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Monday 13 May 2019
Another Morgan Management Employee Pleads Guilty for His Role in Multi-Million Dollar Fraud SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Scott Cresswell, 52, Ionia, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to conspiracy to commit wire fraud. The charge carries a maximum penalty of 20 years in prison and a $5,994,639.86 fine.
Assistant U.S. Attorneys John D. Fabian and Douglas A.C. Penrose, who are handling the case, stated that between March 2017 and April 2018, the defendant was the Chief Operating Officer for Morgan Management, LLC. During that time, Cresswell conspired with others, under the direction of Robert Morgan and others, fraudulently to obtain insurance policy proceeds for repairs on properties managed by Morgan Management, LLC.
On March 27, 2017, Cresswell received an executed copy of a $2,500,000 contract for the cost of repairs at the Summerwood Apartments in Merrillville, Indiana. However, in May 2017, the defendant or other members of the conspiracy caused a false and inflated contract totaling $3,236,519, a false invoice, and a false and inflated lien waiver for repairs at the Summerwood Apartments to be sent to an insurer.
Similarly, from March to May 2017, Cresswell conspired with others to present false and inflated contracts and invoices to insurers in connection with repairs at the Eden Square Apartments in Cranberry Township, Pennsylvania. Despite being aware that repairs at the property were being completed for $174,999, the defendant or others sent inflated documents to insurers reflecting repair costs of $263,013.57.
In addition, from June 2017 to January 2018, Cresswell conspired with others to present false and inflated contracts and invoices to insurers in connection with repairs on 34 properties in and around Rochester after a windstorm that occurred in March 2017. On August 1, 2017, the defendant learned that, as of that date, the anticipated cost of the repairs was approximately $3,650,000. However, Cresswell and other members of the conspiracy planned to bill insurance companies at least $5,860,000. The profit to Morgan Management for this scheme to defraud was approximately $2,210,000. Cresswell admitted that, at Robert Morgan’s direction, he encouraged and instructed others to “grind the best you can” to get the profit for the repair work up to $2,500,000.
As a result of the false and inflated documents presented by the defendant and others, which included repairs at the Summerwood Apartments, Eden Square, and at the 34 properties impacted by the March 2017 windstorm, the total loss was $2,997,319.93.
“With the defendant’s plea today, this Office, with our partners at the FBI and FHA, have peeled back yet another layer in this extensive fraud scheme,” noted U.S. Attorney Kennedy. “Our efforts will not cease until the entirety of the fraudulent scheme is exposed.”
Today’s plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent-in-Charge Robert Manchak, Northeast Region.
Sentencing will be scheduled at a later date before Judge Wolford.
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Anchorage Man Charged with 32 Counts of Aiding and Assisting in Preparation of False Income Tax ReturnsRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Jose Luis Arenas, 64, of Anchorage, was named in an indictment charging him with 32 counts of aiding and assisting in preparation of false federal individual income tax returns.
According to the indictment, beginning in 2013, Arenas prepared tax returns for Alaska clients who paid him for his services. The indictment alleges that for tax years 2013 through 2016, Arenas willfully reported false itemized expenses to the IRS on behalf of his clients. Arenas’ false submissions allegedly included false medical and dental expenses that fraudulently reduced the amount of income tax owed, and/or fraudulently inflated his clients’ income tax refunds.
If convicted, Arenas faces a maximum sentence of three years in prison, and a $250,000 fine. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
IRS Criminal Investigation (IRS-CI) conducted the investigation leading to the charges in this case. This case is being prosecuted by Assistant U.S. Attorney Kimberly Sayers-Fay.
The charges in the indictment are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
18 Offenders Arrested in DCS-Led Operation MayhemRead the Press Release
MACON – Operation Mayhem, a multi-agency roundup targeting validated gang members and/or violent parolees/probationers in the Macon area, resulted in the arrest of 18 offenders, announced United States Attorney Charles “Charlie” E. Peeler. Operation Mayhem was conducted during the early hours of Thursday, May 9, 2019, and was a coordinated effort led by the Georgia Department of Community Supervision (DCS) in partnership with the United States Attorney’s Office, the United States Marshals Task Force, the Southeast Regional Fugitive Task Force (SERFTF), the Georgia Bureau of Investigation (GBI), the Georgia State Patrol (GSP), the Bibb County Sherriff’s Office, and the District Attorney’s Office for the Macon Judicial Circuit, along with support from additional local law enforcement agencies. Operation Mayhem’s goal was to locate and arrest the most wanted parole/probation fugitives in the Macon Judicial Circuit. The DCS Criminal Intelligence Unit and the DCS Macon office identified and located these fugitive offenders. As a result of this intelligence-driven effort, best known locations were identified for the targeted parolee/probationer absconders with outstanding warrants for Violation of Parole or Violation of Probation.
“This was a tremendously successful operation led by DCS and a great service to law-abiding Macon residents,” said Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. “In the course of just a few hours, 18 dangerous individuals wanted for violating the law were brought into custody, making our community safer. I want to thank the DCS, the Bibb County Sheriff’s Office and our other law enforcement partners for their total commitment to improving community safety for people living in Middle Georgia.”
“Stopping and dismantling gang activity is an important priority as we seek to protect our communities from violent offenders,” said James Bergman, the Special Operations Unit Director for DCS. “An operation of this breadth requires collaboration across many agencies--it is impossible to do alone. DCS is grateful for the agencies and departments who have partnered with us to make this operation successful.”
“I am proud that Operation Mayhem was a very effective mission, capturing 18 offenders. This collaborative effort sends a message to our citizens and to the criminals that law enforcement agencies tasked with protecting our community are united and committed to making a difference,” said Sheriff David Davis, Bibb County Sheriff’s Office.
The United States Attorney’s Office support of Operation Mayhem is part of Project Safe Neighborhoods (PSN), 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.
Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Sunday 12 May 2019
Statement of U.S. Attorney Jason Dunn on the Passing of Senior Judge Wiley Y. DanielRead the Press Release
While many of us work to make a difference in the legal profession, the Honorable Senior Judge Wiley Y. Daniel led the way. He was a trailblazer. Since arriving in Colorado in 1977, he pushed our state to become better - and thanks to him - it did. We celebrate his life of leadership, as a lawyer who was the first African American elected President of the Colorado Bar Association, appointed District Court Judge to the United States District Court and, later, the Chief Judge of that Court. Judge Daniel always worked to make things better and he succeeded, often with a warm smile that made you glad to be in his presence. We mourn his passing and will miss him dearly. But we are all grateful to have appeared before him, and to have been shaped by his vision and his leadership.
Arrest Made in Deadly Appalachian Trail StabbingRead the Press Release
Abingdon, VIRGINIA – United States Attorney Thomas T. Cullen and David W. Archey, the Special Agent in Charge of the FBI’s Richmond Division, announced today an arrest in a deadly stabbing incident that occurred along the Appalachian Trail in Wythe County, Virginia that left one person dead and another severely injured.
James L. Jordan 30, of West Yarmouth, Massachusetts, was arrested in the early morning hours of Saturday, May 11, 2019 on a federal criminal complaint. Jordan is charged with one count of murder within the special maritime territorial jurisdiction of the United States and one count of assault with the intent to murder within the special maritime territorial jurisdiction of the United States.
“I commend local law enforcement in Wythe and Smyth Counties for mobilizing successful rescue and tactical operations in this remote region,” U.S. Attorney Cullen stated today. “Thanks to their efforts, the suspect was safely apprehended and a seriously wounded victim received critical medical care. We will continue to work with our state and local partners to bring the perpetrator of this senseless and brutal attack to justice.”
This investigation is ongoing. The federal charges against Jordan will be officially filed in U.S. District Court in Abingdon Monday morning. The defendant will have an initial court appearance in federal court in Abingdon on Monday, May 13, 2019.
A criminal complaint is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Friday 10 May 2019
Woman Sentenced to 35 Years in Prison for Murdering Six-Year-Old BoyRead the Press Release
PHOENIX, Ariz. – Yesterday, Latoya Leonardine Johnson, 25, of Ajo, Ariz., was sentenced by U.S. District Judge David G. Campbell to 35 years in prison followed by five years of supervised release for murdering a six-year-old boy on the Tohono O’odham Indian Reservation. Johnson previously pleaded guilty to Second Degree Murder.
On September 24, 2017, the Federal Bureau of Investigation, United States Border Patrol, and members of the Tohono O’odham Police Department began to search for the missing six-year-old victim. They ultimately located foot sign indicating an adult and a child had walked from the remote village into the desert. While following the foot sign, law enforcement came across the victim’s t-shirt and found a long wooden object. From there, the adult footprints continued along with what appeared to be drag marks. Ultimately, the footprints led law enforcement to discover the victim’s body.
Johnson, a member of Tohono O’odham, admitted to walking the victim, who lived nearby, into the desert and beating him with the wooden object, resulting in his death. The victim was also a Tribal member of Tohono O’odham.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Tohono O’odham Police Department. The prosecution was handled by Christine D. Keller and Anthony W. Church, Assistant U.S. Attorneys, District of Arizona, Phoenix.
Walterboro Man Sentenced to Thirty Years for Federal Narcotic and Firearms OffensesRead the Press Release
Charleston, South Carolina ---- United States Attorney Sherri A. Lydon stated today that Marion Katrell Campbell, age 38, of Walterboro, South Carolina, was sentenced for possession with intent to distribute methamphetamine, possession of a firearm and ammunition by a convicted felon, and possession of a firearm in furtherance of a drug trafficking crime. United States District Judge Bruce H. Hendricks of Charleston sentenced Campbell to 360 months in prison followed by 6 years of supervised release.
Evidence presented at trial established that on July 8, 2017, Campbell was the driver and sole occupant of a car stopped by officers with the Walterboro Police Department for a defective headlight. A K9 search was conducted on the vehicle after Campbell was placed under arrest for driving under suspension and failure to pay multiple traffic citations. After a positive alert from the K9, officers searched the vehicle and located a loaded .38 caliber Charter Arms revolver under the driver’s seat, extra ammunition on the driver’s side floorboard and in the driver’s door, plastic bags containing methamphetamine in the driver’s door and center console, as well as additional plastic baggies used for packaging drugs for distribution on the front passenger seat and in the passenger door. In total, there were 42 individual bags of methamphetamine measured out in various weights for distribution. The total net weight of the methamphetamine was a little less than 37 grams.
After Campbell was arrested, he placed numerous phone calls to his friends and family from jail trying to convince other people to claim the firearm located in the vehicle that night.
Campbell has a lengthy criminal history, which includes convictions for criminal domestic violence, forgery, failure to stop for a blue light, strong arm robbery, multiple drug possessions, and multiple possessions with intent to distribute crack and cocaine.
The case was investigated by the Walterboro Police Department and agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted pursuant to 14th Circuit Solicitor Duffie Stone’s longstanding partnership with the United States Attorney’s Office to target career criminals in Beaufort, Jasper, Hampton, Colleton, and Allendale Counties in federal court as well as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases.
Project CeaseFire is South Carolina’s implementation of Project Safe Neighborhoods (PSN), 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.
Special Assistant United States Attorney Carra Henderson of the 14th Circuit Solicitor’s Office and Assistant United States Jamie Schoen of the US Attorney’s Office in Charleston prosecuted the case.
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Vermont Man Who Exploited Opioid Addictions of Young Women Convicted of Multiple Counts of Sex and Drug Trafficking and Related OffensesRead the Press Release
After a three-week trial, a federal jury in Burlington, Vermont, found Brian Folks, 44, guilty of 13 federal felonies arising from his operation of a violent sex and drug trafficking enterprise that sold heroin and forced young, drug-addicted women to prostitute throughout the greater Burlington area. The verdict was announced by Assistant Attorney General Eric Dreiband for the Department of Justice’s Civil Rights Division, U.S. Attorney Cristina E. Nolan for the District of Vermont, and DEA Special Agent in Charge-Boston Brian D. Boyle.
The jury deliberated for six hours yesterday before convicting Folks of all sex and drug trafficking counts. The convictions included five counts of sex trafficking by force, fraud, or coercion; one count of sex trafficking of a minor; one count of operating an unlawful prostitution business enterprise; five counts of distributing heroin; one count of possession of cocaine base with intent to distribute; and one count of conspiracy to distribute heroin and cocaine base. The jury acquitted the defendant of one count of felon in possession of a firearm.
“Brian Folks used violent means to force young women suffering from opioid addictions to perform commercial sex acts, causing them immeasurable harm, and he contributed to the destruction of multiple lives by selling opioids to our communities,” said Assistant Attorney General Eric Dreiband. “Human traffickers are exploiting the opioid epidemic with increasing frequency. Their depraved conduct, like this defendant’s, will not be tolerated, and the Department of Justice will continue its vigorous efforts to hold them accountable, bring justice to their victims, and prevent them from harming others.”
“This conviction represents a total vindication for victims of human trafficking, who bravely told their stories of abuse and degradation at the hands of Folks,” said U.S. Attorney Christina E. Nolan for the District of Vermont. “Folks is a merciless predator, who targeted vulnerable young addicted women. We are grateful that a Vermont jury has served up justice. We hope that this conviction will help the countless other victims of human trafficking find their voices and come forward to seek help and services. We will never stop looking for them, connecting them with recovery services, and seeking convictions and stiff penalties for those who would commit this most heinous of crimes. I commend the collaboration of federal and local law enforcement officers who tirelessly pursued Folks, showing compassion and support for the victims and a recognition that combatting human trafficking is a crucial component of our anti-drug campaign.”
“DEA will aggressively pursue individuals like Mr. Folks who distribute heroin in order to profit and destroy people’s lives,” said DEA Special Agent in Charge Brian D. Boyle. “Today’s verdict not only holds Mr. Folks accountable for his crimes but serves as a warning to those traffickers who are fueling the opioid epidemic.”
Evidence presented at trial, including the testimony of victims, established that, between June 2012 and March 2016, Brian Folks targeted young, vulnerable women in the Burlington area. Most had experienced past trauma related to physical and sexual abuse as children growing up in broken homes. By the time they encountered Folks, most were addicted to drugs and homeless. Folks identified their weaknesses, recruited them, and then forced them to perform commercial sex acts for his profit. If they refused or otherwise “violated” one of his many strict rules, he inflicted serious consequences. He beat them, often in front of other victims, creating a climate of fear, and he sexually assaulted them. He withheld heroin from them, causing them to suffer painful physical and mental withdrawal symptoms. He also videotaped them performing explicit and humiliating sex acts on him, with him, and for him and threatened to expose those videos to the public. Evidence showed that Folks maintained a digital library containing thousands of photographs and videos of the victims. Among the defendant’s victims was a 17-year-old, who suffered from heroin-addiction and who is now deceased. The defendant recruited her to prostitute, photographed her, and advertised her online for prostitution. He then created and published a video on Facebook in which he denounced her as a “promiscuous addict.”
The evidence further established that Folks conspired with two co-defendants to sell heroin and cocaine base throughout the greater Burlington area. Folks’ drug trafficking enterprise was an integral part of his sex trafficking enterprise, and vice versa. He used his access to drugs to identify and target susceptible victims. At first, he promised to split any prostitution proceeds with them, but then he took the remainder in exchange for drugs. As a result, Folks took all of the proceeds and kept the victims under control and dependent on him. He also used the victims to carry out parts of his drug operation. For example, he had them bag the drugs, including heroin and cocaine base, for individual sales and then sell the drugs to buyers through hand-to-hand exchanges. As part of his drug trafficking emperies, he resorted to physical and sexual violence to control the victims and ensure maximum drug profits.
The defendant faces a minimum sentence of 15 years’ imprisonment and a maximum sentence of life imprisonment, as well as mandatory restitution to the sex trafficking victims. His sentencing hearing has not yet been scheduled.
Co-defendants Darren McFarlan and Mandy previously pleaded guilty to conspiring with the defendant to distribute heroin and cocaine base. They both face a maximum sentence of 40 years’ imprisonment.
This case was investigated by the Drug Enforcement Agency’s New England Division, with assistance from the Burlington, Winooski, and Essex, Vermont, Police Departments and the FBI. It is being prosecuted by Assistant U.S. Attorney William Darrow for the District of Vermont and Trial Attorney Emily Savner and Special Litigation Counsel Matthew Grady for the Civil Rights Division’s Criminal Section and its Human Trafficking Prosecution Unit.
U.S. Attorney Recognizes the Sacrifice of Law Enforcement Officers during National Police WeekRead the Press Release
U.S. Attorney Trent Shores recognizes the service, courage and sacrifice made by federal, state, local, and tribal law enforcement officers on the occasion of National Police Week, which is being observed Sunday, May 12 to Saturday, May 18, 2019.
As part of the observance, U.S. Attorney Shores is honored to speak at the Law Enforcement Memorial Service, scheduled for May 14, at 11 am, in Chandler Park. The Fraternal Order of Police Lodge 188 and Tulsa County Sheriff’s Office host the annual event to honor and remember the legacy of fallen officers.
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.
“During Police Week, our nation celebrates the contributions of police officers from around the country. We recognize their sacrifice, loyalty, and commitment to fighting for that which is right. Police officers are the peacekeepers and protectors of our community,” said U.S. Attorney Shores. “Police officers, investigators, detectives, and agents put on their uniform and go out to face danger without question or expectation of thanks. For that and for all they do, law enforcement have my sincerest thanks and appreciation.”
According to statistics reported to the FBI, 106 law enforcement officers were killed in line-of-duty incidents in 2018. In Oklahoma, former Comanche County Drug Task Force investigator Timothy Dale Cole died as a result of gunshot wounds sustained in 2007 when assisting the Oklahoma Bureau of Narcotics serve a warrant in Lawton. His resulting spinal cord injury rendered him paraplegic, and he passed away due to complications on Aug. 4, 2018. Timothy Cole is survived by his wife, three children, and eight grandchildren.
Comprehensive data tables about these incidents and brief narratives describing the fatal attacks are included in the sections of Law Enforcement Officers Killed and Assaulted, 2018 https://ucr.fbi.gov/leoka/2018/ released this week by the FBI.
The names of all 106 fallen officers nationwide will be formally dedicated on the National Law Enforcement Officers Memorial in Washington, DC, during the 31st Annual Candlelight Vigil on the evening of May 13, 2019. No tickets are required and everyone is welcome. For additional information, please call 202-737-3400.
The Candlelight Vigil is one of many commemorative events taking place in the nation’s capital during National Police Week 2019.
For more information about other National Police Week events, please visit www.policeweek.org.
U.S. Attorney Recognizes Police WeekRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank recognized the service and sacrifice of federal, state, local, and tribal police officers on the occasion of National Police Week, which is being observed from Sunday, May 12 to Saturday, May 18, 2019.
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.
“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,” said U.S. Attorney Frank. “I want to acknowledge the work performed by federal, state, local, and tribal law enforcement, who often face uncertain and dangerous situations without question and without expectation of thanks. We want them to know they have our unwavering support and appreciation.”
According to statistics reported to the FBI, 106 law enforcement officers were killed in line-of-duty incidents in 2018, including Somerset County Deputy Sheriff Corporal Eugene P. Cole in Maine.
Comprehensive data tables about these incidents and brief narratives describing the fatal attacks are included in the sections of Law Enforcement Officers Killed and Assaulted, 2018 https://ucr.fbi.gov/leoka/2018/ released this week by the FBI.
The names of all 106 fallen officers nationwide, including that of Corporal Cole, will be formally dedicated on the National Law Enforcement Officers Memorial in Washington, DC, during the 31st Annual Candlelight Vigil on the evening of Monday, May 13, 2019. No tickets are required and everyone is welcome. For additional information please call 202-737-3400.
The Candlelight Vigil is one of many commemorative events taking place in the nation’s capital during National Police Week 2019.
For more information about other National Police Week events, please visit www.policeweek.org.
U.S. Attorney Duncan Recognizes National Police WeekRead the Press Release
LEXINGTON, Ky. – U.S. Attorney Robert M. Duncan, Jr. recognizes the service and sacrifice of federal, state, local, and tribal police officers on the occasion of National Police Week, which is being observed Sunday, May 12 to Saturday, May 18, 2019.
In October 1962, Congress enacted a joint resolution, signed by the President, declaring May 15th as “National Peace Officers Memorial Day,” to honor law enforcement officers killed or injured in the line of duty. The resolution also created National Police Week, as an annual tribute to law enforcement service and sacrifice.
“During National Police Week, we celebrate the contributions of police officers from around the country, recognizing their hard work, dedication, loyalty and commitment to keeping our communities safe,” said U.S. Attorney Duncan. “As the United States Attorney for the Eastern District of Kentucky, I want to salute the work of federal, state, local, and tribal law enforcement, who often face uncertain and dangerous situations without question and without expectation of thanks. We need them to know they have our unwavering support and appreciation.”
According to statistics reported to the FBI, 106 law enforcement officers were killed in line-of-duty incidents during 2018, including one officer in the Eastern District of Kentucky. On March 13, 2018, Pikeville Police Officer Scotty Hamilton was ambushed, shot, and killed during an investigation of a stolen vehicle. John R. Hall, 56, of Pikeville, pleaded guilty to murdering Officer Hamilton. Hall was sentenced to life in prison, without the possibility of parole.
“Officer Hamilton was committed to making Pikeville and the Commonwealth of Kentucky a better place,” said U.S. Attorney Duncan. “Officer Hamilton was a valued colleague, working with the FBI and United States Attorney’s Office, and he tirelessly endeavored to protect the public and to pursue justice. He gave his life in service to his community and we can never forget Officer Hamilton’s ultimate sacrifice.”
Comprehensive data tables about officers killed in line-of-duty incidents and brief narratives describing the fatal attacks are included in Law Enforcement Officers Killed and Assaulted, 2018 https://ucr.fbi.gov/leoka/2018/, which was released this week by the FBI.
The names of all 106 fallen officers nationwide will be formally dedicated, on the National Law Enforcement Officers Memorial in Washington, DC, during the 31st Annual Candlelight Vigil, on the evening of May 13, 2019. No tickets are required and everyone is welcome. For additional information, please call 202-737-3400.
The Candlelight Vigil is one of many commemorative events taking place in the nation’s capital during National Police Week 2019. For more information about other National Police Week events, please visit www.policeweek.org.
In the Eastern District of Kentucky, events are planned to honor law enforcement officers in conjunction with National Police Week. On May 15, 2019, the Northern Kentucky Police Memorial Service will be held at 10:00 a.m., at the Northern Kentucky Police Memorial, Foot of the Suspension Bridge, Covington, KY. The Kentucky Law Enforcement Memorial Foundation’s Memorial Ceremony is scheduled for May 23, 2019, at 11:00 a.m. at the Department of Criminal Justice Training, on the campus of Eastern Kentucky University, in Richmond.
Two Individuals Indicted on 12 Counts for Theft of Government Funds, Wire Fraud, BriberyRead the Press Release
MUSKOGEE, OKLAHOMA – A federal grand jury in the Eastern District of Oklahoma returned a twelve-count indictment Wednesday afternoon charging two individuals in connection with the theft and embezzlement of funds from business entities wholly owned by the Alabama-Quassarte Tribal Town (AQTT) of Wetumka, OK.
The AQTT is a tribal town located in Oklahoma with an enrollment of around 280 members. As a component of the original Creek Confederacy, AQTT’s members have dual citizenship with the Muscogee (Creek) Nation. The AQTT-owned business entities focus primarily on federal contract procurement in Huntsville, AL.
Charged in the indictment are AARON DEWAYNE TERRY, age 66, of Wichita Falls, TX and CHRISTINA ROCHELLE ANGLIN, age 44, of Burnsville, NC.
The defendants are charged with the following counts in the indictment: Counts One through Eight – THEFT BY AN AGENT OF AN INDIAN TRIBAL GOVERNMENT RECEIVING FEDERAL FUNDS, in violation of Title 18, United States Code, Section 666(a)(1)(A); Count Nine – CONSPIRACY TO COMMIT THEFT OR BRIBERY OF PROGRAMS RECEIVING FEDERAL FUNDS, in violation of Title 18, United States Code, Section 371; Count Ten – WIRE FRAUD, in violation of Title 18, United States Code, Section 1343; Count Eleven – CONSPIRACY TO COMMIT WIRE FRAUD, in violation of Title 18, United States Code, Section 1349; and Count Twelve - BRIBERY CONCERNING PROGRAMS RECEIVING FEDERAL FUNDS, in violation of Title 18, United States Code, Section 666(a)(1)(B).
During the time of the conspiracy, from 2012 to 2019, CHRISTINA ROCHELLE ANGLIN was the Controller, and later the Chief Financial Officer, for all the AQTT-owned business entities. AARON DEWAYNE TERRY, likewise, held various executive management and control positions within the AQTT-owned business entities during this period.
Counts One through Eight, and Count Twelve, each carry a statutory range of punishment of not more than ten years imprisonment and a fine of up to $250,000.00. The statutory range of punishment for Count Nine is not more than 5 years imprisonment and a fine of up to $250,000.00. Counts Ten and Eleven each carry a statutory range of punishment of not more than 20 years imprisonment and a fine of up to $250,000.00.
Agencies responsible for the multi-year investigation, which led to the indictment, include the Federal Bureau of Investigation, Defense Criminal Investigative Service, Internal Revenue Service – Criminal Investigation, Office of Inspector General – General Services Administration, Office of Inspector General – Small Business Administration, Naval Criminal Investigative Service, and Army Criminal Investigation Command.
Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
Towson Woman Sentenced to More Than Three Years in Federal Prison for Wire Fraud and Identity TheftRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen Hollander today sentenced Alice Gardner, age 44, of Towson, Maryland, to 37 months in prison, followed by five years of supervised release, for conspiracy to commit wire and bank fraud, and aggravated identity theft. On May 6, 2019, co-defendant Natasha Wyche, age 42, of Owings Mills, Maryland, was sentenced to three years in prison, followed by five years of supervised release, on the same charges. Judge Hollander ordered both defendants to pay restitution in the amount of $170,837.
The sentences were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Chief Terrence B. Sheridan of the Baltimore County Police Department; Chief Lisa Myers of the Howard County Police Department; and Chief Michael Birmingham of the Maryland Motor Vehicle Administration (MVA) Investigative Division.
According to their plea agreements, from February 2013, through December of 2014, Gardner and Wyche conspired with Chris Jordan, Cynquetta Martin, and others to commit bank and wire fraud. The conspirators would acquire the social security number (SSN) of a victim, often a minor child, then use that number on paperwork to purchase vehicles from car dealerships.
For example, on December 4, 2012, Wyche went to a car dealership in Owings Mills, and applied for a vehicle loan to purchase a 2010 Acura TL using a victim’s SSN. The approved loan was for $29,194. On August 30, 2014, Wyche went to three car dealerships in Maryland, and applied for three vehicle loans to purchase a 2008 Honda Odyssey, a 2014 Hyundai Sonata, and a 2013 Toyota Corolla, using the SSN of a victim. The approved loans were for $20,409, $29,368, and $21,247, respectively.
On November 24, 2014, Gardner went to two car dealerships and applied for two vehicle loans to purchase a 2009 Toyota Camry and a 2009 Lexus RX350, using the stolen SSN of a victim. The loans were approved for 12,631 and $22,704 respectively. In addition, on December 6, 2014, Gardner went to another car dealership, and applied for a loan to purchase a 2015 Hyundai Sonata, using the SSN of a victim. The loan was approved for $32,947.
The vehicles acquired would be sold by a co-defendant to unsuspecting buyers through an online marketplace. The proceeds of the scheme, which total approximately $300,000, were split between Gardener, Wyche, and other co-defendants.
Chris Jordan, and Cynquetta Martin have pleaded guilty to their roles in the scheme. No date has been set for their sentencing.
United States Attorney Robert K. Hur commended the SSA Office of Inspector General, the Baltimore County Police Department, the Howard County Police Department, and the MVA Investigative Division for their work in this investigation. Mr. Hur thanked Assistant U.S. Attorney Judson Mihok, and Special Assistant U.S. Attorney Michael Davio, who prosecuted the federal case.
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Three indicted for conspiracy to steal trade secrets from aircraft companiesRead the Press Release
SAVANNAH, GA: Three men have been charged with conspiring to steal trade secrets from aircraft companies as a shortcut to developing and selling their own aircraft product.
Gilbert Basaldua, Joseph Pascua, and Craig German have been indicted for Conspiracy to Steal Trade Secrets, while Basaldua also has been indicted for Interstate Transportation of Stolen Property, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.
The indictment alleged that all three men agreed to work on developing a product for a competitor company in return for a share of profits. In order to obtain FAA certification for the product, however, an icing wind tunnel testing plan needed to be developed. To shortcut the process of developing this plan, the indictment alleged that all three men agreed to steal trade secrets, including aircraft wing schematics and anti-ice testing documents, from aircraft companies in and outside of the Southern District of Georgia.
“The theft of trade secrets is an emerging economic threat,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “Together with our federal, state, local and private sector partners, we will lead the fight to protect technological innovation from criminal misappropriation.”
“The FBI is committed to identifying and prosecuting those who engage in illegal and deceptive practices to steal trade secrets and protected information from companies who spend millions of dollars to develop it,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “As the extent of these charges suggest, the FBI will not tolerate criminals that violate laws that protect companies and are in place to keep Americans safe.”
An indictment contains only charges. Defendants are presumed innocent unless and until proven guilty. Each of the charges, upon conviction, carries a penalty of up to 10 years in prison, a fine of up to $250,000 and up to three years of supervised release upon completion of any prison sentence. There is no parole in the federal system.
The case is being investigated by the FBI, and prosecuted for the United States by Assistant United States Attorneys Jennifer G. Solari and Steven H. Lee.
Three Palm Beach County Men Charged with $3.6 Million Investment Fraud SchemeRead the Press Release
Three Palm Beach County residents have been charged with orchestrating a $3.6 million investment fraud scheme.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Ronald L. Rubin, Commissioner, Florida Office of Financial Regulation (OFR), made the announcement.
T. Jonathan Turner, a/k/a “Jon Barri Brothers,” 52, of Wellington, Florida, Norman M. Strell, 73, of Wellington, Florida and Scott P. Strochak, 57, of Boynton Beach, Florida were charged by indictment with conspiracy to commit wire fraud and 15 substantive wire fraud counts (Case No. 19-80073-CR-Rosenberg). Today, Turner was arraigned and Strell had his initial appearance.
According to allegations in the court record, including those contained in the indictment and previously filed criminal complaint, Turner was the Vice Chairman, President and Chief Operations Officer of Castleberry Financial Services Group. Castleberry falsely promoted itself to investors as “a leading Alternative Investments Manager” with a history of “deploying almost $800 million in capital across the balance sheets of leading local businesses.” In addition, contrary to its representation that it managed separate funds, Castleberry pooled investor funds in one bank account that was controlled by Turner and co-conspirator Strell. Turner, Strell and Strochak promoted the sale of Castleberry’s securities through materials and solicitations that falsely represented that the company’s investor proceeds were fully bonded and insured and would be invested in real estate and distressed businesses to generate profits from which investor returns would be paid. In addition, they lured individuals to invest money in Castleberry’s securities offerings by falsely touting Turner’s prior financial industry experience and educational achievements, while failing to disclose his prior felony convictions for fraud related offenses. In fact, Castleberry did not make any significant income generating investments. Instead, Turner and his co-conspirators misused and misappropriated investor funds to pay for their own personal expenses, transfer money into their own bank accounts, accounts of entities they controlled and those of family members.
The court record alleges that as a result of the fraudulent scheme, 15 investor victims lost more than $3.6 million.
The U.S. Securities and Exchange Commission (SEC) filed a parallel civil enforcement action against Turner related to this scheme.
An indictment contains allegations. Every defendant is presumed innocent unless and until proven guilty in a court of law.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI and OFR in this matter. She thanked the SEC Miami Regional Office for their assistance. This case is being prosecuted by Assistant U. S. Attorney Lothrop Morris.
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.
Three More Defendants Sentenced for Role in Drug Conspiracy Linked to Mexican Drug CartelRead 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 Max Paul Riestra, 42, who was convicted of conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine and conspiracy to commit money laundering, was sentenced to serve 216 months in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Michael J. Adler, who handled the case, stated Riestra, a citizen of Mexico who was previously deported, utilized multiple names, including Carlos Alberto Riestra, Jesus Valdonado Castro, Jose Zamora, Jesus Ivan Riestra Delgado, in furtherance of the conspiracy. Between 2012 and March 2016, the defendant opened multiple bank accounts that were utilized by others to structure deposits from places around the United States, including Buffalo to California. Riestra and his co-conspirators, including co-defendants Jose Manuel Lua-Guizar, Gerardo Ballardo, Enrique Munoz, Pethrod Dunnigan, and Bryant Hudson, accounted for over $1,000,000 in structured deposits in Buffalo and over $10,000,000 in structured deposits nationwide during this timeframe. The defendant himself had over $1,500,000 in structured deposits made into accounts he controlled. The defendant also utilized multiple accounts to ship packages containing kilograms of cocaine from California to cities across the country including Buffalo, Denver, Chicago, and New York City
Riestra is one of seven defendants involved in an illegal narcotics operation stretching from Sinaloa, Mexico to Western New York. Law enforcement officers began investigating a sophisticated drug trafficking organization with ties to a Mexican drug cartel operating out of Los Angeles, California area in 2014. All seven defendants have been convicted in this case. Defendants Enrique Munoz and Jose Manuel Lua-Guizar were also recently sentenced to 63 months each. Co-defendants Gerardo Ballardo and Presiliano Garcia are the last defendants awaiting sentencing. Garcia was a Bank of America employee who opened multiple accounts for Riestra, and others.
“This case demonstrates that the activities of the Mexican cartel have a very real impact on the lives of individuals in our Western New York community,” noted U.S. Attorney Kennedy. “I think too often the thought is that their drug trafficking is simply the stuff of television and movies and is somehow removed from the ugliness that we too often see on the streets in our community. That is not the case, and this prosecution should serve as a reminder that this Office, with our law enforcement partners, will remain vigilant in doing all that we can to protect our community from the scourge that the cartel seeks to spread throughout our country.”
The sentencings are the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; Homeland Security Investigations, under the direction of Special Agent in Charge Kevin Kelly; and the Internal Revenue Service, Criminal Investigation Division, under the direction of Acting Special Agent-in-Charge Jonathan D. Larsen, New York Field Office. Additional assistance was provided by ICE-HSI in Los Angeles, California and Bank of America.
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Three Aliens Indicted on Illegal Reentry ChargesRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned indictments charging JOSE JESUS CAMACHO-JARAMILLO, age 29, of Mexico, AGUSTIN NUNEZ-LEONARDO, age 20, of Mexico, and Lorenzo OROCIO-Cruz, age 35, of Mexico, with Illegal Reentry of a Deported Alien.
If convicted of illegal reentry of a deported alien, CAMACHO-JARAMILLO, who was previously convicted of Unlawful Entry, deported twice, and then found in Johnston County; NUNEZ-LEONARDO, who was previously convicted of Unlawful Entry, deported three times, and then found in Wake County; and OROCIO-Cruz, who was previously convicted of Unlawful Entry, deported twice, and then found in Granville County, would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by ICE’s Enforcement and Removal Operations and Homeland Security Investigations.
Texas Man Sentenced to 46 months for Threatening CommunicationsRead the Press Release
LEXINGTON, Ky. — Diontre Lawayne Davis, 24, of Fort Worth, Texas, was sentenced yesterday, to 46 months in federal prison, by United States District Judge Danny C. Reeves, for threatening communications.
Davis previously admitted that, from August to October 2016, he posted death threats to a student at the University of Kentucky (UK), via Twitter. Law enforcement became aware of the threats; and in November 2017, Davis came to the UK campus armed with a concealed handgun. Due to the nature of the threats, UK evacuated the area until law enforcement confirmed the threat had been alleviated.
Under federal law, Davis 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 a term of three years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; James Robert Brown, Jr., Special Agent in Charge of the FBI; and Joe Monroe, University of Kentucky Chief of Police, jointly made the announcement.
The investigation was conducted by the Federal Bureau of Investigation and the University of Kentucky Police. The United States was represented by Assistant United States Attorney Cynthia T. Rieker.
Texas Man Sentenced to 12 Years in Prison for Orchestrating Chicago-to-Dayton Cocaine DistributionRead the Press Release
DAYTON – Robert W. Stroud, 45, of Houston, Texas was sentenced in U.S. District Court to 12 years in prison for crimes related to conspiracy to possess with intent to distribute cocaine and violating supervised release from an earlier conviction.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), announced the sentence handed down on Wednesday by U.S. District Judge Walter H. Rice.
According to court documents, from between September 2016 and June 2017, Stroud conspired with others to possess with intent to distribute more than 15 kilograms of cocaine in the Southern District of Ohio and elsewhere. Among his acts, on June 15, 2017, Stroud coordinated with a supplier to obtain nearly five kilograms of cocaine near Chicago.
In furtherance of the scheme, co-defendant Jordan Smith drove from Dayton to Bolingbrook, Ill. on June 15, 2017, and thereafter met with the supplier at Stroud’s direction and with money provided by Stroud. Smith gave the money to the supplier, and in return Smith took possession of the roughly five kilograms of cocaine. Police seized the drugs a short time later when they conducted a traffic stop of Smith in Illinois.
Stroud committed this offense while serving a term of supervised release arising from a 2009 firearm conviction in U.S. District Court in Cincinnati. His aggregate 12 year prison sentence is based upon an 11 year prison sentence for the new conspiracy offense, and one additional year for the supervised release violation. Judge Rice also imposed a $10,000 fine.
Co-defendants Jordan Smith and Kenneth Thompkins have also pleaded guilty in relation to this case and await sentencing.
U.S. Attorney Glassman commended the investigation by the DEA, as well as Assistant United States Attorneys Michael J. Hunter and Andrew J. Hunt, who represent the United States in this case.
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Stilwell Man Sentenced to 60 Months for Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Justin Dale Killer, age 35, of Stilwell, Oklahoma, was sentenced to 60 months’ imprisonment and 3 years of supervised release for Felon In Possession Of Firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). The charges arose as a result from an investigation by the Adair County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Indictment alleged that on or about May 24, 2018, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, knowingly possessed a firearm which had been shipped and transported in interstate commerce.
United States Attorney Brian J. Kuester said, “The U.S. Attorney’s Office and its federal law enforcement partners are appreciative of the close working relationships we have with state, local and tribal law enforcement agencies serving in the Eastern District. As a result of those relationships we are given the opportunity to maximize our impact on the communities we serve by assisting those agencies with the shared mission to serve and protect.”The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Dean Burris represented the United States.
Somerset County Man Sentenced to 50 Months in Prison for Role in Medicare FraudRead the Press Release
TRENTON, N.J. – A Somerset County, New Jersey, man was sentenced today to 50 months in prison for using the purported non-profit The Good Samaritans of America to defraud the Medicare Program of more than $430,000 by convincing hundreds of senior citizens to submit to genetic testing, U.S. Attorney Craig Carpenito announced.
Seth Rehfuss, 44, of Somerset, New Jersey, previously pleaded guilty before U.S. District Judge Ann E. Thompson to a superseding information charging him with one count of conspiracy to commit health care fraud. Judge Thompson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Rehfuss admitted that he used The Good Samaritans of America to gain access to groups of senior citizens in various low-income senior citizen housing complexes and persuaded them to submit to genetic tests without any involvement of a health care professional. Contrary to what he told the senior citizens and staff at the housing complexes, Rehfuss was a sales representative for laboratories, a fact he concealed from his targets. In order to convince senior citizens to submit to genetic testing, Rehfuss used fear-based tactics during the presentations, including suggesting the senior citizens would be vulnerable to heart attacks, stroke, cancer and suicide if they did not have the genetic testing.
To get the tests authorized, Rehfuss used advertisements on Craigslist to recruit health care providers for the scheme. The health care providers were paid thousands of dollars per month by Rehfuss and others to sign their names to requisition forms authorizing testing for patients they never examined or had any interaction with. Rehfuss and his conspirators, Sheila Kahl and Kenneth Johnson, established email accounts, phone numbers, and made-up “office manager” names for the requisition forms that made it seem as though the health care providers were actually treating the patients being swabbed and would be evaluating the test results.
Rehfuss, Kahl, Johnson, and others caused the Medicare program to pay two clinical laboratories for the fraudulent test claims that the scheme generated. They obtained and divided more than $100,000 in commission payments from the laboratories.
Rehfuss and others were also actively working towards expanding the scheme outside of New Jersey into other states, including: Georgia, Delaware, Virginia, Maryland, Pennsylvania, South Carolina, Michigan, Mississippi, Florida, Tennessee and Arizona.
In addition to the prison term, Judge Thompson sentenced Rehfuss to three years of supervised release, ordered him to pay restitution of $434,963 and forfeiture of $66,844.
Sheila Kahl, 47, of Ocean County, previously pleaded guilty and is scheduled to be sentenced May 13, 2019. Kenneth Johnson, 39, of Lorton, Virginia, pleaded guilty and is scheduled to be sentenced May 20, 2019.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Health and Human Services – Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; special agents of the U.S. Attorney’s Office for the District of New Jersey; and the Cape May County Department of Aging and Disability Services, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Bernard J. Cooney, Sara F. Merin, and Danielle Alfonzo Walsman of the Health Care & Government Fraud Unit in Newark.
Slidell Man Sentenced to 10 Years in Prison for Fentanyl and Heroin Charges and Firearm PossessionRead the Press Release
NEW ORLEANS, LOUISIANA –U.S. Attorney Peter G. Strasser announced that KENNETH MARTIN, age 45, from Slidell, Louisiana, was sentenced yesterday to (10) ten years in prison, followed by (6) six years of supervised release, for charges related to distribution of fentanyl and heroin, and firearms possession.
On October 18, 2018, MARTIN pled guilty to conspiring, from at least May 23, 2016, through August 2, 2017, to distribute at least 40 grams of fentanyl and 100 grams of heroin. MARTIN also pled guilty to seven counts of distribution of heroin and fentanyl, to being a felon in possession of three firearms—a revolver, a semi-automatic pistol, and a shotgun—and to possessing those firearms in furtherance of the drug trafficking conspiracy. The government charged MARTIN with a sentencing enhancement for his prior drug convictions.
According to court documents, the shotgun was found in a New Orleans East residence, which MARTIN used as a stash house, where agents also found over two ounces of heroin. The revolver was found at MARTIN’s home in Slidell, in a car that MARTIN had used to sell drugs. The semi-automatic pistol was found at a bar, where MARTIN also sold drugs, in the Treme neighborhood in New Orleans.
For the drug charges and the felon-in-possession charge, Judge Nanette Jolivette Brown sentenced MARTIN was sentenced to five years in prison. For the charge of possessing of a firearm in furtherance of the drug trafficking conspiracy, he was sentenced to another five years in prison, consecutive to his sentence for other counts.
U.S. Attorney Strasser praised the work of Homeland Security Investigations, the Drug Enforcement Administration, the Federal Bureau of Investigation, the St. Bernard Parish Sheriff’s Office, and the Jefferson Parish Sheriff’s Office. Assistant United States Attorney Nicholas D. Moses is in charge of the prosecution.
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Sixth Defendant Sentenced in Holland-Area Heroin ConspiracyRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that Jimmie "Peanut" Butler was sentenced on May 9, 2019, to 262 months’ incarceration followed by 10 years of supervised release for conspiring to distribute more than 100 grams of heroin and conspiring to distribute cocaine and cocaine base. Five of his co-defendants had previously pled guilty to federal charges stemming from the distribution of heroin in the Holland, Michigan area. The conspiracy, which trafficked heroin from Chicago into the Holland area and the Upper Peninsula is linked to numerous overdoses and at least one death.
"In the face of the opioid epidemic, the U.S. Attorney’s Office aggressively pursues those who poison our communities with heroin," said U.S. Attorney Birge. "This outcome is the result of the cooperation of federal, state, and local law enforcement agencies, which have jointly worked to investigate, charge and incarcerate those who take advantage of addicts for profit and spread heroin addiction."
"The City of Holland has been significantly impacted with numerous overdoses and deaths as a result of the opioid epidemic," said Captain Rick Walters, Holland Department of Public Safety. "This case is an example of local, state, and federal agencies collaborating together to protect and serve our local community. The Holland community has been positively impacted by the joint effort of all those involved and is appreciative of the federal assistance received in this investigation and prosecution."
"The West Michigan Enforcement Team views the heroin and opioid epidemic as a high priority for our investigators," said D/F/Lt. Andy Fias, Michigan State Police – West Michigan Enforcement Team (WEMET) Section Commander. "We utilize all tools available in fighting this epidemic. In the Butler case, we worked with our federal law enforcement partners to target this large drug trafficking organization that was plaguing the community with deadly drugs. Our collaboration again proved successful in holding those responsible accountable for their illegal trafficking."
Other members of the conspiracy were charged in an August 15, 2017 superseding indictment. The conspiracy spanned from as early as 2011 until July 2017, when the group was initially indicted. Each of the defendants has now been sentenced: Charles Oakley (156 months), Corey Gross (46 months), Jimmy Moore (33 months), Michael McKinley (24 months), and Monique Molina (24 months).
This matter was investigated by WEMET, the Holland Department of Public Safety, the Ottawa County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorneys Sally J. Berens and Timothy VerHey prosecuted the case.
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Sex Offender Sentenced to Prison for Illegally Reentering the U.S.Read the Press Release
ALEXANDRIA, Va. – An El Salvadorian man, who has a previous conviction for sexually assaulting a child, was sentenced today to 18 months in prison for illegally reentering the United States.
According to court documents, Julio Jimenez Garcia, 42, was deported at taxpayer expense in October 2008. Just one month later, Jimenez Garcia reentered the United States. In 2017, Jimenez Garcia was arrested by state police for sexually assaulting a five-year-old child on over 40 separate occasions. In April 2018, Jimenez Garcia pleaded guilty to the crime of indecent liberties with a child under the age of 15, and was sentenced to prison. He pleaded guilty to illegal reentry in this case in January 2019.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Lyle A. Boelens, Acting Field Office Director for U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) Washington, D.C., made the announcement after sentencing by U.S. District Judge Liam O’Grady. Special Assistant U.S. Attorneys La’Nese Clarke and Brianna Edgar prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-124.
Savannah woman indicted for money laundering conspiracyRead the Press Release
SAVANNAH, GA: A Savannah woman was charged with cashing out funds from other people’s retirement accounts that were diverted to her bank.
Karen Dickerson has been indicted for Conspiracy to Commit Money Laundering, Money Laundering, Unlicensed Money Transmitting Business and Structuring, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.
The charges, upon conviction, carry a penalty of up to 20 years in prison, a fine of up to $250,000 and up to three years of supervised release upon completion of any prison sentence. There is no parole in the federal system.
According to the indictment, members of the conspiracy obtained unauthorized access to retirement savings accounts to make unauthorized wire transfers. Dickerson then coordinated with members of the conspiracy to have funds wired from those accounts into bank accounts that she controlled, and Dickerson would then withdraw the cash from her accounts.
“Retirees rightfully expect their hard-earned money to be available in their twilight years, and shouldn’t have to worry about thieves draining their accounts,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “Our office will vigorously prosecute those who would seek fraudulent financial gain from others’ labors.”
“Technology has forever changed the way we do business, making everyday financial transactions a prime target for fraud,” said Glen Kessler, Savannah Resident Office Agent in Charge of the U.S. Secret Service. “The Secret Service has taken a lead role in mitigating the threat of account takeovers and Business Email Compromise (BEC) investigations and one of our top priorities continues to be combating computer-related crimes perpetrated by domestic and international criminals that target the U.S. financial infrastructure.”
An indictment contains only charges. Defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the United States Secret Service in coordination with Assistant U.S. Attorney Xavier Cunningham, Section Chief, and Gary Purvis, Litigation Financial Analyst, with the Asset Forfeiture Unit of the U.S. Attorney’s Office for the Southern District of Georgia. The case is being prosecuted for the United States by Assistant United States Attorney Steven H. Lee.
Saint Paul Man Sentenced to Prison After Firing A Shotgun at the Federal Reserve BankRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of CHRISTOPHER DOUGLAS WOOD, 43, to eight months of confinement after firing three shotgun rounds at the Federal Reserve Bank building in downtown Minneapolis. WOOD, who pleaded guilty on December 17, 2018, was sentenced before Chief Judge John R. Tunheim in U.S. District Court in Minneapolis, Minnesota.
According to the defendant’s guilty plea and documents filed in court, on the night of July 21, 2018, during the Aquatennial Fireworks display, WOOD fired three shotgun “slugs” at the Federal Reserve Bank (“FRB”) that caused more than $40,000 in property damage to the windows and the façade of the FRB. One of the slugs penetrated the triple-pane security windows and was later located in the ceiling of a seventh floor office of the FRB.
According to the defendant’s guilty plea and documents filed in court, WOOD fired the shots from a United States Postal Service (“USPS”) facility located directly across from the FRB. At the time of the shooting, WOOD was an employee of the USPS and had access to the facility and the secure parking structure from which he fired the shots. During the course of the investigation, law enforcement conducted a search of WOOD’s residence and recovered a loaded 12-gauge shotgun, a .22 semiautomatic handgun with a loaded magazine, a Snake Slayer pistol, ammunition, and documents critical of the FRB.
This case was the result of an investigation conducted by the FBI, the Minneapolis Police Department, the United States Postal Inspection Service, and the United States Postal Service, Office of Inspector General (USPS-OIG).
Assistant U.S. Attorney Charles J. Kovats prosecuted the case.
Defendant Information:
CHRISTOPHER DOUGLAS WOOD, 43
St. Paul, Minn.
Convicted:
- Possession of a firearm in a federal facility, 1 count
Sentenced:
- 8 months confinement
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Rowan County Drug Dealer Sentenced to More Than 13 Years in Federal PrisonRead the Press Release
GREENSBORO, N.C. - A Salisbury resident was sentenced on May 9, 2019, in federal court in Greensboro, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
The Honorable N. Carlton Tilley, Jr., sentenced Donald Tiberio ARMSTRONG, 38, of Salisbury, North Carolina, to a 120 month term of imprisonment on charges of felon in possession of a firearm. At the time of the offense, ARMSTRONG was on supervised release, and was found to be in violation of the release conditions. In addition to 120 months imprisonment on the firearm charge, ARMSTRONG was sentenced to 37 months imprisonment for the supervised release violation, to be served consecutively, and ordered to serve three years of supervised release after completing his sentence. ARMSTRONG pleaded guilty in March 2018.
On August 29, 2017, deputies with the Rowan County Sheriff’s department arranged for an undercover officer (“UC”) to purchase an ounce of methamphetamine from ARMSTRONG. During the course of the transaction, officers monitoring the audio of the deal heard ARMSTRONG tell the UC to “put your hands up.” ARMSTRONG had taken the UC’s 9mm handgun from the holster on his hip, and pointed it at the UC’s face. Suspecting that the UC was being robbed, the officers moved in to apprehend the suspects. As officers surrounded the vehicle ARMSTRONG dropped the 9mm handgun in the back seat area of the vehicle and the UC was able to regain possession of the firearm. A search of the vehicle and surrounding area led to recovery of all of the departmental funds utilized to make the purchase of methamphetamine.
Prior to this arrest, ARMSTRONG had been convicted of trafficking cocaine by possession. ARMSTRONG also has a federal conviction for possession with intent to distribute cocaine.
The case was investigated by the Rowan County Sheriff’s Department and the Lenoir Police Department. The case was prosecuted by Assistant United States Attorney Terry M. Meinecke.
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Rochester Man Arrested, Charged with Production and Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Sean R. Sullivan, 48, of Rochester, NY, was arrested and charged by criminal complaint with production and possession of child pornography. The charges carry a mandatory minimum sentence of 15 years in prison, a maximum of 40 years, and a fine of $250,000 fine.
Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated that according to the complaint, the defendant was identified by the Federal Bureau of Investigation in connection with a child pornography investigation over a peer to peer network. On April 23, 2019, a search warrant was executed at Sullivan’s Twilight Drive residence in Rochester. Investigators seized multiple electronic devices including a Lancool Tower Desktop Computer, which contained 4 hard drives. A forensic examination of those hard drives revealed dozens of images and videos of child pornography.
Several of the images and videos are of a known victim (Minor Victim 1), who resided with the defendant for several years. The images appear to have been created by Sullivan and constitute child pornography. The complaint further indicates that the defendant likely drugged Minor Victim 1 to produce the images.
The defendant made an initial appearance before U.S. Magistrate Judge Jonathan W. Feldman and was detained.
The complaint is the result of an investigation led by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Raleigh Man Sentenced to 20 Years for Bank RobberyRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, Chief United States District Judge Terrence W. Boyle sentenced RAYMOND GRIFFIN, 37, of Raleigh, North Carolina to 240 months imprisonment, followed by 3 years of supervised release, a $35,000.00 fine, and ordered GRIFFIN to pay $2,159.00 in restitution.
GRIFFIN was named in an Indictment filed on March 28, 2018 charging him with bank robbery. On January 8, 2019, GRIFFIN was found guilty by a jury of that charge.
On August 29, 2017, GRIFFIN entered the Wells Fargo Bank in Raleigh with his face covered with a bandana. He approached a teller and yelled, “Give me all your money! Give me all your money, now!” Shortly thereafter, GRIFFIN jumped over the counter and stole $2,159.00 in United States currency, placing it in a plastic bag before fleeing on foot. One of the employees activated the silent alarm at that time. Officers with the Raleigh Police Department responded to the area and obtained a description of the man who had robbed the bank. Officers received information from a citizen nearby who saw a man fitting the bank robbers’ description walking on foot towards a neighborhood under construction.
A short time later an officer located GRIFFIN walking out of a portable toilet. GRIFFIN saw the officer and began to engage men at the construction site in conversation although they seemed confused by his presence. Law enforcement approached GRIFFIN and detained him. GRIFFIN had $2,159.00 on his person and law enforcement found clothing matching the clothing worn during the robbery in the portable toilet.
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 Raleigh Police Department as well as the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case was prosecuted by Assistant United States Attorneys Jacob Pugh and Charity Wilson.
Poteau Man Sentenced to 24 Months Probation, $5,000 Fine, $75,000 Forfeiture for Receipt of Misbranded Drugs and DevicesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Donald Edward Brooks, age 61, of Poteau, Oklahoma, was sentenced to 2 years probation, a $5,000.00 fine, and forfeiture of $75,720.73 for Receipt In Interstate Commerce Of Misbranded Drugs And Devices, a misdemeanor violation of Title 21, United States Code, Sections 331(c) and 333(a)(1). The charges arose as a result from an investigation by the Food and Drug Administration Office of Criminal Investigation.
The Information alleged that on or about December 4, 2013, in the Eastern District of Oklahoma and elsewhere, the defendant, Donald Edward Brooks, received, and caused the receipt of, misbranded drugs and devices in interstate commerce, to wit: Xeomin, Restylane, and Juvederm; and delivered and proffered for delivery those misbranded drugs and devices for pay or otherwise.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Rob Wallace represented the United States.
Plattsburgh Man Pleads Guilty to Drug Trafficking ChargeRead the Press Release
ALBANY, NEW YORK – Niles O’Neil, age 28, of Plattsburgh, New York, pled guilty yesterday to possession of crack cocaine with intent to distribute.
The announcement was made by United States Attorney Grant C. Jaquith and Special Agent in Charge Ray Donovan, U.S. Drug Enforcement Administration (DEA), New York Division.
As part of his plea, O’Neil admitted that he possessed approximately 40 grams of crack cocaine that he was intending to distribute on April 3, 2018.
O’Neil faces at least 5 years and up to 40 years in prison when he is sentenced by Chief United States District Judge Glenn T. Suddaby on September 18, 2019. A defendant’s sentence is imposed by a judge based on the particular statutes the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the DEA and is being prosecuted by Assistant U.S. Attorney Douglas Collyer.
Pittsburgh Man Admits Robbing Downtown Bank at Random to Support his Drug AddictionRead the Press Release
PITTSBURGH, Pa. -A former resident of Allegheny County, Pennsylvania, pleaded guilty in federal court to a charge of bank robbery, United States Attorney Scott W. Brady announced today.
Jonathan Owens-El, 56, formerly of Pittsburgh, PA, pleaded guilty on Wednesday to one count before Senior United States District Court Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that, on March 19, 2018, Owens-El entered Key Bank, Downtown Pittsburgh, with a blue knit scarf around his face and wearing gloves. Owens-El passed the teller a note that said, "No Dye, No Alarm 50’s, 20’s, 10’s". The teller handed him $260 in U.S. Currency along with $40 wrapped around a GPS tracker. Owens-El fled and police used the GPS device to locate him on a Port Authority Transit bus.
After boarding the bus, the officer noticed the defendant seated in the back with a blue scarf tucked under his leg. When the officer asked Owens-El to stand up, the officer saw U.S. Currency protruding from his left front pants pocket.
Owens-El agreed to an interview and admitted that he handed the teller a note demanding money. He stated that once he received the cash, he placed the money into a bag then walked towards Smithfield Street and boarded a PAT bus. Owens said he picked Key Bank at random and decided to rob the bank to support his drug addiction.
Judge Conti scheduled sentencing for September 18, 2019. The law provides for a maximum total sentence of not more than 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court ordered that Owens-El remain detained.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pittsburgh Bureau of Police Department conducted the investigation that led to the prosecution of Owens-El.
Philadelphia Men Indicted on Federal Drug ChargesRead the Press Release
PITTSBURGH, PA – On May 8, 2019, two former residents of Philadelphia, Pennsylvania, were indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
The three-count Indictment names Jermaine Kyle Clark, age 41, and Terry Suggs, Jr., age 34, as co-defendants. According to the Indictment, which was returned five days after a federal criminal complaint was filed, from February 24, 2019, to February 25, 2019, Clark and Suggs conspired to distribute and each possessed with intent to distribute 5 kilograms or more of a mixture or substance containing a detectable amount of cocaine and 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine.
According to the Affidavit in Support of the Criminal Complaint, on February 25, 2019, investigators with the Allegheny County District Attorney Narcotics Enforcement Team (D.A.N.E.T), conducted a controlled purchase and delivery operation, relating to an ongoing investigation into drug-trafficking activity coming from Philadelphia, Pennsylvania, to Allegheny County. As a result of this investigation, law enforcement apprehended Clark and Suggs with approximately 23 separate, clear vacuum sealed packages, containing a white powdery substance, believed to be approximately 23 kilograms of cocaine, which were located within hidden compartments in the vehicles driven by the defendants. Additionally, in the vehicle operated by Suggs, investigators seized $8,060.00.
If convicted, the law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of up to $10,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Allegheny County District Attorney Narcotics Enforcement Team made the initial arrest on February 25, 2019, relating to the charges set forth in the Indictment, and the Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Sentenced to over 23 Years in Federal Prison for Methamphetamine Trafficking and Gun PossessionRead the Press Release
Jackson, Miss. – Dijon Jamese Seales, 28, of Philadelphia, Mississippi, was sentenced today by Chief U.S. District Judge Daniel P. Jordan III to serve a total of 285 months in federal prison, followed by five years of supervised release, for possession with intent to distribute five grams or more of methamphetamine and possession of firearms in furtherance of a drug trafficking crime, announced U.S. Attorney Mike Hurst and Jere T. Miles, Special Agent in Charge of U.S. Immigration and Customs Enforcement's Homeland Security Investigations in New Orleans. Seales was also ordered to pay a $1,500 fine.
On January 22, 2018, members of the U.S. Marshals Gulf Coast Regional Fugitive Task Force arrested Seales pursuant to an arrest warrant issued out of the Northern District of Texas for violating pretrial release conditions in an unrelated case. While executing the arrest warrant, task force members found 16.9 grams of methamphetamine on Seales intended for distribution. Additionally, in furtherance of his drug trafficking offense, Seales was found in possession of a Glock 43 pistol and a Ruger AR-556 rifle with an assortment of gun accessories, including a bump stock.
On March 7, 2018, Seales was charged in a criminal indictment with possession with intent to distribute five grams or more of methamphetamine and possession of firearms in furtherance of a drug trafficking crime. He pled guilty before Judge Jordan on February 8, 2019.
This Organized Crime Drug Enforcement Task Force ("OCDETF") case is a result of a joint investigation by Homeland Security Investigations, the Drug Enforcement Administration and the Mississippi Bureau of Narcotics. Assisting agencies included the United States Marshal’s Service, Gulf Coast Regional Fugitive Task Force, Philadelphia Police Department, Neshoba County Sheriff’s Department, Neshoba County District Attorney’s Office, Scott County Sheriff’s Office, Flowood Police Department, Rankin County Sheriff’s Department, Hinds County Sheriff’s Department, Carthage Police Department, Union Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, Louisville Police Department, and the Mississippi Highway Patrol.
The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Assistant U.S. Attorneys Erin Chalk and Drew Eichner prosecuted the case.
Owners of Home Healthcare Company Sentenced for Tax FraudRead the Press Release
BOSTON – The co-owners of a Boston-area home healthcare company were sentenced yesterday in federal court in Boston for underreporting income to the IRS resulting in over $1 million in losses.
Hannah Holland, 51, of Quincy, and Sheila O’Connell, 51, of North Weymouth, were each sentenced by U.S. Senior District Court Judge Mark L. Wolf to six months in prison and three years of supervised release. Both were also ordered to pay $1,126,112 in restitution. In November 2018, Holland and O’Connell pleaded guilty to an Information charging them with one count of conspiracy to defraud the United States and three counts of aiding and assisting in the preparation of false tax returns.
Holland and O’Connell co-owned and operated Erin’s Own Home Healthcare Inc. (Erin’s Own). Between 2010 and 2014, Holland and O’Connell cashed over $3.5 million of Erin’s Own business checks through nominee bank accounts controlled by a third-party. During this time period, Holland also personally cashed over $77,000 of Erin’s Own business receipts. None of these funds were ever reported to the IRS or accounted for in the company’s tax filings. Instead, Holland and O’Connell provided their tax preparer with a limited set of the financial records that did not cover the substantial amounts of business funds Holland and O’Connell diverted. As a result of the underreporting, Erin’s Own caused a loss of $1,126,112 to the IRS.
United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistant U.S. Attorney Jordi de Llano, Deputy Chief of Lelling’s Securities and Financial Fraud Unit, and Trial Attorney Brittney Campbell of the Department of Justice’s Tax Division prosecuted the case.
Newark Man Charged After Authorities Locate Heroin Mill in His ApartmentRead the Press Release
NEWARK, N.J. – A Newark man was charged today with narcotics offenses after an authorized search revealed that he was operating a large-scale heroin mill out of his apartment, U.S. Attorney Craig Carpenito announced.
Alexis Garcia Cabrera, 49, is charged by complaint with one count of possessing over one kilogram of heroin with intent to distribute. Garcia Cabrera made his initial appearance before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court and was released on home detention.
According to documents filed in this case and statements made in court:
On May 9, 2019, Drug Enforcement Administration (DEA) agents executed a search warrant at Garcia Cabrera’s residence and located multiple freezer-type bags containing heroin, as well as a large quantity of loose heroin that was in the processing stage. Law enforcement officers also located equipment used to process and “cut” heroin, including grinders, sifters, and chemical cutting agents, and large quantities of materials designed to package heroin for street-level distribution, including more than 1,000 glassine envelopes. Agents also located multiple “bricks” of heroin, or packages of 50 individual doses, which are intended for street-level distribution.
The count of possession of over one kilogram of heroin with intent to distribute carries a maximum penalty of life in prison, a mandatory minimum term of 10 years in prison and a $10 million fine.
U.S. Attorney Carpenito credited special agents of the DEA, under the direction of Special Agent in Charge Susan A. Gibson, with the investigation leading to today’s charge.
The government is represented by Special Assistant United States Attorney Shawn Barnes of the U.S. Attorney’s Office Criminal Division in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Chester Keller Esq., First Assistant Federal Public Defender, Newark
New York Broker-Dealer Pleads Guilty to Violating U.S. Antitrust Laws by Rigging Bids for Financial InstrumentsRead the Press Release
Banca IMI Securities Corp. (Banca IMI), a New York broker-dealer, pleaded guilty to an antitrust charge and was sentenced to pay a criminal fine in excess of $2 million for its involvement in a bid-rigging conspiracy for certain financial instruments, the Department of Justice announced today.
Banca IMI admitted, as part of its guilty plea, that from March 2012 until at least August 2014, it conspired with other institutions and individuals to submit rigged bids to borrow pre-release American Depository Receipts (ADRs). Worldwide, thousands of publicly traded companies list their shares of common stock only on foreign stock exchanges. Most U.S. investors are unable to purchase or sell such foreign shares. The U.S. Securities and Exchange Commission, however, permits four U.S. depository banks to create ADRs, which represent foreign ordinary shares and can be traded in the United States. Through the purchase and sale of ADRs, U.S. investors are able to gain exposure to — including the ability to receive dividends from — companies whose common stock is listed only on foreign stock exchanges.
Banca IMI pleaded guilty to conspiring to borrow pre-release ADRs from U.S. depository banks at artificially suppressed rates. During the conspiracy, a U.S. depository bank began using an auction-style process for pre-release ADRs and invited Banca IMI and other broker-dealers to submit competitive bids for rates to borrow ADRs. In response, Banca IMI and its co-conspirators intensified their coordination in an effort to increase artificially their profits under the auction-style process. On at least 30 occasions, Banca IMI reached an agreement with one or more co-conspirators as to the bids they would submit to U.S. depository banks. On many occasions, the conspirators agreed that they all would submit the same bid.
“Today’s charge represents the commitment of the Department of Justice and its law enforcement partners to uncovering and prosecuting cheaters who corrupt our financial and capital markets,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “Complex financial markets are not beyond the reach of the antitrust laws. The Antitrust Division will aggressively pursue criminals in technically complicated markets, including those that some wrongly presume may be beyond detection or the reach of antitrust enforcement.”
“The FBI is committed to rooting out corruption and fraud against the United States wherever it occurs,” said Assistant Director Robert Johnson of the FBI’s Criminal Investigative Division. “The guilty plea today is the result of the FBI International Corruption Unit’s persistent and ongoing efforts to protect competition and identify those engaged in anticompetitive, fraudulent conduct. We will continue to pursue antitrust investigations aggressively with our DOJ partners.”
The Washington Criminal II Section of the Antitrust Division and the FBI’s International Corruption Unit are conducting the investigation into bid rigging in the market for pre-release ADRs. Anyone with information in connection with this investigation is urged to call the Antitrust Division’s Washington Criminal II Section at 202-598-4000 or visit www.justice.gov/atr/contact/newcase.html.
New Paltz Man Sentenced to 30 Years for Sexually Exploiting Four ChildrenRead the Press Release
ALBANY, NEW YORK – Cammron Robinson, age 24, of New Paltz, New York, was sentenced yesterday to 30 years in prison for sexual exploiting four children.
The announcement was made by United States Attorney Grant C. Jaquith; James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and New York State Police Acting Superintendent Keith M. Corlett.
As part of his guilty plea, Robinson admitted that he convinced four children to engage in sexually explicit conduct, and produced videos and images capturing that conduct over the course of three years.
Specifically, Robinson admitted that from 2015 through 2017, he used the PS4 gaming console, Skype, Zoom and cell phones to chat online with numerous male children. During the course of these communications, Robinson persuaded, induced, enticed, or coerced boys between the ages of 11 and 13 to masturbate and/or show him their genitalia. These sexually explicit acts were then recorded or saved by Robinson so he could watch and view them again.
Senior United States District Judge Thomas J. McAvoy also imposed a 15-year term of supervised release, which will start after Robinson is released from prison, and ordered Robinson to pay restitution in the amount of $9,000. As a result of his conviction, Robinson will be required to register as a sex offender upon his release from prison.
Robinson’s case was investigated by the New York State Police and the FBI. The case was prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown.
This case was prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Nebraska Man Setenced to 35 Years for Producing Child PornographyRead the Press Release
A Nebraska man was sentenced today to 35 years in prison to be followed by lifetime supervised release for producing child pornography in 2016, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Joseph P. Kelly of the District of Nebraska.
Steven R. Carlson, 38, of Omaha, Nebraska, was sentenced by U.S. District Court Judge Robert F. Rossiter Jr. of the District of Nebraska.
According to admissions made in connection with his guilty plea, in May 2016, Carlson filmed himself engaging in forcible, sexual acts with a non-communicative minor. A search warrant executed on Carlson’s residence resulted in the discovery of hundreds of images of child pornography involving minors including infants and toddlers.
The FBI Cyber Crimes Task Force investigated this case. Trial Attorney William M. Grady of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Michael P. Norris of the District of Nebraska prosecuted the case.
This investigation is a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Nebraska Man Sentenced to 35 Years in Prison for Producing Child PornographyRead the Press Release
A Nebraska man was sentenced today to 35 years in prison to be followed by a lifetime of supervised release for producing child pornography in 2016, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Joseph P. Kelly of the District of Nebraska.
Steven R. Carlson, 38, of Omaha, Nebraska, was sentenced by U.S. District Court Judge Robert F. Rossiter Jr.of the District of Nebraska.
According to admissions made in connection with his guilty plea, in May 2016, Carlson filmed himself engaging in forcible, sexual acts with a non-communicative minor. A search warrant executed on Carlson’s residence resulted in the discovery of hundreds of images of child pornography involving minors including infants and toddlers.
The FBI Cyber Crimes Task Force is investigating this case. Trial Attorney William M. Grady of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Michael P. Norris of the District of Nebraska are prosecuting the case.
This investigation is a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
National Prescription Drug Take Back Day Yields over 6,000 Pounds of Prescription Pills in NevadaRead the Press Release
LAS VEGAS, Nev. – In Nevada, 6,323 pounds, or three tons, of unused, unwanted, and expired prescription medications were turned-in at the 17th National Prescription Drug Take Back Day held in April, announced United States Attorney Nicholas A. Trutanich for the District of Nevada and Assistant Special Agent in Charge Daniel W. Neill for the DEA.
“These results are heartening. Nevadans recognize that combating the opioid epidemic starts with prevention,” said U.S. Attorney Trutanich. “The U.S. Attorney’s Office is committed to continue working in communities to turn the tide on this public health and safety crisis.”
Nationwide, the total weight collected was 937,443 pounds, or 468 tons, of prescription medications. There were 4,969 participating law enforcement agencies and 6,258 collection sites throughout the country.
Take Back Day addresses a crucial public safety and public health issue. According to the Centers for Disease Control and Prevention, 70,237 drug overdose deaths occurred in the United States in 2017. Take Back Day is part of a nationwide effort sponsored by the DEA and it is a safe, convenient, and responsible way to dispose of prescription drugs.
Complete results for DEA’s spring Take Back Day are available at www.DEATakeBack.com.
The next Take Back Day is October 26, 2019.
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Minnesota Man and California Man Sentenced for Contributing to the Delinquency of a Child, Furnishing Alcohol Beverages to a Child, and Failure to AppearRead the Press Release
United States Attorney Ron Parsons announced that a Mankato, Minnesota, man and a Delano, California, man were sentenced by U.S. District Judge Karen E. Schreier.
Jay Leslie Haggard, age 32, was found guilty of two counts of Contributing to the Delinquency of a Child as a result of a federal jury trial in Sioux Falls, South Dakota, on March 7, 2019. He was sentenced on March 8, 2019, to time served, 1 year of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $50.
Ryan Lawrence Juan, age 24, pled guilty to two counts of Furnishing Alcoholic Beverages to a Child and one count of Failure to Appear on March 1, 2019. He was sentenced, on May 9, 2019, to time served and a special assessment to the Federal Crime Victims Fund in the amount of $75.
Haggard and Juan was indicted by a federal grand jury on September 6, 2017.
The convictions stemmed from an incident between August 22, 2017, and August 23, 2017, when Haggard and Juan met two juvenile females and provided them with alcoholic beverages.
The conviction on the Failure to Appear charge stemmed from Juan failing to appear for his initial appearance set for September 17, 2018, with Magistrate Judge Veronica L. Duffy.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
Mexican Man Sentenced for Immigration OffenseRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that GERARDO TEJEDA-QUIROZ, age 33, a native of Mexico, was sentenced Wednesday, May 8, 2019 on a one-count indictment for illegal entry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).
United States District Court Judge Mary Ann Vial Lemmon sentenced TEJEDA to time served in prison, followed by 2 years of supervised release, and a $100 special assessment fee. The defendant will be surrendered to the custody of Immigration and Customs Enforcement for removal proceedings.
According to court documents, the defendant had been previously removed from the United States on April 24, 2009, and then reentered the United States without permission.
U.S. Attorney Strasser praised the work of the Immigration and Customs Enforcement agency in investigating this matter. Assistant United States Attorney Jon Maestri was in charge of the prosecution.
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McRae Pleads Guilty to Destruction of Energy Facility; Admits He Used Rifle to Fire Shots into Cooling FinsRead the Press Release
SALT LAKE CITY – Stephen Plato McRae, age 59, of Escalante, who was charged with one count of destruction of an energy facility in an indictment returned in February 2017, pleaded guilty to the charge Friday morning in U.S. District Court in Salt Lake City.
U.S. Attorney John W. Huber, FBI Special Agent in Charge Paul Haertel, and Kane County Sheriff Tracy Glover announced the plea agreement Friday afternoon.
In stipulated facts included in the plea agreement, McRae admitted that he traveled to the Buckskin Electrical Substation in Kane County on Sept. 25, 2016. Garkane Energy Cooperative owns the substation. Using his Springfield 30-40, Model 1898, rifle, McRae admitted he fired shots into the cooling fins rupturing the radiator piping. The damage from the rifle shots caused the energy facility substation to overheat and fail. McRae’s actions caused a power outage in Kane and Garfield counties.
Garkane spent $380,522 to repair the damage caused by McRae’s criminal conduct.
The plea agreement includes a stipulated sentence of 96 months in federal prison, which is subject to the approval of the court. Sentencing in the case is set for July 30, 2019, before U.S. District Judge Ted Stewart. McRae is in federal custody.
As a part of the plea agreement, McRae also admitted that he damaged other energy facilities for which he has not been charged. The United States and local prosecuting authorities have agreed not to seek charges for these offenses. However, these incidents will be included as relevant conduct the court will take into consideration in determining the reasonableness of the stipulated 96-month sentence.
The other offenses include damage McRae caused to the Libson Valley Substation in San Juan County on April 1, 2015; damage he caused to the Quinn River Substation in Humboldt County, Nevada on Aug. 31, 2016; and damage he caused to the Baker Substation in White Pine County, Nevada, on Sept. 14, 2016.
McRae has agreed to pay $380,522 in restitution to Garkane Energy Cooperative. He faces up to three years of supervised release when he finishes his federal prison sentence. As a part of the plea agreement, McRae agreed that he would not reside in or travel through six Utah counties (Garfield, Kane, Wayne, Juab, Iron, and Washington) during the term of his supervised release. Garkane Energy Cooperative, Inc. has energy facilities in these counties.
As a part of the plea agreement, federal prosecutors have agreed to dismiss two other counts included in the indictment, possession of a firearm/ammunition by a restricted person and possession of a controlled substance, at sentencing.
Special agents of the FBI and the BLM, who are participating as members of the FBI’s Joint Terrorism Task Force, the Kane County Sheriff’s Office, the Garfield County Sheriff’s Office, the Humbolt County Sheriff’s Offfice in Nevada, and the White Planes County Sheriff’s Office in Nevada have participated in the investigation. Assistant U.S. Attorneys in Utah are prosecuting the case.
Maryland Fentanyl and Heroin Dealer Pleads Guilty to Federal Drug ChargesRead the Press Release
Faces Nine Years In Federal Prison
Baltimore, Maryland – Gari Terrell Miller, age 38, of Clinton, Maryland, pleaded guilty on May 9, 2019 to conspiracy to distribute and possess with intent to distribute fentanyl, and to possession with intent to distribute fentanyl. Miller was one of the first defendants charged as part of the new federal-state initiative announced in December 2018 to combat the fentanyl crisis in Maryland.
Under this new initiative, titled the “Synthetic Opioid Surge,” or “SOS” for short, every arrest involving distribution of fentanyl made by law enforcement in Baltimore is reviewed jointly by the State’s Attorney’s Office for Baltimore City, the Drug Enforcement Administration, and the U.S. Attorney’s Office to determine whether the case will be handled in the state or federal system. The U.S. Attorney’s Office will prosecute more cases involving fentanyl as a result of this new program. The use of federal resources and statutes, which carry significant terms of imprisonment, is necessary to prosecute those individuals who pose the greatest threat to public safety in distributing lethal doses of fentanyl.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Jennifer Moore of the Federal Bureau of Investigation, Baltimore Field Office; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; and Colonel Woodrow Jones, Chief of the Maryland Transportation Authority Police.
“State and federal law enforcement and prosecutors in Baltimore City are teaming up to arrest and prosecute those who peddle the deadly poison of fentanyl on our streets and in our neighborhoods,” said U.S. Attorney Robert K. Hur. “As a result of our combined efforts, Gari Miller now faces federal prison time, where there are no suspended sentences and no parole, ever. We must do everything we can to reduce overdose deaths from this drug and from all opioids.”
According to his plea agreement, on April 12, 2018, a Maryland Transportation Authority Police officer conducted a traffic stop near Conway Street in Baltimore, after observing Miller drifting between lanes and turning onto Conway Street without signaling. During the stop, the officer smelled marijuana. After the officer conducted a sobriety test, he searched Miller and recovered approximately $740 in cash and a white powdery substance that was 49 grams of fentanyl—enough to kill 24,500 people. Law enforcement also recovered from Miller’s vehicle $3,300 in cash bound with rubber bands, and a drug ledger with weights, names and dollar amounts listed. The ledger reflects, and Miller admits, that he sold 832 grams of heroin.
Miller further admitted that he conspired with others to distribute fentanyl and heroin in Maryland. Miller had others assisting him with distributing narcotics and collecting the drug proceeds.
Miller and the government have agreed that, if the Court accepts the plea agreement, Miller will be sentenced to nine years in federal prison. U.S. District Judge Catherine C. Blake has scheduled sentencing for July 16, 2019 at 9:15 a.m.
United States Attorney Robert K. Hur commended the DEA and Maryland Transportation Authority Police for their work in the investigation and thanked Baltimore State’s Attorney Marilyn Mosby and her office for their assistance. Mr. Hur thanked Assistant U.S. Attorney Samika N. Boyd, who is prosecuting the case.
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MEDIA ADVISORY: U.S. Department of Justice and State of West Virginia Officials to Hold Press ConferenceRead the Press Release
CHARLESTON, W.Va. – Assistant Attorney General Eric Dreiband, Civil Rights Division, United States Department of Justice, Mike Stuart, United States Attorney for the Southern District of West Virginia, Assistant United States Attorney Helen Altmeyer, Northern District of West Virginia, Governor James C. Justice and Secretary Bill Crouch, West Virginia Department of Health and Human Resources will hold a press conference on Tuesday, May 14, 2019, at 1:00 p.m., to discuss a major agreement reached between the United States Department of Justice and the State of West Virginia.
Where: Robert C. Byrd United States Courthouse - 5th floor (not in the U.S. Attorney’s Office)
300 Virginia Street East
Charleston, WV 25301
When: Tuesday, May 14, 2019 @ 1:00 p.m.
NOTES: Open Press. Camera preset at 12:30 p.m. Final access time for print media is 12:45 p.m. All media must RSVP and present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials. The RSVP and any inquiries regarding logistics should be directed to [email protected]. Please RSVP with the email address of the person(s) attending the event, so that we may reach them directly if details change.
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Luzerne County Woman Guilty of “Bath Salts” ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Kerry Wylie, age 27, of Wilkes-Barre, Pennsylvania, pleaded guilty on May 8, 2019, before Senior U.S. District Court Judge James M. Munley, to conspiracy to distribute and possess with intent to distribute alpha-pvp, commonly known as “bath salts.”
According to United States Attorney David J. Freed, Wylie admitted to participating in the conspiracy between March 2014 and January 2016. The conspiracy involved the importation of alpha-pvp from suppliers in China, and the distribution of the drug to sub-distributors and customers in the Luzerne County area. Wylie admitted to being responsible for the possession with intent to distribute and distribution of approximately 1.5 kilograms of alpha-pvp.
Kerry Wylie was one of seven people indicted by a grand jury in August 2016. That indictment was the fourth indictment resulting from the lengthy investigation into “bath salts” trafficking conducted by Agents of the Department of Homeland Security, Agents of the Drug Enforcement Administration, United States Postal Inspectors, and members of the Pennsylvania State Police. In all, 18 people were charged as a result of the investigation, including a Texas-based couple who shipped “bath salts” to customers throughout the United States, including Pennsylvania.
Todd Morgans, of West Pittston, a major local supplier of “bath salts,” was previously sentenced to 135 months’ imprisonment. David Folweiler, a Luzerne County sub-distributor, was sentenced to 90 months’ imprisonment. One of the Texas-based suppliers, Treiu Thuy Duong, received a 70-month prison sentence. Alan Folweiler received a 63-month sentence. Frank Brennan was sentenced to 60 months’ imprisonment.
The investigation has resulted in the seizure and forfeiture of several firearms, thousands of dollars in cash, hundreds of silver coins, real property and bank accounts valued at more than $750,000.
Judge Munley ordered a pre-sentence investigation to be completed, and scheduled sentencing for August 9, 2019.
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The maximum penalty under federal law for this offenses is 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Luzerne County Man Charged with Illegal Possession of Firearms and Drug TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Bruce Redmond, age 30, of Dallas, Pennsylvania, was indicted by a federal grand jury on May 7, 2019, for illegal possession of firearms and drug trafficking in Luzerne County.
According to United States Attorney David J. Freed, the indictment charges Redmond with unlawful possession of firearms and ammunition, possession of a stolen firearm, possession of an illegal “short-barreled” shotgun, false statements in connection with the purchase of firearms, possession with intent to distribute methamphetamine, and aiding and abetting the distribution of suboxone.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Kingston Police Department, and the Pennsylvania State Police. Assistant U.S. Attorney Robert J. O’Hara is prosecuting the case.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods 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 enforcement and the local community to develop effective, locally-based strategies to reduce crime.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the drug offenses is twenty years’ imprisonment, a term of supervised release following imprisonment, and a fine. The maximum penalty for the firearms offenses is ten years’ imprisonment, a term of supervised release, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Local Businessman is Indicted for Bribery Scheme Involving Former County ExecutiveRead the Press Release
St. Louis, MO –John Rallo, 53, formerly of St. Louis County, was charged with three counts of Honest Services Mail Fraud/Bribery. Rallo will appear before U.S. Magistrate Judge Bodenhausen for his initial appearance and arraignment on the Indictment – Friday, May 10 at 9:30 a.m., 15th floor South.
The Indictment charging John Rallo alleges that beginning in October 2014 and continuing through December 31, 2017, Stenger schemed to defraud and deprive the citizens of St. Louis County of their right to his honest and faithful services, and the honest and faithful services of Sheila Sweeney, through bribery and the concealment of material information. The purpose of the scheme was for Stenger to secretly use his official position to enrich himself through soliciting and accepting campaign contributions from Rallo and other individuals in exchange for favorable official action, and for Rallo and other individuals to enrich themselves and their companies by secretly obtaining favorable action for themselves and for their companies, through corrupt means.
Specifically, the Indictment alleges that Stenger, in exchange for campaign donations and several fundraising events, took official action to insure that John Rallo and his company, Cardinal Insurance, obtained insurance contracts through St. Louis County during 2015 and 2016. Further, the Indictment alleges that Stenger took official action to insure that John Rallo and his company, Cardinal Creative Consulting, obtained a sham 2016 consulting contract through the St. Louis County Port Authority. Additionally, Stenger took official action to insure that John Rallo and his company, Wellston Holdings, LLC, obtained options to purchase two properties in Wellston, Missouri which were held by the Land Clearance for Redevelopment Authority of St. Louis County during 2016 and 2017. The Indictment alleges that Rallo, Stenger, and Sweeney took steps to hide, conceal and cover up the illegal bribery scheme, including making false public statements.
If convicted, as to each charge Rallo faces a maximum penalty of 20 years in prison and a $250,000 fine. Restitution is also mandatory.
In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The Federal Bureau of Investigation and the Postal Inspection Service are investigating this case with the assistance of the Internal Revenue Service Criminal Investigations. Assistant U.S. Attorney Hal Goldsmith is handling the case for the U.S. Attorney’s Office.
Lake Charles felon sentenced to 27 months in prison for possessing pistol, ammunitionRead the Press Release
LAKE CHARLES, La. – United States Attorney David C. Joseph announced that Louis Jones, 26, of Lake Charles, was sentenced Thursday to two years and three months in prison by U.S. District Judge Donald E. Walter for being a felon in possession of a pistol and ammunition. He was also sentenced to three years of supervised release.
Lake Charles Police responded to a disturbance on June 15, 2018 wherein a caller advised that an unknown male, later identified as the defendant, Louis Jones, pointed a firearm at a customer at a local business. The caller then followed Jones and gave a description of the vehicle he was driving to police and updated the officers on Jones’ location as he continued to travel through Lake Charles. Police intercepted Jones, questioned him about the incident and asked to search his vehicle. They located a Model PT92 AFS .9mm semi-automatic pistol and ammunition in the front passenger seat. Jones admitted to being on the scene of the business and possessing the firearm.
Jones is a felon who was convicted in April of 2014 for possession of cocaine. Under federal law, felons are not allowed to possess firearms and ammunition. He pleaded guilty to federal charges on October 31, 2019.
The ATF and the Lake Charles Police Department conducted the investigation. Assistant U.S. Attorney Jamilla A. Bynog prosecuted the case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. Project Safe Neighborhoods 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.