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Wednesday 19 June 2019
Lincoln Man Sentenced for Distributing Child PornRead the Press Release
United States Attorney Joe Kelly announced that Jordan Goeschel, 27, of Lincoln, Nebraska, was sentenced Wednesday in Lincoln, Nebraska, to 12 years in prison by Chief United States District Judge John M. Gerrard, for receiving and distributing child pornography. In addition to his prison sentence, Goeschel will serve 20 years on supervised release and be required to register as a sex offender.
Between May, 2016 and April, 2017, the Nebraska State Patrol received more than 90 CyberTips from the National Center for Missing and Exploited Children (NCMEC), indicating a specific user was uploading videos and images of child pornography. Additionally, in August, 2017, Dropbox, Inc. provided information to law enforcement that more than 31,500 media files consisting of videos and photographs had been uploaded to a cloud account. More than 4,700 of those files contained child pornography in which appeared children under the age of twelve (12). After further investigation, a search warrant was executed at Goeschel’s residence in Lincoln and his Apple iPhone was seized. A forensic examination of that phone identified an additional 92 files that contained child pornography that Goeschel had received and distributed.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by 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 www.projectsafechildhood.gov.
This case was investigated by the Nebraska State Patrol.
Lexington Woman Sentenced for Theft of Mail by a Postal EmployeeRead the Press Release
Jackson, Miss. – Jasmine Marshall, 29, of Lexington, was sentenced yesterday by U.S. District Judge Carlton W. Reeves to 12 months’ probation for theft of mail while she was a U.S. Postal Service employee, announced U.S. Attorney Mike Hurst and Inspector in Charge Chris Cave with the U.S. Postal Service Office of Inspector General Southern Area Field Office. Marshall was also ordered to pay $197 in restitution.
On May 3, 2018, Postal Service Office of Inspector General special agents arrested Marshall after an investigation revealed her purposely failing to deliver mail and stealing money from undelivered boxes and letters. Marshall’s position as a rural postal carrier was terminated by the Postal Service.
On December 11, 2018, Marshall was charged in a federal criminal indictment for theft of mail while a postal employee. She pled guilty before Judge Reeves on March 4, 2019.
The case was investigated by the United States Postal Service Office of Inspector General.
Kanawha County Meth Dealer Sentenced to 10 Years in Federal PrisonRead the Press Release
CHARLESTON, W.Va. -- A Kanawha County methamphetamine dealer was sentenced today to 10 years in prison, announced United States Attorney Mike Stuart. Douglas Matthew Spry, 42, stands convicted of possession with the intent to distribute over 50 grams of methamphetamine. The investigation was conducted by the Nitro Police Department, with assistance from Homeland Security Investigations.
“Drug dealers aren’t welcome here,” said United States Attorney Mike Stuart. “If they chose to peddle their poisons in our communities, we will push for the longest sentences possible.”
Spry admitted that on December 10, 2017, his vehicle was the subject of a traffic stop near Nitro, West Virginia. The vehicle was stopped for a defective registration light. An officer with the Nitro Police Department could smell burnt marijuana emanating from the vehicle. During a search of the vehicle, officers located digital scales, a large amount of United States currency, and 70.41 grams of methamphetamine in the glove box. Spry denied knowledge of the methamphetamine but informed the officer that his fingerprints would likely be on the bag.
Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Ryan A. Saunders is handling the prosecution.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Kanawha County Man Sentenced for Gun CrimeRead the Press Release
CHARLESTON, W.VA. – United States Attorney Mike Stuart announced today that a Kanawha County man was sentenced in federal court on his conviction of felon in possession of a firearm. Malcolm Griffin, 27, was sentenced to 46 months in prison.
Griffin pled guilty on January 29, 2019, admitting that on July 5, 2018, he was a prohibited felon in possession of a firearm.
The case was investigated by the Charleston Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Chris Arthur handled the prosecution. Senior United States District Judge David A. Faber imposed the sentence.
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Jury Finds Nxivm Leader Keith Raniere Guilty of All CountsRead the Press Release
Keith Raniere, the founder and leader of Nxivm, was convicted today by a federal jury in Brooklyn of all seven counts of a superseding indictment charging him with racketeering and racketeering conspiracy; sex trafficking, attempted sex trafficking and sex trafficking conspiracy; forced labor conspiracy and wire fraud conspiracy. The racketeering offense included predicate acts of extortion, identity theft, and production and possession of child pornography. The verdict followed more than six weeks of trial before United States District Judge Nicholas G. Garaufis. When sentenced, Raniere faces a mandatory minimum of 15 years’ imprisonment, and up to life in prison.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Jonathan D. Larsen, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation (IRS-CI), announced the verdict.
“As found by the jury, Keith Raniere masqueraded as a self-help guru to gain the trust of his followers, and then exploited them for his own financial gain and sexual gratification,” stated United States Attorney Donoghue. “Raniere and his co-conspirators will now face the consequences for the serious crimes they committed and the profound harm they have caused their victims.” Mr. Donoghue extended his grateful appreciation to Homeland Security Investigations, the New York State Police and the United States Attorney’s Office for the Northern District of New York for their assistance during the investigation and prosecution.
“Nxivm’s so called self-help programs did anything but help the women they professed to empower,” stated FBI Assistant Director-in-Charge Sweeney. “What’s been proven today is that Keith Raniere preyed on the vulnerabilities of his many female victims, sold them lies and other falsehoods, and committed horrifying acts of coercion. This guilty verdict is a welcome end to a case that highlighted the many avenues of criminal activity pursued by a man whose intentions were deplorable beyond belief.”
“IRS Criminal Investigation plays a pivotal role in tracing the illicit funds from such horrendous criminal behavior,” stated IRS-CI Special Agent-in-Charge Larsen. “We proudly stand with our law enforcement partners in uncovering such crimes, and justice has been served.”
As proven at trial, in 2003, Raniere founded Nxivm, a purported self-help organization headquartered in Albany, New York, with centers operating elsewhere in the United States, Mexico and Canada. Raniere established Executive Success Programs (“ESP”), a series of purported self-help workshops in which participants paid thousands of dollars to attend classes based on Raniere’s teachings. In 2015, Raniere added a secret society within Nxivm called DOS or “The Vow,” with levels of women “slaves” headed by “masters.” The goal of the criminal enterprise was to promote Raniere, for example, by exalting his teachings and ideology, and to recruit new members, including as sexual partners for Raniere.In the course of their racketeering enterprise, Raniere and his co-conspirators committed multiple crimes, including sex trafficking, forced labor, computer hacking, fraud and identity theft. Raniere maintained command and control over his DOS members by collecting “collateral” from them, such as sexually explicit photos and letters making accusations against their loved ones that would be embarrassing if disclosed. For example, “Nicole,” a victim witness, testified that she was coerced into providing labor and services for Nxivm, which included taking photographs of naked women members and engaging in sex acts with Raniere, under threat of release of her collateral. DOS slaves were also branded with Raniere’s initials in their pelvic area using a cauterizing pen. The members of the “inner circle” were rewarded with financial opportunities and increased power and status within the enterprise.
Raniere and his co-conspirators also worked to support Raniere and protect Nxivm from perceived enemies. Raniere conspired with two of his closest associates in Nxivm to have “Daniela,” a member of his inner circle at the time, cross the Canadian border into the U.S. with a fake identification card bearing the name of a dead woman. Daniela testified that she assisted Raniere hack into the email accounts of persons he believed were enemies of Nxivm.
Among Raniere’s crimes was sexual exploitation of a child and possession of child pornography. Specifically, Raniere began having sex with a victim member identified as “Camila” when she was 15-years-old and he was 45. Raniere also took naked photographs of Camila when she was a minor.
Each of Raniere’s co-defendants previously pleaded guilty. On March 12, 2019, Nancy Salzman, Nxivm’s president and co-founder, pleaded guilty to racketeering conspiracy. On March 25, 2019, Lauren Salzman, a first-line master over slaves in DOS, pleaded guilty to racketeering and racketeering conspiracy. On April 8, 2019, Allison Mack, a first-line master, pleaded guilty to racketeering and racketeering conspiracy. On April 19, 2019, Clare Bronfman, a high-ranking member of Nxivm’s Executive Board, pleaded guilty to conspiracy to conceal and harbor illegal aliens for financial gain, and fraudulent use of identification documents, and Kathy Russell, Nxivm’s bookkeeper, pleaded guilty to visa fraud. They are awaiting sentencing.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Moira Kim Penza, Tanya Hajjar, Mark J. Lesko and Kevin M. Trowel are in charge of the prosecution. Assistant United States Attorney Karin Orenstein of the Office’s Civil Division is handling forfeiture matters.
The Defendant:
KEITH RANIERE (also known as “Vanguard” and “Grandmaster”)
Age: 58
Waterford, New YorkThe Defendants Who Previously Pleaded Guilty:
CLARE BRONFMAN
Age: 40
Clifton Park, New YorkALLISON MACK
Age: 36
Brooklyn, New YorkKATHY RUSSELL
Age: 61
Clifton Park, New YorkLAUREN SALZMAN
Age: 43
Clifton Park, New YorkNANCY SALZMAN (also known as “Prefect”)
Age: 65
Clifton Park, New YorkE.D.N.Y. Docket No. 18-CR-204 (S-2) (NGG)
Jury Convicts Shawnee Man of Illegal Firearm, CocaineRead the Press Release
KANSAS CITY, Mo. – A Shawnee, Kansas, man was convicted by a federal trial jury today of illegally possessing a firearm and possessing cocaine.
Anthony Whitehead, 32, was found guilty of one count of being a felon in possession of a firearm and one count of possessing a controlled substance.
A federal arrest warrant was issued for Whitehead in the District of Kansas on Dec. 29, 2016, for unlawful flight to avoid prosecution in regards to a Johnson County, Kansas, warrant for attempted kidnapping. Agents with the U.S. Marshal’s Service Fugitive Task Force received information that Whitehead was staying at the Relax Inn, 6300 Blue Parkway, Kansas City, Missouri.
On Jan. 20, 2017, federal agents contacted Whitehead and his girlfriend in their room at the Relax Inn, where they found a loaded Glock .40-caliber semi-automatic handgun hidden underneath the mattress of the bed. Agents also found a cellophane bag that contained approximately 1.5 grams of cocaine in one of Whitehead’s pants pockets.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Whitehead has two prior felony convictions for fleeing and attempting to elude a law enforcement officer, as well as prior felony convictions for unlawful possession of a firearm, possession of a controlled substance, possession with the intent to sell marijuana, domestic assault, endangering the welfare of a child, unlawful use of a weapon, and tampering with a motor vehicle.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for approximately 30 minutes before returning the guilty verdict to U.S. District Judge Greg Kays, ending a trial that began Tuesday, June 18, 2019.
Under federal statutes, Whitehead is subject to a sentence of up to 13 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Brad K. Kavanaugh and Special Assistant U.S. Attorney Robert M. Smith. It was investigated by the U.S. Marshal’s Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kansas City, Mo., Police Crime Lab and the Missouri State Highway Patrol Crime Lab.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Joint EU-US Statement Following the EU-US Justice and Home Affairs Ministerial MeetingRead the Press Release
On June 19, 2019, the Romanian Presidency of the Council of the European Union hosted the EU-US Ministerial Meeting on Justice and Home Affairs in Bucharest, Romania. The meeting provided an opportunity for both sides to take stock of their long-standing cooperation in this area and to reaffirm their partnership in addressing common security threats. U.S. Attorney General William P. Barr and Acting Deputy Secretary for Homeland Security David P. Pekoske represented the United States.
The European Union hosted the meeting and was represented by the Commissioner for Migration, Home Affairs and Citizenship Dimitris Avramopoulos; the Commissioner for Justice, Consumers and Gender Equality Věra Jourová; the Commissioner for the Security Union Julian King; as well as the Romanian Vice Prime Minister ad interim and Minister of Justice Ana Birchall and the Minister of Interior Carmen Daniela Dan, together with the Finnish Minister of the Interior Ms. Maria Ohisalo and the Minister of Justice Ms. Anna-Maja Henriksson, on behalf of the current and incoming Presidencies of the Council of the European Union.
The United States and the European Union reaffirmed that fighting terrorism is among their top priorities and committed to enhance their joint efforts, including by expanding the sharing of information gathered in zones of combat for use in investigations and prosecutions. Participants welcomed results already achieved in this domain, including in cooperation with Europol and Eurojust, and looked forward to the outcome of the meeting to be held on this subject that will bring together U.S. and EU experts in Brussels on July 10. With regard to other critical areas of EU-US information sharing, participants of the meeting reiterated the importance of the EU-US Passenger Name Record agreement and committed to begin a joint evaluation to assess its implementation. The United States and the European Union also discussed current threats to aviation security, including unmanned aircraft systems; combatting the use of the internet for terrorist purposes; and chemical, biological, radiological and nuclear threats.
The United States and the European Union also discussed the priority area of security in cyberspace. Participants committed to further joint efforts to maintain a safe, open, and secure cyberspace, and exchanged views on how to best address growing cyber threats. Participants recognized that the deployment of 5G network infrastructure needs to be addressed as a matter of priority, as it might pose significant security risks and impact the ability of law enforcement agencies to take effective action against crime. The United States and the European Union are committed to further pursue their exchanges on assessing and managing 5G and supply chain security risks through existing channels, including the Justice and Home Affairs meetings. The United States and the European Union also recognized the importance of swift cross-border access to electronic evidence, and discussed the implications of recent legislation enacted in the United States and legislation under examination in the European Union.
Participants acknowledged the recent approval by the Council of the European Union of a mandate authorizing the Commission to negotiate on behalf of the EU an agreement with the United States facilitating access to e-evidence for the purpose of judicial cooperation in criminal matters, as well as the steps being taken by the United States towards opening negotiations of such an agreement, in a manner consistent with their respective legislations. The United States and the European Union also reviewed the unprecedented challenges faced by electoral systems in democratic states, which call for exchanges of best practices to overcome those challenges. Participants confirmed their commitment to further discuss an expert level dialogue.
The United States and the European Union briefed each other on recent developments in their migration and border management policies; in particular, the European Union provided information on the reinforced mandate of the European Border and Coast Guard Agency (EBCGA) and on the implementation of the European Travel Information and Authorization System (ETIAS), two instruments which will further strengthen the EU's border management. Both sides concurred on the vital importance of preventing and combatting migrant smuggling and trafficking of human beings and discussed further joint work in these areas.
Finally, the United States and the European Union agreed on the importance of advancing further towards reciprocal visa free travel under their respective legal frameworks and, following the May 2019 meeting on visa reciprocity between the United States, the European Union and the concerned Member States, welcomed the progress of the five concerned Member States towards meeting the requirements of the Visa Waiver Program, in order to be considered for designation in the program.
Reaffirming their commitment to advance together towards common solutions in these areas, the United States and the European Union committed to meet again in the second half of 2019 in Washington, D.C.
The meeting was also attended by the EU Counter-Terrorism Coordinator Gilles de Kerchove, the Executive Director of Europol Catherine De Bolle, the Executive Director of Frontex Fabrice Leggeri and the Vice-President of Eurojust Klaus Meyer-Cabri.
James Felton Convicted in Manhattan Federal Court of 2016 Murders of Marvin Harris and Jose MoralesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that JAMES FELTON was found guilty of the June 11, 2016, murder of Marvin Harris, whom FELTON shot 13 times, as well as the December 11, 2016, murder of Jose Morales, whom FELTON shot in the head. FELTON was also found guilty of conspiring to distribute crack cocaine, heroin, cocaine, and marijuana, and related firearms offenses. FELTON was convicted following a one-week trial before U.S. District Judge William H. Pauley III.
U.S. Attorney Geoffrey S. Berman said: “James Felton brutally executed two men on the streets of the Bronx as part of his efforts to control the drug trade in his community. Now Felton stands convicted of his crimes. We thank our partners at Homeland Security Investigations and the New York City Police Department for their extraordinary work on this case.”
According to the allegations in the Indictment and the evidence presented in court during the trial:
Between 2010 and 2017, FELTON was a member of a long-running narcotics conspiracy and criminal enterprise centered around 240 East 175th Street in the Bronx, New York. On June 11, 2016, at the corner of East 175th Street and Monroe Avenue in the Bronx, FELTON shot Marvin Harris 13 times, killing him, after Harris insulted FELTON and challenged FELTON’s status within the drug territory. Six months later, at the corner of East 175th Street and Weeks Avenue, one block away from the scene of the Harris murder, FELTON shot rival drug dealer Edwin Romero four times, then shot Jose Morales in the head, killing him.
FELTON also committed other firearms offenses in connection with his membership in the drug conspiracy and criminal enterprise.
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FELTON, 50, of the Bronx, was convicted of conspiring to distribute at least 280 grams of crack cocaine and quantities of heroin, cocaine, and marijuana; two counts of murder through use of a firearm; two counts of murder while engaged in a narcotics conspiracy; two counts of murder in aid of racketeering; using, carrying, possessing, brandishing, and discharging firearms in relation to a drug trafficking crime, on occasions other than the Harris and Morales murders; and four counts of possessing a firearm or ammunition after sustaining a felony conviction. FELTON faces a mandatory minimum sentence of life imprisonment plus an additional mandatory minimum sentence of 75 years in prison, which must run consecutively to any other term of imprisonment imposed.
FELTON is scheduled to be sentenced before Judge Pauley on October 4, 2019.
Mr. Berman praised the outstanding investigative work of the Department of Homeland Security, Homeland Security Investigations, and the New York City Police Department.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Frank Balsamello, Matthew Hellman, and Anden Chow are in charge of the prosecution.
Illegal Alien Who Used Another Person’s Social Security Number Sentenced to PrisonRead the Press Release
A man who used another person’s Social Security number to get a job was sentenced today to two months in federal prison.
Efrain Alvarez-Victoriano, age 44, a citizen of Mexico illegally present in the United States and residing in Waterloo, Iowa, received the prison term after an April 12, 2019, guilty plea to one count of misuse of a social security number.
At the guilty plea, Alvarez-Victoriano admitted that on September 11, 2012, he used someone else’s name and social security number on employment forms and state and federal tax forms when applying for work in Waukon, Iowa. Alvarez-Victoriano was convicted in 2016 of possession of methamphetamine and introducing a controlled substance into a jail and placed on probation. Alvarez-Victoriano’s whereabouts were unknown to immigration officials until his arrest and sentencing in February 2019 for violating his state probation.
Alvarez-Victoriano was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Alvarez-Victoriano was sentenced to two months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Alvarez-Victoriano is being held in the United States Marshal’s custody until he can be returned to state prison where he is serving a five-year sentence on an Iowa drug felony conviction.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-2003. Follow us on Twitter @USAO_NDIA.
Honduran National Sentenced for Illegal Re-entryRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that FAUSTO FIGUEROA-MATUTE, age 30, a native of Honduras, was sentenced yesterday after previously pleading guilty to a one-count indictment for illegal reentry of a removed alien.
United States District Court Judge Jay C. Zainey sentenced FIGUEROA-MATUTE to time served, followed by 1 year of supervised release, and a $100 special assessment fee. The defendant will be surrendered to the custody of Immigration and Customs Enforcement for removal proceedings.
According to court documents, FIGUEROA-MATUTE was previously removed from the United States on October 31, 2011. He was later found in the Eastern District of Louisiana on December 23, 2017, and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
U.S. Attorney Strasser praised the work of Customs and Border Protection in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
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Hartford Man Charged with Producing and Distributing Child PornographyRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that a federal grand jury in Hartford returned an indictment today charging RONALD DANIEL, 49, of Hartford, with two counts of production of child pornography and one count of distribution of child pornography.
The indictment alleges that, between February 2018 and December 2018, Daniel produced and distributed child pornography.
The charge of production of child pornography carries a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of 30 years on each count. Distribution of child pornography carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Daniel has been detained since his arrest on related state charges on June 10, 2019.
This matter is being investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the Connecticut State Police and the Vernon Police Department. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
Harrison County man guilty of drug and firearms chargesRead the Press Release
ELKINS, WEST VIRGINIA – After a two-day trial, Robert Michael Junkins, of Clarksburg, West Virginia, was found guilty of drug and firearms charges, United States Attorney Bill Powell announced.
A jury deliberated for less than one hour before finding Junkins, age 50, of two counts of “Possession with Intent to Distribute Methamphetamine,” one count of “Possession of a Firearm During and in Relation to a Drug Offense,” and two counts of “Unlawful Possession of a Firearm.”
Junkins had methamphetamine in his possession on three separate occasions. Having been convicted of a felony drug offense, Junkins also illegally had several firearms and ammunition. The crimes occurred in August and September 2017 and November 2018 in Harrison County.
Junkins faces up to 20 years incarceration and a fine of up to $1,000,000 for each the possession of methamphetamine counts, not less than five years and up to 40 years incarceration and fine of up to $250,000 for the firearm possession during a drug offense count, and up to 10 years incarceration and a fine of up to $250,000 for each of the unlawful firearms possession counts. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Brandon S. Flower and Stephen D. Warner are prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Elkins Police Department investigated.
U.S. District Judge John Preston Bailey presided.
Gloucester County Man Charged with Using Fraudulent Invoices to Steal from Hospitals, Clinics and Doctors’ OfficesRead the Press Release
CAMDEN, N.J. – A Gloucester County, New Jersey, man was arrested today for allegedly mailing more than 10,000 fraudulent invoices for non-existent medical supplies to hospitals, clinics and doctor’s offices throughout the United States, U.S. Attorney Craig Carpenito announced.
Robert S. Armstrong, 48, of Turnersville, is charged by complaint with three counts of mail fraud. He is scheduled to appear this afternoon before U.S. Magistrate Judge Karen M. Williams in Camden federal court.
According to documents filed in this case:
Operating under the name of Pinnacle Medical Supplies, Armstrong prepared fraudulent invoices billing hospitals, clinics and doctors’ offices across the United States for medical supplies that the providers never ordered or received. The invoices included fraudulent shipping information and a fraudulent address.
Armstrong then contracted with a legitimate bulk mailing company to mail more than 10,000 invoices to medical providers. Each invoice included a payment envelope pre-addressed to Pinnacle Medical Supply at a mail box Armstrong had set up with commercial mail receiving agents.
In response to the phony invoices, at least 169 medical providers sent monies to Pinnacle Medical Supply. Armstrong deposited those checks – totaling $43,248 – from the victim medical providers into a bank account he opened in the name of Pinnacle Medical Supply.
The charge of mail fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits to Armstrong or twice the gross losses to the victims of his offense.U.S. Attorney Carpenito credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge John Walker in Philadelphia, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Diana Carrig of the U.S. Attorney’s Office in Camden.
The charges and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Richard Coughlin Esq., Federal Public Defender, Camden
Four Aliens Indicted on Illegal Reentry Charges, Illegal and Unlawful Alien in Possession of Firearms, and Visa FraudRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned indictments charging MARCELINO CARMONA-TORRES, age 28, of Mexico, and CESAR RUIZ-TOSTA, age 40, of Honduras, with illegal reentry of a deported alien.
Additionally, the grand jury returned an indictment charging ERIK ZARATE-GARCIA, age 45, of Mexico, with illegal and unlawful alien in possession of firearms, and ESTUARDO CAMEY-GONZALEZ, age 49, of Guatemala, with illegal and unlawful alien in possession of a firearm and visa fraud.
If convicted of illegal reentry of a deported alien, CARMONA-TORRES previously deported and found in Wake County, would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
RUIZ-TOSTA, previously deported twice and found in Wake County, is alleged to have been previously deported subsequent to a felony conviction, illegal re-reentry in the Western District of Texas. Therefore, if convicted, would face a maximum imprisonment term of 10 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of illegal alien in possession of firearms, CAMEY-GONZALEZ, found in Nash County, and ZARATE-GARCIA, found in Cumberland County, would face maximum penalties of 10 years imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment. Additionally, if found guilty of visa fraud, CAMEY-GONZALEZ would face maximum penalties of 20 years imprisonment, a $500,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by ICE’s Enforcement and Removal Operations and Homeland Security Investigations.
Former Police Officer Sentenced to Prison for Using Unreasonable ForceRead the Press Release
COLUMBUS, Ohio – A former Franklin Township police officer was sentenced in U.S. District Court today for using excessive force as a law enforcement officer.
Robert Wells, 49, of Pataskala, Ohio, was sentenced to 12 months and one day in prison for one count of deprivation of rights under color of law. Wells was also sentenced to three years of supervised release.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Todd A. Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and Franklin County Prosecutor Ron O’Brien announced the sentence imposed by U.S. District Judge James L Graham.
Wells was charged by indictment in September 2018. According to the charging document, on May 1, 2018, while acting in his then official capacity as a Franklin County Township police officer, Wells kicked an individual in the head while the victim was lying handcuffed on the ground. This deprived the victim of his Constitutional right to be free from the use of unreasonable force by a law enforcement officer and resulted in bodily injury to the victim.
Additionally, Wells then made false and misleading statements in his report relating to the arrest of the victim in order to cover up the excessive force and create a false understanding of the circumstances surrounding the arrest and injury.
Wells pleaded guilty in December 2018.
“This result reflects the determination of the United States that the willful use of excessive force under color of state law not only won’t be tolerated in the Southern District of Ohio, it will be punished,” said U.S. Attorney Glassman. “The defendant’s conviction and sentence of imprisonment vindicates the interests of justice, including vindicating police officers, who have among the most dangerous and difficult and important jobs in society today. The defendant rightfully apologized in court today for tarnishing their badge.”
U.S. Attorney Glassman commended the investigation of this case by the FBI. The case is being prosecuted by Criminal Chief Kenneth L. Parker and Franklin County Prosecutor Ron O’Brien, who has been designated as a Special Assistant United States Attorney.
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Former Kingsmen Motorcycle Club Member Sentenced for RICO ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - James P. Kennedy, Jr. today that announced today that Sean McIndoo, who was convicted of RICO conspiracy, was sentenced to serve 41 months in prison by U.S. District Court Judge Elizabeth A. Wolford.
Assistant U.S. Attorneys Joseph M. Tripi and Brendan T. Cullinane, who handled the case, stated that the defendant was a member of the Kingsmen Motorcycle Club (KMC), a criminal organization which engaged in such crimes as distribution of controlled substances, maintaining premises for use and distribution of controlled substances, possession, use and sale of firearms, sales of untaxed cigarettes, and promoting prostitution. The KMC sought to preserve and protect their power, territory, and reputation through intimidation, violence, threats of violence, assaults, attempted murder and murders, and was involved in placing victims, potential victims, potential witnesses, and others in fear of the enterprise, its members, and associates, through violence and threats of violence. The defendant admitted that he possessed a firearm in furtherance of a drug trafficking crime.
McIndoo also admitted that on August 3, 2013, the defendant and other KMC members conducted a drive-by shooting targeting former KMC Springville Chapter members. On that date, the defendant and the other KMC members, from a van, fired a weapon twice; one bullet struck a vehicle parked near one of the targeted victims.
A total of 20 defendants were charged and convicted in this case, including KMC National President David Pirk and Andre Jenkins, who were each sentenced to serve multiple terms of life in prison.
Today’s sentencing is the culmination of an investigation led by the FBI’s Safe Streets Task Force. Assisting in the investigation were the FBI Knoxville, Tennessee and Jacksonville, Florida Field Offices; Homeland Security Investigations; the North Tonawanda Police Department; the Niagara County Sheriff’s Office; the Erie County Sheriff’s Office; the Buffalo Police Department; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the New York State Police; the Olean Police Department; the Lancaster Police Department; the Amherst Police Department; the Town of Tonawanda Police Department; the Niagara Frontier Transportation Authority Police; the Cattaraugus County Sheriff’s Department; and, the Hamburg Police Department.
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Former Finance Director of Greek Orthodox Archdiocese of America Pleads Guilty to EmbezzlementRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Philip R. Bartlett, the Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), announced that GEORGE PAPADAKOS, the former Director of Finance of the Greek Orthodox Archdiocese of America (“GOAA”), pled guilty today to embezzling more than $60,000 of GOAA funds for personal expenses. PAPADAKOS surrendered this morning and pled guilty before U.S. Magistrate Judge Sarah Netburn. PAPADAKOS’s case is assigned to U.S. District Judge Richard M. Berman.
U.S. Attorney Geoffrey S. Berman stated: “As Director of Finance of the Greek Orthodox Church, George Papadakos was supposed to serve his Church, not himself. As he admitted today, he embezzled from the Church for nearly six years. For this sin, he faces the possibility of time in a federal prison.”
USPIS Inspector-in-Charge Philip R. Bartlett said: “Mr. Papadakos used his position at the Greek Orthodox Archdiocese of America to steal from the hand who employed him. Today’s plea is a reflection that Karma always comes from a higher authority and justice escapes no one.”
According to the allegations in the Information to which PAPADAKOS pled guilty, as well as statements made in court during the plea proceeding:
Between 2012 and September 2017, PAPADAKOS, the Director of Finance for GOAA, repeatedly embezzled from GOAA. He charged approximately $66,499 to a corporate credit card for personal expenses without GOAA’s authorization. These personal expenditures included charges for home improvements, clothing, a gym membership, iTunes, and medical bills. During the period of PAPADAKOS’s embezzlement, GOAA was enduring financial difficulties.
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PAPADAKOS, 52, of Westfield, New Jersey, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison. Under the terms of his plea agreement, PAPADAKOS has agreed to both forfeiture and restitution of $66,499.
The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
PAPADAKOS is scheduled to appear before Judge Berman on June 24, 2019, at 11:00 a.m., in part to set a schedule for PAPADAKOS’s sentencing proceeding.
Mr. Berman praised USPIS for its outstanding work on this case and noted that the investigation is ongoing.
This matter is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Michael D. Neff and Michael C. McGinnis are in charge of the prosecution.
Former Executive Assistant Charged with Embezzling over $3 MillionRead the Press Release
BOSTON – The former executive assistant of a Waltham-based technology company was arrested today and charged in connection with a fraud and embezzlement scheme that netted over $3 million.
Shivani Patel, 37, of Vineyard Haven, was charged by criminal complaint with one count of bank fraud. Patel was arrested this morning and will appear before U.S. Magistrate Judge Judith Dein this afternoon.
As alleged in the complaint, Patel served as an executive assistant to the chief financial officer of a Waltham-based technology company. Her duties included retrieving incoming mail containing customer checks made payable to her employer, recording the checks into the payment system, and depositing the checks into her employer’s bank account.
From at least February 2012 through July 2017, Patel stole funds from her then employer for her personal use. Specifically, in February 2012, Patel created a company with a name nearly identical to that of her then employer — i.e., using her employer’s name but just adding an “s” to the end — and opened a business banking account in the sham company’s name. Thereafter, Patel allegedly began taking customer checks payable to her employer out of the mail, depositing those checks into the sham company’s bank account, and concealing her embezzlement by making false entries in her employer’s billing system. In total, Patel embezzled approximately $3,076,369 from her former employer.
The charge of bank fraud provides for a sentence of no greater than 30 years in prison, five years of supervised release, a fine of $1 million, restitution and forfeiture. 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; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorneys Justin D. O’Connell of Lelling’s Securities and Financial Fraud Unit is prosecuting the case.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a doubt in a court of law.
Former Corrections Counselor Pleads Guilty to Accepting Bribes from Federal PrisonersRead the Press Release
Natchez, Miss. – Kellie Fuqua, 57, of Roxie, Mississippi, and a former corrections counselor at the Adams County Correctional Center, pled guilty today before Senior U.S. District Judge David Bramlette III to accepting bribes from federal prisoners in exchange for introducing contraband into the facility, announced U.S. Attorney Mike Hurst and James Boyersmith, Special Agent in Charge of the Department of Justice Office of the Inspector General Miami Field Office.
Fuqua was charged in a one-count Criminal Information with being a public official receiving money in exchange for providing contraband to federal prisoners.
Fuqua is scheduled to be sentenced by Judge Bramlette on October 1, 2019, at 2:00 p.m. in Natchez. She faces a maximum sentence of 15 years in prison and a $250,000 fine.
This case was investigated by the Department of Justice Office of Inspector General, and is being prosecuted by Assistant United States Attorney Dave Fulcher.
Former CEO of Alaska-Based Fiber Optic Cable Company Sentenced to 5 Years in Prison for Defrauding Investors of More Than $270 MillionRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that ELIZABETH ANN PIERCE, the former chief executive officer (“CEO”) of Quintillion, a telecommunications company in Alaska, was sentenced today in Manhattan federal court to 60 months in prison for defrauding investors in New York of more than $270 million during her time as CEO. PIERCE previously pled guilty before U.S. District Judge Edgardo Ramos, who imposed today’s sentence.
U.S. Attorney Geoffrey S. Berman said: “Elizabeth Ann Pierce, the then-CEO of Quintillion, placed her ambition above the law. In order to raise over $270 million to build a fiber optic cable system in northern Alaska, she repeatedly lied to her investors and forged the signatures of her customers’ executives on fake revenue contracts. When her scheme started to unravel, she tried to delay exposure with yet more lies and forged documents. She will now serve five years in prison for her crime.”
According to the Complaint, the Indictment, statements made in court, and publicly available documents:
Until July 2017, PIERCE was the chief executive officer of Quintillion, a telecommunications company based in Anchorage, Alaska, that built, operates, and markets a high-speed fiber optic cable system (the “Quintillion System”). The Quintillion System consists of three segments: a subsea segment that spans the Alaskan Arctic, a terrestrial segment that runs north to south along the Dalton Highway, and a land-based network of fibers that connects the subsea and terrestrial segments. The Quintillion System is connected to the lower 48 states through other existing networks.
Between May 2015 and July 2017, PIERCE engaged in a scheme to induce two New York-based investment companies to provide more than $270 million to construct the Quintillion System by providing them with eight forged broadband capacity sales contracts and related order forms under which Quintillion would obtain guaranteed revenue once the Quintillion System was built (the “Fake Revenue Agreements”). Under the Fake Revenue Agreements, four telecommunications services companies appeared to have made binding commitments to purchase specific wholesale quantities of capacity from Quintillion at specified prices. The cumulative value of the Fake Revenue Agreements was approximately $1 billion over the life of the Fake Revenue Agreements. In reality, the Fake Revenue Agreements were completely worthless because PIERCE had forged the counterparties’ signatures.
Certain of the Fake Revenue Agreements never existed at all, while others were falsified versions of genuine revenue agreements. PIERCE fabricated the terms of the false versions of the agreements to make them more favorable to Quintillion and, therefore, more appealing to investors than the genuine agreements. For example, under one of the Fake Revenue Agreements, the customer purportedly agreed to buy from Quintillion increasing quantities of gigabits per second of capacity over a period of 20 years. That agreement, if genuine, would have assured Quintillion hundreds of millions of dollars in future revenue. In reality, negotiations over that deal had ended unsuccessfully, a fact that PIERCE never disclosed to the investors. Under another Fake Revenue Agreement, the customer purportedly agreed to buy a fixed, predetermined amount of capacity from Quintillion regardless of subsequent market conditions. In truth, that customer was not obligated to buy any capacity.
Over the course of the scheme, PIERCE tried to cover up her fraud, by continuing to negotiate with the telecommunications companies in hopes of reaching agreements identical to the ones she forged. Her efforts were mostly unsuccessful. PIERCE completely failed to secure any revenue contract with one of those telecommunications companies, and the agreements she reached with the other three companies contained less favorable terms for Quintillion than the Fake Revenue Agreements, such as a smaller mandatory capacity purchase commitment, or no commitment at all. PIERCE hid these genuine, but inferior, contracts from the investment companies and her own staff. When Quintillion and the investment companies ultimately discovered the fraud in mid-2017, they learned that the real contracts PIERCE actually negotiated would generate only a fraction of the anticipated guaranteed revenue of the Fake Revenue Agreements she forged.
As part of PIERCE’s overall scheme, she also swindled two individual investors (together, the “Individual Victims”) out of a total of $365,000. PIERCE led these individuals to believe that they would acquire ownership interests in Quintillion when, in fact, she used half of one victim’s money and all of the other victim’s investment for her own personal benefit. These individuals have received no shares and none of their money back from PIERCE.
After the terrestrial system was built, PIERCE attempted to prevent the discovery of the Fake Revenue Agreements by accelerating the timing of incoming payments under certain genuine agreements to make those payments appear to be based on the Fake Revenue Agreements. PIERCE also sought to prevent Quintillion from invoicing one of the customers that had no real contract with Quintillion by fabricating email correspondence that gave the impression she was terminating a contractual relationship, when in fact no such relationship existed. PIERCE’s scheme started to unravel when another customer disputed invoices that it received from Quintillion pursuant to one of the Fake Revenue Agreements. Shortly thereafter, in the midst of Quintillion’s internal investigation, PIERCE abruptly resigned. Quintillion self-reported PIERCE’s conduct to the Department of Justice.
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In addition to her term of imprisonment, PIERCE, age 55, now of Austin, Texas, was sentenced to three years of supervised release, and was ordered to forfeit $896,698.00 and all of her interests in Quintillion and a property in Texas. PIERCE will also be subject to a restitution order to her victims to be entered at a later date.
Mr. Berman praised the outstanding work of the Federal Bureau of Investigation.
This case is prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Sarah Lai and Vladislav Vainberg are in charge of the prosecution.
Former Bank of America Employee Sentenced for His Role in Drug Conspiracy Linked to A Mexican CartelRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that Presiliano Garcia, 33, who was convicted of misprision of a felony, was sentenced to three years probation by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Michael J. Adler, who handled the case, stated that between 2012 and March, 2016, the defendant, while working as a personal banker at Bank of America, opened approximately 36 bank accounts that were utilized by co-defendants Jose Manuel Lua-Guizar, Gerardo Ballardo, Enrique Munoz, Max Riestra, Bryant Hudson, and others, to structure deposits to funnel money from places around the United States, including Buffalo, to accounts based in California. A total of $8,359,223, composed of approximately 1,092 cash-in deposits, mostly structured between $8,000 and $9,990 and made in 15 different states, were funneled into these accounts opened by Garcia.
Approximately 205 suspect customers were identified by Bank of America as potentially linked to the defendant. Many of the suspect customers had similar naming conventions or even the same name with slight variations in spelling, last name orientation, date of birth, social security number, or domicile. Garcia knew that a structuring felony was being committed by these individuals but did not file any suspicious activity reports relating to these transactions or notify federal law enforcement of the structuring activity in order to conceal the activities of the co-defendants.
Garcia is one of seven defendants involved in an illegal narcotics operation stretching from Sinaloa, Mexico to Western New York. Law enforcement officers began investigating a sophisticated drug trafficking organization with ties to a Mexican drug cartel operating out of Los Angeles, California area in 2014. The organization shipped drug packages to various states including New York, New Jersey, Illinois, and Colorado.
To date, all seven defendants have been convicted in this case. Six of the seven defendants, including Presiliano Garcia, have been sentenced, with sentences ranging from 216 months to 33 months.
Today’s sentencing is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; Homeland Security Investigations, under the direction of Special Agent in Charge Kevin Kelly; and the Internal Revenue Service, Criminal Investigation Division, under the direction of Jonathan D. Larsen, Special Agent- in-Charge, New York Field Office. Additional assistance was provided by ICE-HSI in Los Angeles, California, and Bank of America.
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Former Bailiff Sentenced in Drug ConspiracyRead the Press Release
McALLEN, Texas – A 53-year-old former bailiff with the Hidalgo County Court at Law #6 has been ordered to federal prison for his involvement in a drug trafficking conspiracy, announced U.S. Attorney Ryan K. Patrick.
Oscar De La Cruz, of Pharr, pleaded guilty Jan. 4, 2019.
Today, U.S. District Judge Micaela Alvarez sentenced De La Cruz to a 60-month term of imprisonment to be immediately followed by three years of supervised release. In pronouncing the sentence, Judge Alvarez noted his outward appearance as a God-fearing man served as a façade for a different persona - a drug trafficker. She also stated that his abuse of authority saddened the court considering many others make great sacrifices to obtain positions of public trust to better their communities. De La Cruz, however, used it to line his pockets.
From 2016 through 2018, De La Cruz obtained law enforcement sensitive documents not generally available for the public and generated fraudulent search warrants for members of a drug trafficking organization. The warrants were ultimately given to the sources of supply to make it appear law enforcement had seized the controlled substances. The drug traffickers could then retain and steal the controlled substance from the source of supply for further distribution themselves.
Specifically, in late 2016, De La Cruz generated a fraudulent federal search warrant and forged the signature of a judge to document the fictitious seizure of cocaine. Later, he generated two more warrants documenting the seizure of a total of 36 kilograms of cocaine at addresses in Edcouch and near Austin. These search warrants allowed the theft of approximately 45 kilograms of cocaine for further distribution.
In addition to providing fraudulent warrants, De La Cruz conducted thousands of PACER queries, a database of federal court filings. He also used his position as a county court bailiff in order to access documents through Odyssey, a database of state court filings in Hidalgo County, to provide records and information to drug traffickers not available to the general public.
Several members of the drug trafficking conspiracy that De La Cruz assisted also regularly engaged in home invasions and carjackings for the purpose of stealing controlled substances.
De La Cruz was permitted to remain on bond and surrender to a U.S. Bureau of Prison facility to be determined at a later date.
The FBI and Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorneys Roberto Lopez Jr. and K. Alejandra Andrade are prosecuting the case.
Following Tragic Shooting Death of Jones County Toddler, U.S. Attorney, Sheriff Announce Free Gun Locks for CitizensRead the Press Release
MACON – Hundreds of free firearm locking devices are available for citizens, announced Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia and Jones County Sheriff R.N. “Butch” Reece. U.S. Attorney Peeler and Sheriff Reese made the joint announcement Wednesday, a week after a Jones County two-year-old was accidentally shot to death by his five-year-old sibling. The firearm used was loaded and left unattended inside the home when the children began to play with the gun and it was fired. Sheriff Reese will have 100 free gun locks available for citizens to pick up at the Jones County Sheriff’s Office beginning today, Wednesday, June 19.
“This tragic accident serves as a reminder for all gun owners to make it a practice to lock up a firearm, and potentially save a child from injury or death,” said Charlie Peeler, the U.S. Attorney. “Free gun locks are available across the Middle District. If you need one, please pick one up at one of the distribution sites. I am grateful for our law enforcement partners who have agreed to distribute the locking devices, and help protect our children.”
“We promote responsible gun ownership in Jones County. It only takes a moment to prevent a lifetime of pain and suffering at the loss of a family member. Gunlocks save lives,” said Jones County Sheriff Butch Reece.
Citizens can pick up a free gun lock at the main offices of the following law enforcement agencies across the Middle District, during their normal business hours:
- Jones County Sheriff’s Office, 123 Holmes Hawkins Dr., Gray, GA 31032
- Bibb County Sheriff’s Office, Sheriff’s South Substation (next to Texas Barbecue Grill), 5797 Houston Rd., Macon, GA 31216
- Muscogee County Sheriff’s Office, Government Center, 100 10th Ave., 4th Floor, Columbus, GA 31902
- Dougherty County Sheriff’s Office (two locations, locks available Friday, June 21, 2019), Dougherty County Jail Facility, 1302 Evelyn Ave., Albany, GA 31701 or Dougherty County Sheriff’s Office, 225 Pine Ave., Albany, GA 31701
This initiative is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.
The U.S. Attorney’s Office for the Middle District of Georgia received the firearm safety kits from Project ChildSafe. Since 1999, Project ChildSafe has partnered with more than 15,000 law enforcement agencies to distribute more than 37 million firearm safety kits nationwide. You can learn more about Project ChildSafe and the National Shooting Sports Foundation by visiting www.projectchildsafe.org.
Questions concerning this case can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Florida Men Indicted for Wire Fraud ConspiracyRead the Press Release
BOSTON – Two Florida men were indicted yesterday in federal court in Boston in connection with the fraudulent abuse of the U.S. Postal Service’s (USPS) Informed Delivery electronic notification system.
Fred Alcius and Lucson Appolon, both 34 and of Lauderhill, Fla., were each indicted on one count of conspiracy to commit wire fraud. Alcius was also charged with two counts of aggravated identity theft and Appolon was charged with one count of aggravated identity theft. The defendants and their co-conspirators, Peter Belony and Kevens Louis were previously charged by complaint on April 9, 2019. Appolon was arrested on April 16, 2019, and Alcius remains a fugitive.
Informed Delivery is a free electronic notification service provided by the USPS that gives residential and P.O. Box customers the ability to digitally preview their incoming mail and manage their packages.
According to the indictment, the defendants accessed victims’ personal identifying information, including names, Social Security numbers, dates of birth, and addresses on the “dark web” and then used the information to open credit cards in the victims’ names. The defendants then subscribed to Informed Delivery using the victims’ personal identifying information and a fraudulent email address created to track the delivery of credit cards to the victims’ residential mailboxes. The defendants subsequently intercepted the credit cards at the victims’ mailboxes before the victims could receive them and used those credit cards at ATMs and to purchase gift cards and other items for resale at Apple and Walmart, among other retail establishments. The defendants traveled to states across the East Coast in furtherance of the fraud, including Maine and Massachusetts.
On June 14, 2019, Belony pleaded guilty to conspiracy to commit wire fraud. He is scheduled to be sentenced on Sept. 19, 2019. Louis has pleaded not guilty and is awaiting trial.
The charge of conspiracy to commit wire fraud carries a sentence of no greater than 20 years in prison, up to three years of supervised release, and a fine of up to $250,000. The charge of aggravated identity theft carries a mandatory minimum sentence of two years in prison, to be served consecutive to any other sentence imposed, one year of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. Assistant U.S. Attorney Mackenzie A. Queenin of Lelling’s Cybercrime Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Florida Man Sentenced for Distributing Obscene ImagesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Joseph Pachetti, 35, of Eustis, Florida, who was convicted of transportation of obscene material in commerce, was sentenced to four years probation, to include one year home detention, by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Stephanie Lamarque, who handled the case, stated that in November 2016, the defendant, living in Niagara Falls, NY, distributed obscene images to an undercover FBI agent via a peer to peer network. Investigators executed a search warrant at Pachetti’s apartment and seized various electronics. Subsequent forensic examination revealed thousands of images of child pornography and child erotica.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, Buffalo Division, under the direction of Special Agent-in-Charge Gary Loeffert.
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Federal Jury Convicts Florence Man on Gun and Drug ChargesRead the Press Release
Florence, South Carolina ---- United States Attorney Sherri A. Lydon announced today that a federal jury convicted Gregory Bernard Gibson, 44, of Florence, of being a felon in possession of a firearm and ammunition and possession with intent to distribute controlled substances. The 12-person jury unanimously found Gibson guilty on two of the three counts charged after a 1.5-day trial and a short deliberation.
The evidence presented at trial showed that a deputy from the Florence County Sheriff’s Office was patrolling in Florence when Gibson pulled out in front of him, failing to yield the right-of-way. The deputy initiated a stop on Gibson’s car. Gibson continued to drive for a short distance, making two turns before he stopped. As Gibson continued to drive, the deputy could see Gibson making furtive movements as if he were hiding something. After Gibson stopped, the deputy cautiously approached Gibson’s driver side window and proceeded with the traffic stop. While standing next to Gibson’s driver side window, the deputy smelled marijuana. Another deputy arrived on scene, and they searched the car and found a loaded firearm in the center console. Directly behind the center console, they found a backpack containing cocaine, crack cocaine, marijuana, a cutting agent, multiple plastic baggies, and a digital scale with white and green residue. Inside a void underneath the cup holder area, they found a large piece of crack cocaine and 300 tablets of methamphetamine. Federal law prohibits Gibson from possessing a firearm based on a prior federal conviction.
United States District Judge Mary G. Lewis of Columbia presided over the trial and will sentence Gibson after receiving and reviewing a presentence report prepared by the United States Probation Office. Gibson faces 15 years to life in federal prison.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Florence County Sheriff’s Office Proactive Community Enforcement (P.A.C.E.) Team. It was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. Assistant United States Attorneys Lauren Hummel and Everett McMillian of the Florence office prosecuted the case.
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Federal Judge Sentences Sex Trafficker to Life in PrisonRead the Press Release
CHICAGO — A federal judge has sentenced a man to life in prison for forcing women and children to engage in commercial sex acts in Chicago and the suburbs.
SAMUEL NICHOLS led a sex trafficking operation that violently forced at least 12 women and children into the commercial sex trade. Some of the minors were as young as 13 years old when Nichols trafficked them. Nichols kept the money earned by his victims, often taking in $1,000 per day. He openly flaunted his role as a trafficker, flashing money in Instagram posts, having “#1 Pimp” tattooed on his stomach, and using the trafficking proceeds to fund a Chicago-area rap group that posted music videos on websites such as YouTube.
Nichols, 34, formerly of Chicago, has been in law enforcement custody since October 2014. A federal jury in Chicago last year convicted Nichols on multiple counts of sex trafficking. U.S. District Judge Virginia M. Kendall on Monday sentenced Nichols to life in prison.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI. The Carol Stream Police Department provided valuable assistance.
“The depth and breadth of defendant’s crimes are horrific,” Assistant U.S. Attorneys Sarah Streicker, Michelle Petersen and Elizabeth Pozolo argued in the government’s sentencing memorandum. “While these women and children had sex with dozens of strangers, defendant took the money they earned and used it to fund his own extravagant lifestyle.”
A co-defendant, CHARLES FEARS, 26, of Chicago, pleaded guilty last year to conspiracy and sex trafficking charges. Fears is scheduled to be sentenced by Judge Kendall on July 16, 2019.
Evidence in the case revealed that Nichols and Fears carried firearms and would often hit, slap and choke the victims who worked for them, including one incident in which Nichols beat a female so badly she had to be hospitalized. The pair also supplied the victims with drugs and alcohol while coercing them to participate in the commercial sex acts.
If you believe you are a victim of sexual exploitation, you are encouraged to contact the National Center for Missing and Exploited Children by logging on to www.missingkids.com/home or by calling 1-800-843-5678. The service is available 24 hours a day, seven days a week.
Federal Grand Jury Returns Two Indictments Charging Disbarred Memphis Attorney with a total of Sixty-Seven Felony ViolationsRead the Press Release
Memphis, TN – D. Michael Dunavant, United States Attorney for the Western District of Tennessee, announced today that a federal grand jury has returned two indictments charging disbarred Memphis attorney Keith L. Dobbs, 39, with a total of sixty-seven federal felony violations. In addition, one indictment seeks the forfeiture of at least $406,533.00 in criminal proceeds.
According to the two indictments, Dobbs misappropriated funds from 26 victims who received veteran’s benefits and nine Social Security recipients. Dobbs acted as a fiduciary for these victims because they were unable to manage their benefits due to physical or mental disabilities. The indictments were the result of a joint investigation conducted by the Office of Inspector General for the Department of Veterans Affairs and the Office of Inspector General for the Social Security Administration.
The VA Indictment
The first indictment, which was filed under seal earlier this year, charges Dobbs with 26 counts of mail fraud in violation of Title 18, United States Code, § 1341. This statute makes it a crime to utilize the U.S. Mail to execute a scheme to defraud people of money or property. Each violation of the statute is punishable by up to 20 years imprisonment, a fine of up to $250,000, and a term of supervised release of no more than three years. Supervised release is a period of time in which a defendant is subject to supervision by the U.S. Probation Office following his or her release from prison. Dobbs is charged in 22 counts of the indictment with violating Title 38, United States Code, § 6101. This statute makes it a crime for someone serving as a fiduciary to embezzle benefits a veteran receives from the Department of Veterans Affairs. Each violation of this statute is punishable by up to five years imprisonment, a fine of up to $250,000, and a term of supervised release of no more than three years.
According to the mail fraud indictment, Dobbs served as a paid fiduciary for several veterans who received benefits from the Department of Veterans Affairs ("the VA"). The indictment identifies 28 veterans for whom Dobbs served as the fiduciary. The VA manages programs that provide military veterans with pensions and disability benefits. When a veteran cannot manage his or her benefits due to "injury, disease, or infirmities of advanced age," the VA will appoint a "fiduciary" who is charged with managing the veteran’s benefits. An appointed fiduciary owes the VA and the beneficiary "the duties of good faith and candor." Under the regulations governing the VA’s fiduciary program, the fiduciary must use the VA benefits for the veteran’s care and protect the benefits from loss or diversion. The program’s regulations specifically provide that a fiduciary may not commingle the veteran’s funds with "the fiduciary’s own funds or the funds of any other beneficiary for whom the fiduciary has funds under management." The regulations require a fiduciary to file an annual accounting with the VA, and the accounting must include "copies of financial institution documents reflecting receipts, expenditures, and beginning and ending balances."
According to the mail fraud indictment, Dobbs used funds embezzled from the veterans’ accounts to pay his personal obligations, such as credit card bills and rent, and to purchase items, such as a BMW automobile. The indictment also notes that Dobbs would transfer money from the veterans’ accounts into accounts he controlled and use the transferred funds for his own benefit, and transfer funds from one veteran’s account to another veteran’s account to cover shortfalls. As part of the fraud scheme, Dobbs would alter bank statements to "disguise the true nature of certain transactions he conducted using the beneficiaries’ funds in their fiduciary accounts," and create documents such as "Certificate[s] as to Securities" and "Certificate[s] of Balance on Deposit and Authorization to Disclose Financial Records," that contained false statements. The indictment lists 26 separate mailings of false and altered documents to the VA’s Louisville Fiduciary Hub between June 3, 2014 and January 8, 2016.
The indictment also charges Dobbs with embezzling and misappropriating funds coming into his control as a VA fiduciary on 22 separate occasions between April 18, 2014 and July 13, 2015.
The Social Security Indictment
A second indictment recently returned by the federal grand jury charges Dobbs with 19 counts of converting the monthly Social Security benefit payments of nine benefit recipients in violation of Title 18, United States Code, § 408(a)(5). This statute makes it a crime for a person who is receiving Social Security benefits on behalf of another person to convert those benefits to their own use. As set forth in the indictment, Dobbs had access to the beneficiaries’ funds because he served as their representative payee. A violation of this statute is punishable by up to five years imprisonment, a fine of up to $250,000, and a term of supervised release of no more than three years.
The indictment explains the particulars of the Social Security Administration’s "representative payee" program. If the Commissioner of the Social Security Administration concludes that the interest of a beneficiary would be served by paying the
beneficiary’s Social Security benefits to another person, the commissioner may certify payment of the benefits to a third person. The commissioner will make such a certification when he or she determines that a benefit recipient is "legally incompetent or mentally incapable of managing benefit payments" or "physically incapable of managing or directing the management of his or her benefit payments." The Social Security Administration refers to the third person to whom the beneficiary’s Social Security benefits are paid as a representative payee.
A representative payee must use the benefits for "the use and benefit" of the beneficiary, and keep the beneficiary’s funds separate from the representative payee’s funds. Benefit payments will be considered to have been used for the "use and benefit of the beneficiary if they are used for the beneficiary’s "current maintenance."" By regulation, the term "current maintenance" includes "costs incurred to obtain[] food, clothing, shelter, medical care, and personal comfort items" for the beneficiary. A person applying to serve as a representative payee must participate in a face-to-face interview with a representative from the Social Security Administration and must affirm that he or she will "use all payments made to me/my organization as the representative payee for the [beneficiary’s] current needs or (if not currently needed) then for the [beneficiary’s] future needs."
Dobbs applied to the Social Security Administration to be the representative payee for nine beneficiaries, and was appointed representative payee for each of the nine victims. According to the indictment, Dobbs converted the nine victims’ Social Security benefits to his own use by drawing checks on their accounts made payable to him; transferring funds from their accounts into an account that he controlled; and by using the funds in the victims’ accounts to make purchases and pay bills. The conversions charged in the indictment all involved monthly benefit payments and took place between August 9, 2015 and December 9, 2015.
U.S. Attorney D. Michael Dunavant said: "This offender used his fiduciary positions of trust to victimize vulnerable and disabled veterans for his own selfish gain and unjust enrichment. Such fraudulent schemes are particularly harmful and offensive, and must be exposed. We thank the VA OIG and the SSA OIG for their outstanding investigative work, and we look forward to achieving justice for the victims in this disturbing case."
Kim R. Lampkins, Special Agent in Charge of the VA Office of Inspector General’s Mid- Atlantic Field Office said, "The VA OIG is committed to pursuing those who have done harm to our deserving veterans and bringing those individuals to justice. VA OIG will pursue fraud, waste, and abuse that negatively affects our nation’s heroes."
Rodregas Owens, Special Agent-in-Charge of the Social Security Administration, Office of the Inspector General, Atlanta Field Division, said, "We are committed to pursuing those who violate the public trust by misusing funds while serving as representative payees for vulnerable Social Security beneficiaries. We will continue to uphold the integrity of Social Security’s programs, which are a lifeline for so many Americans and their families. I would like thank United States Attorney Michael Dunavant and his office for their support, and the Veterans Affairs, Office of the Inspector General for its partnership, in bringing this individual to justice."
This case was investigated by the U.S. Department of Veterans Affairs Office of Inspector General and the U.S. Social Security Administration Office of Inspector General.
Assistant U.S. Attorney Joe Murphy is prosecuting this case on behalf of the government.
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Effort Man Charged with Illegal Machinegun PossessionRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Tyler Lameo, age 27, of Effort, Pennsylvania, was charged on June 18, 2019, in a criminal information with the illegal possession of a machinegun.
According to United States Attorney David J. Freed, the information alleges that Lameo possessed a Glock 19 9mm bearing an auto sear from April 20, 2018 through December 18, 2018. The information also seeks forfeiture of several firearms, ammunition, and firearms components, including:
- Glock 19 9mm bearing an auto sear;
- Beretta Model ARX160 bearing a suppressor;
- Iver Johnson Model Champion 12-gauge shotgun bearing a shortened barrel;
- Chiappa Firearms Model SR-556 9mm bearing a shortened barrel;
- Sten 9mm bearing a shortened barrel;
- Partial bump stock; and
- Miscellaneous suppressor components.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Phillip J. Caraballo is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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District Man Sentenced to Four Years for Stealing Senate Information and Illegally Posting Restricted Information of U.S. Senators on WikipediaRead the Press Release
WASHINGTON – Jackson A. Cosko, 27, of Washington, D.C., was sentenced today to four years in prison for stealing Senate information and posting illegal restricted information of five U.S. Senators on the Wikipedia website.
The announcement was made by Alessio Evangelista, the Acting U.S. Attorney in this case, and Steven A. Sund, Chief of the U.S. Capitol Police.
Cosko, a former staff member of a United States Senator, pled guilty in April 2019, to five federal offenses: two counts of making public personal information; one count of computer fraud; one count of witness tampering, and one count of obstruction of justice, in the U.S. District Court for the District of Columbia. In addition to his sentence term, Cosko had to forfeit computers, cellphones, and other equipment used in the crimes, which was part of his plea agreement. He was sentenced by the Honorable Senior District Judge Thomas F. Hogan.
According to the government’s evidence, the U.S. Capitol Police began an investigation on Sept. 27, 2018, after it was determined that the Wikipedia pages of three U.S. Senators had been edited to include restricted personal information without their knowledge or permission. This information included home addresses and personal telephone numbers. These edits took place roughly contemporaneously with public – and highly publicized – Senate proceedings related to a nomination for the U.S. Supreme Court. On Oct. 1, 2018, similar information was posted on the Wikipedia pages of two additional Senators.
“Doxxing” is the act of gathering, by licit and illicit means, and posting on the Internet personal identifying information (“PII”) and other sensitive information about an individual.
Cosko admitted that he was angry about his termination in May 2018 from his employment as a computer systems administrator in the office of another U.S. Senator (described in court documents as Senator #1). As a result, from July 2018 to October 2018, he engaged in an extensive computer fraud and data theft scheme. Cosko admitted that he carried out the scheme by breaking into Senator # 1’s office on at least four occasions and accessing Senate-owned computers for the express purpose of stealing proprietary electronic information, including the personal contact information for numerous other Senators. He then published the contact information for five U.S. Senators (identified as Senators #2, 3, 4, 5, and 6) using Wikipedia and Twitter, with the intent to threaten and intimidate these five Senators and their families.
On the night of Oct. 2, 2018, according to the affidavit, a witness saw Cosko at a computer in Senator # 1’s office. The witness confronted Cosko, who left the office. Later that evening, according to the statement of offense, Cosko sent a threatening e-mail to the witness, titling it, “I own EVERYTHING” and warning that, “If you tell anyone I will leak it all.” Additionally, that evening Cosko attempted to delete electronic evidence from items including a laptop computer that he used to obtain and download the stolen data.
This case was investigated by the U.S. Capitol Police. It was prosecuted by Assistant U.S. Attorneys Demian S. Ahn, Tejpal S. Chawla, and Youli Lee. Assistance was provided by Paralegal Specialists Diane Brashears and Matthew Ruggierio and Victim/Witness Advocate Yvonne Bryant, all of the U.S. Attorney’s Office for the District of Columbia.
Couple Sentenced for Fake Facebook Claims to Provide CitizenshipRead the Press Release
McALLEN, Texas – A Mexican man and his McAllen wife have been ordered to federal prison for their respective roles in a mail and wire fraud conspiracy, announced U.S. Attorney Ryan K. Patrick.
Francisco Santiago Rodriguez-Nunez aka Marcos Rodriguez, Roberto Garcia-Rodriguez and Mario Ortiz, 34, of Mexico, and his wife, Beatriz Adriana Rodriguez, 40, of McAllen, pleaded guilty Nov. 27, 2018, to conspiracy to commit fraud. Rodriguez-Nunez also admitted to impersonating a federal agent.
Today, U.S. District Judge Micaela Alvarez imposed a total 75-month sentence for Rodriguez-Nunez, while Rodriguez was ordered to serve 41 months to be immediately followed by three years of supervised release. Not a U.S. citizen, Rodriguez-Nunez is expected to face deportation proceedings following his sentence. The couple was further ordered to pay $174,010 in restitution. Rodriguez-Nunez and Rodriguez were also ordered to forfeit $68,900 and $74,200, respectively.
At the hearing, additional evidence was presented regarding the scheme indicating the identification and responses of at least 29 victims that claimed combined losses of more than $250,000. In handing down the sentence, the court noted the couple’s predatory actions by taking advantage of undocumented aliens, most of whom had no criminal history, that believed they were obtaining status legitimately by paying the defendants.
The court further acknowledged that several were merely looking for a means to obtain status to work, while others were paying exorbitant funds to have a method to be with their children. Judge Alvarez commented on the substantial financial hardship placed on most, if not all, of the victims. Some had taken loans they will never be able to pay back due to their limited income and resources.
Beginning in November 2015 and continuing through at least July 2018, Rodriguez-Nunez and Rodriguez created fraudulent postings on Facebook. They claimed to possess the ability to obtain, generate or provide individuals with immigration status, including citizenship, to remain in the United States or state driver’s licenses.
Numerous victims responding to the advertisement would communicate with Rodriguez-Nunez who claimed to be an employee or agent of the Social Security Administration, Texas Department of Motor Vehicles, Immigration and Naturalization Services, U.S. Citizenship and Immigration Services or the Department of Homeland Security.
Victims provided the couple with money orders sent through the mail or wire transfers through Moneygram and Ace Cash Express. After receiving the money, Rodriguez-Nunez and Rodriguez would claim issues arose with the processing of the immigration status or driver’s license and they required additional money orders or wire transfers.
If victims refused to pay or stopped paying, Rodriguez-Nunez would personally impersonate federal officials threatening the victims with arrests and deportation. He also caused automated messages to be sent with similar threats. In addition, Rodriguez-Nunez would also send lewd pictures of genitalia to his victims to taunt them for their losses.
In total, authorities believe there were more than 60 victims in at least 10 different states affected by the couple’s conduct. For each of the 29 victims located, each had losses of at least $500. One victim suffered a loss of $34,000.
Rodriguez-Nunez and Rodriguez received at least $174,010 as a result of their scheme.
The couple will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Postal Inspection Service and Immigration and Customs Enforcement’s Office of Professional Responsibility conducted the investigation. Assistant U.S. Attorney Roberto Lopez Jr. is prosecuting the case.
Convicted Felon Who Discharged a Gun Sentenced to a Decade in Federal PrisonRead the Press Release
A man who possessed and discharged a hand gun was sentenced today to ten years in federal prison.
Montecarlos Marteze Gant, age 36, from Chicago, Illinoi, received the prison term after a February 6, 2019, guilty plea to being a felon in possession of a firearm.
Evidence during the case established that in April 2018, Gant possessed a Smith and Wesson .380 caliber pistol with an obliterated serial number. Gant shot one round from the gun while involved in an incident with another individual. The following day, Gant attempted to sell the gun at a pawn shop in Dubuque, but was unable to because of the gun’s obliterated serial number. The next day, police responded to a call for service at a residence in Dubuque, and attempted to speak with Gant. Gant fled from officers, and eventually officers caught him and the pistol was recovered in his pocket, loaded with one round in the chamber.
Gant’s criminal history included felony convictions for aggravated vehicular hijacking with a firearm and possession of marijuana with intent to distribute. Gant had been released from prison less than four months before the events giving rise to his federal conviction.
Gant was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Gant was sentenced to 120 months’ imprisonment, the statutory maximum sentence. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
During the sentencing hearing, the Chief Judge Strand noted that in light of his criminal history, Gant “should not have been, frankly, within the same zip code of a firearm.”
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Gant is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Lisa C. Williams and investigated by the Bureau of Alcohol, Tobacco, and Firearms and the Dubuque Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-1019.
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Cocaine from the Ottley Post Office in St. Thomas Cocaine from the Ottley Post Office in St. ThomasRead the Press Release
St. Thomas, USVI – Kemo Riley, 42, appeared before U.S. Magistrate Judge Ruth Miller for preliminary and detention hearings after federal agents arrested him on Friday for conspiracy and possession with intent to distribute cocaine, United States Attorney Gretchen C.F. Shappert announced. Following the hearings, Judge Miller released Riley on a $5,000 bond with conditions requiring location monitoring and home confinement outside of work.
According to court documents, on May 28, 2019, U.S. Customs and Border Protection (CBP) officers in San Juan, PR seized a parcel with approximately 515.4 grams of cocaine concealed in cellophane candy bags. The parcel was destined for Dunkirk, New York, and had been mailed from the Ottley Post Office in St. Thomas that same day. The parcel also contained a greeting card and party plates, as well as a receipt reflecting the purchase of the same from Kmart in St. Thomas. The parcel was sent back to the sender.
Surveillance video obtained from the Ottley Post Office captured a black male wearing a white shirt, black jacket, and black hat mailing the parcel. The same man appeared to be captured on Kmart surveillance video approximately one hour earlier, purchasing the items found inside the parcel with the cocaine.
The parcel was made available for pick up by the sender on June 13, 2019. The next day, Riley drove an individual to the Ottley Post Office who presented the tracking number for the parcel while Riley waited for him outside in the car. Federal agents recognized Riley to be the same man captured on surveillance video purchasing the party supplies and mailing the parcel. During an interview with agents, Riley admitted that he had, in fact, purchased those items and mailed the parcel.
United States Attorney Shappert reminds the public that an indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
This case was investigated by U.S. Customs and Border Protection, Homeland Security Investigations and United States Postal Inspection Service, and is being prosecuted by Assistant United States Attorney Meredith J. Edwards.
Charleston Man Sentenced for Meth DistributionRead the Press Release
CHARLESTON, W.Va. – A Charleston man was sentenced today to 24 months in prison for distributing methamphetamine, announced United States Attorney Mike Stuart.
Charles Washington-Robinson, 35, admitted that on four occasions in 2016 and 2017, he sold methamphetamine to a confidential informant. Each of the sales took place at or near the Charleston Town Center Mall.
“Meth sales -- not the kind of retail business that anyone wants at a shopping mall,” said United States Attorney Mike Stuart. “Great work by Charleston Police Department and my team to get Washington-Robinson off of our streets and behind bars.”
Senior United States District Judge David Faber imposed the sentence. The investigation was conducted by the Special Enforcement Unit of the Charleston Police Department. Former Assistant United States Attorney Matt Davis and Assistant United States Attorney Andrew J. Tessman handled the prosecution.
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Capital Region Anti-Gang Initiative Reaches More Than 1,600 Fifth-GradersRead the Press Release
ALBANY, NEW YORK – United States Attorney Grant C. Jaquith concluded the 2019 LEADership Project today at the Thomas O’Brien Academy of Science and Technology in Albany with seven fifth-grade students who completed the project this year, and many leaders and representatives of the participating federal, state, and local law enforcement agencies. The LEADership Project, an anti-gang initiative, reaches fifth-grade students in the Albany, Schenectady, Troy, and Lansingburgh School Districts. The project began with the Albany School District in 2011 and has grown since then.
United States Attorney Grant C. Jaquith stated: “The LEADership Project is about investing in our children, for they are the ones to whom we will be passing the future of our republic and the rule of law on which it is grounded. It is an important opportunity to tell students that we want them to excel and believe that they can, and that they should view law enforcement as a friend and supporter in their quest for success. There is no substitute for law enforcement officials speaking directly to students about the dangers of gangs, the consequences of their conduct and the effects of their choices, and the importance of positive self-esteem in achieving their goals. Reaching fifth-graders is crucial because we know that middle school can be a difficult transition period for students, where the temptation to join gangs and engage in other criminal behavior sometimes first arises. I thank our law enforcement partners for generously donating their time to this important anti-crime effort; the superintendents, teachers, and staff who dedicate their lives to helping students learn and become their best; and the students whose participation is cause for great optimism.”
This year, 27 law enforcement agencies participated in the LEADership Project, providing 123 law enforcement officials who volunteered their time in fifth-grade classrooms. They taught in over 80 classrooms, reaching more than 1,600 students. The following agencies participated:
Federal agencies
U.S. Attorney’s Office
U.S. Marshals Service
Bureau of Alcohol, Tobacco, Firearms, and Explosives
Federal Bureau of Investigation
U.S. Probation and Pretrial Services
U.S. Department of Health & Human Services, Office of the Inspector General
Social Security Administration, Office of the Inspector General
Internal Revenue Service
Homeland Security Investigations
U.S. Customs & Border Protection
Drug Enforcement Administration
Transportation Security Administration
State Agencies
New York State Police
New York State Attorney General’s Office
New York State Department of Corrections and Community Supervision
Local Agencies
Albany Police Department
Schenectady Police Department
Albany County District Attorney’s Office
Schenectady County District Attorney’s Office
Rensselaer County District Attorney’s Office
Albany County Sheriff’s Office
Rensselaer County Sheriff’s Office
Schenectady County Probation Department
Rensselaer County Probation Department
Albany County Department of Probation
Schenectady County Sheriff’s Office
Schenectady County Public Defenders’ Office
Broome County Man Pleads Guilty to Possessing Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Jack Hiller, 55, of Port Crane, New York pled guilty today to possessing child pornography, announced United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his guilty plea, Hiller admitted that in February 2018 he used the Kik computer software application to receive sexually explicit images of children, some under 12-years of age. Hiller also admitted that he knowingly stored photos and videos of child pornography on one of his electronic devices.
Hiller will be sentenced on November 4, 2019, and faces up to 20 years in prison, a term of supervised release of at least five years and up to life, and a fine of up to $250,000.00. He will also be required to register as a sex offender. 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 is being investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Michael D. Gadarian.
This case is being prosecuted 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) and is designed to marshal 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.
Argentinian National Pleads Guilty to Attempting to Smuggle Night-Vision Rifle Scope Out of U.S.Read the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced today that Sergio Ruchtein, 51, a citizen of Argentina, pleaded guilty before U.S. District Court Judge Timothy J. Savage to the federal felony of attempting to export a defense article without a license.
At the plea hearing, the defendant admitted that in early 2019 he purchased online a Pulsar Trail XP 50 LRF Thermal Rifle Scope and attempted to smuggle the device back to his native Argentina. The rifle scope is designed to be mounted to a weapon and is capable of human-size detection at night from several hundred meters. This night vision scope is a defense article on the United States Munitions List and subject to the Department of State’s International Traffic in Arms Regulations. Accordingly, an export license is required before it is shipped or transported out of the United States.
“For good reasons, the United States monitors and regulates specialized arms equipment being exported from this country,” said U.S. Attorney McSwain. “In this case, a rifle scope designed to detect human beings under cover of darkness could pose a serious risk if it were to fall into the wrong hands. I want to thank our federal law enforcement partners for their quick work in investigating this case.”
“HSI prioritizes investigations of smugglers who circumvent laws in place to guard against the export of sensitive technologies and licensable commodities from the United States,” said Marlon Miller, Special Agent in Charge, HSI Philadelphia. “While the defendant attempted to export a night vision rifle scope to South America, there is no telling where or to whom this sensitive technology was ultimately destined.”
The case was investigated by Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Josh A. Davison.
Amherst Man Sentenced for Threatening A Local PhysicianRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Gary Drago, 59, of Amherst, NY, who was convicted of witness tampering and failure to file an income tax return, was sentenced by U.S. District Judge Lawrence J. Vilardo to serve 47 months in prison. The defendant was also ordered to pay $129,793 in restitution to the victim and $19,007 restitution to the Internal Revenue Service.
Assistant U.S. Attorney Joel L. Violanti, who handled the case, stated that on May 19, 2017, the Federal Bureau of Investigation received information from an individual (Victim) regarding threats, theft, and extortionate acts that the defendant made against the Victim and the Victim’s business, a medical practice. The Victim also advised the FBI that he had a meeting with the Amherst Police Department regarding these crimes the very next day. The FBI advised the Victim to meet with the Amherst Police Department. The Victim was going to meet with the Amherst Police and the FBI to tell them about how Drago previously extorted money from the Victim’s business by using threats of physical harm and threats to ruin the Victim’s reputation.
However, an employee of the Victim overheard the conversation with the FBI, and notified the defendant. Drago then arrived at the Victim’s place of business, and told the Victim’s patients that the Victim was done seeing patients that day. Drago then then physically took the Victim from his place of business and placed the Victim in his car. Once in the car, the defendant threatened the Victim with a pistol, and slapped the Victim, telling the Victim that he heard the Victim was talking with law enforcement. Drago continued to ask the Victim who he spoke to from law enforcement, and what the Victim told them. The Victim told the defendant that he spoke to the FBI and was going to meet with the Amherst Police the next day. While continuing to threaten the Victim, the defendant told the Victim to call the FBI and tell them that everything was okay, which the Victim did. Drago then let the Victim go home.
Later that same night, the defendant repeatedly called the Victim and left messages on his voice mail threatening the Victim, and reminding the Victim not to cooperate with the FBI, or go to the meeting with the Amherst Police the next day.
Between 2013 and May 20, 2017, the defendant worked at medical business located in Williamsville, NY. During that time, Drago entered into a contract for employment with the Victim/owner and was paid a salary through the payroll. However, the defendant eventually started taking additional money from the business in the form of cash, without providing any employment service in return. When confronted by the Victim about the money, Drago would threaten force or physical harm. Specifically, the defendant took a total of $129,792 without rendering employment services. When confronted by the Victim, Drago would berate and threaten physical harm or damage to the Victim’s reputation. As a result, the Victim was fearful, and was prevented from stopping the defendant from taking the unearned money.
In addition, during the course of his employment with the Victim, Drago received recordable income. Some of this income was derived from the defendant’s threats to the Victim, and was paid by the Victim to the defendant as extortion money. The defendant received this income through payroll check payments from the victim’s business, as well as cash payments from the Victim. However, Drago failed to file federal income tax returns. For the tax years 2013 through 2016, the defendant received $294,043 in income, resulting in a loss to the Internal Revenue service of $19,007.
The sentencing is the result of an investigation by the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent-in-Charge Gary Loeffert; the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge Jonathan D. Larsen, New York Field Office; the Lancaster Police Department, under the direction of Chief William J. Karn, Jr.; the Amherst Police Department, under the direction of Chief John Askey; the New York State Police, under the direction of Major Edward Kennedy; the Erie County Sheriff’s Office, under the direction of Timothy Howard; and the Erie County District Attorney’s Office, under the direction of John Flynn.
Alleged Cryptocurrency Fraudster Arrested in Thailand, Charged in Multi-Million Dollar Investment SchemeRead the Press Release
In a criminal complaint unsealed today, a citizen of Sweden and his company were charged with securities fraud, wire fraud and money laundering in a scheme to defraud potential investors.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney David L. Anderson for the Northern District of California and Special Agent in Charge Kelly R. Jackson of the IRS Criminal Investigation’s (IRS-CI) Washington, D.C. Field Office made the announcement.
In a complaint filed March 4, 2019, and unsealed today, Roger Nils-Jonas Karlsson and his company, Eastern Metal Securities (EMS), were charged with engaging in a scheme to defraud victims of more than $11 million.
According to the complaint, since September 2006, Karlsson allegedly used websites to communicate false representations to victims in a scheme to defraud potential investors. For example, one website, www.easternmetalsecurities.com, allegedly was registered to a fictitious person and advertised shares in a product called a “Pre Funded Reversed Pension Plan” (PFRPP). The complaint alleges Karlsson used the website to invite potential investors to purchase shares of the plan for $98 per share in exchange for an eventual payout of 1.15 kilograms of gold per share, even though as of Jan. 2, 2019, 1.15 kilograms of gold was worth more than $45,000. Karlsson also allegedly advised investors that, in the unlikely event that the gold payout did not happen, he guaranteed to return to them 97 percent of the amount they invested. According to the complaint, the government found no evidence of any accounts held by Karlsson that would allow him to pay off the investors. Instead, the complaint alleges, the funds provided by victims were transferred to Karlsson’s personal bank accounts and now appear to be tied up in real estate in Thailand.
The complaint further describes how Karlsson allegedly used a second website, www.hci25.com, to make multiple false communications to potential investors. Karlsson allegedly brought the investors in HCI25 together with the investors in the PFRPP and posted multiple communications to delay the moment investors would realize there would be no payout. For example, on one occasion, Karlsson allegedly explained that a payout had not occurred because releasing so much money all at once could cause a negative effect on financial systems throughout the world. Karlsson also allegedly falsely represented that EMS was working with the U.S. Securities and Exchange Commission to prepare the way for a payout.
The complaint alleges Karlsson directed his victims to make investments using virtual currencies, such as Bitcoin. Karlsson allegedly defrauded no less than 3,575 victims of more than $11 million.
Karlsson was arrested on June 18 in Thailand. The United States is seeking his extradition to stand trial in the Northern District of California.
A criminal complaint merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Trial Attorney Catherine Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney William Frentzen are prosecuting this case with the assistance of Bridget Kilkenny. This prosecution is the result of an investigation by the IRS-CI Washington, D.C. Cyber Crimes Unit. Significant assistance was provided by the Criminal Division’s Office of International Affairs, the FBI Legal Attaché Office in Thailand, the IRS Criminal Investigation Attaché Office in Hong Kong and the Royal Thai Police Crime Suppression Division.
Alleged Cryptocurrency Fraudster Arrested in Thailand, Charged in Multi-Million Dollar Investment SchemeRead the Press Release
SAN FRANCISCO – Roger Nils-Jonas Karlsson, a citizen of Sweden, and his company, Eastern Metal Securities (EMS), were charged with securities fraud, wire fraud, and money laundering, announced United States Attorney David L. Anderson; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Washington, D.C. Field Office. In a complaint filed March 4, 2019, and unsealed today, the defendants were charged with engaging in a scheme to defraud victims of more than $11 million.
According to the complaint, since September 2006, Karlsson used websites to communicate false representations to victims in a scheme to defraud potential investors. For example, one website, www.easternmetalsecurities.com, allegedly was registered to a fictitious person and advertised shares in a product called a “Pre Funded Reversed Pension Plan” (PFRPP). The complaint alleges Karlsson used the website to invite potential investors to purchase shares of the plan for $98 per share in exchange for an eventual payout of 1.15 kilograms of gold per share, even though as of January 2, 2019, 1.15 kilograms of gold was worth more than $45,000. Karlsson also allegedly advised investors that, in the unlikely event that the gold payout did not happen, he guaranteed to them 97% of the amount they invested. According to the complaint, the government found no evidence of any accounts held by Karlsson that would allow him to pay off the investors. Instead, the complaint alleges, the funds provided by victims were transferred to Karlsson’s personal bank accounts and now appear to be tied up in real estate in Thailand.
The complaint further describes how Karlsson allegedly used a second website, www.hci25.com, to make multiple false communications to potential investors. Karlsson allegedly brought the investors in HCI25 together with the investors in the PFRPP and posted multiple communications to delay the moment investors would realize there would be no payout. For example, on one occasion, Karlsson allegedly explained that a payout had not occurred because releasing so much money all at once could cause a negative effect on financial systems throughout the world. Karlsson also falsely represented that EMS was working with the U.S. Securities and Exchange Commission to prepare the way for a payout.
The complaint alleges Karlsson directed his victims to make investments using virtual currencies, such as Bitcoin. Karlsson allegedly defrauded no less than 3,575 victims of more than $11 million.
The complaint charges Karlsson with wire fraud, in violation of 18 U.S.C. § 1343; securities fraud, in violation of 15 U.S.C. §§ 78j(b) and 78ff and 17 C.F.R. § 240.10b-5; and money laundering, in violation of 18 U.S.C. § 1957. Karlsson was arrested June 17, 2019, in Thailand. The United States is seeking his extradition to stand trial in the Northern District of California.
A criminal complaint merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, the defendant faces a maximum sentence of 20 years in prison and a maximum $250,000 fine for the wire fraud and securities fraud charges, and 20 years in prison and a $500,000 maximum fine for the money laundering charge. In addition, the court also may order an additional term of supervised release, fines or other assessments, and restitution, if appropriate. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney William Frentzen and Trial Attorney Catherine Alden Pelker of the Department of Justice Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting this case with the assistance of Bridget Kilkenny. This prosecution is the result of an investigation by the IRS-CI Washington, D.C. Cyber Crimes Unit. Significant assistance was provided by the Criminal Division’s Office of International Affairs, the FBI Legal Attaché Office in Thailand, the IRS Criminal Investigation Attaché Office in Hong Kong and the Royal Thai Police Crime Suppression Division.
8 Members of Aiken County Drug Conspiracy Plead Guilty in Federal CourtRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Kristie Scott Wise, a/k/a “Kristie Wise Scott,” Brian William Rose, Casey Kohler, Ricardo Dunbar, James Clinton Gunter, Jr., Joseph Price Langford, Scott Dylan Green, and Kerrie Edgerley, all of Aiken County, pleaded guilty in federal court to conspiracy to possess with the intent to distribute methamphetamine and heroin. United States District Judge J. Michelle Childs of Columbia accepted the guilty pleas and will impose sentence after she has received and reviewed presentence reports that will be prepared by the United States Probation Office.
Evidence presented to the court established that the Drug Enforcement Administration initiated an investigation into the narcotics distribution activities of co-defendants Kenneth Evans and Eddie Brockington. Evans is an inmate in the South Carolina Department of Corrections and Brockington is an inmate in the Georgia Department of Corrections. Through controlled purchases and other investigative techniques, agents learned that members of the conspiracy purchased and distributed large amounts of methamphetamine and/or heroin for Evans and Brockington. Some of the individuals charged were responsible for transporting multi-kilogram amounts of methamphetamine and heroin into South Carolina and then distributing the drugs throughout the state.
The maximum penalty for these offenses is imprisonment for life and/or a fine of $20,000,000.
The case was investigated by agents of the Drug Enforcement Administration and the Aiken County Sheriff's Office. Assistant United States Attorney William K. Witherspoon of the Columbia office is prosecuting the case.
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20 More Defendants Indicted in Latest Federal Surge to Reduce Violent Crime in LouisvilleRead the Press Release
LOUISVILLE, Ky. – United States Attorney Russell Coleman is marshalling federal resources in concert with state and local law enforcement partners to take violent offenders off the streets of Louisville; today he announced a federal grand jury seated in Louisville indicted 20 defendants with numerous counts of firearms violations.
This month’s federal indictments are in addition to the previous two rounds of 2019 indictments against Project Safe Neighborhoods (PSN) defendants, totaling 71 total PSN defendants this calendar year. Since the PSN surges began in Louisville in 2018 the United States Attorney’s Office has indicted 181 defendants. The charges continue to develop this year through an ongoing partnership between the Louisville Metropolitan Police Department (LMPD), the Bureau of Alcohol Tobacco & Firearms (ATF), the Office of Thomas B. Wine, Jefferson County Commonwealth’s Attorney, and multiple other law enforcement partners to maximize penalties against the most violent repeat offenders as part of the Department of Justice’s PSN initiative.
“Violent trigger pullers must be removed from the streets of our city and Commonwealth,” said U.S. Attorney Russell Coleman. “These surges evidence a sense of urgency among law enforcement at all levels to do just that. Stay tuned; more to come.”
Defendants charged in the latest surge have previously been found guilty of numerous violent and drug crimes including: heroin trafficking, domestic violence, trafficking methamphetamine, robbery, possession of an unregistered machinegun, aggravated sexual battery, abduction, and failure to register as a sex offender.
If convicted at trial, the maximum sentence for unlawfully possessing a firearm is no more than ten years in prison, a $250,000 fine, and three years of supervised release. If that firearm is possessed or used in furtherance of a drug trafficking crime, a defendant faces a mandatory minimum five years in prison in addition to the sentence received for the underlying charges, and could receive up to life in prison.
These cases are being prosecuted by Assistant United States Attorneys Ann Marie Blaylock, Tom Dyke, Larry Fentress, Alicia Gomez, Randy Ream, Erin McKenzie, Mac Shannon, David Weiser, Stephanie Zimdahl and Special Assistant United States Attorney Ebert Haegele Assistant Jefferson County Commonwealth’s Attorney with assistance from Laura Stinson, Western District of Kentucky Grand Jury Coordinator.
The cases are being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Louisville Metro Police Department, the United States Postal Inspection Service, and the United States Drug Enforcement Administration (DEA). The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Kentucky. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Today’s indictments are part of the Project Safe Neighborhoods Initiative in the Western District of Kentucky.
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
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14 Southern Missouri Residents Indicted for Meth Conspiracy, Illegal FirearmsRead the Press Release
SPRINGFIELD, Mo. – Fourteen southern Missouri residents have been indicted by a federal grand jury for their roles in a conspiracy to distribute methamphetamine in Greene County, Missouri, and elsewhere. Five of the defendants were also charged with illegally possessing firearms.
Cheyenne W. Conn, 43, and Johnathon W. Arnold, also known as Jonathan, 38, both of Everton, Missouri; Laurie B. Holmes, 37, Jeremy A. Ingram, 40, Tresha R. Ahart, 29, Megan L. McNary, 25, Cassidy R. Clayton, 23, Lonnie J. Tinker, 33, and Larry E. Stapp, 39, all of Springfield, Missouri; Shelby R. Maupin, 30, of Ozark, Missouri; Ginger L. Huerta, also known as Ginger L. Gray, 39, of Halfway, Missouri; Summerlee M. Barnett, also known as Summerlee M. Lacount, 33, of Salem, Missouri; Lloyd R. Bradley, 42, of Fordland, Missouri; and Chandler B. Roberts, 20, address unknown, were charged in a 23-count indictment returned by a federal grand jury in Springfield, Mo., on Wednesday, June 12.
The federal indictment alleges that all of the defendants participated in a conspiracy to distribute 50 grams or more of methamphetamine in Greene County and elsewhere from Nov. 22, 2016, to Sept. 26, 2018.
In addition to the conspiracy, Arnold, Holmes, Stapp, and Bradley are charged in separate counts related to the possession and distribution of methamphetamine.
Conn is also charged with two counts of being a felon in possession of a firearm. The indictment alleges that Conn was in possession of a Lorcin .22-caliber semi-automatic pistol on Nov. 22, 2016. The indictment also alleges that Conn was in possession of a Ruger 9mm semi-automatic pistol on Sept. 22, 2017. Conn has two prior felony convictions for stealing and prior felony convictions for conspiracy to distribute methamphetamine, being a felon in possession of a firearm, possession of a controlled substance, and resisting arrest.
Ingram is also charged with two counts of being a felon in possession of a firearm. Ingram was allegedly in possession of a Springfield Armory 9mm semi-automatic pistol on Sept. 22, 2017, and in possession of a Springfield Armory .45-caliber semi-automatic pistol on May 10, 2018. Ingram has three prior felony convictions for possession of a controlled substance and prior felony convictions for robbery and tampering with a motor vehicle. Ingram is also charged with one count of possessing a firearm in furtherance of a drug-trafficking offense and five counts related to the distribution of methamphetamine.
Ahart is also charged with one count of being a felon in possession of firearms. The indictment alleges that Ahart was in possession of a Charter Arms .38-caliber revolver and a Taurus .38-caliber revolver with an obliterated serial number on Dec. 5, 2017. Ahart has prior felony convictions for possessing a controlled substance and failure to return rental property.
Roberts is also charged with one count of possessing a firearm in furtherance of a drug-trafficking crime. The indictment alleges that Roberts was in possession of a Mossberg .22-caliber semi-automatic pistol on Jan. 23, 2018, in furtherance of the drug-trafficking conspiracy and in furtherance of possessing methamphetamine with the intent to distribute, for which he is charged in two additional counts of the indictment. Roberts is also charged with two counts of being an unlawful user of a controlled substance (methamphetamine and marijuana) while in possession of a firearm. The indictment alleges that, in addition to the Mossberg pistol, Roberts was in possession of a J.C. Higgins .22-caliber semi-automatic rifle with no serial number on Feb. 26, 2018.
Tinker is also charged with one count of being a felon in possession of a firearm. The indictment alleges that Tinker was in possession of a Tanfoglio .22-caliber revolver on Feb. 14, 2018. Tinker has prior felony convictions for fraudulent use of a credit/debit card and stealing.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Nhan D. Nguyen and Special Assistant U.S. Attorney Jessica R. Keller. It was investigated by IRS-Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Springfield, Mo., Police Department, the Greene County, Mo., Sheriff’s Department, the Dade County, Missouri, Sheriff’s Department, and the Oldham County, Texas, Sheriff’s Department.
Organized Crime and Drug Enforcement Task Force
This case is part of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program. The OCDETF program is the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. 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 illicit drug supply.
Tuesday 18 June 2019
“Sovereign Citizen” Convicted of Child Pornography CrimesRead the Press Release
GALVESTON, Texas – A 56-year-old resident of Galveston has been found guilty of receipt and possession of child pornography, announced U.S. Attorney Ryan K. Patrick.
U.S. District Judge George C. Hanks Jr. found John David Knowlton guilty following a two-day bench trial that concluded today.
During trial, the court heard testimony from multiple law enforcement officers and a Comcast custodian of records.
In February 2016, law enforcement conducted an online session using a publicly available peer-to-peer file-sharing network and located an IP address whose share folder contained images of child pornography. The IP address was associated with Knowlton’s residence.
When law enforcement searched his home, they discovered more than a dozen electronic devices belonging to him that contained child pornography. Forensic analysis found that 18 electronic devices contained thousands of images and hundreds of videos of child pornography, child erotica and artifacts of child pornography.
Knowlton had opted to represent himself at the trial with the court-appointed shadow defense counsel. He rehired that counsel this morning. Knowlton, identifying as a sovereign citizen, argued that the federal judicial system had no jurisdiction over him. The court was not persuaded by his arguments and found him guilty as charged.
Judge Hanks set sentencing for Aug. 28, 2019. At that time, Knowlton faces a minimum of five and up to 20 years for the receipt of child pornography and up to 10 years imprisonment for the possession charge.
Previously released on bond, Knowlton was taken into custody after the guilty verdict where he will remain pending sentencing.
Immigration and Customs Enforcement’s Homeland Security Investigations, Pearland Police Department and Galveston Police Department’s - Internet Crimes Against Children Task Force conducted the investigation.
Assistant U.S. Attorneys Zahra Jivani Fenelon and Kimberly Leo prosecuted the case, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Wheeling man admits to cocaine chargeRead the Press Release
WHEELING, WEST VIRGINIA – Gregory A. Voltz, Jr., of Wheeling, West Virginia, has admitted to distributing cocaine, United States Attorney Bill Powell announced.
Voltz, age 35, pled guilty to three counts of “Distribution of Cocaine Base Within 1,000 Feet of a Protected Location.” Voltz admitted to selling cocaine near Jensen Playground in Wheeling in February 2018.
Voltz faces at least one and up to 40 years incarceration and a fine of up to $2,000,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen L. Vogrin is prosecuting the case on behalf of the government. The Ohio Valley Drug & Violent Crime Task Force, a HIDTA-funded initiative, and the West Virginia State Police investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Waupun Resident Sentenced to Prison for Filing False Tax ReturnsRead the Press Release
Matthew D. Krueger, the United States Attorney for the Eastern District of Wisconsin, announced that Kimberly Bagneski (age 48) was sentenced in federal court in Milwaukee to 12 months and one day in prison, to be followed by three years of supervised release, and ordered to pay $84,129 in restitution to the IRS.
Ms. Bagneski, who lives in Waupun, Wisconsin, previously pleaded guilty to filing false tax returns seeking fraudulent tax refunds. According to court documents, Ms. Bagneski offered to prepare and file tax returns for people for free or for a nominal fee. She then submitted returns seeking inflated tax refunds, typically by claiming fictitious business losses. Generally, Bagneski directed the IRS to send the refund to her bank account and then paid the taxpayer a fraction of the money she received. Bagneski also recruited her sister-in-law to assist her in filing the false returns in exchange for a portion of the fraudulent refund. During the years 2010 through 2015, Bagneski and her sister-in-law prepared and filed 20 false federal income tax returns, as well as 19 false state tax returns.
This matter was investigated by the criminal investigation division of the Internal Revenue Service. The prosecution was handled by Assistant United States Attorney Matthew L. Jacobs.
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Waterbury Felon Sentenced to 33 Months in Federal Prison for Trading Drugs for GunsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that PATRICK ROGERS, 39, of Waterbury, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 33 months of imprisonment, followed by three years of supervised release, for illegally possessing firearms.
According to court documents and statements made in court, ATF received information that Rogers was distributing heroin and was interested in acquiring firearms. In August and September 2018, an ATF special agent working in an undercover capacity made two controlled purchases of suspected heroin from Rogers. Rogers then agreed to provide a quantity of heroin to the undercover agent in exchange for two firearms. On September 26, 2018, Rogers was arrested after he met the undercover agent at a location in Waterbury and took possession of two firearms that he traded for 160 bags of heroin. Subsequent lab analysis confirmed that the bags contained heroin and fentanyl.
Rogers was convicted in state court in 1998 of sale of a hallucinogen or narcotic and robbery in the second degree, in 2008 of violation of a protective order, and in 2016 of possession of narcotics with the intent to distribute.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Rogers has been detained since his arrest. On January 22, 2018, he pleaded guilty to one count of possession of firearms by a previously convicted felon.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the Waterbury Police Department. The case was prosecuted by Assistant U.S. Attorney Natasha Freismuth.
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 neighborhoods safer for everyone.
Wabasha County Brothers Plead Guilty to Multiple Violent Home Invasion Robberies, One Resulting in Victim’s DeathRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty pleas of LENNIE DWAYNE BROOKS, 33, and RANDY LORENZO BROOKS, 24, to three counts each of interference with commerce by robbery, known as the Hobbs Act. The defendants entered their guilty pleas today before Senior Judge David S. Doty in U.S. District Court in Minneapolis, Minnesota. On May 14, 2019, co-defendants AUTUMN MARIE NICHOLS, 20, and ESPERANZA CARDENAS, 29, each pleaded guilty to one count of aiding and abetting interference with commerce by robbery.
United States Attorney Erica MacDonald stated, “These criminals admitted to a string of violent home invasions that ended in the tragic and senseless loss of life. Small business owners should never have to fear for their lives or the safety of their property, especially in their own homes. I commend the collaborative efforts of the many law enforcement agencies involved in this case that led to today’s guilty pleas. The United States Attorney’s Office is committed to clearing the streets of violent criminals and ensuring the safety of all Minnesotans.”
“We’re satisfied to see these men take responsibility for their actions,” said Acting Special Agent in Charge Kirk Howard of the ATF St. Paul Field Division. “The fear they instilled in the lives of small business owners was ruthless, excessive and intolerable. Hopefully, this guilty plea and future sentencing can bring closure to the families and communities affected. I’m proud of the exceptional work put into this investigation, successfully ending the Brooks brothers’ hostile home invasion streak. The strong partnerships with local law enforcement contributed greatly to this accomplishment and we are grateful for their efforts.”
According to the defendants’ guilty pleas and documents filed in court, LENNIE and RANDY BROOKS, on three separate occasions that are chargeable under the Hobbs Act, committed violent home invasion robberies and, in one incident, caused the death of a robbery victim. On October 6, 2018, LENNIE and RANDY BROOKS broke into a private residence located in Eden Prairie, Minnesota while NICHOLS waited in the getaway car. RANDY BROOKS held two victims at gunpoint while LENNIE BROOKS searched the house for money and valuables. During that time, one of the victims went into cardiac arrest, however neither defendant called for medical help nor was the second victim allowed to call for help. The defendants stole approximately $50,000 in cash, which was the business proceeds of the Shuang Hur Asian Markets located in Minneapolis and St. Paul, Minnesota. The defendants admitted that the victim who went into cardiac arrest died as a direct result of the home invasion.
On September 23, 2018, LENNIE and RANDY BROOKS broke into a private residence located in Ellendale, Minnesota while CARDENAS waited in the getaway car. RANDY BROOKS held two victims at gunpoint while LENNIE BROOKS searched the house for money and valuables. The defendants stole approximately $40,000 in cash, which was the business proceeds of the Holland Auction Company located in Ellendale, Minnesota.
On August 16, 2018, LENNIE and RANDY BROOKS broke into a private residence located in Waite Park, Minnesota. RANDY BROOKS held two victims at gunpoint while LENNIE BROOKS searched the house for money and valuables. The defendants stole approximately $180,000 in jewelry and gemstones, which belonged to Trisko Jewelry located in Waite Park, Minnesota.
The Hobbs Act, passed by Congress in 1946, prohibits actual or attempted robbery affecting interstate or foreign commerce “in any way or degree.”
This case is the result of a multi-jurisdictional investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), Eden Prairie Police Department, Steele County Sheriff’s Office, Woodbury Police Department, Cottage Grove Police Department, St. Paul Police Department, Minneapolis Police Department, Winona Police Department, Wabasha Police Department, Prior Lake Police Department, Southeast Minnesota Violent Crime Enforcement Team, St. Croix County Sheriff’s Office, Wabasha County Sheriff’s Office, Washington County Sheriff’s Office, Olmstead County Sheriff’s Office, Winona County Sheriff’s Office, Waite Park Police Department, Owatonna Police Department, Nisswa Police Department, Goodhue County Sheriff’s Office, Red Wing Police Department, Mason City Police Department, Freeborn County Sheriff’s Office, and the Albert Lea Police Department. This case was brought as part of Project Safe Neighborhoods (“PSN”), an initiative that brings together federal, state and local law enforcement to combat violent crime and make neighborhoods safer for everyone.
Assistant United States Attorney Jeffrey S. Paulsen is prosecuting the case.
Defendant Information:
LENNIE DWAYNE BROOKS, 33
Zumbro Falls, Minn.
Convicted:
- Interference with Commerce by Robbery, 3 counts
RANDY LORENZO BROOKS, 24
Wabasha, Minn.
Convicted:
- Interference with Commerce by Robbery, 3 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Woman Formerly of from Red River, N.m. Pleads Guilty to Failure to File Tax Returns Reporting Business IncomeRead the Press Release
ALBUQUERQUE – Lisa Dawn Curry, 48, formerly of Red River, N.M., pleaded guilty in federal court yesterday to 2 counts of failure to file tax returns reporting income she earned from her business.
According to Curry’s plea agreement, she operated a company in Red River, N.M. She used money from the company’s operating account to pay her own personal expenses. Under federal tax law, she needed to file income tax returns in 2012 and 2013 because she earned more than the minimum gross income. However, Curry did not file returns for those years although she knew of the filing requirement because she properly filed returns in previous years.
Curry is out of custody awaiting sentencing at a future date. She faces a sentence of 5 years’ probation and has agreed to pay restitution in an estimated amount of $72,840.
The Internal Revenue Service Criminal Investigation investigated this case with assistance from the New Mexico Taxation and Revenue Department, the Red River Marshal’s Office, and 16th Judicial Circuit State Attorney’s Office in Key West, Fla. Assistant U.S. Attorney Holland S. Kastrin is prosecuting the case.
Two New Jersey Men Charged with Robbery of Convenience StoreRead the Press Release
TRENTON, N.J. – Two men have been charged in connection with the armed robbery of a convenience store in Mercer County, New Jersey, on June 16, 2019, U.S. Attorney Craig Carpenito announced today.
Omar Feliciano-Estremera, 42, and Gabriel Lopez, 31, both of Trenton, are each charged by complaint with one count of Hobbs Act robbery and will make their initial court appearances before U.S. Magistrate Judge Douglas E. Arpert in Trenton federal court on a date to be determined.
According to the complaint:
Lopez entered a convenience store in Hamilton Township, New Jersey, displayed a black handgun to the clerk and demanded the money in the store’s register. Law enforcement officers conducting surveillance observed Lopez exiting the convenience store immediately after the robbery and heading toward a minivan belonging to Feliciano-Estremera, who was a suspect in an earlier robbery in which his minivan was captured on camera while acting as the getaway car.
In addition to the surveillance, law enforcement officers were tracking Feliciano-Estremera’s cellular phone. As Lopez exited the convenience store, he observed law enforcement vehicles with their lights activated and he ran to a nearby wooded area. Law enforcement officers pursued and apprehended Lopez, who resisted arrest and threatened to shoot an officer. Officers then placed Feliciano-Estremera, who was seated in the driver’s seat of the minivan, under arrest as the suspected getaway driver. Law enforcement officers searched the wooded area through which Lopez had fled and recovered a black handgun matching the description of gun Lopez allegedly carried during the robbery. The convenience store’s video camera also captured Lopez conducting the robbery.
The count of Hobbs Act robbery carries a maximum potential sentence of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the Hamilton Police Department, under the direction of Chief James M. Stevens; and the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo J. Onofri, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Alexander Ramey of the Criminal Division in Trenton.
The charge and allegations in the complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.