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21 June 2019
Debra Bluto Sentenced for Social Security FraudRead the Press Release
The United States Attorney for the District of Vermont announced that Debra Bluto, 64, of St. Albans Bay, was sentenced today in United States District Court in Burlington following her guilty plea to a charge that she defrauded the Social Security Administration. Chief U.S. District Judge Geoffrey Crawford sentenced Bluto to two years of probation and ordered her to pay restitution totaling $48,000.
On October 24, a federal grand jury in Rutland returned a four-count indictment charging Bluto with stealing government funds and making false statements to the Social Security Administration. According to the indictment, Bluto’s grandson began receiving Supplemental Security Income benefits from the government in 2001. SSI is a special needs-based benefit program designed to provide financial assistance to aged, blind and disabled persons who have little or no income. The benefits for Bluto’s grandson were paid directly to Debra Bluto as her grandson’s representative payee.
For most of the period between May 2008 and January 2017, Bluto’s grandson was incarcerated following his convictions for serious crimes. By law, Bluto’s grandson was not entitled to receive SSI benefits during any period of incarceration. Nonetheless, Bluto continued to receive her grandson’s SSI benefits for the entire time he was in jail. According to the indictment, in annual reports she had to file with the Social Security Administration, Debra Bluto concealed the fact that her grandson was in prison and falsely claimed that she used all the SSI funds to pay for his care. In fact, the indictment charges, Debra Bluto converted those illegitimate payments – which totaled slightly more than $50,000 -- to her own benefit.
This case was investigated by the Office of the Inspector General of the Social Security Administration.
Bluto is represented by Federal Public Defender Michael Desautels. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Culbertson man sentenced for strangulationRead the Press Release
GREAT FALLS— A Culbertson man who admitted to strangling a woman during an argument in a vehicle on the Blackfeet Indian Reservation in September 2018 was sentenced on June 20 to 22 months in prison and to two years of supervised release, U.S. Attorney Kurt Alme said.
Elijah Blaine Eagleman, 24, pleaded guilty to strangulation in March.
U.S. District Judge Brian M. Morris presided.
Prosecutors said evidence would show that on Sept. 8, 2018, Eagleman hit and strangled the victim near Browning, on the Blackfeet Reservation. The victim lost consciousness after Eagleman choked her with his left forearm and does not recall being hit in the face by Eagleman. The victim said in a statement that the two of them had been arguing.
A law enforcement officer responded after a woman reported to law enforcement that she had stopped at a domestic assault at the intersection of U.S. Highways 2 and 89, at the Y, near Browning. She said a man was on top of a woman, who appeared to be trying to wave her down. The officer approached the vehicle and saw that the victim, who was the driver, had fresh bruises on her face and was crying. The victim was treated at the Indian Health Service and released the next morning.
In an interview with an agent, the victim said Eagleman had wrapped his forearm around her neck and pulled her backward into his seat, choking her. The agent observed injuries to the victim’s face and neck as being consistent with a strangulation assault.
Assistant U.S. Attorney Paulette Stewart prosecuted the case, which was investigated by the Bureau of Indian Affairs and Blackfeet Tribal Police.
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Charlotte Woman Indicted for Preparing False Tax ReturnsRead the Press Release
CHARLOTTE, N.C. – A federal grand jury sitting in Charlotte indicted Elizabeth Pigatt, 46, of Charlotte, on June 20, 2019, on charges of aiding and assisting in the preparation of fraudulent tax returns for her client and filing false tax returns for herself, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
Matthew D. Line, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI) joins U.S. Attorney Murray in making today’s announcement.
According to allegations contained in the indictment, beginning in at least 2012 and continuing through 2016, the defendant owned and operated Pigatt Taxes Quick, a tax return preparation business located in Charlotte. The indictment alleges that Pigatt prepared income tax returns for clients that claimed false education credits, false Premium Tax Credits, and false Schedule C businesses to inflate refunds paid by the IRS. In addition to filing fraudulent income tax returns for her clients, Pigatt falsified her own income tax returns by underreporting the fees she earned in her tax preparation business for tax years 2013, 2014, and 2015, and in her 2012 through 2015 tax returns, Pigatt also falsely claimed education credits and the incorrect filing status.
According to allegations in the indictment, Pigatt prepared or caused to be prepared more than 430 tax returns for tax years 2011 through 2015 that claimed total refunds of more than $2 million. Pigatt allegedly received at least $95,000 in fees from her clients which were taken directly from her clients’ refunds. In some cases, the indictment alleges that Pigatt’s clients were unaware of how much they were being charged, which was frequently between $250 and $500.
As alleged in the indictment, Pigatt regularly failed to provide her clients with copies of their prepared and filed tax returns. Some clients received correspondence from the IRS after their taxes were filed questioning items on the tax returns. The indictment alleges that Pigatt refused to assist the clients with questions from the IRS.
The indictment further alleges that Pigatt also prepared a false 2015 income tax return for an undercover IRS agent, which included false education credits.
Pigatt faces a maximum possible sentence of three years in prison on each count, as well as a period of supervised release, restitution, and monetary penalties.
The details contained in this indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
IRS-CI is leading the investigation. The U.S. Attorney’s Office in Charlotte is in charge of the prosecution.
Buffalo Man Sentenced on Drug and Ammunition ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that Tremaine Giddens, 42, of Buffalo, NY, who was convicted of possession with intent to distribute, and distribution of, cocaine, and being a felon in possession of ammunition, was sentenced by Chief U.S. District Judge Frank P. Geraci, Jr. to serve 71 months in prison.
Assistant U.S. Attorney Laura A. Higgins, who handled the case, stated that in October 2017, the defendant sold a quantity of cocaine to an individual working with the Drug Enforcement Administration (DEA) in a commercial parking lot at 15 Skillen Street in Buffalo.
On November 9, 2017, a federal search warrant was executed at 15 Skillen Street where investigators recovered a quantity of suspected cocaine, plastic bags, baking powder, and 2 digital scales. In addition, 35 rounds of .44 caliber ammunition was recovered.
On August 29, 2006, Giddens was convicted in Federal Court of possession with intent to distribute, and distribution of, a controlled substance. On January 20, 2000, in Erie County Court, the defendant was convicted of Criminal Possession of a Controlled Substance in the Fifth Degree. As a result of those convictions, Giddens is legally prohibited from possessing ammunition.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
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Buckhannon man and Clarksburg man sentenced for methamphetamine distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Joshua Langbein, of Buckhannon, West Virginia, and Ramiro Pimentel, Jr., of Clarksburg, West Virginia, were sentenced today for distributing methamphetamine, United States Attorney Bill Powell announced.
Langbein, age 28, was sentenced to 115 months incarceration. Langbein pled guilty to one count of “Possession with Intent to Distribute Methamphetamine” in March 2019. He admitted to distributing methamphetamine in March 2018 in Harrison County.Pimentel, age 32, was sentenced to 78 months incarceration. Pimentel pled guilty to one count of “Distribution of Methamphetamine” in February 2019. He admitted to selling methamphetamine in May 2017 in Harrison County.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the cases on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated. The United States Marshal Service assisted in the arrests.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. District Judge Thomas S. Kleeh presided.
Brazilian National Indicted for Firearm TraffickingRead the Press Release
BOSTON – A Brazilian national, who resides in Malden, was charged in federal court in Boston yesterday with immigration and firearms crimes.
Vanderlei Rodrigues DeAraujo, a/k/a Neneco, 43, was indicted on one count of dealing in firearms without a license, two counts of alien in possession of a firearm and ammunition, and one count of illegal reentry of a previously deported alien. DeAraujo will be arraigned in federal court in Boston at a later date.
According to the indictment, DeAraujo possessed and subsequently sold firearms and ammunition on two occasions: on Sept. 6, 2018, and Jan. 28, 2019. At the time of the firearm sales, DeAraujo was unlawfully present in the United States, having been previously deported to Brazil on Aug. 18, 2011, and returning to the United States illegally sometime thereafter.
The charge of engaging in the business of dealing in firearms without a license carries a sentence of no greater than five years in prison, up to three years of supervised release, and a fine of up to $250,000. The charge of being an alien in possession of firearm and ammunition carries a sentence of no greater than 10 years in prison, three years supervised release, and a fine of up to $250,000. The charge of unlawful reentry of a previously deported alien carries a sentence of no greater than two years in prison, up to one year of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Marcos D. Charles, Acting Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and William B. Gannon, Special Agent in Charge of the U.S. Department of State’s Diplomatic Security Service, Boston Field Office, made announcement today. Valuable assistance was provided by Homeland Security Investigations in Boston, the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division and the Malden Police Department. Assistant U.S. Attorney Lindsey Weinstein of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Bookkeeper Sentenced to 30 Months after Pleading Guilty to Failing to Declare More Than $700,000 in Stolen Money on Tax Return and Stealing over Five Million Dollars from New Orleans Law Firm and Real Estate CompanyRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced today that PEGGY NAGELE, age 65 of Thibodeaux, Louisiana was sentenced Thursday, June 13, 2019 to serve 30 months in federal prison. She previously pled guilty to a one-count bill of information, charging her with violating Title 26, United States Code, Section 7206, making false statements on an income tax return in January 2019.
In papers signed by NAGELE and filed in open court, NAGELE admitted to failing to declare more than $727,847.80 in funds she had stolen on her 2011 Federal tax form 1040, as charged in the Bill of Information. NAGELE was employed as a bookkeeper with Law Firm A, a New Orleans law firm. NAGELE further admitted to theft of $5,083,601 from Firm “A” and Business “A”, a real estate management company.
NAGELE further admitted to having unfettered access to both entities checkbooks and financial assets. She wrote checks to herself from operating accounts at Firm “A”. She disguised her thefts by making the checks payable to routine vendors, or simply did not record the checks in the check register. The checks were then deposited into either Mortgage Lending Group, a business NAGELE and her family controlled or Nagele Corporation, another business controlled by the defendant.
“The role of IRS Criminal Investigation becomes even more important in embezzlement and fraud cases due to the complex financial transactions that can take time to unravel,” said Demetrius Hardeman, Assistant Special Agent in Charge, Atlanta Field Office – New Orleans Post. “The federal tax laws are normally violated in these cases which can add to additional jail time. As we often see, the victims are not only the taxpayers, but also the individuals and entities who suffer the financial harm.”
NAGELE was also ordered to pay $5,083,601 in restitution to her victims. She is to report to prison in August, 2019.
U.S. Attorney Strasser praised the work of the Internal Revenue Service-Criminal Investigation Division for their thorough investigation. The case was prosecuted by Assistant United States Attorney Carter K.D. Guice Jr.
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Black Guerilla Family Gang Member Sentenced to Life in Prison for Federal Racketeering and Drug Conspiracy ChargesRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge James K. Bredar sentenced Marquise McCants, a/k/a Digga, age 26, of Baltimore, to life in prison for conspiring to participate in a violent racketeering enterprise known as the Black Guerilla Family (BGF). In January 2018, McCants was convicted by a federal jury of racketeering conspiracy, conspiracy to distribute and possess with intent to distribute controlled substances, and possession of a firearm by a convicted felon. At the sentencing hearing, the government also presented evidence that McCants committed an additional murder that was unsolved at the time of McCants’ trial.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Michael Harrison of the Baltimore Police Department; Maryland Attorney General Brian E. Frosh; and Baltimore City State’s Attorney Marilyn Mosby.
“Marquise McCants and his fellow gang members brought terror and death to Baltimore’s Greenmount Avenue neighborhood with guns, drugs, and violence,” said U.S. Attorney Robert K. Hur. “As a result of a coordinated effort by our federal, state, and local law enforcement partners, nine members of the BGF Greenmount Regime have been removed from our community and Marquise McCants faces the rest of his life in federal prison, where there is no parole—ever. I urge anyone who’s thinking of following these gang members’ example: Please, put down the guns and save a life—maybe even your own.”
According to the evidence presented at the two-month trial, McCants was a member of an organization known today as the BGF Greenmount Avenue Regime, a violent set of BGF. Between 2005 and 2017, the gang and its members were responsible for seven murders; three non-fatal shootings; more than 10 armed robberies; and over 12 years of street-level drug dealing. McCants was a member of the gang during that time and dealt drugs, and committed stabbings, robberies, and attempted murders in furtherance of BGF.
Beginning in approximately 2005 and continuing until early 2007, co-defendant and BGF Greenmount Regime leader Gerald Johnson supplied distribution quantities of cocaine, crack cocaine, heroin, and methylenedioxy-methamphetamine (ecstasy) to YGF members, including McCants, who was then a juvenile. According to witness testimony, McCants primarily sold crack cocaine in the vicinity of Barclay and 24th Streets. McCants also participated in violence on behalf of the gang. For example, on May 9, 2008, in the 2400 block of Greenmount Avenue, McCants, who was not even sixteen years old at the time, led a group of individuals who attacked and stabbed a twelve-year-old member of a rival Bloods gang. A witness who identified McCants as the person who led the attack testified that afterward, members of BGF walked back and forth in front of the witness’s residence in an apparent effort to silence the witness. The witness’ family moved out of the neighborhood shortly thereafter, in fear for their lives.
Witnesses testified at trial that on August 26, 2010, McCants and an unknown accomplice committed an armed home invasion and robbery of a family in Elkton, Maryland. Further, the evidence proved that in August 2011, McCants assaulted and stabbed a member of a rival Bloods gang in a prison in Hagerstown, Maryland.
On February 4, 2017, while a fugitive in the case, McCants attempted to murder an individual in the vicinity of Greenmount and North Avenues, shooting him seven times in the legs and back. McCants then fled to a residence in the 5600 block of Pioneer Drive, where he was arrested after a multi-hour standoff with a U.S. Marshals Task Force. Before surrendering, McCants disassembled the .40 caliber firearm used to shoot the victim and hid it behind a wall in a bathroom of the residence. In recorded jail calls after his arrest, McCants attempted to direct confederates to dispose of the weapon. Law enforcement officers monitoring his jail calls were able to recover the gun, which was then examined and linked to the February 4 shooting.
On September 26, 2017, a hidden audio-video recording device in a common area at the Chesapeake Detention Facility captured McCants telling co-conspirator Norman Handy about a brutal murder he committed with a fellow BGF member in retaliation for the victim shooting up the BGF member’s residence on Druid Hill. According to McCants, he and his co-conspirator convinced the victim to come for a ride with them. Upon reaching their destination, the victim started to get out of the car, when McCants grabbed the victim’s shirt and fired 11 rounds at him, killing him. McCants bragged that he took the victim’s phone while “he was still twitching.”
Based on evidence presented at the sentencing hearing, the Court also found that McCants shot and killed George Cookson on January 19, 2017, in connection with an effort to collect a drug debt owed to an associate. The gun used to murder Cookson was recovered during the execution of a search warrant on a vehicle parked in the driveway of the associate’s home in northeast Baltimore, where McCants was arrested. The gun was found in a hidden compartment in the vehicle, along with another firearm.
Eight co-defendants, also members of the BGF gang, were convicted of conspiring to violate federal racketeering and drug trafficking laws and have been sentenced, including Gerald Thomas Johnson, a/k/a “Geezy,” age 35; and Kenneth Jones, a/k/a “K-Slay” and “Slay,” age 30, both of Baltimore, who were convicted after trial and sentenced to life in prison.
United States Attorney Robert K. Hur commended the ATF, the FBI, the Baltimore Police Department, the Maryland Attorney General’s Office, and the Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Peter J. Martinez and Christina Hoffman, who prosecuted the case.
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Baltimore man sentenced for role in methamphetamine distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Justin Jackson, of Baltimore, Maryland, was sentenced today to 48 months incarceration for his role in a methamphetamine distribution operation, United States Attorney Bill Powell announced.
Jackson, age 41, pled guilty to one count of “Distribution of Methamphetamine” in March 2019. Jackson admitted to selling methamphetamine in November 2017 in Harrison County.Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated. The United States Marshal Service assisted.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. District Judge Thomas S. Kleeh presided.
Attorney Indicted for Conspiring to Commit Immigration FraudRead 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 an Indictment charging DAVID E. PIVER, age 59, from Newton Square, Pennsylvania, with conspiracy to commit visa fraud and false statements, fraud and misuse of visas permits and other documents; false statement in an immigration proceeding relating to alien registry; and, aiding and abetting.
According to the Indictment, PIVER is an attorney admitted to practice law in Pennsylvania and in immigration proceedings throughout the United States. The Indictment alleges that PIVER conspired with a Nepalese client to conceal a past false claim of United States citizenship. The purpose of the scheme was to fraudulently qualify the Nepalese client for lawful permanent resident status in the United States. The charging document alleges that it was further part of the conspiracy that PIVER would be paid approximately $10,000.
Publicly available court documents also show that, in order to accomplish the purpose of the conspiracy, PIVER instructed the Nepalese client to deny having made the previous claim of United States citizenship and file immigration applications containing false statements. When the Nepalese client was confronted by immigration officers in Durham, North Carolina about his prior false claim, PIVER advised him to recant the statement and withdraw the application. Thereafter, PIVER advised the Nepalese client to resubmit the application containing the same false statement, but move to a different city in order to avoid the jurisdiction of the immigration office in Durham, North Carolina.
If convicted, PIVER would face maximum penalties of fifty years’ imprisonment, a $1,750,000.00 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the Indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
The case is being investigated by the Document Benefit Fraud Task Force (DBFTF) led by Homeland Security Investigations, and assisted by U.S. Citizenship and Immigration Services (USCIS), among other agencies.
Armed Heroin Dealer Sentenced to More Than 11 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ISMAEL MANGUAL, 43, of Bridgeport, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 137 months of imprisonment, followed by four years of supervised release, for heroin distribution and firearm possession offenses.
According to court documents and statements made in court, on August 31, 2017, Milford Police stopped a vehicle Mangual was driving. Mangual did not have a driver’s license, the car was not registered or insured, and there was a six-year-old boy in the back seat without a car seat or seatbelt. A subsequent search of the car revealed a loaded Glock 27 .40 caliber handgun, a Glock 30 .45 handgun that had been reported stolen, approximately 140 grams of heroin and a digital scale. The loaded firearm was found in the rear footwell of the car, close to where the child had been sitting. Mangual was arrested on state charges on that date.
On March 28, 2019, Mangual pleaded guilty to one count of possession with intent to distribute 100 grams or more of heroin, and one count of possession a firearm in furtherance of a narcotics trafficking offense.
Mangual’s criminal history includes state convictions for robbery and narcotics offenses.
This matter was investigated by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force, which includes personnel from the DEA, Connecticut State Police and Norwalk, Stamford, Stratford, Milford, Bridgeport and Trumbull Police Departments. The case was prosecuted by Assistant U.S. Attorney Rahul Kale.
Anchorage Man Arrested and Charged for Armed Bank RobberyRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that Kek Nyathor Bol, 21, of Anchorage, has been charged by criminal complaint with bank robbery and discharging a firearm during a crime of violence, in connection with the June 15, 2019, robbery of Credit Union 1 located at 4020 Debarr Road.
According to the criminal complaint, on June 15, 2019, Bol allegedly entered the Credit Union 1 branch armed with a semi-automatic pistol with an extended magazine wearing grey sweat pants, a grey sweatshirt, and a black bandana covering his face. It is alleged that, immediately upon entering the branch, Bol fired a shot into the ceiling, and demanded money from the tellers while pointing the pistol at them. He then ran out of the building after the robbery.
The complaint explains that law enforcement obtained and reviewed video surveillance of a man who was running into and out of the credit union at the time of the robbery, and who dropped several items in the parking lot, later identified as bundles of cash. The footage also identified a sedan that was seen near the man before and after the robbery. Anchorage Crime Stoppers received an anonymous tip that led law enforcement officers to an Anchorage address where Bol resided. A sedan matching the vehicle seen during the robbery was parked directly in front of the residence. While searching the vehicle and the sedan, investigators located a black Glock Model 19 9mm handgun and ammunition, as well as thousands of dollars in cash, some of which they were able to match to the money taken in the robbery through a comparison of serial numbers.
Bol was arrested on the charges the evening of June 18, 2019, and was ordered detained pending trial. 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.
The Federal Bureau of Investigation (FBI) and the Anchorage Police Department (APD), as part of FBI’s Safe Streets Task Force, conducted the investigation leading to the charges in this case. This case is being prosecuted by Assistant U.S. Attorney James Klugman.
The charges in the criminal complaint are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Agawam Man Pleads Guilty to Cocaine ConspiracyRead the Press Release
BOSTON - An Agawam man pleaded guilty yesterday in federal court in Boston to his role in a cocaine conspiracy.
Lawon Baulkman, 37, pleaded guilty to one count of conspiracy to distribute 500 grams or more of cocaine. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Sept. 16, 2019.
Baulkman conspired with co-defendant David Cruz and others to process and distribute cocaine. According to court documents, Cruz obtained the cocaine from sources in Mexico and arranged for the cocaine to be transported to the Springfield area via concealed compartments in a Nissan Juke. Cruz has pleaded guilty to cocaine and firearms offenses and is awaiting sentencing in federal court in Worcester.
Baulkman faces at least five years and no more than 40 years in prison, a minimum of four years of supervised release, and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division, made the announcement today. Valuable assistance was provided by the Internal Revenue Service Criminal Investigation’s in Boston and the Westfield Police Department. Assistant U.S. Attorneys Katharine A. Wagner of Lelling’s Springfield Office and Evan J. Gotlob of Lelling’s Boston Office are prosecuting the case.
20 June 2019
Woman Sentenced to 70 Months for Methamphetamine Parcel Delivery SchemeRead the Press Release
United States Attorney Joe Kelly announced that Chief United States District Judge John M. Gerrard, sentenced Mayra Guadalupe Nunez today to a term of imprisonment of 70 months, to be served in the U.S. Bureau of Prisons. Nunez pleaded guilty to Conspiracy to Distribute and Possess with Intent to Distribute Methamphetamine, a felony offense.
Investigators with the Omaha Field Division of the Drug Enforcement Administration and the Douglas County Sheriff’s Office intercepted a FedEx delivery of packages containing approximately 10 pounds of methamphetamine. Investigators successfully executed the delivery at a residence in Omaha, where Nunez and Jose Guzman-Ramirez received the packages. Guzman-Ramirez was sentenced in February of 2019 to a term of imprisonment of 120 months, and will be removed to Mexico by immigration authorities after he serves his sentence. Nunez is a U.S. citizen. Investigators recovered the methamphetamine and more than $11,600.00 in United States Currency, which is subject to criminal forfeiture.
Wichita Man Pleads Guilty to Four Commercial RobberiesRead the Press Release
WICHITA, KAN. – A Wichita man pleaded guilty Wednesday to four commercial robberies, U.S. Attorney Stephen McAllister said.
Kenneth W. Cade, 29, Wichita, Kan., pleaded guilty to four counts of robbery and one count of carrying a firearm during a robbery. In his plea, he admitted committing the following robberies:
- Dollar General Store, 915 S. Glendale in Wichita, Nov. 22, 2017. Cade admitted pointing a gun at an employee and demanding money.
- C-Store, 837 S. Oliver in Wichita, Feb. 7, 2018. Cade admitted serving as a lookout while a co-defendant pointed a gun at an employee and demanded money.
- Arby’s, 4308 E. Harry in Wichita, Feb. 14, 2018. Cade admitted pointing a firearm at an employee and demanding money.
- Circle K Store, 515 N. Seneca in Wichita, Feb. 14, 2018. Cade admitted grabbing cash from a register after a co-defendant pointed a gun at an employee and demanded money.
Co-defendant Savannah Cole, 21, Wichita, Kan., is scheduled for a change of plea hearing June 24, 2019.
Cade is set for sentencing Sept. 6. Both parties have agreed to recommend Cade receive a sentence in a range from 144 months to 170 months in federal prison.
McAllister commended the FBI, the Wichita Police Department and Assistant U.S. Attorney Matt Treaster for their work on the case, which was prosecuted as part of Project Safe Neighborhoods, a U.S. Department of Justice initiative targeting violent crime.
Walmart Inc. and Brazil-Based Subsidiary Agree to Pay $137 Million to Resolve Foreign Corrupt Practices Act CaseRead the Press Release
ALEXANDRIA, Va. – Walmart Inc. (Walmart), a U.S.-based multinational retailer and one of the world’s largest corporations, and its wholly owned Brazilian subsidiary, WMT Brasilia S.a.r.l. (WMT Brasilia), have agreed to pay a combined criminal penalty of $137 million to resolve the government’s investigation into violations of the Foreign Corrupt Practices Act (FCPA). WMT Brasilia pleaded guilty today in connection with the resolution.
“Walmart violated the Foreign Corrupt Practices Act because it failed to implement the internal controls necessary to ferret out corrupt conduct,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “For more than a decade, Walmart experienced exponential international growth but failed to create safeguards to protect against corruption risks in various countries. This resolution is the result of several years of steadfast work by the prosecutors and our law enforcement partners at the FBI and IRS-CI.”
According to Walmart’s admissions, from 2000 until 2011, certain Walmart personnel responsible for implementing and maintaining the company’s internal accounting controls related to anti-corruption were aware of certain failures involving these controls, including relating to potentially improper payments to government officials in certain Walmart foreign subsidiaries, but nevertheless failed to implement sufficient controls that, among other things, would have ensured: (a) that sufficient anti-corruption-related due diligence was conducted on all third-party intermediaries (TPIs) who interacted with foreign officials; (b) that sufficient anti-corruption-related internal accounting controls concerning payments to TPIs existed; (c) that proof was required that TPIs had performed services before Walmart paid them; (d) that TPIs had written contracts that included anti-corruption clauses; (e) that donations ostensibly made to foreign government agencies were not converted to personal use by foreign officials; and (f) that policies covering gifts, travel and entertainment sufficiently addressed giving things of value to foreign officials and were implemented. Even though senior Walmart personnel responsible for implementing and maintaining the company’s internal accounting controls related to anti-corruption knew of these issues, Walmart did not begin to change its internal accounting controls related to anti-corruption to comply with U.S. criminal laws until 2011.
“Walmart profited from rapid international expansion, but in doing so chose not to take necessary steps to avoid corruption,” said Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division. “In numerous instances, senior Walmart employees knew of failures of its anti-corruption-related internal controls involving foreign subsidiaries, and yet Walmart failed for years to implement sufficient controls comporting with U.S. criminal laws. As today’s resolution shows, even the largest of U.S. companies operating abroad are bound by U.S. laws, and the Department of Justice will continue to aggressively investigate and prosecute foreign corruption.”
The internal controls failures allowed Walmart foreign subsidiaries in Mexico, India, Brazil and China to hire TPIs without establishing sufficient controls to prevent those TPIs from making improper payments to government officials in order to obtain store permits and licenses. In a number of instances, insufficiencies in Walmart’s anti-corruption-related internal accounting controls in these foreign subsidiaries were reported to senior Walmart employees and executives. The internal control failures allowed the foreign subsidiaries in Mexico, India, Brazil and China to open stores faster than they would have with sufficient internal accounting controls related to anti-corruption. Consequently, Walmart earned additional profits through these subsidiaries by opening some of its stores faster.
“The FBI will hold corporations responsible when they turn a blind eye to corruption," said Robert Johnson, Assistant Director of the FBI’s Criminal Investigative Division. "If there is evidence of violations of FCPA, we will investigate. No corporation, no matter how large, is above the law."
In Mexico, a former attorney for Walmart’s local subsidiary reported to Walmart in 2005 that he had overseen a scheme for several years prior in which TPIs made improper payments to government officials to obtain permits and licenses for the subsidiary and that several executives at the subsidiary knew of and approved of the scheme. Most of the TPI invoices included a code specifying why the subsidiary had made the improper payment, including: (1) avoiding a requirement; (2) influence, control or knowledge of privileged information known by the government official; and (3) payments to eliminate fines.
“Walmart’s guilty plea is another step in IRS-CI’s ongoing effort to pursue corporations that engage in corruption that prevents fair competition around the world,” said Kelly Jackson, Special Agent in Charge of IRS Criminal Investigations’ (IRS-CI) Washington, D.C. Office. “Through our efforts, we delved through layers of transactions and uncovered the bribery of foreign officials. Today’s announcement is a statement that no company, even one as large as Walmart, is above the law.”
In India, because of Walmart’s failure to implement sufficient internal accounting controls related to anti-corruption, from 2009 until 2011, Walmart’s operations there were able to retain TPIs that made improper payments to government officials in order to obtain store operating permits and licenses. These improper payments were then falsely recorded in Walmart’s joint venture’s books and records with vague descriptions like “misc fees,” “miscellaneous,” “professional fees,” “incidental” and “government fee.”
In Brazil, as a result of Walmart’s failure to implement sufficient internal accounting controls related to anti-corruption at its subsidiary, Walmart Brazil, an entity majority-owned by WMT Brasilia, despite repeated findings in internal audit reports that such controls were lacking, Walmart Brazil continued to retain and renew contracts with TPIs without conducting the required due diligence. Improper payments were in fact paid by some of these TPIs, including a construction company that made improper payments to government officials in connection with the construction of two Walmart Brazil stores in 2009 without the knowledge of Walmart Brazil. Walmart Brazil indirectly hired a TPI whose ability to obtain licenses and permits quickly earned her the nickname “sorceress” or “genie” within Walmart Brazil. Walmart Brazil employees, including a Walmart Brazil executive, knew they could not hire the intermediary directly because of several red flags. In 2009, the TPI made improper payments to government inspectors in connection with the construction of a Walmart Brazil store without the knowledge of Walmart Brazil. WMT Brasilia was a wholly-owned subsidiary of Walmart and was a majority-owner of Walmart Brazil.
In China, Walmart’s local subsidiary’s internal audit team flagged numerous weaknesses in internal accounting controls related to anti-corruption at the subsidiary between 2003 and 2011, sometimes repeatedly, but many of these weaknesses were not addressed. In fact, from 2007 until early 2010, Walmart and the subsidiary failed to address nearly all of the anti-corruption-related internal controls audit findings.
Walmart entered into a three-year non-prosecution agreement and agreed to retain an independent corporate compliance monitor for two years. The $137 million penalty reflects a 20 percent reduction off the bottom of the applicable U.S. Sentencing Guidelines fine range for the portion of the penalty applicable to conduct in Mexico and 25 percent for the portion applicable to the conduct in Brazil, China and India. Walmart fully cooperated with the investigation in Brazil, China and India. Walmart cooperated with the investigation in Mexico, but did not timely provide documents and information to the government and did not de-conflict with the government’s request to interview one witness before Walmart interviewed that witness. Walmart did not voluntarily disclose the conduct in Mexico and only disclosed the conduct in Brazil, China and India after the government had already begun investigating the Mexico conduct. The $137 million penalty includes forfeiture of $3.6 million and a fine of $724,898 from WMT Brasilia.
In a related resolution with the U.S. Securities and Exchange Commission (SEC), Walmart agreed to disgorge $144 million in profits.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division, Robert Johnson, Assistant Director of the FBI’s Criminal Investigative Division, and Kelly Jackson, Special Agent in Charge of IRS Criminal Investigations’ (IRS-CI) Washington, D.C. Office, made the announcement.
The FBI’s International Corruption Squad in Washington, D.C. and IRS-CI are investigating the case. Assistant Chiefs Tarek Helou and Lorinda Laryea and Trial Attorney Katherine Raut of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jamar Walker of the Eastern District of Virginia are prosecuting the case.
The Criminal Division’s Office of International Affairs has provided significant assistance by obtaining key evidence in this case, as have public authorities in, among other countries, Mexico and India.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-192.
Walmart Inc. and Brazil-Based Subsidiary Agree to Pay $137 Million to Resolve Foreign Corrupt Practices Act CaseRead the Press Release
Walmart Inc. (Walmart), a U.S.-based multinational retailer and its wholly owned Brazilian subsidiary, WMT Brasilia S.a.r.l. (WMT Brasilia), have agreed to pay a combined criminal penalty of $137 million to resolve the government’s investigation into violations of the Foreign Corrupt Practices Act (FCPA). WMT Brasilia pleaded guilty today in connection with the resolution.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia, Assistant Director Robert Johnson of the FBI’s Criminal Investigative Division and Special Agent in Charge Kelly Jackson of IRS Criminal Investigation’s (IRS-CI) Washington, D.C. office made the announcement.
“Walmart profited from rapid international expansion, but in doing so chose not to take necessary steps to avoid corruption,” said Assistant Attorney General Benczkowski. “In numerous instances, senior Walmart employees knew of failures of its anti-corruption-related internal controls involving foreign subsidiaries, and yet Walmart failed for years to implement sufficient controls comporting with U.S. criminal laws. As today’s resolution shows, even the largest of U.S. companies operating abroad are bound by U.S. laws, and the Department of Justice will continue to aggressively investigate and prosecute foreign corruption.”
“Walmart violated the Foreign Corrupt Practices Act because it failed to implement the internal controls necessary to ferret out corrupt conduct,” said U.S. Attorney Terwilliger. “For more than a decade, Walmart experienced exponential international growth but failed to create safeguards to protect against corruption risks in various countries. This resolution is the result of several years of steadfast work by the prosecutors and our law enforcement partners at the FBI and IRS-CI.”
“The FBI will hold corporations responsible when they turn a blind eye to corruption," said FBI Assistant Director Johnson. "If there is evidence of violations of FCPA, we will investigate. No corporation, no matter how large, is above the law."
“Walmart’s guilty plea is another step in IRS-CI’s ongoing effort to pursue corporations that engage in corruption that prevents fair competition around the world,” said IRS-CI Special Agent in Charge Jackson. “Through our efforts, we delved through layers of transactions and uncovered the bribery of foreign officials. Today’s announcement is a statement that no company, even one as large as Walmart, is above the law.”
According to Walmart’s admissions, from 2000 until 2011, certain Walmart personnel responsible for implementing and maintaining the company’s internal accounting controls related to anti-corruption were aware of certain failures involving these controls, including relating to potentially improper payments to government officials in certain Walmart foreign subsidiaries, but nevertheless failed to implement sufficient controls that, among other things, would have ensured: (a) that sufficient anti-corruption-related due diligence was conducted on all third-party intermediaries (TPIs) who interacted with foreign officials; (b) that sufficient anti-corruption-related internal accounting controls concerning payments to TPIs existed; (c) that proof was required that TPIs had performed services before Walmart paid them; (d) that TPIs had written contracts that included anti-corruption clauses; (e) that donations ostensibly made to foreign government agencies were not converted to personal use by foreign officials; and (f) that policies covering gifts, travel and entertainment sufficiently addressed giving things of value to foreign officials and were implemented. Even though senior Walmart personnel responsible for implementing and maintaining the company’s internal accounting controls related to anti-corruption knew of these issues, Walmart did not begin to change its internal accounting controls related to anti-corruption to comply with U.S. criminal laws until 2011.
The internal controls failures allowed Walmart foreign subsidiaries in Mexico, India, Brazil and China to hire TPIs without establishing sufficient controls to prevent those TPIs from making improper payments to government officials in order to obtain store permits and licenses. In a number of instances, insufficiencies in Walmart’s anti-corruption-related internal accounting controls in these foreign subsidiaries were reported to senior Walmart employees and executives. The internal control failures allowed the foreign subsidiaries in Mexico, India, Brazil and China to open stores faster than they would have with sufficient internal accounting controls related to anti-corruption. Consequently, Walmart earned additional profits through these subsidiaries by opening some of its stores faster.
In Mexico, a former attorney for Walmart’s local subsidiary reported to Walmart in 2005 that he had overseen a scheme for several years prior in which TPIs made improper payments to government officials to obtain permits and licenses for the subsidiary and that several executives at the subsidiary knew of and approved of the scheme. Most of the TPI invoices included a code specifying why the subsidiary had made the improper payment, including: (1) avoiding a requirement; (2) influence, control or knowledge of privileged information known by the government official; and (3) payments to eliminate fines.
In India, because of Walmart’s failure to implement sufficient internal accounting controls related to anti-corruption, from 2009 until 2011, Walmart’s operations there were able to retain TPIs that made improper payments to government officials in order to obtain store operating permits and licenses. These improper payments were then falsely recorded in Walmart’s joint venture’s books and records with vague descriptions like “misc fees,” “miscellaneous,” “professional fees,” “incidental” and “government fee.”
In Brazil, as a result of Walmart’s failure to implement sufficient internal accounting controls related to anti-corruption at its subsidiary, Walmart Brazil, despite repeated findings in internal audit reports that such controls were lacking, Walmart Brazil continued to retain and renew contracts with TPIs without conducting the required due diligence. Improper payments were in fact paid by some of these TPIs, including a construction company that made improper payments to government officials in connection with the construction of two Walmart Brazil stores in 2009 without the knowledge of Walmart Brazil. Walmart Brazil indirectly hired a TPI whose ability to obtain licenses and permits quickly earned her the nickname “sorceress” or “genie” within Walmart Brazil. Walmart Brazil employees, including a Walmart Brazil executive, knew they could not hire the intermediary directly because of several red flags. In 2009, the TPI made improper payments to government inspectors in connection with the construction of a Walmart Brazil store without the knowledge of Walmart Brazil. WMT Brasilia was a wholly-owned subsidiary of Walmart and was a majority-owner of Walmart Brazil, Walmart’s wholly-owned subsidiary in Brazil, and the majority-owner of retail stores operating as Walmart Brazil.
In China, Walmart’s local subsidiary’s internal audit team flagged numerous weaknesses in internal accounting controls related to anti-corruption at the subsidiary between 2003 and 2011, sometimes repeatedly, but many of these weaknesses were not addressed. In fact, from 2007 until early 2010, Walmart and the subsidiary failed to address nearly all of the anti-corruption-related internal controls audit findings.
Walmart entered into a three-year non-prosecution agreement and agreed to retain an independent corporate compliance monitor for two years. The $137 million penalty reflects a 20 percent reduction off the bottom of the applicable U.S. Sentencing Guidelines fine range for the portion of the penalty applicable to conduct in Mexico and 25 percent for the portion applicable to the conduct in Brazil, China and India. Walmart fully cooperated with the investigation in Brazil, China and India. Walmart cooperated with the investigation in Mexico, but did not timely provide documents and information to the government and did not de-conflict with the government’s request to interview one witness before Walmart interviewed that witness. Walmart did not voluntarily disclose the conduct in Mexico and only disclosed the conduct in Brazil, China and India after the government had already begun investigating the Mexico conduct. The $137 million penalty includes forfeiture of $3.6 million and a fine of $724,898 from WMT Brasilia.
In a related resolution with the U.S. Securities and Exchange Commission (SEC), Walmart agreed to disgorge $144 million in profits.
The FBI’s International Corruption Squad in Washington, D.C. and IRS-CI are investigating the case. Assistant Chiefs Tarek Helou and Lorinda Laryea and Trial Attorney Katherine Raut of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jamar Walker of the Eastern District of Virginia are prosecuting the case.
The Criminal Division’s Office of International Affairs has provided significant assistance by obtaining key evidence in this case, as have public authorities in, among other countries, Mexico and India.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
United States Attorney Mike Stuart Issues Statement in Recognition of West Virginia DayRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart issued the following statement in recognition of West Virginia Day:
“On June 20, 1863, the greatest state in the greatest nation on earth was born out of struggle as a beacon to freedom and individual liberty. We have certainly struggled at times along our path but West Virginia remains a tremendous beacon for freedom and liberty with amazing economic potential today.
HAPPY BIRTHDAY TO OUR BELOVED WEST VIRGINIA! A great history with only brighter, bigger, bolder days ahead. Our mantra must be: Bold in vision; Bold in purpose. We must compete and we must compete to win. Greatness is at our doorstep if we choose to embrace it. Our brightest days are surely ahead.
I’m always proud to be a West Virginian in these mountains, along these ‘Country Roads’, among our great people.
Take time today to appreciate our blessings and our opportunities on this special day.
HAPPY BIRTHDAY WEST VIRGINIA!”
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Two New Jersey Men Found Guilty in Phony Debt Elimination SchemeRead the Press Release
NEWARK, N.J. – Two individuals were found guilty today for their respective roles in using phony monetary instruments to obtain luxury vehicles and other high value items; one of the defendants was additionally convicted of bankruptcy fraud, U.S. Attorney Craig Carpenito announced.
Germaine Howard King, a/k/a “Germaine Howard,” 43, of Elizabeth, New Jersey, was convicted for his role in a scheme to defraud banks and other lenders using phony money orders to fraudulently discharge a $400,000 mortgage, to fraudulently obtain two Mercedes Benz (one 2007 and one 2010) cars, and to pay off credit card bills. In addition, King was convicted of a scheme to use phony cashier’s checks to pay off his co-defendant’s five luxury cars.
Daniel D. Dxrams, currently known as “Daniel Kusi,” formerly known as “Danny D. Dxrams,” 40, of Maplewood, New Jersey, was convicted for his role in a scheme to fraudulently pay off a Rolls Royce, Bentley, and three Mercedes Benz cars (two 2015 cars and one 2016 car). In addition, Dxrams was convicted of bankruptcy fraud and making a false oath during a bankruptcy proceeding.
According to documents filed in this case and the evidence at trial:
King conspired with Melissa Reynolds to make fraudulent money orders on their home computers. They mailed these phony money orders to a credit union in an effort to fraudulently pay off their two Mercedes Benz cars. Although the credit union rejected both bogus money orders, King and Reynolds mailed correspondences to the credit union falsely claiming that the debt was satisfied. They then stopped paying their car loans, and King kept the car. King and Reynolds mailed a fraudulent money order in the amount of $432,000 to a financial institution to pay off their mortgage. The financial institution erroneously accepted the fraudulent payment and credited it as a payoff for the mortgage. When the financial institution filed a suit seeking to reinstate the fraudulently discharged mortgage, King and Reynolds continued to allege in court that the mortgage had been paid and submitted a phony receipt for the bogus money order. King also made and mailed fraudulent money orders in an attempt to pay off his credit card bills.
Dxrams, King, and Reynolds conspired to fraudulently pay off Dxrams’ five luxury cars. They sent a bogus $101,000 cashier’s check to a finance company that enabled Dxrams to obtain a 2012 Bentley for free. Dxrams sold the car to a third party for approximately $82,000 and then issued a bank check to King for approximately $25,000. The defendants also used this scheme in an effort to fraudulently obtain three Mercedes-Benz cars and a Rolls Royce.
Dxrams was also convicted of bankruptcy fraud and making a false oath before the bankruptcy court. In December 2017, Dxrams filed a bankruptcy petition under penalty of perjury. He falsely concealed his ownership of a car rental business and the gross receipts he earned through this car rental business, his sale of the Bentley, his receipt of money from a personal injury lawsuit, his ownership of firearms, and his marital status, among other things. In January 2018, Dxrams appeared before the bankruptcy trustee and, after being placed under oath, made false statements concerning his bankruptcy petition and his sale of the Bentley.
Reynolds previously pleaded guilty to conspiracy to commit bank fraud and mail fraud affecting financial institutions, and is awaiting sentencing. Another defendant, Arthur M. Martin III, has also pleaded guilty for his role in a scheme to fraudulently discharge a mortgage on his home, and is awaiting sentencing.
U.S. Attorney Carpenito credited special agents of the FBI and the Joint Terrorism Task Force, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the N.J. Office of Homeland Security and Preparedness, under the direction of Director Jared Maples; the U.S. Department of Education, Office of Inspector General Eastern Regional Office, under the direction of Assistant Special Agent in Charge Debbi Mayer; and the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi with the investigation leading to the convictions.
The government is represented by Assistant U.S. Attorney Anthony Moscato, Chief of the U.S. Attorney’s National Security Unit, and Lakshmi Srinivasan Herman, of the National Security Unit, in Newark.
Two More Ripley Employees Indicted for Misconduct, Negligence Resulting in 17 Deaths at Table Rock LakeRead the Press Release
SPRINGFIELD, Mo. – Two more employees of Ripley Entertainment, Inc. – the company that operated duck boat rides in Branson, Missouri – along with the captain of the duck boat that sank at Table Rock Lake last summer, resulting in the deaths of 17 people, have been indicted by a federal grand jury.
Curtis P. Lanham, 36, of Galena, Missouri, and Charles V. Baltzell, 76, of Kirbyville, Missouri, were charged in a 47-count superseding indictment returned under seal by a federal grand jury in Springfield on Thursday, June 13. The superseding indictment, which was unsealed and made public today following the initial court appearances of Lanham and Baltzell, contains the original charges against Kenneth Scott McKee, 51, of Verona, Missouri. It replaces the federal indictment returned on Nov. 8, 2018, and includes additional charges and defendants.
Ripley Entertainment, an Orlando, Florida, corporation, owned, operated, and conducted business as “Ride the Ducks Branson” from Dec. 1, 2017, to July 20, 2018. The company managed and operated “duck boat” tours in Taney and Stone counties, and was the owner and operator of the duck boat Stretch Duck 7.
McKee was employed by Ripley as the captain of Stretch Duck 7. He had been employed as a duck boat captain for approximately 18 years.
Lanham was employed by Ripley as the general manager at Ride the Ducks Branson. Lanham was responsible for the overall day-to-day management of the operations and duck boats, including Stretch Duck 7. Lanham’s duties also included setting policies and procedures for the operations and overseeing the training of employees. As general manager, Lanham held managerial authority over the entire staff of Ride the Ducks Branson. In July 2018, Lanham reported directly to Ripley’s president.
Baltzell was employed by Ripley as the operations supervisor at Ride the Ducks Branson and was acting as a manager on duty. Baltzell was responsible for ensuring the duck boat tours ran in sequence and acted as a dispatcher through the use of radio and other communications methods while the duck boat tours were ongoing. Baltzell’s duties also included monitoring the weather and communicating with ongoing duck boat tours regarding the weather.
A detailed account of the fatal events that occurred on July 19, 2018, is contained in the indictment.
The superseding indictment contains the original charges against McKee of misconduct and negligence by a vessel captain, resulting in the death of another person. Baltzell is added to each of those felony counts – one count for each of the 17 passengers (including one crew member) who died when Stretch Duck 7 sank – as an aider and abettor of misconduct and neglect by a vessel captain.
Lanham is charged with 17 felony counts of misconduct and neglect by an executive officer of the corporate charterer/owner – one count for each of the 17 passengers (including one crew member) who died when Stretch Duck 7 sank. (The indictment includes an alternative theory of liability in relation to Lanham’s status, which alleges that he aided and abetted McKee’s misconduct, negligence, and inattention to duty.)
McKee, Baltzell, and Lanham also are charged in 13 misdemeanor counts – one count for each of the 13 passengers who survived the sinking of Stretch Duck 7 – with operating a vessel in a grossly negligent manner that wantonly and recklessly disregarded and endangered the life, limb, and property of persons on board Stretch Duck 7; or with aiding and abetting the operation of a vessel in such a grossly negligent manner.
Charges Against McKee
The federal indictment alleges that McKee committed a number of acts of misconduct, negligence, and inattention to his duties while piloting Stretch Duck 7 both before and during severe weather conditions.
McKee allegedly failed to properly assess incoming weather prior to entering the vessel on the water. At the time McKee drove the vessel into the water, according to the indictment, there was lightning in the area and severe weather approaching. The indictment also alleges that McKee failed to properly assess the nature of the severe weather while the vessel was on the water.
McKee allegedly operated Stretch Duck 7 in violation of the conditions and limitations specified in the vessels’ certificate of inspection. When severe weather (including increased wind speed) arrived at the vessel’s location, the indictment says, McKee failed to instruct passengers to don personal floatation devices. He allegedly also failed to immediately increase speed and head to the nearest shore. He allegedly caused or allowed the vessel’s plastic side curtains to be lowered, which created a barrier over the vessel’s emergency exits in the event of a need to abandon ship. At no point prior to the sinking of Stretch Duck 7, says the indictment, did McKee prepare to, or order the passengers to, abandon ship.
The first time the vessel’s bilge alarm sounded, the indictment says, McKee failed to raise the side curtains, failed to instruct passengers to don personal floatation devices, and failed to prepare to abandon ship. McKee also attempted to make two calls to the Ride the Ducks Branson facility using the onboard radio, but received no response.
The second time the vessel’s bilge alarm sounded, the indictment says, McKee again failed to raise the side curtains, failed to instruct passengers to don personal floatation devices, and failed to prepare to abandon ship. McKee allegedly failed to prepare to abandon ship when there was an unacceptable loss of freeboard on the vessel as well. (Freeboard refers to the distance from the waterline to the upper deck level; a loss of freeboard is when waves are overtopping the freeboard, thus causing the ship to fill with water.)
Charges Against Baltzell
According to the indictment, Baltzell directed and allowed McKee to operate Stretch Duck 7 in violation of the conditions and limitations specified in the vessel’s Coast Guard-issued certificate of inspection, and failed to adequately supervise the operation of the tour of Stretch Duck 7 on July 19, 2018.
Baltzell allegedly failed to properly monitor and assess incoming weather prior to McKee entering the vessel on the water. Baltzell allegedly directed McKee to enter the vessel on the water when there was severe weather and lightning in the area. Baltzell allegedly failed to communicate to McKee the nature of the severe weather prior to its arrival and when severe weather arrived at the location of Stretch Duck 7 while the vessel was on the water. Baltzell allegedly failed to monitor radio communications from employees when severe weather arrived at the location of Stretch Duck 7 while the vessel was on the water.
The indictment alleges that these acts of misconduct, negligence, and inattention to duty by McKee and Baltzell separately and collectively caused the lives of 17 persons on board Stretch Duck 7 to be lost.
Charges Against Lanham
According to the indictment, while actually charged with the control and management of the operation, equipment, and navigation of Stretch Duck 7, and while acting as an executive officer of Ripley Entertainment, Lanham knowingly and willfully caused and allowed McKee, Baltzell, and others to engage in neglect, misconduct, and violation of law.
Lanham allegedly neglected to establish training requirements related to the monitoring of weather in the Branson area, including adequate training on the use and capabilities of a weather monitoring service utilized by Ride the Ducks Branson. Lanham allegedly neglected to establish and enforce policies and procedures related to the monitoring of weather – including when severe weather existed – in association with the management and operation of daily duck boat tours. Lanham allegedly neglected to establish and enforce policies and procedures related to the communication of weather information to duck boat captains and drivers conducting duck boat tours when severe weather existed in or approached the Branson area.
The indictment also alleges that Lanham created a work atmosphere on Stretch Duck 7 and other duck boats where the concern for profit overshadowed the concern for safety.
Lanham allegedly neglected to require adequate staffing of employees while duck boat tours were ongoing. Lanham allegedly negligently allowed, created, and connived with other persons to create a work atmosphere through which those responsible for monitoring the weather during duck boat tours were charged with other tasks that distracted them from monitoring the weather and impeded their ability to monitor radio communications. Lanham allegedly negligently created and connived with other persons to create a confusing work atmosphere on Stretch Duck 7 and other duck boats related to the monitoring of, and the response to, severe weather, through which there existed inappropriate concern for the weather.
The indictment also alleges that Lanham neglected to adequately supervise the management, operation, and conduct of the tour of Stretch Duck 7 on July 19, 2018.
Lanham allegedly neglected to properly assess incoming weather and negligently allowed McKee to enter the vessel on the water when there was lightning and severe weather approaching the area.
Lanham allegedly neglected to properly assess the nature of the severe weather when severe weather arrived at the location of Stretch Duck 7 while the vessel was on the water, and to communicate with McKee regarding the nature of the severe weather prior to its arrival and when severe weather arrived at the location of Stretch Duck 7 while the vessel was on the water.
Lanham allegedly neglected to require that Stretch Duck 7 be operated in compliance with the provisions of the Coast Guard certificate of inspection and negligently allowed McKee to operate, pilot, and navigate Stretch Duck 7 in violation of the conditions and limitations specified in the certificate of inspection, which was a violation of law.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Randall D. Eggert and Assistant U.S. Attorney Casey Clark. It was investigated by the U.S. Coast Guard Investigative Service, the Missouri State Highway Patrol, the Stone County, Mo., Sheriff’s Department, the Taney County, Mo., Sheriff’s Department, the Branson, Mo., Police Department, the Missouri Attorney General’s Office, the Stone County, Mo., Prosecutor’s Office, and the Taney County, Mo., Prosecutor’s Office.
Two Defendants Charged in Manhattan Federal Court with 2011 Murder-For-HireRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation (“FBI”), and James P. O’Neill, Police Commissioner of the City to New York (“NYPD”), today announced the unsealing of two Indictments charging DAVID ESPINAL, a/k/a “D-Block,” and MICHAEL CASTILLO, a/k/a “Squirrel,” with murder for hire and the March 10, 2011, murder of Hector Arias in the Bronx, New York.
ESPINAL was taken into custody this morning in the Eastern District of Pennsylvania and will be presented in federal court in that District today. CASTILLO was taking into custody this morning in the Northern District of Texas and will be presented in federal court in that District today. This case is assigned to U.S. District Judge John G. Koeltl.
U.S. Attorney Geoffrey S. Berman said: “As alleged, eight years ago, David Espinal and Michael Castillo reduced the value of a man’s life to a dollar figure. Their arrests today show that the passage of time does not insulate alleged murderers from investigation, apprehension, and prosecution. We hope that brings some measure of relief to the family of Hector Arias.”
FBI Assistant Director William F. Sweeney Jr. said: “Mr. Espinal was so deadly serious about selling marijuana, he allegedly hatched a plan to kill a rival. He and the man he’s accused of hiring to carry out the murder have been on the run since 2011. They most likely believed they were in the clear, thinking no one was looking for them after all these years. The FBI Westchester County Safe Streets Task Force and our law enforcement partners don’t let time stand in the way of catching alleged murderers and bringing them to justice.”
Police Commissioner James P. O’Neill said: “Today’s charges are evidence that NYPD investigators do not forget victims, and they do not ever forget the justice that is owed to those victims’ families. All New Yorkers deserve to be safe, and to feel safe. The NYPD and our colleagues at the U.S. Attorney’s Office for the Southern District will stop at nothing until every street, in every neighborhood of New York City, is as safe as our safest streets are today.”
As alleged in the Indictments unsealed today in Manhattan federal court[1]:
In or around March 2011, ESPINAL hired CASTILLO to murder Hector Arias. On March 10, 2011, CASTILLO carried out the plan and murdered Arias by shooting him in the vicinity of 712 East Gun Hill Road in the Bronx, New York. ESPINAL paid CASTILLO for murdering Arias. The murder plot arose out of a conspiracy to distribute marijuana.
* * *
A chart containing the names of the defendants charged in the Indictments, and the charges and maximum and minimum penalties they face, is attached. The statutory maximum and minimum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the judge.
Mr. Berman praised the outstanding investigative work of the FBI in this case. Mr. Berman also thanked the NYPD and the United States Probation Office for their assistance in the investigation.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Jamie Bagliebter, Maurene Comey, Scott Hartman, and Jacqueline Kelly are in charge of the prosecutions.
The charges contained in the Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
United States v. David Espinal, 19 Cr. 428
United States v. Michael Castillo, S1 19 Cr. 428
CHARGE(S)
DEFENDANT(S)
MAXIMUM PENALTIES
Murder for Hire
DAVID ESPINAL (age 44)
MICHAEL CASTILLO (age 36)
Life in prison or death
Mandatory minimum: Life in prison
Murder through Use of a Firearm
DAVID ESPINAL
MICHAEL CASTILLO
Life in prison or death
Mandatory minimum:
5 years in prison
Travel Act Murder
DAVID ESPINAL
MICHAEL CASTILLO
Life in prison
[1] As the introductory phrase signifies, the entirety of the text of the Indictments, as well as the descriptions of the Indictments set forth below constitute only allegations, and every fact described should be treated as an allegation.
Two Businessmen Convicted of International Bribery OffensesRead the Press Release
A federal jury in Boston found the chairman and CEO of an investment firm and a member of the investment firm’s board of directors guilty today for their participation in a scheme to bribe officials of the Republic of Haiti in exchange for business advantages for the investment firm.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Andrew Lelling of the District of Massachusetts and Special Agent in Charge Joseph R. Bonavolonta of the FBI’s Boston Field Office made the announcement.
Roger Richard Boncy, 74, a dual U.S. and Haitian citizen who resides in Madrid, Spain, and Joseph Baptiste, DDS, 66, of Fulton, Maryland, were found guilty after a two-week jury trial before U.S. District Judge Allison D. Burroughs of the District of Massachusetts of one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and the Travel Act. Baptiste was also convicted of one count of violating the Travel Act and one count of conspiracy to commit money laundering. Boncy and Baptiste are scheduled to be sentenced by Judge Burroughs on Sept. 12, 2019.
“Richard Boncy and Joe Baptiste conspired to pay millions of dollars in bribes to Haitian officials to do business there,” said Assistant Attorney General Benczkowski. “Today’s guilty verdict sends a strong message that those who use corrupt means to obtain unfair and illegal business advantages will be prosecuted to the fullest extent possible by the Department of Justice.”
“Bribery of public officials corrodes public trust and victimizes the public these officials are supposed to serve,” said U.S. Attorney Andrew E. Lelling. “We will continue to target Americans who try to bribe foreign public officials for business advantage.”
“Mr. Baptiste and Mr. Boncy had no problem soliciting bribes to funnel to senior government officials in Haiti through blatantly illegal means,” said Special Agent in Charge Bonavolonta. “Every dirty dollar they were trying to secure undermines those who are trying to conduct business lawfully. Cases like this only fuel the FBI’s commitment to tackling corruption, and today’s guilty verdict ensures that both of them will be held accountable for their actions.”
According to evidence presented at trial, Boncy and Baptiste solicited bribes from undercover FBI agents posing as potential investors in connection with a proposed project to develop a port in the Mȏle St. Nicolas area of Haiti. The proposed project was expected to cost approximately $84 million and was to involve the construction of a cement factories in its first phase, with subsequent phases having a shipping-vessel recycling station, an international transshipment station with numerous slips for shipping vessels, a power plant, a petroleum depot and tourist facilities. During a recorded meeting at a Boston-area hotel, Boncy and Baptiste told the agents that, in order to secure Haitian government approval of the project, they would funnel the bribes to Haitian officials through a non-profit entity that Baptiste controlled, which was based in Maryland and purported to help impoverished residents of Haiti. In intercepted telephone calls played during trial, Boncy and Baptiste discussed bribing an aide to a high-level elected official in Haiti with a job on the port development project, in exchange for the aide’s help in obtaining the elected official’s authorization for the project. Boncy and Baptiste also told the undercover agents that they would hide the bribes through money falsely earmarked for social programs and that they would bribes officials at all levels of the Haitian government.
The FBI’s Boston Field Office and International Corruption Unit investigated the case. Trial Attorney Elina Rubin-Smith of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kriss Basil of the District of Massachusetts are prosecuting the case.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Twenty-One Individuals Indicted on Charges of Conspiracy to Commit Interstate Transportation of Stolen Used Cooking Oil, Money Laundering, Harboring Aliens, and Immigration-Related Entrepreneurship FraudRead 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 a Superseding Indictment charging the following individuals with conspiracy to commit interstate transportation of stolen goods and money laundering:
- SALVADOR IBARRA ESCALANTE, age 43, of Mexico, also known as “Billy Escalante”
- RUTH NAVA-ABARCA, age 29, of Mexico
- FLORENTINO VALENCIA-TEPOZ, age 47 of Mexico
- GREGORIO VAZQUEZ-CASTILLO, age 43, of Mexico, also known as “Jaime Castillo”
- JUAN DE LA CRUZ-GONZALEZ, age 32, of Mexico
- SAMUEL CRUZ, age 42, of Durham, North Carolina
- MIGUEL GUTIERREZ, age 24, of Henderson, North Carolina
- JAIME LABRA-TOVAR, age 23, of Henderson, North Carolina
- OSCAR UGALDE-ESCALANTE, age 31, of Mexico
- HASAN OZVATAN, age 40, of Turkey
- EMILIO GOMEZ-GONZALEZ, age 36, of Mexico
- JUAN MALDONADO-HERNANDEZ, age 28, of Mexico
- GEORGE LUIS MORALES, age 21, of New York, New York
- TORIBIO ESCALANTE-CAMPOS, age 59, of Mexico
- ERIC EVO, age 24, of Richmond, Virginia
- RYAN MERCADO-RODRIGUEZ, age 24, of Henderson, North Carolina
- JUAN LOPEZ-POSADA, age 40, of El Salvador
- RENE ESPINOZA-TORRES, age 45, of Mexico
- KELVIN FE ARELLANO-VALENCIA, age 19, of Raleigh, North Carolina
- DEMETRIO VALENCIA-FLORES, age 42, of Mexico
- ALVARO MENDEZ-FLORES, age 38, of Mexico.
Moreover, GOMEZ-GONZALEZ was charged with failure to register with immigration officials. In addition, NAVA-ABARCA, VALENCIA-TEPOZ, ESCALANTE-CAMPOS, IBARRA-ESCALANTE, and VAZQUEZ-CASTILLO were charged with alien harboring. Furthermore, IBARRA-ESCALANTE, VALENCIA-TEPOZ, NAVA-ABARCA, and VAZQUEZ-CASTILLO were charged with immigration-related entrepreneurship fraud.
According to the Superseding Indictment, used cooking oil, historically viewed as a waste product, has become a valuable recycled commodity over the past decade. The majority of the recycled cooking oil sold is used for biofuel, fluctuating with market demand. It can also be used as a nutritional additive to animal feed and pet food, or in the production of many consumer and industrial products.
Legitimate businesses, known renderers, collect used cooking oil from restaurants in exchange of compensation and sell it to refineries so that it can be processed and recycled. The rendering industry estimates that there is an annual loss of approximately $45-75 million dollars from the theft of used cooking oil.
According to court records, the objective of the conspiracy was to profit from the illicit trade in large quantities of used cooking oil stolen in North Carolina, Virginia, and Tennessee, and transported to New Jersey for sale and distribution.
In particular, the Superseding Indictment alleges that members of the conspiracy repeatedly traveled to restaurants in North Carolina, Virginia, and Tennessee, in box trucks equipped with containers designed to store and transport liquids, pumps, hoses, and burglary tools, for the purpose of stealing large quantities of used cooking oil.
Additionally, members of the conspiracy transported the stolen used cooking oil in the box trucks to a warehouse in Durham, North Carolina, for consolidation and storage. Thereafter, a tanker trailer was used to transport the consolidated stolen used cooking oil to Virginia and elsewhere.
“Used cooking oil has become a sought-after commodity by biodiesel companies, and restaurants use the sale of this oil as another source of revenue,” said John Eisert, Acting Special Agent in Charge of Homeland Security Investigations in Charlotte, North Carolina. “This team of co-conspirators had an elaborate scheme to steal thousands of gallons of cooking oil for their own profit in violation of several U.S. laws.”
If convicted of conspiracy to commit interstate transportation of stolen goods and money laundering, IBARRA ESCALANTE, NAVA-ABARCA, VALENCIA-TEPOZ, VAZQUEZ-CASTILLO, DE LA CRUZ-GONZALEZ, CRUZ, GUTIERREZ, LABRA-TOVAR, UGALDE-ESCALANTE, OZVATAN, GOMEZ-GONZALEZ, MALDONADO-HERNANDEZ, MORALES, ESCALANTE-CAMPOS, EVO, MERCADO-RODRIGUEZ, LOPEZ-POSADA, ESPINOZA-TORRES, ARELLANO-VALENCIA, VALENCIA-FLORES, and MENDEZ-FLORES, face each a maximum of twenty five years in prison, a $500,000 fine, and a term of supervised release.
Furthermore, GOMEZ-GONZALEZ faces an additional maximum term of six months in prison for failing to register as an alien, and a $1,000 fine. In addition, NAVA-ABARCA, VALENCIA-TEPOZ, ESCALANTE-CAMPOS, IBARRA-ESCALANTE, and VAZQUEZ-CASTILLO each face an additional maximum of five years in prison for alien harboring, a $250,000 fine, and a term of supervised release. Moreover, IBARRA-ESCALANTE, VALENCIA-TEPOZ, NAVA-ABARCA, and VAZQUEZ-CASTILLO each face an additional maximum of five years in prison for immigration-related entrepreneurship fraud, a $250,000 fine, and a term of supervised release.
The following defendants are currently fugitives from justice:
- JUAN DE LA CRUZ-GONZALEZ
- RENE ESPINOZA-TORRES
- EMILIO GOMEZ-GONZALEZ
- JUAN MALDONADO-HERNANDEZ
- RUTH NAVA-ABARCA
- HASAN OZVATAN
If you have any information on the whereabouts of these individuals please contact the Homeland Security Investigations Tip-Line at 1-866-DHS-2-ICE or 1-866-347-2423. Any information that you provide will remain confidential.
The charges and allegations contained in the Superseding Indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law. This case is being investigated by Homeland Security Investigations.
Trafficker Pleads Guilty to DistributingThousands of Fentanyl PillsRead the Press Release
Assistant U. S. Attorney Sherri Walker Hobson (619) 961-0287
NEWS RELEASE SUMMARY – June 20, 2019
SAN DIEGO – Marcell Travon Robinson III of Riverside admitted in federal court today that he distributed thousands of fentanyl pills during a three-year period to multiple drug dealers in Southern California.
Robinson pleaded guilty to conspiracy to distribute fentanyl and possession of fentanyl with intent to distribute. He faces a 10-year minimum mandatory sentence to life in custody. He also agreed to forfeit $148,334 in cash and several firearms that were seized during the operation.
According to court records, Robinson was arrested by Naval Criminal Investigative Service agents in October 2018, following their investigation of fentanyl distributors. Homeland Security Investigation Special Agents worked with NCIS during the operation.
His sentencing is scheduled for August 23, 2019 at 8:30 a.m. before U.S. District Judge Gonzalo Curiel.
“This is a very serious warning to dealers and users: You are gambling with your lives,” said U.S. Attorney Robert Brewer. “To dealers, my office is very aggressively pursuing fentanyl distributors. To users, the drugs you are taking probably are not what you think. They are likely to be laced with deadly fentanyl, and may be the last thing you ever do. Don’t make this costly mistake.”
“This plea comes on the heels of a critical seizure of fentanyl-laced pills sometimes being sold to users who presumed they were legitimate pills of oxycodone. Having this individual off the streets and away from being able to distribute these fatal drugs was a joint effort. The NCIS Southwest Field Office appreciates the assistance of our partners at HSI and CBP Air Division during the execution of multiple operations during the course of the investigation.”
DEFENDANT Case Number 18cr5114
Marcell Travon Robinson III Age: 31 Riverside, California
SUMMARY OF CHARGES Case Number
Count 1 – Conspiracy to Distribute Fentanyl, in violation of 21 U.S.C. 841 and 846
Maximum Penalty: Life in custody (Ten year minimum mandatory); $10 million fine
Counts 2 and 3 - Possession of Fentanyl with Intent to Distribute, in violation of 21 U.S.C. 841
Maximum Penalty: life in custody (Ten year minimum mandatory); $10,000,000 fine; supervised release; $100 special assessment).
INVESTIGATING AGENCIES
Naval Criminal Investigative Service
Homeland Security Investigations
Top Dealer in Han Gil Case Pleads GuiltyRead the Press Release
The lead defendant in the Han Gil criminal case pleaded guilty today to gun and drug charges, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Eric Dewayne Freeman, aka “Stuff,” pleaded guilty to conspiracy to possess with the intent to distribute a Schedule I controlled substance, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a felon.
Freeman, 44, is the seventh defendant to plead guilty in the Han Gil case, which has so far resulted in charges against 18 individuals and 1 corporation associated with the notoriously dangerous hotel.
“In his plea, Mr. Freeman admitted that the Han Gil was a haven for drug dealers and violent criminals like himself,” said U.S. Attorney Erin Nealy Cox. “But we knew that based upon the efforts of our investigative team. The Han Gil posed a significant danger to our community, and we’re gratified we succeeded in shutting it down completely.”
“The DEA will pursue investigations, much like the Han Gil Hotel case, until these places are extinct,” said DEA Special Agent in Charge of the Dallas Division Clyde E. Shelley, Jr.
In his plea papers, Freeman admits that he and dealers on his payroll routinely used so-called “trap rooms” within the Han Gil to distribute heroin, methamphetamine and crack cocaine to numerous customers. (Other drug dealers unaffiliated with Freeman used multiple other guest rooms within the hotel in a similar manner.) The users often smoked or injected the drugs inside the trap rooms where drugs were peddled or on hotel premises, which were within 1000 feet of Dallas’ Herbert Marcus Elementary School.
Freeman admitted that two overdose victims died inside rooms at the Han Gil, and their bodies were dumped elsewhere. DEA agents discovered the corpse of a young woman, who died on December 27, 2018, decomposing in the woods almost a month after Freeman and two others dragged her body out of the hotel, he conceded.
Freeman further admitted the owner of the Han Gil, codefendant Su Y. Amos Mun, was aware of the drug dealing, overdoses, and body dumping. He said Mun charged dealers an inflated room rate, dubbed a “drug tax,” in exchange for allowing them to deal out of trap rooms.
Mun collected thousands of dollars from Freeman alone, and often tipped off dealers before law enforcement or city officials arrived for inspections, Freeman said in his plea papers, in which he also admitted that on at least one occasion, he discharged a handgun during an argument over some allegedly stolen drugs.
The hotel – which Mr. Freeman admitted was routinely mired in criminal activity, including drug dealing, unlawful possession of firearms, prostitution and other crimes – was raided on March 7 by a taskforce of more than 50 agents and officers concerned about rampant drug use and escalating criminal activity.
In addition to charging Freeman, Mun, and more than a dozen other conspirators using the hotel, the government moved to shut down the Han Gil, which the Court agreed “endangers the general welfare of the community.”
Freeman now faces a sentence of 10 years to life in federal prison.
Mun, meanwhile, has entered a plea of not guilty. The Indictment against Mun is a formal accusation of criminal conduct, not evidence; like all other defendants, he is innocent until proven guilty. Mun has moved to postpone his trial, which is currently set for July 29.
The Drug Enforcement Administration conducted the investigation with assistance from the Federal Bureau of Investigation, Coppell Police Department, Dallas Police Department, the Bureau of Alcohol, Tobacco, Firearms & Explosives, the U.S. Marshal’s Service, Grand Prairie Police Department, Arlington Police Department, Grapevine Police Department, Lancaster Police Department, the State Department, IRS, U.S. Postal Inspection Service, Plano Police Department, Farmers Branch Police Department, Homeland Security Investigations, Garland Police Department, Rowlett Police Department, Denton Police Department, Lewisville Police Department and McKinney Police Department. Assistant U.S. Attorneys Rick Calvert, Chief of NDTX’s Narcotics Section, and Phelesa Guy, Deputy Chief of the Narcotics Section, are prosecuting the criminal case. Assistant U.S. Attorney Lindsey Beran, NDTX Deputy Civil Chief, is handling the civil case.
Three Pensacola Women Sentenced for Methamphetamine Trafficking ConspiracyRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that United States District Court Chief Judge Kristi K. DuBose sentenced co-defendants Ernestine Arlecia Brazile, Taralicia Petrice Witherspoon, and Nicole Lasha Lewis on June 14, 2019 for their roles in conducting a drug conspiracy to traffic methamphetamine in violation of 21 USC § 846. Brazile and Witherspoon were each ordered to serve a term of imprisonment of 121 months followed by 5 years of supervised release. Lewis received a time served sentence followed by 3 years of supervised release. The defendants’ guilty pleas were accepted by the Court on February 19, 2019.
In October 2017, a Confidential Informant (CI) informed police officers from the Mobile Police Department (MPD) that he/she could buy methamphetamine from a female from Pensacola. MPD police officers contacted the Bureau of Alcohol Tobacco, Firearms, and Explosives (ATF) to assist in the investigation and an undercover MPD officer (UC) was introduced to Ernestine Arlecia Brazile by the CI and five controlled buys were made between October 2017 and January 2018. The defendants were very consistent in their actions during each of the five sales of methamphetamine to the UC. During each sale, Brazile would drive to Mobile in a vehicle that was registered to her co-defendant, Nicole Lasha Lewis. While Brazile drove the vehicle, Lewis would ride in the front passenger and Taralicia Petrice Witherspoon would ride in the back seat during the trips to Mobile.
The three defendants would meet the UC at the same gas station in Mobile County. During each drug buy, Brazile would get into the UC’s vehicle front passenger seat and Witherspoon would get in the back seat of the UC’s vehicle. At that point, the UC would provide the money to Witherspoon and Witherspoon would provide the methamphetamine to the UC. Each buy was set up via phone calls and/or text messages from the CI to Brazile to order the methamphetamine. Although Lewis stayed in the passenger seat of her vehicle as the drug deals were being brokered, she would later confess that she knew drug transactions were taking place and she allowed her vehicle to be used for all of the drug deals. The total amount of methamphetamine that the three defendants conspired among themselves and others to distribute and sell was approximately 420 grams of pure (Ice) methamphetamine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the Mobile Police Department. The case was prosecuted by Deputy Criminal Chief, Assistant United States Attorney George F. May and Assistant United States Attorney Lawrence J. Bullard for the United States Attorney’s Office for the Southern District of Alabama.Three Men Charged with Gunpoint Robbery of Philadelphia Corner StoreRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced today that Donnie Smith, 40, Abid Stevens, 39, and Maurice Quinn, 41, all of Philadelphia, Pennsylvania were charged by indictment with committing a Hobbs Act Robbery and carrying and using a firearm during the commission of a federal crime. Smith was also separately charged with being a felon in possession of a firearm.
According to the indictment, on March 22, 2019, Smith, Stevens, and Quinn entered the RD Grocery, a corner store in the East Mount Airy section of Philadelphia, stole cash and a firearm from the store employee. During the robbery, two of the defendants were armed with black semi-automatic handguns.
“As alleged in the indictment, the complete disregard that these three defendants had for the safety of others is appalling,” said U.S. Attorney McSwain. “The employee of this store was simply doing their job. No one should need to worry about having a semi-automatic weapon, or any weapon, pointed at them when they go to work. This indictment is an example of how my Office is working to get dangerous criminals off the streets of Philadelphia.”
If convicted of each count in the indictment, each defendant faces a maximum possible sentence of life imprisonment, a $500,000 fine, five years of supervised release, and a $200 special assessment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Robert Eckert.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Three Foreign Nationals Sentenced for Drug Smuggling on the High SeasRead the Press Release
HOUSTON – The final defendant in a maritime smuggling venture involving nearly 1300 kilograms of cocaine has been ordered to federal prison, announced U.S. Attorney Ryan K. Patrick.
Jose Luis Landazuri Valdes, 25-year-old Colombian national pleaded guilty in November 2018. Co-defendants Herman Julio Cuenu Valencia, a 34-year-old Columbian national and Ecuadoran national Ricardo Alberto Parraga Mendoza, 32, entered their pleas in December and November 2018, respectively.
Today, U.S. District Judge Ewing Werlein Jr. handed Valdes a 63-month sentence. At the hearing, the court noted Landazuri Valdes and Cuenu Valencia were crewmen on the boat under the leadership of the boat captain, Parraga Mendoza. In handing down the sentence, Judge Werlein mentioned the unique character of this case involving international maritime interdiction of large quantities of cocaine, often destined for distribution in the United States.
Cuenu Valencia and Parraga Mendoza were previously sentenced to 70 and 120 months, respectively.
Not U.S. citizens, all are expected to face deportation proceedings following their sentences.
On July 3, 2018, while on routine patrol off the Pacific Coast of Colombia and Ecuador, the U.S. Coast Guard (USCG) Cutter Mohawk detected a 47-foot low profile go-fast boat 300 nautical miles northeast of the Galapagos Islands. USCG launched its small boat which approached and stopped the vessel. Officers boarded the boat and discovered three crewmen on board.
The vessel had no flag, no registration documents, no homeport name and no indicia of identification on the hull of the vessel. Parraga Mendoza identified himself as the captain of the boat.
Officers discovered 38 bales of cocaine weighing approximately 1,280 kilograms in the hold of the boat and five sophisticated satellite communication and global positioning devices.
The three crewmen were taken into custody and transported to Florida.
They were charged with conspiracy to possess with intent to distribute more than five kilograms of cocaine on a vessel in the high seas in violation of the Maritime Drug Law Enforcement Act and the Drug Trafficking Vessel Interdiction Act of 2008. This was the first such prosecution in the Southern District of Texas following a change in the law allowing any jurisdiction in the United States to prosecute such smugglers. The law gives the United States jurisdiction over vessels without nationality found on the high seas with contraband as Congress found that “trafficking in controlled substances aboard vessels is a serious international problem and is universally condemned… Such trafficking presents a specific threat to the security and societal well-being of the United States.”
All have remained in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration and USCG conducted the investigation. Assistant U.S. Attorney Edward Gallagher is prosecuting the case.
Three Car Dealership Employees Arrested in Fraud SchemeRead the Press Release
McALLEN, Texas - A federal grand jury has returned an indictment against three former car dealership employees for participating in a long-running scheme to defraud companies, including financial institutions, in connection with car loans in the Rio Grande Valley area, announced U.S. Attorney Ryan K. Patrick.
Law enforcement arrested Ronnie Joe Gomez, 44, of Pharr, David Salinas, 44, of McAllen, and George Villanueva 50, of San Antonio, today. They are expected to make their initial appearances before U.S. Magistrate Judge Peter Ormsby this afternoon at 1:00 p.m.
The indictment, returned June 18, 2019, was unsealed today upon their arrests.
The three are each charged with wire fraud. According to the indictment, the defendants devised a scheme to defraud financial institutions by submitting falsified proof of their customers’ income to purchase motor vehicles.
If convicted, each faces up to 20 years in federal prison and a possible $250,000 fine.
The FBI conducted the investigation. Assistant U.S. Attorneys Frances E. Blake and David A. Lindenmuth are prosecuting the case.
A indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Springfield Man Pleads Guilty to Heroin ConspiracyRead the Press Release
BOSTON – A Springfield man pleaded guilty yesterday in federal court in Springfield in connection with his role in a large-scale drug conspiracy that trafficked dozens of kilos of heroin and fentanyl into Springfield from Bronx, N.Y., and the Dominican Republic.
Marcos Pena, 31, pleaded guilty to one count of conspiring to distribute and possession with intent to distribute heroin and two counts of distribution of and possession with intent to distribute more than 100 grams of heroin. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Sept. 24, 2019.
Pena admitted to his part in the conspiracy, which included, amongst other roles, transporting tens of thousands of dollars at a time to sources of heroin in the Bronx and transporting multiple kilograms of heroin back to Springfield, where the heroin would then be packaged at Springfield-based heroin mills.
Pena also admitted to distributing heroin to a government witness on two separate occasions in February 2016. On Feb. 10, 2016, Pena and co-defendant Alberto Marte sold approximately 125 grams of heroin to the witness. Pena again sold 125 grams of heroin to the same witness on Feb. 24, 2016.
Marte has pleaded not guilty and is awaiting trial.
The charge of conspiracy to distribute heroin provides for a sentence of no greater than 20 years in prison, a minimum of three years of supervised release, and a fine of up to $5 million. Each charge of distribution of more than 100 grams of heroin provides for a mandatory minimum sentence of five years in prison, a minimum of four years of supervised release, and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration’s New England Division; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Hampden County District Attorney Anthony D. Gulluni; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Acting Springfield Police Commissioner Cheryl Clapprood; Chicopee Police Chief William Jebb; Holyoke Police Chief Manny Febo; and West Springfield Police Chief Ronald Campurciani made the announcement today. Assistant U.S. Attorney Neil Desroches of Lelling’s Springfield Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Sarasota Armed Career Criminal Sentenced to 15 Years for Possessing Firearms and AmmunitionRead the Press Release
Tampa, Florida – U.S. District Judge Virginia M. Hernandez Covington has sentenced Tyrone Yancey (49, Sarasota) to 15 years in federal prison for possessing a firearm and ammunition as a convicted felon. The court also ordered Yancey to forfeit the firearms and ammunition. Yancey had pleaded guilty on March 27, 2019.
According to court documents, on August 21, 2018, the Sarasota Police Department, assisted by the Bureau of Alcohol, Firearms and Explosives, executed a search warrant at Yancey’s home. Inside, officers found two pistols, 50 rounds of ammunition, and various controlled substances, including cocaine base. Yancey admitted that the firearms, ammunition, and controlled substances belonged to him. Yancey, who had previously been convicted of multiple felonies, was prohibited from possessing a firearm or ammunition.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Sarasota Police Department. It was prosecuted by Assistant United States Attorney Michael Sinacore.
This case was brought as part of Project Safe Neighborhoods (“PSN”). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Roanoke Rapids Man Sentenced to More than 16 Years for Convenience Store RobberyRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, United States District Judge Louise W. Flanagan sentenced KEVIN EARL ELROD, 28, of Roanoke Rapids, North Carolina to 197 months imprisonment, followed by 5 years of supervised release.
ELROD was named in an Indictment filed on July 18, 2018 charging him with Robbery of a Business Engaged in Interstate Commerce and Brandishing and Discharging a Firearm in Furtherance of that Crime of Violence. On March 13, 2019, ELROD pled guilty to those charges.
On February 8, 2018, ELROD and a male juvenile entered the New Dixie Mini Mart in Roanoke Rapids. ELROD had a revolver in his hand. Both men had their faces covered. ELROD immediately discharged the weapon into the ceiling of the store and demanded money from the clerk. There were two customers in the store at the time of the robbery and ELROD forced them to lay on the ground. ELROD forced the clerk to the cash register and he and the juvenile stole approximately $250. The juvenile was apprehended the following day and implicated ELROD in the robbery. A search warrant was executed on ELROD’s home where law enforcement found clothing that was used during the course of the robbery. ELROD was apprehended a week after the robbery.
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. https://www.justice.gov/usao-ednc/tbnc
The investigation of this case was conducted by the Roanoke Rapids Police Department as well as the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case was prosecuted by Assistant United States Attorney Charity Wilson.
Richard L. Durbin, Jr. Recognized by Deputy Attorney General with Lifetime Achievement AwardRead the Press Release
WASHINGTON – Richard L. Durbin, Jr., Senior Litigation Counsel of the U.S. Attorney’s Office in the Western District of Texas, was recognized by Deputy Attorney General Jeffrey Rosen and Executive Office for U.S. Attorneys (EOUSA) Director James Crowell, IV at the 35th Director’s Awards Ceremony today in Washington D.C.
The Western District of Texas was one of 31 districts represented at the ceremony, which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
Deputy Attorney General Rosen told the awardees, “Today’s honorees have earned the esteem of their colleagues. But most importantly, you have earned the gratitude of your fellow citizens — whose communities you have made safer, whose lives you have improved, and whose trust you have rewarded.”
EOUSA Director Crowell said, “The Department of Justice is in truth a deployed force. Your work isn’t easy, but it is vital to the functioning and enduring nature of our democracy. As federal prosecutors, we are held to a higher standard, a standard that requires us to ensure that we uphold the rule of law and the fundamental rules of fairness in every trial, every settlement, every plea, and every legal argument in which we are involved.”
Mr. Durbin is recognized for his lifetime of incredible service to the United States Attorney’s Office for the Western District of Texas. Since Mr. Durbin first joined as an Assistant United States Attorney 35 years ago, he has served as the Chief of the Appellate Section, the Chief of the Criminal Division, First Assistant United States Attorney, and United States Attorney. In his three decades as a supervisor, Mr. Durbin has overseen tremendous expansion of the office and has provided invaluable guidance and mentorship to generations of prosecutors. Mr. Durbin is considered a critical resource for the Department in areas such as immigration enforcement, the OCDETF program, discovery obligations, and personnel management. Indeed, Mr. Durbin is renowned throughout both the entire Department and Texas for his keen intelligence, broad experience, managerial expertise, wisdom, and kindness.
“Richard has dedicated his career to making all Texans safer. This award recognizes the magnitude of his contributions to Texas and to the United States,” stated United States Attorney John F. Bash.
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Retired U.S. Army Colonel and Businessman Convicted for Conspiring to Bribe Senior Officials of the Republic of HaitiRead the Press Release
BOSTON – A retired U.S. Army colonel and the chief executive officer of an investment company were convicted today by a federal jury in Boston of conspiring to bribe senior officials of the Republic of Haiti in connection with a planned multi-billion dollar infrastructure project in that country.
Joseph Baptiste, 64, of Fulton, Md., and Roger Richard Boncy, 74, a dual U.S. and Haitian citizen who resides in Madrid, Spain, were convicted of conspiracy to violate the Travel Act and the Foreign Corrupt Practices Act. Baptiste was also convicted of one count of violating the Travel Act and one count of money laundering conspiracy. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Sep. 12, 2019.
“Bribery of public officials corrodes public trust and victimizes the public these officials are supposed to serve,” said U.S. Attorney Andrew E. Lelling. “We will continue to target Americans who try to bribe foreign public officials for business advantage.”
“Richard Boncy and Joe Baptiste conspired to pay millions of dollars in bribes to Haitian officials to do business there,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Today’s guilty verdict sends a strong message that those who use corrupt means to obtain unfair and illegal business advantages will be prosecuted to the fullest extent possible by the Department of Justice.”
“Mr. Baptiste and Mr. Boncy had no problem soliciting bribes to funnel to senior government officials in Haiti through blatantly illegal means,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “Every dirty dollar they were trying to secure undermines those who are trying to conduct business lawfully. Cases like this only fuel the FBI’s commitment to tackling corruption, and today’s guilty verdict ensures that both of them will be held accountable for their actions.”
Baptiste and Boncy solicited bribes from undercover agents in Boston who posed as potential investors in infrastructure projects in Haiti in connection with a proposed project to develop a port in the Mole-Saint-Nicolas area of Haiti. The proposed project was expected to cost approximately $84 million and was to involve the construction of multiple cement factories, a shipping-vessel recycling station, an international transshipment station with numerous slips for shipping vessels, a power plant, a petroleum depot and tourist facilities. During a recorded meeting at a Boston-area hotel, Boncy and Baptiste told the agents that they would funnel the payments to Haitian officials through a non-profit entity that Baptiste controlled – which is based in Maryland and purported to help impoverished residents of Haiti – in order to secure government approval of the project.
In telephone calls intercepted pursuant to a court-authorized wiretap, Boncy and Baptiste discussed bribing an aide to a high-level elected official in Haiti with a job on the port development project in exchange for the aide’s help in obtaining the elected official’s authorization for the project. Boncy and Baptiste also told the undercover agents that they would hide the bribes through money falsely earmarked for social programs and that they would bribe officials at all levels of the Haitian government.
The charges of violating the Travel Act and the Foreign Corrupt Practices Act and conspiracy each provide for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss. The charge of money laundering conspiracy provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $500,000 or twice the gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Lelling, AAG Benczkowski and FBI Boston SAC Bonavolonta made the announcement. Assistant U.S. Attorney Kriss Basil of Lelling’s Securities and Financial Fraud Unit and Trial Attorney Elina A. Rubin-Smith of the Criminal Division’s Fraud Section are prosecuting the case.
UPDATE: Criminal charges against the defendants, Joseph Baptiste and Roger Boncy, were dismissed in June 2022.
Public Health Alert - THC Infused Edibles: A Potential Hazard to KidsRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart wants the public to be aware that THC-infused edibles are being packaged in a manner that is appealing to kids. Parents and caregivers need to be aware of this fake candy and potential other THC infused products containing, in some cases, potent levels of THC. Parents and caregivers should be vigilant to insure the safety of consumable products that could be ingested, intentionally or innocently, by their children.
On June 15, 2019, members of an Appalachia High Intensity Drug Trafficking Area (AHIDTA) Initiative interdicted a parcel containing 7.5 lbs. of tetrahydrocannabinol (THC) infused candy. The parcel originated in California and was destined for Florida when intercepted. Both packages of candy had clear warnings to keep out of reach of children and animals, however, the packaging was almost identical to commercially available products. The AHIDTA Seizure Bulletin can be found here.
“Trick or Treat will never be the same again. This fake “candy” is all trick and no treat,” said United States Attorney Mike Stuart. “It is packaged like candy. It looks like popular candy. It tastes like candy. But, instead, it is a very powerful and potent way to get high. Any unsuspecting child or teenager could easily stumble along a package and innocently eat it not realizing the potency of the THC infused in the product. The average marijuana joint contains .3 grams of THC. This fake “candy” contains nearly 35% more THC than an entire average joint. It is outrageous that this powerful drug is marketed to children. Parenting is challenge enough without having to check a child’s candy for potent levels of THC. This just means parents will have to work double duty on Halloween. I want to personally thank AHIDTA for its initiative and its interdiction of this dangerous product.”
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Photo comparing packages of authentic candy and THC infused edibles.
Portuguese Shipping Company Pleads Guilty to Falsifying Oil Record Book and ObstructionRead the Press Release
Today, Portline Bulk International S.A. pleaded guilty in federal court in Charleston, South Carolina, to one count of violating the Act to Prevent Pollution from Ships and one count of Obstruction. The charges stem from the falsification of the Oil Record Book onboard the M/V Achilleus, a Maltese-flagged ocean-going bulk carrier ship managed by Defendant Portline.
From April 2017 to August 2018, senior members of the vessel’s engineering team oversaw and participated in the bypass of the ship’s Oil Water Separator utilizing a yellow plastic hose, referred to as a magic pipe. The ship’s Chief Engineer made a series of fake entries and key omissions in the Oil Record Book in order to conceal the illegal overboard discharges of oily bilge water. On Aug. 14, 2018, the false Oil Record Book was presented to the U.S. Coast Guard (USCG) during an inspection in the Port of Charleston.
According to court documents, Portline has agreed to pay a criminal fine of $1.5 million when the company is sentenced at a future date. The company would also be placed on organizational probation for four years, which includes an environmental compliance plan.
“The world’s oceans are not a dumping ground for criminals who seek to evade our nation’s environmental laws,” said Assistant Attorney General Jeffrey Bossert Clark for the Justice Department’s Environment and Natural Resources Division. “Today’s guilty plea demonstrates the Department’s commitment to protecting coastal communities through rigorous enforcement of the rule of law.
“The South Carolina coast is one of the most beautiful parts of our nation,” said U.S. Attorney Lydon for the District of South Carolina. “The U.S. Attorney’s Office takes environmental crimes seriously, and corporations and individuals who endanger our valuable marine resources and wildlife by violating federal law will be held accountable. We are grateful to the Coast Guard Investigative Service and the Environment and Natural Resources Division for their ongoing partnership in protecting our waterways.”
“Our team of dedicated marine safety and pollution response professionals worked closely with the Coast Guard Investigative Service to investigate this incident and refer it for enforcement action,” said Captain John Reed, Commander, U.S. Coast Guard Sector Charleston. “This case highlights the Coast Guard’s unwavering commitment to the stewardship of the ocean and its critical marine environment.”
On June 17, 2019, the ship’s former Chief Engineer Anatoli Zotsenko and Second Engineer Valerii Pastushenko, who had previously pleaded guilty to one count of violating the Act to Prevent Pollution from Ships, were sentenced to fines totaling $12,500 and three years’ probation. The probation term includes a special condition that bans Zotsenko and Pastushenko from entering ports and anchorages of the United States.
This case was investigated by the U.S. Coast Guard Sector Charleston and the Coast Guard Investigative Service. The USCG Marine Safety Lab was critical to the analysis of oil samples taken from the vessel. The case was prosecuted by Christopher L. Hale of the U.S. Department of Justice’s Environmental Crimes Section and AUSA Matt Austin from the U.S. Attorney’s Office for the District of South Carolina.
Pittsburgh Woman Pleads Guilty to Fraudulently Obtaining More than 60K Tramadol Pills, Health Care FraudRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to charges of obtaining controlled substances through fraud and health care fraud, United States Attorney Scott W. Brady announced today.
Heather Summerfield, 39, pleaded guilty to two counts before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that Summerfield, following back surgery in 2009, began to use Tramadol, a Schedule IV controlled substance, and became addicted. She obtained fraudulent prescriptions for Tramadol using a number of fraudulent means. She phoned in unauthorized prescriptions to pharmacies falsely posing as a receptionist from her doctor’s office. She also called in unauthorized prescriptions posing as receptionists for doctors that she found online. Summerfield used at least four doctors’ names to receive Tramadol prescriptions, all without their authorization. She also called in the prescriptions using at least 11 fictitious patient names and addresses. Evidence collected indicates that she fraudulently obtained more than 60,000 Tramadol pills.
To the extent that she got prescriptions in fictitious names, she paid for those prescriptions in cash. To the extent that she acquired them in her own name, her health care insurers paid some portion of some of the bills.
Judge Hornak scheduled sentencing for October 3, 2019. The law provides for a total sentence of fourteen years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Summerfield.
Pittsburgh Man Sentenced to 8½ Years in Prison for Distributing Child PornographyRead the Press Release
PITTSBURGH, PA A former resident of Pittsburgh, PA, has been sentenced in federal court to 8 1/2 years’ (102 months’) imprisonment, followed by 10 years’ supervised release on his conviction of distribution of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today. Russell was also sentenced to pay $8,600 in restitution, in varying amounts, to 13 child victims.
Chief United States District Judge Mark R. Hornak imposed the sentence on James Clay Russell, 61.
According to information presented to the court at the time Russell entered a guilty plea, Russell distributed, on February 20, 2017, an image depicting the sexual exploitation of a minor under the age of 12 years using the website, "Chatstep.com". Chatstep.com detected the distribution activity and reported it to the National Center for Missing and Exploited Children, triggering an investigation of the Chatstep user. Russell was identified as the perpetrator and a search warrant was executed at his apartment, resulting in the seizure of computers and DVDs containing thousands of images and videos depicting the sexual exploitation of minors.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
The Pennsylvania Attorney General’s Office and the Department of Homeland Security, Homeland Security Investigations, conducted the investigation that led to the successful prosecution of Russell.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Philadelphia-based Company Agrees to $300,000 Judgment for Sale of Improperly Sourced Computer Supplies to Federal AgenciesRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Support of Microcomputers Associates (“SOMA”) has agreed to a judgment against it in the amount of $300,000 for selling printers and other equipment to federal agencies that was manufactured in China and other non-compliant countries.
From 2009-2017, SOMA participated in the General Services Administration’s (GSA) Advantage program, which provides a web-based ordering system for federal agencies including the Department of Defense. Companies that join GSA Advantage certify that the materials they provide are permitted for sale to the United States pursuant to the Trade Agreements Act, 19 U.S.C. § 2501, et seq., and its implementing regulations. These rules provide for the United States and its agencies to purchase American-made materials or materials manufactured in specified allied countries. Instead, SOMA ignored the Trade Agreements Act rules and offered for sale to government agencies printers and other materials manufactured in China, Vietnam, and other non-compliant countries.
SOMA cooperated in the government’s investigation. The settlement is based in part on an evaluation of SOMA’s ability to pay.
“Americans have the right to know that their tax dollars are being spent in a way that Congress intended – here, to support American jobs and American policies,” said U.S. Attorney McSwain. “When United States agencies like the Department of Defense purchase printers or other computing equipment, they need assurance of the quality and security of their purchases. The Trade Agreements Act represents Congress’s determination of how best to accomplish those goals, and the United States Attorney’s Office is ready to investigate and hold accountable GSA contractors who do not follow these clear rules.”
“Congress enacted the Trade Agreements Act with the intention of protecting the government supply chain, along with the American economy,” said GSA OIG Special Agent in Charge Gerald Garren. “GSA OIG will continue to work with its partner agencies to aggressively investigate those suppliers on the GSA Schedule who endeavor to skirt this important law through the sale of non-compliant products.”
“Companies that sell goods to the U.S. Department of Defense (DoD) and other U.S. Government agencies, while ignoring the rules and requirements of the Trade Agreements Act, undermine the federal contracting process,” stated Leigh-Alistair Barzey, Special Agent in Charge of the Defense Criminal Investigative Service’s (DCIS) Northeast Field Office. “The judgment in this case is the direct result of a joint investigative effort and demonstrates DCIS’ ongoing commitment to work with the U.S. Attorney’s Office and the GSA-OIG to ensure the integrity of the DoD procurement system.”
This settlement resolves allegations in a lawsuit filed in the Eastern District of Pennsylvania by a former SOMA executive, under the qui tam (or whistleblower) provisions of the False Claims Act. The qui tam provisions permit private parties to sue for false claims on behalf of the government and to receive a share of any recovery. The relator here will receive a portion of the funds recovered by the United States.
This investigation was conducted with the General Services Administration Office of Inspector General and the Defense Criminal Investigative Service. For the United States Attorney’s Office, Assistant United States Attorney Paul W. Kaufman handled the investigation and settlement.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Philadelphia Crack Distributor Sentenced to Nearly 10 Years in PrisonRead the Press Release
JOHNSTOWN, Pa. – A resident of Philadelphia, Pa., has been sentenced in federal court to 115 months in prison and three years’ supervised release on his conviction of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.
United States District Judge Kim R. Gibson imposed the sentence on Victor J. Henderson, 27, of Philadelphia, Pa.
According to information presented to the court, on April 2, 2018, Henderson possessed with the intent to distribute a mixture and substance containing a detectable amount of cocaine base, also known as "crack."
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Brady commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force for the investigation that led to the successful prosecution of Henderson.
Pennsylvania woman admits to role in heroin distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jalisa L. Hawkins, of Duquesne, Pennsylvania, has admitted to her role in a heroin distribution operation, United States Attorney Bill Powell announced.
Hawkins, also known as “Ashley,” age 29, pled guilty to one count of “Conspiracy to Distribute Heroin” and one count of “Distribution of Heroin in Proximity of a Protected Location.” Hawkins admitted to distributing heroin, sometimes near Emmanuel Christian School in Clarksburg, from January 2016 to May 2016 in Harrison County and elsewhere.
Hawkins is facing up to 20 years incarceration and a fine of up to $1,000,000 for the conspiracy count, and faces not less than one year and up to 40 years incarceration and a fine of up to $2,000,000 for the distribution count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Traci M. Cook is prosecuting the case on behalf of the government. The Greater Harrison Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Pearl River County Man Pleads Guilty to Illegally Possessing a Firearm as a Convicted FelonRead the Press Release
Gulfport, Miss. – Kirk Johnson, 43, of Pearl River County, pled guilty today before U.S. District Judge Sul Ozerden to unlawful possession of a firearm by a convicted felon, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of the Alcohol, Tobacco, Firearms, and Explosives.
Johnson was found guilty of the felony offense and is scheduled to be sentenced by Judge Ozerden on September 19, 2019, at 9:00 a.m. He faces a potential maximum penalty of 10 years in prison and a $250,000 fine.
On October 18, 2018, Johnson, who had previously been convicted of possession of precursor chemicals in Pearl River Circuit Court, sold a loaded .22 caliber revolver to a confidential informant.
The case was investigated by agents from the Alcohol, Tobacco, Firearms, and Explosives Task Force. The case is being prosecuted by Assistant United States Attorney Christopher Carter.
Paterson, New Jersey, Man Charged with Conspiring to Distribute Heroin and CocaineRead the Press Release
NEWARK, N.J. – A Paterson, New Jersey, man was indicted today for conspiring to distribute heroin, U.S. Attorney Craig Carpenito announced today.
Rolfi Ferreira-Cruz, 25, was charged by indictment with one count of conspiring to distribute and possess with the intent to distribute 100 grams or more of heroin and a quantity of cocaine (Count One), possessing with the intent to distribute 100 grams or more of heroin and a quantity of cocaine (Count Two), and possessing a firearm in furtherance of a drug trafficking crime (Count Three). Ferreira-Cruz is currently in custody in the Dominican Republic for attempted murder in a June 9, 2019, shooting.
Counts One and Two carry a mandatory minimum penalty of five years in prison, a maximum of 40 years in prison, and a $5 million fine. Count Three carries a mandatory minimum penalty of five years in prison to be served consecutively to any other term of imprisonment.
U.S. Attorney Carpenito credited special agents of DEA, under the direction of Special Agent in Charge Susan A. Gibson in Newark, as well officers of the Passaic County Sheriff’s Office, under the direction of Sheriff Richard H. Berdnik, with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorney Leah Gould of the OCDETF/Narcotics Unit in Newark.
The charge and allegations of the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Owner of Exporting Company Pled Guilty to Smuggling Goods from the United StatesRead the Press Release
On June 12, 2019, Juan Carlos Rodriguez Espinoza, 53, of Miramar, Florida, pled guilty to one count of smuggling goods from the United States, in violation of Title 18, United States, Section 554.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Anthony Salisbury, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s, Homeland Security Investigations (ICE-HSI), and Diane J. Sabatino, Director, Field Operations, U.S. Customs and Border Protection (CBP), Miami Field Office, made the announcement.
At sentencing, Rodriguez faces a maximum statutory sentence of up to 10 years in prison, three years of supervised release, and a $250,000 fine. Sentencing has been scheduled for August 13, 2019 at 1:30 pm before
U.S. District Court Judge Jose E. Martinez, in Miami, Florida (Case No. 19CR20239).
According to documents filed with the court and statements made during the pea, Rodriguez was the owner and operator of Rapid Export Services, LLC, (“Rapid Export”) a freight forwarding company in Miami, Florida. From in or around March 2016 through in or around May 2016, Rodriguez received, in Miami, thirteen containers of alcohol and cigarettes that were originally shipped from Panama. Rodriguez arranged for the thirteen containers to be held “in bond” at a bonded warehouse operated by Double Ace Cargo, Inc. (“Double Ace”), a freight forwarding company. Subsequently, Double Ace, at Rodriguez’s request, exported the thirteen containers to the Dominican Republic.
Before Double Ace exported the thirteen containers to the Dominican Republic, Rodriguez, based on instructions he received from his client in the Dominican Republic, instructed employees at Double Ace to change the commodity description on the outgoing bills of lading. Rodriguez instructed the employees at Double Ace to change the commodity description to the following commodities: paper, raw material, synthetic textiles or hospital supplies (as opposed to cigarettes and alcohol). Rodriguez acted with the intent to conceal the nature of the goods from the customs authorities in the Dominican Republic. Rodriguez knew that providing false information on the bills of lading was contrary to the laws and regulations of the United States.
U.S. Attorney Fajardo Orshan commended the investigative efforts of HSI Miami, HSI Dominican Republic and CBP Miami. This case is being prosecuted by Assistant U.S. Attorney Yisel Valdes.
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.
Owner of Vehicle Maintenance and Repair Companies Sentenced to 5 Years in Prison for Bribery and Tax FraudRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that IBRAHIM ISSA, a/k/a “Tony Issa,” was sentenced today in Manhattan federal court to 60 months in prison. ISSA was previously found guilty in December 2018 of bribery of public officials and tax fraud after a federal jury trial before Chief United States District Judge Colleen McMahon, who imposed today’s sentence.
U.S. Attorney Geoffrey S. Berman said: “Ibrahim Issa bribed Postal Service managers with cash, lavish meals, gifts, and trips in exchange for lucrative vehicle maintenance and repair jobs on Postal Service vehicles. Then, to compound the felony, Issa evaded both corporate and personal income taxes.”
According to the allegations contained in the Complaint, Indictment, and Superseding Indictment, evidence presented during the trial, and statements made in Manhattan federal court:
From at least in or about 2012 up to and including in or about August 2016, ISSA, who owned and operated numerous auto repair and maintenance companies in the New York area and elsewhere, paid bribes to United States Postal Service Vehicle Maintenance Facility (“VMF”) managers in order to obtain work repairing and maintaining vehicles belonging to the Postal Service. ISSA provided cash, gifts, lavish meals, and trips to these VMF managers in exchange for receiving work for his companies. As a result of some of these bribes, ISSA received millions of dollars in fees from the Postal Service.
In addition, from at least in or about 2012 up to and including in or about August 2016, ISSA conspired with others to evade paying federal income taxes for his auto repair and maintenance companies by misreporting income and expenses to the IRS. ISSA also signed and subscribed to false personal income tax returns. As a result of ISSA’s tax fraud through his companies and personally, ISSA failed to pay hundreds of thousands of dollars in taxes due and owing.
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In addition to the prison sentence, ISSA, 57, of New York, New York, was sentenced to three years of supervised release, and was ordered to pay restitution to the IRS in the amount of $557,176.
Mr. Berman praised the outstanding work of the United States Postal Service Office of the Inspector General and the Internal Revenue Service.
This matter is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Kyle Wirshba, Elizabeth Hanft, and Noah Solowiejczyk are in charge of the prosecution.
Orlando Man Sentenced to More Than 26 Years in Federal Prison for Walmart RobberiesRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Catrell Ivory (28, Orlando) to 26 years and 7 months in federal prison for committing armed robberies at two Orlando Walmart stores, attempting to commit an armed robbery at a third Walmart store, and brandishing and possessing firearms during crimes of violence.
Ivory was found guilty on January 30, 2019, following a jury trial.
According to court documents and evidence presented at trial, shortly after midnight on June 2, 2017, Ivory and his accomplices robbed the Walmart Neighborhood Market located at 5559 Clarcona Ocoee Road in Orlando. One of the robbers fired a shot in the direction of a store employee. On July 31, 2017, at approximately 3 a.m., Ivory and his accomplices robbed the Walmart Neighborhood Market located at 2715 South Orange Avenue in Orlando. During the robberies, Ivory and his accomplices forced store employees into the cash room at gunpoint and stole cash from the safe while holding customers and employees at gunpoint at the front of the store. On August 10, 2017, at approximately 6 a.m., Ivory and his accomplices attempted to rob a third Walmart Neighborhood Market located at 8801 Conroy Windermere Road in Orlando, but they were unable to get into the cash office.
During each incident, Ivory and his accomplices carried and brandished firearms and wore masks and gloves to conceal their identities. In total, Ivory and his accomplices stole more than $98,000.
This case was investigated by the Federal Bureau of Investigation, the Orange County Sheriff’s Office, the Osceola County Sheriff’s Office, and the Orlando Police Department. It was prosecuted by Assistant United States Attorney Chauncey A. Bratt.
North Bay Village Resident Pleads Guilty and Sentenced to 10 Years for Armed Robbery of Dylan’s Candy BarRead the Press Release
North Bay Village resident and former employee of Dylan’s Candy Bar, located on Lincoln Road, Miami Beach, pled guilty to, and was sentenced to, 10 years for armed robbery of Dylan’s Candy Bar.
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 Daniel Oates, Chief, City of Miami Beach Police Department, made the announcement.
According to the court record, on February 11, 2019, Jemm Urcil Prospere, 29, robbed the Lincoln Road, Miami Beach location of Dylan’s Candy Bar, owned by Dylan Lauren, daughter of American fashion designer Ralph Lauren. Prospere entered the store wearing a black mask, a black hooded sweatshirt, and blue latex gloves. He then commanded the store’s manager to take him to the vault room. Prospere pointed a firearm at the store manager and demanded the manager to empty the safe and place all the money into a book bag. After emptying the safe, the store manager attempted to disarm Prospere. A struggle ensued and Prospere discharged one round from his firearm. The store manager ultimately overpowered Prospere and pushed Prospere down the stairs. Prospere escaped downstairs and out of Dylan’s Candy Bar with the book bag full of stolen cash.
After accepting his guilty plea, U.S. District Court Judge Federico A. Moreno (Case No. 19-20276-CR-MORENO) sentenced Prospere to 10 years in prison.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI and Miami Beach Police Department in this matter. The case was prosecuted by Assistant U.S. Attorney Michael B. Homer.
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 on http://pacer.flsd.uscourts.gov.
New Haven Drug Dealer Sentenced to More Than 5 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that ZARKEE SANDERS, 42, of Hamden, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 65 months of imprisonment, followed by three years of supervised release, for his role in a New Haven drug trafficking ring, and for violating the conditions of his supervised release from a prior federal conviction.
According to court documents and statements made in court, in June 2017, the FBI’s New Haven Safe Streets/Gang Task Force initiated an investigation into a New Haven drug trafficking organization. The investigation, which included physical surveillance, 13 controlled purchases of narcotics, and court-authorized wiretaps on multiple phones, revealed that members of the organization were distributing crack cocaine and oxycodone in the New Haven area. Sanders supplied cocaine to another member of the drug organization knowing that a portion of the cocaine would be converted into crack.
Sanders and several other members of the organization were arrested on federal criminal complaints on February 6, 2018. On February 8, 2018, a grand jury in New Haven returned a 30-count indictment charging Sanders and 18 other individuals with various offenses.
Sanders’ criminal history includes seven drug trafficking convictions, including a federal cocaine trafficking conviction in 2013.
At the time of his arrest, Sanders was on federal supervised release. Judge Bryant sentenced Sanders to 41 months of imprisonment for trafficking cocaine, and a consecutive 24 months of imprisonment for violating the conditions of his supervised release.
Sanders has been detained since his arrest. On March 14, 2019, he pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, cocaine base (“crack”).
This matter is being investigated by the FBI’s New Haven Safe Streets/Gang Task Force, which includes members from the New Haven Police Department, Milford Police Department, West Haven Police Department and Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorneys Patrick F. Caruso and David C. Nelson.
New Bedford Police Officer Indicted on Child Pornography OffensesRead the Press Release
BOSTON – A New Bedford police officer was indicted by a federal grand jury in Boston today on charges of possessing and distributing child pornography.
Paul Hodson, 42, of Acushnet, was indicted on one count of distribution of child pornography and one count of possession of child pornography. On June 12, 2019, Hodson was arrested and charged by criminal complaint and has been in custody since. An arraignment date has not yet been scheduled.
Following an investigation into the use of peer-to-peer file sharing networks for the trade of child pornography, a federal search warrant was executed at Hodson’s Acushnet home. Hodson was interviewed on-scene and admitted to using peer-to-peer file sharing software to trade child pornography. In the course of a preliminary on-scene forensic preview of Hodson’s computer, hundreds of child pornography files were recovered, including at least one file that was distributed to undercover law enforcement in the course of the investigation that led to the search warrant.
The charge of distribution of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison, a minimum of five years and up to a lifetime of supervised release and a fine of up to $250,000. The charge of possession of child pornography provides for a sentence of no greater than 20 years in prison, a minimum of five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Valuable assistance was provided by the Massachusetts State Police and the Acushnet Police Department. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Nashville Man Sentenced to Federal Prison for Human Trafficking CrimesRead the Press Release
NASHVILLE, Tenn. – June 20, 2019 – Brittan Ezekiel Kettles, aka “Low Low,” 27, of Nashville, Tennessee, was sentenced yesterday to 15 years in federal prison for conspiracy to sex traffic a person under the age of 14 and sex trafficking a person under the age of 14, announced U.S. Attorney Don Cochran of the Middle District of Tennessee. Kettles was convicted by a federal jury in June 2018 after a three-day trial in U.S. District Court.
Evidence at trial established that on or about June 15, 2016, Kettles met a woman by the name of Stormy Whittemore after contacting her through Instagram, a photo and video-sharing social networking site. Within approximately 24 hours of meeting with Whittemore, Kettles disclosed information to her regarding his prostitution enterprise. Using promises of a money, cars, mansions, and other materialistic things, Kettles recruited Whittemore into working for him as a prostitute. Shortly thereafter, Whittemore began prostituting for Kettles in the Nashville area. At the time, Whittemore was 18 years old, and prior to meeting Kettles, she had never prostituted herself before.
To facilitate Whittemore’s prostitution activities, Kettles rented a room at a motel by the Nashville International Airport from June 16, 2016, through June 19, 2016. Kettles also utilized the website www.Backpage.com to advertise her services. The advertisements on Backpage.com sometimes displayed photographs of other female individuals and sometimes of Whittemore. When clients, commonly referred to as a “johns” responded to the advertisement, Kettles would arrange the sexual encounter with Whittemore. Following the encounter, Whittemore provided the money she made to Kettles, typically between $150 and $200 for each encounter.
Between June 16 and June 19, 2016, during the same time that Kettles was prostituting Whittemore in Nashville, he met a 13-year old friend of Whittemore’s. Shortly after meeting the 13-year-old, Kettles, through Whittemore, recruited and enticed her to engage in commercial sex acts. Over the course of the next couple of days, the 13-year-old prostituted herself on behalf of Ketttles and Whittemore. Following each sexual encounter, she provided the money she earned to Whittemore and Kettles, usually by handing the money directly to Whittemore, who would then give the money to Kettles.
During the course of the weekend, Kettles purchased clothing, food, and beverages for Whittemore and the 13-year-old female and also paid for them to receive nail services at a salon, using the money that they had earned to pay for these items and services. At the end of the weekend, Whittemore and Kettles dropped the 13-year-old off at her residence. She later contacted Whittemore and Kettles via text message, asking for $200 of the $800 that she had earned for them. They agreed to give her $60, but in fact only left $15 in the mailbox at her house.
Shortly after these events, the 13-year-old’s mother contacted a non-governmental organization and reported that her daughter had been a victim of human trafficking. This information was relayed to the Metropolitan Nashville Police Department, which then conducted an investigation into the allegations. The 13-year-old subsequently identified Kettles and Whittemore as the individuals who trafficked her between June 16 and June 19, 2016.
Whittemore pleaded guilty in August 2017 and will be sentenced on July 3, 2019.
This case was investigated by the FBI and the Metropolitan Nashville Police Department. Assistant U.S. Attorneys Katy Risinger and Siji Moore prosecuted the case.
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