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2 July 2019
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.
Louisville Metro Police Officer’s Credit Union Vice President Pleads Guilty to FraudRead the Press Release
LOUISVILLE, Ky. – The former Vice President of the Louisville Metro Police Officer’s Credit Union has been charged and pleaded guilty to a two count Information with fraud and aggravated identity theft, announced United States Attorney Russell Coleman.
“We expect our bankers to be of the highest integrity, especially those that serve the families of Louisville’s Finest,” stated U.S. Attorney Russell Coleman. “When financial professionals abandon this high standard, robust federal prosecution awaits.”
Josephine M. Crowe, 46, of Louisville, Kentucky, was charged in a criminal Information with one count of financial institution fraud and one count of aggravated identity theft as part of a scheme to defraud the Louisville Metro Police Officer’s Credit Union of over $3 million during a four year period.
According to the Information, beginning no later than January 2013, and continuing to on or about November 22, 2017, Crowe stole cash from the Credit Union’s vault and teller drawers. In order to compensate for the depletion of cash the defendant engaged in various methods to obtain cash for day-to-day operations including: instructing Credit Union employees, members, and others to withdraw cash from an ATM using either a debit card she provided or the individual’s personal debit card and return the cash to her for Credit Union operating needs; (b) obtaining credit card cash advances from members’ credit cards; (c) wire transferring funds to external accounts at various other financial institutions and then obtaining cash from the transfer; and (d) recording fictitious, unauthorized loans and using the proceeds of these loans to issue an Official Check, which she directed individuals to cash at local pawn shops or financial institutions and to return the cash proceeds to her so that she could then place it in the Credit Union’s vault and teller drawers.
As part of the scheme, Crowe created hundreds of fictitious, unauthorized loans by generating fraudulent loan documents and agreements between the Credit Union and unwitting Credit Union members in order to cover up her theft of cash from the Credit Union’s vault and teller drawers and to obtain funds owned by and under the custody and control of the Credit Union. She also created additional fictitious, unauthorized loans to generate proceeds that she used to make payments on legitimate loans that had outstanding balances at the Credit Union, without the knowledge of the either the Credit Union member in whose identity she was creating the fictitious loan, or the member for whose benefit the loan payment was being made.
On or about September 15, 2016, Crowe created a fictitious, unauthorized loan for $100,000 in the name of a member of the Credit Union (“Member 1”) without the knowledge and consent of Member 1, collateralizing the loan with a certificate of deposit owned by Member 1. She then deposited the loan proceeds, into an account held by Member 1 at the Credit Union and, approximately fifteen days later withdrew the entirety of the $100,000 loan proceeds from the account in the form of cash. Crowe used the name, social security number, and date of birth of Member 1 of the credit union, during and in relation to the fraud.
At sentencing, Crowe could receive a minimum term of imprisonment of 24 months, a maximum term of imprisonment of 32 years, a combined maximum fine of $1.25 million, followed by no more than 3 years of supervised release. The defendant could also be ordered to pay restitution to the National Credit Union Administration, as the liquidating agent for the Louisville Metro Police Officer’s Credit Union.
The case is being prosecuted by Assistant United States Attorney Stephanie Zimdahl and is being investigated by the Federal Bureau of Investigation.
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Long-Time Ridgeland Drug Dealer and Associates Sentenced to Federal PrisonRead the Press Release
Charleston, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Demetrius Dwayne Swinton, a/k/a “Million Dolla Meat,” age 31, of Ridgeland, was sentenced in federal court after pleading guilty to conspiring to possess with intent to distribute and to distribute cocaine. United States District Judge Richard M. Gergel, of Charleston, sentenced Swinton to 22 years in federal prison, to be followed by 5 years of supervised release. There is no parole in the federal system. Swinton also agreed to forfeit $500,000, two vehicles, and several pieces of jewelry.
Evidence presented in the case established that Swinton was the leader of a cocaine trafficking organization that was responsible for bringing a large volume of cocaine into South Carolina, primarily into Beaufort and Jasper Counties. Agents and prosecutors established that Swinton was receiving multiple kilograms of cocaine at a time from a source of supply in Atlanta, Georgia, and that he used a number of associates to assist in both the distribution of drugs and the collection of drug proceeds. Swinton was responsible for moving at least 74 kilograms of cocaine into those communities, and he used violence and intimidation to maintain his status as a main drug supplier to that area. During the course of the investigation, agents seized over 47 kilograms of cocaine, 782 grams of crack cocaine, 6 kilograms of marijuana, 97 grams of heroin, 10 firearms, 5 vehicles, over $50,000 worth of jewelry, and over $68,000 cash.
In addition to Swinton, three of his co-defendants have also been sentenced by Judge Gergel. Travis Wiggins, a/k/a “Trap”, age 28, of Ridgeland, was sentenced to 15 years in federal prison, to be followed by 5 years of supervised release, after pleading guilty to conspiring to possess with intent to distribute and to distribute cocaine and possession of a firearm in furtherance of a drug trafficking crime.
Ernest Fields, a/k/a “Fly”, age 39, of Hilton Head, was sentenced to 6 years in federal prison, to be followed by 4 years of supervised release, after pleading guilty to conspiring to possess with intent to distribute and to distribute cocaine.
Boston Brown, age 32, of Bluffton, was sentenced to 5 years in federal prison, to be followed by 4 years of supervised release, after pleading guilty to conspiring to possess with intent to distribute and to distribute cocaine.
“It is our hope and belief that the significant sentences handed down to Swinton and his associates send a message to those hoping to fill their void and allow these communities, which have been ravaged by drug trafficking and violence, an opportunity to heal,” said U.S. Attorney Lydon. “We appreciate the efforts of our federal, state, and local law enforcement partners in working together to hold these men accountable for such serious crimes.”
"The 14th Circuit is safer today because Swinton is in prison," added Fourteenth Circuit Solicitor Duffie Stone. "It's fortunate that we've had this tremendous partnership with the U.S. Attorney's Office in place for a number of years now. It has been invaluable in our efforts to get dangerous people like Swinton off the streets."
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division stated, "DEA and the entire law enforcement community are committed to making our society safe by removing such criminals from the streets. These notorious drug dealers distributed poison to the community and caused fear through means of violence and intimidation. The success of this investigation was due to the skillful investigative efforts of our federal, state and local law enforcement counterparts."
“Identifying and investigating drug trafficking organizations is one of Homeland Security Investigations’ major priorities to protect the public from the serious harm these criminals inflict without any regard for the violence and public health damage they cause,” said John Eisert, Acting Special Agent in Charge of Homeland Security Investigations (HSI) Charlotte. “This case also illustrates the importance of collaborative working relationships between HSI and our federal, state and our local law enforcement partners to keep communities safe, and HSI is appreciative of their cooperation as well as the U.S. Attorney’s office in successfully bringing these individuals to justice.”
The case was investigated by agents of the Drug Enforcement Administration, Homeland Security Investigations, Beaufort County Sheriff’s Office, Hampton County Sheriff’s Office, Jasper County Sheriff’s Office, Charleston County Sheriff’s Office, Berkeley County Sheriff’s Office, Hardeeville Police Department, City of Charleston Police Department, Summerville Police Department, North Charleston Police Department, Mount Pleasant Police Department, South Carolina Highway Patrol, Fourteenth Circuit Solicitor’s Office, and South Carolina National Guard. Assistant United States Attorney Nick Bianchi of the Charleston Office and Special Assistant United States Attorney Carra Henderson of the Fourteenth Circuit Solicitor’s Office are prosecuting the case.
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Long Island Felon Convicted of Violent Drug Robbery, Firearms Offense and Obstruction of JusticeRead the Press Release
A federal jury in Central Islip returned a guilty verdict today against Spencer Jean for Hobbs Act robbery of a marijuana trafficker, discharging a firearm during a crime of violence, possession with intent to distribute marijuana, conspiracy to obstruct justice and obstruction of justice. The verdict followed a two-week trial before United States District Judge Joanna Seybert. When sentenced, Jean faces a mandatory minimum sentence of 25 years’ imprisonment on the firearms discharge count, and up to a total of 45 years on the other four counts.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the verdict.
The evidence at trial established that on March 20, 2018 in Middle Island, Jean robbed $1,500 worth of marijuana from a drug dealer he had met at a halfway house following a 2016 firearms conviction. During the robbery, Jean brandished a 9mm Glock handgun loaded with hollow-point ammunition, and shot the victim in the leg at close-range. Shortly thereafter, Jean directed a former girlfriend to provide an alibi for him by lying to law enforcement and falsely testifying at trial that he was at a nursing home in Medford at the time of the shooting.
“Spencer Jean is a dangerous felon who used a handgun to commit a violent crime, and in doing so put others in the community at grave risk,” stated United States Attorney Donoghue. “Stopping gun violence in the district is a continuing priority of this Office and our federal and local law enforcement partners, and we will be unrelenting in our efforts to hold violent offenders like Jean accountable.” Mr. Donoghue thanked the Federal Bureau of Investigation, New York Field Office, for its outstanding work on the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorneys’ 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 government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Anthony Bagnuola and Allen L. Bode are in charge of the prosecution.
The Defendant:
SPENCER JEAN (also known as “Cash”)
Age: 33
Westbury, New YorkE.D.N.Y. Docket No. 19-CR-123 (JS)
Kinsey Man Sentenced to 12 Years in Federal Prison for Federal Firearm and Assault ChargesRead the Press Release
Montgomery, Alabama- On July 2, 2019, Jaccarlus Montrail Dawsey, 18, of Kinsey, Alabama, was sentenced to 12 years in prison for shooting at officers during an arrest on state charges, announced U.S. Attorney Louis V. Franklin, Sr. and U.S. Marshal Jessee Seroyer.
The federal case began when the United States Marshals Service’s Gulf Coast Regional Fugitive Task Force (GCRFTF) was assisting the Houston County Sheriff’s Office with locating and apprehending Dawsey, who was wanted on multiple state charges including assault and robbery. On January 4, 2019, Task Force Officers with the GCRFTF, including members from the U.S. Marshals Service, Houston County Sheriff’s Office, Houston County District Attorney’s Office, Dothan Police Department, and Covington County Sheriff’s Office, discovered his location in Dothan. When Task Force Officers approached Dawsey, he fled and fired at them multiple times as they pursued. Thankfully, no one was struck during the exchange of gunfire and he was eventually taken into custody.
On March 26, 2019, Dawsey pled guilty to assaulting federal officers and discharging a firearm in in relation to a crime of violence. The 12-year prison sentence will be followed by five years of supervised release. There is no parole in the federal system. State charges are still pending.
U.S. Attorney Franklin would like to thank the U.S. Marshals Service, the Houston County Sheriff’s Office, the Houston County District Attorney’s Office, the Dothan Police Department, and the Covington County Sheriff’s Office for their assistance in this case. Assistant U.S. Attorneys Eric M. Counts and Curtis Ivy, Jr. prosecuted the case.
Jury convicts two Cleveland men of using firearms to rob MetroPCS storesRead the Press Release
A federal jury convicted two Cleveland men of brandishing firearms while robbing MetroPCS stores last year and shooting at an off-duty Cleveland police officer.
Shawn Ford, 20, and Charles Rogers, 24, were each convicted on multiple counts of Hobbs Act robbery and using firearms during a crime of violence. They are scheduled to be sentenced October 9.
Ford and Rogers robbed the MetroPCS story at 10959 Kinsman Road on March 21, 2018, at 11100 Lorain Ave. on March 25, 2018, and at 5853 Broadway Ave., on March 27, 2018, and attempted to the rob the store at 14701 Kinsman Road, also on March 27, 2018.
Ford and Rogers fled from the store on Broadway after taking more than $1,000 from the register. An off-duty Cleveland police officer, who was a customer in the store, followed them out of the store. He identified himself as a police officer and ordered them to stop. One of the suspects began shooting at the officer and spent 9 mm shell casings were recovered nearby, according to court documents.
About 30 minutes later, an officer saw a vehicle that matched the description of the car the suspects got into after shooting at the officer. The car was pulled over with Ford and Rogers inside. Inside the car was a spent 9 mm round, blue latex gloves and clothing that matched clothing worn by suspects in other MetroPCS robberies, according to court documents.
Rogers was wearing an electronic monitoring device with GPS capabilities on March 21, the date of the first MetroPCS robbery. The GPS placed Rogers in the vicinity of the Kinsman Road store a few minutes before the robbery. Sometime later the GPS device was tampered with or taken off Rogers, according to court documents.
This case was investigated by the Cleveland Division of Police and Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Ohio Adult Parole Authority and the Cuyahoga County Prosecutor’s Crime Strategies Unit. It is being prosecuted by Assistant U.S. Attorneys Kelly L. Galvin and Margaret Kane and Special Assistant U.S. Attorney Eleina Thomas.
These cases are part of Project Safe Neighborhoods, 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. PSN was reinvigorated 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.
Jackson Man Pleads Guilty under Project EJECT to Illegally Possessing a Firearm as a Convicted FelonRead the Press Release
Jackson, Miss. – Deviassi Adams, 41, of Jackson, pled guilty yesterday before U.S. District Court Judge Henry T. Wingate to possessing a firearm as a convicted felon, announced U.S. Attorney Mike Hurst and Acting Special Agent in Charge Steven J. Jensen with the Federal Bureau of Investigation.
On September 10, 2018, the United States Marshals Service Gulf Coast Regional Fugitive Task Force arrived at a Jackson residence to serve a felony arrest warrant on Adams. While conducting a protective sweep inside the home, task force members observed two firearms: one pistol and one AR-style rifle. In a subsequent interview, Adams confessed to possessing both firearms. Adams has previous convictions for manslaughter in Hinds County and other felony crimes.
On December 6, 2018, Adams was charged in a federal indictment with possessing a firearm as a convicted felon. He will be sentenced on October 3, 2019, by Judge Wingate, and faces a maximum penalty of ten years in prison and a $250,000 fine.
The case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Bert Carraway.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Justice Expel Crime Together." PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Hazelton Inmate admits to indecent exposureRead the Press Release
CLARKSBURG, WEST VIRGINIA – Marco Charles Gilbert, an inmate at Federal Correction Institution Hazelton in Bruceton Mills, West Virginia, has admitted to indecent exposure, United States Attorney Bill Powell announced.
Gilbert, age 33, pled guilty to two counts of “Indecent Exposure.” Gilbert admitted to exposing himself to staff at FCI Hazelton in December 2018 and January 2019.
Gilbert was sentenced to 180 days incarceration for the crimes.
Assistant U.S. Attorney Brandon S. Flower prosecuted the case on behalf of the government. FCI Hazelton Special Investigative Services investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Gun Charge Leads to 5-Year Sentence for Jackson County ManRead the Press Release
Billy Jack Reed, 24, of Murphysboro, Illinois, was sentenced today to 60 months in federal prison on a federal firearm violation. Earlier this year, Reed pled guilty to a one-count indictment charging unlawful possession of a firearm by a convicted felon.
Evidence at the plea and sentencing hearings established that, on February 18, 2018, Reed knowingly possessed a 9mm pistol in Jackson County. At the time, Reed was prohibited from possessing a gun because of multiple prior felony convictions. In handing down the sentence, U.S. District Judge Staci M. Yandle also took into consideration that the gun was stolen and that Reed attempted to obstruct justice after his arrest by encouraging a witness to lie for him.
Reed’s sentence includes three years of supervised release.
The investigation was conducted by the Jackson County Sheriff’s Office and the Murphysboro Police Department.
Greece Man Sentenced for Lying to the FBIRead 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 Thomas Alonzo Bolin, a/k/a Peter Vincent, 22, of Greece, NY, who was convicted of making a false statement to the FBI, was sentenced to serve time served (three months) and three years supervised release by U.S. District Judge David G. Larimer. As a condition of supervised release, the judge ordered the defendant to submit to monitoring of his computer usage and online activities. Bolin also forfeited a Mossberg 12-gauge shotgun seized during the investigation along with 39 rounds of ammunition.
Assistant U.S. Attorney Brett A. Harvey, who handled the case, stated that the FBI began investigating the defendant and others in March 2019 for potential violations of federal civil rights and firearms laws. On March 15, 2019, a Facebook user named “Ragnar Odinson” – who was a member of a Facebook group called “Odin’s Warriors” – made statements on Facebook referencing the mosque attacks that occurred in Christchurch, New Zealand, and indicated that he was willing to “do something” the following week. The defendant was a member of and administrator for the “Odin’s Warriors” Facebook group. The defendant used Facebook – under the user name “Peter Vincent” – to post messages consistent with white supremacist ideology, statements threatening violence against Muslims and others, and messages containing derogatory terms for Muslims and other minority groups.
On March 30, 2019, members of the FBI, as part of their investigation, interviewed the defendant. During the interview, Bolin falsely stated that he did not possess any firearms in New York State. At the time of the statement, the defendant knew that he possessed a Mossberg 12-gauge shotgun in his bedroom closet at 34 Third Avenue in Greece. This false statement was material to the FBI’s investigation of possible civil rights and firearms violations by Bolin and others. The FBI recovered the shotgun during a subsequent search of the defendant’s bedroom closet.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
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Gates Man Who Attempted to Lure A Teenager for Sex Going to Prison for 10 YearsRead 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 Dillon T. Boyington, 35, of Gates, NY, who was convicted of attempted online enticement of a minor, was sentenced to serve 120 months in prison and 10 years supervised release by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Kyle P. Rossi, who handled the case, stated that the defendant utilized a social media application in an attempt to meet a 14 year-old child for sex. As he traveled to meet such child on October 24, 2018, Boyington was intercepted by members of the New York State Police. Upon his arrest, the defendant was found to be in possession of condoms and candy, which he intended to give to the child.The sentencing is the result of an investigation by the New York State Police, under the direction of Major Eric Laughton, and the Rochester Office of the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
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Gates Man Sentenced on Child Pornography ChargeRead 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 Sean Blackwell, 35, of Gates, NY, who was convicted of possession of child pornography, was sentenced to serve 48 months in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Kyle P. Rossi, who handled the case, stated that Blackwell was discovered actively trading child pornography from an apartment in Gates during an operation conducted by the FBI. Special Agents executed a search warrant at a residence that the defendant occupied during the period in question and seized digital items belonging to Blackwell. A forensic examination determined that the items contained multiple images and videos of child pornography, including images that depicted the sexual abuse of prepubescent minors.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, Rochester Office, under the direction of Special Agent-in-Charge Gary Loeffert.
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Fugitive Returned to U.S. to Face Federal Charges in $50 Million Health Care Fraud Scam Run Out of Coachella Valley Surgery CenterRead the Press Release
SANTA ANA, California – A Rancho Mirage woman who faces federal charges related to a scheme that fraudulently billed insurance companies $50 million for “medically necessary” cosmetic surgeries has been returned the United States after fleeing to Israel two years ago.
Linda Morrow, 67, who fled the United States after being named in a 31-count federal grand jury indictment, arrived in Southern California on Monday morning after being deported by Israel, which had determined that she had entered that nation on a fraudulent Mexican passport.
Linda Morrow appeared in United States District Court in Santa Ana on Tuesday afternoon and entered a not guilty plea to a separate grand jury indictment that charges her with contempt of court for fleeing while free on bond. During that hearing, she was ordered detained and a trial date in the contempt case was scheduled for August 27. She will make another court appearance later this month to discuss the status of the pending health care fraud case.
Linda Morrow and her husband, David Morrow, 74, were arrested in Israel on June 16. David Morrow, who pleaded guilty in 2016 in the health care fraud case and was sentenced in absentia to 20 years in federal prison, is pending extradition proceedings in Israel. David Morrow also faces contempt of court charges for fleeing while he was pending sentencing.
Linda Morrow, who was the executive director of The Morrow Institute (TMI) in Rancho Mirage, is charged with participating in a scheme to defraud health insurance companies by submitting bills for more than $50 million for procedures that were claimed as “medically necessary” – but in fact were cosmetic procedures such as “tummy tucks,” “nose jobs,” breast augmentations and vaginal rejuvenation. The indictment outlines a scheme in which patients were lured to TMI with promises that cosmetic procedures would be paid for by their union or PPO health insurance plans. The indictment further alleges that some patients who underwent multiple surgeries at TMI suffered severe medical complications from the procedures.
The victim health insurance companies included Anthem Blue Cross, Blue Cross/Blue Shield of California, Blue Cross/Blue Shield of Massachusetts, Regional Employer/Employee Partnership for Benefits, formerly known as Riverside Employer/Employee Partnership (REEP) and Cigna. When insurance companies refused to pay for the cosmetic procedures for patients who happened to be employed by public entities such as school districts, TMI made formal claims against those public entities, demanding payments totaling more than $15 million from the California Highway Patrol, the Desert Sands Unified School District, the Palm Springs Unified School District and the City of Palm Springs.
The indictment naming Linda Morrow with conspiracy, 23 counts of mail fraud, six identity theft charges, and one count of misprision of a felony for allegedly failing to report the health care fraud scheme to authorities. If she were to be convicted, Linda Morrow would face a potential sentence of more than 500 years in federal prison.
An indictment contains allegations that a defendant has committed a crime. A defendant is presumed to be innocent until and unless proven guilty in court.
The investigation into the Morrows and TMI was conducted by the FBI, IRS Criminal Investigation and the California Department of Insurance. The FBI’s Legal Attaché in Tel Aviv and the Israeli National Police provided considerable assistance relative to the capture of Linda and David Morrow. The United States Marshals Service handled the transportation of Linda Morrow from Israel.
The case is being prosecuted by Assistant United States Attorney Charles Pell of the Santa Ana Branch Office.
Four Lafourche Parish Men Indicted for Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – KENDALL MATHEWS, a/k/a “DOT,” age 36, EARL JOHNSON, a/k/a “MUD,” age 39, MONTRELL CLEVELAND, a/k/a “NOON,” age 32, and DONTRELL MATHEWS, age 40, all residents of Thibodaux, Louisiana, were charged June 14, 2019, in a fifteen-count indictment by a Federal Grand Jury with several narcotics offenses, including conspiring to distribute and possess with intent to distribute fifty grams or more of methamphetamine, five kilograms or more of cocaine hydrochloride, use of a communication facility to facilitate a drug trafficking crime, and distribution of methamphetamine, announced U.S. Attorney Peter G. Strasser.
According to the indictment, beginning at a time unknown and continuing until September 28, 2018, Kendall MATHEWS, JOHNSON, CLEVELAND, and Dontrell MATHEWS conspired with each other to distribute and possess with intent to distribute fifty grams or more of methamphetamine. During that same period, Kendall MATHEWS and JOHNSON engaged in a conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine hydrochloride and a quantity of heroin. Kendall MATHEWS and Dontrell MATHEWS are also charged with distribution of methamphetamine and all four individuals are charged with using a communication facility, a telephone, to facilitate drug conspiracies.
If convicted, Kendall MATHEWS, JOHNSON, CLEVELAND, and Dontrell MATHEWS 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, Terrebonne Parish Sheriff’s Office, and the Lafourche Parish Sheriff’s Office. The prosecution is being handled by Assistant United States Attorney André Jones.
Former Swink Public School Treasurer Sentenced for Theft of Federal FundsRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that the former treasurer of Swink Public School, Lori Rae Baskin, age 50, of Swink, Oklahoma, was sentenced to 4 years’ probation for Theft from Organization Receiving Federal Program Funds, in violation of Title 18, United States Code, Section 666(a)(1)(A). Baskin was also ordered to pay total restitution of $27,738.80. The charges arose from an investigation by the Department of Education Office of Inspector General (OIG) and the Federal Bureau of Investigation (FBI).
The Information alleged that from on or about February 3, 2012, until on or about June 30, 2015, in the Eastern District of Oklahoma, the defendant, being an agent, employee, and officer of Swink Dependent School District No. C-21, an agency of a State government, which received in excess of $10,000 in federal benefits in each one year period from 2012 through 2015, stole, obtained by fraud, and without authority knowingly converted to the use of a person not the rightful owner, property of a value of $5,000 or more, owned by, under the care of, and under the control of Swink Dependent School District No. C-21.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. First Assistant United States Attorney Christopher Wilson represented the United States.
Former State Delegate Sentenced for Role in Defrauding United StatesRead the Press Release
NORFOLK, Va. – A former member of the Virginia General Assembly was sentenced today to two and a half years in prison for his role in a conspiracy that resulted in the fraudulent award of over $80 million in government contracts.
According to court documents, Ronald A. Villanueva, 49, participated in a nine-year conspiracy involving over $80 million in fraudulently obtained government contracts. More specifically, Villanueva conspired with others to help two Virginia Beach companies secure Small Business Administration contracts that had been set aside for minority-owned businesses. Villanueva began working for one company, SEK Solutions, in or about 2005. When that company’s 8(a) status was set to expire in 2010, Villanueva and his co-conspirators set up a new company, Karda Systems, which on paper was run by Villanueva’s brother-in-law. However, in reality Karda’s contracting business was managed by Villanueva and others associated with SEK.
As part of the conspiracy, Villanueva and others misrepresented whether SEK and Karda were eligible for government contracts under the 8(a) program. In fact, neither company was eligible to participate in the program, yet Villanueva and his co-conspirators made numerous false statements and certifications to the contrary. During part of the conspiracy, Villanueva was a member of the Virginia General Assembly, and in one instance used his House of Delegates letterhead to send a letter to the SBA in support of Karda’s application to participate in the 8(a) program, knowing that it contained false and misleading statements about who actually operated the company. As a result of the fraud, the two companies were awarded over $80 million dollars in government contracts for which they were not eligible.
As part of the sentence, Villanueva was ordered to pay $524,533 in restitution.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, Carol Fortine Ochoa, Inspector General, General Services Administration (GSA), Hannibal “Mike” Ware, Inspector General of the Small Business Administration (SBA), and Glen A. Fine, Acting Inspector General, Department of Defense (DoD), made the announcement after sentencing by U.S. District Judge Rebecca Beach Smith. Assistant U.S. Attorneys Alan Salsbury and Daniel Young prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-2.
Former Postal Carrier Sentenced for Stealing Mail, Drug TraffickingRead the Press Release
KANSAS CITY, Mo. – A former postal carrier was sentenced in federal court today for stealing mail from dozens of residents and for possessing methamphetamine to distribute.
Brandy Manning, 40, of Liberty, Missouri, was sentenced by U.S. District Judge Greg Kays to six years in federal prison without parole. The court also ordered Manning to pay $3,993 in restitution.
Manning, who was employed as a mail carrier for the U.S. Postal Service from June 9, 2007, to June 5, 2017, pleaded guilty on Jan. 17, 2019, to one count of mail theft by a postal employee and one count of possessing methamphetamine with the intent to distribute. Manning admitted that she stole driver’s licenses mailed to customers on her route, as well as credit cards, debit cards, rebate cards, checks, and other mail matter. Manning also admitted that she used the stolen identifications, credit and debit cards, and checks to unlawfully purchase items and to create counterfeit checks.
Brandy Manning was arrested by Kansas City, Mo., police officers on Feb. 21, 2017. She was in possession of dozens of items she stole from the U.S. Postal mail in her position as a U.S. Postal mail carrier. Police recovered from her personal truck: 14 driver’s licenses issued to different people; 15 credit/debit cards issued to different people; 15 gift cards; 12 personal or business checks issued to/from different people; a counterfeit check bearing information matching a stolen check and driver’s license; four receipts related to fraudulent uses of stolen cards; a Missouri Bar card belonging to another person; a health insurance card issued to another person; a physician certificate belonging to another person; a vehicle registration renewal receipt for another person; and unopened mail – in all, items in 45 other people’s names and addresses. Manning also possessed an oxycodone tablet for which she did not have a prescription.
When interviewed after this arrest, Manning admitted to police that she used methamphetamine, cocaine, opiates, “just about everything.” Manning did not return to work at the U.S. Postal Service after her arrest. She was separated from employment on June 5, 2017.
The U.S. Postal Inspection Service and U.S. Postal Service, Office of Inspector General sent questionnaires to all the identifiable victims and everyone on Manning’s postal route. The agencies received a total of 54 victim impact responses.
Manning was again arrested on May 3, 2017, by a Cass County sheriff’s deputy after Manning left the scene of an accident in which she rear-ended a stopped vehicle. Deputies searched her truck and found a loaded Smith & Wesson .40-caliber handgun, a second loaded firearm magazine, a box of 100 rounds of .40-caliber ammunition, .56 grams of cocaine; 1.83 grams of marijuana, 26.229 grams of pure methamphetamine, 414 Alprazolam pills, drug paraphernalia, $1,593, three cell phones; three debit cards issued to other people, and unopened mail addressed to another person.
This case was prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by the U.S. Postal Inspection Service, the U.S. Postal Service – Office of Inspector General, the Kansas City, Mo., Police Department, and the Cass County, Mo., Sheriff’s Department.
Former Postal Carrier Sentenced for Deserting Approximately 49 Plastic Tubs of MailRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that, in the largest “mail dumping” case in Alaska history, a former U.S. Postal Service employee has been sentenced to federal prison for deserting more than 49 plastic tubs of mail that he was responsible for delivering.
Thomas Gerald Hilty, 48, of Wasilla, was sentenced yesterday by Chief U.S. Magistrate Judge Deborah M. Smith to serve three years of probation, to complete 300 hours of community service, and to pay a $1,000 fine. In April 2019, Hilty pleaded guilty to one count of desertion of mail.
According to court documents, over the course of two years, Hilty abandoned some of the mail along the route in unused mail receptacles, kept some of it in and around his home, and even destroyed mail by burning it. The deserted mail included a passport, insurance correspondence, PFD letters, college acceptance letters, child support payments, among other unknown types of mail that Hilty burned. The investigation revealed that Hilty simply tired of delivering the mail he was entrusted with delivering, and did not want to complete his assigned rounds. This was the largest “mail dumping” case in Alaska history, as measured by the mail volume and number of victims – there were 467 identifiable victims in this case.
At the sentencing hearing, Judge Smith noted that a higher fine could have been imposed, however federal law required the judge to consider Hilty’s inability to pay.
The U.S. Postal Service-Office of Inspector General (USPS-OIG) conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Jonas M. Walker.
Former Military Serviceman Sentenced to Federal Prison for Theft of Government MoneyRead the Press Release
GAINESVILLE, FLORIDA – U.S. Attorney Lawrence Keefe for the Northern District of Florida today announced the sentencing of William Larry Johns, 69, of Gainesville, after he was sentenced on June 24 in the United States District Court in Gainesville to a federal grand jury indictment that charged him with one count of theft of government money.
Johns served in the United States Marine Corps for less than a year in 1967, and years later applied for the United States Department of Veterans Affairs (“VA”) Disability Pension claiming to be unable to work due to a non-service connected disability. Johns failed to regularly report his employment history, net worth, and income received from all sources as he was required to do. Further, during visits to the VA Medical Center, Johns falsely indicated that he was retired and failed to report to the VA the income he was earning through his plumbing and drain cleaning businesses between 2004 and 2017.
In addition to receiving a sentence of incarceration in federal prison and supervised release, Johns was ordered to pay restitution to the Department of Veterans Affairs in the amount of $157,949.
Assistant United States Attorney Justin M. Keen prosecuted the case, which was investigated by the Department of Veterans Affairs Office of Inspector General (VA-OIG). David Spilker, Special Agent in Charge, VA-OIG, stated, "The defendant’s deceitful actions stole VA’s limited resources from eligible veterans deserving of the financial assistance they earned through military service. VA-OIG is committed to safeguarding the integrity of VA’s healthcare and benefits programs."
United States Attorney Keefe added, “Military benefits exist for those who truly earned them, individuals who need the help of a public on whose behalf they sacrificed so much. Not only should these benefits be denied to those who do not earn them, but we owe it to the real heroes to prosecute anyone who seeks to benefit unjustly at their expense.”
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html
Former LMPD Officer Sentenced to 16 Years for Enticing Minors, Distribution, and Possession of Child PornRead the Press Release
LOUISVILLE, Ky. – United States District Judge David J. Hale has sentenced Kenneth R. Betts to 16 years’ imprisonment, followed by 20 years of Supervised Release, after he pleaded guilty in December of 2018 to enticement, attempted enticement, possession of child pornography, transfer of obscene materials to a minor, and distribution of child pornography, announced United States Attorney Russell Coleman. The Court ordered Betts to pay a $5,000.00 special assessment under the Justice for Victims of Trafficking Act of 2015. And, an Agreed Order of Restitution in the amount of $20,000.00 will be entered with regard to John Doe 1.
“We know all too well that LMPD officers place their lives at jeopardy daily to protect our kids,” stated U.S. Attorney Russell Coleman. “Mr. Betts’ foul conduct tarnished his badge and earned him over a decade and a half in federal prison with no parole.”
Kenneth R. Betts, 34, of Shelbyville, Kentucky, was charged in an Indictment returned by a federal Grand Jury on November 7, 2018, with one count of distribution of child pornography, one count of possession of child pornography, three counts of enticement of individuals under the age of 18 years to engage in sexual activity, one count of transfer of obscene materials to an individual under the age of 16, and one count of attempted enticement of an individual under the age of 18. All of his criminal conduct occurred in Jefferson County, Kentucky.
According to the Plea Agreement, in or about and between February 2006 and February 2008, Betts communicated with an individual (John Doe 1), who had not attained the age of eighteen years. Betts communicated with John Doe 1 via Facebook and other social media. During those communications, Betts knowingly persuaded, induced, and enticed John Doe 1 to engage in sexual activity, including sharing sexually explicit images with Betts. The resending of such images is sexual activity that constitutes a criminal offense.
On or about May 14, 2014, Betts knowingly distributed child pornography. He sent two of the images referenced above to John Doe 1. Betts transmitted the images to John Doe 1 using Facebook.
Law enforcement officials executed a state search warrant on Betts’ residence on October 13, 2016. Among other things, they seized digital devices – including an external hard drive. Forensic examination of the digital devices revealed Betts’ possession of child pornography. Namely, he possessed the four images he originally requested and received from John Doe 1.
John Doe 2 (Counts 4 and 5). On or about and between May 2010 and May 2014, Betts communicated via the Internet with an individual (John Doe 2), who had not attained the age of eighteen years. The two met and became acquainted through the LMPD Explorers Program. Betts communicated with John Doe 2 via Facebook and other social media platforms. During those communications, Betts knowingly persuaded, induced, and enticed John Doe 2 to engage in sexual activity. The sexual activities included a one-time in-person sexual encounter involving oral sex between Betts and John Doe 2 and repeated requests for sexually explicit images to be shared with Betts. The oral sex and requests for photos are activities for which a person may be prosecuted for a criminal offense.
From May 2010 through May 2012, Betts used a facility and means of interstate commerce to send pictures of himself to John Doe 2. During that time period, Betts knew John Doe 2 had not attained the age of 16 years.
Jane Doe 1 (Count 6) On or about and between June 2013 and July 2013, Betts used a facility and means of interstate commerce, that is, a cellular telephone and its text messaging feature, to communicate with Jane Doe 1. At that point in time, Jane Doe 1 was 16. The two met and became acquainted through the LMPD Explorers Program. During the communications, Betts asked Jane Doe 1 to meet for sexual activity. He also asked Jane Doe 1 for sexually explicit photos, which Jane Doe 1 provided to him. The photos Jane Doe 1 provided constituted a violation of Kentucky law. Law enforcement officials with LMPD observed the images as well as the receipt of those images by Betts. However, the images were destroyed during the initial investigation.
John Doe 3 (Count 7) On or about and between September 2014 and November 2014, Betts used a facility and means of interstate commerce, that is, a cellular telephone, Facebook and SnapChat (a social media platform), to communicate with John Doe 3. At that point in time, John Doe 3 was 17. Betts and John Doe 3 had met and become acquainted through the LMPD Explorers Program. During the communications, Betts asked John Doe 3 to meet for sexual activity. He also asked John Doe 3 for sexually explicit photos. He attempted to persuade, induce, entice, or coerce John Doe 3 to engage in unlawful sexual activity. Betts sent John Doe 3 a photograph of himself wearing an LMPD uniform and in the company of a young woman during some of the communications encouraging a three-way. However, John Doe 3 refused to meet Betts for sexual activity or to send the requested sexually explicit images of himself.
Assistant United States Attorney Jo E. Lawless prosecuted the case, and it was investigated by the Federal Bureau of Investigation (FBI) and the Louisville Metro Police Department’s Public Integrity Unit.
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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."
Former Jackson County substitute teacher sentenced for possession of child pornographyRead the Press Release
GAINESVILLE, Ga. - Ernest Leander Shaw has been sentenced for possession of child pornography. Shaw, a former substitute teacher, taught at various schools throughout the county.
“Child pornography is abuse of society’s most vulnerable population—young children,” said U.S. Attorney Byung J. “BJay” Pak. “Children trust that adults and those in leadership positions will be their protector. Shaw chose to betray that trust.”
“There is no sentence that can ever make the victims of child pornography whole again,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “It is even more disheartening when a person entrusted to protect children, our most vulnerable citizens, is the person who promotes this abuse. We can only hope that Shaw's sentence will discourage others from this depraved behavior.”
“It is my hope that Shaw is monitored to the fullest extent and can never have access to children again, as he had access here in Jackson County in our schools. He committed horrendous acts when he possessed child pornography for his gratification and then had access to our children here in Jackson County,” said Jackson County Sheriff Janis Mangum.
According to U.S. Attorney Pak, the charges and other information presented in court: In or around May 2018, the Jackson County Sheriff’s Office received information that Shaw possessed an electronic device that contained child pornography. During their subsequent interview with Shaw, he admitted that the images belonged to him. Based upon Shaw’s consent to a search of his residence, telephones, and other electronic devices, and a search warrant obtained from a Jackson County Magistrate Judge, the Jackson County Sheriff’s Office eventually found hundreds of images and videos of child pornography on various electronic devices in Shaw’s residence.
Ernest Leander Shaw, 66, of Nicholson, Georgia, was sentenced today by U.S. District Court Judge Richard W. Story to two years in prison, to be followed by 10 years of supervised release of which the first two years will be served on home confinement. Shaw was indicted by a federal grand jury on September 18, 2018. He pleaded guilty to the sole count in the indictment, pursuant to a written plea agreement.
This case was investigated by the Federal Bureau of Investigation, with the initial investigation handled by the Jackson County Sheriff’s Office.
Assistant U.S. Attorney Sekret T. Sneed prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Clymer School Teacher Pleads Guilty to Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Scott Aikens, 60, of Clymer, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to possession of child pornography involving a prepubescent minor. The charge carries a maximum penalty of 20 years in prison, lifetime supervised release, and a $250,000 fine.
Special Assistant U.S. Attorney Jeremy Murray, who is handling the case, stated that in late June 2018, Homeland Security Investigations in Buffalo received information that a user, identified as "EJD," was active on the Thai based child pornography open website "Boyxzeed2.net.” Investigators traced the email address utilized by “EJD” to Scott Aikens.
On September 14, 2018, Homeland Security Investigations and the New York State Police executed a search warrant at the defendant’s residence on Route 474 in Clymer and interviewed Aikens, who admitted that he viewed child pornography and that child pornography would be found on his laptop computer. Investigators seized the laptop and other electronic devices, which were found to contain a total of 683 videos and 22 images of child pornography.
Some of the child pornography possessed by the defendant depicted prepubescent minors or minors less than 12 years of age, and some of the child pornography possessed by the defendant contained sadistic or masochistic conduct or other depictions of violence.
At the time of his arrest, the Aikens was a 7-12 grade school teacher with the Clymer Central School District.
The plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly, and the New York State Police, under the direction of Major Edward Kennedy.
Sentencing is scheduled for October 24, 2019, at 10:30 a.m. before Judge Wolford.
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Five Perrine Residents Arrested for their Involvement in a Drug Trafficking NetworkRead the Press Release
Five Perrine residents were arrested this morning for their involvement in a drug trafficking network believed to be the largest source of narcotics supply in the neighborhood of Perrine, as part of the Southern District of Florida’s Violence Reduction Partnership (“VRP”) initiative.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida; Special Agent in Charge George L. Piro for the Federal Bureau of Investigation (FBI), Miami Field Office; Special Agent in Charge Adolphus P. Wright for the U.S. Drug Enforcement Administration (DEA), Miami Field Division; and Director Juan J. Perez of the Miami-Dade Police Department (MDPD), made the announcement.
The Criminal Complaint charges Tedrick “Ted” King, 45, Wilhemnia Nottage, 35, Corey Evans, 28, Christopher McCollur, a/k/a “Block,” 32, Keyon Harris, 37, and Jonis Webster, a/k/a “J.J.,” 39, all of Miami-Dade County, with a conspiracy, that spanned from October 2018 through June 2019, to possess with intent to distribute narcotics, and possession with intent to distribute narcotics (Case No. 19-MJ-3049). The defendants are scheduled to have their initial appearances before U.S. Magistrate Judge Jacqueline Becerra tomorrow at 2:00 p.m.
The Criminal Complaint arises from a joint investigation conducted by the FBI, DEA, and MDPD involving Ted King and his criminal associates (the “King Enterprise”), including the charged defendants, for crimes including narcotics distribution and money laundering. Since the start of the investigation, law enforcement officers have conducted approximately 30 controlled narcotics purchases from the King Enterprise, including cocaine, marijuana, and Molly. Law enforcement, through the course of physical surveillance, controlled purchases of narcotics, and debriefs with witnesses, believes that the King Enterprise is the largest current source of cocaine distribution in the neighborhood of Perrine, located in the Southern District of Florida. The investigation has revealed that the King Enterprise utilizes multiple locations to distribute narcotics, store narcotics, and conceal the proceeds of the narcotics sales.
Fourteen individuals have also been arrested and face state charges for related criminal conduct. The investigation remains pending and additional individuals involved in the sales of illegal drugs may also be arrested and prosecuted. If convicted of possessing with intent to distribute controlled substances, or conspiracy to do same, the defendants face up to 20 years in prison.
A Criminal Complaint is only an accusation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Through the collaborative VRP, the U.S. Attorney’s Office and its federal and local law enforcement allies have sought to dismantle the most violent criminal networks that plague communities throughout the Southern District of Florida. The VRP strives to combat violent crime, narcotics trafficking, gang activity and firearms offenses by prosecuting offenders and working with community leaders and non-profit entities to provide preventive services to the local populations. The charges announced today are the result of the VRP’s law enforcement initiatives. Additional information regarding the VRP initiatives is available at [email protected] (link sends e-mail) or by calling (305) 961-9134.
The members of the VRP include the U.S. Attorney’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, DEA’s Miami Field Office, Broward Sheriff’s Office, Sunrise Police Department, U.S. Marshals Service Fugitive Task Force, Miami-Dade Police Department, FBI’s Miami Field Office, Hollywood Police Department, Homestead Police Department, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), North Miami Beach Police Department, Miami-Dade Police Department, City of Miami Police Department, Palm Beach County Sherriff’s Office, Broward County Office of the State Attorney, and Miami-Dade Office of the State Attorney.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI, DEA, and MDPD. She thanked the Miami-Dade State Attorney’s Office and Homestead Police Department for their assistance. This case is being prosecuted by Assistant U.S. Attorney Cary O. Aronovitz.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Federal Jury Finds Buffalo Man Guilty of Multiple Cocaine ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal jury has convicted Darryl M. Greene, 48, of Buffalo, NY, of conspiracy to possess with intent to distribute, and to distribute, 500 grams or more of cocaine and two counts of attempt to possess with intent to distribute cocaine. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of life, and an $8,000,000 fine.
Assistant U.S. Attorneys Misha Coulson and Wei Xiang, who handled the trial of the case, stated that on July 27, 2017, the United States Postal Inspection Service (USPIS) executed a search warrant on a suspicious package mailed from San Diego, California. The package was addressed to an associate of the defendant. Inside, inspectors discovered one kilogram of suspected cocaine.
On July 28, 2017, USPIS and the Drug Enforcement Administration conducted a controlled delivery of the package. A package of sham cocaine was delivered to the associate’s Kensington Avenue residence. Within five minutes of the package’s delivery, Greene arrived at the residence and departed with the package. He was arrested a short time later and released.
On August 3, 2017, the USPIS executed a search warrant on another suspicious package from San Diego, California, which was addressed to a recipient identified as “W. Greene” at 1631 Hertel Avenue in Buffalo. The defendant resided at the residence with his mother. The second package contained a ½ kilogram of cocaine, and the defendant was once again arrested.
The verdict is the result of an investigation by the United States Postal Inspection Service, Boston Division, under the direction of Inspector-in-Charge Joseph W. Cronin, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan.
Sentencing is scheduled for November 14, 2019, before U.S. District Judge Lawrence J. Vilardo who presided over the trial of the case.
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Federal Judge Hands Down Life Sentences to Armored Car Murder CrewRead the Press Release
HOUSTON – Four Houston men will serve the rest of their lives behind bars for the robbery and murder of an armored car guard and attempted robbery and murder of another, announced U.S. Attorney Ryan K. Patrick.
A federal jury deliberated for eight hours before convicting Nelson Alexander Polk, 40, Marc Anthony Hill, 48, John Edward Scott, 43, and Bennie Charles Phillips Jr., 32, on March 29, 2019, following a nine-day trial. All were convicted of attempted interference with commerce by robbery and aiding and abetting discharge of a firearm during a crime of violence. The jury also convicted Hill and Polk of aiding and abetting interference with commerce by robbery and aiding and abetting discharge of a firearm during a crime of violence causing the death of another.
Today, U.S. District Judge David Hittner sentenced each man to life in prison for their roles in the offenses. At the hearing, the court heard from the victim’s family who described the impact of the murder on their lives. They described waiting for their son, brother and fiancé to come home from work and that he should have never had to die for “easy money.”
The sentences stemmed from the robbery and murder of a Brinks armored car guard Aug. 29, 2016, at Wells Fargo Bank located at 13120 Northwest Freeway as well as the attempted robbery of a Loomis armored car guard at Amegy Bank located at 400 N Sam Houston Pkwy E Dec. 7, 2016.
All members of the crew received at least life in prison because each member knew the scheme involved murdering the guard then stealing the money.
Hill and Polk were sentenced to two consecutive life terms followed by 240 months for their roles in both robberies and murder. Scott and Phillips received life in prison followed by a consecutive 240 months for their roles in the attempted robbery and murder of the Loomis guard at Amegy Bank.
Hill conducted extensive surveillance at both locations and was there during the time of the Wells Fargo murder and robbery. He was also near the Amegy Bank poised to pick up the robbery crew members in a getaway vehicle.
Polk, Hill’s nephew, drove the car that would pull up on the dying guard for another crew member to get out and steal the money. Polk confessed to his roles in the crimes and admitted he knew the leader intended to “lay [the guard] down” so he could easily steal the money from the dying armored guard.
Phillips recruited Trayvees Duncan-Bush, 32, also of Houston, who would take the money off of the dying guard. He made sure that Duncan-Bush had a phone, instructions and a hotel room in preparation for the robbery/murder plot. Scott acted as an outside perimeter lookout. He alerted the crew via cell phone when the armored truck was headed towards the bank and watched for law enforcement.
At trial, the jury heard that a now-deceased individual had allegedly led the robbery crew, which would conduct extensive surveillance of banks’ ATMs and armored car routes before executing the robberies. The plan involved the leader lying in wait for the guard to begin service of the ATM. He would then shoot the guard from a distance with a high caliber rifle so another member of the robbery crew could pull up and take the money.
When law enforcement moved in to arrest the subjects Dec. 7, 2016, the leader of the crew allegedly came out firing his weapon and police responded, killing him.
Those sentenced today will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Duncan-Bush had pleaded guilty to conspiracy to commit interference with commerce by robbery and aiding and abetting discharge of a firearm during a crime of violence prior to trial. He is set for sentencing Aug. 14, 2019, at which time he faces up to 20 years in prison.
The FBI, Houston Police Department and Bureau of Alcohol, Tobacoo, Firearms and Explosives conducted the investigation. Assistant U.S. Attorneys Heather Winter and Richard Hanes are prosecuting the case.
The case is an example of coordination between law enforcement who are part of the Houston Law Enforcement Violent Crime Initiative. The goal is to proactively fight and reduce violent crime across the Greater Houston area by targeting the region’s most violent offenders, augmenting investigative and prosecutorial efforts, and enhancing training, public awareness and education.
It was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.
Federal Indictment Charges Lakeway Man with Production, Distribution and Possession of Child PornographyRead the Press Release
A 25–year-old Lakeway, TX, man faces federal production, distribution and possession of child pornography charges, announced U.S. Attorney John F. Bash, FBI Special Agent in Charge Christopher Combs, San Antonio Division.
A 52-count federal indictment returned earlier this month and unsealed yesterday, charges Luann Fabric Campos Leao Hida (aka “Luann Hida,” “Luann Leao,” and “LOTR”) with 24 counts of production of child pornography, 27 counts of distribution of child pornography and one count of possession of child pornography.
According to the indictment, from October 2014 to July 2018, Hida allegedly produced images and videos depicting 15 children engaged in sexually explicit activities.
Each production charge calls for a minimum of 15 years in federal prison upon conviction. Each distribution charge calls for a minimum of five years in federal prison upon conviction. Possession of child pornography calls for up to ten years in federal prison upon conviction. Hida remains in federal custody following his initial appearance yesterday in federal court in Austin.
The FBI is seeking the public’s assistance in identifying other potential victims of Luann Hida, who is also known by his screen name “The LOTR” or "TXLOTR". If you believe your child or other children may have been in contact with Luann Hida, please contact the Austin FBI via email at [email protected]. You can also complete a secure, confidential, online questionnaire, and obtain additional information on the FBI's webpage www.fbi.gov/sanantonio. The FBI is legally mandated to identify victims of federal crimes it investigates and provide these victims with information, assistance services and resources.
The FBI together with the Lakeway Police Department, Hays County Sheriff’s Office, Bee Cave Police Department, Austin Police Department and the Travis County Sheriff’s Office are investigating this case. We also thank the Center for Child Protection, Travis County, for its assistance. Assistant U.S. Attorneys G. Karthik Srinivasan and Keith M. Henneke are prosecuting the case on behalf of the Government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, 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.
Federal Grand Jury Indicts Lafourche Man for Being a Felon in Possession of a FirearmRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced that on June 20, 2019, MICHAEL LEWIS, age 33, a resident of Edgard, Louisiana, was charged in a one-count indictment by a federal grand jury. In count one, LEWIS is charged with being a convicted felon in possession of a firearm.
If convicted of count one, LEWIS faces a maximum sentence of 10 years imprisonment, a fine up to $250,000.00, a period of supervised release up to 3 years, and a mandatory special assessment fee of $100.00.
U. S. Attorney Strasser reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the Lafourche Parish Sheriff’s Office, the Lafourche Parish District Attorney’s Office, and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (A.T.F.). Assistant United States Attorney Maurice Landrieu is in charge of the prosecution.
Federal Grand Jury Indicts Evanston Man on Robbery and Gun Charges in Connection with North Suburban Gas Station HeistsRead the Press Release
CHICAGO — A federal grand jury in Chicago has indicted an Evanston man on robbery and firearm charges in connection with three violent gas station heists in the north suburbs.
MARIO BANKS JR., 24, is charged with three counts of robbery and three counts of using, carrying, and brandishing a firearm during a crime of violence. The indictment accuses Banks of robbing three gas stations at gunpoint:
- Nov. 4, 2018: Bucky’s Express Mobil, 6400 block of North Cicero Avenue, Lincolnwood.
- Feb. 16, 2019: Shell Oil, 3300 block of Howard Street, Skokie.
- Feb. 19, 2019: Bucky’s Express Mobil, 6400 block of North Cicero Avenue, Lincolnwood.
The indictment was returned June 20, 2019, in federal court in Chicago. Banks has pleaded not guilty to the charges and he remains detained in federal custody. A status hearing is set for Sept. 12, 2019, before U.S. District Judge Virginia M. Kendall.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Demitrous Cook, Chief the Evanston Police Department; Jay Parrott, Chief of the Lincolnwood Police Department; Anthony F. Scarpelli, Chief of the Skokie Police Department; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI. The government is represented by Assistant U.S. Attorney Eric S. Pruitt.
The firearm counts each carry a mandatory minimum sentence of five years in prison and a maximum sentence of life, while each robbery count is punishable by up to 20 years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Executives of Staffing Companies Charged with Visa FraudRead the Press Release
NEWARK, N.J. – Four executives of two information technology staffing companies have been arrested on charges of fraudulently using the H-1B visa program to gain an unfair advantage over competitors, U.S. Attorney Craig Carpenito announced today.
Vijay Mane, 39, of Princeton, New Jersey; Venkataramana Mannam, 47, of Edison, New Jersey; Fernando Silva, 53, of Princeton; and Sateesh Vemuri, 52, of San Jose, California, are each charged by complaint with one count of conspiracy to commit visa fraud.
Vemuri made his initial appearance July 1, 2019, before U.S. Magistrate Judge Steven C. Mannion in Newark federal court. Mannam and Silva appeared before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court on June 25, 2019; Mane appeared before Judge Wettre on June 27, 2019. All were released on $250,000 bond.
According to the documents filed in this case and statements made in court:
Mane, Mannam, and Vemuri controlled two IT staffing companies located in Middlesex County, New Jersey – Procure Professionals Inc. and Krypto IT Solutions Inc. Silva and Mannam also controlled another New Jersey staffing company, referred to in the complaint as “Client A.” The defendants used Procure and Krypto to recruit foreign nationals and sponsor them for H-1B visas, which allow recipients to live and work temporarily in the U.S. in positions requiring specialized skills. To expedite their visa applications, the defendants caused Procure and Krypto to file H-1B applications falsely asserting that the foreign worker/beneficiaries had already secured positions at Client A, when, in reality, no such positions existed. Instead, the defendants used these fraudulent applications to build a “bench” of job candidates already admitted to the United States, who could then be hired out immediately to client companies without the need to wait through the visa application process, giving the defendants an advantage over their competitors in the staffing industry.
The conspiracy charge carries a maximum potential penalty of five years in prison and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Brian Michael; U.S. Citizenship and Immigration Services, Newark Office of Fraud Detection and National Security; the USCIS National Benefits Center; and the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Sarah A. Sulkowski of the U.S. Attorney’s Office’s Public Protection Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Engineering Firms’ CPA Sentenced to Prison for Role in Tax SchemeRead the Press Release
Michael H. Higa, the Certified Public Accountant (CPA) and controller of several engineering businesses, was sentenced yesterday to 40 months in prison in Honolulu, Hawaii, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Kenji M. Price for the District of Hawaii.
On Nov. 20, 2018, a jury convicted Higa of conspiracy to defraud the United States along with co-conspirator Wagdy Guirguis. In addition to the conspiracy conviction, Higa was also convicted of one count of assisting in the preparation of a false tax return. The convictions arose from a scheme to divert funds from Guirguis’ business entities for his own personal benefit and to avoid the payment of federal employment taxes, corporate and individual income taxes, and Internal Revenue Service (IRS) penalties.
According to the evidence presented at trial, Guirguis operated numerous engineering businesses. Higa, a CPA, was the controller of these businesses. Higa also served as a nominee officer of another entity controlled by Guirguis. When the IRS determined Guirguis’ businesses owed over $800,000 in federal employment taxes and assessed an $812,000 penalty, Guirguis and Higa took steps to place income and assets out of the reach of the IRS. For instance, Guirguis and Higa used a nominee entity to fraudulently convey a condominium to Guirguis’ wife. After an IRS revenue officer began questioning Mrs. Guirguis’ sole ownership of this condominium, Guirguis and Higa instructed a bookkeeper to alter the books and records in an attempt to conceal this transaction from the IRS.
From 2001 through 2012, Guirguis and Higa also used a nominee entity to divert approximately $1.3 million from Guirguis’ businesses for Guirguis’ personal use. As a result of their diversion and concealment efforts, Guirguis’ 2010 through 2012 returns omitted $553,000 in income, resulting in a tax deficiency of $165,000. In addition, Higa prepared a false corporate income tax return for one of Guirguis’ entities that failed to report over $1.3 million in gross receipts.
In addition to the term of imprisonment, U.S. District Judge Helen Gillmor ordered Higa to serve three years of supervised released and to pay $2,045,544.97 (jointly and severally with his co-defendant Guirguis) in restitution to the IRS.
On June 27, Guirguis was sentenced to five years in prison. In addition, Judge Gillmor ordered Guirguis to serve three years of supervised released and to pay $3,078,157.81 in restitution to the IRS minus any payments already made to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and United States Attorney Price thanked special agents of IRS-Criminal Investigation, who investigated the case, and Tax Division Senior Litigation Counsel John Sullivan and Trial Attorney Anahi Cortada and Assistant United States Attorney Rebecca Perlmutter, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Electrical Engineer Convicted of Conspiring to Illegally Export to China Semiconductor Chips with Missile Guidance ApplicationsRead the Press Release
LOS ANGELES – An electrical engineer has been found guilty of multiple federal criminal charges related to a scheme to illegally obtain integrated circuits with military applications that were exported to China without the required export license, the Justice Department announced today.
Yi-Chi Shih, 64, a part-time Los Angeles resident, was found guilty on June 26 of conspiracy to violate the International Emergency Economic Powers Act (IEEPA), a federal law that makes illegal, among other things, certain unauthorized exports. The jury also found Shih guilty of mail fraud, wire fraud, subscribing to a false tax return, making false statements to a government agency, and conspiracy to gain unauthorized access to a protected computer to obtain information. Shih was convicted of all 18 counts in a federal grand jury indictment.
The guilty verdicts were announced today, one day after United States District Judge John A. Kronstadt discharged the jury that returned the guilty verdicts last week. That jury previously had been scheduled today to consider allegations in the indictment against Shih that seek the forfeiture of hundreds of thousands of dollars. Judge Kronstadt, who presided over a trial that spanned seven weeks, decided on Monday that he will later consider the forfeiture allegations.
Judge Kronstadt will also schedule a sentencing hearing, where Shih will face a statutory maximum sentence of 219 years in federal prison.
“This defendant schemed to export to China semiconductors with military and civilian uses, then he lied about it to federal authorities and failed to report income generated by the scheme on his tax returns,” said United States Attorney Nick Hanna. “My office will enforce laws that protect our nation’s intellectual property from being used to benefit foreign adversaries who may compromise our national security.”
“The Department’s China Initiative is focused on preventing and prosecuting thefts of American technology and intellectual property for the benefit of China,” said Assistant Attorney General for National Security John C. Demers. “The defendant has been found guilty of conspiring to export sensitive semiconductor chips with military applications to China. I would like to thank the prosecutors and agents, including those from the Royal Canadian Mounted Police, for their efforts in this successful investigation and prosecution.”
“The FBI is committed to protecting institutions from adversaries who seek to steal sensitive American technology under the guise of research,” said Paul Delacourt, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “We will continue to work collaboratively with our federal partners to identify and hold accountable individuals who plunder our research or intellectual property at the expense of the American people and our national security.”
According to the evidence presented at trial, Shih and co-defendant Kiet Ahn Mai, 65, of Pasadena, conspired to illegally provide Shih with unauthorized access to a protected computer of a United States company that manufactured wide-band, high-power semiconductor chips known as monolithic microwave integrated circuits (MMICs).
Shih defrauded the U.S. company out of its proprietary, export-controlled items, including its design services for MMICs, according to trial evidence. As part of the scheme, Shih accessed the victim company’s computer systems via its web portal after Mai obtained that access by posing as a domestic customer seeking to obtain custom-designed MMICs that would be used solely in the United States. Shih used Mai to conceal his true intent to export the U.S. company’s MMICs to the People’s Republic of China. The MMICs that Shih sent to China required a license for national security reasons from the Commerce Department before being exported to China, and a license was never sought or obtained for this export.
The victim company’s semiconductor chips have a number of commercial and military applications, and its customers include the Air Force, Navy, and the Defense Advanced Research Projects Agency. MMICs are used in missiles, missile guidance systems, fighter jets, electronic warfare, electronic warfare countermeasures and radar applications.
“This investigation demonstrates the Office of Export Enforcement’s strong commitment to enforcing our nation’s export control and public safety laws,” said Richard B. Weir, Special Agent in Charge of the U.S. Department of Commerce’s Office of Export Enforcement. “We will continue to work with our law enforcement partners to identify, deter, and keep the most sensitive U.S.-origin goods and technology out of the most dangerous hands.”
Shih was the President of Chengdu GaStone Technology Company (CGTC), a Chinese company that was building a MMIC manufacturing facility in Chengdu. In 2014, CGTC was placed on the Commerce Department’s Entity List, according to court documents, “due to its involvement in activities contrary to the national security and foreign policy interest of the United States – specifically, that it had been involved in the illicit procurement of commodities and items for unauthorized military end use in China.”
Shih used a Hollywood Hills-based company he controlled – Pullman Lane Productions, LLC – to funnel funds provided by Chinese entities to finance the manufacturing of the MMICs by the victim company. Pullman Lane received financing from a Beijing-based company that was placed on the Entity List the same day as CGTC “on the basis of its involvement in activities contrary to the national security and foreign policy interests of the United States,” according to court documents.
“Today’s announcement serves as a reminder that the government will hold individuals accountable who intend to profit from the theft of United States protected technology and conceal the proceeds derived from this activity,” stated IRS Criminal Investigation Special Agent in Charge Ryan L. Korner. “The IRS plays an important role in tracing illicit funds through both domestic and international financial intuitions. Let this conviction serve as a warning to those who are considering similar conduct.”
Shih and Mai were indicted in this case in January 2018. Mai pleaded guilty in December 2018 to one felony count of smuggling and is scheduled to be sentenced on September 19, at which time he will face a statutory maximum sentence of 10 years in federal prison.
This case was investigated by the Federal Bureau of Investigation; the U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement; and IRS Criminal Investigation, with assistance from the Royal Canadian Mounted Police.
The matter is being prosecuted by Assistant United States Attorneys Judith A. Heinz, Melanie Sartoris, Khaldoun Shobaki and William Rollins of the National Security Division, Assistant United States Attorney James C. Hughes of the Major Frauds Section, Assistant United States Attorney John J. Kucera of the Asset Forfeiture Section, and Trial Attorney Matthew Walczewski of the Department of Justice’s National Security Division.
Electrical Engineer Convicted of Conspiring to Illegally Export to China Semiconductor Chips with Missile Guidance ApplicationsRead the Press Release
An electrical engineer has been found guilty of multiple federal criminal charges, including engaging in a scheme to illegally obtain integrated circuits with military applications that later were exported to China without the required export license. Assistant Attorney General for National Security John C. Demers, U.S. Attorney Nicola T. Hanna for the Central District of California and Assistant Director in Charge Paul Delacourt of the FBI’s Los Angeles Field Office made the announcement.
After a six-week trial, Yi-Chi Shih, 64, a part-time Los Angeles resident, was found guilty on June 26 of conspiracy to violate the International Emergency Economic Powers Act (IEEPA), a federal law that makes illegal, among other things, certain unauthorized exports. The jury also found Shih guilty of mail fraud, wire fraud, subscribing to a false tax return, making false statements to a government agency and conspiracy to gain unauthorized access to a protected computer to obtain information. Shih was convicted of all 18 counts in a federal grand jury indictment.
United States District Judge Kronstadt, who presided over a trial that spanned seven weeks in Los Angeles, California, decided on Monday that he will later consider the forfeiture allegations in the indictment, where the government is seeking that Shih should forfeit hundreds of thousands of dollars. Judge Kronstadt discharged the jury that previously had been scheduled today to consider forfeiture allegations against Shih.
United States District Judge John A. Kronstadt will also schedule a sentencing hearing, where Shih faces a statutory maximum sentence of 219 years in federal prison.
“The Department’s China Initiative is focused on preventing and prosecuting thefts of American technology and intellectual property for the benefit of China,” said Assistant Attorney General Demers. “The defendant has been found guilty of conspiring to export sensitive semiconductor chips with military applications to China. I would like to thank the prosecutors and agents, including those from the Royal Canadian Mounted Police, for theirs efforts in this successful investigation and prosecution.”
“This defendant schemed to export to China semiconductors with military and civilian uses, then he lied about it to federal authorities and failed to report income generated by the scheme on his tax returns,” said United States Attorney Nick Hanna. “My office will enforce laws that protect our nation’s intellectual property from being used to benefit foreign adversaries who may compromise our national security.”
“The FBI is committed to protecting institutions from adversaries who seek to steal sensitive American technology under the guise of research,” said Assistant Director in Charge Delacourt. “We will continue to work collaboratively with our federal partners to identify and hold accountable individuals who plunder our research or intellectual property at the expense of the American people and our national security.”
According to the evidence presented at trial, Shih and co-defendant Kiet Ahn Mai, 65, of Pasadena, California, conspired to illegally provide Shih with unauthorized access to a protected computer of a United States company that manufactured wide-band, high-power semiconductor chips known as monolithic microwave integrated circuits (MMICs).
Shih defrauded the U.S. company out of its proprietary, export-controlled items, including its design services for MMICs, according to trial evidence. As part of the scheme, Shih accessed the victim company’s computer systems via its web portal after Mai obtained that access by posing as a domestic customer seeking to obtain custom-designed MMICs that would be used solely in the United States. Shih and Mai concealed Shih’s true intent to transfer the U.S. company’s products to the People’s Republic of China. The MMICs that Shih sent to China required a license from the Commerce Department before being exported to China, and a license was never sought or obtained for this export.
The victim company’s semiconductor chips have a number of commercial and military applications, and its customers include the Air Force, Navy and the Defense Advanced Research Projects Agency. MMICs are used in missiles, missile guidance systems, fighter jets, electronic warfare, electronic warfare countermeasures and radar applications.
The semiconductor chips at the heart of this case were shipped to Chengdu GaStone Technology Company (CGTC), a Chinese company that was building a MMIC manufacturing facility in Chengdu. Shih was the president of CGTC, which in 2014 was placed on the Commerce Department’s Entity List, according to court documents, “due to its involvement in activities contrary to the national security and foreign policy interest of the United States – specifically, that it had been involved in the illicit procurement of commodities and items for unauthorized military end use in China.”
Shih used a Hollywood Hills-based company he controlled – Pullman Lane Productions LLC – to funnel funds provided by Chinese entities to finance the manufacturing of MMICs by the victim company. Pullman Lane received financing from a Beijing-based company that was placed on the Entity List the same day as CGTC “on the basis of its involvement in activities contrary to the national security and foreign policy interests of the United States,” according to court documents.
Shih and Mai were indicted in this case in January 2018. Mai pleaded guilty in December 2018 to one felony count of smuggling and is scheduled to be sentenced on September 19, at which time he will face a statutory maximum sentence of 10 years in federal prison.
This case was investigated by the Federal Bureau of Investigation; the U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement; and IRS Criminal Investigation, with assistance from the Royal Canadian Mounted Police.
The matter is being prosecuted by Assistant United States Attorneys Judith A. Heinz, Melanie Sartoris, Khaldoun Shobaki and William Rollins of the National Security Division, Assistant United States Attorney James C. Hughes of the Major Frauds Section, Assistant United States Attorney John J. Kucera of the Asset Forfeiture Section, and Trial Attorney Matthew Walczewski of the Department of Justice’s National Security Division.
Doctor Who Operated Oxycodone and Fentanyl Diversion Scheme Sentenced to 5 Years in PrisonRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that ERNESTO LOPEZ, a New York-licensed medical doctor who wrote thousands of medically unnecessary prescriptions for oxycodone and fentanyl over an approximately three-year period, was sentenced today in Manhattan federal court to five years in prison. LOPEZ was previously found guilty, in February 2019, of conspiring to distribute narcotics and distribution of narcotics after a jury trial before United States District Judge Denise L. Cote, who imposed today’s sentence.
U.S. Attorney Geoffrey S. Berman stated: “Today’s sentence serves as a message that a doctor who doles out narcotics without regard to his patients’ medical needs and addictions is no more than a drug dealer. Lopez will serve a substantial sentence for his reprehensible conduct, having betrayed the public’s and his patients’ trust for his own financial gain.”
According to the allegations contained in the Complaint, Indictment, Superseding Indictment, evidence presented during the trial, and statements made in Manhattan federal court:
Oxycodone and fentanyl are highly addictive, narcotic opioids that are used to treat severe pain conditions. Oxycodone prescriptions are in high demand and have significant cash value to drug dealers, who sell them on the street for large amounts of money. For example, 30-milligram oxycodone tablets have a current street value of approximately $20 to $30 per pill in New York City, with street prices even higher in other parts of the country. Thus, a single prescription for 120 30-milligram tablets of oxycodone can net an illicit distributor $2,400 in cash or more. Fentanyl patches are also commonly abused and sold for cash on the street by drug dealers. Because it is so potent, fentanyl frequently results in overdoses that can lead to respiratory depression and death.
From approximately 2015 until his arrest in November 2017, LOPEZ operated medical clinics located in New York, New York; Jackson Heights, New York; and Franklin Square, New York, where LOPEZ wrote thousands of prescriptions for large quantities of oxycodone and fentanyl in exchange for cash payments. In total, LOPEZ wrote prescriptions for nearly one million oxycodone pills, with a street value of approximately $20 million. LOPEZ typically charged $200 to $300 in cash for patient visits, despite the fact that nearly 80 percent of his patients maintained health insurance. During many of these visits, LOPEZ performed no meaningful physical examination of patients and did not attempt to diagnose them. LOPEZ prescribed large quantities of oxycodone, most frequently 120 30-milligram tablets, and fentanyl patches, often to patients who demonstrated clear signs of drug addiction and whose test results showed that they were not taking – and therefore were redistributing – the oxycodone he prescribed.
In addition to prescribing medically unnecessary oxycodone and fentanyl patches, LOPEZ also prescribed to many patients a fentanyl-based spray intended to treat breakthrough cancer pain, for which those patients had no legitimate medical need. In connection with those prescriptions, LOPEZ submitted an application to INSYS Therapeutics to join a “speaker’s program,” wherein doctors received payments in exchange for prescribing the fentanyl-based spray to patients.
At the time of LOPEZ’s arrest, agents recovered hundreds of fentanyl sprays and patches from the closet of his residence, along with approximately $729,000 in cash.
* * *
In addition to the prison sentence, LOPEZ, 76, of Flushing, New York, was sentenced to three years of supervised release, was ordered to pay a fine in the amount of $50,000, and was ordered to forfeit $1,400,000.
Mr. Berman praised the outstanding investigative work of the DEA’s New York Tactical Diversion Squad. Mr. Berman also thanked the New York City Police Department, the Department of Health and Human Services, the New York City Department of Investigation, the New York State Office of the Medicaid Inspector General, the New York City Human Resources Administration, the Nassau County Police Department and Asset Forfeiture Unit, the Nassau County District Attorney’s Office, the New York County District Attorney’s Office, and the New York State Department of Financial Services for their work on the investigation.
Parts of this case were conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
This matter is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Nicholas Folly, Elizabeth Hanft, Michael McGinnis, and Daniel Richenthal are in charge of the prosecution.