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Tuesday 25 June 2019
Schenectady Man Sentenced to 15 Years for Gun and Drug CrimesRead the Press Release
ALBANY, NEW YORK – James Haskins, age 43, of Schenectady, New York, was sentenced on Friday, June 21 to 15 years in prison for possessing and intending to distribute crack cocaine, and for possessing a firearm in furtherance of a drug trafficking crime.
The announcement was made by United States Attorney Grant C. Jaquith and Special Agent in Charge John B. DeVito of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), New York Field Division.
In pleading guilty, Haskins admitted that on April 11, 2018, he possessed 152 grams of crack cocaine and a .380 caliber pistol and ammunition in Schenectady. He further admitted that he intended to distribute the crack cocaine to others in exchange for cash, and he possessed the firearm to protect his crack and drug proceeds from potential robbers.
Senior United States District Judge Norman A. Mordue sentenced Haskins to 10 years in prison on the drug charge and 5 years in prison on the firearm charge, to be run consecutively. He also sentenced Haskins to 5 years of supervised release to begin following his term of imprisonment.
This case was investigated by the ATF and Schenectady County Sherriff’s Office, and was prosecuted by Assistant U.S. Attorney Alicia Giglio Suarez.
Schenectady Man Pleads Guilty to Conspiring to Distribute HeroinRead the Press Release
ALBANY, NEW YORK – Jose Cortes-Cruz, aka “Bimbo,” age 28, of Schenectady, New York, pled guilty today to conspiring to possess with intent to distribute and to distribute heroin.
The announcement was made by United States Attorney Grant C. Jaquith; Kevin M. Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI); and New York State Police Superintendent Keith M. Corlett.
In pleading guilty, Cortes-Cruz admitted to being a member of a drug trafficking organization that distributed heroin in Schenectady between 2017 and December 20, 2018. As a member of the organization, the defendant picked up heroin and delivered thousands of dollars in cash as payment. The heroin was then sold in and around Schenectady.
Cotes-Cruz faces up to 20 years in prison, a term of supervised release of at least 3 years and up to life, and a maximum fine of $1 million. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Cortez-Cruz was charged with eight other defendants in an indictment alleging a conspiracy to distribute heroin in Schenectady. Four of Cortes-Cruz’s co-defendants, Leamzy Soto Calderon, aka “Lee,” aka “Gordo,” Linette Marie Soto, Kristen Jansen, and Gregory Insogna, have pled guilty. Co-defendants Jean Carlos Rivera-Perez, aka, “Tego,” Esteban Ressy, aka “The Boss,” and Patrick McNamara are pending trial. The final defendant, Daniel Garcia, aka “Danny,” is at large. The charges in the indictment are merely accusations. Rivera-Perez, Ressy, Garcia and McNamara, are presumed innocent unless and until proven guilty.
This case is being investigated by HSI, the New York State Police, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Amsterdam Police Department, and is being prosecuted by Assistant U.S. Attorney Cyrus P.W. Rieck.
Saratoga County Man Pleads Guilty to Receiving Child PornographyRead the Press Release
ALBANY, NEW YORK – Kyle Caton, age 31, of Saratoga County, New York, pled guilty today to receiving child pornography, announced United States Attorney Grant C. Jaquith and Kevin M. Kelly, Special Agent in Charge, Homeland Security Investigations (HSI), Buffalo Field Office.
In pleading guilty, Caton admitted that between 2018 and February 25, 2019, he downloaded child pornography from the internet. At the time of his arrest, Caton’s computer contained at least 454 images and 50 videos of child pornography. Some of these images depicted the abuse of very young children, including at least one toddler.
Sentencing has been set for November 3, 2019 in Albany before Senior United States District Judge Thomas J. McAvoy. Caton faces at least 5 years and up to 20 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by HSI and is being prosecuted by Assistant U.S. Attorney Shira C. Hoffman, as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to 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 https://www.justice.gov/psc.
San Antonio Man Sentenced to 76 Months in Federal Prison for Wire Fraud and Tax EvasionRead the Press Release
In San Antonio today, a federal judge sentenced 55-year-old Ryan Glenn Martinez to 76 months in federal prison for embezzling over $800,000 from his employer and his failure to pay the IRS over $300,000, announced U.S. Attorney John F. Bash and IRS-Criminal Investigation Special Agent in Charge Richard D. Goss, Houston Field Office.
In addition to the prison term, Senior U.S. District Judge Fred Biery ordered that Martinez pay $813,822.91 in restitution to his fraud victims as well as $305,247 in restitution to the IRS for the tax offense.
On October 3, 2018, Martinez pleaded guilty to one count of wire fraud and one count of making and filing a false income tax return. According to court documents, from January 2012 until May 2014, the defendant was the Controller of San Antonio company called Southern Folger Detention Equipment Company, LLC (a subsidiary of Phelps Tointon, Inc.) that manufactured and marketed detention equipment and electronics for correctional facilities. By pleading guilty, Martinez admitted that he embezzled funds from Southern Folger by stealing checks issued in payment of Southern Folger accounts; stealing checks and money orders from customer payments of Southern Folger products; stealing checks issued by health care insurers to Southern Folger; and, submitting fraudulent vendor invoices to Southern Folger for payment on scrap material purchases, then pocketing the Southern-Folger-paid-money. Martinez further admitted to making false and fraudulent entries in the books of Southern Folger and Phelps Tointon to cover up his scheme. Following his guilty plea, Martinez was remanded to the custody of the U.S. Marshals Service. He has since remained in federal custody.
Martinez also admitted that he underreported to the IRS his income and income tax due for calendar years 2010, 2011, 2012, 2013, and 2014.
IRS-Criminal Investigation special agents investigated this case. Assistant U.S. Attorney William F. Lewis, Jr., prosecuted this case on behalf of the Government.
Salvadoran National Pleads Guilty to Passport FraudRead the Press Release
BOSTON – A Salvadoran national pleaded guilty in federal court in Worcester yesterday to passport fraud.
Neemias Pacheco-Santamaria, 33, a Salvadoran national residing in Worcester, pleaded guilty to one count of passport fraud. U.S. District Court Judge Timothy S. Hillman deferred acceptance of the plea until sentencing, which is scheduled for Sept. 16, 2019. Pacheco-Santamaria was arrested and charged in February 2019 and has been detained since.
In July 2018, Pacheco-Santamaria entered a Worcester Post Office and falsely used the name, date of birth, and Social Security number of a United States citizen from Puerto Rico to apply for a United States Passport.
The charge of passport fraud provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. Pacheco-Santamaria will be subject to deportation proceedings upon completion of his sentence. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and William B. Gannon, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office, made the announcement. Assistant U.S. Attorney Kristen M. Noto of Lelling’s Worcester Branch Office is prosecuting the case.
Saco Man Sentenced to 27 Months for Selling an Unregistered Explosive DeviceRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Michael Rickett, 23, of Saco, was sentenced today in U.S. District Court by Judge D. Brock Hornby to 27 months in prison and three years of supervised release for selling an unregistered destructive device. Rickett pled guilty to the charge on February 21, 2019.
According to the government’s evidence, on July 10, 2017, concerned citizens reported to the Saco Police Department that Rickett asked them to purchase an explosive device. The next day, a federal agent, acting in an undercover capacity, called Rickett. Rickett offered to sell a “military grade IED” to the agent for $350. Two days later, the agent purchased a homemade explosive device from Rickett. A forensic laboratory examination confirmed that the device was an explosive bomb.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Maine Drug Enforcement Agency; and the Portland and Saco Police Departments.
Rapid City Woman Sentenced for Defrauding the Rapid City Club for BoysRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, woman convicted of Wire Fraud, Money Laundering, and Tax Evasion was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Olivia Kuehner, age 49, was sentenced on June 19, 2019, to 41 months in federal prison, followed by 1 year of supervised release, and ordered to pay a $300 special assessment to the Federal Crime Victims Fund. In addition, she was ordered to pay $160,380.16 in restitution to the Rapid City Club for Boys, $20,481.71 in restitution to Collins Siding, and $54,298.00 in restitution to the Internal Revenue Service.
The conviction stems from Kuehner, while employed as the accounting manager for the Rapid City Club for Boys, Inc. (“Club for Boys”), devising a scheme to defraud the organization between September 2012 and June 2017. Kuehner embezzled money belonging to the Club for Boys by making fraudulent payments to herself, family members, and a nominee entity she controlled, and then omitted the fraudulent payments from the Club for Boys’ accounting records, or misclassified the payments to make it appear vendors or other employees had been paid. After receiving the fraudulently obtained funds, Kuehner transferred a portion of the funds to other bank accounts she controlled in order to conceal the nature, source, and ownership of the embezzled proceeds.
Kuehner also prepared and filed a False Form W-2 with the IRS that understated her income and overstated her federal income tax withholding. Kuehner then prepared and filed a False Form 1040A which matched the False Form W-2.
In addition to her embezzlement at the Club For Boys, Kuehner also stole more than $20,000 from Collins Siding, where she was employed after she left the Club for Boys.
The investigation was conducted by the Internal Revenue Service Criminal Investigation, the Federal Bureau of Investigation, and Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Kuehner was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Charged with Unlawful Possession of a FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man was charged in federal district court with Possession of a Firearm by a Prohibited Person.
Jaime Walking Bull, age 38, was charged on May 21, 2019. Walking Bull appeared before U.S. Magistrate Judge Daneta Wollmann on June 6, 2019, and pleaded not guilty to the charge. The maximum penalty upon conviction is 10 years in federal prison and/or a $250,000 fine, 3 years supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Walking Bull, a previously convicted felon who is prohibited from possessing firearms, unlawfully being in possession of a semi-automatic pistol in April 2019 at Rapid City. The charge is merely an accusation and Walking Bull is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
Walking Bull was detained pending trial. A trial date has not been set.
Randolph Gang Member Sentenced for Dealing FentanylRead the Press Release
BOSTON – A Randolph man was sentenced yesterday in federal court in Boston for distributing fentanyl.
Giovany Fouyolle, 24, was sentenced by U.S. District Court Judge William G. Young to 75 months in prison, four years of supervised release, during which time Fouyolle is prohibited from being in contact with gang members and associates, and ordered to pay forfeiture of $10,500. In March 2019, Fouyolle pleaded guilty to distribution of more than 40 grams of fentanyl.
This case was part of Operation Cut the Kings. During the investigation, an undercover federal agent purchased fentanyl from Fouyolle in Stoughton in July 2018. The investigation revealed that Fouyolle was a founder and leader of the No Fear Ones street gang in Randolph.
United States Attorney Andrew E. Lelling; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Randolph Police Chief William Pace; Stoughton Police Chief Donna M. McNamara; and Canton Police Chief Kenneth Berkowitz, made the announcement today. Assistant U.S. Attorney Timothy E. Moran of Lelling’s Organized Crime and Gang Unit prosecuted the case.
Raleigh Man Sentenced for Firearms OffenseRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that United States District Judge Louise W. Flanagan sentenced TIMOTHY TYRONE HORTON, 37, of Raleigh, North Carolina to 87 months’ imprisonment, followed by 3 years of supervised release.
Horton was named in an Indictment filed on August 28, 2018, charging him with felon in possession of a firearm. On November 13, 2018, HORTON pled guilty.
On March 12, 2018, Raleigh Police Department officers arrested HORTON on an outstanding warrant. During the arrest, they found a firearm in HORTON’s waistband. HORTON was previously convicted federally of being a felon in possession of a firearm in 2009.
Investigation of this case was conducted by the Raleigh Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
President of Modesto Hells Angels Chapter Among Four Defendants Charged in Drug ConspiracyRead the Press Release
FRESNO, Calif. — A criminal complaint was unsealed today against four individuals, including the president of the Modesto Hells Angels Motorcycle Club, charging them with conspiracy to distribute and possess with intent to distribute methamphetamine, U.S. Attorney McGregor W. Scott announced.
Charged in the criminal complaint are Modesto residents Randy Picchi, 61, president of the club; his wife Tina Picchi, 51; Michael Mize, 61; and Michael Pack, 32, a prospect with the club. Randy Picchi, Tina Picci, and Mize were arrested today and are in custody. They will appear in federal court on Wednesday in Fresno.
According to court documents, Randy Picchi led a drug conspiracy and directed Tina Picchi to regularly deliver drugs to Mize and other individuals in Ceres. Randy Picchi also enlisted Pack to help obtain methamphetamine on at least one occasion. Pack was stopped by law enforcement and found to have 499 grams of methamphetamine in his possession.
On another occasion, Randy Picchi directed Tina Picchi to drive from Modesto to Redding to deliver methamphetamine to a customer. On the way, Tina Picchi was stopped by law enforcement and found with approximately 4 ounces of methamphetamine, which she had wrapped in a plastic glove and hidden in a cup of soda.
As part of the investigation, officers executed search warrants on Tuesday in seven locations in Stanislaus County, including the clubhouse of the Hells Angels Motorcycle Club in Modesto.
This case is the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the IRS Criminal Investigation, the Central Valley Gang Impact Task Force, the Modesto Police Department, the Turlock Police Department, the Stanislaus County District Attorney’s Office, the California Department of Corrections and Rehabilitation, and the California Highway Patrol. Assistant U.S. Attorneys Ross Pearson and Laurel Montoya are prosecuting the case.
If convicted, each defendant faces a maximum statutory penalty of life in prison, a mandatory minimum 10 years in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. 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.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Portland Man Pleads Guilty to Cyberstalking and Anonymous Telephone HarassmentRead the Press Release
PORTLAND, Ore.—On June 24, 2019, Bob Ibenne Ugwa, 50, of Portland, pleaded guilty to cyberstalking and anonymous telecommunications harassment after making repeated threatening and harassing telephone calls to seven individuals over an eight-year period.
According to court documents, between 2011 and 2018, Ugwa made thousands of anonymous, interstate telephone calls from Oregon to seven victims in Pennsylvania. In these calls, Ugwa threatened or harassed each victim by breathing heavily, moaning, and saying sexually explicit things. Telephone records were used to confirm Ugwa’s threatening calls. Each of the victims made multiple unsuccessful attempts to stop Ugwa from calling, citing substantial emotional distress.
Ugwa faces a maximum sentence of five years in prison, a $250,000 fine and three years of supervised release. He will be sentenced on September 10, 2019 before U.S. District Court Judge Michael W. Mosman.
This case was investigated by the FBI and is being prosecuted by Hannah Horsley, Assistant U.S. Attorney for the District of Oregon.
Pittsburgh Man Indicted for Robbing Castle Shannon Dollar BankRead the Press Release
PITTSBURGH, PA – A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of bank robbery, United States Attorney Scott W. Brady announced today.
The one-count Indictment names Deontre Simpson, 23, as the sole defendant.
According to the Indictment, on or about April 29, 2019, Simpson robbed the Dollar Bank located at 400 Mount Lebanon Boulevard, Castle Shannon, Pennsylvania 15234, of approximately $4,661.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Allegheny County Police Department, the Mount Lebanon Police Department, and the Castle Shannon Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
People from Akron, Garfield Heights and Cleveland indicted for firearms crimesRead the Press Release
Three people were indicted in federal court for firearms violations.
Indicted are: Jaquar Keyshore Latimer, 42, of Akron; Alfred Werman, 27, of Garfield Heights, and Brittney N. McTier, 31, of Cleveland.
Latimer is charged with being a felon in possession of a firearm and possession with intent to distribute cocaine. He allegedly possessed cocaine on February 9, 2018, as well as a Sig Sauer 9 mm handgun, a Dan Wesson .357-caliber revolver and a Browning Arms .380-caliber semiautomatic handgun, despite previous convictions for sexual battery, aggravated assault, drug possession and being a felon in possession of a firearm, according to the indictment.
Werman is charged with being a felon in possession of a firearm. He allegedly possessed a Sig Sauer .40-caliber pistol and 45 rounds of ammunition on May 20, 2019, despite a previous conviction for burglary, according to the indictment.
McTier charged with being a felon in possession of ammunition. McTier allegedly possessed two rounds of 9 mm ammunition despite a previous conviction for bank fraud, according to the indictment.
These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Cleveland Division of Police (McTier). They are being prosecuted by Assistant U.S. Attorneys Margaret Kane, Brendan O’Shea and Scott Zarzycki.
If convicted, the defendants’ sentences will be determined by the Court after reviewing factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Pascagoula Man Pleads Guilty to Possession with Intent to Distribute MethamphetamineRead the Press Release
Gulfport, Miss. – Develon Lashonie Cunningham, 42, of Pascagoula, pled guilty yesterday before U.S. District Judge Sul Ozerden to possession with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Jere T. Miles, Special Agent in Charge of Immigration and Customs Enforcement’s Homeland Security Investigations in New Orleans.
Cunningham sold a total of two ounces of methamphetamine “ice” to a confidential informant on two separate occasions. The purchases were made in Jackson County.
Cunningham will be sentenced on September 30, 2019 at 9:00 a.m. by Judge Ozerden, and faces a maximum penalty of 20 years in prison and a $1,000,000 fine.
The case was investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorney John Meynardie.
Oakland Building Project Consultant Sentenced to 12 Months in Prison for Conspiracy and Receiving BribesRead the Press Release
SAN FRANCISCO – Taj Armon Reid was sentenced to 12 months in prison for conspiracy and receiving bribes, announced United States Attorney David L. Anderson; Federal Bureau of Investigation Special Agent in Charge John F. Bennett; and Department of Energy Office of the Inspector General, Inspector General Teri L. Donaldson. The sentence was handed down today by the Honorable Charles R. Breyer, U.S. District Court Judge.
After a four-day jury trial, a federal jury found Reid, 48, of Oakland, guilty of the crimes on May 24, 2018. Reid was a construction consultant and business partner with Eric Worthen, 46, of Pleasant Hill, who, at the time, was also an employee of the California Department of Veterans Affairs (CalVet). The evidence at trial demonstrated Reid received bribes on two occasions in connection with business being offered by CalVet. The jury also concluded Reid conspired with Worthen to receive the bribes.
The evidence at trial showed that Reid accepted cash from a source on April 18, and again on May 8. In April, Reid offered a developer an inside advantage on two CalVet construction projects in exchange for $10,000 cash. Specifically, Reid offered to use Worthen’s position at CalVet to circumvent the normal bidding process for a residential home project in Ventura, Calif. The May transaction involved a kitchen remodel project at the veterans’ home in West Los Angeles. On this occasion, Reid and Worthen accepted $2,000 cash in exchange for providing to the developer inside information that the co-conspirator took from the CalVet office. Unbeknownst to Reid and Worthen, the “developer” to whom they were providing an inside track on the CalVet contracts was a source working under the direction of the FBI and posing as a developer willing to pay bribes in order to obtain contracts with public agencies. At the conclusion of the trial, the jury found Reid guilty of conspiracy, in violation of 18 U.S.C. § 371, and two counts of receiving a bribe or reward, in violation of 18 U.S.C. § 666(a)(1)(B).
In addition to the prison term, Judge Breyer ordered Reid to serve 3 years of supervised release.
Worthen pleaded guilty in August of 2017 to his part in the conspiracy and for taking bribes. Judge Breyer scheduled his sentencing for November 6, 2019.
The case is being prosecuted by the Special Prosecutions and National Security Unit of the U.S. Attorney’s Office and the FBI, with assistance from the Department of Energy, Office of Inspector General.
Nurse from Parker Adventist Hospital Pleads Guilty to Stealing Fentanyl Designated for PatientsRead the Press Release
DENVER – Jessica Sharman, age 35, of Arapahoe County, pled guilty yesterday before U.S. District Court Judge Christine M. Arguello to Tampering with a Consumer Product, specifically stealing fentanyl meant for patients from the Intensive Care Unit (ICU) at Parker Adventist Hospital in Douglas County, announced U.S. Attorney Jason Dunn, DEA Denver Division Special Agent in Charge William McDermott and Food and Drug Administration Office of Criminal Investigations (FDA OIG) Special Agent in Charge Charles Grinstead. Sharman appeared at the hearing free on bond. She is scheduled to be sentenced by Judge Arguello on September 24. Sharman was first charged by Information on May 29, 2019.
According to the stipulated facts contained in the plea agreement, Sharman worked as a nurse for various employers until she began working in the Intensive Care Unit at Parker Adventist Hospital in January 2018. Soon after she started work at Parker Adventist, the defendant used an automated narcotic medication dispensing device known as a Pyxis machine. It dispensed multiple narcotic drugs, including fentanyl. Only authorized users, including nurses, are allowed to use the machine. Access was obtained by using the authorized user’s fingerprint.
On April 20, 2018, a routine audit report of access to and utilization of controlled substances from the Pyxis machine flagged Sharman’s access as “red” for high fentanyl use and waste (the disposal of excess fentanyl following physician-ordered patient administration) for the month of March 2018. The audit for the month of February 2018 flagged Sharman’s access as “yellow,” also for high fentanyl usage. A review of the Pyxis access records showed a high number of “remove-cancel” transactions, indicating that the defendant had accessed controlled substances from a Pyxis machine but then “cancelled” the transaction, returning the drug to the locked machine.
On April 25, 2018, after substantiating the tampering concerns flagged by the audit, Parker Adventist removed all fentanyl from the ICU. On April 26, 2018, Parker Adventist employees interviewed Sharman. Based in part on that interview, it was determined that the defendant was stealing fentanyl from the hospital. She allegedly withdrew the drug from fentanyl cassettes using a sterile syringe and saline flushes. She sometimes replaced the fentanyl she stole with saline, injecting the saline back into the fentanyl cassette and returning the cassette to the Pyxis machine. Following her interview, Sharman tested positive for the use of fentanyl. The hospital terminated Sharman’s employment on April 26, 2018.
Tampering with a consumer product is a felony offense, punishable by up to ten years imprisonment.
This case was investigated by the FDA OCI and the DEA. The defendant is being prosecuted by Assistant U.S. Attorney Anna Edgar.
Northern Florida Bingo Operator Sentenced to Federal Prison for Illegal Gambling and Money LaunderingRead the Press Release
PENSACOLA, FLORIDA – U.S. Attorney Lawrence Keefe for the Northern District of Florida today announced the sentencing of Larry L. Masino, 69, of Gulf Breeze, and Dixie L. Masino, 66, of Pensacola. A jury found both guilty of conspiracy and money laundering charges related to their ownership and operation of Racetrack Bingo in Fort Walton Beach.
The Masinos, through Racetrack Bingo, illegally conducted bingo games by keeping a substantial amount of the bingo proceeds for themselves rather than returning all proceeds to players in the form of prizes, as required by law. The Masinos received and laundered $5,813,584 in profit between 2006 and 2015. Larry Masino, the original orchestrator of the illegal bingo scheme, was sentenced to twelve months and one day in prison, followed by two years of supervised release. His ex-wife Dixie Masino, who took over as the face of the operation in 2010 after Larry was prosecuted in Tallahassee for running illegal bingo games there, was sentenced to four months of house arrest as a part of a five-year probation term.
“These individuals were preying upon the citizens of Fort Walton Beach,” said Special Agent in Charge Jack Massey at FDLE’s Pensacola Regional Operations Center. “We appreciate the diligent investigative work of our agents and our partners at the IRS, FBI and the Okaloosa County Sheriff’s Office and thank the U.S. Attorney’s Office, Northern District of Florida for bringing this case to a successful resolution for justice.“
In addition to receiving sentences of incarceration, house arrest, and probation, the Masinos were jointly ordered to pay a forfeiture money judgment of $5,813,584. The government has already seized more than $1.5 million from the Masinos’ bank accounts and forfeited three properties, the proceeds of which will be applied toward the court-ordered money judgment.
"With today's sentencing, the Masinos will pay a high price for defrauding unsuspecting charities whose sole mission was to help others," U.S. Attorney Keefe said. "This office has zero tolerance for illegal gambling schemes, especially those that target charitable organizations. We will prosecute operators to the fullest extent of the law."
Assistant United States Attorney Alicia H. Forbes prosecuted the case, which was investigated by the Florida Department of Law Enforcement, the Internal Revenue Service-Criminal Investigation, the Federal Bureau of Investigation, and the Okaloosa County Sheriff’s Office.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Northampton County Man Indicted for Possessing Homemade Bombs, Guns While Subject to Protection from Abuse OrderRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Jason Muzzicato, 43, of Bangor, Pennsylvania was charged by Indictment with possession of firearms by a person subject to a court order restraining him from harassing, stalking and threatening an intimate partner (known as a domestic violence protective order, Protection From Abuse order or PFA), and possession of an unregistered destructive device (an improvised explosive device).
The charges against the defendant stem from his possession of homemade bombs and firearms, while subject to the terms of a PFA order issued by the Northampton County Court of Common Pleas. Under federal law, an individual who is subject to a PFA order is prohibited from possessing firearms. As alleged in the Indictment, the defendant possessed seven improvised explosive devices and nine firearms, including multiple AR-15 rifles and semi-automatic pistols.
“Protection From Abuse orders are meant to protect individuals before the situation escalates,” said U.S. Attorney McSwain. “For good reasons, federal law prohibits subjects of PFA orders from possessing firearms. Here the defendant’s alleged behavior violated the law and threatened public safety.”
If convicted, the defendant faces a maximum possible sentence of 20 years’ imprisonment, three years’ supervised release, a $260,000 fine, and a $200 special assessment.
The case was investigated by the Federal Bureau of Investigation, Allentown Resident Agency, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Reading Field Office, the Washington Township Police Department, the Pennsylvania State Police, and the Bethlehem Fire Department, and is being prosecuted by Assistant United States Attorney John Gallagher.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
North Carolina Woman Admits Role in Gun Trafficking SchemeRead the Press Release
CAMDEN, N.J. – A North Carolina woman today admitted her role in an illegal scheme to buy weapons in Georgia and transport them to New Jersey for resale, U.S. Attorney Craig Carpenito announced.
Anastacia Thomas, 26, of Fayetteville, North Carolina, pleaded guilty before U.S. District Judge Joseph Rodriguez in Camden federal court to an information charging her with conspiring to illegally traffic firearms.
According to documents filed in this case and statements made in court:
On Jan. 25, 2018, law enforcement officers conducted a traffic stop in Deptford, New Jersey, of a car registered to Anthony Doyle, 28, also of Fayetteville, North Carolina. Doyle was riding as the front seat passenger while Thomas was driving. The officers observed a Glock handgun in plain view on the front seat passenger floor. This gun was loaded with 14 hollow tip bullets. The officers also observed a firearm box in the backseat of the car, next to a backpack. A search of the car and backpack revealed four additional handguns and two additional firearm boxes.
Law enforcement officers subsequently learned that Thomas had purchased the four handguns in the backpack on Jan. 22, 2018, from a pawnshop in Jonesboro, Georgia. Thomas had purchased several additional firearms from that same pawnshop over the course of multiple visits, and Doyle accompanied Thomas to the pawnshop on at least two of those visits.
Law enforcement officers learned that from Nov. 30, 2017, to Jan. 25, 2018, Doyle and Thomas conspired and worked together to engage in the business of dealing in firearms without a license. Thomas was responsible for purchasing firearms from federally licensed firearms dealers; Doyle used social media to advertise firearms for sale, negotiate pricing, and arrange transactions. Doyle discussed the various firearm transactions in great detail over the course of hundreds of pages of online messages that were analyzed by law enforcement officers.
The charge of conspiring to engage in gun trafficking carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Oct. 7, 2019.
U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson, Newark Field Division, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sara A. Aliabadi of the U.S. Attorney’s Office Criminal Division in Camden.
Charges against Doyle remain pending. Those charges are merely accusations, and he is presumed innocent unless and until proven guilty.
Defense counsel:
Doyle: Christopher O’Malley Esq., Assistant Federal Public Defender, Camden
Thomas: Paul A. Sarmousakis Esq., Avalon, New JerseyNew York Man Sentenced to 12 Years in Federal Prison for Multi-Million Dollar Pyramid Scheme that Targeted Chinese AmericansRead the Press Release
LOS ANGELES – A New York man has been sentenced to 144 months in federal prison for being a high-level promoter of a fraudulent company that solicited more than $200 million for a business that purported to market online children’s educational courses, but was in fact nothing more than a pyramid scheme.
Daliang “David” Guo, 56, of Hyde Park, New York, was sentenced at a Monday hearing by United States District Judge Dale S. Fischer.
After a seven-day trial in September 2018, Guo was found guilty by a federal jury of conspiracy to commit wire fraud, and nine counts of wire fraud for participating in the scheme that solicited investments primarily from members of Chinese-American communities in Los Angeles, San Francisco and New York City.
Guo and his co-conspirators made false representations about the Hong Kong-based company – known as CKB 168, but also sometimes known as CKBMax and Cyber Kids Best Education Limited. The false representations included claims that it generated substantial revenues from the sale of web-based children’s educational courses, that investments could be quickly liquidated for significant returns, that investors would get pre-initial public offering shares of CKB, and that the company would go public through an IPO. In reality, the only way for investors to earn any meaningful returns was for them to actively recruit new investors.
Guo and his co-conspirators promoted CKB through YouTube videos and other postings on the internet, as well as through meetings with prospective investors and live presentations about the purported investment opportunity.
Between mid-2011 and January 2014, Guo and his co-conspirators solicited investments in increments of $1,380, which gave investors “Profit Reward Points” they claimed were worth $750 in cash, would only increase in value, and could be converted to pre-IPO shares of CKB. Guo and his co-conspirators collected money from new investors and simply pocketed the cash to pay themselves the “commission” they earned from CKB, and lulled investors by providing them with essentially worthless Profit Reward Points.
Guo and his group of promoters collected approximately $142 million out of the more than $200 million raised by CKB from investors.
Guo’s four other co-defendants in this case have pleaded guilty to federal criminal charges and been sentenced to federal prison:
- Wen Chen “Wendy” Lee, 57, formerly of Rowland Heights, was sentenced to 21 months in federal prison;
- Chih Hsuan “Kiki” Lin, 54, formerly of Los Angeles and Las Vegas, was sentenced to 37 months in federal prison; and
- Cheong Wha “Heywood” Chang, 48, and his wife, Toni Tong Chen, 47, both formerly of Hacienda Heights, were sentenced to 12 months and one day, and 20 months in federal prison, respectively.
This case was investigated by the Federal Bureau of Investigation. The Securities and Exchange Commission provided valuable assistance.
This matter is being prosecuted by Assistant United States Attorney Ashwin Janakiram of the Major Frauds Section.
New Orleans Man Sentenced to 3 Years Probation after Previously Pleading Guilty to Trafficking in $193,980 Worth of Counterfeit GoodsRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that MAHER SALIM, age 41, a resident of New Orleans, Louisiana, was sentenced today by United States District Judge Jay A. Zainey to (3) years after previously pleading guilty to trafficking in counterfeit goods, in violation of Title 18, United States Code, Section 2320(a)(1). Judge Zainey scheduled a hearing to determine restitution owed to the victims for September 24, 2019.
According to court documents, SALIM owned and operated BRANDS 4 LESS, a business located at 4200 Washington Avenue, Unit A, in New Orleans. On about November 6, 2016, agents with the United States Department of Homeland Security – Homeland Security Investigations (“HSI”) conducted a cargo inspection of a suspicious package addressed to SALIM at the DHL Express facility in Kenner, Louisiana. The package contained 32 pairs of Nike shoes that were determined to be counterfeit. Thereafter, a Nike representative entered BRANDS 4 LESS during its business hours and purchased another pair of counterfeit Nike shoes. Based on this information, HSI agents executed a federal search warrant on BRANDS 4 LESS on January 19, 2017. During the search, agents seized numerous counterfeit goods SALIM was selling that bore the false marks of makers of clothing and luxury goods, including True Religion, Rock Revival, Michael Kors, Coach, Louis Vuitton, Polo, Timberland, New Era, Nike, Adidas, Dolce & Gabbana, Mitchell & Ness, and North Face. The collective fair market value of all the items was approximately $193,980.
U.S. Attorney Strasser praised the work of the United States Department of Homeland Security – Homeland Security Investigations. Assistant United States Attorney Jordan Ginsberg was in charge of the prosecution.
New Orleans Man Pleads Guilty to Obtaining Kilograms of Fentanyl Analogue from ChinaRead the Press Release
NEW ORLEANS - U.S. Attorney Peter G. Strasser announced that LEROY SMITH, age 35, of New Orleans, pleaded guilty yesterday to one count of conspiring to distribute 100 grams or more of a fentanyl analogue and 100 grams or more of heroin and one count of possessing firearms in furtherance of his drug trafficking. On the drug charge, SMITH is facing a mandatory minimum sentence of 10 years’ imprisonment, a maximum sentence of life, a possible fine of up to $10,000,000, and at least five years of supervised release upon his release from prison. On the firearms charge, SMITH is facing a mandatory minimum sentence of 5 years’ imprisonment, a possible fine of up to $250,000, and no more than five years of supervised release upon his release from prison.
According to court records, SMITH conspired with his codefendant, Carl J. Hurst, and others, to order kilograms of acetylfentanyl, an analogue of fentanyl, from a Chinese manufacturer. SMITH admitted that he sold the acetylfentanyl as “heroin.” The government’s evidence in this case includes multiple undercover purchases of heroin and acetylfentanyl from SMITH, wiretaps on SMITH’s phones, drug seizures, and eyewitness testimony. On May 31, 2019, codefendant Hurst also pleaded guilty to conspiring to sell acetylfentanyl and heroin.
U.S. District Judge Ivan L.R. Lemelle will sentence SMITH on September 25, 2019.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
U.S. Attorney Strasser praised the work of the Drug Enforcement Administration and the New Orleans Police Department in investigating this matter. Assistant United States Attorneys Brandon Long and Nicholas Moses are responsible for the prosecution.
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New Jersey/Pennsylvania Doctor Indicted for Accepting Bribes and Kickbacks from A Pharmaceutical Company in Exchange for Prescribing Powerful Fentanyl DrugRead the Press Release
A doctor who practiced in New Jersey and Pennsylvania was charged in an indictment unsealed today for his alleged participation in a scheme to receive bribes and kickbacks from a pharmaceutical company in exchange for prescribing large volumes of a powerful fentanyl narcotic.
Assistant Attorney Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Craig Carpenito of the District of New Jersey, Special Agent in Charge Gregory W. Ehrie of the FBI’s Newark Field Office, Special Agent in Charge Scott J. Lampert of the U.S. Department of Health and Human Services Office of the Inspector General’s (HHS-OIG) Office of Investigations—New York Region and Special Agent in Charge Susan A. Gibson of the Drug Enforcement Administration’s (DEA) New Jersey Division made the announcement.
Kenneth Sun, M.D., 58, of Easton, Pennsylvania, was charged with one count of conspiracy to defraud the United States and to pay and receive health care kickbacks and four counts of receiving health care kickbacks. Sun was arrested this morning and appeared this afternoon before U.S. Magistrate Judge Leda Dunn Wettre of the District of New Jersey. A trial date has not been set.
According to the indictment, Sun owned and maintained a pain management medical practice named Progressive Pain Solutions LLC, which had two locations: one in Phillipsburg, New Jersey, the other in Wind Gap, Pennsylvania. The indictment alleges that Sun solicited and received more than $140,000 in bribes and kickbacks from Insys Therapeutics, a pharmaceutical company based in Arizona, in exchange for prescribing more than 28 million micrograms of Subsys, a powerful opioid narcotic designed to rapidly enter a patient’s bloodstream upon being sprayed under the tongue. Subsys, which is sold by Insys Therapeutics and costs thousands of dollars for a month’s supply, contains fentanyl, a synthetic opioid pain reliever which is approximately 50 to 100 times more potent than morphine. The U.S. Food and Drug Administration approved Subsys solely for the “management of breakthrough pain in cancer patients who are already receiving and who are tolerant to around the clock therapy for their underlying persistent cancer pain”. The indictment alleges that Sun prescribed Subsys to patients for whom Subsys was medically unnecessary, not eligible for insurance reimbursement and/or not desired.
The indictment further alleges that the bribes and kickbacks that Sun received from Insys Therapeutics in exchange for prescribing Subsys were disguised as “honoraria” for educational presentations regarding Subsys that Sun purportedly provided to licensed practitioners. In reality, the indictment alleges, these presentations were a sham: they lacked the appropriate audience of licensed practitioners, there was no presentation about Subsys whatsoever, the same individuals attended over and over again and Sun did not attend some of the presentations at all. Sun caused Medicare to pay more than $847,000 for Subsys prescriptions that were medically unnecessary, procured through the payment of kickbacks and bribes, and not eligible for Medicare reimbursement, the indictment alleges.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI, HHS-OIG and the DEA. Trial Attorney Rebecca Yuan of the Criminal Division’s Fraud Section is prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Mountain Top Accountant Sentenced to Seven Years of Imprisonment for Laundering Nearly $1.4 Million and for Failing to Report over $800,000 to the IRSRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on June 24, 2019, United States District Court Judge James Munley sentenced Adam Kamor, age 44, to seven years of imprisonment and three years of supervised release, for committing money laundering and tax evasion.
According to United States Attorney David J. Freed, Kamor worked as a Certified Public Accountant and operated the accounting business Decker Accounting LLC in Wilkes-Barre, Pennsylvania. From October 2014 to January 2018, Kamor embezzled approximately $1,384,000 from one of his clients, a non-profit organization, by shifting the funds through a series of accounts under his control. Kamor used the embezzled funds for his own personal benefit, primarily to gamble at the Mohegan Sun Pocono casino.
Kamor also failed to report a total of $804,365.73 in income between tax years 2014 ($110,607.08), 2015 ($315,224.71), and 2016 ($378,533.94). Kamor filed false Form 1040 Individual Income Tax Returns for each of those tax years.
The United States seized $32,443 of the remaining embezzled funds, which will be returned to the victim of Kamor’s crimes. Judge Munley ordered Kamor to pay additional restitution of $1,353,244.56 to his victim, and $241,623 to the IRS, to satisfy his outstanding tax obligation. In pronouncing the sentence, Judge Munley highlighted the serious nature of the offense, and interests in sending a deterrent message to like-minded criminals.
“Not only did this defendant willfully fail in his duty as a citizen to pay his fair share, he further enriched himself by stealing from an organization that existed for the benefit of others,” said U.S. Attorney Freed. “We were able to aggressively prosecute this white collar criminal because of the hard work and dedication of our partners at IRS Criminal Investigation. If tax cheats in the Middle District of Pennsylvania are not on notice, then they are not paying attention.”
“Money laundering is tax evasion in progress,” stated Special Agent in Charge Guy Ficco of the IRS’s Criminal Investigations Division. “IRS Criminal Investigation is committed to unraveling complex financial transactions and money laundering schemes where individuals attempt to conceal the true source of their money. Rest assured that IRS-CI will continue to protect the integrity of the tax system by ensuring everyone pays the right amount of tax.”
The investigation was conducted by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Phillip J. Caraballo prosecuted the case.
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Mishawaka, Indiana Man SentencedRead the Press Release
SOUTH BEND - Reginald Blackburn, age 26, of Mishawka, Indiana, was sentenced before United States District Court Judge Jon E. DeGuilio for Conspiracy to Distribute Heroin, announced U.S. Attorney Kirsch.
Blackburn was sentenced to 84 months in prison followed by 5 years of supervised release.
According to documents in this case, between August and October 2017, Blackburn was part of a group of people who sold heroin in the South Bend and Mishawaka area. They shared at least one cellphone, which they used to arrange sales of heroin. Members of the group would pick up pre-packaged baggies of heroin, usually one-half gram, from members of the group and sell the heroin to people who called the shared cellphone. The price charged for the heroin was set by people who were higher up in the group. Blackburn was involved between August and October, but others in the group operated before he joined. Between March and September, 2017, the phone was used for about 66,000 calls and text messages.
This case was investigated by DEA with assistance from the St. Joseph County Drug Investigations Unit, the local federal Organized Crime Drug Enforcement Task Force, ATF, St. Joseph County Prosecutor’s Office, Indiana State Police, South Bend Police and Elkhart Police. The case was handled by Assistant U.S. Attorneys Joel Gabrielse and Molly Donnelly.
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Mexican Citizen Charged with Importing Methamphetamine and Heroin into United StatesRead the Press Release
LAREDO, Texas – A 50-year-old Mexican national is set to appear in federal court on charges he imported methamphetamine and heroin into the country, announced U.S. Attorney Ryan K. Patrick. Fernando Anaya-Bautista is also charged with one count of conspiracy.
A federal grand jury returned the three-count indictment June 18, 2019, against Fernando Anaya-Bautista. He is set to appear for his arraignment before U.S. Magistrate Judge Diana Song Quiroga at 1:00 p.m. today.
Originally charged by criminal complaint, Anaya-Bautista allegedly attempted to enter the United States at the Colombia Solidarity International Bridge in Laredo May 23, 2019, driving a tractor-trailer. Following a positive K-9 alert and x-ray examination, authorities located 12 bundles of methamphetamine weighing approximately 11 kilograms along with one package of heroin with a weight of 1.06 kilograms, according to the charges. They were all allegedly located in a speaker box inside the truck.
If convicted, Anaya-Bautista faces up to life in prison and a possible $10 million fine.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with assistance from CBP. Assistant U.S. Attorney Jennifer Day is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Merrill Lynch Commodities Inc. Enters into Corporate Resolution and Agrees to Pay $25 Million in Connection with Deceptive Trading Practices Executed on U.S. Commodities MarketsRead the Press Release
Merrill Lynch Commodities Inc. (MLCI), a global commodities trading business, has agreed to pay $25 million to resolve the government’s investigation into a multi-year scheme by MLCI precious metals traders to mislead the market for precious metals futures contracts traded on the Commodity Exchange Inc. (COMEX), announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office.
According to MLCI’s admissions, beginning by at least 2008 and continuing through 2014, precious metals traders employed by MLCI schemed to deceive other market participants by injecting materially false and misleading information into the precious metals futures market. They did so by placing fraudulent orders for precious metals futures contracts that, at the time the traders placed the orders, they intended to cancel before execution. In doing so, the traders intended to “spoof” or manipulate the market by creating the false impression of increased supply or demand and, in turn, to fraudulently induce other market participants to buy and to sell futures contracts at quantities, prices and times that they otherwise likely would not have done so. Over the relevant period, the traders placed thousands of fraudulent orders.
MLCI entered into a non-prosecution agreement (NPA) and agreed to pay a combined $25 million in criminal fines, restitution and forfeiture of trading profits. Under the terms of the NPA, MLCI and its parent company, Bank of America Corporation (BAC), have agreed to cooperate with the government’s ongoing investigation of individuals and to report to the Department evidence or allegations of violations of the wire fraud statute, securities and commodities fraud statute, and anti-spoofing provision of the Commodity Exchange Act in BAC’s Global Markets’ Commodities Business, whose function is to conduct wholesale, principal trading and sales of commodities. MLCI and BAC also agreed to enhance their existing compliance program and internal controls, where necessary and appropriate, to ensure they are designed to detect and deter, among other things, manipulative conduct in BAC’s Global Markets Commodities Business.
The Department reached this resolution based on a number of factors, including MLCI’s ongoing cooperation with the United States and MLCI and BAC’s remedial efforts, including conducting training concerning appropriate market conduct and implementing improved transaction monitoring and communication surveillance systems and processes.
The Commodity Futures Trading Commission (CFTC) announced a separate settlement with MLCI today in connection with related, parallel proceedings. Under the terms of the resolution with the CFTC, MLCI agreed to pay approximately $25 million, which includes a civil monetary penalty of $11.5 million, as well as restitution, and disgorgement, with restitution and disgorgement credited for any such payments made to the Department. In addition, the CFTC order imposes upon MLCI other remedial and cooperation obligations in connection with any CFTC investigation pertaining to the underlying conduct.
As part of the investigation, the Department obtained an indictment against Edward Bases and John Pacilio, two former MLCI precious metals traders, in July 2018. Those charges remain pending in the U.S. District Court for the Northern District of Illinois. See United States v. Edward Bases and John Pacilio, 18-cr-48 (N.D. Ill.). All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI’s New York Field Office. Trial Attorneys Ankush Khardori and Avi Perry of the Criminal Division’s Fraud Section prosecuted the case. The CFTC also provided assistance in this matter.
If you believe you are a victim of this offense, please visit https://www.justice.gov/criminal-vns/case/mlci or call (888) 549-3945.
Martin Man Indicted in Theft of FirearmsRead the Press Release
United States Attorney Ron Parsons announced that a Martin, South Dakota, man was charged in federal district court with Theft of Firearms, Possession of a Firearm by a Prohibited Person, and Possession of a Stolen Firearm.
Sidney Marshall, age 25, was charged on April 16, 2019. Marshall appeared before U.S. Magistrate Judge Daneta Wollmann on June 6, 2019, and pleaded not guilty to the charges. The maximum penalty upon conviction is 10 years in federal prison and/or a $250,000 fine, 3 years supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Marshall, a previously convicted felon who is prohibited from possessing firearms, breaking into a business in Martin and stealing multiple firearms in August 2018. The charges are merely an accusation and Marshall is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Martin Police Department. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
Marshall was detained pending trial. A trial date has not been set.
Man Who Knowingly Gave Felon A Gun Pleads Guilty Shortly Before Scheduled TrialRead the Press Release
Troy Cooke, 46, from Sioux City, Iowa, was charged with 1 Count of transferring a firearm and ammunition to a felon, the charges are contained in an indictment filed February 20, 2019 in United States District Court in Sioux City.
The allegations against Cooke were, in essence, that he gave a gun (an IAC Billerica, Model 1911-A1, handgun) and ammunition to Ronald Warner knowing and having reason to know Ronald Warner had been convicted of a crime punishable by imprisonment for a term exceeding a year.
Trial was scheduled to begin July 1, 2019. Just days before trial, Cooke entered a guilty plea, without a plea agreement, and fully admitted to the crime for which he was charged. Cooke faces a possible maximum sentence of 10 years’ imprisonment, a $100 fine, and 5 years of supervised release following any imprisonment.
The case is being investigated by the Sioux City Police Department and prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-4010.
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Lynn Man Sentenced for Distributing Heroin and FentanylRead the Press Release
BOSTON – A Lynn man was sentenced today in federal court in Boston for multiple drug convictions associated with his distribution of heroin and fentanyl that led to the 2017 overdose death of a Melrose resident.
Yeffry Reynoso, a/k/a Chris, 27, was sentenced by U.S. District Judge Nathaniel M. Gorton to 150 months in prison and four years of supervised release. In January 2019, Reynoso pleaded guilty to one count of conspiring to distribute at least 100 grams of heroin and at least 40 grams of fentanyl in 2016 and 2017. Reynoso also pleaded guilty to six counts of distributing heroin or fentanyl on various dates in 2017.
According to court documents, Reynoso admitted that he sold and directed others to sell on his behalf small, retail quantities (typically approximately .25 to .30 grams in a plastic baggie) of heroin, heroin mixed with fentanyl, and/or fentanyl to individuals in Lynn, Melrose, Saugus, Peabody, Malden, and the surrounding areas. Reynoso admitted that he sold the drugs to his customers on an almost daily basis and that he directed others who worked for him to deliver the drugs. Reynoso further admitted that he sold heroin and heroin mixed with fentanyl to a customer in Melrose after being told by her friend not to do so and that his customer fatally overdosed from the drugs he provided.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and Melrose Police Chief Michael Lyle made the announcement today. Assistant U.S. Attorney James E. Arnold of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
Lima man with a long history of violence sentenced to 15 years in federal prison for having firearmsRead the Press Release
A Lima man with a long history of violence was sentenced to 15 years in federal prison for having firearms.
Benjamin Frieson, 47, previously pleaded guilty to two counts of being a felon in possession of a firearm.
Frieson possessed a GSG .22-caliber rifle and a Taurus 9 mm pistol on July 14, 2019, according to court documents.
Frieson was prohibited from having firearms because of multiple previous convictions, including for aggravated assault, felonious assault on a peace officer, aggravated assault and attempted robbery.
“This defendant has proven time and again to be a violent individual,” U.S. Attorney Justin Herdman said. “This sentence makes the community safer.”
These cases are part of Project Safe Neighborhoods, 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. PSN was reinvigorated in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lima Police Department. It was prosecuted by Assistant U.S. Attorneys Tracey Tangeman and Matthew Simko.
Las Vegas Man Sentenced to Three Years in Prison After Stealing Elderly Victim's IdentityRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man who used an elderly person’s identity to steal nearly $30,000, was sentenced yesterday to three years in federal prison, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
Dennis William Moncrief, 55, was sentenced by U.S. District Court Judge James C. Mahan to three years and one day in prison followed by one year of supervised release. Judge Mahan also ordered Moncrief to pay restitution in the amount of $28,034.83.
In August 2017, Moncrief was serving a term of supervised release imposed after his conviction for being a felon in possession of a firearm. Based on Moncrief’s admission that he violated the terms of his release, U.S. District Court Judge Andre P. Gordon revoked Moncrief’s release, imposed a 13-month sentence, and ordered Moncrief to self-surrender to the Bureau of Prisons at a later date to serve that sentence.
According to his plea agreement in this case, prior to his self-surrender date, in October 2017, Moncrief stole the identity of a 79-year old victim to fraudulently obtain credit cards in her name and used those cards to cause more than $28,000 in loss. When it came time for Moncrief to serve his revocation sentence as ordered by Judge Gordon, he intentionally failed to surrender to federal authorities.
In February 2019, Moncrief pleaded guilty to one count of aggravated identity theft and one count of failure to surrender for service of sentence.
The case was investigated by the United States Postal Inspection Service. Assistant U.S. Attorney Tony Lopez prosecuted the case.
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Lake Charles man sentenced to serve time in federal prison for stealing firearms from pawn shopRead the Press Release
LAKE CHARLES, La. – United States Attorney David C. Joseph announced that Ryan Taylor, 19, of Lake Charles, was sentenced Monday by U.S. District Judge Robert R. Summerhays to serve 26 months in federal prison for firearm theft from a licensed firearm dealer.
According to information presented in court, Taylor and at least two other individuals stole three firearms on July 8, 2018 from a pawnshop in Lake Charles. Video surveillance from that night revealed a truck driving up to the business and someone attaching a rope to the front of the truck and then the other end to the front door of the business. The driver then backed away shattering the glass on the front door. Three individuals then entered the business and stole the following firearms from the shop’s inventory: a Savage, model 110, 30-60-caliber rifle, a Tikka, model M695, .270-caliber rifle, and a Savage, model 111, 30-06-caliber rifle. Taylor was later arrested and one of the stolen firearms was found with him. During his guilty plea on February 15, 2019, Taylor admitted to taking part in the theft.
The ATF and 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.
Lafayette, Indiana Man Sentenced to 97 Months in PrisonRead the Press Release
HAMMOND –Travis Barrett, 39, of Lafayette, Indiana was sentenced today by U.S. District Court Judge Joseph S. Van Bokkelen after pleading guilty to possession of child pornography, announced U.S. Attorney Kirsch.
Barrett was sentenced to serve 97 months in prison, 10 years of supervised release and ordered to pay a total of $25,000 in restitution ($5000 to each of the five victims).
According to his plea agreement, Barrett admitted to possessing more than 15000 images and 2450 videos of child pornography
This case was investigated by the Department of Homeland Security, Lafayette Police Department and the Tippecanoe County Sheriff’s Department. The case was handled by Assistant U.S. Attorney Gary T. Bell.
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Iowa Man Sentenced for Abusive Sexual Contact by ForceRead the Press Release
United States Attorney Ron Parsons announced that a Sioux City, Iowa, man convicted of Abusive Sexual Contact by Force was sentenced on June 24, 2019, by U.S. District Judge Karen E. Schreier.
Michael Weddell, Jr., age 29, was sentenced to 120 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Weddell was indicted by a federal grand jury on June 6, 2018. He pled guilty on April 5, 2019.
The conviction stemmed from incidents between June 1, 2015, and July 10, 2015, in Wagner, South Dakota, when Weddell knowingly engaged, and attempted to engage in, sexual contact with a child who had not attained the age of 12. Weddell used force to arouse and gratify his own sexual desire.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
Weddell was immediately turned over to the custody of the U.S. Marshals Service.
Inscription House Man Sentenced to Federal Prison for Assault on Family MemberRead the Press Release
PHOENIX, Ariz. – This week, Oliver Hurley, of Inscription House, Ariz., was sentenced by U.S. District Judge Dominic W. Lanza to 18 months of imprisonment to be followed by three years of supervised release. Hurley had previously pleaded guilty to assault with a dangerous weapon.
On November 5, 2018, Hurley attacked the victim with a piece of firewood, striking her several times and causing lacerations to her arm and head. The assault happened on the Navajo Nation Indian Reservation and Hurley is an enrolled member of the Navajo Nation.
The investigation in this case was conducted by the Navajo Nation Division of Public Safety and the Federal Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorney Alexander Samuels, District of Arizona, Phoenix.
Indianapolis, Indiana Man Sentenced to 97 Months in PrisonRead the Press Release
SOUTH BEND – Howard Fleming III, age 24, of Indianapolis, Indiana, was sentenced before United States District Court Judge Jon E. DeGuilio upon his plea of guilty to being a felon in possession of a firearm and possessing a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Kirsch.
Fleming was sentenced to 97 months in prison followed by 2 years of supervised release.
According to documents in this case, Fleming was in a car in South Bend, and had a .40 caliber handgun along with less than five grams of cocaine when stopped by police. He had planned to sell the cocaine while using the firearm for protection while drug dealing. Fleming also has a prior felony conviction from April of 2014 in St. Joseph County, Indiana, for which he was sentenced to three years of imprisonment.
This case was investigated by ATF with assistance from the South Bend Police Department. The case was handled by Assistant U.S. Attorney Molly E Donnelly.
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Illegal Alien from Mexico Sentenced for Unlawful ReentryRead the Press Release
Gulfport, Miss. – Aldo German Arechiga-Gutierrez, a 45 year-old citizen of Mexico, was sentenced yesterday by U.S. District Judge Sul Ozerden to 18 months in prison followed by 3 years of supervised release for unlawful reentry by an alien who was previously deported after a conviction for an aggravated felony, announced U.S. Attorney Mike Hurst, Jere T. Miles, Special Agent in Charge of U.S. Immigration & Customs Enforcement's Homeland Security Investigations in New Orleans, and Gregory A. Bovino, Chief Patrol Agent of the U.S. Border Patrol’s New Orleans Sector.
In 2002, Arechiga-Gutierrez was convicted in California for conspiracy to possess and sell methamphetamine. As a drug trafficking crime, the conviction qualified as an aggravated felony. Arechiga-Gutierrez was ordered removed from the United States to Mexico after serving his prison sentence. He then unlawfully returned to the United States and, in 2012, was convicted in the Southern District of Mississippi for being an illegal alien in possession of a firearm. After completing his prison sentence on that charge, Arechiga-Gutierrez was again removed from the United States to Mexico in 2014.
The Homeland Security Investigations (HSI) Office in Gulfport received information that Arechiga-Gutierrez had returned again to the United States. HSI research and surveillance located Arechiga-Gutierrez residing in the Picayune area and illegally employed in the southeastern Louisiana area. Arechiga-Gutierrez was positively identified and arrested. He later admitted to being a citizen of Mexico, and to voluntarily entering and being in the U.S. unlawfully. Arechiga-Gutierrez pled guilty before Judge Ozerden on March 22, 2019.
U.S. Attorney Hurst commended the work of the City of Picayune Police Department, the Department of Homeland Security, Homeland Security Investigations and the United States Border Patrol. Assistant United States Attorney Stan Harris was the prosecutor for the case.
Illegal Alien Residing in Clinton, PA Charged with Unlawfully Re-entering U.S.Read the Press Release
PITTSBURGH, PA – A citizen of Mexico residing in Clinton, PA has been indicted by a federal grand jury in Pittsburgh on a charge of unlawful reentry after removal, United States Attorney Scott W. Brady announced today.
The one-count Indictment named Luis Ramirez-Barron, 39, as the sole defendant.
According to the Indictment, Ramirez-Barron had been previously deported and removed from the United States and was found in the United States after unlawfully reentering.
The law provides for a maximum total sentence of two years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Douglas C. Maloney is prosecuting this case on behalf of the government.
The Bureau of Immigration and Customs Enforcement conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Illegal Alien Pleads Guilty to Assaulting Federal OfficerRead the Press Release
CORPUS CHRISTI, Texas – A 33-year-old man from Guatemala has entered a guilty plea to assaulting a Border Patrol (BP) agent and for illegally entering the country, announced U.S. Attorney Ryan K. Patrick.
In the early morning hours of March 27, 2019, authorities encounters Lorenzo Perechu-Tziquin and others attempting to circumvent the U.S. BP Checkpoint near Falfurrias. The majority of the group complied with commands. However, Perechu-Tziquin, in an effort to prevent arrest, shoved and kicked a BP agent multiple times in the chest area through a barb-wire fence. In the course of the struggle, he caused multiple lacerations to the agent’s hands and arms, which required medical attention.
Perechu-Tziquin was eventually subdued and apprehended with the assistance of another BP agent.
Perechu-Tziquin was previously convicted of illegal entry into the United States in August 2018 and subsequently deported.
A sentencing hearing is scheduled for Sept.18, 2019, before U.S. District Judge Nelva Gonzales Ramos. At that time, Perechu-Tziquin faces up to 20 years for each count as well as a possible $250,000 maximum fine. He has been and will remain in custody pending that hearing.
The FBI and BP conducted the investigation. Assistant U.S. Attorney Yifei Zheng is prosecuting the case.
Hooksett Man Pleads Guilty to Embezzling Labor Union AssetsRead the Press Release
CONCORD - Dennis Robertson, 43, of Hooksett, pleaded guilty in federal court to embezzling labor union assets, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, Robertson served as the business manager for a local union based in New Hampshire for approximately 14 years until his dismissal in or around March 2017. He was the only full-time paid officer or employee of the local union, which had approximately 140 to 170 dues-paying members. Robertson’s duties included managing finances, receiving dues, dispatching workers, and handling grievances.
Robertson had access to the organization’s bank accounts. After Robertson left the union in approximately March of 2017, an audit revealed substantial financial discrepancies under Robertson’s tenure. In sum, this review revealed that between August 2015 and February 2017, Robertson wrote and signed unauthorized expense checks to himself and made unauthorized cash withdrawals from the union’s checking account in the approximate amount of $23,519. He additionally embezzled union funds in two other ways: (1) by making unsupported mileage payments to himself of approximately $11,333 and (2) failing to disclose cash dues payments he received from members in the amount of approximately $3,045.
Robertson is scheduled to be sentenced on October 1, 2019.
“Union members place substantial trust in those who handle union finances,” said U.S. Attorney Murray. “When individuals betray that trust and take money for their personal use, they will be held accountable for their unlawful conduct.”
“Combatting financial fraud and investigating embezzlement of union funds helps safeguard financial integrity in labor unions,” said DOL-OLMS Northeastern Regional Director Andriana Vamvakas. “This is a major priority for the U.S. Department of Labor’s Office of Labor-Management Standards. We will work with the United States Attorney’s Office to identify criminal violations and pursue appropriate legal action whenever anyone puts personal financial gain ahead of the best interests of union members.”
This matter was investigated by the U.S. Department of Labor, Office of Labor Management Standards. The case is being prosecuted by Assistant U.S. Attorney Charles L. Rombeau.
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Holyoke Man Sentenced for Threatening to Kill A Federal ProsecutorRead the Press Release
BOSTON - A Holyoke man was sentenced today in federal court in Boston for threatening to murder a federal prosecutor.
Carlos Maldonado, 30, was sentenced by U.S. District Court Judge Denise J. Casper to 50 months in prison, 30 months to be served concurrent to a federal sentence he is currently serving, and 20 months to be served consecutively, and three years of supervised release. The government recommended a sentence of 84 months to be served consecutively.
U.S. Attorney Andrew E. Lelling said, “Anyone who threatens a federal prosecutor will be aggressively prosecuted. Threats against prosecutors - like threats against judges, defense attorneys, or other actors in the court system - are an attack on the criminal justice system itself, and so we will never let them stand.”
“Threatening anyone in the law enforcement family, whether it be a police officer, Special Agent, analyst or prosecutor, is not only an attack on an individual but the entire criminal justice system,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office. “The FBI takes all threats against law enforcement extremely seriously and we will work with our partners to bring those who set out to undermine their safety to justice.”
“The United States Marshals Service will not tolerate anyone who threatens any of our protectees to include members of the United States Attorney’s Office,” said United States Marshal John Gibbons of the District of Massachusetts. “Our office is committed to the integrity and preservation of the judicial process and we will continue to vigorously investigate such threats.”
In May 2019, Maldonado pleaded guilty to threatening to murder an Assistant U.S. Attorney in retaliation for the federal prosecutor’s performance of his official duties. Maldonado was charged on April 26, 2019. Maldonado admitted that, in March 2018, he had written and sent a letter from a federal detention facility, where he was awaiting trial on federal charges for cocaine distribution, to the federal prosecutor responsible for prosecuting the charges against him. In that letter, Maldonado threatened to murder the Assistant U.S. Attorney, as well as the prosecutor’s family.
Maldonado is presently serving a 42-month federal sentence, a compilation of a 30-month sentence for cocaine distribution in 2016, and a consecutive 12-month sentence for his violation of supervised release conditions related to a prior conviction for distributing heroin in 2014.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and John Gibbons, United States Marshal for the District of Massachusetts, made the announcement. Assistant U.S. Attorney Greg A. Friedholm of Lelling’s Worcester Branch Office prosecuted the case.
Hayward Man Sentenced to More Than 8½ Years in Prison on Forced Labor and Illegal Harboring ChargesRead the Press Release
On December 18, 2020, United States Attorney David L. Anderson issued the following statement:
On Friday, December 18, 2020, we moved to vacate the judgment and dismiss the superseding indictment against Job Torres Hernandez. In this case, a jury concluded Mr. Torres Hernandez was guilty of multiple crimes, and the district court entered a criminal judgment against Mr. Torres Hernandez based upon that verdict. During the pendency of Mr. Torres Hernandez’s appeal to the Ninth Circuit Court of Appeals, we learned of circumstances leading us to the firm conclusion that at this point only a dismissal would meet the interests of justice. It is a serious step for the United States to dismiss criminal charges. Likewise, it is the solemn duty of the United States to seek justice in all its cases, and to evaluate the appropriateness of its charges throughout the course of the proceedings.
OAKLAND - Job Torres Hernandez was sentenced to 103 months in prison and was also ordered to pay $919,738.64 of unpaid wages in restitution, after being convicted earlier this year on charges that he obtained forced labor from victims and harbored illegal aliens for commercial advantage or private financial gain, announced United States Attorney David L. Anderson and Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Ryan L. Spradlin. The sentence was handed down today by the Honorable Jeffrey S. White, U.S. District Judge.
Torres, 38, of Hayward, Calif., was convicted of the charges on March 18, 2019, after a 10-day jury trial. The evidence at trial demonstrated that since at least May 2015, Torres owned construction companies in Northern California at which he employed workers to whom he paid little to nothing for their labor. Torres recruited workers from Mexico to work for his construction companies and then refused to pay them the wages they had earned. Further, Torres knew the workers had come to, entered, and remained in the United States in violation of law; he kept the workers in squalid conditions and shielded them from detection while making them work as long as 24 consecutive hours at a time. Many victims testified at trial, with the assistance of an interpreter, about how Torres treated them. Witnesses testified that Torres paid them far less than what he had promised to pay them, and when they complained, Torres threatened them or their family members. Specifically, the evidence demonstrated Torres warned his victims that if they reported him, then he would harm them physically, have associates in Mexico harm their family, or have them deported. The evidence also demonstrated that Torres told his victims that if they went to police or filed suit against him, no one would believe them. In addition, Torres housed dozens of workers on makeshift beds in a commercial warehouse in Hayward and other properties including a garage in Hayward. The workers had limited access to toilets and showers, and at times, the properties were locked, preventing the workers from leaving. The evidence demonstrated Torres harbored these individuals for the purpose of obtaining an advantage in the construction industry and for his private financial gain.
On December 6, 2018, a federal grand jury handed down a superseding indictment, charging Torres with one count of harboring illegal aliens for commercial advantage or private financial gain, in violation of 8 U.S.C. §§ 1324(a)(1)(A)(iii) and (B)(i), and one count of forced labor, in violation of 18 U.S.C. § 1589(a). The jury convicted Torres of both counts.
Torres was remanded into custody on the day the jury rendered its verdict, and he remains in custody pending assignment to a Bureau of Prisons facility. He was also sentenced to a three year term of supervised release to begin at the conclusion of his prison term.
Assistant U.S. Attorneys Ravi T. Narayan and Jonathan U. Lee are prosecuting the case with the assistance of Vanessa Quant, Jessica Rodriguez Gonzalez, and Kimberly Richardson. The prosecution is the result of an investigation by the Department of Homeland Security’s Human Trafficking Unit; Department of Labor’s Wage and Hour Division; and the San Francisco Police Department’s Special Victims Unit.
Hartford Man Sentenced to 7 Years in Federal Prison for Distributing Heroin and FentanylRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that CARLOS DIAZ, 43, of Hartford, was sentenced yesterday by U.S. District Judge Stefan R. Underhill in Bridgeport to 84 months of imprisonment, followed by four years of supervised release, for distributing heroin and fentanyl.
According to court documents and statements made in court, in August and September 2017, the FBI’s Northern Connecticut Violent Crime Gang Task Force and Hartford Police made a total of eight controlled purchases of heroin and fentanyl from Diaz and his associate, Louis Serrano, in the rear parking lot of an apartment complex on Elliott Street in Hartford. Diaz typically took the order for the drugs and negotiated the price, and then instructed the purchaser to meet Serrano, who delivered the drugs and accepted the payment.
Diaz was arrested on September 28, 2017. On that date, a search of his residence revealed approximately 700 grams of raw unprocessed heroin, more than 5,000 bags of heroin and/or fentanyl, three digital scales, and other items used to process and package narcotics for street sale.
Diaz has been detained since his arrest. On June 11, 2018, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and distribution of, 100 grams or more of heroin and a quantity of fentanyl.
Serrano, 25, pleaded guilty to the same charge on March 22, 2018, and 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 Michael J. Gustafson.
Groveton Man Sentenced to 65 Months for Participating in Fentanyl Trafficking ConspiracyRead the Press Release
CONCORD – Robert McLain, 27, of Groveton, New Hampshire, was sentenced on Monday to serve 65 months in prison for participating in a fentanyl drug trafficking conspiracy, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, as a result of an ongoing drug trafficking investigation, agents and task force officers with the Drug Enforcement Administration learned that on March 1, 2018, McLain intended to travel from New Hampshire to a location in Lawrence, Massachusetts to purchase 250 grams of a controlled substance. Agents conducted surveillance in the area of the transaction and observed a known drug trafficker get in the back seat of the car; and after a few minutes, get out again. The vehicle left Massachusetts and agents followed it directly to New Hampshire.
The agents informed a New Hampshire State Trooper patrolling Interstate Route 93 about their surveillance observations. The trooper stopped the vehicle for traffic violations and identified the driver and McLain as the passenger. McLain subsequently admitted to purchasing one gram of fentanyl, which he claimed he swallowed. The owner of the vehicle consented to a search of her car and signed a consent to search form. The troopers found a hidden compartment in the vehicle that contained approximately 240 grams of fentanyl. McLain admitted that he purchased fentanyl in Lawrence and resold the fentanyl in New Hampshire. Over the course of the investigation, McLain ordered approximately 560 grams of fentanyl. McLain also admitted that he traded fentanyl in exchange for a firearm.
McLain directed officers to approximately $11,000 of admitted drug proceeds, and firearms. Officers seized four handguns, a rifle, and ammunition from McLain’s residence. They also seized soda cans that were manufactured with a hidden compartment to conceal narcotics. The cash, firearms, and ammunition were forfeited to the United States.
McLain previously pleaded guilty on October 1, 2018.
“Interstate fentanyl trafficking is causing tremendous damage to communities throughout New Hampshire,” said U.S. Attorney Murray. “In order to protect public safety, we will continue to work closely with our law enforcement partners to identify, prosecute, and incarcerate those who are responsible for bringing this deadly drug into the Granite State.”
“Fentanyl is causing deaths in record numbers and DEA’s top priority is to aggressively pursue anyone who distributes this poison,” said DEA Special Agent in Charge Brian D. Boyle. “Today’s sentence not only holds Mr. McLain accountable for his crimes but serves as a warning to those traffickers who are fueling the opioid epidemic in the Granite State.”
The case was a collaborative investigation that involved the DEA; the New Hampshire State Police; the Hillsborough County Sheriff’s Office; the Nashua Police Department; the Massachusetts State Police; the Massachusetts Attorney General’s Office; the New Hampshire Attorney General’s Office; the Essex County District Attorney’s Office; the Internal Revenue Service; Immigration and
Customs Enforcement’s Homeland Security Investigations; United States Customs and Border Protection Boston Field Office; the United States Marshals Service; the United States Department of State’s Diplomatic Security Service; the Manchester Police Department; the Lisbon Police Department; the Littleton Police Department; the Seabrook Police Department; the Haverhill (MA) Police Department; the Methuen (MA) Police Department; the Lowell (MA) Police Department; and the Maine State Police.
The case is being prosecuted by Assistant United States Attorneys Georgiana L. Konesky, Seth R. Aframe and Debra M. Walsh.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Four people indicted for two separate armed robberies in Elyria this springRead the Press Release
Four people were indicted for two separate armed robberies in Elyria this spring.
Joseph L. Geiger and Michael A. Ward are accused of using a firearm to rob the Marathon gas station at 503 Huron Street on May 5.
James A. Jackson and Demario J. Horton are accused of using a firearm to attempt to rob the Rally’s at 711 Cleveland Street on June 11.
The cases are otherwise unrelated.
Geiger, 31, of Cleveland, and Ward, 31, of Lorain, are charged with one count of Hobbs Act robbery and one count of using and brandishing a firearm during a crime of violence. Ward is also charged with being a felon in possession of a firearm.
Geiger and Ward are accused of brandishing a firearm while robbing the Marathon gas station on May 5. Ward also allegedly possessed a Valor .325 revolver and three live rounds of .325-caliber ammunition on May 5, despite previous convictions for domestic violence and burglary.
Jackson, 27, of Wickliffe, and Horton, 29, of Cleveland, are charged with one count of attempted Hobbs Act robbery and one count of using and brandishing a firearm during a crime of violence. Horton is also charged with being a felon in possession of a firearm.
Jackson and Horton are accused of brandishing a firearm on June 11 while attempting to rob the Rally’s restaurant. Horton also allegedly possessed a Glock .45-caliber pistol and ammunition, despite a previous conviction for aggravated robbery.
“Anyone who uses a firearm to threaten people who are just trying to earn a living is a danger to our community,” U.S. Attorney Justin Herdman said. “These cases are another example of federal and local law enforcement working together to make us all safer.”
“Customers were simply utilizing their community businesses when these individuals brought danger in the door,” said FBI Special Agent in Charge Eric B. Smith. “The FBI will continue to partner with Elyria PD and our other law enforcement partners to rid the streets of gun toting criminals.”
Elyria Police Chief Duane Whitely said: “These two cases are perfect examples of how the federal government is helping local municipalities make the cities a safer place to be. The Elyria Police Department and the FBI worked together to solve these crimes and then took the cases to the U.S. Attorney’s Office for the indictments.”
These cases are part of Project Safe Neighborhoods, 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. PSN was reinvigorated in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The cases were investigated by the Federal Bureau of Investigation and Elyria Police Department. They are being prosecuted by Assistant U.S. Attorney Scott Zarzycki.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Fort Smith Woman Sentenced to 5 Years in Federal Prison for Drug TraffickingRead the Press Release
Fort Smith, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Krisa Dawn Durham, age 42, of Fort Smith, Arkansas, was sentenced today to 60 months in federal prison followed by three years of supervised release for her conviction for conspiring to distribute methamphetamine. The Honorable P.K. Holmes, III presided over the sentencing hearing in the United States District Court in Fort Smith.
According to court records, investigators with the DEA Task Force and the Sebastian County Sheriff’s Department learned that Durham had an outstanding warrant for absconding from parole and that she was possibly staying at a Fort Smith motel. Based on this information, investigators set up surveillance at the motel and arrested Durham after finding methamphetamine and scales inside the hotel room where she was staying. Durham admitted to law enforcement officers that the methamphetamine and scales were hers. The DEA laboratory confirmed Durham had approximately 41 grams of actual methamphetamine.
Durham was indicted by a federal grand jury in December 2018. She entered a guilty plea to Count One of the Indictment in February 2019.
This case was investigated by the Drug Enforcement Administration, Fort Smith Police Department, Sebastian County Sheriff’s Office and the 12th/21st Judicial District Drug Task Force. Assistant United States Attorney Kyra Jenner prosecuted the case for the United States.
Fort Smith Man Sentenced to More Than 6 Years in Federal Prison for Felon in Possession of A FirearmRead the Press Release
Fort Smith, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Joseph Shelby, age 33, of Fort Smith, Arkansas, was sentenced today to 77 months in federal prison followed by three years of supervised release for one count of Knowingly Possessing a Firearm After a Felony Conviction. The Honorable P.K. Holmes, III presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in July 2018, Shelby was observed driving a white Tahoe erratically in Booneville, Arkansas by Arkansas State Police. The trooper followed the vehicle to initiate a traffic stop. Shelby sped up and fled from the trooper. Shortly thereafter, Shelby lost control of the vehicle, and crashed into a ditch. Shelby attempted to flee on foot, but was apprehended. A search of the vehicle yielded a Taurus, model PT738, .380 caliber pistol, with serial number obliterated, tucked between the driver’s seat, and the center console. Shelby had two prior felony convictions for Robbery and Theft of Property.
Shelby was indicted by a federal grand jury in July 2018, and entered a guilty plea in February 2019.
This case was investigated by the Arkansas State Police, Booneville Police Department, Logan County Drug Task Force and the Bureau of Alcohol, Fire, Tobacco, and Explosives (ATF). Assistant United States Attorney Candace Taylor prosecuted the case for the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.
Former Hoboken City Council Candidate Convicted of Conspiring to Use Mail to Promote Voter Bribery SchemeRead the Press Release
NEWARK, N.J. – A former candidate for the Hoboken City Council was convicted today of conspiring to promote a voter bribery scheme by use of the mail, U.S. Attorney Craig Carpenito announced.
Francis Raia, 67, of Hoboken, New Jersey, was a candidate for Hoboken City Council in 2013. He was convicted of one count of conspiracy to violate the federal Travel Act for causing the mails to be used in aid of voter bribery, contrary to New Jersey state law, during that election. The jury deliberated for one day, following a five-day trial before Senior U.S. District Judge William J. Martini in Newark federal court.
“The defendant in this case tried to rig a Hoboken municipal election by voting multiple times, both for himself and for a ballot question that he supported,” U.S. Attorney Carpenito said. “He did so by deploying his loyal foot soldiers to buy votes from people who he thought were in need of money, and then creating a phony cover story to conceal his tracks. Fortunately, neither federal law enforcement nor the jury was fooled. Today’s verdict underscores this Office’s continued dedication to uncovering, investigating and prosecuting acts of corruption at every level of New Jersey government.”
“The health of our democracy relies on the integrity of our electoral system,” FBI-Newark Special Agent-in-Charge Gregory W. Ehrie said. “When people use corrupt methods to work around that system, it deprives every constituent of their right to be heard through their vote.”
According to documents filed in this case and the evidence at trial:
Under New Jersey law, registered voters are permitted to cast a ballot by mail rather than in person. To receive a mail-in ballot, voters must complete and submit to their County Clerk’s Office an Application for Vote By Mail Ballot (VBM Application). After the VBM Application is processed by the County Clerk’s Office, voters receive a mail-in ballot.
From October 2013 through November 2013, Raia instructed Dio Braxton, Matt Calicchio, Lizaida Camis, and other conspirators who worked for his campaign, to pay certain Hoboken voters $50 if those voters applied for and cast mail-in ballots in the November 2013 Hoboken municipal election. The conspirators provided these voters with VBM Applications and then delivered or mailed the completed VBM Applications to the Hudson County Clerk’s office.
After the mail-in ballots were delivered to the voters, at Raia’s direction, the conspirators went to the voters’ residences and instructed them to vote for Raia and in favor of a ballot referendum that Raia supported that would have loosened rent control restrictions in Hoboken. The conspirators promised the voters that they would be paid $50 for casting their mail-in ballots and told them that they could pick up their checks after the election at Raia’s office in Hoboken. Raia and his workers, including Braxton, Calicchio, Camis, and others, checked the ballots to ensure that voters had voted the way that they had instructed them to vote. Raia and his workers also had the voters sign declarations falsely stating that they had been paid in exchange for working on the campaign, when in fact the voters had been paid for their vote. After the election, the voters received $50 checks from a political consulting firm that was paid by Raia’s political action committee. Those $50 checks were never disclosed on Raia’s publicly filed political action committee election reports.
Braxton and Camis previously pleaded guilty to their roles in the conspiracy. Braxton is scheduled to be sentenced on Sept. 10, 2019, and Camis’ sentencing date has yet to be scheduled. Calicchio previously pleaded guilty to violating the federal Travel Act and is scheduled to be sentenced on Sept. 12, 2019. Raia, Braxton, Calicchio, and Camis each face a maximum penalty of five years in prison and a $250,000 fine.
U.S. Attorney Craig Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Ehrie in Newark, and special agents of the U.S. Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading to today’s verdict.
The government is represented by Assistant U.S. Attorney Sean Farrell of the U.S. Attorney’s Office’s Special Prosecutions Division and Assistant U.S. Attorney Rahul Agarwal, Deputy Chief of the Criminal Division.