assaulted others.” The statutory maximum sentence for the offense was 10 years of imprisonment.
U.S. Attorney Weiss commented, “The defendant’s brazen and violent act was intended to harm and terrorize. Only sheer luck prevented anyone from being injured or killed. We will continue to prosecute violent criminals to the fullest extent of the law in an effort to make our streets and communities safer. We are thankful to our federal and state partners for their hard work in investigating this case.”
“Elsmere residents deserve to live in safe neighborhoods, and we are committed to identifying, investigating, and incarcerating anyone who threatens the safety of these communities,” said ATF Special Agent in Charge Rob Cekada. “We are proud to see that the thorough work done by our Special Agents and local and state investigative partners has resulted in bringing this violent offender to justice.”
This case was investigated by the ATF Wilmington Field Office in coordination with the Office of the State Fire Marshal and the Elsmere Police Department. The U.S. Attorney’s Office also thanks the New Castle County Police Department for its assistance. The case was prosecuted by Assistant U.S. Attorney Alexander P. Ibrahim.
Defense Contractor Sentenced to Three Years in Prison for Conspiracy to Defraud U.S. Department of Defense, Conspiracy to Violate Arms Export Control Act, and Income Tax EvasionRead the Press Release
The owner of two defense contracting firms was sentenced to 36 months in prison for providing non-conforming parts for military equipment, illegally sharing sensitive technical information and evading income taxes Assistant Attorney General John Demers and U.S. Attorney Craig Carpenito announced today.
Roger Sobrado, 49, of Marlton, New Jersey, previously pleaded guilty before U.S. District Judge Noel L. Hillman to an information charging him with one count each of conspiracy to commit wire fraud, conspiracy to violate the Arms Export Control Act, and income tax evasion. Judge Hillman imposed the sentence on Sept. 4, 2019, in Camden federal court.
According to documents filed in this case and statements made in court:
Sobrado was the owner of two companies: Tico Manufacturing Inc. (TICO), a purported manufacturing company, and Military and Commercial Spares Inc. (MCS), a defense contracting company, both in Berlin Township, New Jersey.
Sobrado admitted that between January 2011 and December 2015, MCS obtained contracts with the U.S. Department of Defense (DoD) by falsely claiming that the military parts it contracted to provide would be exactly as described and provided by authorized manufacturers. The DoD contracts specified that the parts were critical application items for military equipment, including fighter jets and helicopters. Sobrado recruited various family members to participate in the scheme by establishing companies that contracted with the DoD. Those companies also obtained contracts with the DoD by falsely claiming that the military parts they contracted to provide would be the exact product described and would be provided by authorized manufacturers. In fact, Sobrado used TICO to contract with local manufacturers to supply non-conforming parts to MCS and his family members’ companies at a significantly reduced cost. The non-conforming parts supplied by Sobrado were shipped from New Jersey to various DoD locations around the country.
DoD paid Sobrado and his family members’ companies for the non-conforming parts. The family members then paid Sobrado for the non-conforming parts. Sobrado admitted that he deposited some of his business receipts into his personal bank account and that he paid for personal items from his business account without telling his accountant. For tax years 2011 through 2014, Sobrado reported a total taxable income of $1,608,372. He failed to report additional income of $1,182,405, which caused a loss to the United States of $509,962.
Sobrado also admitted that in August 2005 and in November 2010 he submitted to the DoD a fraudulent application for access to export controlled drawings and technical data on behalf of a family member’s company. Sobrado acknowledged that access to the controlled drawings and technical data was limited to citizens of the United States and to those lawfully in the United States. Sobrado said he submitted the application because his family member told him that he needed access to drawings and that he could not get them because he was not a U.S. citizen.
Sobrado agreed that on July 28, 2011, and at various times between January 2013 and November 2015, the family member, who is illegally in the United States, accessed or downloaded hundreds of drawings that were sensitive in nature and that required special access.
In addition to the prison term, Judge Hillman sentenced Sobrado to three years of supervised release and ordered him to pay $8,043,977 in restitution.
Assistant Attorney General Demers and U.S. Attorney Carpenito credited special agents of the U.S. Department of Defense, Defense Criminal Investigative Service Northeast Field Office, under the direction of Special Agent in Charge Leigh-Alistair Barzey; special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael; special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur; special agents of the Social Security Administration, Office of Inspector General, under the direction of Special Agent in Charge John S. Grasso; and special agents of the U.S. Attorney’s Office with the investigation leading to today’s sentencing.
The government is represented by Senior Trial Counsel Jason M. Richardson of the U.S. Attorney’s Office Criminal Division in Camden and Trial Attorney David Recker of the Justice Department’s National Security Division.
Defense Contractor Sentenced to Three Years in Prison for Conspiracy to Defraud U.S. Department of Defense, Conspiracy to Violate Arms Export Control Act, and Income Tax EvasionRead the Press Release
CAMDEN, N.J. – The owner of two defense contracting firms was sentenced to 36 months in prison for providing non-conforming parts for military equipment, illegally sharing sensitive technical information and evading income taxes, U.S. Attorney Craig Carpenito announced today.
Roger Sobrado, 49, of Marlton, New Jersey, previously pleaded guilty before U.S. District Judge Noel L. Hillman to an information charging him with one count each of conspiracy to commit wire fraud, conspiracy to violate the Arms Export Control Act, and income tax evasion. Judge Hillman imposed the sentence on Sept. 4, 2019, in Camden federal court.
According to documents filed in this case and statements made in court:
Sobrado was the owner of two companies: Tico Manufacturing Inc. (TICO), a purported manufacturing company, and Military and Commercial Spares Inc. (MCS), a defense contracting company, both in Berlin Township, New Jersey.
Sobrado admitted that between January 2011 and December 2015, MCS obtained contracts with the U.S. Department of Defense (DoD) by falsely claiming that the military parts it contracted to provide would be exactly as described and provided by authorized manufacturers. The DoD contracts specified that the parts were critical application items for military equipment, including fighter jets and helicopters. Sobrado recruited various family members to participate in the scheme by establishing companies that contracted with the DoD. Those companies also obtained contracts with the DoD by falsely claiming that the military parts they contracted to provide would be the exact product described and would be provided by authorized manufacturers. In fact, Sobrado used TICO to contract with local manufacturers to supply non-conforming parts to MCS and his family members’ companies at a significantly reduced cost. The non-conforming parts supplied by Sobrado were shipped from New Jersey to various DoD locations around the country.
DoD paid Sobrado and his family members’ companies for the non-conforming parts. The family members then paid Sobrado for the non-conforming parts. Sobrado admitted that he deposited some of his business receipts into his personal bank account and that he paid for personal items from his business account without telling his accountant. For tax years 2011 through 2014, Sobrado reported a total taxable income of $1,608,372. He failed to report additional income of $1,182,405, which caused a loss to the United States of $509,962.
Sobrado also admitted that in August 2005 and in November 2010 he submitted to the DoD a fraudulent application for access to export controlled drawings and technical data on behalf of a family member’s company. Sobrado acknowledged that access to the controlled drawings and technical data was limited to citizens of the United States and to those lawfully in the United States. Sobrado said he submitted the application because his family member told him that he needed access to drawings and that he could not get them because he was not a U.S. citizen.
Sobrado agreed that on July 28, 2011, and at various times between January 2013 and November 2015, the family member, who is illegally in the United States, accessed or downloaded hundreds of drawings that were sensitive in nature and that required special access.
In addition to the prison term, Judge Hillman sentenced Sobrado to three years of supervised release and ordered him to pay $8,043,977 in restitution.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Defense, Defense Criminal Investigative Service Northeast Field Office, under the direction of Special Agent in Charge Leigh-Alistair Barzey; special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael; special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur; special agents of the Social Security Administration, Office of Inspector General, under the direction of Special Agent in Charge John S. Grasso; and special agents of the U.S. Attorney’s Office with the investigation leading to today’s sentencing.
The government is represented by Senior Trial Counsel Jason M. Richardson of the U.S. Attorney=s Office Criminal Division in Camden and Trial Attorney David Recker of the Justice Department’s National Security Division.
Connoquenessing Woman Pleads Guilty in $61K Social Security Fraud SchemeRead the Press Release
PITTSBURGH, PA - A resident of Butler County, Pennsylvania, pleaded guilty in federal court to Social Security fraud, United States Attorney Scott W. Brady announced today.
Pattie Lou Smith, 56, of Connoquenessing, pleaded guilty to one count before Chief United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that when applying for and receiving Supplemental Security Income ("SSI") benefits, Smith falsely reported that her husband was not part of her household, and, as a result, during the period December 30, 2013 through February 28, 2017, received $61,331.50 in SSI benefits to which she was not entitled.
Judge Hornak scheduled sentencing for January 9, 2020. The law provides for a total sentence of 5 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Smith remains on bond pending sentencing.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Social Security Administration – Office of Inspector General conducted the investigation that led to the prosecution of Smith.
Columbus Man Convicted at Trial Sentenced for Six Drug CrimesRead the Press Release
COLUMBUS, Ohio – A Columbus man was sentenced in U.S. District Court today to 84 months in prison for drug crimes.
A jury convicted Glenn Marcell Madison, Jr., 29, of Columbus, in May on all counts following a two-day trial before U.S. District Judge James L. Graham.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Franklin County Sheriff Dallas Baldwin and Columbus Interim Chief of Police Thomas A. Quinlan announced the sentence handed down this afternoon.
Madison, also known as “Monster,” was indicted in October 2018 and May 2019 and charged with six drug-related crimes.
He was convicted of two counts of distributing cocaine, one count of distributing heroin and one count of distributing methamphetamine; each are crimes punishable by up to 20 years in prison. Madison was also convicted of two counts of distributing 50 grams or more of methamphetamine, which carries a potential sentence of five to 40 years in prison.
U.S. Attorney Glassman commended the cooperative investigation by the Columbus Division of Police and Franklin County Sheriff’s Office, as well as Assistant United States Attorneys Kevin W. Kelley and Noah R. Litton, who are representing the United States in this case.
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Colorado Man Sentenced for Possession of HeroinRead the Press Release
United States Attorney Joe Kelly announced that Chief United States District Judge John M. Gerrard sentenced Matthew Raymond Schroeder of Denver, Colorado, today to one year in prison for possession of heroin. This sentence is to be served consecutive to (after) a Colorado sentence for parole violation. Following the prison term, Schroeder will serve one year on supervised release.
On July 8, 2018, Schroeder was contacted by Lincoln Police officers in the parking lot of a Lincoln motel after cleaning staff reported finding suspected drug-related items in the room that Schroeder had stayed in the night before. The car Schroeder was driving was searched, and a gram of heroin was found.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Cleveland man likely faces at least 30 years in prison after he was convicted by a federal jury on firearms and drug chargesRead the Press Release
A Cleveland man likely faces at least 30 years in prison after he was convicted by a federal jury on firearms and drug charges.
Tyrone Cammon was convicted on one count of using a firearm in relation to drug trafficking, one count of possession with intent to distribute fentanyl, one count of possession with intent to distribute heroin, one count of possession with intent to fentanyl analogues and two counts of being a felon in possession of a firearm.
Cammon is scheduled to be sentenced December 12. He is classified as a career offender with a sentencing guideline range of 30 years to life in prison.
Cammon possessed a FNH5.7x28mm pistol and 3.52 grams of fentanyl on April 9, 2016. Cammon used the firearm in relation to drug trafficking and was prohibited from having it because of previous convictions for assault, drug trafficking and other crimes, according to court documents.
Cammon possessed a Glock .40-caliber pistol with a 30-round magazine on November 16, 2017, as well as heroin, carfentanil and fentanyl analogues, according to court documents.
This case was investigated by the Cleveland Division of Police, Lakewood Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorneys Kelly Galvin and Scott Zarzycki.
Chilton County Father and Son Sentenced to Prison on Unrelated Federal ChargesRead the Press Release
Montgomery, Alabama – Within the past two weeks, a Chilton County father and son were each sentenced to prison for committing federal crimes, announced United States Attorney Louis V. Franklin, Sr., Special Agent in Charge Marcus S. Watson with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Chilton County Sheriff John Shearon.
On Wednesday September 4, 2019, Latrail Marcellus Jackson, Sr., 42, was sentenced to 210 months in prison after being found guilty by a federal jury for possession of cocaine and marijuana with intent to distribute. During his trial, the jury heard evidence that the Chilton County Sheriff’s Office suspected Jackson Sr. was selling drugs at a residence in south Chilton County near Marbury. In February of 2017, the investigation led them to obtain a search warrant for the house where they found large quantities of illegal drugs. Jackson Sr. received a substantial sentence in this case due to his criminal history. During sentencing, the judge determined that he qualified as a career offender under the federal guidelines and this significantly increased his punishment range.
On August 26, 2019, Latrail Marcellus Jackson, Jr., 25, was sentenced to 78 months in prison after pleading guilty to possession of methamphetamine with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime. Court records indicate that in March 2018, Clanton police officers encountered Jackson Jr. while responding to a disturbance call. While there, police discovered that he had an outstanding failure to appear warrant. The Chilton County Sheriff’s Office took him into custody and found him to be in possession of methamphetamine and a handgun. Possession of a firearm in connection with drug trafficking carries a minimum sentence of five years in prison and runs consecutive to any other sentence. Jackson Jr. received 18 months for the drug charge.
After serving his 17.5-year prison sentence, Jackson Sr. will be subject to five years of supervised release. Whereas, Jackson Jr. will be subject to a three-year period of supervised release following his 6.5-year sentence. There is no parole in the federal system.
“Unfortunately, violence and the illegal drug trade are often closely linked together,” stated U.S. Attorney Franklin. “My office will use all tools available to address the drug and violent crime problems in our communities. I applaud the work of all agencies involved in bringing this father and son to justice.”
ATF Special Agent in Charge, Marcus Watson, remarked, “Protecting the public by the removal of the criminal element that commits acts of violence with a firearm was the result of the combined efforts by ATF and our partners.”
“My office works hard to get drug dealers off the streets and out of our communities,” said Chilton County Sheriff John Shearon. “We appreciate the partnerships we have with federal law enforcement and the U.S. Attorney’s Office.”
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Chilton County Sheriff’s Office investigated these cases, with assistance from the Clanton Police Department and the Alabama Department of Forensic Sciences. Assistant United States Attorneys Brandon Bates and Thomas Govan prosecuted the cases.
Career Criminal Sentenced for Illegally Possession FirearmsRead the Press Release
Abingdon, VIRGINIA – Billy Wayne Page, a convicted felon currently on federal supervised release for a previous federal conviction, was sentenced today in U.S. District Court in Abingdon to 81 months for illegally possessing firearms and violating the terms of his supervised release. United States Attorney Thomas T. Cullen made the announcement following Page’s sentencing hearing today.
Page, 42, of Pound, Va., was convicted in June 2019 on one count of illegal possession of a firearm by a previously convicted felon. In addition, the court found today he violated the terms of his supervised release stemming from a 2013 federal conviction for illegally possessing firearms.
“Unlawful possession of a firearm by a convicted felon is a serious federal crime and one that this office has made a priority,” U.S. Attorney Cullen stated today. “We will continue to work closely with our federal, state, and local partners to identify potential cases and send offenders to federal prison.”
Court documents entered into the record prior to Page’s hearing recount the defendant’s lengthy criminal history dating back to the mid 1990s. Documents show convictions for stealing guns and valuables, vehicle theft, probation violations, breaking and entering at both a local high school and two local businesses, and drug possession. Page also admitted to witness tampering. In 2003, he was convicted as an armed career criminal for his illegal possession of firearms.
The investigation of the case was conducted by Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Federal Bureau of Investigations and the Pound, Virginia Police Department. Assistant United States Attorney Cagle Juhan prosecuted the case for the United States.
California Woman Pleads Guilty to Operating Wholesaler of Synthetic CannabinoidsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that JANELL THOMPSON, the former vice-president, chief financial officer, and co-owner of a consumer products wholesaler based in California, pled guilty today before U.S. District Judge Naomi Reice Buchwald to using her business to distribute massive wholesale quantities of smokeable synthetic cannabinoids throughout the U.S. and to laundering the proceeds of that scheme.
U.S. Attorney Geoffrey S. Berman said: “Janell Thompson’s position as a company CFO and vice president masked her true identity: a drug trafficker and money launderer. Through her wholesale company, Thompson distributed massive quantities of illegal and potentially dangerous synthetic cannabinoids throughout the U.S. Thompson now faces 40 years in prison for her crimes.”
According to the allegations in the Superseding Information, other documents filed in the case, and statements made in court:
From February 2014 until February 2019, THOMPSON was the vice-president, chief financial officer, and co-owner of JK Wholesale LLC, a consumer products retailer based in Carlsbad, California. During that time period, THOMPSON used JK Wholesale LLC and its affiliated corporate entities to operate a scheme to distribute large quantities of smokeable synthetic cannabinoids (“SSC”), containing controlled substances and controlled substance analogues, throughout the U.S. SSC, colloquially referred to as “K2” or “Spice,” can be addictive, but are often marketed as safe, legal alternatives to marijuana. In fact, SSC are not safe and may affect the brain much more powerfully than marijuana; their actual effects can be unpredictable and, in some cases, more dangerous or even life-threatening.
Some of the SSC distributed by THOMPSON’s scheme were branded with colorful graphics and distinctive names, including “Yolo.” The branded SSC sometimes were misleadingly marketed as “herbal incense.” Other of the SSC were distributed in bulk quantities.
* * *
THOMPSON, 42, of Carlsbad, California, pled guilty to one count of conspiracy to distribute a controlled substance and a controlled substance analogue and one count of conspiracy to commit money laundering. Each count carries a maximum sentence of 20 years in prison.
THOMPSON is scheduled to be sentenced by Judge Buchwald on January 27, 2019.
In addition to THOMPSON, four other defendants have been charged in this case:
On January 31, 2019, Jonathan Riendeau, 39, of Port Saint Lucie, Florida, pled guilty pursuant to a cooperation agreement with the Government before Judge Buchwald to six counts: three counts of conspiracy to unlawfully distribute controlled substances and controlled substance analogues; two counts of unlawful importation of controlled substances and controlled substance analogues; and one count of unlawfully distributing a controlled substance. Each count carries a maximum sentence of 20 years in prison. Riendeau’s sentencing has not yet been scheduled.
On April 23, 2019, Jade Plante, 40, of Port Saint Lucie, Florida, pled guilty before Judge Buchwald to one count of conspiracy to distribute and possess with intent to distribute a controlled substance analogues. On August 7, 2019, Plante was sentenced by Judge Buchwald to eight months in prison and two years of supervised release, and ordered to forfeit $100,000.
On February 7, 2019, Daniel Borer, 42, of Adams, Massachusetts, and Josephine McLaughlin, 65, of Stoneham, Massachusetts, were charged in a Superseding Indictment with three counts of conspiring to unlawfully import and distribute controlled substances and controlled substance analogues. Each count carries a maximum sentence of 20 years in prison. Trial has not yet been scheduled for Borer and McLaughlin.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the New York City Police Department, the United States Postal Inspection Service, and Homeland Security Investigations. He also thanked the Drug Enforcement Administration, the Naval Criminal Investigative Service, and the United States Attorney’s Office for the Eastern District of North Carolina for their assistance. The long-term investigation of this case was partially funded by the New York/New Jersey High Intensity Drug Trafficking Area, a federal grant program that invests in law enforcement partnerships to build safe and healthy communities.
The prosecution is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Daniel G. Nessim and Robert B. Sobelman are in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations, and Borer and McLaughlin are presumed innocent unless and until proven guilty.
Beaumont Man Indicted for Bank RobberyRead the Press Release
BEAUMONT, Texas – A 29-year-old Beaumont, Texas man has been indicted for robbing a bank in the Eastern District of Texas announced U.S. Attorney Joseph D. Brown today.
Clarence Richard Griffin was indicted by a federal grand jury today and charged with bank robbery.
According to information presented in court, on Aug. 8, 2019, Griffin is alleged to have entered the Beaumont Community Credit Union on MLK Parkway in Beaumont, approached the teller with his hand inside a plastic bag simulating a weapon, and demanded money. Griffin then fled the credit union with approximately $2,100 in cash and was apprehended a short time later near the credit union with the stolen cash, plastic bag, and bank tracking device. Video surveillance supported witness accounts.
If convicted, Griffin faces up to 20 years in federal prison.
This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Michael Anderson.
It is important to note that a complaint, arrest, or indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
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Bay Area’s Largest Home Health Care Agency and 28 Health Care Industry Workers Charged in Patients-For-Cash Kickback SchemeRead the Press Release
SAN FRANCISCO – Federal complaints have been filed against 30 defendants charged in a patients-for-cash kickback scheme, announced United States Attorney David L. Anderson, Federal Bureau of Investigation Special Agent in Charge John F. Bennett, and Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services (HHS-OIG), Steven J. Ryan.
The complaints, unsealed this morning, describe a wide-ranging patients-for-kickback scheme. At the center of the scheme are Amity Home Health Care, the largest home health care provider in the San Francisco Bay Area, and Advent Care, Inc., a provider of hospice care. According to the complaints, all the defendants participated in the scheme whereby Amity, under the leadership of Chief Executive Officer Ridhima “Amanda” Singh, paid kickbacks to marketers, doctors, and other medical professionals in exchange for the certification or referral of patients for home health or hospice services. Also charged are 28 people including doctors, nurses, marketers, a social worker, and additional employees of Amity. According to the complaints, every single defendant charged was recorded by law enforcement officers either offering or accepting, or approving illegal payments for patient referrals.
Title 42, United States Code, Section 1320a-7b, makes it a crime for any person to knowingly solicit, offer, or pay a kickback, bribe, or rebate for furnishing services under a Federal health care program. Because many of the patients were insured by Medicare, a taxpayer-funded insurance plan, the referral of patients through the kickback scheme violated the statute.
“The complaints allege a scheme for doctors, nurses, and other medical care professionals to trade patients for cash,” said U.S. Attorney Anderson. “This is the largest cash-for-patients scheme ever charged criminally in the Northern District of California.”
“The transition to a home health agency should be based on medical and personal needs – not cash payments or thinly disguised referral bribes as alleged in these cases,” said Special Agent in Charge Ryan. “We will continue working with law enforcement partners to guard these vital government health programs as patients and taxpayers deserve better.”
The criminal complaints describe how Amity and some of its employees bribed individuals associated with hospitals, skilled nursing facilities, and doctors’ offices to induce those individuals to send patients to Amity and Advent. Amity and the other defendants often disguised the kickbacks as payroll, phony medical directorships, and, at other times, as “entertainment,” reimbursements,” “gifts”, or “donations.” Further, several of the defendants are doctors and other health care professionals who allegedly received bribes in exchange for making referrals to Amity and Advent and other home health agencies so that the companies could provide and bill for services. In the case of Amity, Singh and her employees allegedly compensated these professionals in cash for each patient referral and for making introductions to physicians, case managers, or other health care professionals who could refer patients.
In addition, some of the defendants are described as “marketers.” Marketers received from Amity and others cash and gifts, such as tickets to Warriors games, in exchange for patient referrals. Marketers had clients that consisted of case managers at hospitals, social workers at skilled nursing facilities, doctors, and office staff at doctors’ offices. Singh allegedly instructed marketers to take clients out to elaborate meals, sporting events, and purchase gifts for individuals willing to provide Amity with patients, mainly Medicare patients. When patient referrals were slow, Singh allegedly directed the marketer to incentivize clients with gifts in an effort to induce them to refer more patients to Amity.
In sum, the following individuals and companies have been changed in the scheme:
Defendant
Role
Age/Residence
Case Number
AMITY HEALTH CARE
Home Health Care Provider
19-71440
ADVENT CARE, INC.
Hospice Care Provider
19-71459
SINGH, AMANDA
CEO of Amity
33, Livermore
19-71430
ADDISON, BRENDA
Amity employee
49, Oakland
19-71431
BHANDARI, BHUPINDER
Doctor
59, Pleasanton
19-71441
DEGUZMAN, MERVINA
Nurse/Case Manager
41, San Jose
19-71447
HICKS, KIMBERLY
Doctor
59, Oakland
19-71451
KABANSKAYA, YELENA
Doctor
39, San Jose
19-71452
MYINT, GERALD
Doctor
68, Union City
19-71448
NGUYEN, TAM
Doctor
44, San Jose
19-71453
POSADA, JUAN
Doctor
58, Cupertino
19-71449
SCZENDZINA, EWELINA
Marketer
42, Gilroy
19-71434
TAYLOR, SCOTT
Doctor
61, Oakland
19-71455
WATSON, HENRY
Doctor
63, Oakland
19-71423
ZHANG, ZHENG
Doctor
62, Saratoga
19-71457
SANTOS, GLENNDA
Marketer
47, Castro Valley
19-71433
MANCUSO, APRIL
Doctor
38, Los Gatos
19-71445
REYNOLDS, KERISIMASI
Doctor
37, Los Gatos
19-71446
CARIAGA, CATHERINE
Nurse/Case Manager
31, Fremont
19-71458
TIRONA, TERENCE
Nurse/Case Manager
33, Hayward
19-71454
DEL ROSARIO, SAL
Case Manager
44, San Jose
19-71456
GAY, ANDRE NICOLAS
Doctor
39, Union City
19-71460
HASAN, MARIAM
Doctor
37, Milpitas
19-71450
ROY, BELINDA
Nurse/Case Manager
59, Fremont
19-71443
SUNO, NICOLE
Marketer
38, San Leandro
19-71421
TEODORO, STELLA
Nurse/Case Manager
37, Union City
19-71444
TACORDA, HILDA
Marketer
40, Hayward
19-71432
PINA, REBECCA
Marketer
38, Redwood City
19-71442
SINGH, VINEETA
Social Worker
42, Hayward
19-71422
PRESCOTT, CAROLINE
Marketing Director
53, San Ramon
19-71420
Each defendant is charged with illegally influencing patient referrals for federally funded health care through payments, in violation of 42 U.S.C. § 1320a-7b(b)(2)(A). In addition, Singh is charged with lying to investigators, in violation of 18 U.S.C. § 1001, and tampering with witnesses in violation of 18 U.S.C. § 1512(b)(3).
The complaints merely allege that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants face a maximum sentence of 10 years in prison and a maximum $500,000 fine. The corporations are subject to a $1,000,000 for each violation. In addition, Singh faces a maximum statutory penalty of 5 years and a $250,000 fine for the § 1001 charge and a maximum statutory penalty of 20 years and a $250,000 fine for the § 1512 charge. In addition, the court also may order an additional term of supervised release, fines or other assessments, and restitution, if appropriate. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The prosecution is being handled by the Office of the U.S. Attorney, Northern District of California’s new Corporate Fraud Strike Force and is the result of an investigation by the FBI and HHS-OIG.
Baltimore Marijuana Distributor Who Was a Fugitive for More Than Nine Years Pleads Guilty to Federal ChargesRead the Press Release
Greenbelt, Maryland – Jeffrey Putney, a/k/a Jeffy, Tom, and J.P., age 43, of California, formerly of Baltimore, pleaded guilty to federal charges of maintaining a drug-involved premises and to possession with intent to distribute at least 1,000 kilograms of marijuana. Putney has been a fugitive since the indictment was returned in December 2010. The guilty plea was entered on September 4, 2019.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jesse Fong of the Drug Enforcement Administration - Washington Field Division; Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Acting Chief Marcus Jones of the Montgomery County Police Department; Chief Henry P. Stawinski III of the Prince George’s County Police Department; Chief Melissa R. Hyatt of the Baltimore County Police Department; and Commissioner Michael Harrison of the Baltimore Police Department.
According to Putney’s plea agreement, from 2003 until about June 2009, Putney conspired with Matt Nicka, Gretchen Peterson, Andrew Sharpeta, David D’Amico, and others to distribute marijuana.
As part of the conspiracy, Putney and his co-conspirators obtained large quantities of marijuana grown in Canada and northern California, which they transported by plane and tractor trailer, to warehouses in Maryland and Pennsylvania. Putney and his co-conspirators stored marijuana in warehouses, vehicles, and a storage unit, and purchased and rented residences that were used to store and distribute marijuana and to count and collect cash proceeds from the marijuana sales. For example, Putney shared a storage locker with a co-conspirator where they stored marijuana. Putney had a key to the locker.
As detailed in the plea agreement, three to four times a week Sharpeta, D’Amico, Nicka and, at times, Putney, counted drug proceeds which generally ranged from $20,000 to $100,000, then placed the money in different boxes and set it aside. The money was then bundled into $50,000 packs and loaded into a suitcase or duffle bags in increments ranging from $100,000 to $1 million. The co-conspirators then locked or super-glued shut the suitcases or duffle bags and transported the cash via private airplane or tractor/trailer to pay the source of supply in California.
Putney also personally participated in several financial transactions involving the proceeds of the marijuana conspiracy and designed to conceal the nature, source, ownership, and control of those proceeds. For example, Putney facilitated the purchase of a Lancair IV-P aircraft for $450,000 for the co-conspirators to use to transport marijuana and drug proceeds for the conspiracy. As part of the effort to purchase this aircraft, the co-conspirators created a holding company called Air Sky Holdings and indicated that the purpose of the company was to provide air taxi services so as to disguise the true purpose of the company and the aircraft.
On March 18, 2009, the Drug Enforcement Administration executed a raid on a stash house that Putney oversaw located at 3522 Hickory Avenue in Baltimore, Maryland and which served as one center for operations for the conspiracy. Law enforcement seized from the residence over 100 pounds of marijuana, $20,000 in cash, 31 cellular telephones, documents regarding the purchase of the Lancair IV-P aircraft, four money counters, tally sheets with balances over $1.5 million, and false identifications. On March 18, 2009, prior to the execution of the raid by law enforcement, law enforcement had been following Putney. Putney related his suspicion to Sharpeta just before the police arrested Putney in a car. At the time of his arrest, Putney was in possession of a duffle bag containing $38,000 in cash and five cell phones.
After the raid, Sharpeta and Nicka scrambled to clear out the other warehouses of marijuana and to burn the drug trafficking organization’s ledgers. Nicka collected funds from members of the drug trafficking organization to hire defense attorneys. Putney directed one co-conspirator to use attorney James Michael Farrell, who was subsequently indicted and convicted in a separate case for his role as consiglieri in the marijuana conspiracy.
After the execution of the warrant, and while in hiding, Putney moved from Baltimore to California, to Philadelphia, Pennsylvania, and then returned to California. Putney was aware that he and other members of the conspiracy had been indicted by a federal grand jury in Maryland, and that federal law enforcement was searching for him. At one point, Putney married his girlfriend to prevent her from testifying against him in grand jury. The two later divorced but not before his wife attempted to sell several high-end watches Putney had purchased with drug proceeds during the marijuana conspiracy in order to get money for Putney to remain on the run.
Putney was arrested in January 2019, in Nevada after a Nevada trooper pulled him over for a traffic violation.
Putney and the government have agreed that, if the Court accepts the plea agreement, Putney will be sentenced to eight years in federal prison. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for November 8, 2019, at 9:30 a.m.
A total of 15 defendants have previously been convicted in this case and were sentenced to up to 188 months in prison.
United States Attorney Robert K. Hur praised the DEA, IRS-CI, and the Montgomery County, Prince George’s County, Baltimore County and Baltimore City Police Departments for their work in the investigation and thanked the U.S. Marshals Service for its assistance. Mr. Hur thanked Assistant United States Sandra Wilkinson, who is prosecuting this Organized Crime Drug Enforcement Task Force case.
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Baltimore Heroin Dealer Sentenced to 10 Years in Federal Prison for Distribution of HeroinRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel today sentenced Coron Demon Johnson, a/k/a Savage, age 25, of Baltimore, Maryland, to 10 years in federal prison, followed by three years of supervised release, for distribution of heroin. Johnson admitted that an individual died as a result of using heroin that he distributed.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jesse R. Fong of the Drug Enforcement Administration - Washington Field Division; Chief Henry P. Stawinski III of the Prince George’s County Police Department; and Chief John Nesky of the Bowie Police Department.
“Heroin dealers are selling death and despair and more people die of heroin overdoses than murder in Maryland,” said U.S. Attorney Robert K. Hur. “Federal, state, and local law enforcement are working together to hold drug dealers responsible for the deaths they cause. As a result, Coron Johnson will now spend 10 years in federal prison, where there is no parole—ever.”
According to his plea agreement, on August 11, 2017, Johnson sold heroin to an individual in Annapolis, Maryland. The individual returned to her home in Bowie, Maryland, and went to her bedroom. The next day, the individual was found in her bedroom, unresponsive, holding her cell phone. First responders administered CPR, but the victim was pronounced dead a few minutes later. Law enforcement officers recovered a paper fold containing .025 grams of heroin. The medical examiner performed an autopsy and determined that the victim’s cause of death was heroin intoxication.
Law enforcement officers took possession of the victim’s phone following the fatal overdose. A short time later, Johnson texted the phone, asking if the victim was “coming get some this fire today.” A law enforcement officer, posing as the victim, responded to Johnson. Johnson, via text, arranged to meet the law enforcement officer, posing as the victim, in Bowie, in order to sell the victim $139 worth of heroin.
At the agreed-upon time, Johnson texted that he had arrived at the meeting location. Law enforcement officers initiated a traffic stop on the vehicle. Johnson was in the passenger seat and three other people were also in the vehicle, including two minor children. Johnson had white powder residue on his pants when he got out of the vehicle. Law enforcement recovered a paper fold with powder residue from the floorboard of the passenger side of the car where Johnson had been sitting. Johnson was also in possession of the cell phone used to text the victim’s phone.
Johnson admitted to law enforcement that he primarily distributes heroin in the Newtowne-20 section of Annapolis. Johnson identified a picture of the victim as the individual he thought he was meeting in Bowie, and admitted that he had sold the victim heroin in Annapolis the day before.
United States Attorney Robert K. Hur commended the DEA, the Prince George’s County Police Department, and the Bowie Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Erin B. Pulice and Kelly O. Hayes, who prosecuted the case.
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Armed Bank Robber Sentenced to 25 YearsRead the Press Release
Memphis, TN – Quincy Perdue, 23, has been sentenced to 25 years in federal prison for bank robbery. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented in court, on March 3, 2018, Perdue robbed the First Tennessee Bank located at 4330 Summer Avenue in Memphis. Perdue provided a note to the teller stating, "Give me the money. Hit the button and I’m shooting you in the face. Nothing out the first draw. No GPS. If a dye pack go off, I got 17 shots. I’m killing everybody and myself." The teller pressed the alarm and Perdue fled the bank.
On March 5, 2018, Perdue robbed the First Tennessee Bank located at 2015 East Brooks Road in Memphis. Surveillance video revealed that Perdue and another individual entered the bank, and Perdue immediately began shooting at the bank’s security guard striking him numerous times. Perdue and the individual jumped the teller counter and grabbed approximately $29,000 from the teller’s drawer. They then fled the bank in an awaiting vehicle.
A witness followed the vehicle to an apartment complex and alerted law enforcement. The police responded, arrested Perdue and recovered the money.
On April 11, 2018, a federal grand jury returned a three-count indictment against Perdue charging him with two counts of bank robbery and one count of discharging of a firearm during and in relation to the second bank robbery. Perdue pleaded guilty to all counts in the indictment on March 15, 2019.
On September 4, 2019, U.S. District Court Judge John T. Fowlkes, Jr., sentenced Perdue to 63 months for the bank robberies and a consecutive sentence of 240 months for discharging a firearm during and in relation to the second bank robbery, for a total effective sentence of 303 months in federal prison.
U.S. Attorney D. Michael Dunavant said: "This is precisely the type of violent gun offender that threatens lives and public safety in Memphis. Armed bank robberies are brazen and disturbing acts of violence that terrorize our community, and must be met with significant sentences such as this one. Perdue is a dangerous offender who has sown violence and greed, and will now reap the full measure of consequences for his criminal conduct. We are Fed Up with gun crime in Memphis, and we are doing something about it. Gun Crime is Max Time."
The case was investigated by the FBI’s Safe Streets Task Force.
Assistant U.S. Attorney Kevin Whitmore prosecuted this case on behalf of the government.
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Accountant Who Cheated Her Friends and Clients via a $27.5 Million Ponzi Scheme Sentenced to More than 8 Years in Federal PrisonRead the Press Release
LOS ANGELES – A retired certified public accountant has been sentenced to 97 months in federal prison for running a $27.5 million Ponzi scheme that for roughly two decades defrauded her friends and her accounting firm’s clients.
Carol Ann Pedersen, 66, of Long Beach, was sentenced late Wednesday afternoon by United States District Judge Dolly M. Gee, who cited the “grave economic and psychological toll” of Pedersen’s "insidious Ponzi scheme" as she “preyed on some of her closest friends.” Pedersen pleaded guilty in March to one felony count of wire fraud. Judge Gee also ordered her to pay approximately $27.5 million in restitution.
Between 1996 and September 2017, Pedersen, who only was licensed to be a CPA, served as her victims’ unlicensed investment advisor. Through her firm, Carol A. Pedersen, C.P.A., she solicited her accounting clients’ investments through two types of investment opportunities that she offered: “Time Deposit” and “Client Pool.” Pedersen told her victims that Time Deposit would invest in low-risk securities providing a fixed return on their money after a period of time while Client Pool would invest their money in the stock market through an investment pool Pedersen had established with other investors’ funds.
In reality, Pedersen’s fraud was nothing more than a Ponzi scheme. She solicited investors and promised to invest their money in the stock market, but never did. Instead, she deposited the funds into her personal accounts, and then spent the money to fund her own personal expenses, including the payment of her credit card bills, the establishment of trust accounts for her family, and the purchase of real estate. She also used her victims’ money to fulfill distribution requests by her other victims – which she falsely represented were returns on their investments.
For example, on July 30, 2015, Pedersen wired $3 million from a purported “Client Pool” account to a personal account that she controlled.
In 2017, after receiving distribution requests that she could not honor with the funds she had available, Pedersen’s scheme collapsed. She retired shortly thereafter.
Pedersen’s victims, at least 56 people, invested more than $40 million into these accounts during the scheme and their total loss was at least $27,547,839.
This matter was investigated by the Federal Bureau of Investigation and the Los Angeles County Sheriff’s Department.
In March, the Securities and Exchange Commission filed a civil complaint against Pedersen in connection with the fraudulent scheme. Pedersen has admitted liability in that case.
This case was prosecuted by Assistant United States Attorneys Alexander C.K. Wyman and Julian L. André of the Major Frauds Section.
Attorney and Client Indicted for Conspiracy to File False Federal Income Tax ReturnsRead the Press Release
ALBUQUERQUE – A grand jury in Albuquerque, N.M. has returned an indictment charging Victor Kearney, 55, of Zephyr Cove, Nev., and Robert Fiser, 58, of Albuquerque with preparing and filing false tax returns to conceal millions of dollars in income Kearney received as a beneficiary of two testamentary trusts.
The grand jury returned the indictment on August 27, 2019. It charges Kearney and Fiser with participating in a conspiracy to defraud the United States, from October 20, 2009, to November 4, 2016, by impairing the ability of the Internal Revenue Service (“IRS”) to assess and collect revenue in the form of income taxes. The indictment further charges Kearney with willfully making and subscribing a false personal income tax return on September 6, 2013, in which Kearney allegedly substantially underreported his income for 2011. The indictment further charges Fiser with allegedly aiding and assisting Kearney in the preparation of Kearney’s false return on September 4, 2013.
According to the indictment, Kearney allegedly received annual income as a beneficiary of Mary Pat Abruzzo-Kearney Trust B and C. Kearney hired Fiser, a licensed attorney in New Mexico, to prepare his tax returns. Both Kearney and Fiser knew Kearney received annual income from the Abruzzo-Kearney trusts, but they did not report that income to the IRS. Kearney and Fiser allegedly concealed their tax evasion by signing false returns and making false statements under oath at depositions in civil lawsuits.
Fiser appeared for arraignment in federal court earlier today. He is out of custody pending trial. Kearney is scheduled for arraignment on September 12, 2019. Kearney and Fiser each face a sentence of up to 5 years in prison if convicted of the conspiracy offense. Kearney faces up to 3 years in prison for making and subscribing a false return. Fiser also faces 3 years in prison for aiding and assisting in the preparation of the false return. Indictments are only accusations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
Special agents with IRS Criminal Investigation investigated this case. Assistant U.S. Attorneys Kimberly Brawley and Sean Sullivan are prosecuting the case.
17 Texas Syndicate Members and Associates Arrested Based on Federal Indictment Alleging Meth/Heroin Trafficking in and around AustinRead the Press Release
Federal, state and local authorities have arrested 17 members and associates of the Texas Syndicate in connection with a methamphetamine/heroin trafficking operation in central Texas announced U.S. Attorney John F. Bash, FBI Special Agent in Charge Christopher Combs, San Antonio Division, Austin Police Chief Brian Manley, Texas Department of Public Safety Director Steven McCraw, and Gonzales Police Chief Tim Crow.
A federal grand jury indictment, returned in Austin and unsealed yesterday, charges those arrested with conspiracy to distribute a controlled substance. The defendants, allegedly, conspired to distribute methamphetamine/heroin in Austin, San Marcos, Luling, Gonzales, New Braunfels, Hutto, Kenedy, Seguin, Bastrop and Tuscaloosa, AL, since January 2018. During this investigation, authorities seized over 100 kilograms of methamphetamine and multiple firearms attributed to this organization.
Defendants who are charged in this indictment include:
- Juan Carlos Castilleja, age 29 of New Braunfels, 500 grams or more of methamphetamine;
- Roman Gabriel Luna, age 34 of Austin, 500 grams or more of methamphetamine/one kilogram of heroin;
- *Julio Alvarez, a 40-year-old Mexican National residing in Austin, 500 grams or more of methamphetamine;
- *Osbellia Jimenez-Jaimes, age 33 of Austin, 50 grams or more of methamphetamine;
- Brandon Carrasco, age 21 of Kenedy, TX, 50 grams or more of methamphetamine;
- David Cantu, age 46 of Gonzales, 50 grams or more of methamphetamine;
- *Ian Accord, age 26 of Hutto, 50 grams or more of methamphetamine;
- John Vera, age 26 of Gonzales, 50 grams or more of methamphetamine;
- Josh Vera, age 26 of Gonzales, 50 grams or more of methamphetamine;
- Lisa Anzaldua, age 31 of Luling, 50 grams or more of methamphetamine;
- Noemi Medina, age 25 of Seguin, 50 grams or more of methamphetamine;
- Paul Villarreal, age 45 of Luling, 50 grams or more of methamphetamine;
- *Sean May, age 47 of Tuscaloosa, AL, 50 grams or more of methamphetamine/100 grams or more of heroin;
- Michael Armstead, age 47 of San Marcos, less than 50 grams of methamphetamine;
- Steven Klasing, age 37 of Austin, less than 50 grams of methamphetamine/less than 100 grams of heroin;
- Rafael Salas, age 38 of San Antonio, one kilogram or more of heroin; and,
- Pascual Salazar, age 36 of Austin, one kilogram or more of heroin.
*13 defendants were arrested yesterday. Alvarez, Jimenez-Jaimes, Accord, and May were already in custody prior to yesterday.Upon conviction of the drug trafficking charge: Castilleja, Luna, Salazar, Salas and Alvarez face between ten years and life in federal prison; Jimenez-Jaimes, Carrasco, Cantu, Accord, John Vera, Josh Vera, Anzaldua, Medina, Villarreal and May face between five and 40 years in federal prison; Armstead and Klasing face up to 20 years in federal prison based on their involvement, drug type and drug amount involved.
All of the defendants remain in federal custody. Detention hearings are expected to occur over the next two weeks in U.S. Magistrate Court in Austin for all defendants except May.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
This case resulted from an investigation conducted by the FBI Safe Streets Task Force, Austin Police Department, Texas Department of Public Safety and the Gonzales Police Department. Agencies assisting in making arrests include: Karnes County Sheriff’s Office, Guadalupe County Sheriff’s Office, Comal County Metro Narcotics Task Force, San Marcos Police Department, Hays County Narcotics Task Force and the San Antonio Division of the Drug Enforcement Administration. Assistant U.S. Attorneys Matt Harding and Dan Guess are prosecuting this case on behalf of the Government.
4 September 2019
Wilmerding Felon Charged with Possessing Fentanyl, Heroin and Tramadol Mixture Disguised as Oxycodone Hydrochloride PillsRead the Press Release
PITTSBURGH - A resident of Wilmerding, Pennsylvania, was arraigned before United States Magistrate Judge Maureen P. Kelly last week on charges of violating federal drug laws, United States Attorney Scott W. Brady announced today.
The one-count Indictment, returned on July 16, 2019, named Keith Navarro-Palmer, age 33, as the sole defendant.
According to the Indictment, on or about May 15, 2019, Navarro-Palmer possessed with intent to distribute over 100 grams of a mixture and substance containing fentanyl, heroin, and tramadol. The initial criminal complaint, which was filed by the Wilkinsburg Police department, indicated that the fentanyl, heroin, tramadol mixture was in the form of a large quantity of pills resembling Oxycodone Hydrochloride 15 milligram tablets. The Indictment further indicated that Navarro-Palmer was previously convicted of both attempted murder and aggravated assault. According to the original police complaint, these prior convictions stem from a June 4, 2005 incident where the defendant fired in excess of 30 rounds at two Pittsburgh Police Officers.
“Pills purchased on the street may contain potentially deadly drugs masquerading as legal prescription medications,” said U.S. Attorney Brady. “Don’t risk your life. Only take medications that have been prescribed by your doctor and filled by your pharmacist.”
The law provides for a sentence of not less than 10 years in prison to a maximum of life imprisonment, a fine not to exceed $8,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert C. Schupansky is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, in conjunction with the Wilkinsburg Police Department, 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.
U.S. Marshals Service Operation in Stockton Nets More Than 100 Dangerous CriminalsRead the Press Release
SACRAMENTO, Calif. — Today, U.S. Attorney McGregor W. Scott, Chief Deputy Lasha Boyden and Chief Inspector Bert Tapia of the U.S. Marshals Service, and Stockton Police Chief Eric Jones announced a U.S. Marshals Service-led operation to reduce violence in Stockton.
Operation Take Back aimed to provide the city of Stockton with immediate relief from the increasing rate of violent crime. After 21 days of focused effort, Operation Take Back concluded on August 30th, targeting and arresting violent fugitives, gang members and criminal offenders who have committed crimes such as homicide, shooting into dwellings, felony assault, sexual assault, illegal possession of firearms, illegal drug distribution, and robbery.
As a result of a request from the Stockton Police Department for assistance from federal, state, and local law enforcement partners, Operation Take Back was conducted in coordination with the U.S. Marshals Service, the Stockton Police Department, the California Department of Corrections and Rehabilitation, and the San Joaquin County Probation Department.
Operation Take Back resulted in 101 arrests, including 42 identified gang members. In addition, law enforcement officers seized 19 firearms and 3,500 rounds of ammunition, 25 marijuana plants, 5 pounds of packaged marijuana, and other illegal drugs, including cocaine, methamphetamine, and heroin.
U.S. Attorney Scott stated: “This focused effort removed violent offenders from the streets of Stockton. Local and federal law enforcement partnerships such as Operation Take Back are essential to making our communities safe and sending the message that gangs will not be tolerated in Stockton.”
“These types of operations are vital to maintaining the safety of the very communities within which we live and work. The ability of local, state and federal law enforcement to work together in tracking down these fugitives is vital to the peace and stability of our communities,” said Bert Tapia, Chief Inspector for the United States Marshals Service.
Chief Jones stated: “During the month of May we experienced an increase in violent crime, specifically shootings and homicides. This was very concerning to us and that is why we reached out to our local, state, and federal law enforcement partners. With the help of the additional resources that the U.S. Marshals Service brought to Stockton, we were able to make key arrests on those who were actively involved in street violence and were able to remove numerous firearms off the streets. We would like to thank the U.S. Marshals Service for helping us bring back a sense of safety to those neighborhoods that were affected by violent crime.”
Each local, state and federal agency utilized their individual specialized enforcement techniques and statutory authority in order to disrupt and destabilize the organized criminal operations of violent street gangs and career criminal offenders in the city of Stockton.
Two Sapulpa Women Plead Guilty to Illegally Collecting More Than $350,000 in Death BenefitsRead the Press Release
Two Sapulpa women pleaded guilty today in U.S. District Court to illegally taking more than $350,000 in Social Security and military retirement benefits that were meant for their mother, announced U.S. Attorney Trent Shores.
Patricia Lee Kendall, 66, and Peggy Lee Larue, 63, both of Sapulpa, pleaded guilty to two-counts of aiding and abetting each other to illegally take and conceal government property in the form of money from both the Social Security Administration and the Department of Defense Military Retirement Fund. The women admitted in court that they failed to notify authorities of their mother’s death in December 2000. Previously, their mother had received the death benefit payments as a result of her husband’s military service. After their mother passed away, the payments should have ceased.
“Illegally taking the Social Security death benefits and military retirement benefits meant for their mother, long after she passed away, is shameful,” said U.S. Attorney Trent Shores. “Fraud investigations performed by inspectors general are crucial to identifying waste, abuse, or fraud. I applaud the efforts of the investigators and Assistant U.S. Attorneys Scott Proctor and Shannon Cozzoni in this case.”
Kendall and Larue illegally took money from the Social Security Administration in the aggregate value of $224,237 in Social Security income as well as money from the Department of Defense Military Retirement Fund in the aggregate value of $129,765 in military retirement funds. The two are subject to a criminal forfeiture money judgement in the amount of $354,002.
U.S. District Judge Gregory K. Frizzell set sentencing for Dec. 4, 2019.
The Social Security Administration- Office of Inspector General and Department of Defense Criminal Investigative Service conducted the investigation. Assistant U.S. Attorneys Scott Proctor and Shannon Cozzoni are prosecuting the case.
Two Pittsburgh men indicted on drug chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Raimonte Gordon Gaston and Tayshawn Natel Blair, both of Pittsburgh, Pennsylvania, were indicted by a federal grand jury today on heroin and fentanyl distribution charges, United States Attorney Bill Powell announced.
Gaston, also known as “Boog,” Barkley Boo,” Barkley,” and Ray,” age 27, and Blair, also known as “Tay,” are each charged with one count of “Conspiracy to Distribute and to Possess with the Intent to Distribute Heroin and Fentanyl,” one count of “Aiding and Abetting the Distribution of Heroin,” and one count of “Aiding and Abetting Possession with Intent to Distribute Heroin and Fentanyl.” The men are accused of working together to distribute heroin and fentanyl in Harrison County and elsewhere from September 2018 to January 2019.
Gaston and Blair each face up to 20 years incarceration and a fine of up to $1,000,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Bridgeport Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Charged with Illegally Distributing Prescription NarcoticsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal grand jury in Hartford has returned an indictment charging JOHN CAVANAUGH, also known as “Big John,” 67, of East Windsor, and THOMAS TROUGHTON, 54, of Agawam, Massachusetts, with offense related to the illegal distribution of prescription narcotics.
The indictment was returned on August 21, 2019.
Cavanaugh and Troughton were originally arrested on criminal complaints on August 13. Cavanaugh appeared today before U.S. Magistrate Judge Robert M. Spector in New Haven and enter a plea of not guilty to the charges. Cavanaugh is released on a $100,000 bond pending trial.
Troughton was arraigned yesterday and also entered a plea of not guilty. He is detained pending trial.
As alleged in court documents and statements made in court, in 2018 and 2019, investigators conducted surveillance of Cavanaugh and observed him conducting what appeared to be hand-to-hand drug deals on numerous occasions. In July 2019, investigators stopped narcotics customers after they conducted drug deals with Cavanaugh and seized pills from these customers. The investigation revealed that Troughton was a source of supply of pills for Cavanaugh.
The indictment charges with Cavanaugh and Troughton with one count of conspiracy to distribute and to possess with intent to distribute controlled substances, an offense that carries a maximum term of imprisonment of 20 years. The indictment also charges Cavanaugh with four counts of possession with intent to distribute, and distribution of, oxycodone, an offense that carries a maximum term of imprisonment of 20 years on each count.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Drug Enforcement Administration’s Hartford Task Force and the Windsor Locks Police Department. The Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments. The case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Two Aliens Indicted on Illegal Reentry ChargesRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned indictments charging Eduardo LOPEZ-Hernandez, age 28, of Mexico, and MIGUEL SALGADO-NARANJO, age 62, of Mexico, with Illegal Reentry of a Deported Alien.
If convicted of illegal reentry of a deported alien, LOPEZ-HERNANDEZ, who was found in Wayne County, was previously deported nine times, and was previously convicted of illegal entry four times, would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
SALGADO-NARANJO, previously deported and found in Johnston County, is alleged to have been previously removed subsequent to an aggravated felony conviction (sale of cocaine). Therefore if convicted, would face maximum penalties of 20 years imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by ICE’s Enforcement and Removal Operations and Homeland Security Investigations.
Treasurer Sentenced to Federal Prison for Embezzling Funds from the Medina Lake Betterment AssociationRead the Press Release
In San Antonio today, a federal judge sentenced former Treasurer Kenneth Edward Gilmore, 77 of Lakehills, TX, to 27 months in federal prison for stealing at least $177,000 from the Medina Lake Betterment Association (Medina), announced U.S. Attorney John F. Bash.
In addition to the prison term, U.S. District Judge Xavier Rodriguez ordered that Gilmore pay $177,000 in restitution and be placed on supervised release for a period of three years after completing his prison term.
On April 2, 2019, Gilmore pleaded guilty to one count of wire fraud. By pleading guilty, Gilmore admitted that beginning in 2008 until 2016, he devised a scheme to steal organization funds and use them for his own personal benefit.
“Gilmore lied to Medina board of directors, officers and supporters by providing false treasury reports, omitting material facts and concealing the charitable organization’s actual financial status,” stated U.S. Attorney Bash. “His criminal actions left the non-profit organization nearly bankrupt.”
The FBI and the Texas Department of Public Safety investigated this case. Assistant U.S. Attorneys William R. Harris and James K. Blankinship prosecuted this case on behalf of the Government.
Three Time Felon to Federal Prison for Meth Conspiracy and Gun PossessionRead the Press Release
A man who conspired to distribute methamphetamine while possessing guns was sentenced August 30, 2019, to 30 years in federal prison.
On March 21, 2019, Brandon Lee Boone, 46, from Des Moines, Iowa, pled guilty to conspiracy to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime and possession of a stolen firearm. Boone was previously convicted of the manufacture/delivery/possession with intent to deliver methamphetamine in 2004 and possession with intent to deliver methamphetamine in 2008, both in the Iowa District Court. Boone was also previously convicted of possession of a firearm and ammunition by a felon in the United States District Court in 2009 and felony drug trafficking of methamphetamine with a firearm in Worthington, Minnesota in 2018.
At the plea hearing, Boone admitted his involvement in a conspiracy that distributed at least 15 kilograms of mixed methamphetamine from January 2018 through February 2018. On February 6, 2018, in Fort Dodge, Iowa, during a routine traffic stop of a vehicle in which Boone was a passenger, law enforcement seized over 800 grams of actual (pure) methamphetamine and three guns, including a loaded .44 caliber handgun on his person and a stolen AR-15 rifle with an extra capacity 60 round drum magazine. Boone admitted he possessed the methamphetamine with intent to distribute it and possession of guns (as a convicted felon) during the time and in furtherance of the conspiracy to distribute methamphetamine. At the time of the stop, Boone was heard to say “If I could get to my guns, I would blow their heads off.”
Boone was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Boone was sentenced to 360 months’ imprisonment and must serve a 10 year term of supervised release following imprisonment. Boone remains in U.S. Marshals custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Fort Dodge Police Department, Iowa Department of Narcotics Enforcement, Webster County Sheriff’s Office, Humboldt County Sheriff’s Office, and the Iowa Division of Criminalistics Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-3004. Follow us on Twitter @USAO_NDIA.
Three Bronx Gang Members Arrested and Charged with Murder, Racketeering, and Firearms OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Peter C. Fitzhugh, the Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), and Margaret Garnett, Commissioner of the New York City Department of Investigation (“DOI”), announced today the unsealing of an Indictment charging ROBERT WILSON, a/k/a “RO,” KEVIN CROSBY, a/k/a “Sama,” and YEFREL BRITO, a/k/a “Mini,” with murder in aid of racketeering, conspiracy to commit murder in aid of racketeering, and firearms offenses in connection with the murder of Nelson Ramos on January 6, 2019, in the Bronx. WILSON is also charged with participating in a racketeering conspiracy.
WILSON and CROSBY were arrested last night. BRITO was already in federal custody, having been previously charged with narcotics trafficking. CROSBY was presented today before Magistrate Judge Sarah Netburn. WILSON and BRITO will be presented this afternoon before Magistrate Judge Debra Freeman. The case is assigned to U.S. District Judge Jesse M. Furman.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged in the indictment, these defendants are responsible for the cold-blooded murder of Nelson Ramos earlier this year. We commend the extraordinary efforts of our law enforcement partners to bring these defendants to justice.”
HSI Special Agent-in Charge Peter C. Fitzhugh said: “These gang members are alleged to not only brandish firearms and deal drugs in their own Bronx neighborhood, but they are also known to threaten acts of violence against rival gangs. HSI will continue to work with the NYPD, and its law enforcement partners, to rid our city streets of gangs, like the Stevenson Commons Crew, and the drugs and violence they promote.”
DOI Commissioner Margaret Garnett said: “This investigation demonstrates how gang violence, and the murders, drugs and other crimes associated with it, rips at the fabric of communities, terrorizes residents, and destroys New Yorkers’ lives. Many of the charged crimes in this case took place in public housing in the Bronx, and DOI contributed its expertise on how violence and criminality can take root in these communities. Working in partnership with the NYPD, the New York Field Office of Homeland Security Investigations, and the United States Attorney’s Office for the Southern District of New York, DOI is proud to be part of the team to protect New York neighborhoods and hold accountable those individuals who perpetrate serious and devastating crimes.”
NYPD Police Commissioner James P. O’Neill said: “Exceptional collaboration among the NYPD and its local law enforcement partners have resulted in the successful dismantling of this violent street gang. To ensure the safety of our neighborhoods, we must continue to be vigilant about combating gang activity wherever it occurs.”
According to the allegations in the Indictment unsealed today in Manhattan federal court[1]:
WILSON and CROSBY are members or associates of a racketeering enterprise known as the Stevenson Commons Crew. In order to fund the enterprise, protect and expand its interests, and promote its standing, members and associates of the Stevenson Commons Crew committed, conspired, attempted, and threatened to commit acts of violence against rival gangs, including murder and robbery; conspired to distribute and possess with intent to distribute narcotics; and obtained, possessed and used firearms, including by brandishing and discharging them.
BRITO is a member or associate of a racketeering enterprise known as Sex Money Murder, a criminal organization whose members and associates engaged in, among other things, murder, attempted murder, and narcotics trafficking.
On January 6, 2019, WILSON, CROSBY, and BRITO murdered Nelson Ramos in the vicinity of 800 Soundview Avenue in the Bronx, New York.
* * *
WILSON, 28, CROSBY, 23, and BRITO, 21, all from the Bronx, New York, are each charged with one count of murder and assault with a deadly weapon in aid of racketeering, which carries a maximum sentence of death or life in prison, and a mandatory minimum sentence of life in prison; one count of conspiracy to commit murder in aid of racketeering, which carries a maximum sentence of 10 years in prison; and one count of murder through use of a firearm, which carries a maximum sentence of death or life in prison, and a mandatory minimum sentence of five years in prison. WILSON is also charged with one count of racketeering conspiracy, which carries a maximum sentence of life in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.
Mr. Berman praised the investigative work of HSI and the NYPD.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Andrew K. Chan and Justin V. Rodriguez are in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment constitutes only allegations, and every fact described herein should be treated as an allegation.
Texas Man Sentenced in H-2B Visa ScamRead the Press Release
BROWNSVILLE, Texas – A 45-year-old Houston man has been sentenced in Brownsville federal court for recruiting individuals to petition for visa workers they did not need, announced U.S. Attorney Ryan K. Patrick along with Jeffrey McGallicher, special agent in charge of the U.S. State Department’s Diplomatic Security Service (DSS) - Houston Field Office, Special Agent in Charge Shane Folden of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) - San Antonio, U.S. Citizenship and Immigration Services (USCIS) Acting Director Ken Cuccinelli and Steven Grell, special agent in charge of Department of Labor - Office of Inspector General (DOL-OIG), Dallas Region.
Marco Pesquera pleaded guilty to conspiracy to commit visa fraud Jan. 3, 2019.
Today, U.S. District Judge Fernando Rodriguez sentenced Pesquera to 38 months in prison to be immediately followed by three years of supervised release. He was further ordered to forfeit $5 million in a money judgment and his Houston residence.
Norma Linda Vega, 46 of Houston, Saul Atkinson, 47, of Brownsville, and Gwendolyn Saldivar, 41, of Snellville, Georgia were also charged and have pleaded guilty.
At the time of plea, Pesquera admitted that from approximately 2011 to January of 2018, he and his co-conspirators utilized legitimate and fictitious companies to petition for H-2B visas. Pesquera recruited and paid individuals to petition for visa workers they did not need and then utilized the foreign workers to fulfill labor contracts.
“This is a perfect illustration of our global reach and our ability to partner with U.S. and foreign law enforcement agencies on complex international, multi-jurisdictional cases,” said McGallicher. “DSS and our counterparts are conducting investigations like these on a daily basis around the world to protect the integrity of the visa process, the security of the homeland and the American work force.”
“HSI’s message is clear – America’s legal immigration system is not for sale,” said Folden. “In addition to posing significant security and safety vulnerabilities that could be exploited by criminals and others who pose a danger to our community, immigration benefit fraud undermines the integrity of our legal immigration process and penalizes those who abide by the law.”
“USCIS officers are on the job everyday looking to identify and expose those who attempt to defraud and exploit our nation’s immigration system,” said Cuccinelli. “We are proud to have supported our law enforcement partners in this investigation and pleased to have had a role in putting this fraudster out of business.“
“Pesquera and his co-conspirators defrauded the DOL’s H-2B program by filing false documentation to obtain visas for more than 1000 foreign workers to work in the U.S illegally,” said Grell. “We will continue to work with our law enforcement partners to vigorously pursue those who defraud worker visa programs for their own personal gain.”
Pesquera’s business, Pangea Enterprises Inc., contracted with large industries to provide labor and profited by paying foreign workers an hourly wage well below the contract rate.
Pesquera and his co-defendants utilized false documents that included contracts, tax forms, web sites and fictitious phone numbers and business addresses to facilitate the fraud.
Pesquera also admitted to obstructing the investigation by creating false documents in response to a federal subpoena.
He was permitted to temporarily remain on bond and surrender Oct. 4, 2019, to begin his sentence at a U.S. Bureau of Prisons facility.
DSS, HSI, USCIS and DOL-OIG conducted the investigation as members of the Document and Benefit Fraud Task Force. Assistant U.S. Attorney Bill Hagen is prosecuting the case.
Tennessee Sex Offender Indicted on Charge of Failure to RegisterRead the Press Release
Springfield, Ill. – A federal grand jury in Springfield today returned an indictment that charges Shay Christopher Greene, 23, of Knoxville, Tenn., with failure to register as a sex offender upon his relocation from Tennessee to Danville, Ill., in May 2019. The U.S. Clerk of the Court will schedule Greene for arraignment in Urbana, before U.S. Magistrate Judge Eric I. Long, at a future date.
Greene was arrested on Aug. 14, 2019, and charged by criminal complaint. According to the affidavit filed in support of the complaint, in March 2019, Greene was released from incarceration in Tennessee, where he was convicted of sexual exploitation of a minor involving production of child pornography. In late May 2019, Greene allegedly relocated to Danville, Ill., and failed to register or update his registration as required under the Sex Offender Registration and Notification Act. While in Danville, Greene allegedly resided at various locations, including a local homeless shelter in Danville, and a residence on Kist Ave., Danville. Also, Greene allegedly used assumed names, including “Christopher Wolfe,” in Danville.
The indictment returned today charges Greene with the offense of failure to register as a sex offender, from May 31 to Aug. 14, 2019. If convicted, the statutory penalty for the offense is up to 10 years in prison plus a fine of up to $250,000.
Following his arrest, Greene made his initial court appearance on Aug. 14, 2019, before U.S. Magistrate Judge Long, who ordered that Greene be detained. Greene has remained in the custody of the U.S. Marshals Service since his arrest.
The case is being prosecuted by Assistant U.S. Attorney Elly M. Peirson, The charge is the result of investigation by the U.S. Marshals Service and the Danville and Catlin, Ill., Police Departments.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat child sexual exploitation and abuse launched in May 2006 by the Department of Justice. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Somerset County Man Sentenced to Five Years in Prison for Receipt of Child PornographyRead the Press Release
TRENTON, N.J. – A Somerset County, New Jersey, man was sentenced today to 60 months in prison for receiving images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Lomere T. Walls, 27, of Franklin Park, New Jersey, previously pleaded before U.S. District Judge Brian R. Martinotti to an indictment charging him with one count of receipt of child pornography. Judge Martinotti imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Walls used a peer-to-peer file sharing program, which he installed on his computer several years ago, to download videos and images of child sexual abuse. Between July and November of 2016, law enforcement downloaded dozens videos of child pornography from Walls’ computer. After executing a search warrant at Walls’ home in November of 2016, agents located 149 videos and 92 images of child sexual abuse on Walls’ computer and phone. Walls admitted that he had been actively searching for videos and images of child pornography, which he had previously saved on his computer.
In addition to the prison term, Judge Martinotti sentenced Walls to five years of supervised release.
U.S. Attorney Carpenito credited special agents with the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael in Newark, with the investigation leading to today’s sentencing. The investigation was also assisted by the Somerset County Prosecutor’s Office under the direction of Prosecutor Michael H. Robertson.
The government is represented by Assistant U.S. Attorney Mark J. McCarren of the U.S. Attorney’s Special Prosecutions Division in Newark.
Defense counsel: Eric Mark Esq., Newark
Six People Indicted on Drug Conspiracy and Firearms ChargesRead the Press Release
St. Louis, MO – A suppressed federal indictment was unsealed today charging six individuals with drug trafficking and firearm-related charges for the years 2018 to the present. The individuals and charges include:
- WILLIAM GOODLOW, 37, charged with conspiracy to distribute fentanyl and heroin;
- MARCUS JERMAINE MOORE, 35, charged with conspiracy to distribute fentanyl and heroin;
- CHRISTOPHER SANTEL MOORE, 33, charged with conspiracy to distribute fentanyl and heroin;
- JEFFREY TREMAINE STIDMON, 37, charged with conspiracy to distribute fentanyl and heroin;
- DURRELL BRENT JOHNSON, 33, charged with two counts of conspiracy to distribute fentanyl and heroin; marijuana distribution; possession of a firearm in furtherance of drug trafficking; being a felon in the possession of one or more firearms; and
- FLORA LOUISE JOHNSON, 31, charged with two counts of conspiracy to distribute fentanyl and heroin.
Charges set forth in the indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty. This indictment and today’s arrests are a continuation of the on-going investigation into drug trafficking, overdose deaths, homicides, and firearm offenses occurring within and stemming from illegal activity connected to the Clinton-Peabody housing complex.
Following the unsealing of today’s indictment, United States Attorney Jeff Jensen stated, “These arrests and unsealing of today’s indictment resulted from the coordinated effort between our office and our federal, state, and local law enforcement partners. It is part of an active, on-going investigation focused on organized groups of individuals committing drug- and firearms-related crimes in the City of Saint Louis.”
“Parts of our city are being devastated by drugs and gun violence,” said Acting Special Agent in Charge Alicia Corder of the FBI St. Louis Division. “Today's arrests show the commitment of law enforcement at all levels to work together to rid the streets of this lawlessness.”
“After recently attending an event to raise awareness about the opioid epidemic, this indictment is an example of the essential work officers do every day to combat drug-related crimes,” said Saint Louis Metropolitan Police Department Chief John Hayden after today’s indictment was unsealed. “Our continued coordination with our federal and local partners is valued and can save lives by getting drugs and firearms off of our streets.”
If convicted, the drug conspiracy charges carry a maximum sentence of 20 years. The use of firearm in furtherance of drug trafficking charge carries a statutory minimum term of imprisonment of five years up to life consecutive to any other sentence imposed. The felon in possession of a firearm by a previously convicted felon carries a statutory maximum sentence of 10 years imprisonment.
In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case is being investigated by the Federal Bureau of Investigation; the Saint Louis Metropolitan Police Department; and Drug Enforcement Administration.
- WILLIAM GOODLOW, 37, charged with conspiracy to distribute fentanyl and heroin;
Sioux City Man Sentenced to Prison for Failure to Register as a Sex OffenderRead the Press Release
A man who failed to register as a sex offender was sentenced on September 29, 2019, to 41 months’ in federal prison.
Charles Lee Cook, age 36, from Sioux City, received the prison term after an April 9, 2019, guilty plea to one count of failure to register as a sex offender.
At the guilty plea, Cook admitted that from October 20, 2017, through November 18, 2018, he knowingly failed to register or update his registration as required by the Sex Offender Registration and Notification Act. The investigation showed that beginning in April 2018, Cook registered two different addresses in Sioux City, but failed to reside at either location. Cook is required to register as a sex offender due to a March 28, 2007, conviction for sexual abuse in the U.S. District Court for the District of Nebraska.
Cook was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Cook was sentenced to 41 months’ imprisonment. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Cook is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Kevin C. Fletcher and investigated by the United States Marshals Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-04006.
Follow us on Twitter @USAO_NDIA.
Senior Manager of Global Internet Company Charged in Embezzlement SchemeRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York announced the arrest of HICHAM KABBAJ, a former senior manager in Manhattan for a global internet company (“Company-1”), for wire fraud and transacting in criminally derived proceeds. KABBAJ was arrested today and presented before Magistrate Judge Debra Freeman .
According to allegations in the Complaint unsealed today[1]:
From at least August 2015 until at least May 2019, KABBAJ engaged in a scheme to defraud his employer into paying a vendor named Interactive Systems for various IT products and services. Pursuant to the scheme, Interactive Systems sent approximately 52 invoices to KABBAJ for payment. In reality, Interactive Systems was a shell company controlled by KABBAJ, and money Company-1 sent Interactive Systems was quickly transferred to KABBAJ’s own bank accounts. From in and about December 2016 until in and about July 2019, Company-1 paid Interactive Systems more than $4.5 million.
KABBAJ, 48, of Floral Park, New York, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison, and one count of transacting in criminally derived property, which carries a maximum sentence of 10 years. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
This case is being investigated by Special Agents of the U.S. Attorney’s Office, with the assistance of the Internal Revenue Service.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Ni Qian and Andrew A. Rohrbach are in charge of the prosecution.
The charges in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Seffner Man Pleads Guilty to Federal Firearms and Arson ChargesRead the Press Release
Tampa, Florida – Joshua David Jordan (30, Seffner) today pleaded guilty to two counts of discharging a firearm during and in relation to attempted carjackings and one count of arson. The firearms charges each carry a minimum mandatory, consecutive sentence of 10 years, up to life, in federal prison. The arson charge carries a minimum mandatory sentence of 5 years, and up to 20 years, in prison.
According to the
plea agreement , on the night of October 3, 2017, Jordan attempted to commit two armed carjackings in Hillsborough County, firing a semi-automatic handgun during each one. In the second attempted carjacking, Jordan shot the driver, who escaped and survived. Jordan then stole and set fire to a landscaping company’s spray truck, resulting in its destruction.This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Christopher Murray and Callan Albritton.
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.