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Friday 17 May 2019
Former Washington State Bank CEO Sentenced to One Year in Prison for Multi-Year Tax Fraud of more than $865,000Read the Press Release
The former Chief Executive Officer of a Pacific Northwest community bank was sentenced today in U.S. District Court in Wisconsin to one year and a day in prison and one year of supervised release and a $150,000 fine for filing a false tax return, announced U.S. Attorney Brian T. Moran. Between 2010 and 2016, VICTOR KARPIAK, 64, now of La Crosse, Wisconsin, failed to report more than $2.3 million in income on his taxes. KARPIAK previously served as President and CEO of First Savings Bank Northwest based in Renton, Washington. He retired in 2013 and moved from the Seattle area. KARPIAK was charged in the Western District Washington, but chose to have the case resolved near his new home in Wisconsin. U.S. District Judge William M. Conley imposed the sentence.
According to records filed in the case, between 2010 and 2016, KARPIAK served as a trustee and consultant for a woman who was the beneficiary of a family and a marital trust. KARPIAK became a trustee because the woman’s late husband was a significant customer for the bank. Over those years, KARPIAK paid himself fees of $3,265,072 but on his taxes KARPIAK reported less than a third of that income ($943,322). The tax loss on more than $2,321,750 in income is $867,540. KARPIAK will pay $867,540 to the IRS as well as any interest or civil penalties the IRS imposes in the case. The interest alone in this case could total more than $143,647.
In their sentencing memo, prosecutors noted that that KARPIAK engaged in the tax fraud even as he earned significant salary and benefits as the bank CEO. “Our system of government relies on individuals --- particularly high-earners such as Karpiak --- to pay a modest portion of earnings toward communal projects and programs… (T)he true victim of Karpiak’s greed remains the public and his fellow taxpayers, from whom he effectively stole,” prosecutors wrote in their sentencing memo. Now with four homes across two states, multiple luxury vehicles and a pension alone of more than $150,000 annually, KARPIAK did not need to cheat on his taxes to make ends meet. As part of his sentencing hearing, KARPIAK made a payment on his tax obligation of more than $1 million.
“Today Mr. Karpiak was held accountable for willfully and intentionally violating his legal duty to declare and pay his taxes,” said Justin Campbell, IRS Criminal Investigation Special Agent in Charge, Seattle Field Office. “The U.S. tax system works because honest law-abiding taxpayers know that everyone, including corporate officers, are paying their fair share.”
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI) and is being prosecuted by Assistant United States Attorneys Steven Masada of the Western District of Washington and Elizabeth Altman of the Western District of Wisconsin.
Former VA Podiatry Chief and Sacramento CEO Convicted for Health Care Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — A federal jury found Anthony Lazzarino, 68, former Chief of Podiatry for the Veterans Affairs’ (VA) Northern California Health Care System, and Peter Wong, 61, founder and CEO of Sunrise Shoes and Pedorthic Service Corporation, guilty of health care fraud and conspiracy to commit wire fraud, U.S. Attorney McGregor W. Scott announced.
According to evidence presented at trial, between March 2008 and February 2015, Lazzarino and Wong engaged in a scheme to defraud the VA by billing for custom work and services that were prescribed but not supplied in shoes delivered to veterans. In addition, Lazzarino, Wong, and Jai Aing Chen, who separately pleaded guilty on December 6, 2016, agreed to make materially false statements to the VA regarding where the shoes were manufactured, in the course of applying for a national contract worth over $11 million per year.
This case is the product of an investigation by the Department of Veterans Affairs Office of Inspector General, Department of Veterans Affairs Police Service, Homeland Security Investigations, and Federal Bureau of Investigation. Assistant U.S. Attorneys Matthew M. Yelovich and Lee S. Bickley are prosecuting the case.
Lazzarino and Wong are scheduled to be sentenced by U.S. District Judge John A. Mendez on August 27. They face a maximum statutory penalty of 10 years in prison and a $250,000 fine for each health care fraud count, and five years in prison and a $250,000 fine for the wire fraud conspiracy count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former UNF Student Pleads Guilty to Distributing Child Sex Abuse Video over the InternetRead the Press Release
Jacksonville, Florida – Anthony Davis Stagnitta (22, St. Petersburg) has pleaded guilty to distributing child sex abuse videos using the internet. Stagnitta faces a mandatory minimum penalty of 5 years, and up to 20 years, in federal prison, as well as a potential life term of supervised release. A sentencing date has not yet been set.
According to court documents, in February 2018, agents from Homeland Security Investigations (HSI) began an investigation into the sexual exploitation of children that was occurring on a popular messaging application. The agents discovered that between November 24 and December 3, 2017, Stagnitta had engaged in online conversations with other users in a public group chat on the app and had discussed trading child pornography. On December 3, 2017, Stagnitta sent a video to the group that depicted the sadistic sexual abuse of an infant.
On April 30, 2018, HSI agents executed a search warrant at Stagnitta’s home in Jacksonville. During an interview, Stagnitta admitted that he had discussed child pornography using this app, had sent videos of child pornography to other users via private messaging, and had posted videos in the group chats. Forensic analysis of Stagnitta’s cellphone revealed that it contained 2,904 images depicting young children being sexually abused.
This case was investigated by the U.S. Department of Homeland Security, Homeland Security Investigations and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Port Vue Man Orchestrated 2 Large Shipments of Heroin from Patterson, New Jersey to Pittsburgh AreaRead the Press Release
PITTSBURGH, Pa. - A former resident of Port Vue, Pennsylvania, pleaded guilty in federal court to charges of conspiracy to distribute and possession with intent to distribute one kilogram or more of heroin, United States Attorney Scott W. Brady announced today.
Jarran Bell, 38, formerly of Port Vue, PA, pleaded guilty to three counts before United States District Court Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that, this investigation, which utilized Title III intercepts from December 2014 through April 2015 of several different cellular telephones, surveillance, controlled drug purchases, and other investigative techniques, established the existence of a number of overlapping and interrelated drug distribution networks at work in the Western District of Pennsylvania and New Jersey.
Bell and his girlfriend Krystle Barretto were living together during the investigation. Bell and Barretto maintained numerous other residences, which were used as stash houses. Amanda Santiago lived in one of those residences during the investigative period.
In April of 2015, Bell and Barretto orchestrated two large shipments of heroin from Patterson, New Jersey, back to the McKeesport/Port Vue area. On April 19, 2015, a courier, Amanda Santiago, transported approximately 500 bricks of heroin from Patterson, New Jersey back to McKeesport via taxi cab.
On April 20, 2015, several search warrants were conducted. One of the search warrants took place at the primary residence of Bell and Barretto. Agents seized: a loaded firearm, approximately five bricks of heroin and a money counter. All of the aforementioned items were seized from the master bedroom of Bell and Barretto. The loaded gun was located in a dresser drawer along with the five bricks of heroin. Baretto was the lawful owner of the firearm.
Judge Bissoon scheduled sentencing for September 11, 2019. Judge Bissoon ordered Bell remained detained pending sentencing. The law provides for a term of imprisonment of not less than 15 years to a maximum of life. A fine not to exceed $20,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Amanda Santiago pleaded guilty and was sentenced to 2 ½ years (30 months) in prison. Krystle Barretto pleaded guilty and is scheduled to be sentenced on June 19, 2019.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Bell.
Former Manager Sentenced to Federal Prison for Embezzling over $500,000 from Naknek Electric AssociationRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that a Naknek woman has been sentenced for embezzling approximately $510,181 from Naknek Electric Association (NEA), an organization receiving federal funds.
Donna Vukich, 60, of Naknek, Alaska, was sentenced yesterday by Chief U.S. District Judge Timothy Burgess to serve 34 months in prison, followed by three years of supervised release. In January 2019, Vukich pleaded guilty to theft concerning a program receiving federal funds, and filing a false tax return. Vukich has repaid $510,181 in restitution to NEA.
According to court documents, from January 2011 through December 2015, Vukich was the General Manager of NEA. As part of her duties as General Manager, Vukich was in possession of a company-owned credit account for the purpose of making business purchases for NEA. During this time, Vukich paid approximately $510,181 in unauthorized personal expenses with a company credit card and used NEA funds to pay the credit card bill. The unauthorized expenditures included paying for travel, for her daughter’s college tuition, cash advances, and entertainment items for her, her family, and friends. Vukich spent approximately $51,000 at Norwegian Cruise Lines, approximately $62,000 on Alaska Airlines flights, approximately $16,000 at Little Creek Casino Hotel and Resort in Washington, and approximately $7,000 at dōTERRA.
As General Manager, Vukich was responsible for the financial reporting of NEA, to include overseeing the identification of expenditures and assigning the expenses to various general ledger accounts. The investigation revealed that Vukich falsely assigned the charges for her personal expenditures to multiple general ledger expense accounts in order to conceal the nature of her unauthorized expenditures.
The investigation further revealed that Vukich intentionally filed false income tax returns for calendar years 2011 through 2015. She willfully did not report the amount of money she had knowingly converted from NEA during those years, which resulted in a tax loss to the United States of $138,689.
IRS Criminal Investigation (IRS-CI) conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorneys Aunnie Steward and Anne Veldhuis.
Former High School Counselor Sentenced for Mail Fraud Scheme Inflating Daughter's Grades to Obtain College ScholarshipsRead the Press Release
BECKLEY, W.Va. – United States Attorney Mike Stuart announced that Mellissa Krystynak, 49, of St. Lucie, Florida, was sentenced to six months in prison for a mail fraud scheme she executed while employed as a counselor at Greenbrier West High School, in Charmco, Greenbrier County, West Virginia. She was also ordered to pay $13,750 in restitution to the victim scholarship organizations, and she was fined an additional $5,000.
“A college admission scandal right here in West Virginia. Hiking a daughter’s grades and changing a daughter’s boyfriend’s grades are both new ones on me. Although every parent with a teenager appreciates the fantasy, you just can’t do it even if you want to,” said United States Attorney Mike Stuart. “Krystynak abused her position of authority to inflate her daughter’s grades and, adding even more harm, to use those fake grades to obtain college scholarships. Everyone deserves a level playing field.”
Krystynak was a school counselor at Greenbrier West from 2011 until 2017. While she was employed there, two of her children attended the school. Krystynak used her position as a counselor to gain access to the school’s computerized grading programs to inflate at least thirty-four of her oldest daughter’s grades. Her daughter then used the inflated grades to apply for and receive over ten different college scholarships with a potential benefit of over $20,000. These scholarships were based on applications containing the fraudulent grades and transcripts. Krystynak also changed one of the grades of her younger daughter’s boyfriend from a course he withdrew from and received no grade to an “A.”
United States District Judge Irene Berger imposed the sentence. Former Assistant United States Attorney Gabriel Wohl and Assistant United States Attorney Steve Loew handled the prosecution. The investigation was conducted by the United States Department of Education, Office of Inspector General.
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Former CIA Officer Sentenced to Prison for EspionageRead the Press Release
ALEXANDRIA, Va. – A former Central Intelligence Agency case officer was sentenced today to 20 years in prison for his transmission of national defense information to an agent of the People’s Republic of China.
“Mallory not only put our country at great risk, but he endangered the lives of specific human assets who put their own safety at risk for our national defense,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “There are few crimes in this country more serious than espionage, and this office has a long history of holding accountable those who betray our country. As the Chinese continue to attempt to identify and recruit current and former members of the United States intelligence community, those individuals should remain vigilant and report any suspicious activity to the appropriate security officials. This case should send a message to anyone considering violating the public’s trust and compromising our national security by disclosing classified information. We will remain steadfast and dogged in pursuit of these challenging but critical national security cases.”
According to court records and evidence presented at trial, in March and April 2017, Kevin Patrick Mallory, 62, of Leesburg, travelled to Shanghai and met with an individual, Michael Yang, who held himself out as a People’s Republic of China think tank employee. However, Mallory stated that he quickly concluded Yang was working for the People’s Republic of China Intelligence Service (PRCIS) as a Chinese Intelligence Officer.
“Former U.S. Intelligence officer Kevin Patrick Mallory will spend the next 20 years of his life in prison for conspiring to pass national defense information to a Chinese intelligence officer,” said Assistant Attorney General John Demers. “This case is one in an alarming trend of former U.S. intelligence officers being targeted by China and betraying their country and colleagues. This sentence, together with the recent guilty pleas of Ron Hansen in Utah and Jerry Lee in Virginia, deliver the stern message that our former intelligence officers have no business partnering with the Chinese, or any other adversarial foreign intelligence service.”
Mallory, a United States citizen who speaks fluent Mandarin Chinese, consented to an FBI review of a covert communications (covcom) device he had been given by Yang to facilitate covert communications between the two. Analysis of the device, which was a Samsung Galaxy smartphone, revealed a number of communications in which Mallory and Yang talked about classified information that Mallory could sell to the PRCIS. FBI analysts were able to determine that Mallory had completed all of the steps necessary to securely transmit at least five classified U.S. government documents via the covcom device, one of which contained unique identifiers for human sources who had helped the United States government. At least two of the documents were successfully transmitted, and Mallory and Yang communicated about those two documents on the covcom device.
“U.S. Government employees are trusted to keep the nation’s secrets safe,” said FBI Washington Field Office’s Assistant Director in Charge, Nancy McNamara, “and this case shows the violation of that trust and duty will not be accepted. The targeting of former U.S. security clearance holders by foreign intelligence services is a constant threat we face, and the FBI will continue to preserve and combat these threats head on. I would like to thank the men and women of the FBI, and our counterparts at the Department of Justice, for their years of hard work to investigate and prosecute this case.”
Evidence presented at trial included surveillance video from a FedEx store in Leesburg where Mallory could be seen scanning classified at the Secret and Top Secret level onto a micro SD card. Though Mallory paid to have the paper copies of the eight documents shredded, FBI agents found a carefully concealed SD card containing those documents during a search of Mallory’s home, the day of his June 22, 2017 arrest. A recording was played at trial from June 24, 2017, where Mallory could be heard on a call from the jail asking his family to search for the hidden SD card.
Mallory has held numerous positions with various government agencies and several defense contractors, including working as a covert case officer for the CIA and an intelligence officer for the Defense Intelligence Agency (DIA). As required for his various government positions, Mallory obtained a Top Secret security clearance, which was active during various assignments during his career. Mallory’s security clearance was terminated in October 2012 when he left government service.
Mallory was found guilty by a federal jury in June 2018 of conspiracy to deliver, attempted delivery, delivery of national defense information to aid a foreign government, and making material false statements. The district court subsequently ordered acquittal of the delivery and attempted delivery of national defense information counts due to lack of venue.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, John C. Demers, Assistant Attorney General for National Security, and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis III. Assistant U.S. Attorneys John T. Gibbs and Colleen E. Garcia, and Trial Attorneys Jennifer Kennedy Gellie and Evan Turgeon of the National Security Division’s Counterintelligence and Export Control Section 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. 1:17-cr-154.
Former CIA Officer Sentenced to Prison for EspionageRead the Press Release
Kevin Patrick Mallory, 62, of Leesburg, Virginia, was sentenced today to 20 years in prison to be followed by five years of supervised release after being convicted under the Espionage Act for conspiracy to transmit national defense information to an agent of the People’s Republic of China. Assistant Attorney General for National Security John C. Demers, U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia and Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis III.
“Former U.S. Intelligence officer Kevin Patrick Mallory will spend the next 20 years of his life in prison for conspiring to pass national defense information to a Chinese intelligence officer,” said Assistant Attorney General John Demers. “This case is one in an alarming trend of former U.S. intelligence officers being targeted by China and betraying their country and colleagues. This sentence, together with the recent guilty pleas of Ron Hansen in Utah and Jerry Lee in Virginia, deliver the stern message that our former intelligence officers have no business partnering with the Chinese, or any other adversarial foreign intelligence service.”
“Mallory not only put our country at great risk, but he endangered the lives of specific human assets who put their own safety at risk for our national defense,” said. U.S. Attorney Terwilliger. “There are few crimes in this country more serious than espionage, and this office has a long history of holding accountable those who betray our country. As the Chinese continue to attempt to identify and recruit current and former members of the United States intelligence community, those individuals should remain vigilant and report any suspicious activity to the appropriate security officials. This case should send a message to anyone considering violating the public’s trust and compromising our national security by disclosing classified information. We will remain steadfast and dogged in pursuit of these challenging but critical national security cases.”
“U.S. Government employees are trusted to keep the nation's secrets safe,” said Assistant Director in Charge McNamara, “and this case shows the violation of that trust and duty will not be accepted. The targeting of former U.S. security clearance holders by foreign intelligence services is a constant threat we face, and the FBI will continue to preserve and combat these threats head on. I would like to thank the men and women of the FBI, and our counterparts at the Department of Justice, for their years of hard work to investigate and prosecute this case.”
Mallory was found guilty by a federal jury in June 2018 of conspiracy to deliver, attempted delivery, delivery of national defense information to aid a foreign government and making material false statements. The district court subsequently ordered acquittal as to the delivery and attempted delivery of national defense information counts due to lack of venue.
According to court records and evidence presented at trial, in March and April 2017, Mallory, a former U.S. intelligence officer, travelled to Shanghai to meet with an individual, Michael Yang, who held himself out as a People’s Republic of China think tank employee, but whom Mallory assessed to be a Chinese Intelligence Officer.
Mallory, a United States citizen who speaks fluent Mandarin Chinese, consented to an FBI review of a covert communications (covcom) device he had been given by Yang to facilitate covert communications between the two. Analysis of the device, which was a Samsung Galaxy smartphone, revealed a number of communications in which Mallory and Yang talked about classified information that Mallory could sell to the PRC’s intelligence service. FBI analysts were able to determine that Mallory had completed all of the steps necessary to securely transmit at least five classified U.S. government documents via the covcom device, one of which contained unique identifiers for human sources who had helped the United States government. At least two of the documents were successfully transmitted, and Mallory and Yang communicated about those two documents on the covcom device.
Evidence presented at trial included surveillance video from a FedEx store in Leesburg where Mallory could be seen scanning documents classified at the Secret and Top Secret level onto a micro SD card. Though Mallory paid to have the paper copies of the eight documents shredded, FBI agents found a carefully concealed SD card containing those documents during a search of Mallory’s home, the day of his June 22, 2017 arrest. A recording was played at trial from June 24, 2017, where Mallory could be heard on a call from the jail asking his family to search for the hidden SD card.
Mallory has held numerous positions with various government agencies and several defense contractors, including working as a covert case officer for the Central Intelligence Agency (CIA) and an intelligence officer for the Defense Intelligence Agency (DIA). As required for his various government positions, Mallory obtained a Top Secret security clearance, which was active during various assignments during his career. Mallory’s security clearance was terminated in October 2012 when he left government service.
Assistant U.S. Attorneys John T. Gibbs and Colleen E. Garcia, and Trial Attorneys Jennifer Kennedy Gellie and Evan Turgeon of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case.
Former Attorney Sentenced to Prison for Stealing $400K from Clients, Family Members and FriendRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ALAN GIACOMI, 46, of Watertown, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 41 months of imprisonment, followed by three years of supervised release, for stealing more than $400,000 from clients of his law practice, including family members, and a friend.
According to court documents and statements made in court, Giacomi was a Waterbury-based attorney who practiced real estate and family law. In August 2014, Giacomi represented an elderly woman in connection with the disbursement of assets from her late brother’s estate. Giacomi stole nearly $18,000 from the estate instead of distributing the assets as required.
In approximately December 2014, Giacomi stole more than $26,000 in proceeds from his great aunt’s life insurance annuity instead of using the funds to pay her nursing home bill.
In April 2016, Giacomi convinced a friend to loan Giacomi $45,000 for a real estate opportunity. His friend withdrew $45,000 from his retirement savings and provided the funds to Giacomi. Giacomi used the money to pay off another real estate transaction and never paid his friend back.
In the fall of 2016, Giacomi represented his aunt and uncle in the sale of their home. Giacomi kept nearly $177,000 of the proceeds of the sale and used much of the money on other client matters.
Finally, in February 2017, Giacomi represented two clients in the sale of their home. Giacomi stole approximately $154,000 in proceeds of the sale, nearly $146,000 of which was owed to Giacomi’s clients, spending almost all of the money within a month.
Judge Shea ordered Giacomi to pay restitution in the total amount of $411,715.69. Most, but not all, of the victims have been reimbursed by Connecticut’s Client Security Fund.
On January 8, 2019, Giacomi pleaded guilty to one count of wire fraud.
Judge Shea ordered Giacomi, who is released on a $100,000 bond, to report to prison on July 26.
In April 2017, a Connecticut Superior Court judge suspended Giacomi from the practice of law.
This matter was investigated by the U.S. Secret Service with the assistance of the Statewide Bar Grievance Committee. The case was prosecuted by Assistant U.S. Attorney Sarala V. Nagala.
Finance Director for Bucks County-based Company Charged with Wire FraudRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Matthew Chancler, 57, of Pottstown, Pennsylvania was charged by Information today with one count of wire fraud. The defendant was a Certified Public Accountant and the Director of Finance for an unnamed company located in Bristol, Pennsylvania. In this role, Chancler oversaw the financial operations of the company: accounts payable, accounts receivable, payroll, and auditing.
During an approximately two-year period, from August 2016 through July 2018, Chancler abused his position of trust by using company issued credit cards for over 1,800 personal purchases and over 400 cash withdrawals from ATMs, while disguising the true nature of these transactions in the company’s financial records in order to cover his tracks. Those personal purchases included clothing, electronics, food, travel, jewelry, sporting equipment, and other personal items and entertainment. In total, the defendant stole over $350,000 through his fraudulent use of the cards.
Chancler also manipulated the company’s payroll system to add additional funds to his own paycheck, citing them as “miscellaneous non-taxable income”. During the same time period, Chancler added several hundred dollars to each paycheck, totaling approximately $12,500.
“What’s most apparent here is the defendant’s alleged greed and willingness to abuse his position of authority,” said U.S. Attorney McSwain. “Businesses rely on professionals to maintain the financial health of their operations, as well as to abide by the law – not funnel money for their own personal use.”
If convicted, the defendant faces a maximum possible sentence of 20 years in prison.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Deputy United States Attorney Louis D. Lappen.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Federal Jury Convicts Champlin Man for String of Twin Cities RobberiesRead the Press Release
United States Attorney Erica H. MacDonald today announced the conviction of MARTAVIS SHAWN DEMAR JAMES, 38, for the robbery and attempted robbery of 10 Twin Cities businesses. Following a four-day trial before U.S. District Judge Susan Richard Nelson, the jury found JAMES guilty on all counts.
United States Attorney Erica MacDonald said, “Over the course of several weeks, Mr. James carried out a brazen crime wave across the Twin Cities, targeting businesses in densely populated areas and robbing employees at gunpoint. Under the Project Safe Neighborhoods initiative, I have dedicated significant resources to pursuing violent criminals and combating gun-related violent crime such as this. When it comes to protecting our communities, we will not relent.”
As proven at trial, between March and June of 2018, JAMES robbed or attempted to rob at least 10 businesses located across the Twin Cities metro area, including locations in Anoka, Hennepin, and Ramsey Counties. The robberies mostly involved CVS Pharmacy stores across the Twin Cities metropolitan area, as well as a Dollar Tree Store in Coon Rapids and a Blaine BigLots store. In each successful robbery instance, JAMES wore a black hooded coat, a black mask and black gloves. He would point a firearm at the store employee(s), demand access to the business safe, order the employee(s) to put the cash into a duffel bag, and order them to the ground before fleeing.
As proven at trial, after gathering information on the robberies, law enforcement identified JAMES and began conducting surveillance on him. On June 1, 2018, law enforcement agents followed JAMES as he drove to a CVS store in Eden Prairie. Law enforcement agents and officers, as well as CVS security personnel, were able to lock the front doors of the CVS store prior to JAMES’ arrival, preventing him from gaining entry when he ultimately approached. When JAMES returned to his vehicle he was apprehended law enforcement.
This case is the result of an investigation conducted by the Minneapolis Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Federal Bureau of Investigation, with assistance from multiple local agencies and departments that initially investigated the robberies that occurred in their jurisdictions. This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state, and local law enforcement to combat violent crime.
Assistant U.S. Attorney Allen A. Slaughter tried the case.
Defendant Information:
MARTAVIS SHAWN DEMAR JAMES, 38
Champlin, Minn.
Convicted:
- Hobbs Act Robbery, 8 counts
- Attempted Hobbs Act Robbery, 2 counts
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Federal Grand Jury Charges International Drug Smuggling Ring that Trafficked Kilograms of Cocaine, Heroin and MethamphetamineRead the Press Release
RIVERSIDE, California – A federal grand jury has charged 11 defendants on federal narcotics and money laundering charges stemming from a wiretap investigation into a drug trafficking ring that smuggled more than 107.8 kilograms (237.7 pounds) of cocaine, heroin, and methamphetamine from Mexico into the United States and Canada.
A federal indictment unsealed Thursday charged 11 defendants with conspiracy to distribute controlled substances, possession with intent to distribute controlled substances, and conspiracy to launder monetary instruments. This case is part of a larger wiretap investigation that altogether has resulted in federal indictments charging a total of 18 defendants.
According to the latest indictment, from May 2014 until October 2014, defendant Alvaro Maclovio Morales-Felix, a.k.a. “Pancho Panthera,” 42, of Mexico, arranged for kilogram quantities of narcotics from Mexico into the United States. Co-defendant Clovis Etzel Bravo-Silva, a.k.a. “Gordo,” “El Chavo de los 8s,” 37, of Nicaragua, then would coordinate the shipment and distribution of the narcotics via couriers from the United States into Canada. In one incident in October 2014, the defendants allegedly smuggled 24 kilograms of cocaine and heroin, stuffed in a spare tire, from Wilmington, California to Seattle and ultimately into Canada. In total, law enforcement seized 22.35 kilograms of heroin, 47.9 kilograms of cocaine, and 37.5 kilograms of methamphetamine.
The indictment also alleges that Bravo-Silva and Morales-Felix used co-defendant Manuel Enrique Valdes-Prado, 42, of Mexico, who owned an event ticket reselling business, to launder proceeds from the narcotics distribution, bring the proceeds from Canada into the United States, and then send them out to Morales-Felix in Mexico. For example, on May 21, 2014, Valdes-Prado allegedly deposited $110,691 in Canadian dollars ($97,352 in U.S. dollars) – the proceeds of the narcotics sales – into a bank account in Seattle. He then withdrew $19,000 in cash from the account from a bank branch in Chula Vista, California, then wired $55,601 to a bank account in Mexico, the indictment alleges.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was investigated by the Drug Enforcement Administration, the Internal Revenue Service, Criminal Investigation, the Los Angeles County Sheriff’s Department, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the Royal Canadian Mounted Police.
This matter is being prosecuted by Assistant United States Attorneys Tritia Yuen and Jerry C. Yang of the Riverside Branch Office.
Fayette County Man Sentenced to 78 Months for Fentanyl Trafficking and Firearm PossessionRead the Press Release
LEXINGTON, Ky. – Phillip Maurice Collins, 42, of Lexington, was sentenced to 78 months in federal prison today, by United States District Judge Danny C. Reeves, for possession with the intent to distribute fentanyl and cocaine, as well as possession of a firearm by a convicted felon.
On August 22, 2018, officers and detectives with the Lexington Police Department executed a search warrant on Collins’s home in Lexington. During the search, officers located quantities of fentanyl and cocaine possessed by Collins, with the intent to distribute it to other individuals. In addition to the narcotics, officers also located a loaded firearm in Collins’s bedroom. Collins had multiple prior felony convictions and was prohibited from possessing a firearm under state and federal law. Collins subsequently plead guilty to all charges, on January 30, 2019.
Under federal law, Collins must serve 85 percent of his sentence. Upon completion of his imprisonment, he will be under the supervision of the United States Probation Office for a period of six years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; D. Christopher Evans, Special Agent in Charge, DEA, Louisville Division; and Lawrence Weathers, Chief of Police, Lexington Police Department, jointly made the announcement.
Ellwood City Felon Pleads Guilty to Distributing Fentanyl, Illegally Possessing Pistols and AmmunitionRead the Press Release
PITTSBURGH -A felon from Ellwood City, Pennsylvania, pleaded guilty in federal court to charges of violating federal firearms and narcotics laws, United States Attorney Scott W. Brady announced today.
Derick Davare, 32, pleaded guilty to four counts before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that from in and around 2015, and continuing to on or about October 22, 2018, Davare conspired with others to distribute and possess with intent to distribute 400 grams or more of fentanyl, a Schedule II controlled substance. Additionally, on or about October 22, 2018, Davare, being a convicted felon, illegally possessed a F.N. (FN Herstal) Five-Seven, 57 Caliber Pistol, a Sig-Sauer P226 9mm Pistol with an obliterated serial number, 5.7 x .28 ammunition and 9mm ammunition. He also possessed additional rounds of ammunition on August 28, 2018. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year to possess a firearm or ammunition.
Judge Walton scheduled sentencing for September 20, 2019 at 9 a.m. The law provides for a total sentence of not less than ten years in prison and not more than life in prison, a fine of $15,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Brendan T. Conway and Marnie Sheehan-Balchon are prosecuting this case on behalf of the government.
A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation that led to the prosecution of Derick Davare. The task force is headed by the Drug Enforcement Administration and is comprised of members drawn from the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lawrence County Drug Task Force, Pennsylvania Office of Attorney General, Borough of Baldwin Police Department, McKees Rocks Police Department, Munhall Police Department, Allegheny County Sheriff’s Office, Pittsburgh Bureau of Police, and the Pennsylvania State Police. The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Eight people from Northwest Ohio indicted for firearms violations or armed robbery charges as part of a continued collaborative effort to reduce violent crime in the Toledo areaRead the Press Release
Eight people from Northwest Ohio were indicted for firearms violations or armed robbery charges as part of a continued collaborative effort to reduce violent crime in the Toledo area.
Among those indicted are people accused of illegally having firearms after domestic violence convictions, making illegal straw purchases of firearms, possessing stolen firearms, armed robbery and other offenses.
Indicted are: Brock Andrzejak, 23, of Toledo; Marco Roane, 35, of Sandusky; Teresa Jackson, 46, of Sandusky; Filmel Williams, Jr., 19, of Toledo; Joseph Mathis, 42, of Toledo; Willie Hall, 31, of Toledo; Marcus Bailey, 34, of Toledo, and James Robert Morgan, 33, of Bryan.
“These cases involve people who are not allowed to have firearms because of past crimes, such as domestic violence, as well as people lying to get guns or obtaining stolen weapons,” U.S. Attorney Justin E. Herdman said. “We will continue to work with police and federal agencies through Project Safe Neighborhoods and the Public Safety Partnership programs to make Toledo and Northwest Ohio safer.”
“Reducing gun crime is one of ATF’s core missions,” said ATF Special Agent in Charge Jonathan T. McPherson. “We are committed to working with our partners at the federal, state, and local level to investigate crime guns as well as identify and remove the most violent criminals from our streets.”
“While any one of these individual indictments on their own may not seem like a significant blow to overall violent crime, it is the totality of these cases that shows the significant work local and federal law enforcement partners are doing on a daily basis to make Toledo safer” said Toledo Police Chief George Kral. “As we have stated many times in the past, we appreciate our federal partnerships and we will continue to help bring federal cases against those who wish to do others harm in our community.”
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.
Toledo is also a National Public Safety Partnership city, in which the Justice Department selects cities for increased training and technical assistance focused on violent crime. Toledo, as a PSP city, was also selected last year for more than $492,000 in federal funding to pay for hardware and software designed to improve information-sharing capacity.
Andrzejak is charged with interference with commerce by threats of violence and brandishing a firearm in relation to a crime of violence. Andrzejak is accused of pointing a rifle at a cashier while robbing the Stop and Go on Bennett Road in Toledo.
Williams is charged with four counts of possession of stolen firearms and ammunition and three counts of possession of a firearm by a person adjudicated to be mentally defective. Williams on January 2, 2019, possessed a .45-caliber pistol, a 7.62x39mm rifle, a 5.56 pistol and ammunition, knowing the firearms were stolen. He also possessed firearms despite having been adjudicated by the Wayne County (Michigan) Probate Court to be mentally defective, according to the indictment.
Morgan was charged with possession of a firearm by a person with prior misdemeanor domestic violence convictions. Morgan, at various points in 2018 and 2019 possessed a Ruger .22-caliber pistol, a Smith & Wesson .38-caliber revolver, a German Sports Guns .22-caliber pistol and a Hermann Weihrauch .38-caliber revolver, despite a previous conviction for domestic violence, according to the indictment.
Mathis is charged with two counts of being a felon in possession of a firearm. Mathis possessed Taurus .380-caliber pistol and six rounds of ammunition on March 14, 2019, and a Smith & Wesson .380-caliber pistol and 34 rounds of ammunition on September 16, 2018, despite previous convictions for drug trafficking and possession of crack cocaine, according to the indictment.
Hall is charged with being a felon in possession of a firearm. Hall possessed a Smith & Wesson 40-caliber pistol and six rounds of ammunition on March 22, 2019, despite previous convictions for robbery, attempted burglary and having a weapon under disability, according to the indictment.
Roane and Jackson are charged with four counts of making false statements during the purchase of a firearm. Jackson falsely represented that she was the buyer of four firearms – a Savage Arms 5.56 rifle, a Glock 9 mm pistol, a Taurus 9 mm pistol and a Radical Firearms 5.56 pistol – between August 2017 and January 2019, when, in fact, Roane was the true buyer of the firearms, according to the indictment.
Bailey is charged with being a felon in possession of a firearm. Bailey had a 9 mm pistol and 16 rounds of ammunition on March 20, 2019, despite previous convictions for burglary and tampering with evidence, according to the indictment.
If convicted, the defendants’ sentence will be determined by the Court after review of factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Toledo Police Department and the Federal Bureau of Investigation. They are being prosecuted by Assistant U.S. Attorneys Matthew Simko, Robert Melching and Ashley Futrell.
An indictment is only a charge and is not evidence of guilt. The burden of proof is always on the government to prove a defendant guilty beyond a reasonable doubt.
Dominican National Sentenced for Fentanyl DistributionRead the Press Release
BOSTON – A Dominican national was sentenced yesterday in federal court in Boston for his role in a conspiracy to distribute fentanyl.
Sergio Manuel Lara-Suarez, a/k/a Sergio Manuel Lara-Juarez, 42, a Dominican national residing in Lawrence, was sentenced by U.S. District Court Judge Indira Talwani to 57 months in prison and five years of supervised release. Lara-Suarez will be subject to deportation proceedings upon completion of his sentence. In February 2019, Lara-Suarez pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl and multiple additional fentanyl distribution offenses, including distribution of more than 40 grams of fentanyl. Lara-Suarez has been in state custody since August 2018.
Between September 2017 and March 2018, Lara-Suarez and others conspired to distribute significant quantities of fentanyl or a mixture containing both fentanyl and heroin to undercover law enforcement officers. During that period, Lara-Suarez met with undercover agents on 11 separate occasions and sold them substances containing fentanyl that totaled over 430 grams.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division, made the announcement. Assistant U.S. Attorney Craig Estes of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
Dominican National Pleads Guilty to Illegal ReentryRead the Press Release
BOSTON – A Dominican national pleaded guilty today in federal court in Boston to illegally reentering the United States after being deported.
Jonathan Manuel Lara Troncoso, 32, a Dominican National residing in Lawrence, pleaded guilty to one count of illegal reentry of a deported alien. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for Aug. 15, 2019.
Lara Troncoso was convicted in Essex County under an alias of fentanyl trafficking and sentenced to three-to-five years in state prison. When he began his sentence, his fingerprints were taken and matched the prints on file for his true identity, which were taken when he was ordered deported in June 2006.
Lara Troncoso faces a sentence of no greater than two years in prison, up to one year of supervised release, and a fine of up to $250,000. He will be subject to deportation proceedings upon completion of his sentence. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Marcos D. Charles, Acting Field Office Director, Enforcement and Removal Operations, U.S. Immigration and Customs Enforcement, Boston, made the announcement today. Assistant U.S. Attorney Lindsey E. Weinstein of Lelling’s Major Crimes Unit is prosecuting the case.
Celina Physician Arrested on Federal Drug Distribution Charges While Preparing to Leave the United StatesRead the Press Release
NASHVILLE, Tenn. – May 17, 2019 – Gilbert Ross Ghearing, 65, of Livingston, Tennessee, a physician and owner of a family medical practice in Celina, Tennessee, was charged this morning in a criminal complaint with violating the Controlled Substances Act, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Ghearing was arrested at his practice in Celina, Tennessee this morning by federal agents and transported to Nashville to appear before a U.S. Magistrate Judge.
According to the complaint, Ghearing owns and operates a medical clinic in Celina, Tennessee and also provides medical services at other locations in Clay and Fentress Counties. The complaint alleges that between August 2016 and February 2019, Ghearing repeatedly violated the Controlled Substances Act by prescribing Schedule II and Schedule IV drugs, including benzodiazepines and opiates, outside the usual course of practice and not for a legitimate medical purpose.
The complaint details allegations of prescribing these drugs to patients who exhibited a high potential for abuse and had a past medical history of abuse, including multiple instances of overdoses. The complaint also alleges that Ghearing prescribed combinations of benzodiazepines and opiates, despite a warning issued by the U.S. Food & Drug Administration that combined use of these drugs results in serious side effects, including death.
Records filed with the Court also reflect that on May 15, 2019, Ghearing, while under investigation for federal offenses, booked a flight to depart on May 19, 2019, with a final destination to the Marshall Islands.
U.S. Magistrate Judge Alistair Newbern ordered Ghearing detained this afternoon, pending a detention and preliminary hearing on May 22, 2019.
If convicted, Ghearing faces up to 20 years in prison and a $1 million fine.
This case is being investigated by the Drug Enforcement Administration; U.S. Department of Health & Human Services-Office of Inspector General; and the Tennessee Bureau of Investigation. Assistant U.S. Attorney Sarah Bogni is prosecuting the case.
A criminal complaint is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
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Canadian Man Pleads Guilty to Attempting to Illegally Export Firearms from the U.S. to Dubai and ColumbiaRead 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 Aydan Sin, a/k/a Hon Chak Gordon Sin, a/k/a Andy, a/k/a Bullion, 47, of British Columbia, CA, pleaded guilty before U.S. District Judge Richard J. Arcara to violating the Arms Export Control Act. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that between November 2016 and April 2017, the defendant conspired with others, including Guy Deland, a/k/a Mark, a/k/a Security Prime, and Charan Singh, a/k/a Charlie, a/k/a Sunny, to export defense articles on the United States Munitions List (USML) in violation of United States law.
In November 2016, Singh began communicating with an undercover law enforcement agent (UCA), inquiring about whether the UCA could export firearms from the United States to the United Arab Emirates. During the communications, Sin, Deland, and Singh were advised by the UCA that a license was required from the United States Department of State in order to legally export the firearms. The defendants acknowledged the illegality of the attempted exports, provided an encrypted Blackberry device to the UCA for the purpose of secure, covert communications, and wired approximately $70,000 USD from Canada to the United States as a 50% down payment for the export of the goods.
On December 7, 2016, Sin, through telephone and email, requested the gun order include 9mm handguns and Uzi machine guns. On December 9, 2016, Sin told the UCA that rather than get an export license, he wanted the UCA to export the firearms “the wrong way.”
Subsequently, on January 10, 2017, the UCA emailed two revised invoices to Sin and Deland. One invoice was for the export to Dubai of three new Glock 9mm firearms, six magazines, two used Mini Uzi submachine guns, two suppressors, and 1,000 rounds of 9mm ammunition for the firearms, for a total cost of $20,575. The second invoice was for the export to Colombia (thru Panama) of 37 new Glock 9mm firearms, 74 magazines, 13 used Mini Uzi submachine guns, 13 suppressors, and 3,000 rounds of 9mm ammunition for the firearms, for a total cost of $121,175. Both invoices contained language stating that exporting these products was prohibited by law without an export license.
On February 6 and 7, 2017, an undercover bank account, located in the Western District of New York, received two bank wire transfers from a bank account in Canada, each in the amount of $34,990 USD, representing 50% of the total purchase price of the firearms, suppressors, and ammunition.
On March 10, 2017, Sin contacted the UCA and asked if the shipment of guns to Columbia would occur in a few days. On March 20, 2017, the UCA used existing sea freight shipment tracking numbers and told Sin and Deland that the firearms, suppressors, and ammunition were shipped to Jebel Ali, United Arab Emirates, and the shipment of guns to Columbia would occur on March 29, 2017. The UCA also provided them with the tracking information.
The firearms, suppressors, magazines, and ammunitions listed above are defense articles listed on the USML. Prior to the attempted export and export of these defense items from the United States, Sin was aware that an export license was required and at no time did he, or the actual exporter apply for, receive, or possess a license to export the items from the United States.
“The Arms Export Control Act was enacted to keep our country and our citizens safe and secure from the threat of the illicit trafficking of firearms,” said U.S. Attorney Kennedy. “When our safety and security are compromised by individuals such as this defendant, it threatens to destabilize the national security of our country, which in turn puts American citizens at risk. It is our duty to be vigilant in enforcing the laws designed to protect our national security.”
“HSI vigorously investigates criminal organizations that attempt to illegally export firearms, firearm parts, munitions, and sensitive technology to protect American citizens, our warfighters and our allies,” said Special Agent-in-Charge Kevin Kelly. “Counter-proliferation investigations are among HSI's top priorities to ensure that those who put our country at risk are brought to justice.”
Charges remain pending against defendants Guy Deland and Charan Singh. 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 Homeland Security investigations, under the direction of Special Agent-in-Charge Kevin Kelly. Additional assistance was provided by the Royal Canadian Mounted Police.
Sentencing is scheduled for August 26, 2019, at 12:30 p.m. before Judge Arcara.
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California Man Sentenced to 7 Years in Federal Prison for Fentanyl Trafficking OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that OMAR VILLARREAL, 27, of La Puente, California, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 84 months of imprisonment, followed by three years of supervised release, for fentanyl trafficking offenses.
According to court documents and statements made in court, on December 21, 2016, law enforcement officers stopped a tractor-trailer on Route 34 in Derby. A search of the cab of the tractor-trailer revealed a box that contained 25 kilograms of fentanyl. The driver of the vehicle, Erick Crespo-Escalante, was placed under arrest. Investigators learned that Crespo-Escalante was delivering the shipment of fentanyl to a location in Waterbury.
The investigation revealed that, in October 2016, Villarreal traveled from California to Connecticut to oversee the shipment of the narcotics to Connecticut. Villarreal took up residence in Waterbury for approximately one month to coordinate the delivery and established a “stash” location in Waterbury to which the shipment could be delivered. After returning to California, Villarreal engaged in multiple phone calls with Crespo-Escalante to arrange the delivery via tractor-trailer to Connecticut.
Villarreal has been detained since his arrest on May 15, 2017. On August 30, 2018, he pleaded guilty to one count of aiding and abetting the possession of fentanyl with intent to distribute, and one count of traveling in interstate commerce to promote an unlawful activity.
On April 4, 2017, Crespo-Escalante pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, fentanyl. On April 3, 2019, he was sentenced to 30 months of imprisonment. Crespo-Escalante, a citizen of Mexico and lawful permanent resident of the U.S., faces immigration proceedings when he is released from prison.
This matter was investigated by the Drug Enforcement Administration’s New Haven Task Force, which includes participants from the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia, Meriden, Derby, Middletown, Naugatuck and Waterbury Police Departments. The case was prosecuted by Assistant U.S. Attorney Dave Vatti.
Burlington Man Sentenced to Prison for Production of Child PornographyRead the Press Release
DAVENPORT, IA – On May 16, 2019, Kristin Daniel Horn, age 40, of Burlington, Iowa, was sentenced by United States District Court Chief Judge John A. Jarvey to 360 months imprisonment, after pleading guilty to Production of Child Pornography, announced United States Attorney Marc Krickbaum. Horn was ordered to serve ten years on supervised release to follow his prison term and pay $100 to the Crime Victims’ Compensation Fund.
This sentence was ordered to be served consecutively to a sentence of up to ten years for a conviction in Des Moines County, Iowa, for Sexual Abuse, Third Degree. Horn was convicted on May 19, 2014, and his sentence was discharged for that offense on July 5, 2018.
Horn pleaded guilty to the offense on January 16, 2019. Upon execution of a search warrant on Horn’s residence, officers recovered videos depicting child pornography produced by Horn. These videos were produced in February 2013.
This matter was investigated by Federal Bureau of Investigation and the Burlington Police Department. The case was prosecuted by the United States Attorney’s Office-Southern District of Iowa.
Buffalo Man Sentenced for Cyberstalking the Mother of His ChildrenRead 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 Mark Bieniek, 45, of Buffalo, NY, who was convicted of cyberstalking, was sentenced to serve 41 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Wei Xiang, who handled the case, stated that the defendant and Victim 1 were once partners and had children together. On April 25, 2017, Victim 1 received an order of protection against Bieniek, prohibiting the defendant from communication with Victim 1, except as permitted by order of a family or Supreme Court.
Between January 25, 2018, and February 19, 2018, Bieniek resided in North Richland Hills, Texas, while Victim 1 resided in Erie County, NY. In violation of the order of protection during this period, the defendant sent several hundred electronic messages to Victim 1 with the intent to kill, injure, harass, intimidate, or cause substantial emotional distress to Victim 1 or to place Victim 1 in reasonable fear of the death of or serious injury to herself or her partner, Victim 2. Among the messages:
• “I got [Victim 2]..” “I may spend the rest of my life in prison. But it’ll be worth it…I can’t wait to see him…Texas has lots and lots of pawnshops”
• “Hi [Victim 2]! Looking forward to meeting you…My brother killed someone…so can I (expletive)”
• “I like the pictures you posted. I’m coming fir you [Victim 2]. Now I know exactly what you look like. I’ll see you soon.” “(Expletives) I’m going to murder your boyfriend while you watch.”
• Images of the defendant holding an object resembling a black pistol along with the message, “It’s time [Victim 1]. I’m going to let you make the decision.”
• Photos of the outside of Victim 1’s place of employment with the message, “I’m wondering…Are you planning on coming out?”
• “I am here and I will get you. Maybe tonight I’ll just torch the place or ill wait to see the looks on your faces.”
• “see i paid a lot to put this whole plan together and i sawed off the end of my attitude adjuster. i have patience. be sure to look over your shoulder mother fucker because there will be dead bodies when I’m thru. Starting with your face getting a few slugs.”
• “I have nothing left [Victim 1]. You took it all. Idc what i have to do. You will hear my cries.” “I have two things i must do. Get you. No matter what. Then get myself.”
• “I know that you are alone and scared up there.”
• “I can feel the the hate for me. I can smell your fear.” “Fear.”
• “[Victim 2] you and [Victim 1] are going to die”, “Tomorrow”, “I promise you this sir”, “You are both dead”
• I SWEAR ON MY MOTHER CAROLS LAST BREATH IF SHE WERE TO ASK ME HER LAST DYING WISH TO NOT DO ANYTHING TO HURT OR SCARE YOU...LIKE SHE HAS BEFORE BUT YOU DONT CARE. IF SHE ASKED ME FOR THAT ONE LAST WISH BEFORE SHE TOOK HER LAST BREATH I'D LOOK HER IN HER EYES AND TELL HER I CANNOT CAN NOT GIVE YOU THIS WISH.The defendant has a history of domestic violence-related conduct towards Victim 1. On December 17, 2011, he was arrested for assaulting, including choking and kicking, Victim 1 with intent to cause physical injury. As a result, Victim 1 feared death or serious injury to herself and Victim 2 and suffered substantial emotional distress.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, with assistance from the FBI in Fort Worth, Texas.
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Bozeman man sentenced to 16 years on child porn, cyberstalking crimesRead the Press Release
MISSOULA—Bozeman resident Jamie Brock Grubb, who admitted receiving and distributing sexually explicit images of a minor girl and cyberstalking the victim, was sentenced to 16 years in prison on May 16, U.S. Attorney Kurt Alme said.
Grubb, 31, also was sentenced to 20 years of supervised release and ordered to pay $50,000 restitution.
Grubb pleaded guilty in January to a total of 10 counts, including seven counts of distribution of child porn, transportation of child porn, cyberstalking and interception of wire, oral and electronic communications.
Chief U.S. District Judge Dana L. Christensen presided.
Prosecutors said in court documents that in 2011, Grubb was in a relationship with a minor girl and took sexually explicit images of her. While a minor, the girl also took sexually images of herself and sent them electronically to Grubb. Grubb then distributed those images on different websites without the victim’s knowledge from 2015 to 2017.
Gallatin County Sheriff’s Office detectives served search warrants for Grubb’s email account and determined that he had transported the sexually explicit images and a video of the victim by emailing them to himself.
Detectives also analyzed the victim’s smart phone and other smart phones in Grubb’s possession and determined Grubb had placed spytracker software on the victim’s phone without her knowledge. There was evidence of the same software on Grubb’s phone. Detectives also found that Grubb had intercepted the victim’s communications, finding audio recordings of the victim’s phone calls with third parties on his phone.
Assistant U.S. Attorney Cyndee Peterson prosecuted the case, which was investigated by Montana Probation and Parole, the Gallatin County Sheriff’s Office and Homeland Security Investigations and the Internet Crimes Against Children Task Force.
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Baton Rouge Doctor Sentenced to Prison for Fraudulent Billing SchemeRead the Press Release
A Baton Rouge, Louisiana-based doctor was sentenced to 37 months in prison followed by two years of supervised release today for his role in a scheme to defraud Medicare and other health care insurers.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Brandon J. Fremin of the Middle District of Louisiana, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Field Office and Special Agent in Charge Eric J. Rommal of the FBI’s New Orleans Field Office made the announcement.
John Eastham Clark, M.D., 66, of Baton Rouge, was sentenced by Chief U.S. District Judge Shelly D. Dick of the Middle District of Louisiana, who also ordered Clark to pay $254,962.80 in restitution. In February 2019, Clark pleaded guilty to one count of conspiracy to commit health care fraud.
Clark was a co-owner and the medical director of Louisiana Spine & Sports LLC, a pain management clinic located in Baton Rouge. The charge stems from Clark’s role in a scheme to submit fraudulent claims to Medicare and other health care insurers. As part of his guilty plea, Clark admitted that from approximately June 2005 through March 2015, he, along with his billing supervisor Charlene Anita Severio and others, conspired to submit fraudulent claims indicating that minor surgical procedures occurred on days subsequent to office visits, when in fact the office visits and procedures took place on the same day. Clark admitted that this practice, commonly referred to as “unbundling,” was done to defraud health care insurers for non-reimbursable office visits. Clark further admitted to falsifying, and directing Severio and others to falsify, records substantiating the fraudulent claims.
In February 2019, Severio pleaded guilty to one count of conspiracy to commit health care fraud and wire fraud and two counts of health care fraud. She is scheduled to be sentenced on May 22 by Chief Judge Dick.
In another case involving Louisiana Spine & Sports, on Nov. 20, 2018, Gray Wesley Barrow, M.D., a co-owner of the company, pleaded guilty for his role in a scheme to receive approximately $336,000 in illegal health care kickback payments. Barrow is scheduled to be sentenced on June 7, 2019, by U.S. District Judge Brian A. Jackson of the Middle District of Louisiana. In addition, Christopher William Armstrong, a former physician’s assistant at Louisiana Spine & Sports, pleaded guilty on Nov. 27, 2018 for his role in a scheme to unlawfully distribute thousands of oxycodone pills. Armstrong is scheduled to be sentenced on June 24, 2019, by U.S. District Judge John W. deGravelles of the Middle District of Louisiana.
The case was investigated by HHS-OIG and the FBI, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Louisiana. Assistant Chief Dustin M. Davis and Trial Attorney Justin M. Woodard of the Fraud Section and Assistant U.S. Attorney Elizabeth E. White of the Middle District of Louisiana are prosecuting the case.
The Medicare Fraud Strike Force is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Bardstown Man Sentenced to 135 months for Armed Drug TraffickingRead the Press Release
LEXINGTON, Ky. — Michael Steven Lyvers, 41, of Bardstown, Kentucky, was sentenced today, to 135 months in federal prison, by United States District Judge Karen K. Caldwell, for possession with intent to distribute Methamphetamine and possession of a firearm in furtherance of drug trafficking.
In March 2018, detectives with the Lexington Police Department received information that Michael Lyvers was distributing methamphetamine from the Days Inn. During the investigation, officers located 491 grams of methamphetamine, a small amount of heroin and cocaine, and a .380 handgun. During his guilty plea, Lyvers admitted to the distribution of methamphetamine and to possessing the firearm for protection during his drug trafficking.
Under federal law, Stackhouse must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for five years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Stuart Lowrey, Special Agent in Charge of the ATF; and Lawrence Weathers, Chief of the Lexington Police Department jointly made the announcement.
The ATF and the Lexington Police Department conducted the investigation. The United States was represented by Assistant United States Attorney Cynthia T. Rieker.
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 PSN program was reinvigorated 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.
Avondale Woman Charged with Conspiracy to Commit Mail FraudRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that PENNY JOHNSON, age 52, of Avondale, Louisiana, was charged by the Grand Jury with one count of conspiracy to commit mail fraud and seven counts of mail fraud.
According to the charging document, JOHNSON participated in a “work at home” re-shipping scam wherein internet fraudsters would direct items purchased from sellers such as eBay to JOHNSON’s residence. As part of the scheme, JOHNSON would then inspect the contents and re-ship the mail and other packages to the fraudsters. Prior to the Indictment, JOHNSON had been advised by United States Postal inspectors that she was facilitating a fraud upon eBay and other online customers, but she persisted. JOHNSON went on to make false statements to the inspectors when she was later questioned after the first warning.
JOHNSON faces a sentence of up to five (5) years in prison on the conspiracy count and up to twenty (20) years in prison for each mail fraud count. She also is facing up to $250,000 in fines, and up to three (3) years of supervised release.
U.S. Attorney Strasser praised the work of the United States Postal Inspection Service for their investigation of the matter. Assistant U.S. Attorney Edward J. Rivera is in charge of the prosecution.
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Attorney General William P. Barr Announces Creation of the State and Local Law Enforcement Coordination SectionRead the Press Release
WASHINGTON – On May 2, 2019, Attorney General William P. Barr approved the creation of the State and Local Law Enforcement Coordination Section (SLEC-S) within the Office of Legislative Affairs. As of June 3, 2019, the SLEC-S will be responsible for ensuring that Department leadership is properly informed of state and local law enforcement’s top priorities, while working to ensure that the Department has an impactful presence within the state and local law enforcement community. SLEC-S will serve as the primary liaison with state and local law enforcement, and all supporting entities.
“State, local, and federal law enforcement officers are all a part of the same team," Attorney General William P. Barr said. "The events of Police Week serve as a powerful reminder that the vast majority of this team serves on the front lines — at the state and local levels. In order to further strengthen the Department of Justice's relationships with our state and local law enforcement partners, I am pleased to announce that the Department has established a State and Local Law Enforcement Coordination Section. This new Section will have primary responsibility for maintaining relationships with law enforcement throughout the country and will ensure that Department leadership maintains an active and ongoing dialogue with our law enforcement partners as we work together to develop policies designed to keep our country safe and secure.”
The SLEC-S will begin by developing a strategic plan for direct engagement between the Department and the state and local law enforcement community. The Section will work to ensure that the Department is represented at all relevant conferences and forums and that there is direct and timely outreach to survivors of fallen officers. The Section will also support Department components on relevant legislative and policy issues affecting local law enforcement partners. The Section will coordinate with the Department’s Intergovernmental and Public Liaison, who will continue to work with state Attorneys General and other state and local elected officials, and will include members from law enforcement components within the Department of Justice.
Armed Bank Robbers Sentenced to Federal PrisonRead the Press Release
Columbia, South Carolina --- United States Attorney Sherri A. Lydon announced today that Ryan Newell, 31, and Cory Woods, 29, both of Columbia, were sentenced to federal prison for their roles in armed bank robberies. Newell was sentenced to over 24 years in federal prison after pleading guilty to three armed bank robberies and corresponding firearm offenses. Woods was sentenced to over nine years in federal prison after pleading guilty to single armed bank robbery and firearm offenses.
Evidence presented to the Court showed both Newell and Woods were responsible for three armed takeovers and robberies of banks located in the Midlands of South Carolina. On January 24, 2018, Woods and Newell stole over $33,000 from a First Citizens bank in Columbia. The second robbery occurred at a TD Bank in Irmo on February 24, 2018, where Newell and Woods stole over $17,000. The final robbery occurred on March 5, 2018, at a Wells Fargo in Chapin. In the final robbery, Newell and Woods stole over $28,000, then left the bank and took law enforcement on a high speed chase down I-26. Ultimately, Newell and Woods crashed into the median and were arrested.
Senior United States District Judge Terry L. Wooten of Columbia sentenced Ryan Newell to 298 months in federal prison, to be followed by a 5-year term of court-ordered supervision. Judge Wooten sentenced Cory Woods to 108 months in federal prison, to be followed by a 5-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Federal Bureau of Investigation, the Lexington County Sheriff’s Office, the Richland County Sheriff’s Office, the Chapin Police Department, the Irmo Police Department, and the Columbia Police Department.
Assistant United States Attorney William Camden Lewis of the Columbia office prosecuted the case.
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Another Heads to Prison for Operation “Tres Equis”Read the Press Release
LAREDO, Texas – A 34-year-old Laredoan is now the 23rd defendant to be headed to federal prison following his conviction of money laundering, announced U.S. Attorney Ryan K. Patrick.
A federal jury convicted Daniel Laurel June 15, 2018, for having successfully laundered drug proceeds for the Romero Drug Trafficking Organization (DTO) by operating a funnel account and recruiting other Laredoans to do the same.
Late Friday, May 17, 2019, U.S. District Judge Diana Saldana ordered him to prison for 151 months for money laundering conspiracy and money laundering concealment. As part of his sentence, Laurel also received a $285,500 money judgment or forfeiture of funds involved in his money laundering
The DTO used Laurel’s bank account and those of his recruits to funnel drug proceeds from various geographic locations, such as Florida, Pennsylvania, North Carolina, New York and Georgia for immediate withdrawal in Laredo. Once the proceeds were withdrawn, they were provided to other Laredo co-conspirators and often taken into Mexico to leaders of the organization. convictions.
Laurel is one of several persons identified through a long term Organized Crime Drug Enforcement Task Force (OCDETF) investigation dubbed Tres Equis. These co-conspirators engaged in a scheme to distribute cocaine, methamphetamine, heroin and fentanyl through the use the U.S. Postal Service or other means such as Federal Express. They also used various U.S. bank accounts to transfer drug proceeds from distribution hub cities to cities along the Mexican border, including Laredo, and to places outside the United States, including Mexico and Ecuador.
The 22 others sentenced include Antonio Romero Jr., 32, of Orlando, Florida, who occupied a leadership position in the DTO and received a 292-month sentence. The other prison sentences ranges from 12-210 months based on their roles in the organization. Two others received probation. As part of their respective sentences, most people received a hefty money judgment or forfeiture of funds involved or traceable to drug trafficking which ranged from $1000 to $1.08 million. Additionally, non-U.S. citizen defendants are expected to face deportation proceedings and possible cancellation or denial of any previously granted visa or legal residency status.
The Drug Enforcement Administration and IRS – Criminal Investigation conducted the OCDETF investigation. Also providing assistance was the U.S. Marshals Service, Laredo Police Department, sheriff’s offices in Webb and Zapata Counties, Webb County District Attorney’s Office, Border Patrol and the Texas Department of Public Safety.
Assistant U.S. Attorney Graciela R. Lindberg prosecuted the case.
Allen Man Sentenced for False StatementRead the Press Release
United States Attorney Ron Parsons announced that an Allen, South Dakota, man convicted of False Statement was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Nathaniel “Thomas” Waters, age 46, was sentenced on May 16, 2019, to time served of 6 months, 2 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Waters was indicted for the charge by a federal grand jury in January 2018. The charge related to Waters making false statements to law enforcement regarding the fire and homicide of his nephew at Waters’ residence at Allen on October 16, 2017. Waters eventually admitted that his previous statements were false and that he lied during the prior interviews.
This case was investigated by the Bureau of Indian Affairs - Office of Justice Services, the Oglala Sioux Tribe Department of Public Safety, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorneys Megan Poppen and Ben Patterson prosecuted the case.
Ali Kourani Convicted in Manhattan Federal Court for Covert Terrorist Activities on Behalf of Hizballah’s Islamic Jihad OrganizationRead the Press Release
Yesterday, a jury returned a guilty verdict against Ali Kourani, a.k.a. “Ali Mohamad Kourani,” a.k.a. “Jacob Lewis,” a.k.a. “Daniel,” on all eight counts in the Indictment, which charged him with terrorism, sanctions and immigration offenses for his illicit work as an operative for Hizballah’s external attack-planning component. Kourani is scheduled to be sentenced on Sept. 27, 2019, by the Honorable Alvin K. Hellerstein, who presided over the eight-day trial. Assistant Attorney General for National Security John C. Demers, U.S. Attorney Geoffrey S. Berman for the Southern District of New York, Assistant Director Michael McGarrity of the FBI’s Counterterrorism Division and Assistant Director in Charge William F. Sweeney, Jr. of the FBI’s New York Field Office made the announcement.
“While living in the United States, Kourani served as an operative of Hizballah in order to help the foreign terrorist organization prepare for potential future attacks against the United States,” said Assistant Attorney General Demers. “The evidence at trial showed that Kourani searched for suppliers who could provide weapons for such attacks, identified people who could be recruited or targeted for violence, and gathered information about and conducted surveillance of potential targets within our country. Such covert activities conducted on U.S. soil are a clear threat to our national security and I applaud the agents, analysts, and prosecutors who are responsible for this investigation and prosecution.”
“Ali Kourani was recruited, trained and deployed by Hizballah’s Islamic Jihad Organization to plan and execute acts of terrorism in the United States,” said U.S. Attorney Berman. “Kourani’s chilling mission was to help procure weapons and gather intelligence about potential targets in the U.S. for future Hizballah terrorist attacks. Some of the targets Kourani surveilled included JFK Airport and law enforcement facilities in New York City, including the federal building at 26 Federal Plaza in Manhattan. Today, Kourani has fittingly been convicted for his crimes in a courthouse that stands in the shadow of one of his potential targets.”
“This case shows Hizballah’s Islamic Jihad Organization is a threat to the American people and not just to those living abroad,” said FBI Assistant Director McGarrity. “The IJO enlisted Kourani to help plan an attack on high profile U.S. locations where many people could have been killed or injured. Thanks to the New York Joint Terrorism Task Force his plans were not carried out.”
As reflected in the criminal Complaint, Indictment, and the evidence presented at trial:
Hizballah is a Lebanon-based Shia Islamic organization with political, social, and terrorist components that was founded in the 1980s with support from Iran. Since Hizballah’s formation, the organization has been responsible for numerous terrorist attacks that have killed hundreds, including United States citizens and military personnel. In 1997, the U.S. Department of State designated Hizballah a Foreign Terrorist Organization, pursuant to Section 219 of the Immigration and Nationality Act, and it remains so designated today. In 2010, State Department officials described Hizballah as the most technically capable terrorist group in the world, and a continued security threat to the United States.
The Islamic Jihad Organization (IJO), which is also known as the External Security Organization and “910,” is a highly compartmentalized component of Hizballah responsible for the planning, preparation, and execution of intelligence, counterintelligence, and terrorist activities on behalf of Hizballah outside of Lebanon. In July 2012, an IJO operative detonated explosives on a bus transporting Israeli tourists in the vicinity of an airport in Burgas, Bulgaria, killing six people and injuring 32 others. Law enforcement authorities have disrupted several other IJO attack-planning operations around the world, including the arrest of an IJO operative surveilling Israeli targets in Cyprus in 2012, the seizure of bomb-making precursor chemicals in Thailand in 2012, including chemicals manufactured by a medical devices company based in Guangzhou, China (Guangzhou Company-1), and a similar seizure of chemicals manufactured by Guangzhou Company-1 in Cyprus in May 2015 in connection with the arrest of another IJO operative.
Kourani, who was born in Lebanon, attended Hizballah-sponsored weapons training in Lebanon in 2000 when he was approximately 16 years old. After lawfully entering the United States in 2003, Kourani obtained a Bachelor of Science in biomedical engineering in 2009, and a Masters of Business Administration in 2013.
Kourani and certain of his relatives were in Lebanon during the summer 2006 conflict between Israel and Hizballah, when a residence belonging to his family was destroyed. At some point by 2008, IJO recruited Kourani to its ranks. In August 2008, Kourani submitted an application for naturalization in the United States in which he falsely claimed, among other things, that he was not affiliated with a terrorist organization. In April 2009, Kourani became a naturalized citizen and was issued a United States passport. Despite claiming in his passport application that he had no travel plans, Kourani traveled to Guangzhou, China – the location of Guangzhou Company-1 – on May 3, 2009. He later claimed to the FBI that the purpose of the trip was to meet with medical device manufacturers and other businessmen.
IJO assigned Kourani an IJO handler, or mentor, responsible for providing him with taskings, debriefings, and arranging training. Kourani sometimes communicated with his handler using coded email communications, including messages sent by the handler that informed Kourani of the need to return to Lebanon. In order to establish contact with his handler when Kourani returned to Lebanon, Kourani called a telephone number associated with a pager (the IJO Pager) and provided a code that he understood was specific to him. After contacting the IJO Pager, the handler would contact Kourani to set up an in-person meeting by calling a phone belonging to one of Kourani’s relatives. The IJO also provided Kourani with additional training in tradecraft, weapons, and tactics. In 2011, for example, Kourani attended a weapons training camp in the vicinity of Birkat Jabrur, Lebanon, where he used a rocket propelled grenade launcher, an AK-47 assault rifle, an MP5 submachine gun, a PKS machine gun (a Russian-made belt-fed weapon) and a Glock pistol.
Based on other taskings from IJO personnel, which IJO personnel conveyed during periodic in-person meetings when Kourani returned to Lebanon, Kourani conducted operations, which he understood to be aimed at preparing for potential future Hizballah attacks. These covert activities included searching for weapons suppliers in the United States who could provide firearms to support IJO operations; identifying individuals affiliated with the Israeli Defense Force whom the IJO could either recruit or target for violence; gathering information regarding operations and security at airports in the United States and elsewhere, including JFK International Airport in New York; and surveilling U.S. military and law enforcement facilities in New York City, including the federal building at 26 Federal Plaza in Manhattan. Kourani transmitted some of the products of his surveillance and intelligence-gathering efforts back to IJO personnel in Lebanon using digital storage media.
Kourani, 34, of the Bronx, New York, was convicted of providing material support to a designated foreign terrorist organization, which carries a maximum sentence of 20 years in prison; conspiracy to provide material support and resources to a designated foreign terrorist organization, which carries a maximum sentence of 20 years in prison; receiving military-type training from a designated foreign terrorist organization, which carries a sentence of 10 years in prison or a fine; conspiracy to receive military-type training from a designated foreign terrorist organization, which carries a maximum sentence of five years in prison; conspiracy to possess, carry, and use firearms and destructive devices during and in relation to crimes of violence, which carries a maximum sentence of life in prison; making and receiving a contribution of funds, goods, and services to and from Hizballah, in violation of IEEPA, which carries a maximum sentence of 20 years in prison; conspiracy to make and receive a contribution of funds, goods, and services to and from Hizballah, in violation of IEEPA, which carries a maximum sentence of 20 years in prison; and naturalization fraud in connection with an act of international terrorism, which carries a maximum sentence of 25 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as the defendant’s sentence will be determined by Judge Hellerstein.
Mr. Demers and Mr. Berman praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the New York City Police Department.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Emil J. Bove III and Amanda L. Houle are in charge of the case, with assistance from Trial Attorney Bridget Behling of the Counterterrorism Section.
Agency Village Man Charged with Assault with Intent to Commit MurderRead the Press Release
United States Attorney Ron Parsons announced that an Agency Village, South Dakota, man has been indicted by a federal grand jury for assault with intent to commit murder, assault with a dangerous weapon, and assault resulting in serious bodily injury.
John Matthew Pilcher, age 48, was indicted on March 5, 2019. He appeared before U.S. Magistrate Judge William Gerdes on May 13, 2019, and pled not guilty to the Indictment.
According to the Indictment, on or about the 10th day of November 2018, Pilcher assaulted the victim with a dangerous weapon, namely a knife or a sharp-edged object, with the intent to commit murder, and the assault did result in serious bodily injury.
The maximum penalties upon conviction for each count are as follows: 20 years and 10 years of imprisonment and/or a $250,000 fine; a mandatory minimum term of five (3) years of supervised release; $100 special assessment for victim/witness fund; and restitution may be ordered.
The charges are merely accusations and Pilcher is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Pilcher was remanded to the custody of the U.S. Marshals Service. A trial date of June 25, 2019, has been set.
6 Charged with Running Middletown Narcotics RingRead the Press Release
CINCINNATI – A grand jury has indicted six defendants in an alleged Middletown narcotics conspiracy.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Todd A. Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Middletown Police Chief Rodney Muterspaw, and officials with the Butler County Sheriff's Office, Warren County Drug Task Force, ATF, Homeland Security Investigations and the FBI Safe Street Task Force announced the charges that were unsealed today.
According to the indictment, the six individuals are part of a group that calls itself “All State” and is responsible for distributing more than 400 grams of fentanyl and more than 100 grams of heroin in Middletown.
Those charged include:
Name
Also Known As
Benwan A. Edwards
Marqui D. L. Conley
Key Man
Joseph L. Singletary, Jr.
Joker
Will D. Owens V
Hailey E. P. Meeks
Tyrese A. Robinson
Tye, Moneybags
It is alleged that Edwards and Conley served in leadership roles in the criminal organization. The other defendants allegedly served as sub-distributors and couriers of the drugs, and at times, as the group’s “enforcers.”
The indictment details more than 40 alleged specific drug transactions between October 2018 and May 2019. Each of the transactions included $400 to $2,600 in narcotics sales.
“The indictment alleges not only a narcotics conspiracy, but a violent one,” U.S. Attorney Glassman said. “According to the indictment’s allegations, certain co-conspirators used and brandished firearms to facilitate their drug trafficking business, intimidate rivals, and punish anyone who stood in their way.”
In January 2019, Edwards, Conley and another person allegedly discussed a murder-for-hire during a drug transaction.
In the same month, Edwards allegedly stated, “I got to this level from staying low and getting n***** knocked the f*** off for stepping in my lane.
The 38-count indictment charges each of the defendants with participating in a narcotics conspiracy. Other charges include possessing and distributing narcotics, as well as using a firearm during a drug trafficking crime and possessing a firearm as a prohibited person.
The narcotics conspiracy is punishable by 10 years up to life in prison.
The government seeks to forfeit 19 vehicles – including a Maserati, Jaguar, Mercedes Benz and BMW – at least nine firearms and nearly $12,000 in cash in this case.
U.S. Attorney Glassman commended the cooperative investigation of this case by the FBI, Middletown Police, Butler County Sheriff's Office, Warren County Drug Task Force, ATF, Homeland Security Investigations and the FBI Safe Street Task Force, as well as Assistant United States Attorney Karl P. Kadon, who is prosecuting the case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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17 Indicted in Multi-State Cocaine Distribution Scheme Conducted through the U.S. MailRead the Press Release
PITTSBURGH – Seventeen people in four states have been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics, money laundering and postal laws, United States Attorney Scott W. Brady announced today. The three separate, but related, indictments were returned on May 8, 2019 and unsealed this week.
"This is one of the largest cocaine distribution rings in western Pennsylvania," said U.S. Attorney Brady. "Together with our state and local law enforcement partners, we conducted an extensive investigation of this multi-state drug distribution network. My office will continue the fight to dismantle drug trafficking organizations and hold those who pollute our communities with drugs accountable."
"This drug distribution organization threatened the safety of the people of western Pennsylvania and beyond by peddling illegal drugs in their communities," said Pennsylvania Attorney General Josh Shapiro. "I’m grateful for the strong collaboration between local, state, and federal law enforcement to break up this criminal network. We will continue working together to get these poisons off our streets and hold those who push them into our neighborhoods accountable."
"This was an investigation that started at the local level and we quickly realized we needed the help of the U.S. Attorney’s Office and the Drug Enforcement Administration," said Lawrence County District Attorney Joshua Lamancusa. "Through the cooperation of local, state and federal agencies, we were able to make a substantial impact on drug trafficking in Lawrence County."
According to U.S. Attorney Brady, the indictments follow an 18-month investigation of a multi-state drug distribution network led by Hector Forbes, in which cocaine was sold throughout the country, including in New Castle and Pittsburgh, Pennsylvania. The group used the mail to transport the cocaine and to send cash back to Hector Forbes and Marcia Cunningham.
An eight-count indictment returned on May 8, names:
• Timothy Bonner, 38, of Pittsburgh, Pennsylvania;
• Garfield Campbell, aka "Sean Grant," 44, of Pittsburgh, Pennsylvania;
• Garfield Campbell, Jr., aka "Theo Campbell," 22, of Pittsburgh, Pennsylvania;
• Marcia Cunningham, aka "Elaine Ambersley," "Marcia Headley," 51, of Plantation, Florida;
• Hector Forbes, aka "Michael Ambersley," "Troy Williams," "Desmond Roreric," "Hextor Obian," "Hector Obytan," "Haneen Arrie," "Warren Blake," "Sperm," "Henry," 45, of Pomona, California;
• Robert Forbes, aka "Daniel Kirkpatrick," "Joe," 44, of Pittsburgh, Pennsylvania; and
• Anthony Portis, Jr., 36, of Pittsburgh, Pennsylvania, as defendants.
Cunningham and Hector Forbes were arrested in Florida on May 10, 2019. The remaining defendants were arrested in Lawrence and Allegheny counties on Monday, May 13, 2019. Garfield Campbell and Garfield Campbell, Jr. are father and son. Hector Forbes and Robert Forbes are brothers.
According to Count 1 of the Indictment, from in and around April 2017, and continuing thereafter to in and around April 2019, Hector Forbes participated in a continuing criminal enterprise involved in cocaine trafficking. That statute is often referred to as the Drug Kingpin Statute, and calls for a mandatory minimum sentence of 20 years of incarceration upon conviction.
At Count 2, the Indictment charges all defendants with conspiring to distribute and possess with intent to distribute 5 kilograms or more of cocaine, a Schedule II controlled substance from in and April 2017, and continuing thereafter to in and around April 2019, in the Western District of Pennsylvania and elsewhere. That statute calls for a mandatory minimum sentence of 10 years of incarceration upon conviction.
Garfield Campbell is charged at Count 3 with attempting to possess with intent to distribute 500 grams or more of cocaine, a Schedule II controlled substance, in and around June 2017. That statute calls for a mandatory minimum sentence of five years of incarceration upon conviction.
Timothy Bonner is charged at Counts 4 and 5 with possessing with intent to distribute 500 grams or more of cocaine, a Schedule II controlled substance, and less than 50 kilograms of marijuana, a Schedule I controlled substance, on or about February 11, 2019.
Garfield Campbell, Marcia Cunningham, Hector Forbes and Robert Forbes are charged at Count 6 with conspiring to commit money laundering, from in and April 2017, and continuing thereafter to in and around April 2019; and at Count Seven with interstate travel in aid of racketeering.
Marcia Cunningham and Hector Forbes are charged at Count 8 with using false names and addresses to conduct an unlawful business by means of the postal service, from in and April 2017, and continuing thereafter to in and around April 2019.
The law provides for a maximum total sentence of life in prison for all of these defendants.
A second indictment, returned on May 8, and containing 24 counts, names:
• Fawn Cox, 40, of New Castle, Pennsylvania;
• Wesley Cox aka "Michael Deshawn Carter," 37, of New Castle, Pennsylvania;
• Michael Cox, 48, of 811 High Street, of New Castle, Pennsylvania;
• Ronny Daniels, Jr. aka "Moocher," 36, of New Castle, Pennsylvania;
• Sergio Murillo, 45, of Detroit, Michigan;
• Eva Scialabba, 32, of Beaver Falls, Pennsylvania;
• Dondi Searcy, Jr. aka "Little Dondi," 34, of New Castle, Pennsylvania;
• Quantel Searcy, 45, of New Castle, Pennsylvania; and
• Christopher Shaner, 24, of New Castle, Pennsylvania, as defendants.
All of the defendants were arrested on Monday, May 13, 2019, except for Wesley Cox and Sergio Murillo who were already in custody. Fawn, Wesley and Michael Cox are siblings. Dondi Searcy, Jr. and Quantel Searcy are cousins.
According to the Indictment, from in and around 2017, and continuing thereafter to in and around May 2019, in the Western District of Pennsylvania and elsewhere, defendants Fawn Cox, Wesley Cox, Ronny Daniels, Jr., Sergio Murillo, Eva Scialabba, Dondi Searcy, Jr., Quantel Searcy and Christopher Shaner conspired with each other and others to distribute and possess with intent to distribute five kilograms or more of cocaine and 280 grams or more of cocaine base, in the form commonly known as crack, each a Schedule II controlled substance. That statute carries with it a mandatory minimum sentence of 10 years of incarceration.
Counts 2, 4, 5, 6, 7, 8, 10, 11, 12, 17, 18, 19, 20, 22, 23 and 24 of the Indictment charge Fawn Cox, Wesley Cox, Ronny Daniels, Jr., Dondi Searcy, Jr. and Quantel Searcy with distributing and possessing with the intent to distribute a quantity of cocaine, a Schedule II controlled substance, on various dates from February 2017 to April 2019.
Wesley Cox is further charged at Counts 3 and 9 with distributing and possession with intent to distribute crack cocaine and fentanyl, each a Schedule II controlled substance, on or about December 8, 2017 and February 28, 2018, respectively.
Count 13 charges Wesley Cox and Michael Cox with conspiring to commit money laundering from in and around 2017, and continuing thereafter to in and around May 2019.
Counts 14, 15 and 16 charge Ronny Daniels, Jr. with distributing and possessing with intent to distribute crack cocaine, on or about January 10, 2018, January 31, 2018, May 1, 2018, respectively.
Count 21 charges Sergio Murillo and Dondi Searcy, Jr. with attempting to distribute and possess with intent to distribute crack cocaine, on or about September 18, 2018.
The law provides for a maximum total sentence of life in prison for all of the defendants except for Michael Cox, who faces a maximum total sentence of twenty years of incarceration.
Finally, a third indictment returned on May 8, and containing two counts names:
• Rondell Palmer, 47, of Pontiac, Michigan, as the sole defendant. Palmer was already in custody.
According to the Indictment, from in and around August 2018, and continuing thereafter to in and around September 2018, Palmer conspired with others to distribute and possess with intent to distribute 500 grams or more of cocaine, a Schedule II controlled substance. Additionally, on or about September 17, 2018, Palmer attempted to distribute and possess with intent to distribute 500 grams or more of cocaine, a Schedule II controlled substance.
The law provides for a maximum total sentence of not less than five years to a maximum of 40 years in prison, a fine not to exceed $5,000,000 or both.
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(s).
Assistant United States Attorneys Brendan T. Conway and Marnie Sheehan-Balchon are prosecuting this case on behalf of the government.
A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation leading to the Indictment in this case. The task force is headed by the Drug Enforcement Administration and is comprised of members drawn from the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lawrence County Drug Task Force, Pennsylvania Office of Attorney General, Borough of Baldwin Police Department, McKees Rocks Police Department, Munhall Police Department, Allegheny County Sheriff’s Office, Pittsburgh Bureau of Police, and the Pennsylvania State Police.
In this case, the Lawrence County Drug Task Force, the Lawrence County District Attorney’s Special Investigations Unit, the New Castle Police Department and the Union Township Police Department provided significant assistance in the investigation.
The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Thursday 16 May 2019
“Sovereign Citizen” Sentenced to 10 Years in Federal Prison for Fraud SchemeRead the Press Release
Columbia, South Carolina - United States Attorney Sherri A. Lydon announced today that Ronald Allen Wright, age 53, of Columbia, was sentenced to 10 years in federal prison after a jury found him guilty of tax fraud and conspiracy to commit wire fraud. His convictions stem from the false and meritless “sovereign citizen” ideology, whereby individuals argue that they are not subject to the laws of the United States of America and that debts can be discharged by accessing secret government bank accounts.
According to information presented during his trial and sentencing, Wright was the owner of “Money Solutions,” a Columbia-based financial services business. Between 2013 and 2015, Wright targeted multiple individuals, some elderly, who were experiencing financial difficulty. Wright especially pursued those going through foreclosure on their homes and contacted many of them through churches and other faith-based organizations. Wright claimed that he knew a method whereby individuals could eradicate their debts by making financial claims against their birth certificates. Wright told his customers that these monetary claims against the birth certificates could then be used to satisfy the customer’s debts.
According to evidence presented at trial, Wright attempted to fraudulently discharge nearly $15 million of consumer debt. Despite Wright’s claimed belief in this payment system, he did not accept this form of payment at Money Solutions, and instead charged individuals over $140,000 of actual currency to participate in his bogus scheme. Wright also argued that his so-called “sovereign” status exempted him from the payment of income taxes.
“No one is exempt from the Rule of Law in this country,” said U.S. Attorney Lydon. “Mr. Wright’s sentence holds him accountable for years of defrauding some of the most vulnerable members of his community and taking advantage of those who were desperate for help.”
"We continue to see the negative consequences of participating in fraudulent debt elimination tactics," said Matthew D. Line, Special Agent in Charge of IRS Criminal Investigation Charlotte Field Office. "Today's sentence is a positive message to honest taxpayers and further exhibits that the IRS and U.S. Attorney’s Office are duty bound to protect the integrity of the U.S. tax administration system, and to make sure everyone complies with their tax obligations."
The case was investigated primarily by the Federal Bureau of Investigation and the Internal Revenue Service. It was prosecuted by Assistant United States Attorney T. DeWayne Pearson of the Columbia office.
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Worcester Man and Dominican National Indicted for Distributing Fentanyl and HeroinRead the Press Release
BOSTON – A Worcester man and a Dominican national were charged today in federal court in Worcester for distributing fentanyl and heroin.
Albeiro Gomez, 54, of Worcester, and Erotides Mendez, 50, a Dominican national previously residing in New York City, were indicted on one count of conspiring to distribute heroin and more than 40 grams of heroin and one count of distributing heroin and more than 40 grams of fentanyl. Gomez was also charged with one count of distributing heroin and fentanyl and one count of possessing cocaine with intent to distribute. Mendez was also charged with one count of possessing heroin and more than 40 grams of fentanyl with intent to distribute. Gomez and Mendez were each arrested in December 2018. Mendez has remained in custody since that time.
According to court documents, Gomez distributed heroin and fentanyl in and around Worcester and obtained the drugs from various sources, including an individual residing in New York City. Mendez was actively involved in the acquisition, transportation, and distribution of heroin and fentanyl in and around New York City and Worcester.
The charges involving more than 40 grams of fentanyl provide for a mandatory minimum sentence of five years and up to 40 years in prison, a minimum of four years and up to a lifetime of supervised release, and a fine of $5 million. Each additional drug charge provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of up to $1 million. Mendez will be subject to deportation proceedings upon completion of any sentence imposed. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. Valuable assistance was provided by the Massachusetts Attorney General’s Office and the Massachusetts State Police. Assistant U.S. Attorneys Bill Abely and John Mulcahy of Lelling’s Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Woman Sentenced to 30 Years for Medicaid Fraud Perpetrated from PrisonRead the Press Release
Just three years into serving an eight-year sentence for health care fraud, Alexis C. Norman was sentenced yesterday to another 30 years for a second health care fraud scheme, some of it committed while she was behind bars, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox. Her new sentence will run concurrent to her original one, starting this week.
In December, Ms. Norman pleaded guilty to one count of conspiracy to commit health care fraud and four counts of health care fraud – three committed before she was sentenced in the prior case and one committed while she was behind bars.
According to plea papers, Ms. Norman approached co-conspirator Karen Jones in February 2015 with a business idea she hoped could help pay legal fees from her previous case. Ms. Jones agreed to help Ms. Norman by listing herself as the administrator of Janus Children Services, Inc., opening a bank account in Janus’ name, and leasing office space for Janus in Tyler, Texas.
The company never occupied the office space, never hired any employees, and never provided any services.
Together, Ms. Norman and Ms. Jones used stolen identities of licensed counselors and Medicaid recipients to submit more than $810,000 in fraudulent claims to Medicaid, and were paid more than $427,000.
After Medicaid paid Janus for the false claims, Ms. Norman directed Jones to withdraw cash from the Janus bank account, always in amounts less than $10,000. Roughly once a month from April 2015 to February 2016, the pair would meet at a restaurant. When they finished their meal, Ms. Jones – who carried the cash in a gift bag – would leave the package on a chair for Ms. Norman.
Following Ms. Norman’s incarceration in April 2016, Ms. Jones agreed to help Ms. Norman submit additional fraudulent claims through a second company, Therapeutic Outreach Services Inc.
Ms. Jones helped Ms. Norman lease office space for Therapeutic in Waco, Texas, and visited Ms. Norman in prison on multiple occasions to gather billing instructions and identifying information of counselors and Medicaid clients. Ms. Norman concealed the information on a piece of paper hidden in her shoe, which she retrieved during Ms. Jones’ visits.
Like Janus, Therapeutic never operated out of the Waco location, had no employees, and provided no services.
The U.S. Department of Health and Human Services – Office of Inspector General and the Texas Attorney General’s Medicaid Fraud Control Unit conducted the investigation. Assistant U.S. Attorney Douglas Brasher and DOJ Trial Attorney Christina Liu are prosecuting the case.
Wilmington Gang Member Sentenced to More than 12 Years Following ATF Stash House Robbery Sting OperationRead the Press Release
RALEIGH — The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today, United States District Judge James C. Dever, III, sentenced Joseph Anthony Vaught, 29, of Wilmington to 150 months’ imprisonment, followed by 5 years of supervised release.
On January 22, 2019, VAUGHT pled guilty to charges of conspiring to distribute and possess with intent to distribute 500 grams or more of cocaine and possessing a firearm in furtherance of a drug trafficking crime
VAUGHT was the last of six men to be sentenced in this case. His five co-defendants have previously received sentences ranging from 60 to 240 months:
- On May 23, 2018, Eugene Telphia Grady, Jr., was sentenced to 60 months’ imprisonment and 6 years of supervised release, following his guilty plea to a charge of conspiring to distribute crack cocaine.
- On October 3, 2018, James Flowers was sentenced to 120 months’ imprisonment and 5 years of supervised release, following a guilty plea to conspiring to manufacture, distribute and possess cocaine and 28 grams or more of crack cocaine; manufacture, distribution, and possession with intent to distribute 28 grams or more of crack cocaine; and using and carrying a firearm in furtherance of a drug trafficking crime.
- Also on October 3, 2018, Sylvester Lorenzo Hooper, Jr., was sentenced to 204 months’ imprisonment and 8 years of supervised release, following his guilty plea to conspiring to distribute 28 grams or more of crack cocaine; possession of a firearm by a convicted felon; and distribution of a quantity of crack cocaine.
- On February 20, 2019, Victor Dorm was sentenced to 240 months’ imprisonment and 5 years of supervised release following his guilty plea to conspiracy to distribute cocaine and 28 grams or more of crack cocaine; distribution of heroin; manufacture, distribution, and possession with intent to distribute 28 grams or more of cocaine base; using and carrying a firearm in furtherance of a drug trafficking crime; and possession of a firearm by a convicted felon.
- On April 16, 2018, Rufus Lamar Parker was sentenced to 78 months’ imprisonment and 3 years of supervised release, following a guilty plea to conspiring to distribute cocaine and six counts of distributing cocaine.
These convictions are the result of a long-term undercover operation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and officers of the Wilmington Police Department. Beginning in December 2016 and continuing until the federal indictment in August of 2017, ATF used a confidential informant, undercover agents, and a wired undercover apartment to investigate gang and drug activity in the Wilmington, North Carolina area. Victor Dorm, a principal target of the investigation, was a leader of a subset of the Bloods street gang. VAUGHT was a lower-ranking member of the gang.
During the course of the investigation, a confidential informant and undercover agents conducted roughly three-dozen controlled purchases of cocaine, crack cocaine, heroin, counterfeit currency, and multiple firearms from the six co-defendants and other targets. At the same time, ATF received reports that Dorm and other members of his gang were also conducting violent robberies. In response, ATF devised a scenario where Dorm and his crew were provided the opportunity to rob a fictitious cocaine stash house. Dorm was told that a Mexican drug cartel operated the stash house, where two armed men guarded eight to ten kilograms of cocaine. Dorm confirmed that his crew, including VAUGHT, was ready to commit the robbery.
On August 29, 2017, VAUGHT and co-defendant Sylvester Hooper met with the confidential informant to carry out the plan. The three men rode to a predetermined location to meet with the undercover agents that supposedly had access to the stash house. Both VAUGHT and Hooper were armed with handguns and reaffirmed that they wanted to rob the stash house. From there, Vaught and Hooper followed the undercover agents to a separate location, where they believed the agents would obtain additional cocaine to be delivered to the stash house. Instead, a team of federal agents executed a take-down, arresting the two men and seizing their firearms.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Since 2017 the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
That effort has been implemented through the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Wilmington Police Department, the New Hanover County Sheriff’s Office, and the Brunswick County Sheriff’s Office. Assistant United States Attorneys Jake D. Pugh represented the government.
Wilkes-Barre Man Sentenced to over Two Years’ Imprisonment for Possessing A Firearm in Connection with Drug TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Shakim Varick, age 37, of Wilkes-Barre, Pennsylvania, was sentenced on May 14, 2019, by U.S. District Court Judge Robert D. Mariani, to 30 months’ imprisonment to be followed by three years of supervised release for unlawfully possessing a firearm in furtherance of a drug trafficking crime.
According to United States Attorney David J. Freed, Varick previously admitted to possessing a firearm along with heroin and crack cocaine that he intended to distribute in the city of Wilkes-Barre in March 2015.
The matter was investigated by the Federal Bureau of Investigation and the Wilkes-Barre Police Department. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Wells Fargo Personal Banker Pleads Guilty to Money Laundering ChargesRead the Press Release
Assistant U. S. Attorney Blanca Quintero (619) 546-7118
NEWS RELEASE SUMMARY – May 16, 2019
SAN DIEGO – Luis Fernando Figueroa of Tijuana pleaded guilty in federal court today to money laundering charges, admitting that he worked with others to launder and transfer money to Mexico through accounts he opened up at Wells Fargo as a personal banker.
Figueroa’s arrest by the FBI in November 2018 was the last in a string of indictments and arrests tied to the international money laundering organization based in Tijuana, Mexico but operating primarily in San Diego. To date, eight former members and leaders of the organization have been arrested and charged in San Diego. Six of those arrested have pleaded guilty.
According to the indictment and other public records, the international money laundering organization laundered approximately $19.6 million dollars in narcotics proceeds on behalf of Mexican based drug trafficking organizations to include the Sinaloa Cartel between 2014 and 2016.
“We can’t allow our banks to be laundromats for cartel cash,” said U.S. Attorney Robert Brewer. “Bank employees who launder drug money for traffickers will face prosecution and prison.”
“Today’s conviction shows the dedication and depth of the FBI’s efforts to dismantle money laundering organizations,” said Suzanne Turner, FBI Acting Special Agent in Charge of the San Diego Field Office. “With our law enforcement partners, we will continue to strike at the heart of narcotics trafficking by pursuing each and every member of money laundering organizations who feed the proceeds of illegal and dangerous drug trafficking back to the cartels.”
According to court documents, the money laundering organization recruited individuals to serve as funnel account holders to open personal bank accounts at Wells Fargo Bank and other U.S. banks. Figueroa, as a personal banker with Wells Fargo, admitted in his plea agreement that he knowingly opened personal bank accounts at Wells Fargo for the funnel account holders, knowing that those personal accounts would be used to launder funds to Mexico.
Other members of the money laundering organization, known as couriers, travelled to Los Angeles, Chicago, Charlotte, Boston, New Jersey, and New York City to pick up bulk cash narcotics proceeds that ranged from thousands to hundreds of thousands of dollars in narcotics proceeds. The couriers made contact with individuals holding the bulk cash in private residences or public places such as parking lots and retail stores. The cash was typically concealed in shopping bags, duffel bags or shoeboxes.
Once in possession of the money, the couriers deposited the bulk cash in increments of $22,000 to $45,000 into the funnel bank accounts at Wells Fargo Bank and other U.S. banks controlled by the money laundering organization. The funds were then wire transferred from the funnel accounts to a series of Mexico based shell companies operated by the money laundering organization. Figueroa himself made multiple wire transfers from the funnel accounts knowing that the funds were from unlawful activity. Once in Mexico, the funds were transferred to representatives of the Sinaloa Cartel.
This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise of federal, state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking, and money laundering organizations and enterprises. This case is being prosecuted by Assistant U.S. Attorney Blanca Quintero.
DEFENDANT Case Number: 17CR-2203-WQH
Luis Fernando Figueroa Age: 30 Tijuana, Mexico
SUMMARY OF CHARGES
Money Laundering Conspiracy – Title 18, U.S.C., Section 1956(h)
Criminal Forfeiture (18 U.S.C. 981(a)(1)(C), 18 U.S.C. 982(a)(1), 28 U.S.C. 2461(c))
Maximum penalty: 20 years’ imprisonment and $500,000 fine
AGENCY
Federal Bureau of Investigation’s San Diego Cross Border Violence Task Force
IRS Criminal Investigations
Waterloo Man Sentenced to Nearly Two Years in Federal Prison for Possessing FirearmRead the Press Release
A Waterloo man who possessed a firearm in a car in Waterloo in June 2018 was sentenced May 15, 2019, to nearly two years in federal prison.
Dereon Equwan Davenport, age 20, from Waterloo, Iowa, received the prison term after a November 8, 2018, guilty plea to possessing a firearm as a drug user.
Evidence at sentencing showed that Davenport was driving a car in Waterloo on June 3, 3018, when the Waterloo Police Department stopped him for a traffic violation. When officers approached the vehicle, they smelled marijuana. During a search of the car, officers found an unloaded German .22 caliber revolver and marijuana in the front center console. At the time, Davenport was wanted in Winnebago County, Illinois, for probation violations arising out of an incident in which Davenport was found with dealer-quantity hydrocodone and other prescription pills at a school. There was also a warrant outstanding for Davenport’s arrest in Madison County, Illinois, after Davenport tried to punch his counselor with a closed fist and threatened to return to his health care provider’s place of business with a gun to “shoot the place up.”
Davenport was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Davenport was sentenced to 21 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Davenport was is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Tim Vavricek and investigated by the Federal Bureau of Investigation and the Waterloo Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-2055.
Follow us on Twitter @USAO_NDIA.
Violent Felon Pleads Guilty Under Project EJECT to Robbery and ShootingRead the Press Release
Jackson, Miss. – Joshua Johnson, 25, of Jackson, pled guilty today before Senior U.S. District Judge Tom S. Lee to robbing a local business, brandishing a firearm during the commission of a violent crime, and being a convicted felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Christopher Freeze with the Federal Bureau of Investigation.
On November 21, 2018, around 3:00 a.m., officers with Jackson Police Department responded to an armed robbery at the Exxon Service Station at 4611 I-55 North in Jackson. Witnesses reported that a gunman, later identified as Joshua Johnson, entered the business, pointed a gun at the business clerks, and exited with approximately $374 in cash from the cash drawers and a customer. Johnson was apprehended by Jackson police officers a short time later.
Johnson will be sentenced on September 12, 2019, before Judge Lee and faces a maximum penalty of life in prison and a $250,000 fine.
The case was investigated by the Jackson Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Candace Mayberry.
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 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 our 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..
United States Attorney Mike Stuart Recognizes National Peace Officers' Memorial Day at Annual Memorial Ceremony in HuntingtonRead the Press Release
CHARLESTON, W.Va. — United States Attorney Mike Stuart recognized the service and sacrifice of federal, state, and local police officers yesterday at the annual memorial ceremony hosted by the Huntington Police Department and the Fraternal Order of Police (FOP) Gold Star Lodge 65.
In October 1962, Congress enacted a joint resolution, which the President signed, declaring May 15th as National Peace Officers Memorial Day to honor law enforcement officers killed or disabled in the line of duty. The resolution also created National Police Week as an annual tribute to law enforcement service and sacrifice, which is being observed this year from Sunday, May 12 to Saturday, May 18, 2019. During Police Week, our nation celebrates the contributions of police officers from around the country, recognizing their hard work, dedication, loyalty and commitment in keeping our communities safe.
Last year, 158 law enforcement officers lost their lives in the line of duty. That is 158 too many. On May 13, 2019, Attorney General William Barr honored the men and women of law enforcement and their families at the National Law Enforcement Officers Memorial Fund Candlelight Vigil. The names of all fallen officers nationwide were formally dedicated on the National Law Enforcement Officers Memorial in Washington, DC, during the 31st Annual Candlelight Vigil. The Candlelight Vigil is one of many commemorative events that take place in the nation’s capital during National Police Week 2019.
“Thank you. Thank you for all you do every single day to keep us safe,” said United States Attorney Mike Stuart. “Since becoming United States Attorney, with every passing day I become more and more appreciative of the work performed by federal, state, and local law enforcement, who often face uncertain and dangerous situations without question and without expectation of thanks. The brave men and women in law enforcement work tirelessly to protect our families and our communities, and most often do so without commensurate pay. That is why I was extremely honored to be the guest speaker at Huntington’s annual law enforcement officers memorial service to remind our first responders that they have my unwavering support and appreciation. I will always back the blue.”
For more information about other National Police Week events, please visit www.policeweek.org.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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U.S. Government Files Suit Against Webster Aviation CompanyRead the Press Release
HOUSTON – The U.S. Attorney’s Office for the Southern District of Texas has filed a civil penalty action against Michael D. King and his solely owned company, Ascent Aviation Solutions LLC, based in Webster, announced U.S. Attorney Ryan K. Patrick.
The suit seeks $154,000 in penalties against King and Ascent, alleging King has been operating Ascent as a direct air carrier without the necessary Federal Aviation Administration (FAA) certification. A direct air carrier is one who provides, or offers to provide, air transportation and who maintains control over the operational functions performed in providing the transportation. In order to operate as a direct air carrier, one must hold an FAA-issued certificate after demonstrating one meets the requisite requirements.
The complaint alleges Ascent uses what is known in the industry as a “dry lease” to circumvent the FAA requirements for direct air carriers. Under such lease, the lessee simply leases the equipment and is responsible for all aspects of operational control of the plane. The complaint alleges Ascent entered into a dry lease with a passenger who took at least 14 trips with Ascent.
The passenger did not have operational control of the plane, according to the complaint. He allegedly only paid Ascent to fly him from one city to another. The charges allege Ascent retained operational control of the aircraft – meaning Ascent, not the passenger, handled all flight logistics including hiring the pilots.
The complaint alleges pilots had not passed the competency checks or instrument proficiency checks required under the FAA regulations governing direct air carriers.
“Air safety and integrity in our system is important. When operators in any industry evade regulations by naming or classifying an act as something else, we will hold them accountable,” said Patrick. AAs a licensed pilot myself, I know firsthand the training and education required to operate in the air transport industry. This action ensures passengers are protected when they seek private charter travel and companies compete in a fair manner.”
The FAA conducted the investigation. Assistant U.S. Attorney Michelle Zingaro is handling the case.
Two Plead Guilty to Federal Firearm ChargesRead the Press Release
PROVIDENCE – Two Boston area men have pleaded guilty in federal court in Providence to federal firearm charges brought as the result of a Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and Woonsocket Police Department investigation into the theft of a firearm from a federally licensed firearms dealer in August 2018.
Charlie D. Vick, 30, of Everett, Mass., pleaded guilty in U.S. District Court on Wednesday to being a felon in possession of ammunition. Gabriel A. Rosario, 23, of Chelsea, Mass., pleaded guilty on March 7, 2019, to theft of a firearm from a licensed firearm dealer.
Vick and Rosario’s guilty pleas are announced by United States Attorney Aaron L. Weisman, Special Agent in Charge of the Boston Field Division of ATF Kelly D. Brady, and Woonsocket Police Chief Thomas Oates.
According to court documents and information presented to the Court, on August 31, 2018, Vick and Rosario traveled from Boston with the intent of buying ammunition from a Woonsocket, R.I., licensed firearm dealer, because Rhode Island state law does not require a background check for ammunition purchases, unlike Massachusetts. Once in the store, Vick asked the store manager for assistance with ammunition, and the manager accompanied Vick to an area of the store away from a countertop where a .22 caliber firearm was displayed. While Vick and the manager were away from the counter area, Rosario took the .22 caliber firearm from the countertop, placed it in his waistband, and left the store.
After Rosario left the store, the store manager and Vick returned to the counter area. Vick, a convicted felon, purchased three boxes of ammunition: a box of .38 caliber Smith & Wesson ammunition, a box of .38 special ammunition, and a box of Remington .45 caliber ammunition. After making the purchase, Vick left the store. Both Vick and Rosario are seen entering a dark colored, late model vehicle and leaving the area. The investigation determined that Vick and Rosario immediately returned to Boston. Within a few days the stolen firearm was sold on the streets of Boston.
To obtain assistance from the public in identifying the two men responsible for the theft of the firearm, ATF offered a $1,500 reward leading to the identification of one or both of the men. At least two individuals contacted the Woonsocket Police Department and identified Charlie Vick as being one of the two men depicted in surveillance camera photos publicized by law enforcement. The investigation later determined that the two men arrived and left the parking lot of the gun shop in a vehicle rented in the Boston area by Charlie Vick.
The defendants made initial appearances in U.S. District Court in Providence on January 17, 2019. Rosario is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on June 14, 2019. Vick is scheduled to be sentenced by Chief Judge William E. Smith on August 22, 2019.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
United States Attorney Aaron L. Weisman, Special Agent in Charge of the Boston Field Division of ATF Kelly D. Brady, and Woonsocket Police Thomas Oates thank the United States Marshals Service and the Chelsea, Mass., Police Department for their assistance in the investigation and arrest of Vick and Rosario.
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Two Miami-Dade County Residents Charged Federally for Fraudulently Obtaining Hurricane Harvey Disaster-Relief FundsRead the Press Release
Two Miami-Dade County, Florida residents were charged with participating in a scheme to fraudulently obtain Hurricane Harvey disaster-relief funds.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, made the announcement.
Fredna Frederic, 27, and Courtney Lillie Gillis, 28, both of Miami-Dade County, have been charged by indictment with one count of conspiracy to commit wire fraud and three counts of wire fraud (Case No. 19-20290-CR-Gayles/Otazo-Reyes). If convicted Frederic and Gillis face up to 20 years in prison for the offenses, fines and a term of supervised release.
According to the indictment, after Hurricane Harvey struck the Houston, Texas area, a humanitarian organization made disaster-relief funds available to residents of the affected area. These funds were dispensed by a number of companies, including a national retailer headquartered in Bentonville, Arkansas. In order to qualify for these relief funds, an individual had to enter the names, addresses, and dates of birth of individuals who resided in the affected area. Once this information was verified, the individual would receive a reference code that could be redeemed for a $400 payment at a national retailer.
The indictment alleges, that in order to execute the scheme, Frederic and Gillis’s co-conspirators applied for Hurricane Harvey disaster relief funds by falsely and fraudulently using the names, addresses, and dates of birth of individuals who resided in the disaster-relief area to obtain reference codes. It is alleged that, as part of the scheme, Frederic contacted Gillis, who was an employee of the national retail store where reference codes could be redeemed, and offered Gillis a kickback if she processed the reference codes. It is further alleged that, on approximately fifteen occasions, Frederic provided those reference codes to Gillis, who then entered these reference codes into the retailer’s computer system and then issued payments of $400 per code to Frederic and her co-conspirators.
An indictment merely contains allegations. A defendant is presumed innocent unless and until proven guilty in a court of law.
The National Center for Disaster Fraud (NCDF) is the result of a partnership between the U.S. Department of Justice and various law enforcement and regulatory agencies to form a national coordinating agency within the Criminal Division of the Department of Justice to improve and further the detection, prevention, investigation, and prosecution of fraud related to natural and man-made disasters, and to advocate for the victims of such fraud. Anyone with information about Disaster Fraud is encouraged to call (866) 720-5721.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the USSS in this matter. This case is being prosecuted by Assistant U.S. Attorney Marty Fulgueira Elfenbein.
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.
Two Men Plead Guilty to Counterfeit Currency ConspiracyRead the Press Release
ALEXANDRIA, Va. – Two Washington, D.C. men pleaded guilty this week to conspiring to pass counterfeit currency.
According to court documents, between June 2017 and January 2019, Markee Alexander Brown, 27, and Joseph Andre Robinson, 24, conspired with one another to pass counterfeit $100 and $50 U.S. banknotes to purchase goods and to receive change in genuine U.S. currency from businesses and restaurants throughout the greater metropolitan Washington, D.C. area. Approximately 30 of these counterfeit passes were reported and captured by surveillance footage, and the U.S. Secret Service has collected thousands of dollars in counterfeit federal reserve notes connected to this conspiracy.
Brown and Robinson pleaded guilty to conspiring to pass counterfeit currency and face a maximum penalty of five years in prison when sentenced on August 23. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Brian J. Ebert, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office, made the announcement after U.S. District Judge Anthony J. Trenga accepted the pleas. Assistant U.S. Attorney Nicholas U. Murphy II and Special Assistant U.S. Attorney Michael Jones are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-54.
Two Illegal Aliens Facing Federal Conspiracy, Drug Distribution and Firearms ChargesRead the Press Release
NASHVILLE, Tenn. – May 16, 2019 – A federal grand jury yesterday, returned an eight-count indictment charging two illegal aliens with conspiracy to distribute cocaine and marijuana; illegal possession of firearms; possession of a firearms in furtherance of drug trafficking crimes; and being illegal aliens in possession of firearms; announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Jose Calderon, 19, aka, JoJo, of Mexico, and Brian Paradez, aka Bryant Myers, aka Bryan Josue Paredes-Nataren, 21, of Honduras, were charged in the indictment after an investigation by the Drug Enforcement Administration, which began in June 2018.
According to the indictment and court records, on July 28, 2018, agents were conducting an investigation into illegal drug trafficking at a bar on Murfreesboro Pike in Nashville. At approximately 3:00 a.m., agents saw Paredes exit the bar and get into the back seat of a vehicle, which left at a high rate of speed. Agents followed the car to an apartment complex on Glengarry Drive and watched as the vehicle backed into a parking space and turned off the lights. As agents approached, the vehicle made an evasive maneuver and vaulted from a concrete ledge to escape. Though the vehicle was damaged, it continued erratically on Murfreesboro Pike without lights until stopping at an apartment complex on West End Avenue, after which, all occupants fled on foot. Paredes was found hiding under a parked car a short distance away and was taken into custody. Agents later determined that the car belonged to Paredes and recovered from it a Ruger AR-15 rifle, two loaded handguns, and bags of cocaine and marijuana packaged for resale. Further investigation resulted in this indictment and both of these individuals are in federal custody.
If convicted, Calderon and Peredes faces a minimum of 10 years and up to life in prison, and deportation from the United States.
This case was investigated by the U.S. Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms & Explosives; the U.S. Department of Homeland Security-Immigration and Customs Enforcement; and the Metropolitan Nashville Police Department Gang Unit. Assistant U.S. Attorney Ahmed Safeeullah and Department of Justice Trial Attorney Matthew Hoff are prosecuting the case.
An indictment is merely an accusation. The defendants are presumed innocent until proven guilty in a court of law.
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Three Convenience Store Robbers Sentenced to More Than 14 Years in Federal PrisonRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Travis B. Hall (38, Orlando) to 15 years in federal prison, and Antonio Mobley (43, Orlando) to 14 years and 11 months in federal prison, for committing armed robberies at convenience stores in the Orlando area and for brandishing firearms during these crimes of violence. In addition, Derrick M. Davis (38, Orlando) was sentenced to 14 years and 7 months’ imprisonment for participating in the robberies.
According to court records, on March 1, 2018, at 8:50 p.m., Hall and Davis robbed a convenience store at a Sunoco gas station in Kissimmee. Davis planned the robbery and drove Hall to the store, where Hall began filling a large trash bag with cartons of cigarettes. The attendant on-duty engaged in a shoving match with Hall, after which Hall lifted up his shirt to display a firearm in his waistband and then completed the robbery. Davis and Hall sold the stolen cartons of cigarettes to a cigarette vendor in exchange for cash.
On March 2, 2018, at 7:10 p.m., Davis, Hall, and Mobley robbed a convenience store at a Mobil gas station in Ocoee. Davis planned the robbery, drove Mobley and Hall to the store, and provided Mobley with a firearm. After entering the store, Mobley placed an on-duty attendant in a headlock and held the firearm to the attendant’s head, while Hall filled a trash bag with cartons of cigarettes. Davis, Hall, and Mobley then sold the stolen cartons of cigarettes to a cigarette vendor in exchange for cash.
On March 2, 2018, at 10:08 p.m., Davis, Hall, and Mobley robbed another convenience store at a Marathon gas station in Kissimmee. Davis drove Mobley and Hall to the store and then again provided Mobley with a firearm. After entering the store, Mobley held the on-duty attendant at gunpoint while Hall filled two trash bags with cartons of cigarettes. Hall and Mobley then fled with the firearm and cigarettes.
Hall and Mobley pleaded guilty on October 10, 2018. Davis pleaded guilty on February 27, 2019.
This case was investigated by the Federal Bureau of Investigation, the Osceola County Sheriff’s Office, the Ocoee Police Department, the Kissimmee Police Department, and the Orlando Police Department. It was prosecuted by Assistant United States Attorney Chauncey A. Bratt.
Texas Woman Sentenced for Conspiracy to Commit Mail and Wire Fraud as Part of Lottery ScamRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that DEBRA KROM, age 47, a resident of Wylie, Texas, was sentenced yesterday for her role in a conspiracy to commit mail and wire fraud.
According to court documents, in or before August 2013, and continuing through December 2015, KROM and others operated a scheme to contact elderly individuals and people with diminished capacity. The scheme involved contacting victims by telephone through Voice over Internet Protocol (“VoIP”) and informing them that they had won a lottery and needed to pay KROM and others monies by cash, check, wire, or other methods in order to claim their lottery winnings.
After receiving victims’ funds through United States mail, private mail carrier, or through an electronic transfer, KROM and other co-conspirators known and unknown to the United States Attorney, with knowledge that the money they received was obtained through false and fraudulent pretenses, did knowingly and intentionally transfer the stolen money to bank accounts in Jamaica.
U.S. District Judge Sarah S. Vance sentenced KROM to serve 12 months and one day imprisonment, followed by a 2-year term of supervised release, and to pay restitution in the amount of $75,928.
U.S. Attorney Strasser praised the work of the United States Postal Service, Office of Inspector General, United States Secret Service, and the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Sharan E. Lieberman was in charge of the prosecution.