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19 June 2019
Passaic County Man Sentenced to 78 Months in Prison for Role as Brothel LeaderRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man was sentenced today to 78 months in prison for his role as the leader of a statewide brothel ring that harbored illegal aliens and transported women across state lines for prostitution, U.S. Attorney Craig Carpenito announced.
Juan Fredy Hernandez-Zozaya, 41, of Passaic, New Jersey, was convicted on Jan. 15, 2019, following a one-week trial for conspiracy to commit interstate transport for purposes of prostitution, and conspiracy to harbor illegal aliens. U.S. District Judge Stanley R. Chesler presided over the trial and imposed today’s sentence. The 78-month prison term was ordered to run consecutive to a 56-year state sentence Hernandez-Zozaya had previously received for state murder charges, and included a three-year term of supervised release.
According to documents filed in this case, evidence at trial, and statements made in court:
From at least March 2011 through September 2014, Hernandez-Zozaya served as the leader of a large-scale prostitution ring that operated throughout New Jersey, including at brothel locations in New Brunswick, Trenton, Orange, Asbury Park, Lakewood, and Bridgeton. Hernandez-Zozaya and his girlfriend, Elizabeth Rojas-Rojas, employed dozens of women and other workers to run the brothels, the large majority of whom were in the country illegally.
The conspiracy also involved at least three murders committed at Hernandez-Zozaya’s behest by “enforcers” for the prostitution business that were hired and managed by Hernandez-Zozaya. One such enforcer, Wilmer Chavez Romero, was previously convicted by a jury of multiple counts of racketeering, assault, firearms offenses, and murder in aid of Hernandez-Zozaya’s enterprise. Chavez Romero was sentenced on March 27, 2019, by U.S. District Court Judge William H. Walls to life in prison. Hernandez-Zozaya was himself previously convicted in Cumberland County Superior Court of committing two murders related to the brothel enterprise. In imposing the sentence, Judge Chesler noted these related acts of violence, as well as Hernandez-Zozaya’s “horrendous” conduct in employing and exploiting those women who, as a result of their immigration status, had little choice but to work at the brothels.
U.S. Attorney Carpenito credited special agents of Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael in Newark with the investigation leading to today’s sentencing. He also thanked the Cumberland County Prosecutor’s Office, Trenton Police Department, Mercer County Prosecutor’s Office, and the N.J. State Police Ballistics Lab, for their roles in the investigation.
The government is represented by Assistant U.S. Attorneys Meredith Williams and Melissa Wangenheim of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Anthony Iacullo Esq., Nutley, New Jersey, and Kelley Sharkey Esq., Brooklyn, New York
Parker Man Sentenced to Life in Prison for First Degree MurderRead the Press Release
PHOENIX – On June 18, 2019, Mickey Roy Anderson, Sr., 30, of Parker, Ariz., and a member of the Colorado River Indian Tribes, was sentenced by U.S. District Judge Douglas L. Rayes to life in prison, 10 years in prison to run consecutive to his life sentence, and seven years in prison to run concurrent to his life sentence. Anderson was found guilty by a federal jury on March 5, 2019 of first degree murder, use of a firearm during a crime of violence, and burglary of a residential structure.
The evidence at trial showed that on Jan. 23, 2014, Anderson walked into the victim’s home, stood a few feet from the victim and shot her in the face. The victim died almost instantly. Anderson was angry with the victim for purchasing drugs from another drug dealer in the community. The victim was also a member of the Colorado River Indian Tribes, and the murder happened on the Colorado River Indian Reservation.
The investigation in this case was conducted by the Bureau of Indian Affairs and the Colorado River Indian Tribes Police Department. The prosecution was handled by Christina J. Reid-Moore and Sharon K. Sexton, Assistant U.S. Attorneys, District of Arizona, Phoenix.
Operation "Money Don't Sleep" Leads to Multiple Arrests in West MemphisRead the Press Release
WEST MEMPHIS—A major arrest operation took place this morning in West Memphis when 22 were arrested as part of a federal drug investigation. United States Attorney for the Eastern District of Arkansas Cody Hiland and Assistant Special Agent in Charge Justin King of the DEA Little Rock Field Office announced today’s arrests.
Operation “Money Don’t Sleep,” run by the Organized Crime Drug Enforcement Task Force, is an ongoing investigation focused on lowering violent crime that stems from the distribution of illegal drugs. The goal of the operation is to identify and dismantle multiple drug trafficking organizations that distribute cocaine and methamphetamine.
Today’s arrests conclude the second phase of the investigation that was initiated in 2015 by the DEA Little Rock District Office and the West Memphis Police Department. The first phase of “Money Don’t Sleep” previously resulted in the arrests of 50 defendants in July 2017. With those drug traffickers removed, new distributors emerged to fill the void left in the drug market, leading to this morning’s arrests.
Law enforcement began early this morning by searching for over 25 suspects, all of whom were indicted for federal drug trafficking crimes. Thirty-two defendants were indicted in the case, and five of those were already in custody when this morning’s roundup began. In addition to the 22 arrests, authorities seized one firearm this morning. Over a two-year period, investigators seized 1.2 kilograms of actual methamphetamine, 12 firearms, and over $8000 cash. In addition, a search warrant executed prior to today’s arrests resulted in law enforcement seizure of half a pound of methamphetamine, $7500 cash, and a firearm.
“This operation is a perfect example of the continued pressure we will apply to drug distributors,” stated Cody Hiland, United States Attorney for the Eastern District of Arkansas. “We arrested and prosecuted 50 targets in the first phase of this operation, and today we came back for more. Criminals should not mistake these arrests for a completed operation, because law enforcement will come back as many times as necessary to uphold law and order in West Memphis and the surrounding communities.”
“Drug trafficking is one of the primary drivers of violent crime across the United States, and the city of West Memphis is no exception,” stated DEA Assistant Special Agent in Charge Justin King. “This operation focused on those drug dealers who preyed upon the good people in West Memphis and the surrounding counties by selling drugs and committing acts of violence. Drug dealing and violent crime often walk hand in hand, spreading fear and destruction wherever they go, and we in law enforcement have an obligation to put a stop to those who destroy our communities.” King went on to say, “DEA is committed to its partnerships with the other dedicated federal, state and local law enforcement officers who work in and around this region of Arkansas in our ongoing efforts to make it a safer and better place for our families and children.”
The DEA Little Rock District Office and West Memphis Police Department were assisted by several participating agencies, including the Bureau of Alcohol, Tobacco, Firearms, and Explosives; United States Marshals Service; Federal Bureau of Investigation; United States Federal Probation; Arkansas State Police; Crittenden County Sheriff’s Office; Arkansas Department of Community Corrections; and the Counter Drug Program of the Arkansas National Guard.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at:
http://www.justice.gov/edar
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Omaha Man Sentenced to Prison for Making False Statements to the Social Security AdministrationRead the Press Release
United States Attorney Joe Kelly announced that Larry L. Boryca, 60, of Omaha, Nebraska, was sentenced Monday to three months’ imprisonment by Senior United States District Court Judge Laurie Smith Camp. After his release from prison, Boryca will serve a 3-year term of supervised release. He was also ordered to pay $37,856.10 in restitution to the Social Security Administration. A jury previously found Boryca guilty on March 18, 2019, of three counts of knowingly making false statements and representations of material fact for use by the Social Security Administration in order to receive Social Security Disability Income benefits.
An investigation conducted by the Social Security Administration’s Office of the Inspector General determined that while receiving Social Security Disability Income benefits, Boryca failed to truthfully report employment and income to the Social Security Administration. Evidence at trial indicated that at various times while receiving Social Security Disability Income benefits, Boryca had worked and received income. When asked about work and income on forms sent to him by the Social Security Administration in 2013 and 2015, Boryca falsely claimed that he had not worked and had not received income.
By failing to truthfully report his work activity and income to the Social Security Administration, Boryca secured continuing Social Security Disability Income payments in the amount of approximately $37,856.10 to which he was not entitled.
This case was investigated by the Social Security Administration’s Office of Inspector General.
Oklahoma City Man Pleads Guilty to Firearm Possession During Drug TraffickingRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Winford Lamont Henley, age 45, of Oklahoma City, Oklahoma, entered a guilty plea to Possession Of Firearm In Furtherance Of Drug Trafficking Crime, in violation of Title 18, United States Code, Section 924(c), punishable by not less than 5 years imprisonment to run consecutive to any other term of imprisonment imposed, a fine up to $250,000.00, or both; and Felon In Possession Of Firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleges that on or about February 12, 2019, in the Eastern District of Oklahoma, the defendant, did knowingly possess a firearm in furtherance of a drug trafficking crime for which he may be prosecuted in a court of the United States.
The Indictment further alleges that on or about February 12, 2019, in the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the Eufaula Police Department and the Federal Bureau of Investigation.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Dean Burris represented the United States.
Ohio man admits to cocaine chargeRead the Press Release
WHEELING, WEST VIRGINIA – Tajuan Smith., of Canal Winchester, Ohio, has admitted to distributing cocaine, United States Attorney Bill Powell announced.
Smith, also known as “Poe,” age 20, pled guilty to one count of “Distribution of Cocaine Base Within 1,000 Feet of a Protected Location.” Smith admitted to selling cocaine near Jensen Playground in Wheeling in June 2018.
Smith faces at least one and up to 40 years incarceration and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen L. Vogrin is prosecuting the case on behalf of the government. The Ohio Valley Drug & Violent Crime Task Force, a HIDTA-funded initiative, and the West Virginia State Police investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Ohio Man Pleads Guilty to Traveling to Meet a Minor for SexRead the Press Release
Defendant faces up to 30 years in federal prison and up to life on federal supervised release
CHARLESTON, W.Va. – Donald E. Ward, 59, of Logan, Ohio pled guilty today to traveling in interstate commerce in order to engage in illicit sexual activity with a minor, announced United States Attorney Mike Stuart.
“We’re working with our law enforcement partners as hard and as fast as possible to identify and prosecute those who troll the internet to prey on minors,” said United States Attorney Mike Stuart. “My intention is to lock up the monsters that prey on our children and families.”
Ward admitted that beginning in January 2019 he began communicating via a social media application and text message with a minor he believed to be a 14-year-old girl in Parkersburg, West Virginia. On February 13, 2019, Ward traveled from Ohio to Parkersburg in order to meet the minor to engage in sexual activity, including oral sex. Only then did Ward discover that the minor was actually an undercover law enforcement officer.
Ward faces up to 30 years in federal prison when he is sentenced on September 11, 2019. Upon his release from prison, he will be required to serve a term of supervised release of at least five years and up to life. He will also be required to register as a sex offender.
The investigation was conducted by the West Virginia State Police, the West Virginia States Police Internet Crimes Against Children Task Force, the FBI Violent Crimes Against Children Task Force, and the Parkersburg Police Department. Assistant United States Attorney Jennifer Rada Herrald is in charge of the prosecution. The plea hearing was held before United States District Judge Joseph R. Goodwin.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Officer Accused of Bilking East St. Louis Police Department with Fraudulent Overtime RequestsRead the Press Release
An East St. Louis police officer is under federal indictment for allegedly taking thousands of dollars in fake overtime pay, U.S. Attorney Steven D. Weinhoeft announced today. Mario H. Fennoy, 48, of Lebanon, Illinois, has been charged by a federal grand jury with fraudulently obtaining overtime compensation from the East St. Louis Police Department for nearly a year.
Fennoy allegedly began submitting false claims for overtime pay in 2017, while he was employed as a patrol sergeant. According to the indictment, Fennoy was actually at home, spending extended periods of time at a secondary residence, when he was supposedly out working the streets. The indictment further alleges that Fennoy falsely cleared calls and reported responding to dispatches when, in fact, he never left the house. From April 2017 to March 2018, Fennoy is accused of submitting over 50 bogus requests for overtime pay, totaling more than 200 hours. He is accused of using the fraud to significantly boost his earnings. The charge alleges that in 2017 Fennoy received a base salary of $69,382, but after overtime, he received more than $205,000 in total wages.
"Every day, many dedicated police officers report to work in East St. Louis, one of the most impoverished and dangerous jurisdictions in the country, to protect and serve the people who live there," U.S. Attorney Steven D. Weinhoeft said. "Due to serious understaffing, many of them work considerable overtime hours trying to improve the safety of this community. We strongly support the men and women in law enforcement who work in these difficult circumstances. But at the same time, the U.S. Attorney’s office will continue to serve its critical role preserving the public trust by holding law enforcement accountable when necessary."
Fraudulently obtaining money from an organization that receives federal funds, like the East St. Louis Police Department, carries a maximum sentence of 10 years in prison and a $250,000 fine. Restitution is mandatory.
An indictment is merely a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation was conducted by the Southern Illinois Public Corruption Task Force, which consists of agents with the FBI, Internal Revenue Service/Criminal Investigation, and the Illinois State Police. The prosecution is being handled by Assistant U.S. Attorney Norman R. Smith. Citizens are encouraged to report suspicions of public corruption to the Southern Illinois Public Corruption Task Force Tip Line at (618) 589-7373.
Ocean County Man Admits Producing Images of Sexual Abuse of Children and Advertising Child PornographyRead the Press Release
Plea Agreements Call for Total Sentence of 30 to 40 Years in Prison
TRENTON, N.J. – An Ocean County, New Jersey, man today admitted producing images of himself sexually abusing young children, U.S. Attorney Craig Carpenito announced.
Sebastien Attar, 35, of Brick, New Jersey, pleaded guilty before U.S. District Peter G. Sheridan in Trenton federal court to an information charging him with two counts of sexual exploitation of children. Separately, Attar also pleaded guilty before Judge Sheridan to a superseding indictment charging him with one count of advertising child pornography.
According to documents filed in the case and statements filed in court:
Beginning in mid-2017, federal law enforcement began investigating individuals participating in a private chat messaging group dedicated to the discussion and dissemination of images and videos depicting the sexual abuse of children. The private chat group was named “Taboo Train 2.0,” and law enforcement identified Attar as a member of that group, operating with the account identifier “Seb Seb.” The investigation revealed that on multiple occasions and in response to requests from other users, Attar, operating as “Seb Seb,” shared with the “Taboo Train 2.0” chat group images depicting sexual acts between adults and very young children.
In March 2018, in connection with the investigation of the “Taboo Train 2.0” chat group, federal law enforcement agents executed a search warrant at Attar’s Brick, New Jersey residence, and seized a number of electronic devices and electronic storage media. In July 2018, a grand jury sitting in the Northern District of Georgia returned a superseding indictment charging Attar and others with advertising child pornography.
In January 2019, during a forensic review of the electronic media seized pursuant to the search of Attar’s residence, law enforcement discovered graphic images in which an individual – later identified as Attar – had photographed himself engaged in sexual acts with two extremely young children, estimated to be less than one month old and less than six months old, respectively, at the time the images were produced. Upon discovery of these images, Attar promptly was arrested and charged in a criminal complaint filed in the District of New Jersey, leading to the two-count information filed today. As part of today’s resolution, the superseding indictment filed in the Northern District of Georgia against Attar was formally transferred to the District of New Jersey so that Attar could plead guilty to that charge in conjunction with his guilty plea to the information filed in this district.
The statutes under which Attar pleaded guilty each carry a statutory mandatory minimum term of 15 years in prison, a statutory maximum of 30 years in prison, and a maximum fine of $250,000 on each count. If accepted by the Court at the time of sentencing, the parties’ plea agreements would result in Attar serving a stipulated total sentence between 30 and 40 years in prison. Sentencing is scheduled for Oct. 3, 2019.
U.S. Attorney Carpenito credited special agents of the FBI-Newark Field Office, under the direction of Special Agent in Charge Gregory W. Ehrie, and special agents of the FBI-Atlanta Field Office, under the direction of Special Agent in Charge J.C. Hacker, with the investigations leading to today’s guilty pleas. Carpenito also thanked prosecutors from the U.S. Attorney’s Office for the Northern District of Georgia, under the direction of U.S. Attorney Byung J. Pak, for their assistance.
The government is represented by Assistant U.S. Attorney J. Brendan Day of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: David Jay Glassman Esq., Marlton, New Jersey
Northwood Woman Sentenced to 43 Months for Her Role in Methamphetamine Trafficking ConspiracyRead the Press Release
CONCORD - Victoria Duford, 27, formerly of Northwood, was sentenced on Tuesday to 43 months in prison for participating in a methamphetamine trafficking conspiracy, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, from July 2016 through April 2017, Duford purchased large amounts of methamphetamine from her co-conspirator Katrina Jones. In addition, on at least six occasions during the same time period, Duford received postal packages containing large quantities of methamphetamine on behalf of Jones at addresses in New Hampshire. Duford would bring the packages to Jones, who would often give Duford a portion of the methamphetamine as payment.
Jones pleaded guilty to several counts of drug trafficking, including two counts of distributing methamphetamine. She was sentenced to serve 200 months in prison on August 18, 2018.
Duford had previously pleaded guilty on July 10, 2018.
“Methamphetamine is a dangerous drug that has been appearing in New Hampshire with alarming frequency,” said U.S. Attorney Murray. “This drug can cause terrible harm to those who use it. In order to deter dealers, we will coordinate with all of our law enforcement partners to arrest, prosecute, and incarcerate those who sell methamphetamine.”
“DEA is committed to bring to justice those that distribute methamphetamine,” said Drug Enforcement Administration Special Agent in Charge Brian D. Boyle. “Today’s sentence not only holds Ms. Duford accountable for her crimes but serves as a warning that DEA and its local, state and federal partners will do everything in our power to keep this highly addictive drug off the streets of New Hampshire.”
This matter was investigated by the United States Postal Inspection Service, the N.H. Attorney General’s Drug Task Force, and the DEA. The case is being prosecuted by Assistant U.S. Attorney John Davis.
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North Charleston Man Sentenced to 10 Years in Federal Prison on Firearm ChargeRead the Press Release
Charleston, South Carolina --- United States Attorney Sherri A. Lydon announced today that Rashaun Allen Judge, 33, of North Charleston, was sentenced to 10 years in federal prison after pleading guilty to possessing a firearm in furtherance of a drug trafficking crime.
Evidence presented to the court showed that on July 13, 2016, North Charleston Police Department officers approached Judge while he was seated in his vehicle. The defendant provided officers his driver’s license and admitted to possessing marijuana in his pocket. Shortly thereafter, he fled the scene on foot. Officers searched his vehicle and located 5.55 grams of cocaine, 2.97 grams of crack cocaine, and a loaded Charter Arms .38 Special handgun in the panel of the driver’s side door.
This is Judge’s third firearm conviction. Judge was convicted of possessing a firearm in furtherance of a drug trafficking crime in 2010 and was sentenced to three years in federal prison. While on bond for a separate state firearms charge, Judge was arrested on the underlying gun charge, which was later adopted by federal authorities. United States District Judge Richard M. Gergel of Charleston sentenced Judge to 120 months in federal prison. There is no parole in the federal system.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the North Charleston Police Department. It was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. Assistant United States Attorney Emily Limehouse of the Charleston office prosecuted the case.
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New Orleans Man Pleads Guilty to Heroin Conspiracy and Firearms ChargesRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that GERARD HARRISON, age 31, of New Orleans, pled guilty to violations of the federal Controlled Substances Act and the federal Gun Control Act.
On June 13, 2019, HARRISON pled guilty to a two-count bill of information charging him with conspiracy to distribute and to possess with intent to distribute one hundred grams or more of heroin and to possession of a firearm in furtherance of a drug trafficking crime. According to court documents, federal agents intercepted wiretapped calls involving HARRISON and surveilled him as he conducted drug transactions. Law enforcement agents also executed a search warrant at HARRISON’s home, and recovered an assault rifle, a large capacity magazine, and bags of heroin.
For his violation of the Federal Controlled Substances Act, HARRISON faces a minimum term of five years and a maximum term of forty years of imprisonment, a fine of up to $5,000,000, not less than four years of supervised release after imprisonment, and a $100 special assessment. Additionally, for his violation of the Federal Gun Control Act, HARRISON faces a consecutive sentence of not less than five years imprisonment up to life imprisonment, not less than 5 years of supervised release, a fine of not more than $250,000, and a $100 special assessment. U.S. District Court Judge Ashe set sentencing for September 19, 2019.
U.S. Attorney Peter G. Strasser praised the work of the Federal Bureau of Investigation, the Drug Enforcement Administration, and New Orleans Police Department in investigating this matter. Assistant United States Attorneys Jonathan L. Shih and Maria M. Carboni are in charge of the prosecution.
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New Haven Man Sentenced to 21 Months in Federal Prison for Illegally Possessing Guns and AmmunitionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that EDWARD LUGO, 38, of New Haven, was sentenced today by Vanessa L. Bryant in Hartford to 21 months of imprisonment, followed by three years of supervised release, for illegally possessing firearms and ammunition.
According to court documents, on September 19, 2018, Lugo possessed a 9mm Kel-Tec Model P-11 pistol, an AR-style pistol with no serial number, and more than 100 rounds of assorted ammunition.
Lugo’s criminal history includes felony convictions in Connecticut and New York for firearm, weapon, drug, larceny and possession of stolen property offenses.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Lugo has been detained since December 20, 2018. On March 21, 2019, he pleaded guilty to one count of unlawful possession of a firearm and ammunition by a convicted felon.
This matter was investigated by the Statewide Narcotics Task Force, New Haven Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). The case was prosecuted by Assistant U.S. Attorneys Margaret E. Maigret and Sarah P. Karwan.
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 neighborhoods safer for everyone.
Michigan Doctor Sentenced to Prison for His Role in Scheme to Unlawfully Distribute OpioidsRead the Press Release
A Detroit-area doctor was sentenced to 60 months in prison today for his role in a scheme to unlawfully distribute more than 23,000 pills of oxycodone.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Matthew Schneider of the Eastern District of Michigan, Special Agent in Charge Timothy R. Slater of the FBI’s Detroit Division, Special Agent in Charge Timothy J. Plancon of the U.S. Drug Enforcement Administration (DEA)’s Detroit Division and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.
Alex Kafi, M.D., 70, of West Bloomfield, Michigan, was sentenced by U.S. District Judge Victoria A. Roberts of the Eastern District of Michigan. Kafi pleaded guilty in August 2018 to one count of conspiracy to distribute controlled substances.
“Betraying his duties as a licensed physician, Alex Kafi, accepted cash in exchange for writing medically unnecessary prescriptions for addictive opioids as part of a scheme that flooded Michigan with thousands of doses of oxycodone,” said Assistant Attorney General Benczkowski. “Holding corrupt doctors accountable is critical to our ongoing efforts to combat the opioid epidemic nationwide and the Department of Justice will continue to aggressively pursue medical professionals like Alex Kafi.”
“Today’s opioid epidemic is fueled, in part, by the greed of certain doctors who knowingly prescribe legitimate pain medications to individuals for no legitimate medical purpose,” said U.S. Attorney Schneider. “Dr. Kafi’s action contributed to Michigan’s opioid crisis for the sole purpose of lining his pockets. We will continue to use every means available to investigate and prosecute these cases.”
“We are committed to investigating medical professionals who use their position to illegally distribute opioids like common drug dealers,” said Special Agent in Charge Slater. “The FBI is unwaveringly committed to working alongside our Strike Force Partners to fight the opioid epidemic and to ensure the deadly practice of over-prescribing highly addictive drugs does not continue unchecked.”
“Today’s sentencing is a reminder of DEA’s determination to bring medical professionals who betray the trust of their community to justice,” said Special Agent in Charge Plancon. “The DEA, through regulation and enforcement, will continue to partner with other law enforcement agencies to identify, investigate, and prosecute licensed Physicians, like Dr. Kafi, who use their medical profession and position to conceal the unlawful diversion and distribution of prescription drugs.”
“Ensuring the appropriate prescribing of opioid medications is essential to protect the health and safety of patients,” said Special Agent in Charge Pugh III. “When physicians act recklessly and in furtherance of their own greed, they only exacerbate the opioid epidemic. The OIG has made combatting the opioid crisis a top enforcement priority and we will continue working with our law enforcement partners to investigate and hold accountable those who act illegally and put patients’ health and safety at risk.”
As part of his guilty plea, Kafi admitted that from 2013 through May 2017, he engaged in a scheme in which he wrote medically unnecessary prescriptions for oxycodone in exchange for cash. Kafi wrote these fraudulent prescriptions often without ever meeting or communicating with the patient. Instead, Kafi conspired with patient recruiters who provided him with lists of patients, along with $300 per prescription of oxycodone, he admitted. Kafi admitted the scheme involved approximately 693,000 mg of oxycodone. He agreed to forfeit $617,208.00, representing proceeds of his criminal activity.
Kafi’s co-defendant Danielle Smith was sentenced by Judge Roberts to serve 32 months in prison on Feb. 7. Additional co-defendant Cheryl Ozoh awaits sentencing. Smith and Ozoh each also pleaded guilty to one count of conspiracy to distribute controlled substances.
The FBI, DEA and HHS-OIG investigated the case. Trial Attorney Steven Scott of the Criminal Division’s Fraud Section is prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and U.S. Department of Health and Human Services (HHS) to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Memphis Goodwill Industries, Inc. will pay $150,000 to the United States for claims that were in violation of the Federal False Claims ActRead the Press Release
Memphis, TN – Memphis Goodwill Industries, Inc. will pay $150,000 to the United States to resolve allegations that it submitted claims that falsely certified compliance with regulations involving contracts it had entered into for services rendered to the Internal Revenue Service, the Department of Veterans Affairs and the General Services Administration pursuant to the AbilityOne Program.
To qualify for contracts administered by the AbilityOne Commission, Goodwill was required by federal regulation to employ disabled individuals for 75% of its direct labor hours. To maintain compliance, Goodwill was required to submit annual certifications certifying such compliance. The allegations were that Goodwill certified to the federal government that its direct labor hour’s figures were true and accurate when in fact the direct labor hours actually worked by disabled individuals were much lower.
The False Claims Act, 31 U.S.C. §§ 3729-3733, provides the United States with a cause of action against any person or entity that knowingly presents, or causes to be presented, a false or fraudulent claim for payment or approval.
“Protection of the United States Treasury against fraud, waste, and abuse is a top priority of this office and the Department of Justice. False claims that defraud federal government agencies compromise and harm their respective abilities to employ disabled individuals in our communities, and must be exposed. We are pleased to recover these funds for the fraud perpetrated against the United States, and hope that this settlement amount will send a significant deterrent message to other dishonest contractors,” said D. Michael Dunavant, United States Attorney.
"Organizations that contract with the federal government under the AbilityOne program are expected to fulfill the promises they make to the taxpayer and the disabled individuals the program is intended to employ." said Carol F. Ochoa, Inspector General for GSA.
“Fraud on the AbilityOne program harms inclusion of workers in the program as well as law-abiding AbilityOne contractors,” said Thomas Lehrich, Inspector General of the U.S. AbilityOne Commission. “We are committed to preserving the integrity of the AbilityOne program. Working with DOJ and our partners, the Office of Inspector General will continue to protect the confidence and public trust in the largest employment program in the nation of blind and significantly disabled workers.”
Michael J. Missal, Inspector General for the U.S. Department of Veterans Affairs, stated, “This settlement sends a clear message to individuals and businesses that we will work with our law enforcement partners to vigorously investigate and expose false claims that compromise the integrity of programs designed to benefit veterans and their families.”
This investigation was conducted by the Office of the Inspector General for the United States AbilityOne Commission, the Office of Inspector General for the General Services Administration, the Office of the Inspector General of the United States Department of Veterans Affairs, the Treasury Inspector General for Tax Administration and the United States Attorney’s Office for the Western District of Tennessee.
Assistant United States Attorneys Stuart J. Canale, Western District of Tennessee, and Trial Attorney Jennifer Chorpening, United States Department of Justice Civil Division, prosecuted this case on behalf of the government.
Mail Thief Sentenced to 21 Months in Prison for Violating the Terms of his Supervised Release by Stealing More MailRead the Press Release
PITTSBURGH, PA - Following a hearing for alleged violations of supervised release conditions, Senior United States District Judge Donetta Ambrose sentenced Tyrone Mobley, age 52, previously convicted of theft of U.S. mail on December 19, 2016, to 21 months’ incarceration with 11 months of supervised release to follow.
According to information provided to the court, Mr. Mobley violated his conditions of supervised release, including continued theft of mail in March and May, 2019 in the Shadyside and East End sections of Pittsburgh. Mr. Mobley was taken into U.S. Marshal’s custody following the hearing.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
United States Attorney Scott W. Brady commended the U.S. Postal Inspection Service and the City of Pittsburgh Police.
Lowell Man Sentenced for Armed Bank RobberyRead the Press Release
BOSTON - A Lowell man was sentenced today in federal court in Boston for a masked and armed bank robbery.
Jason M. Nobles, 37, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 188 months in prison and five years of supervised release. In January 2019, Nobles pleaded guilty to one count of armed bank robbery. Nobles is currently in federal custody.
On Feb. 26, 2018, a masked individual, later identified as Nobles, entered a branch of the Santander Bank in Swansea, approached a teller’s station, brandished what appeared to be a black semi-automatic pistol, pointed the pistol at the bank’s tellers and demanded cash. Throughout the robbery, Nobles pointed the weapon at the tellers ordering them to hurry up and threatening to shoot them. The tellers handed Nobles cash from their drawers, and Nobles fled the bank. A post robbery audit determined that Nobles stole approximately $15,000.
Bank employees witnessed Nobles depart the bank, run to a neighboring parking lot, and leave the area in a gray Toyota SUV, which had been reported stolen from Rhode Island earlier in the day. The employees were able to provide law enforcement with a vehicle description and the physical description of the robber. A high-speed chase ensued and local law enforcement officers, across multiple towns, worked together to locate the Toyota SUV, stop it, and detain the driver - Nobles - who matched the description of the robber given by the bank’s employees. Later, when law enforcement executed a search of the vehicle, they found a large sum of money and a black Sig Sauer semi-automatic pellet gun.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; Bristol County District Attorney Thomas M. Quinn; Swansea Police Chief George Arruda; and Rehoboth Police Chief James J. Trombetta made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit prosecuted the case.
Louisiana Couple and Their Business Plead Guilty to Operating Sham Medical Reimbursement Account Program that Defrauded the IRS and Program Participants Out of over $48 MillionRead the Press Release
A Covington, Louisiana, couple and their company pleaded guilty for their roles in a scheme to create, market and operate a fraudulent medical reimbursement program that defrauded the IRS and program participants out of over $48 million.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana, Special Agent in Charge Thomas J. Holloman of the Internal Revenue Service Criminal Investigation’s (IRS-CI) Atlanta Field Office, Special Agent in Charge Eric J. Rommal of the FBI’s New Orleans Field Office, Special Agent in Charge Steve Grell of the U.S. Department of Labor, Office of Inspector General’s (DOL-OIG) Dallas Regional Office and Regional Director James Purcell of the U.S. Department of Labor, Employee Benefits Security Administration’s Kansas City Regional Office made the announcement.
Denis Joachim, 53, pleaded guilty to one count of conspiracy to commit money laundering; Donna Joachim, 52, pleaded guilty to one count of conspiracy to defraud the United States; and The Total Financial Group, Inc. (TTFG) pleaded guilty to one count of conspiracy to make false statements and representations in connection with a multiple employer welfare arrangement and five counts of making false statements and representations in connection with a multiple employer welfare arrangement. All the pleas took place before U.S. District Judge Carl J. Barbier of the Eastern District of Louisiana on May 30, 2019, and were unsealed yesterday. Sentencings have been scheduled for Sept. 5, 2019, before Judge Barbier. As part of their guilty pleas, the defendants have agreed to forfeit assets previously seized with a collective value of approximately $6.3 million. Additionally, the defendants acknowledged a potential loss to the victims totaling more than $48 million and agreed to repay restitution for the amount of loss.
According to admissions made as part of the guilty pleas, TTFG was a Louisiana business incorporated by Denis Joachim and Donna Joachim with the Louisiana Secretary of State that was most recently located at 406 N. Florida Street in Covington. TTFG and its owners created and marketed a medical reimbursement account program called “Classic 105,” which operated from about 2012 until January 2017. Classic 105 claimed to be a multiple employer welfare arrangement that was marketed to employers as a supplemental benefits plan for their employees to reimburse for medical expenses such as co-pays and deductibles; participants in Classic 105 were required to have a primary health insurance plan unrelated to and in addition to Classic 105.
According to the defendants’ admissions, Classic 105 claimed to be comprised of several components: a tax-exempt contribution of between $1,000 and $1,600 per month made by an employee (which reduced the employee’s taxable income), a loan from a financial institution back to the employee to make up for the contribution, an insurance policy payable to the lender at the employee’s death to repay the loan and fees paid by the employee and the employer directly to TTFG. TTFG told prospective employer-clients that participants would never have to make out-of-pocket payments to repay the loan and that as a result of the tax savings, most participants would receive an increase in their net take home pay. TTFG also told prospective employer-clients that the contributions would be stored in a unique account for each employee-participant and that any money not used by the end of each calendar year would revert to TTFG. TTFG also charged employee-participants a fee of between $150 and $250 per month and the employer a fee of five percent of each employee’s contribution amount. At its peak, over 350 employer-clients and 4,400 employee-participants nationwide were enrolled in TTFG’s Classic 105 program. In total, TTFG took in not less than at least $25,543,340.70 in fees from the employer-clients and employee-participants, the defendants admitted.
According to the defendants’ admissions, TTFG never obtained a single loan or insurance policy for the Classic 105 program, and participants never made any actual contributions. Rather, TTFG arranged for the contribution, loan and insurance policy to appear as a series of “paper transactions” that, in effect, did nothing more than reduce participants’ taxable wages and employers’ FICA payments improperly, without their knowledge of the impropriety. Consequently, TTFG and the Joachims admittedly caused the underpayment of at least $23,343,442.70 in federal FICA taxes, as well as the underreporting and underpayment of personal federal income taxes, federal unemployment taxes and state unemployment taxes—amounts for which the employer-clients and employee-participants may be individually responsible. It also exposed participants to other adverse financial consequences, including fees and penalties on the unpaid tax and ineligibility from certain government programs, including unemployment payments and reduced Social Security payments, the defendants admitted.
In truth, the only money actually paid to TTFG were the fees, which the Joachims used to make numerous personal expenses, including the purchase of a 26-foot boat, a 2016 Grand Design Solitude recreational trailer, a Chevrolet Corvette, a Jeep Wrangler, a Dodge Ram truck, a Mercedes-Benz CL 550 automobile, a GMC Yukon XL Denali, multiple CAN-AM Maverick 1000R off-road vehicles, jet skis, their 13,000 square foot Covington residence, real property located adjacent to their Covington residence, two residences located in Madisonville, Louisiana, 40 acres of property in Bush, Louisiana, and 125 acres of property in Spring City, Tennessee, the defendants admitted.
This case was investigated by the IRS-CI, the FBI, the DOL-OIG and the Employee Benefits Security Administration. Assistant U.S. Attorneys Jordan Ginsberg and Maria Carboni of the Eastern District of Louisiana and Trial Attorney Jared Hasten of the Criminal Division’s Fraud Section are prosecuting the case. Senior Trial Attorney Rebecca Pyne of the Criminal Division’s Organized Crime and Gang Section, Labor-Management Racketeering Unit also provided assistance with the prosecution.
The Medicare Fraud Strike Force is part of a joint initiative between the Department of Justice and U.S. Health and Human Services (HHS) to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Lincoln Man Sentenced for Distributing Child PornRead the Press Release
United States Attorney Joe Kelly announced that Jordan Goeschel, 27, of Lincoln, Nebraska, was sentenced Wednesday in Lincoln, Nebraska, to 12 years in prison by Chief United States District Judge John M. Gerrard, for receiving and distributing child pornography. In addition to his prison sentence, Goeschel will serve 20 years on supervised release and be required to register as a sex offender.
Between May, 2016 and April, 2017, the Nebraska State Patrol received more than 90 CyberTips from the National Center for Missing and Exploited Children (NCMEC), indicating a specific user was uploading videos and images of child pornography. Additionally, in August, 2017, Dropbox, Inc. provided information to law enforcement that more than 31,500 media files consisting of videos and photographs had been uploaded to a cloud account. More than 4,700 of those files contained child pornography in which appeared children under the age of twelve (12). After further investigation, a search warrant was executed at Goeschel’s residence in Lincoln and his Apple iPhone was seized. A forensic examination of that phone identified an additional 92 files that contained child pornography that Goeschel had received and distributed.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Nebraska State Patrol.
Lexington Woman Sentenced for Theft of Mail by a Postal EmployeeRead the Press Release
Jackson, Miss. – Jasmine Marshall, 29, of Lexington, was sentenced yesterday by U.S. District Judge Carlton W. Reeves to 12 months’ probation for theft of mail while she was a U.S. Postal Service employee, announced U.S. Attorney Mike Hurst and Inspector in Charge Chris Cave with the U.S. Postal Service Office of Inspector General Southern Area Field Office. Marshall was also ordered to pay $197 in restitution.
On May 3, 2018, Postal Service Office of Inspector General special agents arrested Marshall after an investigation revealed her purposely failing to deliver mail and stealing money from undelivered boxes and letters. Marshall’s position as a rural postal carrier was terminated by the Postal Service.
On December 11, 2018, Marshall was charged in a federal criminal indictment for theft of mail while a postal employee. She pled guilty before Judge Reeves on March 4, 2019.
The case was investigated by the United States Postal Service Office of Inspector General.
Kanawha County Meth Dealer Sentenced to 10 Years in Federal PrisonRead the Press Release
CHARLESTON, W.Va. -- A Kanawha County methamphetamine dealer was sentenced today to 10 years in prison, announced United States Attorney Mike Stuart. Douglas Matthew Spry, 42, stands convicted of possession with the intent to distribute over 50 grams of methamphetamine. The investigation was conducted by the Nitro Police Department, with assistance from Homeland Security Investigations.
“Drug dealers aren’t welcome here,” said United States Attorney Mike Stuart. “If they chose to peddle their poisons in our communities, we will push for the longest sentences possible.”
Spry admitted that on December 10, 2017, his vehicle was the subject of a traffic stop near Nitro, West Virginia. The vehicle was stopped for a defective registration light. An officer with the Nitro Police Department could smell burnt marijuana emanating from the vehicle. During a search of the vehicle, officers located digital scales, a large amount of United States currency, and 70.41 grams of methamphetamine in the glove box. Spry denied knowledge of the methamphetamine but informed the officer that his fingerprints would likely be on the bag.
Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Ryan A. Saunders is handling the prosecution.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Kanawha County Man Sentenced for Gun CrimeRead the Press Release
CHARLESTON, W.VA. – United States Attorney Mike Stuart announced today that a Kanawha County man was sentenced in federal court on his conviction of felon in possession of a firearm. Malcolm Griffin, 27, was sentenced to 46 months in prison.
Griffin pled guilty on January 29, 2019, admitting that on July 5, 2018, he was a prohibited felon in possession of a firearm.
The case was investigated by the Charleston Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Chris Arthur handled the prosecution. Senior United States District Judge David A. Faber imposed the sentence.
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Jury Finds Nxivm Leader Keith Raniere Guilty of All CountsRead the Press Release
Keith Raniere, the founder and leader of Nxivm, was convicted today by a federal jury in Brooklyn of all seven counts of a superseding indictment charging him with racketeering and racketeering conspiracy; sex trafficking, attempted sex trafficking and sex trafficking conspiracy; forced labor conspiracy and wire fraud conspiracy. The racketeering offense included predicate acts of extortion, identity theft, and production and possession of child pornography. The verdict followed more than six weeks of trial before United States District Judge Nicholas G. Garaufis. When sentenced, Raniere faces a mandatory minimum of 15 years’ imprisonment, and up to life in prison.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Jonathan D. Larsen, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation (IRS-CI), announced the verdict.
“As found by the jury, Keith Raniere masqueraded as a self-help guru to gain the trust of his followers, and then exploited them for his own financial gain and sexual gratification,” stated United States Attorney Donoghue. “Raniere and his co-conspirators will now face the consequences for the serious crimes they committed and the profound harm they have caused their victims.” Mr. Donoghue extended his grateful appreciation to Homeland Security Investigations, the New York State Police and the United States Attorney’s Office for the Northern District of New York for their assistance during the investigation and prosecution.
“Nxivm’s so called self-help programs did anything but help the women they professed to empower,” stated FBI Assistant Director-in-Charge Sweeney. “What’s been proven today is that Keith Raniere preyed on the vulnerabilities of his many female victims, sold them lies and other falsehoods, and committed horrifying acts of coercion. This guilty verdict is a welcome end to a case that highlighted the many avenues of criminal activity pursued by a man whose intentions were deplorable beyond belief.”
“IRS Criminal Investigation plays a pivotal role in tracing the illicit funds from such horrendous criminal behavior,” stated IRS-CI Special Agent-in-Charge Larsen. “We proudly stand with our law enforcement partners in uncovering such crimes, and justice has been served.”
As proven at trial, in 2003, Raniere founded Nxivm, a purported self-help organization headquartered in Albany, New York, with centers operating elsewhere in the United States, Mexico and Canada. Raniere established Executive Success Programs (“ESP”), a series of purported self-help workshops in which participants paid thousands of dollars to attend classes based on Raniere’s teachings. In 2015, Raniere added a secret society within Nxivm called DOS or “The Vow,” with levels of women “slaves” headed by “masters.” The goal of the criminal enterprise was to promote Raniere, for example, by exalting his teachings and ideology, and to recruit new members, including as sexual partners for Raniere.In the course of their racketeering enterprise, Raniere and his co-conspirators committed multiple crimes, including sex trafficking, forced labor, computer hacking, fraud and identity theft. Raniere maintained command and control over his DOS members by collecting “collateral” from them, such as sexually explicit photos and letters making accusations against their loved ones that would be embarrassing if disclosed. For example, “Nicole,” a victim witness, testified that she was coerced into providing labor and services for Nxivm, which included taking photographs of naked women members and engaging in sex acts with Raniere, under threat of release of her collateral. DOS slaves were also branded with Raniere’s initials in their pelvic area using a cauterizing pen. The members of the “inner circle” were rewarded with financial opportunities and increased power and status within the enterprise.
Raniere and his co-conspirators also worked to support Raniere and protect Nxivm from perceived enemies. Raniere conspired with two of his closest associates in Nxivm to have “Daniela,” a member of his inner circle at the time, cross the Canadian border into the U.S. with a fake identification card bearing the name of a dead woman. Daniela testified that she assisted Raniere hack into the email accounts of persons he believed were enemies of Nxivm.
Among Raniere’s crimes was sexual exploitation of a child and possession of child pornography. Specifically, Raniere began having sex with a victim member identified as “Camila” when she was 15-years-old and he was 45. Raniere also took naked photographs of Camila when she was a minor.
Each of Raniere’s co-defendants previously pleaded guilty. On March 12, 2019, Nancy Salzman, Nxivm’s president and co-founder, pleaded guilty to racketeering conspiracy. On March 25, 2019, Lauren Salzman, a first-line master over slaves in DOS, pleaded guilty to racketeering and racketeering conspiracy. On April 8, 2019, Allison Mack, a first-line master, pleaded guilty to racketeering and racketeering conspiracy. On April 19, 2019, Clare Bronfman, a high-ranking member of Nxivm’s Executive Board, pleaded guilty to conspiracy to conceal and harbor illegal aliens for financial gain, and fraudulent use of identification documents, and Kathy Russell, Nxivm’s bookkeeper, pleaded guilty to visa fraud. They are awaiting sentencing.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Moira Kim Penza, Tanya Hajjar, Mark J. Lesko and Kevin M. Trowel are in charge of the prosecution. Assistant United States Attorney Karin Orenstein of the Office’s Civil Division is handling forfeiture matters.
The Defendant:
KEITH RANIERE (also known as “Vanguard” and “Grandmaster”)
Age: 58
Waterford, New YorkThe Defendants Who Previously Pleaded Guilty:
CLARE BRONFMAN
Age: 40
Clifton Park, New YorkALLISON MACK
Age: 36
Brooklyn, New YorkKATHY RUSSELL
Age: 61
Clifton Park, New YorkLAUREN SALZMAN
Age: 43
Clifton Park, New YorkNANCY SALZMAN (also known as “Prefect”)
Age: 65
Clifton Park, New YorkE.D.N.Y. Docket No. 18-CR-204 (S-2) (NGG)
Jury Convicts Shawnee Man of Illegal Firearm, CocaineRead the Press Release
KANSAS CITY, Mo. – A Shawnee, Kansas, man was convicted by a federal trial jury today of illegally possessing a firearm and possessing cocaine.
Anthony Whitehead, 32, was found guilty of one count of being a felon in possession of a firearm and one count of possessing a controlled substance.
A federal arrest warrant was issued for Whitehead in the District of Kansas on Dec. 29, 2016, for unlawful flight to avoid prosecution in regards to a Johnson County, Kansas, warrant for attempted kidnapping. Agents with the U.S. Marshal’s Service Fugitive Task Force received information that Whitehead was staying at the Relax Inn, 6300 Blue Parkway, Kansas City, Missouri.
On Jan. 20, 2017, federal agents contacted Whitehead and his girlfriend in their room at the Relax Inn, where they found a loaded Glock .40-caliber semi-automatic handgun hidden underneath the mattress of the bed. Agents also found a cellophane bag that contained approximately 1.5 grams of cocaine in one of Whitehead’s pants pockets.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Whitehead has two prior felony convictions for fleeing and attempting to elude a law enforcement officer, as well as prior felony convictions for unlawful possession of a firearm, possession of a controlled substance, possession with the intent to sell marijuana, domestic assault, endangering the welfare of a child, unlawful use of a weapon, and tampering with a motor vehicle.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for approximately 30 minutes before returning the guilty verdict to U.S. District Judge Greg Kays, ending a trial that began Tuesday, June 18, 2019.
Under federal statutes, Whitehead is subject to a sentence of up to 13 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Brad K. Kavanaugh and Special Assistant U.S. Attorney Robert M. Smith. It was investigated by the U.S. Marshal’s Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kansas City, Mo., Police Crime Lab and the Missouri State Highway Patrol Crime Lab.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Joint EU-US Statement Following the EU-US Justice and Home Affairs Ministerial MeetingRead the Press Release
On June 19, 2019, the Romanian Presidency of the Council of the European Union hosted the EU-US Ministerial Meeting on Justice and Home Affairs in Bucharest, Romania. The meeting provided an opportunity for both sides to take stock of their long-standing cooperation in this area and to reaffirm their partnership in addressing common security threats. U.S. Attorney General William P. Barr and Acting Deputy Secretary for Homeland Security David P. Pekoske represented the United States.
The European Union hosted the meeting and was represented by the Commissioner for Migration, Home Affairs and Citizenship Dimitris Avramopoulos; the Commissioner for Justice, Consumers and Gender Equality Věra Jourová; the Commissioner for the Security Union Julian King; as well as the Romanian Vice Prime Minister ad interim and Minister of Justice Ana Birchall and the Minister of Interior Carmen Daniela Dan, together with the Finnish Minister of the Interior Ms. Maria Ohisalo and the Minister of Justice Ms. Anna-Maja Henriksson, on behalf of the current and incoming Presidencies of the Council of the European Union.
The United States and the European Union reaffirmed that fighting terrorism is among their top priorities and committed to enhance their joint efforts, including by expanding the sharing of information gathered in zones of combat for use in investigations and prosecutions. Participants welcomed results already achieved in this domain, including in cooperation with Europol and Eurojust, and looked forward to the outcome of the meeting to be held on this subject that will bring together U.S. and EU experts in Brussels on July 10. With regard to other critical areas of EU-US information sharing, participants of the meeting reiterated the importance of the EU-US Passenger Name Record agreement and committed to begin a joint evaluation to assess its implementation. The United States and the European Union also discussed current threats to aviation security, including unmanned aircraft systems; combatting the use of the internet for terrorist purposes; and chemical, biological, radiological and nuclear threats.
The United States and the European Union also discussed the priority area of security in cyberspace. Participants committed to further joint efforts to maintain a safe, open, and secure cyberspace, and exchanged views on how to best address growing cyber threats. Participants recognized that the deployment of 5G network infrastructure needs to be addressed as a matter of priority, as it might pose significant security risks and impact the ability of law enforcement agencies to take effective action against crime. The United States and the European Union are committed to further pursue their exchanges on assessing and managing 5G and supply chain security risks through existing channels, including the Justice and Home Affairs meetings. The United States and the European Union also recognized the importance of swift cross-border access to electronic evidence, and discussed the implications of recent legislation enacted in the United States and legislation under examination in the European Union.
Participants acknowledged the recent approval by the Council of the European Union of a mandate authorizing the Commission to negotiate on behalf of the EU an agreement with the United States facilitating access to e-evidence for the purpose of judicial cooperation in criminal matters, as well as the steps being taken by the United States towards opening negotiations of such an agreement, in a manner consistent with their respective legislations. The United States and the European Union also reviewed the unprecedented challenges faced by electoral systems in democratic states, which call for exchanges of best practices to overcome those challenges. Participants confirmed their commitment to further discuss an expert level dialogue.
The United States and the European Union briefed each other on recent developments in their migration and border management policies; in particular, the European Union provided information on the reinforced mandate of the European Border and Coast Guard Agency (EBCGA) and on the implementation of the European Travel Information and Authorization System (ETIAS), two instruments which will further strengthen the EU's border management. Both sides concurred on the vital importance of preventing and combatting migrant smuggling and trafficking of human beings and discussed further joint work in these areas.
Finally, the United States and the European Union agreed on the importance of advancing further towards reciprocal visa free travel under their respective legal frameworks and, following the May 2019 meeting on visa reciprocity between the United States, the European Union and the concerned Member States, welcomed the progress of the five concerned Member States towards meeting the requirements of the Visa Waiver Program, in order to be considered for designation in the program.
Reaffirming their commitment to advance together towards common solutions in these areas, the United States and the European Union committed to meet again in the second half of 2019 in Washington, D.C.
The meeting was also attended by the EU Counter-Terrorism Coordinator Gilles de Kerchove, the Executive Director of Europol Catherine De Bolle, the Executive Director of Frontex Fabrice Leggeri and the Vice-President of Eurojust Klaus Meyer-Cabri.
James Felton Convicted in Manhattan Federal Court of 2016 Murders of Marvin Harris and Jose MoralesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that JAMES FELTON was found guilty of the June 11, 2016, murder of Marvin Harris, whom FELTON shot 13 times, as well as the December 11, 2016, murder of Jose Morales, whom FELTON shot in the head. FELTON was also found guilty of conspiring to distribute crack cocaine, heroin, cocaine, and marijuana, and related firearms offenses. FELTON was convicted following a one-week trial before U.S. District Judge William H. Pauley III.
U.S. Attorney Geoffrey S. Berman said: “James Felton brutally executed two men on the streets of the Bronx as part of his efforts to control the drug trade in his community. Now Felton stands convicted of his crimes. We thank our partners at Homeland Security Investigations and the New York City Police Department for their extraordinary work on this case.”
According to the allegations in the Indictment and the evidence presented in court during the trial:
Between 2010 and 2017, FELTON was a member of a long-running narcotics conspiracy and criminal enterprise centered around 240 East 175th Street in the Bronx, New York. On June 11, 2016, at the corner of East 175th Street and Monroe Avenue in the Bronx, FELTON shot Marvin Harris 13 times, killing him, after Harris insulted FELTON and challenged FELTON’s status within the drug territory. Six months later, at the corner of East 175th Street and Weeks Avenue, one block away from the scene of the Harris murder, FELTON shot rival drug dealer Edwin Romero four times, then shot Jose Morales in the head, killing him.
FELTON also committed other firearms offenses in connection with his membership in the drug conspiracy and criminal enterprise.
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FELTON, 50, of the Bronx, was convicted of conspiring to distribute at least 280 grams of crack cocaine and quantities of heroin, cocaine, and marijuana; two counts of murder through use of a firearm; two counts of murder while engaged in a narcotics conspiracy; two counts of murder in aid of racketeering; using, carrying, possessing, brandishing, and discharging firearms in relation to a drug trafficking crime, on occasions other than the Harris and Morales murders; and four counts of possessing a firearm or ammunition after sustaining a felony conviction. FELTON faces a mandatory minimum sentence of life imprisonment plus an additional mandatory minimum sentence of 75 years in prison, which must run consecutively to any other term of imprisonment imposed.
FELTON is scheduled to be sentenced before Judge Pauley on October 4, 2019.
Mr. Berman praised the outstanding investigative work of the Department of Homeland Security, Homeland Security Investigations, and the New York City Police Department.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Frank Balsamello, Matthew Hellman, and Anden Chow are in charge of the prosecution.
Illegal Alien Who Used Another Person’s Social Security Number Sentenced to PrisonRead the Press Release
A man who used another person’s Social Security number to get a job was sentenced today to two months in federal prison.
Efrain Alvarez-Victoriano, age 44, a citizen of Mexico illegally present in the United States and residing in Waterloo, Iowa, received the prison term after an April 12, 2019, guilty plea to one count of misuse of a social security number.
At the guilty plea, Alvarez-Victoriano admitted that on September 11, 2012, he used someone else’s name and social security number on employment forms and state and federal tax forms when applying for work in Waukon, Iowa. Alvarez-Victoriano was convicted in 2016 of possession of methamphetamine and introducing a controlled substance into a jail and placed on probation. Alvarez-Victoriano’s whereabouts were unknown to immigration officials until his arrest and sentencing in February 2019 for violating his state probation.
Alvarez-Victoriano was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Alvarez-Victoriano was sentenced to two months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Alvarez-Victoriano is being held in the United States Marshal’s custody until he can be returned to state prison where he is serving a five-year sentence on an Iowa drug felony conviction.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-2003. Follow us on Twitter @USAO_NDIA.
Honduran National Sentenced for Illegal Re-entryRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that FAUSTO FIGUEROA-MATUTE, age 30, a native of Honduras, was sentenced yesterday after previously pleading guilty to a one-count indictment for illegal reentry of a removed alien.
United States District Court Judge Jay C. Zainey sentenced FIGUEROA-MATUTE to time served, followed by 1 year of supervised release, and a $100 special assessment fee. The defendant will be surrendered to the custody of Immigration and Customs Enforcement for removal proceedings.
According to court documents, FIGUEROA-MATUTE was previously removed from the United States on October 31, 2011. He was later found in the Eastern District of Louisiana on December 23, 2017, and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
U.S. Attorney Strasser praised the work of Customs and Border Protection in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
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Hartford Man Charged with Producing and Distributing Child PornographyRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that a federal grand jury in Hartford returned an indictment today charging RONALD DANIEL, 49, of Hartford, with two counts of production of child pornography and one count of distribution of child pornography.
The indictment alleges that, between February 2018 and December 2018, Daniel produced and distributed child pornography.
The charge of production of child pornography carries a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of 30 years on each count. Distribution of child pornography carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Daniel has been detained since his arrest on related state charges on June 10, 2019.
This matter is being investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the Connecticut State Police and the Vernon Police Department. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
Harrison County man guilty of drug and firearms chargesRead the Press Release
ELKINS, WEST VIRGINIA – After a two-day trial, Robert Michael Junkins, of Clarksburg, West Virginia, was found guilty of drug and firearms charges, United States Attorney Bill Powell announced.
A jury deliberated for less than one hour before finding Junkins, age 50, of two counts of “Possession with Intent to Distribute Methamphetamine,” one count of “Possession of a Firearm During and in Relation to a Drug Offense,” and two counts of “Unlawful Possession of a Firearm.”
Junkins had methamphetamine in his possession on three separate occasions. Having been convicted of a felony drug offense, Junkins also illegally had several firearms and ammunition. The crimes occurred in August and September 2017 and November 2018 in Harrison County.
Junkins faces up to 20 years incarceration and a fine of up to $1,000,000 for each the possession of methamphetamine counts, not less than five years and up to 40 years incarceration and fine of up to $250,000 for the firearm possession during a drug offense count, and up to 10 years incarceration and a fine of up to $250,000 for each of the unlawful firearms possession counts. 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. Attorneys Brandon S. Flower and Stephen D. Warner are prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Elkins Police Department investigated.
U.S. District Judge John Preston Bailey presided.
Gloucester County Man Charged with Using Fraudulent Invoices to Steal from Hospitals, Clinics and Doctors’ OfficesRead the Press Release
CAMDEN, N.J. – A Gloucester County, New Jersey, man was arrested today for allegedly mailing more than 10,000 fraudulent invoices for non-existent medical supplies to hospitals, clinics and doctor’s offices throughout the United States, U.S. Attorney Craig Carpenito announced.
Robert S. Armstrong, 48, of Turnersville, is charged by complaint with three counts of mail fraud. He is scheduled to appear this afternoon before U.S. Magistrate Judge Karen M. Williams in Camden federal court.
According to documents filed in this case:
Operating under the name of Pinnacle Medical Supplies, Armstrong prepared fraudulent invoices billing hospitals, clinics and doctors’ offices across the United States for medical supplies that the providers never ordered or received. The invoices included fraudulent shipping information and a fraudulent address.
Armstrong then contracted with a legitimate bulk mailing company to mail more than 10,000 invoices to medical providers. Each invoice included a payment envelope pre-addressed to Pinnacle Medical Supply at a mail box Armstrong had set up with commercial mail receiving agents.
In response to the phony invoices, at least 169 medical providers sent monies to Pinnacle Medical Supply. Armstrong deposited those checks – totaling $43,248 – from the victim medical providers into a bank account he opened in the name of Pinnacle Medical Supply.
The charge of mail fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits to Armstrong or twice the gross losses to the victims of his offense.U.S. Attorney Carpenito credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge John Walker in Philadelphia, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Diana Carrig of the U.S. Attorney’s Office in Camden.
The charges and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Richard Coughlin Esq., Federal Public Defender, Camden
Four Aliens Indicted on Illegal Reentry Charges, Illegal and Unlawful Alien in Possession of Firearms, and Visa 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 indictments charging MARCELINO CARMONA-TORRES, age 28, of Mexico, and CESAR RUIZ-TOSTA, age 40, of Honduras, with illegal reentry of a deported alien.
Additionally, the grand jury returned an indictment charging ERIK ZARATE-GARCIA, age 45, of Mexico, with illegal and unlawful alien in possession of firearms, and ESTUARDO CAMEY-GONZALEZ, age 49, of Guatemala, with illegal and unlawful alien in possession of a firearm and visa fraud.
If convicted of illegal reentry of a deported alien, CARMONA-TORRES previously deported and found in Wake County, would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
RUIZ-TOSTA, previously deported twice and found in Wake County, is alleged to have been previously deported subsequent to a felony conviction, illegal re-reentry in the Western District of Texas. Therefore, if convicted, would face a maximum imprisonment term of 10 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of illegal alien in possession of firearms, CAMEY-GONZALEZ, found in Nash County, and ZARATE-GARCIA, found in Cumberland County, would face maximum penalties of 10 years imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment. Additionally, if found guilty of visa fraud, CAMEY-GONZALEZ would face maximum penalties of 20 years imprisonment, a $500,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by ICE’s Enforcement and Removal Operations and Homeland Security Investigations.
Former Police Officer Sentenced to Prison for Using Unreasonable ForceRead the Press Release
COLUMBUS, Ohio – A former Franklin Township police officer was sentenced in U.S. District Court today for using excessive force as a law enforcement officer.
Robert Wells, 49, of Pataskala, Ohio, was sentenced to 12 months and one day in prison for one count of deprivation of rights under color of law. Wells was also sentenced to three years of supervised release.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Todd A. Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and Franklin County Prosecutor Ron O’Brien announced the sentence imposed by U.S. District Judge James L Graham.
Wells was charged by indictment in September 2018. According to the charging document, on May 1, 2018, while acting in his then official capacity as a Franklin County Township police officer, Wells kicked an individual in the head while the victim was lying handcuffed on the ground. This deprived the victim of his Constitutional right to be free from the use of unreasonable force by a law enforcement officer and resulted in bodily injury to the victim.
Additionally, Wells then made false and misleading statements in his report relating to the arrest of the victim in order to cover up the excessive force and create a false understanding of the circumstances surrounding the arrest and injury.
Wells pleaded guilty in December 2018.
“This result reflects the determination of the United States that the willful use of excessive force under color of state law not only won’t be tolerated in the Southern District of Ohio, it will be punished,” said U.S. Attorney Glassman. “The defendant’s conviction and sentence of imprisonment vindicates the interests of justice, including vindicating police officers, who have among the most dangerous and difficult and important jobs in society today. The defendant rightfully apologized in court today for tarnishing their badge.”
U.S. Attorney Glassman commended the investigation of this case by the FBI. The case is being prosecuted by Criminal Chief Kenneth L. Parker and Franklin County Prosecutor Ron O’Brien, who has been designated as a Special Assistant United States Attorney.
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Former Kingsmen Motorcycle Club Member Sentenced for RICO ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - James P. Kennedy, Jr. today that announced today that Sean McIndoo, who was convicted of RICO conspiracy, was sentenced to serve 41 months in prison by U.S. District Court Judge Elizabeth A. Wolford.
Assistant U.S. Attorneys Joseph M. Tripi and Brendan T. Cullinane, who handled the case, stated that the defendant was a member of the Kingsmen Motorcycle Club (KMC), a criminal organization which engaged in such crimes as distribution of controlled substances, maintaining premises for use and distribution of controlled substances, possession, use and sale of firearms, sales of untaxed cigarettes, and promoting prostitution. The KMC sought to preserve and protect their power, territory, and reputation through intimidation, violence, threats of violence, assaults, attempted murder and murders, and was involved in placing victims, potential victims, potential witnesses, and others in fear of the enterprise, its members, and associates, through violence and threats of violence. The defendant admitted that he possessed a firearm in furtherance of a drug trafficking crime.
McIndoo also admitted that on August 3, 2013, the defendant and other KMC members conducted a drive-by shooting targeting former KMC Springville Chapter members. On that date, the defendant and the other KMC members, from a van, fired a weapon twice; one bullet struck a vehicle parked near one of the targeted victims.
A total of 20 defendants were charged and convicted in this case, including KMC National President David Pirk and Andre Jenkins, who were each sentenced to serve multiple terms of life in prison.
Today’s sentencing is the culmination of an investigation led by the FBI’s Safe Streets Task Force. Assisting in the investigation were the FBI Knoxville, Tennessee and Jacksonville, Florida Field Offices; Homeland Security Investigations; the North Tonawanda Police Department; the Niagara County Sheriff’s Office; the Erie County Sheriff’s Office; the Buffalo Police Department; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the New York State Police; the Olean Police Department; the Lancaster Police Department; the Amherst Police Department; the Town of Tonawanda Police Department; the Niagara Frontier Transportation Authority Police; the Cattaraugus County Sheriff’s Department; and, the Hamburg Police Department.
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Former Finance Director of Greek Orthodox Archdiocese of America Pleads Guilty to EmbezzlementRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Philip R. Bartlett, the Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), announced that GEORGE PAPADAKOS, the former Director of Finance of the Greek Orthodox Archdiocese of America (“GOAA”), pled guilty today to embezzling more than $60,000 of GOAA funds for personal expenses. PAPADAKOS surrendered this morning and pled guilty before U.S. Magistrate Judge Sarah Netburn. PAPADAKOS’s case is assigned to U.S. District Judge Richard M. Berman.
U.S. Attorney Geoffrey S. Berman stated: “As Director of Finance of the Greek Orthodox Church, George Papadakos was supposed to serve his Church, not himself. As he admitted today, he embezzled from the Church for nearly six years. For this sin, he faces the possibility of time in a federal prison.”
USPIS Inspector-in-Charge Philip R. Bartlett said: “Mr. Papadakos used his position at the Greek Orthodox Archdiocese of America to steal from the hand who employed him. Today’s plea is a reflection that Karma always comes from a higher authority and justice escapes no one.”
According to the allegations in the Information to which PAPADAKOS pled guilty, as well as statements made in court during the plea proceeding:
Between 2012 and September 2017, PAPADAKOS, the Director of Finance for GOAA, repeatedly embezzled from GOAA. He charged approximately $66,499 to a corporate credit card for personal expenses without GOAA’s authorization. These personal expenditures included charges for home improvements, clothing, a gym membership, iTunes, and medical bills. During the period of PAPADAKOS’s embezzlement, GOAA was enduring financial difficulties.
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PAPADAKOS, 52, of Westfield, New Jersey, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison. Under the terms of his plea agreement, PAPADAKOS has agreed to both forfeiture and restitution of $66,499.
The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
PAPADAKOS is scheduled to appear before Judge Berman on June 24, 2019, at 11:00 a.m., in part to set a schedule for PAPADAKOS’s sentencing proceeding.
Mr. Berman praised USPIS for its outstanding work on this case and noted that the investigation is ongoing.
This matter is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Michael D. Neff and Michael C. McGinnis are in charge of the prosecution.
Former Executive Assistant Charged with Embezzling over $3 MillionRead the Press Release
BOSTON – The former executive assistant of a Waltham-based technology company was arrested today and charged in connection with a fraud and embezzlement scheme that netted over $3 million.
Shivani Patel, 37, of Vineyard Haven, was charged by criminal complaint with one count of bank fraud. Patel was arrested this morning and will appear before U.S. Magistrate Judge Judith Dein this afternoon.
As alleged in the complaint, Patel served as an executive assistant to the chief financial officer of a Waltham-based technology company. Her duties included retrieving incoming mail containing customer checks made payable to her employer, recording the checks into the payment system, and depositing the checks into her employer’s bank account.
From at least February 2012 through July 2017, Patel stole funds from her then employer for her personal use. Specifically, in February 2012, Patel created a company with a name nearly identical to that of her then employer — i.e., using her employer’s name but just adding an “s” to the end — and opened a business banking account in the sham company’s name. Thereafter, Patel allegedly began taking customer checks payable to her employer out of the mail, depositing those checks into the sham company’s bank account, and concealing her embezzlement by making false entries in her employer’s billing system. In total, Patel embezzled approximately $3,076,369 from her former employer.
The charge of bank fraud provides for a sentence of no greater than 30 years in prison, five years of supervised release, a fine of $1 million, restitution and forfeiture. 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; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorneys Justin D. O’Connell of Lelling’s Securities and Financial Fraud Unit is prosecuting the case.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a doubt in a court of law.
Former Corrections Counselor Pleads Guilty to Accepting Bribes from Federal PrisonersRead the Press Release
Natchez, Miss. – Kellie Fuqua, 57, of Roxie, Mississippi, and a former corrections counselor at the Adams County Correctional Center, pled guilty today before Senior U.S. District Judge David Bramlette III to accepting bribes from federal prisoners in exchange for introducing contraband into the facility, announced U.S. Attorney Mike Hurst and James Boyersmith, Special Agent in Charge of the Department of Justice Office of the Inspector General Miami Field Office.
Fuqua was charged in a one-count Criminal Information with being a public official receiving money in exchange for providing contraband to federal prisoners.
Fuqua is scheduled to be sentenced by Judge Bramlette on October 1, 2019, at 2:00 p.m. in Natchez. She faces a maximum sentence of 15 years in prison and a $250,000 fine.
This case was investigated by the Department of Justice Office of Inspector General, and is being prosecuted by Assistant United States Attorney Dave Fulcher.
Former CEO of Alaska-Based Fiber Optic Cable Company Sentenced to 5 Years in Prison for Defrauding Investors of More Than $270 MillionRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that ELIZABETH ANN PIERCE, the former chief executive officer (“CEO”) of Quintillion, a telecommunications company in Alaska, was sentenced today in Manhattan federal court to 60 months in prison for defrauding investors in New York of more than $270 million during her time as CEO. PIERCE previously pled guilty before U.S. District Judge Edgardo Ramos, who imposed today’s sentence.
U.S. Attorney Geoffrey S. Berman said: “Elizabeth Ann Pierce, the then-CEO of Quintillion, placed her ambition above the law. In order to raise over $270 million to build a fiber optic cable system in northern Alaska, she repeatedly lied to her investors and forged the signatures of her customers’ executives on fake revenue contracts. When her scheme started to unravel, she tried to delay exposure with yet more lies and forged documents. She will now serve five years in prison for her crime.”
According to the Complaint, the Indictment, statements made in court, and publicly available documents:
Until July 2017, PIERCE was the chief executive officer of Quintillion, a telecommunications company based in Anchorage, Alaska, that built, operates, and markets a high-speed fiber optic cable system (the “Quintillion System”). The Quintillion System consists of three segments: a subsea segment that spans the Alaskan Arctic, a terrestrial segment that runs north to south along the Dalton Highway, and a land-based network of fibers that connects the subsea and terrestrial segments. The Quintillion System is connected to the lower 48 states through other existing networks.
Between May 2015 and July 2017, PIERCE engaged in a scheme to induce two New York-based investment companies to provide more than $270 million to construct the Quintillion System by providing them with eight forged broadband capacity sales contracts and related order forms under which Quintillion would obtain guaranteed revenue once the Quintillion System was built (the “Fake Revenue Agreements”). Under the Fake Revenue Agreements, four telecommunications services companies appeared to have made binding commitments to purchase specific wholesale quantities of capacity from Quintillion at specified prices. The cumulative value of the Fake Revenue Agreements was approximately $1 billion over the life of the Fake Revenue Agreements. In reality, the Fake Revenue Agreements were completely worthless because PIERCE had forged the counterparties’ signatures.
Certain of the Fake Revenue Agreements never existed at all, while others were falsified versions of genuine revenue agreements. PIERCE fabricated the terms of the false versions of the agreements to make them more favorable to Quintillion and, therefore, more appealing to investors than the genuine agreements. For example, under one of the Fake Revenue Agreements, the customer purportedly agreed to buy from Quintillion increasing quantities of gigabits per second of capacity over a period of 20 years. That agreement, if genuine, would have assured Quintillion hundreds of millions of dollars in future revenue. In reality, negotiations over that deal had ended unsuccessfully, a fact that PIERCE never disclosed to the investors. Under another Fake Revenue Agreement, the customer purportedly agreed to buy a fixed, predetermined amount of capacity from Quintillion regardless of subsequent market conditions. In truth, that customer was not obligated to buy any capacity.
Over the course of the scheme, PIERCE tried to cover up her fraud, by continuing to negotiate with the telecommunications companies in hopes of reaching agreements identical to the ones she forged. Her efforts were mostly unsuccessful. PIERCE completely failed to secure any revenue contract with one of those telecommunications companies, and the agreements she reached with the other three companies contained less favorable terms for Quintillion than the Fake Revenue Agreements, such as a smaller mandatory capacity purchase commitment, or no commitment at all. PIERCE hid these genuine, but inferior, contracts from the investment companies and her own staff. When Quintillion and the investment companies ultimately discovered the fraud in mid-2017, they learned that the real contracts PIERCE actually negotiated would generate only a fraction of the anticipated guaranteed revenue of the Fake Revenue Agreements she forged.
As part of PIERCE’s overall scheme, she also swindled two individual investors (together, the “Individual Victims”) out of a total of $365,000. PIERCE led these individuals to believe that they would acquire ownership interests in Quintillion when, in fact, she used half of one victim’s money and all of the other victim’s investment for her own personal benefit. These individuals have received no shares and none of their money back from PIERCE.
After the terrestrial system was built, PIERCE attempted to prevent the discovery of the Fake Revenue Agreements by accelerating the timing of incoming payments under certain genuine agreements to make those payments appear to be based on the Fake Revenue Agreements. PIERCE also sought to prevent Quintillion from invoicing one of the customers that had no real contract with Quintillion by fabricating email correspondence that gave the impression she was terminating a contractual relationship, when in fact no such relationship existed. PIERCE’s scheme started to unravel when another customer disputed invoices that it received from Quintillion pursuant to one of the Fake Revenue Agreements. Shortly thereafter, in the midst of Quintillion’s internal investigation, PIERCE abruptly resigned. Quintillion self-reported PIERCE’s conduct to the Department of Justice.
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In addition to her term of imprisonment, PIERCE, age 55, now of Austin, Texas, was sentenced to three years of supervised release, and was ordered to forfeit $896,698.00 and all of her interests in Quintillion and a property in Texas. PIERCE will also be subject to a restitution order to her victims to be entered at a later date.
Mr. Berman praised the outstanding work of the Federal Bureau of Investigation.
This case is prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Sarah Lai and Vladislav Vainberg are in charge of the prosecution.
Former Bank of America Employee Sentenced for His Role in Drug Conspiracy Linked to A Mexican CartelRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that Presiliano Garcia, 33, who was convicted of misprision of a felony, was sentenced to three years probation by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Michael J. Adler, who handled the case, stated that between 2012 and March, 2016, the defendant, while working as a personal banker at Bank of America, opened approximately 36 bank accounts that were utilized by co-defendants Jose Manuel Lua-Guizar, Gerardo Ballardo, Enrique Munoz, Max Riestra, Bryant Hudson, and others, to structure deposits to funnel money from places around the United States, including Buffalo, to accounts based in California. A total of $8,359,223, composed of approximately 1,092 cash-in deposits, mostly structured between $8,000 and $9,990 and made in 15 different states, were funneled into these accounts opened by Garcia.
Approximately 205 suspect customers were identified by Bank of America as potentially linked to the defendant. Many of the suspect customers had similar naming conventions or even the same name with slight variations in spelling, last name orientation, date of birth, social security number, or domicile. Garcia knew that a structuring felony was being committed by these individuals but did not file any suspicious activity reports relating to these transactions or notify federal law enforcement of the structuring activity in order to conceal the activities of the co-defendants.
Garcia is one of seven defendants involved in an illegal narcotics operation stretching from Sinaloa, Mexico to Western New York. Law enforcement officers began investigating a sophisticated drug trafficking organization with ties to a Mexican drug cartel operating out of Los Angeles, California area in 2014. The organization shipped drug packages to various states including New York, New Jersey, Illinois, and Colorado.
To date, all seven defendants have been convicted in this case. Six of the seven defendants, including Presiliano Garcia, have been sentenced, with sentences ranging from 216 months to 33 months.
Today’s sentencing is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; Homeland Security Investigations, under the direction of Special Agent in Charge Kevin Kelly; and the Internal Revenue Service, Criminal Investigation Division, under the direction of Jonathan D. Larsen, Special Agent- in-Charge, New York Field Office. Additional assistance was provided by ICE-HSI in Los Angeles, California, and Bank of America.
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Former Bailiff Sentenced in Drug ConspiracyRead the Press Release
McALLEN, Texas – A 53-year-old former bailiff with the Hidalgo County Court at Law #6 has been ordered to federal prison for his involvement in a drug trafficking conspiracy, announced U.S. Attorney Ryan K. Patrick.
Oscar De La Cruz, of Pharr, pleaded guilty Jan. 4, 2019.
Today, U.S. District Judge Micaela Alvarez sentenced De La Cruz to a 60-month term of imprisonment to be immediately followed by three years of supervised release. In pronouncing the sentence, Judge Alvarez noted his outward appearance as a God-fearing man served as a façade for a different persona - a drug trafficker. She also stated that his abuse of authority saddened the court considering many others make great sacrifices to obtain positions of public trust to better their communities. De La Cruz, however, used it to line his pockets.
From 2016 through 2018, De La Cruz obtained law enforcement sensitive documents not generally available for the public and generated fraudulent search warrants for members of a drug trafficking organization. The warrants were ultimately given to the sources of supply to make it appear law enforcement had seized the controlled substances. The drug traffickers could then retain and steal the controlled substance from the source of supply for further distribution themselves.
Specifically, in late 2016, De La Cruz generated a fraudulent federal search warrant and forged the signature of a judge to document the fictitious seizure of cocaine. Later, he generated two more warrants documenting the seizure of a total of 36 kilograms of cocaine at addresses in Edcouch and near Austin. These search warrants allowed the theft of approximately 45 kilograms of cocaine for further distribution.
In addition to providing fraudulent warrants, De La Cruz conducted thousands of PACER queries, a database of federal court filings. He also used his position as a county court bailiff in order to access documents through Odyssey, a database of state court filings in Hidalgo County, to provide records and information to drug traffickers not available to the general public.
Several members of the drug trafficking conspiracy that De La Cruz assisted also regularly engaged in home invasions and carjackings for the purpose of stealing controlled substances.
De La Cruz was permitted to remain on bond and surrender to a U.S. Bureau of Prison facility to be determined at a later date.
The FBI and Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorneys Roberto Lopez Jr. and K. Alejandra Andrade are prosecuting the case.
Following Tragic Shooting Death of Jones County Toddler, U.S. Attorney, Sheriff Announce Free Gun Locks for CitizensRead the Press Release
MACON – Hundreds of free firearm locking devices are available for citizens, announced Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia and Jones County Sheriff R.N. “Butch” Reece. U.S. Attorney Peeler and Sheriff Reese made the joint announcement Wednesday, a week after a Jones County two-year-old was accidentally shot to death by his five-year-old sibling. The firearm used was loaded and left unattended inside the home when the children began to play with the gun and it was fired. Sheriff Reese will have 100 free gun locks available for citizens to pick up at the Jones County Sheriff’s Office beginning today, Wednesday, June 19.
“This tragic accident serves as a reminder for all gun owners to make it a practice to lock up a firearm, and potentially save a child from injury or death,” said Charlie Peeler, the U.S. Attorney. “Free gun locks are available across the Middle District. If you need one, please pick one up at one of the distribution sites. I am grateful for our law enforcement partners who have agreed to distribute the locking devices, and help protect our children.”
“We promote responsible gun ownership in Jones County. It only takes a moment to prevent a lifetime of pain and suffering at the loss of a family member. Gunlocks save lives,” said Jones County Sheriff Butch Reece.
Citizens can pick up a free gun lock at the main offices of the following law enforcement agencies across the Middle District, during their normal business hours:
- Jones County Sheriff’s Office, 123 Holmes Hawkins Dr., Gray, GA 31032
- Bibb County Sheriff’s Office, Sheriff’s South Substation (next to Texas Barbecue Grill), 5797 Houston Rd., Macon, GA 31216
- Muscogee County Sheriff’s Office, Government Center, 100 10th Ave., 4th Floor, Columbus, GA 31902
- Dougherty County Sheriff’s Office (two locations, locks available Friday, June 21, 2019), Dougherty County Jail Facility, 1302 Evelyn Ave., Albany, GA 31701 or Dougherty County Sheriff’s Office, 225 Pine Ave., Albany, GA 31701
This initiative is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.
The U.S. Attorney’s Office for the Middle District of Georgia received the firearm safety kits from Project ChildSafe. Since 1999, Project ChildSafe has partnered with more than 15,000 law enforcement agencies to distribute more than 37 million firearm safety kits nationwide. You can learn more about Project ChildSafe and the National Shooting Sports Foundation by visiting www.projectchildsafe.org.
Questions concerning this case can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Florida Men Indicted for Wire Fraud ConspiracyRead the Press Release
BOSTON – Two Florida men were indicted yesterday in federal court in Boston in connection with the fraudulent abuse of the U.S. Postal Service’s (USPS) Informed Delivery electronic notification system.
Fred Alcius and Lucson Appolon, both 34 and of Lauderhill, Fla., were each indicted on one count of conspiracy to commit wire fraud. Alcius was also charged with two counts of aggravated identity theft and Appolon was charged with one count of aggravated identity theft. The defendants and their co-conspirators, Peter Belony and Kevens Louis were previously charged by complaint on April 9, 2019. Appolon was arrested on April 16, 2019, and Alcius remains a fugitive.
Informed Delivery is a free electronic notification service provided by the USPS that gives residential and P.O. Box customers the ability to digitally preview their incoming mail and manage their packages.
According to the indictment, the defendants accessed victims’ personal identifying information, including names, Social Security numbers, dates of birth, and addresses on the “dark web” and then used the information to open credit cards in the victims’ names. The defendants then subscribed to Informed Delivery using the victims’ personal identifying information and a fraudulent email address created to track the delivery of credit cards to the victims’ residential mailboxes. The defendants subsequently intercepted the credit cards at the victims’ mailboxes before the victims could receive them and used those credit cards at ATMs and to purchase gift cards and other items for resale at Apple and Walmart, among other retail establishments. The defendants traveled to states across the East Coast in furtherance of the fraud, including Maine and Massachusetts.
On June 14, 2019, Belony pleaded guilty to conspiracy to commit wire fraud. He is scheduled to be sentenced on Sept. 19, 2019. Louis has pleaded not guilty and is awaiting trial.
The charge of conspiracy to commit wire fraud carries a sentence of no greater than 20 years in prison, up to three years of supervised release, and a fine of up to $250,000. The charge of aggravated identity theft carries a mandatory minimum sentence of two years in prison, to be served consecutive to any other sentence imposed, one year 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 Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. Assistant U.S. Attorney Mackenzie A. Queenin of Lelling’s Cybercrime Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Florida Man Sentenced for Distributing Obscene ImagesRead 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 Joseph Pachetti, 35, of Eustis, Florida, who was convicted of transportation of obscene material in commerce, was sentenced to four years probation, to include one year home detention, by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Stephanie Lamarque, who handled the case, stated that in November 2016, the defendant, living in Niagara Falls, NY, distributed obscene images to an undercover FBI agent via a peer to peer network. Investigators executed a search warrant at Pachetti’s apartment and seized various electronics. Subsequent forensic examination revealed thousands of images of child pornography and child erotica.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, Buffalo Division, under the direction of Special Agent-in-Charge Gary Loeffert.
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Federal Jury Convicts Florence Man on Gun and Drug ChargesRead the Press Release
Florence, South Carolina ---- United States Attorney Sherri A. Lydon announced today that a federal jury convicted Gregory Bernard Gibson, 44, of Florence, of being a felon in possession of a firearm and ammunition and possession with intent to distribute controlled substances. The 12-person jury unanimously found Gibson guilty on two of the three counts charged after a 1.5-day trial and a short deliberation.
The evidence presented at trial showed that a deputy from the Florence County Sheriff’s Office was patrolling in Florence when Gibson pulled out in front of him, failing to yield the right-of-way. The deputy initiated a stop on Gibson’s car. Gibson continued to drive for a short distance, making two turns before he stopped. As Gibson continued to drive, the deputy could see Gibson making furtive movements as if he were hiding something. After Gibson stopped, the deputy cautiously approached Gibson’s driver side window and proceeded with the traffic stop. While standing next to Gibson’s driver side window, the deputy smelled marijuana. Another deputy arrived on scene, and they searched the car and found a loaded firearm in the center console. Directly behind the center console, they found a backpack containing cocaine, crack cocaine, marijuana, a cutting agent, multiple plastic baggies, and a digital scale with white and green residue. Inside a void underneath the cup holder area, they found a large piece of crack cocaine and 300 tablets of methamphetamine. Federal law prohibits Gibson from possessing a firearm based on a prior federal conviction.
United States District Judge Mary G. Lewis of Columbia presided over the trial and will sentence Gibson after receiving and reviewing a presentence report prepared by the United States Probation Office. Gibson faces 15 years to life in federal prison.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Florence County Sheriff’s Office Proactive Community Enforcement (P.A.C.E.) Team. It was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. Assistant United States Attorneys Lauren Hummel and Everett McMillian of the Florence office prosecuted the case.
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Federal Judge Sentences Sex Trafficker to Life in PrisonRead the Press Release
CHICAGO — A federal judge has sentenced a man to life in prison for forcing women and children to engage in commercial sex acts in Chicago and the suburbs.
SAMUEL NICHOLS led a sex trafficking operation that violently forced at least 12 women and children into the commercial sex trade. Some of the minors were as young as 13 years old when Nichols trafficked them. Nichols kept the money earned by his victims, often taking in $1,000 per day. He openly flaunted his role as a trafficker, flashing money in Instagram posts, having “#1 Pimp” tattooed on his stomach, and using the trafficking proceeds to fund a Chicago-area rap group that posted music videos on websites such as YouTube.
Nichols, 34, formerly of Chicago, has been in law enforcement custody since October 2014. A federal jury in Chicago last year convicted Nichols on multiple counts of sex trafficking. U.S. District Judge Virginia M. Kendall on Monday sentenced Nichols to life in prison.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI. The Carol Stream Police Department provided valuable assistance.
“The depth and breadth of defendant’s crimes are horrific,” Assistant U.S. Attorneys Sarah Streicker, Michelle Petersen and Elizabeth Pozolo argued in the government’s sentencing memorandum. “While these women and children had sex with dozens of strangers, defendant took the money they earned and used it to fund his own extravagant lifestyle.”
A co-defendant, CHARLES FEARS, 26, of Chicago, pleaded guilty last year to conspiracy and sex trafficking charges. Fears is scheduled to be sentenced by Judge Kendall on July 16, 2019.
Evidence in the case revealed that Nichols and Fears carried firearms and would often hit, slap and choke the victims who worked for them, including one incident in which Nichols beat a female so badly she had to be hospitalized. The pair also supplied the victims with drugs and alcohol while coercing them to participate in the commercial sex acts.
If you believe you are a victim of sexual exploitation, you are encouraged to contact the National Center for Missing and Exploited Children by logging on to www.missingkids.com/home or by calling 1-800-843-5678. The service is available 24 hours a day, seven days a week.
Federal Grand Jury Returns Two Indictments Charging Disbarred Memphis Attorney with a total of Sixty-Seven Felony ViolationsRead the Press Release
Memphis, TN – D. Michael Dunavant, United States Attorney for the Western District of Tennessee, announced today that a federal grand jury has returned two indictments charging disbarred Memphis attorney Keith L. Dobbs, 39, with a total of sixty-seven federal felony violations. In addition, one indictment seeks the forfeiture of at least $406,533.00 in criminal proceeds.
According to the two indictments, Dobbs misappropriated funds from 26 victims who received veteran’s benefits and nine Social Security recipients. Dobbs acted as a fiduciary for these victims because they were unable to manage their benefits due to physical or mental disabilities. The indictments were the result of a joint investigation conducted by the Office of Inspector General for the Department of Veterans Affairs and the Office of Inspector General for the Social Security Administration.
The VA Indictment
The first indictment, which was filed under seal earlier this year, charges Dobbs with 26 counts of mail fraud in violation of Title 18, United States Code, § 1341. This statute makes it a crime to utilize the U.S. Mail to execute a scheme to defraud people of money or property. Each violation of the statute is punishable by up to 20 years imprisonment, a fine of up to $250,000, and a term of supervised release of no more than three years. Supervised release is a period of time in which a defendant is subject to supervision by the U.S. Probation Office following his or her release from prison. Dobbs is charged in 22 counts of the indictment with violating Title 38, United States Code, § 6101. This statute makes it a crime for someone serving as a fiduciary to embezzle benefits a veteran receives from the Department of Veterans Affairs. Each violation of this statute is punishable by up to five years imprisonment, a fine of up to $250,000, and a term of supervised release of no more than three years.
According to the mail fraud indictment, Dobbs served as a paid fiduciary for several veterans who received benefits from the Department of Veterans Affairs ("the VA"). The indictment identifies 28 veterans for whom Dobbs served as the fiduciary. The VA manages programs that provide military veterans with pensions and disability benefits. When a veteran cannot manage his or her benefits due to "injury, disease, or infirmities of advanced age," the VA will appoint a "fiduciary" who is charged with managing the veteran’s benefits. An appointed fiduciary owes the VA and the beneficiary "the duties of good faith and candor." Under the regulations governing the VA’s fiduciary program, the fiduciary must use the VA benefits for the veteran’s care and protect the benefits from loss or diversion. The program’s regulations specifically provide that a fiduciary may not commingle the veteran’s funds with "the fiduciary’s own funds or the funds of any other beneficiary for whom the fiduciary has funds under management." The regulations require a fiduciary to file an annual accounting with the VA, and the accounting must include "copies of financial institution documents reflecting receipts, expenditures, and beginning and ending balances."
According to the mail fraud indictment, Dobbs used funds embezzled from the veterans’ accounts to pay his personal obligations, such as credit card bills and rent, and to purchase items, such as a BMW automobile. The indictment also notes that Dobbs would transfer money from the veterans’ accounts into accounts he controlled and use the transferred funds for his own benefit, and transfer funds from one veteran’s account to another veteran’s account to cover shortfalls. As part of the fraud scheme, Dobbs would alter bank statements to "disguise the true nature of certain transactions he conducted using the beneficiaries’ funds in their fiduciary accounts," and create documents such as "Certificate[s] as to Securities" and "Certificate[s] of Balance on Deposit and Authorization to Disclose Financial Records," that contained false statements. The indictment lists 26 separate mailings of false and altered documents to the VA’s Louisville Fiduciary Hub between June 3, 2014 and January 8, 2016.
The indictment also charges Dobbs with embezzling and misappropriating funds coming into his control as a VA fiduciary on 22 separate occasions between April 18, 2014 and July 13, 2015.
The Social Security Indictment
A second indictment recently returned by the federal grand jury charges Dobbs with 19 counts of converting the monthly Social Security benefit payments of nine benefit recipients in violation of Title 18, United States Code, § 408(a)(5). This statute makes it a crime for a person who is receiving Social Security benefits on behalf of another person to convert those benefits to their own use. As set forth in the indictment, Dobbs had access to the beneficiaries’ funds because he served as their representative payee. A violation of this statute is punishable by up to five years imprisonment, a fine of up to $250,000, and a term of supervised release of no more than three years.
The indictment explains the particulars of the Social Security Administration’s "representative payee" program. If the Commissioner of the Social Security Administration concludes that the interest of a beneficiary would be served by paying the
beneficiary’s Social Security benefits to another person, the commissioner may certify payment of the benefits to a third person. The commissioner will make such a certification when he or she determines that a benefit recipient is "legally incompetent or mentally incapable of managing benefit payments" or "physically incapable of managing or directing the management of his or her benefit payments." The Social Security Administration refers to the third person to whom the beneficiary’s Social Security benefits are paid as a representative payee.
A representative payee must use the benefits for "the use and benefit" of the beneficiary, and keep the beneficiary’s funds separate from the representative payee’s funds. Benefit payments will be considered to have been used for the "use and benefit of the beneficiary if they are used for the beneficiary’s "current maintenance."" By regulation, the term "current maintenance" includes "costs incurred to obtain[] food, clothing, shelter, medical care, and personal comfort items" for the beneficiary. A person applying to serve as a representative payee must participate in a face-to-face interview with a representative from the Social Security Administration and must affirm that he or she will "use all payments made to me/my organization as the representative payee for the [beneficiary’s] current needs or (if not currently needed) then for the [beneficiary’s] future needs."
Dobbs applied to the Social Security Administration to be the representative payee for nine beneficiaries, and was appointed representative payee for each of the nine victims. According to the indictment, Dobbs converted the nine victims’ Social Security benefits to his own use by drawing checks on their accounts made payable to him; transferring funds from their accounts into an account that he controlled; and by using the funds in the victims’ accounts to make purchases and pay bills. The conversions charged in the indictment all involved monthly benefit payments and took place between August 9, 2015 and December 9, 2015.
U.S. Attorney D. Michael Dunavant said: "This offender used his fiduciary positions of trust to victimize vulnerable and disabled veterans for his own selfish gain and unjust enrichment. Such fraudulent schemes are particularly harmful and offensive, and must be exposed. We thank the VA OIG and the SSA OIG for their outstanding investigative work, and we look forward to achieving justice for the victims in this disturbing case."
Kim R. Lampkins, Special Agent in Charge of the VA Office of Inspector General’s Mid- Atlantic Field Office said, "The VA OIG is committed to pursuing those who have done harm to our deserving veterans and bringing those individuals to justice. VA OIG will pursue fraud, waste, and abuse that negatively affects our nation’s heroes."
Rodregas Owens, Special Agent-in-Charge of the Social Security Administration, Office of the Inspector General, Atlanta Field Division, said, "We are committed to pursuing those who violate the public trust by misusing funds while serving as representative payees for vulnerable Social Security beneficiaries. We will continue to uphold the integrity of Social Security’s programs, which are a lifeline for so many Americans and their families. I would like thank United States Attorney Michael Dunavant and his office for their support, and the Veterans Affairs, Office of the Inspector General for its partnership, in bringing this individual to justice."
This case was investigated by the U.S. Department of Veterans Affairs Office of Inspector General and the U.S. Social Security Administration Office of Inspector General.
Assistant U.S. Attorney Joe Murphy is prosecuting this case on behalf of the government.
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Effort Man Charged with Illegal Machinegun PossessionRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Tyler Lameo, age 27, of Effort, Pennsylvania, was charged on June 18, 2019, in a criminal information with the illegal possession of a machinegun.
According to United States Attorney David J. Freed, the information alleges that Lameo possessed a Glock 19 9mm bearing an auto sear from April 20, 2018 through December 18, 2018. The information also seeks forfeiture of several firearms, ammunition, and firearms components, including:
- Glock 19 9mm bearing an auto sear;
- Beretta Model ARX160 bearing a suppressor;
- Iver Johnson Model Champion 12-gauge shotgun bearing a shortened barrel;
- Chiappa Firearms Model SR-556 9mm bearing a shortened barrel;
- Sten 9mm bearing a shortened barrel;
- Partial bump stock; and
- Miscellaneous suppressor components.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Phillip J. Caraballo is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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District Man Sentenced to Four Years for Stealing Senate Information and Illegally Posting Restricted Information of U.S. Senators on WikipediaRead the Press Release
WASHINGTON – Jackson A. Cosko, 27, of Washington, D.C., was sentenced today to four years in prison for stealing Senate information and posting illegal restricted information of five U.S. Senators on the Wikipedia website.
The announcement was made by Alessio Evangelista, the Acting U.S. Attorney in this case, and Steven A. Sund, Chief of the U.S. Capitol Police.
Cosko, a former staff member of a United States Senator, pled guilty in April 2019, to five federal offenses: two counts of making public personal information; one count of computer fraud; one count of witness tampering, and one count of obstruction of justice, in the U.S. District Court for the District of Columbia. In addition to his sentence term, Cosko had to forfeit computers, cellphones, and other equipment used in the crimes, which was part of his plea agreement. He was sentenced by the Honorable Senior District Judge Thomas F. Hogan.
According to the government’s evidence, the U.S. Capitol Police began an investigation on Sept. 27, 2018, after it was determined that the Wikipedia pages of three U.S. Senators had been edited to include restricted personal information without their knowledge or permission. This information included home addresses and personal telephone numbers. These edits took place roughly contemporaneously with public – and highly publicized – Senate proceedings related to a nomination for the U.S. Supreme Court. On Oct. 1, 2018, similar information was posted on the Wikipedia pages of two additional Senators.
“Doxxing” is the act of gathering, by licit and illicit means, and posting on the Internet personal identifying information (“PII”) and other sensitive information about an individual.
Cosko admitted that he was angry about his termination in May 2018 from his employment as a computer systems administrator in the office of another U.S. Senator (described in court documents as Senator #1). As a result, from July 2018 to October 2018, he engaged in an extensive computer fraud and data theft scheme. Cosko admitted that he carried out the scheme by breaking into Senator # 1’s office on at least four occasions and accessing Senate-owned computers for the express purpose of stealing proprietary electronic information, including the personal contact information for numerous other Senators. He then published the contact information for five U.S. Senators (identified as Senators #2, 3, 4, 5, and 6) using Wikipedia and Twitter, with the intent to threaten and intimidate these five Senators and their families.
On the night of Oct. 2, 2018, according to the affidavit, a witness saw Cosko at a computer in Senator # 1’s office. The witness confronted Cosko, who left the office. Later that evening, according to the statement of offense, Cosko sent a threatening e-mail to the witness, titling it, “I own EVERYTHING” and warning that, “If you tell anyone I will leak it all.” Additionally, that evening Cosko attempted to delete electronic evidence from items including a laptop computer that he used to obtain and download the stolen data.
This case was investigated by the U.S. Capitol Police. It was prosecuted by Assistant U.S. Attorneys Demian S. Ahn, Tejpal S. Chawla, and Youli Lee. Assistance was provided by Paralegal Specialists Diane Brashears and Matthew Ruggierio and Victim/Witness Advocate Yvonne Bryant, all of the U.S. Attorney’s Office for the District of Columbia.
Couple Sentenced for Fake Facebook Claims to Provide CitizenshipRead the Press Release
McALLEN, Texas – A Mexican man and his McAllen wife have been ordered to federal prison for their respective roles in a mail and wire fraud conspiracy, announced U.S. Attorney Ryan K. Patrick.
Francisco Santiago Rodriguez-Nunez aka Marcos Rodriguez, Roberto Garcia-Rodriguez and Mario Ortiz, 34, of Mexico, and his wife, Beatriz Adriana Rodriguez, 40, of McAllen, pleaded guilty Nov. 27, 2018, to conspiracy to commit fraud. Rodriguez-Nunez also admitted to impersonating a federal agent.
Today, U.S. District Judge Micaela Alvarez imposed a total 75-month sentence for Rodriguez-Nunez, while Rodriguez was ordered to serve 41 months to be immediately followed by three years of supervised release. Not a U.S. citizen, Rodriguez-Nunez is expected to face deportation proceedings following his sentence. The couple was further ordered to pay $174,010 in restitution. Rodriguez-Nunez and Rodriguez were also ordered to forfeit $68,900 and $74,200, respectively.
At the hearing, additional evidence was presented regarding the scheme indicating the identification and responses of at least 29 victims that claimed combined losses of more than $250,000. In handing down the sentence, the court noted the couple’s predatory actions by taking advantage of undocumented aliens, most of whom had no criminal history, that believed they were obtaining status legitimately by paying the defendants.
The court further acknowledged that several were merely looking for a means to obtain status to work, while others were paying exorbitant funds to have a method to be with their children. Judge Alvarez commented on the substantial financial hardship placed on most, if not all, of the victims. Some had taken loans they will never be able to pay back due to their limited income and resources.
Beginning in November 2015 and continuing through at least July 2018, Rodriguez-Nunez and Rodriguez created fraudulent postings on Facebook. They claimed to possess the ability to obtain, generate or provide individuals with immigration status, including citizenship, to remain in the United States or state driver’s licenses.
Numerous victims responding to the advertisement would communicate with Rodriguez-Nunez who claimed to be an employee or agent of the Social Security Administration, Texas Department of Motor Vehicles, Immigration and Naturalization Services, U.S. Citizenship and Immigration Services or the Department of Homeland Security.
Victims provided the couple with money orders sent through the mail or wire transfers through Moneygram and Ace Cash Express. After receiving the money, Rodriguez-Nunez and Rodriguez would claim issues arose with the processing of the immigration status or driver’s license and they required additional money orders or wire transfers.
If victims refused to pay or stopped paying, Rodriguez-Nunez would personally impersonate federal officials threatening the victims with arrests and deportation. He also caused automated messages to be sent with similar threats. In addition, Rodriguez-Nunez would also send lewd pictures of genitalia to his victims to taunt them for their losses.
In total, authorities believe there were more than 60 victims in at least 10 different states affected by the couple’s conduct. For each of the 29 victims located, each had losses of at least $500. One victim suffered a loss of $34,000.
Rodriguez-Nunez and Rodriguez received at least $174,010 as a result of their scheme.
The couple will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Postal Inspection Service and Immigration and Customs Enforcement’s Office of Professional Responsibility conducted the investigation. Assistant U.S. Attorney Roberto Lopez Jr. is prosecuting the case.
Convicted Felon Who Discharged a Gun Sentenced to a Decade in Federal PrisonRead the Press Release
A man who possessed and discharged a hand gun was sentenced today to ten years in federal prison.
Montecarlos Marteze Gant, age 36, from Chicago, Illinoi, received the prison term after a February 6, 2019, guilty plea to being a felon in possession of a firearm.
Evidence during the case established that in April 2018, Gant possessed a Smith and Wesson .380 caliber pistol with an obliterated serial number. Gant shot one round from the gun while involved in an incident with another individual. The following day, Gant attempted to sell the gun at a pawn shop in Dubuque, but was unable to because of the gun’s obliterated serial number. The next day, police responded to a call for service at a residence in Dubuque, and attempted to speak with Gant. Gant fled from officers, and eventually officers caught him and the pistol was recovered in his pocket, loaded with one round in the chamber.
Gant’s criminal history included felony convictions for aggravated vehicular hijacking with a firearm and possession of marijuana with intent to distribute. Gant had been released from prison less than four months before the events giving rise to his federal conviction.
Gant was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Gant was sentenced to 120 months’ imprisonment, the statutory maximum sentence. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
During the sentencing hearing, the Chief Judge Strand noted that in light of his criminal history, Gant “should not have been, frankly, within the same zip code of a firearm.”
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.
Gant is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Lisa C. Williams and investigated by the Bureau of Alcohol, Tobacco, and Firearms and the Dubuque Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-1019.
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