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3 July 2019
Former U.s. Fish and Wildlife Employee Sentenced to Probation and Community Service for Stalking Former Co-WorkerRead the Press Release
ALBUQUERQUE – Peter Fitzpatrick, 44, of Byron Center, Mich., was sentenced in federal court on Monday to five years of probation and 40 hours of community service for stalking a former co-worker.
Fitzpatrick previously pleaded guilty to stalking on March 1, 2019. In his plea agreement, he admitted to stalking the victim with angry and confrontational telephone calls, emails, and text messages from February 1, 2016, to September 1, 2017. In these communications, Fitzpatrick also objected to the U.S. Fish and Wildlife Service’s management of the Mexican Grey Wolf Recovery Program based in Albuquerque.
Fitzpatrick’s communications placed his former co-worker in reasonable fear of death or serious physical injury. Fitzpatrick also made comments about his former co-worker’s daughter expected to cause emotional distress.
The U.S. Fish and Wildlife Service, Office of Law Enforcement and United States Postal Inspection Service investigated this case. Assistant U.S. Attorney Letitia C. Simms prosecuted the case.
Former Civilian Employee at Holloman Air Force Base Sentenced to 121 Months in Prison for Sexual AssaultRead the Press Release
ALBUQUERQUE – Francisco Javier Palillero, 28, Holloman Air Force Base, Alamogordo, New Mexico, was sentenced in federal court in Las Cruces yesterday to 121 months in prison for Sexual Abuse, committed against a civilian employee at Holloman Air Force Base.
A jury convicted Palillero of this offense on December 5, 2018, after a three day trial. The evidence at trial showed that on April 27, 2018, the victim and her fiancé were next-door neighbors to Palillero, on Holloman Air Force Base. On that date, the victim and her fiancé went to Palillero’s house for a barbeque. At approximately 10:00 p.m., the victim left the barbecue, returned home, and went to sleep in her bedroom with the bedroom door closed, while her fiancé remained at the barbecue.
At approximately 2:00 a.m, on April 28, 2018, Palillero, who was highly intoxicated, followed the victim’s fiancé back to the victim and her fiancé’s home. While the victim’s fiancé sat in the living room, Palillero snuck down a hallway leading to the victim’s bedroom, where she was sleeping. While the victim was sleeping and without her consent, Palillero kissed the victim’s face, rubbed her breasts, traced the outline of her underwear, moved her underwear to the side, rubbed her genital area roughly, and then digitally penetrated her vagina.
When the victim woke up, Palillero told her, “Don’t say anything” and then left the bedroom. The victim then charged out of her bedroom and punched Palillero multiple times in the face, knocking him to the floor.
The case was investigated by the Las Cruces FBI office and Holloman Air Force Base Security Forces. The case was prosecuted by Assistant U.S. Attorneys Matilda M. Villalobos and Mark A. Saltman.
Eight people indicted for conspiracy to sell heroin and cocaine in SanduskyRead the Press Release
Eight people, most from Sandusky, were indicted in federal court for their roles in a conspiracy to sell large amounts of heroin and cocaine in Sandusky.
Named in the 17-count indictment are: Siron Mills, 41; Patrick Brown, 38; Daryl Castile, 48; Timothy Johnson, 40; Jon Lippert, 38; Darrius Martin, 26, and Eugene Nicholson, 49, all of Sandusky, as well as Gregory Boswell, 44, of Cleveland.
All eight defendants are charged with conspiracy to possess with intent to distribute controlled substances. Martin is also charged with being a felon in possession of ammunition.
According to the indictment:
Mills obtained cocaine from a supplier in Columbus and heroin from Castile. Brown obtained cocaine from Mills and Brown. Members of the conspiracy used several residences and vehicles in Sandusky and Cleveland to store, package and distribute narcotics in the Sandusky area.
Prosecutors are seeking to forfeit four firearms, ammunition and nearly $40,000 in cash seized as part of the investigation.
“These defendants were part of a group that brought deadly heroin and cocaine into Sandusky,” U.S. Attorney Justin Herdman said. “These arrests have helped make our community safer.”
Drug Enforcement Administration Acting Special Agent in Charge Keith Martin said: “Keeping our communities safe from drug trafficking and violent crime is a top priority for the DEA. We will continue to utilize our combined resources and work with our law enforcement partners to bring those threatening the safety of citizens in northern Ohio to justice.”
“The Sandusky Police Department is appreciative of the partnership we have with the DEA and the US Attorney’s office in combating the influx of narcotics into our community,” said Sandusky Police Chief John Orzech. “We are cognizant of the resources needed to investigate criminal drug organizations. The citizens of our city can be assured of the continued partnership with DEA, as we pursue the eradication of drugs in our community.”
If convicted, the defendants’ sentences will be determined by the Court after reviewing factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases, it will be less than the maximum.
This case was investigated by the Drug Enforcement Administration and the Sandusky Police Department. The case is being prosecuted by Assistant United States Attorneys Alissa M. Sterling and Ashley A. Futrell.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Drug Dealer Sentenced to Eight Years in PrisonRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man who brokered the sales of methamphetamine was sentenced today to eight years and one month in federal prison to be followed by four years of supervised release, announced United States Attorney Nicholas A. Trutanich for the District of Nevada.
John William Prince, 51, was sentenced by United States District Judge Gloria M. Navarro. Prince pleaded guilty in January 2019, to one count of conspiracy to distribute methamphetamine.
According to court documents, beginning in October 2015, Prince conspired with others to distribute large quantities of methamphetamine in Las Vegas. Customers would pay Prince, who handed the money to distributors, who then gave Prince the methamphetamine for the customers. At four different times, Prince sold a half-pound of methamphetamine for $500. In total, he sold two pounds of methamphetamine for $2,000. On July 13, 2016, law enforcement arrested Prince during a drug transaction in which he was planning to sell two pounds of methamphetamine. Over the course of the investigation, Prince sold over 6 pounds of methamphetamine.
Co-conspirators Julian Garcia Palomera was sentenced to 70 months in prison; Ivan Estrada was sentenced to 37 months in prison; and Leonardo Chavez Morales was sentenced to 46 months in prison for their roles in the drug trafficking conspiracy.
The case was investigated by the Drug Enforcement Administration.
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Denver Man Pleads Guilty for Making Violent Threats Against Locations in Tulsa and PryorRead the Press Release
A Denver man pleaded guilty Wednesday to making multiple threats of violence against county, federal and Shriners employees in northeastern Oklahoma from April 24, 2017 to Aug. 8, 2017, announced U.S. Attorney Trent Shores.
Jose Rawdon Trujillo, 44, of Denver, Colorado, pleaded guilty to interstate communication of a threat and to making threats to injure by means of explosives. U.S. District Judge Gregory K. Frizzell accepted the plea and set sentencing for Oct. 4, 2019.
“Whether through the use of a cell phone or social media, spewing violent and terroristic threats has real world consequences. Mr. Trujillo learned this the hard way. He made nine threats of violence to individuals and organizations in northern Oklahoma. He threatened to ‘blow the Sheriff’s Office up like 9/11’ and to cut Akdar Shrine employees from ‘ear to ear,’” said U.S. Attorney Trent Shores. “Protecting our communities in northeastern Oklahoma is my highest priority. If you make violent or terroristic threats on social media, then we will take you at your word and prosecute accordingly. I encourage victims who have been violently threatened or cyberstalked via social media to report these crimes to law enforcement before there is an escalation to physical violence.”
Trujillo pleaded guilty to nine counts according to court documents.
Count One: April 24, 2017. Interstate Communication of a Threat. Communicating threats by cell phone to blow up the Tulsa County Sheriff’s Office (TCSO) and to cut the throats and heads off any officer who came to him.
Count Two: April 24, 2017. Threatening to Injure by Means of Explosive. By cell phone, threatened to kill, injure and intimidate individuals employed by the TCSO and to destroy their building by means of explosives.
Count Three: May 3, 2017. Threatening to Injure by Means of Explosive. By cell phone, threatened to kill, injure, and intimidate an employee of the U.S. Marshals Service and to destroy the federal courthouse in Tulsa by means of explosives.
Count Four: June 21, 2017. Threatening to Injure by Means of Explosive. By cell phone, threatened to kill, injure, and intimidate employees at the Akdar Shrine office building in Tulsa and destroy their building by means of explosives.
Count Five: June 21, 2017. Interstate Communication of a Threat. Used social media to threaten Akdar Shrine employees by stating he might cut them from “ear to ear” and “gut” them.
Count Six: June 27, 2017. Threatening to Injure by Means of Explosive. By cell phone, threatened to kill, injure, and intimidate employees of the U.S. Court Clerk’s Office and destroy the federal courthouse in Tulsa by means of explosives.
Count Seven: July, 10, 2017. Threatening to Injure by Means of Explosive. By cell phone, threatened to kill, injure, and intimidate employees of the Mayes County Sheriff’s Office and to destroy their building in Pryor by means of explosives.
Count Eight: Aug. 3, 2017. Interstate Communication of a Threat. Communicating a threat using a cell phone to kill a TCSO employee and his or her family.
Count Nine: Aug. 8, 2017. Threatening to Injure by Means of Explosive. By cell phone, threatened to kill, injure, and intimidate employees of the TCSO and destroy their building by means of explosives.
In August 2017, an arrest warrant was issued for Trujillo, and law enforcement was alerted to be on the look-out for the suspect. On Aug. 21, 2017, an Oklahoma Highway Patrol Trooper stopped Trujillo traveling eastbound on Interstate 44. At that time, Trujillo was taken into custody.
The FBI conducted the investigation. Assistant U.S. Attorney Allen J. Litchfield is prosecuting the case. AUSA Litchfield is the Chief of the Criminal Division at the U.S. Attorney’s Office in the Northern District of Oklahoma.
Delaware County Accountant Charged with Multiple Tax OffensesRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Myles Hannigan, 48, of Newtown Square, Pennsylvania, was charged by Information with one count of obstructing the due administration of the Internal Revenue Service (IRS), and seventeen counts of preparing materially false income tax returns.
Hannigan owned and operated Payroll Professionals, Incorporated (“PPI”), which operated out of Media, Pennsylvania. PPI is a third-party payroll processor that assists its clients by issuing payroll checks and forwarding tax payments to federal, state, and local authorities. PPI’s clients were small to medium-sized businesses, and the clients relied on Hannigan to prepare and file Form 941 with the IRS. Form 941 details employee wages that were paid by a company and income tax withheld and paid to the IRS based on those wages.
Beginning in January 2012 and continuing up to December 2016, Hannigan allegedly prepared and submitted Form 941s that falsely reported information to the IRS. In particular, Hannigan reported depositing more money to pay tax debt than he actually had sent to the IRS, causing 35 of PPI’s client companies (who are considered victims in this case) to collectively underpay the IRS $3,270,566.89 for those tax years. These victims/companies gave Hannigan access to all necessary funds to pay the full tax debt, but Hannigan allegedly failed to do so. Hannigan hid his behavior from these victims/companies by presenting bogus documents that purported to be confirmation of payments of taxes he had made to the IRS on their behalf, and by re-directing IRS correspondence to his business address. In essence, Hannigan is alleged to have operated a “Ponzi scheme” of borrowing from one client’s money to pay the debts of another, which collapsed when the interest and penalties owed to the IRS (which he was hiding from clients) became too big to hide.
“As alleged in the Information, this defendant – an accountant in business to handle payroll taxes – committed fraud and stole from clients and the United States government,” said U.S. Attorney McSwain. “He also stole from the pockets of all taxpayers who do the right thing by paying their taxes. It will continue to be a priority of my Office to bring tax cheats to justice and thereby protect honest taxpayers.”
If convicted, the defendant faces a maximum possible sentence of up to 54 years in prison, one year of supervised release, a fine of up to $1,805,000, and a special assessment of $1,800.
The case was investigated by the Internal Revenue Service (IRS), and the Treasury Inspector General for Tax Administration (TIGTA), and is being prosecuted by Assistant United States Attorney Jason P. Bologna.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Connecticut Man Charged with Possessing Fentanyl at Bath NY Veterans Affairs FacilityRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Nolan Rogers, 32, of Lisbon, CT, was arrested and charged by criminal complaint with possession of fentanyl. The charge carries a maximum penalty of one year in prison, and a fine of up to $100,000.
Assistant U.S. Attorney Sean C. Eldridge, who is handling the case, stated that the criminal complaint alleges that in March 2019, the defendant was a resident at the Bath, NY Veterans Affairs Medical Center. On March 2, 2019, Rogers returned to the facility after a trip home to Connecticut, when VA Police received information that the defendant was in possession of a prohibited item. VA Police responded and after speaking with Rogers, officers removed approximately 20 small baggies from his pocket that were rubber-banded together. Also recovered were four knives with blades over three inches long, an unspent round of ammunition, three used hypodermic needles, and a bag of unused needles.
Subsequent laboratory testing performed by the Drug Enforcement Administration confirmed that the substance contained in the 20 seized baggies was fentanyl.
The defendant made an initial appearance before U.S. Magistrate Judge Marian W. Payson, and further proceedings are scheduled on August 26, 2019, at 9:00 am.
The criminal complaint is the result of an investigation by the Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division, Northeast Field Office, under the direction of Special Agent-in-Charge Sean J. Smith, and the Bath Veterans Affairs Police Department, under the direction of Chief Joseph Day. Assistance was also provided by the Steuben County Sheriff’s Office, under the direction of Sheriff James L. Allard, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Columbus man admits to role in cocaine and heroin distribution operationRead the Press Release
WHEELING, WEST VIRGINIA – Kyuten J. Smith, of Columbus, Ohio, has admitted to his role in a cocaine and heroin distribution operation, United States Attorney Bill Powell announced.
Smith, also known as “Mitch,” pled guilty to one count of “Possession with Intent to Distribute Cocaine Base.” Kyuten, age 28, admitted to distributing cocaine base in Ohio County in September 2018.
Smith is facing no less than five and up to 40 years incarceration and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen L. Vogrin is prosecuting the case on behalf of the government. The investigation was led by the Ohio County Drug & Violent Crimes Task Force, a HIDTA-funded initiative. The task force is comprised of the Drug Enforcement Administration, West Virginia State Police, the Ohio County Sheriff’s Office, and the Wheeling Police Department. Those assisting in the arrests are the United States Marshal Service; Marshall County Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Hancock-Brooke-Weirton Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Martins Ferry, Ohio Police Department; and the Columbus, Ohio Police Department.
U.S. Magistrate Judge James P. Mazzone presided.
Colorado Man Sentenced to 14 Years for Enticing a Minor for Illicit SexRead the Press Release
KANSAS CITY, Mo. – A Colorado man was sentenced in federal court today for traveling to Kansas City, Mo., to meet an undercover FBI agent, whom he believed to be a mother with her 7-year-old daughter, for illicit sexual activity.
Ryan Edward Mausner, 43, of Basalt, Colo., was sentenced by U.S. District Judge Greg Kays to 14 years in federal prison without parole.
On Feb. 13, 2019, Mausner pleaded guilty to the online enticement of a minor. Mausner admitted that from Jan. 31 to May 25, 2018, he induced, enticed, and coerced a child victim to engage in criminal sexual activity. Mausner was actually communicating (via the Kik messaging application and texts) with an undercover FBI agent, who portrayed a single mother with a 7-year-old daughter.
Mausner admitted that he engaged the undercover agent in numerous private chat sessions, over several months, in which he said he wanted to engage in sexual activity with the mother and daughter. These discussions entailed descriptions of the 7-year-old girl and an insistence, on Mausner’s part, that the mother and 7-year-old would call him “Sir.” Mausner described, in explicit detail, the sorts of sexual activity that he intended to perform on the 7-year-old when they met.
Mausner began communicating plans to either travel to Kansas City, Mo., or arrange for the travel of the mother and her daughter to come to Colorado. Mausner traveled by plane from Denver, Colo., to Kansas City, Mo., on May 25, 2018, with the intent to engage in criminal sexual activity with the child victim. Mausner was arrested when he arrived at the Kansas City International Airport.
This case was prosecuted by Assistant U.S. Attorney Patrick D. Daly. It was investigated by the FBI.
Project Safe Childhood
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 individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Chinese National Pleads Guilty for Failing to Report A Foreign Bank AccountRead the Press Release
CHARLOTTE, N.C. – Lili Bian, a 59-year old citizen of China, and a lawful permanent resident of the United States living in Charlotte, appeared in federal court today and pleaded guilty to failing to report a foreign bank account with a balance exceeding $10,000, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. U.S. Magistrate Judge David C. Keesler presided over Bian’s guilty plea.
Matthew D. Line, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI) and : Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office join U.S. Attorney Murray in making today’s announcement.
According to court documents and today’s court proceedings, Bian admitted that on or about June 30, 2015, she knowingly and willfully failed to file with the Department of the Treasury a Foreign Bank and Financial Account Form TD F 90-22.1 (FBAR), as is required by all citizens or residents in the United States who had a financial interest in, or signature or other authority over a financial account in a foreign country with an aggregate value of more than $10,000. The FBAR requires the filer to identify the financial institution with which the account is held, the type of account, the account number, and the maximum value of the account during the calendar year of which the FBAR is filed. Bian admitted in court today that, during calendar year 2014, she failed to report that she had an interest in, or signature authority over, a financial account at FungChen Securities, a financial institution located in China, with an aggregate value of more than $10,000.
Bian’s son, Shi Yun Zhou, was sentenced in January 2019 to nine years in prison on drug trafficking conspiracy and money laundering conspiracy charges. Pursuant to her plea agreement, Bian has agreed to forfeit over $3 million in U.S. currency, funds, and other assets, including multiple residences and luxury vehicles, many of which are titled in both Bian and Zhou’s names, and were previously identified for forfeiture in the Zhou case.
The charge of willful failure to file an FBAR carries a maximum prison term of five years and a $250,000 fine.
In making today’s announcement, U.S. Attorney Murray thanked IRS-CI and the DEA for their investigation of this case, and commended the U.S. Marshals Service, the Pineville Police Department, the Cornelius Police Department, the Charlotte-Mecklenburg Police Department, the Mint Hill Police Department, the Huntersville Police Department, the Monroe Police Department, and the Gastonia Police Department for their invaluable assistance.
Assistant U.S. Attorneys Sanjeev Bhasker and Caryn Finley are in charge of the prosecution. Assistant U.S. Attorney Benjamin Bain-Creed is handling the forfeiture proceedings.
Carjacker Who Shot Lakeland Police Officer Sentenced to 30 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Virginia M. Hernandez Covington today sentenced Terrese Colston (29, Polk County) to 30 years in federal prison for carjacking, brandishing a firearm during and in relation to a crime of violence, and possessing a firearm and ammunition as a convicted felon. The sentence consists of 15 years’ imprisonment on the carjacking charge, 15 years’ imprisonment (consecutive) on the firearm brandishing charge, and 10 years’ imprisonment (concurrent) on the felon-in-possession charge.
According to court documents and evidence presented at sentencing, on July 11, 2018, the victim was in his parked car on East Lemon Street, Lakeland when Colston approached the driver’s side window, pointed a loaded revolver at the victim, and told him to get out of the car. The victim was in fear for his life and complied. Colston then got into the victim’s car and drove away. A few hours later, a Lakeland police officer spotted the stolen Mazda and attempted to pull it over. Colston crashed the car and fled on foot. When the officer finally caught up to Colston and attempted to stop him using a Tazer, Colston turned around and shot the officer in the face. The officer survived and returned fire, striking Colston in the leg. Other officers arrived and took Colston into custody.
United States Attorney Maria Chapa Lopez said, “My Office backs our men and women in blue. The prosecution of all violent crime, including against law enforcement officers, is a top priority for me.”
“This sentencing should send a strong message that violence against law enforcement who are working to serve and protect communities will not be tolerated,” said ATF Special Agent in Charge Daryl McCrary. “Our strong partnerships continue to reduce violent firearms crime and mitigate dangerous individuals from committing further acts of violence.”
Lakeland Police Chief Ruben Garcia said, “The members of the Lakeland Police Department are grateful to our federal law enforcement partners at the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the U.S. Attorney’s Office for the successful prosecution of this case and the incarceration of a violent felon to safeguard the citizens of our community.”
This case was brought in furtherance of the President’s February 9, 2017 Executive Order on Preventing Violence Against Federal, State, Tribal, and Local Law Enforcement Officers (EO). The EO established that it is the policy of the executive branch to enhance the protection and safety of federal, state, tribal, and local law enforcement officers, and thereby all Americans.
This case was also brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. 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.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Lakeland Police Department. It was prosecuted by Assistant United States Attorney Christopher F. Murray.
Bay Area Real Estate Agent Indicted for Defrauding Homebuyers Out of Down PaymentsRead the Press Release
OAKLAND— A federal grand jury in Oakland indicted real estate agent Min Jin Zhao, a/k/a Michael Zhao, a/k/a Michael West, on charges of wire fraud, mail fraud, and money laundering, announced United States Attorney David L. Anderson; Internal Revenue Service, Criminal Investigation (IRS-CI), Special Agent in Charge Kareem Carter; and Federal Bureau of Investigation (FBI) Special Agent In Charge John F. Bennett.
According to the indictment filed May 9, 2019, and unsealed today, Zhao, 56, of San Francisco, is a real estate agent working in the Bay Area who defrauded his clients out of down payments meant for the purchase of homes in and around the Bay Area. From 2014 through 2015, Zhao misrepresented to prospective homebuyers and investors that Portfolio Consulting, Inc., offered a loan program that would enable his clients to procure financing to make all-cash offers on real property. Zhao told his victims that, as part of the loan program, they had to wire, transfer, or deposit 10% to 20% of the sale price of the real property they sought to purchase into Portfolio’s bank account. According to the indictment, Zhao told his clients that once they delivered their funds to Portfolio, the company then would provide the remaining portion of the purchase price. In reality, however, after Zhao’s victims deposited their funds into Portfolio’s account, Zhao either spent the funds or transferred the funds to another bank account in Portfolio’s name. Further, Zhao used the funds to make purchases unrelated to the purchase of real property for the victims, including for purchases for Zhao’s benefit and the benefit of businesses he controlled. In sum, Zhao is charged with three counts of wire fraud, in violation of 18 U.S.C. § 1343; two counts of mail fraud, in violation of 18 U.S.C. § 1341; and one count of money laundering, in violation of 18 U.S.C. § 1957.
Zhao was arrested in San Francisco on July 2, 2019, and made his initial federal court appearance this morning in Oakland. Zhao is currently out on bond. His next scheduled appearance is on September 11, 2019, at 10:30 a.m., for an initial appearance before the Honorable James Donato, U.S. District Judge.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Zhao faces a maximum sentence of 20 years in prison and a fine of $250,000, plus restitution for each violation of wire and mail fraud, as well as 10 years in prison and a fine of $250,000, plus restitution for the money laundering count. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Jose Apolinar Olivera is prosecuting the case with the assistance of Jessica Rodriguez Gonzalez and Katie Turner. The prosecution is the result of an investigation by the IRS-CI and the FBI.
Attorney General’s Advisory Subcommitee on Native American Issues Meets to Discuss Violent Crime in Indian CountryRead the Press Release
WASHINGTON, D.C. – Attorney General William P. Barr’s Advisory Subcommittee on Native American Issues (NAIS) convened during the U.S. Attorney’s National Conference in Washington, D.C., to discuss a wide range of justice issues affecting Indian Country, announced U.S. Attorney Trent Shores (OK-N), Chair, and U.S. Attorney Kurt Alme (MT), Vice Chair. U.S. Attorney Ron Parsons (SD), who heads the NAIS Law Enforcement Resources Working Group, was also in attendance.
“The Native American Issues Subcommittee is focused on reducing violent crime against women and children in Indian Country, including missing and murdered indigenous persons,” said U.S. Attorney Trent Shores. “I am thankful for Attorney General Barr’s leadership on these issues. He understands the law enforcement and jurisdictional challenges faced by Native Americans and Alaska Natives. We look forward to working with him and with our federal, tribal, state and local partners to find viable solutions that will improve public safety in Indian country.”
“It was an honor to be hosted in the Indian Treaty Room at the White House to work on these important issues,” said U.S. Attorney Parsons. “The Department of Justice is committed to doing everything it can to improve public safety in Native American communities across the United States.”
On Tuesday, the NAIS met with Tara Sweeny, Assistant Secretary of Indian Affairs, Department of the Interior, and discussed cross-agency collaboration in order to provide more responsive and effective justice services to Indian Country. They further discussed Indian Country case investigations, case intake and tracking databases, and tribal law enforcement resource allocation. The NAIS also reviewed President Trump’s priorities for Indian Country justice. Those priorities include protecting Native American children in the Indian Health Services system, collaboration among Department of Justice, the Department of the Interior, and tribal law enforcement agencies, reducing violent crime, and providing services to help victims to overcome trauma.
On Wednesday, U.S. Attorney Shores moderated a panel titled Murdered and Missing Indigenous Women: A Crisis in Urban America & Indian Country. Panelists included Charles Addington, Director of the Office of Justice Services, Bureau of Indian Affairs; Kurt Alme, U.S. Attorney for the District of Montana; Tracy Toulou, Director of the Office of Tribal Justice; Laura Rogers, Acting Director of the Office on Violence Against Women; and Bryan Vorndran, Deputy Assistant Director of the FBI. The panel discussed the development and implementation of protocols to investigate murdered and missing indigenous persons and how to more accurately measure the scope of the problem in both urban America and Indian Country in order to develop strategies to address it.
In August, the subcommittee is scheduled to reconvene in Indian Country in New Mexico.
The NAIS consists of the approximately 53 U.S. Attorneys serving in districts that include Indian Country or one or more federally recognized tribes. The NAIS focuses exclusively on Indian Country issues, both criminal and civil, and makes policy recommendations to the Attorney General regarding public safety and legal issues that impact tribal communities.
The NAIS is the longest standing subcommittee to the Attorney General’s Advisory Committee and helps develop, shape, and otherwise implement justice policies affecting Native Americans and Alaska Natives. The NAIS has identified four priority areas: 1) Violent crime 2) Law enforcement resources 3) Drug trafficking and substance abuse, and 4) White collar crime.
Alexandria man indicted for $198,000 bank fraud scheme, lying on loan applicationsRead the Press Release
ALEXANDRIA, La. – United States Attorney David C. Joseph announced that a federal grand jury returned a three-count indictment on June 26, 2019, charging Roger D. Boggs, 50, of Alexandria, with bank fraud and making false statements on loan applications in order to receive more than $190,000. Boggs was charged with one count of bank fraud and two counts of false statements on loan applications.
According to the indictment, Boggs engaged in a series of schemes to obtain a commercial loan from Red River Bank between May 2015 and March 2016. Boggs submitted fraudulent stock certificates and signed a fraudulent mortgage in support of his loan request, specifically, on June 5, June 11 and September 25 of 2015. Among other things and in an effort to influence the bank to grant his loan application, Boggs falsely claimed that he owned 26 million shares of the company American Specialty Alloys Inc. (ASA), which he valued at $9 a share and pledged 1 million ASA shares to the bank as collateral. Boggs requested an additional disbursement to the loan on June 11, 2015, and he renewed the existing loan on September 25, 2015, both times pledging 1 million shares of ASA stock as collateral.
Boggs also fraudulently offered the bank a mortgage on real estate he allegedly owned in Kentucky but failed to inform the bank that he had previously sold the property on September 12, 2015. The bank disbursed a total of $198,712 to Boggs in reliance on the false information he provided.
If convicted, Boggs faces 30 years in prison for each count of bank fraud and false statement on a loan application. He also faces up to five years of supervised release, a $1 million fine and restitution.
The FBI conducted the investigation. Assistant U.S. Attorney Tiffany E. Fields is prosecuting the case.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
A Fourth of July Message from US Attorney J. Douglas OverbeyRead the Press Release
KNOXVILLE, Tenn. - This Thursday brings with it our annual reminder of the inception of our great nation. It began with a statement of unity, a gathering of citizens banding together to put a deeply American sentiment to paper. It was a declaration that our country, belonging to no one but its own citizens, would not quell before the threat of tyranny and of foreign powers. On the fourth of July, we, a nation undivided, were willing to stand together in pursuit of our own freedom and the freedom of generations to come.
The signing of the Declaration of Independence was not the first step towards freedom, nor was it the last, but it serves even today as a resounding moment that the United States of America can still look towards for strength and guidance and remember the ideal of life, liberty, and the pursuit of happiness. It was a brief moment in history with an impact that can be felt even today, and together, as a nation, we celebrate the Declaration of Independence as a milestone, a reminder that the United States is not a country that can be divided.
On this Fourth of July, we as a nation celebrate that unity, that independence from those who would tear us apart. We are America, land of the free and home of the brave. In the words of former Associate Justice of the Supreme Court, Oliver Wendell Holmes, Jr:
“One flag, one land, one heart, one hand, one nation forevermore.”
Best regards
J. Douglas Overbey
United States Attorney
2 July 2019
Woman Who Hid Heroin to Appear Pregnant Pleads Guilty to Drug TraffickingRead the Press Release
KANSAS CITY, Mo. – A woman who hid heroin around her waist and pretended to be pregnant pleaded guilty in federal court today to drug trafficking.
Perla E. Murillo, 18, pleaded guilty before U.S. Chief Magistrate Judge Matt J. Whitworth to possessing heroin with the intent to distribute.
Law enforcement officers were conducting interdiction activities at a local bus station on Nov. 27, 2018. Murillo got off a bus traveling from Denver, Colorado, to New York. Detectives contacted Murillo, who appeared very nervous and looked down at her belly when detectives explained they were looking for illegal narcotics. Upon closer inspection, her belly appeared to be somewhat lumpy or out of shape.
Murillo agreed to be searched and unzipped her maroon jacket. Detectives observed a pink maternity shirt with abnormal lumps and could see what appeared to be pillow stuffing between her pink maternity shirt and a sweatshirt. At that point, Murillo’s eyes began to well up with tears. Detectives looked into the gap between the pink maternity shirt and the sweatshirt and observed two bundles wrapped in grey and red duct tape behind some stuffing. Detectives immediately recognized the bundles to be a common method of transporting large amounts of narcotics.
After Murillo was detained, she removed three bundles that were wrapped to her body with a gauze-type material. The bundles contained a total of approximately 1.9 kilograms (more than four pounds) of heroin. Murillo also told investigators she had been paid $1,000 to transport four similarly-sized bundles of heroin to New York earlier that month.
Under federal statutes, Murillo is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 40 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Ashleigh A. Ragner and Trey Alford. It was investigated by the Drug Enforcement Administration and the Missouri Western Interdiction Narcotics Task Force (MoWIN).
Wisconsin Community Services, Inc. Voluntarily Discloses and Agrees to Pay over $500,000 to Resolve False Billings to Medicare and MedicaidRead the Press Release
United States Attorney Matthew D. Krueger announced today that Wisconsin Community Services, Inc. (“WCS”) agreed to pay $537, 904.33 to the United States and the State of Wisconsin to resolve false claims for prescription medications submitted by WCS to Medicare and Medicaid in violation of the False Claims Act, 31 U.S.C. §3729-3733.
WCS is a not-for-profit corporation based in Milwaukee, Wisconsin. WCS provides a range of services, including outpatient mental health services and an associated pharmacy. WCS voluntarily disclosed to the United States Attorney’s Office that one of its pharmacists submitted claims to Medicare and Medicaid that misrepresented the prescription drugs dispensed by WCS over several years. For example, WCS dispensed generic formulations of prescription medications but billed Medicare and Medicaid for more expensive name brand formulations of the medications. As a result, Medicare and Medicaid paid WCS significantly more reimbursement than it was entitled to receive.
“We appreciate that WCS voluntarily disclosed its violations of the False Claims Act and cooperated with the government’s investigation,” stated United States Attorney Krueger. “At the same time, this settlement will make Medicare and Medicaid whole and protect taxpayer funds.”
“Medicare and Medicaid providers cannot misrepresent the drugs they dispense in order to increase their billings,” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General – Chicago Region. “The OIG will continue to work with our federal, state and local partners to protect the health and safety of Medicare and Medicaid patients and vital taxpayer dollars.”
Assistant United States Attorney Michael Carter represented the government in this matter. The OIG and the Wisconsin Department of Justice Medicaid Fraud Control & Elder Abuse Unit assisted in the investigation. The settlement agreement states allegations only; the defendant does not admit liability for the allegations.
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Veterans Affairs Nurse Sentenced for Drug DistributionRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, United States District Judge James C. Dever III sentenced AARON WAYNE PICKRELL, 50, of Fayetteville, North Carolina, to 3 years’ probation and 90 days house arrest.
PICKRELL was named in a five-count Indictment filed on December 12, 2018, and on March 20, 2019, he pled guilty to one count of Obtaining a Controlled Substance through Forgery, Fraud, Deception, and Subterfuge.
The investigation was conducted by the Department of Veterans Affairs (VA) Office of Inspector General (OIG). It began on February 28, 2018, when authorities received information from a confidential informant indicating that PICKRELL, a registered nurse (RN) at the VA Medical Center (MC) in Fayetteville, North Carolina, was diverting controlled substances for his own use.
On March 1, 2018, investigators met with PICKRELL’s supervisor and learned PICKRELL was assigned to the Intensive Care Unit (ICU), but worked in different sections of the VAMC as needed. A review of VAMC records revealed that PICKRELL had submitted requests through the automated prescription delivery system (Omnicell) fraudulently indicating that a physician had given orders for Hydromorphone (Dilaudid) to be administered to patients. As a result, PICKRELL thereby gained access to the VA’s automated dispensing pharmacy system in order to obtain Hydromorphone for his own purposes.
On March 2, 2018, VA OIG agents conducted an interview of PICKRELL and he admitted that he had diverted Hydromorphone from the VAMC for his own use for at least the past two to three years. A comprehensive audit of the Omnicell transaction reports, VA computerized patient record system, and the Veterans Health Information Systems Technology Architecture system revealed that PICKRELL had diverted 5,930 mg of Hydromorphone between January 1, 2015, until May 1, 2018. The records reflected that PICKRELL had developed a weekly/monthly pattern of diverting controlled substance medications wherein he would override the Omnicell safe guards to withdraw medications without a physician’s order. The scheme was further accomplished by working at various sections within the Fayetteville VAMC, including the nursing home, urgent care, psychiatric unit, and ICU. PICKRELL was terminated by the VAMC on March 5, 2018, due to his failure to maintain statutory and VA policy requirements for appointment as an RN, as well as his diversion of controlled substances.
That effort has been implemented through 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 in those communities on a sustained basis to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. For more information about this initiative click here: https://www.justice.gov/usao-ednc/tbnc
The investigation of this case was conducted by the Department of Veterans Affairs (VA) Office of Inspector General (OIG). Assistant United States Attorney Scott A. Lemmon represented the government.
Utah Man Sentenced for Computer Hacking CrimeRead the Press Release
Assistant U. S. Attorney John Parmley (619) 546-7957
NEWS RELEASE SUMMARY – July 2, 2019
SAN DIEGO – Austin Thompson of Utah was sentenced in federal court today to 27 months in prison for carrying out a series of so-called denial-of-service computer hacking attacks against multiple victims between 2013 and 2014. The defendant was also ordered to pay $95,000 in restitution to one of the victims - Daybreak Games, formerly Sony Online Entertainment.
A denial-of-service (DoS) attack occurs when legitimate users are unable to access information systems, devices, or other network resources due to the actions of a malicious cyber threat actor. Essentially the hacker floods the targeted host or network with traffic until the target cannot respond or simply crashes, preventing access for legitimate purposes.
According to the plea agreement, between December 2013 and January 2014, Thompson’s attacks, which flooded his victims’ servers with enough internet traffic to take them offline, were directed mainly at online gaming companies and servers, including then San Diego-based Sony Online Entertainment. Thompson typically used the Twitter account @DerpTrolling to announce that an attack was imminent and then posted “scalps” (screenshots or other photos showing that victims’ servers had been taken down) after the attack. The attacks took down game servers and related computers around the world, often for hours at a time. According to the plea agreement, Thompson’s actions caused at least $95,000 in damages.
The defendant, who is free on bond, was ordered to surrender to authorities on August 23 to begin his sentence.
“Denial-of-service attacks cost businesses and individuals millions of dollars annually,” said U.S. Attorney Robert Brewer. “We are committed to prosecuting hackers who intentionally disrupt internet access.” Brewer praised Assistant U.S. Attorney John Parmley and the FBI’s San Diego Field Office for their hard work on this case.
DEFENDANT Case Number 18cr4775JM
Austin Thompson Age: 23
SUMMARY OF CHARGES
Damage to a Protected Computer, 18 U.S.C. § 1030(a)(5)(A)
Maximum penalty: Ten years in prison, $250,000 fine
AGENCY
Federal Bureau of Investigation – San Diego Field Office
United States Sues Railroad to Recover Millions in Damages Caused by “416” Fire Near DurangoRead the Press Release
DENVER, Colorado — U.S. Attorney Jason Dunn announced today that his office has filed a lawsuit on behalf of the U.S. Forest Service in the U.S. District Court for the District of Colorado against the Durango & Silverton Narrow Gauge Railroad Company and its owner and operator, American Heritage Railways, Inc., seeking to recover damages it suffered as a result of the “416 Fire,” which started on the morning of June 1, 2018, near Durango, Colorado. The United States incurred approximately $25 million in suppression costs and other damages, including rehabilitation costs, which are still to be fully determined.
The 416 Fire burned approximately 54,000 acres, mostly on lands in the San Juan National Forest, and required significant deployment of federal firefighting resources. Five incident management teams (IMTs) were assigned to the fire during the course of the incident. All the IMTs assigned met the objective of keeping the fire west of Highway 550 and north of a large subdivision. The fire burned actively for approximately 61 days and was not declared completely extinguished until November 29, 2018.
In the complaint, the United States alleges that the ignition of the 416 Fire occurred adjacent to the railroad track used by the Durango & Silverton Narrow Gauge Railroad Company. The United States alleges that the fire was ignited by burning particles emitted from an exhaust stack on a coal-burning steam engine locomotive owned and operated by the Durango & Silverton Narrow Gauge Railroad Company and its owner and operator, American Heritage Railways, Inc.
The United States asserts that because the fire was caused by the Durango & Silverton Narrow Gauge Railroad Company and American Heritage Railways, Inc., they should be held liable under federal and Colorado law for all the damages incurred by the United States as a result of the fire, including the costs of fire suppression and the costs to rehabilitate the public lands damaged by the fire.
“Protecting our public lands is one of the most important things we do in the U.S. Attorney’s Office,” said U.S. Attorney Jason Dunn. “This fire caused significant damage, cost taxpayers millions of dollars, and put lives at risk. We owe it to taxpayers to bring this action on their behalf.”
“As with all fire investigations, the 416 Fire investigation was handled with great care and thoroughness. We appreciate the communities’ patience through this process,” said San Juan National Forest Supervisor Kara Chadwick. “We will continue to work toward preventing similar fires from happening by reminding local businesses and the public about their role in protecting nature, and using every available tool to improve forest conditions.”
This matter was investigated by the U.S. Forest Service. The litigation is being handled Assistant U.S. Attorneys Jacob Licht-Steenfat and Katherine Ross.
Two New York Men Charged with Aggravated Identity Theft and Conspiracy to Commit Bank FraudRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announces the June 28, 2019 return of an indictment charging two New York men with aggravated identity theft and conspiracy to commit bank fraud.
The indictment charges TERRENCE NEALY, age 31, of Rockville Center, New York, and MYLES NICHOLAS, age 32, of Jamaica, New York. The defendants were charged with conspiracy to commit bank fraud, which carries a maximum penalty of 30 years in prison, a $1,000,000.00 fine, and up to five years of supervised release. They are also charged with aggravated identity theft, which carries a mandatory sentence of two years in prison consecutive to any other sentence, a maximum $250,000.00 fine, and up to one year of supervised release.
According to court documents, members of the Louisiana Financial Crimes Task Force received information that NEALY and NICHOLAS would be flying to New Orleans from New York on the morning of June 21, 2019. Jefferson Parish Sheriff’s Office deputies and U.S. Secret Service agents initiated surveillance at New Orleans International Airport, where they observed NEALY and NICHOLAS rent a car and immediately travel to Baton Rouge. While in Baton Rouge, the defendants traveled to two local Best Buy stores and attempted to open a fraudulent Best Buy credit card, which is issued by Citibank, using a stolen identity. They then traveled back to New Orleans where they were arrested by state and federal law enforcement.
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.
U.S. Attorney Strasser praised the agencies that contributed to this indictment, which represents a coordinated effort of federal and state law enforcement authorities within the Louisiana Financial Crimes Task Force. The Task Force includes representatives from the U.S. Secret Service, the U.S. Postal Inspection Service, the Louisiana Attorney General’s Office, the Jefferson Parish Sheriff’s Office, and the New Orleans Police Department. Assistant United States Attorney Matthew R. Payne is in charge of the prosecution.
Tulsa Man Sentenced to 33 Years in Prison for Multiple Armed RobberiesRead the Press Release
TULSA, Okla. – A man convicted of three armed robberies in Tulsa was sentenced Tuesday for his crimes, announced U.S. Attorney Trent Shores. In March 2019, a jury found Melvin Louis Bailey, 26, of Tulsa guilty of obstructing commerce by robbery; carrying, using and brandishing a firearm during a crime of violence; and Hobbs Act conspiracy.
U.S. District Judge Gregory K. Frizzell sentenced Bailey to 33 years in federal prison to be followed by five years of supervised release. The Court denied Bailey’s request for downward variance and further ordered the defendant to pay $7,968 in restitution for his crimes.
“Melvin Bailey committed so many armed robberies in Tulsa and Texas that he lost count of the total number of offenses. His armed robbery crime spree has earned him 33 years in federal prison,” said U.S. Attorney Trent Shores. “The Tulsa Police Department and the Federal Bureau of Investigation joined with Assistant U.S. Attorneys Dennis Fries and Ryan Roberts to form a formidable investigative and prosecution team. This is justice achieved through another Project Safe Neighborhoods prosecution.”
From April 2015 to January 2018, the defendant committed three separate armed robberies of two Walgreens’ locations in Tulsa. During the crimes, Bailey brandished a shotgun or handgun to intimidate Walgreens’ employees. In January 2018, he also conspired with a juvenile to rob the pharmacy. As part of the conspiracy, Bailey provided a mask and firearm to the juvenile, and the two discussed strategy to commit the crime. Afterward, he and his co-conspirator met at Bailey’s apartment and divided the stolen money. Beyond his conviction in the Northern District of Oklahoma, Bailey has been named as a suspect in numerous other armed robberies.
Bailey remains in the custody of the U.S. Marshals Service pending transfer to a U.S. Bureau of Prisons facility.
The Tulsa Police Department and FBI conducted the investigation. Assistant U.S. Attorneys Dennis A. Fries and Ryan M. Roberts prosecuted the case.
Project Safe Neighborhoods is the nationwide federal initiative to disrupt gun violence strategically and comprehensively, using all available enforcement and prosecutive tools. The initiative involves a partnership of federal, state, and local authorities, uniting their efforts and leveraging existing and new resources. The U.S. Attorney’s Office and its partners tailor their efforts to meet their own district’s unique needs, helping ensure the safety of communities in the Northern District of Oklahoma.
Tukwila, Washington Man Sentenced to 6 Years in Prison for Possession of Child PornographyRead the Press Release
A 50-year-old Tukwila, Washington man, with a prior state conviction for possession of child pornography, was sentenced July 1, 2019, to six years in prison, announced U.S. Attorney Brian T. Moran. JEFFREY ALLEN MORRIS was arrested in September 2018, following a cybertip to the National Center for Missing and Exploited Children (NCMEC). At the sentencing hearing, U.S. District Judge James L. Robart sentenced MORRIS to ten years of supervised release to follow prison, telling the defendant that he needed to get control of his demons or he would “spend the rest of his life in prison.”
According to records filed in the case, the investigation by the Seattle Police and Homeland Security Investigations began May 10, 2018, when Microsoft Skype reported to NCMEC that a subscriber, MORRIS, had uploaded images of child rape. Law enforcement confirmed the images were sexual abuse of toddlers. A review of MORRIS’ Skype chats revealed his interest in sex acts with children as young as 3 years old. When law enforcement conducted a court-authorized search of MORRIS’ residence, forensic analysis revealed hundreds of images of child rape and molestation on his electronic devices.
MORRIS served a 21-month state sentence in 2007 for possession of images of child pornography. In that case, he had posted over 100 images of sexually explicit images of child rape and abuse to Yahoo.com profile photos. A search of his computers at that time revealed he had more than 700 images and 14 movies depicting the sexual abuse of children.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate better, 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.justice.gov/psc.
The case was investigated by Homeland Security Investigations, as part of the Internet Crimes Against Children (ICAC) Taskforce led by the Seattle Police Department.
The case is being prosecuted by Special Assistant United States Attorney Cecelia Gregson. Ms. Gregson is a Senior King County Deputy Prosecutor specially designated to prosecute child exploitation crimes in federal court.
Three Texas Men Indicted for Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – RAFAEL MOLINA, age 43, GUSTAVO BALDERAS, age 32, and MICHAEL GARZA, age 34, all residents of Texas, were charged February 22, 2019, in a six-count indictment by a Federal Grand Jury with several narcotics offenses, including conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine hydrochloride and five hundred grams or more of a mixture or substance containing a detectable amount of methamphetamine, use of a communication facility to facilitate a drug trafficking crime, and distribution of cocaine hydrochloride, announced U.S. Attorney Peter G. Strasser.
According to court records, a Drug Enforcement Administration (DEA) Task Force identified MOLINA as an upper level narcotics trafficker of cocaine in the Thibodaux, Louisiana area. Between July 2018 and September 2018, MOLINA made several telephone calls in the Eastern District of Louisiana to facilitate a cocaine conspiracy and on September 28, 2018, distributed more than 500 grams of cocaine hydrochloride to the Eastern District of Louisiana.
On February 10, 2019, the DEA Task Force learned that MOLINA was en route to Thibodaux to deliver two kilograms of cocaine. Task Force officers established surveillance in Thibodaux and observed MOLINA, riding in a white pickup truck, and BALDERAS and GARZA, riding in a black Chrysler 300, registered to GARZA, at a motel in Thibodaux. GARZA and BALDERAS entered the truck with MOLINA and they departed from the motel. As the three departed the motel, officers conducted a traffic stop on the truck. Agents searched both vehicles and located a Yeti ice chest in the Chrysler 300. Inside the Yeti were two kilograms of cocaine hydrochloride.
If convicted, MOLINA, BALDERAS and GARZA face a mandatory minimum term of imprisonment of 10 years and a maximum of life imprisonment, a fine of up to $10,000,000.00 and at least five years of supervised release following any term of imprisonment.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
U.S. Attorney Strasser reiterated that the indictment is merely a charging document and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was investigated by the Drug Enforcement Administration, Office of Homeland Security Investigations-Harlingen, Texas, Terrebonne Parish Sheriff’s Office, and the Lafourche Parish Sheriff’s Office. The prosecution is being handled by Assistant United States Attorney André Jones.
Sumter Women Sentenced to Federal Prison in Healthcare Fraud SchemeRead the Press Release
Columbia, South Carolina – United States Attorney Sherri A. Lydon announced today that Angela Breitweiser Keith, age 53, and Ann Davis Eldridge, age 58, both of Sumter, were sentenced after pleading guilty to one count of making false statements to defraud Medicaid. United States Magistrate Judge Paige J. Gossett of Columbia sentenced Keith to 12 months in federal prison and Eldridge to 6 months.
Facts presented during the hearing showed that Keith and Eldridge were executives of the South Carolina Early Autism Project (SCEAP). SCEAP provided behavioral health and education solutions for children and young adults, particularly those diagnosed with autism. SCEAP began providing Applied Behavior Analysis (ABA) services for children with autism in 2003, becoming the number one biller in the country for ABA services by 2015. SCEAP overcharged Medicaid and Tricare (military-affiliated insurance) millions of dollars by inflating billing records and charging the government for services it did not provide to clients. SCEAP employees reported to the government that they were pressured to exaggerate the amount of time they spent delivering services to the clients. Company emails indicated that SCEAP encouraged employees to unlawfully bill for time while waiting in driveways, traveling to and from servicing the clients, and even while sitting in restaurants. The employees also indicated that they had required billing goals they had to meet to qualify for job benefits and/or bonuses. These bonuses included gift cards and company-expensed vacations.
Ann Eldridge was a co-founder of SCEAP and Angela Breitweiser Keith worked at the SCEAP since its inception. In December 2012, Eldridge and her partner sold SCEAP to a company called Chancelight for over $18 million. Eldridge and Keith remained with the company, continuing in leadership roles in South Carolina. Chancelight engaged Eldridge to promote the SCEAP system to other Chancelight franchises in the Southeast and promoted Keith to Senior Vice President of Data Reporting and Analysis. In 2018, SCEAP/Chancelight repaid the government nearly $9 million for overbilling Medicaid and Tricare in a civil settlement.
“The U.S. Attorney’s Office will aggressively protect the integrity of our health care system,” said U.S. Attorney Lydon. “Those found cheating the system face the prospect of both civil fines and federal prison time.”
“Fraudulently diverting funds from vital government healthcare programs comes at a cost—as this sentence illustrates,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health & Human Services, Office of Inspector General. “Every dollar overcharged decreases funds available to provide desperately needed healthcare services to this vulnerable population. We will continue working with state and federal law enforcement partners to bring such criminals to justice.”
"These sentencings are the product of a thorough investigation and demonstrate the commitment of the Defense Criminal Investigative Service (DCIS) and our law enforcement partners to hold dishonest medical service providers accountable when they submit false bills and divert taxpayer funds," said Special Agent in Charge Robert E. Craig, Jr., DCIS Mid-Atlantic Field Office. "DCIS will continue to protect the integrity of the Department of Defense by rooting out fraud, waste, and abuse that negatively impacts critical programs such as TRICARE."
The investigation was conducted by members of the Department of Health and Human Services, Office of Inspector General, the Department of Defense, Office of Inspector General and the South Carolina Attorney General’s Office. The case was prosecuted by Assistant United States Attorney T. DeWayne Pearson of the Columbia office.
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St. Charles Man Pleads Guilty to Fentanyl ConspiracyRead the Press Release
St. Louis –Jonathen Aguilar, 31, of St. Charles, Missouri, pleaded guilty to one felony count of conspiracy to distribute and possess with the intent to distribute between 1.2 and 4 kilograms fentanyl. Aguilar appeared in federal court today before U.S. District Judge Rodney L. White who accepted his plea and set his sentencing date for October 2, 2019.
According to court documents, on September 13, 2018, a suspicious package was sent to the address of 2017 Avignon Drive in St. Charles, Missouri from California. Aguilar and co-defendant Ruben Lopez were involved in retrieving the package from Avignon Drive and delivering it to another residence at 425 Molina Way.
On September 18, 2018, inspectors discovered a suspicious package addressed to a “Kimberly Coxx” at “2017 Avignon Dr” and a La Mirada, California return address. Investigators obtained a federal warrant to search the package. Inside, inspectors discovered fentanyl. The fentanyl was seized.
Based on additional investigation, investigators obtained a search warrant for 2017 Avignon Drive and 425 Molina Way. During the Avignon Drive search, investigators located and seized, among other things, a stolen Glock 27 .40 caliber handgun with an ammunition magazine containing twelve rounds; two suspected pill presses with drug residue; fentanyl; and an empty postal box mailed on August 30, 2018. During the Molina Way search, investigators located and seized, among other things, fentanyl and $19,000.
On September 20, 2018, the Drug Enforcement Administration received information that an additional package was present on the porch at 2017 Avignon Drive. Investigators obtained a federal warrant to search the package. Inspectors located fentanyl inside.
Aguilar faces a penalty of imprisonment of not more than life, a fine of not more than $10,000,000 or both. In determining the actual sentence, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
These charges are a result of a joint investigation between the St. Louis Division of the Drug Enforcement Administration, the United States Postal Inspection Service with assistance from the St. Charles County Police Department, the St. Charles County Regional Drug Task Force, the St. Charles County Prosecuting Attorney’s Office and the St. Peters Police Department.
Springfield Man Charged with ExtortionRead the Press Release
BOSTON – A Springfield man was arrested today and charged in federal court in Springfield with extortion.
Anthony J. Scibelli, 51, was charged with one count of collecting on an extension of credit by extortionate means. He will appear in federal court in Springfield later today.
According to the criminal complaint, in 2019, Scibelli collected on a line of credit that had been extended to a victim. It is alleged that on June 19, 2019, Scibelli threatened and beat the victim for failing to make the monthly $1300 payment. The beating occurred in front of four plain clothed members of law enforcement. During the beating, Scibelli allegedly threatened that the victim must have all the money “on the first,” referring to the 1st of the month.
United States Attorney Andrew E. Lelling; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; and Colonel Kerry Gilpin, Superintendent of the Massachusetts State Police, made the announcement today. Assistant U.S. Attorney Neil Desroches of Lelling’s Springfield Branch Office and Trial Attorney Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
South Dakota Federal Prosecutor Honored with Top American Bar Association Award for Young LawyersRead the Press Release
SIOUX FALLS, SD – United States Attorney Ron Parsons is pleased to announce that Tamara Nash, Special Assistant U.S. Attorney in the Sioux Falls Office, has just been named as one of the American Bar Association’s Top 40 young lawyers as recognized by the ABA On The Rise Award.
The On The Rise Award program provides national recognition for ABA young lawyer members who exemplify a broad range of high achievement, innovation, vision, leadership, and legal and community service.
“Tamara Nash’s strength of character and dedication to the rule of law bring honor to the Department of Justice,” said U.S. Attorney Parsons.
Tamara attended Wayne State College (Wayne, Nebraska), where she graduated magna cum laude in 2009. Immediately following college Tamara perused her life-long dream of becoming an attorney and attended the University of South Dakota School of Law, graduating with honors in 2013.
Upon completing her education, Tamara clerked for one year with the Second Judicial Circuit in Sioux Falls. While clerking, Tamara had a diverse experience in the law and had the opportunity to be mentored by several members of the judiciary.
Following clerking, Tamara achieved her career goal of becoming a prosecutor when she was hired in 2014 to serve as Deputy State’s Attorney for Union County, South Dakota. In that capacity, Tamara prosecuted misdemeanor and juvenile offenses in rural South Dakota.
In spring 2016, Tamara transitioned into her current position as a Special Assistant United States Attorney for the State of South Dakota. She represents both the federal and state arms of prosecution. Tamara works with both the Attorney General’s Office as well as the United States Attorney Office to prosecute firearm and high intensity drug cases.
Tamara maintains her commitment to public service by remaining active in the legal community. In the South Dakota State Bar, Tamara serves as President of the South Dakota State Bar Young Lawyers Section. She also serves on the State Bar Law School Committee and Committee for Diversity and Inclusion. Tamara also is active within the American Bar Association Young Lawyers Division. This year, Tamara serves as the Chair of the Minorities in the Profession Committee and a Liaison to the Women in the Profession Committee.
Six Sentenced to Federal Prison in Deadly Fentanyl Distribution ConspiracyRead the Press Release
NASHVILLE, Tenn. – July 2, 2019 – Six individuals have been sentenced for their role in a fentanyl distribution conspiracy which caused a massive number of overdoses and resulted in at least one death, announced U.S. Attorney Don Cochran for the Middle District of Tennessee. The July 2016 episode also left more than 20 persons hospitalized in the Murfreesboro, Tennessee area.
Joedon Bradley, 31, of Nashville, Tennessee, was sentenced yesterday to 30 years in prison and Jonathan Barrett, 31, of Murfreesboro, Tennessee, was sentenced to 23 years in prison. Johnny Williams, 33, also of Murfreesboro was sentenced in December 2018 to 20 years in prison. A federal jury convicted the trio in March 2018, after an eight-day trial.
Also sentenced yesterday were Eric Falkowski, 37, of Kissimmee, Florida, 266 months in prison; and Davi Valles, Jr., 26 of Nashville, Tennessee, seven years in prison. Falkowski and Valles pleaded guilty in 2017.
Sentenced today was LaKrista Knowles, 27, of Nashville, Tennessee, who pleaded guilty in May 2017, 100 months in prison.
The remaining defendants, Preston Davis, 25, of Madison, Tennessee, and Jennifer Dogonski, 35, of Farmington, Michigan, formerly of Murfreesboro, previously pleaded guilty and will be sentenced in September.
During the course of sentencings, U.S. District Judge Jack Zouhary, sitting by special designation, said that this was “one of the saddest cases” he had seen in his time on the bench and “it was as if [the defendants were] putting a gun to someone’s head.”
This investigation began in July 2016, when law enforcement and medical personnel in the Murfreesboro, Tennessee area were overwhelmed by a series of overdoses caused by pills that appeared to be prescription Percocet pills. The pills were counterfeit and contained fentanyl, alprazolam, and acetaminophen, and had been produced by Joedon Bradley and Eric Falkowksi.
According to testimony at trial, in May 2016, Eric Falkowski moved his illicit pill operation to Madison, Tennessee, after law enforcement conducted a search of his home in Florida and seized his pill presses. Following the seizure, Falkowski obtained more fentanyl through the internet from China and purchased a new pill press through Amazon.com.
Beginning on July 4, 2016, Joedon Bradley and Eric Falkowski mixed together a combination of inert pill binder, alprazolam (“Xanax”), acetaminophen (sold as Tylenol), and fentanyl. Over the course of approximately 24 hours, Joedon Bradley helped produce thousands of pills, using a pill mold that imprinted “A333” onto the finished product: a white, oblong pill that was almost identical to a prescription A333 Percocet pill.
On July 5, 2016, Johnny Williams obtained approximately 300 pills through the chain of distribution. Williams arranged to sell 150 of those pills for $1,050, to Jonathan Barrett through Jennifer Dogonski, a woman who acted as a broker.
During the period of July 5-6, 2016, Jonathan Barrett, Johnny Williams and Joedon Bradley all distributed counterfeit Percocet pills containing fentanyl, with the markings “A333,” that were produced by Falkowski and Bradley. On July 6, 2016, Barrett learned that some individuals who had purchased the counterfeit pills had overdosed, and that one had possibly died, but he continued to distribute the counterfeit pills.
Law enforcement later searched a home in Madison, Tennessee, pursuant to a federal search warrant, and found, among other things, the pill press, multiple molds used for embedding text onto pills, including a mold for “A333,” a pill grinder, fentanyl, alprazolam and other drug manufacturing equipment. Testing later confirmed that the mold found at the house was the same mold used to make some of the pills seized from overdose victims during the investigation.
This case was investigated by the Drug Enforcement Administration; the Tennessee Bureau of Investigation; the Murfreesboro Police Department; the Rutherford County Sherriff’s Office; and the Food and Drug Administration. The case was prosecuted by Assistant U.S. Attorneys Amanda J. Klopf and Brent A. Hannafan.
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Six Plead Guilty to Defrauding the United StatesRead the Press Release
Abingdon, VIRGINIA – Two employees of Kennedy Industrial Electronics, and their wives, have pleaded guilty to a payroll tax scheme that dates back at least 15 years and with defrauding the United States out of more than $907,000 of disability benefits, in addition to $148,000 in employment taxes, United States Attorney Thomas T. Cullen announced today. An additional employee was indicted by a federal grand jury on June 25, 2019, on similar charges.
Yesterday in U.S. District Court in Abingdon, Harold Kennedy, 64, and Hollie Kennedy, 67, both of Lebanon, Va., the owners of Kennedy Industrial Electronics, Inc., pleaded guilty to one count of conspiracy to defraud the United States and one count of failing to pay over and collect employment taxes.
Last week, Danny M. Hill, 70, of Lebanon, Va., pleaded guilty to one count of conspiracy to defraud the United States. Geneva Hill, 64, of Lebanon, Va., pleaded guilty to one count of causing to be made a false representation concerning the requirements of the Social Security Act. In addition, last week Gerald Lee Stevens, 45, of Lebanon, Va., pleaded guilty to one count of conspiracy to defraud the United States. Teena Charlene Stevens, 47, of Lebanon, Va., pleaded guilty to one count of causing to be made a false representation concerning the requirements of the Social Security Act. Ricky Allen Matney, 58, of Honaker, Va., was indicted on one count of conspiracy to defraud the United States and two counts of providing false information to the Social Security Administration.
“Disability, payroll, and other types of employment fraud are serious federal crimes and ones that, collectively, put a significant burden on vital government programs,” U.S. Attorney Cullen stated today. “As this case indicates, the Department of Justice will vigorously investigate and prosecute these types of workplace-fraud schemes and hold those who profit from illegal activities accountable.”
According to documents filed with the court, between 2001 and 2015 the defendants conspired to defraud the United States through a scheme in which Harold and Hollie Kennedy, the owners of Kennedy Industrial Electronics, failed to report approximately $148,000 in employment taxes. Those taxes were owed through hours worked by employees Danny Hill, Gerald Stevens, and Ricky Matney.
However, Danny Hill, Gerald Stevens, and Ricky Matney were each receiving disability benefits from the Social Security Administration and therefore unable to earn additional income without reporting. As a result, the conspirators issued checks to their spouses, Geneva Hill and Teena Stevens, and others.
Defendants Danny Hill, Gerald Stevens, Ricky Matney, Harold Kennedy, and Hollie Kennedy each face a prison sentence of up to five years on the conspiracy charge.
The investigation of the case was conducted by the Internal Revenue Service (Criminal Investigations), the Social Security Administration Office of the Inspector General, and the Russell County Sheriff’s Office. Assistant United States Attorney Lena Busscher is prosecuting the case for the United States.
Sioux City Man to Federal Prison for Meth and Gun ConvictionsRead the Press Release
A man who conspired to distribute methamphetamine and possessed guns was sentenced June 28, 2019, to 19 years in federal prison.
Travis Wayne Mattson, age 35, from Sioux City, Iowa, received the prison term after a November 26, 2018, guilty plea to conspiracy to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime.
At the guilty plea, Mattson admitted his involvement in a conspiracy that from January, 2017, through approximately May 11, 2018, distributed nearly 10 pounds of methamphetamine mixture in the Sioux City, Iowa area. Mattson kept his methamphetamine and drug proceeds in safes inside his home. Evidence also showed that on one occasion Mattson fired multiple rounds at a drug customer’s residence. During a search warrant of Mattson’s residence, law enforcement located methamphetamine, drug paraphernalia, a digital scale, 9mm rounds of ammunition, a bullet proof vest, and two guns. Evidence at the sentencing further showed that Mattson installed metal and wood barricades to fortify his residence as well as security cameras to monitor entrances to the residence.
Mattson was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Mattson was sentenced to 228 months’ imprisonment. He must also serve a 4-year term of supervised release after the prison term. There is no parole in the federal system. Mattson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Mikala Steenholdt and investigated by the Iowa Division of Narcotics Enforcement, Iowa Department of Criminalistics Investigation, Spencer Police Department, Clay County Sheriff’s Office, Iowa Great Lakes Drug Task Force, and Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-4043. Follow us on Twitter @USAO_NDIA.
Scranton Mayor Pleads Guilty to Corruption ChargesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Scranton Mayor William L. Courtright, age 61, of Scranton, Pennsylvania, pleaded guilty today to a criminal information charging him with three felony public corruption offenses. The guilty pleas were entered before Chief United States District Court Judge Christopher C. Conner in Williamsport where Judge Conner was presiding over a trial in an unrelated matter. Before entering his guilty pleas, Courtright resigned from his position as Mayor of Scranton.
According to United States Attorney David J. Freed, the criminal information charges Courtright with engaging in a multi-year conspiracy with unidentified individuals to take bribes from vendors who did business with the City. The information also alleges that other objectives of the conspiracy were to commit the offenses of attempted extortion under color of official right and extortion through use of fear of economic harm.
Courtright’s corrupt activities came to light during a multi-year undercover investigation headed by the FBI. The undercover investigation revealed that the former mayor accepted cash payments from vendors doing business with the city in a pay-to-play scheme.
“In this County, in this Commonwealth, in this Country – our elected officials work for us,” said U.S. Attorney Freed. “Not the other way around. Using public office for personal financial gain is a crime, plain and simple. All citizens, not just those of us in law enforcement, should demand that our public officials scrupulously follow the law. And when they do not, no matter how difficult the investigations may be, or how long they may take, the United States Department of Justice and our law enforcement partners will hold them to account. I want to commend the painstaking work of our partners at the FBI who have never wavered in their commitment to the citizens of this district. We are also grateful for the valuable assistance of IRS-Criminal Investigations and the Pennsylvania State Police. We will not rest in the fight against corruption.”
“Bill Courtright used the city of Scranton,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “He traded on his office in exchange for money and other valuable favors. He wielded his official powers for his own benefit, when he should’ve been focused on that of his community. The FBI will never stop seeking to bring to justice corrupt public officials who so badly betray the public trust. To that end, we and our partners at the Pennsylvania State Police and the IRS have launched a task force specifically to take on public corruption in the northeast Pennsylvania region. We’re working on behalf of the people, who expect — and deserve — honest services from all their elected officials.”
The FBI was assisted during the investigation by the Pennsylvania State Police and the Internal Revenue Service Criminal Investigations. Assistant United States Attorneys Michael Consiglio, Michelle Olshefski and William Houser are prosecuting the case.
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 35 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Santa Fe Springs Gang Member Pleads Guilty to Racketeering Charges and Admits 2016 Murder of Rival Gang MemberRead the Press Release
LOS ANGELES – A member of a street gang that operates in Santa Fe Springs and Whittier pleaded guilty today to federal criminal charges, including ones stemming from the April 2016 murder of a rival gangster outside a San Gabriel Valley restaurant.
Leonardo Antolin, 25, of Whittier, pleaded guilty to five felonies before United States District Judge Virginia A. Phillips, who scheduled a September 23 sentencing hearing. In a plea agreement filed in this case, Antolin has agreed to serve a sentence of 33 to 40 years in federal prison.
Antolin – a member of the Mexican Mafia-affiliated Canta Ranas gang – admitted in the plea agreement that on April 19, 2016, he executed a Mexican Mafia member whom prosecutors allege wanted to expand his influence and challenge the authority of other Mexican Mafia members in the San Gabriel Valley. During the incident at a restaurant in the San Gabriel Valley community of Bassett, the Mexican Mafia member was fatally shot, his bodyguard was severely wounded, and an innocent restaurant patron was shot six times in the abdomen, back, buttocks and legs. Antolin also admitted to aiding in the trafficking of methamphetamine on behalf of Canta Ranas.
Antolin pleaded guilty to conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act, conspiracy to commit murder in aid of racketeering, assault with a dangerous weapon in aid of racketeering, conspiracy to traffic in controlled substances, and discharging a firearm during a violent crime.
This guilty plea arose from a 2016 federal grand jury indictment charging 51 defendants that was the result of Operation Frog Legs. Prosecutors have secured more than 20 convictions so far in this matter. A trial for Jose Loza, 40, a Mexican Mafia member and Canta Ranas shot caller, and Ronald Sotello, 43, is scheduled to begin on July 30.
Operation Frog Legs is the result of an investigation by the Southern California Drug Task Force, which is led by the Drug Enforcement Administration as part of the High Intensity Drug Trafficking Area (HIDTA) initiative. The Task Force members that participated in Operation Frog Legs were U.S. Immigration and Customs Enforcement’s Homeland Security Investigation, the Whittier Police Department, the Los Angeles County Sheriff’s Department, IRS Criminal Investigation, and the California Department of Corrections and Rehabilitation, Office of Correctional Safety, Special Service Unit.
This matter is being prosecuted by Assistant United States Attorney Carol Alexis Chen, Chief of the International Narcotics, Money Laundering, and Racketeering Section, and Assistant United States Attorneys Victoria A. Degtyareva and Kathy Yu, also of the International Narcotics, Money Laundering, and Racketeering Section.
Rochester Man Going to Prison for 15 Years for Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. -- U.S. Attorney James P. Kennedy, Jr. announced today that Scott Wilbert, 43, of Rochester, NY, who was convicted of possession of child pornography, was sentenced to serve 180 months in prison by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Melissa Marangola, who handled the case, stated that the FBI Child Exploitation Task Force identified Wilbert sending child pornography from his computer web camera to another user of an online chat site. As a result, the New York State Police began to investigate the defendant, who was identified as a registered sex offender from a prior conviction for sexual abuse of a child.
In February 2016, officers executed a search warrant at Wilbert’s residence on Garson Avenue in Rochester and seized a laptop computer and SD cards containing thousands of images and videos of child pornography. A forensic examination of the computer and SD cards recovered sexually explicit photographs of prepubescent children, some as young as toddlers.
The sentencing is the culmination of an investigation by the New York State Police, under the direction of Major Eric Laughton, and Special Agents of Federal Bureau of Investigation’s Child Exploitation Task Force, under the direction of Special Agent-in- Charge Gary Loeffert.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Ringleader Who Headed Cocaine Conspiracy Between Puerto Rico and Buffalo Pleads GuiltyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today Cesar Rivera-Figueroa, aka Fat Boy, 28, of San Juan, Puerto Rico, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to engaging in a continuing criminal enterprise. The charge carries mandatory minimum penalty of 20 years in prison, a maximum of life and a $2,000,000 fine.
Assistant U.S. Attorneys Laura Higgins and Wei Xiang, who are handling the case, stated that the defendant was the leader of a drug trafficking organization who coordinated the transport of cocaine from multiple suppliers in Puerto Rico to the Buffalo area. Rivera-Figueroa then directed the distribution of cocaine, which included setting the price of cocaine, directing the collection of debt and the storage of proceeds, and instructing how payment was remitted back to Puerto Rico. The defendant also directed co-defendants to make trips to New York City to retrieve quantities of cocaine to bring back to Buffalo for distribution, and to make payment for the cocaine.
Throughout the course of the conspiracy, several packages containing kilogram-quantities of cocaine were sent from Puerto Rico and were intercepted by the United States Postal Inspection Service.
Cesar Rivera-Figueroa was arrested in September 2017 along with 11 others including: Jenhsen Rodriguez; Daniel Navarro; Virgen Perez-Jurado; Josue Cardona-Soto; Devincio K.D. James; Omar Vazquez-Baez; Luis Andino; Joseph Jones; Quinton Jones; Sucley Romero; and Tori Rockmore. Rivera-Figueroa is the fourth defendant to be convicted. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by the Federal Bureau of Investigation, Safe Streets Task Force, under the direction of Special Agent-in-Charge Gary Loeffert; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in Charge John B. Devito, New York Field Division; the United States Postal Inspection Service, Boston Division, under the direction of Inspector-in-Charge Joseph W. Cronin; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the New York State Police, under the direction of Major Edward Kennedy; and the Erie County Sheriff’s office, under the direction of Sheriff Timothy Howard.
Sentencing is scheduled for November 8, 2019, before Judge Vilardo.
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Registered Nurse Indicted on Drug Diversion ChargeRead the Press Release
BOSTON – A Haverhill nurse was charged in federal court in Boston with tampering with patients’ morphine.
Brianna Duffy, 32, was indicted on one count of tampering with a consumer product and one count of acquiring a controlled substance by fraud or deception. Duffy will appear in federal court in Boston this afternoon.
As alleged in the indictment, on March 17 and 18, 2019, while working as a registered nurse at Hunt Nursing and Rehab in Danvers, Duffy tampered with morphine sulfate prescribed to an 89-year old hospice patient. In an attempt to avoid detection, she replaced the extracted medication with another liquid, diluting the morphine to just 26% of the prescribed concentration. The hospice patient received the diluted morphine and suffered unnecessary pain.
It is further alleged that from December 2016 until July 2017 while working as a registered nurse at Maplewood Care and Rehabilitation Center in Amesbury, Duffy diverted morphine from two bottles that were prescribed to a 68-year old patient. Duffy subsequently diluted the remaining morphine with another liquid, leaving only 1.2%-2.5% of the declared concentration of morphine. Duffy tested positive for morphine on July 18, 2017.
The charges provide for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Jeffrey Ebersole, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General, Office on Investigation; and Commissioner Monica Bharel, MD, MPH, of the Massachusetts Department of Public Health made the announcement today. Assistant U.S. Attorney Elysa Wan of Lelling’s Health Care Fraud Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Raleigh Man Sentenced to 151 Months for Illegally Receiving Child PornographyRead 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 Louise W. Flanagan sentenced WILLIAM TREVOR SOLOFF, 52, of Raleigh to 151 months’ imprisonment, followed by 10 years of supervised released.
On January 24, 2019, SOLOFF, pursuant to a Waiver of Indictment and with a written Plea Agreement, pled guilty to a Criminal Information which charged him with Receipt of Child Pornography that concluded on May 19, 2017.
Between March and May of 2017, the Apex North Carolina Police Department received four separate cyber tips from the National Center for Missing and Exploited Children (NCMEC) indicating that the user of an IP address, later identified as assigned to SOLOFF, uploaded one or more images of child pornography to chatrooms on the website Chatstep and to SOLOFF’S Yahoo! Messenger account.
Investigators determined SOLOFF was residing on Abruzzo Drive in Apex with his wife and stepdaughter. On June 30, 2017, a search warrant was executed at SOLOFF’S residence during which SOLOFF made an unprotected statement wherein he admitted to visiting the website Chatstep and acknowledged observing images of child pornography in chatrooms that he visited. Investigators informed SOLOFF that the logs from Chatstep reflected that the usernames “Trevor” and “TrevorinNC,” which originated from SOLOFF’S IP address, had been recorded uploading images of child pornography to Chatstep chatrooms on more than one occasion. SOLOFF stated it was possible he could have taken an image that he saw during a conversation and shared it. SOLOFF also admitted to having a Yahoo account; however, he indicated he did not remember if he sent those images.
Investigators conducted a forensic examination of SOLOFF’S computer, various hard drives, and other forms of digital media seized from SOLOFF’S residence and discovered a total of 1,910 images and 96 videos (96 videos x 75 images = 7,200 images) depicting child pornography. The longest video that was discovered was 38 minutes and 16 seconds in duration. Of the images and videos, 255 depicted the sexual abuse of infants or toddlers, 317 portrayed sadistic or masochistic conduct or other depictions of violence, and 13 depicted bestiality.
Mr. Higdon commented: “The uploading, downloading, sharing, transmission, sending, or any use of images or videos depicting child pornography victimizes the vulnerable victims seen in those images and further generates more demand for such images, which further victimizes innocent children. We are committed to breaking this awful and degrading cycle and to punishing the criminals - like William Soloff - who are involved. We are grateful for the serious way in which the Court handled this matter and for the sentence which the court imposed for its horrendous crime.”
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov
The investigation of this case was conducted by the Federal Bureau of Investigation (FBI) and the Apex Police Department. Assistant United States Attorney Daniel W. Smith prosecuted the case for the government.
Project Safe Neighborhoods Investigation Nets Twelve Arrests in WoonsocketRead the Press Release
PROVIDENCE, RI – A four-month FBI Safe Streets Task Force Project Safe Neighborhoods investigation into the trafficking of fentanyl, cocaine, and crack cocaine on the streets of Woonsocket culminated today with the dismantling of at least three alleged drug trafficking conspiracies.
To date, twelve individuals have been charged, and law enforcement has seized four firearms, significant quantities of fentanyl pills, crack cocaine, cocaine, marijuana, and approximately $12,000 in cash.
Teams of federal, state, and local law enforcement agents and officers fanned out early this morning and arrested six individuals on federal criminal complaints, three individuals on state charges, and executed four federal court-authorized search warrants. Additionally, federal charges were unsealed today brought against an individual currently detained at the ACI.
Prior to today, members of the Safe Street Task Force arrested two individuals charged by way of federal criminal complaints and executed one federal court-authorized search warrant.
Leading up to today’s arrests, law enforcement made nearly two dozen undercover drug purchases and seized 1,964 fentanyl pills (332.9 grams),116.2 grams of powder fentanyl, 296 grams of marijuana, 244 grams of crack cocaine, 20 grams of powder cocaine, 3 firearms, and $1,800 U.S. currency.
Today, law enforcement seized a loaded 9 millimeter handgun, and approximately 144 grams of crack cocaine and 1,094 grams of cocaine, and $10,200 in cash.
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.
United States Attorney Aaron L. Weisman said, “These twelve arrests in Woonsocket should be looked upon as a warning to others: Be it in Woonsocket or in any community in Rhode Island where drug traffickers are peddling their poison and impacting the safety and quality of life in our neighborhoods, federal, state, and local law enforcement will team up and bring to bear the full-force of the Department of Justice’s Project Safe Neighborhoods initiative.”
“Today’s arrests exemplify the epitome of law enforcement agencies working together to target and dismantle drug trafficking organizations that threaten the safety and stability of our neighborhoods,” commented Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta. “The residents of Woonsocket have been dealing with drugs and violence for far too long and the FBI Safe Streets Task Force will continue to use all of the tools we have at our disposal to make sure the people who are peddling these poisons on our streets—many of whom are repeat, violent offenders—are held accountable.”
Woonsocket Police Chief Thomas Oates added, “Working with our federal partners allows the Woonsocket Police Department to bring added resources to Woonsocket to combat illegal drug trafficking which is so harmful to our community. We will continue to use any and all resources available to us to continue to try and improve the quality of life and safety of the residents of the City of Woonsocket.”
Charged by way of federal criminal complaint in U.S. District Court:
David Bradford, 34
Conspiracy to distribute 28 grams or more of cocaine base
Conspiracy to distribute 40 grams or more of fentanyl
Possession with intent to deliver 28 grams or more of cocaine base
David Kennedy, 29
Conspiracy to distribute 28 grams or more of cocaine base
Possession with intent to distribute cocaine base
Jason Simpson, 34
Conspiracy to distribute 28 grams or more of cocaine base
Possession with intent to distribute cocaine base
Christopher Nieves, 34 (detained at the ACI)
Conspiracy to distribute 28 grams or more of cocaine base
Possession with intent to distribute cocaine base
James Ruth, 31
Conspiracy to distribute 28 grams or more of cocaine base
Possession with intent to distribute cocaine base
Gilbert Delestre, 29
Possession with intent to distribute 28 grams or more of cocaine base
Possession with intent to distribute cocaine
Conspiracy to distribute 28 grams or more of cocaine base
Sean Breton, 27
Possession with intent to distribute cocaine base
John Switzer, 37, arrested May 1, 2019
Conspiracy to distribute 400 grams or more of fentanyl
Possession with intent to deliver and distribution of 400 grams or more of fentanyl
Charged in Rhode Island State Court:
Victoria Kinnecom, 24
13 counts of conspiracy to manufacture with intent to deliver a Schedule 1 substance
Trevis Woods, 30
4 counts of possession with intent to distribute a Schedule 1substance
9 counts of conspiracy
Christopher Grondin, 29
7 counts of conspiracy
5 counts of possession with intent to distribute a Schedule 1 substance
Damien Drolet, 32, arrested April 3, 2019 (detained at the ACI)
Possession with intent to distribute a controlled substance
A criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty in court.
Cases charged in U.S. District Court are being prosecuted by Assistant U.S. Attorney Sandra R. Hebert.
United States Attorney Aaron L. Weisman, Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta, and Woonsocket Police Chief Thomas Oates thank the Central Falls, Cranston, Pawtucket, Warwick and Providence Police Departments, Rhode Island State Police, Rhode Island National Guard, and Adult Correctional Institutions for their assistance.
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Pittsburgh Woman Sentenced for Mail TheftRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to two years’ probation and 100 hours’ community service on her conviction of mail theft, United States Attorney Scott W. Brady announced today.
United States District Judge Cathy Bissoon imposed the sentence on Ekeyma Harris, 32.
According to information presented to the court, on November 17, 2018, a woman living in Longmont, Colorado, reported to her local police department that she believed she had been victimized by unknown individuals living in Jamaica who telephoned her and reported that she was a Publishing Clearing House winner. In order to collect her winnings, the callers convinced her to send two U.S. Postal Express packages, one to "David Miller" containing $810 and a second to "James Holliday" containing $6,800 to an address on Imogene Road, Pittsburgh, Pennsylvania 15217. Following her report, the Postal Service intercepted the package and delivered it on November 21, 2018, under the direction of law enforcement. Harris opened the door and signed a fictitious name on a Postal Service Domestic Return Receipt, in order to take receipt of the package and its contents, knowing that no individual by the name of James Holliday resided at that address.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
The United States Postal Inspection Service conducted the investigation that led to the successful prosecution of Harris.
Omaha Woman Sentenced for Preparing a False Tax ReturnRead the Press Release
United States Attorney Joe Kelly announced that Opal Harris, age 38, of Omaha, Nebraska, was sentenced Monday in federal court for willfully preparing a false tax return. The Honorable Robert F. Rossiter, Jr. sentenced Harris to five years of probation and ordered her to pay $31,404 in restitution.
An investigation conducted by IRS Criminal Investigations determined that Harris worked as an income tax preparer at Wise Tax Solutions, a business owned and operated by Harris and her husband. Investigators learned that Wise Tax Solutions customer tax returns prepared by Harris represented, through the inclusion of a Schedule C, income amounts that were false. As a result of the falsified individual income tax returns, Wise Tax Solutions’ customers qualified for earned income tax credit to which they were not entitled. Based upon these tax credits, customers received income tax refunds to which they were not entitled.
Between 2012 and 2015, Harris prepared and filed with the IRS federal income tax returns that were false and fraudulent, resulting in a loss to the IRS totaling $31,404.
“Tax practitioners and return preparers have a duty to their clients to prepare tax returns that comply with the law and are complete and accurate,” said Karl Stiften, Special Agent in Charge of IRS Criminal Investigation.
This case was investigated by IRS Criminal Investigations.
Ohio County woman admits to methamphetamine chargeRead the Press Release
WHEELING, WEST VIRGINIA –Tiffany Markle, of Wheeling, West Virginia, has admitted to a drug charge, United States Attorney Bill Powell announced.
Markle, age 33, pled guilty to one count of “Conspiracy to Distribute and to Possess with the Intent to Distribute Methamphetamine.” Markle admitted to distributing methamphetamine in Marshall and Ohio Counties from July 2018 to February 2019. The government is also seeking the forfeiture of the Markles’ residence at 36 Fernwood Avenue in Wheeling.
Markle faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Robert H. McWilliams, Jr., is prosecuting the case on behalf of the government. The Marshall County Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Newark, NJ Man Sentenced to Two ½ Years for Lying to Purchase Firearms in PennsylvaniaRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Kevin Elcock, 33, of Newark, NJ was sentenced to 30 months’ incarceration by U.S. District Court Judge Jeffrey Schmehl.
The defendant was sentenced after pleading guilty to seven counts of making false statements to federally licensed firearm dealers in Northampton and Bucks Counties. From December 27, 2016 through July 31, 2018, on seven different occasions, Elcock lied about his state of residence – claiming that he lived in Pennsylvania when he actually lived in New Jersey. Those lies were a federal crime. The defendant lied in this manner because he claimed it was “easier” to purchase firearms in Pennsylvania than in New Jersey. The defendant then sold many of the guns that he purchased to people with criminal histories who would otherwise not have been able to purchase weapons legally.
“Federal laws for purchasing and owning firearms exist to protect public safety, and this defendant purposefully and arrogantly flouted those laws,” said U.S. Attorney McSwain. “Reducing violent crime by keeping illegal guns off of our streets is a top priority for the Department of Justice and my Office.”
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.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and is being prosecuted by Assistant United States Attorney Priya T. De Souza.
New Britain Man Sentenced to Prison for Possession of Loaded HandgunRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JOHN ANDERSON, 38, of New Britain, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 46 months of imprisonment, followed by three years of supervised release, for one possession of a firearm and ammunition by a convicted felon.
According to court documents and statements made in court, on October 11, 2018, Hartford Police officers responded to a ShotSpotter detection system alert of gunfire in the vicinity of Vernon Street. At the scene, officers observed Anderson and another man pacing back and forth before entering a vehicle. When officers approached the vehicle, they saw live ammunition in the center console cup holder. A subsequent search of the car revealed a loaded Ruger Model EC9S 9mm semi-automatic handgun with an obliterated serial number underneath the seat Anderson had occupied. Anderson later admitted to ownership of the handgun and firing it in the air.
Anderson’s criminal history includes state felony convictions for burglary in the third degree and assault in the second degree.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Anderson has been detained since his arrest on October 11. He pleaded guilty to the offense on April 4, 2019.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hartford Police Department. The case was prosecuted by Assistant U.S. Attorney Nathaniel J. Gentile.
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.
Natrona Heights Man Charged with Possessing Child PornographyRead the Press Release
PITTSBURGH - A resident of Natrona Heights, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of possession of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
The one-count indictment, returned on June 26 and unsealed today, named Jack Ulrich, Jr., 41, as the sole defendant.
According to the indictment, on October 12, 2018, Ulrich, Jr., unlawfully possessed photographs and videos in computer graphics files, which depicted minors, some of whom were under the age of 12 years, engaged in sexually explicit conduct.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000.00, or both. If the defendant has a prior qualifying sex offense, the law requires a sentence that includes a term of imprisonment of not less than 10 years. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
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 individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
NYPD Police Officer Charged with Fraud and False Statement ChargesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and James P. O’Neill, Police Commissioner of the City of New York (“NYPD”), announced today the unsealing of a superseding indictment and the arrest of EDUARDO RODRIGUEZ, a police officer with the NYPD, for conspiring to commit bank and loan fraud, as well as making false statements to federal law enforcement officers. RODRIGUEZ was arrested this morning and will be presented this afternoon before U.S. Magistrate Judge Barbara C. Moses. The case is assigned to U.S. District Judge William H. Pauley III.
U.S. Attorney Geoffrey S. Berman stated: “As alleged, Eduardo Rodriguez, an officer with the New York Police Department, misled a financial institution about his intentions for a loan. Instead of using the loan proceeds for a car, he allegedly used the money for other purposes. If anything, law enforcement officers should be held to a higher standard than the general public. At a minimum, they should be expected to obey the law.”
NYPD Commissioner James P. O’Neill said: “There is no place in the NYPD for criminal or unethical behavior. NYPD officers swear an oath to uphold the law and protect the public. If an officer fails to uphold this oath, they must be held accountable.”
According to the allegations in the Superseding Indictment[1]:
In June 2017, RODRIGUEZ agreed with at least two other individuals (identified in the Superseding Indictment as CC-1 and CC-2) to submit an application to a lending institution (“Lender-1”) for an automobile loan for the express – but false – purpose of financing RODRIGUEZ’s purchase of a vehicle from a real automobile dealer that RODRIGUEZ did not own and never intended to own. In connection with that application, Lender-1 issued to RODRIGUEZ a loan (“Loan-1”) and, specifically, a check representing the proceeds of that loan. RODRIGUEZ, in turn, endorsed that check and provided it to CC-1 and CC-2 with the understanding they would deposit and withdraw money against that check for RODRIGUEZ’s enrichment.
In March 2018, USPIS inspectors interviewed RODRIGUEZ, and he falsely denied any involvement in applying for, or any knowledge about, Loan-1.
In April 2018, RODRIGUEZ was again interviewed by federal law enforcement officers. Although RODRIGUEZ admitted during that interview that he did, in fact, endorse the check issued in connection with Loan-1, RODRIGUEZ claimed to have endorsed the check and provided it to CC-1 and CC-2 for the purpose of CC-1 and/or CC-2 returning the check to Lender-1. That statement was false: as noted, RODRIGUEZ endorsed the check not for the purpose of returning it to Lender-1 but to obtain proceeds from Loan-1. Similarly, although RODRIGUEZ admitted during the April 2018 interview that he did, in fact, work with CC-1 to obtain Loan-1, RODRIGUEZ denied any previous relationship with CC-1, stating in substance and in part that CC-1 had contacted RODRIGUEZ without any prior prompting by RODRIGUEZ. That statement was false: RODRIGUEZ had a prior business relationship with CC-1 dating back to at least December 2015 and had been in substantial telephone contact long before when he claimed he first met CC-1.
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RODRIGUEZ, 41, of Goshen, New York, is charged with one count of conspiracy to commit bank fraud, which carries a maximum sentence of 30 years in prison; one count of conspiracy to commit loan fraud, which carries a maximum sentence of five years in prison; and one count of making false statements, which carries a maximum sentence of five years in prison.
The statutory maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the U.S. Postal Inspection Service and the Internal Affairs Bureau of the NYPD.
The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Daniel H. Wolf is in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment and the description of the Superseding Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation
Montana Man Pleads Guilty in Connection with $43 Million Fraud SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that TODD CAPSER pled guilty this morning before U.S. District Judge J. Paul Oetken to one count of wire fraud, in connection with a $43 million fraud scheme.
U.S. Attorney Geoffrey S. Berman said: “Todd Capser purported to be a legitimate businessman and convinced a Canadian financial institution to lend him more than $43 million. But the loan was based on a mountain of false information from Capser. Then, to further his fraud, Capser attempted to induce other financial institutions to loan him additional money. Today, Capser admitted his guilt and now faces significant time in prison for his crimes.”
According to the Indictment and other documents filed in the case, as well as statements made during the plea proceedings:
From January 2016 through April 2019, CAPSER perpetrated a scheme to defraud a financial institution based in Toronto, Canada (“Financial Institution-1”), by inducing it, through false and misleading representations and omissions, to loan approximately $43.3 million to an entity incorporated by CAPSER (“Capser Entity-1”), for the purchase of two chemical and oil tankers (the “Tankers”).
After obtaining the loan from Financial Institution-1 and purchasing the Tankers, CAPSER attempted to induce at least nine other Financial Institutions to loan between $46 and $52 million each to refinance the original loan.
CAPSER fraudulently induced Financial Institution-1 to make the $43 million loan, and attempted to induce the other Financial Institutions to make the $46 million to $52 million refinancing loans, through, among other things: (a) fraudulently obtaining documents from a company that provides wealth management services to private clients (“Trust Company‑1”); (b) altering the Trust Company-1 documents, and forging additional Trust Company-1 documents, to make it appear as though CC-1 held an investment portfolio at Trust Company-1 composed of securities worth tens of millions of dollars, which could serve as collateral for the loans; (c) sending the altered and forged Trust Company-1 documents to certain of the Financial Institutions; (d) creating fake email accounts for employees of Trust Company-1, and sending emails from those accounts to certain of the Financial Institutions to make it appear as though CC-1 held an investment portfolio at Trust Company-1 composed of securities worth tens of millions of dollars; and (e) making false and misleading representations and omissions about the financial assets of CAPSER and his family to certain of the Financial Institutions, including falsely claiming to own a cattle company and ranch.
In addition, in an effort to engender sympathy, deflect questions, and explain suspicious behavior, CAPSER falsely represented to certain of the Financial Institutions that his daughter was terminally ill with cancer.
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CAPSER, 47, of Billings, Montana, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. CAPSER is scheduled to be sentenced by Judge Oetken on November 8, 2019.
Mr. Berman praised the outstanding investigative work of the Federal Bureau of Investigation (“FBI”). He also thanked the Billings Resident Agency of the FBI’s Salt Lake City Field Office and the United States Attorney’s Office for the District of Montana for their assistance with the investigation.
The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Benjamin Woodside Schrier is in charge of the prosecution.
Middlesex County Man Sentenced for Illegally Importing Scorpions and Other WildlifeRead the Press Release
TRENTON, N.J. – A Middlesex County, New Jersey, man was sentenced today to six months home confinement and four years’ probation for illegally smuggling wildlife into New Jersey, U.S. Attorney Craig Carpenito announced.
Wlodzimie Lapkiewicz, 30, a/k/a “Wlodek Lapkiewicz,” of Metuchen, New Jersey, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with one count of smuggling wildlife. Judge Sheridan imposed the sentence today in Trenton federal court.
According to the documents filed in the case and statements made in court:
Between July 2015 and July 2018, Lapkiewicz illegally imported and exported scorpions, giant millipedes, and other invertebrate species, conduct which Lapkiewicz acknowledged is commonly referred to as “brown-boxing.” On multiple occasions, Lapkiewicz imported Emperor and Dictator Scorpions, both of which are listed in the Convention on International Trade in Endangered Species (CITES) treaty as protected species. Postal inspectors learned of Lapkiewicz’s illegal imports after live scorpions and giant millipedes escaped from an international parcel while in transit to Lapkiewicz in July 2015. The investigation revealed that Lapkiewicz participated and assisted others in intentionally mislabeling parcels of live wildlife to avoid detection. The investigation also revealed that Lapkiewicz utilized social media to arrange buyers for the scorpions, giant millipedes, and other invertebrates that he had illegally imported.
U.S. Attorney Carpenito credited special agents of the U.S. Fish and Wildlife Service, Office of Law Enforcement, under the direction of Special Agent in Charge Honora Gordon, with the investigation leading to these charges.
The government is represented by Special Assistant U.S. Attorney Shawn Barnes of the Criminal Division in Newark.
Defense counsel: David Holman Esq., Assistant Federal Public Defender, Newark
Marion County Man Sentenced to 6 Years in Federal Prison for Selling a Firearm to a Known FelonRead the Press Release
Florence, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Christopher Lee Scott, age 37, of Marion County, was sentenced to six years in federal prison after pleading guilty to selling a firearm to a known convicted felon.
Evidence presented in court established that on January 8, 2018, a long-time acquaintance of Scott’s, whom Scott knew to be a convicted felon, approached him about purchasing a firearm. Later that same day, this individual drove to Scott’s residence in Marion County, where Scott showed him a .357 revolver and a 9mm pistol for sale. Scott then agreed to sell the individual the 9mm pistol for $400. After completing the transaction, Scott told the individual that he also had other guns to sell, including an assault rifle.
Not only does federal law prohibit selling a firearm to a known convicted felon, but Scott’s own felon status prohibited him from possessing a firearm in the first place. Prior to selling the firearm in January 2018, Scott had two convictions for possession with intent to distribute cocaine, a conviction for distribution of crack cocaine, and two convictions or possession with intent to distribute marijuana.
Chief United States District Judge R. Bryan Harwell, of Florence, accepted Scott’s guilty plea and sentenced him to 72 months in federal prison followed by three years of court-ordered supervision. Scott was immediately taken into custody following his sentencing hearing. There is no parole in the federal system. Assistant United States Attorneys Christopher Taylor, Derek Shoemake, and Justin Holloway prosecuted the case.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) alongside officers with the Marion County Sheriff’s Department and the Marion County Combined Drug Unit. It was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, 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 our communities and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally-based prevention and reentry programs for lasting reductions in crime.
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Manhattan Man Sentenced to 27 Years in Prison for Murder of 17-Year-OldRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that GARY TURNER was sentenced to 27 years in prison for the April 2018 murder of 17-year-old Samuel Ozuna. TURNER was sentenced in Manhattan federal court by United States District Judge Jesse M. Furman, before whom TURNER previously pled guilty.
U.S. Attorney Geoffrey S. Berman said: “Gary Turner killed Samuel Ozuna in order to keep his membership in a crew operating in the Carver Houses in East Harlem. For this callous crime, Turner will now spend decades in prison. We thank our partners at the NYPD for their outstanding work on this case.”
According to the Indictment, other filings in Manhattan federal court, and statements made in court proceedings:
On April 24, 2018, TURNER shot and killed Samuel Ozuna in the vicinity of the George Washington Carver Houses (the “Carver Houses”) on 104th Street in East Harlem. On that night, TURNER, a member of a crew operating in the Carver Houses, was inside the lobby of a building in the Carver Houses when he learned that individuals whom he understood to be from the nearby Washington Houses were coming to the area. TURNER’s crew was engaged in a rivalry with a crew from the Washington Houses. Soon thereafter, approximately four individuals, including Mr. Ozuna, ran toward the Carver Houses building, and as they approached, TURNER fired multiple shots in their direction. TURNER continued to fire as they fled. TURNER’s gunshots struck and killed Mr. Ozuna.
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In addition to his prison term, TURNER, 25, was sentenced to five years of supervised release.
Mr. Berman praised the outstanding investigative efforts of the New York City Police Department.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Lauren B. Schorr and Jacob Warren are in charge of the prosecution.
Man Who Victimized Immigrants in Kidnapping and Extortion Scheme Sentenced to 135 MonthsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that PASCUAL RODRIGUEZ, 51, a citizen of the Dominican Republic last residing in New York, New York, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 135 months of imprisonment for his role in a kidnapping and extortion scheme.
According to court documents and statements made in court, on multiple occasions, Rodriguez approached victims after they exited buses at the Port Authority in New York. The victims included women, men and children from Central American countries who did not speak English and were seeking asylum in the U.S. Rodriguez, sometimes posing as an immigration officer, falsely told the victims that their connecting bus was unavailable and asked the victims for a phone number of a family member in the U.S. He then contacted family members and informed them that the victims could not travel by bus, and that he would arrange for the transportation of the victims in exchange for money. He then brought the victims to his co-conspirator, Lucilo Cabrera, who then drove the victims around for hours, refusing to release them until their families agreed to pay money.
Rodriguez has been detained since his arrest on January 23, 2018. On October 12, 2018, he pleaded guilty to one count of kidnapping.
Rodriguez faces immigration proceedings when he completes his sentence.
On March 9, 2018, a federal jury in Bridgeport found Cabrera, Francisco Betancourt and Carlos Antonio Hernandez guilty of offenses related to this extortion and kidnapping scheme. They await sentencing.
This investigation has been conducted by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Vanessa Richards.