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1 August 2019
Northern Nevada Felon Sentenced to Eight Years in Project Safe Neighborhoods ProsecutionRead the Press Release
RENO, Nev. – A felon who was found guilty of a federal firearm violation was sentenced yesterday to a total of eight years in federal prison to be followed by three years of supervised release, announced United States Attorney Nicholas A. Trutanich for the District of Nevada.
Clifton James Jackson, 55, of Reno, was found guilty by a jury in April 2019, of one count of felon in possession of a firearm. United States District Judge Howard D. McKibben sentenced Jackson to 78 months in prison. In addition, Jackson committed the crime while on supervised release for his prior felon in possession conviction. His supervised release was revoked and he was sentenced to a consecutive 18 months in prison for a total of 96 months. This was Jackson’s 10th felony conviction.
In December 2018, a Washoe County Sheriff’s Office deputy responded to a 911 call reporting a man holding a handgun while walking towards a business. Gunshots were also reported by the caller. When the deputy arrived in the area, he saw a truck matching the suspect’s vehicle. While waiting for additional units to arrive, the deputy observed the truck accelerate quickly. The deputy activated the emergency lights and siren, but the truck failed to stop. While in pursuit of the suspect, the deputy observed an object being thrown from the truck. When additional units arrived on scene, Jackson and a juvenile were ordered from the truck and arrested. The deputies searched the area where the object had been thrown and recovered a loaded 7.65mm semi-automatic pistol and a box of .32 caliber ammunition. A subsequent search of the truck revealed a round of ammunition. A records check of the recovered firearm revealed that it had been stolen in Plumas County, California, in May 2018.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Washoe County Sheriff’s Office. Assistant United States Attorneys Megan Rachow and Randy St. Clair prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN), a nationwide program by the Department of Justice that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Department announced the reinvigoration of PSN. For more information about PSN, visit www.justice.gov/usao-nv.
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New Orleans Resident Pleads Guilty in Methamphetamine-Trafficking ConspiracyRead the Press Release
NEW ORLEANS - U.S. Attorney Peter G. Strasser announced that LINDSEY LOPEZ, age 37, of New Orleans, pled guilty today to a methamphetamine-trafficking offense. Specifically, LOPEZ pled guilty to distribution of a quantity of methamphetamine, and faces a maximum sentence of 20 years in prison, a fine up to $1,000,000, and at least three years of supervised release.
LOPEZ was one of 11 defendants charged in a 23-count federal indictment. Specifically, the indictment alleges that LOPEZ conspired to sell large quantities of methamphetamine with codefendants Stefen Daigle, Peter Giandalone, Paul Melancon, Jeffrey Clines, Jacob Higginbotham, James Hatch, Eulalio Torres-Cadenas, Angel Renee Vidaure, Delio Alfredo Lopez-Lopez, and Julien Polk. The indictment also alleges a number of individual acts of distributing and possessing with intent to distribute methamphetamine, as well as firearm offenses. Law enforcement developed evidence against this group of defendants using controlled purchases of methamphetamine, traffic stops and seizures, consensually recorded text messages and phone calls, search warrants, cooperator information, and self-incriminating statements.
U.S. District Judge Susie Morgan set sentencing for LOPEZ on November 5, 2019.
U.S. Attorney Strasser praised the work of the United States Postal Inspection Service, Louisiana State Police, Jefferson Parish Sheriff’s Office, Texas Department of Public Safety, Texas Highway Patrol, Montgomery County (Texas) Sheriff’s Office, Immigration and Customs Enforcement, AMTRAK Police, and the Orleans Parish District Attorney’s Office. Assistant United States Attorney Brandon S. Long is in charge of the prosecution.
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New Orleans Man Pleads Guilty to Conspiring to Transport Stolen Motorcycles Across State LinesRead the Press Release
Gulfport, Miss. – Brandon Soublet, 27, of New Orleans, Louisiana, pled guilty yesterday before U.S. District U.S. District Judge Sul Ozerden to conspiring to transport stolen motorcycles across state lines, announced U.S. Attorney Mike Hurst and Michelle Sutphin, Special Agent in Charge of the Federal Bureau of Investigation (FBI) in Mississippi.
Starting in February 2017, members of the East Side Wheelie Kings, a motorcycle gang in New Orleans, traveled from New Orleans, Louisiana, to various parts of Mississippi and burglarized numerous cycle shops throughout the state. They would steal Uhaul trucks and use them to transport stolen motorcycles back to New Orleans. Once in New Orleans, they used Instagram and other internet sites to sell the stolen merchandise.
On February 22, 2017, Brandon Soublet and others were caught running from a stolen Uhaul truck on Interstate 10 in Harrison County. The Uhaul truck was filled with motorcycles that Soublet and others had stolen from a motorcycle shop in Biloxi.
Soublet will be sentenced on October 30, 2019, by Judge Ozerden, and faces a maximum penalty of five years in prison and a $250,000 fine.
The case was investigated by the FBI, Biloxi Police Department, and Louisiana State Troopers. It was prosecuted by Assistant U.S. Attorney Kathlyn R. Van Buskirk.
New Orleans Man Pleads Guilty and Sentenced to Cutting Off GPS Ankle Monitoring DeviceRead the Press Release
NEW ORLEANS – U.S. Attorney Peter Strasser announced today that GEOURVON KEINELL SEARS, age 21, pleaded guilty today to a one-count bill of information for damaging government property in violation of Title 8, United States Code, Section 1361.
According to the bill of information, GEOURVON KEINELL SEARS (“SEARS”), cut off a GPS ankle monitor that he was ordered to wear by a U.S. Magistrate Judge as a condition of pretrial release.
SEARS faced a maximum term of imprisonment of penalty of not more than one year, a maximum supervised release term of one year, and a maximum fine of $100,000. SEARS was sentenced for a total term of time served.
The Federal Bureau of Investigations and the New Orleans Police Department investigated this matter. Assistant U. S. Attorney Spiro G. Latsis is in charge of the prosecution.
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Natchez Man Pleads Guilty under Project EJECT to Stealing a Firearm from a Licensed Firearms DealerRead the Press Release
Natchez, Miss. – Javonte Lamar Butler, 20, of Natchez, pled guilty today before Senior U.S. District Judge David C. Bramlette, III to stealing a firearm from a business that is licensed to sell firearms, announced U.S. Attorney Mike Hurst and Kirk Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On December 14, 2018, Javonte Lamar Butler visited Peddlers Antique Pawn and Salvage, a federally licensed reseller of firearms, located in Natchez, Mississippi. While a store employee assisted two other persons, Butler reached into a glass display case, removed a pistol, and left the store without lawfully purchasing it. Butler was subsequently indicted on June 14, 2019, for stealing a firearm from a business licensed to sell firearms.
Butler will be sentenced by Judge Bramlette on November 19, 2019 at 10:00 a.m. in Natchez. He faces a maximum penalty of ten years in prison and a $250,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant United States Attorney Bert Carraway.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Justice Expel Crime Together." PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
McFarland Man Sentenced for Money Laundering Conspiracy Related to Sale of Synthetic CannabinoidsRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Zahid Shakeel, 58, McFarland, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 18 months in federal prison for conspiring to commit money laundering related to the sale of synthetic cannabinoids at gas stations owned by Capitol Petroleum, LLC (Capitol Petroleum). Shakeel pleaded guilty to this charge on April 24, 2019.
Farooq Shahzad owns and operates Capitol Petroleum, and Zahid Shakeel was formerly the general manager for the company. From July 2015 through April 2016, Shahzad conspired with Shakeel and others to distribute synthetic cannabinoids, dangerous drugs capable of hallucinogenic effects. Law enforcement officials repeatedly asked Shahzad, Shakeel, and other Capitol Petroleum employees to stop the sale of these dangerous drugs, and executed search warrants in June 2015 seizing the inventories of two gas stations. Despite these warnings, the conspirators continued to distribute synthetic cannabinoids from a Mobil gas station located at 3505 East Washington Avenue in Madison. During this period, Shakeel systematically made cash deposits from the sale of synthetic cannabinoids into bank accounts controlled by Shahzad.
In sentencing Shakeel, Judge Peterson stated that Shakeel was deeply involved in the conspiracy and persisted in distributing synthetic cannabinoids even after he knew it was illegal and damaging to the community. Judge Peterson noted that Shakeel also filed a false affidavit in court in connection with the government’s early investigation into the conspiracy. However, Judge Peterson also noted that unlike Shahzad, there was no evidence that Shakeel significantly profited from the sale of synthetic cannabinoids.
On March 20, 2019, Judge Peterson sentenced Shahzad to 30 months in federal prison for conspiring to distribute synthetic cannabinoids and possessing untaxed smokeless tobacco.
The charge against Zahid Shakeel was the result of an investigation conducted by IRS Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, Wisconsin Department of Justice Division of Criminal Investigation, Wisconsin Department of Revenue, and Dane County Narcotics Task Force. The prosecution of the case has been handled by Assistant U.S. Attorney Aaron Wegner.
Massachusetts Man Sentenced to 27 Months in Prison for Bank Fraud and Identity TheftRead the Press Release
CONCORD - Jamie Ervin, 49, of Springfield, Massachusetts was sentenced on Wednesday to 27 months in prison for bank fraud and identity theft, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, between approximately September 21, 2017 and January 20, 2018, Ervin entered a number of different bank branches and made a number of withdrawals from at least 14 people’s bank accounts. For each transaction, Ervin used customers’ bank account numbers and false drivers’ licenses that contained the bank customers’ personal identifying information and Ervin’s photograph. In total, Ervin withdrew approximately $106,000 and attempted to withdraw an additional $31,200 from other persons’ bank accounts.
Ervin previously pleaded guilty on January 19, 2019.
“Fraud and identify theft crimes cause serious harm to individuals as well as financial institutions,” said U.S. Attorney Murray. “In order to deter this criminal conduct, we will work closely with our law enforcement partners to prosecute fraudsters who commit fraud and identity crimes.”
This matter was investigated by the United States Postal Inspection Service and was prosecuted by Special Assistant U.S. Attorney Matthew T. Hunter.
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Maryland U.S. Attorney Announces Recent Results of Federal Efforts to Reduce Violent Crime in BaltimoreRead the Press Release
Baltimore, Maryland – U.S. Attorney Robert K. Hur, along with federal, state, and local partners, announced that as a result of strategies applied to focus on the most violent neighborhoods and target those responsible for that violence, 90 defendants have been charged with federal crimes in investigations brought down in the last month, in separate drug conspiracies operating in the Northwest, Western, Eastern, and Southwestern Districts of Baltimore. During those investigations, law enforcement has seized more than 51 guns, as well as kilogram quantities of fentanyl, heroin, cocaine, fentanyl, and marijuana, and nearly $1 million in cash. The agencies involved in these investigations included the ATF, DEA, FBI, HSI, the U.S. Marshals Service, the Baltimore Police Department, and the Office of the State’s Attorney for Baltimore City.
As of July 31, we have indicted 215 defendants in 2019 in Baltimore under Project Safe Neighborhoods (“PSN”), our violent-crime reduction strategy. All of those defendants are members of violent drug trafficking organizations that have been operating in those Baltimore neighborhoods hardest hit by gun violence. By comparison, in 2018, we indicted a total of 246 Baltimore PSN defendants. At the current pace, the U.S. Attorney’s Office in Maryland anticipates charging 50% more violent crime defendants under our strategy this year than in 2018.
“Reducing violent crime in Baltimore is job one. It’s what we in law enforcement think about morning, noon, and night,” said U.S. Attorney Robert K. Hur. “We will continue to do everything we can to prosecute the violent criminals who wreak havoc in and terrorize Baltimore’s neighborhoods.”
RECENT PROACTIVE ENFORCEMENT EFFORTS
Monument Street Drug Trafficking Organization (“DTO”) - In this case, 25 defendants were arrested and charged in a 30-count superseding indictment that was returned by a federal grand jury on June 26, 2019, and unsealed on July 19, 2019. The superseding indictment charges the defendants with conspiring to distribute narcotics in and around the 400 block of North Montford Avenue and Jefferson Street, and around the 2400 block of East Monument Street at Port Street. Beginning in July 2018, members of the conspiracy allegedly distributed heroin, fentanyl, cocaine, and crack cocaine to individual drug users, and in bulk quantities to other drug traffickers, who redistributed the drugs in and around Baltimore. Ten of the conspirators also face firearms charges—including eight defendants charged with illegal possession of a firearm and ammunition by a prohibited person. During the investigation, law enforcement seized nine firearms, more than 14 kilograms of cocaine, approximately 4.5 kilograms of heroin, and 479 grams of fentanyl—enough to kill over 200,000 people. In addition, law enforcement seized more than $472,000 in cash and jewelry and vehicles worth more than $466,000. (Adams Superseding Indictment)
Frederick and Collins – The superseding indictment returned on July 10, 2019, charges six defendants for a drug distribution conspiracy allegedly operating since January 2019 in the area of Frederick and Collins Streets in West Baltimore. In addition to the drug conspiracy, Jebriel Ali, a/k/a Bril, is charged with possession of a firearm in furtherance of a drug trafficking crime, and two counts of illegal possession of a firearm and ammunition by a prohibited person. During the course of the investigation, law enforcement seized five firearms, including a Glock pistol that was modified to fire as a fully-automatic gun. Ali is also charged with the possession with intent to distribute 400 grams of a substance containing fentanyl. If convicted, defendant Ali faces a minimum of 10 years imprisonment and up to life in prison. His co-defendants face maximum prison terms of 20 to 40 years. (Ali Superseding Indictment)
Normandy, Franklin, and Loudon (NFL) – This investigation resulted in two indictments charging a total of 38 defendants for allegedly participating in two drug trafficking organizations to distribute heroin, fentanyl, powder cocaine, and crack cocaine to drug users and redistributors in and around the Edmondson Village neighborhood of Southwest Baltimore. According to the superseding indictments, members of the drug trafficking organizations used residences in and around Baltimore to process, cut, package, and prepare the drugs for distribution. The defendants allegedly changed cell phones frequently to prevent the interception of their communications by law enforcement, and possessed firearms in furtherance of their drug trafficking activities. Specifically, the Butler DTO distributed heroin, fentanyl, cocaine, and crack cocaine in Maryland, Virginia, West Virginia, and Pennsylvania. The Butler DTO allegedly cut the heroin and crack cocaine that they sold with other substances, including fentanyl, and at least five overdose deaths are attributed to the distribution of drugs by members of the conspiracy, including the father of one of the conspirators. As detailed in the superseding indictment, members and associates of the Adam Martin and Calvin Claxton DTO allegedly used violence to retaliate against those seeking to rob or cheat the DTO. That superseding indictment details several of these acts of violence, including a shooting murder on May 5, 2018, a gunfight on October 16, 2018 in which an unarmed bystander was struck in the crossfire, and the planned robbery of an unlicensed taxi driver. During the course of the investigation law enforcement seized at least 17 firearms, ammunition, drugs, and more than $270,000 in drug proceeds. (Bailey and Antoine Superseding Indictments)
Liberty Heights Avenue and Garrison Boulevard – Twenty-one Baltimore men were indicted on federal charges for allegedly operating a drug distribution operation in Northwest Baltimore, distributing heroin, crack and powder cocaine, fentanyl, and marijuana in the area of Liberty Heights Avenue and Garrison Boulevard. The superseding indictment alleges that several of the defendants illegally possessed firearms in relation to drug trafficking. Law enforcement seized 20 guns, more than $200,000 in cash, and more than a kilogram of fentanyl and 50 grams of crack cocaine from these defendants during the investigation. Although not alleged in the indictment, the affidavit filed in support of the search warrants alleges that the defendants are part of an organization called LNG. According to the affidavit, LNG is comprised of two allied groups who work together: the Yellow Bus Gang (“YBG”) Crips and the Black Guerilla Family (“BGF”). The affidavit alleges that LNG members participate in violent acts, including a gunfight on January 19, 2019, that occurred at approximately 11 a.m. (Anderson Superseding Indictment)
OTHER FEDERAL INITIATIVES
Federal law enforcement is using all of the resources we have available to assist our state and local partners in the fight against violent crime.
Project Safe Neighborhoods (“PSN”). As of July 31, 2019, we have brought federal charges against 215 defendants in Baltimore City as part of Project Safe Neighborhoods (“PSN”). In July alone, the U.S. Attorney’s Office charged 31 defendants in Baltimore PSN cases. PSN focuses on gun, drugs, violence, and gang-related crimes. 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.
Reactive Gun Cases (“Exile”) In July alone, 10 defendants who are previously convicted felons were charged federally with illegal possession of a firearm as part of the Exile program. Maryland EXILE is part of PSN, specifically targeting gun crime by combining local, state, and federal law enforcement efforts; community action and revitalization; and public awareness.
The National Public Safety Partnership (“PSP”) program with the Baltimore Police Department. This Justice Department program is a three-year engagement that seeks to leverage department assets in support of a local jurisdiction’s commitment to drive down violent crime. On June 3, 2019, Attorney General William Barr announced the selection of the Baltimore Police Department as one of ten FY 2019 PSP sites where the Justice Department will work collaboratively to provide training and technical assistance in areas such as crime analytics, emerging technology, and community engagement.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) National Integrated Ballistic Information Network (“NIBIN”). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles.
FBI Baltimore’s Safe Streets Violent Gang Task Force. The Safe Streets Task Force, which includes FBI special agents and task force officers from the Baltimore, Baltimore County, and Anne Arundel County Police Departments, is responsible for identifying and targeting the most violent gangs in the Baltimore metropolitan area, to address gang violence and the associated homicides in Baltimore. The program uses federal racketeering statutes to disrupt and dismantle significant violent criminal threats and criminal enterprises affecting the safety and well-being of our citizens and our communities.
The Baltimore Response Model. The Drug Enforcement Administration (DEA) has implemented the Baltimore Response Model (“BRM”) which focuses on training first-responder law enforcement to gather and share essential information that can be used as a starting point for a deeper investigation when they respond to an overdose, whether it be fatal or non-fatal. The BRM encourages local agencies to reach out to DEA with the information they receive at an overdose site and DEA will assist in exploiting investigative databases as well as accessing the broadest de-confliction networks which could lead to teaming up with other local jurisdictions. Additionally, the information received from the overdose sites can lead to whom provided the deadly narcotic to the person who overdosed, which may lead to a violent Drug Trafficking Organization.
HSI Baltimore has specifically targeted the influx of opioids through two specially developed initiatives that bring together multiple law enforcement agencies in specialized and dedicated partnership. HSI agents alongside task force officers Baltimore City, Baltimore County, and Anne Arundel County Police Departments collaborate through both the Illicit Online Marketplace Initiative and the Baltimore Seaport Initiative to quell the influx of opioids and other dangerous narcotics and illegal substances. The Illicit Online Marketplace Initiative focuses on contraband being smuggled into Maryland through darkweb and other illicit Internet transactions. The Baltimore Seaport Initiative focuses on all contraband being smuggled in to the area via Baltimore Washington International Airport and the Port of Baltimore.
We are also working closely with the Office of the State’s Attorney for Baltimore City to coordinate our prosecution efforts on violent crime and drugs. At the end of last year we announced the Synthetic Opioid Surge (“SOS”), a new initiative to target fentanyl dealers. Under this new initiative, every arrest involving distribution of fentanyl made by law enforcement in Baltimore is reviewed jointly by the State’s Attorney’s Office for Baltimore City, the Drug Enforcement Administration, and the U.S. Attorney’s Office to determine whether the case will be handled in the state or federal system. The use of federal resources and statutes, which carry significant terms of imprisonment, is necessary to prosecute those individuals who pose the greatest threat to public safety in distributing lethal doses of fentanyl. To date we have indicted 13 defendants federally, including a new defendant charged just this week, and two defendants who are charged in larger drug conspiracy cases.
COMMUNITY OUTREACH
In addition to enforcement actions, the U.S. Attorney’s Office recognizes the need for services to help deter individuals from committing crimes. We hold “call-ins” for individuals returning from prison who have been identified by Parole and Probation as someone likely to re-offend. At the call-in, those individuals are advised of the consequences of federal prosecution, should they commit another crime. In addition, service providers are there to assist individuals to find housing, job training, obtain identification cards and assist with other needs. In partnership with local community stakeholders we host community resource fairs, like the one held today at Union Baptist Church. In addition, we sponsor re-entry fairs for returning citizens, produce public service announcements to discourage individuals from using a gun, and put up billboards to increase community awareness of the dangers of opioid abuse and the difference between federal and state prison sentences.
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Manchester Man Pleads Guilty to Using a Telephone to Facilitate Drug TraffickingRead the Press Release
CONCORD - Jeffrey Paul Hatch, 39, of Manchester, pleaded guilty in federal court to using a telephone to facilitate drug trafficking, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, federal, state and local law enforcement officers conducted an investigation in 2017 of fentanyl traffickers, including an individual in Lawrence, Massachusetts who provided quantities of fentanyl to a Manchester-based fentanyl trafficker. Couriers assisted the Manchester-based trafficker by transporting drugs and money.
In pleading guilty, Hatch admitted that on July 25, 2017, he used his cellular telephone to arrange to pick up fentanyl from the Massachusetts-based trafficker on behalf of the Manchester-based trafficker.
Hatch is scheduled to be sentenced on November 6, 2019.
This matter was investigated by the Drug Enforcement Administration, Department of Homeland Security Investigations, New Hampshire State Police, and Manchester Police Department. The case is being prosecuted by Assistant U.S. Attorney Jennifer Cole Davis.
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Man Deported from China Arraigned on 2011 Drug ChargeRead the Press Release
Levi Wallace, age 32, from Long Grove, Iowa, has been charged with one count of importation of an analogue controlled substance, one count of use of the United States mail to facilitate a drug crime, and one count of attempted possession with intent to distribute a mixture or substance containing 4- Methymethcathinone (commonly called mephedrone or 4-MMC), an analogue of methcathinone, a Schedule I controlled substance.
The charges are contained in an Indictment filed on January 12, 2011, and unsealed on June 25, 2019. On June 25, Wallace was arrested in the Central District of California when he arrived by plane from China, where he had been living since 2010. Chinese authorities deported Wallace on June 24, 2019. Wallace had hearings in federal court in California, which resulted in his detention.
If convicted on all charges, Wallace faces a possible maximum sentence of 44 years’ imprisonment, a $2,250,000 fine, and 9 years of supervised release following any imprisonment.
Wallace appeared today in federal court in Cedar Rapids and was continued to be held without bond. Wallace’s next appearance for trial is set for September 23, 2019.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Patrick J. Reinert and was investigated by Department of Homeland Security, Homeland Security Investigations and the Drug Enforcement Administration (DEA) Task Force comprised of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; and the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 11-CR-2004. Follow us on Twitter @USAO_NDIA.
Major heroin trafficker and co-conspirator sentencedRead the Press Release
SAVANNAH, GA: Two heroin traffickers have been sentenced to federal prison after admitting to their roles in a major drug distribution conspiracy.
Gary Johnson, a/k/a “G,” 44, of Savannah, was sentenced to 90 months in federal prison, while Jamison Lanier, a/k/a “Monica Lewinsky,” 36, also of Savannah, was sentenced to 53 months in prison, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. There is no parole in the federal system.
Johnson and Lanier pled guilty in U.S. District Court in February to Conspiracy to Possess with Intent to Distribute and Conspiracy to Distribute Heroin.
According to court statements and filings, Johnson and Lanier were involved in a conspiracy to distribute significant quantities of heroin from at least February through December of 2018. During the investigation, investigators observed Lanier and Johnson distribute heroin at multiple parking lots in the Savannah area. On Nov. 8, 2018, federal agents executed search warrants at three locations associated with Johnson, resulting in the seizure of more than $97,000 cash and more than 170 grams of heroin, much of it laced with the deadly synthetic opioid Fentanyl.
“The United States is in the midst of a drug epidemic, with nearly 30,000 overdose deaths last year attributed to drugs laced with fentanyl,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “Our commitment to the community is that we will prosecute traffickers and send them to prison and prevent them from contributing to this deadly marketplace.”
Robert J. Murphy, the Special Agent in Charge of the Drug Enforcement Administration’s Atlanta Field Division stated, “Heroin and synthetic drugs have no boundaries. Once consumed, they destroy their victims like predators ravage their prey. Many thanks to the collaboration of law enforcement agencies and the subsequent prosecution by the U.S. Attorney’s Office, who all made this investigation a success.”
“The U.S. Postal Inspection service remains steadfast in our resolve to ensure that we seek justice to the end against criminals that pose a direct threat to the safety and stability of our communities,” said Antonio J. Gomez, Inspector in Charge of the Miami Division. “This goal is achieved through collaborative investigative efforts with other law enforcement agencies.”
This case was investigated by the Drug Enforcement Administration (DEA) and the United States Postal Inspection Service. The case was prosecuted for the United States by Assistant U.S. Attorney Joshua Bearden.
Lincoln Woman Sentenced for Being a Marijuana User in Possession of AmmunitionRead the Press Release
United States Attorney Joe Kelly announced that Yasmiene Raevonne Blanton, 29, of Lincoln was sentenced today by Senior United States District Judge Richard G. Kopf to time served (approximately four months) and placed on three years of supervised release for possessing ammunition while she was a user of and addicted to marijuana.
On August 22, 2018, Blanton was stopped by Lincoln Police officers after she left her Lincoln residence. At the time of the stop, Blanton was driving on a suspended license, and the car she was driving smelled strongly of marijuana. She was found to be in possession of approximately two ounces of marijuana. A search warrant was executed at her residence. During that search, numerous rounds of various types of ammunition were found along with additional marijuana.
This case was investigated by the Lincoln Police Department Gang Unit and the Lincoln/Lancaster County Drug Task Force.
Laredoan Convicted in Marijuana ConspiracyRead the Press Release
LAREDO, Texas – A 25-year old man from Laredo has admitted to conspiring with others to possess with the intent to distribute more than 100 kilograms of marijuana, announced U.S. Attorney Ryan K. Patrick.
Between May 30, 2016, and June 6, 2016, Martin Delgado coordinated the transportation of more than 375 kilograms of marijuana which was supposed to be delivered to Dallas. Authorities ultimately seized the drugs at the U.S. Border Patrol checkpoint on Interstate Highway 35, north of Laredo.
Today, Delgado admitted to his role in the conspiracy.
Sentencing before U.S. District Judge Diana Saldaña has not yet been set, but at that time Delgado will face a minimum of five and up to 40 years in federal prison as well as a possible $250,000 maximum fine.
He was permitted to remain on bond that hearing.
The Drug Enforcement Administration, Immigration and Customs Enforcement’s Homeland Security Investigations and Border Patrol conducted the long-term Organized Crime Drug Enforcement Task Force investigation dubbed Operation Eagle Ford Tour. Assistant U.S. Attorneys Christopher dos Santos and Graciela R. Lindberg are prosecuting the case.
Justice Department Reaches $3 Million Settlement with Nissan Motor Acceptance Corporation for Violating the Servicemembers Civil Relief ActRead the Press Release
The Department of Justice announced today that Nissan Motor Acceptance Corporation (Nissan MAC) has agreed to pay $3 million to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA). The suit alleges that Nissan MAC repossessed 113 vehicles owned by SCRA-protected servicemembers without first obtaining the required court orders, and failed to refund up-front capitalized cost reduction (CCR) amounts to servicemembers who lawfully terminated their motor vehicle leases early after receiving military orders. This settlement is the Justice Department’s 10th settlement with an auto finance provider since 2015 and exemplifies continued efforts to enforce the SCRA’s motor vehicle repossession and lease termination provisions.
“Men and women in uniform risk their lives to serve our country, and Congress enacted the Servicemembers Civil Relief Act to protect them when they serve our nation,” said Assistant Attorney General Eric Dreiband of the Justice Department’s Civil Rights Division. “The U.S. Department of Justice will continue to enforce the Act vigorously in order to protect servicemembers and to ensure that all covered industries comply fully with the law.”
“The SCRA exists to offer protections to our military service members and to minimize undue financial burdens associated with deployments and other instances where our military servicemembers experience a profound and prolonged lifestyle change,” said U.S. Attorney Don Cochran, for the Middle District of Tennessee. “We will aggressively hold those institutions and businesses accountable who are required to comply with the Act. Our military deserves no less.”
The SCRA prohibits repossessing a motor vehicle from a servicemember during military service without a court order if the individual made a deposit or installment payment on the loan before entering military service. The SCRA also permits servicemembers to terminate motor vehicle leases early without penalty after entering military service or receiving qualifying military orders for a permanent change of station or to deploy. When servicemembers lawfully terminate motor vehicle leases, the SCRA requires that they be refunded all lease amounts paid in advance for a period after the effective date of the termination.
Nissan MAC is a Tennessee-based auto financing company that provides auto loans and leases for customers of Nissan and Infiniti.
Individuals who lease vehicles from Nissan MAC often contribute an up-front monetary amount at lease signing, in the form of a cash payment, credit for a trade-in vehicle, rebate, or other credit. A portion of this up-front amount can be applied to the first-month’s rent and certain up-front costs such as licensing and registration fees. The remainder, which is called the CCR amount, reduces the monthly payment the lessee must make over the term of the lease. The Department’s investigation revealed that when servicemembers terminated their motor vehicle leases early pursuant to the SCRA, Nissan MAC retained the entire CCR amount.
The agreement resolves a suit filed today by the Department of Justice in the United States District Court for the Middle District of Tennessee. It covers all repossessions of servicemembers’ vehicles and leases terminated by servicemembers since Jan. 1, 2008.
The agreement requires Nissan MAC to create a $2,937,971 settlement fund to compensate servicemembers whose rights were violated under the SCRA. Additionally, Nissan MAC must pay $62,029 to the United States Treasury.
The agreement also requires Nissan MAC to revise its policies and procedures to prevent future unlawful repossessions of servicemembers’ vehicles and ensure that servicemembers who terminate their auto leases early receive a full refund of all eligible pre-paid CCR amounts. NMAC must also provide training to its employees and representatives.
The Department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section in partnership with U.S. Attorneys’ Offices throughout the country. Since 2011, the Department of Justice has obtained over $474 million in monetary relief for over 120,000 servicemembers through its enforcement of the SCRA. The SCRA provides protections for servicemembers in areas such as evictions, rental agreements, security deposits, pre-paid rent, civil judicial proceedings, installment contracts, credit card interest rates, mortgage interest rates, mortgage foreclosures, automobile leases, life insurance, health insurance and income tax payments. For more information about the Department’s SCRA enforcement, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at http://legalassistance.law.af.mil/content/locator.php.
Jury Finds Mexican National Guilty of Being a Deported Alien Found in the United StatesRead the Press Release
SACRAMENTO, Calif. — A federal jury returned a guilty verdict today convicting Jose Elfego Gutierrez-Gomez, 36, a citizen of Mexico residing in Stockton, of being a deported alien found in the United States, U.S. Attorney McGregor W. Scott announced.
According to court documents and evidence presented at trial, Gutierrez-Gomez originally entered the United States without having obtained legal status. Then in 2008, he was convicted of methamphetamine trafficking and sentenced to five years in prison. Following his release from prison, he was removed from the United States. Gutierrez-Gomez subsequently illegally reentered the United States.
Gutierrez-Gomez came to the attention of Immigration and Customs Enforcement, and on December 21, 2018, he was arrested. A grand jury subsequently indicted him.
This case is the product of an investigation by Immigration and Customs Enforcement. Assistant U.S. Attorneys Shea J. Kenny and Katherine T. Lydon are prosecuting the case.
Gutierrez-Gomez is scheduled to be sentenced on Oct. 23 by U.S. District Judge Kimberly J. Mueller. Gutierrez-Gomez faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Judge Convicts Pittsburgh Man of Multiple Federal Drug and Gun Law ViolationsRead the Press Release
PITTSBURGH – Following a two-day non-jury trial, Jamiek Moore was convicted of multiple violations of the federal narcotics and firearms laws, including conspiracy to distribute heroin, possession with intent to distribute heroin, possession with intent to distribute marijuana, and two counts of possessing firearms in furtherance of a drug trafficking crime, United States Attorney Scott W. Brady announced today.
Moore, 23, of Pittsburgh, Pennsylvania, was tried before United States District Judge Reggie B. Walton in Pittsburgh, Pennsylvania.
According to Assistant United States Attorney Jerome A. Moschetta, who prosecuted the case, the evidence presented at trial established that on or about June 8, 2017, Moore conspired with others, including co-defendant Jaimere Dehonney, to distribute and possess with intent to distribute a quantity of heroin, and that Moore possessed firearms on that day in furtherance of a drug trafficking crime. The government’s evidence largely consisted of items seized by law enforcement pursuant to search warrants from a residence and vehicle utilized by Moore, Dehonney, and others, located on Yosemite Drive in Penn Hills, Allegheny County. That evidence consisted of quantities of heroin, large quantities of heroin packaging materials, approximately $28,000 in U.S. Currency, and two loaded firearms. The government further established that on May 15, 2017, at a residence located on Rhine Court, Moore possessed quantities of marijuana and heroin with the intent to distribute them, and that he possessed two loaded firearms that day in furtherance of a drug trafficking crime.
Judge Walton scheduled sentencing for Nov. 22, 2019 at 2 p.m. The law provides for a total sentence of not less than 10 years to a maximum of life in prison, a fine not to exceed $2,750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pittsburgh Police Department and the Penn Hills Police Department conducted the investigation that led to the prosecution of Jamiek Moore.
Jamie Lightfoot, Jr. Pleads Guilty to Running One of the Largest Drug Trafficking Organizations in Pittsburgh-Area HistoryRead the Press Release
PITTSBURGH – A leader of one of the largest Drug Trafficking Organizations to operate in the Pittsburgh area has pleaded guilty to federal narcotics and firearm charges, United States Attorney Scott W. Brady announced today.
Jamie Lightfoot, Jr., 27, formerly of Verona, PA (Penn Hills) pleaded guilty to one count of conspiracy to possess with the intent to distribute and distribute five kilograms or more of cocaine and one count of possession of a firearm in furtherance of a drug trafficking crime before Chief United States District Court Judge Mark R. Hornak. In all, Lightfoot, Jr. accepted responsibility for between 50 kilograms and 150 kilograms of cocaine. Judge Hornak scheduled sentencing for January 10, 2020 at 10:30 a.m. Lightfoot, Jr. has been detained since his initial appearance and will remain detained pending sentencing.
According to information presented to the court, from January 2015 to November 5, 2017, Jamie Lightfoot, Jr. conspired with others to import large quantities of cocaine and marijuana into Western Pennsylvania. The drugs would be driven to his Harvest Drive home from out of state in a Mercedes Sprinter ‘Sno Cold’ Van and eventually a large RV. Once the drugs came into Western Pennsylvania, Lightfoot and his co-conspirators would use his residence and other locations to break down, repackage, and distribute the drugs to co-conspirators in almost every region of Western Pennsylvania.
On November 5, 2017, an FBI and Pennsylvania State Police Task Force executed a search warrant at Lightfoot’s residence after the RV arrived at the location. The search netted 52 kilograms of cocaine and heroin, 85 pounds of marijuana, illegal steroids, three firearms, and nearly a million dollars in cash. Lightfoot, Jr. pleaded guilty to possessing of one of the firearms, which was found in the house, in furtherance of a drug trafficking crime. As part of his plea, Lightfoot, Jr. agreed to forfeit all of the US Currency seized at the house as well as any interest in his Harvest Drive residence.
The law provides for a combined maximum sentence of not less than 15 years in prison and up to a maximum of life and/or a fine of not more than $10,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Timothy M. Lanni and Shaun Sweeney are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police, with assistance from the South Strabane Police Department, the Elizabeth Borough Police Department, the Penn Hills Police Department and the Perryopolis Police Department, conducted the investigation that led to the Indictment in this case.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Illegal Alien Child Abuser Found Guilty of Illegally Reentering U.S.Read the Press Release
ALEXANDRIA, Va. – A Woodbridge woman who was recently convicted of aggravated sexual battery of a child family member was found guilty today of illegally reentering the United States.
“Terrazas Siles not only disregarded our immigration laws, she also sexually abused an innocent child while residing in the United States illegally,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “We are committed to prosecuting criminal immigration cases, especially when the illegal alien presents a serious danger to children and other vulnerable victims in our community.”
According to court records and evidence presented at trial, Lourdes Terrazas Siles, 39, is a native and citizen of Bolivia. Terrazas Siles had been previously removed from the United States in 2000, after she attempted to enter the United States with a fraudulent passport. Sometime thereafter, Terrazas Siles reentered the United States without permission to do so. She was found in the United States in August 2016, when she was arrested for felony aggravated sexual battery by a parent, step-parent, grandparent, or step-grandparent of a victim at least 13 but less than 18 years of age. She was convicted in Virginia on aggravated sexual battery charges in June 2017.
Terrazas Siles faces a maximum penalty of two years in prison when sentenced on October 11. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Lyle A. Boelens, Acting Field Office Director for U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) Washington, D.C., made the announcement after U.S. District Judge Leonie M. Brinkema found Terrazas Siles guilty after a bench trial. Special Assistant U.S. Attorney Anthony W. Mariano and Assistant U.S. Attorney Danya E. Atiyeh are prosecuting the case. This case was previously handled by Special Assistant U.S. Attorney Jessica Kraft.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-127.
Harrison County Man Sentenced to over Three Years in Prison on Federal Gun ChargesRead the Press Release
Gulfport, Miss. – Damion Xavier Giglio, 34, of Saucier, Mississippi, was sentenced today by U.S. District Judge Louis Guirola, Jr. to 41 months in prison, followed by three years of supervised release, for being an unlawful user of controlled substances in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Kirk Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Giglio was also ordered to pay a $5,000 fine.
On February 15, 2018, Harrison County Sheriff Deputies responded to a call regarding a shooting and found Giglio with a rifle. Giglio was out on bond for a prior aggravated assault charge and was taken into custody. He admitted to smoking marijuana since he was 16 years old and using methamphetamine.
On January 8, 2019, Giglio was charged in a federal indictment with possession of a firearm by a user of controlled substances. He pled guilty before Judge Guirola on April 1, 2019.
The Harrison County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. The case was prosecuted by Assistant United States Attorney Annette Williams.
Gulfport Man Pleads Guilty to Transporting Images of Minors Engaged in Sexually Explicit ConductRead the Press Release
Gulfport, Miss. – Jesse Allen Nichols, 37, of Gulfport, pled guilty today before Senior U.S. District Judge Louis Guirola Jr. to transporting images of minors engaged in sexually explicit conduct, announced U.S. Attorney Mike Hurst and Jere T. Miles, Special Agent in Charge of Immigration and Customs Enforcement’s Homeland Security Investigations in New Orleans.
“Dealing in sexually explicit videos of children is despicable. I appreciate the National Center for Missing and Exploited Children, our Homeland Security agents, trial attorneys from the U.S. Department of Justice, and our prosecutors for putting an end to this criminal’s evil trade. We will continue to work with our government and private sector partners to make sure all these types of deviants are brought to justice,” said U.S. Attorney Hurst.
In February 2018, Nichols transported images of minors engaging in sexually explicit conduct to “Dropbox”, on online storage medium, which resulted in the National Center for Missing and Exploited Children (NCMEC) issuing a CyberTipline Report to authorities at Homeland Security Investigations containing at least 56 videos of minors engaging in sexually explicit conduct. Further investigation revealed the email and user name of Nichols and it was determined that Nichols’s cell phone was used in transporting the images of the minors.
Nichols was indicted on December 12, 2018. When arrested on the indictment, Nichols admitted to the use of his cellular telephone to access various social media platforms and online storage mediums. He affirmed the use of his cellular telephone and the email identified in the CyberTipline Report, and that through such access on his cellular device he stored images and videos of child pornography.
Nichols will be sentenced by Judge Guirola on November 12, 2019, at 10:00 a.m. in Gulfport. He faces a maximum penalty of 20 years in prison and a $250,000 fine.
The case was investigated by Homeland Security Investigations. It was prosecuted by Assistant U.S. Attorney Andrea Jones and Trial Attorney Ralph A. Paradiso with the Department of Justice Criminal Division’s Child Exploitation and Obscenity Section.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the 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.
Fugitive Arrested in Norwich Pleads Guilty to Federal Gun ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that LEWIS CORWISE, 29, formerly of Norwich and New York City, pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to one count of possession of a firearm in furtherance of a drug trafficking crime.
According to court documents and statements made in court, on April 5, 2018, Norwich Police arrived at a Norwich residence to arrest Corwise, who had a warrant for his arrest in New York. Corwise attempted to run from police, resisted and was apprehended. At the time of his arrest, Corwise possessed a loaded Springfield xD-45 handgun, a zip lock bag containing nearly 60 grams of heroin, a small quantity of marijuana, a digital scale, five cellphones and other items.
Judge Dooley scheduled sentencing for October 24, 2019, at which time Corwise faces a mandatory term of imprisonment of at least five years.
Corwise has been detained since his arrest.
This investigation has been conducted by the Norwich Police Department and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins.
French National Indicted for Six Million Dollar Bank Fraud Scheme and for Lying in an Application for U. S. Government Insured LoansRead the Press Release
NEW ORLEANS – U.S. Attorney Peter Strasser announced today that GILES CASSE (“CASSE”), age 49, was charged on July 25, 2019 by a Grand Jury sitting in the Eastern District of Louisiana in a four-count indictment with violating Title 18, United States Code, Section 1344, Bank Fraud and Title 18, United States Code, Section 1014, False Statements to obtain a government insured loan.
In 2000, CASSE, a native of France, started a Houma, Louisiana based company, along with several other individuals, called GMD International which did business as “NOLATEK”. NOLATEK’s business model was the buying of used electronic testing parts, restoring the parts, and reselling them for a profit. CASSE maintained personal control of the company and applied for a series of loans, lines of credit and factoring agreements with banks in Louisiana and Texas. Two of the loans were backed by U.S. Government guarantors, such that if the loans were not repaid, the government was obligated to reimburse the banks up to 80% of the loan.
The indictment alleges two schemes victimizing three banks. The heart of the scheme was an inflated appraisal of NOLATEK’s inventory. CASSE hired an appraisal company to perform the economic evaluations, but CASSE provided undocumented estimates of NOLATEK’s inventory purchase costs. Specifically, the indictment alleges that CASSE fraudulently inflated the value of NOLATEK’s inventory that he provided to the appraiser. The indictment also alleges that although the initial appraisal valued NOLATEK inventory at over $21 million dollars in 2007, that same inventory was sold for approximately $64,000 in 2010.
The indictment further alleges that CASSE, on behalf of NOLATEK, presented an inflated and fraudulent appraisal in a loan guarantee application with the U.S. Department of Agriculture (U.S.D.A) for a $3,000,000 loan at Prosper Bank in Dallas, Texas. The false loan application was executed in Louisiana and transmitted to the Texas bank. NOLATEK defaulted on the loan in 2009. In 2010, the USDA paid $2,107,259 to make good on the loan guarantee. Prosper Bank suffered a loss of $900,000.
The indictment further alleges that in March 2009, CASSE, through another company controlled by him, Test and Measurement Rentals, LLC, obtained a $1,000,000 loan from First NBC Bank in New Orleans (FNBC). This loan was guaranteed by the Small Business Administration, a U.S. Government agency. CASSE again provided the fraudulent and grossly inflated inventory appraisals of the companies controlled by CASSE, as well as fraudulent invoices, as collateral.
CASSE also defaulted on this loan and caused the Small Business Administration to pay $774,041 to FNBC to honor its guarantee. FNBC suffered a loss of approximately $225,000 on the loan.
Finally, the indictment alleges that CASSE, through NOLATEK, entered into a factoring agreement with Gulf Coast Bank in New Orleans in May 2009. Factoring is a financial arrangement whereby a company sells its accounts receivables for immediate cash. In this type of arrangement, the business gets money more quickly and the financial institution gets a verifiable repayment. The indictment alleges that CASSE submitted fraudulent and fictitious invoices to cause Gulf Coast Bank to release money under its care and custody. CASSE presented more than thirty invoices claiming NOLATEK sold $1.3 million dollars of merchandise in July, August, and September 2009. In reality, NOLATEK sold only $17,200 of product in that period. CASSE defaulted on the factoring agreement and Gulf Coast Bank lost $2,000,000 as a result.
If convicted, CASSE faces a maximum term of imprisonment of thirty years per count, a maximum fine of $1,000,000 per count, a supervised release of five years and a mandatory special assessment of $100 per count and restitution to the banks and government agencies.
A Magistrate Judge in the Eastern District of Louisiana issued an arrest warrant for CASSE in 2017. The arrest warrant was forwarded to INTERPOL, which caused a “red notice” to be issued which would cause the arrest of CASSE if he used his French passport in international travel.
U. S. Attorney Strasser reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation and the Inspectors General of the Small Business Administration and the Department of Agriculture in investigating this matter. Assistant U. S. Attorney Carter K. D. Guice, Jr. is in charge of the prosecution.
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Fraudster Brought Back from Kenya to Face Jail Time for Stealing Almost $750,000 from UCSD through a Spear Phishing CampaignRead the Press Release
Assistant U. S. Attorney Alexandra F. Foster (619) 546-6735
NEWS RELEASE SUMMARY – August 1, 2019
San Diego – Amil Hassan Raage pleaded guilty to fraudulently receiving almost $750,000 as part of a spear phishing scheme. (Spear-phishing is when an unwitting victim responds to a bogus email, which the victim believes is from a trusted sender, and reveals confidential information to the fraudsters.)
On July 23, 2018, the University of California San Diego (UCSD) received a spear phishing email from a fraudulent Dell email account instructing UCSD to redirect its payments meant for Dell equipment and services to Raage’s Wells Fargo bank account in Minnesota. Believing that the email was from a legitimate Dell employee, UCSD followed the instructions and redirected payment.
The email actually originated from one of Raage’s co-conspirators in Kenya. From August 8 through September 12, 2018, UCSD sent Raage 28 payments totaling $749,158.37. Each time UCSD wired money to Raage’s account, Raage would promptly withdraw the money or transfer it to another account. When UCSD learned of the fraud, it halted payments.
UCSD was not alone. Raage and his co-conspirators perpetrated a similar scheme on another university, this one in Pennsylvania. Again, a co-conspirator in Kenya used a falsified Dell account to instruct the Pennsylvania university to redirect its Dell payments to a bank account in Minnesota again controlled by Raage. Over the month of January 2018, the Pennsylvania university wired six payments totaling $123,643.77 to Raage’s bank account before the university was alerted to the fraud and stopped payments.
After the bank froze Raage’s accounts, he fled to Kenya on September 22, 2018. Working with Kenyan law enforcement, the FBI’s Legal Attaché in Kenya, and the Department of Justice’s Office of International Affairs, Kenyan police arrested Raage on May 7, 2019, and extradited back to the United States on May 23, 2019, to face prosecution for his involvement in this theft.
“Modern criminals like Raage have ditched the ski mask and getaway vehicle and opted for a computer as their weapon of choice,” said U.S. Attorney Robert Brewer. “As this defendant has learned, we are matching wits with new-age thieves and successfully tracking them down and putting an end to their high-tech deception.”
“As exemplified by this outstanding result, criminals who operate in cyberspace falsely believe themselves to be beyond the reach of law enforcement, but they are sorely mistaken,” said FBI Special Agent-In-Charge Scott Brunner. “Our agents will relentlessly pursue justice, aided by our foreign partners. Thank you to the Kenyan National Police and the Office of International Affairs for their invaluable assistance in bringing Mr. Raage before the bar of justice.”
This type of spear phishing activity has been on the rise, especially for universities, local governments and other entities with procurement paperwork available on-line.
If you or your business or organization have been victimized by an email compromise scam, such as this one, it is important to act quickly. Contact your financial institution immediately and request that they contact the financial institution where the fraudulent transfer was sent. Next, call the FBI at 1-800-CALL-FBI and also file a complaint—regardless of dollar loss—with the FBI’s Internet Crime Complaint Center (IC3).
Raage’s sentencing is set for 8:30 a.m. on October 11, 2019, before U.S. District Judge Gonzalo P. Curiel.
DEFENDANT Case Number: 18CR4858-GPC
Amil Hassan Raage Age: 48
SUMMARY OF CHARGE
Conspiracy to Commit Wire Fraud, in violation of Title 18 United States Code, Sections 1349
Maximum Penalty: Twenty years in prison
AGENCIES
Federal Bureau of Investigation, San Diego Division
Kenya Police Service
Director of Public Prosecutions, Kenya
Legal Attaché, U.S. Embassy, Nairobi, Kenya
U.S. Department of Justice, Office of International Affairs
Former Sheriff of Philadelphia Sentenced to PrisonRead the Press Release
The former Sheriff of Philadelphia John Green, 72, of Philadelphia, Pennsylvania, was sentenced today to serve five years in prison followed by one year of supervised release, and ordered to forfeit $76,581 by U.S. District Judge Wendy Beetlestone of the Eastern District of Pennsylvania.
John Green was convicted of conspiring to defraud the citizens of Philadelphia of his honest services as Sheriff of Philadelphia by receiving and accepting a stream of hidden personal benefits from co-defendant James Davis in exchange for giving Davis millions of dollars of business at the Philadelphia Sheriff’s Office. From 2002 to 2011, Green accepted hidden bribes and kickbacks from his co-defendant Davis totaling over $675,000. The bribes and kickbacks that Davis gave to Green included: (1) a move-in ready home in Philadelphia for Green and his new wife in 2003, with rent-free living and then Green’s purchase of the home at a discount; (2) employment of Green’s new wife as a subcontractor when she started a new business in 2004, paying her over $89,000, and being the primary and at times sole employer of Green’s wife; (3) facilitation of over $65,000 in hidden campaign contributions to Green’s 2007 re-election campaign through others; (4) payment of over $148,000 in advertising for Green’s 2007 re-election campaign and falsely reporting the payments on the campaign finance reports; and (5) over $320,000 in payments to Green to assist him with the purchase of his retirement home in Florida in 2010. In exchange, Green gave his co-defendant Davis over $35 million of business at the Philadelphia Sheriff’s Office in the sale of homes at sheriff’s sales.
“Sheriff Green sold the business of his office for hundreds of thousands of dollars in bribes and kickbacks,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Today’s sentence holds him accountable for his near-decade-long betrayal of the public trust.”
“Public officials hold office to serve the public good, not to line their own pockets” said U.S. Attorney William M. McSwain for the Eastern District of Pennsylvania. “When public servants abuse their authority and flout the rule of law, they disgrace themselves and the offices they hold. That is what Green did here and he is now paying the price. Every public official should be on notice after today’s sentence: federal law enforcement is watching and we will hold you accountable to the law and to the public that you are supposed to serve.”
“This type of corruption erodes the faith of citizens in the city's ability to function and causes people to question the honesty, integrity and efficiency of how the city is run,” said City of Philadelphia Inspector General Amy L. Kurland. “This case was especially significant to the city and this sentence sends a strong message that we will not tolerate employees or officials using their positions to enhance their own wealth at the taxpayers’ expense.”
Green left office at the end of 2010, over one year before the expiration of his term, after the City of Philadelphia, Office of the Controller had issued an audit report in October 2010 expressing concern about potential irregularities with respect to the funds held by the Philadelphia Sheriff’s Office relating to Sheriff’s sales. The Controller’s Office hired Deloitte Financial Advisory Services, which conducted a forensic investigation of the Sheriff’s Office. Deloitte issued a report in October 2011 that revealed the extent of the hidden business that Green had given to co-defendant Davis. Deloitte provided its findings to the government. Green pleaded guilty in April 2019.
The case was investigated by the FBI, IRS Criminal Investigation, and the City of Philadelphia Office of Inspector General. Trial Attorney Jennifer A. Clarke of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Sarah L. Grieb and Christopher Diviny of the Eastern District of Pennsylvania prosecuted the case.
Former President of Investment Adviser Firm Sentenced and Former Comptroller Charged in Multimillion-Dollar Investment FraudRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that HECTOR MAY, the president of Executive Compensation Planners, Inc. (“ECP”), a registered investment adviser and financial planning firm located in New City, New York, was sentenced to 13 years in prison for participating in a conspiracy to defraud certain investment advisory clients (the “Victims”) out of more than $11 million. MAY was sentenced yesterday by United States District Judge Vincent Briccetti.
U.S. Attorney Berman also announced the return of an indictment charging VANIA MAY BELL, MAY’s daughter and former comptroller of ECP, with participating in the conspiracy to defraud certain investment advisory clients. She was arraigned this afternoon before U.S. District Court Judge Nelson S. Roman.
U.S. Attorney Geoffrey S. Berman said: “For more than two decades, May conceived and orchestrated a multimillion-dollar Ponzi scheme. His conduct was marked by extreme cunning, ruthlessness, and utter disregard for the well-being of his victims, including aging couples, close friends, relatives, and an employment pension plan.”
At the sentencing hearing, Judge Briccetti said that MAY is “a fraud and a thief,” and that his conduct was “appalling, reprehensible, and evil.”
According to the allegations in the Information to which MAY pled guilty, court filings, statements made in court, and the Indictment charging BELL[1]:
Since 1982, MAY was the president of ECP and provided financial advisory services to numerous clients. Since 1994, MAY was a registered representative of a broker dealer (“Broker Dealer-1”). In its role as a broker dealer, Broker Dealer-1 facilitated the buying and selling of securities for clients of Broker Dealer-1’s registered representatives, including clients of MAY. To that end, Broker Dealer-1 and associated clearing firms maintained securities accounts for ECP’s clients and, through those accounts, held ECP’s clients’ money, executed their securities trades, produced account statements reflecting activity in the clients’ accounts, and forwarded these account statements to ECP’s clients.
In order to obtain money from the Victims’ securities accounts with Broker Dealer-1, MAY advised the Victims, among other things, that they should use money from those accounts to have ECP, rather than Broker Dealer-1, purchase bonds on their behalf. He further represented that by purchasing bonds through ECP directly, the Victims could avoid transaction fees. Because MAY lacked the authority to withdraw money directly from the Victims’ accounts with Broker Dealer-1, he persuaded the Victims to withdraw the money themselves and to forward that money to an ECP “custodial” account (the “ECP Custodial Account”), so that he could use the money to purchase bonds on their behalf.
With the assistance of BELL, MAY guided the Victims, first, to withdraw their money from their Broker Dealer-1 accounts, and second, to send that money to the ECP Custodial Account by wire transfer or check. At times, MAY falsely represented that the funds being withdrawn from Victims’ Broker Dealer-1 accounts were the proceeds of prior bond purchases MAY had made. After the Victims sent their money to the ECP Custodial Account, MAY did not use the money to purchase bonds. Instead, MAY and BELL spent the money on business expenses, personal expenses, and to make payments to certain Victims in order to perpetuate the scheme and conceal the fraud.
Specifically, in some cases, MAY used Victims’ funds to make purported bond interest payments to other Victims. In other cases, MAY used Victims’ funds to make payments to other Victims who wished to withdraw funds from their accounts. MAY and BELL also created phony “consolidated” account statements that they issued through ECP and sent to the Victims. These “consolidated” account statements purported to reflect the Victims’ total portfolio balances and included the names of bonds MAY falsely represented that he purchased for the Victims and the amounts of interest the Victims were supposedly earning on the bonds. In order to create the phony consolidated account statements, MAY provided BELL with bond names and false interest earnings, and BELL created ECP computerized account statements and distributed them to the Victims.
To keep track of the money that the co-conspirators were taking from the Victims, BELL processed the Victims’ payments for the purported bonds, entered them in a computerized accounting program, and, through that program, kept track of how MAY and BELL received and spent the Victims’ stolen money. In this way, from the late 1990’s through March 9, 2018, MAY and BELL induced Victims to forward them more than $11,400,000.
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In addition to his prison term, MAY, 78, of Orangeburg, New York, was ordered to serve three years of supervised release, pay $8,041,233 in restitution, and forfeit $11,452,185.
BELL, 54, of Montvale, New Jersey, is charged with one count each of conspiracy to commit wire fraud and wire fraud. Each count carries a maximum sentence of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the U.S. Postal Inspection Service, Special Agents of the United States Attorney’s Office, and the Federal Bureau of Investigation. He also thanked the Securities and Exchange Commission, which initiated civil proceedings against MAY and BELL, for its assistance.
The criminal case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys Margery B. Feinzig and Vlad Vainberg are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment charging BELL and the descriptions of the Indictment constitute only allegations, and every fact described should be treated as an allegation.
Former Philadelphia Sheriff John Green Sentenced to Five Years in PrisonRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that former Philadelphia Sheriff John Green, 72, of Philadelphia, Pennsylvania, was sentenced today to sixty months’ imprisonment, one year supervised release, forfeiture of $76,581, and a $17,500 fine by United States District Court Judge Wendy Beetlestone.
Green pled guilty in April 2019 to conspiring to defraud the citizens of Philadelphia while serving as Sheriff by receiving and accepting a stream of hidden personal benefits from co-defendant James Davis, in exchange for giving Davis millions of dollars of business from the Philadelphia Sheriff’s Office.
From 2002 to 2011, Green accepted bribes and kickbacks from Davis totaling over $675,000. The bribes and kickbacks included: (1) a move-in ready home in Philadelphia for Green and his new wife in 2003; (2) employment of Green’s wife as a subcontractor when she started a business in 2004, paying her over $89,000; (3) facilitation of over $65,000 in hidden campaign contributions to Green’s 2007 re-election campaign; (4) payment of over $148,000 in advertising for Green’s 2007 re-election campaign and falsely reporting the payments on the campaign finance reports; and (5) over $320,000 in payments to Green to assist him with the purchase of his retirement home in Florida in 2010.
In exchange, Green gave his Davis over $35 million in business at the Philadelphia Sheriff’s Office through the sale of homes at Sheriff’s sales. Green left office at the end of 2010, over one year before the expiration of his term, after the City of Philadelphia, Office of the Controller, issued an audit report in October 2010 expressing concern about potential irregularities with respect to the funds from Sheriff’s sales held by the Philadelphia Sheriff’s Office. The Controller’s Office hired Deloitte Financial Advisory Services, which conducted a forensic investigation of the Sheriff’s Office. Deloitte issued a final report in October 2011 that revealed the extent of the hidden business that Green had given to Davis and provided its findings to the government.
“Public officials hold office to serve the public good, not to line their own pockets” said U.S. Attorney McSwain. “When public servants abuse their authority and flout the rule of law, they disgrace themselves and the offices they hold. That is what Green did here and he is now paying the price. Every public official should be on notice after today’s sentence: federal law enforcement is watching and we will hold you accountable to the law and to the public that you are supposed to serve.”
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigation, and the City of Philadelphia Office of Inspector General, and is being prosecuted by Assistant United States Attorneys Sarah L. Grieb and Christopher Diviny, and U.S. Department of Justice Trial Attorney Jennifer A. Clarke.
Former Lake City Ammunition Plant employee sentenced for fraud schemeRead the Press Release
KANSAS CITY, Mo. – A Buckner, Missouri, woman was sentenced in federal court today for a more than $160,000 embezzlement scheme while employed at the Lake City Ammunition Plant in Independence, Mo.
Brooke Brooks, 37, was sentenced by U.S. District Judge Howard F. Sachs to 18 months in federal prison without parole. The court also ordered Brooks to pay $163,493 in restitution.
On Jan. 18, 2019, Brooks pleaded guilty to stealing government property.
Lake City is a U.S. Army facility previously operated by Orbital Alliance Tech System, a defense system contractor. Brooks was employed by a company called Fastenal, a subcontractor for Orbital Alliance Tech System engaged in daily operations of the Lake City plant. Brooks was responsible for ordering materials and equipment for the plant.
Brooks admitted that, in her role with Fastenal, she over-ordered equipment – such as power washers, electric drills, and electric saws – paid for by Orbital Alliance Tech System. Brooks re-sold the excess equipment on Craigslist, Ebay, and to other employees working at Lake City. Brooks advertised these items to employees working at the Lake City plant by claiming that it was part of a Fastenal tool sale, where on occasion, the company ordered an excess of certain items and was selling them at discounted prices to reduce inventory. Because the items cost Brooks nothing, and were being sold at prices well under retail, she had no difficulty selling the items.
Brooks engaged in a variety of fraudulent practices to alter invoices for plant equipment, such as changing the description of products, deleting invoices, combining part numbers, and over-ordering. The federal government paid the amount reflected on the doctored invoice, but Brooks only delivered the actual quantity ordered by Orbital Alliance Tech System, thus leaving her with a surplus that she sold on the side.
Brooks fraud scheme resulted in a loss of $163,493. Her scheme was discovered when the plant’s security manager received a complaint from another Lake City employee that he hadn’t received the equipment he ordered from Brooks. The security manager then began an investigation and contacted the FBI.
This case was prosecuted by Assistant U.S. Attorney Brent Venneman. It was investigated by the FBI.
Former FCI-Berlin Chaplain Sentenced to 40 Months for Accepting Bribes to Smuggle Drugs into PrisonRead the Press Release
CONCORD - Joseph Buenviaje, 53, of Berlin, was sentenced to serve 40 months for accepting bribes from inmates and providing contraband in prison, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, Buenviaje began working as a chaplain at the Federal Correctional Institution in Berlin, New Hampshire in 2015. From April of 2018 until he was caught in November of 2018, Buenviaje smuggled drugs (including Suboxone, synthetic cannabinoids and marijuana) cellular telephones, tobacco, and other contraband into the prison in exchange for bribe payments. When interviewed by investigators in November 2018, Buenviaje admitted that he had been smuggling drugs and other contraband into the prison once or twice per week. In exchange, Buenviaje received over $52,000 in bribe payments.
Buenviaje received the contraband and some of the bribe payments by mail addressed to his ministry. Buenviaje received Suboxone—an opioid ordinarily prescribed to treat drug addiction—in its original packaging. Upon receipt, Buenviaje repackaged the drug in cellophane for distribution in the prison. Buenviaje also received notebooks with drug-soaked pages that he smuggled into the prison. After smuggling items he received into the prison, Buenviaje placed the contraband in a cabinet in the prison chapel where inmates would later retrieve the items.
In November 2018, on the day of his arrest, investigators found 111 Suboxone strips, some of which were in Buenviaje’s car and some of which were in Buenviaje’s chaplain office repackaged for distribution. Investigators also located multiple notebooks that Buenviaje had hidden in a cabinet in his office for an inmate. Some pages in the notebooks had been soaked with unlawful synthetic cannabinoids, specifically FUB-AMB and 5F-ADB. These drugs are known to cause serious side effects, including death.
Buenviaje previously pleaded guilty on April 30, 2019.
“This defendant’s conduct constituted a massive breach of trust,” said U.S. Attorney Murray. “The defendant sought to profit from his position as a prison chaplain by smuggling drugs and other contraband into a federal prison. These reprehensible acts endangered the safety of the inmates and staff at FCI-Berlin. The defendant deserves the substantial prison sentence that he received for his unlawful and unethical conduct.”
“While serving in his capacity as a chaplain, Buenviaje was supposed to provide religious counseling to inmates,” said Guido Modano, Special Agent in Charge, Department of Justice Office of the Inspector General, New York Field Office. “Instead, he devised a self-serving scheme to collect bribes in exchange for smuggling contraband, including dangerous drugs, into the prison, and he also utilized the prison chapel to carry out his scheme. He will fittingly serve time for his actions, which placed inmates, correctional officers, and other prison staff in harm’s way, and threatened the overall security of the prison facility.”
This matter was investigated by the U.S. Department of Justice Office of the Inspector General and FCI-Berlin’s Office of the Special Investigative Supervisor. The case was prosecuted by Special Assistant U.S. Attorney Matthew T. Hunter and Assistant U.S. Attorney Anna Z. Krasinski.
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Former Chief Executive Officer and Chief Financial Officer of Publicly Traded Company Charged with Accounting FraudRead the Press Release
Audrey Strauss, Attorney for the United States acting under authority conferred by 28 U.S.C. § 515 for the Southern District of New York, and Philip R. Bartlett, Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), announced today the unsealing of an Indictment in Manhattan federal court charging MICHAEL CARROLL and MICHAEL PAPPAGALLO, the respective former chief executive officer and chief financial officer of Brixmor Property Group (“Brixmor”), a publicly traded real estate investment trust (“REIT”), with fraud. Specifically, CARROLL and PAPPAGALLO were charged with securities fraud in connection with their participation in a scheme to fraudulently “smooth” a key metric reported in Brixmor’s public filings and used by the investing public to evaluate the financial performance of publicly traded REITs such as Brixmor. The case is assigned to U.S. District Judge Colleen McMahon.
MICHAEL CARROLL and MICHAEL PAPPAGALLO are expected to be presented later today before Judge McMahon in Manhattan federal court.
Deputy U.S. Attorney Audrey Strauss said: “As alleged, the most senior executives at Brixmor engaged in a years-long scheme to cook the books and deceive the investing public. When executives allegedly lie to the investing public about their company’s performance and thereby harm the integrity of the market, they must be held accountable.”
USPIS Inspector-in-Charge Philip R. Bartlett said: “By devising schemes to make Brixmor more appealing to the investing public, Carroll and Pappagallo not only committed criminal acts, their actions led them down a path of distrust from shareholders. The investing public depends on the veracity of information released by publicly traded companies and the U.S. Postal Inspection Service is devoted in protecting the integrity of this information.”
According to the allegations contained in the Indictment[1] unsealed today in Manhattan federal court and statements made in related court filings and proceedings:
Brixmor is a publicly-traded REIT headquartered in New York, New York. At all relevant times, Brixmor owned and operated hundreds of commercial shopping centers located in cities around the United States. From the time of its initial public offering in 2013 until 2015, MICHAEL CARROLL served as Brixmor’s chief executive officer, MICHAEL PAPPAGALLO served as Brixmor’s chief financial officer, Steven Splain served as Brixmor’s chief accounting officer, and Michael Mortimer served as a senior vice president for management accounting. As a publicly traded company, Brixmor was required to file, and filed, quarterly and annual reports with the U.S. Securities and Exchange Commission (the “SEC”) that were also available to the investing public. These reports contained important information regarding Brixmor’s financial performance for the relevant reporting period. As the respective CEO and CFO of the company, CARROLL and PAPPAGALLO were required to sign these reports and file certifications entitled “Certification of Periodic Report Under Section 302 of the Sarbanes-Oxley Act of 2002” that attested to, among other things, the veracity of Brixmor’s SEC filings. Brixmor, like many public companies, also filed, and otherwise released to the investing public, supplemental documents along with their periodic filings that provided additional representations regarding Brixmor’s performance and financial condition.
In addition to financial metrics governed by Generally Accepted Accounting Principles (“GAAP”), Brixmor, like many REITs, reported a non-GAAP metric related to its financial performance known as Same Store Net Operating Income (“SS-NOI”). SS-NOI measures the amount of income derived from a set group of properties (the “Property Pool”). In addition to SS-NOI, Brixmor also reported a metric that tracked the increase (or decrease) in SS-NOI (“SS-NOI Growth”) for a set group of properties between one period and the same period in the prior year. More specifically, SS-NOI Growth is derived from comparing SS-NOI in a particular reporting period (the “Current Period”) with SS-NOI in a past period, for example, the same quarter in the prior year, (the “Comparison Period”) for the same Property Pool. SS-NOI Growth was a key performance metric utilized by investors when assessing investments in publicly traded REITs such as Brixmor. Because of the importance of this metric, Brixmor also provided forecasts to the investing public on what it expected SS-NOI Growth to be for each annual reporting period, often narrowing that guidance over the course of a given year.
From 2013 through 2015, CARROLL and PAPPAGALLO regularly touted Brixmor’s consistent SS-NOI Growth from quarter to quarter and understood that the investing public paid significant attention to this metric. For example, on August 6, 2014, CARROLL stated during a quarterly earnings call for the second quarter of 2014 that Brixmor had “a steady state portfolio with a large same property pool that is delivering consistent organic growth. . . . As I said, we are consistent, transparent and easy to understand.” Similarly, on September 17, 2015, PAPPAGALLO spoke publicly at an industry conference in New York, New York, stating that “[S]ame-property NOI, which is certainly a metric which is looked at very, very carefully by REIT investors, it’s been at or above 3.4% for 12 quarters. Very consistent same-property NOI growth coming from our primary drivers.” CARROLL and PAPPAGALLO also understood that the investing public paid careful attention to whether Brixmor’s SS-NOI Growth fell within previously forecasted guidance for the year. For every quarter between the fourth quarter of 2013 and the third quarter of 2015, Brixmor’s reported SS-NOI that fell squarely within its forecasted guidance for the year.
In reality, however, Brixmor’s SS-NOI Growth was not as steady and consistent quarter over quarter as represented to the public, and instead fluctuated significantly – often outside the bounds of what Brixmor’s guidance was for the relevant year. From 2013 through 2015, however, CARROLL, PAPPAGALLO, Splain, and Mortimer engaged in a scheme to hide that volatility from the investing public and instead report SS-NOI Growth numbers each quarter that showed even growth and that always fell in line within the annual guidance. Rather than report the true results of their operations, CARROLL and PAPPAGALLO dictated where Brixmor’s reported SS-NOI Growth should land each quarter, and others, including Splain and Mortimer, carried out the necessary manipulation to reach those results.
CARROLL, PAPPAGALLO, Splain, and Mortimer engaged in this manipulation of SS-NOI Growth through three primary means. First, in quarters in which Brixmor generated more than enough income to meet the bottom, or in some cases middle, of its guidance range, it illicitly “stored” reportable income instead of immediately recognizing it, a deceptive practice often referred to as “cookie jar” accounting. In fact, certain Brixmor employees frequently referred to a particular account that was used to hold such income as the “cookie jar.” Brixmor employees then utilized that income in later quarters as necessary to inflate SS-NOI Growth in order to report the desired steady and smooth SS-NOI Growth to the investing public. For example, on April 6, 2015, PAPPAGALLO emailed Splain, Mortimer, and others to schedule a meeting “regarding same property NOI planning” the “objective” of which was “to try to make decisions on 1Q number – push a little or squirrel away stuff for 2Q & 3Q.”
Second, Brixmor reported in all of its public filings that it did not take lease termination income (“LSI”) into account when calculating SS-NOI. LSI is money that a tenant pays as a lump sum payment upon the early termination of a lease. Notwithstanding these representations, CARROLL, PAPPAGALLO, Splain, and Mortimer included some portion of LSI within SS-NOI when doing so helped show steady SS-NOI Growth or to meet guidance.
Third, CARROLL, PAPPAGALLO, Splain, and Mortimer at times removed payments that had been included in SS-NOI in a prior Comparison Period in order to the boost SS-NOI Growth for the current period. Because SS-NOI Growth effectively measures the SS-NOI change from one period to another, retroactively reducing the SS-NOI for a prior Comparison Period has the effect of creating a bigger spread to SS-NOI in the current period, thereby increasing the SS-NOI Growth metric for the current period. For example, after the close of the third quarter of 2015 but before reporting SS-NOI Growth for that period, CARROLL instructed certain Brixmor employees as to what SS-NOI Growth figures he wanted the company to show for the third and fourth quarters of the year. CARROLL, PAPPAGALLO, Splain, Mortimer, and others then went to work manipulating Brixmor’s SS-NOI Growth number for the third quarter, including by making multiple changes to the Comparison Period, in order to report the SS-NOI Growth number that had been pre-determined by CARROLL – a number that showed consistent growth over the year and was within guidance. Toward the end of these discussions, on October 6, 2015, PAPPAGALLO sent an email to Splain and Mortimer, stating “[Splain] and [Mortimer] LLC Bratwurst at its Finest,” to which Mortimer responded with an image of a man holding a batch of sausage.
As a result of these manipulations, Brixmor reported steady quarter-by-quarter SS-NOI Growth between 2013 and 2015 that consistently fell within the company’s public annual guidance. The below chart shows Brixmor’s reported SS-NOI Growth as compared to reported guidance:
The below chart shows the actual SS-NOI Growth figures absent manipulation:
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MICHAEL CARROLL, 51, of New York, New York, and MICHAEL PAPPAGALLO, 60, of Trumbull, Connecticut, were each charged in the Indictment with conspiracy to commit securities fraud and other offenses (Count One), securities fraud (Count Two), making false statements in filings with the SEC (Counts Three and Four); and filing false certifications (Counts Five and Six). The securities fraud, false filings charges, and false certification charges each carry a maximum prison term of 20 years. The charge of conspiracy carries a maximum prison term of five years.
Steven Splain, 57, of Cheshire, Connecticut, pled guilty on July 16, 2019, before United States District Judge Vernon S. Broderick to one count of conspiracy to commit securities fraud and to make false filings with the SEC, and one count of securities fraud. The conspiracy charge carries a maximum prison term of five years and the securities fraud charge carries a maximum prison term of 20 years.
Michael Mortimer, 49, of Yardley, Pennsylvania, pled guilty on July 10, 2019, before United States District Judge Valerie E. Caproni to one count of conspiracy to commit securities fraud and to make false filings with the SEC, and one count of securities fraud. The conspiracy charge carries a maximum prison term of five years and the securities fraud charge carries a maximum prison term of 20 years.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.
Ms. Strauss praised the investigative work of the U.S. Postal Inspection Service, and thanked the Federal Bureau of Investigation for its assistance. She also thanked the Securities and Exchange Commission, which has brought a civil action against the defendants.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Martin S. Bell, Daniel M. Tracer, and Rebecca Mermelstein are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment constitute only allegations, and every fact described should be treated as an allegation.
Five-Time Felon Sentenced to 10 Years in Federal Prison for Illegal Possession of AmmunitionRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Christopher Kofi Noble, 41, of Anchorage, was sentenced yesterday by Chief U.S. District Judge Timothy M. Burgess to serve 10 years in federal prison for being a felon in possession of ammunition. Noble was linked to five separate shootings in Anchorage during a three-month period of time. 10 years in prison is the maximum sentence for this crime.
According to court documents, Noble was originally charged with five counts of felon in possession of ammunition, representing five separate events where different types of .45 caliber ammunition were used from the same firearm. The Anchorage Police Department (APD) used the National Integrated Ballistic Information Network (NIBIN) in order to link the shell casings from the five shootings to the same firearm. The NIBIN system is a database that catalogues shell casings found at crime scenes and makes comparisons to other shell casings at other crime scenes. It allows the Anchorage Police to compare shell casings and determine if the same firearm was used on different occasions during different shootings.
The shootings where Noble possessed the firearm were an April 3, 2018, shooting where he shot at a female that owed him money; an April 18, 2018, shooting where he shot at an apartment building; a May 30, 2018, shooting where he shot at a man he had a verbal argument with; and a June 14, 2018, shooting where he handed a firearm to another man who shot and killed an individual. After a May 18, 2018, report of gunshots near the Sullivan Arena, APD found .45 caliber shell casings on a trail behind the Arena that matched the .45 caliber shell casings from the other four shootings. This type of ammunition or shell casings were found at each scene that all traced back to being shot from the same firearm.
Noble has five prior felony convictions out of Illinois, Indiana, and Alaska for crimes including assault, eluding law enforcement, and possession of cocaine. As someone convicted of a felony offense, Noble was prohibited from possessing firearms and ammunition.
“This case highlights the use of an important new technology – NIBIN,” said U.S. Attorney Schroder. “The U.S Attorney’s Office and our law enforcement partners, in this case ATF and APD, will use every tool at our disposal to bring dangerous armed criminals to justice.”
“NIBIN has proven to be an invaluable tool in the fight against crime,” said Anchorage Police Captain Josh Nolder, Commander of the Detective Division. “Thanks to NIBIN, we can now link seemingly random cases to one firearm and bring the individual behind that firearm to justice.”
“ATF is committed to working with our partners across the state to protect Alaskans from violent offenders like Mr. Noble, whose contempt for law and order led to his continued criminal use of firearms, placing the community at risk,” said ATF Seattle Field Division Special Agent in Charge Darek Pleasants. “Sentences like this one serve as a deterrent to others while removing a repeat violent offender from our streets.”
At the sentencing hearing, Judge Burgess noted that Noble has 28 prior criminal convictions, and had over 29 other arrests. Judge Burgess was concerned about protecting the public from the defendant due to his history of violent and assaultive behavior and the serious nature of the defendant’s conduct.
The Anchorage Police Department (APD) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Kelly Cavanaugh.
This case was made possible by investigative leads generated from ATF’s National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crime involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
Federal jury convicts northeast Louisiana couple for armed bank robbery spreeRead the Press Release
MONROE, La. – United States Attorney David C. Joseph announced today that a federal jury in Monroe convicted two northeast Louisiana residents for robbing three financial institutions at gunpoint and for multiple firearms violations. The verdict came in this afternoon following a four-day trial, which was presided over by U.S. District Judge Terry A. Doughty.
Lakendria Nicole Goings, 35, of Monroe, and David Ray Johnson, 36, of Winnsboro, Louisiana, were convicted of all counts submitted to the jury – two counts of bank robbery, one count of credit union robbery, and three counts of using, carrying, brandishing and discharging a firearm during a crime of violence. In addition, Johnson was found guilty of two counts of convicted felon in possession of a firearm.
“Today’s verdict brings justice for the victims of these armed robberies and reinforces my office’s resolve to assist those Louisiana communities that suffer under the menace of violent crime,” said David C. Joseph, U.S. Attorney for the Western District of Louisiana. “We cannot undo the terror these defendants caused during their rampage, but we can take solace that they have been held accountable by a jury of their peers, and will be spending substantial time in federal prison as a result of their crimes. I am thankful for the extraordinary efforts and teamwork of the federal and local law enforcement officers that investigated these crimes and those Franklin Parish Sheriff’s deputies who put their lives on the line to stop the defendants before anyone was hurt.”
Evidence presented at trial showed that Goings and Johnson’s spree began when they robbed the Guaranty Bank branch in Epps, Louisiana on November 10, 2017. The defendants entered the bank wearing hoodies to obscure their faces, and waiving semi-automatic handguns in the direction of customers and employees. Johnson stood at the entrance door acting as lookout and rear guard, while Goings directed the gun at the face of a bank teller, ordering the bank teller to fill a bag with money. The robbers left Guaranty Bank with approximately $17,307. After the robbery, Epps Police Department officers and West Carroll Parish Sheriff’s detectives found a cloth work glove worn by Johnson during the robbery, several rolls of coins, and a .40 caliber semi-automatic handgun, in a vacant lot close to the bank. DNA from the glove matched David Ray Johnson’s DNA, which was in a North Carolina DNA database as a result of Johnson’s 2012 felony conviction for financial card theft.
The second and third robberies occurred on November 27, 2017 (Barksdale Federal Credit Union in Cotton Valley, Louisiana), and December 18, 2017 (Winnsboro State Bank in Gilbert, Louisiana). On both occasions the defendants entered dressed in black, bulky hooded clothing with dark fabric covering their faces, waiving semi-automatic firearms at bank customers and employees and demanding money from the tellers. They left Barksdale FCU with $12,756, and Winnsboro State Bank with $28,447.
After the robbers left Winnsboro State Bank with a duffel bag full of money, Franklin Parish Sheriff’s deputies located the getaway car and began a high-speed chase with the defendants’ Toyota Sequoia, sometimes exceeding 100 mph. During the chase, Johnson, who was driving, pointed a semi-automatic handgun out of the driver’s window and fired several times at the deputies. The vehicle later crashed in a residential area in Winnsboro, Louisiana, and the defendants surrendered to authorities. Johnson exited the vehicle with a .40 caliber pistol in his hand, loaded with a round in the chamber and four live rounds in the magazine, which dropped to the ground as he submitted to arrest. This .40 caliber semi-automatic pistol was of the same make, model and caliber handgun that investigators found in the vacant lot near the Guaranty Bank robbery in Epps.
In the Sequoia, deputies found a duffel bag with $28,477 in cash, black clothing, hooded jackets, black fabric consistent with the masks worn during the robberies, and paper coin wrappers bearing handwritten account numbers belonging to Barksdale FCU customers. Officers also found a Double Star Brand, Model Star 15, .223-caliber semi-automatic AR-type rifle, which Johnson had just brandished in the Winnsboro State Bank robbery, loaded with a live round in the chamber and 27 rounds in a detachable magazine.
Goings and Johnson face seven years in prison for each count of using of a weapon during a crime of violence and 25 years in prison for each count of bank robbery. Johnson faces up to 10 years for discharging the weapon during the high speed chase, and he also faces up to 10 years in prison for the convicted felon in possession of a firearm counts. Judge Doughty set the sentencing date for David Ray Johnson on November 6, 2019, and for Lakendria Nicole Goings on November 7, 2019.
The FBI, ATF, Louisiana State Police, Franklin Parish Sheriff’s Office, East Carroll Parish Sheriff’s Office, Webster Parish Sheriff’s Office, Epps Police Department, Cotton Valley Police Department, and Winnsboro Police Department investigated the case, and the federal prosecution was greatly aided by District Attorney Mack Lancaster’s office, Fifth Judicial District of Louisiana. Assistant U.S. Attorneys J. Aaron Crawford and Brandon B. Brown prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. Project Safe Neighborhoods is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Federal Jury Convicts Marilyn Yvette Cook on Fraud ChargesRead the Press Release
[KNOXVILLE, TN] - Following a two-day trial in United States District Court, Knoxville, Tennessee, a jury returned a verdict of guilty, convicting Marilyn Yvette Cook (also known as Marilyn Yvette Powell), of Alcoa, of presenting a fictitious obligation to a financial institution and presenting a false claim to the United States.
Sentencing is set for December 3, 2019, at 10:00 a.m., in United States District Court in Knoxville, Tennessee. Cook faces a sentence of up to 25 years in prison and other possible penalties.
At trial, the jury heard testimony that, in October of 2017, Cook attempted to deposit a false “bill of exchange,” with a face value of $1 million, to the Regions Bank branch in Alcoa. In support of the “bill of exchange,” which had the appearance of a bank check, Cook presented fictitious documents purporting to show that she possessed Treasury bonds worth more than $100 billion. The jury also heard testimony that, in January of 2017, Cook filed a fraudulent federal tax return through which she sought a tax refund of more than $251,000. In addition, the jury heard testimony that Cook had been convicted in 2006 for multiple counts of defrauding the United States through false tax returns on which she fraudulently used the personal information of indigent individuals who purportedly received assistance from Cook’s faith-based organization, Sheep Ministries, Inc.
“The United States Attorney’s Office for the Eastern District of Tennessee applauds the jury’s verdict in this case against an individual seeking to defraud a bank by depositing non-existent funds into a bank account, and enriching herself at taxpayers’ expense by filing a false income tax return,” said U.S. Attorney J. Douglas Overbey. “Our office will continue to prosecute those who attempt to pass off such fraudulent documents in order to enrich themselves at the expense of others.”
Law enforcement agencies participating in the joint investigation which led to the indictment and subsequent conviction of Marilyn Cook included the U.S. Department of Treasury, Office of Inspector General, the Internal Revenue Service, U.S. Secret Service, and the Alcoa Police Department. Assistant U.S. Attorneys Frank M. Dale, Jr. and Jennifer Kolman represented the United States at trial.
Fairfield, Ohio Man Was Sentenced on Child Pornography ChargesRead the Press Release
A Fairfield, Ohio man was sentenced yesterday to 250 months’ imprisonment on charges of production of child pornography, announced United States Attorney Matthew Schneider.
Schneider was joined in the announcement by Acting Special Agent in Charge Jeffrey Downey, Federal Bureau of Investigation, Detroit Division.
Sentenced was James Coy Whitaker, Jr., 36.
According to court records, beginning in 2013 and continuing to April 2017, Whitaker enticed and persuaded a minor female to produce images and live stream videos of herself engaging in sexually explicit conduct. Whitaker met the minor female in an online social media chat room and conned the victim into sending him a nude image of herself, which he then used to threaten violence and embarrassment if she did not continue to send sexually explicit photos and videos of herself. This conduct began when the female victim was just 12 years old.
“The images sent to Whitaker are not merely pictures but are a permanent record of the sexual abuse and exploitation of a child,” stated United States Attorney Schneider. “I commend the work of the FBI and Michigan State Police Internet Crimes Against Children Task Force for their dedication to investigating crimes against children.”
This case was investigated by special agents with the FBI and the Michigan State Police Internet Crimes Against Children Task Force, It was prosecuted by Assistant United States Attorneys Christopher Rawsthorne and Ann Nee.
Eight People Arrested on Drug Distribution and Weapons Charges in North MississippiRead the Press Release
Tupelo, Miss. – A total of eight individuals are behind bars today following their arrest by federal, state and local law enforcement officers on federal drug trafficking and weapons charges in North East Mississippi. The FBI together with the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Attorney’s Office and Tupelo Police Department announced that the arrests were made on Tuesday and Wednesday following an extensive multi-year, multi-agency investigation.
The eight individuals currently in custody on federal drug trafficking charges include:
- Jeremy Mairidith, age 38, of Tupelo;
- Eiko T. Jones, age 42, of Waukegun, Illinois;
- Fernando Gonzalez, age 24, of Turlock, California;
- Stefanie K. Johnson, age 30, of Tupelo;
- Dmitri R. Kimble, age 35, of Atlanta, Georgia;
- Samuel Wilson, III, age 30, of Shannon;
- Desmonya Lewis, age 29, of Saltillo;
- Andraea Stovall, age 36, of Corinth.
In addition to drug trafficking charges, Mairidith, Johnson, and Wilson all face federal firearms charges.
Mairidith, Jones, and Gonzalez were first arrested on state drug trafficking charges on May 18, 2019, and have been held in custody since their arrest. On July 23, 2019, Mairidith first appeared in court on related federal drug trafficking charges. Mairidith appeared in court with his defense counsel on Monday for arraignment and a detention hearing on a federal indictment alleging that he was the head of a drug trafficking organization responsible for distributing methamphetamine and marijuana for multiple years in North Mississippi. After hearing testimony, U.S. Magistrate Judge Roy Percy ordered that Mairidith be detained without bond pending trial.
Jones and Gonzalez are scheduled to make their first appearance on the federal indictment on August 19. The remaining subjects are scheduled to appear on the indictment before a United States Magistrate Judge in the Northern District on Mississippi later this week. In addition, law enforcement officials indicated today that they expect additional arrests in this case in the near future.
The case was investigated by the FBI Jackson Division’s Oxford Resident Agency and the Bureau of Alcohol, Tobacco, Firearms and Explosives as a part of the Organized Crime Drug Enforcement Task Force (OCDETF) and Project Safe Neighborhoods programs, in partnership with state and local law enforcement. Agencies assisting with the investigation were the Tupelo Police Department, Lee County Sheriff’s Office, Corinth Police Department, Alcorn County Sheriff’s Office, United States Attorney’s Office for the Northern District of Mississippi, Mississippi Highway Patrol, Mississippi Bureau of Narcotics, North Mississippi Narcotics Unit, DEA, United States Postal Inspection Service, Mississippi Department of Corrections and the United States Marshals Service.
Following the arrests, Tupelo Police Chief Bart Aguirre emphasized the importance of this investigation, and praised the joint law enforcement efforts. “The combination of illegal narcotics and illegal weapons leads to violence in our communities. Tupelo Police Officers are constantly working to break this cycle of violence and a key part of our strategy is targeting these dealers who prey on our citizens,” remarked Aguirre. “I am proud of the men and women of our department who put themselves at risk on a daily basis pursuing individuals who engage in narcotics and weapons related crimes. We at TPD are also honored to work with other partner agencies at the local, state and federal level. It is only through these partnerships that we can be successful.”
Like Chief Aguirre, representatives from ATF reiterated their agency’s commitment to apprehending armed individuals who commit crimes in North Mississippi. “ATF, along with our federal, state, and local law enforcement partners will continue to focus our efforts on removing armed violent criminals from our streets,” said ATF New Orleans Field Division Assistant Special Agent in Charge William McCrary. "ATF and our partners remain committed to pursuing and bringing to justice those who seek to disrupt communities and harm law abiding citizens.”
The FBI likewise indicated its commitment to coordinated efforts like the instant one. FBI Special Agent in Charge Michelle A. Sutphin remarked: “The FBI’s commitment to our law enforcement partnerships and to the community continues to be at the forefront of our mission to keep our neighborhoods safe.”
U.S. Attorney William C. Lamar praised all of the agencies involved in the operation and the law enforcement initiatives that helped make this joint investigation possible. “As a part of Project Safe Neighborhoods and the OCDETF program, we are working closely with local, state and federal partners to apprehend violent armed offenders and to insure that our communities and streets are safer. We are committed to doing everything in our power to facilitate joint investigations and enforcement efforts like the one in this case so that those who choose to deal drugs or victimize others will be held accountable for their actions.”
The case is being prosecuted by AUSA Chad Doleac.
All charges are merely an accusation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Eagle Point Drug Trafficker Sentenced to 120 Months in Federal Prison for Distributing MethamphetamineRead the Press Release
PORTLAND, Ore.—Rodrigo Caro-Gonzalez, 35, a noted drug trafficker residing in Eagle Point, Oregon, was sentenced today to 120 months in federal prison and five years’ supervised release for conspiring to distribute methamphetamine and illegally possessing a firearm.
According to court documents, the U.S. Drug Enforcement Administration (DEA) began investigating Caro-Gonzalez in May 2016. A few months later, based on a tip, the Oregon State Police (OSP) stopped a car driven by one of Caro-Gonzalez’s associates carrying more than 30 pounds of methamphetamine. The investigation of Caro-Gonzalez continued when, in March 2017, a person believed to have obtained methamphetamine from Caro-Gonzalez was stopped with approximately 16 pounds of methamphetamine.
Later in March 2017, a confidential source met with Caro-Gonzalez and a third associate. The group arranged a drug deal. The deal never occurred, but the associate was arrested a few days later with more than five pounds of methamphetamine. The DEA then executed a search warrant at Caro-Gonzalez’s Eagle Point residence and seized $9,585, an AK-style firearm, a thirty-round magazine, a pistol and ammunition. Caro-Gonzalez admitted to being in the U.S. illegally, making his possession of the weapons unlawful.
On April 2, 2019, Caro-Gonzalez pleaded guilty to one count each of conspiracy to distribute and possess with the intent to distribute methamphetamine and possessing a firearm as an illegal alien.
This case was investigated by DEA, the Springfield Police Department, INET and OSP and prosecuted by Jeffrey Sweet, Assistant U.S. Attorney for the District of Oregon.
The 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.
Dominican National Pleads Guilty to Identity TheftRead the Press Release
BOSTON – A Dominican national pleaded guilty yesterday in federal court in Boston to Social Security fraud and aggravated identity theft.
Alejandro Yoel Diaz Diaz, 28, a Dominican national formerly residing in Lawrence, pleaded guilty to one count of false representation of a Social Security number and one count of aggravated identity theft. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Nov. 1, 2019.
On Aug. 1, 2017, Diaz Diaz applied for a Massachusetts identification card using the name, date of birth and Social Security number of a Puerto Rican born United States citizen. At the time of his arrest in April 2019, Diaz Diaz was on probation out of Lawrence District Court for distribution of heroin in the United States citizen’s identity. Diaz Diaz was identified, among other things, from a fingerprint match with a Dominican Republic identification document issued to him and bearing his photo.
The charge of false representation of a Social Security number provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison to run consecutive to any other term of imprisonment imposed, one year of supervised release and a fine of $250,000. Diaz Diaz will also be subject to deportation proceedings upon completion of his sentence. 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; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. Assistant U.S. Attorney Lindsey E. Weinstein of Lelling’s Major Crimes Unit is prosecuting the case.
District Man Found Guilty of First-Degree Murder in 2015 Killing of Southwest ManRead the Press Release
WASHINGTON – Gary Proctor, 41, of Washington, D.C., was found guilty by a jury today of first-degree murder while armed, possession of a firearm during a crime of violence, unlawful possession of a firearm, and carrying a pistol without a license, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Proctor was found guilty following a trial in the Superior Court of the District of Columbia. The Honorable Danya Dayson scheduled sentencing for December 13, 2019. Proctor faces a potential sentence of life in prison without parole.
According to the government’s evidence, on July 27, 2015, at approximately 4:40 p.m., Proctor entered the residence of the victim, Jerome “Beanie” Diggs, at 1360 First Street, SW, and fired 8 shots, striking the decedent 7 times. The defendant ran out of the house, leaving the victim for dead. But decedent managed to pick up the phone and call his sister, telling her that their cousin, “Little Gary” Proctor, had just shot him. When his sister asked why he didn’t call for help, he stated that he did not think he was going to make it, and he wanted someone to know what happened to him. The sister hung up with Beanie and instantly called 911, where she relayed what Beanie had told her. Meanwhile, Beanie, still clinging to life, crawled out the back door of his home where he was spotted by several neighbors who also called for help. One of these neighbors heard Beanie state “Lil Gary” was the person who shot him. Diggs lost consciousness shortly thereafter and died later that day from his wounds. Proctor was arrested pursuant to a warrant the very next day and has been held in custody ever since.
In announcing the verdict, U.S. Attorney Liu and Chief Newsham commended the work of those investigating the case from the Metropolitan Police Department (MPD). They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Melissa Jackson, John Timmer and Chrisellen Kolb; Supervisory Victim/Witness Services Coordinator Katina Adams-Washington; Victim/Witness Services Coordinator La June Thames; Victim/Witness Program Specialist Lesley Slade; Supervisory Security Specialists Laverne Perry, Tanya Via, and Wanda Queen; Administrative Services Specialist Karen Lee-Putt; Supervisory Paralegal Sharon Newman; Paralegals Kelly Blakeney and Meridith McGarrity; Victim Advocate Marcia Rinker; Supervisory IT Specialist Leif Hickling; Information Technology Specialist Jeanie Latimore-Brown; Interns Jared Andre and Jennifer Kenel; and Investigative Analyst Zach McMenamin.
Finally, they commended the work of Assistant U.S. Attorneys Jeffrey Nestler, who investigated the case, and Gilead Light and Alicia Long, who prosecuted the case.
Convicted Felon Wanted for Aggravated Assault in Valdosta Is Sentenced for Gun Crime in Federal CourtRead the Press Release
ALBANY – A Valdosta man with a violent criminal history in that community was sentenced in federal court today after admitting he illegally possessed a firearm, announced Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. Kenneth Diamond Fountain, 28, of Valdosta, Georgia previously entered a guilty plea to one count of Possession of a Firearm by a Convicted Felon and was sentenced on August 1, 2019 by U.S. District Judge Louis Sands to 70 months in prison, plus three years supervised release. There is no parole in the federal system.
According to his signed guilty plea, on April 5, 2018, Mr. Fountain was apprehended inside a vehicle on College Street in Valdosta, wanted on two violent felony warrants in Lowndes County, Aggravated Assault with a Deadly Weapon and Possession of Firearm or Knife during the Commission or Attempt to Commit Certain Felonies. Mr. Fountain was in possession of a semi-automatic handgun, loaded with a round in the chamber and rounds in the magazine. A loose round was also in the pocket of a backpack and two additional rounds of 9 mm ammunition were found in the driver’s door. Mr. Fountain admitted to purchasing the handgun two weeks prior from a criminal associate. Mr. Fountain was previously convicted of Assault with a Deadly Weapon in Lowndes County Superior Court.
“This week alone, three convicted felons with violent criminal histories in the Valdosta area faced federal-level consequences for illegally possessing firearms,” said U.S. Attorney Charlie Peeler. “Removing deadly weapons from known dangerous players in the Valdosta community is a priority for law enforcement, and we will hold convicted felons accountable for illegally possessing firearms. I want to thank the Lowndes County Sherriff’s office and the FBI for their partnership.”
The case is being prosecuted as 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. 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.
The case was investigated by the Lowndes County Sheriff’s Office and Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Julia C. Bowen. 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.
Collin County Man Arrested for Sending Threatening Social Media TextsRead the Press Release
PLANO, Texas – A 23-year-old Richardson, Texas man has been arrested for federal violations in the Eastern District of Texas announced U.S. Attorney Joseph D. Brown and FBI Special Agent in Charge Matthew DeSarno.
Rahul Ramesh Joshi was arrested on August 1, 2019, pursuant to a criminal complaint issued by the U.S. District Court charging him with sending threatening communications to injure another, in interstate commerce. Joshi will make an initial appearance today in Plano.
According to information presented in court, in December 2018, a federal law enforcement agent began investigating a complaint from a female Snapchat user. She allegedly received threatening messages on different messaging apps from several different user that all seemed to be connected. Further investigation revealed multiple victims in different states all receiving similar threatening messages. Forensic analysis of the messages led investigators to the defendant and determined Joshi had lived in Michigan before attending the University of Texas and eventually moving to Richardson, Texas.
“These were extreme messages, and no one should have to put up with that kind of nonsense,” said United States Attorney Joseph D. Brown. “Your freedom of speech does not extend to the point that you can threaten and intimidate others. We will stop that kind of abusive behavior.”
“The victims in this case were subjected to daily harassment and lived in a constant state of fear,” said Matthew DeSarno, Special Agent in Charge of the FBI Dallas Field Office. “We want to send the message that individuals cannot use social media to anonymously target innocent victims. The FBI and its law enforcement partners will continue working together to identify these individuals and hold them accountable for their actions.”
If convicted, Joshi faces up to five years in federal prison.
This case is being investigated by the Federal Bureau of Investigation’s Dallas Field Office, University of Pittsburgh Police Department, University of Texas Police Department, and Wellesley Police Department in Massachusetts.
It is important to note that a complaint, arrest, or indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
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Cincinnati Man Sentenced to 6 Years in Prison for Possessing Firearm in Furtherance of Drug Trafficking OffenseRead the Press Release
CINCINNATI – Rodney Anderson, 35, of Cincinnati, was sentenced in U.S. District Court to 72 months in prison for possessing a firearm in furtherance of a drug trafficking offense.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Jonathan McPherson, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Cincinnati Police Chief Eliot K. Isaac, announced the sentence handed down today by U.S. District Judge Timothy S. Black.
According to court documents, in July 2018, Narcotics Unit investigators with the Cincinnati Police Department were working overtime targeting citywide drug hotspots. While conducting surveillance near the 1600 block of Race Street, they observed Anderson in his vehicle. Anderson violated a traffic law at West Liberty and Elm streets.
During the traffic stop, officers discovered more than 60 bindles containing a detectable amount of fentanyl and a pistol.
Anderson pleaded guilty in January to possessing a firearm in furtherance of a drug trafficking offense.
U.S. Attorney Glassman commended the cooperative investigation by ATF and Cincinnati Police, as well as Assistant United States Attorney Anthony Springer, who is representing the United States in this case.
This case is being prosecuted as 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. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Chapmanville Man Sentenced to Seven Years in Prison for Federal Methamphetamine and Firearm OffensesRead the Press Release
CHARLESTON, W.Va. – A Chapmanville man was sentenced after pleading guilty to drug and firearm offenses, announced United States Attorney Mike Stuart. Courtney Edward Dalton, 39, was sentenced to seven years in prison for possession with intent to distribute methamphetamine and possession of a firearm in furtherance of drug trafficking. The case was investigated by the U.S. 119 Drug and Violent Crime Task Force and the Federal Bureau of Investigation (FBI).
“Dealing meth, carrying a gun,” said United States Attorney Mike Stuart. “It’s a sure way to end up in federal prison.”
On March 13, 2018, as part of an ongoing drug investigation, police stopped Dalton as he was driving on WV Route 10 in Harts, Lincoln County, West Virginia. Upon searching the vehicle, police found approximately 1.5 ounces of methamphetamine, marijuana, scales, and a loaded Taurus 9mm pistol. Dalton admitted that he intended to distribute the methamphetamine and that he carried the pistol in order to protect himself from being robbed of his drugs.
Assistant United States Attorney Joshua C. Hanks handled the prosecution. United States District Judge Joseph R. Goodwin imposed the sentence.
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California Couple Charged with Wire Fraud and Money Laundering in $7 Million Ponzi SchemeRead the Press Release
NEWARK, N.J. – A California couple was arrested today on charges of operating a $7 million advance fee Ponzi scheme, U.S. Attorney Craig Carpenito announced.
Jason M. Torres, 41, and Jordana Weber, 30, of Lake Tahoe, California, are charged by complaint with one count of wire fraud conspiracy and one count of money laundering. They are scheduled to appear today before U.S. Magistrate Judge Deborah Barnes in Sacramento, California, federal court.
According to documents filed in this case and statements made in court:
Between April 2017 and the present, Torres, Weber, and others owned and operated several shell companies – one of which employed individuals who lived in New Jersey and performed work while in New Jersey – that falsely purported to offer lending services to customers, typically small business owners seeking high value loans, often in excess of $100 million. As part of the scheme, Torres, Weber and others required customers to pay up to 5 percent of a potential total loan amount as a “fee” prior to the loan being funded.
After the victim’s “fee” was paid, the defendants and others would engage in a fake “due diligence” period, during which they frequently gave victims bogus explanations for why the funding of their loan was delayed. It was also common to provide the victims with falsified or fraudulent documents, including bank statements that purported to show that the shell companies had sufficient money to fund the loan.
Torres, Weber, and others used the “fees” paid by the victims for their daily living expenses, as well as for numerous lavish purchases, which included several luxury vehicles, high priced artwork, and vacations. The “fees” were also used to pay back previous victims of the fraud, in the manner of a traditional Ponzi scheme. To date, approximately six victims have been identified with a total of $7 million being transferred to bank accounts controlled by Torres, Weber, and others.
The wire fraud charge carries a statutory maximum of 30 years in prison and a $1 million fine. The money laundering charge carries a statutory maximum of 20 years in prison and a fine of not more than $500,000 or twice the value of the property involved, whichever is greater.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorney Anthony Torntore of the U.S. Attorney’s Cybercrimes Unit in Newark.
The charges and allegations in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Browning man admits strangulationRead the Press Release
GREAT FALLS – Browning resident Delwin Paul Calflooking, Sr., today admitted to strangling a woman earlier this year at his home on the Blackfeet Indian Reservation, U.S. Attorney Kurt Alme said.
Calflooking, 47, pleaded guilty to strangulation of a dating partner. He faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release.
U.S. District Judge Brian M. Morris presided. Sentencing is set for Nov. 14, 2019. Judge ordered Calflooking detained pending sentencing.
The prosecution said evidence would show that the victim had been drinking with Calflooking on May 6, 2019 at his residence when he began questioning her and strangled and assaulted her. The victim found herself on the ground with Calflooking’s hands around her neck and lost consciousness several times. The victim suffered fractured ribs, a broken arm and significant bruising.
Assistant U.S. Attorney Kalah Paisley is prosecuting the case, which was investigated by the FBI.
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Brookhaven Man Sentenced to over Three Years in Federal Prison for Illegally Possessing FirearmRead the Press Release
Natchez, Miss. – Lattrick Williams, 26, of Brookhaven, was sentenced today by U.S. District Judge David C. Bramlette III to 38 months in federal prison, followed by three years supervised release, for possession of a firearm by a convicted felon, announced U.S. Attorney Mike Hurst and Special Agent in Charge Kirk Thielhorn with the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Williams was also ordered to pay a $1,500 fine.
The case arose after an arrest warrant was executed by the United Stated Marshals Service on October 2, 2018 in McComb, Mississippi, in response to pending charges against Williams out of Lincoln County. Upon arrival, agents found Williams in possession of a Taurus .380 firearm. Williams has a previous conviction in Lincoln County for sale of marijuana and is prohibited from possessing a firearm.
On November 6, 2018, Williams was charged in a federal criminal indictment with being a felon in possession of a firearm. He pled guilty before Judge Bramlette on March 1, 2019.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Candace Mayberry.
Brazilian National Sentenced for Making False Statements Concerning Purported South Boston School ShootingRead the Press Release
BOSTON – A Brazilian national was sentenced yesterday in connection with sending a letter to U.S. Citizenship and Immigration Services (USCIS) that threatened an armed attack on a South Boston school in 2018.
Clebio P. De Lima, 43, a Brazilian national previously residing in Quincy, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to time served (23 weeks). De Lima will now face deportation to Brazil. In June 2019, De Lima pleaded guilty to two counts of making false statements to federal authorities.
In February 2018, USCIS’ Boston Office received an unsigned letter handwritten in Portuguese stating that an individual identified by the name of “Mario” was going to carry out an attack at a South Boston school. The letter stated that Mario had purchased two firearms and that he was looking to buy more. The letter concluded by stating, “I invite you to take action, I trust in you. Thank you for the great security of this country.”
Following an investigation, it was determined that the allegations in the letter were false, and that De Lima sent the letter to USCIS hoping that the federal government would arrest his ex-wife’s boyfriend. During a subsequent interview with law enforcement in September 2018, De Lima falsely denied any knowledge about the unsigned letter sent to USCIS.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Jason Molina, Acting Special Agent in Charge of the Homeland Security Investigations in Boston, made the announcement. The case was investigated by the FBI Boston Joint Terrorism Task Force. Assistant U.S. Attorney George P. Varghese of Lelling’s National Security Unit prosecuted the case.
Box Elder man admits to assaulting womanRead the Press Release
GREAT FALLS – Box Elder resident Ryan John Gardipee on July 31 admitted to assaulting and injuring a woman during an argument that began while they were out for the evening and continued at a residence on the Rocky Boy’s Indian Reservation, U.S. Attorney Kurt Alme said.
Gardipee, 23, pleaded guilty to assault resulting in substantial bodily injury to a dating partner. He faces a maximum five years in prison, a $250,000 fine and three years of supervised release.
U.S. District Judge Brian M. Morris presided and set sentencing for Nov. 14, 2019. Gardipee is detained pending sentencing.
The prosecution said in court records that on Dec. 8, 2018, Gardipee, the victim and another person were out drinking at a casino and then went to another business. An argument began between Gardipee and the victim and continued after they returned to the casino. At one point, Gardipee and the victim began to drive to a residence. Gardipee grabbed the victim’s head as she was driving, and she slammed on the brakes. When the car began moving again, Gardipee jumped out and returned to the casino. Fearing that Gardipee may have injured himself, the victim returned to the casino and the two left together for the residence. On the drive, Gardipee again grabbed the victim’s head and yelled at her to drive to the residence. At the residence, Gardipee assaulted and strangled the victim.
Assistant U.S. Attorney Jared Cobell is prosecuting the case, which was investigated by the FBI.
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Billings meth dealer sentenced to six years in prisonRead the Press Release
BILLINGS—A man who admitted selling methamphetamine in the Billings area was sentenced on July 31 to six years in prison and four years of supervised release, U.S. Attorney Kurt Alme said.
Albert Garcia, 48, hometown unknown, pleaded guilty in November to possession with intent to distribute meth.
Chief U.S. District Judge Dana L. Christensen of Missoula presided.
The prosecution said in court records that law enforcement received information in September 2017 that Garcia was selling meth in the Billings area. Agents worked with a confidential informant who made two controlled buys of meth, totaling about 26 grams, from Garcia.
Assistant U.S. Attorney Bryan Dake prosecuted the case, which was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Army Reservist Pleads Guilty to Participating in Money Laundering SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that EMEKA NNAWUBA, a/k/a “Benjamin Alabie,” who is a member of the United States Army Reserves, has pled guilty to participating in a scheme to launder the proceeds of frauds perpetrated against dozens of victims. NNAWUBA pled guilty today before United States District Judge Katherine Polk Failla, who will impose sentence on January 7, 2020.
U.S. Attorney Geoffrey S. Berman said: “Emeka Nnawuba admitted today that he received over $1 million from unsuspecting women in internet romance scams and laundered those proceeds to conceal their origin. Nnawuba callously preyed upon victims looking for companionship, only to come away as victims of theft. Nnawuba tried his luck in love and lost, as he now faces time in prison.”
According to the allegations in the Superseding Indictment and statements made in court:
From at least 2016 until 2018, NNAWUBA participated in a scheme to launder the proceeds of frauds perpetrated against dozens of victims. Among other things, NNAWUBA used false identities and false passports to open bank accounts, received or attempted to receive more than $2,000,000 in fraud proceeds, withdrew tens of thousands of dollars of fraud proceeds in cash, and transferred more than $1 million of fraud proceeds to bank accounts controlled by co-conspirators in an effort to conceal the source of funds.
The funds laundered by NNAWUBA were procured principally by (a) romance scams, in which members of the scheme trolled dating websites to find unsuspecting women and stole their money on false pretenses, and (b) business compromise scams, in which members of the scheme impersonated individuals, professionals, or businesses in the course of otherwise ordinary financial transactions, and then fraudulently induced the counterparties to those transactions to transfer funds to bank accounts controlled and operated by NNAWUBA or other members of the scheme.
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NNAWUBA, 29, of Fayetteville, Arkansas, pled guilty to one count of participating in a conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Five other individuals previously were charged and pled guilty in connection with their participation in the scheme.
On February 12, 2018, Ifeanyi Ezeji pled guilty to participating in a conspiracy to commit money laundering. On May 31, 2018, Judge Failla sentenced Ifeanyi Ezeji to 40 months in prison and three years of supervised release, and ordered him to forfeit $2,080,347.14 and pay restitution in the amount of $873,891.31.
On May 31, 2018, Christopher Ezeji pled guilty to passport counterfeiting. On October 4, 2018, Judge Failla sentenced Christopher Ezeji to five years of probation, and ordered him to forfeit $500.00 and pay restitution in the amount of $873,891.31.
On June 22, 2018, Peter Abbah pled guilty to aggravated identity theft. On October 2, 2018, Judge Failla sentenced Abbah to 24 months in prison and one year of supervised release, and ordered him pay restitution in the amount of $218,498.76.
On July 27, 2018, Michael Akhiero pled guilty to participating in a conspiracy to commit bank fraud. On April 22, 2019, Judge Failla sentenced Akhiero to seven months in prison and three years of supervised release, and ordered him to forfeit $600.00 and pay restitution in the amount of $143,192.99.
On January 11, 2019, Okechukwu Peter Ezika pled guilty to engaging in monetary transactions in property derived from specified unlawful activity. Ezika’s sentencing has not yet been scheduled.
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Mr. Berman praised the outstanding investigative work of the U.S. Secret Service, and thanked United States Immigration and Customs Enforcement’s Homeland Security Investigations for its assistance.
The prosecution is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Juliana N. Murray and Robert B. Sobelman are in charge of the prosecution.
Acoma Pueblo Man Pleads Guilty to Federal Child Sexual Abuse ChargesRead the Press Release
ALBUQUERQUE – Benedict Anthony Sena, 59, a member and resident of Acoma Pueblo, N.M., pleaded guilty in federal court in Albuquerque, N.M., on July 30, 2019, to a felony information charging him with two counts of abusive sexual contact of children under the age of 12 years. Sena was remanded into federal custody after entering his guilty plea.
Sena was arrested on Aug. 1, 2016, on an indictment that charged him with aggravated sexual abuse. According to the indictment, Sena sexually assaulted two children under the age of 12 years between Jan. 1, 2016 and Feb. 15, 2016, in Indian Country in Cibola County, N.M.
Sena entered his guilty plea under a plea agreement in which he admitted committing the two crimes charged in the felony information in Acoma Pueblo between Jan. 1, 2016 and Feb. 15, 2016. In his plea agreement, Sena admitted touching the two child victims, both under the age of 12 years, on their groins and buttocks to arouse and gratify his sexual desire.
Sena will remain in custody pending his sentencing hearing, which has yet to be scheduled. At sentencing, Sena faces a statutory maximum penalty of life imprisonment, and will be required to register as a sex offender.
The Acoma Agency of the BIA’s Office of Justice Services investigated this case with assistance from the Acoma Pueblo Tribal Police Department. Assistant U.S. Attorney Michael Murphy is prosecuting the case.
31 July 2019
“Camry Cruzin’ Bandit” Sentenced to 15 Years in Federal Prison for Stealing Approximately $479k from Multiple BanksRead the Press Release
In San Antonio today, a federal judge sentenced 42-year-old Dennis Edward Stephen of San Antonio, to 15 years in federal prison for robbing multiple San Antonio banks and stealing approximately $479,000, announced U.S. Attorney John F. Bash, F.B.I. Special Agent in Charge Christopher Combs, San Antonio Division, and San Antonio Police Chief William McManus.
In addition to the prison term, U.S. District Judge Xavier Rodriguez ordered that Stephen pay $442,284 restitution and be placed on supervised release for a period of three years after completing his prison term.
“The financial industry is critical to American capitalism. Today’s 15-year sentence makes clear that it ultimately doesn’t pay to target banks,” stated U.S. Attorney Bash.
On November 8, 2018, Stephen pleaded guilty to one count of bank robbery. By pleading guilty, Stephen admitted responsibility for eight different bank robberies in San Antonio and the surrounding area between November 14, 2013, and July 23, 2018. The robberies include:
- November 14, 2013; April 17, 2014; and September 19, 2014 – Frost Bank on Vance Jackson Rd. – approximately $37,604; $36,280; and $133,000 stolen, respectively;
- November 24, 2015 – Broadway Bank in Helotes, TX – approximately $11,323 stolen;
- June 16, 2016 – Frost Bank on Wurzbach Rd. – approximately $56,077 stolen;
- November 4, 2016; July 5, 2017; and July 23, 2018 – Frost Bank on N. Loop 1604 – approximately $67,000; $101,000; and $36,561 stolen, respectively.
According to court records, authorities dubbed Stephen the “Camry Cruzin’ Bandit” because he drove a Toyota Camry during his scheme and often wore the same attire while committing the robberies: blue jeans, a denim long sleeve button down shirt, a white t-shirt and a UTSA Roadrunners baseball cap covering his head, sunglasses and a surgical mask covering his face, and rubber surgical gloves covering his hands.
Authorities arrested Stephen on July 23, 2018, following the Frost Bank robbery. They were also able to recover the $36,561 he stole during that robbery. He has since remained in federal custody.
The F.B.I. together with the San Antonio Police Department investigated this case. Assistant U.S. Attorney Sarah Wannarka prosecuted this case on behalf of the Government.