Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
26 July 2019
Federal Grand Jury in Chicago Indicts Chinese Businesswoman on Charges of Visa FraudRead the Press Release
CHICAGO — A Chinese businesswoman has been indicted in Chicago on federal fraud charges for allegedly providing false verifications of employment for Chinese nationals seeking to stay in the United States on F-1 or H-1B visas.
WEIYUN HUANG, also known as “Kelly Huang,” 30, of Beijing, China, is charged with one count of conspiracy to commit visa fraud and five counts of visa fraud, according to an indictment returned Thursday in U.S. District Court in Chicago. Huang has been in federal custody since March after her arrest in the Northern District of California. Arraignment in federal court in Chicago has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI; and James M. Gibbons, Special Agent-in-Charge of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Chicago. The government is represented by Assistant U.S. Attorney Shoba Pillay.
An F-1 visa permitted a foreign national to study in the United States at a university or other academic institution. An F-1 visa-holder could extend the visa by participating in a program that required the student to obtain temporary employment in their area of study. An H-1B visa permitted U.S.-based employers to temporarily employ foreign nationals in specialty occupations. Foreign nationals with an H-1B visa were permitted to stay in the U.S. for three years, with the possibility of extending their stay to six years.
According to the indictment, Huang founded two companies – FINDREAM LLC and SINOCONTECH LLC – for the purported purpose of employing foreign nationals in the United States. Huang advertised Findream as a “startup company in technology services and consulting,” with clients in China and the U.S. Huang used a China-based website, “Chinese Looking for Job,” and a China-based WeChat platform, “Job Hunters of North America,” to advertise Findream and Sinocontech to F-1 visa-holders in the U.S. seeking employment and H-1B visas.
In reality, the companies did not deliver any technology or consulting services nor did they employ any of the individuals who responded to the advertisements, the indictment states. In exchange for a fee, Huang and the companies provided written proof of employment to their customers, knowing that the companies did not actually employ them, the charges allege. Huang, Findream and Sinocontech also provided false offer letters and verification of employment letters as purported evidence of employment, knowing the forms were bogus, the indictment states.
The fraud scheme allowed at least approximately 2,685 customers to list Findream or Sinocontech as their employer in order to stay in the U.S. on the visas, according to the indictment. Huang and her two companies received at least approximately $2 million from customers for whom they agreed to falsely certify employment, the indictment states.
Findream, which was incorporated in California, and Sinocontech, which was incorporated in Delaware, are also charged in the indictment. Findream is charged with one count of conspiracy to commit visa fraud and four counts of visa fraud, while Sinocontech is charged with one count of conspiracy to commit visa fraud and one count of visa fraud.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count of visa fraud is punishable by up to ten years in prison, while the conspiracy count carries a maximum sentence of five years.
Elm Grove man sentenced to 10 years in federal prison for trafficking pure methamphetamineRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced that Jonathon J. Hernandez, 39, of Elm Grove, Louisiana, was sentenced yesterday by Chief U.S. District Judge S. Maurice Hicks Jr., to serve 10 years in federal prison, followed by five years of supervised release, for possession with intent to distribute 381 grams of pure methamphetamine. The sentence will be served consecutive to a state imposed sentence that Hernandez received for a parole violation related to a firearms conviction in the 26th Judicial District Court, Benton, Louisiana.
On November 14, 2018, a Haughton Police Department officer conducted a traffic stop on Hernandez’s vehicle, near the intersection of Interstate 20 and Louisiana Highway 157, and discovered that he was operating an uninsured vehicle, was driving on a suspended driver’s license and had several past arrests for drugs and weapons offenses. Hernandez consented to a search of the vehicle, where the officer found a small baggie of methamphetamine, a gallon-sized bag containing more than 50 grams of methamphetamine, and other drug paraphernalia including a scale, a glass pipe, a syringe, propane torches and empty pill capsules. Hernandez later admitted to traveling to Dallas, Texas, to pick up one kilogram of methamphetamine and that he was transporting the drugs found in his vehicle.
Under federal law, certain drug charges carry mandatory minimum sentences. In this case, Hernandez possessed more than 50 grams of actual methamphetamine with the intent to distribute, which carries a mandatory minimum prison sentence of 10 years.
The DEA and Haughton Police Department conducted the investigation. Assistant U.S. Attorney Tiffany E. Fields prosecuted the case.
Elkins business owner admits to tax fraudRead the Press Release
ELKINS, WEST VIRGINIA – Rocky A. Tingler, of Elkins, West Virginia, has admitted to tax fraud, United States Attorney Bill Powell announced.
Tingler, age 54, owner of McWilliams Building & Construction in Elkins, pled guilty to one count of “False Statement on Personal Tax Return” and one count of “Failure to Pay Over Employment Taxes.” Tingler admitted to understating the gross receipts or sales on his 2015 individual tax return by more than $988,000. He also admitted to collecting $790 in federal income tax from his employees at the construction business when the amount should have been $25,706 during the third quarter of 2014.
Tingler faces up to three years incarceration and a fine of up to $250,000 for the false statement charge and faces up to five years incarceration and fine of up to $250,000 for the failure to pay charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Andrew R. Cogar is prosecuting the case on behalf of the government. The Internal Revenue Service Criminal Investigation investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Dubuque Meth User Sentenced to More Than Two Years in Federal Prison after Brandishing and Racking a Stolen FirearmRead the Press Release
A man who brandished and racked a stolen firearm during a disturbance outside an apartment complex in Dubuque, Iowa, in August 2018, was sentenced July 25, 2019, to over two years in federal prison.
Matthew Raymond Bills, age 35, from Dubuque, Iowa, received the prison term after a February 12, 2019, guilty plea to one count of possessing a firearm as a drug user.
In a plea agreement, Bills admitted he was in an argument with two other people outside an apartment complex in Dubuque on August 10, 2018. During the argument, Bills displayed a handgun and racked it in a threatening manner, causing a round to eject. When officers arrived at the scene, they found a live .380 round outside the apartment complex and confronted Bills. Bills told the officers he had hidden the firearm in a closet in a room in the apartment building, and officers later found a loaded Smith & Wesson M&P Bodyguard .380 ACP pistol in that location. The firearm was stolen in Platteville, Wisconsin, less than a month before the argument. Bills admitted he knew the firearm was stolen. Bills knew he was a methamphetamine user at the time of the incident, which made it illegal under federal law for him to possess a firearm. Bills had used marijuana on a daily basis since the age of 14 and had more recently begun using methamphetamine in an attempt to stop using marijuana. Bills has prior convictions for driving under the influence of marijuana and for possessing marijuana while fishing.
Bills was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Bills was sentenced to 30 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Bills is being held in the United States Marshal’s custody until he can be transported to a federal prison. The case was prosecuted by Assistant United States Attorney Tim Vavricek and investigated by the Dubuque Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-1003.
Follow us on Twitter @USAO_NDIA.
Doctor’s Office Manager Sentenced for Selling Oxycodone PrescriptionsRead the Press Release
NORFOLK, Va. – A Virginia Beach woman was sentenced today to more than seven years in prison and ordered to pay a $34,500 forfeiture judgment for conspiracy to distribute and possess with intent to distribute Oxycodone.
“Schemetti was forging prescriptions and selling them to a drug dealer,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “We will continue to prosecute medical staff and doctors who betray the public’s trust in the medical profession by engaging in illegal drug diversion.”
According to court documents, Jessica L. Schemetti, 34, was working at a medical practice in Virginia Beach. In December 2016, Schemetti began forging prescriptions and by March 2017 she was selling those forged prescriptions to another Virginia Beach drug dealer for $500 per prescription. The Virginia Beach drug dealer supplied Schemetti with names to use on the prescriptions. By August 2017, the doctor became aware of Schemetti’s forgeries, but was dishonest with law enforcement when confronted in order to cover for Schemetti. The doctor, Jim-David Gaglione, was also prosecuted. Schemetti continued to write these prescriptions in exchange for payment into early 2018. In all, Schemetti wrote prescriptions for over 5,000 Oxycodone pills, over 4,000 amphetamine pills, and over 500 Xanax pills.
The doctor, Jim-David Gaglione, pleaded guilty to distribution of amphetamine and was sentenced to two and half years in prison in November 2018.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, and James A. Cervera, Chief of Virginia Beach Police, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen. Assistant U.S. Attorney Kevin Hudson prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-1.
District Man Sentenced for Stabbing and Beating Girlfriend, Then Trying to Get Her to Drop the CaseRead the Press Release
WASHINGTON – Preston Fultz, 45, of the District, was sentenced today to thirty (30) months in prison for stabbing and beating his former girlfriend in Northeast Washington, and then trying to get her to drop the case against him, U.S. Attorney Jessie K. Liu announced today. Fultz was sentenced by the Honorable Todd E. Edelman. Once Fultz is released from prison, he will be on supervised release for three (3) years.
Fultz pleaded guilty in May 2019 to assault with a dangerous weapon – knife, assault with significant bodily injury and felony contempt of court. According to the government’s evidence, on November 5, 2018, during an argument with his then-girlfriend, he stabbed her in the thigh with a pocket knife. Then, on February 28, 2019, he hit her in the face with such force that her eyes swelled shut and she had to be hospitalized overnight at Medstar Washington Hospital Center so that ophthalmologists could try to assess the damage to her eyes. As a result of the beating, the woman had vision problems that lasted for at least several months. After his arrest on March 1, 2019, Fultz wrote a note to a friend, encouraging the friend to try to get another woman to persuade the victim to drop the case against him, even though the Court had previously ordered Fultz to have no contact – directly or indirectly – with the victim while the case was pending. Fultz’s note was found by Marshals when they searched the defendant as he was being transported from the D.C. Jail to the Superior Court.
In announcing the sentencing, U.S. Attorney Liu commended the work of the Sexual Assault Unit of the Metropolitan Police Department, the staff at Medstar Washington Hospital Center, and the District of Columbia Department of Forensic Sciences. She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Paralegal Specialist Brenda C. Williams; Supervisory Victim Witness Service Coordinator Katina Adams-Washington; and Victim/ Witness Advocate Meshall Thomas.
Finally, U.S. Attorney Liu commended the work of Assistant U.S. Attorneys Grace B. Richards and Peter V. Taylor, who investigated and prosecuted this case.
District Man Pleads Guilty to Possessing Loaded Firearm While Trafficking NarcoticsRead the Press Release
WASHINGTON – Thomas Washington, 66, of Northeast, D.C., pled guilty today to possessing a firearm in furtherance of his drug trafficking, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Washington pled guilty before the Honorable Randolph D. Moss in the U.S. District Court for the District of Columbia to one count of possession of a firearm in furtherance of a drug trafficking offense. Washington faces a mandatory minimum of five years of incarceration and up to life imprisonment. Judge Moss scheduled Washington’s sentencing for October 11, 2019.
According to the government’s evidence, on July 8, 2018, members of MPD’s Narcotics and Special Investigations Division observed Washington conducting hand-to-hand drug transactions. After arresting Washington, where he possessed a stun gun and $3,067, MPD officers executed a search warrant at Washington’s residence that was located in the 4900 block of Nash Street, Northeast. During the execution of the search warrant, MPD officers recovered a High-Point model CF380 semi-automatic handgun in the dresser of the bedroom. The firearm was loaded with nine rounds of ammunition. Officers also recovered 6.5 grams of crack, a plate with residue, empty ziploc baggies, a digital scale, and $13,253.00.
When Washington was arrested for trafficking narcotics and possessing a firearm in the present case, he was on supervision with the U.S. Parole Commission following a 2012 D.C. Superior Court felony drug trafficking conviction. Washington also had two additional prior drug trafficking convictions and a prior involuntary manslaughter conviction.
In announcing the plea, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case. They also cited the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Paralegal Specialist Candace Battle, Legal Assistant Peter Gaboton, and Assistant U.S. Attorney Christopher Macchiaroli of the Violent Crime and Narcotics Section, who conducted the underlying investigation, indicted the case, and prosecuted the defendant.
Detroit Man Convicted of Conspiring to Distribute Opioids and Distribution of Fentanyl Resulting in DeathRead the Press Release
LEXINGTON, Ky. - A Detroit man was convicted late yesterday, by a federal jury sitting in Lexington, of conspiring to distribute both oxycodone and fentanyl and distribution of fentanyl resulting in an overdose death.
After approximately four hours of deliberations following a four-day trial, the jury convicted 43-year old Shannon D. Hixon of conspiring to distribute pills containing oxycodone and fentanyl and distribution of fentanyl resulting in the overdose death of K.F.
According to the evidence at trial, Hixon supplied thousands of Oxycodone 30 mg tablets to two individuals in Lexington, which were then transported to Morehead (Rowan County) and Salyersville (Magoffin County), Kentucky, and sold to lower-level dealers and users. Additionally, the testimony established that Hixon supplied heroin and fentanyl to a group of users in Lexington. This included supplying a lethal quantity of fentanyl to a middle man, who then distributed it to K.F., an Army veteran in rehab, causing the overdose death.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; D. Christopher Evans, Special Agent in Charge, DEA Louisville Field Division; Chief Derrick Blevins, Morehead Police Department; and Chief Lawrence Weathers, Lexington Police Department, jointly announced the jury’s verdict.
The investigation was conducted by the DEA, Morehead Police Department, and the Lexington Police Department. The United States was represented in the case by Assistant U.S. Attorney Roger W. West.
Hixon is scheduled to appear for sentencing on November 8, 2019. He faces a minimum of 20 years and a maximum of Life in prison. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal statutes before imposing a sentence.
DACA Recipient Loses Status after Transporting Illegal AliensRead the Press Release
LAREDO, Texas – A 22-year-old Mexican national living in Laredo has been ordered deported following his conviction in a multi-agency, high-speed pursuit, announced U.S. Attorney Ryan K. Patrick.
Jose Yepez-Vega pleaded guilty April 29, 2019, to three counts of transporting an undocumented alien within the United States for financial gain, causing risk of serious bodily injury or death as well as one count of conspiracy.
Today, U.S. District Judge Diana Saldaña noted Yepez-Vega’s status as a recipient of the Deferred Action for Childhood Arrivals (DACA) policy has been revoked and he is to be deported back to Mexico. At the hearing, the court warned him to not come back to the United States.
On July 21, 2018, law enforcement agents observed a vehicle exit Interstate Highway 35 in an attempt to circumvent the checkpoint located at mile marker 29 north of Laredo. Yepez-Vega was driving. Authorities attempted to perform a traffic stop, but the vehicle failed to yield. More officers from various jurisdictions pursued the vehicle for more than 50 miles on Interstate 35. The fleeing vehicle exceeded speeds of 130 miles per hour before eventually losing control and pulling off the highway.
Authorities arrested Yepez-Vega, identified as a Mexican national and DACA recipient.
Three undocumented aliens from Mexico were located in his vehicle. All three admitted to paying between $4,000 - $6,000 to be smuggled into the United States and on to their final destinations of Texas, Wisconsin and Pennsylvania.
Yepez-Vega was sentenced to more than a year, his time in custody since his arrest.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Border Patrol, Encinal Police Department, La Salle County Sheriff’s Office and the Texas Department of Public Safety. Assistant U.S. Attorneys Graciela Lindberg and Jennifer Day prosecuted the case.
D.C. Man Plead Guilty for 2006 Sexual Assault of Woman in Northwest D.C.Read the Press Release
WASHINGTON – Harold Luckett, 52, of the District of Columbia, plead guilty today for sexually assaulting a woman in November 2006, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Luckett plead guilty to one count of first-degree burglary and one count of first-degree sexual abuse before the Honorable Milton C. Lee. Sentencing is scheduled for September 6, 2019. The plea, which is contingent upon the Court’s approval, calls for a 15-year prison term. Luckett also will be required to register as a sex offender for life.
According to the government’s evidence, on November 10, 2006, at approximately 10:45 a.m., Luckett entered the victim’s apartment in the Woodley Park neighborhood of Washington D.C. Luckett was a stranger to the victim. Luckett pushed the victim to the floor and physically and sexually assaulted her. The victim yelled and fought back vigorously and, at some point, the defendant fled the apartment. The victim immediately called 911, and members of the Metropolitan Police Department responded promptly. In connection with the investigation, crime scene technicians clipped the victim’s fingernails for possible DNA evidence, and recovered the assailant’s baseball cap, which had fallen off during the struggle.
Luckett was identified as the perpetrator of this offense through a forensic match to the DNA profile that was developed from forensic testing of the baseball cap and the victim’s fingernail clippings. On January 17, 2018, the defendant was indicted on these charges and related offenses.
In announcing the plea, U.S. Attorney Liu and Chief Newsham commended the work of MPD officers and detectives of the Second District, the K-9 Unit and the Sexual Assault Unit, and the continued efforts of detectives with the Cold Case Sexual Assault Unit. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including paralegals Tiffany Fogle and TJ McPhail.
Finally, they expressed appreciation for the work of Assistant U.S. Attorney Amy Zubrensky, who investigated and prosecuted the case.
Criminal Defense Attorney Sentenced to 60 Days of Confinement, Four Years of Probation, 80 Hours of Community Service, and Fined $2,000 for Making False Statements to the U.S. Bureau of PrisonsRead the Press Release
Earlier today, in federal court in Brooklyn, a criminal defense attorney, Scott Brettschneider, was sentenced by United States District Judge Carol B. Amon to 60 days of confinement in a community center, 4 years of probation, 80 hours of community service, and fined $2,000 for conspiring to make, and making, a false statement to the U.S. Bureau of Prisons (BOP). Brettschneider was convicted following a five-day jury trial in April 2019 for his role in writing a false letter to the BOP to assist an inmate to gain entry to a substance abuse program and thereby obtain an early release from prison.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.“Brettschneider has now been held accountable for breaking the law he had been sworn to uphold,” stated United States Attorney Donoghue. “This Office is committed to prosecuting those who defraud federal programs.” Mr. Donoghue extended his grateful appreciation to the FBI, which led the investigation, and thanked the Queens District Attorney’s Office for their assistance in the case.
Brettschneider and two co-defendants agreed to prepare and submit a fraudulent letter to the BOP about the drug treatment history of inmate Richard Marshall - Brettschneider’s client and a source of client referrals. If successful, their scheme would have resulted in Marshall’s gaining entry to the Residential Drug Abuse Program in prison, and potential early release from custody. Brettschneider tasked his part-time paralegal, Reginald Shabazz-Muhammad, with the job of writing the fraudulent letter, and co-defendant Charles Gallman acted as the middleman between Marshall and Brettschneider.Marshall pleaded guilty to conspiracy to make false statements, and was sentenced on October 6, 2018 to three years’ probation and a fine of $1,500. Shabazz-Muhammad pleaded guilty to making false statements, and was sentenced on January 30, 2019 to two years’ probation and a fine of $1,000. Gallman pleaded guilty to conspiracy to make false statements and to violating the Travel Act for bribing a witness, and was sentenced on March 20, 2019 to three years’ imprisonment.
The government’s case is being handled by the Office’s Organized Crime & Gangs Section. Assistant United States Attorneys Andrey Spektor, Lindsay K. Gerdes and Margaret Gandy are in charge of the prosecution.
The Defendant: SCOTT BRETTSCHNEIDER (also known as “Mighty Whitey”)
Age: 62
Mint Hill, North Carolina
Defendants Who Previously Pleaded Guilty and Were Sentenced: CHARLES GALLMAN (also known as “T.A.”)
Age: 57
Queens, New York
RICHARD MARSHALL (also known as “Love”)
Age: 57
Charlotte, North Carolina
REGINALD SHABAZZ-MUHAMMAD
Age: 63
Queens, New York
E.D.N.Y. Docket No. 18-CR-123 (CBA)Convicted Felon Pleads Guilty to Gun and Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Lattrell Terry, 35, of Rochester, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to possession with intent to distribute fentanyl, and possession of firearm with altered, obliterated or removed serial number. The charges carry a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Matthew T. McGrath, who is handling the case, stated that on November 20, 2018, Monroe County Probation Officers performed a routine search of the defendant’s residence located at 92 Rexford Street in Rochester. Terry was on probation following his conviction on a drug charges in Rochester City Court.
The defendant led the probation officers to his bedroom. During their search, officers located what appeared to be a bundle of heroin and/or fentanyl, ammunition, approximately $3,316 in United States currency, and numerous new and unused baggies commonly used to package controlled substances for individual sale. As a result, investigators applied for a search warrant.
The search warrant was executed later that day at which time officers found approximately 566 individually packaged baggies of fentanyl, as well as several larger bags of fentanyl. Law enforcement also found approximately 14 grams of cocaine, numerous new and unused baggies commonly used to package controlled substances for individual sale, and other paraphernalia associated with the illegal sale of controlled substances. Also found was a 9mm semi-automatic pistol, loaded with 15 rounds in a magazine and 1 round in the chamber of the firearm. The firearm was reported stolen out of Florida in 2016. The serial number had numerous scratches across its surface, constituting an altered and obliterated serial number.
The plea is the result of an investigation by the Rochester Police Department, under the direction of Chief La’Ron Singletary; the Monroe County Department of Probation, under the direction of Chief Probation Officer Larry Mattle; and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
Sentencing is scheduled for October 30, 2019, at 10:30 a.m. before Judge Wolford.
# # # #
Columbus Man Sentenced to 10 Years in Prison for Stealing More Than 35 Vehicles and Selling Their PartsRead the Press Release
COLUMBUS, Ohio – A Columbus man was sentenced in U.S. District Court today to 120 months in prison for stealing at least 35 vehicles and earning more than half a million dollars by selling their parts.
James A. Imes, 50, was sentenced today for operating a chop shop, trafficking in motor vehicle parts, removing or altering vehicle identification numbers and releasing refrigerant chemicals into the environment.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Ohio Attorney General Dave Yost, Ohio Environmental Protection Agency Director Laurie A. Stevenson and Franklin County Prosecutor Ron O'Brien announced the sentence handed down today by Senior U.S. District Judge James L. Graham.
According to court documents, from January 2013 until April 2014, Imes stole at least 35 vehicles to dismantle them and sell their parts throughout the Midwest, earning $10,000 to $15,000 per week. He and his associates operated chop shops in three locations on the West side of Columbus to traffic the car parts.
Imes told investigators he was renting three separate garage spaces and running a business “disguised as a diesel mechanic shop, but it’s obviously not.” He said the true purpose of the business was to “cut up stolen trucks.”
Two of the vehicles were kept for personal use, and the rest were sold as parts or scrap to salvage yards. More valuable parts were sold on Craigslist through posts advertised in cities across Ohio, Indiana, Kentucky, Pennsylvania, Michigan and West Virginia.
During the destruction of the vehicles, HCFC refrigerant chemicals were released into the atmosphere when vehicle air conditioning tubes were cut.
U.S. Attorney Glassman commended the cooperative investigation by the Ohio Bureau of Criminal Investigation (BCI) and Ohio EPA Special Investigations Unit, as well as the assistance from the Franklin County Sheriff’s Office, Columbus Division of Police Auto Theft Unit and Ohio State Highway Patrol Theft and Fraud Unit. Assistant United States Attorneys Jonathan J.C. Grey and J. Michael Marous and Special Assistant United States Attorney Heather Robinson are representing the United States in this case.
###
Colorado Tax Defier Convicted of Tax EvasionRead the Press Release
A Colorado tax defier was convicted of tax evasion yesterday by a federal jury in Denver announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and United States Attorney Jason R. Dunn for the District of Colorado.
According to court documents and evidence presented during the one-week trial, Lawrence Martin Birk founded a sole proprietorship, Tarryall River Log Homes LLC, in 2000. He ran the company, which sold and built log homes. For more than twenty years, Birk did not voluntarily pay federal income taxes. After the Internal Revenue Service (IRS) began collection efforts, including visiting Birk at his home, he hired a tax firm to prepare eight years’ worth of delinquent tax returns. However, Birk concealed pertinent information from the tax firm, including over $400,000 of retirement distributions that he funneled through a sham company. After filing his tax returns, which omitted the retirement income, Birk did not pay what the returns claimed was due and owing. Instead, he sent the IRS threatening correspondence that espoused the frivolous tax arguments of known tax defier organizations, including the “We The People” foundation and the “Tax Honesty” movement.
After being notified that the IRS intended to seize money from his bank accounts for taxes owed, Birk took steps to shield his money against the IRS’ collection efforts. Immediately or shortly after depositing funds into his bank account, Birk purchased cashier’s checks to reduce his balance and impede the IRS’ ability to seize the money. Birk’s outstanding tax liabilities, including taxes, interest, and penalties, were over $2 million for 1998 to 2005. He has not filed returns or made any tax payments for the 2006 through 2018 tax years.
Principal Deputy Assistant Attorney General Zuckerman and United States Attorney Dunn commended special agents of IRS-Criminal Investigation, who conducted the investigation, as well as Department of Justice Tax Division Assistant Chief Elizabeth C. Hadden and Trial Attorney Christopher Magnani, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Co-Leader of Large Drug Trafficking Organization Sentenced to more than 11 Years in PrisonRead the Press Release
A 38-year-old Seattle man who persisted in trafficking methamphetamine, heroin, and cocaine, despite repeated run-ins with law enforcement, was sentenced today in U.S. District Court in Seattle to 11 years in prison and 5 years of supervised release, announced U.S. Attorney Brian T. Moran. MICHAEL LAVON DAVIS pleaded guilty to conspiracy to distribute controlled substances, being a felon in possession of a firearm, and conspiracy to commit money laundering. DAVIS was arrested in June 2018 as part of a large drug trafficking conspiracy that spanned five western Washington counties. DAVIS was identified as a co-leader of the group, recruiting others to transport heroin, methamphetamine, and cocaine from California to Washington and Illinois. At the sentencing hearing, U.S. District Judge Richard A. Jones said this was “a very large drug trafficking organization… you were a critical player in the organization… one of several key people who kept this organization afloat.”
“This defendant persisted in bringing cocaine and heroin into our community and recruited others to his life of crime,” said U.S. Attorney Brian T. Moran. “In this investigation more than 40 defendants were taken off the streets and are now paying the price for the poison they spread in our communities. We owe a debt of gratitude to the relentless work of federal, state, and local law enforcement officers who brought an end to this criminal conspiracy.”
The drug ring was targeted by DEA, FBI, and the Seattle Police Department as part of an effort to combat rising crime in South King and North Pierce County. According to records filed in the case, conspirators trafficked cocaine, heroin, methamphetamine, oxycodone, illegal marijuana, and fentanyl. Associates of some of the traffickers were shot and some killed in various shooting incidents in both Seattle and South King County. On the wiretap, law enforcement heard conspirators talk about various shootings after they occurred. Following an 18-month wiretap investigation, law enforcement raided more than 50 locations, seizing 12 pounds of heroin, more than 2 kilos of cocaine, a pound of methamphetamine, 124 pounds of marijuana, 41 firearms, and hundreds of thousands of dollars in cash.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. DOJ reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. This investigation was led by the Seattle Police Department Gang and Narcotics Units, the FBI Seattle Safe Streets Task Force, and the Drug Enforcement Administration (DEA). Other agencies providing investigative assistance include ATF, USMS, and the U.S Bureau of Prisons.
The cases are being prosecuted by Assistant United States Attorneys Vince Lombardi, Erin Becker, and Nicholas Manheim.
California Man Pleads Guilty to Sending Death Threats to Dozens of Professional and College AthletesRead the Press Release
BOSTON – A former college soccer player pleaded guilty today in federal court in Boston to sending death threats to at least 45 professional and collegiate athletes between July and December 2017.
Addison Choi, 23, of Fullerton, Calif., pleaded guilty to one count of transmitting in interstate and foreign commerce a threat to injure the person of another. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for Nov. 1, 2019. Choi was charged in May 2019.
In 2017 Choi attended college in Wellesley where he played varsity soccer. He also gambled prolifically on sports, both professional and collegiate, and he lost more than he won. When the players or teams that he bet on performed poorly, Choi used Instagram to send them death threats. For example, on July 27, 2017, Choi posted on one professional athlete’s Instagram account: “I will kill you and your family and f****** hang them on a tree you stupid ugly mother*****” and also “I hope you f****** die you stupid monkey n*****.” On the same day, Choi posted on another athlete’s Instagram account: “I’ll find your f****** family and skin them alive you stupid f***, I hope you never play again.” Choi also posted threats on the accounts of athletes’ loved ones.
In another instance, Choi posted on the Instagram page of a professional athlete’s girlfriend, “You stupid mother***** [name], you worthless f***. I will f****** kill you,” and “I will f****** kill [name] you dumb f****** bitch… leave that irrelevant stupid mother*****.”
Between July 2017 and December 2017, Choi allegedly posted threats to at least 45 different Instagram accounts, with multiple threats to each account and often multiple targets per threat.
Choi faces a sentence of up to five years in prison, three years of supervised release, restitution and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Assistant U.S. Attorneys Scott L. Garland, of Lelling’s Civil Rights Enforcement Team, and Gregory J. Dorchak, of Lelling’s Civil Rights Unit, are prosecuting the case.
Caldwell Man Sentenced to 78 Months in Prison for Possession of Child PornographyRead the Press Release
BOISE – Brien J. Sanders, 40, of Caldwell, was sentenced yesterday in United States District Court to 78 months in federal prison for possession of child pornography, U.S. Attorney Bart M. Davis announced. Senior U.S. District Judge Edward J. Lodge ordered that Sanders be placed on supervised release for five years following his prison sentence. Sanders pleaded guilty on April 3, 2019.
According to court records, in April 2018, an FBI agent downloaded 27 videos depicting child pornography that were made available by Sanders’ computer via a peer-to-peer network. A federal magistrate judge issued a search warrant for Sanders’ residence in Caldwell. Based on this information, agents with the FBI and the Idaho Internet Crimes Against Children Task Force (ICAC) served the warrant. A forensic examination of Sanders’ computers and hard drives revealed approximately 600 videos and 350 images depicting child pornography. Sanders admitted to agents that he possessed child pornography on his computers and hard drives. He admitted he obtained the child pornography through a peer-to-peer network.
Judge Lodge also ordered Sanders to forfeit the computers and hard drives used in the offense, to pay a total of $21,000 to victims depicted in the images he possessed, and to pay a $5,100 special assessment. As a result of his conviction, Sanders will be required to register as a sex offender.
The case was investigated by the FBI with assistance from the Idaho ICAC Task Force, and was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab
# # #
Business Pleads Guilty to Unlawful Employment of an AlienRead the Press Release
U.S. Attorney Peter G. Strasser announced that N & F Logistics, Inc., a shipping and trucking business located in Harahan, Louisiana, pleaded guilty to a one-count bill of information charging it with unlawful employment of an alien in violation of 8 U.S.C. '' 1324a (a)(1)(A) and (f)(1).
According to the bill of information, N & F Logistics, Inc., unlawfully employed an alien from in or about February 2013 through August 2014.
If convicted, N & F Logistics, Inc., faces a maximum fine of up to $10,000.00 and a $50.00 special assessment. U.S. District Judge Wendy B. Vitter set sentencing for October 15, 2019.
The United States Department of Homeland Security, Immigration and Customs Enforcement in investigated this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Burglary Investigation Leads to Two Sentences of More Than Eight Years Each for Possession of Firearms and AmmunitionRead the Press Release
OKLAHOMA CITY – JAROD BEACH BROOK, 37, and AARON TRACY COLLINS, 40, have been sentenced to 120 and 100 months respectively in federal prison for possessing ammunition and firearms after a felony conviction, announced Timothy J. Downing, U.S. Attorney for the Western District of Oklahoma.
On September 18, 2018, a grand jury indicted both men for possessing both a pistol and a revolver in May 2018. The indictment also charged Brook with the illegal possession of ammunition. According to court filings, Brook was involved in a May 2018 burglary of a residence in Oklahoma City, in which eight firearms were stolen. Brook and another burglar brought the firearms to Collins, who provided money and drugs in exchange for the firearms. On May 21, 2018, after further investigation, the Oklahoma City Police Department executed a search warrant at Collins’s residence in southeast Oklahoma City, found two of the firearms stolen from the residence, and arrested Collins. Two days later, officers arrested Brook at an apartment building in northwest Oklahoma City after he attempted to flee by jumping out of a window and onto a roof. A U-Haul truck parked near the apartment building and associated with Brook contained a box for a pistol and ammunition.
Both men have been in the custody of the U.S. Marshals Service since November 2018.
Collins pleaded guilty on January 30, 2019, to being a felon in possession of firearms. On May 31, U.S. District Judge David L. Russell sentenced him to 100 months in prison, followed by three years of supervised release. On April 9, 2019, Brook pleaded guilty to possessing ammunition after a felony conviction. Today, Judge Russell sentenced him to 120 months—ten years—in prison, followed by three years of supervised release. The court took into account in both sentencings that Brook and Collins have prior state convictions for being felons in possession of firearms.
Prosecuted by Assistant U.S. Attorneys Nicholas J. Patterson, Edward J. Kumiega, Steven Creager, and Tom Snyder, this case is the result of an investigation by the Oklahoma City Police Department and U.S. Homeland Security Investigations. It is part of Project Safe Neighborhoods, the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions. As part of this strategy, PSN focuses on the most violent offenders and partners with local prevention and re-entry programs for lasting reductions in crime. For more information, visit https://www.justice.gov/psn.
Reference is made to public filings for further information.
Brooklyn Business Owner Pleads Guilty in Employment Tax SchemeRead the Press Release
A Brooklyn, New York, business owner pleaded guilty today in the Eastern District of New York to failing to pay over employment taxes to the Internal Revenue Service (IRS) announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
From 2011 through 2014, Michael Jaramillo (Jaramillo), 49, was the president, part owner and sole operator of MT Electric Corp. (MT Electric), a business in Brooklyn. During this time, Jaramillo cashed business receipt checks at a local check casher and used the cash to pay employees more than $3 million in wages “under the table.” Jaramillo also filed false employment tax returns, which failed to report the cash wages and the employment taxes due. Jaramillo admitted that he caused a tax loss of approximately $453,460.
The Honorable Kiyo A. Matsumoto scheduled sentencing for Nov. 21, 2019. Jaramillo faces a statutory maximum sentence of five years in prison, as well as restitution and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Jessica Moran and Kathryn Sparks of the Tax Division, who prosecuted this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Bronx Man Arrested for Attempting to Provide Material Support for TerrorismRead the Press Release
John C. Demers, Assistant Attorney General for National Security, Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Michael McGarrity, Assistant Director of the FBI's Counterterrorism Division, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the FBI, and James P. O’Neill, the Commissioner of the Police Department for the City of New York (NYPD), announced that Delowar Mohammed Hossain was arrested today at John F. Kennedy International Airport (JFK Airport) in Queens, New York. Hossain was charged in a criminal Complaint today with attempting to provide material support for acts of terrorism, specifically in support of killing U.S. nationals located overseas. Hossain was presented today before Magistrate Judge Stewart D. Aaron in Manhattan federal court.
“As alleged, Hossain planned to travel overseas and join the Taliban in order to kill American soldiers,” said Assistant Attorney General Demers. “The threat of terrorism at home and abroad remains, and the National Security Division is committed to preventing individuals from carrying out deadly plans such as this. I want to thank the agents, analysts, and prosecutors who are responsible for this case.”
“As alleged, Delowar Hossain plotted to travel to Afghanistan to join the Taliban, specifically so he could commit acts of terrorism,” said U.S. Attorney Berman. “Hossain wanted to kill Americans, and particularly wanted to target members of our armed forces, serving our nation overseas. The excellent work of the FBI and NYPD stopped Hossain’s alleged deadly plan to join the Taliban before he took flight, and he now faces federal terrorism charges.”
“The criminal complaint in this case reveals Delowar Hossain had a despicable goal. He wanted to make his way to Afghanistan, join up with Taliban forces, and kill Americans,” said Assistant Director McGarrity. “But he failed because members of the FBI's Joint Terrorism Task Force interrupted his plans. The FBI is committed to working with our law enforcement partners to stop those who want to commit acts of terrorism here in the U.S. or overseas.”
“The lure of radical ideologies comes from many sources, and just because the Taliban may seem like an old and out of vogue extremist group, it shouldn't be underestimated,” said Director-in-Charge Sweeney Jr. “The FBI New York Joint Terrorism Task Force stopped Mr. Hossain from traveling overseas to allegedly support a deadly organization, and kept him from his alleged plan to kill innocent people.”
“As we continue to see time and again, attempting to support terrorist attacks will lead to arrest,” said NYPD Commissioner O’Neil. “I commend the dedication of the NYPD detectives and FBI agents who, through the Joint Terrorism Task Force, remain relentless in their focus to keep New York City and our nation safe.”
As alleged in the criminal Complaint filed today in Manhattan federal court, beginning in the fall of 2018, Hossain expressed his desire to join the Taliban and fight against American forces. Over the months that followed, Hossain attempted to recruit a confidential source of the FBI (CS-1) to travel with Hossain from the United States to Pakistan, and then to cross the border into Afghanistan to join the Taliban. Hossain told CS-1 that his purpose was to “fight the American government from there . . . combined with the Taliban,” and that “I want to kill some kufars [non-believers] before I die.” Hossain described to CS-1 steps he had taken to prevent detection of his plan, such as planning to reach Pakistan by first flying to Thailand, which Hossain believed would conceal his ultimate goal of joining the Taliban. At the same time, Hossain made preparations to fight in Afghanistan, including buying equipment such as walkie-talkies and trekking gear and instructing CS-1 to save money “to buy weapons” after reaching Afghanistan.
Hossain purchased an airline ticket for a flight scheduled to depart on July 26, 2019, from JFK Airport, to Thailand, for the first leg of the route to Afghanistan that Hossain had described to CS-1. On July 26, Hossain traveled to JFK Airport, where the FBI arrested him after he attempted to board that flight.
Hossain, 33, of the Bronx, is charged with one count of attempting to provide material support for terrorism, which carries a maximum sentence of 15 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 defendant will be determined by a judge.
Assistant Attorney General John Demers and U.S. Attorney Berman praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which consists principally of agents from the FBI and detectives from the NYPD.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys David W. Denton, Jr. and Michael K. Krouse are in charge of the prosecution, with assistance from Trial Attorney Jennifer Burke of the Counterterrorism Section.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Bronx Man Arrested for Attempting to Provide Material Support for TerrorismRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, John C. Demers, Assistant Attorney General for National Security, Michael McGarrity, Assistant Director of the FBI’s Counterterrorism Division, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, the Commissioner of the Police Department for the City of New York (“NYPD”), announced that DELOWAR MOHAMMED HOSSAIN was arrested today at John F. Kennedy International Airport (“JFK Airport”) in Queens, New York. HOSSAIN was charged in a criminal Complaint today with attempting to provide material support for acts of terrorism, specifically in support of killing U.S. nationals located overseas. HOSSAIN was presented today before Magistrate Judge Stewart D. Aaron in Manhattan federal court.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Delowar Hossain plotted to travel to Afghanistan to join the Taliban, specifically so he could commit acts of terrorism. Hossain allegedly wanted to kill Americans, and particularly wanted to target members of our armed forces serving our nation overseas. The excellent work of the FBI and NYPD stopped Hossain’s alleged deadly plan to join the Taliban before he took flight, and he now faces federal terrorism charges.”
Assistant Attorney General John C. Demers said: “As alleged, Hossain planned to travel overseas and join the Taliban in order to kill American soldiers. The threat of terrorism at home and abroad remains, and the National Security Division is committed to preventing individuals from carrying out deadly plans such as this. I want to thank the agents, analysts, and prosecutors who are responsible for this case.”
FBI Assistant Director of Counterterrorism Michael McGarrity said: “The criminal complaint in this case reveals Delowar Hossain had a despicable goal. He wanted to make his way to Afghanistan, join up with Taliban forces, and kill Americans. But he failed because members of the FBI's Joint Terrorism Task Force interrupted his plans. The FBI is committed to working with our law enforcement partners to stop those who want to commit acts of terrorism here in the U.S. or overseas.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “The lure of radical ideologies comes from many sources, and just because the Taliban may seem like an old and out of vogue extremist group, it shouldn't be underestimated. The FBI New York Joint Terrorism Task Force stopped Mr. Hossain from traveling overseas to allegedly support a deadly organization, and kept him from his alleged plan to kill innocent people.”
NYPD Commissioner James P. O’Neill said: “As we continue to see time and again, attempting to support terrorist attacks will lead to arrest. I commend the dedication of the NYPD detectives and FBI agents who, through the Joint Terrorism Task Force, remain relentless in their focus to keep New York City and our nation safe.”
As alleged in the criminal Complaint,[1] filed today in Manhattan federal court:
Beginning in the fall of 2018, HOSSAIN expressed his desire to join the Taliban and fight against American forces. Over the months that followed, HOSSAIN attempted to recruit a confidential source of the FBI (“CS-1”) to travel with HOSSAIN from the United States to Pakistan, and then to cross the border into Afghanistan to join the Taliban. HOSSAIN told CS-1 that his purpose was to “fight the American government from there . . . combined with the Taliban,” and that “I want to kill some kufars [non-believers] before I die.” HOSSAIN described to CS-1 steps he had taken to prevent detection of his plan, such as planning to reach Pakistan by first flying to Thailand, which HOSSAIN believed would conceal his ultimate goal of joining the Taliban. At the same time, HOSSAIN made preparations to fight in Afghanistan, including buying equipment such as walkie-talkies and trekking gear and instructing CS-1 to save money “to buy weapons” after reaching Afghanistan.
HOSSAIN purchased an airline ticket for a flight scheduled to depart on July 26, 2019, from JFK Airport, to Thailand, for the first leg of the route to Afghanistan that HOSSAIN had described to CS-1. On July 26, HOSSAIN traveled to JFK Airport, where the FBI arrested him after he attempted to board that flight.
* * *
HOSSAIN, 33, of the Bronx, New York, is charged with one count of attempting to provide material support for terrorism, which carries a maximum sentence of 15 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 defendant will be determined by a judge.
Mr. Berman and Assistant Attorney General John Demers praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which consists principally of agents from the FBI and detectives from the NYPD.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys David W. Denton Jr. and Michael K. Krouse are in charge of the prosecution, with assistance from Trial Attorney Jennifer Burke of the Counterterrorism Section.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein are only allegations, and every fact described should be treated as an allegation.
Bristol Man Charged with Federal Child Exploitation OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JEFFREY L. BACON, 60, of Bristol, was arrested today on a federal criminal complaint charging him with multiple child exploitation offenses.
Bacon appeared this afternoon before U.S. Magistrate Judge Donna F. Martinez in Hartford and was released on a $100,000 bond and electronic monitoring.
As alleged in the criminal complaint, in October 2018, Bacon began communicating with a 15-year-old-girl through the Kik messaging application after Bacon met the girl in a Kik chat group for teens. During their communications, that girl told Bacon she was a minor. Knowing that she was a minor, Bacon still sent the girl sexually explicit pictures of himself and described various sexual acts that he wanted to engage in with the girl. The girl told her mother who reported the communications to the police.
It is further alleged that, on October 30, 2018, a law enforcement officer assumed the girl’s Kik identity to continue to correspond with Bacon. Bacon asked the undercover officer, posing as the girl, to remind Bacon of her age. The officer responded with “15.” From October 30 to November 1, Bacon repeatedly sent sexually explicit pictures and videos of himself to the undercover officer. Bacon also requested sexually explicit pictures in return. During the course of their conversations, Bacon asked the undercover officer if he could pick her up from school so he could see her. Bacon suggested they could go to the mall where the girl could try on clothes while Bacon watched and engaged in a sexual act. Bacon also discussed going to a motel with the girl to engage in sexual acts with her.
On November 19, 2018, Bacon was arrested on related state charges.
It is alleged that, during a subsequent forensic examination of Bacon’s laptop computer, investigators found images of child pornography, including images depicting prepubescent females engaged in sexual acts with adults.
The complaint charges Bacon with enticing and attempting to entice a minor to engage in unlawful sexual activity, which carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life, soliciting and attempting to solicit child pornography, which carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years, and possession of child pornography, which carries a maximum term of imprisonment of 20 years.
U.S. Attorney Durham stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and the Enfield Police Department. The case is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Bookkeeper Sentenced to Prison for Embezzling $390,000Read the Press Release
NORFOLK, Va. – A Norfolk woman was sentenced today to more than three years in prison and ordered to pay over $390,000 in restitution for embezzling that amount from the company for whom she provided bookkeeping, accounting and payroll services.
According to court documents, Nakai Koyenhan, 46, who pleaded guilty to forging the securities of an organization in November 2018, was employed by Church Point Manor, LLC to provide bookkeeping, accounting and payroll services. Koyenhan stole more than $327,000 from the company by forging over 300 checks over a period of approximately three and a half years. She also made fraudulent wire transfers from the company bank account to her personal bank account and to her personal credit card, totaling an additional $63,000. In total, Koyenhan stole more than $390,000 from Church Point Manor, which operated a well-known bed and breakfast/restaurant that was forced to close as a result of the embezzlement.
To conceal her actions, Koyenhan, on an ongoing basis, made false entries in the accounting ledger she maintained for Church Point Manor. She would, for example, change the names of the payees and amounts on the forged checks she had written in order to make it appear that they were payments for legitimate business expenses. Koyenhan used the money she stole for her own personal benefit. She spent the money, among other things, to make car loan payments and rent payments, to purchase a wedding ring and wedding supplies, and to travel to various destinations, including Nigeria.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen. Assistant U.S. Attorney Alan M. Salsbury prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-162.
Attleboro Man Who Trafficked Handguns from Georgia to Massachusetts Arrested on Federal ChargeRead the Press Release
BOSTON – An Attleboro man has been charged in federal court in Boston in connection with firearms trafficking.
Richard Philippe, 40, was charged with being a felon in possession of ammunition. On July 5, 2019, Philippe was arrested on separate charges and has been in custody since.
According to the charging documents, an individual who purchased large quantities of handguns in Georgia had been selling handguns to Philippe, who then transported the guns back to Massachusetts to sell. Philippe was not a Federal Firearm Licensee and was not permitted to deal firearms. Furthermore, Philippe has a prior felony firearm conviction and is not permitted to possess any firearm or ammunition. It is alleged that the individual in Georgia sold more than 100 firearms to Philippe between April and June 2019.
On July 5, 2019, federal agents executed a search warrant at a warehouse in Taunton used by Philippe and located 144 rounds of ammunition and empty firearm boxes with labels tying them to firearms that had been purchased by the individual in Georgia.
The charge of possessing ammunition after being convicted of a felony carries a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. Valuable assistance was provided by the Massachusetts State Police and Brockton Police Department. Assistant U.S. Attorney Bill Abely, Deputy Chief of Lelling’s Major Crimes Unit, is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
25 July 2019
Zuni Pueblo Man Arraigned on Federal Assault Resulting in Serious Bodily Injury Charges Involving to Two ChildrenRead the Press Release
ALBUQUERQUE – Stanton Sanchez, 31, a member and resident of Zuni Pueblo, N.M., appeared in federal court in Albuquerque, N.M., yesterday, for an arraignment on an indictment charging him with two counts of assault of a minor resulting in serious bodily injury. Sanchez entered a not guilty plea to the indictment, and was ordered detained pending trial which has yet to be scheduled.
The two-count indictment, which was filed on July 27, 2019, alleges that Sanchez assaulted a male child and a female child, causing both to sustain serious bodily injuries. The indictment alleges that Sanchez committed the crimes in Indian County in McKinley County, N.M., on July 22, 2018.
The U.S. Marshals Service arrested Sanchez on the federal indictment on July 22, 2019, at the Zuni Adult Detention Center of the Zuni Department of Corrections, where Sanchez was in custody on related tribal charges.
Sanchez faces a mandatory minimum of ten years and a maximum of life imprisonment if convicted on the charges in the indictment. Charges in an indictment are only allegations. A defendant is presumed innocent unless and until proven guilty.
The Zuni Pueblo Tribal Police Department investigated this case, with assistance from the U.S. Marshals Service. Assistant U.S. Attorney Allison Jaros is prosecuting the case.
Youngstown man sentenced to 37 years in federal prison for taking still images of himself sexually assaulting a young girlRead the Press Release
A Youngstown man was sentenced to more than 37 years in federal prison for taking still images of himself sexually assaulting a young girl.
Daniel B. Fleischer, 37, previously pleaded guilty to sexual exploitation of children and receipt and distribution of child pornography. U.S. District Judge Christopher Boyko sentenced Fleischer to 447 months in prison.
"This defendant committed horrible crimes against a child and is being held accountable for his actions," U.S. Attorney Justin E. Herdman said.
Fleischer sexually assaulted a minor in June 2011 and produced a visual depiction of the act, according to court documents.
Fleischer also received and distributed multiple images of children engaged in sexually explicit conduct, according to court documents.
The case was investigated by Task Force Officer Brenda Golec of the FBI Task Force. This case is being prosecuted by Assistant U.S. Attorney Carol M. Skutnik.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Watervliet Man Pleads Guilty to Sexually Exploiting a ChildRead the Press Release
SYRACUSE, NEW YORK – Aaron Vroman, age 29, of Watervliet, New York, pled guilty today to sexual exploitation of a child and possession of child pornography.
The announcement was made by United States Attorney Grant C. Jaquith and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
As part of his plea agreement, Vroman admitted that on at least four occasions he secretly video-recorded a minor using the bathroom for the purposes of obtaining sexually explicit images of the child’s genitals. Vroman also admitted that he used his hand to touch that same child’s genital area over the child’s underwear while the child was asleep, and that he video-recorded that conduct as well. Vroman also possessed images of child pornography on his laptop computer, including videos depicting the sexual abuse and exploitation of pre-pubescent girls.
Sentencing is scheduled for November 22, 2019 in Albany. Vroman faces at least 15 years and up to 30 years in prison on the sexual exploitation count and up to 20 years in prison on each of the child pornography possession counts. Sentences of imprisonment may be concurrent or consecutive at the discretion of the Court. A defendant’s sentence is imposed by a judge based on the particular statutes the defendant is convicted of violating, the U.S. Sentencing Guidelines, and other factors. The Court also will impose a term of post-imprisonment supervised release of between 5 years and life, and Vroman will be required to register as a sex offender.
Vroman’s case was investigated by HSI, with assistance from the New York State Police and the Colonie Police Department. This case is being prosecuted by Assistant U.S. Attorneys Geoffrey J. L. Brown and Michael D. Gadarian.
This case is prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
USA Patrick Statement on AG Capital Punishment OrderRead the Press Release
CORPUS CHRISTI, Texas – As the Attorney General has stated, the Department of Justice is duty-bound to uphold the rule of law - and we owe it to the victims and their families to carry out the sentence our justice system has imposed.
This case was one of the most atrocious crimes this office has ever seen – something that impacted the Corpus Christi community and other family members and friends in Southeast Texas and Louisiana. A jury convicted Alfred Bourgeois of torturing and finally killing his two-year-old daughter, after having visitation custody of her for just a month. The little girl died on June 28, 2002, after a final beating at the Corpus Christ Naval Air Station where Bourgeois was making a delivery as part of his long-haul trucking job. The facts surrounding this murder are horrific.
As a father myself, this case sickens me. Bourgeois preyed on an innocent child – one of the most vulnerable among us. She should have been protected and loved, but was instead robbed of her young life after being brutalized by her very own.
Bourgeois is guilty and was ordered to death. His execution has now been set.
Our hearts continue to go out to these families and we hope this measure of justice will finally help bring peace and closure.
Two Visalia Residents Indicted for Growing Marijuana in the Sierra National Forest in Madera CountyRead the Press Release
FRESNO, Calif. — On Thursday, a federal grand jury returned a three-count indictment today against Hector Manuel Gomez Rodriguez, 45, of Visalia, and Mucio Alejandro Gomez Rodriguez, 46, of Visalia, charging them with manufacture of marijuana, conspiracy to manufacture marijuana, and depredation of public lands and resources, U.S. Attorney McGregor W. Scott announced.
According to court documents, in early June, officers located a clandestine marijuana grow site on U.S. Forest Service land east of North Fork in the Sierra National Forest in Madera County. On July 16, 2019, USFS officers and other law enforcement personnel hiked into the grow site and apprehended the defendants as they tried to flee. Officers found 4,494 live marijuana plants, a .45-caliber handgun, and a pellet gun in the cultivation site.
This case is the product of an investigation by the U.S. Forest Service, the Madera County Sheriff’s Office, California Department of Fish and Wildlife, and CAMP (Campaign Against Marijuana Planting). Assistant U.S. Attorney Katherine Schuh is prosecuting the case.
If convicted, the defendants each face a maximum statutory penalty of 10 years to life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Two Men Indicted for Armed Robbery of PharmacyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Gerard Gaffney, age 19, of Mount Ranier, Maryland, and David Marable, age 18, of Washington, D.C., were indicted on July 24, 2019, by a federal grand jury on robbery and firearms charges.
According to United States Attorney David J. Freed, the indictment alleges that on March 28, 2019, Gaffney, Marable and their coconspirators committed armed robbery of a Rite Aid pharmacy in Lower Paxton Township. It is alleged that coconspirators demanded cash and controlled substances. The indictment also alleges that Gaffney and Marable possessed a Glock pistol during and in relation to his robbery.
The matter was investigated by the Federal Bureau of Investigation, the Lower Paxton Police Department, and the Swatara Police Department. Assistant U.S. Attorney Michael A. Consiglio is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Two Indicted for Conspiring to Grow Marijuana in Shasta Trinity National Forest near Rays PeakRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Mario Alberto Lopez-Pena, 19, of Winton, and Francisco Madrigal Magana, 25, of Turlock, charging them with conspiracy to cultivate marijuana, marijuana cultivation, and depredation of federal lands and resources in the Shasta-Trinity National Forest, U.S. Attorney McGregor W. Scott announced.
According to court documents, between June 9 and July 8, the defendants were involved in the cultivation of 4,105 marijuana plants south of Rays Peak in the Shasta-Trinity National Forest. The defendants were arrested on July 8, 2019.
This case is the product of an investigation by the U.S. Forest Service, the Trinity County Sheriff’s Department, the California Department of Fish and Wildlife, and the Bureau of Land Management. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.
If convicted of either of the marijuana charges, both defendants face a mandatory minimum penalty of 10 years in prison, and a maximum penalty of life in prison and a $10 million fine. If convicted of damaging public lands, the defendants face a maximum penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account several variables. These charges are only allegations; the defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Two Colombian Businessmen Charged with Money Laundering in connection with Venezuela Bribery SchemeRead the Press Release
Two Colombian businessmen were charged in an indictment returned today for their alleged roles in laundering the proceeds of violations of the Foreign Corrupt Practices Act (FCPA) in connection with a scheme to pay bribes to take advantage of Venezuela’s government-controlled exchange rate.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division, and Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, made the announcement.
Alex Nain Saab Moran (Saab), 47, and Alvaro Pulido Vargas (Pulido) 55, both citizens of Colombia, were each charged in an eight-count indictment returned in the Southern District of Florida with one count of conspiracy to commit money laundering and seven counts of money laundering. The indictment also alleges and seeks forfeiture in excess of $350 million representing the amount of funds involved in the violation.
The indictment alleges that beginning in or around November 2011 and continuing until at least September 2015, Saab and Pulido conspired with others to launder the proceeds of an illegal bribery scheme from bank accounts located in Venezuela to and through bank accounts located in the United States. According to the indictment, Saab and Pulido obtained a contract with the Venezuelan government in November 2011 to build low-income housing units. The defendants and their co-conspirators then allegedly took advantage of Venezuela’s government-controlled exchange rate, under which U.S. dollars could be obtained at a favorable rate, by submitting false and fraudulent import documents for goods and materials that were never imported into Venezuela and bribing Venezuelan government officials to approve those documents. The indictment alleges that the unlawful activity was a bribery scheme that violated the FCPA and involved bribery offenses against Venezuela. It also alleges that meetings in furtherance of the bribe payments occurred in Miami and that Saab and Pulido wired money related to the scheme to bank accounts in the Southern District of Florida. As a result of the scheme, Saab and Pulido transferred approximately $350 million out of Venezuela, through the United States, to overseas accounts they owned or controlled, the indictment alleges.
According to the indictment, the following property is subject to forfeiture: (i) a sum of approximately $350,041,500.00 in U.S. currency; (ii) approximately $3,225,593.90 in U.S. currency seized on or about August 20, 2018; (iii) approximately $30,000.00 in U.S. currency seized on or about August 21, 2018; (iv) approximately $3,313,757.69 in U.S. currency seized on or about September 24, 2018; (v) approximately $3,138,844.70 in U.S. currency seized on or about November 5, 2018; and (vi) approximately $2,942,501.37 in U.S. currency seized on or about February 13, 2019.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by DEA with assistance from the FBI’s Miami Field Office and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Miami Field Office. Assistant U.S. Attorney Michael B. Nadler of the Southern District of Florida and Trial Attorney John-Alex Romano of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Colombian Businessmen Charged with Money Laundering in Connection with Venezuela Bribery SchemeRead the Press Release
Two Colombian businessmen were charged in an indictment returned today for their alleged roles in laundering the proceeds of violations of the Foreign Corrupt Practices Act (FCPA) in connection with a scheme to pay bribes to take advantage of Venezuela’s government-controlled exchange rate.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida and Special Agent in Charge Adolphus P. Wright of the Drug Enforcement Administration’s (DEA) Miami Field Division made the announcement.
Alex Nain Saab Moran (Saab), 47, and Alvaro Pulido Vargas (Pulido) 55, both citizens of Colombia, were each charged in an eight-count indictment returned in the Southern District of Florida with one count of conspiracy to commit money laundering and seven counts of money laundering. The indictment also alleges and seeks forfeiture in excess of $350 million representing the amount of funds involved in the violation.
The indictment alleges that beginning in or around November 2011 and continuing until at least September 2015, Saab and Pulido conspired with others to launder the proceeds of an illegal bribery scheme from bank accounts located in Venezuela to and through bank accounts located in the United States. According to the indictment, Saab and Pulido obtained a contract with the Venezuelan government in November 2011 to build low-income housing units. The defendants and their co-conspirators then allegedly took advantage of Venezuela’s government-controlled exchange rate, under which U.S. dollars could be obtained at a favorable rate, by submitting false and fraudulent import documents for goods and materials that were never imported into Venezuela and bribing Venezuelan government officials to approve those documents. The indictment alleges that the unlawful activity was a bribery scheme that violated the FCPA and involved bribery offenses against Venezuela. It also alleges that meetings in furtherance of the bribe payments occurred in Miami and that Saab and Pulido wired money related to the scheme to bank accounts in the Southern District of Florida. As a result of the scheme, Saab and Pulido transferred approximately $350 million out of Venezuela, through the United States, to overseas accounts they owned or controlled, the indictment alleges.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by DEA Miami Field Division with assistance from the FBI’s Miami Field Office and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Miami Field Office. Trial Attorney John-Alex Romano of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Michael B. Nadler of the Southern District of Florida are prosecuting the case.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Tulsa Man Pleads Guilty to Stealing More than $420,000 from his EmployerRead the Press Release
A former American Parking employee pleaded guilty in U.S. District Court Wednesday to bank fraud.
Jerry Albert Wiley, 70, of Tulsa, admitted to defrauding BancFirst and his employer American Parking of $426,220.32 from January to April 2018. U.S. District Judge Clair V. Eagan accepted the plea and set sentencing for Oct. 23.
“The U.S. Attorney’s Office is dedicated to protecting the integrity of the marketplace by prosecuting white collar criminals like Mr. Wiley,” said U.S. Attorney Trent Shores. “Like in so many financial crimes, Mr. Wiley took advantage of the trust placed in him, resulting in American Parking losing more than $420,000. There is never justification to steal from an employer, and perpetrators who act otherwise will find themselves face-to-face with a federal prosecutor.”
In his position as controller at American Parking, Wiley directed authorized funds transfers related to business expenses from the company’s corporate checking account at BancFirst. Starting Jan. 5, 2018, Wiley knowingly abused his position by transferring funds from American Parking’s accounts at BancFirst to accounts owned and controlled by one of Wiley’s acquaintances. The defendant contends he lost the funds after sharing them with an online acquaintance to pursue a personal investment opportunity. The Information contains a forfeiture allegation by which the United States seeks a money judgment of at least $426,220.
The FBI conducted the investigation; Assistant U.S. Attorney Richard M. Cella is prosecuting the case.
Three Men Plead Guilty to Federal Charges Related to Dealing Drugs—Including Fentanyl, Heroin, and Cocaine—In Cecil County, MarylandRead the Press Release
Baltimore, Maryland – Three men pleaded guilty to federal charges for their roles in a drug distribution conspiracy that operated in Cecil County, Maryland. The following defendants pleaded guilty:
Oscar O. Pilarte-Rivera, age 36, of Baltimore; Elvin Solano-Pena, a/k/a Joseph Allen Fields and Jose, age 37; Herme Soriano, a/k/a Miguel Urraca-Gonzalez, age 21.
The guilty pleas were announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police (MSP).
According to their plea agreements, beginning in at least June 2017 and continuing through September 26, 2018, Solano-Pena, and Soriano conspired with others to distribute heroin, cocaine, fentanyl, and crack cocaine to drug users living primarily in Cecil County. Witnesses advised law enforcement that they purchased narcotics from the conspirators by calling a designated phone number (the dispatch phone). Solano-Pena was the primary user and possessor of the dispatch phone. Drug users would call the number and place an order for drugs. Solano-Pena or another conspirator would then arrange a meeting place. Solano-Pena, Soriano, or a co-conspirator would arrive at the meeting location and provide the drugs in exchange for cash.
On September 5, 2018, Soriano and a co-conspirator were arrested. Soriano lied to police as to his identity, claiming to be a U.S. Citizen born in Puerto Rico and providing a fraudulently obtained driver’s license using his alias (Miguel Urraca). The car that they were driving, a black Honda Civic, had previously been used during drug transactions that were observed by law enforcement. The vehicle was towed to Cecil County. The car was registered in the name of Pilarte-Rivera, who admitted that he provided assistance to the drug dealers, among other things, by allowing them to use a car registered in his name, knowing the men were involved in drug trafficking. Pilarte-Rivera claimed possession of the black Honda from police custody.
Federal investigators obtained a search warrant for a co-conspirator’s residence in Aberdeen that was executed on September 26, 2018, and recovered over 160 grams of heroin, a mixture of heroin and fentanyl, and crack cocaine packaged for sale. Shortly before the execution of the warrant, investigators observed Pilarte-Rivera driving the black Honda Civic in front of the leasing office. Investigators proceeded to the leasing office in an attempt to identify all occupants utilizing the vehicle and encountered Pilarte-Rivera and Solano-Pena. When questioned by investigators, Solano-Pena falsely identified himself as Joseph Allen Fields. Pilarte-Rivera is a naturalized U.S. citizen, also born in the Dominican Republic. According to his plea agreement, during the events charged in his case, Pilarte-Rivera had an application pending to be a Baltimore City police officer.
Investigators asked the men about the vehicle and the reason for attempting to obtain entry to the co-conspirator’s apartment. Both Pilarte-Rivera and Solano-Pena claimed to have arrived at the apartment to pick up some items for a friend whom they identified by an alias. Pilarte-Rivera provided a Maryland driver’s license and told officers he had obtained a power of attorney from the co-conspirator in order to enter the apartment and gather some birth certificates for him that he needed. The power of attorney was fraudulently notarized. According to the plea agreements, both men knew there were drugs inside the apartment.
As detailed in his plea agreement, Solano-Pena began to actively resist officers, made an unsuccessful attempt to run, and was quickly subdued by officers. Solano-Pena was fingerprinted and the information yielded prior removals from the United States, his true name (Elvin Solano-Pena) and previous criminal history.
Pilarte-Rivera gave MSP consent to search the black Honda Civic after a canine alerted on the vehicle for the presence of drugs. MSP officers recovered the dispatch phone described above on the driver’s seat.
Solano-Pena pled guilty to a narcotics charge carrying a minimum mandatory sentence of 10 years in prison and a maximum of life in prison. Soriano pled guilty to distribution of heroin and cocaine and faces a maximum term of imprisonment of 20 years. Both defendants also pled guilty to immigration crimes related to their illegal status in the United States. Pilarte-Rivera pled guilty to using a communication facility to facilitate drug trafficking, a crime that carries a maximum sentence of 4 years in prison. U.S. District Judge Richard D. Bennett has scheduled sentencing for Solano-Pena and Soriano for October 25, 2019 at 10:00 a.m. and 11:00 a.m., respectively. Judge Bennett scheduled Pilarte River’s sentencing for October 18, 2018 at 2:30 p.m.
The fourth charged defendant, Ivanovich Mercedes-Soriano, is scheduled for trial on August 26, 2019 at 10:00 a.m.
United States Attorney Robert K. Hur commended the HSI Baltimore and the Maryland State Police for their work in the investigation and thanked U.S. Immigration and Customs Enforcement’s Enforcement Removal Operations for its assistance. Mr. Hur thanked Assistant U.S. Attorneys Sandra Wilkinson and Paul Riley, who are prosecuting the case.
# # #
Texas Man Sentenced to 15 Months for Failure to Properly Register as a Sex OffenderRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Michael Larkin, 61, of Corpus Christi, Texas and formerly of Massachusetts, was sentenced yesterday in U.S. District Court by Judge Jon D. Levy to 15 months in prison and five years of supervised release for failing to update his sex offender registration in Maine and failing to register elsewhere. He pled guilty on February 20, 2019.
According to court records, Larkin was required to register as a sex offender in every state in which he resided as the result of a 1994 Massachusetts conviction for rape and abuse of a child under 16, assault with intent to rape a child under 16, indecent assault and battery on a child under 14, and contributing to the delinquency of a minor. Between 2006 and 2017, Larkin registered as a sex offender in Massachusetts. In September, 2017, Larkin moved to Maine, but failed to register until December, 2017. Shortly thereafter, Larkin left Maine and resided in Alabama and Texas, but failed to register in either state. He also failed to inform the Maine Sex Offender Registry that he left Maine. He was arrested in Texas in June, 2018.
The investigation was conducted by the U.S. Marshals Service.
Ten Years in Federal Prison for Con Man Who Defrauded More Than 200 Undocumented ImmigrantsRead the Press Release
CHICAGO — A con man who operated a fraudulent immigration services business that defrauded hundreds of undocumented immigrants has been sentenced to ten years in federal prison.
JAMES KEEGAN fraudulently offered immigration advocacy services, including guaranteed permanent resident status in the United States, in exchange for a fluctuating fee that averaged $3,000 per applicant. Keegan falsely claimed that he formerly worked as an attorney for the U.S. Department of Homeland Security and that he still had connections there who could quickly approve the permanent resident applications for legal status. More than 200 undocumented immigrants paid him more than $687,000, with many of the fees paid in cash at Keegan’s storefront office in Berwyn. In reality, Keegan was never an attorney and had not worked for DHS, and he never filed any immigration applications on behalf of his undocumented immigrant “clients.” Keegan spent all of the fees on personal expenses, including gambling losses.
Keegan, 57, of Cicero, pleaded guilty in March to one count of wire fraud. U.S. District Judge John Robert Blakey imposed the sentence Wednesday in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; James M. Gibbons, Special Agent-in-Charge of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Chicago; and Craig Goldberg, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago. Special Assistant U.S. Attorney Christine M. Young represented the government.
According to evidence in the case, Keegan carried out the fraud scheme during a nine-month period in 2017. He attempted to conceal his scam by creating fake approval notices and attempting to purchase bogus immigration documents. A law enforcement search of Keegan’s computers and cell phone revealed that he sought to purchase 35 blank residency cards from an online provider of novelty identification documents.
At the time of his immigration fraud scheme, Keegan was on court supervision after recently being released from federal prison for a prior conviction involving investment fraud.
St. Louis Couple Indicted with Conspiracy to Distribute and Possess FentanylRead the Press Release
St. Louis, MO – Charles T. McRoberts, 49, of St. Louis, and Gernell Armour, 47, of St. Louis, were indicted today on two felony counts each – one count of conspiracy to distribute and possess with the intent to distribute 400 grams or more of fentanyl and one count of possessing with the intent to distribute 400 grams or more of fentanyl.
According to the court documents, on July 9, 2019, detectives with the St. Louis Metropolitan Police Department were conducting a narcotics investigation at the United Parcel Service (UPS) Shipment Sorting Center on Jefferson Avenue in St. Louis, MO. After becoming suspicious of a brown package addressed to 4715 Sacramento Avenue, a K-9 dog conducted a sniff of the package and gave a positive response to the odor of narcotics. After obtaining a search warrant and conducting a search of the package, officers located and seized two cylinders wrapped in green electrical tape, each of which contained a plastic bag with fentanyl. The total amount of fentanyl seized was approximately 962 grams.
On July 12, 2019, a UPS security representative delivered a decoy package to the address on Sacramento where it was accepted by Armour. Shortly after acceptance, McRoberts arrived and approached the package. McRoberts was arrested.
If convicted, each count carries a maximum penalty of 10 years in prison and a $250,000 fine each. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The Drug Enforcement Administration and the St. Louis Metropolitan Police Department are investigating this case. Special Assistant United States Attorney Nauman Wadalawala is handling the case for the U.S. Attorney’s Office.
Charges set forth in the Indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Springfield Man Pleads Guilty in Federal Court to Drug and Gun ChargesRead the Press Release
United States Attorney Brandon J. Fremin announced today that JIMMY E. LINDSEY, age 33, of Springfield, Louisiana, pled guilty on July 24, 2019, before U.S. District Judge Brian A. Jackson to possession with intent to distribute methamphetamine, marijuana, and oxycodone, and possession of a firearm in furtherance of a drug trafficking crime. As a result of his guilty plea, LINDSEY faces a significant term of imprisonment, fine, and period of supervised release.
According to admissions made as part of his guilty plea, LINDSEY possessed the firearm as part of his drug trafficking operation. Specifically, on July 5, 2018, agents with the Louisiana Probation and Parole, along with Livingston Parish Sheriff’s Office narcotics detectives, attempted to conduct a compliance check at LINDSEY’s residence. LINDSEY was on probation for felony narcotics distribution charges in Livingston Parish. Agents were aware that LINDSEY would be driving a black BMW. While patrolling the area near the LINDSEY’s residence, detectives encountered a black BMW leaving the area. Detectives observed the driver of the BMW fail to utilize turn signals on two separate occasions and initiated a traffic stop.
As detectives approached the vehicle, they recognized the driver to be LINDSEY. They also smelled a strong odor of marijuana emitting from the vehicle. As LINDSEY was secured, the deputies found a loaded Smith and Wesson .380 pistol, in LINDSEY’s back right pants pocket. The detectives also located methamphetamine and oxycodone pills in LINDSEY’s right pants pocket, as well as two zip-lock bags of marijuana in the trunk of the vehicle.
U.S. Attorney Brandon Fremin stated, “Defendants like this who brazenly continue to commit crimes in violation of felony probation will be held accountable on our watch. This conviction is yet another example of our office’s commitment to keep convicted criminals from continuing to poison our citizens with illegal drugs. I want to thank our prosecutor, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Louisiana Office of Probation and Parole, and Livingston Parish Sheriff’s Office for their work in this case. This kind of collaboration among federal and local law enforcement ensures that convicted felons do not continue to deal drugs and commit crimes in our communities.”
“Our goal is to protect our citizens. Period. The veterans within the LPSO Narcotics Division focus on knowing the players, uncovering the illegal activity & providing a solid case for prosecution. I appreciate their dedication to Livingston Parish & the working relationship we have with our law enforcement partners and the U.S. Attorney,” stated Livingston Parish Sheriff Jason Ard.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with critical assistance from the Louisiana Probation and Parole Office and the Livingston Parish Sheriff’s Office, and is being prosecuted by Assistant United States Attorney Eli J. Abad.
South Bend, Indiana Man SentencedRead the Press Release
SOUTH BEND - Nathan Winfield, age 21, South Bend, Indiana, was sentenced before United States District Court Judge Robert L. Miller, Jr. upon his plea of guilty to possession of a firearm in furtherance of a drug trafficking crime.
Mr. Winfield was sentenced to 60 months imprisonment followed by 1 year of supervised release.
According to documents in this case, in January 2019, a search warrant was executed at a South Bend residence where Mr. Winfield and others were located. During the search, crack cocaine, digital scales, and several loaded guns were found. A loaded AK-47 rifle with the stock sawed off was located in Winfield’s bedroom. The rifle was jointly purchased by Winfield and the others in the home. Winfield admitted to selling crack cocaine out of the residence and using the rifle to protect the drugs, proceeds of drug sales, and the people in the home where the drug dealing was occurring.
This case is being investigated by the ATF with the assistance of the South Bend Police Department. The case is being handled by Assistant U.S. Attorney Joel Gabrielse.
###
Shreveport man sentenced to 18 months for financial aid fraud scheme at Bossier Parish Community CollegeRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced today that a Shreveport man was sentenced for his role in a financial aid fraud scheme at Bossier Parish Community College (BPCC), which caused a loss of more than $400,000.
Deundre Fleeks, 27, was sentenced by Chief U.S. District Judge S. Maurice Hicks Jr. to serve 18 months in federal prison and one year of supervised release following imprisonment. He was also ordered to pay $391,839 restitution.
Fleeks enrolled 20 individuals in BPCC and completed a Free Application for Federal Student Aid (FAFSA) and Master Promissory Notes in each of the students’ names. Once the money was received, Fleeks would attend classes and complete coursework for the students. In return, each student paid Fleeks $1,000 per semester from the money the students received in Direct Loans and Pell Grants. The Department of Education disbursed $262,793 in Federal Direct Stafford Loans and $144,052 in Federal Pell Grants during the course of the scheme, which took place from August 2014 to September 2016. Fleeks pleaded guilty on December 13, 2018.
The U.S. Department of Education, Office of Inspector General, conducted the investigation. Assistant U.S. Attorney Seth D. Reeg prosecuted the case.
Shelbyville Woman Sentenced to 21 Years for Distributing Heroin that Resulted in a DeathRead the Press Release
FRANKFORT, Ky. – Yesterday, Kari Dawn Yount, 32, of Shelbyville, Kentucky, was sentenced to 21 years in federal prison, by U.S. District Judge Gregory F. Van Tatenhove, for distributing heroin that caused an overdose death. An individual identified in court documents as C.N.M., 22, fatally overdosed on a mixture of heroin and acrylfentanyl, on March 1, 2017, in Franklin County. The investigation by the Frankfort Police Department identified Yount as the person responsible for selling the drug mixture to C.N.M. Yount pleaded guilty to the offense on March 25, 2019.
Under federal law, Yount must serve 85 percent of her sentence. Upon her release from prison, she will also be under the supervision of the U.S. Probation office, for a period of five years.
“When people distribute these dangerous drugs, they are placing many lives and their own freedom in jeopardy,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “To be clear, we are committed to combatting illegal opioid distribution with all the tools available to us. The potential for significant sentences, such as this one, loom for those convicted of selling this poison and causing needless deaths. We are thankful for the great work of our law enforcement partners, as we all work toward reducing the impact of the opioid scourge in our communities.”
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; D. Christopher Evans, Special Agent in Charge, DEA Louisville; and Charles Adams, Chief of Police, Frankfort Police Department, jointly made the announcement. The United States was represented by Assistant United States Attorney Todd Bradbury.
Scranton Funeral Home Director Sentenced to 15 Months’ Imprisonment for TaxRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Al T. Hughes, age 60, of Scranton, Pennsylvania, was sentenced by United States District Court Judge James M. Munley to 15 months’ imprisonment followed by a three-year term of supervised release and a $4,000 fine, for tax evasion.
According to United States Attorney David J. Freed, Hughes diverted approximately $892,000 in corporate receipts to his personal benefit, and failed to report the diverted receipts as income on his federal tax returns. The resulting tax loss to the United States is approximately $231,349. Hughes began diverting corporate receipts in 2009 and continued through 2014, and cashed hundreds of customer checks, intended for payment of funeral home services, at various financial institutions, including a check cashing service in Scranton. Hughes diverted corporate receipts from four area funeral homes, including the Thomas J. Hughes Funeral Home, the Eagan-Hughes Funeral Home, the McGoff-Hughes Funeral Home, and the Davies & Jones Funeral Chapel.
Judge Munley also ordered Hughes to pay $231,349 in restitution to the IRS. Hughes is to surrender to the Bureau of Prisons on September 25, 2019.
“Paying fairly assessed taxes is a solemn obligation of citizenship,” said U.S. Attorney Freed. “Al Hughes brazenly shirked that obligation and stole from all of us. Working together with our partners at IRS - Criminal Investigation we will continue to vigorously prosecute these cases.”
“Al T. Hughes stole from the American public when he failed to pay his fair share of taxes,” said Guy Ficco, IRS Criminal Investigation Special Agent in Charge. “Those contemplating similar crimes should take note of the sentence handed down today. IRS-CI will continue to protect the integrity of the tax system by ensuring everyone pays the right amount of tax."
The investigation was conducted by the Internal Revenue Service Criminal Investigation– Scranton Office. Assistant United States Attorney Michelle Olshefski prosecuted the case.
# # #
San Jose Residents Charged with Alleged Conspiracy to Distribute Methamphetamine and FentanylRead the Press Release
SAN JOSE – A federal grand jury indicted Miguel Angel Bravo Vasquez, Francisco Heredia Munoz, and Jose Alberto Cruz Garcia with conspiring to distribute methamphetamine and fentanyl, and related charges, announced United States Attorney David L. Anderson and Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Ryan L. Spradlin.
The indictment, filed earlier today, describes a drug distribution conspiracy that continued from about September 11, 2018, to July 17, 2019, including distributions of methamphetamine and fentanyl. An affidavit filed by a special agent with HSI in connection with a criminal complaint filed in the same case describes an investigation into a drug trafficking organization in San Jose. The complaint alleges that on September 11, 2018, in San Jose, Bravo Vasquez, 33, and Heredia Munoz, 47, sold HSI undercover agents five pounds of methamphetamine, then delivered the payment to Cruz Garcia, 37, for that methamphetamine. In addition to the methamphetamine, Bravo Vasquez and Heredia Munoz allegedly gave the undercover agents a sample of 100 blue fentanyl pills. Further, on December 18, 2018, Bravo Vasquez, Heredia Munoz, and Cruz Garcia allegedly sold the undercover agents additional fentanyl pills. The complaint alleges that on July 17, 2019, the three defendants attempted to sell the undercover agents another 37 pounds of methamphetamine, but were arrested during the transaction.
The indictment filed today charges all three defendants with one count of conspiracy to distribute and possess with intent to distribute a controlled substance, in violation of 21 U.S.C. §§ 846 and 841(a)(1); one count of possession with intent to distribute and distribution of methamphetamine, in violation of 21 U.S.C. § 841(a)(1) and (b)(1)(B)(viii); and one count of possession with intent to distribute and distribution of fentanyl, in violation of 21 U.S.C. § 841(a)(1) and (b)(1)(B)(vi). Defendants Bravo Vasquez and Heredia Munoz are also charged with one additional count of possession with intent to distribute and distribution of methamphetamine. All three defendants were arrested on July 17, 2019, and remain in federal custody. In proceedings today before U.S. Magistrate Judge Virginia K. DeMarchi, defendants Heredia Munoz and Cruz Garcia were arraigned on the charges. Bravo Vasquez is scheduled to be arraigned before Magistrate Judge DeMarchi on July 29, 2019, at 1:30 p.m.
An indictment merely alleges that crimes have been committed, and Bravo Vasquez, Heredia Munoz, and Cruz Garcia, like all defendants, are presumed innocent until proven guilty beyond a reasonable doubt. If convicted of any of the drug charges, the defendants face a maximum statutory sentence of 40 years in prison and a fine in the amount of $5,000,000. The court also may order an additional term of supervised release, and fines or other assessments. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Scott Simeon is prosecuting the case with the assistance of Tong Zhang. The prosecution is the result of an investigation by HSI.
Sacramento Man Pleads Guilty to Producing Child PornographyRead the Press Release
SACRAMENTO, Calif. —Javontae D. Rucker, 27, of Sacramento, pleaded guilty today to production of child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, between February 1, 2017, and March 31, 2017, while babysitting, Rucker took advantage of an infant in his care, and he used his cellphone to produce child pornography images and a video of the victim. Rucker also admitted to possessing over a thousand child pornography videos and images of other victims.
This case is the product of an investigation by the Internet Crimes Against Children Task Force, composed of various law enforcement agencies, including the Sacramento County Sheriff’s Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Rosanne L. Rust is prosecuting the case.
Rucker is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on Oct. 24. Rucker faces a maximum statutory penalty of 30 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.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Providence Man Pleads Guilty to Trafficking FentanylRead the Press Release
BOSTON – A Providence man pleaded guilty in federal court in Boston yesterday in connection with a fentanyl conspiracy.
Dario Bier Romero, 28, of Providence, R.I., pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl, one count of possession with intent to distribute and distribution of 40 grams or more of fentanyl, and one count of possession with intent to distribute and distribution of 400 grams or more of fentanyl. Romero and co-defendant Gerson Franco Guerrero were arrested in June 2018 and have been in custody since their arrests.
On June 21, 2018, approximately three kilograms of fentanyl were seized from Romero and Guerrero during a federal investigation. During the execution of a search warrant at Romero’s residence in Providence, investigators seized an additional kilogram of fentanyl and drug packaging paraphernalia.
Guerrero has pleaded guilty and is scheduled to be sentenced today.
The charge of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl carries a minimum sentence of 10 years and up to life in prison, at least five years and up to a lifetime of supervised release, and a fine of $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration’s New England Division, made the announcement today. Assistance was provided by the Massachusetts State Police and Woburn and Providence (R.I.) Police Departments. Assistant U.S. Attorney Philip C. Cheng of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
Prolific Fentanyl Dealer Pleads GuiltyRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces that Willie Bryant (25, Parrish) has pleaded guilty to conspiracy to distribute 400 grams or more of fentanyl. He faces a mandatory minimum sentence of 15 years, and up to life, in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Bryant conspired to distribute fentanyl from at least September 2018 through February 27, 2019. In early 2019, Bryant sold fentanyl in increasing amounts to an undercover detective on multiple occasions. On February 27, 2019, Bryant again met the undercover detective to sell an ounce of fentanyl. When Bryant arrived at the meeting location, law enforcement detained him and recovered the fentanyl. During an interview with investigators, Bryant admitted to having obtained over a kilogram and a half of fentanyl from a variety of sources of supply during the previous six months, which he then distributed.
This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation entitled “Hot Batch.” The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
The investigation was conducted by the Drug Enforcement Administration and the Manatee County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Taylor G. Stout.
Prolific Dark Web Dealer of Carfentanil and Fentanyl Pleads GuiltyRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York, announced that RICHARD CASTRO, a/k/a “Chemsusa,” a/k/a “Chems_usa,” a/k/a “Chemical_usa,” a/k/a “Jagger109,” pled guilty today to money laundering and to participating in a conspiracy to distribute carfentanil, fentanyl, and a fentanyl analogue over the “dark web,” including on AlphaBay and Dream Market. CASTRO also agreed to forfeit more than $4 million in criminal proceeds. CASTRO pled guilty before U.S. District Judge Denise L. Cote.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As he admitted today, for years, Richard Castro used the dark web to distribute prolific quantities of powerful opioids, including fentanyl and carfentanil. Castro thought he could hide behind the anonymity of the internet, and use online pseudonyms to deal drugs – like ‘Chems_usa’ and ‘Chemical_usa.’ Thanks to our law enforcement partners, ‘Chems_usa’ is now in U.S. prison.”
According to the allegations in the Indictment to which RICHARD CASTRO pled guilty, public court filings, and statements made in court:
From November 2015 through March 2019, CASTRO conspired to distribute carfentanil, fentanyl, and phenyl fentanyl (an analogue of fentanyl). Fentanyl is a synthetic opioid that is significantly stronger than heroin, and carfentanil is a fentanyl analogue that is approximately 100 times stronger than fentanyl. For most of the conspiracy, CASTRO and a co-conspirator dealt drugs over the dark web, using the monikers “Chemsusa,” “Chems_usa,” and “Chemical_usa.” CASTRO was an operator of these online monikers and the leader of this conspiracy. On one dark web marketplace, Dream Market, CASTRO boasted that he had completed more than 3,200 transactions on other dark web markets, including more than 1,800 on AlphaBay. The customer feedback for “Chemsusa” included, “Extremely potent and definitely the real Carf,” as well as “The Carfent is unbelievably well synthesized, keep up the amazing work.”
In June 2018, CASTRO, using the “Chemsusa” moniker, informed his customers that he was moving his business off dark web marketplaces and would accept purchase requests for narcotics only via encrypted email. To learn the off-market email address, “Chems_usa” required willing customers to pay a fee. An undercover law enforcement officer paid this fee, obtained the encrypted email address, and placed orders with CASTRO. CASTRO’s co-defendant, Luis Fernandez, shipped narcotics on behalf of the conspiracy, including from New York City.
CASTRO’s customers paid him in Bitcoin. CASTRO laundered his narcotics proceeds in several ways, including by funneling millions of dollars through his Bitcoin wallets and by buying approximately 100 quadrillion Zimbabwe bank notes, among other valuables.
Under the terms of his plea agreement, CASTRO has agreed forfeit $4,156,198.18, including the funds or currency in seven different Bitcoin wallet addresses.
* * *
RICHARD CASTRO, 36, of Windermere, Florida, pled guilty to one count of conspiracy to distribute and possess with the intent to distribute three controlled substances – carfentanil, phenyl fentanyl, and fentanyl, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; and one count of money laundering, which carries a maximum sentence of 20 years in prison. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. Sentencing is scheduled for October 25, 2019, at 2:30 p.m. before Judge Cote.
Mr. Berman praised the Federal Bureau of Investigation, the U.S. Postal Inspection Service, and the New York City Police Department for their outstanding investigative work. Mr. Berman also thanked the Internal Revenue Service and the Orange County, Florida, Sheriff’s Office for their assistance in this case.
This matter is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Michael D. Neff, Aline R. Flodr, and Ryan B. Finkel are in charge of the prosecution.
Principal of Cryptocurrency Escrow Company Charged in Manhattan Federal Court with Fraudulent Scheme Involving over $7 MillionRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a Complaint in Manhattan federal court charging JON BARRY THOMPSON, a/k/a “J. Barry Thompson,” the principal of the cryptocurrency escrow company Volantis Escrow Platform LLC and the related company Volantis Market Making LCC (collectively “Volantis”) with commodities fraud and wire fraud offenses. As alleged, THOMPSON took over $7 million from two victim companies after making false representations in connection with Bitcoin transactions. THOMPSON was arrested this morning in Easton, Pennsylvania, and will be presented later today before United States District Judge Joseph Leeson in the Eastern District of Pennsylvania.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Jon Thompson induced investors to engage in cryptocurrency transactions through his company, Volantis Market Making, by touting a transaction structure that would eliminate any risk of loss during the purchase. As his clients soon realized, however, Thompson’s representations were false, and these cryptocurrency investors ultimately lost all of the money they had entrusted with him because of his lies. Whether a transaction involves cryptocurrency, or any other type of currency, commodity or security, this Office is committed to rooting out fraud and protecting the integrity of our markets.”
FBI Assistant Director-in-Charge Sweeney said: “Thompson allegedly thought no one would ask where their actual money went when they trusted him to invest in Bitcoin. Using phrases and terminology that the victim companies didn't understand, he allegedly preyed on their ignorance of the emerging cryptocurrency. Our job at the FBI is to investigate fraud and follow the money wherever it leads.”
As alleged in the Complaint unsealed today in Manhattan federal court:[1]
THOMPSON claimed in promotional materials that Volantis “minimize[d] settlement default risk” in cryptocurrency transactions. THOMPSON claimed that because Volantis acted as a custodian of assets for “both sides of the transaction, there is no risk of default.”
In June and July 2018, THOMPSON induced one victim company (“Company-1”) to send Volantis over $3 million to fund the purchase of Bitcoin for Company-1 after falsely assuring Company-1 that THOMPSON had the Bitcoin in hand and Company-1’s money could not be lost. After taking Company-1’s money and failing to provide any Bitcoin in return, THOMPSON lied for days about why the deal had not worked out and the location of Company-1’s Bitcoin and money, which was never returned. Among other things, THOMPSON provided Company-1 with a false account statement purporting to show Company-1’s money held for it by THOMPSON, when in fact THOMPSON had already misappropriated thousands of dollars of Company-1’s money. Additionally, even though THOMPSON had told Company-1 that before any transaction “cash is with me, coin is with me,” THOMPSON sent over $3 million of Company-1’s money to a third-party entity purportedly in exchange for Bitcoin without first receiving any of the Bitcoin in hand. THOMPSON never returned Company-1’s money, nor provided it with any Bitcoin.
In July 2018, THOMPSON induced another victim company (“Company-2”) to send Volantis over $4 million to fund the purchase of Bitcoin for Company-2 based on false representations. After receiving Company-2’s money, THOMPSON sent a substantial portion of the money to a third party—about whom THOMPSON was aware of several warning signs—without first receiving any Bitcoin in return. THOMPSON never provided Company-2 with any Bitcoin, nor did he return Company-2’s money. THOMPSON also lied to Company-2 about the location of the Bitcoin and the reasons the transaction was not completed.
* * *
THOMPSON, 48, of Easton, Pennsylvania, is charged with two counts of commodities fraud, each of which carries a maximum sentence of 10 years in prison, and two counts of wire fraud, each of which carries a maximum sentence of 20 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Berman praised the investigative work of the Federal Bureau of Investigation and also thanked the Commodity Futures Trading Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Jordan Estes and Drew Skinner are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.