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Monday 22 July 2019
Idabel Man Pleads Guilty to Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Joel Seth Hood, age 37, of Idabel, Oklahoma, entered a guilty plea to Felon In Possession Of Firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleged that on or about November 30, 2018, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the McCurtain County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Clay Compton represented the United States.
Hungary Subsidiary of Microsoft Corporation Agrees to Pay $8.7 Million in Criminal Penalties to Resolve Foreign Bribery CaseRead the Press Release
Microsoft Magyarország Számítástechnikai Szolgáltató és Kereskedelmi Kft. (Microsoft Hungary), a wholly owned subsidiary of Microsoft Corporation, has agreed to pay a criminal penalty of more than $8.7 million to resolve the government’s investigation into violations of the Foreign Corrupt Practices Act (FCPA) arising out of a bid rigging and bribery scheme in connection with the sale of Microsoft software licenses to Hungarian government agencies.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Geoffrey S. Berman of the Southern District of New York and Assistant Director Robert Johnson of the FBI’s Criminal Investigative Division made the announcement.
According to Microsoft Hungary’s admissions, beginning by at least 2013 and continuing until at least 2015, a senior executive and other employees of Microsoft Hungary participated in a scheme to inflate margins in the Microsoft sales channel in connection with the sale of Microsoft software licenses to Hungarian government agencies. In furtherance of that scheme, Microsoft Hungary executives and employees falsely represented to Microsoft that steep discounts were necessary to conclude deals with resellers who bid for the opportunity to sell Microsoft licenses to government customers. In actuality, the savings were not passed on to the government customers, but instead were used for corrupt purposes and were falsely recorded as “discounts” and stored in various tools and databases on Microsoft servers in the United States in violation of the Foreign Corrupt Practices Act.
Microsoft Hungary entered into a nonprosecution agreement and agreed to pay a criminal penalty of $8,751,795 to resolve the matter. The Department reached this resolution based on several factors. Although Microsoft Hungary did not voluntarily self-disclose the misconduct, Microsoft Hungary received credit for its and Microsoft Corporation’s substantial cooperation with the Department’s investigation and for taking extensive remedial measures. For example, Microsoft Hungary terminated four licensing partners and Microsoft Corporation has implemented an enhanced system of compliance and internal controls, company-wide, to address and mitigate corruption risks. Accordingly, the criminal penalty reflects a 25 percent reduction off the bottom of the applicable U.S. Sentencing Guidelines fine range for the company’s full cooperation and remediation.
In a related matter with the Securities and Exchange Commission (SEC), Microsoft Corporation agreed to pay to the SEC disgorgement and prejudgment interest totaling approximately $16,565,151 for conduct in Hungary.
The case is being investigated by the FBI’s New York Field Office. Trial Attorneys Derek J. Ettinger and Della Sentilles of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Sarah Lai of the Southern District of New York are handling the case.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Hungary Subsidiary of Microsoft Corporation Agrees to Pay $8.7 Million Criminal Fine to Resolve Foreign Bribery CaseRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced that Microsoft Magyarország Számítástechnikai Szolgáltató és Kereskedelmi Kft. (Microsoft Hungary), a wholly owned subsidiary of Microsoft Corporation, has agreed to pay a criminal fine of more than $8.7 million to resolve the government’s investigation into violations of the Foreign Corrupt Practices Act (FCPA) arising out of a bid rigging and bribery scheme in connection with the sale of Microsoft software licenses to Hungarian government agencies and the false recording of the corrupt payments as legitimate customer discounts on Microsoft Corporation’s financial records.
U.S. Attorney Geoffrey S. Berman said: “U.S. multinational corporations must have robust policies and practices to prevent their foreign subsidiaries from participating in bribery that result in false and misleading entries in the books and records of the parent company. We will hold subsidiaries and, where appropriate, the parent corporations accountable wherever FCPA violations occur.”
FBI Assistant Director William F. Sweeney Jr. said: “Microsoft Hungary created a conduit for illegal activity, one that permeated the layers of oversight put in place to protect against violations of the Foreign Corrupt Practices Act. The $8.7 million penalty imposed today makes it abundantly clear that any alleged violation of the FCPA, whether on behalf of an individual or entity, will not be taken lightly.”
According to Microsoft Hungary’s admissions, Microsoft Hungary contracts with third party companies to sell licenses for Microsoft products to Hungarian government agencies. These intermediaries purchase the licenses from Microsoft Hungary, then resell the licenses to the end customers. Beginning at least 2013 and continuing until at least 2015, senior executives and other employees of Microsoft Hungary participated in a bribery and bid rigging scheme in connection with the sale of Microsoft software licenses to Hungarian government agencies. In furtherance of that scheme, certain Microsoft Hungary executives and employees falsely represented to Microsoft that steep discounts were necessary to conclude deals with resellers who bid for the opportunity to sell Microsoft licenses to government customers. As a result, those discounts were falsely recorded in Microsoft Corporation’s financial records as legitimate business expenses. In actuality, the savings were not passed on to the government customers, but were used by the resellers, in part, to pay bribes to Hungarian government officials. The tainted deals resulted in at least $14,586,325 in profits to Microsoft Corporation.
Microsoft Hungary entered into a nonprosecution agreement and agreed to pay a criminal fine of $8,751,795 to resolve the matter. This resolution was based on several factors. Although Microsoft Hungary did not voluntarily self-disclose the misconduct, Microsoft Hungary received credit for its and Microsoft Corporation’s substantial cooperation with the investigation and for taking extensive remedial measures. For example, Microsoft Hungary terminated four licensing partners, and Microsoft Corporation has implemented an enhanced system of compliance and internal controls, company-wide, to address and mitigate corruption risks. Accordingly, the criminal fine reflects a 25 percent reduction off the bottom of the applicable U.S. Sentencing Guidelines fine range for the company’s full cooperation and remediation.
In a related matter with the Securities and Exchange Commission (SEC), Microsoft Corporation agreed to pay to the SEC disgorgement and prejudgment interest totaling approximately $16,565,151 for conduct including Hungary.
Mr. Berman praised the outstanding investigative work of the FBI.
The case is being handled by the Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Sarah Lai is in charge of the prosecution, with support from Trial Attorneys Derek J. Ettinger and Della Sentilles of the Criminal Division’s Fraud Section.
Former VA Psychiatrist Sentenced for Health Care and Tax FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.—U.S. Attorney James P. Kennedy, Jr. announced today that Dr. Xingjia Cui, 56, of Pittsford, NY, who was convicted of health care and tax fraud, was sentenced to serve 12 months and 1 day in prison by U.S. District Judge Elizabeth A. Wolford. He was also ordered to pay restitution in the amount $597,823.
Assistant U.S. Attorney John J. Field, who handled the case, stated that the defendant was employed full-time by the Canandaigua Veterans Administration Medical Center, and in addition, Dr. Cui also maintained a private psychiatric practice in Canandaigua, NY.
A joint investigation involving federal, state and local law enforcement agencies showed that Dr. Cui had billed health insurance companies for psychotherapy services that he did not provide to his patients. Specifically, from January 1, 2013, to October 5, 2015, Dr. Cui willfully defrauded health insurance benefit programs of approximately $79,275 by fraudulently billing for psychotherapy services he did not provide.
In addition, the investigation showed that Dr. Cui failed to report on his federal income tax returns hundreds of thousands of dollars of payments that he received directly from his patients. For tax years 2010 through 2014, Dr. Cui failed to report approximately $381,447 income that he earned, resulting in a tax loss to U.S. Treasury in the approximate amount of $132,704.
The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the Internal Revenue Service, Criminal Investigations Division, under the direction of Jonathan D. Larson, Special Agent-in-Charge, New York Field Office; the New York State Department of Financial Services, under the direction of Superintendent Linda Lacewell; the New York State Medicaid Fraud Control Unit, under the direction of William Falk; and the Ontario County Sheriff's Office, under the direction of Sheriff Kevin M. Henderson.
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Former Law Enforcement Officers ConvictedRead the Press Release
HOUSTON – A federal jury in Houston has convicted two law enforcement officers and a confidential source on drug trafficking charges, announced U.S. Attorney Ryan K. Patrick.
The jury deliberated for approximately four hours before convicting Carmen Saldaňa Meyer, a 64-year-old resident of Mission; and former Edinburg Police Department officer Hector Beltran, 44, and former Border Patrol agent Daniel Polanco, 38, both of Edinburg.
The jury heard the investigation began in 2011 when authorities targeted a drug trafficking organization involved in stealing loads of cocaine from sources of supply. The organization had created fake bundles of drugs and used law enforcement officers to seize them in order to cover up the theft.
During the two-week trial, the government presented evidence that Beltran and Polanco abused their positions of trust as law enforcement officers to further the conspiracy. The jury heard they had seized fake bundles of cocaine and provided co-conspirators with police reports of the seizure.
Meyer was an FBI confidential source and would deliver the seizure paperwork to Gulf Cartel associates in Mexico as proof law enforcement had seized the cocaine as opposed to being stolen and sold.
The jury heard Beltran, Polanco and Meyer all received a payment from drug proceeds.
All three defendants testified at trial and denied participating in the scheme.
The did not believe their claims and convicted all three of conspiracy to possess with intent to distribute more than five kilograms of cocaine. Polanco and Meyer were also found guilty of one and two counts, respectively of possession with intent to distribute cocaine. Polanco was further convicted of making a false statement to federal agents, while Meyer was also found guilty of kidnapping.
All face a minimum of 10 years and up to life in prison as well as a possible $10 million fine. U.S. District Judge Keith P. Ellison has sentencing for Oct. 8, 2019.
Beltran and Polanco were permitted to remain on bond pending that hearing. Meyer has been and will remain in custody.
Nine others, including a former Houston Police Department officer and a former officer with the Harris County Constable’s Office have previously pleaded guilty and are pending sentencing.
Immigration and Customs Enforcement’s Homeland Security Investigations and Drug Enforcement Administration conducted the Organized Crime Drug Enforcement Task Force Investigation dubbed Operation Blue Shame. Assistant U.S. Attorney Casey N. MacDonald and Anibal J. Alaniz are prosecuting the case.
Former IPS Teacher's Union President Pleads Guilty to EmbezzlementRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today that Rhondalyn Cornett, 54, of Indianapolis has entered a plea of guilty to embezzling over $100,000 from the teachers’ union.
According to the plea agreement, Cornett was the president of the Indianapolis Education Association, the union that represents the teachers of Indianapolis Public Schools, from November 2013 until her resignation in November 2018. Cornett used her position and authority to write checks from the union’s bank account as well as use the union’s debit card for personal expenses and to withdraw cash. In total, Cornett stole over $100,000.
“The U.S. Attorney’s Office is committed to prosecuting individuals, like Cornett, who abuse their positions of public trust,” said Minkler. “Teachers depend on the union dues they’ve paid from their paychecks in order for the union to represent their best interests.”
This case was jointly investigated by the Federal Bureau of Investigation, the Marion County Prosecutor’s Office, and the Indianapolis Metropolitan Police Department.
“Today’s guilty plea demonstrates the FBI’s commitment to identify, arrest and prosecute anyone who participates in defrauding programs that benefit our public institutions,” said Special Agent in Charge Grant Mendenhall. “This guilty plea comes as a result of the dedicated and tireless efforts of agents, analysts and prosecutors committed to holding accountable those who deliberately compromise the integrity of their public position for personal gain.”
“Teachers carry the great responsibility of shaping our future — cultivating the next generation of our city’s workforce and the leaders who will carry Indianapolis forward. It is unacceptable that anyone would seek to take advantage of the selfless individuals who have dedicated their careers to educating. The women and men of the IMPD remain committed to working alongside our state and federal partners to hold these bad actors accountable,” said IMPD Chief Bryan Roach.
According to Assistant United States Attorney Bradley P. Shepard who is prosecuting this case, Cornett faces up to 20 years in prison, a fine of up to $250,000 and up to three years supervised release following imprisonment.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting large-scale fraud schemes that warrant federal resources and arrest those who abuse their positions of trust. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 5.3
Federal jury convicts three Monroe residents of illegal drug traffickingRead the Press Release
MONROE, La. – A federal jury handed down guilty verdicts against three Monroe residents late Friday afternoon for trafficking illegal narcotics, U.S. Attorney David C. Joseph announced.
Thomas J.M. Goodin, 37, Meko R. Walker, 37, and Brittany S. Gix, 30, all of Monroe, were convicted after a four-day jury trial presided over by U.S. District Judge Terry Doughty.
All three defendants were found guilty of conspiracy to possess with intent to distribute more than 50 grams of methamphetamine. In addition, Goodin was found guilty of possession with intent to distribute more than 50 grams of methamphetamine and possession with intent to distribute more than 10 grams of phencyclidine (PCP), and Walker and Gix were found guilty of attempted possession with intent to distribute more than 50 grams of methamphetamine.
Testimony presented during the trial showed that Goodin traveled to California on October 4, 2017, and shipped approximately a pound of pure methamphetamine inside of a gift-wrapped present to Gix. Agents intercepted the package and conducted a controlled delivery of the package to Gix’s home. After Gix received the package, Walker arrived at the home to pick up the package, and left with the methamphetamine. At that point, the Metro Narcotics Unit of Ouachita Parish arrested Walker and Gix.
In a second incident, a Louisiana State Trooper pulled over Goodin’s vehicle on November 30, 2017, in West Monroe on Interstate 20 traveling eastbound bearing California license plates. After a K-9 alerted on the vehicle, the trooper searched it and found additional gift-wrapped presents containing two drink bottles filled with liquid determined to be 92.8 grams of pure PCP and a candle containing a plastic bag determined to be 343.1 grams of pure methamphetamine.
“Illegal drugs are wreaking havoc on our communities and prosecuting those responsible for selling this poison is a priority of our office,” Joseph stated. “These defendants will be spending substantial time in federal prison as a result of their crimes. I want to thank the federal, state, and local law enforcement for their hard work and exemplary teamwork in tracking these defendants and investigating this case. I also want to thank the prosecutors and staff for their work conducting this trial professionally and effectively.”
Goodin faces 25 years to life in prison, and Walker and Gix face 10 years to life in prison. The defendants also face five years of supervised release and a $10 million fine. The court set sentencing for November 6, 2019.
The DEA, Metro Narcotics Unit of Ouachita Parish, Ouachita Sheriff’s Office and Monroe Police Department investigated the case. Assistant U.S. Attorney Mike O’Mara of the U.S. Attorney’s Office, Western District of Louisiana, and Special Assistant U.S. Attorney Michelle Anderson Thompson of Louisiana Attorney General Jeff Landry’s Office, Criminal Division, prosecuted the case.
Federal & Local Law Enforcement to Announce Pleas in MS-13 Racketeering CaseRead the Press Release
COLUMBUS, Ohio – Two men, including the lead defendant, have agreed to plead guilty in the MS-13 racketeering case to multiple murders and serve life in prison. Two others have agreed to plead guilty and potentially serve 35-40 years in prison.
The briefing will be held:
TODAY: MONDAY, JULY 22, 2019
WHEN: IMMEDIATELY FOLLOWING 10:30AM PLEA HEARING BEFORE CHIEF U.S. DISTRICT JUDGE EDMUND A. SARGUS, JR.
WHERE: Joseph P. Kinneary U.S. Courthouse
Front steps
85 Marconi Blvd.
Columbus, Ohio 43215
WHO: U.S. Attorney Benjamin C. Glassman
Columbus Interim Chief of Police Thomas Quinlan
Kristin Beggs, Supervisory Special Agent, FBI
Briefing will occur outside the front entrance of the federal courthouse. The plea hearing is open to the media. No cameras are permitted within the courthouse.
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Engineering Graduate Pleads Guilty to Lying to Federal AgentsRead the Press Release
Aaron Fein concealed use of an AR-15 semiautomatic assault rifle
GRAND RAPIDS, MICHIGAN - Aaron William Fein, 24 years old, of Grand Rapids, admitted in open federal court that he deliberately lied to the FBI Joint Terrorism Task Force in April, 2019. Lying to federal agents is a felony carrying a penalty of up to five years’ imprisonment and a $250,000 fine.
"This outcome holds Fein accountable for his deceit while assuring that he will have an opportunity for mental health treatment and not again be able to lawfully possess a firearm," advised U.S. Attorney Andrew Birge. "And it is thanks to the vigilance and tireless efforts of the FBI Joint Terrorism Task Force and its multiple federal and local law enforcement partners that Fein was arrested and could be charged before posing further danger."
Task Force Agents first became aware of Fein in August, 2018, when he attempted to cross into Canada without proper documentation. When he returned, U.S. Customs and Border Protection agents found documents and materials in his car relating to bomb making and jihadism. Fein admitted having bomb-making materials at his home, and told agents he was interested in mass shootings. During the following months, Task Force Agents kept close tabs on Fein, including encouraging him to seek counseling.
On several occasions this year, Fein obtained and attempted to obtain firearms and ammunition, but agents interceded. Agents eventually filed a petition for mental health treatment, and the Kent County Probate Court ordered Fein not to possess any firearms. In April, 2019, agents learned Fein had rented an AR-15 style semiautomatic assault rifle and trained with it at a firearms range in eastern Michigan. When they apprehended him soon after, he falsely stated he had not touched any guns. Video recordings from the range clearly showed him shooting the rifle. After additional investigation, agents learned Fein had bought metalworking tools. They arrested him at his residence, and found unassembled parts for multiple AR-15 rifles, as well as radio transmitters and electrical components for an improvised explosive device. Fein has a college degree in engineering.
Fein will be held in custody until his sentencing in Kalamazoo, before the Hon. Paul L. Maloney, United States District Judge. FBI was assisted in this investigation by Homeland Security Investigations.
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Dominican National Sentenced to Prison for Misusing Social Security Number and Stealing Government BenefitsRead the Press Release
BOSTON – A Dominican national was sentenced today in federal court in Boston for false representation of a Social Security number and theft of public money.
Noemi Mejia, 51, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to one year and one day in prison, two years of supervised release, and ordered to pay $164,987 in restitution. Mejia will be subject to deportation upon completion of her sentence. In April 2019, Mejia pleaded guilty to false representation of a Social Security number and theft of public money. Mejia was charged in May 2018 and released on conditions.
In August 2001, Mejia applied to participate in the Department of Housing and Urban Development’s Section 8 Program, which is administered by the Boston Housing Authority, using the name, Social Security number, and date of birth of a U.S. citizen from Puerto Rico. By falsely claiming that she was a U.S. citizen, Mejia was deemed eligible to receive Section 8 benefits. Mejia also applied for MassHealth benefits using the identity of a Puerto Rican citizen, which rendered her eligible for more expansive healthcare coverage. Mejia also used the stolen identity to obtain a Massachusetts driver’s license and to work.
While receiving benefits under the stolen identity, Mejia applied for and received additional Section 8 housing vouchers and food stamps using her true name. She received these benefits on behalf of her daughter, who is a United States citizen. The amount of the benefits received under these programs is determined, in part, by household income. Because Mejia did not report the income she earned using the stolen identity, she fraudulently received Section 8 benefits and food stamps in her true name.
In total, Mejia stole more than $164,000 in federally-funded housing assistance benefits, MassHealth benefits, and Food Stamps.
United States Attorney Andrew E. Lelling; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of the Inspector General, Northeast Regional Office; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Suzanne M. Bump, State Auditor of the Commonwealth of Massachusetts, made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit prosecuted the case.
Dominican Man Admits Role in Conspiracy to Distribute over 100 Grams of HeroinRead the Press Release
NEWARK, N.J. – A Dominican man admitted today that he participated in a conspiracy to transport more than 100 grams of heroin from New York to New Jersey, U.S. Attorney Craig Carpenito announced.
Bienvenido Perez Lazala, 31, of the Dominican Republic, pleaded guilty before U.S. District Judge Brian R. Martinotti in Newark federal court to an information charging him with conspiracy to possess with intent to distribute more than 100 grams of heroin.
According to documents filed in this case and statements made in court:
In January 2018, a Mexican narcotics trafficker provided another individual with Lazala’s name and identified Lazala as someone who could assist in establishing narcotics sales in New Jersey. Lazala was contacted and agreed to obtain heroin to sell in New Jersey.
On or about February 5, 2018, following a series of intercepted calls, Lazala obtained 955.9 grams of heroin in Haverstraw, New York for purposes of transporting it back to New Jersey. Lazala then sold the heroin to another individual, who unbeknownst to Lazala was a law enforcement officer.
The conspiracy charge to which Lazala pleaded guilty carries a mandatory minimum penalty of 5 years in prison, a maximum potential penalty of 40 years in prison, and a $5 million fine. Sentencing is scheduled for November 4, 2019.
Lazala has been in custody since his arrest in New York on February 5, 2018.
U.S. Attorney Carpenito credited special agents of U.S. Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Ari Fontecchio of the U.S. Attorney’s Office Economic Crimes Unit.
Defense counsel: David Holman Esq., Newark, New Jersey
Disbarred Lawyer Pleads Guilty to Wire Fraud and Aggravated Identity Theft for Scheme to Steal from Friend and FamilyRead the Press Release
A disbarred Seattle attorney pleaded guilty today to aggravated identity theft and wire fraud for his scheme to steal the identities of a romantic partner and his relatives and using that personal information for fraud, announced U.S. Attorney Brian T. Moran. JOHN WILLIAM ALDERSON, 47, had a previous conviction in 2003 for wire fraud and Social Security fraud which resulted in a 41-month prison sentence and his disbarment. In 2014, ALDERSON met and began a romantic relationship with the victim and stole the victim’s identity to open multiple credit card accounts and incurred more than $260,000 in debt. All the while ALDERSON lied about his age, claimed to be independently wealthy, and concealed his prior criminal conviction and disbarment. Prosecutors have agreed to recommend no more than 54 months in prison when ALDERSON is sentenced by U.S. District Judge Richard A. Jones on November 1, 2019.
According to the plea agreement, ALDERSON moved into his victim’s home in 2015 and gained access to the victim’s personally identifying information. Using that information ALDERSON opened the credit card accounts and pretended to be the victim to dispute charges on the credit cards. One of the charges incurred on the cards was for ALDERSON to have plastic surgery at a Bellevue clinic. Those charges traveled interstate, constituting wire fraud. ALDERSON induced the victim to write him checks that were to be deposited in a joint investment account but instead were used by ALDERSON for his own expenses. ALDERSON forged letters and emails from various attorneys representing that ALDERSON was to receive a large financial settlement. Those representations were false. ALDERSON also used the identity of relatives living in Enumclaw to open an additional credit card account resulting in more than $38,000 in fraud. ALDERSON admits to a total fraud loss of more than $262,712.
The case was investigated by the FBI.
The case is being prosecuted by Assistant United States Attorney Michael Dion.
Delaware Business-Exec Sentenced for Amtrak Bribery SchemeRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Donald Scott Crothers, 45, of Milford, Delaware was sentenced to 18 months’ incarceration and three years’ supervised release by United States District Judge R. Barclay Surrick for his role in a federal program bribery scheme involving millions of dollars in contracts with the National Railroad Passenger Corporation (“Amtrak”). Crothers’ co-defendant, John Gonzales, will be sentenced at a later date.
Crothers and Gonzales were both executives for a small, Delaware-based manufacturing firm; Crothers served as the firm’s Vice President for Marketing and Contract Administration. The pair bribed Timothy Miller, a Lead Contract Administrator working in procurement for Amtrak, with cash payments totaling approximately $20,000 and trips to Rehoboth Beach, Delaware. In turn, Miller awarded more than $7.6 million in Amtrak contracts to the defendants’ firm – contracts which were federally funded through US Department of Transportation/Federal Railroad Administration grants. Miller pleaded guilty on April 11, 2018.
“This defendant flouted the law to gain millions of public dollars for his firm under false pretenses,” said First Assistant United States Attorney Jennifer Arbittier Williams. “The contracting process for federally-funded transportation projects must be unbiased and competitive in order to ensure fairness for all competing businesses and taxpayers. This Office is committed to maintaining the integrity of the federal contracting system and will prosecute those who violate this important area of federal law.”
“Pursuing corrupt companies and individuals who abuse government procurement practices for personal gain demonstrates the Department of Transportation Office of Inspector General’s (DOT OIG) commitment to maintain the integrity of funds used for federal transportation goods and services,” said DOT OIG Regional Special Agent-In-Charge Douglas Shoemaker. “DOT OIG along with our law enforcement and prosecutorial partners will continue to strongly pursue such cases involving wrongdoing for corporate crimes and greed.”
“Donald Crothers tried to gin up more business for his firm — not by working harder or smarter, but through blatant bribery,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “He corrupted the government’s contracting process, yielding millions in ill-gotten gains, and is finally being held to account for his actions.”
“Today’s sentencing highlights our commitment to ensuring Amtrak’s contracting process remains free from criminal activity,” said Kevin Winters, Amtrak’s Inspector General. “We appreciate the seamless collaboration with the U.S. Attorney's Office as well as the sustained professionalism exhibited by our investigative staff and partner agencies in getting to this result.”
The case was investigated by the Amtrak Office of Inspector General, the Federal Bureau of Investigation, U. S. Department of Transportation Office of Inspector General, and the Internal Revenue Service, and is being prosecuted by Assistant United States Attorney Eric Gibson.
D.C. Government Contractor Sentenced to 6 Months for Making Illegal Conduit Campaign Contributions to D.C. Council CandidatesRead the Press Release
WASHINGTON – Keith Forney, 60, formerly of Clinton, Md., was sentenced on Friday to 6 months in prison for making 11 illegal campaign contributions to three different campaigns for D. C. Council. Forney was also sentenced to an additional 36 months, suspended, for fraud, perjury, and corrupt election practices.
The announcement was made by U.S. Attorney Jessie K. Liu, Charles A. Dayoub, Acting Special Agent in Charge, Criminal Division, FBI Washington Field Office, and District of Columbia Inspector General Daniel W. Lucas.
Forney is the owner of Forney Enterprises, Inc. (FEI), a general contracting company located in the District of Columbia. In April 2019, he was convicted of the campaign finance violations, three counts of fraud, two counts of perjury, and one count of corrupt election practices following a trial in the Superior Court of the District of Columbia. The fraud and perjury convictions stemmed from Forney falsely claiming to live at a D.C. address in order to obtain preference points for FEI in bidding for D.C. government contracts.
The Honorable Michael O’Keefe sentenced Forney on July 19, 2019 to 6 months of incarceration for the conduit campaign contribution counts and imposed a 36 month suspended sentence in total for the fraud, perjury, and corrupt election practices counts. Forney was also placed on three years of probation and ordered to perform 1,000 hours of community service and pay a $11,500 penalty.
According to the government’s evidence, FEI was a general contractor located in the District of Columbia. The District government had a preference program for local businesses when bidding for D.C. government contracts. The Department of Small and Local Business Development (DSLBD) certified that local businesses were eligible for preferences in certain categories. One of the categories was resident-owned business (ROB). The ROB category was worth five preference points, meaning that a bid was evaluated as if it was 5% less than the actual bid amount. On average, FEI bid for 15-30 D.C. government contracts per year using the ROB preference points. All of the contracts were worth over $1 million.
The evidence at trial established that in 2005, 2008, 2010, 2012, 2014, and 2016, Forney submitted applications to DSLBD falsely listing an address in the District of Columbia as his residence in order to obtain the ROB preference points. On the 2014 and 2016 applications, Forney certified under penalty of perjury that the applications were correct. Forney never lived at the address he provided. He had purchased the property in 2005 when it was being leased to a tenant. Forney continued to rent the property out while using the address for the ROB designation. Forney also obtained a D.C. driver’s license and a D.C. voter registration with the address of the rental property. He then submitted these documents to DSLBD to make it appear that he lived there.
Forney’s conviction for corrupt election practices was based on his July 2007 application for D.C. voter registration. The evidence at trial established that he falsely certified on the application that he was not registered to vote in any other jurisdiction when in fact he was registered to vote in Maryland. Forney continued to vote in Maryland after registering to vote in D.C. and did not cancel his Maryland registration until 2015. Forney also obtained Maryland and D.C. driver’s licenses on the same day.
The evidence at trial on the campaign finance charges established that Forney made the maximum allowable donations as an individual and on behalf of FEI to three candidates running for the D.C. council. Forney then directed associates to make personal contributions to these same candidates. Forney used FEI funds to reimburse the associates for the contributions.
In announcing the sentence, U.S. Attorney Liu, Acting Special Agent in Charge Dayoub, and District of Columbia Inspector General Lucas commended the work of those who investigated the case from the FBI’s Washington Field Office and the District of Columbia Office of the Inspector General. They also expressed appreciation for the assistance provided by Assistant U.S. Attorney Daniel Lenerz; Financial Analyst Bryan J. Snitselaar; Paralegal Specialists C. Rosalind Pressley, Joshua Fein, and Amanda Rohde; former Paralegal Specialists Toni Anne Donato and Kristy Penny; and former Criminal Investigator Juan Juarez. They also cited the efforts of Assistant U.S. Attorneys Anthony Saler and Andrea Duvall who prosecuted the case.
Commercial Fisherman Sentenced in Federal Court for Assault with Intent to MurderRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that July 9, 2019, Christopher Shane Dreiling was sentenced in federal court on two counts of assault with intent to murder within the special maritime jurisdiction of the United States. Dreiling received a thirty year prison sentence, consisting of fifteen years on each count of assault to run consecutive to each other.
At trial, a jury found that at dusk on August 20, 2017, Dreiling attacked the captain and another crew member of the Billy B. a commercial fishing vessel. After stabbing both victims multiple times with a fillet knife, Dreiling forced the victims off the boat and into the Gulf of Mexico approximately 46 miles south of Gulf Shores/Orange Beach. A distress call was received by Coast Guard Sector Mobile, which immediately dispatched the CGC Kingfisher, a helicopter from CG AIRSTA New Orleans, and a small boat from CG Station Pensacola. Sector Mobile also notified the Coast Guard Investigative Service. Because of quick and heroic action by the United States Coast Guard, both victims were eventually rescued from the water and evacuated to a hospital in Pensacola.United States Attorney Richard W. Moore said, “We are blessed to live on the Gulf Coast where life on the water is a part of our proud heritage. When we go out on our rivers, Mobile Bay or the High Seas we deserve to do so free of fear of marauders who would rob us of the enjoyment of being on the water. Fortunately, we have a skilled and vigilant Coast Guard on duty and ready to respond like they did in this case. We will not tolerate criminal acts anywhere within our jurisdiction whether it is against our commercial fishermen or our recreational boaters.”
"Men and women from multiple Coast Guard units immediately responded to this attack, demonstrating how committed we are to protecting the lives of mariners regardless of the hazard," said Rear Adm. Paul Thomas, Eighth District commander.
This case was investigated by the United States Coast Guard Investigative Service, RAO Mobile, AL.
Columbus Man Pleads Guilty to Threatening Oklahoma Sheriff, Local FBI AgentRead the Press Release
COLUMBUS, Ohio – Joseph Michael Bragg, 40, of Columbus pleaded guilty to charges connected with at least a dozen threats he sent to a sheriff in Oklahoma during a two-month period in 2018, and threatening a Columbus FBI agent who came to Bragg’s residence to interview him.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Todd A. Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the pleas entered today before U.S. District Judge Michael Watson.
According to court documents, Bragg transmitted through agency websites between June and July 2018 at least a dozen communications which contained threats to violently injure Rogers County, Oklahoma Sheriff Scott Walton and numerous other individuals in the state. On July 20, 2018, at the request of the FBI office in Oklahoma, an FBI agent in Columbus went to Bragg’s residence. Bragg came to the door, shouted profanities at the agent and told the agent “you have no authority here” before going back inside. Bragg came back to the door threatening to shoot and decapitate the agent. The agent drew his weapon in defense. Authorities came back with a search warrant and later arrested Bragg, who has been in custody since.
Bragg pleaded guilty to one count of transmitting a threat in interstate commerce and one count of influencing a federal official by threat. The plea agreement includes an agreed sentence of at least 12 months imprisonment, which would include time served, and three years of supervised release to include mental health treatment. Judge Watson will review the plea agreement and determine a date for sentencing.
U.S. Attorney Glassman commended the investigation of this case by the agencies participating in the FBI Joint Terrorism Task Force, and Assistant United States Attorney Jessica W. Knight, who is representing the United States.
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Coconut Creek Man Sentenced to Seven Years and Miramar Man Sentenced to More Than Four Years for Counterfeiting SchemeRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. today sentenced Wesley Anderson (26, Coconut Creek) to seven years in federal prison, and Christopher Stewart (20, Miramar) to four years and nine months in federal prison for their roles in a counterfeiting check scheme. The court also ordered Anderson and Stewart to pay restitution to financial institutions in the total amount of almost $80,000.
Anderson had pleaded guilty on May 13, 2019, and Stewart had pleaded guilty on April 15, 2019. On May 6, 2019, a third conspirator, Allen Griffin (23, Coral Springs), was sentenced to four years and nine months’ imprisonment in connection with this scheme.
According to court documents, during the summer of 2018, Anderson, Stewart, and Griffin created counterfeit checks and obtained access to individual bank accounts into which they deposited the counterfeit checks. The conspirators then withdrew the funds from the accounts before the fraud was detected. Anderson, Stewart, and Griffin deposited counterfeit checks totaling more than $370,000 in Orlando-area banks.
On August 3, 2018, Anderson and Griffin were arrested at a hotel in Orlando. They had blank check stock paper, a printer, and a laptop that they had used to create counterfeit checks, computerized images of signatures used on the counterfeit checks, and ATM cards that had been used in the scheme. All three individuals were also captured on bank surveillance video depositing counterfeit checks and making withdrawals from accounts where the counterfeit checks had recently been deposited.
This case was investigated by the United States Secret Service, with assistance from the Orange County Sherriff’s Office. It was prosecuted by Assistant United States Attorney Dana E. Hill.
Citizen of the Dominican Republic Pleads Guilty to Immigration ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that FREDDY ANTONIO MARTE-JEREZ, 58, a citizen of the Dominican Republic last residing in Danbury, pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to one count of reentry of a removed alien.
According to court documents and statements made in court, in 1998, Marte Jerez’s wife filed an I-130 Petition for an Alien Relative with the Immigration and Naturalization Service (“INS”) providing documentation that she was a U.S. citizen and that she and Marte Jerez were legally married. After the petition was approved, Marte Jerez filed an I-485 Application for Permanent Residence or to Adjust Status. This application was denied based on Marte Jerez’s failure to disclose a prior narcotics conviction in the State of Rhode Island. In November 2000, Marte Jerez appeared before an Immigration Judge in Hartford and was released on bond while awaiting a hearing date.
In October 2007, Marte Jerez was convicted in Danbury Superior Court for sale of illegal drugs. On March 3, 2010, following completion of his state sentence, Marte Jerez was deported to the Dominican Republic.
Marte Jerez illegally reentered the U.S. and was arrested while using the name “Antonio Nunez” in Danbury. In December 2015, Marte Jerez was convicted in Danbury Superior Court of burglary in the third degree. He was sentenced to three years of incarceration, execution suspended, and three years of probation. Based on his use of a false identity, his arrest and conviction did not become known to U.S. Immigration and Customs Enforcement (ICE).
On March 19, 2018, Marte Jerez, using a different identity, was arrested in Danbury for motor vehicle offenses. His true identity was subsequently discovered through a fingerprint comparison and ICE took him into custody following his release from a state court appearance on June 27, 2018. He has been detained since his arrest.
When he is sentenced, Marte Jerez faces a maximum term of imprisonment of 10 years for illegal reentry. A sentencing date is not scheduled.
This investigation is being conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement. The case is being prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Chula Vista Man Sentenced to 10 Years for Being Source of Fentanyl that Resulted in Non-Fatal Overdoses in AlpineRead the Press Release
Assistant U. S. Attorney Sherri Walker Hobson (619) 961-0287
NEWS RELEASE SUMMARY – July 22, 2019
SAN DIEGO – A Chula Vista man was sentenced today in federal court to 10 years in prison for distributing fentanyl that led to the non-fatal overdoses of five people in Alpine, some of whom were revived by first responders with Naloxone.
In sentencing Joel Rodriguez of Chula Vista, U.S. District Judge Anthony J. Battaglia said the crimes were “very very serious” and drugs, like fentanyl, are “highly addictive and destructive to the population.”
According to court records, Rodriguez admitted that he obtained fentanyl from Mexico and then delivered it to another person for distribution in San Diego. Rodriguez knew that the substance was fentanyl and reminded his distributors that the substance was dangerous. Eventually, Rodriguez’s fentanyl led to the accidental overdoses of five individuals in Alpine on or about December 7, 2017. The individuals, who believed that they were using cocaine, ended up in the hospital. Some were treated at the scene with Naloxone – a drug that reverses the depression of the central nervous system and respiratory system caused by opioids. During the search of Rodriguez’s residence, agents found several baggies of cocaine and fentanyl, cutting agents, digital scales, and pay-owe sheets documenting drug deliveries and payments.
Rodriguez also admitted that he drove a vehicle containing cocaine on May 17, 2017 from San Diego County to Riverside County to deliver the bulk cocaine to another person for further distribution, months prior to his distribution of fentanyl.
“Buyer beware! These people thought they were using cocaine, not deadly fentanyl,” said U.S. Attorney Robert Brewer. “This is a strong sentence for a dealer who came close to pushing his unwitting customers to the point of no return. Dealers are on notice: We have an unyielding commitment to identify fentanyl dealers in our community in order to save lives. And users: Don’t play Russian Roulette with your life.”
Brewer thanked prosecutor Sherri Walker Hobson, the San Diego Sheriff’s deputies and detectives and agents from Homeland Security Investigations and the Drug Enforcement Administration for their work on this investigation which led to Joel Rodriguez’s arrest within days of the non-fatal overdoses. Brewer also thanked the first responders who revived the overdose victims.
“Our thoughts go out to the friends and families of the victims of Mr. Joel Rodriguez’s selfish crimes and greed,” said Juan Munoz, Acting Special Agent in Charge of Homeland Security Investigations in San Diego. “It is impossible to quantify the extent of the harm done by Rodriguez, but holding him accountable will continue to prove that our agents are dedicated to identifying and putting a stop to those engaged in the illegal smuggling of contraband, such as fentanyl.”
“Mr. Rodriguez made the decision to risk the lives of others to make a quick buck,” said DEA Special Agent in Charge Karen Flowers. “Five people almost lost their lives from the drugs provided by Mr. Rodriguez and countless others were impacted by his decision to traffic cocaine. Now Mr. Rodriguez will pay for his poor decisions by losing his freedom for 10 years during the prime of his life. His sentence should serve as yet another reminder: If you deal drugs, there will be consequences that will cost you your freedom.”
DEFENDANT Criminal Case No. 18CR0164
Joel Rodriguez 30 Chula Vista, California
SUMMARY OF CHARGES
Count 1: Possession of Cocaine with Intent to Distribute, in violation of 21 U.S.C. §841
Maximum penalties: Ten-year mandatory minimum to life in prison; $1 million fine
Count 2: Conspiracy to Distribute Fentanyl, in violation of 21 U.S.C. §841 and 846
Maximum penalties: Twenty years in prison; $250,000 fine
AGENCIES
San Diego County Sheriff’s Department
Homeland Security Investigations
U.S. Drug Enforcement Administration
San Diego District Attorney’s Office
Chinese National Sentenced for Role in Money Laundering ConspiracyRead the Press Release
LEXINGTON, Ky. – On Friday, July 19, 2019, a Chinese national residing in Chino Hills, California, was sentenced by U.S. District Judge Danny C. Reeves for his involvement in a money laundering conspiracy operating in Fayette County and elsewhere. Fengqiang Zhang, 41, was sentenced to 48 months in federal prison and 36 months of supervised release for his role in laundering money that was proceeds of drug trafficking. Zhang also faces deportation to China as a result of his conviction.
Zhang previously admitted that, from October 2018 until December 2018, in Fayette County, he conspired with Nancy Garcia Zapata and others to launder drug proceeds. Garcia also pleaded guilty to the same money laundering conspiracy charge and was sentenced to 71 months and 36 months of supervised release.
The investigation, jointly conducted by the Drug Enforcement Administration and the Lexington Police Department, began in 2016. The early investigation focused on the drug trafficking activities of Garcia’s husband, Fernando Lara Salas, and resulted in the execution of a search warrant in July 2017 at the residence he shared with Garcia. Officers located and seized 6 kilograms of cocaine, more than 50 grams of methamphetamine, approximately $110,000 in U.S. currency, and a loaded firearm. Following a jury trial, Fernando Lara Salas was convicted of drug trafficking, firearms and immigration offenses and was sentenced to a term of 353 months.
By October 2018, only 3 months after Lara Salas was sentenced, investigators were focused on Nancy Garcia and the same Lexington residence. DEA agents seized nearly $400,000 in drug proceeds from Zhang and later observed Zhang meeting with Garcia at the residence. Zhang was stopped by police, who located approximately $150,000 in a duffle bag in his rental vehicle, which was proceeds Zhang received from Garcia. A search warrant was executed at the residence and approximately $272,000 in drug proceeds were seized. Both Zhang and Garcia admitted that all of the money seized from them by law enforcement during the investigation was proceeds of drug trafficking.
“We will continue to emphasize the importance of anti-money laundering efforts, especially related to drug trafficking investigations,” said United States Attorney Robert M. Duncan, Jr. “By disrupting the ability of a criminal organization to launder and move proceeds of illegal drug trafficking activities, law enforcement personnel are able to weaken that organization. In disrupting the flow of money, law enforcement also disrupts the flow of drugs. We commend the work of our law enforcement partners with DEA and the Lexington Police Department on this successful investigation and prosecution.”
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Darrell Christopher Evans, Special Agent in Charge, DEA Louisville, and Lawrence Weathers, Chief of Police, Lexington-Fayette County Division of Police, jointly made the announcement. The United States was represented by Assistant United States Attorney Todd Bradbury.
Charleston Man Sentenced for Gun CrimeRead the Press Release
CHARLESTON, W.Va. -- A Charleston man was sentenced today to a total of 44 months in prison for possession of a firearm by a prohibited person and violating his federal supervised release conditions, announced United States Attorney Mike Stuart. Antoine Brown was sentenced to 36 months in prison on the gun charge and received another 8 months in prison for violating the conditions of his federal supervised release. The Court ordered these two sentences to be served consecutively. The investigation was conducted by the Charleston Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
On December 16, 2018, Brown was driving a vehicle south on US 119 and was pulled over because an officer smelled burnt marijuana emanating from his vehicle at the intersection of US 119 and Oakwood Road. Brown moved a 9mm Taurus pistol from the center console of the vehicle and put it under a child’s car seat located in the back seat of the car. The firearm was loaded and operable. Brown’s child was seated in the backseat. Officers searched the vehicle and located the subject firearm. Brown is prohibiting from possessing firearms because he has previously been convicted of Involuntary Manslaughter and Distribution of Heroin.
United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorney Ryan A. Saunders handled the prosecution.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Broken Bow Man Pleads Guilty to Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Rance DeWayne Childs, age 36, of Broken Bow, Oklahoma, entered a guilty plea to Felon In Possession Of Firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleged that on or about May 5, 2019, within the Eastern District of Oklahoma, the Defendant, having been convicted of crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the Seminole Nation Lighthorse Police and the Bureau of Indian Affairs.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Special Assistant United States Attorney Courtney Jordan represented the United States.
Brockton Man Sentenced to Prison for Violation of Computer Fraud and Abuse ActRead the Press Release
BOSTON – A Brockton man was sentenced today in federal court in Boston in connection with the August 2018 computer intrusion of a Massachusetts company.
Colby Anderson, 26, was sentenced by U.S. District Court Judge William G. Young to four months in prison, four months of home confinement, and two years of supervised release. The Court deferred ruling on restitution, pending further briefing. In May 2019, Anderson pleaded guilty to a violation of the Computer Fraud and Abuse Act. Anderson was charged in October 2018 and released on conditions.
In July 2018, Anderson was terminated from his position as a Network Operations Center Technician at Blueport Wireless, a high speed internet access provider. Following his termination, Anderson used his former colleagues’ account login information to delete approximately 120 customer configuration profiles, causing widespread internet service issues at customer facilities.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement. Assistant U.S. Attorney Mackenzie A. Queenin of Lelling’s Cybercrimes Unit prosecuted the case.
Boulder Drug Dealer Sentenced to 8 Years in Federal Prison for Distributing Illegal Drugs and Carrying Firearm for Drug TraffickingRead the Press Release
DENVER – Joseph Meyer Platt, age 24, of Boulder, Colorado, was sentenced late last week by U.S. District Court Judge William J. Martinez to serve 96 months (8 years) in federal prison for possession of a controlled substance with intent to distribute and carrying a firearm during and in relation to a drug trafficking crime, announced U.S. Attorney Jason Dunn and ATF Denver Division Special Agent in Charge David Booth. Platt appeared at the hearing in custody and was remanded at its conclusion.
According to the stipulated facts contained in the plea agreement, on June 6, 2017 members of the Boulder County Narcotics Task Force conducted a search of Platt’s residence. It was determined that the defendant used the mail to distribute narcotics from his residence and then to receive payment. During the search, law enforcement recovered 567 grams of cocaine, 1161 grams of MDMA (Ecstasy), other narcotics, $9,721 in U.S. currency, a .22 caliber semi-automatic pistol, two 9 mm caliber semi-automatic pistols, a 12 gauge shotgun and 2,729 rounds of various types of ammunition.
“The defendant is a significant drug dealer,” said U.S. Attorney Jason Dunn. “Removing him and his drug house from Boulder is great win for the local community.”
“ATF and our law enforcement partners’ commitment to protecting our communities will never waver,” said ATF Denver Special Agent in Charge David Booth. “We will continue to combat drug trafficking and violent crime wherever found and with all resources at our disposal.”
This case was investigated by the ATF with substantial assistance from the Boulder County Narcotics Task Force. The defendant was prosecuted by Assistant U.S. Attorney Kurt Bohn.
Boone County Man Pleads Guilty to Distributing Methamphetamine and HeroinRead the Press Release
CHARLESTON, W.Va. – A man from Nellis, West Virginia, pled guilty to federal drug trafficking offenses, announced United States Attorney Mike Stuart. Russell Lee Gillenwater, 39, pled guilty to two counts of distributing methamphetamine and one count of distributing heroin and methamphetamine before United States District Judge Joseph R. Goodwin. Stuart commended the investigation conducted by the Boone County Sheriff’s Office, the West Virginia State Police, the U.S. 119 Drug and Violent Crime Task Force, and the Drug Enforcement Administration.
“Meth and heroin are being trafficked in every county in my District,” said United States Attorney Mike Stuart. “And in every county, we are working with our law enforcement partners to investigate and prosecute individuals like Gillenwater who are distributing these dangerous drugs.”
Based on information presented in public court records and hearings, Gillenwater distributed methamphetamine on three separate occasions and heroin on one occasion to undercover police informants at different locations in Boone County.
Gillenwater faces up to 60 years in federal prison when he is sentenced on October 17, 2019. Assistant United States Attorney Drew O. Inman is handling the prosecution.
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Bloods Gang Member Sentenced to 30 Years in Federal Prison After Advanced Ballistic Technology Ties Shell Casings at Murder Scenes to Defendant’s FirearmsRead the Press Release
DENVER – David Scott, age 28, of Denver, was sentenced late last week by Chief U.S. District Court Judge Philip A. Brimmer to serve 360 months (30 years) in federal prison for using firearms during crimes of violence, specifically two murders, announced U.S. Attorney Jason Dunn and ATF Denver Special Agent in Charge David Booth. Scott appeared at the sentencing hearing in custody, and was remanded at its conclusion.
Scott was identified as the individual who was responsible for multiple shootings, including 2 murders, in part because of ATF and Denver’s NIBIN ballistic technology, where spent bullet casing found at the scene are processed and matched to a specific gun. Law enforcement continue to investigate Scott to determine if he was involved in other gang related murders.
According to stipulated facts contained in Scott’s plea agreement, Scott is a member of the Park Hill Crenshaw Mafia Gangster (“CMG”) Bloods gang, which is a criminal organization whose members and associates engage in acts of violence, including murder, attempted murder, robbery, extortion, and narcotics distribution. Park Hill CMG Bloods gang members and associates use intimidation, violence, and threats of violence in order to preserve, expand, and protect their claimed territory, as well as to enhance the reputation of an individual member or associate, as well as the organization, within the community.
The Park Hill CMG Bloods have an ongoing feud with several Denver street gangs, including various sets of the Crips gang. As part of this feud, on November 23, 2014, the defendant, with other Park Hill CMG Bloods gang members, traveled to the Beach Nightclub where a large number of Crip gang members were anticipated to attend a concert. The defendant and fellow Park Hill CMG Bloods gang members went to the nightclub to initiate a conflict with Crip gang members. The defendant and other Park Hill CMG Bloods gang members possessed firearms in anticipation of this conflict. As Crip gang members left the nightclub, the defendant shot another gang member at close range, killing him. Once Scott fired his weapon, both Crip and Park Hill CMG Bloods gang members began firing at each other. Three additional people were shot in this firefight and law enforcement recovered thirty expended ammunition casings from the parking lot.
Bullet shells collected at the scene were processed through the ATF’s NIBIN (National Database of Digital Images Of Spent Bullets and Cartridge Cases) which matched up with Scott’s firearm. NIBIN is a national database of digital images of spent bullets and cartridge cases that were found at crime scenes or test-fired from confiscated weapons. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) manages the system and provides the equipment to crime labs around the country, including the Crime Gun Intelligence Center located within the Denver Crime Lab. A firearms examiner uses ballistic imaging to convert the spent rounds into two- or three-dimensional digital images that are uploaded into NIBIN.
On the evening of November 24, 2014 through the early morning hours of November 25, 2014, the defendant drove to various locations in the Denver metro area with a Crip gang member. They engaged in at least two street robberies that night. At one point, the men traveled to a motel where the defendant met with various Crip members. When the defendant left the motel, he drove the other man to a location to be dropped off. When the man exited the vehicle, the defendant followed him. Scott retrieved a firearm from his waistband and shot the man, killing him. Law enforcement recovered two expended firearm casings from the area around the dead man’s body. These shell casings came from the same firearm used by the defendant to kill the other man the day before.
“The defendant deserves every day he will serve in prison because of his callous disregard for human life combined with his life as a member of a violent criminal street gang,” said U.S. Attorney Jason Dunn. “Thanks to the ATF, our local law enforcement partners as well as prosecutors in the U.S. Attorney’s Office, the many victims of David Scott have found justice.”
“ATF and our law enforcement partners will use every resource available to protect our communities from violence,” said ATF Denver Special Agent in Charge David Booth. “These partnerships combined with NIBIN are an extremely effective tool to protect the public and fight violent crime.”
This case was investigated by the ATF with substantial assistance from the Denver Police Department and RAVEN (the Regional Anti-Violence Enforcement Network). The defendant was prosecuted by Assistant U.S. Attorney Celeste Rangel with assistance from Assistant U.S. Attorneys Jeremy Sibert, Rebecca Weber, and Emily Treaster.
Armed Methamphetamine Dealer Sentenced in Federal CourtRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that George Joseph Randall Collier, 40, of Theodore, Alabama, was sentenced in federal court on two charges, possession with intent to distribute methamphetamine and using, carrying, or possessing a firearm in furtherance of or in relation to a drug trafficking felony. Collier pled guilty to the charges in 2018.
United States District Court Judge Callie V. S. Granade imposed a sentence of 83 months imprisonment, consisting of 23 months on the drug count and 60 months consecutive on the gun count. Collier will serve a period of 6 years on supervised release following the completion of his custody sentence. He will undergo drug and alcohol abuse treatment and urine surveillance while he is under supervision. The judge did not impose a fine but ordered that Collier pay $200 in special mandatory assessments.
The case was investigated by the Mobile Police Department, the Mobile County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria A. Bedwell.
Ames Man Charged with Child Pornography OffensesRead the Press Release
DES MOINES, Iowa – Jona Shitaleni Paulus, age 33, of Ames, was charged by a grand jury on July 18, 2019, with one count of receipt of child pornography and one count of possession of child pornography. The Indictment alleges Paulus knowingly received and possessed child pornography on his cell phone in April of 2019.
The public is reminded that an Indictment is merely an accusation, and the defendant is presumed innocent unless and until he is proven guilty.
This case was investigated by the Department of Homeland Security with assistance from the Iowa State University Police Department. This matter is being prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Department of Justice’s Project Safe Child Initiative.
Akron man indicted for his role in a conspiracy in which he was to receive more than 80 pounds of methamphetamine, as well as firearms and marijuana chargesRead the Press Release
An Akron man was indicted in federal court for his role in a conspiracy in which he was to receive a shipment of more than 80 pounds of methamphetamine, as well as firearms and marijuana charges.
Patrick Anthony Foster, 48, was indicted on one count of conspiracy to possess with intent to distribute methamphetamine, one count of possession with intent to distribute methamphetamine, two counts of possession with intent to distribute marijuana, one count of being a felon in possession of firearms and one count of possession of firearms in furtherance of drug trafficking.
The six-count indictment was unsealed today upon Foster’s arrest.
Foster was stopped for a suspected traffic violation on June 14 in Akron and was found to have 11 ounces of methamphetamine, 23 pounds of marijuana, cash and a loaded 9 mm pistol, according to court documents.
A subsequent search of his home at 27 East Emerling Avenue in Akron resulted in the discovery of approximately 40 pounds of marijuana and a Norinco SKS 7.62 mm rifle and ammunition, according to court documents.
Foster is prohibited from having firearms because of a previous drug conviction, according to court documents.
"This defendant is alleged to have been waiting on a shipment of more than 80 pounds of methamphetamine, while also in possession of firearms and over 60 pounds of marijuana," U.S. Attorney Justin Herdman said. "Unfortunately, we see time and time again that drug dealers use firearms in the course of their trafficking activities. Law enforcement from across the country did an outstanding job working together to take this defendant and these dangerous drugs off the street."
This case was investigated by the Drug Enforcement Administration, Summit County Sheriff’s Office, Summit County Drug Unit, Akron Police Department, Ohio State Highway Patrol, Springfield Police Department, New Franklin Police Department, Stow Police Department, University of Akron Police Department, Copley Police Department, Summit County Prosecutor’s Office, Barberton Police Department, Reminderville Police Department, the Canadian County Sheriff’s Office in Oklahoma and the DEA’s Oklahoma City office. It is being prosecuted by by Assistant U.S. Attorney Christopher Joyce.
If convicted, the defendants’ sentences will be determined by the Court after reviewing factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Ada Woman Pleads Guilty to False Statement in Acquisition of A FirearmRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Reagan Sydney Clark, age 22, of Ada, Oklahoma, entered a guilty plea to False Statement In Acquisition Of A Firearm, in violation of Title 18, United States Code, Sections 922(a)(6) and 924(a)(1)(A), punishable by not more than 5 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleged that on or about November 30, 2018, in the Eastern District of Oklahoma, the defendant, in connection with the acquisition of a firearm, to wit: One (1) Walther, Model CCP, 9x19mm caliber semi-automatic pistol, serial number WK066579, from GUNRUNNERS, a licensed dealer of firearms within the meaning of Chapter 44, Title 18, United States Code, knowingly made a false and fictitious written statement to GUNRUNNERS, which statement was intended and likely to deceive GUNRUNNERS, as to a fact material to the lawfulness of such sale of the said firearm to the defendant under Chapter 44 of Title 18, in that the defendant represented she was the actual transferee/buyer of the firearm.
The charges arose from an investigation by the Ada Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Dean Burris represented the United States.
67-Year-Old Las Vegas Doctor Sentenced to Prison for Unlawfully Prescribing OpioidsRead the Press Release
LAS VEGAS, Nev. – A pain management doctor who practiced in Las Vegas was sentenced to 41 months in federal prison today to be followed by 3 years of supervised release for unlawfully prescribing addictive opioids Fentanyl, Hydrocodone, and Oxycodone outside the usual course of professional practice and not for a legitimate medical purpose.
United States Attorney Nicholas A. Trutanich for the District of Nevada, Assistant Special Agent in Charge Daniel Neill of the Drug Enforcement Administration, and Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Division made the announcement.
Dr. Steven A. Holper, M.D., 67, was sentenced by United States District Judge Jennifer A. Dorsey. Dr. Holper pleaded guilty in December 2018, to one count of distribution of a controlled substance.
“Doctors who betray their duty and the public’s trust for their own personal gain will be identified and prosecuted in Nevada,” said United States Attorney Trutanich. “This prosecution is part of our ongoing efforts to protect Nevadans from medical professionals who fuel the opioid epidemic. The U.S. Attorney’s Office and our partners share one goal: to curtail the opioid crisis.”
“A lot lives were impacted by Dr. Holper’s reckless behavior,” said Assistant Special Agent in Charge Neill. “This case highlights the impact that federal and state and local agencies have combatting the opioid epidemic in Las Vegas.”
“The accessibility of oxycodone, fentanyl and other deadly drugs are a threat to our communities,” said Special Agent in Charge Rouse. “Each and every day, the FBI and our partners in Nevada are working hard targeting distributors, who are consciously contributing to the appalling opioid crisis that is inflicting havoc in neighborhoods all over the state of Nevada.”
As part of his guilty plea, Dr. Holper admitted that from July 2015 to March 2016, he unlawfully prescribed Fentanyl, Oxycodone, and Hydrocodone to his patients outside the proper standard of care, and without a legitimate medical purpose. At least one patient that Dr. Holper admitted he distributed these drugs to passed away with a toxic level of fentanyl in the patient’s system.
Fentanyl, Hydrocodone, and Oxycodone are all classed as Schedule II controlled substances by the DEA, indicating that they have a high potential for abuse which may lead to severe psychological or physical dependence.
The case was investigated by the DEA, FBI, the Office of Inspector General of the U.S. Department of Health and Human Services, and the Henderson Police Department. Assistant United States Attorney Nadia Ahmed and Assistant Chief Kilby MacFadden from the Department of Justice Fraud Section prosecuted the case.
If you have a tip or information about illegal sales or distribution of prescription opioids by doctors and pharmacies, call the DEA at 1-877-RX-Abuse (792-2873) or contact the FBI at tips.fbi.gov.
The Opioid Fraud and Abuse Detection Unit is a program that utilizes data to help combat the devastating opioid crisis. In 2017, the Department of Justice funded a dedicated opioid prosecutor to the United States Attorney’s Office for the District of Nevada.
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31 Individuals Charged in Cigarette Smuggling OperationRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina announced today that on June 19, 2019, a federal grand jury sitting in the Eastern District of North Carolina returned a sealed, eight-count indictment charging 31 individuals and one business entity with a scheme to defraud the federal government, the State of North Carolina, the State of New York and the Commonwealth of Virginia, of millions of dollars in tax revenues from the sale of cigarettes.
This investigation, entitled Operation Southern Lights, is an effort to end large scale tax fraud and to hold these defendants accountable for the millions in lost tax revenue as the result of their illegal scheme. The individuals charged are:
- Justin Brent Freeman, 36
- Malek Hamoud Alsaidi, 40
- Ibrahim Ahmed Alsaidi, 43
- Sadek Dahan Shahbain, 38
- Ayed Yahya Ali Alsham, 37
- Alshami Yahya Ali Alshami, 35
- Mohamed Hafed Abdou, 39
- Mohamed E Ould El Bechir, 43
- Akram Ali Amer, 32
- Mohamed Yeslem Ould Izid Bih, 40
- Mohammed Saaid Darweesh, 30
- El Hassen Hamadi, 42
- Musheer Mohammed Hezam Al Naqeb, 21
- Ali Mohammed Mashli Al Qadhi, 41
- Mohamed Mounir, 39
- Aied Awad Shibli, 50
- Shibli Abu Issa Shibli, 51
- Manar Mohammed Talal-Mustafa, 40
- Mohammed Nael Mahmou Khalayfa, 28
- Saleh Mohammed Abdeljawad, 39
- Kaid Mohamed Addailam, 32
- Amr Mousa Alhalemi, 22
- Ahmed Khalayfa, 21
- Rawhi Abdel Jabbar Khams Awad, 62
- Ali Aied Shibli, 26
- Amchad Rawhi Khamis Awad, 31
- Wachdi Rawchi Khamis Awad, 33
- Abdallahi Mohamed Elhafedh, 43
- Ahmed Elhoussein, 54
- Dedde Cheikh, 39
- Arafat A. I. Abuhammoud, 34
In Count One, the grand jury alleges that the 31 individuals and the one business entity listed in the indictment, had been engaged in a conspiracy, beginning in 2018 and continuing until at least the time the indictment was returned, to ship, transport, receive, possess, sell, distribute and purchase cigarettes, in quantities exceeding 10,000 cigarettes (as required by the relevant statute), which bore no evidence of the payment of applicable State or local cigarette taxes in the state and locality where they were found. The object of the conspiracy was to profit from the purchase of cigarettes with cash in North Carolina, drive those cigarettes to the northeast, and sell them without paying the applicable sales tax. This is all alleged to be in violation of Title 18, United States Code, Section 2342 (a) (which prohibits the trafficking in contraband cigarettes and smokeless tobacco) and Title 18, United States Code, Section 371, the general conspiracy statute.
It is alleged in the indictment that members of the conspiracy would repeatedly purchase large quantities of cigarettes from Justin Brent Freeman, age 37, of Hope Mills, North Carolina, through a business he operated named Freeco, Inc. in Fayetteville, North Carolina, as well as from other cigarette wholesalers in Fayetteville, Raleigh and Goldsboro, and then transport those qualities of cigarettes to storage locations for future shipment to New York City. After purchasing the cigarettes from Freeman and Freeco, Inc., or from one of the other retailers, members of the conspiracy would then prepare for transporting the cigarettes to the Northeast by using a full size van or rental truck and cross into the Commonwealth of Virginia and travel to either Richmond or Alexandria. In Virginia, the cigarettes would be transferred to another member of the conspiracy who would continue the transportation to Syracuse, New York. There, additional members of the conspiracy would transfer the cigarettes to an as yet unknown individual for transportation and distribution in the New York City area.
Counts Two through Seven allege six specific instances where the individual named in those counts (and who were part of the conspiracy charged in Count One) knowingly shipped, transported, received and possessed contraband cigarettes (in amounts greater than 10,000) which bore no evidence of the payment of applicable state cigarette taxes in the Commonwealth of Virginia. Each of these instances is alleged to be in violation of Title 18, United States Code, Section 2342(a), as well.
Last, Count Eight alleges that all 32 defendants – the 31 individuals and Freeco, Inc. – were engaged in a conspiracy to launder money in violation of Title 18, United States Code, Section 1956(h). In this count, the grand jury alleges that members of the conspiracy (a) conducted and attempted to conduct financial transaction affecting interstate commerce which involved the proceeds of specified unlawful activity, that is, cigarette trafficking, with the intent to further the goals of that crime, and that they knew that the property involved in the crime was in fact the proceeds of some form of unlawful activity; and (b) that, again, while they conducted or attempted to conduct the specified unlawful activity – again, cigarette trafficking – that the transactions were designed in whole or in part to conceal and disguise the nature, location, source, ownership and control of the proceeds of the unlawful activity. So, in sum, the money laundering conspiracy count alleges that the members of the conspiracy were trying to either further the goals of the crime or to conceal the crime by using the proceeds of the crime in some way, or do both those things.
If convicted of Count One, the general conspiracy to traffic in contraband cigarettes, each defendant faces up to five years in federal prison and fines of up to $250,000 or both; if convicted of Counts Two through Seven, each defendant named therein faces up to five years in federal prison and fines of up to $250,000, or twice the gain obtained, whichever is greater, or both; and, if the defendants are convicted of money laundering as alleged in Count Eight, they each face up to 20 years imprisonment, a $500,000 fine or twice the value of the property involved in the transaction, whichever is greater, or both.
In addition, the grand jury included a forfeiture notice in the indictment. That section of the indictment provides notice to each defendant that the items of property listed in that notice, and any other property which is the proceeds of or involved in the crime, is forfeitable to the United States. The forfeiture notice conservatively calculates the gross proceeds of the crimes alleged in the indictment at $12,322.943 and designates that amount as forfeitable to the United States as well.
The charges and allegations contained in the Indictment are merely accusations. An Indictment is a formal written accusation originating with the United States Attorney and issued by a grand jury against a party charged with a crime. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by Homeland Security Investigations, Cumberland County Sheriff’s Office, United States Marshals Service, Robseson County Sheriff’s Office, and the Johnston County Sheriff’s Office.
Friday 19 July 2019
Wood County man sentenced to more than nine years in prison for throwing bottles of chemicals at law enforcement officersRead the Press Release
A Wood County man was sentenced to more than nine years in prison for a chase in which he lit and threw bottles of chemicals at law enforcement officers.
William B. Milliron, 47, of Bloomdale, was sentenced to 110 months in federal prison. He previously pleaded guilty to charges including assault of a federal officer, being a felon in possession of firearms and drug charges.
"There will be serious consequences for anyone who assaults our police officers or federal agents," U.S. Attorney Justin E. Herdman said.
U.S. Marshals were searching for Milliron near Bowling Green on Feb. 24, 2017, because of a probation violation in Florida. They spotted Milliron and attempted to pull over Milliron, who fled. Marshals pursued and officers from the North Baltimore Police Department joined the chase, according to court documents.
Milliron began throwing bottles containing unknown substances at the pursuing cars, and one of the bottles exploded on the front end and windshield of the police vehicle, according to court documents.
The pursuit continued into Fostoria and then Findlay, when Milliron’s vehicle went off the road and crashed. Milliron was arrested and had 13 rounds of ammunition in his pants pocket, according to court documents.
The substance in the bottles was found to be a combination of chemicals used to manufacture methamphetamine. The chemicals are highly volatile, toxic and combustible. The bottles had paper wicks which were charred from being lit on fire, according to court documents.
Milliron has multiple felony convictions in Florida for crimes including grand theft of firearms, resisting an officer with violence, battery on an officer, manufacture of methamphetamine and other crimes, according to court documents.
The investigating agency in this case is the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Federal Bureau of Investigation and the U.S. Marshals Service. The case is being prosecuted by Assistant U.S. Attorney Thomas P. Weldon
Williamson County Man Charged with Federal Drug OffenseRead the Press Release
Adam R. Walker, 34, of Herrin, Illinois, has been charged by indictment with unlawfully possessing
over 50 grams of methamphetamine with the intent to distribute, U.S. Attorney Steven
D. Weinhoeft, announced today. The indictment alleges that the offense occurred on May 1, 2019, in
Williamson County.An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be
innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.Earlier today, Walker made his initial appearance in federal district court and pleaded not guilty.
He was ordered held without bond pending a September 16, 2019 jury trial. If convicted of the
offense, Walker faces a maximum possible penalty of 5-40 years imprisonment, 4 years supervised
release, and a $5 million fine.
The ongoing investigation is being conducted by the Marion Police Department.
Williams County Man Sentenced to Nearly 20 Years in Prison for Federal Drug OffenseRead the Press Release
Timothy S. (“Timmy”) Smith, 41, of Johnston City, Illinois, has been sentenced to a term of 235
months in federal prison for conspiring to distribute methamphetamine, U.S. Attorney Steven D.
Weinhoeft announced today. Smith pleaded guilty to a one-count indictment earlier this year.Evidence at the plea and sentencing hearings established that from January to September, 2018,
Smith was involved with numerous others in the distribution of methamphetamine in Williamson and
Franklin Counties. At sentencing, the judge found Smith responsible for distributing 2 kilograms of
ice (methamphetamine with a purity level of at least 80%). Because of Smith’s extensive criminal
history, he was classified as a career offender.Smith’s sentence includes four years of supervised release.
The investigation was conducted by the Southern Illinois Enforcement Group. The Herrin Police
Department, Johnston City Police Department, and Williamson County Sheriff’s Office
assisted in the investigation.
William D. Hyslop Assumes Office as the United States Attorney for the Eastern District of WashingtonRead the Press Release
Today, William D. Hyslop was sworn-in as the United States Attorney for the Eastern District of Washington. William Hyslop was nominated by President Donald Trump in May 2019 and confirmed by the United States Senate on June 27, 2019.
Bill Hyslop joined Lukins & Annis, P.S. in 1980, and became a Principal in the firm in 1984. He served as the United States Attorney for the Eastern District of Washington from 1991-1993. He rejoined Lukins & Annis, P.S. in 1993, and has been serving as Principal in the firm in its Litigation Department. He has also served as an arbitrator for the American Arbitration Association. Bill Hyslop graduated from Washington State University in 1973, received a Master’s Degree from the University of Washington in 1977, and earned his Law Degree from the Gonzaga University School of Law in 1980.
He is admitted to practice in the United States District Court for the Eastern District of Washington, for the Western District of Washington, and for the District of Idaho; in the Ninth Circuit for the U.S. Court of Appeals; and before the U.S. Supreme Court. He is also admitted to practice in the state courts in Washington and Idaho. In addition, he has been active in a number of professional and civic roles, and has received honors including:
President, Washington State Bar Association, 2015 – 2016
Washington State Bar Association President’s Award, 2006
Member, Board of Governors of the Washington State Bar Association Lawyer Representative, U.S. District Court for the Eastern District of Washington
to the Ninth Circuit Judicial Conference
President, Federal Bar Association of the Eastern District of Washington
Trustee, Legal Foundation of Washington
President, Spokane County Bar Association
Spokane County Bar Association Smithmoore P. Myers Professionalism Award, 2008
Co-Chair, Washington State Bar Association Committee on Public Defense
Washington Supreme Court Task Force on Equal Justice Funding
Vice Chair, City of Spokane Use of Force Commission
Associated Builders & Contractors Chair of Inland Pacific Chapter
Associated General Contractors, Inland Northwest Chapter, Director
President, Washington State University Alumni Association
Washington State University Alumni Achievement Award, 2002
Washington State University President’s Award for Leadership and Service, 2001
Co-Chair of Citizens for Spokane’s Schools and successful Bond Issue
Campaigns to Construct New Schools
Co-Chair of Community Campaign for Construction of Spokane’s New Veteran’s
Memorial Arena
Assistant Scoutmaster and Trooper Committee Chair, Boy Scouts of America
Board Member, Morning Star Boys’ Ranch
President, Morning Star Boys’ Ranch Foundation
Member, Rotary Club of Spokane
United States Attorney, William D. Hyslop said, “It is with great honor and humility that I assume this office for a second term. I look forward to supporting our justice system, working with law enforcement at all levels, and to maintaining and preserving the fine reputation this office has for upholding the law and administering equal justice for all.”
White River Woman Charged with Conspiracy to Distribute Methamphetamine and Possession of a Firearm by a FelonRead the Press Release
United States Attorney Ron Parsons announced that a White River, South Dakota, woman has been indicted by a federal grand jury for Conspiracy to Distribute Methamphetamine and Possession of a Firearm by a Felon.
Andrea Ruth Barrera, age 32, was indicted on July 16, 2019. She appeared before U.S. Magistrate Judge Mark A. Moreno on July 19, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 40 years in federal prison and/or a $5,000,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that at some time before September 1, 2018, and continuing until July 16, 2019, Barrera, knowingly and intentionally, combined, conspired, confederated, and agreed with others to knowingly and intentionally distribute and possess with intent to distribute 50 grams or more of methamphetamine. Further, a traffic stop was conducted on March 5, 2019, wherein over $12,000 in U.S. currency, forty-one rounds of .380 AUTO caliber ammunition, and a .380 AUTO caliber, semi-automatic pistol were located in a vehicle with Barrera. The Indictment alleges that Barrera knowingly possessed the pistol while being a convicted felon.
The charges are merely accusations and Barrera is presumed innocent until and unless proven guilty.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Barrera was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Virginia Businessman Pleads Guilty to $5 Million Employment Tax Fraud and Illegal Firearm PossessionRead the Press Release
A Dulles, Virginia, equipment rental business owner pleaded guilty today to employment tax fraud and illegally possessing a firearm, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and United States Attorney G. Zachary Terwilliger for the Eastern District of Virginia.
According to court documents, from 2013 through 2018, Lawrence Robert Gazdick Jr. operated his business under multiple names, including National Technology Rentals, NTL Technology Leasing Services, and AV Rental Solutions. During this time, Gazdick withheld payroll taxes from his employees’ paychecks, but did not file payroll tax returns and did not pay the withheld funds to the Internal Revenue Service (IRS). In total, Gazdick caused a loss to the IRS of approximately $5.35 million. Additionally, Gazdick admitted to possessing a firearm recovered from his business office, despite the fact he was previously convicted of a felony.
United States District Court Judge Anthony J. Trenga scheduled Gazdick’s sentencing for Oct. 18, 2019. At sentencing, Gazdick faces a maximum of five years in prison for failing to pay over payroll taxes and a maximum of ten years in prison for the firearm offense. He also faces monetary penalties and a term of supervised release. As part of his plea agreement, Gazdick has agreed to pay the IRS full restitution.
Principal Deputy Assistant Attorney General Zuckerman and United States Attorney Terwilliger thanked special agents of IRS-Criminal Investigation, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, who investigated the case, and Assistant United States Attorney Jamar K. Walker and Tax Division Trial Attorney Kimberly M. Shartar, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Vincent Esposito Sentenced in Manhattan Federal Court to 24 Months in Prison and Forfeiture of $3.8 Million for Racketeering ConspiracyRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that VINCENT ESPOSITO was sentenced today to 24 months in prison by U.S. District Judge Victor Marrero for conspiring to commit racketeering offenses with members and associates of the Genovese Crime Family of La Cosa Nostra. Judge Marrero also imposed financial penalties, including approximately $3.8 million in forfeiture, a $20,000 fine, and restitution to be determined. ESPOSITO previously pled guilty on April 10, 2019, before U.S. Magistrate Judge Sarah Netburn.
U.S. Attorney Geoffrey S. Berman said: “By his own admission, for more than a decade Vincent Esposito made millions with members of the Genovese Crime Family by extorting payments, demanding kickbacks, committing fraud, and instilling fear. Today Esposito has been sentenced to prison for racketeering conspiracy.”
According to the Indictment and statements made during public court proceedings:
La Cosa Nostra, also known as the “Mob” or the “Mafia,” operates through entities known as “Families.” One of the Families operating in the New York City area is the Genovese Crime Family. For years, continuing until 2017, ESPOSITO conspired with other members and associates of the Genovese Crime Family to commit a wide range of crimes to enrich themselves, including multiple acts of extortion, honest services fraud, and bribery. Among other things, ESPOSITO directed the long-running extortion of a union official (“Official-1”) for annual tribute payments of more than over $10,000, and had a number of lower-ranking members of the enterprise collect money and convey threats to Official-1 on Esposito’s behalf. In another extortion scheme, ESPOSITO’s co-conspirators extorted a different union official (“Official-2”) and a financial adviser (the “Adviser”) for a cut of commissions made from union investments.
At the time of ESPOSITO’s arrest, the Federal Bureau of Investigation (“FBI”) executed a search warrant on his home and seized more than $3.8 million in U.S. currency hidden throughout the residence, along with an unregistered handgun, ammunition, brass knuckles, and lists of made members of the Genovese Crime Family. Under the terms of his guilty plea, ESPOSITO agreed to forfeit the more than $3.8 million seized by the FBI as criminal proceeds resulting from the offense.
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In addition to the prison term, ESPOSITO, 51, of New York, NY, was sentenced to three years of supervised release, and was ordered to forfeit $3,816,685.59 and to pay a fine of $20,000.
Mr. Berman praised the outstanding investigative work of the FBI, the U.S. Department of Labor’s Office of Inspector General and Office of Labor-Management Standards, the New York City Police Department, and the Special Agents of the United States Attorney’s Office for the Southern District of New York.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Kimberly J. Ravener, Jared Lenow, and Jason M. Swergold are in charge of the prosecution.
United States Sues Business and Former Owner for Contaminating Groundwater at East Fishkill Superfund SiteRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Peter D. Lopez, Regional Administrator of the U.S. Environmental Protection Agency (“EPA”), announced today that the United States has filed and simultaneously entered into two consent decrees settling a civil lawsuit against HOPEWELL PRECISION, INC. (“HOPEWELL”) and JOHN B. BUDD (collectively, the “Defendants”). The lawsuit, brought pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”) – commonly known as the Superfund statute – seeks to collect costs that EPA has incurred since March 2003 in connection with its cleanup of trichloroethene and other hazardous substances at the HOPEWELL Precision Superfund Site (the “Site”) in the Town of East Fishkill, Dutchess County, New York. The two consent decrees (one against each Defendant) provide for a combined payment of $1,247,700 by the Defendants.
U.S. Attorney Geoffrey S. Berman said: “Polluters must pay for the costs they have imposed on the community. Together, these defendants released toxic chemicals into the environment, which then contaminated the nearby groundwater and adversely affected the surrounding neighborhoods. Today’s lawsuit and consent decrees demonstrate that we will hold polluters responsible for their conduct.”
Regional Administrator Peter D. Lopez said: “The Superfund program operates on the principle that polluters pay for cleanups, and this settlement allows EPA to recover some of the taxpayer money that was spent at this site to address the contamination. Defendants’ actions led directly to contamination of groundwater, which migrated to people’s wells and caused hazardous vapors to seep into their homes. EPA stepped in and took the necessary actions to protect residents in the area, initially by installing treatment systems at homes, and now we are working toward a permanent remedy through the creation and extension of a new public water supply system in the community. This settlement, however, reimburses only a portion of the money EPA is spending at the site because of the limitations of the Defendants’ financial resources.”
As alleged in the complaint filed today in federal court, since 1972, HOPEWELL has been engaged in the business of custom sheet metal and machining fabrication at two properties that, together with the surrounding area into which contamination has migrated, make up the Site. BUDD owns one of the two properties and was the president and sole shareholder of HOPEWELL from 1972 until 1985, as well as the 80 percent owner from 1985 until 1991. In connection with its operations, until approximately 1998, HOPEWELL used chemical solvents, including trichloroethene (“TCE”) and 1,1,1-trichloroethane (“1,1,1-TCA”), to clean and degrease machine parts, generating a hazardous solvent waste that was at times disposed into the ground behind the facility. Additionally, during certain years, HOPEWELL employees poured paints and other chemicals into the ground behind the facility. As a result of these operations, solvents including TCE and 1,1,1-TCA were released into the environment, including the structures and soils at the HOPEWELL properties, and they leached into the groundwater and migrated beyond the properties, affecting drinking wells and homes in an area extending approximately one-and-a-half miles from the properties. EPA has incurred millions of dollars of costs in connection with cleaning up the Site. Work continues at the Site, including restoration of the contaminated groundwater aquifer and construction of an alternative water supply to serve properties with private drinking water wells that have been or may be affected by the groundwater contamination.
In the consent decrees filed today, the Defendants admit and accept responsibility for the following:
- In connection with its operations, until 1998, HOPEWELL used a vapor degreasing machine to clean and degrease parts, and, until at least 1991, used TCE and 1,1,1-TCA in that machine.
- As a result of HOPEWELL’s operations while BUDD was its owner and president, solvents including TCE and 1,1,1 TCA were released into the environment, including the structures and soils at the HOPEWELL properties.
- Contamination from the HOPEWELL properties has migrated beyond the properties into the area’s groundwater, contaminating approximately 66 private drinking water wells in the neighborhood as well as ponds in the path of the contaminated groundwater.
Pursuant to the consent decrees, the Defendants will pay a total of $1,247,700 in costs incurred by EPA, consisting of $963,750 to be paid by BUDD and $283,950 to be paid by HOPEWELL. These settlement amounts were based on a financial analysis of what the Defendants were capable of paying.
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The consent decrees will be lodged with the District Court for a period of at least 30 days before they are submitted for the Court’s approval, to provide public notice and to afford members of the public the opportunity to comment on the consent decrees.
This case is being handled by the Environmental Protection Unit of the Office’s Civil Division. Assistant U.S. Attorneys Dominika Tarczynska and Rachael Doud are in charge of the case.
Two Springfield Men Plead Guilty to Roles in Large-Scale Heroin Trafficking OrganizationRead the Press Release
BOSTON – Two Springfield men pleaded guilty in federal court in Springfield to their roles in a large-scale heroin trafficking organization.
William Brantley, 48, pleaded guilty yesterday to conspiracy to distribute and possess with intent to distribute more than one kilogram of heroin. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Oct. 10, 2019.
Mirelvy Vasquez, 29, pleaded guilty to conspiracy to distribute and possession with intent to distribute heroin. Judge Mastroianni scheduled sentencing for Nov. 21, 2019. Brantley, Vasquez and 16 co-defendants were indicted on heroin conspiracy charges in August 2017.
Vasquez and Brantley purchased large amounts of heroin, which they then distributed to various retail-level dealers in the Springfield area, from Alberto Marte, the leader of the Springfield-based drug trafficking organization, which consisted of at least 17 members. Marte had direct contact with heroin supply sources in the Dominican Republic. On a monthly basis, members of the organization transported between eight and 20 kilograms of heroin to the Springfield area.
Brantley admitted to purchasing 300 packs - or 30,000 doses - of heroin from Marte on a number of occasions from July 2016 to September 2016. Vasquez admitted to purchasing 300 grams of heroin from Marte on various occasions beginning in January 2016 and continuing through September 2016. Vasquez then repackaged his purchases into dosage units for further distribution.
Marte and five other co-conspirators have pleaded guilty and are awaiting sentencing. The remaining defendants have pleaded not guilty.
The charge of conspiracy to distribute and possess with intent to distribute more than one kilogram of heroin provides for a mandatory minimum sentence of 10 years and up to life in prison, at least 10 years of supervised release and a fine of $20 million. The charge of conspiracy to distribute and possess with the intent to distribute heroin provides for a sentence of no greater than 20 years in prison, at least three years of supervised release and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Hampden County District Attorney Anthony D. Gulluni; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Acting Springfield Police Commissioner Cheryl Clapprood; Chicopee Police Chief William Jebb; Holyoke Police Chief Manny Febo; and West Springfield Police Chief Ronald Campurciani made the announcement today. Assistant U.S. Attorney Neil Desroches of Lelling’s Springfield Branch Office is prosecuting the cases.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Trial Date Set for Decatur Man Charged with Child Sexual Exploitation and Child Pornography OffensesRead the Press Release
URBANA, Ill. – An initial trial date in September has been scheduled for a Decatur, Ill., man, Emmett J. Rogers, 47, who has been arrested and indicted on federal child sexual exploitation and child pornography charges. Rogers, of the 400 block of South 22nd Street, appeared in federal court on July 18, in Urbana for arraignment.
The indictment alleges that in October 2018, Rogers exploited a minor to engage in sexually explicit conduct to produce images of the conduct. The indictment further alleges that on four occasions in October and November 2018, Rogers transported child pornography via computer and possessed child pornography in June 2019.
Rogers was arrested on June 11, 2019, and charged by criminal complaint. According to the affidavit filed in support of the complaint, Rogers was identified through cybertips sent by Google to the National Center for Missing and Exploited Children.
If convicted of the offense of child sexual exploitation, Rogers faces up to 50 years in prison; for each count of transportation of child pornography (four counts) the maximum penalty is 40 years on prison; and, for possession of child pornography, the maximum penalty is 20 years in prison. Each of the six counts includes a fine of up to $250,000.
During Rogers’ initial court appearance on June 11, U.S. Magistrate Judge Eric I. Long ordered that Rogers remain in the custody of the U.S. Marshals Service.
The case is being prosecuted by Assistant U.S. Attorney Elly M. Peirson. The charges are the result of an investigation by the Decatur Police Department; the Illinois Attorney General’s Office Internet Crimes Against Children Task Force; and the U.S. Immigration and Customs Enforcement, Homeland Security Investigations.
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 the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Trial Date Scheduled for Former WIU Student Indicted for Alleged Amtrak Ticket SchemeRead the Press Release
ROCK ISLAND, Ill. – A September trial date has been scheduled for a former student of Western Illinois University indicted on charges that he engaged in a two-year scheme to defraud Amtrak. The indictment charges Ryan Taylor Minter, 23, of Calumet City, Ill., with using stolen credit card information to purchase Amtrak tickets online. Minter then allegedly sold the tickets to students at a discount and pocketed the money.
Central District of Illinois U.S. Attorney John Milhiser and Kevin Winters, Amtrak Inspector General, announced the indictment which was returned by a federal grand jury in Peoria. The indictment had remained sealed since it was returned by the grand jury on June 19, 2019, pending Minter’s arrest and arraignment. Minter was arrested on July 1 in Chicago; he appeared in federal court in Davenport, Iowa, on July 16, for arraignment before Chief U.S. District Judge Sara Darrow. He remains on bond with conditions. Judge Darrow scheduled trial for Minter on Sept. 23.
The indictment alleges that from September 2016 to November 2018, Minter acquired stolen credit card account information which he used to purchase Amtrak tickets for travel between Macomb, Ill., and Chicago. Minter allegedly used Amtrak’s mobile application and website to purchase the tickets and then advertised them at a discount on social media sites frequented by students. Students paid Minter for the discounted ticket using an online account. Minter then forwarded the image of the purchased ticket to the student to present to conductors upon boarding for travel between Macomb and Chicago. In the indictment, the government is seeking $15,492 in proceeds of the scheme, including $6,550 in cash previously seized from Minter.
The charges are the result of investigation by Amtrak’s Office of Inspector General, Amtrak Police, and the Western Illinois University Police Departments. The government is represented by Assistant U.S. Attorney Don Allegro, Rock Island Division, in the prosecution.
If convicted, the maximum statutory penalty for each of the five counts of wire fraud charged is up to 20 years in prison.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
Three More Charged with Internet Cafe Robberies Including One that Resulted in Deaths of OwnersRead the Press Release
COLUMBUS, Ohio – Three more Columbus men have been charged in a case involving the murder of a husband and wife in an internet café.
Chris A. King, 24, Justice B. Stringer, 24, and Brisco Dawkins, 50, were indicted by a federal grand jury on July 18.
Dezhan Townsend, 20, and Desjuan Harris, 24, were previously charged by federal criminal complaint and are included in the indictment as well.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Todd A. Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Interim Columbus Police Chief Thomas Quinlan and Franklin County Prosecuting Attorney Ron O’Brien announced the charges unsealed today after the defendants appeared in federal court.
According to court documents, on January 20, three defendants robbed Players Paradise on East Broad Street at gunpoint. Townsend, Stringer and King allegedly murdered security guard Joseph Arrington and then his wife, employee Karen Arrington.
An affidavit details that defendants entered the café around 4am on January 20 and positioned themselves near the office door. One person sat at a game as if he was playing it. When Karen Arrington attempted to enter the office, the defendants, armed with handguns, immediately confronted armed security guard Joseph Arrington.
All five men face charges of robbery.
Townsend, Stringer and King are charged with two counts of murder. King is also charged with committing murder with the intent to prevent a witness from providing information to law enforcement.
Townsend, Harris, Stinger and Dawkins are also charged with brandishing a firearm during a crime of violence.
Columbus SWAT officers arrested Townsend and Harris on Wednesday, July 3. They arrested Dawkins and Stringer today. The new charges were unsealed today after Dawkins and Stringer appeared before U.S. Magistrate Judge Chelsey M. Vascura, who ordered them held without bond.
King remains at large. If you have any information about his whereabouts, please contact the Columbus Division of Police at 614-645-4545.
U.S. Attorney Glassman commended the investigation of this case by the FBI and Columbus Police, as well as Assistant United States Attorneys David M. DeVillers and Kevin Kelley, and Special Assistant U.S. Attorney James Lowe with the Franklin County Prosecuting Attorney’s Office, who are representing the United States.
Criminal complaints and indictments merely contain allegations, and the defendants are presumed innocent unless proven guilty in a court of law.
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Three Members of California-Based White Supremacist Group Sentenced on Riots Charges Related to August 2017 “Unite the Right” Rally in CharlottesvilleRead the Press Release
Charlottesville, VIRGINIA – Benjamin Daley, Michael Miselis, and Thomas Gillen, members of the white-supremacist organization formerly known as the Rise Above Movement (RAM), were sentenced today in U.S. District Court in Charlottesville for violence they committed as part of their conspiracy to riot, including at the August 2017 Unite the Riot Rally in Charlottesville, and other alleged political rallies in California. The announcement was made by United States Attorney Thomas T. Cullen, Special Agent in Charge David W. Archey of the FBI’s Richmond Division, and Colonel Gary T. Settle of the Virginia State Police.
Daley, 26, of Torrance, Calif., was sentenced today to 37 months in prison. Gillen, 25, of Redondo Beach, was sentenced to 33 months in prison. Miselis, 30, of Lawndale, Calif., was sentenced to 27 months in prison. A fourth defendant, Cole Evan White, will be sentenced at a future date. All four defendants previously pleaded guilty to one count of conspiracy to riot.
“These defendants, motivated by hateful ideology, incited and committed acts of violence in Charlottesville, as well at other purported political rallies in California,” U.S. Attorney Cullen stated today. “They were not interested in peaceful protest or lawful First Amendment expression; instead, they intended to provoke and engage in street battles with those that they perceived as their enemies. I am grateful for the diligence and hard work of the FBI and Virginia State Police in bringing these violent white supremacists to justice.”
“The sentences imposed today demonstrate the U.S. Government’s intolerance of the use of violence, by anyone, to infringe upon the right of others to assemble peacefully,” Special Agent in Charge Archey of the FBI said today. “The FBI applauds today’s sentences and will continue to aggressively investigate allegations of such activity with its law enforcement partners. We are grateful for the efforts and partnership of the Office of the U.S. Attorney and the Virginia State Police in this investigation.”
“Thanks to the concerted and dedicated efforts of local, state and federal law enforcement and the U.S. Attorney's Office of the Western District of Virginia, justice has been served this week for multiple individuals who perpetrated the violence and extreme hate witnessed during the events of August 12, 2017 in Charlottesville,” said Colonel Gary T. Settle, Virginia State Police Superintendent. “Every one of their sentences should stand as evidence that Virginia has zero tolerance for such criminal activity.”
According to court documents, Daley, Gillen, and Miselis, were members of RAM, a now-defunct, California-based, combat-ready, militant group that represented itself as part of the new nationalist and white supremacy movement. RAM openly identified as “alt-right” and “nationalist” and its members and associates frequently posted photographs and videos online of themselves engaging in physical training and mixed martial arts street-fighting techniques, along with messages and propaganda related to their alt-right, anti-Semitic, and white-supremacist views. RAM members and associates espoused and committed acts of violence against those who they believed held opposing political views.
From March 2017 to August 2017, RAM and its members, including Daley, Gillen, and Miselis, traveled to multiple political rallies and organized demonstrations in Virginia and California where they prepared to, and engaged in, acts of violence. RAM regularly held hand-to-hand and other combat training for members and associates to prepare to engage in violent confrontations with protestors and other individuals at purported political rallies. They attended these rallies with the intention of provoking physical conflict with counter-protestors, which they believed would justify their use of force against the counter-protestors and shield them from prosecution for their acts of violence. Daley, Gillen, and Miselis attended several such training events and rallies.
On March 25, 2017, Daley, Gillen, and Miselis attended a political rally in Huntington Beach, Calif., with several RAM members. At that event, several RAM members pursued and assaulted groups of protestors and other individuals. Following the rally, photographs depicting RAM members assaulting protestors and other individuals were covered on local news stations and on the “front page” of various Neo-Nazi and white-supremacist websites. RAM members celebrated this coverage and used the internet to post statements, photographs, and videos of the assaults committed by RAM members at this rally to recruit members to engage in violent confrontations at future events.
On April 15, 2017, Daley, Gillen, Miselis, and other RAM members attended a rally in Berkeley, Calif. The defendants and other RAM members were dressed in gray clothing, goggles, and black scarfs or masks to cover the lower half of their faces. Throughout the day, there were violent clashes between some rally attendees and individuals protesting the rally. At one point, RAM members, including Daley and Miselis, crossed a barrier separating the attendees and the protestors, and assaulted protestors and other individuals.
In August 2017, Daley, Gillen, and Miselis planned to travel to Charlottesville to attend the Unite the Right Rally. At the time of their travel, the defendants expected the event would become a riot and that their experience in riots at Huntington Beach and Berkeley would be valuable.
On August 11, 2017, the evening prior to the scheduled Unite the Right Rally, Daley, Gillen, and Miselis, and other members of RAM, joined hundreds of individuals in a torch-lit march on the grounds of the University of Virginia in Charlottesville. Throughout the march, participants chanted, “Blood and Soil!” and “Jews will not replace us!” The march culminated near a statue of Thomas Jefferson where a small group of students gathered to protest white supremacy. Violence erupted among the crowd, with some punching, kicking, spraying chemical irritants and swinging torches. During and in furtherance of this riot, Daley punched multiple individuals. As part of their pleas, the defendants admitted these actions were not in self-defense.
On the morning of August 12, 2017, Daley, Gillen, and Miselis, and other members of RAM, with their hands wrapped in white athletic tape, were part of a large group of over 40 individuals seeking entry into Emancipation Park by way of Second Street when they were told by law enforcement to enter at a different location. The group, including Daley, Gillen, Miselis, and other RAM members, turned, lined up, and began to make their way through a group of over 20 individuals who had come to the rally to protest against discrimination. As they made their way through the group of protestors, the RAM members collectively pushed, punched, kicked, chocked, head-butted, and otherwise assaulted several individuals, resulting in a riot. As part of their pleas, the defendants admitted these actions were not in self-defense.
The investigation of the case was conducted by the Federal Bureau of Investigation and the Virginia State Police. United States Attorney Thomas T. Cullen, Assistant United States Attorney Christopher Kavanaugh, and Assistant United States Attorney Justin Lugar are prosecuting the case for the United States.
Texas Tax Return Preparer Sentenced to Prison in False Tax Return SchemeRead the Press Release
A Dallas, Texas, area tax return preparer was sentenced to 63 months in prison today for conspiring to defraud the United States and for aiding and assisting in the preparation of false tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Erin Nealy Cox for the Northern District of Texas.
According to documents and information provided to the court, Francisco Ventura owned and operated tax preparation businesses located in the Northern District of Texas from 2012 through 2015. During 2014, Ventura was the de factoowner and manager of a business named AJJ Tax and More. In 2014, Ventura was also the de facto co-owner of a second preparation business, named Uptown Multi Services, which he co-owned with Mario Melendez.
From November 2013 through May 2014, Ventura conspired with Melendez and others to file fraudulent federal income tax returns for clients with the Internal Revenue Service (IRS) that included false education credits, Schedule C expenses and other deductions. In addition to preparing such returns, Ventura taught training classes for new return preparers during which he instructed employees how to prepare fraudulent tax returns in order to maximize client refunds. Ventura is responsible for attempting to cause over $8.3 million of tax loss to the United States.
In addition to the term of imprisonment imposed, Ventura was ordered to serve two years of supervised release and to pay restitution in the amount of $8,310,261 to the IRS.
Melendez previously pleaded guilty in November 2018 to conspiring to defraud the United States and to aiding and assisting in the preparation of false tax returns. In April 2019, he was sentenced to 51 months in prison.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Nealy Cox commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorney Alexander Effendi of the Tax Division and Assistant United States Attorney Melanie Smith, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Sterling, Alaska Drug Dealer Sentenced to Eight Years in PrisonRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that Mark Norman Hanes, 52, of Sterling, Alaska, was sentenced yesterday by U.S. District Judge Sharon L. Gleason, to eight years in prison, to be followed by a three-year term of supervised release, for his role in a drug and money laundering conspiracy that distributed methamphetamine and heroin throughout Southcentral Alaska.
According to documents filed in the case, between mid-2014 and Jan. 14, 2015, Hanes was part of a conspiracy that distributed methamphetamine and heroin throughout Southcentral Alaska. Individuals in Anchorage supplied Hanes with the drugs, driving to meet him near his home in Sterling on at least two occasions to deliver product. Payment for those drugs would then be made through deposits into bank accounts controlled by the conspiracy.
During a search of Hanes’ property, law enforcement located approximately one pound of methamphetamine and a half-pound of heroin in a safe in his bedroom. Also located in the safe was more than $5,000 in cash, a loaded Glock handgun, and an envelope that contained a U-Haul magnetic security card, and two keys. Written on the outside of the envelope was “Casey, Emergency Only!” Located in the storage locker was methamphetamine and heroin, as well as $148,000 in cash.
Hanes was not present at the residence at the time of the search, having traveled to Mexico approximately one week prior. Following the search, Hanes stayed in Mexico and remained there until his arrest on or about Sept. 11, 2017.
In January 2015, Hanes possessed more than 400 doses of methamphetamine and more than 2,000 doses of heroin. At sentencing, Judge Gleason noted the large quantity of drugs distributed in this case, and the harm those drugs did in the defendant’s rural community. “Drugs destroy so many lives,” said Judge Gleason. Judge Gleason also noted that while Hanes was a drug user, the large volume of cash seized in this case made it clear that his dealing was not driven by his addiction, but rather, was driven by a profit motive.
The FBI Safe Streets Task Force and IRS Criminal Investigation (IRS-CI) conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Kyle Reardon.
Southampton Man Sentenced for Child Pornography OffensesRead the Press Release
BOSTON – A Southampton man was sentenced in federal court in Springfield today for child pornography offenses.
Bruce Singer, 72, was sentenced by U.S. District Court Judge Mark G. Mastroianni to eight years in prison and 15 years of supervised release. In April 2019, Singer pleaded guilty to five counts of distribution of child pornography, one count of receipt of child pornography and one count of possession of child pornography. Singer was indicted in March 2017 and was released on conditions.
On various occasions between April 30, 2013, and June 25, 2015, Singer sent and received child pornography by text and email. When police searched his home in 2015, Singer possessed hundreds of images of child pornography on various electronic devices, including images of several known child victims. Singer exchanged child pornography with others, including James J. Smith, who was convicted in federal court in Springfield of distributing, transporting, receiving, and possessing child pornography. In September 2017, Smith was sentenced to 138 months in federal prison.
United States Attorney Andrew E. Lelling; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Northampton Police Chief Jody Kasper; and Easthampton Police Chief Robert Alberti made the announcement today. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Office and Trial Attorney Leslie Williams Fisher of the U.S. Department of Justice’s Criminal Division’s Child Exploitation and Obscenity Section are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Siemens Contract Employee Intentionally Damaged Computers by Planting Logic Bombs into Programs He DesignedRead the Press Release
PITTSBURGH, PA – A resident of Harrison City, Pennsylvania, pleaded guilty in federal court to charge of intentional damage to a protected computer, United States Attorney Scott W. Brady announced today.
David Tinley, 62, pleaded guilty to one count beforeSenior or Chief United States District Judge Peter J. Phipps.
In connection with the guilty plea, the court was advised that from in and around 2014 and continuing until on or about May 13, 2016, Tinley, a contract employee for Siemens Corporation at the Monroeville, PA location, intentionally inserted logic bombs into computer programs that he designed for Siemens Corporation. The logic bombs ensured that the programs would malfunction after the expiration of a certain date. As a result, Siemens was unaware of the cause of the malfunction and required Tinley to fix these malfunctions.
Judge Phipps scheduled sentencing for Nov. 8, 2019 at 10:30 a.m. The law provides for a maximum total sentence of 10 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(s) and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the prosecution of Tinley.
Schuylkill County Man Sentenced to 47 Months’ Imprisonment for Role in Heroin Trafficking ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Thomas Nestor, age 41, of Ringtown, was sentenced by Senior U.S. District Court Judge James M. Munley to 47 months’ imprisonment and to serve four years on supervised release for his role in a heroin trafficking conspiracy.
According to United States Attorney David J. Freed, Nestor previously pleaded guilty to conspiracy to distribute more than 100 grams of heroin. Nestor admitted to distributing heroin and transporting other drug traffickers to Hazleton and other locations to obtain large quantities of heroin on multiple occasions. Nestor was involved in transporting and distributing between 400 grams and 700 grams of heroin, which is equivalent to 16,000 and 28,000 retail bags of heroin.
The matter was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and local police in Schuylkill County. Nestor was one of 11 people charged in the investigation. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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