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19 June 2019
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.
Follow us on Twitter @USAO_NDIA.
Cocaine from the Ottley Post Office in St. Thomas Cocaine from the Ottley Post Office in St. ThomasRead the Press Release
St. Thomas, USVI – Kemo Riley, 42, appeared before U.S. Magistrate Judge Ruth Miller for preliminary and detention hearings after federal agents arrested him on Friday for conspiracy and possession with intent to distribute cocaine, United States Attorney Gretchen C.F. Shappert announced. Following the hearings, Judge Miller released Riley on a $5,000 bond with conditions requiring location monitoring and home confinement outside of work.
According to court documents, on May 28, 2019, U.S. Customs and Border Protection (CBP) officers in San Juan, PR seized a parcel with approximately 515.4 grams of cocaine concealed in cellophane candy bags. The parcel was destined for Dunkirk, New York, and had been mailed from the Ottley Post Office in St. Thomas that same day. The parcel also contained a greeting card and party plates, as well as a receipt reflecting the purchase of the same from Kmart in St. Thomas. The parcel was sent back to the sender.
Surveillance video obtained from the Ottley Post Office captured a black male wearing a white shirt, black jacket, and black hat mailing the parcel. The same man appeared to be captured on Kmart surveillance video approximately one hour earlier, purchasing the items found inside the parcel with the cocaine.
The parcel was made available for pick up by the sender on June 13, 2019. The next day, Riley drove an individual to the Ottley Post Office who presented the tracking number for the parcel while Riley waited for him outside in the car. Federal agents recognized Riley to be the same man captured on surveillance video purchasing the party supplies and mailing the parcel. During an interview with agents, Riley admitted that he had, in fact, purchased those items and mailed the parcel.
United States Attorney Shappert reminds the public that an indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
This case was investigated by U.S. Customs and Border Protection, Homeland Security Investigations and United States Postal Inspection Service, and is being prosecuted by Assistant United States Attorney Meredith J. Edwards.
Charleston Man Sentenced for Meth DistributionRead the Press Release
CHARLESTON, W.Va. – A Charleston man was sentenced today to 24 months in prison for distributing methamphetamine, announced United States Attorney Mike Stuart.
Charles Washington-Robinson, 35, admitted that on four occasions in 2016 and 2017, he sold methamphetamine to a confidential informant. Each of the sales took place at or near the Charleston Town Center Mall.
“Meth sales -- not the kind of retail business that anyone wants at a shopping mall,” said United States Attorney Mike Stuart. “Great work by Charleston Police Department and my team to get Washington-Robinson off of our streets and behind bars.”
Senior United States District Judge David Faber imposed the sentence. The investigation was conducted by the Special Enforcement Unit of the Charleston Police Department. Former Assistant United States Attorney Matt Davis and Assistant United States Attorney Andrew J. Tessman handled the prosecution.
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Capital Region Anti-Gang Initiative Reaches More Than 1,600 Fifth-GradersRead the Press Release
ALBANY, NEW YORK – United States Attorney Grant C. Jaquith concluded the 2019 LEADership Project today at the Thomas O’Brien Academy of Science and Technology in Albany with seven fifth-grade students who completed the project this year, and many leaders and representatives of the participating federal, state, and local law enforcement agencies. The LEADership Project, an anti-gang initiative, reaches fifth-grade students in the Albany, Schenectady, Troy, and Lansingburgh School Districts. The project began with the Albany School District in 2011 and has grown since then.
United States Attorney Grant C. Jaquith stated: “The LEADership Project is about investing in our children, for they are the ones to whom we will be passing the future of our republic and the rule of law on which it is grounded. It is an important opportunity to tell students that we want them to excel and believe that they can, and that they should view law enforcement as a friend and supporter in their quest for success. There is no substitute for law enforcement officials speaking directly to students about the dangers of gangs, the consequences of their conduct and the effects of their choices, and the importance of positive self-esteem in achieving their goals. Reaching fifth-graders is crucial because we know that middle school can be a difficult transition period for students, where the temptation to join gangs and engage in other criminal behavior sometimes first arises. I thank our law enforcement partners for generously donating their time to this important anti-crime effort; the superintendents, teachers, and staff who dedicate their lives to helping students learn and become their best; and the students whose participation is cause for great optimism.”
This year, 27 law enforcement agencies participated in the LEADership Project, providing 123 law enforcement officials who volunteered their time in fifth-grade classrooms. They taught in over 80 classrooms, reaching more than 1,600 students. The following agencies participated:
Federal agencies
U.S. Attorney’s Office
U.S. Marshals Service
Bureau of Alcohol, Tobacco, Firearms, and Explosives
Federal Bureau of Investigation
U.S. Probation and Pretrial Services
U.S. Department of Health & Human Services, Office of the Inspector General
Social Security Administration, Office of the Inspector General
Internal Revenue Service
Homeland Security Investigations
U.S. Customs & Border Protection
Drug Enforcement Administration
Transportation Security Administration
State Agencies
New York State Police
New York State Attorney General’s Office
New York State Department of Corrections and Community Supervision
Local Agencies
Albany Police Department
Schenectady Police Department
Albany County District Attorney’s Office
Schenectady County District Attorney’s Office
Rensselaer County District Attorney’s Office
Albany County Sheriff’s Office
Rensselaer County Sheriff’s Office
Schenectady County Probation Department
Rensselaer County Probation Department
Albany County Department of Probation
Schenectady County Sheriff’s Office
Schenectady County Public Defenders’ Office
Broome County Man Pleads Guilty to Possessing Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Jack Hiller, 55, of Port Crane, New York pled guilty today to possessing child pornography, announced United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his guilty plea, Hiller admitted that in February 2018 he used the Kik computer software application to receive sexually explicit images of children, some under 12-years of age. Hiller also admitted that he knowingly stored photos and videos of child pornography on one of his electronic devices.
Hiller will be sentenced on November 4, 2019, and faces up to 20 years in prison, a term of supervised release of at least five years and up to life, and a fine of up to $250,000.00. He will also be required to register as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case is being investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Michael D. Gadarian.
This case is being prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and is designed to marshal federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Argentinian National Pleads Guilty to Attempting to Smuggle Night-Vision Rifle Scope Out of U.S.Read the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced today that Sergio Ruchtein, 51, a citizen of Argentina, pleaded guilty before U.S. District Court Judge Timothy J. Savage to the federal felony of attempting to export a defense article without a license.
At the plea hearing, the defendant admitted that in early 2019 he purchased online a Pulsar Trail XP 50 LRF Thermal Rifle Scope and attempted to smuggle the device back to his native Argentina. The rifle scope is designed to be mounted to a weapon and is capable of human-size detection at night from several hundred meters. This night vision scope is a defense article on the United States Munitions List and subject to the Department of State’s International Traffic in Arms Regulations. Accordingly, an export license is required before it is shipped or transported out of the United States.
“For good reasons, the United States monitors and regulates specialized arms equipment being exported from this country,” said U.S. Attorney McSwain. “In this case, a rifle scope designed to detect human beings under cover of darkness could pose a serious risk if it were to fall into the wrong hands. I want to thank our federal law enforcement partners for their quick work in investigating this case.”
“HSI prioritizes investigations of smugglers who circumvent laws in place to guard against the export of sensitive technologies and licensable commodities from the United States,” said Marlon Miller, Special Agent in Charge, HSI Philadelphia. “While the defendant attempted to export a night vision rifle scope to South America, there is no telling where or to whom this sensitive technology was ultimately destined.”
The case was investigated by Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Josh A. Davison.
Amherst Man Sentenced for Threatening A Local PhysicianRead 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 Gary Drago, 59, of Amherst, NY, who was convicted of witness tampering and failure to file an income tax return, was sentenced by U.S. District Judge Lawrence J. Vilardo to serve 47 months in prison. The defendant was also ordered to pay $129,793 in restitution to the victim and $19,007 restitution to the Internal Revenue Service.
Assistant U.S. Attorney Joel L. Violanti, who handled the case, stated that on May 19, 2017, the Federal Bureau of Investigation received information from an individual (Victim) regarding threats, theft, and extortionate acts that the defendant made against the Victim and the Victim’s business, a medical practice. The Victim also advised the FBI that he had a meeting with the Amherst Police Department regarding these crimes the very next day. The FBI advised the Victim to meet with the Amherst Police Department. The Victim was going to meet with the Amherst Police and the FBI to tell them about how Drago previously extorted money from the Victim’s business by using threats of physical harm and threats to ruin the Victim’s reputation.
However, an employee of the Victim overheard the conversation with the FBI, and notified the defendant. Drago then arrived at the Victim’s place of business, and told the Victim’s patients that the Victim was done seeing patients that day. Drago then then physically took the Victim from his place of business and placed the Victim in his car. Once in the car, the defendant threatened the Victim with a pistol, and slapped the Victim, telling the Victim that he heard the Victim was talking with law enforcement. Drago continued to ask the Victim who he spoke to from law enforcement, and what the Victim told them. The Victim told the defendant that he spoke to the FBI and was going to meet with the Amherst Police the next day. While continuing to threaten the Victim, the defendant told the Victim to call the FBI and tell them that everything was okay, which the Victim did. Drago then let the Victim go home.
Later that same night, the defendant repeatedly called the Victim and left messages on his voice mail threatening the Victim, and reminding the Victim not to cooperate with the FBI, or go to the meeting with the Amherst Police the next day.
Between 2013 and May 20, 2017, the defendant worked at medical business located in Williamsville, NY. During that time, Drago entered into a contract for employment with the Victim/owner and was paid a salary through the payroll. However, the defendant eventually started taking additional money from the business in the form of cash, without providing any employment service in return. When confronted by the Victim about the money, Drago would threaten force or physical harm. Specifically, the defendant took a total of $129,792 without rendering employment services. When confronted by the Victim, Drago would berate and threaten physical harm or damage to the Victim’s reputation. As a result, the Victim was fearful, and was prevented from stopping the defendant from taking the unearned money.
In addition, during the course of his employment with the Victim, Drago received recordable income. Some of this income was derived from the defendant’s threats to the Victim, and was paid by the Victim to the defendant as extortion money. The defendant received this income through payroll check payments from the victim’s business, as well as cash payments from the Victim. However, Drago failed to file federal income tax returns. For the tax years 2013 through 2016, the defendant received $294,043 in income, resulting in a loss to the Internal Revenue service of $19,007.
The sentencing is the result of an investigation by the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent-in-Charge Gary Loeffert; the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge Jonathan D. Larsen, New York Field Office; the Lancaster Police Department, under the direction of Chief William J. Karn, Jr.; the Amherst Police Department, under the direction of Chief John Askey; the New York State Police, under the direction of Major Edward Kennedy; the Erie County Sheriff’s Office, under the direction of Timothy Howard; and the Erie County District Attorney’s Office, under the direction of John Flynn.
Alleged Cryptocurrency Fraudster Arrested in Thailand, Charged in Multi-Million Dollar Investment SchemeRead the Press Release
In a criminal complaint unsealed today, a citizen of Sweden and his company were charged with securities fraud, wire fraud and money laundering in a scheme to defraud potential investors.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney David L. Anderson for the Northern District of California and Special Agent in Charge Kelly R. Jackson of the IRS Criminal Investigation’s (IRS-CI) Washington, D.C. Field Office made the announcement.
In a complaint filed March 4, 2019, and unsealed today, Roger Nils-Jonas Karlsson and his company, Eastern Metal Securities (EMS), were charged with engaging in a scheme to defraud victims of more than $11 million.
According to the complaint, since September 2006, Karlsson allegedly used websites to communicate false representations to victims in a scheme to defraud potential investors. For example, one website, www.easternmetalsecurities.com, allegedly was registered to a fictitious person and advertised shares in a product called a “Pre Funded Reversed Pension Plan” (PFRPP). The complaint alleges Karlsson used the website to invite potential investors to purchase shares of the plan for $98 per share in exchange for an eventual payout of 1.15 kilograms of gold per share, even though as of Jan. 2, 2019, 1.15 kilograms of gold was worth more than $45,000. Karlsson also allegedly advised investors that, in the unlikely event that the gold payout did not happen, he guaranteed to return to them 97 percent of the amount they invested. According to the complaint, the government found no evidence of any accounts held by Karlsson that would allow him to pay off the investors. Instead, the complaint alleges, the funds provided by victims were transferred to Karlsson’s personal bank accounts and now appear to be tied up in real estate in Thailand.
The complaint further describes how Karlsson allegedly used a second website, www.hci25.com, to make multiple false communications to potential investors. Karlsson allegedly brought the investors in HCI25 together with the investors in the PFRPP and posted multiple communications to delay the moment investors would realize there would be no payout. For example, on one occasion, Karlsson allegedly explained that a payout had not occurred because releasing so much money all at once could cause a negative effect on financial systems throughout the world. Karlsson also allegedly falsely represented that EMS was working with the U.S. Securities and Exchange Commission to prepare the way for a payout.
The complaint alleges Karlsson directed his victims to make investments using virtual currencies, such as Bitcoin. Karlsson allegedly defrauded no less than 3,575 victims of more than $11 million.
Karlsson was arrested on June 18 in Thailand. The United States is seeking his extradition to stand trial in the Northern District of California.
A criminal complaint merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Trial Attorney Catherine Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney William Frentzen are prosecuting this case with the assistance of Bridget Kilkenny. This prosecution is the result of an investigation by the IRS-CI Washington, D.C. Cyber Crimes Unit. Significant assistance was provided by the Criminal Division’s Office of International Affairs, the FBI Legal Attaché Office in Thailand, the IRS Criminal Investigation Attaché Office in Hong Kong and the Royal Thai Police Crime Suppression Division.
Alleged Cryptocurrency Fraudster Arrested in Thailand, Charged in Multi-Million Dollar Investment SchemeRead the Press Release
SAN FRANCISCO – Roger Nils-Jonas Karlsson, a citizen of Sweden, and his company, Eastern Metal Securities (EMS), were charged with securities fraud, wire fraud, and money laundering, announced United States Attorney David L. Anderson; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Washington, D.C. Field Office. In a complaint filed March 4, 2019, and unsealed today, the defendants were charged with engaging in a scheme to defraud victims of more than $11 million.
According to the complaint, since September 2006, Karlsson used websites to communicate false representations to victims in a scheme to defraud potential investors. For example, one website, www.easternmetalsecurities.com, allegedly was registered to a fictitious person and advertised shares in a product called a “Pre Funded Reversed Pension Plan” (PFRPP). The complaint alleges Karlsson used the website to invite potential investors to purchase shares of the plan for $98 per share in exchange for an eventual payout of 1.15 kilograms of gold per share, even though as of January 2, 2019, 1.15 kilograms of gold was worth more than $45,000. Karlsson also allegedly advised investors that, in the unlikely event that the gold payout did not happen, he guaranteed to them 97% of the amount they invested. According to the complaint, the government found no evidence of any accounts held by Karlsson that would allow him to pay off the investors. Instead, the complaint alleges, the funds provided by victims were transferred to Karlsson’s personal bank accounts and now appear to be tied up in real estate in Thailand.
The complaint further describes how Karlsson allegedly used a second website, www.hci25.com, to make multiple false communications to potential investors. Karlsson allegedly brought the investors in HCI25 together with the investors in the PFRPP and posted multiple communications to delay the moment investors would realize there would be no payout. For example, on one occasion, Karlsson allegedly explained that a payout had not occurred because releasing so much money all at once could cause a negative effect on financial systems throughout the world. Karlsson also falsely represented that EMS was working with the U.S. Securities and Exchange Commission to prepare the way for a payout.
The complaint alleges Karlsson directed his victims to make investments using virtual currencies, such as Bitcoin. Karlsson allegedly defrauded no less than 3,575 victims of more than $11 million.
The complaint charges Karlsson with wire fraud, in violation of 18 U.S.C. § 1343; securities fraud, in violation of 15 U.S.C. §§ 78j(b) and 78ff and 17 C.F.R. § 240.10b-5; and money laundering, in violation of 18 U.S.C. § 1957. Karlsson was arrested June 17, 2019, in Thailand. The United States is seeking his extradition to stand trial in the Northern District of California.
A criminal complaint merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, the defendant faces a maximum sentence of 20 years in prison and a maximum $250,000 fine for the wire fraud and securities fraud charges, and 20 years in prison and a $500,000 maximum fine for the money laundering charge. In addition, the court also may order an additional term of supervised release, fines or other assessments, and restitution, if appropriate. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney William Frentzen and Trial Attorney Catherine Alden Pelker of the Department of Justice Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting this case with the assistance of Bridget Kilkenny. This prosecution is the result of an investigation by the IRS-CI Washington, D.C. Cyber Crimes Unit. Significant assistance was provided by the Criminal Division’s Office of International Affairs, the FBI Legal Attaché Office in Thailand, the IRS Criminal Investigation Attaché Office in Hong Kong and the Royal Thai Police Crime Suppression Division.
8 Members of Aiken County Drug Conspiracy Plead Guilty in Federal CourtRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Kristie Scott Wise, a/k/a “Kristie Wise Scott,” Brian William Rose, Casey Kohler, Ricardo Dunbar, James Clinton Gunter, Jr., Joseph Price Langford, Scott Dylan Green, and Kerrie Edgerley, all of Aiken County, pleaded guilty in federal court to conspiracy to possess with the intent to distribute methamphetamine and heroin. United States District Judge J. Michelle Childs of Columbia accepted the guilty pleas and will impose sentence after she has received and reviewed presentence reports that will be prepared by the United States Probation Office.
Evidence presented to the court established that the Drug Enforcement Administration initiated an investigation into the narcotics distribution activities of co-defendants Kenneth Evans and Eddie Brockington. Evans is an inmate in the South Carolina Department of Corrections and Brockington is an inmate in the Georgia Department of Corrections. Through controlled purchases and other investigative techniques, agents learned that members of the conspiracy purchased and distributed large amounts of methamphetamine and/or heroin for Evans and Brockington. Some of the individuals charged were responsible for transporting multi-kilogram amounts of methamphetamine and heroin into South Carolina and then distributing the drugs throughout the state.
The maximum penalty for these offenses is imprisonment for life and/or a fine of $20,000,000.
The case was investigated by agents of the Drug Enforcement Administration and the Aiken County Sheriff's Office. Assistant United States Attorney William K. Witherspoon of the Columbia office is prosecuting the case.
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20 More Defendants Indicted in Latest Federal Surge to Reduce Violent Crime in LouisvilleRead the Press Release
LOUISVILLE, Ky. – United States Attorney Russell Coleman is marshalling federal resources in concert with state and local law enforcement partners to take violent offenders off the streets of Louisville; today he announced a federal grand jury seated in Louisville indicted 20 defendants with numerous counts of firearms violations.
This month’s federal indictments are in addition to the previous two rounds of 2019 indictments against Project Safe Neighborhoods (PSN) defendants, totaling 71 total PSN defendants this calendar year. Since the PSN surges began in Louisville in 2018 the United States Attorney’s Office has indicted 181 defendants. The charges continue to develop this year through an ongoing partnership between the Louisville Metropolitan Police Department (LMPD), the Bureau of Alcohol Tobacco & Firearms (ATF), the Office of Thomas B. Wine, Jefferson County Commonwealth’s Attorney, and multiple other law enforcement partners to maximize penalties against the most violent repeat offenders as part of the Department of Justice’s PSN initiative.
“Violent trigger pullers must be removed from the streets of our city and Commonwealth,” said U.S. Attorney Russell Coleman. “These surges evidence a sense of urgency among law enforcement at all levels to do just that. Stay tuned; more to come.”
Defendants charged in the latest surge have previously been found guilty of numerous violent and drug crimes including: heroin trafficking, domestic violence, trafficking methamphetamine, robbery, possession of an unregistered machinegun, aggravated sexual battery, abduction, and failure to register as a sex offender.
If convicted at trial, the maximum sentence for unlawfully possessing a firearm is no more than ten years in prison, a $250,000 fine, and three years of supervised release. If that firearm is possessed or used in furtherance of a drug trafficking crime, a defendant faces a mandatory minimum five years in prison in addition to the sentence received for the underlying charges, and could receive up to life in prison.
These cases are being prosecuted by Assistant United States Attorneys Ann Marie Blaylock, Tom Dyke, Larry Fentress, Alicia Gomez, Randy Ream, Erin McKenzie, Mac Shannon, David Weiser, Stephanie Zimdahl and Special Assistant United States Attorney Ebert Haegele Assistant Jefferson County Commonwealth’s Attorney with assistance from Laura Stinson, Western District of Kentucky Grand Jury Coordinator.
The cases are being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Louisville Metro Police Department, the United States Postal Inspection Service, and the United States Drug Enforcement Administration (DEA). 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 Kentucky. 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. Today’s indictments are part of the Project Safe Neighborhoods Initiative in the Western District of Kentucky.
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
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14 Southern Missouri Residents Indicted for Meth Conspiracy, Illegal FirearmsRead the Press Release
SPRINGFIELD, Mo. – Fourteen southern Missouri residents have been indicted by a federal grand jury for their roles in a conspiracy to distribute methamphetamine in Greene County, Missouri, and elsewhere. Five of the defendants were also charged with illegally possessing firearms.
Cheyenne W. Conn, 43, and Johnathon W. Arnold, also known as Jonathan, 38, both of Everton, Missouri; Laurie B. Holmes, 37, Jeremy A. Ingram, 40, Tresha R. Ahart, 29, Megan L. McNary, 25, Cassidy R. Clayton, 23, Lonnie J. Tinker, 33, and Larry E. Stapp, 39, all of Springfield, Missouri; Shelby R. Maupin, 30, of Ozark, Missouri; Ginger L. Huerta, also known as Ginger L. Gray, 39, of Halfway, Missouri; Summerlee M. Barnett, also known as Summerlee M. Lacount, 33, of Salem, Missouri; Lloyd R. Bradley, 42, of Fordland, Missouri; and Chandler B. Roberts, 20, address unknown, were charged in a 23-count indictment returned by a federal grand jury in Springfield, Mo., on Wednesday, June 12.
The federal indictment alleges that all of the defendants participated in a conspiracy to distribute 50 grams or more of methamphetamine in Greene County and elsewhere from Nov. 22, 2016, to Sept. 26, 2018.
In addition to the conspiracy, Arnold, Holmes, Stapp, and Bradley are charged in separate counts related to the possession and distribution of methamphetamine.
Conn is also charged with two counts of being a felon in possession of a firearm. The indictment alleges that Conn was in possession of a Lorcin .22-caliber semi-automatic pistol on Nov. 22, 2016. The indictment also alleges that Conn was in possession of a Ruger 9mm semi-automatic pistol on Sept. 22, 2017. Conn has two prior felony convictions for stealing and prior felony convictions for conspiracy to distribute methamphetamine, being a felon in possession of a firearm, possession of a controlled substance, and resisting arrest.
Ingram is also charged with two counts of being a felon in possession of a firearm. Ingram was allegedly in possession of a Springfield Armory 9mm semi-automatic pistol on Sept. 22, 2017, and in possession of a Springfield Armory .45-caliber semi-automatic pistol on May 10, 2018. Ingram has three prior felony convictions for possession of a controlled substance and prior felony convictions for robbery and tampering with a motor vehicle. Ingram is also charged with one count of possessing a firearm in furtherance of a drug-trafficking offense and five counts related to the distribution of methamphetamine.
Ahart is also charged with one count of being a felon in possession of firearms. The indictment alleges that Ahart was in possession of a Charter Arms .38-caliber revolver and a Taurus .38-caliber revolver with an obliterated serial number on Dec. 5, 2017. Ahart has prior felony convictions for possessing a controlled substance and failure to return rental property.
Roberts is also charged with one count of possessing a firearm in furtherance of a drug-trafficking crime. The indictment alleges that Roberts was in possession of a Mossberg .22-caliber semi-automatic pistol on Jan. 23, 2018, in furtherance of the drug-trafficking conspiracy and in furtherance of possessing methamphetamine with the intent to distribute, for which he is charged in two additional counts of the indictment. Roberts is also charged with two counts of being an unlawful user of a controlled substance (methamphetamine and marijuana) while in possession of a firearm. The indictment alleges that, in addition to the Mossberg pistol, Roberts was in possession of a J.C. Higgins .22-caliber semi-automatic rifle with no serial number on Feb. 26, 2018.
Tinker is also charged with one count of being a felon in possession of a firearm. The indictment alleges that Tinker was in possession of a Tanfoglio .22-caliber revolver on Feb. 14, 2018. Tinker has prior felony convictions for fraudulent use of a credit/debit card and stealing.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Nhan D. Nguyen and Special Assistant U.S. Attorney Jessica R. Keller. It was investigated by IRS-Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Springfield, Mo., Police Department, the Greene County, Mo., Sheriff’s Department, the Dade County, Missouri, Sheriff’s Department, and the Oldham County, Texas, Sheriff’s Department.
Organized Crime and Drug Enforcement Task Force
This case is part of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program. The OCDETF program is the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s illicit drug supply.
18 June 2019
“Sovereign Citizen” Convicted of Child Pornography CrimesRead the Press Release
GALVESTON, Texas – A 56-year-old resident of Galveston has been found guilty of receipt and possession of child pornography, announced U.S. Attorney Ryan K. Patrick.
U.S. District Judge George C. Hanks Jr. found John David Knowlton guilty following a two-day bench trial that concluded today.
During trial, the court heard testimony from multiple law enforcement officers and a Comcast custodian of records.
In February 2016, law enforcement conducted an online session using a publicly available peer-to-peer file-sharing network and located an IP address whose share folder contained images of child pornography. The IP address was associated with Knowlton’s residence.
When law enforcement searched his home, they discovered more than a dozen electronic devices belonging to him that contained child pornography. Forensic analysis found that 18 electronic devices contained thousands of images and hundreds of videos of child pornography, child erotica and artifacts of child pornography.
Knowlton had opted to represent himself at the trial with the court-appointed shadow defense counsel. He rehired that counsel this morning. Knowlton, identifying as a sovereign citizen, argued that the federal judicial system had no jurisdiction over him. The court was not persuaded by his arguments and found him guilty as charged.
Judge Hanks set sentencing for Aug. 28, 2019. At that time, Knowlton faces a minimum of five and up to 20 years for the receipt of child pornography and up to 10 years imprisonment for the possession charge.
Previously released on bond, Knowlton was taken into custody after the guilty verdict where he will remain pending sentencing.
Immigration and Customs Enforcement’s Homeland Security Investigations, Pearland Police Department and Galveston Police Department’s - Internet Crimes Against Children Task Force conducted the investigation.
Assistant U.S. Attorneys Zahra Jivani Fenelon and Kimberly Leo prosecuted the case, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Wheeling man admits to cocaine chargeRead the Press Release
WHEELING, WEST VIRGINIA – Gregory A. Voltz, Jr., of Wheeling, West Virginia, has admitted to distributing cocaine, United States Attorney Bill Powell announced.
Voltz, age 35, pled guilty to three counts of “Distribution of Cocaine Base Within 1,000 Feet of a Protected Location.” Voltz admitted to selling cocaine near Jensen Playground in Wheeling in February 2018.
Voltz faces at least one and up to 40 years incarceration and a fine of up to $2,000,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney 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.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Waupun Resident Sentenced to Prison for Filing False Tax ReturnsRead the Press Release
Matthew D. Krueger, the United States Attorney for the Eastern District of Wisconsin, announced that Kimberly Bagneski (age 48) was sentenced in federal court in Milwaukee to 12 months and one day in prison, to be followed by three years of supervised release, and ordered to pay $84,129 in restitution to the IRS.
Ms. Bagneski, who lives in Waupun, Wisconsin, previously pleaded guilty to filing false tax returns seeking fraudulent tax refunds. According to court documents, Ms. Bagneski offered to prepare and file tax returns for people for free or for a nominal fee. She then submitted returns seeking inflated tax refunds, typically by claiming fictitious business losses. Generally, Bagneski directed the IRS to send the refund to her bank account and then paid the taxpayer a fraction of the money she received. Bagneski also recruited her sister-in-law to assist her in filing the false returns in exchange for a portion of the fraudulent refund. During the years 2010 through 2015, Bagneski and her sister-in-law prepared and filed 20 false federal income tax returns, as well as 19 false state tax returns.
This matter was investigated by the criminal investigation division of the Internal Revenue Service. The prosecution was handled by Assistant United States Attorney Matthew L. Jacobs.
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Waterbury Felon Sentenced to 33 Months in Federal Prison for Trading Drugs for GunsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that PATRICK ROGERS, 39, of Waterbury, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 33 months of imprisonment, followed by three years of supervised release, for illegally possessing firearms.
According to court documents and statements made in court, ATF received information that Rogers was distributing heroin and was interested in acquiring firearms. In August and September 2018, an ATF special agent working in an undercover capacity made two controlled purchases of suspected heroin from Rogers. Rogers then agreed to provide a quantity of heroin to the undercover agent in exchange for two firearms. On September 26, 2018, Rogers was arrested after he met the undercover agent at a location in Waterbury and took possession of two firearms that he traded for 160 bags of heroin. Subsequent lab analysis confirmed that the bags contained heroin and fentanyl.
Rogers was convicted in state court in 1998 of sale of a hallucinogen or narcotic and robbery in the second degree, in 2008 of violation of a protective order, and in 2016 of possession of narcotics with the intent to distribute.
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.
Rogers has been detained since his arrest. On January 22, 2018, he pleaded guilty to one count of possession of firearms by a previously convicted felon.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the Waterbury Police Department. The case was prosecuted by Assistant U.S. Attorney Natasha Freismuth.
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.
Wabasha County Brothers Plead Guilty to Multiple Violent Home Invasion Robberies, One Resulting in Victim’s DeathRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty pleas of LENNIE DWAYNE BROOKS, 33, and RANDY LORENZO BROOKS, 24, to three counts each of interference with commerce by robbery, known as the Hobbs Act. The defendants entered their guilty pleas today before Senior Judge David S. Doty in U.S. District Court in Minneapolis, Minnesota. On May 14, 2019, co-defendants AUTUMN MARIE NICHOLS, 20, and ESPERANZA CARDENAS, 29, each pleaded guilty to one count of aiding and abetting interference with commerce by robbery.
United States Attorney Erica MacDonald stated, “These criminals admitted to a string of violent home invasions that ended in the tragic and senseless loss of life. Small business owners should never have to fear for their lives or the safety of their property, especially in their own homes. I commend the collaborative efforts of the many law enforcement agencies involved in this case that led to today’s guilty pleas. The United States Attorney’s Office is committed to clearing the streets of violent criminals and ensuring the safety of all Minnesotans.”
“We’re satisfied to see these men take responsibility for their actions,” said Acting Special Agent in Charge Kirk Howard of the ATF St. Paul Field Division. “The fear they instilled in the lives of small business owners was ruthless, excessive and intolerable. Hopefully, this guilty plea and future sentencing can bring closure to the families and communities affected. I’m proud of the exceptional work put into this investigation, successfully ending the Brooks brothers’ hostile home invasion streak. The strong partnerships with local law enforcement contributed greatly to this accomplishment and we are grateful for their efforts.”
According to the defendants’ guilty pleas and documents filed in court, LENNIE and RANDY BROOKS, on three separate occasions that are chargeable under the Hobbs Act, committed violent home invasion robberies and, in one incident, caused the death of a robbery victim. On October 6, 2018, LENNIE and RANDY BROOKS broke into a private residence located in Eden Prairie, Minnesota while NICHOLS waited in the getaway car. RANDY BROOKS held two victims at gunpoint while LENNIE BROOKS searched the house for money and valuables. During that time, one of the victims went into cardiac arrest, however neither defendant called for medical help nor was the second victim allowed to call for help. The defendants stole approximately $50,000 in cash, which was the business proceeds of the Shuang Hur Asian Markets located in Minneapolis and St. Paul, Minnesota. The defendants admitted that the victim who went into cardiac arrest died as a direct result of the home invasion.
On September 23, 2018, LENNIE and RANDY BROOKS broke into a private residence located in Ellendale, Minnesota while CARDENAS waited in the getaway car. RANDY BROOKS held two victims at gunpoint while LENNIE BROOKS searched the house for money and valuables. The defendants stole approximately $40,000 in cash, which was the business proceeds of the Holland Auction Company located in Ellendale, Minnesota.
On August 16, 2018, LENNIE and RANDY BROOKS broke into a private residence located in Waite Park, Minnesota. RANDY BROOKS held two victims at gunpoint while LENNIE BROOKS searched the house for money and valuables. The defendants stole approximately $180,000 in jewelry and gemstones, which belonged to Trisko Jewelry located in Waite Park, Minnesota.
The Hobbs Act, passed by Congress in 1946, prohibits actual or attempted robbery affecting interstate or foreign commerce “in any way or degree.”
This case is the result of a multi-jurisdictional investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), Eden Prairie Police Department, Steele County Sheriff’s Office, Woodbury Police Department, Cottage Grove Police Department, St. Paul Police Department, Minneapolis Police Department, Winona Police Department, Wabasha Police Department, Prior Lake Police Department, Southeast Minnesota Violent Crime Enforcement Team, St. Croix County Sheriff’s Office, Wabasha County Sheriff’s Office, Washington County Sheriff’s Office, Olmstead County Sheriff’s Office, Winona County Sheriff’s Office, Waite Park Police Department, Owatonna Police Department, Nisswa Police Department, Goodhue County Sheriff’s Office, Red Wing Police Department, Mason City Police Department, Freeborn County Sheriff’s Office, and the Albert Lea Police Department. This case was brought as part of Project Safe Neighborhoods (“PSN”), an initiative that brings together federal, state and local law enforcement to combat violent crime and make neighborhoods safer for everyone.
Assistant United States Attorney Jeffrey S. Paulsen is prosecuting the case.
Defendant Information:
LENNIE DWAYNE BROOKS, 33
Zumbro Falls, Minn.
Convicted:
- Interference with Commerce by Robbery, 3 counts
RANDY LORENZO BROOKS, 24
Wabasha, Minn.
Convicted:
- Interference with Commerce by Robbery, 3 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Woman Formerly of from Red River, N.m. Pleads Guilty to Failure to File Tax Returns Reporting Business IncomeRead the Press Release
ALBUQUERQUE – Lisa Dawn Curry, 48, formerly of Red River, N.M., pleaded guilty in federal court yesterday to 2 counts of failure to file tax returns reporting income she earned from her business.
According to Curry’s plea agreement, she operated a company in Red River, N.M. She used money from the company’s operating account to pay her own personal expenses. Under federal tax law, she needed to file income tax returns in 2012 and 2013 because she earned more than the minimum gross income. However, Curry did not file returns for those years although she knew of the filing requirement because she properly filed returns in previous years.
Curry is out of custody awaiting sentencing at a future date. She faces a sentence of 5 years’ probation and has agreed to pay restitution in an estimated amount of $72,840.
The Internal Revenue Service Criminal Investigation investigated this case with assistance from the New Mexico Taxation and Revenue Department, the Red River Marshal’s Office, and 16th Judicial Circuit State Attorney’s Office in Key West, Fla. Assistant U.S. Attorney Holland S. Kastrin is prosecuting the case.
Two New Jersey Men Charged with Robbery of Convenience StoreRead the Press Release
TRENTON, N.J. – Two men have been charged in connection with the armed robbery of a convenience store in Mercer County, New Jersey, on June 16, 2019, U.S. Attorney Craig Carpenito announced today.
Omar Feliciano-Estremera, 42, and Gabriel Lopez, 31, both of Trenton, are each charged by complaint with one count of Hobbs Act robbery and will make their initial court appearances before U.S. Magistrate Judge Douglas E. Arpert in Trenton federal court on a date to be determined.
According to the complaint:
Lopez entered a convenience store in Hamilton Township, New Jersey, displayed a black handgun to the clerk and demanded the money in the store’s register. Law enforcement officers conducting surveillance observed Lopez exiting the convenience store immediately after the robbery and heading toward a minivan belonging to Feliciano-Estremera, who was a suspect in an earlier robbery in which his minivan was captured on camera while acting as the getaway car.
In addition to the surveillance, law enforcement officers were tracking Feliciano-Estremera’s cellular phone. As Lopez exited the convenience store, he observed law enforcement vehicles with their lights activated and he ran to a nearby wooded area. Law enforcement officers pursued and apprehended Lopez, who resisted arrest and threatened to shoot an officer. Officers then placed Feliciano-Estremera, who was seated in the driver’s seat of the minivan, under arrest as the suspected getaway driver. Law enforcement officers searched the wooded area through which Lopez had fled and recovered a black handgun matching the description of gun Lopez allegedly carried during the robbery. The convenience store’s video camera also captured Lopez conducting the robbery.
The count of Hobbs Act robbery carries a maximum potential sentence of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the Hamilton Police Department, under the direction of Chief James M. Stevens; and the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo J. Onofri, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Alexander Ramey of the Criminal Division in Trenton.
The charge and allegations in the complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Two Men Found Guilty of Robbing A North Minneapolis Convenience StoreRead the Press Release
United States Attorney Erica H. MacDonald announced the conviction of MARIO MARTELL SPENCER, 34, AHMED OSMAN FARAH, 32, for the armed robbery of a Minneapolis convenience store. Following a six-day trial before U.S. District Judge Wilhelmina M. Wright, the jury found SPENCER and FARAH guilty on all counts.
“Mr. Spencer and Mr. Farah carried out the armed robbery of a small business located in a residential neighborhood,” said U.S. Attorney Erica MacDonald. “This guilty verdict is a just result and a demonstration of our commitment to keeping our neighborhoods and communities safe from violent criminals.”
As proven at trial, on March 23, 2018, around 8:30 p.m., SPENCER and FARAH entered Penn-Wood Market, located on Glenwood Avenue in Minneapolis, wearing masks and gloves. SPENCER held two employees at gunpoint while FARAH took money from the cash registers and stole one employee’s cell phone. The two defendants fled the scene in a vehicle. A witness called 911 as the robbery was in progress and, shortly after, responding officers were able to locate the defendants’ unoccupied vehicle, which had crashed into a garage. Law enforcement set up a perimeter around the area of the crash site and, following a foot chase, were able to apprehend and arrest FARAH. With the assistance of a K9, law enforcement officers initiated a systematic search inside the perimeter and eventually found SPENCER hiding on top of the roof of a garage.
This case is the result of an investigation conducted by the Minneapolis Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state, and local law enforcement to combat violent crime.
Assistant U.S. Attorneys Nathan H. Nelson and Justin A. Wesley tried the case.
Defendant Information:
MARIO MARTELL SPENCER, 34
St. Paul, Minn.
Convicted:
- Interference with commerce by robbery, 1 count
- Using, carrying, and brandishing a firearm during and in relation to a crime of violence, 1 count
AHMED OSMAN FARAH, 32
Maplewood, Minn.
Convicted:
- Interference with commerce by robbery, 1 count
- Using, carrying, and brandishing a firearm during and in relation to a crime of violence, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Twenty-Seven Defendants Charged in Takedown of Newark Open-Air Drug MarketRead the Press Release
NEWARK, N.J. – Twenty-seven people have been charged for their roles as members, associates, and suppliers of a Newark-based drug-trafficking organization that distributed heroin and crack cocaine and used firearms to protect their illegal operation, U.S. Attorney Craig Carpenito announced today.
The charges and arrests resulted from a long-running wiretap investigation led by the U.S. Attorney’s Office and the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, in conjunction with the Newark Police Department and the U.S. Drug Enforcement Administration. The charges include operating a continuing criminal enterprise and conspiracies to distribute one kilogram of heroin and/or 280 grams of crack cocaine. (See chart below.)
The 20 defendants arrested today are scheduled to appear this afternoon before U.S. Magistrate Judge James B. Clark III. Five defendants were already in custody on state charges and two remain at large.
“These defendants are charged with orchestrating and participating in a massive drug trafficking organization that pumped heroin and crack cocaine into the streets of Newark and surrounding areas virtually non-stop,” U.S. Attorney Carpenito said. “As alleged in the complaint, they operated out of an abandoned home in Newark that they turned into a fortress protected by illegal firearms, which featured a fast-food-style drive-through window for the quick and easy sale of these dangerous drugs. We are proud to work with our federal, state, and local partners in targeting criminal organizations like these and bringing the participants to justice.”
“With these types of multi-agency partnerships we can rid the city of some of these criminal gangs that make the neighborhoods they operate unsafe and damage the reputation of the city,” Newark Public Safety Director Anthony F. Ambrose said. “The criminals perpetuate the narrative that Newark is crime-ridden when, in fact, most areas are safe, and the overwhelming majority of people are hard-working folks who want to see their streets cleansed of the criminal element. I’d like to thank U.S. Attorney Craig Carpenito and all of our other federal partners for putting their resources into smashing these rings.”
“These arrests are the culmination of the diligent investigative work conducted by our ATF special agents, in cooperation with our federal, state and local partners, who were tasked with targeting violent offenders in the South District of Newark and beyond,” ATF Newark Field Division Special Agent in Charge Charlie J. Patterson said. “These arrests should serve as a warning to those who choose to plague and flood their communities with violence and drugs. Their engagement in such crimes will bring the full force of the federal justice system against them. ATF would like to especially extend our gratitude to all of our agency partners and the United States Attorney's Office for their continued partnership in combatting violent crime in the greater Newark area.”
“The members of this drug organization went to great lengths to protect their illegal activity by turning an abandoned building into a fortress,” DEA New Jersey Division Special Agent in Charge Susan A. Gibson said. “The around the clock drug distribution of these drug dealers has been a scourge on the community. The public should know that DEA and all of our partners will continue to work to make every community safe.”
According to the documents filed in this case and statements made in court:
Several of the defendants charged today are members and associates of a Bloods-affiliated gang called the “CKarter Boys” – a play on “the Carter,” the name of the drug distribution building in the 1991 film New Jack City. As Bloods members, the CKarter Boys use the letters “CK” to signify “Crip Killer,” a sign of disrespect to their rival gang, the Crips.
The investigation revealed that the organization’s leaders – Shaheed Blake, a/k/a “Sha,” a/k/a “Sha Gotti,” a/k/a “Bruh,” and Anderson Hutchinson, a/k/a “Murda Rah” – operated a massive drug market that operated 24 hours a day, seven days a week, flooding the streets of Newark with heroin and crack cocaine and generating approximately $10,000 in daily revenue.
Blake, Hutchinson, and members of their organization sold heroin and crack cocaine to customers out of two neighboring, abandoned houses near the Newark-Irvington border. These drug dens were located in the heart of a residential community, just two blocks from the Thurgood Marshall Elementary School, an Irvington public school serving children from pre-kindergarten to fifth grade.
The organization made efforts to fortify one of the abandoned residences – 921 South 20th Street in Newark – boarding up all doors and windows until it was virtually impenetrable. The defendants accessed the residence by way of a ladder to a second-floor window, pulling the ladder inside behind them. Once inside, the defendants would sell heroin and crack-cocaine through a small hole that was cut out on a first-floor outer wall, allowing customers to purchase narcotics in exchange for currency, similar to a restaurant’s drive-through window. In a backyard shed, the defendants stored narcotics, a communal cell phone that was used to operate the business, and firearms, including a .45 caliber Hi-Point and 9mm Sig Sauer firearms, and several boxes of .45 caliber and .380 caliber ammunition that were seized during the investigation.
In addition to the charges against Blake, Hutchinson, and numerous members of their distribution operation, five of the organization’s drug suppliers were charged.
U.S. Attorney Carpenito credited special agents of ATF, under the direction of Special Agent in Charge Patterson in Newark; members of the Newark Department of Public Safety, under the direction of Public Safety Director Ambrose, and special agents of the DEA-New Jersey Division, under the direction of Special Agent in Charge Gibson, with the investigation leading to the charges.
He also thanked the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; the N.J. State Police, under the direction of Col. Patrick J. Callahan; the Irvington Police Department, under the direction of Director Tracy Bowers; the Union County Prosecutor’s Office, under the direction of First Assistant Attorney General and Acting Prosecutor Jennifer Davenport; the Belleville Police Department, under the direction of the Chief Mark Minichini; the West Orange Police Department, under the direction of Chief James Abbott; the Livingston Police Department, under the Direction of Chief Gary Marshuetz; the Nutley Police Department, under the Direction of Chief Thomas J. Strumolo; the Orange Police Department, under the direction of Director Todd Warren; and the Verona Police Department, under the direction of Chief Christopher Kiernan.
The CKarter Boys were Violent Crime Initiative (VCI) targets. The VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, N.J. State Parole, Union County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, N.J. Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
The government is represented by Assistant U.S. Attorney Desiree Grace Latzer of the U.S. Attorney’s Office’s Organized Crime and Gangs Unit in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
The charges and allegations contained in the complaints are merely accusations, and the defendants are considered innocent unless and until proven guilty.
19-175
Defendant
Age
Charges
Potential Penalties
Shaheed Blake a/k/a "Sha" a/k/a "Bruh" a/k/a "Sha Gotti"
36
Continuing Criminal Enterprise Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin
20 year mandatory minimum; up to life 10 year mandatory minimum; up to life
Anderson Hutchinson a/k/a "Murda Rah"
37
Continuing Criminal Enterprise Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin
20 year mandatory minimum; up to life 10 year mandatory minimum; up to life
Keyenn Rodgers a/k/a "Ali Bang"
49
Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin
10 year mandatory minimum; up to life
Jason Colon
37
Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin
10 year mandatory minimum; up to life
Jesse Scott a/k/a "King"
41
Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin
10 year mandatory minimum; up to life
Hanif Yarrell a/k/a "Haz"
37
Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin
10 year mandatory minimum; up to life
William Teal a/k/a "Bam"
42
Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin
10 year mandatory minimum; up to life
Daquan Lockhart a/k/a "Slim"
29
Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin
10 year mandatory minimum; up to life
**Jabaar Blake a/k/a "Jab"
39
Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin
10 year mandatory minimum; up to life
Sharif Davis a/k/a "Reek"
36
Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin
10 year mandatory minimum; up to life
Dorrell Blake a/k/a "Rell"
43
Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin
10 year mandatory minimum; up to life
**David Rogers a/k/a "Fifty"
26
Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin
10 year mandatory minimum; up to life
Roger Thomas a/k/a "Riq"
49
Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin
10 year mandatory minimum; up to life
Anthony Bowens a/k/a "Fu"
55
Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin Conspiracy to distribute 28 grams or more of crack cocaine
10 year mandatory minimum; up to life 5 year mandatory minimum; up to 40 years
Shadeasha Ford a/k/a "G-Girl" a/k/a "G-Baby"
40
Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin
10 year mandatory minimum; up to life
Aldoray McClain a/k/a "Sal"
49
Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin
10 year mandatory minimum; up to life
*Rasheem Langley a/k/a "Q"
46
Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin Conspiracy to distribute 28 grams or more of crack cocaine
10 year mandatory minimum; up to life 5 year mandatory minimum; up to 40 years
Brittney Thomas a/k/a "Queen"
30
Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin
10 year mandatory minimum; up to life
*Andrew Knox a/k/a "Mil"
50
Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin
10 year mandatory minimum; up to life
**Todd Garrett a/k/a "T"
51
Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin
10 year mandatory minimum; up to life
Majuan Green
38
Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin
10 year mandatory minimum; up to life
**Lamont Pugh a/k/a "Monty"
50
Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin
10 year mandatory minimum; up to life
Marquise O'Neal a/k/a "Mook"
51
Conspiracy to distribute 280 grams or more of crack cocaine, one kilogram or more of heroin
10 year mandatory minimum; up to life
Rayshell Goff
49
Conspiracy to distribute 28 grams or more of crack cocaine
5 year mandatory minimum; up to 40 years
Bernard Brown a/k/a "BB"
52
Conspiracy to distribute 28 grams or more of crack cocaine
5 year mandatory minimum; up to 40 years
**Paul Johnson
40
Conspiracy to distribute 28 grams or more of crack cocaine
5 year mandatory minimum; up to 40 years
Aaron Watson a/k/a "AR"
42
Distribution of 28 grams or more of crack cocaine
5 year mandatory minimum; up to 40 years
*at large
**in custody on state charges
Three Felons Are Sentenced to Prison for Gun PossessionRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney Andrew Murray announced today that three felons, prosecuted separately, have been sentenced to prison on gun possession charges. U.S. District Judge Martin Reidinger presided over the sentencing hearings.
Dennis MacAuthor Rice, 50, of Barnardsville, N.C., was sentenced to 77 months in prison and three years of supervised release. According to court records, on June 5, 2018, an undercover officer with the Buncombe County Anti-Crime Taskforce (BCAT) and another individual met with Rice. During the meeting, the undercover officer purchased from Rice a firearm with a magazine that contained three rounds of ammunition. Rice was convicted in August 2014 of Possession of a Stolen Motor Vehicle and, as a result of that conviction, he is prohibited from possessing a firearm.
Brandon Kendrick James, 33, of Greensboro, N.C., was sentenced to 57 months in prison and three years of supervised release. Court records show that on October 1, 2018, Buncombe County Sheriff’s Office deputies responded to a call regarding a dispute in Candler, N.C., in which James was involved. While on the scene, law enforcement found in the glove compartment of James’ vehicle a semi-automatic pistol loaded with one round of ammunition in the chamber. Next to the firearm was a large capacity magazine, loaded with 15 rounds of ammunition. James was previously convicted of selling cocaine, and is prohibited from possessing a firearm.
Steven Vincent Thomas White, 33, of Asheville, was sentenced to 24 months in prison and three years of supervised release. According to court records, on July 25, 2018, a deputy with the Buncombe County’s Sheriff’s Office conducted a traffic stop of the vehicle White was driving. Over the course of the traffic stop, law enforcement recovered a loaded firearm from a backpack that belonged to White, located inside the vehicle. White has a prior federal drug conspiracy conviction and is prohibited from possessing a firearm. White was on federal supervised release at the time he committed the offense.
In making todays’ announcement, U.S. Attorney Andrew Murray thanked the Buncombe County Sheriff’s Office, the Asheville Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Federal Bureau of Investigation for their assistance in their respective investigations.
Special Assistant United States Attorney (SAUSA) Alexis Solheim prosecuted all three cases. Ms. Solheim is a state prosecutor with the office of the 30th Prosecutorial District, and was assigned by District Attorney Ashley Welch to serve a SAUSA with the U.S. Attorney’s Office in Asheville. Ms. Solheim is duly sworn in both state and federal courts. The SAUSA position is a reflection of the partnership between the office of the 30th Prosecutorial District and the United States Attorney’s Office. The SAUSA position helps ensure the effective and vigorous prosecution of federal court cases that impact the counties within the 30th Prosecutorial District.
Thief River Falls Chiropractor Sentenced to 27 Months in Prison for Wire Fraud and Identity TheftRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of STEVEN RICHARD WISETH, 36, a Thief River Falls chiropractor, to 27 months in prison for wire fraud. WISETH, who pleaded guilty on January 17, 2019, was sentenced today before Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minnesota. In addressing WISETH’s fraud scheme and other similar schemes that have occurred within the chiropractic profession, Judge Schiltz stated, “There seems to be a lot of rot in that profession and deterrence seems to be much needed,” and further stated that WISETH’s fraud was a “part of his routine business practice.”
According to his guilty plea and documents filed in court, from approximately March 2013 through April 2015, WISETH, a Doctor of Chiropractic and owner of Health Quest Family Chiropractic (“Health Quest”) in Thief River Falls, Minnesota, orchestrated a scheme to defraud health insurers by submitting and causing the submission of false and fraudulent claims for chiropractic services.
WISETH’S scheme was dependent on maximizing patient volume at Health Quest, and he held promotional events where he gave away free food and drink, prizes, and gift certificates to induce current and prospective patients to visit Health Quest. After the promotional events, WISETH billed insurance companies for the provision of chiropractic services to substantial numbers of individuals who attended the events, including billing for services that were not provided. In some cases, WISETH used the personal and insurance information of attendees to bill the individuals’ insurance companies for services that were not provided, unbeknownst to the attendee. For example, on February 13, 2014, WISETH held a promotional event at Health Quest that he referred to as “ValenSpine’s Day.” WISETH submitted bills to insurance companies representing that he had treated approximately 219 patients on that day, purporting to have provided approximately 641 services.
WISETH also admitted to submitting false bills for services by misrepresenting the services that were actually provided to patients. For example, WISETH routinely submitted false bills for treatment with a “wobble chair,” which is a device intended to develop core strength. WISETH represented to insurers that the services were performed for at least eight minutes under the direct supervision of a healthcare professional when, in fact, WISETH merely stocked his clinics’ waiting rooms with wobble chairs so that patients would sit in them while waiting for their appointments.
Over the course of the two-year scheme, WISETH billed the insurance companies more than $3.1 million dollars, including bills for hundreds of treatments that were not provided or were overbilled, and the insurance companies paid WISETH and Health Quest more than $1.1 million.
This case was the result of an investigation conducted by the Minnesota Commerce Fraud Bureau and the United States Postal Inspection Service.
Assistant U.S. Attorney Amber M. Brennan prosecuted the case.
Defendant Information:
STEVEN RICHARD WISETH, 36
Thief River Falls, Minn.
Convicted:
- Wire fraud, 1 count
Sentenced:
- 27 months in prison
- One year of supervised release
- $337,195.11 in restitution
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Statement of the Department of Justice Antitrust Division on the Closing of Its Investigation of the Louisiana Health Service & Indemnity Co.–Vantage Holdings Inc. MergerRead the Press Release
Assistant Attorney General Makan Delrahim of the Antitrust Division of the U.S. Department of Justice issued the following statement today in connection with the closing of the Division’s investigation into the proposed acquisition of Vantage Holdings, Inc. (Vantage) by Louisiana Health Service & Indemnity Co. d/b/a Blue Cross Blue Shield of Louisiana (Blue Cross):
“After a thorough investigation of the proposed transaction, and after working with the Louisiana Attorney General’s office and the Louisiana Department of Insurance, the Antitrust Division determined that the combination of Blue Cross and Vantage is unlikely to result in harm to American consumers.”
In October 2018, the parties announced that Blue Cross would acquire a majority ownership in Vantage. The Louisiana Department of Insurance held a public hearing and approved the transaction in December 2018, contingent upon the Antitrust Division’s approval.
The Antitrust Division conducted a comprehensive seven-month investigation, during which it reviewed documents, analyzed data, took testimony, and interviewed industry participants. In particular, the Division analyzed whether the merger would substantially lessen competition in the sale of health plans sold to individuals on the public exchange established by the Affordable Care Act or health plans sold to individuals off of the public exchange. Multiple types of evidence indicated that the merger is unlikely to harm consumers in the sale of on-exchange or off-exchange commercial individual health insurance plans. Vantage’s membership in these products has been rapidly declining in recent years. Moreover, Vantage has set premiums significantly higher than comparable Blue Cross products, and Vantage therefore does not appear to have a competitive impact on Blue Cross product pricing. In New Orleans, for example, the price of the lowest-cost Vantage silver plan in 2019 is greater than 60 percent more expensive than the lowest-cost Blue Cross silver plan (i.e., the plan with the most widely selected level of coverage), a price gap that has widened substantially in recent years.
For these and other reasons, the Division determined that the transaction is unlikely to harm consumers and therefore closed its investigation.
St. Louis Man Sentenced to 19 Years in Prison for Three Armed CarjackingsRead the Press Release
St. Louis, MO – Deandre LaJuan Jackson, 27, of St. Louis, was sentenced to 228 months in prison for carjacking and discharging a firearm in furtherance of a crime of violence. He appeared in federal court today before U.S. District Judge Ronnie L. White.
According to court documents, over a four-hour period between May 9, 2017 and May 10, 2017, Jackson committed a series of three carjackings in the greater St. Louis area during which he either discharged or brandished a firearm. In each incident, Jackson pointed a semi-automatic pistol at the victim and demanded their vehicle and money.
The Federal Bureau of Investigation investigated the case. Assistant U.S. Attorney John Bird is handling the case for the U.S. Attorney’s Office.
Son of Victim Slain at McDonalds Drive-Through Indicted in Murder-For-Hire ConspiracyRead the Press Release
A second superseding indictment was unsealed today in federal court in Brooklyn charging Anthony Zottola, Sr., Jason Cummings, Alfred Lopez, Julian Snipe and five previously charged defendants with murder-for-hire conspiracy and related charges in connection with the fatal shooting of Zottola, Sr.’s father, Sylvester Zottola, on October 4, 2018, and the near-fatal shooting of his brother, Salvatore Zottola, on July 11, 2018. The four new defendants were arrested last night and this morning, and will be arraigned this afternoon before United States Chief Magistrate Judge Roanne L. Mann. A fifth new defendant, Branden Peterson, is a fugitive.
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 James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the superseding indictment.
“As alleged, Zottola Sr. set in motion a deadly plot to kill his father and brother, with Bloods gang members carrying out extreme acts of violence to collect a payoff for the hits,” stated United States Attorney Donoghue. “Zottola. Sr. and Shelton referred to the planned murders as ‘filming’ a movie, but thanks to the outstanding work of law enforcement, the ending of their plot will take place in a federal courthouse.”
“There is apparently no love lost between Mr. Zottola and his family members, so much so he allegedly hired members of the Bloods gang to kill his brother and father,” stated FBI Assistant Director-in-Charge Sweeney. “After several botched attempts on both mens’ lives, sadly his father did not survive the last attack. The FBI and our law enforcement partners have evidence of astounding violence in this case, and now Zottola and all his alleged hitmen will face justice.”
“The co-conspirators in this case committed acts of extreme violence, with murder as their ultimate goal,” stated NYPD Commissioner O’Neill. “I want to thank the investigators who worked on this case to bring these violent criminals to justice.”
According to court filings, Anthony Zottola, Sr. allegedly hired co-defendant Bushawn Shelton, a member of the Bloods street gang, to carry out the murders of his father and his brother. Shelton, in turn, recruited others to commit the murders. In text messages with Shelton, Zotolla, Sr. referred to the planned murder as “the filming” and the “final scene” – with his father as “the actor” and the hit man as “the director.”
In furtherance of the plot, between September 2017 and October 11, 2018, multiple violent attacks were committed against Sylvester Zottola and Salvatore Zottola. On November 26, 2017, Sylvester Zottola was menaced at gunpoint by a masked individual. On December 27, 2017, three men invaded Sylvester Zottola’s residence, struck Zottola on the head with a gun, stabbed him multiple times and slashed his throat. Zottola survived the attack.
On July 11, 2018, a gunman shot Salvatore Zottola multiple times in the head, chest and hand in front of his residence. Zottola survived the shooting. On October 4, 2018, Sylvester Zottola was shot to death in his vehicle as he waited to pick up his order at a McDonalds restaurant drive-through in the Bronx. Shortly thereafter, a co-conspirator texted Shelton, “Done.” Minutes later, Shelton texted Zottola, Sr., “Can we party today or tomorrow?” After agreeing to meet the following day, Zottola, Sr. assured Shelton that he would have his payment ready soon: “I have the cases of water in a day or so.” A photograph recovered from one of Shelton’s cellular telephones depicts a cardboard box of bottled water, as well as over $200,000 in banded currency. On October 7, 2019, Zottola, Sr. texted Shelton, “All good. Did you drink the water. Was it the right one,” to which Shelton responded, “Definitely was the right one thanks I was able to water the plants and get some of them squared away.”
Earlier this morning, law enforcement executed search warrants at three of the defendants’ residences. A handgun was recovered at Snipes’ apartment, and approximately $100,000 in U.S. currency was seized at Zottola, Sr.’s home.
Previously charged for their roles in the murder-for-hire plot and awaiting trial are Shelton, Herman Blanco, Arthur Codner, Kalik McFarlane and Himen Ross.
If convicted of conspiring to commit a murder-for-hire, the defendants face a mandatory penalty of life imprisonment, or possibly the death penalty.
The charges in the superseding indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Lindsay K. Gerdes and Kayla C. Bensing are in charge of the prosecution.
Defendants Arrested Today:
ANTHONY ZOTTOLA, SR.
Age: 41
Larchmont, New YorkJASON CUMMINGS (also known as “The Hat” and “Stacks”)
Age: 31
Brooklyn, New YorkALFRED LOPEZ (also known as “Aloe”)
Age: 36
New York, New YorkJULIAN SNIPE (also known as “Biz” and “Bizzzy”)
Age: 32
Bronx, New YorkDefendants Previously Indicted:
HERMAN BLANCO (also known as “Taliban” and “L”)
Age: 34
Bronx, New YorkARTHUR CODNER (also known as “Feddi,” “Feddi Bossgod,” and “Scary”)
Age: 31
New Hampton, New YorkKALIK MCFARLANE (also known as “Dottkom” and “Dot”)
Age: 37
Brooklyn, New YorkHIMEN ROSS (also known as “Ace” and “A Boggie”)
Age: 33
Bronx, New YorkBUSHAWN SHELTON (also known as “Shelz”)
Age: 35
Brooklyn, New YorkE.D.N.Y. Docket No. 18-CR-609 (S-2) (RJD)
Sabattus Man Pleads Guilty to Firearms OffensesRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Scott Estes, 38, of Sabattus, Maine pled guilty yesterday in U.S. District Court to possessing a stolen firearm and possessing a firearm after having been convicted of felony offenses.
According to court records, on November 13, 2017, Lewiston dispatchers received a 911 call from Estes’ then-girlfriend who was then located in a truck in which Estes has been a passenger. Estes was not in the truck at the time of the call. Estes’ girlfriend reported that Estes had a firearm and that he had pointed it at her. When Estes returned to the truck, his girlfriend remained on the call pretended to be speaking to a credit card company. She conveyed where they were and where they were going. When the police arrived, Estes fled into a nearby apartment and a seven hour stand-off ensued. The Maine State Police tactical team negotiated a peaceful end to the standoff. The firearm, a Smith & Wesson .380 semi-automatic pistol, was recovered from the apartment into which Estes had fled. Further investigation revealed that it was stolen.
Estes was also prohibited from possessing the firearm because of prior felony convictions for, among others, trafficking in prison contraband, robbery, and aggravated operating after revocation.
Estes faces up to 10 years in prison, three years of supervised release and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the Maine State Police; the Lewiston Police Department; and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Rochester Man Pleads Guilty to Fentanyl ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Jonathan Velasquez, 25, of Rochester, NY, pleaded guilty before U.S. District Judge David G. Larimer to conspiracy to distribute over 40 grams of fentanyl. The charge carries a minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney Cassie Kocher, who is handling the case, stated that the defendant conspired with others to distribute quantities of heroin throughout the Western District of New York.
The plea is the result of an investigation by the Rochester Police Department, under the direction of Chief La’Ron Singletary; the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge John B. Devito; the New York State Police, under the direction of Major Eric Laughton; United States Border Patrol, under the direction of Patrol Agent-in-Charge Jeffrey Wilson; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the Orleans County Sheriff’s Department, under the direction of Sheriff Randy Bower; and the Orleans County District Attorney’s Office, under the direction of District Attorney Joseph V. Cardone.
Sentencing is scheduled for September 5, 2019, at 11:00 p.m. before Judge Larimer.
# # # #
Reagor Dykes CFO Pleads Guilty to Wire Fraud ConspiracyRead the Press Release
Reagor Dykes Auto Group’s Chief Financial Officer, Shane Andrew Smith, pleaded guilty today to conspiracy to commit wire fraud, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
“From ‘dummy flooring’ to check-kiting, this was blatant, large-scale fraud,” said U.S. Attorney Nealy Cox. “We will hold Mr. Smith – and any other Reagor Dykes executives involved in this behavior – accountable for this breach of trust. The investigation is ongoing.”
“One of the goals of the FBI is to protect the financial services industry, and by extension, the economy. To that end, the FBI will continue to target those with an intent to defraud businesses and erode the public’s confidence,” said Matthew DeSarno, Special Agent in Charge of FBI’s Dallas Division.
In plea papers, Mr. Smith, 45, outlined the $50 million scheme, which involved defrauding the auto group’s main lender, Ford Motor Credit Company (FMCC), and concealing the fraud by cross-depositing checks across several banks, a ploy known as check-kiting.
In order to cover ballooning expenses, Mr. Smith admitted, he instructed Reagor Dykes accountants to engage in a practice they dubbed “dummy flooring.”
At his direction, accounting staff dug through records for vehicle identification numbers (VIN) of cars Reagor Dykes had already sold, then submitted new loan applications to FMCC using the old VINs – falsely indicating that the company was seeking a loan in order to repurchase the vehicle for resale. Instead of re-buying the car, however, Reagor Dykes used the ensuing loan to cover other expenses.
“Whatever it takes, we need to floor anything and everything we can even think of to cover payoffs each day,” Mr. Smith wrote in an email quoted in his factual resume.
To disguise the shortfall from the dummy flooring scheme, Mr. Smith and his employees engaged in check-kiting, artificially inflating the company’s bank account balances by cross-depositing insufficient checks.
Vendor and payroll checks that should have bounced were instead cleared during banks’ float time, the period between the deposit in the recipient account and the deduction from the payer’s account.
“The deposits we do each do [sic] will most likely cover the checks we write each other,” Mr. Smith wrote in an email.
Reagor Dykes also routinely violated a clause in its loan agreements that required them to repay FMCC within seven days of selling the vehicle for which the loan was issued, Mr. Smith admits.
Rather than cop to the delay, Reagor Dykes accountants created false paperwork, which they referred to as “dummy shucks,” in order to make it appear that the car had been sold more recently.
Mr. Smith now faces up to 20 years in federal prison. His plea agreement requires he pay a mandatory restitution of more than $50 million, equal to the total amount of loss suffered by FMCC and victim banks, and testify truthfully in any court proceedings.
The Federal Bureau of Investigation and Internal Revenue Service - Criminal Investigation Division conducted the investigation. Magistrate Judge Lee Ann Reno presided over the plea. Assistant U.S. Attorneys Joshua Frausto, Jeffrey Haag, and Sean Taylor are prosecuting the case.
Randall Keith Midkiff Sentenced to Thirty Years on Charges of Attempted Enticement of a ChildRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announces that Randall Keith Midkiff, age 37, of Mobile, Alabama, was sentenced today after earlier pleading guilty to a count charging violation of 18 USC Section 2422(b), attempted enticement of a child.
As part of his plea agreement, Midkiff admitted that he met an adult woman on an internet dating site and engaged in a sexual conversation with her. He then asked the woman if she would allow him to have sex with her 9 year old daughter. She told him no and reported him to the Washington County Sheriff’s Office. Midkiff persisted in texting and told the woman that they would marry if she would allow him to have sexual relations with the child twice a week. Midkiff was arrested when he drove to Washington County.
Midkiff additionally admitted that in 2017 he was called to repair a broken air conditioner in Mobile. At that time, he met an adult woman and began to text her. The woman disclosed that she had a 14 year old daughter. Midkiff contacted the child on Facebook and began to groom her by telling her that she was pretty. He then began to contact her through an application called Kik. During these conversations, he asked her to meet him for sex and told the child that he would pick her up and take her to some place private. He also told the child that he would move in with the mother so they could have sex at home. Simultaneously, he was telling the mother that he would move in with her and take care of her and her family.
At sentencing, the United States recommended a sentence of thirty years. Judge Callie V. S. Granade found that a thirty year sentence was appropriate, and ordered that when released from prison, Midkiff be supervised by the United States Probation Office for the rest of his life. Midkiff will be required to register as a sex offender.This case was investigated by the Washington County Sheriff’s Office, the Clarke County Sheriff's Office, and the Federal Bureau of Investigation. The case was prosecuted by the United States Attorney’s Office and AUSA Maria E. Murphy.
Pleasanton Man Sentenced to over 25 Years in Prison for Online Enticement of A Minor, Travel with Intent to Engage in Illicit Sexual Conduct, and Engaging in Illicit Sexual Conduct in A Foreign PlaceRead the Press Release
OAKLAND – David John Telles, Jr., was sentenced today to serve 302 months in prison, announced United States Attorney David L. Anderson and Homeland Security Investigations Special Agent in Charge (San Francisco and Northern California) Ryan L. Spradlin. The sentence was handed down by the Honorable Jeffrey S. White, U.S. District Judge.
After a two-week trial, Telles, 43, of Pleasanton, Calif., was convicted on October 29, 2018, of all counts in the indictment against him: online enticement of a minor; travel with intent to engage in illicit sexual conduct in a foreign place; and engaging in illicit sexual conduct in a foreign place. Evidence at trial showed that Telles spent weeks using an online game, a social media application, and his cellular telephone to groom the 14-year-old victim, who lived in England—telling her that she was his girlfriend and that he wanted to marry her. Telles then traveled to England in June 2014 with the intent to sexually abuse the victim. After arriving in England, Telles took the victim to two different hotels, where he sexually abused her over the course of two days. Police officers from the Devon and Cornwall Constabulary in England caught Telles and rescued the child.
Telles was indicted by a federal grand jury on October 13, 2013, on one count each of online enticement of a minor, in violation of 18 U.S.C. § 2422(b); traveling with intent to engage in illicit sexual conduct, in violation of 18 U.S.C. § 2423(b); and engaging in illicit sexual conduct in a foreign place, in violation of 18 U.S.C. § 2423(c).
“The United States Attorney’s Office is committed to protecting vulnerable children, in our district and throughout the world, from dangerous people who use the internet to meet and groom them, while intending to do them harm,” U.S. Attorney Anderson said.
“This and similar investigations illustrate that people like Telles really exist and target our most vulnerable members of society. While kids may seek to locate imaginative monsters under their beds, we need parents to assist us with educating their children about the real monsters that are using the internet to enter their rooms through smart phones, tablets, and laptops,” said Special Agent in Charge Spradlin. “Homeland Security Investigations is committed to public safety, which includes protecting the children and youth of our communities who are most vulnerable to online predators.”
In addition to the prison term, Judge White also sentenced Telles to a 15-year period of supervised release. While on supervised release, Telles must register as a sex offender and must participate in sex-offender-specific treatment. Judge White also ordered Telles to have no contact with the victim without permission of the probation office. The defendant will begin serving the sentence immediately, and will receive credit toward his sentence for the time he has spent in custody since his arrest by federal authorities on October 20, 2016.
Assistant U.S. Attorneys Christina McCall, Vanessa Baehr-Jones, Jonas Lerman, and Katherine Lloyd-Lovett are prosecuting the case with the assistance of Vanessa Quant, Kathleen Turner and Jessica Rodriguez-Gonzalez. The prosecution is the result of an investigation by United States Homeland Security Investigations and Devon and Cornwall Constabulary.
If members of the public have any information relevant to suspected child predators or suspicious activity, they should contact Homeland Security Investigations through the toll-free Tip Line at 1-866-DHS-2-ICE or complete the online tip form at: https://www.ice.gov/webform/hsi-tip-form. Both are staffed around the clock by investigators. Suspected child sexual exploitation or missing children may also be reported to the National Center for Missing & Exploited Children, via its toll-free 24-hour hotline, 1-800-THE-LOST.
Pittsburgh Man Charged with Possession of Multiple DrugsRead the Press Release
PITTSBURGH, PA – A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating the federal narcotics laws, United States Attorney Scott W. Brady announced today.
The two-count Indictment named Nathaniel Thomas, 38, as the sole defendant.
According to the Indictment, on May 29, 2019, in the Western District of Pennsylvania, Thomas possessed with intent to distribute 100 grams or more of acetyl fentanyl, an analogue of fentanyl; 40 grams or more of fentanyl; a quantity of heroin; and a quantity of cocaine, all of which are scheduled controlled substances.
The law provides for a total sentence of not less than 10 years to a maximum of life in prison, a fine of not more than $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Indicate relevant bond/detention information if known
Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
The Pennsylvania State Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh Felon Sentenced to 8 Years in Prison for Illegally Possessing a Gun. Ammunition and HeroinRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 3 years and one month (37 months) in prison on his conviction of possession of a firearm and ammunition by a convicted felon and possession with intent to distribute a quantity of heroin, to run consecutively with a sentence of 5 years (60 months) in prison, on his conviction of possession of a firearm in furtherance of drug trafficking, for a total of 8 years and one month (97 months) in prison and there years’ supervised release, United States Attorney Scott W. Brady announced today.
United States District Judge Cathy Bissoon imposed the sentence on Isaiah Peeples, age 27.
According to information presented to the court, on March 29, 2017, Peeples illegally possessed a firearm and ammunition after previously having been convicted of a felony, and also illegally possessed with intent to distribute a quantity of heroin.
Assistant United States Attorney Heidi M. Grogan prosecuted this case on behalf of the government.
United States Attorney Brady commended the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Peeples. This case was prosecuted under 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.