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Friday 12 July 2019
Man Arrested in Rancho Cordova Pleads Guilty to Identity Theft and Bank Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Cody Patrick Cannon, 31, a transient, pleaded guilty yesterday to bank fraud, aggravated identity theft, and possession of reproduced U.S. Postal Service keys, U.S. Attorney McGregor W. Scott announced.
According to court documents, between January and August 2018, Cannon engaged in a scheme in which he used counterfeit U.S. Postal Service keys to open apartment complex mailboxes throughout Northern California and steal mail. Cannon and others involved in the scheme then harvested personally identifiable information, financial information, and credit and debit cards. They defrauded banks by using the stolen cards to purchase goods and withdraw cash from ATMs in Vacaville, Folsom, Rocklin, and Rancho Cordova.
On August 2, 2018, Cannon and his co-defendant, Candice Freitas, were arrested at their RV parked in a hotel parking lot in Rancho Cordova. They were found to be in possession of stolen mail, checks, multiple stolen and fake California driver’s licenses, at least two passports bearing the names of others, and at least seven counterfeit U.S. Postal Service mail keys.
This case is the product of an investigation by the United States Postal Inspection Service, Sacramento County Sheriff’s Department, Folsom Police Department, and Vacaville Police Department. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.
Cannon remains in custody pending sentencing. Cannon’s co-defendant, Candice Freitas, has pleaded not guilty to the charges in the indictment and she remains in custody pending trial. The charges against her are only allegations; she is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Cannon is scheduled to be sentenced by Judge Troy L. Nunley on October 3, 2019. He faces a maximum statutory penalty of 30 years in prison and a $1,000,000 fine for bank fraud. He also faces a mandatory two-year consecutive sentence for aggravated identity theft. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Madison Felon Sentenced for Possessing & Discharging FirearmRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Michael Hallmon, 34, of Madison, Wisconsin, was sentenced today by U.S. District Judge James D. Peterson to 51 months in federal prison for possessing a firearm as a convicted felon. Hallmon pleaded guilty to the charge on March 8, 2019.
On September 6, 2018, Hallmon shot someone in broad daylight, in a crowded parking lot of an apartment complex in Madison. Hallmon and the victim had a dispute over a moped, which led to the shooting. Hallmon discharged three rounds towards the victim, who was hit in the leg with one round.
Hallmon is also charged in Dane County Circuit Court with attempted first degree intentional homicide, and that charge is pending. If convicted, that sentencing judge will decide whether Hallmon’s federal sentence will be served concurrently or consecutively to the state sentence. With respect to this state charge, Hallmon is presumed innocent until and unless proven guilty.
This case was brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
The charge against Hallmon was the result of an investigation conducted by the Madison Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. This prosecution was handled by Assistant U.S. Attorney Rita M. Rumbelow.
Man from Shiprock Charged with Murder of Woman in Indian CountryRead the Press Release
ALBUQUERQUE – Tavor Tom, 18, of Shiprock, N.M. appeared in federal court today on a criminal complaint charging him with murder in Indian Country.
According to the criminal complaint, Tom allegedly committed this offense on July 1, 2019. He went to the victim’s home and stabbed her repeatedly with a knife. The victim died at the scene. Tom stole the victim’s automobile and fled the residence. Police later found him after he crashed the vehicle.
The FBI arrested Tom on July 5, 2019. He appeared in court today for a detention hearing where the judge ordered him to remain in custody pending trial. He faces up to life in prison if convicted. A criminal complaint is only an allegation. A Defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI investigated this case with the Navajo Nation Criminal Investigation Section and the McKinley County Sheriff’s Office. Assistant U.S. Attorney Joseph M. Spindle is prosecuting the case.
Local Woman Sentenced to Federal Prison for Her Role in a Cross-Country Drug Distribution RingRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that United States District Court Chief Judge Kristi K. DuBose sentenced Patty Janelle Reddick on June 21, 2019 to serve a term of imprisonment of 30 months followed by 5 years of supervised release for Conspiracy to Possess with the Intent to Distribute Methamphetamine in violation of 21 USC § 846. The defendant previously entered a guilty plea with the Court on September 20, 2018.
In December of 2016, a cooperating informant (C/I) in Mobile, Alabama ordered methamphetamine from a broker for a source of supply from California. A deal was made to purchase eight ounces methamphetamine from the source of supply. The C/I, who was dealing with the broker, told an undercover officer to drive to a local gas station where the broker had arranged for the delivery of the methamphetamine that was ordered from California. The defendant, Patty Janelle Reddick, arrived at the gas station to deliver the methamphetamine. Police Officers witnessed the defendant deliver the methamphetamine to the undercover officer and leave the location. The defendant lied when she was initially confronted by law enforcement regarding the narcotics transaction. However, the defendant was captured on a recorded telephone call after the drug delivery stating words to the effect that she believed the person she delivered the methamphetamine to was an undercover officer.The case was investigated by the Drug Enforcement Administration (DEA), and the Mobile Police Department. The case was prosecuted by Deputy Criminal Chief, Assistant United States Attorney George F. May for the United States Attorney’s Office for the Southern District of Alabama. The case was investigated and prosecuted under the DOJ’s specially funded strategy and program, the Organized Crime Drug Enforcement Task Force (OCDETF).
Little Rock Community Activist Sentenced to 10 Years in Prison for Drug, Gun CrimesRead the Press Release
LITTLE ROCK—A Little Rock man who is a self-professed former longtime gang member who turned toward community activism later in life has been sentenced to prison on drug and gun charges. On Friday, Chris Alexander, 42, was sentenced to 10 years in prison by United States District Court Judge D.P. Marshall Jr., after admitting to selling large quantities of marijuana and possessing guns.
Cody Hiland, United States Attorney for the Eastern District of Arkansas, announced the sentence. After being indicted on multiple gun and drug charges on February 6, 2018, Alexander pleaded guilty on January 16, 2019, to single counts of distribution of marijuana and possession of a firearm in furtherance of a drug-trafficking crime. His 120-month total sentence includes 60-month sentences on each count, to run consecutively. Judge Marshall also sentenced Alexander to three years of supervised release.
Alexander, who said in the hearing on Friday that he started an organization intending on teaching Little Rock youth the dangers of gangs and violence, admitted that he sold a pound of marijuana to a confidential informant in 2017. On September 8, 2017, Little Rock Police officers were attempting to execute an arrest warrant on Alexander when he was found in possession of multiple rifles and another eight pounds of marijuana. At the sentencing hearing Alexander told Judge Marshall that he was selling marijuana to help finance his community youth programs.
The FBI’s GET ROCK Task Force, working in partnership with the Little Rock Police Department, investigated this case. Assistant United States Attorney Chris Givens prosecuted the case.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
http://www.justice.gov/edarTwitter:
@EDARNEWSLimestone Man Going to Prison for More Than 18 Years for Receipt of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that Kevin James Fox, 63, of Limestone, NY, who was convicted of receipt of child pornography, was sentenced to serve 220 months in prison and lifetime supervised release by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney, Aaron J. Mango, who handled the case, stated that in May 2016, the defendant persuaded an adult female, identified as T.M., to find a minor male and engage in sexual activity with him for the purpose of producing a visual depiction. T.M. met a 16-year-old male (Victim 1) through Craigslist and began communicating with Victim 1 via text messaging that was sexual in nature. On June 1, 2016, T.M. picked up Victim 1 and drove to her residence, where she engaged in sexual activity with Victim 1. T.M. used her cellular telephone to take approximately five photographs. T.M. then drove Victim 1 home and texted the images to a telephone number controlled by Fox.
The defendant also persuaded T.M. to engage in sexual activity with a 17-year-old minor male (Victim 2) who was known to T.M. Between May 26 and June 21, 2016, T.M. engaged in sexual activity with Victim 2, at Fox’s request. T.M. also took photographs once again and sent the images to the defendant.
The sentencing is the culmination of an investigation by Special Agents of the Federal Bureau of Investigation, Buffalo Office, under the direction of Gary Loeffert, Special Agent-in-Charge along with the Cattaraugus County Sheriff’s Office, under the direction of Sheriff Timothy Whitcomb.
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Lake Charles man sentenced to 7 years in federal prison for illegal firearm possessionRead the Press Release
LAKE CHARLES, La. – United States Attorney David C. Joseph announced that a Lake Charles man who led police officers on a vehicle pursuit that ended in a crash was sentenced to 87 months in federal prison and three years of supervised release. Dane Darbonne, 29, was sentenced Thursday by U.S. District Judge James D. Cain Jr. after pleading guilty on April 11, 2019, for illegally possessing a firearm.
According to information presented in court, Darbonne purchased a Savage Model 110-caliber, 30-06 rifle from an individual on August 10, 2018. One day after taking possession of the firearm, Darbonne led Lake Charles police in a high-speed car chase. Darbonne crashed the car and fled the scene on foot. Officers recovered the rifle from the vehicle Darbonne was driving.
Darbonne is a felon who was previously convicted for possession of a firearm in a firearm free zone, assault by drive-by-shooting, attempted manslaughter, possession of a firearm by a convicted felon and possession of cocaine. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of a firearm or ammunition.
The ATF and the Lake Charles Police Department conducted the investigation. Assistant U.S. Attorney Dominic Rossetti prosecuted the case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. Project Safe Neighborhoods is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Justice Department Reaches Agreement with Sandoval County, New Mexico, to Ensure Accessible VotingRead the Press Release
The Department of Justice today reached a settlement under the Americans with Disabilities Act (ADA) with Sandoval County, New Mexico, to ensure that the County’s polling places are accessible during elections to individuals with mobility and vision impairments.
The Department of Justice surveyed and assessed the County’s voting program for compliance with the ADA. The Department’s survey identified architectural barriers at County polling places, including inaccessible parking, ramps that were too steep, and doorways with thresholds that were too high. Under the ADA, counties that conduct local, state, or federal elections may not select polling places that are inaccessible during elections to individuals with disabilities. The County is home to thirteen Pueblos and Tribal Entities, and one dozen County polling places are located on tribal lands.
Under the terms of the settlement agreement, Sandoval County will begin remediating its voting program in time for its next election. To make its selected polling places accessible, the County will employ temporary measures, such as portable ramps, signage, and propped open doors, as well as certain permanent changes, such as paved parking and ramps. In addition, the County will train its poll workers on the requirements of the ADA and how to use temporary measures to ensure each polling place is accessible during elections. The County will also survey polling locations for accessibility and maintain the accessibility of each polling place it uses on Election Day. When selecting future polling places, the agreement requires the County to select locations that will be accessible during elections. The Department of Justice will monitor the County’s compliance with the agreement and provide the County with technical assistance.
“This agreement reflects the Department’s continued commitment, through its ADA Voting Initiative, to ensuring that every eligible voter with a disability has an equal opportunity to vote in person at his or her local polling place,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “This fundamental right secures participation in our democracy and must not be diminished or restricted by barriers to access. We commend the County’s commitment to guaranteeing that eligible voters with disabilities have equal access to the polls.”
“A disability should never stand as an impediment to a citizen exercising the fundamental right to vote in our democracy,” said U.S. Attorney John C. Anderson. “This settlement ensures polling places in Sandoval County will be accessible to all eligible voters.”
This settlement is part of the Department’s ADA Voting Initiative, which focuses on protecting the voting rights of individuals with disabilities. A hallmark of the ADA Voting Initiative is its collaboration with jurisdictions to increase accessibility at polling places. Through this Initiative, the Department of Justice has surveyed more than 1,600 polling places and increased polling place accessibility in more than 35 jurisdictions, including Coconino County, Arizona; McKinley County, New Mexico; Harris County, Texas; Chicago, Illinois; and Richland County, South Carolina.
For more information about the ADA and today’s agreement, please visit http://www.ada.gov or call the toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY).
Jury Convicts Felon of Armed CarjackingRead the Press Release
RENO, Nev. – A federal jury found a felon guilty of stealing a car at gunpoint, announced United States Attorney Nicholas A. Trutanich for the District of Nevada.
After a four-day trial, a jury found Eric Romero-Lobato, 39, guilty of one count of carjacking, one count of use of a firearm during and in relation to a crime of violence, and one count of felon in possession of a firearm. Romero-Lobato has prior convictions for unlawful reentry by a deported person and for eluding a police officer.
United States District Judge Larry R. Hicks presided over the trial and scheduled a sentencing hearing on November 19, 2019. The maximum penalty is life imprisonment.
According to court documents and evidence presented at trial, Romero-Lobato, armed with a 9mm semi-automatic pistol, stole a car from an individual at gunpoint. Reno Police Department officers located the stolen vehicle within hours of the carjacking. Romero-Lobato lead the police on a high speed chase before wrecking the stolen car. He was then apprehended. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Reno Police Department.
Romero-Lobato is in custody and is awaiting a jury trial for the remaining counts in the indictment. The charges are related to the attempted robbery of a bar and grill in Sparks. The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Sparks Police Department. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Assistant United States Attorneys Megan Rachow and Steven Myhre are prosecuting both cases.
This case was brought as part of Project Safe Neighborhoods (PSN), a nationwide program by the Department of Justice that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Department announced the reinvigoration of PSN. For more information about PSN, visit www.justice.gov/usao-nv.
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Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on July 11 was:
Adam Clark Young, 35, of Billings, on charges of prohibited person in possession of firearms and possession of a stolen firearm. If convicted of the most serious crime, Young faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Young was detained. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Pacer case reference. 19-58.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Illinois Resident Indicted on Bank Robbery ChargeRead the Press Release
BOSTON - An Illinois man was indicted yesterday in federal court in Boston in connection with a bank robbery.
Eugene Davis, 54, of Chicago, Ill., was indicted on one count of bank robbery.
It is alleged that on June 3, 2019, Davis robbed a branch of the East Boston Savings Bank located in South Boston.
The charge provides for a sentence of no greater than 20 years in prison, up to five years of supervised release, and a $250,000 fine. Sentences are imposed by a federal district court judge based on the United States Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigations, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Boston Police Chief William Gross made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
High-speed trooper chase results in five-count guilty verdict for drug conspiracy, firearms crimesRead the Press Release
SAVANNAH, GA: A Savannah man is facing a substantial prison sentence after a federal jury returned a guilty verdict on all five counts against him.
Amari Jermaine Sams, a/k/a/ “Face”, 37, of Savannah, was convicted of Conspiracy to Possess With Intent Distribute 50 grams or more of Methamphetamine and a quantity of Cocaine and Marijuana; Possession With Intent to Distribute 50 grams or more of Methamphetamine and a quantity of Cocaine and Marijuana; Possession of a Firearm by a Prohibited Person; Possession of a Stolen Firearm; and Possession of a Firearm in Furtherance of a Drug Trafficking Crime, in U.S. District Court, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.
Sams now faces a sentence of 15 years to life in prison, and there is no parole in the federal system.
According to evidence presented at the three-day trial, on the morning of April 22, 2018, Sams and his co-conspirators, Jovonn Brisbon and Hakeem Campbell, led Georgia State Patrol officers on a chase at speeds up to 120 mph in a Ford F-150 stolen from the Savannah Airport. During the pursuit, a stolen Glock. 40 firearm was thrown from the vehicle and later recovered. State troopers forced the vehicle to a stop and apprehended Brisbon and Campbell, and Savannah Police Department officers captured Sams hiding in a creek parallel to I-516. A search of the stolen vehicle yielded approximately 75 grams of methamphetamine, and inside a book bag found next to the vehicle officers found a stolen Springfield XD .45 caliber pistol, approximately 1 pound of marijuana, 29 grams of cocaine, scales and baggies. The occupants had more than $4,000 cash combined.
Brisbon and Campbell previously entered guilty pleas in the case and are awaiting sentencing.
“The game of hide and seek for this defendant is over, and his next stop will be federal prison,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “I commend the brave law enforcement officers and investigators who safely brought an end to this dangerous crime spree, and the prosecutors who successfully brought this dangerous felon to justice.”
“ATF will continue to dedicate federal resources in conjunction with crucial local law enforcement partners to the pursuit of eradicating and forestalling criminal activity in communities we serve,” said Beau Kolodka, Assistant Special Agent in Charge of the Atlanta Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Said Chatham County Counter Narcotics Team (CNT) Director Everett Ragan, “Living the fast life caught up to them. I have no doubt a long prison sentence will slow them down.”
This case was investigated by ATF and CNT, along with the Savannah Police Department and the Georgia State Patrol. The case was prosecuted for the United States by Assistant U.S. Attorneys Joshua Bearden and Frank Pennington.
Hartford Gang Member Sentenced to 8 Years in Federal Prison for Firearm Offenses Stemming from Gun BattleRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MIGUEL CLAUDIO, also known as “Mega,” 36, of Hartford, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 96 months of imprisonment, followed by five years of supervised release, for firearm offenses related to a shootout in Hartford’s South End in April 2017.
According to court documents and statements made in court, this matter stems from an investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department’s Vice and Narcotics Division targeting gang violence and narcotics trafficking in Hartford. The investigation revealed that Wilson Velez, also known as “Wiso,” a member of the Almighty Latin Kings Nation (“Latin Kings”), was distributing heroin and fentanyl. Velez employed family members and other Latin Kings members and associates to process, package and distribute the drugs from apartment buildings on Hamilton Street and Elliot Street in Hartford. During the investigation, law enforcement conducted multiple controlled purchases of narcotics from Velez and other members of the drug trafficking organization.
On April 28, 2017, Velez, Claudio and three other Latin Kings members were involved in a shootout after they confronted a rival drug dealer in the area of Franklin Avenue and Barker Street in Hartford. Claudio shot and wounded two individuals during the gunfire exchange, and was shot multiple times himself.
On May 1, 2018, a grand jury returned a 41-count indictment charging Velez, Claudio and eight other members and associates of the Latin Kings.
Claudio has been detained since his arrest on May 7, 2018. On March 8, 2019, he pleaded guilty to one count of conspiracy to carry and use a firearm in furtherance of a drug trafficking crime, and one count of brandishing a firearm during and in relation to a drug trafficking crime.
Claudio’s criminal history includes convictions for robbery and assault with a firearm.
Velez was arrested on federal narcotics offenses on December 7, 2017, and was subsequently released on bond. He has been detained since April 5, 2018, when his bond was revoked. On February 22, 2019, he pleaded guilty to one count of conspiracy to distribute one kilogram or more of heroin and/or 400 grams or more of fentanyl, and one count of conspiracy to use and carry a firearm in relation to, and furtherance of, a drug trafficking crime. He awaits sentencing.
The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
This case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Grand Island Man Sentenced to 100 Months’ Imprisonment for Methamphetamine DistributionRead the Press Release
United States Attorney Joe Kelly announced that United States District Judge Robert F. Rossiter, Jr. sentenced Javier Contreras-Rodriguez on July 12, 2019, to imprisonment for 100 months, to be followed by a 5-year term of supervised release. Contreras was convicted of distribution of methamphetamine, in violation of Title 21 U.S.C. § 846.
On March 22, 2017, in Grand Island, Nebraska, confidential informants acting at the direction of investigators conducted a controlled buy of approximately ½ ounce of methamphetamine from defendant. Investigators observed the transaction, during which Contreras sold approximately 19 grams of meth to the informants. Contreras’s prior criminal convictions include resisting arrest, felony robbery, DUI, additional felony narcotics distribution, and assault. All of these prior convictions factored into the 100-month sentence to imprisonment imposed by Judge Rossiter. Contreras ingested methamphetamine on his person at the time of his arrest, resulting in a brief period of hospitalization.
The case was investigated by the Central Nebraska Drug and Safe Streets Task Force, including the Adams Country Sheriff’s Office and the Nebraska State Patrol.
Four Cherry Hill Hillside Gang Members Sentenced to at Least 20 Years in Federal Prison—And A Fifth Sentenced to 14 Years in Federal Prison—For Racketeering Conspiracy ChargesRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III this week sentenced Kevin Horsey, a/k/a What What, age 26; Terrell Luster, a/k/a Relly, age 30; Caesar Rice, age 27; and Michael Evans, a/k/a Pee Wee, age 25, all of Baltimore, to 20 years, 23 years, 22 years, and 14 years in federal prison, respectively, each followed by five years of supervised release, for conspiracy to participate in a racketeering enterprise related to their activities as members of the Hillside gang that operated in the Cherry Hill neighborhood of Baltimore. Horsey’s sentence was imposed on July 11, 2019. Evans, Luster, and Rice were sentenced today. A fifth Cherry Hill gang member, Christopher Dukes, age 27, of Baltimore, was sentenced on June 26, 2019, to 23 years in federal prison for his gang activities. The defendants admitted to participating in murders, attempted murders, robberies, and the distribution of narcotics.
The sentences were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Commissioner Michael Harrison of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
“These armed gang members showed little regard for life, using violence to hurt, to rob, and to kill while selling deadly drugs in our city. Defendant Dukes even tried to murder a police officer by hitting him with his car. We are relentless in pursuing and stopping this type of violence.” said U.S. Attorney Robert K. Hur. “These dangerous defendants now face lengthy terms in federal prison, where there is no parole—ever. Please, put down the guns and save a life—maybe even your own.”
According to their plea agreements, the defendants were members and associates of the Hillside Enterprise, which they knew distributed powder and crack cocaine, heroin, oxycodone and marijuana, primarily in the Cherry Hill Shopping Center, in other locations throughout Cherry Hill, and in west and southwest Baltimore City. The members of the Hillside Enterprise used the proceeds of their narcotics sales to purchase firearms, to enrich themselves, and to further the activities of the organization, including narcotics trafficking. Hillside members used residences in and around Cherry Hill to cut and package drugs for distribution, primarily heroin, powder cocaine, and crack. These locations included a house at 453 Roundview Road and an apartment at 2300 Terra Firma Road in Cherry Hill. Only trusted members of the Hillside Enterprise were admitted to these locations while the drugs were being prepared for sale. In an effort to distinguish their narcotics, Hillside members used colored topped vials or colored the drugs with food coloring. All five defendants admitted that they distributed drugs as a member of Hillside, and on behalf of the gang.
Members of the Hillside Enterprise routinely carried firearms and committed acts of violence in furtherance of the organization’s activities, including robberies, shootings, beatings, murders, and other violence in order to intimidate others who would interfere with their narcotics trafficking. Acts of violence were also committed to discipline members within the Hillside Enterprise for transgressions, real or perceived, against the conspiracy.
Hillside members and associates have been in a long-running dispute with persons not part of the gang, including Up Da Hill (“UDH”), the Lakebrook Circle Boys, and others. Members and associates of Hillside have routinely engaged in acts of violence, including murder, directed at members of these rival organizations, or persons who happen to be located on territory controlled by these rival organizations. The defendants all knew that these acts of violence, including the homicides, were committed by Hillside members and associates. For example, Horsey, Luster, Rice, and Evans all admitted that they participated in, or were present at shootings, generally of individuals whom they and their fellow Hillside members believed to be rival gang members. Dukes admitted participating in a murder, the attempted murder of a police officer (after he attempted to hit the officer with his car), and two shootings.
According to the ATF, a reward of $10,000 is available for information leading to the arrest of the final defendant in this case, fugitive Deaven Raeshawn Cherry, a/k/a Gotti, age 22, of Baltimore, who is charged federally with drug and racketeering conspiracies, including murders. He is actively being sought by ATF Baltimore Special Agents and the U.S. Marshals Service and should be considered armed and dangerous. Law enforcement believes he is likely still in Baltimore City or the counties surrounding it. Anyone with information should contact ATF at (888) ATF-TIPS, [email protected], text “ATFBAL” to 63975, or contact ATF via the mobile reportit® app. Co-defendant Travis Eugene Alewine, a/k/a Sticks, age 27, of Baltimore, who had been a fugitive for two years, was arrested on May 23, 2019, after law enforcement received a tip as to his whereabouts.
This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
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. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the ATF, the Baltimore Police Department, and the Office of the State’s Attorney for Baltimore City for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Patricia C. McLane and Michael C. Hanlon, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
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Fort Belknap man admits aggravated sex abuseRead the Press Release
GREAT FALLS – A Fort Belknap man admitted on Thursday to sexually abusing a girl on the Fort Belknap Indian Reservation, U.S. Attorney Kurt Alme said.
James Edward Snell, Jr., 42, pleaded guilty to aggravated sexual abuse. Snell faces a minimum mandatory 30 years in prison, a $250,000 fine and five years to life of supervised release.
U.S. District Judge Brian Morris presided and set sentencing for Oct. 24. Snell remains in custody.
Prosecutors said in court records that an investigation of Snell, and defendant Geneva Marie Nadeau, found photographs and videos of them in 2015 sexually abusing a girl, who was under the age of 12. Nadeau confirmed that Snell was in a photograph of a sex act involving the victim. Nadeau was sentenced in February to 22 years in prison and 15 years of supervised release after pleading guilty to aggravated sexual abuse.
Assistant U.S. Attorneys Ryan Weldon and Jared Cobell prosecuted the case, which was investigated by the FBI.
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Former U.S. Congressman Chaka Fattah, Sr., Resentenced to 10 Years of Incarceration for Corruption ConvictionsRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that former U.S. Congressman Chaka Fattah, Sr., 62, of Philadelphia, PA was resentenced to 10 years of incarceration by United States District Judge Harvey Bartle, III.
After a month-long trial in 2016, a federal jury found defendant Fattah and various co-defendants guilty of racketeering conspiracy, wire fraud conspiracy, honest services wire fraud conspiracy, mail fraud conspiracy, and multiple counts of mail fraud, falsification of records, mortgage fraud, and false statements to a financial institution. The criminal conduct of Fattah and his racketeering enterprise was organized around five corruption and fraud schemes: a loan repayment scheme, a Blue Guardians scheme, a college tuition scheme, a mortgage fraud scheme, and a fake conference scheme. For his role in these schemes, Fattah was sentenced after trial to 10 years of incarceration.
Both parties appealed. With regard to Fattah’s appeal, the Court of Appeals remanded for a new trial as to certain bribery and money laundering counts, concluding that the jury had not been properly instructed regarding “official acts” in a bribery context. (The government thereafter announced its intention not to retry those counts.) With regard to the government’s cross-appeal, the Court of Appeals reinstated certain counts that had been dismissed by the District Court post-trial. The case was then remanded for resentencing. Today, for these additional counts, Fattah was again sentenced to 10 years of incarceration.
“Let today serve as a warning to all public officials who allow greed or a thirst for influence to overpower any desire to serve the community honestly,” said First Assistant U.S. Attorney Williams. “If you are a corrupt official, we will investigate and convict you, and we will remain steadfast behind our prosecution until the last appeal is wrapped up and the final proceeding complete. Today’s sentencing illustrates the strength of our original case and the need to put Chaka Fattah behind bars for a very long time.”
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation, the Department of Justice Office of Inspector General, the NASA Office of Inspector General, the Department of Education Office of Inspector General, the Department of Commerce Office of Inspector General, and is being prosecuted by Assistant United States Attorneys Eric L. Gibson and Paul L. Gray. Jonathan Kravis, former Trial Attorney with the Criminal Division’s Public Integrity Section of the U.S. Department of Justice, also prosecuted this matter.
Former Operator of Bitcoin Investment Platform Sentenced for Securities Fraud and Obstruction of JusticeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that JON E. MONTROLL, a/k/a “Ukyo,” was sentenced yesterday by U.S. District Judge Richard M. Berman to 14 months in prison.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Jon Montroll lied to his investors and, after his lies caught the attention of the SEC, lied to them, too. The sentence he received serves as a reminder that this Office will not overlook those who violate their obligation to be honest with investors and the regulators working to protect them.”
According to the Information, the allegations in the Complaint, and statements made during the proceedings in Manhattan federal court:
JON E. MONTROLL operated two online bitcoin services: WeExchange Australia, Pty. Ltd. (“WeExchange”) and BitFunder.com (“BitFunder”). WeExchange functioned as a bitcoin depository and currency exchange service. BitFunder facilitated the purchase and trading of virtual shares of business entities that listed their virtual shares on the BitFunder platform.
Between the launch of Bitfunder, in or about December 2012, and at least in or about July 2013, MONTROLL converted a portion of WeExchange users’ bitcoins to his personal use without the users’ knowledge or consent. For example, MONTROLL exchanged numerous bitcoins taken from WeExchange into United States dollars, then spent those funds on personal expenses, such as travel and groceries.
Beginning on or about July 18, 2013, MONTROLL promoted a security referred to as “Ukyo.Loan.” As described by MONTROLL in a public post about Ukyo.Loan, MONTROLL encouraged investors to “think of [Ukyo.Loan] as a sort of round-about investment” in BitFunder and WeExchange and, at the same time, described Ukyo.Loan as “a personal loan” and “for private investment purposes.” MONTROLL further promised to pay purchasers of Ukyo.Loan daily interest on their investment and promised shares could be “redeemed at face value anytime upon request.”
During the summer of 2013, one or more individuals (the “Hackers”) exploited a weakness in the BitFunder programming code to cause BitFunder to credit the Hackers with profits they did not, in fact, earn (the “Exploit”). As a result, the Hackers were able to wrongfully withdraw from WeExchange approximately 6,000 bitcoins, with the majority of those coins being wrongfully withdrawn between July 28, 2013, and July 31, 2013. As a result of the Exploit, BitFunder and WeExchange lacked the bitcoins necessary to cover what MONTROLL owed to users.
Notwithstanding the scope of the Exploit, MONTROLL failed to disclose the Exploit to users of BitFunder and WeExchange, or investors in Ukyo.Loan. Instead, MONTROLL continued to promote and sell Ukyo.Loan to customers and, on at least one occasion, falsely represented to customers that BitFunder was commercially successful. As a result of his omissions and misrepresentations, MONTROLL raised approximately 978 bitcoins through Ukyo.Loan after his discovery of the Exploit.
The SEC’s New York Regional Office began an investigation into BitFunder and the Exploit. During the course of the investigation, MONTROLL provided the SEC with a falsified screenshot purportedly documenting, among other things, the total number of bitcoins available to BitFunder users in the WeExchange Wallet as of October 13, 2013. Additionally, during sworn investigative testimony on both November 14, 2013, and October 6, 2015, MONTROLL provided materially false and misleading answers to certain questions about, among other things, the timing of MONTROLL’s discovery of the Exploit.
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In addition to a prison sentence, Judge Berman ordered MONTROLL, 38, of Saginaw, Texas, to serve three years of supervised release and to pay forfeiture in the amount of $167,480.
Mr. Berman praised the outstanding work of the Federal Bureau of Investigation. He also thanked the Securities and Exchange Commission, which previously filed civil charges against MONTROLL in a separate action.
The prosecution of this case is being overseen by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Andrew Thomas is in charge of the case.
Former NJDCP&P Employee Charged with Production of Child PornographyRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, man who was previously employed by the N.J. Department of Child Protection and Permanency (NJDCP&P) was charged today for allegedly receiving, distributing and producing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Kayan Frazier, 27, of Somers Point, New Jersey, is charged by complaint with one count of producing visual depictions of a child engaged in sexually explicit conduct, one count of receipt of child pornography and one count of distribution of child pornography. Frazier is expected to appear this afternoon before U.S. Magistrate Judge Karen M. Williams in Camden federal court.
According to documents filed in this case and statements made in court:
After receiving a report of images of child sexual abuse distributed via Tumblr, law enforcement officers identified Frazier, who was then employed as a case worker at NJDCP&P, as the sender. On April 12, 2019, the Atlantic County Prosecutor’s Office obtained a search warrant for Frazier’s residence and, while executing the warrant, observed Frazier in the company of a minor. Law enforcement officers recovered thousands of additional images of child pornography on Frazier’s cellular telephone and other electronic media, which included images of the minor at his residence.
Frazier was arrested on April 15, 2019, by the Atlantic County Prosecutor’s Office and charged with child endangerment, and has been detained without bail.
The receipt and distribution of child pornography offenses each carry a mandatory minimum sentence of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine. The production of child pornography carries a mandatory minimum sentence of 15 years in prison, a maximum potential penalty of 30 years in prison, and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of FBI, Atlantic City Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor Damon Tyner; the Atlantic County Sheriff’s Office, under the direction of Sheriff Eric Scheffler; the N.J. State Police, under the direction of Col. Patrick J. Shanahan; and the N.J. Human Services Police with the investigation.
The government is represented by Assistant U.S. Attorney Diana Vondra Carrig of the U.S. Attorney’s Office’s Criminal Division in Camden.
The charges and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Former Manning Police Chief Pleads Guilty in Federal Court to Theft of Government Funds, Making a False StatementRead the Press Release
Charleston, South Carolina --- United States Attorney Sherri A. Lydon announced today that Gary B. Shaffer, 60, the former Chief of Police in Manning, has pleaded guilty in federal court to theft of federal funds and making a false statement.
Evidence presented to the court established that Shaffer was the Manning Chief of Police until August 2018. On September 12, 2015, Manning police officers performed a traffic stop in which they seized $80,800 from two individuals. That money should have been deposited into a City of Manning bank account with the Bank of Clarendon. On September 19, 2015, Shaffer began making large cash deposits into ATMs. By November 10, 2015, he had deposited approximately $78,514 into his personal accounts by way of cash ATM deposits.
In May 2016, a state court ordered the Manning Police Department to return a portion of the money to the individuals from whom the money was seized on September 12, 2015. On May 23, 2016, three official checks were issued from Shaffer’s personal accounts. The checks were made out to the attorney who represented the individuals to whom the money was supposed to be returned, and their total value was the exact amount that the state court had ordered to be returned.
During an interview in February 2017, Shaffer told an agent with the Federal Bureau of Investigation that the deposits were of money he had been saving for years from various sources. Shaffer admitted in federal court that this statement was false.
Shaffer faces a maximum penalty of 10 years in federal prison and a fine of $250,000. United States District Judge Bruce Howe Hendricks, of Charleston, accepted the guilty plea and will sentence Shaffer after receiving and reviewing a presentencing report prepared by the United States Probation Office.
The charges against Shaffer were the result of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Brook Bowers Andrews and William Camden Lewis of the Columbia office are prosecuting the case.
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Former Independence Tax Preparer Sentenced for Preparing 1,000 False ReturnsRead the Press Release
KANSAS CITY, Mo. – A Killeen, Texas, woman who formerly operated a tax preparation service in Independence, Missouri, was sentenced in federal court today for her role in a conspiracy that prepared more than 1,000 false tax returns that resulted in nearly $700,000 in fraudulent refunds.
Monique Hernandez, 52, was sentenced by U.S. Chief District Judge Beth Phillips to four years and six months in federal prison without parole. The court also ordered Hernandez to pay $129,748 in restitution.
Hernandez owned a tax preparation service, Complete Tax Service located in Independence, from 2013 to 2016. Hernandez and her daughter, co-defendant Robyne Warburton, 33, of Los Angeles, California, operated the business. Hernandez continued to prepare tax returns for the business when she moved to Texas in 2015.
On Feb. 21, 2019, Hernandez and Warburton each pleaded guilty to participating in a conspiracy to aid and assist in the filing of false tax returns. A sentencing hearing for Warburton will be on Aug. 30, 2019.
Hernandez and Warburton combined to cause a financial loss to the government of $692,000, conservatively estimated, from the 1,014 false tax returns associated with Complete Tax Service. However, interviews with tax clients specific to Hernandez alone confirmed a $129,748 loss.
Hernandez and Warburton filed false claims for inflated or false deductions or employee business expenses for their clients (such as commuter mileage, personal vehicle expenses, meals eaten during work, and charitable deductions). Hernandez and Warburton also encouraged clients to claim false “gross receipts or sales” on “Profit or Loss from Business” forms, in order to maximize the earned income tax credit. They also encouraged clients to claim non-eligible children as dependents.
After an undercover IRS agent confirmed the fraudulent nature of the tax preparation business, federal agents executed a search warrant at the office of Complete Tax Service on April 7, 2014. After the IRS executed a search warrant at their business, Hernandez and Warburton kept committing tax crimes for almost two more years, until January 2016, when the IRS revoked their tax preparation number.
This case is being prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by IRS-Criminal Investigation.
Former Employee of D.C. School Sentenced to Six Years in Prison for Transporting Child PornographyRead the Press Release
A former Virginia resident was sentenced today to six years in prison, followed by 10 years of supervised release, for transporting child pornography.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia and Special Agent in Charge Matthew J. DeSarno of the FBI Washington Field Office’s Criminal Division made the announcement.
Paul Joseph Wilson, 49, was sentenced today by Senior U.S. District Judge T.S. Ellis III. According to admissions Wilson made in connection with his plea, in 2013, Wilson lived and worked at a school in Washington, D.C. While living in a dormitory at the school, Wilson downloaded child pornography from the Internet and subscribed to child-pornography-specific newsgroup services. Wilson later transported child pornography from D.C. to Virginia. Wilson also admitted to being a member of a child pornography website that operated over the dark web and to using the dark web to access and download images of children being sexually abused.
The case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force. Trial Attorney Kyle P. Reynolds of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Nathaniel Smith III of the Eastern District of Virginia prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Background Investigator for Federal Government Sentenced for Making False StatementsRead the Press Release
WASHINGTON – Justin T. Yarbrough, 37, a former background investigator who did work under contract for the U.S. Office of Personnel Management (OPM), was sentenced today to five months in prison on one false statements charge in connection with his falsification of work on background investigations of federal employees and contractors.
U.S. Attorney Jessie K. Liu and Norbert E. Vint, Acting Inspector General for the Office of Personnel Management made the announcement today.
Yarbrough, of Tennessee, pled guilty on April 25, 2019, in the U.S. District Court for the District of Columbia to one count of making false statements. He was sentenced by the Honorable Timothy J. Kelly. As part of his plea agreement, he is required to pay $126,693.17 in restitution to OPM. Following his prison term, Yarbrough will be placed on three years of supervised release, with special conditions that include but are not limited to five months of home confinement (with the exception of leaving for work/school/religious obligations/etc.)
According to court papers, Yarbrough was employed by USIS, formerly known as U.S. Investigations Services, Inc., as an investigator under contract to conduct background investigations on behalf of OPM’s Federal Investigative Services, which is now known as the National Background Investigations Bureau (NBIB). NBIB conducts background investigations to determine suitability for federal positions of public trust, including positions having access to classified information and impacting national security. NBIB also conducts investigations for federal employees and contractors seeking security clearances.
Yarbrough admitted that, in conducting these investigations between June 2013 and May 2014, he falsely claimed to have interviewed a source or reviewed a record regarding the subject of the background investigation in roughly 20 investigation reports. For example, court papers state that Yarbrough falsely represented that he had conducted a rental records check on an applicant for a position of public trust with the U.S. Department of Justice.
Yarbrough acknowledged at his guilty plea hearing that his false representations required OPM’s Federal Investigative Services to reopen and rework background investigations that were assigned to him during the time period in which he falsified reports. The government estimated the cost of the recovery effort at more than $125,000 to the U.S. government.
NBIB, through its workforce of approximately 5,400 field investigators, is responsible for conducting background investigations for numerous federal agencies and their contractors, on individuals either employed by or seeking employment with those agencies or contractors. NBIB conducted more than 2.6 million investigations during the 2018 fiscal year. More than 787,557 of these investigations involved applicants for access or continued access to classified information.
NBIB has a robust integrity assurance program, which utilizes a variety of methods to ensure the accuracy of reported information. The falsification of investigative case work by Yarbrough was detected through the program. This is one of numerous cases prosecuted by the U.S. Attorney’s Office for the District of Columbia since 2008 involving false representations by background investigators and record checkers working on federal background investigations. Approximately 25 other background investigators and record checkers have been convicted of charges similar to those brought against Yarbrough.
In announcing the sentence, U.S. Attorney Liu and Acting Inspector Vint praised the efforts Special Agent Natalie Bloom, of the OPM Office of the Inspector General, as well as Lead Investigator Jeffrey Addicks, Special Investigations Branch Chief Kevin Cassidy, and Integrity Assurance Executive Program Director Philip Kroop, of OPM-NBIB. They also acknowledged the work of Assistant U.S. Attorney Kathryn L. Rakoczy of the Fraud and Public Corruption Section, who investigated and prosecuted this matter, as well as former Assistant U.S. Attorney Ellen Chubin Epstein and former OPM OIG Special Agent Samuel Peyton, who both previously worked on the investigation of the matter.
Former Army Corps Employee Pleads Guilty to Lying to Law EnforcementRead the Press Release
A former employee of the United States Army Corps of Engineers pled guilty to making false statements to law enforcement agents.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Colonel Andrew D. Kelly, Jr., Jacksonville District Commander, U.S. Army Corps of Engineers, Cyndy A. Bruce, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), Southeast Field Office, Manny Antonaras, Deputy Special Agent in Charge, National Oceanographic and Atmospheric Administration (NOAA), Southeast Office of Enforcement, Andres Castro, Special Agent in Charge, Environmental Protection Agency Criminal Investigations Division (EPA- CID), Atlanta Area Office, and Frank Robey, Director, U.S. Army Criminal Investigation Command Major Procurement Fraud Unit (MPFU), made the announcement.
Tracey Jordan Sellers, 49, of Duval County, pled guilty to an Information containing one count of making a false official statement to federal law enforcement agents, in violation of 18 U.S.C. § 1001(a)(2). Sellers faces a maximum statutory penalty of five years and is scheduled to be sentenced by U.S. District Judge Cecilia M. Altonaga on September 19, 2019, in Miami.
“Tracey Jordan Sellers’s conduct undermined the integrity of the U.S. Army Corps of Engineers,” said U.S. Attorney Fajardo Orshan. “Together with our partner law enforcement agencies, we remain committed to defending the institutions of federal government.”
“We take this matter very seriously,” said Col. Andrew D. Kelly. “We have assisted the U.S. Attorney’s Office and federal investigators throughout their investigation. The defendant is no longer employed with the Corps. Her actions are not representative of the Corps and its values. Such conduct is never tolerated.”
According to the criminal Information and Joint Factual Statement filed with the Court, Sellers was a civilian employee of the U.S. Army Corps of Engineers’ Jacksonville District. A biologist, Sellers coordinated and advised on environmental issues related to Army Corps projects. Part of her responsibilities included planning and coordinating environmental requirements related to Army Corps projects and reviewing products from environmental consulting companies.
Federal ethics laws and regulations prohibit federal employees from engaging in outside employment that conflicts with employees’ official duties. From 2014 through February 8, 2019, while employed with the Army Corps, Sellers violated these laws and regulations by engaging in outside employment with a consulting company despite being part of a team that oversaw that company’s work for the Army Corps in relation to large dredging projects in South Florida.
In secret from her colleagues and management at the Army Corps, Sellers accepted offers of part-time employment from the consulting company. In November 2014, in October 2018, and in January 2019, the consulting company offered Sellers part-time work on three different projects with the company. Sellers accepted the offers from the consulting company, provided them her resume, entered into an independent consulting contract with them, and performed work on the projects for them. In an interview occurring in February 2019, Sellers falsely and willfully misled federal agents about her outside involvement with the consulting company. One of those false statements comprises the offense in the criminal Information.
Sellers no longer works for the Army Corps.
“Sellers ignored her oath and instead pursued personal profit from the same contractor whose work she reviewed,” said Cyndy Bruce Special Agent in Charge of the Defense Criminal Investigative Service, Southeast Field Office. “DCIS and its law enforcement partners are committed to strike against those who undermine and jeopardize the integrity of the DoD’s procurement process.”
“Ms. Sellers not only violated federal ethics laws but also the trust and confidence the U.S. Army places in our soldiers, civilian employees and contractors,” said Frank Robey, the director of the Major Procurement Fraud Unit for the U.S. Army Criminal Investigation Command. “The work that our Army does on a daily basis is vital to the success and security of our nation. Anyone who violates that trust by committing criminal acts will be fully investigated by our agents and our fellow law enforcement professionals.”
“Federal employees who oversee the environmental compliance of government contractors must be free of any conflicts of interest,” said Andres Castro, Special Agent in Charge of EPA’s criminal enforcement program in Florida. “This case shows that EPA and our federal partners are committed to protecting the integrity of federal contracts and safeguarding our nation’s natural resources.”
U.S. Attorney Fajardo Orshan commended the investigative efforts of the DCIS, NOAA, EPA-CID, and the MPFU. U.S. Attorney Fajardo Orshan also thanked the U.S. Army Corps of Engineers for its assistance. This case is being prosecuted by Assistant U.S. Attorney Jaime Raich.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Fordham Sentenced to 72 Months in Federal Prison for Mail Fraud Scheme with More Than 1,693 VictimsRead the Press Release
SALT LAKE CITY – Daron Howell Fordham, age 50, of Las Vegas, Nevada, who pleaded guilty to six counts of mail fraud in connection with a scheme that defrauded more than 1,693 victims nationwide, will serve 72 months in federal prison. Many of the victims of the fraud are elderly and disabled.
Fordham pleaded guilty earlier this year to all counts included in an indictment returned by a federal grand jury in October 2018. The plea agreement included a stipulated sentence of 72 months in federal prison. U.S. District Judge Dee Benson also ordered Fordham to pay $1,834,033,14 in restitution in the case. The six victims of the mail fraud counts in the case are between 65 and 91 years old.
“Crimes against the elderly target some of the most vulnerable people in our society. No one is immune from these schemes,” U.S. Attorney John W. Huber said today. “We are continuing our efforts to help older adults and senior citizens recognize the signs of financial fraud schemes. This effort is one of the top priorities for the Department of Justice and my office.”
Fordham, aka Southboy, Daron Destiny, Paul Park, James Parker, Daron Howell and Darren Fordham opened a private mailbox at the UPS Store in Park City in May 2014, using the business name Park Publishers and Distributors. He requested that all mail received at the mailbox be forwarded to his address in California.He used the mail to send promotional materials to individuals throughout the United States, including residents of Utah. The mailers offered an opportunity to make money through a “direct partner program” called “Paul Park’s Profit Program” and listed the Park City mailbox as the company address for responses. Fordham’s mailers induced people to send money to the Park City mailbox. The mail was forwarded to Fordham in California. Other individuals made electronic payments.
Fordham made fraudulent claims and guarantees to induce individuals to invest, including “I’ll show you how you can earn up to 976% return (or more) on your money in less than 120 days… And without you even having to lift a finger to do work at all.” He also encouraged them to invest in the printing and mailing of “our hot-selling FREE CRUISE FOR TWO VOUCHERS (sample included with the letter) that are used by businesses all across the country.”
Fordham told investors “WE DO ALL THE WORK! You decide how many Mailing Spots you want now and you’ll receive your Principal Check and PROFIT Check in less than 90 days. Trust me. You’ll be upset if you miss this one.”
He told investors they could get more than a 1,000% return on their money by investing $500 and getting a return of $5,570.
After about six months, he closed the mailbox in Park City and disconnected the 1-800 number, leaving victims unable to reach him. He never sent them vouchers or returned any money he received from the victims, despite receiving heartfelt letters requesting a refund.
The six mail fraud counts of conviction relate to the Park City financial fraud scheme. Fordham. Fordham obtained at least $203,866.25 through the Park Publishers fraudulent promotional scheme.
In 2014, Fordham had at least eight different variations of this scheme ongoing using different names, private mailboxes, and phone numbers. He continued to operate his fraudulent schemes until his Nov. 9, 2018, arrest in Las Vegas. At the time of his arrest, law enforcement officers found an apartment full of promotional material similar to the Park Publishers scheme but with different variations. Fordham was operating schemes called “Monster Gift Cards” and “AGS Gift Cards.”
The total loss amount from his schemes is $1,834,003.14.
Assistant U.S. Attorneys in the Utah U.S. Attorney’s Office prosecuted the case. Inspectors with the U.S. Postal Inspection Service in Salt Lake City investigated the case.
Fishers residents indicted on terrorism and firearms chargesRead the Press Release
Indianapolis – Josh J. Minkler, United States Attorney for the Southern District of Indiana, announced today that a federal grand jury has charged brothers Moyad Dannon, 21, and Mahde Dannon, 20, both of Fishers, Indiana, with one count of attempting to provide material support and resources, including firearms, to the Islamic State of Iraq and al-Sham (“ISIS”), a designated Foreign Terrorist Organization, in violation of 18 U.S.C. § 2339B. The defendants are also charged with various firearms offenses. The federal indictment was handed down on July 2, 2019. The defendants have been in federal custody since their arrest on May 15, 2019, pursuant to a federal criminal complaint.
“National Security is a top priority for the Department of Justice,” said Minkler. “The United States Attorney’s Office is committed to prosecuting individuals who engage in international and domestic terrorism.”
This indictment is the result of a months-long investigation led by the FBI Indianapolis’ Joint Terrorism Task Force with assistance from the Fishers, Indiana, Police Department.
As alleged in last week’s Indictment and the previously-filed Criminal Complaint, in June of 2018, Mahde Dannon, who was awaiting trial on felony theft charges in Lake County, Indiana, hatched a scheme to deliver firearms, including stolen firearms, to a convicted felon who was cooperating with the FBI. The following month, Mahde Dannon introduced his brother Moyad Dannon to the cooperating individual, and the cooperating individual later introduced the Dannon brothers to an FBI agent who was acting in an undercover capacity.
Between July 2018 and December 2018, the Dannon brothers sold a number of illegally-obtained firearms to the cooperating individual. Around the same time period, the Dannon brothers also began to manufacture untraceable “ghost guns” by purchasing unserialized firearms parts online and assembling those parts into fully-functioning, .223 caliber, semi-automatic rifles, which they sold to the FBI undercover agent.
In late 2018, the Dannon brothers approached the cooperating individual and FBI undercover agent about manufacturing untraceable, fully-automatic, .223 caliber rifles, using much the same process they used to manufacture the semi-automatic rifles. In February of 2019, the Dannon brothers built one fully-automatic rifle which they provided to the FBI undercover agent.
Shortly thereafter, Moyad Dannon accompanied the undercover agent to a location near the U.S. southwest border in an effort to market that rifle, and additional fully-automatic rifles, to a potential buyer who was also cooperating with the FBI. During that trip, Moyad Dannon learned that the potential buyer sought to ship the fully-automatic weapons to a location in the Middle East, where they would be used by ISIS. Despite learning of the ultimate destination of the weapons, the Dannon brothers agreed to manufacture and sell at least 55 additional fully-automatic “ghost guns” to the buyer from the southwest border, believing those weapons would be shipped to the Middle East, to ISIS and its members.
In furtherance of that agreement, on May 15, 2019, Mahde and Moyad Dannon manufactured five untraceable, fully-automatic, .223 caliber rifles from parts they had purchased online. At that time, the Dannon brothers were fully aware that the plan was to send the five automatic rifles overseas to ISIS. After building the fully-automatic rifles, the Dannon brothers sold all five weapons to undercover FBI agents posing as employees of the buyer from near the southwest border. Almost immediately thereafter, the Dannon brothers were arrested by the FBI.
“This case is the first of its kind for the Federal Bureau of Investigation where you have individuals allegedly making guns to sell and/or send overseas to ISIS,” said Grant Mendenhall, Special Agent in Charge of the FBI’s Indianapolis Division. “This indictment paints a vivid picture of the rapid rise of homegrown violent extremism and the lengths people are willing to go to in their support of terrorist activity.”
Mahde and Moyad Dannon appeared in U.S. District Court in Indianapolis on Thursday, July 11, 2019, to be arraigned on the charges in the Indictment. The Dannons were previously ordered detained, without bond, pending a trial in this matter.
The Dannon brothers face a maximum of 10 years’ imprisonment on each of the firearms charges, and a maximum of 20 years’ imprisonment on the attempt to provide material support to ISIS charge. The charges in the indictment are allegations. The defendants are presumed innocent until proven guilty in court.
The prosecution of this case is being handled by Assistant United States Attorney Matthew Rinka, Chief of the National Security Unit in the U.S. Attorney’s Office, and Trial Attorney Paul Casey of the National Security Division’s Counterterrorism Section.
Photograph #1
Photograph #1, above, depicts all of the firearms purchased from Mahde and Moyad Dannon during the course of the FBI JTTF investigation. The three rifle receivers in the left foreground of the picture were purchased by the Dannons in furtherance of their illegal firearms manufacturing scheme. The handgun receiver in the right foreground of the picture and the two piles of 7.62mm rifle ammunition in the middle of the table were seized during the execution of a federal search warrant at the Dannons' residence on May 15, 2019.
Photograph #2
Photograph #2, above, depicts .223 caliber rifles manufactured by Mahde and Moyad Dannon during the FBI investigation, including six fully-automatic weapons intended for shipment to the Middle East to support ISIS.
Federal Prosecutors Obtain Lengthy Prison Sentence Against Henderson Woman in Deadly Fentanyl Distribution CaseRead the Press Release
LAS VEGAS, Nev. – A Henderson, Nevada, resident who admitted to selling Fentanyl resulting in the overdose death of a person in 2017, was sentenced Thursday to 10 years in federal prison, announced United States Attorney Nicholas A. Trutanich for the District of Nevada and Assistant Special Agent in Charge Daniel Neill for the Drug Enforcement Administration.
Tianna Christina Cordova, 35, pleaded guilty in November 2018, to one count of distribution of a Fentanyl. She was charged in a superseding indictment in August 2018. In addition to the prison incarceration, United States District Judge Richard F. Boulware II, sentenced Cordova to 15 years of supervised release.
“This case serves as a deadly reminder of the dangers of Fentanyl,” said U.S. Attorney Trutanich. “In our continued effort to combat the opioid crisis in Nevada, the U.S. Attorney’s Office remains fully committed to the investigation and prosecution of fentanyl distributors.”
“This case highlights the community effort of the Clark County Coroner’s Office, Las Vegas Metro Police Department, and the US Attorney’s Office to bring justice to those who sell deadly poison to our community,” said Assistant Special Agent in Charge Neill.
According to court documents, Cordova used coded language in online advertisements to sell narcotics. She admitted that, on March 14, 2017, she sold an individual a controlled substance in the form of prescription pills that contained Fentanyl. After the person ingested the pills, the person died from multiple drug intoxication, namely from an overdose of Fentanyl, Acetyl Fentanyl, and Citalopram. Fentanyl is a synthetic opioid that is 80-100 times stronger than morphine and 50 times stronger than heroin. On June 21, 2018, during the execution of a search warrant at Cordova and co-defendant Robert James Thornburg’s residence, law enforcement found Oxycodone, Hydrocodone, Alprazolam, four firearms, and cash.
Co-defendant Thornburg is scheduled for a jury trial on August 26, 2019. He is charged with one count each of conspiracy to distribute Oxycodone and Amphetamine (Adderall), distribution of Oxycodone and Amphetamine (Adderall), distribution of Oxycodone, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a prohibited person.
The case was investigated by the Drug Enforcement Administration, with assistance from the Clark County Coroner’s Office and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Andrew Duncan prosecuted the case.
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Federal Jury Finds Dubois Man Guilty of Filing False Joint Tax Returns by Intentionally Under-Reporting His and His Wife’s IncomeRead the Press Release
PITTSBURGH, PA. - After deliberating less than three hours, a federal jury of nine men and three women found Gary E. Mills guilty of three counts of filing false tax returns following a three-week trial, United States Attorney Scott W. Brady announced today.
Mills, of Dubois, PA, was tried before Senior United States District Judge Nora Barry Fischer in Pittsburgh, Pennsylvania.
"People who lie about their income on their taxes steal from the citizens of western Pennsylvania who work hard and play by the rules," said U.S. Attorney Brady. "My office is strongly committed to promoting compliance with federal tax laws, and will draw on all available law enforcement tools to identify, prosecute and punish tax cheats."
"This guilty verdict confirms that all income is taxable, no matter what the source of the income is" said Guy Ficco, Special Agent in Charge of IRS-Criminal Investigation. "The verdict should also be a message to others who may be considering not reporting all of their income and paying their fair share of taxes that they too could face criminal prosecution by doing so. The Special Agents of IRS-CI will continue to investigate and recommend prosecution against those who cheat the tax system and victimize the honest taxpayers."
The evidence presented at trial established that on April 15, 2015, April 15, 2014, and August 1, 2014, Mills filed false joint tax returns by intentionally under-reporting his and his wife’s income to the IRS. During the trial, evidence was presented that the Defendant’s wife embezzled $12.9 million from Matthews International from 1999 to 2015. The Defendant’s wife embezzled more than $4 million during the 2012-2014 tax years. The Defendant allegedly believed the monies came from gambling. However, in April 2012, the Defendant received a Notice of Deficiency from an IRS civil audit focused on the 2003-2007 tax years. The Notice of Deficiency informed the Defendant and his wife that he owed more than $930,000 in back taxes, penalties, and interest for the years in question. While litigating and settling this civil audit, the Defendant offset gambling winnings with gambling losses resulting in approximately $100,000 in taxable income for each of 2012, 2013, and 2014 tax years, which resulted in approximately $15,000 in taxes per year. During these years, the Defendant spent approximately $2.7 million dollars, which included a $600,000 yacht, another large recreational boat, and various luxury and recreational vehicles.
Judge Fischer scheduled sentencing for December 12, 2019 at 9:00 a.m. The law provides for a total sentence of nine years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul Desai prosecuted this case for the government.
Pending sentencing, the court continued Mills on bond.
The Internal Revenue Service and the U.S. Postal Inspection Service conducted the investigation that led to the prosecution of Mills.
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
TULSA, Okla. – United States Attorney Trent Shores announced today the results of the July 2019 Federal Grand Jury B.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Miguel Angel Benitez. Unlawful Reentry of Removed Alien. Benitez, 51, of Tulsa, is charged with reentry of a removed alien, having returned to the United States unlawfully after being deported Aug. 13, 2010, at Del Rio, Texas. U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) and ICE- Enforcement and Removal Operations (ICE- ERO) are the investigative agencies.
Ricardo Bra-Torres and Jamie Lee Hughes. Methamphetamine with Intent to Distribute; Interstate Travel in Aid of Racketeering. Bra-Torres, 30, and Hughes, 33, both of Tulsa, are charged with possessing with intent to distribute 500 grams or more of methamphetamine. They are also charged with traveling from Oklahoma to Texas while possessing methamphetamine with intent to distribute and with distributing the drug. The Tulsa Police Department and Drug Enforcement Administration are the investigative agencies
Christopher Michael Cervantes. Attempted Coercion and Enticement of a Minor. Cervantes, 48, of Sperry, is charged with using the internet to attempt to coerce and entice a minor to engage in criminal sexual activity. The Tulsa Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations are the investigative agencies..
Levi Owen Handle. Fugitive in Possession of Firearms and Ammunition. Handle, 30, of Gravette, Arkansas, is charged with being a fugitive from justice and possessing a Mossberg 12-guage shotgun, a Ruger .22 caliber pistol, and ammunition. The Delaware County Sheriff’s Office and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Tyler Aaron Holmes. Felon in Possession of Firearm and Ammunition; Possession of Methamphetamine With Intent to Distribute; Possession of Firearm in Furtherance of a Drug Trafficking Crime. Holmes, 21, of Miami, is charged with being a felon in possession of a Sturm, Ruger & Co., Inc., .357 Magnum caliber revolver and associated ammunition. He is further charged with possession with intent to distribute methamphetamine and with possessing the .357 Magnum in furtherance of a drug trafficking crime. The Oklahoma Bureau of Narcotics and Dangerous Drugs; Delaware County Sheriff’s Office, Delaware County District Attorney’s Office, Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative Agencies.
Jimmy Gene Kelly, Jr. Felon in Possession of Firearm. Kelly, Jr., 49, of Miami, is charged with being a felon in possession of a Savage 12-guage shotgun after having previously been convicted in federal court of second degree murder in 1992. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and U.S. Marshals Service are the investigative agencies.
Patricia Lee Kendall and Peggy Lee Larue. Concealment of Government Property (Two Counts). Kendall, 66, and Larue, 63, both of Sapulpa, are charged with aiding and abetting each other to illegally take and conceal government property in the form of money from the Social Security Administration in the aggregate value of $224,237 in Social Security income. They are also charged with aiding and abetting each other to illegally take and conceal government property in the form of money from the Department of Defense Military Retirement Fund in the aggregate value of $129,765 in military retirement funds. The Social Security Administration- Office of Inspector General and Department of Defense Criminal Investigative Service are the investigative agencies.
Johnny Xavier Mendez. Failure to Register as a Sex Offender. Mendez, 42, of Tulsa, is charged with failure to register as a sex offender. He allegedly did not register nor update his registration when he moved to Oklahoma in February 2015. The Tulsa Police Department and U.S. Marshals Service are the investigative agencies.
Alexander Payne. Drug Conspiracy. Payne, age unavailable, of Hemet, California, is charged with conspiring with others to possess with intent to distribute 500 grams or more of methamphetamine and with distributing 500 grams or more of methamphetamine. The Tulsa Police Department and Drug Enforcement Administration are the investigative agencies.
Rogelio Hernandez Rodriguez. Sexual Exploitation of a Child; Possession of Child Pornography. Rodriguez, 30, of Wagoner, is charged with sexually exploiting a child and inducing the minor to engage in sexually explicit conduct for the purpose of producing visual depictions of the conduct. Rodriguez is further charged with knowingly possessing and accessing with intent to view child pornography in one or more graphic image files and video files. The sexually graphic images were stored on hard drives and multiple SD cards and allegedly involved the use of at least one prepubescent minor and a minor that had not attained 12 years of age. The Wagoner Police Department and FBI are the investigative agencies.
Deandre Marcel Simon. Felon in Possession of Firearms. Simon, 28, of Tulsa, is charged with being a felon in possession of a Forjas Taurus S.A. .25 ACP caliber semi-automatic pistol and associated ammunition. The Tulsa Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
David Jason Thomas. Felon in Possession of Firearm and Ammunition. Thomas, 46, of Vinita, is charged with being a felon in possession of a Glock, 9 x 19 caliber pistol and ammunition. The Delaware County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Corey Daniel Vessar. Attempted Coercion and Enticement of a Minor. Vessar, 30, of Skiatook, is charged with using the internet to attempt to coerce and entice a minor to engage in criminal sexual activity. The Tulsa Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations are the investigative agencies.
Thomas Kyle Williams. Attempted Coercion and Enticement of a Minor; Receipt of Child Pornography; Possession of Child Pornography. Williams, 40, of Sand Springs, is charged with knowingly attempting to persuade a minor to engage in sexual activity. He is further charged with knowingly receiving child pornography and is also charged with possessing child pornography on one or more image files and video files. The Tulsa Police Department and FBI are the investigative agencies.
Shelvon Williams. Felon in Possession of a Firearm and Ammunition. Williams, 25, of Tulsa, is charged with being a felon in possession of Glock 21 pistol and ammunition. The Tulsa Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Ex-Beverly Hills Stockbroker Convicted of Securities Fraud in $200 Million Portfolio-Pumping Stock Manipulation SchemeRead the Press Release
LOS ANGELES – A former Beverly Hills stockbroker who worked with fugitive hedge fund manager Florian Homm was found guilty by a jury late this afternoon of 18 federal criminal charges for participating in a stock manipulation scheme designed to pump up the reported profits of hedge funds that fraudulently caused investors approximately $200 million in losses.
Todd Ficeto, 52, of Marion, Ohio, was found guilty after a 17-day jury trial. The jury found Ficeto guilty of one count of conspiracy to commit securities fraud and wire fraud, seven counts of securities fraud, two counts of investment adviser fraud, one count of money laundering conspiracy, five counts of unlawful money transactions, one count of obstruction of justice, and one count of making false statements.
Ficeto was the president of a Beverly Hills-based broker-dealer, Hunter World Markets, which he co-owned with Florian Wilhelm Jürgen Homm, who was first indicted in March 2013 on charges of securities fraud and wire fraud after he was arrested in Italy. Homm later fled to Germany and is a fugitive from justice. Homm was the founder and chief investment officer of Absolute Capital Management Holdings (ACMH), a Cayman Islands-based investment advisor that operated from Palma de Majorca in Spain and managed eight hedge funds (the Absolute Funds).
Between September 2004 and September 2007, Homm directed the Absolute Funds to buy billions of shares of thinly traded, United States-based “penny stocks” through Hunter World Markets that Ficeto located and brought to Homm through investment banking deals. Ficeto then facilitated the manipulative stock purchases and caused millions of shares of the same penny stocks to be given to Homm, Hunter World Markets, and CIC Global Capital, which was controlled by co-defendants Colin Heatherington, of Port Alberni, British Columbia, Canada; and Craig Heatherington, of Queensland, Australia.
Ficeto, Homm, and other co-conspirators fraudulently manipulated the penny stocks to inflate and artificially prop up their prices to exaggerate the purported profitability of the Absolute Capital hedge funds. As a result, the co-conspirators were able to sell their own shares of the penny stocks at the inflated prices to the hedge funds. The stock price inflation also served to fraudulently overstate the performance of the hedge funds which, in turn, generated substantial performance fees and other compensation for defendant Homm and his co-conspirators. The co-conspirators then used the inflated performance figures to induce investments from unsuspecting victim-investors.
Ficeto and his co-conspirators worked together in an elaborate conspiracy to launder the illicit proceeds throughout the world.
Ficeto also engaged in unlawful monetary transactions by sending nearly $10 million of illicit proceeds to an account in the Cook Islands days before his testimony before the Securities and Exchange Commission, and then lied to the SEC about the Cook Islands account. Ficeto also used a hedge fund called the Hunter Fund, in which the Absolute Funds invested and also was used to conceal investments by the Absolute Funds in the penny stocks and to manipulate the stock market.
As the scheme unraveled, Homm abruptly resigned from the firm in the middle of the night on September 18, 2007, according to court documents.
In March 2013, Homm was taken into custody in Italy after being arrested at the Uffizi Gallery in Florence. Homm was arrested pursuant to a provisional arrest warrant sought by federal prosecutors in Los Angeles after they filed a criminal complaint containing charges related to the alleged fraud scheme. The United States sought Homm’s extradition to the United States and he was ordered extradited by the Italian Ministry of Justice, but Homm ultimately was released and is believed to have fled to Germany, where he remains a fugitive.
Colin Heatherington is in Canada and facing extradition to the United States.
United States District Judge Virginia A. Phillips has scheduled an October 7 sentencing hearing for Ficeto. Each charge of conspiracy to commit securities fraud and securities fraud carry a statutory maximum penalty of 25 years in federal prison. The money laundering charges each carry a maximum penalty of 10 years in federal prison. Each charge of investment adviser fraud, obstruction of justice, and false statements carry a maximum statutory penalty of five years in federal prison.
This matter was investigated by Federal Bureau of Investigation. The United States Securities and Exchange Commission, and the Financial and Regulatory Authority provided assistance to the FBI’s investigation.
This case is being prosecuted by Assistant United States Attorneys Cassie D. Palmer of the Public Corruption and Civil Rights Section, Scott Paetty of the Major Frauds Section, and Ian V. Yanniello of the General Crimes Section.
Estados Unidos extradita a ex Ministro de Agricultura de Colombia condenado por peculado y contratación ilegal del gobiernoRead the Press Release
WASHINGTON - Estados Unidos extraditó hoy a Andrés Felipe Arias Leiva, quien fue Ministro de Agricultura y Desarrollo Rural de Colombia de 2005 a 2009, para enfrentar una sentencia de prisión en ese país basada en una condena del 2014 por la Corte Suprema de Colombia por dos delitos cometidos mientras Arias desempeñaba un cargo público.
El Asistente del Fiscal General Brian A. Benczkowski de la División de lo Penal del Departamento de Justicia de Estados Unidos y la Fiscal Ariana Fajardo Orshan del Distrito Sur de Florida hicieron el anuncio.
“La extradición de Andrés Arias es un testimonio del compromiso de Estados Unidos con las obligaciones de nuestro tratado de extradición y la fortaleza de nuestra cooperación con Colombia para hacer cumplir la ley,” dijo el Asistente del Fiscal General Benczkowski. “Agradezco al equipo de la Oficina de Asuntos Internacionales y a la Fiscalía General de Estados Unidos para el Distrito Sur de Florida por sus incansables esfuerzos durante años para asegurar que Arias cumpla su condena en Colombia.”
“Los fiscales federales adjuntos para el Distrito Sur de Florida, junto con los abogados de la Oficina de Asuntos Internacionales del Departamento, han trabajado arduamente para asegurar que el ex funcionario del gobierno colombiano Andrés Arias sea extraditado de regreso a su país de origen para cumplir una sentencia impuesta por el más alto tribunal de esa nación,” dijo la Fiscal Federal Fajardo Orshan. “Estamos agradecidos por la dedicación del Fiscal Federal Auxiliar de Estados Unidos Robert J. Emery y el Director Asociado Christopher J. Smith y la Procuradora de Primera Instancia Rebecca A. Haciski de la Oficina de Asuntos Internacionales de la División de lo Penal del Departamento De Justicia por su trabajo para hacer que esto sea posible. Nuestra Oficina se compromete a defender el estado de derecho y garantizar que se haga justicia de manera adecuada para todas las partes.”
Arias, ciudadano de Colombia que ingresó a los Estados Unidos en 2014 y residía en Weston, Florida, fue condenado el 16 de julio de 2014 por la División de Casación Penal de la Corte Suprema de Justicia de Colombia por dos delitos, peculado por apropiación a favor de terceros, en violación del artículo 397 del Código Penal colombiano y celebración de contratos sin el cumplimiento de los requisitos legales, en violación del artículo 410 del mismo código. Arias estuvo presente y representado por un abogado en su juicio en Colombia y, tras su condena, el tribunal colombiano lo condenó a cumplir 209 meses de prisión. Como se detalla en la decisión de 193 páginas emitida por la Corte Suprema de Justicia de Colombia, la conducta delictiva de Arias se relacionó con el desvío de fondos dentro del programa Argo Ingreso Seguro del gobierno colombiano, que fue responsable de implementar durante su mandato como Ministro de Agricultura y Desarrollo Rural, un cargo a nivel de gabinete en el poder ejecutivo de Colombia, desde 2005 hasta 2009.
Estados Unidos respondió a una solicitud de extradición de Arias presentada por la República de Colombia, que Arias impugnó enérgicamente tanto en el Distrito Sur de Florida como en el Tribunal de Apelaciones de Estados Unidos para el Undécimo Circuito.
El 28 de septiembre de 2017, un juez magistrado de EE. UU. en el Distrito Sur de Florida dictaminó que Arias podría ser extraditado a Colombia para cumplir la sentencia basándose en su condena. Luego, Arias presentó una petición de recurso de habeas corpus, que el tribunal de distrito para el Distrito Sur de Florida denegó el 5 de octubre de 2018. Arias apeló esa decisión ante el Undécimo Circuito. Tras una extensa sesión informativa y argumentativa, el litigio culminó el 8 de julio de 2019, cuando el tribunal de apelaciones rechazó los argumentos de Arias contra la extradición. De acuerdo con las opiniones del Departamento de Estado de EE. UU. y los 40 años de práctica de extradición entre Estados Unidos y Colombia, el tribunal de apelaciones afirmó que el tratado de extradición entre los dos países sigue en plena vigencia.
Luego de una revisión exhaustiva del caso de Arias, el Departamento de Estado emitió una orden para la entrega de Arias a las autoridades colombianas. Hoy, el Servicio de Alguaciles de Estados Unidos ejecutó esa orden, transportó a Arias a Colombia y lo entregó a la custodia de las autoridades colombianas. La extradición de Arias se da por finalizada.
Los procedimientos de extradición y el subsiguiente litigio de apelación fueron manejados por el Director Asociado Christopher J. Smith y la Procuradora de Primera Instancia Rebecca A. Haciski de la Oficina de Asuntos Internacionales de la División de lo Penal, y los Fiscales Federales Auxiliares Robert J. Emery y Emily M. Smachetti del Distrito Sur de Florida con el apoyo de innumerables abogados y especialistas en asuntos internacionales en la Oficina de Asuntos Internacionales de la División de lo Penal.
Engineering Firm Owner Convicted of Bribing Washington Township OfficialsRead the Press Release
An owner of an engineering firm, Fazullah Khan, 58, of Troy, was convicted today by a jury on all four counts of bribery with which he was charged, United States Attorney Matthew Schneider announced.
Schneider was joined in the announcement by Timothy R. Slater, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
The five day trial was conducted before United States District Judge Robert H. Cleland in Port Huron, Michigan. The jury deliberated approximately an hour and a half before returning their guilty verdicts.
According to evidence presented at trial, in 2014, Khan bribed one public official of Washington Township with $10,000 in cash in return for a million dollar per year engineering contract, and another public official there with a secret financial interest in a property development deal worth hundreds of thousands of dollars for his assistance with the contract and efforts to get water and sewer lines to Khan’s property. Unbeknownst to Khan, both township officials that he was trying to bribe were working with the FBI.
“Our office is continuing our battle against bribery and corruption every day, and the jury’s guilty verdict shows the people of Michigan won’t stand for this corruption, either,” United States Attorney Matthew Schneider stated.
This case is part of the government’s wide-ranging corruption investigation centered in Macomb County, Michigan. The investigation of this case was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys R. Michael Bullotta and Steven Cares.
The conviction of Khan brings to 22 the number of individuals convicted in this corruption investigation.
Each of the four bribery charges carries a maximum sentence of 10 years’ imprisonment and a fine of $250,000 Khan is scheduled to be sentenced by Judge Cleland on November 28, 2019
Eagle Butte Man Sentenced for AssaultRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man convicted of Assault by Striking, Beating, or Wounding, and Simple Assault was sentenced on July 8, 2019, by U.S. District Judge Roberto A. Lange.
Jared Bourland, age 38, was sentenced to 14 months in federal prison, followed by 1 year of supervised release, and ordered to pay $2,137.80 in restitution and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Bourland was indicted by a federal grand jury on November 14, 2017. He was found guilty by a jury trial on April 26, 2019.
The convictions stem from incidents on December 28, 2016, and December 29, 2016, when law enforcement was doing a welfare check at the Bourland residence based on a call from Bourland’s mother-in-law. When law enforcement arrived, the victim was upset and crying. The victim left the residence with law enforcement. Later that night, the victim disclosed that over the past two days, she had been strangled, kicked, and punched by Bourland. She was transported to the Indian Health Services where she was treated for her injuries.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Bourland was immediately turned over to the custody of the U.S. Marshals Service.
District Man Pleads Guilty to Possessing Stolen Loaded Firearm in Broad DaylightRead the Press Release
WASHINGTON – Delonte Bridges, 28, of Northwest, D.C., pled guilty today to possessing a stolen loaded firearm in broad daylight in Northwest, D.C., announced U.S. Attorney Jessie K. Liu, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Bridges pled guilty before the Honorable Amy Berman Jackson in the U.S. District Court for the District of Columbia to one count of unlawful possession of a firearm by a person convicted of a crime punishable by imprisonment for a term exceeding one year. The Defendant faces up to ten years of prison. Judge Jackson scheduled Bridges’ sentencing for October 2, 2019.
According to the government’s evidence, on October 21, 2018, at approximately 4:30 p.m., officers of MPD’s Gun Recovery Unit were on patrol in two vehicles in the First Police District at approximately 4:30 p.m. As officers turned south into the 1100 block of First Place, Northwest, an area known for narcotics and firearms offenses, an announcement that law enforcement was entering the area was broadcasted by individuals standing in the street. In response to the announcement, Bridges initially began walking away from law enforcement and then engaged in an unprovoked flight. In response, law enforcement officers exited their vehicle, activated their body camera video, and followed in pursuit. Body camera video of responding officers showed that a firearm was visible on the waistband of Bridges after he gave up running from law enforcement and was on the ground. Upon his arrest, officers recovered from Bridges’ waistband a Glock 27 .40 caliber firearm with one round of .40 caliber ammunition in the chamber and five rounds of .40 caliber ammunition in the magazine. MPD officers subsequently learned that the firearm had been reported stolen during a theft that occurred on July 23, 2018 in the 900 block of Rhode Island Avenue, Northeast.
In 2011, Bridges was convicted in the D.C. Superior Court of possession with intent to distribute crack cocaine in the same location that he was found with the stolen loaded firearm in this case.
In announcing the plea, U.S. Attorney Liu and Chief Newsham, commended the work of those who investigated the case. They also cited the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Paralegal Specialist Candace Battle and Assistant U.S. Attorney Christopher Macchiaroli of the Violent Crime and Narcotics Section, who prosecuted the case.
District Man Pleads Guilty to Participating in Large-Scale Narcotics ConspiracyRead the Press Release
WASHINGTON – Artinis Winston, 43, of Northeast, D.C. pled guilty yesterday to his role in a large-scale narcotics conspiracy, announced U.S. Attorney Jessie K. Liu, Ashan M. Benedict, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Winston pled guilty before the Honorable Amit P. Mehta in the U.S. District Court for the District of Columbia to one count of conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin on July 11, 2019. Winston faces a mandatory minimum sentence of five years of incarceration and a maximum period of incarceration of forty years. Winston will also be placed on four years of supervised release after completing his sentence. As part of his guilty plea to engaging in the conspiracy, Winston accepted responsibility for trafficking 360 grams of heroin and 40 grams of buprenorphine (commonly referred to as suboxone). Winston’s conviction in the case represents his fourth felony conviction. Judge Mehta scheduled Winston’s sentencing for September 25, 2019.
According to the Government’s evidence, in June 2017, ATF began investigating the trafficking of narcotics from the Next Level Cuts barbershop located in the 2400 block of MLK, Jr., Avenue, SE and adjoining property above. Law enforcement discovered a coordinated drug trafficking operation that was centered at the barbershop and extended into Maryland through surveillance, controlled purchases from inside and outside the barbershop, residential search warrants, cellphone searches, arrests, jailhouse calls, pleas, and cooperating witnesses. The investigation established that drug traffickers used the barbershop and adjoining property as a stash location.
The investigation led to a series of arrests beginning in February 2018. These arrests led to the recovery of three firearms from the barbershop, one firearm in a residence, the seizure of more than $7,000 in cash, and without packaging, the seizure of more than 300 grams of PCP, more than 150 grams of heroin, more than 100 grams of fentanyl, boxes of suboxone strips, and more than 100 grams of a cutting agents.
While multiple conspirators had been arrested in 2018, Winston was a fugitive for approximately nine months. Coconspirators Lonnell Tucker, 42, of Temple Hills, Md., Anthony Fields, 45, of Washington, D.C., and Abdul Samuels, 45, of Washington, D.C., were found guilty on March 21, 2019, following a trial in the U.S. District Court for the District of Columbia before the Honorable Amit P. Mehta.
During the trial, officers and agents of the Prince George’s County Police Department, Metropolitan Washington Airports Authority, and the Maryland Office of the State Prosecutor, testified regarding separate arrests of coconspirators during the course of ATF’s investigation, which resulted in the seizure of narcotics, drug paraphernalia, and U.S. currency.
On June 13, 2019, Fields was sentenced to 16 years of incarceration to be followed by eight years of supervised release. On June 14, 2019, Tucker was sentenced to five years of incarceration to be followed by three years of supervised release. Samuels has not yet been sentenced for his role in the drug trafficking conspiracy. Three other defendants – Darryl Smith, 41, of Washington, D.C., James Venable, 47, of Fort Washington, Md., and Lacy Hamilton, 42, of Suitland, Md. – pled guilty earlier to federal charges. Smith managed the barbershop and was sentenced to 80 months in prison relating to his possession of narcotics in the barbershop on February 1, 2018, and for his possession of packaged fentanyl and a loaded firearm following an arrest by MPD in December 2017 outside of the barbershop. Venable, another conspirator, was sentenced to a 37-month prison term following his possession of narcotics and a firearm in both Washington, D.C. during a December 2017 arrest by MPD and at his residence in Maryland on February 1, 2018. Venable also acknowledged selling narcotics to an ATF confidential informant in July 2017. Hamilton was sentenced to a 15-month prison term for selling narcotics outside the barbershop and in Maryland as part of the charged narcotics conspiracy.
In announcing the plea, U.S. Attorney Liu, Special Agent in Charge Benedict, and Chief Newsham commended the assistance provided by officers and agents of the Prince George’s County Police Department, Metropolitan Washington Airports Authority, the Maryland Office of the State Prosecutor, and the United States Marshal Service who assisted in trying to apprehend Winston. They also acknowledged the efforts of those who handled the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Christopher Macchiaroli and Gregory Rosen of the Violent Crime and Narcotics Trafficking Section, and Paralegal Specialist Candace Battle.
Des Peres Man Pleads Guilty to Production of Child Pornography ChargesRead the Press Release
St. Louis, MO – William Timothy Hopmeier, 48, of Des Peres, pled guilty to two counts of Production of Child Pornography. Hopmeier appeared before United States District Judge Audrey G. Fleissig and set sentencing for October 23, 2019.
According to court documents, from June 2017 to January 31, 2018, Hopmeier and co-defendant Kayla Bridges used a cell phone to video record two minor females engaging in sexually explicit conduct on several occasions.
Hopmeier faces a mandatory minimum term of imprisonment of at least 15 years. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by the St. Louis County Police Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Rob Livergood is handling the case for the U.S. Attorney’s Office.
Department of Justice Enables Direct Tribal Access to FBI National Sex Offender RegistryRead the Press Release
Direct Access to FBI CJIS’s National Sex Offender Registry Helps Tribal Governments and Law Enforcement Track and Identify Sex Offenders
The U.S. Department of Justice announced a new tool on July 11, 2019 giving tribal governments the ability to directly input data and gain access to the FBI’s National Sex Offender Registry (NSOR) using the Tribe and Territory Sex Offender Registry System (TTSORS). The system connection will be available to all tribal governments already participating in the Tribal Access Program (TAP), which allows information sharing between tribal and federal government criminal information systems.
TTSORS is a no-cost registry system provided by the Justice Department’s Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART). The Department’s Office of the Chief Information Officer (OCIO) developed the connections which allows tribes to seamlessly submit new and updated sex offender information directly from TTSORS to NSOR.
“The Department of Justice is dedicated to addressing the public safety crisis in American Indian and Alaska Native communities, including the high rates of sexual violence against women and children,” said Attorney General William P. Barr. “Providing a direct connection to the FBI National Sex Offender Registry gives tribal law enforcement the information they need to investigate and prevent these heinous offenses.”
American Indian and Alaska Native people suffer persistently high rates of victimization, including from sexual assault. According to a 2016 study funded by the National Institute of Justice, more than four in five American Indian and Alaska Native adults have experienced some form of violence in their lifetime, and more than half of all American Indian and Alaska Native women have experienced violence from an intimate partner. In June, the department extended a deadline for tribes to apply for up to $167 million in federal funds through August 16, 2019, to support crime victims throughout Indian country.
“The direct connection between the National Sex Offender Registry and Tribes and Territories Sex Offender Registry System provides increased resources for identifying, tracking, and sharing information about persons convicted of committing these crimes,” said Gwendena L. Gatewood, Chairwoman of the White Mountain Apache Tribe of the Fort Apache Indian Reservation. “It will also allow for further improvements in providing a safer community for all involved to integrate tribal law, custom, tradition and practices in a comprehensive fashion consistent with holding offenders accountable.”
“Standing Rock has always had a priority of ensuring public safety,” said Mike Faith, Chairman of the Standing Rock Sioux Tribe. “Technological advances to our systems ensure that our SORNA staff are able to input offender information and get back in the field while ensuring compliance is maintained.”
The Sex Offender Registration and Notification Act, Title I of the Adam Walsh Child Protection and Safety Act of 2006, requires that, when an offender initially registers or updates his or her information in a jurisdiction, that the state, tribe, territory or District of Columbia must submit immediately the information to NSOR as well as other jurisdictions where the offender has to register. TTSORS is a fully functioning registry system that complies with SORNA requirements. TTSORS was created to assist the Indian tribes that have elected to implement SORNA.
Since 2015, the SMART Office, OCIO, the FBI, the Office of Tribal Justice, Community Oriented Policing Services and the Office for Victims of Crime, have worked together to develop the Tribal Access Program to provide tribes direct access to national crime information systems for both criminal and non-criminal justice purposes. This includes the ability to directly enter NSOR data and enhance the capacity to collect and submit fingerprints and palm prints to the FBI. TAP has been instrumental in assisting tribes with ongoing implementation of SORNA. In fiscal year 2019, the department expanded TAP to 25 more tribes, for a total of 72 participating tribes.
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Current and Former Tribal Officials Indicted for Embezzlement & Theft from an Indian Tribal Organization and Aiding and AbettingRead the Press Release
United States Attorney Ron Parsons announced today that past and present Crow Creek Sioux Tribe councilmembers were indicted by a federal grand jury for embezzlement & theft from an Indian tribal organization, and aiding and abetting.
Roland Robert Hawk, Sr., age 50, Francine Maria Middletent, age 55, Roxanne Lynette Sazue, age 62, and Jacquelyn Ernestine Pease, age 34, all from Ft. Thompson, South Dakota, were indicted on July 9, 2019. All four defendants appeared before U.S. Magistrate Judge Veronica Duffy on July 12, 2019, and pled not guilty to the Indictment.
According to the Indictment, in about March 2014 through February 2019, Hawk, Middletent, Sazue, and Pease embezzled, stole, willfully misapplied, willfully permitted to misapply, and converted to their own use over $1,000 of monies, funds, credit, goods, assets, and other property belonging to the Crow Creek Sioux Tribe. During the timeframe, Hawk served as the elected Treasurer of the tribe, and all of the other defendants worked for Hawk in the tribe’s finance office. In their respective leadership roles and employment positions, the defendants had the opportunity to access the funds that were embezzled from the tribe.
The maximum penalties for each defendant upon conviction are as follows: 5 years imprisonment and/or a $250,000 fine; 3 years of supervised release; $100 to the Federal Crime Victims Fund; and restitution may be ordered.
The charges are merely accusations and the defendants are presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Attorney’s Office and the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Hawk, Sr. was remanded to the custody of the U.S. Marshals Service. Defendants Pease, Middletent, and Sazue were released on bond. A trial date has not been set.
The case was brought pursuant to The Guardians Project, a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities. The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities. Led by the U.S. Attorney’s Office, the participating agencies include: Federal Bureau of Investigation; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; Internal Revenue Service, Criminal Investigation Division; U.S. Postal Inspector Service; U.S. Postal Service, Office of Inspector General.
For additional information about The Guardians Project, please contact the U.S. Attorney’s Office at (605) 330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.
Convicted Felon Sentenced to Prison for Possession of a FirearmRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to seven years in prison for his possession of a firearm as a convicted felon and while under a term of federal supervised release during a traffic stop in Henrico County.
According to court documents, Jabali Dickerson, 27, was in a vehicle with two other people that was stopped by Henrico County police officers in December 2018. Upon speaking with the driver, the officer smelled marijuana emanating from the vehicle and noticed at the feet of Dickerson, in the back seat, a backpack. A search of the vehicle revealed a loaded Glock, model 30, .45 caliber, semi-automatic pistol, in the backpack and a check stub with Dickerson’s name. A search of Dickerson’s pants pocket revealed the check linked to the check stub found in the backpack. It was later confirmed that Dickerson was a convicted felon and on a term of federal supervised release at the time of his arrest.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, and Humberto I. Cardounel, Jr., Chief of Henrico County Police Division, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson. Assistant U.S. Attorney Erik S. Siebert prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:19-cr-43.
Concord Man Indicted for Making False Statements to a Federal Officer in Connection with OSHA InvestigationRead the Press Release
CONCORD - Nathan Craigue, 43, of Concord, was indicted by a federal grand jury for making false statements to a federal officer in connection with an investigation of the death of an employee, United States Attorney Scott W. Murray announced today.
According to the indictment, on or about August 28, 2018, Craigue made materially false statements to an Occupational Safety and Health Administration (OSHA) Compliance Safety & Health Officer when he said that an individual who had died as a result of a workplace accident earlier that day was a subcontractor. The indictment alleges that the victim actually was an employee and not a subcontractor.
A second count of the indictment charges Craigue with making a similar false statement to the OSHA officer on October 24, 2018.
Craigue was arraigned in federal court today and his trial has been scheduled for September 17, 2019.
This matter was investigated by the Department of Labor’s Office of Inspector General and OSHA. The case is being prosecuted by Assistant U.S. Attorneys John S. Davis and Anna Dronzek.
The charges and allegations contained in an indictment are merely accusations. A defendant is presumed innocent until and unless proven guilty.
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Columbian National Pleads Guilty to Operating an International Fentanyl Trafficking Organization from a Canadian PrisonRead the Press Release
FARGO – United States Attorney Drew H. Wrigley, District of North Dakota, along with United States Attorney Billy J. Williams, District of Oregon, and Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, announced that a Colombian fentanyl trafficker, who was scheduled to go to trial October 1, 2019, pleaded guilty earlier today to being the leader and organizer of a continuing criminal enterprise while incarcerated in Quebec, Canada. He moved fentanyl and other similar substances from Canada and China into the United States and those drugs resulted in serious bodily injury and deaths.
Daniel Vivas Ceron, 38, of Colombia, pleaded guilty before U.S. Magistrate Judge Alice R. Senechal in Fargo, ND, to continuing criminal enterprise, conspiracy to distribute controlled substances and controlled substance analogues resulting in serious bodily injury and death, and money laundering. Vivas Ceron faces a statutory maximum sentence of life in prison at his sentencing, date to be determined.
At the plea hearing, Vivas Ceron admitted that between 2013 and 2017, Chinese sources shipped several hundred pounds of fentanyl and fentanyl analogues to the United States and Canada. Vivas Ceron and members of his conspiracy imported these opioids into the United States and distributed them to their customers around the country. Vivas Ceron ran his drug trafficking organization from a jail cell in Canada, and he concealed his identity to facilitate the conspiracy by using aliases, encrypted WICKR accounts, and numerous email addresses. Vivas Ceron and his co-conspirators’ distribution in Canada and the United States resulted in 15 overdoses in North Dakota, Oregon, New Jersey, North Carolina, and Rhode Island, including four fatal overdoses, one of which was Grand Forks resident 18-year-old Bailey Henke.
“From a Canadian jail cell, Daniel Vivas Ceron directed a deadly drug ring that fueled the opioid epidemic and took the lives of four Americans,” said Assistant Attorney General Brian Benczkowski. “Today’s guilty plea brings some measure of justice for the victims and families that fell prey to Vivas Ceron’s dangerous organization and its tragic track record of spreading addiction and abuse.”
United States Attorney Drew H. Wrigley for the District of North Dakota said, “Ultimate justice can seem elusive in a case with such a wide swath of destruction. The defendant and his co-conspirators built themselves an organization that made them into regional, national, and international merchants of death, and today’s guilty plea is an important milestone in the quest for justice on behalf of those who died and those who were injured by the defendant’s ruinous quest for profits.”
“I want to personally commend the team of prosecutors and investigators who worked so ably across the nation and globe to make today’s guilty plea possible. We will work assiduously to secure a sentence that reflects the light of justice on the far-reaching damage done to innumerable victims, families, and communities,” Wrigley stated.
“Daniel Vivas Ceron’s heinous crimes have caused unthinkable pain and anguish for dozens of people in Oregon and far beyond, including four victims who lost their lives to fatal overdoses. At a time when our country desperately tries to free itself from the painful grip of the opioid crisis, criminals like Ceron and his more than 20 co-defendants are seeking to profit off addiction and death,” said Billy J. Williams, United States Attorney for the District of Oregon. “The tragic irony of crime is that while Ceron will continue to live out his life in prison or beyond, four of his victims will not. The damage he caused is permanent. We cannot forget that.”
“My heart goes out to the friends and families of those who lost their lives as a result of the greed and selfishness of all of the individuals involved in this case,” said Brad Bench, Special Agent in Charge of Homeland Security Investigations, Seattle, WA. “The amount of cooperation between HSI and our state, federal, and international partners was invaluable to halting the deadly actions of this complex drug organization. While we will never know how many lives are saved because of our efforts, we hope we are able to provide just a small bit of peace to the families whose lives are forever changed as a result of the offender’s careless actions.”
“The Portland Police Bureau is fully committed to working with our local, state, and federal partners to combat the illegal distribution and trafficking of deadly opioids in our communities,” said Art Nakamura, Commander, Tactical Operations – Drugs and Vice, Portland Police Bureau, Portland, OR. “The Police Bureau, along with our partners, strive to keep our community members safe from these drug traffickers who sell these deadly drugs in our neighborhoods throughout our country. With this partnership, we will hold those responsible for distributing these deadly drugs accountable.”
On January 25, 2017, Vivas Ceron was extradited to the United States from Panama after Panamanian authorities authorized the extradition. Following his deportation from Canada, Vivas Ceron was taken into custody at the Tocumen International Airport, Panama City, Panama, on July 17, 2015, pursuant to an arrest warrant in connection with an Indictment filed in the District of North Dakota. After Vivas Ceron’s arrest in July 2015, the U.S. Attorney’s Office and the Justice Department’s Office of International Affairs, together worked diligently to extradite Vivas Ceron.
This case is part of “Operation Denial,” an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation into the international trafficking of fentanyl and other lethal drugs, and was significantly aided by the national and international coordination led by the multi-agency Special Operations Division (S.O.D.) near Washington, DC, as part of “Operation Deadly Merchant.” The investigation started in North Dakota on January 3, 2015, with the overdose death in Grand Forks, ND, of Bailey Henke.
Additional defendants charged in federal court in this investigation include:
District of North Dakota
- Jian Zhang, aka Hong Kong Zaron, 40, of China; Jason Joey Berry, aka Daniel Desnoyers, 36, of Quebec, Canada; Xuan Cahn Nguyen, aka Jackie and Jackie Chan, 39, of Quebec Canada; Marie Um, aka Angry Bird, 38, of Quebec, Canada; Vannek Um, 41, of Quebec, Canada; and Linda Van, 27, of Quebec, Canada, were charged by a Superseding Indictment returned on Jan. 18, 2018, with drug trafficking conspiracy. Also charged with international money laundering conspiracy were Na Chu, 38; Yeyou Chu, 37; Cuiying Liu, 63; and Keping Zhang, 63, all Chinese nationals;
- In a separate indictment returned on March 22, 2018, Steven Barros Pinto, aka Yeaboy, 38, of Pawtucket, Rhode Island, was charged with conspiracy to possess with intent to distribute and distribute controlled substances and controlled substance analogues resulting in serious bodily injury and death, conspiracy to import controlled substances and controlled substance analogues into the United States resulting in serious bodily injury and death, and continuing criminal enterprise. On Nov. 28, 2018, a Superseding Indictment was filed adding the charges of obstruction of justice and money laundering conspiracy. Trial is set for October 1, 2019;
- Brandon Corde Hubbard, 44, of Portland, OR, pleaded guilty to conspiracy to distribute controlled substances resulting in serious bodily injury and death, distribution of a controlled substance resulting in death, and money laundering conspiracy. He was sentenced on July 13, 2016, to serve life in federal prison;
- Ryan Jon Jensen, 24, of Grand Forks, ND, pleaded guilty on February 27, 2015, to conspiracy to distribute controlled substances resulting in serious bodily injury and death, one count of distribution of a controlled substance resulting in death, two counts of distribution of a controlled substance resulting in serious bodily injury, and money laundering conspiracy. He was sentenced on February 1, 2016, to serve 240 months in federal prison;
- Joshua Tyler Fulp, 24, of Grand Forks, ND, pleaded guilty on June 23, 2015, to conspiracy to distribute controlled substances resulting in serious bodily injury and death. He was sentenced to serve 144 months in federal prison;
- Kain Daniel Schwandt, 23, of Grand Forks, ND, pleaded guilty on July 24, 2015, to conspiracy to distribute controlled substances. He was sentenced on January 25, 2016, to serve 42 months in federal prison;
- David Todd Noye Jr., 18, of Grand Forks, ND, pleaded guilty on May 4, 2015, to conspiracy to distribute controlled substances. He was sentenced on January 25, 2016, to serve 39 months in federal prison;
- Jameson Robert Sele, 24, of Grand Forks, ND, pleaded guilty to conspiracy to distribute controlled substances. He was sentenced on July 27, 2015, to serve 36 months in federal prison;
- Ronnie Lee Helms, 34, of Acworth, GA, pleaded guilty to conspiracy to possess with intent to distribute a controlled substance and controlled substance analogue resulting in serious bodily injury and death. His sentencing is scheduled for October 1, 2019;
- Braden James Foley, 32, of Olympia, WA, pleaded guilty on August 11, 2016, to conspiracy to possess with intent to distribute and distribution of controlled substances. He was sentenced to serve 30 months in federal prison on November 21, 2016;
- Anthony Santos Gomes, 34, originally of Rhode Island and Davie, FL, pleaded guilty to conspiracy to possess with intent to distribute and distribute controlled substances and controlled substance analogues resulting in serious bodily injury and death, and money laundering conspiracy. In addition to pleading guilty, Gomes agreed to forfeit a residence located in Davie, FL; $162,836.00 in cash; 2007 Maserati Quattroporte; 2017 Polaris Sportsman XP ATV; and assorted jewelry valued at $64,725.00. His sentencing has been set for November 15, 2019;
- Amanda Schneider, 29, Port S. Lucie, FL, pleaded guilty on September 17, 2018, to conspiracy to possess with intent to distribute and distribution of controlled substances. She was sentenced on January 17, 2019, to 15 months in federal prison;
- Keveen Nobre, 29, Providence, RI, pleaded guilty on October 10, 2018, to conspiracy to possess with intent to distribute and distribution of controlled substances. He was sentenced on April 17, 2019, to 30 months in federal prison;
- Robinson Gomez, 36, Charlotte, NC, pleaded guilty on January 10, 2019, to conspiracy to possess with intent to distribute and distribution of controlled substances. He was sentenced on April 17, 2019, to 180 months in federal prison;
- David Campbell, 58, Plantation, FL, pleaded guilty on January 10, 2019, to
conspiracy to possess with intent to distribute and distribution of controlled substances. He was sentenced on April 17, 2019, to 120 months in federal prison;
- Louis Bell, 31, Port St. Lucie, FL, pleaded guilty on November 8, 2018, to conspiracy to possess with intent to distribute and distribution of controlled substances. He was sentenced on April 18, 2019, to 204 months in federal prison;
- Elizabeth Ton, 28, David, FL, pleaded guilty on June 18, 2018, to money laundering conspiracy. She was sentenced on March 8, 2019, to 41 months in federal prison; and
- Danny Gamboa, 22, Pawtucket, RI, pleaded guilty on January 10, 2019, to conspiracy to possess with intent to distribute and distribution of controlled substances. He was sentenced on April 17, 2019, to 25 months in federal prison.
District of Oregon
- Channing Lacey, 32, of Portland, Oregon, pleaded guilty on March 28, 2017, to one count of distribution of a controlled substance resulting in serious bodily injury to three individuals and one count of distribution of a controlled substance resulting in death. She was sentenced on August 28, 2017, to serve 135 months in federal prison;
- Steven Fairbanks Locke, 43, of Portland, OR, pleaded guilty on June 14, 2017, to use of a communication facility to facilitate a drug offense. His sentencing is set for November 18, 2019; and
- Carissa Marie Laprall, 27, of Portland, OR, pleaded guilty on March 28, 2017, to three counts of distribution of a controlled substance resulting in serious bodily injury. Her sentencing is set for December 2, 2019.
This case is being investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; U.S. Drug Enforcement Administration; U.S. Postal Inspection Service; Grand Forks Narcotics Task Force; Royal Canadian Mounted Police; Portland Oregon Police Bureau – Drugs and Vice Division, Portland HIDTA Interdiction Task Force; Oregon State Police; and the Grand Forks Police Department.
The prosecutors for this case are Assistant U.S. Attorney Christopher C. Myers, District of North Dakota; Assistant U.S. Attorney Scott Kerin, District of Oregon and as a Special Assistant U.S Attorney in North Dakota; and Acting Assistant Deputy Chief Adrienne Rose and Trial Attorney Kaitlin Sahni, Criminal Division’s Narcotic and Dangerous Drug Section of the Justice Department.
Based upon the Change of Plea, Judge Senechal will issue a report and recommendation to Federal District Court Judge John P. Bailey, Northern District of West Virginia, to formally accept Vivas Ceron’s guilty plea.
The Indictment in this case is not evidence of guilt. The defendant is presumed innocent unless or until proven guilty beyond a reasonable doubt at trial.
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Colorado Springs Man Pleads Guilty to Stealing Thousands of Pills from Area PharmacyRead the Press Release
DENVER – Dewayne Scott, age 21, of Colorado Springs, Colorado, pled guilty this week to pharmacy burglary before U.S. District Court Judge Raymond P. Moore, announced U.S. Attorney Jason Dunn and FBI Denver Special Agent in Charge Dean Phillips. Scott appeared at the change of plea hearing on bond but was remanded at its conclusion. He is scheduled to be sentenced by Judge Moore on September 26, 2019.
According to the stipulated facts contained in the plea agreement, on August 22, 2017, at approximately 3:08 a.m., Scott and four others burglarized The Medicine Shoppe Pharmacy on North Wahsatch Street in Colorado Springs. In total, Scott and others stole: 540 Oxycontin pills, 2569 Hydrocodone pills, 69 Percocet pills, 120 Morphine Sulphate pills, 440 Tramadol pills, 618 Hydromorphone pills, 340 Adderal pills, 145 Oxycodone pills, 676 Oxymorphone pills and 1277 Dextroamphetamine pills. The value of these stolen pills is approximately $18,029. Scott and others also stole other types of medication. In total the entire loss to the pharmacy was $27,298.
While conducting an investigation into the theft investigators found surveillance footage showing Scott leaving the pharmacy carrying a white trash can filled with pill bottles. Scott then tripped over a parking lot divider while fleeing the pharmacy. Scott picked up many of the pill bottles that fell on the ground and fled the scene.
On October 18, 2017, law enforcement officers arrested Scott pursuant to a state arrest warrant for the commercial burglary of Two Men and a Truck, also in Colorado Springs, committed on October 9, 2017. That same day the FBI interviewed Scott. It was determined that Scott was partly responsible for The Medicine Shoppe Pharmacy burglary. Agents further determined that Scott did not receive his expected cut from the sale of the stolen pills because he had spilled and lost some of the pills after tripping and falling while fleeing the scene.
Scott was first charged by Criminal Complaint on March 7, 2019. He was indicted by a federal grand jury, formalizing the charges on March 19, 2019. He pled guilty on July 10, 2019.
This case was investigated by the FBI with substantial assistance from the Colorado Springs Police Department. The defendant is being prosecuted by Assistant U.S. Attorney Jason St. Julien.
Colombian National Pleads Guilty to Operating an International Fentanyl Trafficking Organization from a Canadian PrisonRead the Press Release
A Colombian fentanyl trafficker, who was scheduled to go to trial on Oct. 1, 2019, pleaded guilty earlier today to drug trafficking and money laundering charges as the leader and organizer of an international continuing criminal enterprise while incarcerated in Quebec, Canada. The enterprise involved distributing fentanyl and other similar substances from Canada and China into the United States where some of those drugs resulted in 15 overdoses including 11, which caused serious bodily injuries, and four, which resulted in fatal overdoses.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Drew H. Wrigley for the District of North Dakota, along with U.S. Attorney Billy J. Williams for the District of Oregon, made the announcement.
Daniel Vivas Ceron, 38, of Colombia, pleaded guilty before U.S. Magistrate Judge Alice R. Senechal in Fargo, North Dakota, to continuing criminal enterprise, conspiracy to distribute controlled substances and controlled substance analogues resulting in serious bodily injury and death and money laundering. Vivas Ceron faces a statutory maximum sentence of life in prison. The date of sentencing has not been set.
At the plea hearing, Vivas Ceron admitted that between 2013 and 2017, Chinese sources of supply shipped several hundred pounds of fentanyl and fentanyl analogues to the United States and Canada. Vivas Ceron and members of his conspiracy imported these opioids into the United States and distributed them to their customers around the country. Vivas Ceron ran his drug trafficking organization from a jail cell in Canada, and he concealed his identity to facilitate the conspiracy by using aliases, encrypted WICKR accounts, and numerous email addresses. Vivas Ceron and his co-conspirators’ distribution in Canada and the United States resulted in 15 overdoses in North Dakota, Oregon, New Jersey, North Carolina, and Rhode Island, including four fatal overdoses, one of which was Grand Forks resident 18-year-old Bailey Henke.
“From a Canadian jail cell, Daniel Vivas Ceron directed a deadly drug ring that fueled the opioid epidemic and took the lives of four Americans,” said Assistant Attorney General Benczkowski. “Today’s guilty plea brings some measure of justice for the victims and families that fell prey to Vivas Ceron’s dangerous organization and its tragic track record of spreading addiction and abuse.”
“Ultimate justice can seem elusive in a case with such a wide swath of destruction. The defendant and his co-conspirators built themselves an organization that made them into regional, national and international merchants of death, and today’s guilty plea is an important milestone in the quest for justice on behalf of those who died and those who were injured by the defendant’s ruinous quest for profits,” said U.S Attorney Wrigley. “I want to personally commend the team of prosecutors and investigators who worked so ably across the nation and globe to make today’s guilty plea possible. We will work assiduously to secure a sentence that reflects the light of justice on the far-reaching damage done to innumerable victims, families and communities,”
“Daniel Vivas Ceron’s heinous crimes have caused unthinkable pain and anguish for dozens of people in Oregon and far beyond, including four victims who lost their lives to fatal overdoses,” said U.S. Attorney Williams. “At a time when our country desperately tries to free itself from the painful grip of the opioid crisis, criminals like Ceron and his more than 20 co-defendants are seeking to profit off addiction and death. The tragic irony of crime is that while Ceron will continue to live out his life in prison or beyond, four of his victims will not. The damage he caused is permanent. We cannot forget that.”
“My heart goes out to the friends and families of those who lost their lives as a result of the greed and selfishness of all of the individuals involved in this case,” said Special Agent in Charge Brad Bench of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Seattle, Washington. “The amount of cooperation between HSI and our state, federal, and international partners was invaluable to halting the deadly actions of this complex drug organization. While we will never know how many lives are saved because of our efforts, we hope we are able to provide just a small bit of peace to the families whose lives are forever changed as a result of the offender’s careless actions.”
“The Portland Police Bureau is fully committed to working with our local, state and federal partners to combat the illegal distribution and trafficking of deadly opioids in our communities,” said Commander Art Nakamura of the Portland Police Bureau Tactical Operations – Drugs and Vice in Portland, Oregon. “The Police Bureau, along with our partners, strive to keep our community members safe from these drug traffickers who sell these deadly drugs in our neighborhoods throughout our country. With this partnership, we will hold those responsible for distributing these deadly drugs accountable.”
Following his deportation from Canada, Vivas Ceron was taken into custody at the Tocumen International Airport in Panama City, Panama on July 17, 2015, pursuant to an arrest warrant in connection with an indictment filed in the District of North Dakota. After Vivas Ceron’s arrest in July 2015, the U.S. Attorney’s Office and the Justice Department’s Office of International Affairs, together worked diligently to extradite Vivas Ceron. On Jan. 25, 2017, Vivas Ceron was extradited to the United States from Panama after Panamanian authorities authorized the extradition.
This case is part of “Operation Denial,” an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation into the international trafficking of fentanyl and other lethal drugs, and was significantly aided by the national and international coordination led by the multi-agency Special Operations Division (SOD) near Washington, DC, as part of “Operation Deadly Merchant.” The investigation started in North Dakota on Jan. 3, 2015, with the overdose death in Grand Forks, North Dakota, of Bailey Henke.
Additional defendants charged in federal court in this investigation include:
District of North Dakota
- Jian Zhang, aka Hong Kong Zaron, 40, of China; Jason Joey Berry, aka Daniel Desnoyers, 36, of Quebec, Canada; Xuan Cahn Nguyen, aka Jackie and Jackie Chan 39, of Quebec Canada; Marie Um, aka Angry Bird, 38, of Quebec, Canada; Vannek Um, 41, of Quebec, Canada; and Linda Van, 27, of Quebec, Canada were charged by a superseding indictment returned on Jan. 18, 2018, with drug trafficking conspiracy. Also charged with international money launder conspiracy were Na Chu, 38; Yeyou Chu, 37; Cuiying Liu, 63; and Keping Zhang, 63, all Chinese nationals;
- In a separate indictment returned on March 22, 2018, Steven Barros Pinto, aka Yeaboy, 38, of Pawtucket, Rhode Island, was charged with conspiracy to possess with intent to distribute and distribute controlled substances and controlled substance analogues resulting in serious bodily injury and death, conspiracy to import controlled substances and controlled substance analogues into the United States resulting in serious bodily injury and death and continuing criminal enterprise. On Nov. 28, 2018, a superseding indictment was filed adding the charges of obstruction of justice and money laundering conspiracy;
- Brandon Corde Hubbard, 44, of Portland, Oregon, pleaded guilty to conspiracy to distribute controlled substances resulting in serious bodily injury and death, distribution of a controlled substance resulting in death and money laundering conspiracy. He was sentenced on July 13, 2016, to serve life in federal prison;
- Ryan Jon Jensen, 24, of Grand Forks, North Dakota, pleaded guilty on Feb. 27, 2015, to conspiracy to distribute controlled substances resulting in serious bodily injury and death, one count of distribution of a controlled substance resulting in death, two counts of distribution of a controlled substance resulting in serious bodily injury and money laundering conspiracy. He was sentenced on Feb. 1, 2016, to serve 240 months in federal prison;
- Joshua Tyler Fulp, 24, of Grand Forks, pleaded guilty on June 23, 2015, to conspiracy to distribute controlled substances resulting in serious bodily injury and death. He was sentenced to serve 144 months in federal prison;
- Kain Daniel Schwandt, 23, of Grand Forks, pleaded guilty on July 24, 2015, to conspiracy to distribute controlled substances. He was sentenced on Jan. 25, 2016, to serve 42 months in federal prison;
- David Todd Noye Jr., 18, of Grand Forks, pleaded guilty on May 4, 2015, to conspiracy to distribute controlled substances. He was sentenced on Jan. 25, 2016, to serve 39 months in federal prison;
- Jameson Robert Sele, 24, of Grand Forks, pleaded guilty to conspiracy to distribute controlled substances. He was sentenced on July 27, 2015, to serve 36 months in federal prison;
- Ronnie Lee Helms, 34, of Acworth, Georgia, pleaded guilty to conspiracy to possess with intent to distribute a controlled substance and controlled substance analogue resulting in serious bodily injury and death. His sentencing is scheduled for Oct. 1, 2019;
- Braden James Foley, 32, of Olympia, Washington, pleaded guilty on Aug. 11, 2016, to conspiracy to possess with intent to distribute and distribution of controlled substances. He was sentenced to serve 30 months in federal prison on Nov. 21, 2016;
- Anthony Santos Gomes, 34, originally of Rhode Island and Davie, Florida, pleaded guilty to conspiracy to possess with intent to distribute and distribute controlled substances and controlled substance analogues resulting in serious bodily injury and death and money laundering conspiracy. In addition to pleading guilty, Gomes agreed to forfeit a residence located in Davie, Florida; $162,836.00 in cash; 2007 Maserati Quattroporte; 2017 Polaris Sportsman XP ATV; and assorted jewelry valued at $64,725.00. His sentencing has been set for Nov. 15, 2019;
- Amanda Schneider, 29, of Port S. Lucie, Florida, pleaded guilty on Sept. 17, 2018, to conspiracy to possess with intent to distribute and distribution of controlled substances. She was sentenced on Jan. 17, 2019, to serve 15 months in federal prison;
- Keveen Nobre, 29, of Providence, Rhode Island, pleaded guilty on Oct. 10, 2018, to conspiracy to possess with intent to distribute and distribution of controlled substances. He was sentenced on April 17, 2019, to serve 30 months in federal prison;
- Robinson Gomez, 36, of Charlotte, North Carolina, pleaded guilty on Jan. 10, 2019, to conspiracy to possess with intent to distribute and distribution of controlled substances. He was sentenced on April 17, 2019, to serve 180 months in federal prison;
- David Campbell, 58, of Plantation, Florida, pleaded guilty on Jan. 10, 2019, to conspiracy to possess with intent to distribute and distribution of controlled substances. He was sentenced on April 17, 2019, to serve 120 months in federal prison;
- Louis Bell, 31, of Port St. Lucie, Florida, pleaded guilty on Nov. 8, 2018, to conspiracy to possess with intent to distribute and distribution of controlled substances. He was sentenced on April 18, 2019, to serve 201 months in federal prison;
- Elizabeth Ton, 28, of Davie, Florida, pleaded guilty on June 18, 2018, to money laundering conspiracy. She was sentenced on March 8, 2019, to serve 41 months in federal prison; and
- Danny Gamboa, 22, of Pawtucket, Rhode Island, pleaded guilty on Jan. 10, 2019, to conspiracy to possess with intent to distribute and distribution of controlled substances. He was sentenced on April 17, 2019, to serve 25 months in federal prison.
District of Oregon
- Channing Lacey, 32, of Portland, Oregon, pleaded guilty on March 28, 2017, to one count of distribution of a controlled substance resulting in serious bodily injury to three individuals and one count of distribution of a controlled substance resulting in death. She was sentenced on Aug. 28, 2017, to serve 135 months in federal prison;
- Steven Fairbanks Locke, 43, of Portland, pleaded guilty on June 14, 2017, to use of a communication facility to facilitate a drug offense. His sentencing is set for Nov.18, 2019; and
- Carissa Marie Laprall, 27, of Portland, pleaded guilty on March 28, 2017, to three counts of distribution of a controlled substance resulting in serious bodily injury. Her sentencing is set for Dec. 2, 2019.
This case is being investigated by HSI, U.S. Drug Enforcement Administration, U.S. Postal Inspection Service, Grand Forks Narcotics Task Force, Royal Canadian Mounted Police, Portland Oregon Police Bureau – Drugs and Vice Division, Portland HIDTA Interdiction Task Force, Oregon State Police and the Grand Forks Police Department.
Assistant U.S. Attorney Christopher C. Myers is prosecuting the cases in North Dakota; Assistant U.S. Attorney Scott Kerin is prosecuting the cases in the District of Oregon and assisting as a Special Assistant U.S Attorney in North Dakota. Acting Assistant Deputy Chief Adrienne Rose and Trial Attorney Kaitlin Sahni are prosecuting the case from the Criminal Division’s Narcotic and Dangerous Drug Section of the Justice Department.
Based upon the change of plea, Judge Senechal will issue a report and recommendation to Federal District Court Judge John P. Bailey of the Northern District of West Virginia, to formally accept Vivas Ceron’s guilty plea.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
- Jian Zhang, aka Hong Kong Zaron, 40, of China; Jason Joey Berry, aka Daniel Desnoyers, 36, of Quebec, Canada; Xuan Cahn Nguyen, aka Jackie and Jackie Chan 39, of Quebec Canada; Marie Um, aka Angry Bird, 38, of Quebec, Canada; Vannek Um, 41, of Quebec, Canada; and Linda Van, 27, of Quebec, Canada were charged by a superseding indictment returned on Jan. 18, 2018, with drug trafficking conspiracy. Also charged with international money launder conspiracy were Na Chu, 38; Yeyou Chu, 37; Cuiying Liu, 63; and Keping Zhang, 63, all Chinese nationals;
Cleveland man sentenced to 30 years in prison for using a firearm while trafficking fentanyl, heroin and cocaineRead the Press Release
A Cleveland man was sentenced to 30 years in prison for using a firearm while trafficking fentanyl, heroin and cocaine.
Kernice Martin, 42, was sentenced to 360 months in federal prison. A jury found Martin guilty in April of four charges: possession with intent to distribute heroin and fentanyl; possession with intent to distribute cocaine; possession of a firearm in furtherance of drug trafficking and being a felon in possession of a firearm and ammunition.
Martin was pulled over by Cleveland police for a traffic stop on June 15, 2018 and found to have 0.79 grams of a mixture of fentanyl and heroin, 8.41 grams of cocaine, a Taurus .40-caliber handgun and ammunition. Martin was prohibited from possessing firearms because of three previous convictions for drug trafficking and one previous conviction for drug possession, according to court documents.
“Drug traffickers illegally carry firearms to protect their cash and their supply,” U.S. Attorney Justin Herdman said. “This case is another example of law enforcement working together to make our community safer.”
“Individuals who use firearms to further their criminal enterprises are a threat to everyone in our community,” said Jonathan McPherson, Special Agent in Charge of ATF’s Columbus Field Division. “ATF will continue to work with our law enforcement partners at the Cleveland Division of Police to make our city safer for everyone.”
This was prosecuted by Assistant U.S. Attorneys Kathryn Andrachick and Michael A. Sullivan following an investigation by the Cleveland Division of Police and Bureau of Alcohol, Tobacco, Firearms and Explosives.
Cell phone store robber convicted in Federal CourtRead the Press Release
INDIANAPOLIS –United States Attorney Josh J. Minkler announced today that an Indianapolis man was sentenced to 10 years and 1 day in federal prison for robbing a cell phone store in Indianapolis, Indiana. The sentence was handed down on July 11, 2019, after Andre Hamilton, 24, was found guilty of one count of Interference with Commerce by Means of Robbery and one count of discharging a Firearm during a Crime of Violence. The case was heard by U.S. District Judge Sarah Evans Barker.
“Cell phone store robberies have declined since federal and local law enforcement involvement,” said Minkler. “It is imperative that individuals contemplating such heinous crimes know that these acts will not be tolerated and that they will be held accountable for their actions.”
The 10-year sentence in this case followed an investigation by the Indianapolis Metropolitan Police Department and the Federal Bureau of Investigation. That investigation revealed that on February 9, 2018, Hamilton entered a Boost Mobile cell phone store located on North Michigan Road in Indianapolis, Indiana. He wore a mask over the lower portion of his face and was armed with a revolver. Hamilton demanded cash from the store’s register. When the victim-clerk hesitated, Hamilton fired his revolver into the ceiling of the store before fleeing in a vehicle. Thanks to the quick response of the Indianapolis Metropolitan Police Department and assisting officers with the Indiana State Police, Hamilton was apprehended shortly thereafter in the getaway car.
“Robberies – particularly those, like this one, in which the perpetrator discharges a firearm – inject fear into our community,” Minkler stated. “Law enforcement must continue to aggressively investigate such cases in order to protect the public. The safety of shoppers, employees, and all citizens is of paramount importance.”
“Violent crime remains a significant priority for the FBI and we are committed to identifying and pursuing individuals who utilize firearms for criminal purposes and put residents in danger,” said Grant Mendenhall, Special Agent in Charge of the FBI’s Indianapolis Division. “This sentence highlights the partnerships the FBI has and the dedication of everyone involved in this investigation to ensure this individual is no longer a threat to our community.”
“We’ve made tremendous strides in the number of cell phone robberies as indicative in today’s announcement,” said Chief Bryan Roach. “IMPD will continue to leverage federal partnerships and the cell phone co-op to identify ways in increasing safety.”
This case was prosecuted by Assistant United States Attorneys Pamela Domash and Kendra Klump.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting those who engage in violent crime involving firearms. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 2.3
Carnegie Man Pleads Guilty to Possession of More than a Kilogram of HeroinRead the Press Release
PITTSBURGH - A resident of Carnegie, Pennsylvania pleaded guilty in federal court to a charge of possession with the intent to distribute a kilogram or more of heroin, United States Attorney Scott W. Brady announced today.
William Thompson, 36, pleaded guilty to one count before Senior United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that on August 7, 2015, law enforcement attempted to stop Thompson, who was then operating a Porsche Cheyenne without a license. Thompson led the police on a high-speed chase on Route 28 during which speeds reached in excess of 100 miles per hour. Thompson eventually crashed and fled on foot, but law enforcement eventually captured him. A search of his vehicle revealed that Thompson was in possession of what later laboratory analysis determined was more than one kilogram of heroin.
Judge Conti scheduled sentencing for Nov. 5, 2019 at 3:30 p.m. The law provides for a maximum total sentence of life in prison, a fine of $10.00.000, or both, and a mandatory minimum of ten years of imprisonment. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The FBI Greater Pittsburgh Safe Streets Task Force consisting of Pittsburgh Bureau of Police, Allegheny County Sheriff's Office, Wilkinsburg Police Department, Allegheny County Police Department, Oakdale Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration and the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Thompson.
Bridgeport Woman Sentenced to Prison for Identity Theft, Health Care Fraud OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that NIKKITA CHESNEY, 46, of Bridgeport, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to seven months of imprisonment, followed by three years of supervised release, for her role in a Medicaid fraud scheme.
According to court documents and statements made in court, in May 2012, Chesney was employed by a health care provider that provided substance abuse treatment, including a detoxification program located in Bridgeport, when she was approached by Toshirea Jackson. Jackson and Juliet Jacob operated two businesses, Transitional Development And Training (TDAT) and It Takes A Promise (ITAP), both located at 360 Fairfield Avenue in Bridgeport, which provided social and psychotherapy services. At Jackson’s suggestion, Chesney began to steal the personal identification information of Medicaid clients who were patients of her employer. The personal identifying information included the patients’ Medicaid identification number, Social Security Numbers and dates of birth. Chesney, Jackson and Jacob then used the stolen identity information to bill Medicaid for psychotherapy services purportedly provided by TDAT and ITAP, when the Medicaid clients had never received any such services from TDAT and ITAP.
Chesney has admitted that she stole the identity information of more than 150 Medicaid clients, and that she and her co-conspirators successfully billed Medicaid for approximately half of those clients. Chesney further admitted that she and her co-conspirators also billed Medicaid for services to other clients that were never provided to those clients.
Judge Bolden ordered Chesney to pay restitution of $1,369,654.57.
On October 23, 2018, Chesney pleaded guilty to one count of health care fraud and one count of aggravated identity theft.
Chesney, who is released on a $25,000 bond, is required to report to prison on September 20, 2019.
Jackson and Jacob each pleaded guilty to one count of health care fraud for their roles in this scheme and a separate Medicaid fraud scheme. On May 30, 2019, Jackson, who was an employee of the Connecticut Department of Mental Health and Addiction Services, was sentenced to 24 months of imprisonment and ordered to pay restitution of $2,496,618. Jacob awaits sentencing.
Five other individuals have been charged and convicted of health care fraud offenses as a result of this and related investigations.
Chesney also has pending state charges stemming from a fraud scheme she engaged in while employed by a state contractor that provided services to individuals who were transitioning to the community following completion of substance abuse treatment. In 2017, Chesney and others submitted fraudulent claims for childcare services to a state program. Chesney’s role in the scheme involved 20 fraudulent claims that resulted in a loss of more than $35,000 to the state program.
This matter is being prosecuted by Assistant U.S. Attorney David J. Sheldon and Auditor Susan Spiegel.
This case has been investigated by the Office of the Inspector General of the U.S. Department of Health and Human Services and the Medicaid Fraud Control Unit of the Chief State’s Attorney’s Office and the Federal Bureau of Investigation, with assistance from the Connecticut Attorney General’s Office. U.S. Attorney Durham thanked the Connecticut Department of Social Services for their role in identifying the fraudulent scheme and supporting the investigation and prosecution of the case.
The U.S. Attorney’s Office, Chief State’s Attorney’s Office and Attorney General’s Office meet regularly as part of The Medicaid Fraud Working Group. The Working Group also includes representatives from the Connecticut Department of Social Services; the Connecticut Department of Public Health; the Drug Control Division of the Connecticut Department of Consumer Protection; the Office of the Inspector General of the U.S. Department of Health and Human Services, and the FBI. The Working Group reviews pending issues and cases, identifies trends that might indicate fraudulent activity, and coordinates efforts for maximum results.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.
Blythe man indicted for firing on helicopter during federal law enforcement operationRead the Press Release
AUGUSTA, GA: A Blythe man has been indicted on federal charges that he shot a helicopter being used in support of a law enforcement operation.
Terry Kielisch, 55, was indicted by a federal grand jury on charges of Assaulting a Person Assisting an Officer of the United States, Damaging an Aircraft, Use of a Firearm During and in Relation to a Crime of Violence, and Possession of a Firearm by a Prohibited Person, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.
The charges in the five-count indictment carry sentences of 10 years to life in prison, along with substantial fines.
According to court documents in the case, Kielisch is accused of firing at and striking a Georgia State Patrol helicopter piloted by a GSP trooper and with a Richmond County Sheriff’s Office investigator as a passenger on March 12. The aircraft was providing support for Operation Gunsmoke, a sweep of defendants accused of drug trafficking and illegal firearms possession in Georgia and South Carolina, coordinated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Kielisch was not a target in the operation, and while the helicopter was damaged, neither the pilot nor the passenger were injured.
“This assault had potentially deadly consequences for the officers conducting their law enforcement duties,” said U.S. Attorney Bobby L. Christine. “Our office will vigorously prosecute anyone who would harm or attempt to harm the professionals who protect our communities.”
The case was investigated by the ATF, the Georgia State Patrol and the Richmond County Sheriff’s Office, and is being prosecuted for the United States by Assistant U.S. Attorney Hank Syms Jr. and Special Assistant U.S. Attorney Michael Marchman.
A criminal indictment contain only charges; defendants are presumed innocent unless and until proven guilty.
Attorney, Consultant and Business Owner Indicted for Wire & Bankruptcy FraudRead the Press Release
MADISON, WIS. — Chicago attorney Edward Lee Filer, consultant Robert Joseph Gereg and business owner Paul Michael Kelly have been indicted on wire and bankruptcy fraud charges alleging that they created a sham secured creditor with a senior lien on all of the assets of Kelly’s Chicago company, Barsanti Woodwork Corporation, for the purpose of fraudulently shielding the assets from legitimate creditors.
According to the 10 count indictment, Filer, 54, and Kelly, 49, both of Clarendon Hills, Illinois, and Gereg, 71, of Osprey, Florida, created sham limited liability companies and engaged in fraudulent agreements, assignments, transfers, transactions and state and bankruptcy court actions designed to make it appear that the fraudulent transactions involving Barsanti Woodwork’s assets were non-collusive and arms-length, in order to deceive and falsely represent to Barsanti Woodwork’s creditors and later to a bankruptcy trustee that Barsanti Woodwork’s assets had been taken by a secured creditor and that collection activities by legitimate creditors against Barsanti Woodwork would be futile.
Filer, then a partner in a Chicago law firm referred to in the indictment as Law Firm A, is alleged to have caused the fraudulent agreements, assignments, transfers, transactions and state and bankruptcy court actions necessary to accomplish the scheme.
The indictment further alleges that the defendants created BWC Capital to serve as a sham secured creditor of Barsanti Woodwork and falsely represented BWC Capital to be Gereg’s company, when, in reality, Gereg’s role was to conceal Kelly’s control of BWC Capital, as Filer had caused Gereg to secretly assign his interest in BWC Capital to a trust controlled by Kelly. The defendants then caused BWC Capital to use Barsanti Woodwork’s funds to purchase Barsanti Woodwork’s secured debt from a Bank at a discount and caused that Bank to assign its lien on Barsanti Woodwork’s assets to BWC Capital, giving Kelly control through Gereg of the senior lien on all of Barsanti Woodwork’s assets.
The defendants then allegedly began the process of fraudulently transferring Barsanti Woodwork’s assets to BWC Capital through a state court action using fraudulent back-dated confessions of judgment clauses and Gereg’s false affidavit which inflated the amount Barsanti Woodwork purportedly owed to BWC Capital. It is specifically alleged that Filer caused the confessions of judgment clauses to be back-dated in order conceal that they lacked consideration and to expedite the transfer of Barsanti Woodwork’s assets in anticipation of bankruptcy.
The indictment further alleges that the defendants created Barsanti Millwork as a sham entity under whose name Barsanti Woodwork continued to operate at the same location, and falsely represented Barsanti Millwork to be Gereg’s company, when, in reality, Gereg’s role was to conceal Kelly’s control of Barsanti Millwork, as Filer had also caused Gereg to secretly assign his interest in Barsanti Millwork to a trust controlled by Kelly.
According to the indictment, the defendants then put Barsanti Woodwork into a bankruptcy in which defendants attempted to conceal the fraudulent transfer of Barsanti Woodwork’s assets, including the use of Barsanti Woodwork’s funds to purchase the bank debt for the benefit of BWC Capital, and made and caused false representations to be made, including that BWC Capital was a creditor with a claim against Barsanti Woodwork. Filer is then alleged to have concealed records from creditors and the bankruptcy trustee. Finally, both Filer and Gereg are alleged to have testified falsely under oath.
The indictment was returned Thursday. It charges Filer with two counts of wire fraud and eight counts of bankruptcy fraud; Gereg with two counts of wire fraud and seven counts of bankruptcy fraud; and Kelly with two counts of wire fraud and three counts of bankruptcy fraud. Arraignment in federal court in Chicago has not yet been scheduled.
The law firm of Freeborn & Peters has authorized the disclosure that it is the law firm referred to in the indictment as Law Firm A. According to Scott C. Blader, United States Attorney for the Western District of Wisconsin, “Freeborn & Peters’ extensive cooperation with this investigation was exemplary and essential to successfully investigating this sophisticated offense.”
“The American public needs to be aware that any fraud or falsehood in connection with bankruptcy seriously undermines the integrity of the system,” said Craig Goldberg, Inspector in Charge of the Chicago Division of the United States Postal Inspection Service. “The U.S. Postal Inspection Service investigates crimes when the mail is used to commit a crime or in furtherance of a crime. The individuals charged in this case allegedly utilized the U.S. Mail as part of their scheme to shield assets from legitimate creditors.”
The indictment was announced by U.S. Attorney Blader, whose office is overseeing the matter; Inspector in Charge Goldberg of the U.S. Postal Inspection Service in Chicago; Irene Lindow, Special Agent-in-Charge of the Chicago Regional Office of the United States Department of Labor, Office of Inspector General; Tara Sullivan, Acting Special Agent-in-Charge of the Chicago Field Office of the Internal Revenue Service, Criminal Investigation; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI. The government is represented by Assistant U.S. Attorney Brian P. Netols and Special Assistant U.S. Attorney Jeffrey S. Snell.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each wire fraud count is punishable by a maximum sentence of 20 years in prison, while each count of bankruptcy fraud carries a maximum sentence of five years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Indictment.pdfAtlantic County Man Convicted of Heroin Trafficking, Unlawful Possession of Firearm and Witness TamperingRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, man has been convicted on heroin trafficking, firearms and witness tampering charges, U.S. Attorney Craig Carpenito announced today.
Sean Figaro, a/k/a “Carlito,” a/k/a “Carlito the don,” 32, was convicted July 11, 2019, on five counts of the indictment against him: Count 1 – distribution of heroin; Count 2 – possession of a firearm in furtherance of his heroin distribution; Count 3 – witness tampering; Count 4 – conspiracy to commit witness tampering; and Count 5 – unlawful possession of a firearm by a convicted felon. Figaro was convicted following a one-week trial before U.S. District Judge Renée Marie Bumb in Camden federal court. The jury deliberated less than three hours before returning the guilty verdicts.
According to documents filed in this case and the evidence at trial:
On Jan. 10, 2017, law enforcement officers from the Atlantic City Child Exploitation Task Force executed a state search warrant on Figaro’s hotel room in Atlantic City, New Jersey, where he had been staying off and on for at least a year. Officers recovered Figaro’s cell phone and a safe, containing a Jennings .22 caliber pistol loaded with five rounds, including one in the chamber, 119 individually packaged bags of heroin and various items used for packaging drugs for distribution, including additional bags, a digital scale, razor blades and a straw. Figaro’s fingerprints were found on the safe and his DNA was detected on the pistol and a cap, which had been in the safe.
Figaro’s phone contained additional evidence of drug trafficking and firearm possession, including text messages offering heroin for sale and describing how he earned his living: “my occupation is drug dealership;” and “I’m a dealer, not a pimp, not law, a street hustler.”
Figaro sent messages to a potential witness, calling the witness a “rat” and a “snitch” on Facebook, and later attempting to persuade the witness not to testify against him by feigning affection and promising to love and care for the witness.
The counts on which Figaro was convicted carry the following maximum sentences: Count 1 – 20 years in prison; Count 2 – life in prison, with a five-year mandatory minimum sentence consecutive to any other sentence; Count 3 – life in prison; Count 4 – life in prison; and Count 5 – 10 years in prison in prison. Figaro faces additional penalties, including fines of up to $1 million on Count 1, and up to $250,000 on each of Counts 2-5. Sentencing is scheduled for Oct. 14, 2019.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor Damon Tyner; the Atlantic County Sheriff’s Office, under the direction of Sheriff Eric Scheffler; and the N.J. Department of Human Services Police, under the direction of Commissioner Carole Johnson, with the investigation leading to the guilty verdict.
The government is represented by Assistant U.S. Attorneys Diana Vondra Carrig and Kristen M. Harberg of the Camden office.