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25 July 2019
Polk County Man Sentenced to Prison for Burglarizing and Stealing from Federally Licensed Firearms DealerRead the Press Release
Talique McKenzie, 20, of Winter Haven, was sentenced by U.S. District Judge Donald M. Middlebrooks to five years in prison yesterday, after having previously pled guilty to stealing firearms from a federally licensed firearms dealer (Case No. 19-CR-14013).
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Ari C. Shapira, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office and Paul Blackman, Sheriff, Highlands County Sheriff’s Office, made the announcement.
According to the court record, on January 25, 2019, McKenzie and an accomplice burglarized Bean Armory, Inc., a federally licensed firearms dealer in Lake Placid, Florida. McKenzie and his accomplice stole 27 firearms from Bean Armory, after which they led law enforcement on a high-speed chase through Highlands County in a stolen vehicle. McKenzie left the stolen vehicle behind a residence and fled on foot to a nearby dock, where he was apprehended by detectives from the Highlands County Sheriff’s Office. McKenzie intended to sell the firearms he stole from Bean Armory to drug dealers in Polk County.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the ATF and Highlands County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Michael D. Porter.
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 at http://pacer.flsd.uscourts.gov.
Orlando Man Sentenced to 10 Years for Robbing Four Banks in Central and North FloridaRead the Press Release
Orlando, Florida – U.S. District Judge G. Kendall Sharp has sentenced Robert Ray (47, Orlando) to 10 years in federal prison for bank robbery. Ray had pleaded guilty on April 9, 2019.
According to court documents, Ray robbed two banks and attempted to rob a third in central Florida on December 14 and December 17, 2018. On December 20, 2018, he robbed a fourth bank in Live Oak, Florida. At each bank, Ray walked through the front door and waited in line for the teller. When he approached the window, Ray asked the teller for “all the $100s and $50s.” In total, Ray obtained $7,200.
This case was investigated by the Federal Bureau of Investigation and the Seminole County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Nathan W. Hill.
Operation Mountaineer Highway Update: Fayette County Teenager Sentenced to Prison for Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced today that a Fayette County teenager was sentenced in federal court for his role in a federal drug conspiracy. John D. Toney, 19, of Scarbro, was sentenced to 30 months in federal prison after a long-term investigation. Stuart commended the cooperative investigative efforts of the Drug Enforcement Administration and the Central West Virginia Drug Task Force, with the support of the West Virginia State Police, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Fayette County Sheriff’s Department, the Beckley/Raleigh County Drug Task Force, the Southern Regional Drug and Violent Crime Task Force, the Fayetteville Police Department, and the Oak Hill Police Department.
“Tragic. The nightmare of every parent of a teenager,” said United States Attorney Mike Stuart. “The world is filled with opportunity and it’s awfully sad when one of our children alters their future by becoming a drug dealer.”
Toney previously admitted that from October 2017 through July 31, 2018, that he participated in a drug trafficking organization that distributed oxycodone, heroin, and methamphetamine in Fayette County, West Virginia. Toney admitted that during this time period, he participated in the distribution of oxycodone pills, assisted other members of the drug trafficking organization in acquiring over 100 grams of heroin on July 16, 2018, and further admitted to distributing more than 50 grams of a substance containing methamphetamine.
Assistant United States Attorney Timothy D. Boggess handled the prosecution. United States District Judge Joseph R. Goodwin imposed the sentence.
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Olivehurst Man Arrested for Receipt of Child PornographyRead the Press Release
SACRAMENTO, Calif. — An indictment was unsealed today after the arrest of John Maasen, 64, of Olivehurst, who is charged with receipt of child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, between March 26, 2013, and January 15, 2019, Maasen knowingly received visual depictions of minors engaged in sexually explicit conduct.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Shea J. Kenny and Amy Schuller Hitchcock are prosecuting the case.
If convicted, Maasen faces a minimum statutory penalty of 15 years in prison and a maximum penalty of 40 years in prison, as well as 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 a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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.
Ocala Convicted Felon Pleads Guilty to Federal Firearm and Ammunition ChargeRead the Press Release
Ocala, Florida – David Walter Hendershot (41, Ocala) today pleaded guilty to an indictment charging him with possession of a firearm and ammunition affecting commerce by a previously convicted felon. Hendershot faces a maximum penalty of 10 years in federal prison. A sentencing date has been set for October 25, 2019.
According to the facts described in open court, on March 30, 2019, a City of Ocala police officer discovered Hendershot asleep behind the wheel of a running automobile. Hendershot told the officer that he had been using illegal drugs and that there likely was a firearm in the automobile. A subsequent search revealed a baggie of fentanyl on Hendershot’s person and a loaded handgun in the center vehicle console.
Hendershot confessed that he had a prior robbery conviction in New York. He also admitted that he illegally carried the firearm because he was not going to be “caught without a gun, need it, and not have it.” As a convicted felon, however, Hendershot is prohibited from possessing firearms and ammunition under federal law.
This case was jointly investigated by the Ocala Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
North Carolina Man Indicted for Spree of Harrisburg RobberiesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that David Rinehardt, age 20, of Statesville, North Carolina, was 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
April 6, 2019, Rinehardt and his coconspirators robbed the following five business and their customers at gunpoint in Harrisburg:
- Los Brothers Mini Mart - cash and cartons of cigarettes;
- V and E Market - cash and cartons of cigarettes;
- Sayford Market - cash and other property;
- Al’s Café – credit cards, cellphones, cash, and a tip jar; and
- Beer King – over $1,500 cash.
The criminal information also alleges that on April 8, 2019, Rinehardt and his coconspirators robbed a Rite Aid pharmacy in Harrisburg. The coconspirators brandished firearms at the employees and then fled the store with cash and quantities of oxycodone, acetaminophen, and oxymorphone hydrochloride.
The matter was investigated by the Federal Bureau of Investigation, the Lower Paxton Police Department, and the Harrisburg Bureau of Police. 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.
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Missouri Pain Medicine Doctor and Wife Indicted for Purchasing Illegal Medical Devices and Healthcare FraudRead the Press Release
St. Louis, MO –Dr. Abdul Naushad, 55, and his wife, Wajiha Naushad, 44, both of Town and Country, MO, were indicted today in a 21-count indictment for purchasing non-FDA approved medical devices, Orthovisc, from Canada and England and smuggling the same devices into the United States. The couple was also charged with health care fraud related to billing for the same devices, when they knew Medicare and Medicaid would not reimburse for the non-FDA approved devices. Orthovisc, in a pre-filled syringe, is injected into the knee to relieve osteoarthritis pain and is available only by prescription. Dr. Naushad did not disclose to his patients that they were receiving non-FDA approved Orthovisc.
Dr. Naushad and Wajiha Naushad own and operate a number of pain management clinics, at times simultaneously owning as many as six pain management clinics in Missouri. All the clinics operate under the name Advanced Pain Center or APC.
In 2010, Dr. Naushad, Wajiha Naushad, their pain management clinics, and their billing company reached an $820,000 civil agreement with the United States for submitting false reimbursement claims to Medicare, Medicaid, and TRICARE. The claims falsely indicated that a physical therapist provided one-on-one services to patients, when they knew the services were provided on a machine that was experimental and not covered by federal health care programs.
If convicted, Dr. Naushad and his wife will be excluded from participating in any way with the federal health care programs for a minimum of five years.
In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case is being investigated by the Food and Drug Administration, the Drug Enforcement Administration, the Department of Health and Human Services, and the Missouri Medicaid Fraud Control Unit. Assistant United States Attorney Dorothy McMurtry is handling the case.
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.
Minnesota Couple Pleads Guilty for Long-Running Fraud SchemeRead the Press Release
Detloff Marketing and Asset Management Inc. (Detloff Marketing), a real estate company based in Hopkins, Minnesota; its owner, Jeffery J. Detloff; and its accountant, Lori K. Detloff, pleaded guilty today in the U.S. District Court in St. Paul, Minnesota, for their participation in a long-running fraudulent bidding and kickback scheme in connection with foreclosed properties, the Department of Justice announced today.
According to court documents, from September 2007 and continuing until June 2015, Jeffery Detloff, of Minnetonka, Minnesota, conspired to defraud mortgage lenders and guarantors who had hired Detloff, a realtor, to oversee maintenance and repairs on foreclosed homes in the Minneapolis-St. Paul area. Jeffery Detloff steered maintenance and repair contracts to contractors who would pay a kickback to Detloff Marketing. Unbeknownst to his customers, Jeffery Detloff and Detloff Marketing included the kickbacks within bids and invoices sent to the lender or guarantor for reimbursement on maintenance and repairs. Lori Detloff, also of Minnetonka, Minnesota, was an accountant responsible for ensuring the kickbacks were paid by contractors to Detloff Marketing. In all, Detloff Marketing received over $291,505 in kickbacks.
“For years, the defendants orchestrated and executed a scheme that allowed them to reap illicit profits from homes in foreclosure,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “These plea agreements demonstrate the Justice Department’s continued commitment, and that of our law enforcement partners, to protect victims, including Fannie Mae and Freddie Mac, from those who subvert competition using false, fraudulent, and sham bids.”
“In this case, the Detloffs abused their power and position with self-serving behavior that essentially increased mortgage costs to customers of the victim lenders,” said Jill Sanborn, Special Agent in Charge of the FBI's Minneapolis Division. “The FBI works hand in hand with federal prosecutors to root out this type of fraud and hopes this case has a chilling effect on others who may have designs on similar behavior when put in positions of trust by lenders.”
Detloff Marketing and Jeffery Detloff pleaded guilty to Count 1 of the Indictment, which charged a conspiracy to commit mail and wire fraud affecting a financial institution. Lori Detloff pleaded guilty to aiding and abetting the principal offense described in Count 4 of the indictment, mail fraud affecting a financial institution. As part of their plea agreements, the Antitrust Division agreed to move to dismiss the remaining counts against Detloff Marketing, Jeffery Detloff, and Lori Detloff upon sentencing.
This is the second case involving fraud and kickbacks relating to maintenance and repair contracts for foreclosed properties in the Minneapolis-St. Paul area. The conspiracy and fraud charges carry a maximum penalty of 30 years in prison and a fine of $1,000,000. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
In addition to their guilty pleas, the defendants agreed to pay restitution in the amount of $291,505. The terms of the plea agreements are subject to the approval of the Court.
The plea agreements announced today are the result of a federal investigation of housing repair contracts in the Minneapolis area. The investigation is being conducted by the Antitrust Division’s Chicago Office and the FBI’s Minneapolis Division. Anyone with information on customer allocation, bid rigging, price fixing, or other anticompetitive conduct related to the real estate industry in Minnesota should contact the Antitrust Division’s Chicago Office at 312-984-7200.
McKenzie, Tennessee Man Sentenced to Life Imprisonment for Conspiracy to Distribute MethamphetamineRead the Press Release
Jackson, TN –Marlon "Jazz" Taylor, 34, has been sentenced to life in prison on federal charges of conspiracy to distribute 50 grams or more of actual methamphetamine. U.S. Attorney D. Michael Dunavant announced the sentence today.
This is the first sentencing in a case involving multiple defendants including Nicholas Rodgers, Tarus Taylor, Elizabeth Espey, Terry Weathers, Richie Henderson, Derrick Howard, Duane Smith and Bobby Joe Kemp, Jr. on charges of conspiracy to distribute methamphetamine.
According to information presented in court, the Federal Bureau of Investigation (FBI), United States Postal Inspection Service (USPIS), 24th Judicial District Drug Task Force (JDDTF) and Carroll County Sheriff’s Office began an investigation into Jazz in late 2016. Agents discovered that Jazz and other co-conspirators were trafficking in methamphetamine, cocaine and marijuana from California and Georgia. Investigators used multiple investigation techniques to dismantle this drug trafficking organization to include surveillance, confidential sources, traffic stops, and search warrants.
USPIS and the JDDTF intercepted a package mailed from California to an address in McKenzie, Tennessee. A federal search warrant was executed on the package, which contained approximately 893 grams of actual methamphetamine, with a purity level of 91%, and 1,810 grams of marijuana. In October 2017, the USPS discovered similar shipments from California to a residence in Trezevant, Tennessee. Surveillance of the residence revealed that after the packages were delivered to the residence, they would be delivered to Jazz’s residence in McKenzie, Tennessee. On or about April 2018, Carroll County Sheriff’s Office deputies obtained an arrest warrant for Jazz. Pursuant to the warrant, deputies conducted a parole search at Jazz’s residence and found multiple firearms in the bedroom. Also found was approximately 4.5 pounds of marijuana,
$14,000 in U.S. currency and multiple cell phones. A search of the cell phones revealed multiple text messages between Jazz and co-defendants, detailing drug and money transactions. As a result, FBI agents traveled to California and executed a search warrant on the drug trafficking organization’s source of supply.
On April 10, 2019, Jazz pled guilty to conspiracy to possess with intent to distribute 50 grams or more of methamphetamine.
During the sentencing hearing, the United States put on multiple co-defendants who testified about their involvement in the drug conspiracy, including the drug amounts that were being obtained on behalf of Jazz. The total amount of actual methamphetamine obtained during this drug conspiracy was approximately 7 ½ kilograms of actual methamphetamine, 963.8 grams of cocaine and 12,922.7 grams of marijuana. Jazz was found to be the leader or organizer of the organization involving five or more participants. Jazz’s sentence was also enhanced because firearms were present and for maintaining a stash house.
Also, during the sentencing hearing the United States showed evidence that Jazz attempted to influence the testimony of a co-defendant by sending a note to falsely claim that Jazz had no involvement with methamphetamine. Jazz was found to have attempted to obstruct justice based on this conduct.
U.S. Attorney D. Michael Dunavant said: "Drug trafficking offenses are at the root of some of the gravest problems facing our country. The ‘fruit’ of the drug plague is everywhere; it fills our jails, our courts, our streets, and our nurseries. Accordingly, given that drug dealers themselves sentence many individuals to a lifetime of addiction and dependency, a life sentence for repeatedly dealing large quantities of dangerous drugs is a just and proper punishment in this case. Criminal enterprises that distribute harmful drugs into our rural communities can no longer hide, and this maximum sentence demonstrates our ability to dismantle their organizations."
"Drug dealers are committed to poisoning our neighborhoods with narcotics, but this sentencing should demonstrate that law enforcement has an even greater commitment to disrupt and dismantle drug trafficking organizations," said M.A. Myers, Special Agent in Charge of the Memphis Field Office of the Federal Bureau of Investigation. "This sentence should cause drug traffickers to truly rethink their chosen path, because the FBI and our law enforcement partners will continue to work tirelessly to eliminate these criminal enterprises and lock them up."
"The war on drugs has been an on-going and hard fought battle for law enforcement" stated David M. McGinnis, Inspector in Charge, Charlotte Division. "The U.S. Postal Inspection Service aggressively investigates cases involving the misuse of the U.S. mail system by criminals who traffic illegal contraband such as narcotics. I fully commend the hard work and countless hours put forth by all of the law enforcement agencies involved, which resulted bringing this individual to justice."
Carroll County Sheriff Andy Dickson said: "I would like to begin by taking this opportunity to thank U.S. Attorney Michael Dunavant and his staff of attorneys, especially Jerry Kitchen, who without their tireless work this operation would not have been possible. I would also like to thank all of the agencies that played a part in this intensive drug operation to include the Carroll County Sheriff’s Office, 24th Judicial District Drug and Violent Crime Task Force, the Federal Bureau of Investigation, the Tennessee National Guard Counter Drug Unit and the United States Postal Inspection Service.
The sentence handed down in this case was just part of an ongoing criminal investigation into the distribution of illegal narcotics that affects Carroll and surrounding counties. Others have already been sentenced involving this case and others await their day in front of a United States Federal Court. I would like for this operation to send notice to others in our jurisdiction that if you continue to attempt to poison our citizens with the illegal substances that you sell that we will be working diligently to build a case against you and others."
On July 24, 2019, Senior U.S. District Court Judge J. Daniel Breen sentenced Jazz to life in federal prison followed by 5 years supervised release. There is no parole in the federal system.
This prosecution is part of an extensive investigation by the Organized Crime and Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This case was investigated by the Federal Bureau of Investigation (FBI), United States Postal Inspection Service (USPIS), 24th Judicial District Drug Task Force (JDDTF) and Carroll County Sheriff’s Office.
Assistant U.S. Attorney Jerry Kitchen prosecuted this case on behalf of the government.
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Massachusetts Man Sentenced to 12½ Years for Possession with Intent to Distribute FentanylRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Ariel Martinez, 32, of Lawrence, Massachusetts, was sentenced today in U.S. District by Judge D. Brock Hornby to 12½ years in prison and three years of supervised release for possession with the intent to distribute fentanyl. Martinez pleaded guilty on February 19, 2019.
Court records reveal that on November 21, 2017, state law enforcement agents went to a Brunswick, Maine residence to investigate a suspected drug overdose death. The investigation revealed that the decedent obtained fentanyl from a Massachusetts dealer and how to contact that dealer. The next day, an agent, acting in an undercover capacity, placed an order for 20 grams of fentanyl with that dealer for delivery the next day at a designated time and Brunswick location. Agents stopped a vehicle with Massachusetts plates that arrived at the designated time and location. The defendant was a passenger in the vehicle and admitted to having fentanyl in his shoe and pants. Agents seized about 19 grams of fentanyl from the defendant.
The investigation was conducted by the Maine Drug Enforcement Agency; the Brunswick, Bath and Rockland Police Departments; and the Sagadahoc and Knox County Sheriff’s Offices. This case was investigated and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Maryland Man Pleads Guilty in September 1999 Kidnapping and Sexual Assault of Somerset County, PA GirlRead the Press Release
JOHNSTOWN, Pa. - A resident of Cumberland, MD, pleaded guilty in federal court to charges of kidnapping and aggravated sexual abuse of person under 12 years old, United States Attorney Scott W. Brady announced today.
Timothy D. Nelson, Jr., 50, pleaded guilty to the two-count information before United States District Judge Kim R. Gibson.
"This horrible crime struck fear into the heart of the community," said U.S. Attorney Brady. "Through the perseverance and dedication of law enforcement and the bravery of the victim, justice has been served."
In connection with the guilty plea, the court was advised that on September 19, 1999, Nelson drove into a Cairnbrook, Pennsylvania neighborhood and drove past a group of three children multiple times. The group was walking when the vehicle came by one more time, stopped, and Nelson exited his car and asked them a question. As the minor victim, a 10-year old girl, began to answer, Nelson grabbed the minor victim and placed her in the car through the driver’s side and exited the area. Nelson then placed the minor victim on the floor of the front passenger seat. While driving away from the area of the abduction, Nelson threatened the minor victim with a handgun pointing it at her head. The minor victim was screaming and Nelson struck the minor victim with his hand in an attempt to quiet her.
At some point, Nelson drove the car and the minor victim into West Virginia. When Nelson eventually stopped the car, he forced the minor victim to perform a sex act. Afterwards, Nelson gave the minor victim a paper bag and napkin to clean herself with. Nelson also cleaned himself and then discarded the bag out the window.
Nelson then drove the vehicle in the direction of Markleysburg, Pennsylvania and shortly after crossing the Pennsylvania line from West Virginia, dropped the minor victim off on the side
of the road, instructed her to count to 100, and then proceed to a location to call her mother. Subsequently, another vehicle happened upon the minor victim who was in distress and offered her assistance. Law enforcement responded, to include the Pennsylvania State Police.
The minor victim was subsequently able to direct law enforcement to the location of the sexual assault and the brown paper bag and napkin were recovered which appeared to contain evidence of the above-described assault. The evidence was subsequently forensically examined and determined to contain multiple partial fingerprints and DNA extracted from the bodily fluids. Certain of the recovered partial prints were identified as originating from the minor victim. There remained unidentified latent prints and a search through the Integrated Automated Fingerprint Identification System (IAFIS), did not return any results at that time. Likewise, the FBI Lab was successfully able to identify a suitable DNA profile at that time, but when compared to the FBI Combined DNA Index System (CODIS) database, no matches were detected.
In April 2004, the FBI Laboratory reported that a DNA profile generated from evidence from a different kidnapping / sexual assault of another minor female, which occurred in September 1988 in Hagerstown, Maryland, was a match to the DNA profile of the 1999 Cairnbrook, Pennsylvania kidnapping event. This match was made from the FBI CODIS database, but the identity of the perpetrator of these crimes was still unknown at that time.
Over the years, advancements were made to IAFIS and the new fingerprint identification system called Next Generation Identification system (NGI) came into existence.
In the Fall of 2018, the partial prints obtained from the brown paper bag and napkin were re-submitted to NGI to search for a possible match. NGI identified a possible match with a person identified as Timothy David Nelson. The FBI Laboratory subsequently confirmed the partial prints as a match to Timothy David Nelson, Jr., who was living in Maryland.
On January 7, 2019, an arrest warrant was issued by the Commonwealth of Pennsylvania charging Nelson with multiple offenses to include, but not limited to, Kidnapping and Aggravated Indecent Assault. Also, a federal search warrant was issued for Nelson’s DNA.
On January 8, 2019, Nelson arrived at the Cumberland (MD) City Police Department and the Pennsylvania arrest warrant and the federal DNA search warrant were executed. Subsequent forensic analysis proved that Nelson’s DNA was a match for the 1999 Cairnbrook kidnapping on September 19, 1999, as well as a match to two separate kidnappings/sexual assaults on minor females from 1988 and 1989 in Maryland.
"This case is just one of the many examples that exemplify the FBI’s mission," said FBI Pittsburgh Special Agent in Charge Robert Jones. "Our agents and law enforcement partners are dedicated to seeing cases through no matter how long it takes and working to get justice for our victims."
Judge Gibson scheduled sentencing for August 27, 2019, at 2 p.m. The law provides for a maximum total sentence of life in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Pennsylvania State Police and the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Nelson.
Local Man Convicted of Robbing Local Convenience Stores with a KnifeRead the Press Release
CORPUS CHRISTI, Texas – A 47-year-old resident of Corpus Christi has entered a guilty plea to two counts of robbery causing an interference with interstate or foreign commerce, announced U.S. Attorney Ryan K. Patrick.
On Oct. 29, 2018, Billy Ray Mitchell robbed the Murphy Express convenience store in Corpus Christi at approximately 7:20 a.m. at knife point. Mitchell forced the clerk into the office where a safe was located and robbed the store of cash, cigarettes and duct tape. Mitchell then abducted the clerk, forcing her into her own vehicle and ordering the clerk to drive him to a nearby apartment complex.
Upon arrival there, Mitchell bound and gagged the clerk using the stolen duct tape, took her cellular telephone and departed the area on foot, leaving the clerk in the vehicle.
Police officers searched the area but were unable to locate Mitchell at that time. Later, agents reviewed video surveillance of the convenience store and noticed that Mitchell was wearing a distinctive neon yellow shirt with “MY SHIRT IS BRIGHTER THAN YOUR FUTURE” printed on the front.
On Nov. 8, 2018, at approximately 4 a.m., Mitchell robbed a Circle K convenience store in Corpus Christi, threatening the store clerk with a large kitchen knife. Mitchell brandished the weapon and forced the clerk at knife point to assist in opening the cash register. Mitchell robbed the store of a pack of cigarettes and the entire contents of the cash register. Again, Mitchell forced the clerk from the store and ordered him to drive him from the scene in the clerk’s own vehicle. This time, the clerk yelled out for help to a nearby patron and Mitchell fled the scene on foot.
Police officers searched the area but were unable to locate Mitchell at that time. However, crime scene investigators were able to recover latent fingerprints from a beer cooler that Mitchell touched. When compared, the fingerprints from the store were determined to be a match to Mitchell.
Agents executed a search warrant on Mitchell’s residence the next day and found the distinctive bright yellow shirt he wore during the Murphy Express robbery.
Mitchell later admitted he committed both robberies.
U.S. District Judge Nelva Gonzales Ramos accepted the plea and set sentencing for Nov. 14, 2019, at which time Mitchell faces up to 20 years imprisonment and a maximum $250,000 fine for each count.
Mitchell has been and will remain in custody pending that hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations and the Corpus Christi Police Department conducted the investigation. Assistant U.S. Attorney David Paxton is prosecuting the case.
Laguna Pueblo Man Charged with Assaulting Intimate Partner by Strangling or Suffocating and Domestic Assault by Habitual OffenderRead the Press Release
ALBUQUERQUE – A federal grand jury has indicted a Laguna Pueblo man on charges of aggravated assault of an intimate partner by strangulation or suffocation and domestic assault by a habitual offender.
Patrick Valencia, 49, of Laguna Pueblo, N.M., made his initial appearance on the two-count indictment in federal court in Albuquerque, N.M., yesterday. Valencia was arraigned on the federal charges this morning and entered a not guilty plea. Also during this morning’s court proceedings, Valencia was ordered detained pending trial.
According to the indictment and other court records, Valencia allegedly committed the crimes charged in the Pueblo of Laguna in Cibola County, N.M., on August 5, 2018. On that day, Valencia allegedly assaulted his intimate partner by strangling and suffocating her. At the time, Valencia previously had been convicted of domestic assaults in the Tribal Court for the Pueblo of Laguna Pueblo court on four prior occasions.
The U.S. Marshal’s Service arrested Valencia on July 17, 2019, at the Pueblo of Laguna Detention Facility where he was being held on related trial charges.
If convicted, Valencia faces up to ten years of imprisonment on the assault of an intimate partner by strangulation or suffocation charge, and up to five years on the domestic assault by an habitual offender charge. Charges in indictments are only allegations. A defendant is presumed innocent unless and until proven guilty.
The BIA Office of Justice Services investigated this case with assistance from the Pueblo of Laguna Tribal Police Department and the U.S. Marshals Service. Assistant U.S. Attorney Michael Murphy is prosecuting the case.
Jury Convicts San Antonio East Side Gang Member on Federal Drug and Firearms ChargesRead the Press Release
Marcus Phillips, a 32-year-old member of the East Terrace Gangsters, faces federal prison time after a jury yesterday afternoon found him guilty of drug and firearms charges, announced U.S. Attorney John Bash.
A federal jury in San Antonio convicted Phillips of one count of possession with intent to distribute more than 28 grams of “crack” cocaine, one count of felon in possession of a firearm, and one count of possession of a firearm in furtherance of a drug trafficking crime. The jury acquitted Phillips of possession with intent to distribute “powder” cocaine.
Evidence at trial revealed that in October 2017, Phillips was operating a stash-type house on the east side of San Antonio. The San Antonio Police Department obtained a search warrant and, upon execution, found nearly one-half kilogram of cocaine--100 grams of which had already been converted into “crack” cocaine; all the tools necessary to convert the powder cocaine into “crack” cocaine were located on the kitchen counter. SAPD also found two assault-style pistols each loaded with 30-round magazines and a bolt-action rifle inside the house along with $1,064 in U.S. Currency.
This warrant occurred during a time of escalating gang violence on the east side of San Antonio.
Phillips, who remains in federal custody, faces a minimum mandatory ten years and up to life in federal prison. Sentencing is scheduled for 10:00am on October 24, 2019, before Chief U.S. District Judge Orlando Garcia in San Antonio.
The San Antonio Police Department investigated this case with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the U.S. Drug Enforcement Administration (DEA).
Jamaican National Caught Smuggling Cocaine at Charlotte Airport Is Sentenced to 33 Months in Federal PrisonRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Andrew Murray announced today that Keshon Kevino Hawthorne, 27, of Jamaica, was sentenced by Chief U.S. District Judge Frank D. Whitney to 33 months in prison and three years of supervised release for smuggling cocaine at the Charlotte-Douglas International Airport (Charlotte airport).
According to filed court documents and today’s sentencing hearing, on November 4, 2018, Hawthorne flew into Charlotte onboard a flight that originated in Montego Bay, Jamaica, with a final destination to New York City. At the airport, Customs and Border Patrol (CBP) agents inspected Hawthorne’s luggage, and seized more than one kilogram of cocaine hidden inside his two suitcases. According to court records, Hawthorne told law enforcement that he had been paid $600 by an individual in Jamaica to deliver the drugs to New York City. Hawthorne also told law enforcement that he had traveled to the United States on 14 occasions in the preceding year, each time smuggling cocaine hidden inside his luggage.
Hawthorne previously pleaded guilty to drug trafficking conspiracy, possession with intent to distribute cocaine, and unlawful importation of cocaine into the United States. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
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In a separate case, on Monday, July 22, 2019, Judge Whitney sentenced Christopher Anthony Samuels, 37, of Montego Bay, Jamaica, to 30 months in prison and three years of supervised release on cocaine trafficking and related charges. According to filed court documents, in November 2018, Samuels flew into the Charlotte airport onboard a flight that originated in Montego Bay, Jamaica. Samuels was scheduled to connect in Charlotte, and fly the same day to New York City. Court records show that, upon entry into the United States, Samuels’ suitcase and backpack were inspected by CBP agents at the airport. Samuels was sent to secondary inspection, during which time CBP officers X-rayed Samuels’ luggage. Upon further inspection, CBP officers, working jointly with Homeland Security Investigations (HSI), discovered two taped bags weighing approximately two kilograms of cocaine, hidden within the suitcase’s bottom liners. As Samuels previously admitted in court, he intended to deliver the cocaine to co-conspirators located in New Jersey. Samuels pleaded guilty to drug trafficking conspiracy, possession with intent to distribute cocaine, and unlawful importation of cocaine into the United States.
In making today’s announcement, U.S. Attorney Murray noted that both cases are the result of the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Airport Drug Interdiction Initiative, that targets international drug smuggling and financial crimes, including money laundering, bulk cash smuggling, and unlicensed money transmitters/transporters that utilize air travel to further their criminal enterprise. Through this initiative, HSI incorporates the collaborative efforts of multiple law enforcement agencies, to include CBP, North Carolina Department of Public Safety’s Divisions of Alcohol Law Enforcement (ALE) and Department of Correction (DOC), and the Charlotte-Mecklenburg Police Department.
Sanjeev Bhasker, Assistant U.S. Attorney for the Western District of North Carolina in Charlotte prosecuted both cases.
Jacksonville Man Sentenced to 5 Years in Federal Prison for Distributing Child Sex Abuse Photos over the InternetRead the Press Release
Jacksonville, Florida – United States District Judge Brian J. Davis has sentenced Marc Lionel Lewis (52, Jacksonville) to five years in federal prison for distributing images depicting the sexual abuse of young children over the internet. Lewis had pleaded guilty on April 4, 2019. Lewis was also ordered to serve a 12-year term of supervised release, pay $5,100 in court assessments, and register as a sex offender.
According to court documents, agents with Homeland Security Investigations (HSI) began an investigation to identify individuals who were using a particular online file-sharing network to access and distribute child pornography. The agents confirmed that a host computer located in Jacksonville was offering files depicting child pornography for sharing over the internet. They downloaded images of an infant, a toddler, and other young children being sexually abused from this host computer. Further investigation revealed that these files were being shared by Lewis.
On July 17, 2017, HSI agents executed a search warrant at Lewis’ residence. Forensic analysis of Lewis’s computer media revealed approximately 40 images of child pornography and 142 images of child erotica. Lewis had unsuccessfully attempted to delete these files using file shredding software. By accessing child pornography through this file sharing program, Lewis knowingly made it available for sharing and distribution.
This case was investigated by Homeland Security Investigations. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Irish Man Who Helped Operate the “Silk Road” Website Sentenced in Manhattan Federal Court to over Six Years in PrisonRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that GARY DAVIS, a/k/a “Libertas,” was sentenced today to 78 months in prison for his role as a member of the small administrative staff of the “Silk Road” website. Silk Road was an online black market of unprecedented scope. During its operation from 2011 until 2013, Silk Road was used by thousands of drug dealers and other unlawful vendors to distribute over $200 million worth of illegal drugs and other illicit goods and services to more than 115,000 buyers, and to launder hundreds of millions of dollars derived from those unlawful transactions. DAVIS previously pled guilty before United States District Judge Jesse M. Furman, who also imposed today’s sentence.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Gary Davis helped run the Silk Road website – a dark web marketplace for illegal drugs, hacking services, and other criminal activity. Davis’s arrest, extradition from Ireland, conviction, and prison sentence should send an unmistakable message: the dark web does not cast shadows long enough to protect criminals from the long arm of the law.”
According to the allegations in the Superseding Indictment, court filings, statements made in court, and evidence presented during the 2015 trial of Ross Ulbricht, Silk Road’s founder:
From approximately January 2011 until October 2, 2013, the Silk Road website hosted a sprawling black market bazaar on the Internet, where illegal goods and services were regularly bought and sold by the site’s users. During its more than two-and-a-half years in operation, Silk Road was used by nearly 4,000 vendors to distribute illicit goods and services to more than 115,000 buyers, including hundreds of kilograms of illegal drugs, fake IDs and passports, computer hacking tools and services, counterfeit goods and pirated media, and money laundering services. In total, more than 1.5 million transactions were conducted over Silk Road, with a total value of more than $213 million in U.S. currency. Nearly 95 percent of those sales (approximately $183 million worth) were for illegal drugs.
The owner and operator of Silk Road, Ross William Ulbricht, a/k/a “Dread Pirate Roberts,” a/k/a “DPR,” a/k/a “Silk Road,” ran the website with the assistance of a small support staff, including both site administrators and forum moderators. The site administrators were responsible for, among other things, monitoring user activity on Silk Road for problems, responding to customer service inquiries, and resolving disputes between buyers and vendors. The forum moderators were responsible for, among other things, monitoring user activity on discussion forums associated with the site, providing guidance to forum users concerning how to conduct business on Silk Road, and reporting any significant problems discussed on the forums to the site administrators and to Ulbricht.
From approximately May 2013 until June 2013, GARY DAVIS, a/k/a “Libertas,” served as a forum moderator for Silk Road. From approximately June 2013 until October 2, 2013, DAVIS worked as a site administrator on Silk Road. In his role as a site administrator, DAVIS’s responsibilities included (1) responding to customer support requests from Silk Road users who needed assistance with their buyer or seller accounts on the marketplace; (2) investigating disputes that arose between vendors (e.g., drug dealers) and buyers, including reporting his findings to Ulbricht; and (3) helping enforce the rules for doing business on Silk Road, which had been set by Ulbricht. For instance, there was a rule against “out of escrow” sales – i.e., sellers and buyers arranging payments off the site to avoid paying Silk Road commissions. When violations of this rule were discovered, DAVIS had the ability to demote a vendor or refer the vendor (e.g., to Ulbricht) for further discipline. Ulbricht paid DAVIS a weekly salary for his work as a site administrator.
Shortly after law enforcement shut down the original Silk Road in early October 2013, its virtually identical successor – Silk Road 2.0 – was launched. From approximately November 2013 until December 2013, DAVIS served as an administrator for Silk Road 2.0.
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In addition to his prison term, GARY DAVIS, 31, of Wicklow, Ireland, was ordered to serve three years of supervised release and to forfeit $25,000.
Mr. Berman praised the outstanding joint efforts of the Federal Bureau of Investigation and its New York Special Operations and Cyber Division, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations - Chicago-O’Hare, the Drug Enforcement Administration’s New York Field Division, and the Internal Revenue Service - Criminal Investigation’s New York Field Office. Mr. Berman also thanked both the Irish Republic’s Computer Crime Investigation Unit of the An Garda Siochana and the U.S. Department of Justice’s Office of International Affairs for their valuable assistance and support.
This case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Michael D. Neff, Eun Young Choi, and Timothy T. Howard are in charge of the prosecution.
Indian National Sentenced to More Than 20 Years for Filming Sexual Abuse of an 11-Year-Old ChildRead the Press Release
Fort Myers, FL – U.S. District Judge Sheri Polster Chappell has sentenced Divesh Valanju (30, India) to 21 years and 10 months in federal prison for producing child pornography. Valanju had pleaded guilty on April 11, 2019.
According to court documents, Valanju met an 11-year old child via two online messaging apps. He lied about his name on the apps and exchanged sexually-explicit images with the child. On two occasions, Valanju arranged to meet the child at Max Hasse Park in Collier County. After the victim’s parents dropped her off at the park, purportedly to meet her friends, Valanju picked the child up, drove her to a motel and filmed sex acts that he performed with the child.
This case was investigated by the Federal Bureau of Investigation’s Innocent Images Task Force. It was prosecuted by Assistant United States Attorney Charles Schmitz.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Illinois Men Sentenced to Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on Tuesday, July 16, 2019, Cameron Felder, age 41, and Nathaniel Thomas, age 37, were sentenced by United States District Court Chief Judge John A. Jarvey for Conspiracy to Distribute a Controlled Substance. Felder was sentenced to 70 months in prison and Thomas was sentenced to 150 months imprisonment. They will each serve a term of supervised release of four years when released from prison.
In August 2018, the Iowa State Patrol conducted a traffic stop of Felder and Thomas’ vehicle for speeding on I-29 in Fremont County. As the trooper approached the vehicle, the occupants were uncooperative and required numerous commands to shut the car doors and turn the car off.
The trooper immediately detected the odor of burnt marijuana. Thomas handed the trooper a baggie of marijuana out the passenger window. A search was performed on the vehicle and officers located over 200 grams of methamphetamine in pill form.
This case was investigated by the Iowa State Patrol, Southwest Iowa Narcotics Enforcement Task Force, and the Iowa Division of Narcotics Enforcement. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Illinois Man Convicted After Jury Trial Sentenced to 3 Years’ ImprisonmentRead the Press Release
HAMMOND- Airrion Blake, 41, of Lansing, Illinois was sentenced before U.S. District Court Joseph S. Van Bokkelen after being convicted during a 3-day jury trial of one count of submitting a false claim to the federal government and one count of theft of government money, announced U.S. Attorney Kirsch.
Blake was sentenced to 36 months’ imprisonment followed by 2 years’ supervised release.
According to court records, Blake stole $149,358.35 from the federal government. Blake filed a false trusts and estates tax return in October 2012 in which he provided fictitious figures for his income, deductions, and tax withholdings, and falsely claimed a refund of $149,358.35. He received a refund based on his filing, deposited the check at a Munster, Indiana bank, and proceeded to spend the funds. Blake repeated his scheme several other times seeking a total of over $1 million of tax-payer money, but those other attempts were denied by the IRS.
This case was handled by the Internal Revenue Service, Criminal Investigation Division. This case was prosecuted by Assistant United States Attorneys Alexandra McTague and Nathaniel Whalen.
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Illegal Drone Operator Pleads Guilty After Attempting to Drop Drugs into A Georgia State PrisonRead the Press Release
ALBANY – A Georgia man who was illegally operating an unmanned aircraft system (UAS) to drop contraband into Autry State Prison has pleaded guilty for his crime, said U.S. Attorney Charles “Charlie” Peeler. Eric Lee Brown, 35, of Lithonia, Georgia pleaded guilty to one count of Operating an Aircraft Eligible for Registration Knowing that the Aircraft is Not Registered to Facilitate a Controlled Substance Offense before U.S. District Court Judge Louis Sands on Thursday, July 25, 2019. Mr. Brown is facing a maximum sentence of five years imprisonment, three years supervised release, and a fine of $250,000.
Mr. Brown admitted in his signed plea agreement that he attempted to use a drone to drop a large bag of marijuana into Autry State Prison in Pelham, Georgia. Mitchell County deputies responded to a call on March 29, 2018 about a vehicle impeding the flow of traffic near the prison. Mr. Brown was inside the vehicle, and deputies smelled marijuana and observed the drone. They also saw two clear plastic bags containing a green, leafy substance that later was confirmed to be 294 grams of marijuana. Mr. Brown was taken into custody. Search warrants revealed detailed conversations about using the drone to drop drugs into the prison. Mr. Brown did not register the DJI Phantom 4 drone which was found in his possession, and he also did not have a valid FAA Airman’s Certificate or Remote Pilot Certificate, both actions required by law.
“Working with state, local and federal authorities, our office will aggressively prosecute those who choose to smuggle cellphones, drugs or any other contraband into our state prisons. The use of drones is regulated by federal criminal statutes, and our office will not hesitate to use those statutes in the fight against prison contraband,” said Charlie Peeler, the U.S. Attorney. “I applaud the Department of Transportation, the Georgia Department of Corrections, and our local law enforcement for thinking creatively to bring this defendant to justice.”
“Mr. Brown’s guilty plea should be a very clear warning to anyone who chooses to illegally operate unmanned aircraft systems (UAS) for unintended purposes,” said Todd Damiani, Department of Transportation Office of Inspector General (DOT OIG) Regional Special Agent in Charge. “DOT OIG special agents, along with our federal, state, and prosecutorial law enforcement partners, will actively pursue those who unlawfully use federally-regulated modes of transportation for the distribution of controlled substances or contraband.”
“We are pleased to see justice being served on this individual, and we hope that his actions, and subsequent prosecution in the first-known criminal prosecution under this drone registration law, will serve as a warning to others considering introducing contraband into our facilities,” said Timothy C. Ward, Commissioner of the Georgia Department of Corrections. “We applaud the work of our Special Agents, and we appreciate the commitment and collaboration of our law enforcement partners in their efforts to help ensure the safety of the public.”
The case was investigated by the Department of Transportation Office of Inspector General (DOT OIG), the Georgia Department of Corrections, and the Mitchell County Sheriff’s Office. Assistant U.S. Attorney Leah E. McEwen is prosecuting the case for the Government.
Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
High Ranking Gang Member Receives 12 Years in Federal PrisonRead the Press Release
RALEIGH — Robert J. Higdon, Jr., the United States Attorney for the Eastern District of North Carolina, announces that Chief United States District Terrence Boyle sentenced ANDRE HALL, 31, of New Hanover County to 151 months’ imprisonment, followed by 3 years of supervised release.
HALL was charged in a one-count indictment which was returned by a federal grand jury sitting in the Eastern District of North Carolina on December 30, 2018. The indictment charged HALL with possession with the intent to distribute a quantity of heroin. HALL pled guilty to those charges on April 2, 2019.
On December 2, 2018, law enforcement conducted a traffic stop on a car driven by HALL near the 600 block of Nixon Street in Wilmington, North Carolina. The front passenger fled from law enforcement. The backseat passenger attempted to flee but was apprehended and found to be in possession of a stolen firearm with altered serial numbers. HALL refused to comply with law enforcements commands. HALL broke a deputy’s nose and finger while he was attempting to flee. HALL was found in possession of 45 bags of heroin. According to law enforcement HALL is a validated high ranking gang member.
This case is part of an FBI lead OCDETF operation “Dodge Ball”. This is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). This investigation is focused on gang members involved in the distribution of heroin, possession of firearms and associated violence.
This case is also part of the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The investigation of this case was conducted by the Federal Bureau of Investigation Safe Street Task Force, the Wilmington Police Department and the New Hanover County Sheriff’s Office. Assistant United States Attorney Timothy Severo prosecuted the case on behalf of the government.
Granger, Indiana Man Sentenced to over 5 Years in Prison and Ordered to Pay over $1.6 Million in RestitutionRead the Press Release
SOUTH BEND – A former South Bend senior executive at a Mishawaka business has been sentenced to 63 months in federal prison and 1 year of supervised release, and was ordered to pay $1,666,721.10 in restitution for devising a scheme to defraud his former employer, announced U.S. Attorney Kirsch.
James Cotton, age 58, of Granger, Indiana, was sentenced before U.S. District Court Judge Robert L. Miller, Jr., upon his plea of guilty to wire fraud that was entered earlier this year. He admitted that from approximately January 2009 to October 2017, he devised a fraud scheme to obtain money from his employer by means of false representations. In particular, Mr. Cotton created five sham businesses which did not have any actual employees and did not engage in any actual legitimate business activity. Mr. Cotton then fabricated fake invoices from these five sham businesses and sent those invoices to his employer to obtain payment for purported goods and services. Mr. Cotton approved the sham invoices on behalf of his employer, which then issued payment checks for each invoice. Mr. Cotton obtained the checks, deposited them into bank accounts opened in the names of the sham businesses, and then withdrew the money from these accounts for his own personal use and benefit.
“The amount of Mr. Cotton’s fraud is staggering, with over $1.6 million in loss to his employer. With the great work of the FBI, we were able to bring this case to a successful conclusion with an order of restitution and significant jail time,” said U.S. Attorney Thomas L. Kirsch II.
"We expect the people we work with to be honest and trustworthy, but Mr. Cotton chose to betray his employer’s trust for his own financial gain,” said Grant Mendenhall, Special Agent in Charge of the FBI’s Indianapolis Division. “The FBI and our law enforcement partners will continue to investigate cases such as this to ensure those who take advantage of others through illegal and criminal behavior are held accountable.”
This case was investigated by the FBI and handled by Assistant United States Attorney Luke N. Reilander.
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Governor of Tipton County, TN Gangster Disciples Pleads Guilty to RICO ConspiracyRead the Press Release
Memphis, TN – Robert Elliott Jones, 39, a/k/a/ "Lil Rob," a/k/a/ "Mac Rob" has pled guilty to conspiracy to participate in a racketeering enterprise. U.S. Attorney D. Michael Dunavant announced the guilty plea today.
According to the superseding indictment, the Gangster Disciples is a highly-organized criminal street gang with nationwide reach. In addition to Tennessee, the gang reportedly operates in more than 35 states. The Gangster Disciples were organized into different positions, including board members, and governor-of-governors who each controlled geographic regions; governors, assistant governors, chief enforcers and chief of security for each state or regions within the state where the Gangster Disciples were active; and coordinators and leaders within each local group.
During the change of plea hearing, Jones admitted that he was the Governor of Section 4, which covers Tipton County, TN, including Covington. The superseding indictment that Jones entered a guilty plea to indicates that as Governor over a region he was responsible for supervising the criminal activities of the members and associates of the Gangster Disciples enterprise; issuing orders to kill rival gang members and subordinate gang members who he believed had violated Gangster Disciple rules of conduct; and presiding over Gangster Disciple meetings where criminal activity was discussed, proceeds were collected and beatings of fellow gang members were administered.
The superseding indictment further alleges that Jones declared Covington, TN as "GD Land" and issued a green light to a subordinate gang member to kill rival gang members in Covington, TN.; he issued an order to kill a subordinate gang member whom the Gangster Disciples believed had cooperated with law enforcement; and sent a photograph of the Treasurer of Section Four who stole $2300 from the Regional Enforcer for the State of Tennessee who was "looking for all money stealers".
Sentencing is set for October 17, 2019, before U.S. District Court Judge John T. Fowlkes, Jr., where Jones faces a possible sentence of up to life imprisonment, $250,000 fine and 5 years of supervised release. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said: "Despite Lil Rob’s declaration, Covington is not and will not be ‘GD Land.’ We are fighting to reclaim our cities, towns, and neighborhoods from the gangs, and are effectively dismantling their leadership and influence. Lil Rob will now pay for his violence and racketeering that has terrorized Tipton County, and the citizens are safer for it."
This case was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, Tennessee Bureau of Investigations, Jackson Police Department Gang Enforcement Team, Memphis Police Department, Shelby County Sheriff’s Office, 28th District West Tennessee Drug Task Force, 26th, 25th, and 30th Judicial District Attorney’s General Offices, Sheriff’s Offices for Tipton, DeSoto, Madison and Fayette Counties, Police Departments of Bartlett, Germantown and Columbia.
Assistant U.S. Attorneys Beth C. Boswell and Annie Christoff of the Western District of Tennessee and Trial Attorney Shauna Hale of the Criminal Division Organized Crime and Gang Section are prosecuting this case on behalf of the government.
Geneseo Man Charged with Five Counts of Sexual Exploitation of a ChildRead the Press Release
ROCK ISLAND, Ill. – An initial trial date of Sept. 23, 2019, has been scheduled for a Geneseo, Ill., man, Tristan Scott Blank, 22, who has been arrested and indicted on federal child sexual exploitation charges.
The indictment alleges that between April 2016 and August 2018, Blank employed, used, persuaded, induced, enticed, and coerced five minors to engage in sexually explicit conduct to produce images of such conduct and transmit the images in interstate commerce.
If convicted, the statutory maximum penalty for each count of sexual exploitation is 30 years in prison. Each of the five counts includes a fine of up to $250,000.
On July 22, 2019, Blank was arrested and made his initial court appearance. Blank was arraigned in Davenport, Iowa on July 24, before Chief U.S. District Court Judge Sara Darrow, when the September trial date was scheduled and Blank was ordered to remain in the custody of the U.S. Marshals Service.
The case is being prosecuted by Assistant U.S. Attorney Alyssa A. Raya. The charges are the result of an investigation by the Geneseo Police Department, the Illinois State Police, the Henry County Sheriff’s Office, the Colona Police Department, the Kewanee Police Department, and the U.S. Secret Service.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former Washington Metro Transit Police Officer Charged with Civil Rights Offense for Assaulting an IndividualRead the Press Release
A former Washington, D.C. Metro Transit Police Officer, Andra Vance, 45, was indicted today on charges that he used unreasonable force on an individual, announced Assistant Attorney General Eric Dreiband of the Department of Justice’s Civil Rights Division, U.S. Attorney for the District of Columbia, Jessie K. Liu, and Metro Transit Police Chief Ronald A. Pavlik.
According to the indictment, on Feb. 16, 2018, Vance, while on duty as a Metro Transit Police Officer, assaulted an individual by striking the individual with a baton multiple times on the head and then using the baton to choke the individual. Vance’s actions resulted in bodily injury to the individual.
Vance faces a maximum statutory penalty of 10 years in prison and a fine of up to $250,000 for each of the two civil rights violations. An indictment is merely an accusation, and a defendant is presumed innocent unless proven guilty.
The Metro Transit Police Department conducted a routine review of Vance’s use of force within hours of the incident. Based on the review, the department immediately suspended Vance’s police powers, launched an internal investigation, and notified federal authorities.
Assistant U.S. Attorney Kendra Briggs of the District of Columbia and Trial Attorney Nicholas Reddick of the Justice Department’s Civil Rights Division are prosecuting the case.
Former Washington Metro Transit Police Officer Charged with Civil Rights Offense for Assaulting an IndividualRead the Press Release
WASHINGTON – A former Washington, D.C. Metro Transit Police Officer, Andra Vance, 45, was indicted today on charges that he used unreasonable force on an individual, announced Assistant Attorney General Eric Dreiband of the Department of Justice’s Civil Rights Division, U.S. Attorney for the District of Columbia, Jessie K. Liu, and Metro Transit Police Chief Ronald A. Pavlik.
According to the indictment, on Feb. 16, 2018, Vance, while on duty as a Metro Transit Police Officer, assaulted an individual by striking the individual with a baton multiple times on the head and then using the baton to choke the individual. Vance’s actions resulted in bodily injury to the individual.
Vance faces a maximum statutory penalty of 10 years in prison and a fine of up to $250,000 for each of the two civil rights violations. An indictment is merely an accusation, and a defendant is presumed innocent unless proven guilty.
The Metro Transit Police Department conducted a routine review of Vance’s use of force within hours of the incident. Based on the review, the department immediately suspended Vance’s police powers, launched an internal investigation, and notified federal authorities.
Assistant U.S. Attorney Kendra Briggs of the District of Columbia and Trial Attorney Nicholas Reddick of the Justice Department’s Civil Rights Division are prosecuting the case.
Former Volunteer Sheriff's Deputy Sentenced to 30 Months in PrisonRead the Press Release
LITTLE ROCK— A former volunteer Sheriff’s Deputy with the Arkansas County Sheriff’s Office has been sentenced to 30 months in federal prison for extorting confidential informants to steal an ATV and firearms. Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the FBI’s Little Rock Field Office, announced today’s sentence.
Charles David Chastain, 48, of Stuttgart, was sentenced today by United States District Judge Leon Holmes. Chastain was employed as a volunteer Auxiliary Sheriff’s Deputy for the Arkansas County Sheriff’s Office. He was assigned to the Tri-County Drug Task Force, where he utilized confidential informants to develop drug cases in Arkansas County and surrounding areas.
“Law enforcement officers and their families make sacrifices every day to protect and serve our communities. Unfortunately, when an officer is found to have abused their position, the trust and respect that law enforcement works so hard to maintain is undermined. A violation of that sacred public trust will not be tolerated,” said U.S. Attorney Hiland. “Today’s sentence is a reflection of the fundamental principle that no one is above the law, and an officer who abuses his position will be held accountable.”
A federal jury convicted Chastain in February of Hobbs Act extortion, attempted Hobbs Act extortion, and receipt of a firearm with intent to commit a felony. Testimony during the trial established that two confidential informants worked for Chastain in an effort to reduce criminal charges. In the fall of 2017, Chastain asked those informants to steal an ATV for him. One of the informants went to a duck hunting club in Clarendon and stole a Browning Edition, Polaris Ranger 900 ATV valued at just under $25,000. The informant stole the ATV in exchange for favorable treatment from Chastain concerning criminal charges, but the informant also reported the theft to the FBI. Testimony indicated that both informants were concerned Chastain would refuse to give them credit for their cooperation if they did not meet his demands.
Trial testimony also indicated that in December of 2017, Chastain asked one of the informants to commit another burglary, this time with the goal of stealing firearms from a storage unit in Arkansas County. Text messages admitted at trial showed that the informant asked if there were cameras at the storage unit, and Chastain replied, “Long sleeve shirts and a mask would make it a moot point.” The informant did not commit that burglary, and instead worked with the FBI and the Arkansas State Police to obtain three firearms to offer for sale to Chastain.
Evidence at trial showed that the informant told Chastain the firearms were stolen and included a Chinese Type 56-1, which is similar to an AK-47 rifle, a Colt M16 A1, and a Winchester M14. Chastain agreed to buy the purportedly stolen firearms from the informant for $300. He was arrested shortly thereafter with those rifles in his possession. Investigators later executed a search warrant at Chastain’s shop, where they located the stolen Polaris Ranger.
In addition to 30 months in prison, Judge Holmes sentenced Chastain to one year of supervised release following his term of imprisonment. The case was investigated by the FBI with assistance from the Arkansas State Police.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online athttp://www.justice.gov/edar
Twitter: @EDARNEWS
Former Precious Metals Trader Pleads Guilty to Attempted Commodities Price ManipulationRead the Press Release
A former precious metals trader at the New York offices of a U.S. bank and a Canadian bank pleaded guilty today to attempted price manipulation of precious metals futures contracts, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office.
Corey Flaum, 41, of Mount Kisco, New York, pleaded guilty in the Eastern District of New York to an information charging him with one count of attempted commodities price manipulation. Sentencing is scheduled for Oct. 29, 2019, before U.S. District Judge Brian M. Cogan of the Eastern District of New York, who accepted his plea today.
According to admissions made as part of his plea and other statements made in court, between approximately June 2007 and July 2016, Flaum placed thousands of orders to manipulate the prices of gold, silver, platinum and palladium futures contracts traded on the New York Mercantile Exchange Inc. (NYMEX) and Commodity Exchange Inc. (COMEX), which are commodities exchanges operated by CME Group Inc. Flaum routinely placed orders for precious metals futures contracts with the intent to cancel those orders before execution. This trading strategy was intended to deceive other market participants about the existence of supply and demand, and to artificially move the price of precious metals futures contracts in a direction that was favorable to Flaum and the two banks for which he worked.
This case is the result of an ongoing investigation by the FBI’s New York Field Office. Trial Attorneys Avi Perry, Matthew F. Sullivan and Alexander Kramer of the Criminal Division’s Fraud Section are prosecuting the case. The Commodity Futures Trading Commission’s Division of Enforcement provided assistance in this case.
The defendant is cooperating with the ongoing investigation.
Individuals who believe that they may be a victim in these cases should visit the Fraud Section’s Victim Witness website for more information.
Former Owner/Operator of Fall River Glass Company Sentenced for Federal Payroll Tax ChargesRead the Press Release
BOSTON – The former owner of a now closed Fall River-based glass company was sentenced today in federal court in Boston for failing to report and pay to the IRS taxes he had withheld from his company’s employees.
Moses Rapoza, 83, of Lakeville, was sentenced by U.S. District Court Judge Richard G. Stearns to three years of probation with the first six months to be served in home detention on electronic monitoring and ordered to pay $327,218 in restitution and a $1200 special assessment. In March 2019, Rapoza pleaded guilty to one count of filing a false tax return and 11 counts of failing to pay over to the IRS the taxes he withheld from employee wages.
Rapoza was described as the former owner and operator of Global Specialty Glass Contractors Inc., a glass installation business previously located in Fall River. For every calendar quarter from 2011 through 2014, Rapoza withheld income taxes and Federal Insurance Contributions Act (FICA) taxes from wages he paid to his employees, but failed to pay those taxes to the IRS on behalf of the employees. In addition, Rapoza filed a false Form 941 tax return with the IRS, knowing that it understated the amount of wages he had paid to employees.
United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement. Assistant U.S. Attorney Victor A. Wild of Lelling’s Security and Financial Fraud Unit prosecuted the case.
Former Head of People Express Airlines Pleads Guilty to FraudRead the Press Release
NEWPORT NEWS, Va. – A Suffolk man pleaded guilty today to fraud in connection with the failure of People Express Airlines in 2014 and the filing of a false income tax return.
According to court documents, Michael Morisi, 59, was the former president of People Express Airlines, Inc. (PEX), which engaged in failed start-up operations at the Newport News / Williamsburg International Airport. Morisi led the push to get PEX operational, despite a failed track record of obtaining private investments and significant outstanding liabilities. A switch to a focus on the public commitment of funds led to PEX obtaining a $5 million loan from TowneBank that was guaranteed by the Peninsula Airport Commission (PAC). The loan was funded in June 2014. Within a month, PEX had drawn down nearly the entire loan amount. PEX operated for approximately three months before suspending service due. In the aftermath of the suspension of operations, various creditors sought repayment from PEX in 2014 and 2015.
At the same time, Morisi opened new bank accounts to receive insurance proceeds and avoid the seizure of funds. Morisi provided false representations to creditors (including the PAC, which paid over $4 million to satisfy the TowneBank loan) claiming that no funds were available. He made large purported back salary payments to himself and other executives in lieu of paying creditors. When the first bank account was made subject to a state tax lien, Morisi moved accounts again so that he could receive and divert additional insurance proceeds. He also filed false tax returns for three years omitting income and failed to file returns for two additional years.
Morisi pleaded guilty to one count of wire fraud and one count of filing a false federal income tax return. He faces a maximum penalty of 23 years in prison when sentenced on November 15. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), Colonel Gary T. Settle, Virginia State Police Superintendent, and Jamie Mazzone, Regional Special Agent in Charge for the Department of Transportation Office of Inspector General, made the announcement after U.S. Magistrate Judge Lawrence R. Leonard accepted the plea. Assistant U.S. Attorney Brian J. Samuels and Lisa R. McKeel are prosecuting 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. 4:19-cr-44.
Former Chicago Resident Sentenced to 5 Years in Prison for Participating in $100 Million Money Laundering Conspiracy Involving Mexican Drug CartelsRead the Press Release
CHICAGO — A former Chicago resident who laundered illegal drug proceeds on behalf of two cartels in Mexico has been sentenced to five years in federal prison.
MARIO HERRERA was a member of a Mexico-based conspiracy that laundered more than $100 million in narcotics proceeds on behalf of the Jalisco New Generation and Sinaloa cartels. Herrera was personally responsible for laundering or attempting to launder at least $1.07 million in proceeds from the sale of cartel narcotics. Herrera was among 30 defendants charged as part of the Chicago-based federal investigation dubbed “Operation King’s Gold.”
Herrera, 55, of Michoacán, Mexico, and formerly of Chicago, pleaded guilty last year to one count of conspiracy to commit money laundering. U.S. District Judge Andrea R. Wood imposed the five-year 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 Chicago office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Tara Sullivan, Acting Special Agent-in-Charge of the Chicago office of the Internal Revenue Service Criminal Investigation Division; and Timothy Jones, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives. Substantial assistance was provided by the U.S. Drug Enforcement Administration, Cook County Sheriff’s Office, DuPage County Sheriff’s Office, Chicago Police Department, Buffalo Grove Police Department, Joliet Metropolitan Area Narcotics Squad, and the U.S. Marshals Service.
The probe was conducted under the umbrella of the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies, whose principal mission is to identify, disrupt and dismantle the most serious drug trafficking and money laundering organizations.
“Money is the lifeblood that allows cartels to poison U.S. streets and wage war on innocent men, women, and children on both sides of the border,” Assistant U.S. Attorneys Peter M. Flanagan, Sean K. Driscoll and Aaron R. Bond argued in the government’s sentencing memorandum. Herrera “took part in an organization that shuttled over $100 million in drug proceeds from street corners of the United States to the pockets of the individuals in Mexico who control the drug trade. The people who import these narcotics do so for money, and that is exactly what the defendant delivered.”
“This sentence sends a resounding message that transnational criminal organizations will be investigated and their operatives brought to justice,” said HSI Special Agent-in-Charge Gibbons. “The amount of cooperation between HSI and our state, federal, and international partners is invaluable to halting the deadly actions of complex drug organizations.”
“The laundering of illegal drug profits is as important and essential to drug traffickers as the very distribution of their illegal drugs,” said IRS-CI Acting Special Agent-in-Charge Sullivan. “Without these ill-gotten gains, the traffickers could not finance their organizations. IRS Criminal Investigation, along with the Department of Justice, is committed to taking the profit away from the drug traffickers and putting those individuals in jail.”
The leader of the money laundering organization, DIEGO PINEDA SANCHEZ, of Guadalajara, Mexico, was sentenced last fall to 15 years in federal prison for laundering more than $61 million in drug proceeds. Pineda Sanchez personally negotiated agreements with cartel members in Mexico to launder drug profits in exchange for percentages of the laundered proceeds, keeping the largest percentages for himself and co-defendant CARLOS PARRA-PEDROZA.
Parra-Pedroza, of Guadalajara, Mexico, directed members of the conspiracy to collect drug proceeds from dozens of couriers throughout the U.S., use those proceeds to purchase scrap and fine gold from local U.S. businesses, and then ship the gold to refineries in Florida and California. The refineries, in turn, transmitted the cash value of the gold to Parra-Pedroza and co-conspirators in Mexico. From 2011 to 2014, Parra-Pedroza personally managed the movement of more than $100 million in drug proceeds from the U.S. to cartel members in Mexico who controlled the drug trade on both sides of the U.S.-Mexico border.
Parra-Pedroza was repeatedly heard in undercover recordings boasting about his organization’s connections with the violent cartels. During a June 2013 meeting in which Parra-Pedroza urged an informant to more quickly launder the cartel’s money, Parra-Pedroza told the informant about an incident in which drug dealers punished a man who had lost their money by taking his personal possessions and “chopp[ing] off his fingers.” Parra-Pedroza endorsed this maiming, stating, “[Expletive] had to, even I would’ve agreed.” In another meeting with the same informant and an undercover law enforcement agent who posed as a gold supplier, Parra-Pedroza explained that the couriers who transport cartel money are entrusted to do so because they “leave their families and everyone over there” in Mexico, and cartel members there tell them, “‘If you take off, I will kill your entire family here.’”
Judge Wood in December sentenced Parra-Pedroza to 13 years in federal prison.
Former Bossier Parish school superintendent pleads guilty and will pay $100,000 fine for drug possession chargesRead the Press Release
SHREVEPORT, La. – Former Bossier Parish Superintendent of Schools Wendell Scott Smith, 61, of Bossier City, Louisiana, pleaded guilty today before U.S. Magistrate Judge Mark L. Hornsby to possession of Valium, Ambien, Soma and Lyrica in four separate counts, U.S. Attorney David C. Joseph announced. Smith was sentenced to one year of supervised release and was fined $100,000.
According to the guilty plea, law enforcement agents intercepted a DHL package containing Diazepam, also known as Valium, addressed to a Bossier City residence on January 31, 2019. After the Diazepam tested positive, the agents conducted a controlled delivery of the package, which originated in India and contained a forged prescription. Smith was confronted by law enforcement agents after he picked up the package and placed it in his vehicle, and agreed to a search of his vehicle, resulting in the Diazepam package being recovered. In an interview later that evening, Smith admitted to purchasing controlled substances illegally online without a valid prescription for six years, spending more than $10,000 on controlled substances during this time. Also during the interview, agents seized Diazepam and Propranolol that Smith removed from his pocket. Smith agreed to a search of his property and showed agents where he kept the drugs he had purchased from the internet.
The following controlled substances were seized from the master bedroom area of Smith’s residence:
Tadalafil Tablets – 53 tablets
Promethazine Hydrochloride Tablets – 99 tablets
Zolpidem (Ambien) Tablets – 43 tablets
Carisoprodol (Soma) Tablets – 54 tablets
Gabapentin Sustained Release Tablets – 174 tablets
Zolpidem Aurobindo – 52 tablets
Ondansetron Tablets – 63 tablets
Sanval – 9 tablets
Quetiapine Tablets – 17 tablets
Propanolol Hydrochloride Tablets – 102 tablets
Diazepam (Valium) – 50 tablets
Nebivolol Hydrochloride Tablets – 93 tablets
Propanolol Hydrochloride Tablets –7 tablets
Quetiapine Tablets – 51 tablets
Pregabalin (Lyrica) Capsules – 47 capsules
Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Brian C. Flanagan is prosecuting the case.
Florence, Kentucky Business Settles ADA ComplaintRead the Press Release
COVINGTON, Ky. - The Wildwood Inn Tropical Dome and Theme Suites in Florence, Kentucky (“Wildwood Inn”) entered into an agreement with the United States to resolve a recent complaint alleging violations of the Americans with Disabilities Act (“ADA”) relating to the use of service animals. The ADA generally requires that places of public accommodation permit the use of a service animal by an individual with a disability. The law also prohibits inquiries into the details of a person’s disability in connection with their use of a service animal and forbids demands for documentation relating to certification, training, or licensure of the service animal.
The complainant, a veteran of the Iraq War and recipient of the Bronze Star with Valor, suffers from post-traumatic stress disorder and uses a service animal to assist with her disability. The complainant alleged that Wildwood Inn’s staff requested to see either the certification paperwork for her service animal or medical paperwork from a doctor when she attempted to check into the hotel. The complainant and her husband advised the staff members that the ADA does not allow such requests, but Wildwood Inn’s staff ultimately refused to provide the complainant with lodging at the hotel.
As part of the settlement, Wildwood Inn has agreed to adopt a Service Animal Policy, train its staff members on the ADA’s requirements for service animals, and post signage permitting service animals.
“Service animals offer invaluable support to individuals with a wide range of disabilities, including veterans suffering from post-traumatic stress disorder and traumatic brain injury,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “The ADA ensures that people who depend on service animals have the same opportunities for goods and services as the public at large. This settlement furthers that purpose by improving awareness of the ADA’s requirements for service animals, particularly in those situations where a person does not have an obvious physical impairment. We appreciate Wildwood Inn’s cooperation throughout the investigation and willingness to reach a prompt resolution that benefits individuals with disabilities. We look forward to working together with them to implement the settlement agreement.”
People interested in finding out more about the ADA can call the Justice Department’s toll-free Information Line at 800-514-0383 (TDD), or access the ADA homepage at www.ada.gov.
Federal Jury Finds Minnesota Business Owner Guilty of Tax EvasionRead the Press Release
United States Attorney Erica H. MacDonald today announced the conviction of RANDAL SCOT BRINKMAN, 60, on six counts of tax evasion. BRINKMAN, who was indicted on September 24, 2018, was found guilty following a four-day trial before Judge Joan N. Ericksen in U.S. District Court in Minneapolis, Minnesota.
As proven at trial, BRINKMAN owned and operated a Roseville-based construction company. From 2002 through 2018, BRINKMAN took steps to hide his income and to actively evade the assessment of taxes, including using sham businesses, closing his personal bank accounts, using money orders and cash to pay for daily expenses, and creating a fake religious organization in order to hide his income and assets. Following a 2007 IRS audit, BRINKMAN filed personal income tax returns for the calendar years 2002 through 2007, admitting that he owed more than $145,000 in federal income taxes for those years. Nevertheless, despite filing the returns, BRINKMAN didn’t pay any of the taxes he admitted he owed to the IRS. BRINKMAN also failed to file tax returns or pay any of his federal incomes taxes from 2012 through 2018.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS and the Minnesota Department of Revenue.
This case is being prosecuted by Assistant U.S. Attorneys Joseph H. Thompson and Alexander D. Chiquione.
Defendant Information:
RANDAL SCOT BRINKMAN, 60
Medina, Minn.
Convicted:
- Tax evasion, 6 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Federal Grand Jury Indicts Armed Robbers for June 17, 2019 Robbery of CVS PharmacyRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced on Friday, July 26, 2019 that RICHARD SANSBURY, age 26, and ALAN PARSON, age 18, residents of Indianapolis, Indiana, were charged in a three count Indictment for their alleged participation in the June 17, 2019 robbery of the CVS pharmacy located at 4901 Prytania Street.
At approximately 6:06 a.m., SANSBURY and PARSON entered the 24-hour pharmacy, armed with weapons. Both wore hooded sweatshirts and blue medical gloves. Upon entering the store, SANSBURY removed a firearm from his waistband, went behind the front counter, and detained a cashier by using zip-ties. SANSBURY led the cashier to another area of the store. PARSON relocated to the rear of the store, in the pharmacy area, and forced another employee to the ground before securing the employee’s feet with zip-ties. PARSON is then alleged to have filled a large trash bag with several pill bottles that he retrieved from the pharmacy safe. SANSBURY is alleged to have relocated to the pharmacy area where he continued to zip-tie the employee’s hands whom PARSON initially detained. SANSBURY and PARSON began to exit the store.
Upon exiting the store, PARSON and SANSBURY engaged on a shootout with responding officers of the New Orleans Police Department. The confrontation resulted in a bullet wound to one of the officers, who was shot in the shoulder. Video surveillance captured the robbery as it occurred inside of the CVS, as well as the subsequent shootout with police as SANSBURY and PARSON fled the store.
In count 1 of the Indictment, SANSBURY and PARSON are charged with conspiracy to commit robbery involving a controlled substance, in violation of Title 18, United States Section, 2118. If convicted, both face a maximum sentence of 10 years of imprisonment, a fine up to $250,000.00, a period of 3 years supervised release, and a mandatory special assessment of $100.00. In count 2, SANSBURY and PARSON are charged with armed robbery involving controlled substances in violation of Title 18, United States Sections, 2118(a) and (c)(1). If convicted, both face a maximum sentence of 25 years of imprisonment, a fine up to $250,000.00, a period of 3 years supervised release, and a mandatory special assessment of $100.00. In count three, SANSBURY and PARSON are charged with discharge of a firearm in furtherance of a crime of violence, in violation of Title 18, United States Sections, 924(c)(1)(A)(iii) . If convicted, both face a mandatory minimum sentence of 10 years to life imprisonment, a fine up to $250,000.00, a period of 3 years supervised release, and a mandatory special assessment of $100.00.
U. S. Attorney Strasser reiterated that the indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safe for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Federal Bureau of Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Orleans Police Department. It is being prosecuted by Assistant United States Attorneys David Haller and Brittany Reed of the Violent Crime/Strike Force Unit of the U.S. Attorney’s Office.
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Federal Government to Resume Capital Punishment After Nearly Two Decade LapseRead the Press Release
Attorney General William P. Barr has directed the Federal Bureau of Prisons (BOP) to adopt a proposed Addendum to the Federal Execution Protocol—clearing the way for the federal government to resume capital punishment after a nearly two decade lapse, and bringing justice to victims of the most horrific crimes. The Attorney General has further directed the Acting Director of the BOP, Hugh Hurwitz, to schedule the executions of five death-row inmates convicted of murdering, and in some cases torturing and raping, the most vulnerable in our society—children and the elderly.
“Congress has expressly authorized the death penalty through legislation adopted by the people’s representatives in both houses of Congress and signed by the President,” Attorney General Barr said. “Under Administrations of both parties, the Department of Justice has sought the death penalty against the worst criminals, including these five murderers, each of whom was convicted by a jury of his peers after a full and fair proceeding. The Justice Department upholds the rule of law—and we owe it to the victims and their families to carry forward the sentence imposed by our justice system.”
The Federal Execution Protocol Addendum, which closely mirrors protocols utilized by several states, including currently Georgia, Missouri, and Texas, replaces the three-drug procedure previously used in federal executions with a single drug—pentobarbital. Since 2010, 14 states have used pentobarbital in over 200 executions, and federal courts, including the Supreme Court, have repeatedly upheld the use of pentobarbital in executions as consistent with the Eighth Amendment.
Upon the Attorney General’s direction, Acting Director Hurwitz adopted the Addendum to the Federal Execution Protocol and, in accordance with 28 C.F.R. Part 26, scheduled executions for the following individuals:
- Daniel Lewis Lee, a member of a white supremacist group, murdered a family of three, including an eight-year-old girl. After robbing and shooting the victims with a stun gun, Lee covered their heads with plastic bags, sealed the bags with duct tape, weighed down each victim with rocks, and threw the family of three into the Illinois bayou. On May 4, 1999, a jury in the U.S. District Court for the Eastern District of Arkansas found Lee guilty of numerous offenses, including three counts of murder in aid of racketeering, and he was sentenced to death. Lee’s execution is scheduled to occur on Dec. 9, 2019.
- Lezmond Mitchell stabbed to death a 63-year-old grandmother and forced her nine-year-old granddaughter to sit beside her lifeless body for a 30 to 40-mile drive. Mitchell then slit the girl’s throat twice, crushed her head with 20-pound rocks, and severed and buried both victims’ heads and hands. On May 8, 2003, a jury in the U.S. District Court for the District of Arizona found Mitchell guilty of numerous offenses, including first degree murder, felony murder, and carjacking resulting in murder, and he was sentenced to death. Mitchell’s execution is scheduled to occur on Dec. 11, 2019.
- Wesley Ira Purkey violently raped and murdered a 16-year-old girl, and then dismembered, burned, and dumped the young girl’s body in a septic pond. He also was convicted in state court for using a claw hammer to bludgeon to death an 80-year-old woman who suffered from polio and walked with a cane. On Nov. 5, 2003, a jury in the U.S. District Court for the Western District of Missouri found Purkey guilty of kidnapping a child resulting in the child’s death, and he was sentenced to death. Purkey’s execution is scheduled to occur on Dec. 13, 2019.
- Alfred Bourgeois physically and emotionally tortured, sexually molested, and then beat to death his two-and-a-half-year-old daughter. On March 16, 2004, a jury in the U.S. District Court for the Southern District of Texas found Bourgeois guilty of multiple offenses, including murder, and he was sentenced to death. Bourgeois’ execution is scheduled to occur on Jan. 13, 2020.
- Dustin Lee Honken shot and killed five people—two men who planned to testify against him and a single, working mother and her ten-year-old and six-year-old daughters. On Oct. 14, 2004, a jury in the U.S. District Court for the Northern District of Iowa found Honken guilty of numerous offenses, including five counts of murder during the course of a continuing criminal enterprise, and he was sentenced to death. Honken’s execution is scheduled to occur on Jan. 15, 2020.
Each of these inmates has exhausted their appellate and post-conviction remedies, and currently no legal impediments prevent their executions, which will take place at U.S. Penitentiary Terre Haute, Indiana. Additional executions will be scheduled at a later date.
Federal Contractor Pays $435,000 to Resolve False Claims Act ExposureRead the Press Release
SYRACUSE, NEW YORK – Silvus Technologies, Inc., a California based company specializing in wireless communication systems, agreed today to pay $435,806 to resolve a False Claims Act investigation into the company’s cost-based billing on government contracts.
According to the settlement agreement, the government overpaid Silvus on three different Air Force contracts. The overpayments were due to Silvus’s failure to track accurately its direct labor costs and certain indirect costs (including tax payments). Silvus improperly attributed some employee labor costs to the contracts and included certain unallowable charges in its incurred cost proposals.
“This settlement reflects the Northern District of New York’s continued commitment to using civil enforcement tools to recover money wrongfully paid by the government,” said United States Attorney Grant C. Jaquith. “It is critical that government contractors have internal controls in place to ensure that cost-based billings are fair and accurate.”
“The announced settlement sends a clear message that those who inappropriately profit by willfully disregarding established Department of Defense procurement protocols will be investigated and held accountable,” said Bryan D. Denny, Special Agent in Charge of the Western Field Office, Defense Criminal Investigative Service. “Those who contract with the Department of Defense must be above reproach. The Defense Criminal Investigative Service will continue to investigate anyone who seeks to compromise the procurement system at the expense of the U.S. military and taxpayers.”
This case was investigated by the Air Force Office of Special Investigations, the Defense Criminal Investigative Service, and the Army Criminal Investigation Command. Additional investigative assistance was provided by the Defense Contract Audit Agency and the Air Force Materiel Command Law Office Fraud Division. The United States was represented by Assistant U.S. Attorney Michael D. Gadarian.
Enfield Man with Multiple Felony Convictions Charged with Illegally Possessing Gun in HartfordRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal grand jury in Hartford has returned an indictment charging NATHANIEL RODRIGUEZ, 23, of Enfield, with one count of possession of a firearm and ammunition by a convicted felon.
The indictment was returned on July 10, 2019. Rodriguez appeared today before U.S. Magistrate Judge Donna F. Martinez in Hartford and entered a plea of not guilty to the charge. If convicted of the offense, Rodriguez faces a maximum term of imprisonment of 10 years. Rodriguez was ordered detained pending trial.
As alleged in the indictment, on January 27, 2019, Rodriguez possessed a loaded M&P Bodyguard .380 caliber handgun. Prior to that date, Rodriguez sustained felony convictions in Massachusetts for firearms, assault, drug and witness intimidation offenses.
Rodriguez was arrested on state charges by Hartford Police in Hartford on January 27 and was subsequently released on bond. He has been detained since March 29 when he was arrested in Enfield in an unrelated case.
U.S. Attorney Durham stressed that charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hartford Police Department. This case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Dunbar Man Pleads Guilty to Federal Drug CrimesRead the Press Release
CHARLESTON, W.Va. – A Dunbar drug dealer pled guilty to federal drug crimes, announced United States Attorney Mike Stuart. Samuel Manriquez, 33, entered his guilty plea to distribution of furanyl fentanyl and U-47700. Furanyl fentanyl is an analog of fentanyl and U-477001 is a synthetic opioid. The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) and the Metropolitan Drug Enforcement Network Team (“MDENT”).
“The safety of a community is always at risk when there are drug transactions, and those risks are heightened when drug transactions involve firearms,” said United States Attorney Mike Stuart. “We are utilizing every resource at our disposal to take back the streets from violent poison peddlers, drug thugs and trigger pullers.”
Manriquez admitted that on May 8, 2017, on Delaware Avenue in Charleston he sold a confidential informant U-47700 and Furanyl Fentanyl. He also admitted that there was a firearm present during the drug transaction. Manriquez admitted that on the same date and at the same location, he sold another confidential informant U-47700.
Manriquez faces up to forty years in federal prison when he is sentenced on October 23, 2019. United States District Judge John T. Copenhaver, Jr. presided over the plea hearing. Assistant United States Attorney Ryan A. Saunders is handling the prosecution.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Drug User in Possession of a Firearm Sentenced in Federal CourtRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Cornelius Jeremih Pruitt, 23, of Bay Minette, Alabama, was sentenced in federal court on charges that he was a drug user illegally in possession of a firearm. Pruitt pled guilty to the federal charge in April of 2019. Court documents reflect that Bay Minette police and United States marshals arrested a fugitive wanted in connection with a homicide investigation at Pruitt’s residence in Bay Minette in March of 2018. They received consent to search the residence, and found six guns in the house, one of which was a short-barrel rifle. They also found bags of marijuana, packaging material and scales for weighing drugs. Pruitt was advised of his rights, and he admitted to the investigators that he was a user of illegal drugs.
United States District Court Judge Callie V. S. Granade imposed a sentence of 18 months imprisonment, to be followed by a three-year term of supervised release. During that time, Pruitt will undergo drug and alcohol abuse testing and treatment. The judge did not impose a fine, but she ordered that Pruitt pay a $100 special mandatory assessment.
The case was investigated by the Bay Minette Police Department, the Baldwin County Sheriff’s Office, the United States Marshal’s Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Drug User Who Shot Sheriff's Deputy Sentenced in Federal CourtRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Forrest Carl Bullin, 39, of Stockton, Alabama, was sentenced in federal court on the charge of being a drug user in possession of a firearm. Bullin pled guilty to the charge during his jury trial in March of 2019.
United States District Court Judge Jeffrey U. Beaverstock accepted the guilty plea on March 21, 2019, after the United States Attorney’s Office called three witnesses during the trial who all implicated Bullin with involvement in methamphetamine use. Bullin’s guilty plea came prior to the expected testimony of Baldwin County sheriff’s deputies who responded to the defendant’s residence on December 19, 2017. Bullin fired shots at Baldwin County sheriff’s deputies who responded to a report that he was involved in a domestic dispute which had resulted in his girlfriend being pushed off a bridge. Bullin shot one of the deputies in the face and torso. In the statement of facts supporting the guilty plea, Gloria Bedwell, the federal prosecutor representing the United States, advised Judge Beaverstock that several methamphetamine smoking pipes were recovered in Bullin’s residence, and one of them was recovered within feet of the firearm Bullin used to shoot at the deputies. Bullin’s DNA was found on that meth pipe and also on three of the remaining four meth pipes recovered in the search of the residence. Judge Beaverstock accepted Bullin’s mid-trial guilty plea and set the case over for sentencing.
At the sentencing hearing Monday, July 22, Judge Beaverstock found that the advisory sentencing guidelines, which were calculated at 235 months to 292 months, were limited by the statutory maximum of 120 months. The judge found that the statutory maximum sentence of 120 months became the guideline sentence in this case. Judge Beaverstock sentenced Bullin to the maximum possible, 120 months imprisonment, to be followed by a supervised release term of 3 years. As conditions of his supervision, the judge ordered that Bullin would undergo mental health and drug abuse treatment. He did not impose a fine, but ordered that Bullin pay $100 in special assessments.
United States Attorney Moore said, “I have said this before and I will repeat it again: You do not shoot a cop. If you do we will bring the full weight of the federal government down on you.” Moore said, “Judge Beaverstock rightly imposed the maximum sentence on this trigger puller who shot a law enforcement officer. The U.S. Attorney’s Office will always be zealously prosecuting anyone who picks up a weapon to use against one of our officers. Our veteran prosecutor Gloria Bedwell along with our law enforcement partners put together a compelling case that has resulted in getting this dangerous individual out of our community.”
The case was investigated by the Baldwin County Major Crimes Task Force, the Baldwin County Sheriff’s Office, the Bay Minette Police Department and the Federal Bureau of Investigation. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Drug Trafficking and Firearms Conviction Gets Henderson Man 192 Months in Federal PrisonRead the Press Release
RALEIGH – Robert J. Higdon, Jr., the United States Attorney for the Eastern District of North Carolina, announces that United States District Judge James C. Dever, III, sentenced MARK ANTHONY CRUDUP, 27, of Henderson to 192 months’ imprisonment, followed by 5 years of supervised released.
On April 15, 2019, CRUDUP, pled guilty to two counts of being a felon in possession of a firearm, possession of a firearm in furtherance of a drug trafficking crime, and possession with intent to distribute heroin, fentanyl, and marijuana. On October 29, 2015, CRUDUP, a convicted felon, was located at a residence in Henderson where a search was executed and was found in possession of a loaded 9mm pistol.
In an unrelated incident, on September 15, 2018, the Henderson Police Department (HPD) attempted a traffic stop on a vehicle driven by CRUDUP who fled from the officer at speeds of 60 miles per hour in a 35 mile per hour zone. While fleeing, CRUDUP tossed a large bag containing approximately 474 grams of marijuana from the vehicle. Then, CRUDUP jumped and ran from the vehicle on foot while holding a firearm with an extended magazine. The pursing HPD officer gave chase and caught up with CRUDUP and a struggle ensued during which he bit the officer’s arm. Throughout the struggle, CRUDUP remained armed with the loaded firearm and when he and the officer fell to the ground, CRUDUP’S firearm was pointed at the officer. CRUDUP also pulled at the officer’s duty belt. Additional officers arrived and officers placed CRUDUP into custody at which point they found heroin laced with fentanyl in his pocket. The firearm was loaded with 17 rounds of ammunition and had been reported stolen.
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. Since 2017 the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case is also part of the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violence crime rate, drug trafficking, and crimes against law enforcement.
The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Henderson Police Department, North Carolina Alcohol Law Enforcement, and the Oxford Police Department..
Assistant United States Attorney Robert J. Dodson prosecuted the case for the government.
Dracut Man Convicted of Sex TraffickingRead the Press Release
BOSTON – A Dracut man was convicted yesterday by a federal jury in Boston of sex trafficking four different victims out of his residences in Dracut and Malden.
Reginald Abraham, 51, was convicted of four counts of sex trafficking by force, fraud, or coercion. U.S. District Judge William G. Young scheduled sentencing for Nov. 20, 2019. Abraham was charged and arrested on Sept. 6, 2017, and has been in federal custody since.
Law enforcement began investigating Abraham in January 2017 after learning about his trafficking operations from several victims. Abraham approached his victims, usually through social media, and began communicating with them in an effort to convince them to live with him. He eventually picked up his victims, all from Maine, and drove them to his residence in Malden, and later Dracut. After arriving at his home, Abraham forced the women into prostitution throughout New England. He maintained his control over these victims through the use of physical violence, threats, rape, and the giving and withholding of drugs, including heroin and crack cocaine. Abraham trafficked the victims from 2012 through 2016.
The charge of sex trafficking through force, fraud, or coercion provides for a mandatory minimum sentence of 15 years and up to life in prison, up to five years of supervised release and a fine of up to $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 Jason Molina, Acting Special Agent in Charge of the Homeland Security Investigations in Boston, made the announcement today. Valuable assistance was provided by the Portland (Maine) Office of the Federal Bureau of Investigation and the Dracut and Portland Police Departments. Assistant U.S. Attorneys Leah B. Foley and Stephen W. Hassink of Lelling’s Civil Rights Enforcement Team are prosecuting the case.
Charlotte Business Owner Is Sentenced to 2.5 Years for Transporting Stolen PropertyRead the Press Release
CHARLOTTE, N.C. – Edwin R. Barkley, 63, of Charlotte, was sentenced today by Chief U.S. District Judge Frank D. Whitney to 30 months in prison, followed by one year of supervised release, for operating a large-scale fraudulent scheme involving the purchase and sale of stolen goods and merchandise through his Charlotte-based storefront business, Tool King USA (Tool King).
Reginald A. DeMatteis, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department join the U.S. Attorney’s Office in making today’s announcement.
According to filed court documents and statements made in court, from at least September 2015 through October 2018, Barkley operated the Tool King as a “fence,” which is a business that buys stolen merchandise from multiple “boosters.” A booster is someone who steals goods and merchandise and sells them to a fence. Court records show that Barkley bought from multiple boosters large-ticket items such as power tools, vacuum cleaners, generators, and home electronic goods, at a fraction of their retail value. Barkley then sold the stolen merchandise on an e-commerce platform at or near ninety percent of their retail value, and used the profits to pay for his daily living expenses.
In March 2019, Barkley pleaded guilty to interstate transportation of stolen goods. He is currently released on bond and will be ordered to report to the federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In announcing Barkley’s sentence, Judge Whitney stated that the defendant ran a “very sophisticated operation” and that “keeping fingerprints” off the stolen goods does not mean that you are innocent.
This case was the result of the investigative efforts of CMPD and the Secret Service. The CMPD and the Secret Service have established a fully integrated partnership to combat the most significant organized criminal groups operating in Charlotte. Through this partnership, this unit has successfully leveraged local and federal resources, personnel, expertise and authorities to identify and combat the criminals and criminal organizations that have the largest negative impact on the community.
Assistant U.S. Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Camari Stinson Sentenced to 123 Months ImprisonmentRead the Press Release
FORT WAYNE – Camari Stinson, 32 years old, of Fort Wayne, Indiana, was sentenced by U.S. District Court Judge Holly Brady after pleading guilty to being a felon in possession of a firearm, distributing cocaine and carrying a firearm during and in relation to a drug trafficking crime, announced United States Attorney Thomas L. Kirsch II.
Stinson was sentenced to123 months’ imprisonment, followed by 3 years of supervised release.
According to documents in the case, between December 29, 2014 and February 25, 2015, Stinson was in possession of a .40 caliber firearm after having previously being convicted of a felony and on January 29, 2015, Stinson distributed cocaine and carried a firearm during the commission of that offense.
This case was investigated by The Bureau of Alcohol, Tobacco, Firearms and Explosives, with the assistance of the Indiana State Police Department and the Fort Wayne Police Department, and prosecuted by Assistant United States Attorney Stacey R. Speith.
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Brentwood Man Arrested for Distributing Ecstasy and Crystal MethamphetamineRead the Press Release
A criminal complaint was unsealed yesterday in federal court in Central Islip charging Lawrence Ross with conspiring to distribute, and distributing, more than 10 kilograms of ecstasy and more than 45 grams of methamphetamine. The defendant’s initial appearance was yesterday afternoon before United States Magistrate Judge Arlene R. Lindsay, who ordered him detained.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Philip R. Bartlett, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS), and Angel M. Melendez, Special Agent-in-Charge, United States Department of Homeland Security, Homeland Security Investigations, New York Field Office (HSI) announced the charges.
“As alleged, Ross sold ecstasy and crystal methamphetamine via the dark web and Wickr in exchange for Bitcoin, and then shipped the drugs to his customers through the U.S. mail,” stated United States Attorney Donoghue. “Drug traffickers who believe they will escape detection by using the dark web, encrypted messaging applications and cryptocurrency should understand that they are not anonymous, their activities will be uncovered, and they will be prosecuted.” Mr. Donoghue expressed his grateful appreciation to the Suffolk County District Attorney's Office Heroin Task Force for their assistance in the investigation.
“This arrest highlights the benefits of cooperation and collaboration between law enforcement agencies. Through these partnerships, we are keeping our communities safe from the spread of illegal narcotics purchased through the dark web,” stated USPIS Inspector-in- Charge Bartlett.
“Ross allegedly imported and manufactured his own drugs and used the veil of the dark-net to distribute his illicit products,” said HSI Special Agent-in-Charge Melendez. “More and more criminals are seeking ways to use the dark web to further their illegal enterprise, but law enforcement continues to evolve in its investigations to locate these vendors and bring them out of the shadows to face justice.”
Between November 2018 and the present, Ross allegedly sold controlled substances on the dark web, communicated with customers using the Wickr encrypted messaging application, distributed the drugs through the U.S. mail, and accepted the Bitcoin cryptocurrency as payment. The investigation began when a parcel containing ecstasy was seized by the Postal Inspection Service and was traced to Ross. An undercover postal inspector began purchasing controlled substances from Ross at screenname “Gladyman” through various dark web marketplaces. Ross advertised on his “Gladyman” dark web profile that customers could contact him via the Wickr at screenname “Sweettooth80,” and the undercover postal inspector began communicating with Ross using Wickr.
On May 31, 2019, using Wickr, the postal inspector ordered 100 ecstasy pills from Ross at screenname “Sweettooth80” and transferred $1,000 worth of Bitcoin to Ross’s digital wallet. Several hours later, at the Islip Post Office, Ross mailed 33 packages, including one addressed to the postal inspector’s undercover name. That package was seized and contained 100 pills that tested positive for Ecstasy.
On June 5, 2019, again using Wickr, the postal inspector ordered five grams of crystal methamphetamine from Ross at screenname “Sweettooth80.” The postal inspector then transferred $228.17 worth of Bitcoin to Ross’s digital wallet. Ross mailed 61 packages at the Bay Shore Post Office, including a package addressed to the postal inspector’s undercover name. The package was seized by postal inspectors and contained approximately five grams of a substance that tested positive for crystal methamphetamine.
A search warrant was executed at Ross’s residence yesterday, and postal inspectors recovered over 10 kilograms of ecstasy with a street value of approximately $1.5 million, a pill press for the manufacturing of controlled substances, approximately $250,000 of Bitcoin cryptocurrency and approximately $50,000 of U.S. currency.
The charges in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty.
If convicted, the defendant faces a sentence of up to 20 years’ imprisonment.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant U.S. Attorneys Lara Treinis Gatz and Artie McConnell are in charge of the prosecution.
The Defendant:
Lawrence Ross
Age: 39
Brentwood, New YorkE.D.N.Y. Docket No. 19-MJ-665
Brazilian Man Sentenced to 3 ½ Years in Prison for Defrauding Manhattan Financial Institutions and Aggravated Identity TheftRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that MARCOS ELIAS, a Brazilian citizen and resident, was sentenced to three-and-a-half years in prison for participating in a scheme to fraudulently obtain more than $750,000 at financial institutions headquartered in Manhattan using false representations and the stolen identities of Brazilian account holders at those institutions. U.S. District Judge Gregory H. Woods imposed today’s sentence.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Using a stolen identity and bogus documents, Marcos Elias conned his friend’s company to transfer more than $750,000 to an account in the name of a fake company that he controlled. Instead of living off of his ill-gotten gains, he will now spend the next three-and-a-half years in prison for his crimes.”
According to the Complaint, Indictment, and statements made in court proceedings:
Since 2012, a Brazilian company (the “Client”) held an account at a financial institution headquartered in Manhattan (the “Firm”). Beginning in June 2014, cooperating witness Evandro Dos Reis Jr. (“Dos Reis”), who was then a Senior Vice President at the Firm, communicated with ELIAS, a longtime friend, regarding the Client’s account. Shortly thereafter, Dos Reis began receiving emails to his Firm email account purportedly from an employee of the Client (the “Client Employee”) instructing Dos Reis to transfer the Client’s money to a bank account in Luxembourg (the “Luxembourg Account”) that appeared to be in the name of the Client. Those emails were sent from an email address that was never used by the Client Employee and contained bogus wire instructions with the forged signature of the Client Employee. On July 15, 2014, as a result of the false documentation provided to Dos Reis which he forwarded to another Firm employee to be executed, the Firm transferred approximately $752,000 from the Client’s account at the Firm to the Luxembourg Account (the “Fraudulent Transfer”), believing it to be a legitimate transfer requested by the Client.
In actuality, the Client did not authorize the Fraudulent Transfer, did not have any bank accounts in Luxembourg, and did not send the emails to Dos Reis requesting the transfer. Rather, it was ELIAS who sent the emails purporting to be from the Client Employee that contained forged wire instructions to Dos Reis. Further, the Luxembourg Account that received the Fraudulent Transfer was beneficially owned by ELIAS and opened in the name of a company formed in Panama at ELIAS’s direction the week prior to the Fraudulent Transfer. The Panama company used by ELIAS to open the Luxembourg Account contained the name of the Client in order to create the false impression that the Client’s funds were being transferred to an account beneficially owned by the Client, when in fact such account was beneficially owned by ELIAS.
In addition to the scheme to defraud the Firm, ELIAS and Dos Reis also attempted to fraudulently obtain money from accounts at a second financial institution headquartered in Manhattan using the identities of the Client Employee and other members of the Client Employee’s family without their authority.
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ELIAS, 47, of São Paulo, Brazil, was extradited from Switzerland, where he was initially arrested, to the Southern District of New York on August 28, 2018. ELIAS previously entered pleas of guilty to one count of conspiracy to commit wire fraud and one count of aggravated identity theft before U.S. District Judge Laura Taylor Swain on February 4, 2019. In addition to the prison sentence, ELIAS was ordered to pay forfeiture in the amount of $752,384.57 and restitution in the amount of $938,367.87. ELIAS was also sentenced to two years of supervised release.
Dos Reis, a former employee of the Firm, previously pled guilty to one count of conspiracy to commit wire fraud and one count of wire fraud pursuant to a cooperation agreement with the Government in connection with this scheme and is awaiting sentencing.
Mr. Berman praised the outstanding investigative work of the FBI. Mr. Berman also thanked Switzerland’s Federal Office of Justice and the Zurich Police (Kantonspolizei Zürich), and the U.S. Department of Justice’s Office of International Affairs, for their assistance with the extradition.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Sagar K. Ravi is in charge of the prosecution.
Bergen County Man Admits Defrauding Government by Exchanging over $750,000 in Snap Benefits for CashRead the Press Release
NEWARK, N.J. – A Bergen County man admitted today that he stole more than $750,000 from the U.S. Government through a scheme to exchange government benefits for cash, U.S. Attorney Craig Carpenito announced.
Jamil Bader, 60, of Teaneck, New Jersey, pleaded guilty before U.S. District Judge Brian R. Martinotti in Newark federal court to an indictment charging him with one count of Supplemental Nutrition Assistance Program (SNAP) benefits (formerly known as the food stamp program) fraud.
According to documents filed in this case and statements made in court:
Every SNAP recipient receives an Electronic Benefits Transfer (EBT) card, similar to a debit card, with which to make purchases. Every retailer authorized to accept SNAP benefits has an EBT terminal. Food purchases are made by swiping the card at the terminal. After the customer enters a Personal Identification Number (PIN), the EBT terminal verifies the PIN, determines whether the customer’s account balance is sufficient to cover the transaction and informs the retailer whether the transaction should be authorized or declined. If the transaction is authorized, the amount of the purchase is then deducted from the SNAP benefits reserved for the customer, and the amount is credited to the retailer’s designated bank account.
Bader admitted that he controlled a small grocery store that was located on Clinton Avenue in Newark, New Jersey between September 2013 and September 2016. Bader acknowledged placing this store in another person’s name because he had previously been banned from participation in SNAP for similar conduct. Bader admitted that he repeatedly exchanged SNAP benefits for cash and kept a portion of the proceeds for himself. Bader acknowledged that this scheme caused at least $754,424 in losses to the federal government. Bader also admitted fleeing from the United States and obtaining a foreign passport in an effort to avoid these criminal charges.
The SNAP benefits charge carries a maximum penalty of twenty years’ imprisonment and a $250,000 fine. Sentencing is scheduled for November 7, 2019.
U.S. Attorney Carpenito credited special agents of the United States Department of Agriculture – Office of the Inspector General, under the direction of Special Agent in Charge Bethanne M. Dinkins with the investigation leading to today’s guilty plea. The U.S. Attorney also thanked the United States Marshal’s Service, under the direction of U.S. Marshal Juan Mattos in Newark, and U.S. Immigration & Customs Enforcement, Homeland Security Investigations, for their assistance with Bader’s apprehension and return to New Jersey.
The government is represented by Special Assistant United States Attorney Shawn Barnes of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Frederick “Chip” Dunne, III, Esq.
Benton man sentenced to 322 months in federal prison for methamphetamine, firearms chargesRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced today that Eric Charles Means, 33, of Benton, Louisiana, was sentenced by Chief U.S. District Judge S. Maurice Hicks Jr. to 322 months in federal prison and five years of supervised release for possession with intent to distribute methamphetamine and possession of firearms in furtherance of a drug trafficking crime. Means pleaded guilty on February 19, 2019.
Law enforcement agents with the U.S. Drug Enforcement Administration encountered Means on January 24, 2018 in a vehicle in the parking lot of a hotel on Industrial Drive in Bossier City, Louisiana. Inside the vehicle were plastic baggies containing 12.6 grams of methamphetamine and two firearms in a duffel bag on the front passenger seat. Means admitted to distributing methamphetamine and that he possessed the firearms while distributing the drugs. The two firearms confiscated from the duffel bag were a Smith & Wesson .357-caliber pistol and a Glock .45-caliber pistol, along with ammunition.
The DEA and ATF conducted the investigation. Assistant U.S. Attorney Brian C. Flanagan prosecuted the case.