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30 August 2019
Tampa Man Charged with Distributing Fentanyl Resulting in DeathRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the unsealing of an indictment charging Aaron Michael Rohrer (25, Tampa) with distribution of a mixture or substance containing a detectable amount of fentanyl that resulted in the death of an individual, B.G. If convicted, Rohrer faces a minimum mandatory penalty of 20 years, and up to life, in federal prison.
According to the indictment, on March 10, 2019, Rohrer distributed a substance containing fentanyl to B.G. B.G. used the substance containing fentanyl, and subsequently overdosed and died. The distribution took place within 1,000 feet of Time of Wonder Academy, a primary school, and the National Louis University.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Hillsborough County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Michael C. Baggé-Hernández.
Statements of the United States Attorney and the FBI Special Agent in Charge on the Arrest and Charging of a Grand Junction Man for Making Threats to Kidnap and Murder WomenRead the Press Release
"Above everything else, our most important job is keeping Coloradans safe," said United States Attorney Jason R. Dunn. "Threats to the public always need to be taken seriously. We commend the quick thinking and fast work of the FBI and our federal, state, and local law enforcement partners, who make responding to potential threats a top priority."
"The arrest in this case highlights the success that can be obtained when federal, state, and local agencies combine resources to pursue potential threats to our community," said FBI Denver Special Agent in Charge Dean Phillips. "We extend our gratitude to our law enforcement partners and the U.S. Attorney's Office for working together to quickly address this matter."
The defendant in this case is charged by a criminal complaint. The charge in the complaint is an allegation and the defendant is presumed innocent until proven guilty.
CASE NO. 19-mj-198
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Statement on deaths at the Louis A. Johnson VA Medical CenterRead the Press Release
There is an ongoing and comprehensive federal criminal investigation underway into the circumstances surrounding the deaths of certain patients at the Louis A. Johnson VA Medical Center. The investigation, conducted by my office, along with the FBI and the VA OIG, was initiated as soon as potential criminal conduct was discovered and continues to be a top priority. We fully understand the desire for a speedy resolution and need for closure. The VA will continue to coordinate with the affected families, but in order to protect the integrity of the investigation, we will not be making any additional comments until the investigation is complete.
Bill Powell
U.S. Attorney
Northern District of West Virginia
St. John the Baptist Man Indicted on Federal Drug and Firearms ChargesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced that on August 29, 2019, JONATHAN WEBRE, age 35, a resident of Reserve, Louisiana, was indicted by the Federal Grand Jury in a three count indictment, charging him with distribution of five grams or more of methamphetamine, possession with the intent to distribute 50 grams or more of methamphetamine, and being a felon in possession of a firearm.
These charges stem from an investigation by both the St. John the Baptist Sheriff’s Office and the United States Drug Enforcement Administration into the illegal activities of JONATHAN WEBRE over the last two years.
If convicted of the drug charges he faces a mandatory minimum sentence of 10 years in prison and a maximum of life in prison, a fine of not more than $4,000,000.00, and a five year term of supervised release. If convicted of the firearms charges, he faces a sentence of not more than 10 years, a fine of not more than $250,000.00, and a term of supervised release of not more than three years.
This indictment is just an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the Drug Enforcement Administration (D.E.A.), the St. John the Baptist Parish Sheriff’s Office, and the St. John the Baptist District Attorney’s Office. Assistant United States Attorney Maurice Landrieu is in charge of the prosecution.
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St. Francis Man Sentenced for Conspiracy to Distribute a Controlled SubstanceRead the Press Release
United States Attorney Ron Parsons announced that a St. Francis, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on August 26, 2019, by U.S. District Judge Roberto A. Lange.
Justin Covey, a/k/a Justin Night Shield, age 19, was sentenced to 60 months in federal prison, followed by 4 years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Covey was indicted by a federal grand jury on December 11, 2018. He pled guilty on May 29, 2019.
The conviction stemmed from a drug conspiracy that occurred beginning no later than October 15, 2018, and continuing to November 2, 2018, in which Covey knowingly and intentionally conspired with his co-defendants to distribute and possess with the intent to distribute methamphetamine, a Schedule II controlled substance, in the District of South Dakota. At the time of his arrest, law enforcement recovered 256 grams of methamphetamine, scales, baggies, and other drug trafficking items.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force and Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Meghan N. Dilges prosecuted the case.
Covey was immediately turned over to the custody of the U.S. Marshals Service.
Sioux Falls Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on August 27, 2019, by U.S. District Judge Roberto A. Lange.
Damon Clyde Has Horns, age 38, was sentenced to 30 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Has Horns was indicted by a federal grand jury on March 12, 2019. He pled guilty on July 23, 2019.
Has Horns was convicted of Aggravated Assault in March 2001. As a result of this conviction, he is required to register as a sex offender and to update his registration within three business days of relocation or changing employment. Between December 3, 2018, and March 12, 2019, Has Horns failed to properly register as a sex offender and update his registration.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Has Horns was immediately turned over to the custody of the U.S. Marshals Service.
Savannah man ordered detained until trial on charges related to firebombingRead the Press Release
SAVANNAH, GA: A Savannah man has been ordered held without bond on federal charges related to the July 2 firebombing that badly burned a Savannah woman.
After a Friday morning, Aug. 30, detention hearing, Barry Wright, 52, of Savannah, was ordered to be detained pending trial by U.S. District Court Magistrate Judge Christopher L. Ray on federal charges of possession of an unregistered destructive device, and one count of the use of fire or explosive to commit a felony offense, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Each charge carries a possible sentence of up to 10 years in prison, and there is no parole in the federal system.
According to testimony during Wright’s detention hearing, he is alleged to have constructed and placed an incendiary device inside a woman’s vehicle. The device set the vehicle on fire, and the woman received severe burns.
“We applaud the quick work of our federal and local law enforcement partners in bringing these charges,” said U.S. Attorney Christine. “Our office will vigorously prosecute those whose violent and destructive actions bring harm to others.”
“This arrest was made after countless hours of meticulous investigation,” said ATF Special Agent in Charge Arthur Peralta, with the Atlanta Bureau. “These types of crimes require an immediate response, intense investigation and collaboration at every level.”
Wright’s charges in the case are not a finding of guilt. Defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Savannah Police Department, and is being prosecuted for the United States by Assistant U.S. Attorneys Tania Groover and Joseph McCool.
Santa Fe Springs ‘Shotcaller’ and Mexican Mafia Member Convicted of Racketeering, Narcotics Offenses, and 2016 Murder of Rival GangsterRead the Press Release
LOS ANGELES – A Mexican Mafia member and “shotcaller” of the Santa Fe Springs- and Whittier-based Canta Ranas street gang has been found guilty by a federal jury of multiple crimes resulting from his control of a wide-ranging racketeering criminal enterprise, including the murder of a rival Mexican Mafia member at a San Gabriel Valley restaurant.
Jose Loza, 40, the lead defendant in a 2016 federal grand jury indictment charging 51 Canta Ranas members and associates, was convicted Thursday afternoon of 12 felonies. Canta Ranas is a multi-generational criminal enterprise engaged in murder, attempted murder, assault, extortion, money laundering, and drug distribution.
Specifically, the jury found Loza guilty of one count of conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act, four counts of engaging in violent crimes in aid of racketeering (VICAR), one count of conspiracy to distribute methamphetamine, one count of possession with intent to distribute methamphetamine, three counts of using a firearm during a crime of violence, one count of being a felon in possession of a firearm, and one count of money laundering conspiracy.
United States District Judge Virginia A. Phillips has scheduled a December 16 sentencing hearing, at which time Loza will face a mandatory sentence of life in federal prison stemming from his conviction for the murder alone.
According to the evidence presented at Loza’s month-long trial, Loza implemented the orders of David Gavaldon, an imprisoned senior Mexican Mafia member who was himself a long-time member of the Canta Ranas street gang and who was not charged in this case as he is serving a life-without-parole sentence in Pelican Bay State Prison. Gavaldon exerted control over Canta Ranas and other gangs in Whittier, Santa Fe Springs, Riverside, and Stockton, and he received compensation in the form of “rent” or “taxes” generated by drug trafficking and other offenses committed in gang territory, according to trial evidence.
In addition to implementing Gavaldon’s orders, Loza murdered Dominic Gonzales, a fellow Mexican Mafia member who was marked for death by the prison gang after he was perceived as encroaching upon the territories of other Mexican Mafia members. During the April 19, 2016 incident at a restaurant in the San Gabriel Valley community of Basset, Gonzales was shot six times, including to the head and chest, his bodyguard was severely wounded, and an innocent restaurant patron was wounded, receiving six gunshots to the abdomen, back, buttocks, and legs.
In what’s believed to be a first-time occurrence, Loza as well as other Mexican Mafia members and high-level associates of the prison gang, including a death row inmate from San Quentin, took the unusual step of testifying about the gang’s existence, activities, and power both inside and outside prison systems.
Prosecutors have secured more than 40 convictions so far in this matter, which is the result of Operation Frog Legs. During the course of that three-year investigation, law enforcement seized 51 firearms and made several narcotics seizures, including nearly one pound of methamphetamine seized during the execution of search warrants after Loza murdered the other Mexican Mafia member.
Loza’s accomplice in the 2016 murder, Leonardo Antolin, 25, of Whittier, pleaded guilty to five felonies in this case and has agreed to a prison sentence of 33 years to 40 years in federal prison. His sentencing hearing is scheduled for September 23.
Operation Frog Legs is the result of an investigation by the Southern California Drug Task Force, which is led by the Drug Enforcement Administration as part of the High Intensity Drug Trafficking Area (HIDTA) initiative. The Task Force members that participated in Operation Frog Legs were U.S. Immigration and Customs Enforcement’s Homeland Security Investigation, the Whittier Police Department, the Los Angeles County Sheriff’s Department, IRS Criminal Investigation, and the California Department of Corrections and Rehabilitation, Office of Correctional Safety, Special Service Unit.
This matter is being prosecuted by Assistant United States Attorney Carol Alexis Chen, Chief of the International Narcotics, Money Laundering, and Racketeering Section, and Assistant United States Attorneys Victoria A. Degtyareva and Kathy Yu, also of the International Narcotics, Money Laundering, and Racketeering Section.
San Diego Man Convicted of Child Pornography OffensesRead the Press Release
Assistant U.S. Attorneys Amanda Griffith (619) 546-8970 or Janet Cabral (619) 546-8715
NEWS RELEASE SUMMARY – August 30, 2019
SAN DIEGO – Carsten Igor Rosenow was convicted by a federal jury today of attempted sexual exploitation of a child and possession of child pornography.
Rosenow, a former chief marketing officer for a San Diego tech company, came to the attention of law enforcement when the FBI received information that Rosenow was communicating through Facebook with what appeared to be minor females living in the Philippines, using an account under the name “Carlos Senta.” The FBI also uncovered evidence that Rosenow traveled regularly to the Philippines, and appeared to be engaging in sexual activities with minors.
The FBI was alerted that Rosenow was scheduled to return to the United States from the Philippines in June of 2017, and he was arrested by FBI agents when he arrived at the airport in San Diego on June 21, 2017. Rosenow’s baggage and residence were searched pursuant to search warrants. According to evidence presented at trial, three devices seized from Rosenow’s luggage contained videos, produced by Rosenow while in the Philippines, showing Rosenow engaging in sexual acts with minor females. Additional devices seized from his residence also contained visual depictions of Rosenow engaged in sexual acts with minors while in the Philippines.
Facebook records introduced into evidence at trial established that prior to meeting with one of the girls, Rosenow was told she was 12 years old. While engaged in the sexual activity with the girl, she told Rosenow she was 15. Rosenow also admitted as part of the evidence at trial that he knew that another video, which showed him engaged in sexual acts with three minor females, one of whom was a prepubescent female, was produced by him while in the Philippines
Rosenow testified at trial and admitted that while he was abroad in the Philippines for work, he had sex with girls who he knew were minors, which is defined under federal law as anyone under the age of 18. The jury found the defendant guilty of both charges. The court set sentencing for December 2, 2019.
This case is the result of the ongoing efforts of the Violent Crime and Human Trafficking (VCHT) Section of the U.S. Attorney’s Office for the Southern District of California. Formed in 2019, by U.S. Attorney Robert S. Brewer, Jr., the VCHT is tasked with leading collaborations between federal and local law enforcement in the investigation and prosecution of cases involving violent crimes, firearms and gang cases; sex trafficking and child exploitation; civil rights, and labor trafficking. The VCHT Section oversees the Southern District of California Coordinators for Project Safe Neighborhoods, Human Trafficking, and Project Safe Childhood.
DEFENDANT Criminal Case No. 17cr3430-WQH
Carsten Igor Rosenow Age: 55 San Diego, CA
SUMMARY OF CHARGE
- Count One – Title 18, United States Code, Section 2251(c), Attempted Sexual Exploitation of a Child – Production of Child Pornography
- Count Two – Title 18, United States Code, Section 2252(a)(4)(B), Possession of Images of Minors Engaged in Sexually Explicit Conduct
Maximum penalties:
- Count One - 30 years in prison, with a mandatory minimum 15 years in prison
- Count Two – 20 years in prison
- As to all Counts, $250,000 fine
INVESTIGATING AGENCIES
Federal Bureau of Investigation
Saint Louis Man Pleads Guilty to Shooting Federal OfficerRead the Press Release
St. Louis, MO - Johnzell Moorehead, 29, of Saint Louis, MO, pleaded guilty to one count of discharging a firearm in furtherance of assaulting a federal law enforcement officer. Moorehead appeared today before U.S. District Judge John A. Ross who accepted his plea and set his sentencing date for December 6, 2019.
According to the plea agreement and among other things, Moorehead, his girlfriend, and an associate, Daryaun Wines, were travelling inside a vehicle in the early morning hours of October 12, 2017. The group was being followed by two additional associates who were in a separate vehicle. Federal Bureau of Investigation Special Federal Officer Archie Shaw was on-duty and, as part of an on-going investigation, began to follow the second of the two vehicles. Special Federal Officer Shaw was utilizing an unmarked law enforcement vehicle.
Moorehead noticed Special Federal Officer Shaw's vehicle. Moorehead, his girlfriend, and Wines split-up from their other associates (who were being followed by Special Federal Officer Shaw). The vehicle being followed by Special Federal Officer Shaw led Special Federal Officer Shaw to the intersection of Miami and Iowa streets within the City of Saint Louis. As Special Federal Officer Shaw drove through the intersection, Moorehead and Wines shot Special Federal Officer Shaw. Moorehead and Wines travelled to that location for the purpose of committing the shooting.
Special Federal Officer Shaw's vehicle was struck several times by the gunfire. Special Federal Officer Shaw himself was also struck by gunfire. After being shot, Special Federal Officer Shaw was able to drive himself to safety. Moorehead and his associates fled the area.
Under the firearm charge, Moorehead faces a mandatory minimum term of imprisonment of 10 years up to life in prison. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges. As part of the plea agreement, the parties have agreed to recommend a 25-year sentence at the time of Moorehead’s sentencing.
In addition to Moorehead’s conviction, this on-going investigation into the shooting of Special Federal Officer Shaw also resulted in the federal convictions of Daryaun Wines; Paris Gordon; Don Collins; Joseph Paster; Clifton Hudson; and Darlene Calhoun.
“Police Officer Shaw has provided nearly 30 years of dedicated service to the citizens of Saint Louis. The courage he exhibited in this incident, demonstrates his level of commitment to the protection of the community,” said Chief John Hayden, Saint Louis Metropolitan Police Department. “The Saint Louis Police Department truly appreciates the support and assistance we receive from the U.S. Attorney’s Office, the FBI and all our federal partners.”
"Mr. Moorhead and Mr. Wines ambushed FBI Special Federal Officer Shaw as he was simply doing his job, a dangerous job requiring courage and dedication. When any officer is threatened or attacked, the Department of Justice is committed to holding accountable anyone directly or indirectly involved. We hope Mr. Moorehead’s case, along with the other individuals charged and convicted during the course of this on-going investigation makes that clear,” said Assistant United States Attorney Thomas Rea after today's proceeding.
The Saint Louis Metropolitan Police Department, with the assistance of the Federal Bureau of Investigation, is investigating this case.
Rochester Man Pleads Guilty to Fentanyl Trafficking ConspiracyRead the Press Release
CONCORD – Derek Rand, 31, of Rochester, pleaded guilty in federal court on Thursday to participating in a fentanyl trafficking conspiracy, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, between late 2017 and December 18, 2018, the Drug Enforcement Administration (DEA) and the New Hampshire State Police conducted an investigation of drug trafficking by Rand, who used runners to obtain fentanyl in Massachusetts and bring it to New Hampshire for distribution. During the investigation, over one kilogram of fentanyl was seized from members of Rand’s drug trafficking organization.
DEA arrested Rand on December 18, 2018.
Rand will be sentenced on December 16, 2019.
“Fentanyl traffickers make a lethal substance available for purchase in Rochester and other communities throughout New Hampshire,” said U.S. Attorney Murray. “The results have been devastating. In order to stop the flow of fentanyl, we work closely with our law enforcement partners to identify, arrest, and prosecute traffickers.”
This matter was investigated by the United States Drug Enforcement Administration and New Hampshire State Police. The case is being prosecuted by Assistant U.S. Attorney Jennifer Davis.
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Queens Man Planning Knife Attack Charged with Attempting to Provide Material Support to ISISRead the Press Release
A criminal complaint filed today in federal court in Brooklyn charged Awais Chudhary, a naturalized U.S. citizen born in Pakistan, with attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization. Chudhary was arrested yesterday, and made his initial appearance this afternoon before United States Magistrate Judge James Orenstein. Chudhary was ordered held without bail.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, John C. Demers, Assistant Attorney General for National Security, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the arrest.
“As alleged, Awais Chudhary planned to kill innocent civilians on behalf of ISIS and record the bloodshed in the hope of inspiring others to commit attacks,” stated United States Attorney Donoghue. “This Office, together with the FBI, the NYPD and all members of the FBI Joint Terrorism Task Force will continue working tirelessly to identify ISIS sympathizers like the defendant and prevent them from carrying out their murderous intentions.”
“The defendant allegedly planned to conduct a deadly attack in New York on behalf of ISIS,” stated Assistant Attorney General Demers. “The National Security Division, working with our partners, will remain vigilant in our efforts to identify, disrupt and hold accountable those who would conduct a terrorist attack on our soil. I want to thank the agents, analysts and prosecutors who are responsible for this case and prevented this defendant from carrying out his deadly plans.”
“There’s no doubt Chudhary allegedly wanted to make headlines by attacking innocent people going about their daily lives. Thanks to the diligent work of the agents, analysts, and detectives on the FBI New York JTTF, the only thing to report today is his arrest, and the only photos Chudhary will be featured in are the ones taken in our prisoner processing room prior to his arrival in federal prison,” stated FBI Assistant Director-in-Charge Sweeney.
“Awais Chudhary had accepted the call from ISIS to kill fellow New Yorkers in the city he called home,” stated NYPD Commissioner O’Neill. “He had carefully planned, conducted reconnaissance, picked a target, and was in the process of obtaining the weapon. All he has left to do was to strike. The FBI agents and NYPD detectives of the JTTF should be commended for the disruption of this plot. Their work almost certainly saved lives.”
As alleged in the complaint, in August 2019, Chudhary communicated to undercover law enforcement officers through text messaging that he planned to conduct a stabbing or bombing attack on behalf of ISIS. Chudhary also wanted to record his attack to inspire others to commit similar acts of violence. Chudhary identified the pedestrian bridges over the Grand Central Parkway to the Flushing Bay Promenade (the Promenade) and the area of the World’s Fair Marina (the Marina) as locations for the attack. On August 23, 2019, Chudhary told an undercover agent that he intended to use a knife “because that’s what he knows,” but if the undercover agent could instruct him on how to build a bomb, he would consider using an explosive device at a “mini-bridge over a busy road with many cars.” On the same day, Chudhary texted another undercover agent a screenshot of a document entitled “Islamic State,” with the subheadings: “Places to Strike,” “The Ideal Knife” and “Knives to Avoid.” The instructions included a diagram of the human body with directions where to stab a victim. Chudhary also sent the undercover agent videos of pedestrian bridges over the Grand Central Parkway, and stated that he was considering throwing explosives over the fencing at vehicles passing below.
Chudhary conducted multiple reconnaissance trips to the targeted locations. On August 24, 2019, FBI agents surveilled Chudhary enter the Promenade in the vicinity of 27th Avenue and Ditmars Boulevard and take videos and photos with his cellphone of various locations, as well as the Marina, a nearby gas station, a donut shop and a security camera near the donut shop.
Between August 25 and August 26, 2019, Chudhary ordered online a tactical knife, a mask, gloves and a cellphone chest and head strap to facilitate his recording of the attack. Chudhary was arrested yesterday as he attempted to retrieve the items from an online vendor’s retail location in Queens.
The charge in the complaint is an allegation, and the defendant is presumed innocent unless and until proven guilty. If convicted, Chudhary faces a maximum sentence of 20 years’ imprisonment.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorney Jonathan Algor and Special Assistant United States Attorney Elizabeth A. Hanft are in charge of the prosecution, with assistance from Trial Attorney Kevin C. Nunnally of the National Security Division’s Counterterrorism Section.
The Defendant:
AWAIS CHUDHARY
Age: 19
Queens, New YorkE.D.N.Y. Docket No. 19-MJ-778
Pharmacy Owner Charged in Multimillion-Dollar Scheme to Commit Health Care Fraud and Pay Illegal Bribes to DoctorRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was arrested today for his role in conspiracies to commit health care fraud and to bribe a doctor, U.S. Attorney Craig Carpenito announced.
Eduard Shtindler, a/k/a “Eddy,” 36, of Paramus, New Jersey, is charged by complaint with one count of conspiracy to commit health care fraud and one count of conspiracy to pay illegal kickbacks to a doctor. He is scheduled to make his initial court appearance today before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court.
According to documents filed in this case and statements made in court:
From 2012 through at least 2017, Shtindler owned and operated Empire Pharmacy – now closed – in West New York, New Jersey. Starting in 2015, Empire began filling prescriptions for expensive specialty medication that required “prior authorization” before being approved for reimbursement by Medicare, Medicaid, and some private insurance providers. Shtindler intended to entice doctors to use Empire for specialty medication prescriptions by showing that, among other things, Empire received prior authorization approval more successfully than any other pharmacies. To do that, he directed Empire employees, including two pharmacists, to repeatedly falsify prior authorization forms for medications for various conditions, including psoriasis and Hepatitis C. In recorded conversations, Shtindler admitted to his and Empire’s practice of falsifying prior authorization forms in order to receive approval for medication that would not have otherwise been approved. Shtindler and Empire received approximately $2 million in reimbursement payments from Medicare, Medicaid, and other insurance carriers that they otherwise would not have received.
From 2012 through early 2017, Shtindler also participated in a conspiracy to pay bribes to a psychiatrist in Hudson County, New Jersey, to induce the doctor to send prescriptions to Empire. Shtindler sent Empire employees to deliver some of the bribe payments to the doctor. On occasion, Shtindler secreted cash bribes, in $100 denominations, in pill bottles that were delivered to the doctor. In exchange for these bribes, the doctor steered patients to Empire pharmacy, even though the patients used other pharmacies closer to their homes for all of their other prescriptions. In one recorded conversation between Shtindler and a former Empire employee who had delivered a bribe to the doctor on Shtindler’s behalf, Shtindler stated: “You think [the doctor]’s going to go to the FBI and rat himself out?” In another conversation with the same former employee, Shtindler said: “First off, I didn’t make you do it. I didn’t put a gun to your head. We all made money together.” Empire dispensed approximately $3 million in medications prescribed by the psychiatrist.
The count of conspiracy to commit health care fraud carries a maximum penalty of 10 years in prison. The count of conspiracy to pay illegal kickbacks carries a maximum penalty of five years in prison. Both counts are also punishable by a $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; special agents of the Department of Health and Human Services-Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; and the N.J. Office of the State Comptroller, under the direction of Comptroller Philip James Degnan, with the ongoing investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Joshua L. Haber of the Health Care and Government Fraud Unit of the U.S. Attorney’s Office in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Pain Clinic Owner from South Florida Sentenced for Oxycodone Trafficking ConspiracyRead the Press Release
LONDON, Ky. – Pete Anthony Tyndale, 47, of Hollywood, Florida, was sentenced to 29 years of imprisonment by United States District Judge Robert E. Wier for conspiring to distribute oxycodone and other drugs, and for money laundering.
Tyndale was the co-owner of the Tennessee Pain Institute (TPI), a pain clinic that operated from 2011 to 2016 near Chattanooga. After a month-long trial earlier this year in federal court, a jury convicted Tyndale, his business partner Anwar Mithavayani, and physician Timothy Gowder, of operating TPI as a pill mill, and for money laundering related to proceeds from TPI. The three men were responsible for the illicit distribution of more than 1.6 million oxycodone 30mg pills, and hundreds of thousands of other narcotic pills and sedative pills, such as Xanax. Approximately half of TPI’s pill customers were traveling from eastern Kentucky.
In earlier proceedings this month, Judge Wier sentenced Gowder to 21 years of imprisonment and Mithavayani to 25 years of imprisonment. A third co-defendant, James Bradley Combs, 41, of Woodbine, Kentucky, received a 151-month sentence. Combs was convicted of possessing with intent to distribute oxycodone, and he was a regular customer at TPI. Another co-defendant, Larry Karr of Keavy, Kentucky, pled guilty to the oxycodone conspiracy charge in May of 2018 and was later sentenced to 108 months in prison.
Under federal law, Tyndale and his co-defendants each must serve 85 percent of their prison sentence. Upon release, they will be under the supervision of the United States Probation Office for three years.
“Today’s sentencing demonstrates our commitment to holding accountable, to the full extent of the law, those who would profit from the illicit distribution of highly addictive drugs like oxycodone,” said United States Attorney Robert M. Duncan, Jr. “Hiding behind the ruse of a ‘medical clinic’ will not protect any drug trafficker from facing the consequences of the substantial harm caused by their actions.”
U.S. Attorney Duncan, Special Agent in Charge D. Christopher Evans of the Drug Enforcement Administration’s Louisville Field Division, Special Agent in Charge Matthew Line of the Internal Revenue Service, Criminal Investigation Division, Andy Beshear, Kentucky Attorney General, and Richard W. Sanders, Commissioner of Kentucky State Police jointly announced the sentences.
The investigation was conducted by the DEA, the IRS and the Kentucky Attorney’s General Office as part of an Organized Crime Drug Enforcement Task Force. The U.S. Attorney’s Office was represented in the case by Assistant U.S. Attorney Gregory Rosenberg.
On Overdose Awareness Day: A Mother’s Grief, a Top Prosecutor’s Dire Warning and Photos of Lives Lost in the Opioid EpidemicRead the Press Release
Assistant U.S. Attorneys Cindy Cipriani (619) 546-9608 and Larry Casper (619) 546-6734
NEWS RELEASE SUMMARY – August 30, 2019
SAN DIEGO – Keri Cuppage is on a scuba diving trip to Florida this Labor Day weekend to visit her daughter.
But it’s not what you think.
Her daughter, Tiffany Hansen, who died in San Diego on January 23, 2018 at age 26 of a fentanyl overdose, is resting at the bottom of the ocean she dearly loved. Her ashes were used to create a sea turtle sculpture which was placed in a manmade underwater memorial reef about 3 miles east of Key Biscayne near Miami, Florida.
Cuppage, who lives in San Diego, chose to commemorate Opioid Awareness Day, which is tomorrow, by descending 40 feet to the ocean floor to see that turtle and to honor, remember and grieve the young woman whose nickname was “Princess” and whose passions were the beach, mermaids and all things Disney, and whose death shattered her mother’s world. Cuppage managed to beat the hurricane that’s heading toward Miami by doing the dive a day earlier than planned.
“She brought love, joy and silliness; spreading infectious laughter into everyone’s life,” Cuppage wrote in an email about her daughter. “She was deeply loved by her family and friends. She is missed every day.” Cuppage said she plans to spend every “Opioid Awareness Day” like this.
In conjunction with Overdose Awareness Day on August 31, 2019, U.S. Attorney Robert Brewer is again warning the community about the dangers of opioids and fentanyl-laced drugs and sharing photos of numerous victims whose lives were cut short due to overdose.
They include an avid fisherman and father of three girls. A gifted soccer player. A young man who loved riding dirt bikes, listening to music and going to concerts. And others. All under 50. All died of opioid overdoses – mostly fentanyl.
“We are losing far too many San Diegans to a drug that many don’t even know they are taking,” Brewer said. “Counterfeit oxycodone pills – known as blue M-30s – have stolen the lives of husbands and wives, sons and daughters, and even a toddler who swallowed a pill that fell out of his dad’s pocket. Cocaine laced with fentanyl is another danger: It nearly killed two college students who had no idea they were ingesting an opioid 50 times stronger than heroin. Please understand the huge risks of street and ‘dark web’ drugs – they can kill you! Be smart, don’t take that risk.”
Addiction and overdose cause tremendous suffering not only to the victim but to surviving family members, friends and communities.
Erica Sanfillipo, a 27-year-old registered nurse and mother of a young child, became addicted while trying to manage pain associated with two car accidents in a six-month period. She died of an opioid overdose on June 28, 2015.
Her mother, Patricia Gary, wrote in an email that Erica’s addiction “quickly became something not only she was battling, but our entire family as well. See, this disease has no barriers nor does it discriminate. Eventually all the things that she loved and that were important to her no longer mattered – all that mattered was the next fix. In the end, Erica not only paid the ultimate price, but so did her child, parents, brother, aunts, uncles and many close friends! WE WERE ALL IMPACTED BY ADDICTION!”
Fentanyl-related deaths are rapidly climbing to unprecedented levels. The San Diego County Medical Examiner’s Office reports 50 confirmed fentanyl-related overdose deaths so far this year, plus another 28 suspected but yet-to-be confirmed cases with four months remaining in the year. Should this trend continue for the remainder of 2019, the death toll could potentially reach 130, which would amount to a 47 percent increase over last year’s total of 90 deaths, and a staggering 787 percent hike over five years ago when there were 15. The victims are overwhelmingly male, and the average age is 36, with the youngest 18 and the oldest 66.
Fentanyl is 30-50 times more powerful than heroin and so dangerous that in its purest form, even a tiny amount can be deadly. According to law enforcement reports, the price of fentanyl in 2019 – whether in powder form and pill form – is declining, meaning that availability of both forms are is increasing in our community.
The U.S. Attorney’s Office and District Attorney’s Office are working closely with the Medical Examiner’s Office and its law enforcement partners on overdose cases involving fentanyl to trace the origin of these deadly substances and build cases against suppliers.
Under federal law, sellers and suppliers of drugs that cause death or serious bodily injury face a very stiff penalty -- a 20-year mandatory minimum sentence. So far, the U.S. Attorney’s Office has charged about a dozen alleged dealers with that 20-year mandatory minimum offense.
In one such case, the defendant in U.S. v. Maxwell Gaffney (17CR3330-MMA) was swiftly convicted after a week-long trial and is now awaiting imposition of what could be at least a 20-year mandatory minimum sentence. In another recent case, defendant Corey Green (18CR2249-AJB) entered a guilty plea to heroin distribution charges and acknowledged that a death ensued; he was sentenced to 151 months in custody.
“These death investigations cannot bring back beloved family members but they do get deadly drugs off the street quickly,” Brewer said. “Moreover, the ensuing prosecutions send a clear message that traffickers will face serious repercussions. We hope these cases also bring a measure of comfort, peace and justice to beloved family members who face this devastating loss, with no option but to grieve for what might have been.”
In addition to prosecuting opioid dealers and smugglers, the U.S. Attorney's office raises awareness of harm reduction, prevention and education efforts, through the district's newly named Opioid Coordinators Larry Casper and Dylan Aste, and Outreach Director Cindy Cipriani, who Co-Chairs the San Diego Prescription Drug Abuse Task Force. The U.S. Attorney’s Office has implemented a Fentanyl Forum and a Fentanyl Working Group, both of which offer training and enable law enforcement partners to easily share knowledge and best practices. The office is also co-sponsoring the Western States Opioid Summit in San Diego on Nov. 7-8, which will bring multiple disciplines together to address every aspect of the Opioid Crisis. U.S. Surgeon General Vice Admiral Jerome Adams will be a featured speaker, along with leaders from the prevention, public health, treatment and law enforcement communities.
U.S. Attorney Brewer urged those struggling with substance use disorder and their family members to talk to a doctor or pharmacist about Naloxone, which can reverse an opioid overdose.
If you encounter fentanyl in the form of counterfeit pills or bulk powder, please reach out to law enforcement and/or refer to resources listed at https://www.sandiegorxabusetaskforce.org/community-resources
To learn how to assist a person who is overdosing, including how to administer Naloxone, please see https://www.youtube.com/watch?v=nurz9qPGKws&feature=youtu.be.
The U.S. Attorney’s Office is prosecuting several cases associated with victims listed below, including the alleged dealer who provided fentanyl to Tiffany Hansen, resulting in her death. That case, U.S. v. Uriah Odish, 18-CR-1812, is scheduled for trial on October 28. Please scroll down to see photos and details.
*Family members of victims who are willing to do interviews are indicated below.
Omaha Man Sentenced to 168 months Imprisonment for Selling MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that John Nichols, 54, of Omaha, Nebraska, was sentenced on August 30, 2019, to 168 months in prison by United States District Judge Robert F. Rossiter, Jr. after pleading guilty to possession with the intent to distribute methamphetamine and being a felon in possession of a firearm. After serving his sentence, Nichols will serve a 5-year term of supervised release.
Nichols was arrested on March 2, 2018, after being found outside of his South Omaha residence in possession of a firearm. A search of his residence revealed approximately 13 pounds of methamphetamine, four firearms, and more than $13,000 in U.S. currency. In a post arrest statement, Nichols admitted that he had been involved in distributing pound quantities of methamphetamine in the Omaha area.
This case was investigated by Homeland Security Investigations.
Ohio Woman Admits ATM Skimming Activity that Victimized Banks in Connecticut, Other StatesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MAYA FLORINA LUIZA DeSTEFFANO, also known as “Maya-Luisa Pastorelli” and “Maria,” 61, of Cleveland, Ohio, pleaded guilty today in Hartford federal court to conspiracy and identity theft charges stemming from ATM skimming activity that defrauded banks in Connecticut and other states.
According to court documents and statements in court today, between February and June 2017, a Connecticut bank experienced approximately 35 incidents of ATM skimming at locations in Stratford, Monroe, Trumbull, Greenwich, Fairfield and elsewhere in Connecticut. As part of the scheme, conspiracy members placed skimming devices at the ATMs to capture account numbers and personal identification numbers (“PIN numbers”) from customers who used their ATM cards at the ATMs while the devices were in place. Conspiracy members then used the captured information to make substitute ATM cards, and obtained money and made purchases using those cards. The bank suffered losses of approximately $286,069 during the scheme.
In pleading guilty, DeSteffano admitted that she installed and removed ATM skimming equipment at several locations, and used re-encoded cards and PINs to obtain money from several bank locations. She further admitted that, in December 2017, she participated in ATM skimming activity in Virginia and Maryland and, in September and October 2018, she participated in skimming activity Georgia. The banks victimized in these schemes suffered total losses of more than $191,000.
DeSteffano was arrested in Cleveland, Ohio, on December 14, 2018. She has been detained since her arrest.
DeSteffano pleaded guilty to one count of conspiracy to commit bank fraud, which carries a maximum term of imprisonment of 30 years, and one count of aggravated identity theft, which carries a mandatory consecutive prison term of imprisonment of two years. She is scheduled to be sentenced by U.S. District Judge Michael P. Shea on November 22, 2019.
On August 23, 2019, George Dragusin, a co-conspirator of DeSteffano in the Connecticut ATM skimming activity, pleaded guilty to the same charges. Dragusin, a citizen of Romania, also admitted that, between March and September 2018, he participated in ATM skimming activity in Nevada, Illinois, Ohio, Indiana and California, causing multiple banks to suffer total losses of more than $645,000. He is detained pending sentencing.
The investigation is being conducted by the Connecticut Financial Crimes Task Force; the U.S. Secret Service in New Haven and Las Vegas; the Greenwich Police Department; the Monroe Police Department; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI); the New York Police Department; the Las Vegas Metropolitan Police Department; the Lawrenceville (Georgia) Police Department; the Dixon (Calif.) Police Department, and the Hayward (Calif.) Police Department.
The case is being prosecuted by Assistant U.S. Attorney Anastasia E. King.
Norris Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that a Norris, South Dakota, man convicted of Conspiracy to Distribute Methamphetamine was sentenced on August 27, 2019, by U.S. District Judge Roberto A. Lange.
Michael Bettelyoun, age 26, was sentenced to 120 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Bettelyoun was indicted by a federal grand jury on December 11, 2018. He pled guilty on May 29, 2019.
The conviction stemmed from a conspiracy to distribute methamphetamine from 2017 through 2018, wherein Bettelyoun conspired with others to distribute and possess with intent to distribute 500 grams or more of methamphetamine on the Rosebud Sioux Indian Reservation in South Dakota.
This case was investigated 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 prosecuted the case.
Bettelyoun was immediately turned over to the custody of the U.S. Marshals Service.
New York Man Indicted for Carrying over Six Kilos of Cocaine to DistributeRead the Press Release
KANSAS CITY, Mo. – A Niagara Falls, N.Y., man has been indicted by a federal grand jury for possessing cocaine to distribute after being apprehended at a local bus station carrying more than six kilograms of cocaine.
Robbie O. Johnson, 43, was charged in an indictment returned by a federal grand jury in Kansas City, Missouri, on Thursday, Aug. 29. The indictment replaces a federal criminal complaint that was filed against Johnson on Aug. 12, 2019.
According to an affidavit filed in support of the original criminal complaint, Johnson was contacted by a Kansas City Police Department detective at a local bus station. Johnson, who was traveling through Kansas City en route from Los Angeles, California, to New York City, was acting suspiciously and appeared to be nervous, the affidavit says. When the detective searched Johnson’s backpack, he found five bundles of cocaine, each wrapped in articles of clothing in an apparent attempt to conceal the bundles. The total approximate weight of all five bundles was 13.7 pounds (6,214 grams).
The charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Emily A. Morgan. It was investigated by the Drug Enforcement Administration Kansas City, Mo., Police Department.
New Orleans Man Indicted on Federal Drug ChargesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced that on August 29, 2019, PABLO PEDRO MORALES-CURBELO, age 63, a resident of New Orleans, Louisiana, was indicted by the Federal Grand Jury in a two count indictment, charging him with participating in a conspiracy to possess with the intent to distribute 500 grams or more of cocaine as well as attempting to possess with the intent to distribute 500 grams or more of cocaine.
These charges stem from an investigation by Special Agents of the Department of Homeland Security and Jefferson Parish Sheriff’s Office into the illegal activities of PABLO PEDRO MORALES-CURBELO.
If convicted of these charges he faces a mandatory minimum sentence of 5 years in prison and a maximum of 40 years in prison, a fine of not more than $2,000,000.00, and a four year term of supervised release on the drug charges, as to each count.
This indictment is just an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the Department of Homeland Security and the Jefferson Parish Sheriff’s Office. Assistant United States Attorney Maurice Landrieu is in charge of the prosecution.
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Nebraska Woman to Federal Prison on Meth ChargesRead the Press Release
A woman who trafficked methamphetamine was sentenced on August 28, 2019 to five years in federal prison.
Cecelia V. Hardheart, age 26, from Winnebago, Nebraska, received the prison term after an April 11, 2019, guilty plea to one count of possession with intent to distribute 5 grams or more of actual (pure) methamphetamine near a protected location.
Evidence at the detention, change of plea, and sentencing hearing revealed Cecelia V. Hardheart tried to hide 27 grams of ice methamphetamine in her person during a traffic stop, conducted within 1000 feet of the real property comprising a public playground, Dinosaur Park, located at 1515 Nebraska Street, and Alfred Thompson Children’s Park located at 803 14th Street in Sioux City, Iowa. She refused to surrender the meth, requiring a search warrant to be obtained and executed by police and medical staff, who removed the meth by force. Hardheart has a lengthy criminal history including weapons charges (stemming from her possession of a 24-inch machete) and two assault convictions.
Hardheart was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Hardheart was sentenced to 60 months’ imprisonment. She must also serve a 8-year term of supervised release after the prison term. There is no parole in the federal system.
Hardheart is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was investigated by the Sioux City, Iowa Police Department and prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-4011. Follow us on Twitter @USAO_NDIA.
Mobridge Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that a Mobridge, South Dakota, man convicted of Conspiracy to Distribute Methamphetamine was sentenced on August 26, 2019, by U.S. District Judge Charles B. Kornmann.
Waylon Laframboise, age 41, was sentenced to 70 months in federal prison, followed by 4 years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Laframboise was indicted by a federal grand jury on February 13, 2019. He pled guilty on May 14, 2019.
The conviction stemmed from a conspiracy to distribute methamphetamine from February 2014 through January 2015, wherein Laframboise conspired with others to distribute and possess with intent to distribute 50 grams or more of methamphetamine in central South Dakota.
This case was investigated by the Mobridge Police Department and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Laframboise was immediately turned over to the custody of the U.S. Marshals Service.
Mission Woman Sentenced on Meth and Firearm ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance and Possession of a Firearm by a Prohibited Person, was sentenced on August 26, 2019, by U.S. District Judge Roberto A. Lange.
Micole Lynn Menard, age 36, was sentenced to 132 months in federal prison, followed by 5 years of supervised release for the conspiracy conviction. She was sentenced to 120 months in federal prison, followed by 3 years of supervised release for the firearm conviction. The sentences will be served concurrently. In addition, Menard was ordered to pay a special assessment to the Federal Crime Victims Fund in the amount of $200.
Menard was indicted by a federal grand jury on August 13, 2018. She pled guilty on May 2, 2019.
The conviction stemmed from a conspiracy that occurred between October 1, 2016, and January 31, 2017, in which Menard and co-defendant Walter Wright, knowingly and intentionally conspired with others to distribute and possess with the intent to distribute between 1.5 kilograms and 5 kilograms of methamphetamine. Further, on January 18, 2017, during the execution of a search warrant at their home, 267 grams of methamphetamine and other drug paraphilia were seized from the home along with four firearms. Menard, being an unlawful user of and addicted to a controlled substance, did knowingly illegally possess those firearms.
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 its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Meghan N. Dilges prosecuted the case.
Menard was immediately turned over to the custody of the U.S. Marshals Service.
Mission Woman Sentenced for Conspiracy to Distribute Methamphetamine and Possession of a HandgunRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, woman convicted of Conspiracy to Distribute Methamphetamine and Possession of a Firearm in Furtherance of a Drug Trafficking Crime was sentenced on August 27, 2019, by U.S. District Judge Roberto A. Lange.
Arlene Siers, age 30, was sentenced to a total of 240 months in federal prison. She was sentenced to 180 months in federal prison, followed by 10 years of supervised release, for the conspiracy conviction. She was sentenced to 60 months in federal prison, followed by 2 years of supervised release, on the firearm conviction. The prison terms will be served consecutively and the supervised release terms will be served concurrently. Siers was also ordered to pay a special assessment to the Federal Crime Victims Fund in the amount of $200.
Siers was indicted by a federal grand jury on January 23, 2019. She pled guilty on May 29, 2019
The conviction stemmed from a conspiracy beginning at some point before January 1, 2015, and continuing through January 23, 2019, wherein Siers, knowingly and intentionally, combined, conspired, confederated, and agreed with others to distribute and possess with intent to distribute 500 grams or more of methamphetamine on the Rosebud Sioux Indian Reservation in South Dakota. Further, on August 31, 2018, Siers possessed a loaded handgun, which she used in furtherance of her efforts to distribute methamphetamine.
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.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Siers was immediately turned over to the custody of the U.S. Marshals Service.
Mexican Man Charged with Illegally Using Social Security Number to Obtain EmploymentRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that GREGORIO GALAVIZ-ZAMORA, age 60, a native of Mexico, was charged on Thursday, August 29, 2019 in a one-count bill of information with illegally using a Social Security number in order to obtain employment, in violation of Title 42, United States Code, Section 408(a)(7)(B).
GALAVIZ-ZAMORA faces a maximum term of imprisonment of not more than five (5) years, three (3) years of supervised release, a fine of $250,000.00, and a mandatory special assessment fee of $100.00.
U.S. Attorney Strasser reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of United States Customs and Border Protection, Immigration and Customs Enforcement, Homeland Security Investigations, and Social Security Administration agents in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
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Mexican Man Charged with Illegally Using Social Security Number to Obtain EmploymentRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that OSCAR CAMACHO-GARCIA, age 32, a native of Mexico, was charged on Thursday, August 29, 2019 in a one-count bill of information with illegally using a Social Security number in order to obtain employment, in violation of Title 42, United States Code, Section 408(a)(7)(B).
CAMACHO-GARCIA faces a maximum term of imprisonment of not more than five (5) years, three (3) years of supervised release, a fine of $250,000.00, and a mandatory special assessment fee of $100.00.
U.S. Attorney Strasser reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of United States Customs and Border Protection, Immigration and Customs Enforcement, Homeland Security Investigations, and Social Security Administration agents in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
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Mexican Man Charged with Illegally Using Social Security Number to Obtain EmploymentRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that MANUEL LIRA-RIVERA, age 35, a native of Mexico, was charged on Thursday, August 29, 2019 in a one-count bill of information with illegally using a Social Security number in order to obtain employment, in violation of Title 42, United States Code, Section 408(a)(7)(B).
LIRA-RIVERA faces a maximum term of imprisonment of not more than five (5) years,
three (3) years of supervised release, a fine of $250,000.00, and a mandatory special assessment fee of $100.00.
U.S. Attorney Strasser reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of United States Customs and Border Protection, Immigration and Customs Enforcement, Homeland Security Investigations, and Social Security Administration agents in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
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Merced Man and Mexican National Indicted for Illegally Growing Marijuana in the Shasta-Trinity National ForestRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment Thursday against Genaro L. Merino, 34, of Merced, and Manuel S. Cardenas, 32, of San Luis Potosi, of Mexico, charging them with conspiring to manufacture at least 1,000 marijuana plants, manufacturing at least 1,000 marijuana plants, and depredation of public land and resources, U.S. Attorney McGregor W. Scott announced.
According to court documents, Merino and Cardenas are accused of carrying out an illegal marijuana grow between April 14 and August 4, 2019. Approximately 1,900 plants were located at two grow sites in the Shasta-Trinity National Forest near the town of Helena.
This case is the product of an investigation by the U.S. Forest Service, the California Department of Fish and Wildlife, and the Trinity County Sheriff. Assistant U.S. Attorney Michael W. Redding is prosecuting the case.
If convicted, Merino and Cardenas faces a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
McLaughlin Man Sentenced to Federal Prison for Second Degree Murder of SonRead the Press Release
United States Attorney Ron Parsons announced that a McLaughlin, South Dakota, man convicted of Second Degree Murder was sentenced on August 26, 2019, by U.S. District Jude Charles B. Kornmann.
Kenneth William Chase, age 32, was sentenced to 210 months in federal prison, to be followed by 4 years of supervised release. He was ordered to pay $100 to the Federal Crime Victims Fund.
According to court documents, the murder took place in Chase’s and the victim’s residence in Corson County on April 5 or 6, 2018. Chase committed the murder upon a minor victim, his infant son, by inflicting traumatic head injuries to the victim.
The investigation was conducted by the Federal Bureau of Investigation, the Bureau of Indian Affairs – Office of Justice Services, and the Standing Rock Sioux Tribe’s Law Enforcement. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
Chase was remanded to the custody of the U.S. Marshals Service.
Man Sentenced for Trafficking Heroin-Fentanyl Substances in Madison AreaRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Corey D. Douglas, 28, of Chicago was sentenced yesterday by U.S. District Judge James D. Peterson to three years in federal prison for conspiring to distribute fentanyl-laced heroin in the Madison area during May through November 2018. Douglas pleaded guilty to this charge on June 5, 2019.
Douglas was arrested by Dane County Narcotics Task Force officers on November 29, 2018, after he left a residence in Fitchburg that police knew from an investigation served as a stash house for co-conspirator Arthur Jones. Douglas was in possession of almost 12 grams of heroin-fentanyl substances pre-packaged for street-level sale at the time he was stopped, while more than 80 grams of additional heroin-fentanyl was found at the stash house in a search conducted by police. Douglas’s co-conspirator, Arthur Jones, is scheduled to be sentenced on September 10.
In sentencing Douglas, Judge Peterson said he was taking into account Douglas’s lack of prior criminal history weighed against the great dangerousness of the fentanyl-laced heroin that Douglas was distributing in the community. Peterson said the offense deserved a significant sentence despite Douglas’s relatively clean criminal history because it was a crime that Douglas engaged in on a repeated basis over the time of the conspiracy, “exploiting other people’s illness” in drug addiction.
The charges against Douglas and Jones were the result of an investigation conducted by the Dane County Narcotics Task Force and Drug Enforcement Administration. The prosecution of the case has been handled by Assistant U.S. Attorney Robert Anderson.
MS-13 Member Sentenced to More Than 24 Years in Federal Prison for Conspiring to Participate in a Violent Racketeering Enterprise, Including MurderRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis today sentenced Kevin Alexis Hernandez-Guevara, aka “Stop,” age 22, a citizen of El Salvador illegally residing in Elizabethtown, New Jersey, to 292 months in federal prison, followed by five years of supervised release, for a federal racketeering conspiracy relating to his participation in the activities of the gang known as La Mara Salvatrucha, or MS-13, including murder and drug dealing.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Attorney General Brian A. Benczkowski for the Justice Department’s Criminal Division; Assistant Director in Charge Timothy R. Slater of the Federal Bureau of Investigation - Washington Field Office; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI) Baltimore Field Office; Special Agent in Charge Jesse Fong of the U.S. Drug Enforcement Administration (DEA) Washington Field Division; Acting Chief Marcus Jones of the Montgomery County Police Department; Chief Henry P. Stawinski III of the Prince George’s County Police Department; Chief Amal Awad of the City of Hyattsville Police Department; Prince George’s County State’s Attorney Aisha N. Braveboy; and Montgomery County State’s Attorney John McCarthy.
“MS-13 gang members, like Hernandez-Guevara, show little regard for life, using violence to hurt, to rob, and to kill. We will continue our relentless pursuit of violent MS-13 gang members to stop this type of violence and make our neighborhoods safe,” said U.S. Attorney Robert K. Hur.
According to the plea agreement, MS-13 is a gang composed primarily of immigrants or descendants of immigrants from El Salvador, with members operating in the State of Maryland, including Montgomery County, Prince George’s County, and Frederick County, and throughout the United States. Branches or “cliques” of MS-13 often work together cooperatively to engage in criminal activity and to assist one another in avoiding detection by law enforcement. MS-13 members and associates are required to commit acts of violence within the gang and against rival gangs. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
Pursuant to his plea agreement, Hernandez-Guevara admitted that from at least July 2016, he was a member and associate of the Sailors Clique of MS-13. Hernandez-Guevara admitted to participating in numerous acts in furtherance of the racketeering conspiracy.
For example, according to the plea agreement, on or about July 29, 2016, Hernandez-Guevara and three other members and associates of MS-13 planned and conspired to murder an individual, who was believed to be a member of a rival gang. On July 29, 2016, pursuant to that plan, Hernandez-Guevara and other MS-13 members and associates lured the victim to a secluded area in Hyattsville, Maryland. One of the MS-13 members and associates shot at the victim, and missed. Hernandez-Guevara collected the fired shell casings from the gunshots fired by Hernandez-Guevara’s co-conspirator. Multiple MS-13 members and associates then assaulted and stabbed the victim with the intention of killing him. The victim died as a result of injuries sustained during this attack, which included 61 sharp-force injuries.
Also, according to the plea agreement, on or about Aug. 9, 2016, in Hyattsville, Hernandez-Guevara and other MS-13 members and associates planned and attempted to rob two individuals of a pound of marijuana that they were going to sell to Hernandez-Guevara and his co-conspirators. During the attempt, the two individuals resisted. In the course of the struggle, the two individuals were shot, stabbed, and sustained serious, permanent, and life-threatening bodily injuries. Hernandez-Guevara and another co-conspirator were also shot.
Hernandez-Guevara also admitted to distributing less than one kilogram of marijuana for and on behalf of the Sailors Clique. His activities included receiving and distributing marijuana and proceeds from the sale of marijuana.
United States Attorney Robert K. Hur and Assistant Attorney General Brian Benczkowski commended the FBI, HSI, the DEA, the Prince George’s County Police Department, the Montgomery County Police Department, the Prince George’s State’s Attorney’s Office, the City of Hyattsville Police Department, and the Montgomery County State’s Attorney’s Office for their investigation. Mr. Hur and Mr. Benczkowski thanked Assistant U.S. Attorneys William D. Moomau, Catherine K. Dick, and Trial Attorney Julie Finocchiaro of the Criminal Division’s Organized Crime and Gang Section, who prosecuted this case.
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Man from Columbus, N.m. Sentenced to 16 Years in Federal Prison for Hostage Taking, Transportation of Illegal Aliens, and Other OffensesRead the Press Release
ALBUQUERQUE- Josias Garcia, 25, of Columbus, N.M., was sentenced in federal court in Las Cruces, N.M., on Tuesday to 16 years in federal prison for hostage taking, transportation of illegal aliens, smuggling, drug possession, firearms, and witness intimidation offenses.
Garcia previously pleaded guilty on February 26, 2019, to the following offenses: three counts of hostage taking; one count of conspiracy to take a hostage, three counts of conspiracy to transport illegal aliens; one count of brandishing a firearm during or in relation to a drug trafficking crime; four counts of being a felon in possession of a firearm; two counts of possession of marijuana with intent to distribute; one count of conspiracy to distribute marijuana; one count of conspiracy to smuggle goods from the United States; one count of transportation of goods intended to be smuggled; one count of attempt to smuggle goods from the United States; and four counts of tampering with a witness by intimidation or threat.
In Garcia’s plea agreement, Garcia admitted picking up illegal aliens at the United States-Mexico border on November 6, 2017, and transporting them to a mobile home in Columbus, N.M., where he, and another person, held them as hostages for four days. Garcia also admitted that he intimidated these hostages with threats of violence, including brandishing a firearm he was forbidden to possess because of a previous felony conviction, and demanding the families of the hostages sent money for their release. Garcia also admitted possessing marijuana at the mobile home with intent to distribute. He also admitted traveling to El Paso, Tex., to buy firearms he intended to smuggle to Mexico. However, he did not because he encountered officers with U.S. Customs and Border Protection (CBP) as he attempted to leave the country. Garcia also admitted trying to intimidate witnesses against him after his arrest by using threats and violence.
Special agents with Homeland Security Investigations investigated the case. Assistant U.S. Attorneys Luis A. Martinez, Dustin C. Segovia, and Richard C. Williams are prosecuting the case.
Man from Columbus, N.m. Sentenced to 16 Years in Federal Prison for Hostage Taking, Transportation of Illegal Aliens, and Other OffensesRead the Press Release
ALBUQUERQUE- Josias Garcia, 25, of Columbus, N.M., was sentenced in federal court in Las Cruces, N.M., on Tuesday to 16 years in federal prison for hostage taking, transportation of illegal aliens, smuggling, drug possession, firearms, and witness intimidation offenses.
Garcia previously pleaded guilty on February 26, 2019, to the following offenses: three counts of hostage taking; one count of conspiracy to take a hostage, three counts of conspiracy to transport illegal aliens; one count of brandishing a firearm during or in relation to a drug trafficking crime; four counts of being a felon in possession of a firearm; two counts of possession of marijuana with intent to distribute; one count of conspiracy to distribute marijuana; one count of conspiracy to smuggle goods from the United States; one count of transportation of goods intended to be smuggled; one count of attempt to smuggle goods from the United States; and four counts of tampering with a witness by intimidation or threat.
In Garcia’s plea agreement, Garcia admitted picking up illegal aliens at the United States-Mexico border on November 6, 2017, and transporting them to a mobile home in Columbus, N.M., where he, and another person, held them as hostages for four days. Garcia also admitted that he intimidated these hostages with threats of violence, including brandishing a firearm he was forbidden to possess because of a previous felony conviction, and demanding the families of the hostages sent money for their release. Garcia also admitted possessing marijuana at the mobile home with intent to distribute. He also admitted traveling to El Paso, Tex., to buy firearms he intended to smuggle to Mexico. However, he did not because he encountered officers with U.S. Customs and Border Protection (CBP) as he attempted to leave the country. Garcia also admitted trying to intimidate witnesses against him after his arrest by using threats and violence.
Special agents with Homeland Security Investigations investigated the case. Assistant U.S. Attorneys Luis A. Martinez, Dustin C. Segovia, and Richard C. Williams are prosecuting the case.
Lorain man indicted for accessing his employer’s computer system after learning he would be fired and shutting down the web site, blocking access to emailRead the Press Release
A Lorain man was indicted in federal court for accessing his employer’s computer system after learning he would be fired and shutting down the web site, blocking access to email and taking other unauthorized actions.
Austyn Keaton, 28, was charged with one count of damaging protected computers.
According to the indictment:
Keaton was the sole information technology employee for a company located in Avon Lake. Keaton gained access to emails of the company’s finance director and other employees. He learned the company planned to hire an outside vendor to take over IT operations from Keaton.
Keaton was scheduled to meet with the vendor on February 25, 2019, in which the vendor was to ask Keaton to transfer access to the company’s IT systems.
On the same day, Keaton accessed the finance director’s email, in which he learned the company planned to offer Keaton a severance package and terminate his employment.
Keaton then took steps to lock the company’s employees out of their email, take its web site offline, block the company’s employees from accessing the company’s customer relationship management system, and other unauthorized actions.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s 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.
This case was investigated by the Federal Bureau of Investigation, Elyria Police Department and Avon Police Department. It is being prosecuted by Assistant U.S. Attorney Daniel Riedl and Special Assistant U.S. Attorney Matthew Kern.
An indictment is only an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Lawrence Man Is Latest to Plead Guilty to Participating in Fentanyl Trafficking ConspiracyRead the Press Release
Concord – United States Attorney Scott W. Murray announced that Eduard Amparo, 47, of Lawrence, Massachusetts, pled guilty to participating in a fentanyl trafficking conspiracy. Amparo is the latest defendant to plead guilty to participating in this substantial drug trafficking case.
In April of 2018, U.S. Attorney Murray announced that 34 individuals were charged with participating in a conspiracy to distribute over 400 grams of fentanyl. According to court documents and statements made in court, a drug trafficking organization that authorities allege was led by Sergio Martinez employed numerous individuals to sell fentanyl to customers from various New England states, including New Hampshire. Some defendants who worked for the Martinez organization distributed multiple 200-gram bags of fentanyl and returned thousands of dollars in proceeds to the organization daily.
The following individuals have pleaded guilty and are awaiting sentencing. They include:
- Miguel Alvarez, 38, of Haverhill, MA, pled guilty on January 31, 2019. His sentencing is scheduled for October 15, 2019;
- Eduard Amparo, 47, of Lawrence, MA, pled guilty on August 29, 2019. His sentencing is scheduled for December 16 2019;
- Edward Brailey Delacruz, 25, of Methuen, MA, pled guilty on June 24, 2019. His sentencing is scheduled for December 16, 2019;
- Edward Brito, 32, of Lawrence, MA, pled guilty on July 10, 2019. His sentencing is scheduled for November 4, 2019;
- Luz DeJesus, 34, of Lawrence, MA, pled guilty on January 31, 2019. Her sentencing is scheduled for November 15, 2019;
- Juan Dimel Gil Castillo, 25, of Lawrence, MA, pled guilty on February 6, 2019. His sentencing is scheduled for September 19, 2019;
- Ramon Gil Huma, 26, of Lawrence, MA, pled guilty on March 11, 2019. His sentencing is scheduled for November 12, 2019;
- Henry Marte, 22, of Lawrence, MA, pled guilty on January 25, 2019. His sentencing is scheduled for November 4, 2019;
- Raulin Martinez, 37, of Lawrence, MA, pled guilty on December 7, 2018. His sentencing is scheduled for October 9, 2019;
- Jared Ortega-Peguero, 26, of Lawrence, MA, pled guilty on December 6, 2018. His sentencing is scheduled for October 18, 2019;
- Suhey Perez, 40, of Lawrence, MA, pled guilty on May 2, 2019. Her sentencing is scheduled for November 18, 2019;
- Luz Perez DeMartinez, 27, of Lawrence, MA, pled guilty on February 12, 2019. Her sentencing is scheduled for November 19, 2019;
- Wagner Pimentel, 29, of Lawrence, MA, pled guilty on March 15, 2019. His sentencing is scheduled for October 17, 2019;
- Luis Angel Polanco Huma, 23, of Lawrence, MA, pled guilty on August 14, 2019. His sentencing is scheduled for November 27, 2019.
- Jorge Rodriguez, 22, of Methuen, MA, pled guilty on February 28, 2019. His sentencing is scheduled for November 15, 2019;
- Luis Antonio Salomon Polanco, 21, of Lawrence, MA, pled guilty on March 11, 2019. His sentencing is scheduled for November 18, 2019;
- Juan Rafael Tejada-Jiminez, 39, of Lawrence, MA, pled guilty on November 29, 2018. His sentencing is scheduled for October 15, 2019.
In addition to the defendants listed above, nine other defendants have pleaded guilty and already have been sentenced. An additional defendant, Fernand Miranda, 24, of Haverhill, MA, is expected to plead guilty. Four defendants remain fugitives.
Three other defendants, Sergio Martinez, 29, of Lawrence, MA, Steven Lessard, 32, of Lowell, MA, and Julio Colon, 25, of Lawrence, MA, are scheduled to go to trial on October 1, 2019. These defendants are presumed innocent unless and until they are proven guilty.
“Interstate fentanyl trafficking poses a serious threat to the health and safety of the citizens of New Hampshire,” said U.S. Attorney Murray. “We will continue to coordinate with our law enforcement partners to dismantle the drug trafficking organizations that are responsible for bringing this deadly drug into the Granite State.”
This investigation was conducted by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
The case was a collaborative investigation that involved the DEA; the New Hampshire State Police; the Hillsborough County Sheriff’s Office; the Nashua Police Department; the Massachusetts State Police; the Massachusetts Attorney General’s Office; the New Hampshire Attorney General’s Office; the Essex County District Attorney’s Office; the Internal Revenue Service; Immigration and Customs Enforcement’s Homeland Security Investigations; United States Customs and Border Protection Boston Field Office; the United States Marshals Service; the United States Department of State’s Diplomatic Security Service; the Manchester Police Department; the Lisbon Police Department; the Littleton Police Department; the Seabrook Police Department; the Haverhill (MA) Police Department; the Methuen (MA) Police Department; the Lowell (MA) Police Department; and the Maine State Police.
The case is being prosecuted by Assistant United States Attorneys Georgiana L. Konesky and Seth R. Aframe.
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L.A. County Man Arrested on Federal Complaint Charging Him with Transporting Teenager Across State Lines to Engage in ProstitutionRead the Press Release
SANTA ANA, California – A Los Angeles County man has been arrested on a federal criminal complaint charging him with transporting a teenage girl in interstate commerce so she could work as a prostitute in Southern California, Nevada and Arizona.
Christian Alexander Augustus, 23, a.k.a. “Sir Ceeco,” was arrested in Stockton on Tuesday. He made his initial appearance in United States District Court in Sacramento on August 28, and was ordered detained pending trial. He remains in federal custody in Sacramento and will be transferred to this district at a later date to face the charges against him.
According to an affidavit filed Monday with the criminal complaint in this case, the victim was a 16-year-old runaway from Orange County who met Augustus in Los Angeles in December 2018 and he had been her trafficker until she fled from him in July 2019. Prior to the victim fleeing, Augustus allegedly took her to Los Angeles, Santa Ana, Las Vegas and Phoenix, where she worked for him as a prostitute and would give him all the money she made. Augustus forced the victim to work on the streets and advertised her services on the internet, the affidavit states
The victim said Augustus would beat her for not bringing him enough money and later for attempting to flee, according to the affidavit. The victim said when she tried to flee Augustus in Phoenix on July 1, he beat her so severely that she suffered two black eyes, a bruised rib, and swelling to face, the affidavit states. The victim fled Augustus on July 8 and said he later contacted her and threatened to kill her and her family, according to the affidavit.
If convicted of the charge, Augustus would face a statutory maximum sentence of life in federal prison and a mandatory minimum sentence of 10 years in federal prison.
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This matter was investigated by the Orange County Human Trafficking Task Force (OCHTTF), which is comprised of local law enforcement agencies, including U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and the U.S. Attorney’s Office for the Central District of California. The Stockton Police Department and the Stockton HSI office provided substantial assistance to this case via their arrest of Augustus on Monday.
This case is being prosecuted by Assistant United States Attorney Jake D. Nare of the Santa Ana Branch Office.
The Orange County Human Trafficking Task Force core mission is to use a victim-centered and trauma-informed approach toward the goal of combating human trafficking in Orange County, making the recovery of juvenile victims its top priority.
KC Man Indicted for Illegal Firearms, MethRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man has been indicted by a federal grand jury for illegally possessing almost two kilograms of methamphetamine and four firearms.
Jonathan D. Beaton, 41, was charged in a three-count indictment returned by a federal grand jury in Kansas City, Mo., on Thursday, Aug. 29. The indictment replaces a federal criminal complaint filed against Beaton on Aug. 8, 2019.
Today’s indictment charges Beaton with one count of being a felon in possession of firearms, one count of possessing methamphetamine with the intent to distribute, and one count of possessing firearms in furtherance of a drug-trafficking crime.
According to an affidavit filed in support of the original criminal complaint, Beaton was stopped by law enforcement officers this summer.
On Aug. 7, 2019, detectives with the Jackson County Drug Task Force and the Independence Police Department conducted surveillance of Beaton as he visited the residence of a known methamphetamine trafficker. Detectives followed Beaton (who had an active warrant for his arrest) from the residence and stopped his vehicle. When Beaton got out of the vehicle, an officer saw several large plastic bags on the driver’s seat that contained methamphetamine, and placed Beaton under arrest.
An officer searched Beaton and found 11 grams of methamphetamine in his pocket. An officer searched Beaton’s vehicle and found four gallon-sized clear plastic bags, which contained a total of nearly 1.8 kilograms of methamphetamine, and $1,228. The officer also found four firearms in the vehicle – two Kimber .45-caliber pistols, a Sig Sauer 9mm pistol, and a loaded Smith & Wesson .40-caliber pistol.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Beaton has three prior felony convictions for possession of a controlled substance, and prior felony convictions for being a felon in possession of a firearm, tampering, burglary, and escape.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Emily A. Morgan. It was investigated by the Blue Springs, Mo., Police Department, the Independence, Mo., Police Department, and the Jackson County Drug Task Force.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Jury Convicts Shamo of Leading Drug Trafficking NetworkRead the Press Release
SALT LAKE CITY – A federal jury in Salt Lake City returned guilty verdicts Friday afternoon finding Aaron Michael Shamo guilty of organizing and directing a drug trafficking organization that imported fentanyl and alprazolam from China and used the drugs to manufacture fake oxycodone pills made with fentanyl and counterfeit Xanax tablets.
Shamo was found guilty on 12 of the 13 counts in the indictment. The jury did not make a decision on the aiding and abetting the distribution of fentanyl resulting in death count.
“Aaron Shamo knew the nation was on fire with opioids and he poured fuel on the flames, over and over and over, never getting burned himself, but causing pain and misery wherever his fire spread. Aaron Shamo could be considered the face of the opioid epidemic. He was a profiteer, callously making millions of dollars and living a life of leisure while exploiting those suffering through opioid addiction,” Assistant U.S. Attorney Vernon Stejskal said in his closing argument Thursday afternoon. The jury began deliberations Thursday afternoon.
U.S. Attorney for Utah John W. Huber, Utah Attorney General Sean Reyes, Special Agent in Charge Steven Cagen of Homeland Security Investigations in Denver, DEA District Agent in Charge Brian Besser, Special Agent in Charge Charles L. Grinstead of the FDA’s Office of Criminal Investigations Kansas City Field Office, Special Agent in Charge Tara Sullivan of the IRS Criminal Investigation Las Vegas Field Office, and Acting Inspector in Charge Jessica Wagner of the U.S. Postal Inspection Service’s Phoenix Division, announced the jury verdict today.
“The opioid crisis has devastated individuals, families, and entire communities across the nation. Aaron Shamo controlled and led a highly profitable organization that delivered fentanyl-laced counterfeit pills to every state in the union. Though his customers remained faceless on the dark web, their despair was real. Shamo profited off that despair and a jury of his peers has held him accountable,” U.S. Attorney John W. Huber said today.
“We may never know the full extent of the lives lost or the families harmed by Aaron Shamo’s deadly enterprise as a global drug dealer. Shamo’s conviction today is a significant victory in the ongoing war on illegal opioids in our state and nation. Utahns owe a debt of gratitude to all involved in taking down this predator,” Utah Attorney General Sean D. Reyes said today.
Shamo and his co-conspirators purchased pill presses to manufacture pills so they would appear to be legitimate pharmaceutical drugs. Shamo then distributed the controlled substances to other individuals for distribution in all 50 states using their storefront, PHARMA-MASTER, on the Dark Net marketplace AlphaBay and the U.S. mail. Federal law enforcement agents and prosecutors say an undercover purchase of 100 oxycodone is a substantial step in an investigation. Shamo sold half a million pills – or more.
"The rapid emergence of extremely potent and highly addictive synthetic opioids has drastically changed the landscape for both drug addiction and drug enforcement. Fentanyl and its many analogues are lethal in just milligrams. Any criminal exploitation of this powerful drug poses a significant public safety threat to our community, to those struggling with opioid addiction, and to the many first responders who diligently strive to keep us safe. The DEA is committed to aggressively identify and investigate any person or organization trafficking in or clandestinely manufacturing synthetic opioids for profit.
“The comprehensive investigation into the Aaron Shamo counterfeit pill manufacturing network shows how dangerous these enterprises are. The subsequent conviction of Mr. Shamo proves that those who operate with blatant disregard for public safety will bear the full weight of the law and be held accountable for their crimes," Brian S. Besser, DEA District Agent in Charge, said today.
“A major narcotics and money laundering operation was dismantled due to the technological expertise of our agents and law enforcement partners,” said Steven Cagen, Special Agent in Charge of U.S. Homeland Security Investigations in Denver. “Criminals who ruthlessly seek profits and personal gain at the expense of victims in our communities can’t hide in the dark web. We remain steadfast in our resolve to bring to justice those that push dangerous drugs into our neighborhoods and contribute to the epidemic of opioid addiction in our country.”
“The illegal manufacture and distribution of opioids can result in overdoses and deaths, further fueling the national crisis,” said Special Agent in Charge Charles L. Grinstead, FDA Office of Criminal Investigations Kansas City Field Office. “The FDA is committed to doing our part to disrupt and dismantle illegal prescription drug manufacturing and distribution networks, including those that import raw materials from overseas to create counterfeit drugs, and misuse the internet to distribute those drugs with reckless disregard of the risk to public health and safety.”
“Trafficking opioids through the dark web enabled Mr. Shamo and his organization to profit and launder millions through this illicit activity,” said Special Agent in Charge Tara Sullivan, IRS Criminal Investigation. “Today’s verdict is just, and shows IRS Criminal Investigation’s continued effort in prosecuting those who bring harm to our community.”
“Postal Inspectors are committed to keeping the U.S. Mail safe for all. As criminals change their methods, we continue to adapt, capture, and hold the perpetrators accountable. Along with our excellent law enforcement partners, we will continue to show criminals the dark web is never truly anonymous,” stated Acting Inspector in Charge Jessica Wagner of the U.S. Postal Inspection Service, Phoenix Division.
Evidence presented at trial showed that Shamo established himself as the CEO of a nationwide drug distribution network. In closing arguments, prosecutors said Shamo became the person he set out to be – the Pharma Master. Evidence at trial showed Shamo did the things leader and organizers do, prosecutors said. He was in control of the majority of the functions of the enterprise. He established the dark web storefront, hired employees, took charge of marketing and product placement. He was a drug dealer to other drug dealers. He had the contacts in China and ordered the fentanyl. Most significantly, investigators were led to Shamo as they followed the proceeds of the drug trafficking organization. He had sole access to incoming bitcoin payments from customers. Shamo referred to the organization as his baby and his empire, prosecutors said in closing arguments today.
Evidence showed Shamo developed the fentanyl product through a dangerous “trial and error” process as he distributed it to individuals across the country. Experts say 1 milligram of fentanyl in a pill can have dangerous consequences up to and including death.
Evidence showed Shamo received messages from customers that they were getting sick. His response, prosecutors said, was to send more pills to the complaining customers. There was no shortage of fake pain pills. Co-defendants in the case, who were responsible for packaging and shipping, used a vacuum to clean up pills from the floor because they believed it was not worth their time to pick them up because of the volume of pills they were manufacturing.
The jury convicted Shamo, 29, of Cottonwood Heights, Utah, of engaging in a continuing criminal enterprise, three counts of aiding and abetting the importation of a controlled substance, possession of a controlled substance with intent to distribute, manufacture of a controlled substance, and two counts of knowing and intentional adulteration of drugs while held for sale. The jury also found Shamo guilty of aiding and abetting the use of the U.S. Mail in furtherance of a drug trafficking offense, conspiracy to commit money laundering, money laundering promotion and concealment, and engaging in monetary transactions in property derived from specified unlawful activity.
Sentencing in the case will be Dec. 3, 2019, at 2:30 p.m. in U.S. District Judge Dale A. Kimball’s courtroom. Shamo faces a potential mandatory-minimum life sentence. He remains in the custody of U.S. Marshals.
Sentencings are pending for co-conspirators in the case, who reached plea agreements with federal prosecutors.
Assistant U.S. Attorney Vernon Stejskal of the U.S. Attorney’s Office and Special Assistant U.S. Attorneys Michael Gadd and Kent A. Burggraaf prosecuted the case. Gadd and Burggraaf are Assistant Attorneys General in the Utah Attorney General’s Office. Special agents of the U.S. Department of Homeland Security Investigations, DEA, IRS-Criminal Investigation, the Food and Drug Administration Office of Criminal Investigations, and Postal Inspectors with the U.S. Postal Inspection Service investigated the case.
Jacksonville Tax Return Preparer Pleads Guilty to More Than $1 Million in Tax FraudRead the Press Release
Jacksonville, Florida – Nicole Johnson (37, Jacksonville) has pleaded guilty to aiding and assisting in the filing of a false tax return. She faces a maximum penalty of three years in federal prison.
According to the plea agreement, Johnson was the owner and operator of Financial Asset Tax Service, which offered tax return preparation services. For the tax years 2014, 2015, 2016, and 2017, Johnson prepared returns for individuals in which she falsified the amounts of deductions and tax credits owed to the taxpayers. As a result, those taxpayers received undeserved tax refunds. Johnson fraudulently claimed the General Business Credit and False Tax Credit for taxpayers who were not entitled to them, and inflated itemized deductions. As a result of the false returns prepared by Johnson, the IRS issued more than $1.3 million in undeserved refunds. Johnson has agreed to repay the IRS that amount in restitution.
This case was investigated by the Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorney David B. Mesrobian.
Individual Who Planned Attack in Queens Charged with Attempting to Provide Material Support to ISISRead the Press Release
A criminal complaint filed today in federal court in Brooklyn charged Awais Chudhary, 19, a naturalized U.S. citizen born in Pakistan, with attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization. Chudhary was arrested yesterday, and made his initial appearance this afternoon before United States Magistrate Judge James Orenstein. Chudhary was ordered held without bail.
“The defendant allegedly planned to conduct a deadly attack in New York on behalf of ISIS,” stated Assistant Attorney General for National Security John C. Demers. “The National Security Division, working with our partners, will remain vigilant in our efforts to identify, disrupt, and hold accountable those who would conduct a terrorist attack on our soil. I want to thank the agents, analysts, and prosecutors who are responsible for this case and prevented this defendant from carrying out his deadly plans.”
“As alleged, Awais Chudhary planned to kill innocent civilians on behalf of ISIS and record the bloodshed in the hope of inspiring others to commit attacks,” stated United States Attorney Donoghue. “This Office, together with the FBI, the NYPD and all members of the FBI Joint Terrorism Task Force will continue working tirelessly to identify ISIS sympathizers like the defendant and prevent them from carrying out their murderous intentions.”
“There’s no doubt Chudhary allegedly wanted to make headlines by attacking innocent people going about their daily lives. Thanks to the diligent work of the agents, analysts, and detectives on the FBI New York JTTF, the only thing to report today is his arrest, and the only photos Chudhary will be featured in are the ones taken in our prisoner processing room prior to his arrival in federal prison,” stated FBI Assistant Director-in-Charge Sweeney.
“Awais Chudhary had accepted the call from ISIS to kill fellow New Yorkers in the city he called home,” stated NYPD Commissioner O’Neill. “He had carefully planned, conducted reconnaissance, picked a target, and was in the process of obtaining the weapon. All he has left to do was to strike. The FBI agents and NYPD detectives of the JTTF should be commended for the disruption of this plot. Their work almost certainly saved lives.”
As alleged in the complaint, in August 2019, Chudhary communicated to undercover law enforcement officers through text messaging that he planned to conduct a stabbing or bombing attack on behalf of ISIS. Chudhary also wanted to record his attack to inspire others to commit similar acts of violence. Chudhary identified the pedestrian bridges over the Grand Central Parkway to the Flushing Bay Promenade (the Promenade) and the World’s Fair Marina (the Marina) as locations for the attack. On Aug. 23, 2019, Chudhary told an undercover agent that he intended to use a knife “because that’s what he knows,” but if the undercover agent could instruct him on how to build a bomb, he would consider using an explosive device at a “mini-bridge over a busy road with many cars.” On the same day, Chudhary texted another undercover agent a screenshot of a document entitled, “Islamic State” with the subheadings: “Places to Strike,” “The Ideal Knife” and “Knives to Avoid.” The instructions included a diagram of the human body with directions where to stab a victim. Chudhary also sent the undercover agent videos of pedestrian bridges over the Grand Central Parkway and stated that he was considering throwing explosives over the fencing at vehicles passing below.
Chudhary conducted several reconnaissance trips to the targeted locations. On Aug. 24, 2019, FBI agents surveilled Chudhary enter the Promenade in the vicinity of 27th Avenue and Ditmars Boulevard and take videos and photos with his cellphone of various locations, as well as the Marina, a nearby gas station, a donut shop and a security camera near the donut shop.
Between Aug. 25 and Aug. 26, 2019, Chudhary ordered online a tactical knife, a mask, gloves, and a cellphone chest and head strap to facilitate his recording of the attack. Chudhary was arrested yesterday as he attempted to retrieve the items from an online vendor’s retail location in Queens.
The charge in the complaint is an allegation, and the defendant is presumed innocent unless and until proven guilty. If convicted, Chudhary faces a maximum sentence of 20 years’ imprisonment.
The government’s case is being handled by the United States Attorney’s Office for the Eastern District of New York’s National Security and Cybercrime Section. Assistant United States Attorney Jonathan Algor and Special Assistant United States Attorney Elizabeth A. Hanft are in charge of the prosecution, with assistance from Trial Attorney Kevin C. Nunnally of the National Security Division’s Counterterrorism Section.
Illegal Alien Sentenced to Two Years in Federal Prison for Illegally Re-Entering the United StatesRead the Press Release
Ocala, Florida – Senior United States District Judge James D. Whittemore, Jr. has sentenced Raul Alfaro-Muniz (44, Ocala) to 24 months in federal prison for illegally re-entering the United States after previously being deported. Alfaro-Muniz had pleaded guilty on April 9, 2019.
According to the facts described in court, on February 4, 2019, Alfaro-Muniz was arrested for battery in Marion County. Agents soon discovered that Alfaro-Muniz had previously been deported from the United States four times. He is a citizen of Mexico and is illegally in the United States. After Alfaro-Muniz serves his prison sentence, he will be deported from the United States.
This case was investigated by U.S. Immigration and Customs Enforcement. It was prosecuted by Assistant United States Attorney William S. Hamilton.
Illegal Alien Sentenced to Seven Years in Federal Prison for Trafficking MethamphetamineRead the Press Release
Ocala, Florida – Senior United States District Judge James D. Whittemore, Jr. has sentenced Missael Gonzalez Terrazas (23, Ocala) to seven years in federal prison for possessing at least 500 grams of methamphetamine with the intent to distribute it. Terrazas had pleaded guilty on May 28, 2019.
According to the facts described in court, Terrazas was apprehended by law enforcement while in possession of more than four kilograms of pure methamphetamine and $9,000 in cash. Terrazas is a citizen of Mexico and is residing in the United States illegally. After serving his prison sentence, he will be deported from the United States.
This case was investigated by the Department of Homeland Security, Homeland Security Investigations. It was prosecuted by Assistant United States Attorney William S. Hamilton.
Illegal Alien Sentenced to 17 Months in Federal Prison for Illegal Re-EntryRead the Press Release
Ocala, Florida – Senior United States District Judge James D. Whittemore, Jr. has sentenced Jesus Gonzalez-Villanueva (35, Ocala) to 17 months in federal prison for illegally re-entering the United States after previously being deported. Gonzalez-Villanueva had pleaded guilty on May 16, 2019.
According to the facts described in court, in March 2019, Gonzalez-Villanueva was cited for a traffic offense in Lake County. Agents soon discovered that Gonzalez-Villanueva had previously been deported from the United States on two occasions and had previously been convicted of aggravated battery with a deadly weapon. Gonzalez-Villanueva is a citizen of Mexico and is illegally in the United States. After he serves his prison sentence, he will be deported from the United States.
This case was investigated by U.S. Immigration and Customs Enforcement. It was prosecuted by Assistant United States Attorney William S. Hamilton.
Hercules, California Resident Indicted for Her Role in Business Email Compromise Scheme Victimizing Eastern District of Louisiana CompanyRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that SONOVAH JUDITH HILLMAN, age 29, a resident of Hercules, California, was charged today by a federal grand jury seated in the Eastern District of Louisiana in a two-count Indictment with conspiracy to commit wire fraud, in violation of Title 18, United States Code, Sections 1343 and 1349, and conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956(h).
According to the indictment, HILLMAN acted as a “money mule” in a scheme to victimize Company A, a floating crane and stevedore company headquartered in Convent, Louisiana, within the Eastern District of Louisiana. HILLMAN’s co-conspirator(s) engaged in a “business email compromise” scheme to obtain access without authorization to the email accounts of one or more employees of Company A for the purpose of obtaining private data, including usernames, passwords, bank account information, and the content of email accounts. After gaining access to an email account of a Company A employee, the individual(s) arranged to have emails in the account forwarded to a separate email account under their control. Thereafter, HILLMAN’s co-conspirators registered a domain name similar to Company A’s domain (for example, “Company A” instead of “Company A”) and, pretending to be representatives of Company A, sent emails to Company A’s customers, including Company B. The false emails stated that there had been an audit of Company A’s bank accounts and that Company A’s customers should remit funds owed to Victim A to a new bank account. On about May 10, 2017, HILLMAN’s co-conspirators contacted one of Company A’s customers (Company B) via email and, pretending to be employees of Company A, instructed that Company B should remit funds owed to Company A, approximately $92,007.85, to a Bank of America account that belonged to HILLMAN. According to the Indictment, after Company B sent the funds to HILLMAN’s account, HILLMAN engaged in a series of transactions over the next five days either to transfer the money to others or spend the money on personal items, including a $4,000 Disney cruise and multiple airline flights.
If convicted, HILLMAN faces a maximum term of forty (40) years in prison, a fine of up to $750,000.00, up to three (3) years of supervised release after imprisonment, and a mandatory $100 special assessment per count.
U. S. Attorney Strasser reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the United States Department of Homeland Security – Homeland Security Investigations and the United States Coast Guard Investigative Service. Assistant United States Attorney Jordan Ginsberg, supervisor of the Public Corruption Unit, is in charge of the prosecution.
Hattiesburg Man with Multiple Felony Convictions Pleads Guilty under Project EJECT to Illegally Possessing FirearmRead the Press Release
Jackson, Miss. – Jordan Reshard Poole, 29, of Hattiesburg, pled guilty yesterday before U.S. District Judge Keith Starrett to being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Kirk Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On July 17, 2017, Poole was involved in a high speed car chase in Lamar County that ultimately resulted in a car crash. Jumping from the car after the collision, Poole attempted to flee and was quickly apprehended by Hattiesburg Police officers. While running, Poole attempted to hide a firearm by throwing it under a parked vehicle. The firearm was recovered and Poole admitted to possessing it. Poole was previously convicted of multiple felonies, including arson and burglary, and prohibited from possessing a firearm.
Poole will be sentenced by Judge Starrett on December 10, 2019 at 10:00 a.m. He faces a maximum penalty of 10 years in prison and a $250,000 fine.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hattiesburg Police Department. It is being prosecuted by Assistant United States Attorney Andrew W. Eichner.
Hartford Felon Sentenced to 30 Months in Prison for Illegal Gun Possession, Violating Supervised ReleaseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DAMON HILL, 40, of Hartford, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 30 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm, and for violating the conditions of his supervised release from a prior federal conviction.
According to court documents and statements made in court, on October 23, 2018, Hill was involved in a motor vehicle accident on Laurel Street in Hartford. Responding officers discovered a loaded Smith and Wesson .40 caliber semi-automatic pistol on the floor in front of the driver’s seat. Hill was the only occupant of the car.
Hill’s criminal history includes multiple state convictions and a 2006 federal conviction for conspiring to distribute cocaine base (“crack”).
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
In September 2006, Hill was sentenced in federal court to 120 months of imprisonment and five years of supervised release. He was released from prison in May 2014, and was on supervised release when he possessed the firearm.
Hill has been detained since his arrest on October 23, 2018. On July 16, 2019, he pleaded guilty to possession of a firearm a by a convicted felon.
This matter was investigated by the FBI’s Connecticut Violent Crime Task Force and the Hartford Police Department. The case was prosecuted by Assistant U.S. Attorney Anastasia E. King.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Gates Man Arrested on Child Pornography ChargesRead 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 Gary Zeitvogel, 45, of Gates, NY, was arrested and charged by criminal complaint with receipt and possession of child pornography. The charges carry a minimum term of 5 years imprisonment, a maximum term of 20 years imprisonment, a period of supervised release of at least 5 years and up to life, and a $250,000 fine.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that the National Center for Missing and Exploited Children (NCMEC) received a cybertip from Facebook.com in June 2019, in which Facebook reported that Zeitvogel appeared to be engaged in sexually explicit conversations with a 15 year-old female. Utilizing information provided by Facebook, NCMEC was able to determine that Zeitvogel and the minor victim were both located in Rochester, NY. NCMEC forwarded the tip to the New York State Police (NYSP), who located the victim and determined that Zeitvogel was already serving a term of probation with the Monroe County Probation Department. Zeitvogel’s probation followed his conviction for Endangering the Welfare of a Child, in which it was alleged that Zeitvogel had allegedly masturbated in front of a child that he was babysitting.
On July 1, 2019, Monroe County Probation Officers, accompanied by Investigators from the NYSP, searched Zeitvogel’s home in Gates. Zeitvogel was found to be in possession of a cell phone, which, in violation of his probation conditions, contained the Facebook application. Zeitvogel was taken into custody at that time. The NYSP later took custody of the phone and executed a search warrant for both the phone and Zeitvogel’s Facebook account. On the phone, the NYSP observed over 1,500 images of child pornography, some of which depicted prepubescent minors, as well as child pornography depicting the minor victim. Zeitvogel’s Facebook account also revealed that he had engaged in sexually explicit conversations with the minor from at least March 2019 through June 2019, and that the two had been in contact at Zeitvogel’s home. The investigation is ongoing and additional charges may be forthcoming.
The defendant made an initial appearance today before United States Magistrate Judge Marian W. Payson, and is being held without bail.The criminal complaint is the result of an investigation by the National Center for Missing and Exploited Children; the New York State Police, under the direction of Major Edward Kennedy; Monroe County Child Protective Services; the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley; and Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Fraudsters Plead Guilty in Federal Court to Their Roles in a Fraudulent Auto Loan Scheme with Losses of More Than $1 MillionRead the Press Release
Baltimore, Maryland – John O’Day, age 48, of Chester and Stevensville, Maryland, and Sarasota, Florida, and Denise White, a/k/a Lisa Young and Lisa White, age 32, of East Point, Georgia, have pleaded guilty to federal charges of bank fraud and aggravated identity theft, in connection with a scheme to defraud at least 20 individuals and five financial institutions of more than $1 million by submitting fraudulent auto loan applications. White pleaded guilty on August 28, 2019, and O’Day pleaded guilty on June 4, 2019.
The guilty pleas were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rodney A. Davis of the Treasury Inspector General for Tax Administration; Acting Chief Marcus Jones of the Montgomery County Police Department; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to their plea agreements, between April 2016 and January 2018, O’Day and his co-conspirators, including White, submitted at least 30 fraudulent applications for auto loans to victim financial institutions falsely listing O’Day as the seller of various motor vehicles, which were listed as collateral. At least 27 of the fraudulent applications, including 12 in which White was involved as a co-conspirator, were successful and resulted in the disbursement of loan checks totaling approximately $1,167,192, which O’Day deposited in his personal bank accounts in Maryland. O’Day provided a portion of the fraud proceeds to co-conspirators, including White. The funds were not used to purchase vehicles. O’Day attempted to obtain additional loan checks totaling at least $246,000 through several unsuccessful auto loan applications.
Most of the applicants listed in the auto loan applications were recruited by O’Day under false promises and pretenses. Specifically, O’Day falsely promised that he would pay off the auto loans within up to 90 days and that the borrowers would not be responsible for loan payments. O’Day made payments in smaller amounts to most of the borrowers to assist them temporarily in making periodic payments on the loans and to compensate them for their involvement in the scheme. However, O’Day eventually stopped assisting borrowers with their payments and failed to pay off the loans as he promised. Most of the borrowers remained liable for the loans and suffered financial hardship as a result. At least some of the fraudulent auto loans were eventually converted to unsecured personal loans with higher interest rates as a result of the applicants’ failure to produce proof that they had purchased the vehicles. Several of the applicants had no knowledge that O’Day and his co-conspirators had submitted applications in their names and never authorized them to do so.
O’Day, White, and other co-conspirators used the personal identification information of at least five individuals, without their knowledge or approval, to submit fraudulent loan applications. At least two of the applications were approved and resulted in the disbursement of loan checks totaling $98,000.
White admitted that she personally submitted some of the fraudulent auto loan applications and contacted the financial institutions under false pretenses in order to get the applications approved. White used multiple e-mail accounts in which she received correspondence from the various financial institutions to which she submitted fraudulent loan applications. Upon O’Day’s request, White also contacted borrowers whom O’Day had recruited in order to assuage their concerns about their involvement with the auto loans, requests made by the financial institutions for proof of ownership of the vehicles, and O’Day’s failure to pay off the loans taken out in their names, falsely identifying herself as “Lisa.” White also fabricated documents in support of the fraudulent loan applications and O’Day’s efforts to negotiate the loan checks.
O’Day admitted that he also laundered the proceeds of the fraudulent auto loan scheme through the purchase of a home. O’Day worked as a loan officer with a mortgage brokerage company located in Maryland between January 2014 and August 2017. Between January and March 2017, O’Day requested that his employer issue him a company check for his closing costs in return for him transferring funds to the company. O’Day then deposited $90,000 in fraud proceeds into a bank account he controlled, then wired $33,750 from that account to his employer’s account. The following day, the employer wired $33,750 to another of O’Day’s accounts and O’Day purchased a cashier’s check in the amount of $30,000 drawn on that account, which he used to pay the closing costs associated with the purchase of his home.
White and O’Day each face a maximum of 30 years in federal prison for bank fraud, and a mandatory minimum sentence of two years in federal prison, consecutive to any other sentence imposed, for aggravated identity theft. U.S. District Judge Ellen L. Hollander has scheduled sentencing for O’Day on November 8, 2019 and for White on November 15, 2019, both at 10:00 a.m.
United States Attorney Robert K. Hur commended TIGTA, the Montgomery County Police Department, and the Maryland State Police for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Matthew J. Maddox, who is prosecuting the case.
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Four Peruvians Sentenced for Overseeing Spanish-Speaking Call Centers That Threatened and Extorted U.S. ConsumersRead the Press Release
Four residents of Lima, Peru, charged with overseeing a series of call centers that threatened and extorted Spanish-speaking victims in the United States, have been sentenced to prison, the Department of Justice and U.S. Postal Inspection Service announced.
Jesus Gutierrez Rojas, 37, Alexandra Podesta Bengoa, 38, Virgilio Polo Davila, 43, and Omar Portocarrero Caceres, 39, were extradited from Peru in April. Each pleaded guilty to extortion and has now been sentenced to prison by U.S. District Court Judge Roy K. Altman in Fort Lauderdale. As part of his guilty plea, Gutierrez admitted that he oversaw a series of affiliated call centers in Peru that falsely told Spanish-speaking victims across the United States that they had incurred debts and would suffer various consequences for failure to pay off the debts that they did not, in fact, owe. As part of their guilty pleas, Podesta, Polo, and Portocarrero admitted that they managed and supervised three of these affiliated call centers that used extortion to obtain money from vulnerable U.S. consumers.
Yesterday, Judge Altman sentenced Gutierrez to 51 months in federal prison for his role overseeing the affiliated call centers and sentenced Podesta and Polo to 46 months imprisonment. Judge Altman sentenced Portocarrero to 46 months in federal prison on July 24. Each defendant was also ordered to serve three years’ supervised release following their terms of incarceration and to make restitution payments to the victims of their scheme.
“The Department of Justice is committed to identifying and prosecuting foreign-based fraud schemes that target and extort U.S. consumers,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “Today’s prison sentences reflect that those who unlawfully take advantage of U.S. consumers by phone cannot escape justice by placing their calls from abroad. The Department of Justice’s Consumer Protection Branch will continue to work hand-in-hand with our Transnational Elder Fraud Strike Force partners to bring to justice international fraudsters who prey on vulnerable U.S. consumers.”
As part of their guilty pleas, Podesta, Polo, and Portocarrero each admitted that their Peruvian call centers contacted U.S. consumers, many of whom were elderly and vulnerable, using Internet-based calls. Falsely claiming to be attorneys and government representatives, Podesta, Polo, Portocarrero, and their employees falsely told victims that they failed to pay for or receive a delivery of products and threatened them into paying fraudulent settlements for nonexistent debts. The callers falsely threatened victims with lawsuits, negative marks on their credit reports, imprisonment, or immigration consequences if they did not immediately pay for the purportedly delivered products and “settlement fees.” Many victims made monetary payments based on these baseless extortionate threats.
Gutierrez was the general manager of a larger company where he worked in partnership with Podesta, Polo, Portocarrer, and others to facilitate their extortion scheme. The defendants’ associates in Miami collected the payments from thousands of victims across the U.S.
“The reach of our U.S. justice system is long,” said U.S. Attorney for the Southern District of Florida Ariana Fajardo Orshan. “The sentences imposed demonstrate that we are committed to prosecuting those individuals who threaten U.S. consumers no matter where they are located.”
“The U.S. Postal Inspection Service will continue to aggressively pursue and bring to justice international criminal enterprises that prey on our most vulnerable citizens by fraudulently using the U.S. Mail to further their schemes,” said Acting Miami Division Postal Inspector in Charge Lesley Allison.
At Portocarrero’s July 24 sentencing, Judge Altman said that the brazen, large-scale nature of the defendants’ scheme was “shocking.” Judge Altman noted that the defendants exploited “the most vulnerable people in our country” and said that their offense conduct was “terribly disgraceful.”
With yesterday’s three sentencings by Judge Altman, all five defendants who have been charged in connection with this large-scale extortion scheme have now been sentenced to terms of imprisonment.
Trial Attorney Phil Toomajian of the Department of Justice’s Consumer Protection Branch is prosecuting the case. The U.S. Postal Inspection investigated the case. The Criminal Division’s Office of International Affairs secured the extradition of the defendants, and the U.S. Attorney’s Office of the Southern District of Florida, the Diplomatic Security Service, and the Peruvian National Police provided critical assistance.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past March the Department announced the largest elder fraud enforcement action in American history, charging more than 260 defendants in a nationwide elder fraud sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
Former Union Official Sentenced for EmbezzlementRead the Press Release
BOSTON – A former union official was sentenced today in federal court in Worcester for embezzlement from a labor union.
Ivar Carlson was sentenced by U.S. District Court Judge Timothy Hillman to one year of probation, and ordered to pay restitution in the amount of $9,786.20. The Court further ordered forfeiture in the amount of $16,151.20.
Carlson is the former business agent and treasurer for Local B-395 of the International Alliance of Theatrical Stage Employees in Worcester, MA.
From 2007 through 2016, Carlson embezzled approximately $37,000 from the Local by regularly writing checks to cash from the Local’s bank account and then using that cash for his own personal enrichment.
United States Attorney Andrew E. Lelling and U.S. Department of Labor – Office of Labor-Management Standards District Director Jonathan Russo made the announcement today. Assistant U.S. Attorney John T. Mulcahy of Lelling’s Worcester Branch Office is prosecuting the case.