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19 June 2019
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.
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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.
Pain Foundation Founder and CEO Pleads Guilty to Fraud and Tax Charge Related to Embezzlement SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, Kristina O’Connell, Special Agent in Charge of IRS Criminal Investigation in New England, and Brian C. Turner, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that PAUL GILENO, 46, of Brewster, New York, waived his right to be indicted and pleaded guilty yesterday before U.S. District Judge Victor A. Bolden in Bridgeport to fraud and tax evasion charges stemming from a $1.5 million embezzlement scheme.
According to court documents and statements made in court, Gileno was the founder and Chief Executive Officer of the United States Pain Foundation, a Middletown-based nonprofit organization designed to find support and resources for individuals with pain issues. Between approximately 2015 and 2017, Gileno embezzled more than $1.5 million from the foundation. He also failed to pay more than $532,943 in federal income taxes on the embezzled income, and other income, for the 2015 through 2017 tax years.
Gileno pleaded guilty to one count of wire fraud, which carries a maximum term of imprisonment of 20 years, and one count of tax evasion, which carries a maximum term of imprisonment of five years. Gileno also faces a fine, an order of full restitution to both the United States Pain Foundation and Internal Revenue Service, as well as tax penalties and interest. A sentencing date is not scheduled.
Gileno is released pending sentencing.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division and Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Owasso Man Sentenced for Distributing More than 100 Kilograms of MarijuanaRead the Press Release
United States Attorney Trent Shores announced that Andrew Wade Wyrrick, 24, of Owasso, was ordered to prison today for possession with intent to distribute marijuana and to possessing a firearm in furtherance of a drug trafficking crime.
Chief U.S. District Judge John E. Dowdell sentenced Wyrrick to five years in federal prison followed by three years of supervised release.
“I am often asked whether the United States Attorney’s Office prosecutes violations of federal drug laws involving marijuana. This prosecution should answer that question. Andrew Wyrrick dealt large quantities of marijuana on Tulsa’s streets and carried a gun while doing so. His illegal operation facilitated the transportation and distribution of nearly 200 pounds of marijuana to Tulsa communities,” said U.S. Attorney Shores. “Illegal narcotics distribution operations pose a threat to the safety and security of Tulsa’s neighborhoods. There is a societal toll associated with drug addiction that accompanies large-scale distribution operations. Addiction impacts families, relationships, and even economic opportunity. The U.S. Attorney’s Office wants to keep addiction out of our community while also helping to ensure those in need of addiction related treatment are aware of local resources.”
Tulsa police officers initially made contact with Wyrrick during a suspected drug deal. When officers searched his vehicle and questioned the defendant, they found a handgun, more than $2,000, and discovered he was dealing marijuana. They also discovered that he had pleaded guilty just two days earlier to drug distribution. Wyrrick was arrested and later released on bond. Afterward, investigators monitored Wyrrick’s activity, noting that he was continuing to distribute marijuana. He was eventually arrested in April 2018 when he returned from Colorado with duffel bags full of marijuana. At his plea hearing, Wyrrick admitted to traveling to Pueblo, Colorado, in April 2018, to purchase marijuana for the purpose of selling it in northeastern Oklahoma.
Wyrrick is currently in the custody of the U.S. Marshals Service until transfer to a U.S. Bureau of Prisons facility.
The Tulsa and Owasso Police Departments and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Ryan Roberts prosecuted the case.
Orange County Psychiatrist Sentenced to More than Four Years in Federal Prison for Writing Illegal Opioid Prescriptions to Drug DealerRead the Press Release
SANTA ANA, California – A psychiatrist who practiced at a Santa Ana clinic has been sentenced to 57 months in federal prison for issuing prescriptions for dangerous and addictive narcotics, such as the opioid oxycodone, without a medical purpose, to a drug dealer in exchange for cash, knowing the drugs would be sold on the street.
Dr. Robert Tinoco Perez, 57, of Westminster, was sentenced at a hearing on Monday afternoon by United States District Judge Andrew J. Guilford. Perez pleaded guilty on February 25 to one felony count of conspiracy to distribute controlled substances.
Perez wrote prescriptions for “patients” he had never met or examined, including an undercover officer. Perez also created fictitious medical records for drug customers to provide justification for their prescriptions.
Perez used bogus patient names to write the fraudulent prescriptions to co-defendant William Jason Plumley, 41, of Huntington Beach, who sold the prescribed drugs – and also heroin and methamphetamine – to an undercover law enforcement officer. Plumley now is serving a 70-month federal prison sentence for selling prescriptions written by Perez as well as the drugs filled from Perez’s prescriptions. Plumley pleaded guilty in October 2018 to one count of conspiracy to distribute controlled substances.
The drugs prescribed illegally by Perez included oxycodone and hydrocodone (both opioid pain medications), amphetamine salts (sold primarily under the brand name Adderall), and alprazolam (sold primarily under the brand name Xanax).
Perez admitted in his plea agreement that between December 2017 and January 2018, he wrote prescriptions for fictitious patients for 240 pills of Adderall, 300 pills of Roxicodone (oxycodone), and 250 pills of Norco (hydrocodone). Perez sold the prescriptions to Plumley for at least $1,400, according to Perez’s plea agreement.
This case is part of Operation Hypocritical Oath, a series of investigations led by the Drug Enforcement Administration targeting medical professionals with criminal charges, search warrants, and administrative actions that have led to the revocation of DEA licenses.
This case is the result of an investigation by the Drug Enforcement Administration and the Costa Mesa Police Department.
The case is being prosecuted by Assistant United States Attorney Rosalind Wang of the Santa Ana Branch Office.
Nine Defendants Arrested in Raids on Townsend Street ResidencesRead 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 a federal grand jury has returned a 34 count indictment charging nine defendants with conspiracy to possess with intent to distribute, and distribution of, 28 grams or more of cocaine base and marijuana, and maintaining a drug involved premises. The charges carry a mandatory minimum penalty of five years in prison, a maximum penalty of 40 years in prison, and a $5,000,000 fine.
Named in the indictment are:• John Sanders, Jr.; • Lamario Mills, aka Rio; • Charles Washington; • Brandon Washington, aka Goldie; • Jason Jackson, aka Piff; • Carl Phillips, Jr., aka Bama; • Duane Pitts; • Vernon James; and
• Kacene BrathwaiteSome of the defendants face additional charges of possession with intent to distribute, and distribution of cocaine, crack cocaine, marijuana, and butyryl fentanyl.
Assistant U.S. Attorneys Jeremiah E. Lenihan and Joshua A. Violanti, who are handling the case, stated that according to the indictment, between August 2018 and June 2019, the defendants conspired to sell cocaine and marijuana. The defendants used the residences at 67 Townsend and 76 Townsend Street in Buffalo to manufacture, store, and distribute the cocaine and marijuana.Investigators executed search warrants at 57 Townsend Street, 67 Townsend Street, and 76 Townsend Street, and recovered quantities of cocaine and marijuana, and U.S. currency. A search warrant was also executed at Lamario Mills’s residence at the Delaware Park Apartments where a significant quantity of cocaine and marijuana was also recovered.
“These residences on Townsend Street had been the source of frequent citizen complaints,” noted U.S. Attorney Kennedy. “Today’s arrests show that those of us working in law enforcement at every level—federal, state, and local—are sensitive to the concerns of the citizens we serve. We endeavor each day to be responsive to our citizens and remain committed to working together to improve the quality of life across our community.”
The defendants were arraigned this afternoon before U.S Magistrate Jeremiah J. McCarthy and are being held pending detention hearings.
The indictment is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the New York State Police, under the direction of Major Edward Kennedy; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the Erie County District Attorney’s Office, under the direction of District Attorney John Flynn; and the Erie County Crime Analysis Center.The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Niagara Falls Man Indicted on Multiple Gun and Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned an indictment charging Tywon Stephenson, 29, of Niagara Falls, NY, with possession with intent to distribute crack cocaine and marijuana; maintaining a drug-involved premises; possession of an unregistered short-barrel shotgun; and possession of firearms in furtherance of drug trafficking crimes. The firearms charge carries a mandatory minimum penalty of 10 years in prison, which would be imposed consecutive to the maximum possible penalty of 20 years the defendant faces on the drug charges.
Assistant U.S. Attorney Jeremiah E. Lenihan, who is handling the case, stated that according to the indictment, on April 24, 2017, Niagara Falls Police Officers and ATF Special Agents executed a search warrant of the defendant’s residence on 17th Street in Niagara Falls. They recovered a 12 gauge sawed-off shotgun, loaded with six bullets; a 9mm semiautomatic handgun; plastic containers commonly used for packaging of narcotics; a scale; and a bag of suspected marijuana.
The defendant was arraigned before U.S. Magistrate Judge Michael J. Roemer and detained.
The indictment is the result of an investigation by the Niagara Falls Police Department, under the direction of Superintendent Thomas Licata, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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New Haven Man Pleads Guilty to Possessing Stolen FirearmsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ABDURRAHMAN AKHDAR, 27, of New Haven, pleaded guilty today in New Haven federal court to one count of possession of stolen firearms.
According to court documents and statements made in court, on November 30, 2015, Akhdar unlawfully possessed, stored and disposed of a Smith & Wesson .380 caliber pistol and a Colt .45 caliber pistol, both of which Akhdar had stolen.
Akhdar is scheduled to be sentenced by U.S. District Judge Janet C. Hall on September 10, 2019, at which time he faces a maximum term of imprisonment of 10 years.
Akhdar is currently incarcerated in state custody serving an unrelated prison sentence.
This matter is being investigated by the Federal Bureau of Investigation and the Hamden Police Department. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
New Haven Man Pleads Guilty to Federal Firearm Offense, Violating Supervised ReleaseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that SHAQUILLE PEARSON, 25, of New Haven, pleaded guilty yesterday in Hartford federal court to being a felon in possession of a firearm, and also admitted that he violated the conditions of his supervised release from a prior federal firearm conviction.
According to court documents and statements made in court, on May 23, 2017, Pearson was sentenced in federal court to 24 months of imprisonment, followed by three years of supervised release, for possession of a firearm by a convicted felon. He was released from federal prison in May 2018.
On March 21, 2019, after leading New Haven police officers on a foot chase, Pearson was found in possession of a loaded Taurus PT25, .25 caliber handgun.
In addition to his prior federal conviction, Pearson’s criminal history includes state convictions for burglary and for carrying a dangerous weapon.
Pearson is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson on September 9, 2019, at which time he faces a maximum term of imprisonment of 10 years for unlawfully possessing a firearm, and additional penalties for violating the conditions of his supervised release from his 2017 federal conviction.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Haven Police Department. The case is being prosecuted by Assistant U.S. Attorneys Sarah P. Karwan and Maria del Pilar Gonzalez.
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.
New Hartford-Based Professional Tax Preparer Pleads Guilty to Failing to File his Tax ReturnsRead the Press Release
SYRACUSE, NEW YORK – James Becker, age 53, of New Hartford, New York, pled guilty yesterday to four counts of failing to file his personal federal income tax returns for tax years 2012-2015, announced United States Attorney Grant C. Jaquith and James D. Robnett, Special Agent in Charge of the New York Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI).
As part of the plea, Becker admitted that he was required to file tax returns for 2012-2015 based on his gross income in those years and that he willfully failed to do so, despite being a professional tax preparer who filed hundreds of tax returns for other people.
Becker will be sentenced by United States Magistrate Judge Thérèse Wiley Dancks on September 16, 2019 and faces up to one year in prison and up to a $100,000 fine on each of the four counts to which he pled guilty. 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 was investigated by IRS-Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Michael D. Gadarian.
Nashua Man Sentenced to 144 Months for Fentanyl Trafficking and Firearms ChargesRead the Press Release
CONCORD - Grant Michallyszyn, 23, of Nashua, was sentenced to 144 months in prison on Monday for drug trafficking and firearms offenses, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, law enforcement officers executed a search warrant at a hotel room in Nashua where Michallyszyn was staying. During the search, law enforcement officers seized two handguns, nine rounds of ammunition, digital scales, and various drugs, including over 30 grams of fentanyl. Under federal law, it is unlawful to possess a firearm to protect one’s drug trafficking activities or the location from which one distributes narcotics.
Michallyszyn previously pleaded guilty on March 8, 2019.
“Armed drug traffickers present an enhanced danger to society,” said U.S. Attorney Murray. “As this case demonstrates, federal, state, and local law enforcement agencies are united in our efforts to fight the twin dangers of drug trafficking and gun violence. To protect the citizens of the Granite State, we will continue to work together to identify, prosecute, and incarcerate drug traffickers who use guns as tools of their illegal trade.”
“Drugs and violence go hand in hand, and with today’s sentence, Mr. Michallyszyn is finally being held accountable for contributing to the opioid crisis that has devastated our communities. Together, with our law enforcement partners, the FBI will continue to do everything it can to identify dangerous individuals like him who are flooding our neighborhoods with fentanyl,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division.
This matter was investigated by the FBI and Nashua Police Department, with assistance from the New Hampshire Attorney General’s office. The case was prosecuted by Assistant U.S. Attorney Anna Krasinski.
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More Than Thirty Charged Across Eastern Iowa with Federal Gun Law ViolationsRead the Press Release
Law enforcement agencies across the state continue to make communities safer by partnering to reduce gun related crimes and violence. United States Attorney Peter E. Deegan, Jr. announced charges and arrests in thirty-two recent federal gun cases at a press conference held at the United States Attorney’s Office. Deegan was joined by Donald Dockendorf, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Thomas Reinwart, Federal Bureau of Investigation, Deputy Chief Thomas Jonker, Cedar Rapids Police Department, Assistant Chief of Police Jeremy Jensen and Investigator Nicholas Schlosser, Dubuque Police Department, Deputy Marshal Nick Bonifazi, United States Marshal’s Service, Special Agent Mike Fischels, Homeland Security Investigations, and Chief Deputy John Stuelke, Captain Greg McGivern, Lieutenant Matt Pavelka, and Sergeant Dave Beuter, all of the Linn County Sheriff’s Office.
“The charges in these cases demonstrate the Department of Justice’s continued commitment to prosecuting the most dangerous offenders in our communities,” said United States Attorney Peter E. Deegan, Jr. “We will continue to work with all of our outstanding local, state, and federal law partners to investigate and prosecute those who use guns to commit crimes and those unlawfully possess guns and ammunition. Convicted felons, drug users, and those who have committed domestic violence are simply not allowed to possess guns or ammunition. Those who do violate federal law and will be held accountable.”
In the past few months, the work of federal, state, and local law enforcement agencies has resulted in the following matters in federal court in Cedar Rapids:
Jesus David Jimenez, age 33, Karondius Martea Kelly, age 20, Jamaal Baker, age 40, Charles John Cizek, age 41, Alberto Quinto-Pascual, age 36, Shevin Darnell Caston, age 28, Diamond Meshan Duckings, age 34, Jumoni Dontez Wilson, age 18, Levi Farren Miller, age 28, Rajih Rafee Donley, age 31, all of Waterloo, Iowa; John David Orr III, age 19, Johnnie Eugene Raymond, age 22, Charles Dwayne Carter, age 27, all of Dubuque, Iowa; Dustin Blake Herubin, age 23, Daytrell Washington-Roby, age 21, Raven Damien Meader Burkhow, age 24, Drew Blahnik, age 32. Fernaris Braggs, age 31, Andrew Shaw, age 31, Jontreyvius Richmond, age 21, Darnell Henderson, age 23, Mathew John Wharton, age 28, Zachary Francis Hogan, age 28, Paul Hoff, age 40, Untario McGhee, age 18, all of Cedar Rapids, Iowa; Clint Hospodarksy, age 44, of Iowa City, Iowa; Randolph High, age 62, of Stanwood, Iowa; Justin Allen Bryce Gulian, age 28, of Clarksville, Iowa; Richard Dale Olge II, age 30, of Cresco, Iowa; Gilbert Lopez, Jr., age 33, of West Union, Iowa; Edinton Grugbay Wright, age 22, of Marion, Iowa; and Brett Scott Meana, age 43, of Peosta, Iowa, have all been charged with various violations of federal law including being a prohibited person in possession of a firearm. The charges are contained in complaints and indictments filed within the last few months in United States District Court in Cedar Rapids.
The complaint and indictment against Burkhow alleges that in March and April 2019, Burkhow sold cocaine to a confidential informant on five separate occasions. On April 29, 2019, investigators executed a search warrant at Burkhow’s residence in Cedar Rapids and located fourteen guns, eight silencers, thousands of rounds of ammunition, a money counting machine, cash, and cocaine. Burkhow admitted to investigators that he uses controlled substances. The case file is 19-mj-149 and 19-cr-59.
The complaint and indictment against Washington-Roby alleges that in September 2018, Washington-Roby posted a photo of himself on Facebook holding a Glock 9mm handgun. The firearm was later seized from one of Washington-Roby’s friends while Roby and the friend were together. Washington-Roby admitted to officers that he uses marijuana and had been doing so since a young age. Also, on April 5, of this year, Washington-Roby was in a vehicle involved in a shots-fired investigation. A pistol was found in that vehicle. The case file is 19-mj-117 and 19-cr-47.
The complaint against Quinto-Pascual alleges that on May 10, 2019, Waterloo Police officers responded to a call for a man with a gunshot wound. The unresponsive male was taken to a nearby hospital. Officers later located a .32 caliber revolver that was involved in the shooting. Quinto-Pascual was identified as someone who was with the male earlier that evening. Quinto-Pascual was located and admitted to being with the male that night and that the firearm belonged to him. Quinto is alleged to have possessed a firearm with an obliterated serial number and possessed a firearm while being a drug user. This case file is 19-mj-168.
The complaints and indictments filed against McGhee, Kelly, Cizek, Braggs, High, Raymond, Caston, Henderson, Richmond, Carter, Donley, allege that these defendants were felons who were unlawfully in possession of a firearm or ammunition.
The charges filed against Orr Blahnik, Shaw, Wharton, Hogan, and Hospodarsky allege that these defendants were in possession of a firearm as a drug user.
Miller was charged in May with possessing a firearm as a felon and possessing an unregistered firearm.
The indictment against Herubin alleges that this defendant possessed with the intent to distribute marijuana near a protected location, two counts of false statement during the purchase of a firearm, and possession of a firearm as a drug user.
Jimenez, Baker, Duckings, and Gulian were each charged with possessing a firearm as a felon. Each has since pled guilty.
In March of this year, Wright and Wilson were both charged with being a drug user in possession of a firearm. Both have since pled guilty.
Meana was charged in April with possessing an unregistered firearm. He pled guilty on May 28, 2019.
Hoff was charged with possessing methamphetamine with the intent to distribute it and possession of a firearm in furtherance of a drug trafficking offense. He pled guilty on June 13, 2019.
Lopez pled guilty in June to two counts of being an unlawful user of marijuana and methamphetamine and one count of selling a stolen firearm.
If convicted on these charges, all defendants face at least a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, $100 in special assessments, and three years of supervised release following any imprisonment.
As with any criminal case, a charge is merely an accusation and each defendant is presumed innocent until and unless proven guilty.
The cases were 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.
The cases were investigated by the Bureau of Alcohol, Tobacco, and Firearms, the Federal Bureau of Investigation, the Division of Narcotics Enforcement, the Drug Enforcement Administration, the Cedar Rapids Safe Streets Task Force (composed of representatives from the Federal Bureau of Investigation, the United States Marshal Service, and the Cedar Rapids Police Department), the Waterloo Federal Task Force (composed of the Waterloo Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, and Firearms assisted by the Black Hawk County Sheriff’s Office and Cedar Falls Police Department), the Dubuque Police Department, the Linn County Sheriff’s Office, the Charles City Police Department, and the Winneshiek County Sheriff’s Office.
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Middlesex County Man Admits Heroin DistributionRead the Press Release
TRENTON, N.J. – A Middlesex County, New Jersey, man today admitted that he conspired to distribute more than 100 grams of heroin as part of a conspiracy responsible for distributing significant quantities of heroin and cocaine in the Bayshore area of Monmouth and Middlesex counties, U.S. Attorney Craig Carpenito announced.
Richard Gethers, a/k/a “Richie,” a/k/a “Bart,” 47, of Perth Amboy, New Jersey, pleaded guilty before U.S. District Judge Brian R. Martinotti in Trenton federal court to an information charging him with one count of conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin. Gethers also admitted to conspiring to distribute and possess with intent to distribute a quantity of cocaine.
In November 2018, Gethers and 14 others were charged in a federal criminal complaint with conspiracy to distribute heroin and cocaine. Gethers is the third defendant to plead guilty.
According to documents filed in this case and statements made in court:
From May 2017 to November 2018, the defendants and others engaged in a narcotics conspiracy that operated in the Raritan Bayshore region of Middlesex and northern Monmouth counties.
Through the interception of telephone calls and text messages pursuant to court-authorized wiretap orders, controlled purchases of heroin and cocaine, the use of confidential sources of information, and other investigative techniques, law enforcement learned that Gethers and co-defendants Guy Jackson and Deberal Rogers regularly obtained supplies of large quantities of heroin and cocaine for further distribution from Gregory Gillens. Lashawn Mealing, Jackson’s wife, also engaged in the conspiracy to distribute narcotics.
Members of the conspiracy sold the narcotics to other conspirators, distributors, sub-dealers, and end-users in the Bayshore area. Some of the heroin distributed by the conspiracy contains fentanyl, a dangerous synthetic opioid.
The heroin conspiracy count to which Gethers pleaded guilty carries a statutory mandatory minimum term of imprisonment of five years, a maximum potential penalty of 40 years, and a maximum fine of $5 million. Sentencing is scheduled for Oct. 8, 2019.
U.S. Attorney Carpenito credited special agents of the FBI, Newark Division, Red Bank Resident Agency, Jersey Shore Gang and Criminal Organization Task Force (including representatives from the Bradley Beach Police Department, Brick Police Department, Howell Police Department, Marlboro Police Department, Monmouth County Sheriff's Office, Toms River Police Department, and Union Beach Police Department) under the direction of Special Agent in Charge Gregory W. Ehrie; special agents of the FBI, Philadelphia Division, Scranton Resident Agency, under the direction of Special Agent in Charge Michael T. Harpster; the N.J. State Police, under the direction of Col. Patrick J. Callahan, Superintendent; the Matawan Police Department, under the direction of Chief Thomas J. Falco, Jr.; the Holmdel Police Department, under the direction of Chief John Mioduszewski; the Highlands Police Department, under the direction of Chief Robert Burton; the Monmouth County Prosecutor’s Office, under the direction of Monmouth County Prosecutor Christopher J. Gramiccioni; the Old Bridge Police Department, under the direction of Chief William A. Volkert; the Keansburg Police Department, under the direction of Chief James K. Pigott; the Hazlet Police Department, under the direction of Chief Philip Meehan; and the Aberdeen Police Department, under the direction of Chief John T. Powers, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Elisa T. Wiygul of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations against the remaining 12 defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
Defense counsel: David R. Oakley Esq., Princeton, New Jersey
Menomonee Falls Resident Pleads Guilty to Tax EvasionRead the Press Release
Matthew D. Krueger, the United States Attorney for the Eastern District, announced that John Miller Ragland (Age 71), who previously resided in Menomonee Falls, Wisconsin, appeared in federal court and pleaded guilty to attempting to evade his federal income taxes, in violation of 26 U.S.C. § 7201. Based on his guilty plea, Ragland faces up to 5 years in prison, a fine of up to $250,000, or both. Ragland has also agreed to make restitution to the IRS for the taxes he attempted to evade, which exceeded $1,000,000, as well as interest on those unpaid taxes. Ragland’s sentencing is scheduled for December 18, 2019.
According to documents filed in federal court in conjunction with Ragland’s guilty plea, during the years 2007 through 2013, Ragland operated a number of business ventures through which he acted as an independent sales representative in the United States and elsewhere, including Hong Kong, China.
As the result of his efforts on behalf of a Chinese manufacturer, Ragland received more than $3,000,000 in commissions. Ragland deposited these commissions into a bank account he maintained in Hong Kong, but failed to report any of this income on his federal income tax returns and failed to disclose the foreign bank account in Hong Kong. As the result of these actions, Ragland underreported and underpaid his federal income taxes by more than $1,000,000.
This matter was investigated by agents of the Internal Revenue Service – Criminal Investigations and is being prosecuted by Assistant United States Attorney Matthew L. Jacobs.
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Members of International Drug Trafficking Conspiracy Sentenced to PrisonRead the Press Release
Three members of an international drug trafficking organization were sentenced today in U.S. District Court in Seattle to prison terms ranging from 24-32 months for distributing more than a thousand kilograms of illegal marijuana, announced U.S. Attorney Brian T. Moran. The defendants pleaded guilty in March 2019, admitting in their plea agreements that they used money from conspirators in the Peoples Republic of China (PRC) to purchase homes in the Puget Sound area that they used for marijuana production. QIFENG LI, 41, was sentenced to 32 months in prison and 4 years of supervised release, his wife XIAMIN HUANG, 39, was sentenced to two years in prison and two years of supervised release, and brother QIWEI LI, 45, was sentenced to 30 months in prison. Of the three, QIWEI LI is the only one who is not a U.S. Citizen and faces deportation following his prison term. At the sentencing hearing U.S. District Judge John C. Coughenour said this was “an extensive and sophisticated grow operation over a multi-year period.”
“Foreign money is increasingly used to create networks of illegal and unsafe grow houses, blighting our neighborhoods and defeating the closely regulated marijuana marketplace the State of Washington pledged to create,” said U.S. Attorney Brian T. Moran. “These illegal grow houses are toxic from chemicals, pose a fire risk from jury-rigged wiring, and are targeted for violent strong-armed robberies. These defendants are forfeiting more than $1 million in cash and properties, but they are fortunate they escaped being shot or killed at one of their illegal grows.”
According to the facts admitted in the plea agreement, between July 2015 and May 2018, the conspirators purchased homes in Burien, Kent, Seattle and Tukwila, which they used exclusively for marijuana production. More than $598,000 was wired to the conspirators from China to fund the purchases. The defendants shipped more than 1,000 kilograms of marijuana to the New York City area, via FedEx, UPS, the U.S. Postal Service and a private freight forwarder. Ultimately, in an effort to streamline distribution, the conspirators established a shipping company, Pony Movers, LLC, to transport their marijuana from Western Washington to a warehouse in Little Ferry, New Jersey. The defendants then deposited the profits from the marijuana enterprise into their bank accounts in amounts less than $10,000 to avoid financial reporting requirements.
QIFENG LI and XIAMIN HUANG are U.S. citizens. QIWEI LI is a Lawful Permanent Resident who likely will face deportation following his prison term.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved.
The Investigation was led by DEA and Homeland Security Investigation (HSI). Significant investigative assistance was also provided by the Seattle Police Department and FBI.
The case is being prosecuted by Special Assistant United States Attorney Joe Silvio and Assistant United States Attorney Marie Dalton. Mr. Silvio is an attorney with Homeland Security Investigations, specially designated to prosecute cases in federal court.
Manchester Man Sentenced to 16 Months for Scheme to Defraud State of New Hampshire in Connection with Untaxed Tobacco ProductsRead the Press Release
CONCORD – United States Attorney Scott W. Murray announced today that Imtiaz Shaikh, 46, of Manchester was sentenced on Monday to 16 months in prison for participating in a wire fraud scheme to defraud the State of New Hampshire out of tobacco excise tax revenue.
According to court documents and statements made in court, Shaikh’s scheme, which he executed between 2013 and 2016, involved the purchase of tobacco products other than cigarettes, referred to as “other tobacco products” or “OTP,” from various suppliers located in Pennsylvania. Shaikh and others then transported the products to New Hampshire for sale to retail businesses. In New Hampshire, wholesale distributors of OTP must be licensed and are required to file reports identifying the quantity of OTP sold each month. New Hampshire taxes OTP at 65.03 percent of the wholesale sales price. Shaikh avoided most of the licensing and reporting requirements by conducting business through a number of shell corporations. Except for a single report filed in September 2014, Shaikh and the entities he created failed to pay the taxes owed to the State of New Hampshire. The state lost an estimated $2.8 million in tax revenue as a result of the scheme.
In addition to the sentence of imprisonment, the court ordered Shaikh to pay restitution to the State of New Hampshire in the amount of $2,845,270, and ordered that he forfeit $132,538 in seized funds.
Shaikh previously pleaded guilty to wire fraud on June 29, 2018.
“This scheme swindled the State of New Hampshire out of much needed tax revenue,” said U.S. Attorney Murray. “The Defendant’s conduct effectively made each honest taxpayer the victim of fraud. In order to protect the public treasury, we will always work closely with our law enforcement partners to identify and prosecute those who choose to engage in fraudulent conduct.”
“Hard-working taxpayers in the Granite State ended up having to foot the bill after Mr. Shaikh cheated the state out of approximately $2.8 million in tax revenue,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “He hid his income to evade taxes but failed miserably at not getting caught. No one is above the law, and the FBI will continue to work with our law enforcement partners to identify others like him who are engaging in fraudulent conduct.”
“Both the federal and state tax systems are designed to provide vital government services to our citizens. They are not slush funds for thieves and fraudsters,” said Special Agent in Charge Kristina O’Connell, IRS Criminal Investigation’s Boston Field Office. “Mr. Shaikh’s prison sentence is appropriate, given the significant tax revenues stolen from the Granite State and ultimately, its residents. IRS-CI is proud to be part of this dedicated investigative team, and to lend our financial expertise to combat OTP tax fraud.”
“The Department of Revenue Administration is committed to ensuring that no one defrauds or deprives our state and its law abiding citizens of tax revenue,” said Lindsey Stepp, Commissioner of the New Hampshire Department of Revenue Administration. “We are proud to have worked collaboratively with local, state and federal law enforcement partners to uncover this scheme and see Mr. Shaikh held accountable for his criminal actions.”
The Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigation, the New Hampshire State Police, the Manchester Police Department, the Salem New Hampshire Police Department, the Massachusetts State Police and the New Hampshire Department of Revenue Administration all participated in the investigation of this case. Assistant United States Attorney John Davis prosecuted the case.
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Man from Albuquerque Pleads Guilty to Planting Bomb Under Former Girlfriend’s BedRead the Press Release
ALBUQUERQUE – Ethan Guillen, 20, of Albuquerque, N.M., pleaded guilty in federal court yesterday to charges stemming from an incident in 2017 where he entered his former girlfriend’s home without permission and planted a bomb underneath her bed.
A grand jury previously indicted Guillen for possession of an unregistered destructive device and malicious attempt to destroy property by means of fire or explosives. According to court documents, Guillen entered his former girlfriend’s apartment home on May 18, 2017. The victim and her family were away from home attending a graduation. Guillen secretly placed an improvised explosive device under the victim’s bed consisting of a pressure cooker with black powder, napalm, and shrapnel such as nuts, and bolts inside. Guillen connected the device to a timer and electrical outlet. He set the device to explode early the next morning. However, the device did not explode as scheduled. Several days later, the victim found the device under her bed. The victim’s mother partially disassembled the device and alerted police.
Guillen is currently in custodypending sentencing at a future date.The offense of possession of the unregistered destructive device carries a sentence of up to 10 years in prison, while Guillen’s attempt to destroy property carries a sentence of from 5 to 20 years in prison.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated this case with assistance from the Albuquerque Police Department. Assistant U.S. Attorneys Howard R. Thomas and David M. Walsh are prosecuting the case.
Lowell Man Sentenced to 60 Months for Participating in Fentanyl Trafficking ConspiracyRead the Press Release
Concord – United States Attorney Scott W. Murray announced that Paul William Aaron, 33, of Lowell, Massachusetts, was sentenced to 60 months in prison on Monday for participating in a conspiracy to distribute over 400 grams of fentanyl.
According to court documents and statements made in court, the defendant bought fentanyl from a drug trafficking organization that authorities allege was led by Sergio Martinez. Aaron sometimes purchased the fentanyl on credit and then re-sold the fentanyl to various customers.
Aaron previously pleaded guilty on March 8, 2019.
“Fentanyl is a deadly drug that continues to impact lives throughout New Hampshire,” said U.S. Attorney Murray. “In order to maintain the safety of our community, we will continue to work closely with our law enforcement partners to identify, prosecute, and incarcerate those who are responsible for distributing this dangerous substance.”
“The state of New Hampshire is faced with a fentanyl crisis unlike ever before,” said DEA Special Agent in Charge Brian D. Boyle. “Those responsible for distributing lethal drugs like fentanyl to the citizens of New Hampshire need to be held accountable for their actions. DEA will aggressively pursue Drug Trafficking Organizations and individuals who are coming from out of state to distribute this poison in order to profit and destroy people’s lives. This investigation demonstrates the strength and continued commitment of our local, state and federal law enforcement partners.”
This investigation was conducted by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
The case was a collaborative investigation that involved the DEA; the New Hampshire State Police; the Hillsborough County Sheriff’s Office; the Nashua Police Department; the Massachusetts State Police; the Massachusetts Attorney General’s Office; the New Hampshire Attorney General’s Office; the Essex County District Attorney’s Office; the Internal Revenue Service; Immigration and Customs Enforcement’s Homeland Security Investigations; United States Customs and Border Protection Boston Field Office; the United States Marshals Service; the United States Department of State’s Diplomatic Security Service; the Manchester Police Department; the Lisbon Police Department; the Littleton Police Department; the Seabrook Police Department; the Haverhill (MA) Police Department; the Methuen (MA) Police Department; the Lowell (MA) Police Department; and the Maine State Police.
The case is being prosecuted by Assistant United States Attorneys Georgiana L. Konesky and Seth R. Aframe.
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Leader of International Money Laundering Organization Pleads GuiltyRead the Press Release
Assistant U. S. Attorneys Blanca Quintero and Daniel Silva (619) 546-7118
NEWS RELEASE SUMMARY – June 18, 2019
SAN DIEGO – Manuel Reynoso Garcia of Tijuana pleaded guilty in federal court today, admitting that he led an international money laundering organization that moved more than $19 million in cash from the United States to bank accounts controlled by shell companies in Mexico.
The FBI’s multi-year investigation targeted Reynoso as one of the key leaders of the Tijuana- and San Diego-based money laundering organization. Reynoso, the last of eight defendants to plead guilty in the case, admitted laundering drug trafficking proceeds on behalf of Mexican-based organizations, including the Sinaloa Cartel, through unlicensed money transmitting businesses. As a result of this case, the organization has been dismantled.
Between 2014 and 2017, the defendant admitted that the conspiracy employed various sophisticated money laundering techniques with the goals of distancing his organization, and the criminal organizations he worked for, from the transactions. Through the use of funnel accounts, bulk cash deposits by paid third-parties, unlicensed money transmitting businesses, shell companies, and various layers of transactions that provided no legitimate business purpose, nor provided any commercial value, Reynoso was able to turn cash located in various U.S. cities into funds in Mexican financial institutions – all for a fee.
The money laundering organization recruited individuals to serve as “funnel account holders” – that is, nominee accountholders in Southern California, primarily in San Diego. Other members of the organization based in Southern California and Northern Mexico, known as “couriers,” travelled to cities throughout the United States to provide a cash pick up and transport service for bulk cash proceeds of unlawful activity in amounts that ranged between $150,000 and $600,000. Once in possession of the money, the couriers deposited the money in smaller increments into the nominees’ funnel accounts, and eventually transferred the funds to shell corporations managed by the organization at Mexican financial institutions. Once in Mexico, the funds ultimately made their way to representatives of the Sinaloa Cartel and other criminal organizations.
“We are making it as difficult as possible for drug traffickers to finance and profit from their crimes,” said U.S. Attorney Robert Brewer. “This investigation has made sure that the Sinaloa Cartel and others like it have one less way to wash their dirty money.”
“With this final conviction, Reynoso’s money laundering organization has been dismantled,” said FBI Special Agent in Charge Scott Brunner. “Shutting down illegal cash proceeds returning to the drug cartels is like stopping the blood flow to the heart of these major criminal enterprises. The FBI will continue to strike at the heart of dangerous drug trafficking organizations in order to keep our communities safe.”
“Money launderers seeking to introduce illegally-generated funds into the United States financial system through bulk cash deposits, couriers, and funnel accounts will not be tolerated by the federal government,” stated Special Agent in Charge Ryan L. Korner of IRS Criminal Investigation. “The IRS is proud to share its hallmark financial investigative expertise in this and other increasingly sophisticated financial investigations.”
Sentencing is scheduled for September 16, 2019, before U.S. District Judge William Q. Hayes.
This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise of federal, state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking, and money laundering organizations and enterprises. This case is being prosecuted by Assistant U.S. Attorneys Blanca Quintero and Daniel Silva.
DEFENDANT Case Number 17-CR-2203-WQH
Manuel Reynoso Garcia Age: 63 Tijuana, Mexico
SUMMARY OF CHARGES*
Money Laundering Conspiracy – Title 18, U.S.C., Section 1956(h)
Maximum penalty: Twenty years in prison, $500,000 fine
AGENCIES
Federal Bureau of Investigation’s San Diego Cross Border Violence Task Force
IRS Criminal Investigations
Lawrence Man Sentenced to 150 Months for Participating in Fentanyl Trafficking ConspiracyRead the Press Release
Concord – United States Attorney Scott W. Murray announced that Jesus Rivera, 21, of Lawrence, Massachusetts, was sentenced to 150 months in prison for participating in a conspiracy to distribute over 400 grams of fentanyl.
According to court documents and statements made in court, a drug trafficking organization employed the defendant to sell fentanyl to customers from various New England States, including New Hampshire. On each day that the defendant worked, the organization provided him with at least one 200-gram bag of fentanyl and expected him to sell it and return approximately $6,000 in proceeds. In addition to Rivera, 33 defendants have been charged with participating in this conspiracy.
Rivera previously pleaded guilty on March 8, 2019.
“Fentanyl is not manufactured in New Hampshire,” said U.S. Attorney Murray. “This deadly drug is introduced into the state by traffickers and the results have been devastating. In order interrupt this lethal supply chain, we will continue to be aggressive in our efforts to prosecute and incarcerate fentanyl traffickers.”
“Illegal drug distribution ravages the very foundations of our families and communities, so every time we take fentanyl off the streets, lives are saved,” said Brian D. Boyle. “Let this sentence be a warning to those traffickers who are coming from out of state to distribute this poison, that DEA and its local, state and federal partners will do everything in our power to bring you to justice.”
This investigation was conducted by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
The case was a collaborative investigation that involved the DEA; the New Hampshire State Police; the Hillsborough County Sheriff’s Office; the Nashua Police Department; the Massachusetts State Police; the Massachusetts Attorney General’s Office; the New Hampshire Attorney General’s Office; the Essex County District Attorney’s Office; the Internal Revenue Service; Immigration and Customs Enforcement’s Homeland Security Investigations; United States Customs and Border Protection Boston Field Office; the United States Marshals Service; the United States Department of State’s Diplomatic Security Service; the Manchester Police Department; the Lisbon Police Department; the Littleton Police Department; the Seabrook Police Department; the Haverhill (MA) Police Department; the Methuen (MA) Police Department; the Lowell (MA) Police Department; and the Maine State Police.
The case is being prosecuted by Assistant United States Attorneys Georgiana L. Konesky and Seth R. Aframe.
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