Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Wednesday 8 May 2019
Kentucky Correctional Officers Charged with Beating Handcuffed Inmate and Attempting to Cover up MisconductRead the Press Release
David M. Schwartz, 48, and Donna K. Gentry, 55, former correctional officers at the Louisville Metro Department of Corrections, were indicted today by a federal grand jury in Louisville on charges of violating the civil rights of an inmate, writing false reports, and obstructing justice for their roles in the assault of an inmate who was handcuffed and not resisting, and in the attempt to cover up the misconduct afterward by writing false reports and tampering with witnesses. A third officer, Devan Edwards, was charged by information today with a federal felony offense for his role in the assault. Today’s indictment was announced by Assistant Attorney General Eric Dreiband for the Department of Justice’s Civil Rights Division, U.S. Attorney Russell Coleman for the Western District of Kentucky, and FBI Louisville Special Agent in Charge James Robert Brown Jr.
The indictment charges three felony offenses against Schwartz and one felony offense against Gentry. Schwartz is charged with depriving the inmate of his right to be free from excessive force (resulting in bodily injury), and with filing two false reports, one of which wrongfully accused the inmate of assaulting on an officer. Gentry is charged with obstructing justice by filing a false use of force report, and by directing a subordinate officer to file a false use of force report.
The maximum penalties for the charged crimes are 10 years of imprisonment for the deprivation-of-rights offense and 20 years of imprisonment for each of the false report and obstruction offenses.
An indictment is merely an accusation and the defendants are presumed innocent unless proven guilty.
This case was investigated jointly by the FBI’s Louisville Resident Agency Office and by the Louisville Metro Police Department’s Public Integrity Unit. The case will be prosecuted by Trial Attorney Christopher J. Perras of the Department of Justice’s Civil Rights Division, and Assistant United States Attorney Amanda Gregory of the Western District of Kentucky.
Jury Finds Atwater Inmates Guilty of Attempting to Kill a Correctional Officer and Assault on a Correctional OfficerRead the Press Release
FRESNO, Calif. — On Tuesday, after a four-day trial, a federal jury found Jonathan Mota, 37, guilty of attempting to kill a federal officer and found Dominic Adams, 27, guilty of assault on a federal officer, U.S. Attorney McGregor W. Scott announced.
According to court documents and evidence presented at trial, on October 6, 2017, Mota, Adams and four other inmates brutally attacked a Federal Bureau of Prisons officer who was a teacher working at the federal penitentiary in Atwater. The officer was repeatedly stabbed with homemade knives and kicked and beaten by the inmates.
According to court documents, on the day of the attack, Mota and Eric Chiago, 28, entered the copy room where the officer was making copies and repeatedly stabbed him. William Roe Acevedo, 33; Michael Martin, 30; Joey Thomas, 26; and Adams stationed themselves outside the room. When the victim was able to free himself and escape down the hallway, the six defendants tackled him and wrestled him to the floor where they repeatedly kicked, punched and stabbed him. Adams and Thomas also assaulted an officer who was responding to the attack.
Chiago, Acevedo, Martin, and Thomas pleaded guilty to aggravated assault. Chiago was sentenced to 15 years and eight months in prison, Acevedo was sentenced to 13 years in prison, Martin was sentenced to 12 years and six months in prison, and Thomas was sentenced to eight years and one month in prison.
This case is the product of an investigation by the FBI and the Federal Bureau of Prisons. Assistant U.S. Attorneys Brian K. Delaney and Kirk E. Sherriff are prosecuting the case.
Mota and Adams are scheduled to be sentenced by U.S. District Judge Lawrence J. O’Neill on July 29. They face a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Jacksonville Couple Sentenced to Prison After Trading Guns to Drug DealersRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard today sentenced Jonathan Cody (53, Jacksonville) to 37 months in federal prison for possessing a firearm while an unlawful user of controlled substances. The court also ordered Cody to pay a $5000 fine. Cody’s girlfriend, Kyle Ann Louise Mollgren (30, Jacksonville), was sentenced to 30 months in federal prison for possessing a firearm as a convicted felon. Cody and Mollgren had pleaded guilty on October 10, 2018.
According to court documents and information presented at sentencing, in late 2017, Cody and Mollgren sold three firearms that belonged to Cody to two Jacksonville drug dealers. One of those firearms was a Colt .556 caliber law enforcement carbine with an extended magazine, which Cody and Mollgren sold to Nathaniel Harrison on September 21, 2017. Later that day, Harrison sold the firearm to an undercover agent from the Bureau of Alcohol, Tobacco, Firearms and Explosives. After Harrison was arrested, he identified Cody and Mollgren as the individuals who had sold the firearm to him. Harrison pleaded guilty to federal drug and firearms charges on February 23, 2018, and was later sentenced to seven years in federal prison.
On February 9, 2018, Cody and Mollgren were interviewed by ATF agents and admitted that they had sold the Colt .556 caliber law enforcement carbine to Harrison in exchange for money and drugs. Cody and Mollgren estimated that they had purchased $10,000 worth of drugs from Harrison. During this time, Cody was an unlawful user of crack cocaine, and Mollgren was a convicted felon. Both Cody and Mollgren were prohibited from possessing firearms under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Laura Cofer Taylor.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Inglewood-based Tax Preparer Indicted in $5 Million Tax Fraud CaseRead the Press Release
LOS ANGELES – A tax preparer and former California Franchise Tax Board employee was arrested today on a 26-count federal grand jury indictment alleging he schemed to defraud the Internal Revenue Service by declaring fictitious withholdings used to fraudulently claim tax refunds of more than $5 million.
Cubby Wayne Williams, 63, of Alhambra, was arraigned this afternoon in United States District Court on 22 counts of assisting in the preparation of false tax returns for his clients and four counts of subscribing to false tax returns for himself. United States District Judge Percy Anderson has scheduled a May 13 trial-setting hearing for Williams, who is free on $20,000 bond.
According to the indictment, Williams owns and operates Williams Financial Network, an Inglewood-based tax services company. Prior to forming this company, Williams worked from 1985 to 1996 as a compliance representative in the California Franchise Tax Board’s collection division.
Williams allegedly filed tax returns claiming that his clients had accrued Original Issue Discount (OID) interest income. OID is a form of interest that accrues over the life of a bond or other debt instrument, but is not payable as it accrues. Financial institutions use IRS Forms 1099-OID to report this accrued, but unpaid, income, and any tax withholdings on it.
Williams filed approximately 514 tax returns for clients for tax years 2010 through 2016, fraudulently claiming OID withholdings and seeking approximately $5.49 million in bogus tax refunds, according to prosecutors, who also stated that the IRS paid out approximately $3 million on these fraudulent claims. The clients have not been charged in the alleged scheme.
Williams admitted creating the Forms 1099-OID he gave to IRS auditors, who questioned the withholdings he claimed on the tax returns he prepared for his clients and himself, prosecutors said in court today.
If convicted of all counts, Williams would face a statutory maximum sentence of 78 years in federal prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is being investigated by IRS Criminal Investigation.
This matter is being prosecuted by Assistant United States Attorney Ranee Katzenstein of the Major Frauds Section.
Henderson Man Convicted of Narcotics and Firearm ChargesRead the Press Release
ELIZABETH CITY - United States Attorney Robert J. Higdon, Jr. announced that, KACEY HICKS, 34, of Henderson, North Carolina was convicted in federal court following a 2-day trial before Chief United States District Judge Terrance W. Boyle. The jury heard evidence that HICKS kept a residence in the Flint Hill neighborhood of Henderson. After receiving a complaint regarding drug activity at that residence, law enforcement conducted an investigation which led to a search warrant of the premises, where HICKS was found hiding under a bed in close physical proximity to a firearm. Officers seized distributable quantities of cocaine and marijuana, ammunition, two additional firearms, drug paraphernalia, and US currency during the course of their search. The jury found HICKS guilty of possession with intent to distribute cocaine and marijuana; felon in possession of a firearm and ammunition; and maintaining a dwelling for drug distribution.
HICKS faces a maximum sentence of 20 years imprisonment followed by no less than 3 years of supervised release on the drug counts, and a maximum sentence of 10 years imprisonment followed by no more than 3 years of supervised release on the firearm count.
This case was brought using the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
Investigation of this case was conducted by the Henderson Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). Assistant United States Attorneys Thomas Crosby and Laura Howard handled the prosecution of this case for the government.
Hartford Man on Federal Supervision Charged with Distributing FentanylRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven has returned an indictment charging JOSEPH GRIFFIN, 42, of Hartford, with two counts of possession with intent to distribute, and distribution of, fentanyl.
As alleged in the indictment, on two occasions in January 2019, Griffin possessed and distributed fentanyl.
The indictment was returned on April 2, 2019, and Griffin was arrested today. He appeared before U.S. Magistrate Judge Donna F. Martinez in Hartford, entered a plea of not guilty to the charges and was released on a $50,000 bond.
Griffin has been on federal supervised release since December 2017. Prior to beginning his term of federal supervision, Griffin served a 10-year sentence for a federal narcotics conviction related to his distribution of crack cocaine.
If convicted of the new charge, Griffin faces a maximum term of imprisonment of 20 years in prison. He also faces additional penalties if he is found to have violated the conditions of his supervised release.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the FBI’s Northern Connecticut Violent Crimes Task Force, with the assistance of the U.S. Marshals Service and Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney David T. Huang and First Assistant U.S. Attorney Leonard C. Boyle.
Hartford Man Sentenced to More Than 3 Years in Prison for Possessing Loaded Handguns in EnfieldRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that KELVIN PETERS, 42, of Hartford was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 37 months of imprisonment, followed by three years of supervised release, for illegally possessing a loaded handgun.
According to court documents and statements made in court, on May 9, 2018, Enfield Police stopped a car in which Peters was a passenger. A search of the vehicle revealed two loaded firearms, a Bersa Thunder 380 handgun and a High Point Model C9 9mm pistol with an obliterated serial number. Peters admitted in an interview with officers that the guns were his.
Peters’ criminal history includes multiple convictions in state court for drug offenses, and a 2004 federal conviction for possession of a firearm by a convicted felon for which he was sentenced to seven years in prison.
Peters has been detained since his federal arrest on August 1, 2018. On October 15, 2018, he pleaded guilty to one count of possession of firearms by a convicted felon.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Enfield Police Department. The case was prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
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.
Grand Jury Returns Indictment Charging Three in Connection with Fraudulent Silver Trading ProgramRead the Press Release
SALT LAKE CITY -- A federal grand jury in Salt Lake City returned a six-count indictment Wednesday afternoon charging three individuals in connection with an alleged scheme to defraud investors by inducing them to purchase investments in a fraudulent silver trading program.
The silver trading program was offered and sold to at least 500 investors throughout the United States and the defendants collected approximately $200 million.
Charged in the indictment are Gaylen Dean Rust, age 59, and Denise Gunderson Rust, age 59, both of Layton, and Joshua Daniel Rust, age 37, of Draper.
Announcing the indictment are U.S. Attorney for Utah John W. Huber, FBI Special Agent in Charge Paul Haertel of the FBI’s Salt Lake Field Office; Francine A. Giani, Executive Director of the Utah Department of Commerce, and Thomas A. Brady, Director of the Division of Securities.
Gaylen Rust owned and managed Rust Rare Coin, Inc. (RRC), R Legacy Entertainment LLC, R. Legacy Racing Inc., R Legacy Investments LLC, R Legacy Ranch, and Legacy Music Alliance. Denise Rust was listed as the secretary of RRC and had signatory authority on several RRC bank accounts. Joshua Rust was manager of RRC from 2004 to Nov. 15, 2018. He also had signatory authority on several RRC bank accounts and managed the day-to-day operations of the RRC coin shop.
All three defendants are charged with wire fraud conspiracy in the first count of the indictment and money laundering conspiracy in the second count. Gaylen Rust is also charged with two counts of securities fraud. Denise Rust and Joshua Rust are each charged with one count of money laundering.
The indictment alleges that from around 1996 and continuing to Nov. 15, 2018, the defendants conspired to defraud investors and potential investors by offering and inducing them to purchase investments in a silver trading program. According to the indictment, Gaylen Rust, who offered and sold investments in the program, made false and fraudulent statements regarding his scheme, both directly and indirectly, to investors and potential investors through various means including meetings, phone calls, mailings, and emails.
The indictment alleges the defendants failed to disclose to investors, among other things, that investor funds would be used for purposes other than to invest in silver and trading silver; that Gaylen Rust was not licensed to sell securities, trade commodities or operate a commodity pool; that investor funds were being laundered through transfers in and out of the defendants’ personal accounts; and that investment account statements provided to investors were false and not based on actual silver trades.
In order to convince investors that their investments were profitable and to convince potential investors that the silver program was earning money, the defendants operated the trading program as a Ponzi scheme. The defendants used investment money from later investors to pay the promised returns to earlier investors, creating the false impression that the silver trading program was profitable, the investments were safe and secure, and that the promised returns were being generated. Ponzi payments of approximately $150 million were made to investors, representing those payments as profits from the operation of the silver trading program.A summons will be issued to each defendant to appear on the charges in the indictment. The potential maximum penalties for wire fraud conspiracy, securities fraud and money laundering conspiracy are up to 20 years in federal prison per count. Money laundering conspiracy carries a potential penalty of 20 years. Securities fraud has a 20-year maximum sentence sand money laundering has a potential 10-year sentence.
Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
Assistant U.S. Attorneys in Salt Lake City are prosecuting the case. Securities Investigator Elizabeth Blaylock of the Utah Division of Securities and Special Agents Jason Henrikson and James Malpede of the FBI are investigating the case along with agents on the FBI’s White Collar Task Force, including Special Agent Jeff Kirkwood of IRS-Criminal Investigation. Related civil cases have been filed by the Securities Exchange Commission, the Commodity Futures Trading Commission, and the Utah Attorney General’s Office.
Fort Worth Man Pleads Guilty to Conspiring to Provide Material Support to Foreign Terror GroupRead the Press Release
A Fort Worth man today pleaded guilty to a federal terrorism charge, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox and Assistant Attorney General for National Security John C. Demers.
Michael Kyle Sewell, 18, who was arrested in February, formally pleaded guilty Wednesday morning to conspiracy to provide material support to Lashkar-e-Taiba, a Pakistani-based foreign terrorist organization also known as LeT.
According to court documents, Sewell admitted to encouraging an individual identified in court documents as coconspirator 1 to join LeT.
Sewell provided the coconspirator, who he spoke to on social media, with contact information for an individual he believed could facilitate the coconspirator’s travel to Pakistan to join LeT. Unbeknownst to Sewell and the coconspirator, the facilitator was an undercover FBI agent.
Sewell and the coconspirator discussed what the coconspirator should say to the undercover agent who posed as the facilitator, in order to gain the facilitator’s trust and be permitted to join LeT. Sewell also contacted the facilitator to vouch for the coconspirator’s authenticity.
Sewell now faces up to 20 years in federal prison and a fine of up to $250,000. He will be sentenced on August 12 in Fort Worth.
The Federal Bureau of Investigation and its Joint Terrorism Task Force members, including the Arlington Police Department, the Fort Worth Police Department, the Tarrant County Sheriff’s Office, the Naval Criminal Investigation Service, Homeland Security Investigations, and the Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorney Jay Weimer prosecuted the case.
Former Treasurer of Non-Profit Aiding Families of Slain Soldiers Sentenced for Stealing Donated MoneyRead the Press Release
COLUMBUS – The former treasurer of a non-profit dedicated to helping families of soldiers killed in the line of duty was sentenced Tuesday for stealing money from the organization, said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. Dustin Campbell, 36, of Knoxville, Tennessee previously pleaded guilty to one count of Wire Fraud and was sentenced by the Honorable Clay Land Tuesday to 15 months in prison. Mr. Campbell will also have to pay $38,000 in restitution to the Army Sniper Association. There is no parole in the federal system.
Created in December 2001, the Army Sniper Association (ASA) earned 501(c)(3) status in 2008, operating solely to benefit families of current and former Army snipers. Based in Columbus, GA near Ft. Benning, Mr. Campbell served as the unpaid, volunteer treasurer from April 2015 to October 2016. According to his signed plea agreement, Mr. Campbell had sole signatory authority over the account, which was located, with the approval of the ASA, at a Tennessee bank where Mr. Campbell lived. An audit of the account showed that when Mr. Campbell began his tenure as treasurer there was a balance of $62,021.46 in the account. On October 27, 2016, the Defendant was terminated as treasurer, and five months later, the balance of the account had diminished to $647.05. An audit of the account revealed that Mr. Campbell had used ASA funds for personal expenses including fast food, gas, clothing and utility bills. Mr. Campbell also made at least 150 automatic teller machine cash withdrawals, converting more than $40,000 in ASA funds for his own personal use.
“The integrity of non-profit organizations is at risk anytime there is theft within this goodwill system, and these rogue players must be rooted out and held accountable for their crimes,” said Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. “Taking from our military families, who have given so much, will not be tolerated. I want to thank the FBI who lead this investigation and uncovered the truth.”
“The work that non-profit organizations do is invaluable to our society, and we cannot allow anyone driven by personal greed to misdirect funds away from the people who need them,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Some of these stolen funds would have gone to families of soldiers who gave their lives for our country. Campbell must now pay the price for putting his personal gains before those families’ needs.”
The case was investigated by the FBI. Assistant U.S. Attorney Mel Hyde prosecuted the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Former State Judicial Marshal Who Assisted Drug Dealer is SentencedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ADAM CLARKE, 38, of Norwich, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to three years of probation, six months of home confinement and a $750 fine for assisting a drug dealer while Clarke was working as a state judicial marshal.
According to court documents and statements made in court, in 2017, law enforcement conducted a long-term investigation into the distribution of drugs in the Norwich and New London area. On multiple occasions in October 2017, Clarke was intercepted on a court-authorized wiretap discussing the distribution of heroin and prescription narcotics. The investigation revealed that Clarke, who was employed as a state judicial marshal, received prescription pills from a known drug dealer while he was at work, assisted the drug dealer in avoiding detection by law enforcement by identifying law enforcement actions and vehicles, and agreed to broker at least one heroin transaction between the drug dealer and a third party.
On October 25, 2018, Clarke pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, heroin.
Clarke is no longer employed as a state judicial marshal.
This matter was investigated by the Federal Bureau of Investigation and the Norwich, Waterford and Town of Groton Police Departments. This case was prosecuted by Assistant U.S. Attorney David C. Nelson.
Former Milwaukee Alderman Charged with Wire FraudRead the Press Release
United States Attorney Matthew D. Krueger announced that a federal grand jury has returned an indictment charging a former Milwaukee alderman, Willie C. Wade (age: 56), with three counts of wire fraud. According to the indictment, Wade obtained $30,000 in cash from a cooperating individual by falsely claiming that he was negotiating on behalf of a current Milwaukee alderman to accept a bribe in exchange for a vote in favor of approving licenses for a downtown strip club. According to the indictment, the alderman was not aware of Wade’s representations and had never offered or agreed to accept any bribe.
Each count carries a maximum penalty of 20 years in prison, a maximum fine of $250,000, and up to three years of supervised release following any prison term.
In announcing the charges, United States Attorney Krueger specifically commended the hard work and dedication of the Milwaukee Division of the Federal Bureau of Investigation (FBI) during the investigation of this matter.
The public is cautioned that an indictment is merely a formal charge that a defendant has committed one or more violations of federal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the FBI and has been assigned to Assistant United States Attorneys Richard G. Frohling and Paul L. Kanter for prosecution.
# # #
Former Hennepin County Employee and Husband Plead Guilty to Theft of Government FundsRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty pleas of ROBERT ANTHONY COLEMAN, 45, and YOLANDA YVETTE COLEMAN aka YOLANDA YVETTE PITTMAN, 50, for conspiring to defraud multiple government social services programs over the course of several years. The defendants entered their guilty pleas today before Senior Judge David S. Doty in U.S. District Court in Minneapolis, Minnesota.
According to the defendants’ guilty pleas and documents filed with the court, from 2002 through December 2016, PITTMAN was employed by the Hennepin County Human Services and Public Health Department (HSPHD). From at least October 2009, PITTMAN’s job duties gave her access to computer databases used in processing applications for government benefits intended to assist low-income persons with food, medical, and other living expenses, including Medical Assistance and SNAP food stamp benefits. During this time, PITTMAN became romantically involved with COLEMAN, who was a HSPHD client prior to and continuing into their relationship. PITTMAN and COLEMAN were married on August 17, 2014.
According to the defendants’ guilty pleas and documents filed with the court, from October 2010 through August 2018, PITTMAN and COLEMAN conspired to fraudulently obtain Section 8 rental housing assistance subsidies, SNAP benefits, Medical Assistance benefits, Supplemental Security Income (SSI) benefits from the Social Security Administration, and other public assistance, by concealing information and submitting false applications to the government entities responsible for implementing these programs. For example, PITTMAN and COLEMAN failed to disclose that they resided together while COLEMAN received Section 8, SNAP, Medical Assistance, and SSI public assistance benefits. PITTMAN also acted as COLEMAN’S Personal Care Attendant (PCA) for several years, with COLEMAN’S Medical Assistance benefits paying for these PCA services. The Government contends the total loss amount, which will be established at sentencing, is $248,838.
This case is the result of an investigation conducted by the Department of Housing and Urban Development – Office of the Inspector General, Hennepin County Fraud Investigations Unit, and the Social Security Administration – Office of the Inspector General.
This case is being prosecuted by Assistant U.S. Attorney Sarah Hudleston and Special Assistant U.S. Attorney Lindsey Middlecamp.
Defendant Information:
ROBERT ANTHONY COLEMAN, 45
Minneapolis, Minn.
Convicted:
- Conspiracy to commit theft of government funds, 1 count
YOLANDA YVETTE COLEMAN, aka YOLANDA YVETTE PITTMAN, 50
Minneapolis, Minn.
Convicted:
- Conspiracy to commit theft of government funds, 1 count
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
- Conspiracy to commit theft of government funds, 1 count
Former Children’s Swim School Employee Pleads Guilty to Child Pornography ChargesRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Danielle Sebenick, 27, of Glenside, PA entered a guilty plea today before the Honorable Petrese B. Tucker, admitting to the crimes of possession and distribution of child pornography.
Sebenick was indicted by a federal grand jury in January of 2019 as a result of her trafficking in videos of child pornography on the Internet during November of 2018, while she was employed at the Kids First Swim School in Jenkintown, PA.
“Not only did this defendant commit the heinous crime of possessing and distributing child pornography, she did it while employed at a business that specializes in teaching children an important life skill,” said U.S. Attorney McSwain. “Parents and caregivers bring their children to facilities like this with the expectation that the staff will teach them and keep them safe; they shouldn’t be worried that their children are in the presence of a sexual predator.”
“Homeland Security Investigations will remain steadfast in our dedication to identify, investigate and apprehend those who abuse the most vulnerable of our society – our children,” said Marlon V. Miller, special agent in charge of HSI Philadelphia. “Investigating and prosecuting the perpetrators of these horrendous crimes is one of our highest priorities and HSI will continue to work with our law enforcement partners to bring these criminals to justice.”
The case was investigated by Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Kelly Harrell.
Former Boy Scout Employee Pleads Guilty to Possession of Child PornographyRead 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 Russell Ruth, 34, of Lyons, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to possession of child pornography, including prepubescent images. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated that between March 13 and June 7, 2018, the defendant uploaded five files containing child pornography to a Yahoo! Server. Yahoo! intercepted the files and reported to the National Center for Missing and Exploited Children (NCMEC).
Investigators determined the images were uploaded by Ruth and executed a search warrant at his residence on June 7, 2018. During the search, investigators seized electronic devices containing over 10,285 images and 602 videos of child pornography, including images of prepubescent children and images involving violence.
The defendant was employed by the Boy Scouts of America in the Ovid, NY area.The plea is the result of investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Sentencing is scheduled for August 7, 2019, at 11:30 a.m. before Judge Geraci.
# # # #
Felch Man Found Guilty of Manufacturing and Possessing with Intent to Distribute MarijuanaRead the Press Release
MARQUETTE, MICHIGAN — A jury in federal district court in Marquette found Lee Edward Blomquist guilty of manufacturing or aiding and abetting the manufacture of more than 50 marijuana plants and of possessing or aiding and abetting the possession of those plants with the intent to distribute them. A sentencing date has not been scheduled.
Blomquist, 48, of Felch, maintained a marijuana grow operation on family property located in Felch and sold processed marijuana to a Wisconsin resident over a period of nine months. At the time of his arrest in 2017, police found 32 pounds of processed marijuana with a street value in excess of $100,000.00. In addition to the violation of federal controlled substance law the jury found, Blomquist was also in violation of Michigan’s Medical Marijuana Act because of the amount of marijuana involved, his sale to another state, and his status as a previously convicted felon.
The investigation into Blomquist’s marijuana grow operation began when detectives from the Kingsford, Iron Mountain, Norway, Dickinson (KIND) drug team conducted multiple controlled buys of marijuana from Blomquist’s Wisconsin associate. KIND detectives ultimately obtained a search warrant for the Blomquist property and found the marijuana grow building and processed marijuana. Blomquist admitted to selling marijuana to his Wisconsin associate and described his work on the marijuana grow as a full-time job. Pending trial in September 2018, the court granted Blomquist a one week furlough from custody to visit with his sick father and Blomquist fled the jurisdiction. His trial commenced after KIND investigators recaptured him in November 2018.
On February 7, 2019, Blomquist pleaded guilty to conspiracy to possess with intent to distribute marijuana and distribution of marijuana related to his Wisconsin associate. Blomquist was previously convicted in federal court of manufacturing marijuana and being a felon in possession of a firearm in 2003.
This case was prosecuted by Assistant U.S. Attorney Paul D. Lochner. Prosecution would not have been possible without the combined assistance of the KIND drug team, the Dickinson County Sheriff’s Office, the Kingsford Public Safety Department, the Iron Mountain Police Department, the Michigan State Police Crime Lab, and the Dickinson County Prosecutor’s Office.
END
Federal Indictments Charge 11 Durham Residents with Hobbs Robbery Conspiracy and Other OffensesRead the Press Release
GREENSBORO, N.C. – Eleven individuals from Durham were indicted May 3, 2019, on federal charges relating to a series of violent robberies, announced Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina and John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI) in North Carolina.
The defendants are charged in an indictment alleging that between October 18, 2015 and January 29, 2016, in Durham, Guilford, and Orange Counties, they conspired to commit Hobbs Act Robbery, that is, robbery by means of actual or threatened force, violence, and fear. The conspiracy allegedly targeted the personal residences of Middle-Eastern and Asian business owners to facilitate the theft of the business proceeds believed to be stored at their respective homes. Owners of the following businesses were targeted: Tobacco World in Durham, North Carolina; T-Nails Salon in Durham, North Carolina; Pink Nails in Hillsborough, North Carolina; Lakhani Jewelers in Durham, North Carolina; Biswas Tobacco in Durham, North Carolina; and China Fuji in Hillsborough, North Carolina. The defendants are:
• SAVIAN JACOBY TURRENTINE, age 26, of Durham
• DEION TYRELL LILES, age 23, of Durham
• ERVIN MONTEZ ALSTON, age 26, of Durham
• JERMAUCIYAE RYSUAN ABRAM, age 21, of Durham
• KEVIN JAMIE JENAVOUS MALONE, age 24, of Durham
• TERRELL LEE MCLAMB, age 26, of Durham
• HOWARD FREEMAN EARL, JR., age 24, of Durham
• MARKEY ANTONIO GOLDSTON, age 29, of Durham
• BARRY DION HOLT, age 26, of Durham
• JOSHUA QUINTON JONES, age 23, of Durham
• ANTHONY LATARIO JAMES, age 23, of Durham
In addition to the conspiracy charge, each defendant faces one or more individual charges of Hobbs Act Robbery and one or more individual charges of brandishing a firearm during a crime of violence. Each defendant convicted of a Hobbs Act robbery or conspiracy charge faces a maximum sentence of 20 years in prison, a fine of up to $250,000, or both, and not more than 3 years supervised release. Each defendant convicted of a brandishing a firearm charge faces a minimum sentence of 7 years in prison, a fine of up to $250,000, or both, and not more than 7 years supervised release.
“These organized criminals systematically terrorized and preyed upon minority business owners and their families,” said United States Attorney Martin. “The United States Attorney’s Office is committed to reducing violent crime and protecting the people of the Middle District by identifying and prosecuting violent offenders like these.”
"The defendants committed violent robberies across the community which instilled fear in the hearts of innocent people. These indictments send a clear message, we will work closely with our law enforcement partners to make sure those bringing violence to our streets are held accountable." said SAC Strong.
One of the conspirators, MARKEY ANTONIO GOLDSTON, is also charged in a separate two-count indictment with possession with intent to distribute cocaine base, and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the drug charge, GOLDSTON faces a maximum sentence of 20 years in prison, a fine of up to $1,000,000, or both, and not less than 3 years supervised release. If convicted of the firearm charge, GOLDSTON faces a minimum sentence of 5 years in prison, a fine of up to $250,000, or both, and not more than 3 years supervised release.
The charges contained in the indictments are merely allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Federal Bureau of Investigation, the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Durham County
Sheriff’s Office, the Durham Police Department, the Orange County Sheriff’s Office, the North Carolina Department of Public Safety, Special Operations & Intelligence Unit, and the North Carolina State Highway Patrol. The case is being prosecuted by Assistant U.S. Attorney Terry M. Meinecke of the United States Attorney’s Office.
# # #
Fayetteville Man Sentenced to More Than 19 Years in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Michael Sartin, age 54, of Fayetteville, Arkansas, was sentenced yesterday to 235 months in federal prison followed by five years of supervised release and ordered to pay a $10,000.00 fine for one count of Distribution of Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, during the course of an investigation beginning in 2017 into methamphetamine trafficking in the Western District of Arkansas, the Fourth Judicial District Drug Task Force identified Sartin as a distributor of methamphetamine in Northwest Arkansas.
During the investigation, controlled purchases of methamphetamine were arranged and conducted by investigators from Sartin. The investigators recovered approximately 530 grams of methamphetamine from these transactions.
Sartin was indicted by a federal grand jury in January 2018, and entered a guilty plea in September 2018.
This case was investigated by the Fourth Judicial District Drug Task Force. Assistant United States Attorney Denis Dean prosecuted the case for the United States.
Former Bank Executive Charged with Bank FraudRead the Press Release
United States Attorney Matthew D. Krueger, has announced that on May 7, 2019, a grand jury sitting in the Eastern District of Wisconsin returned a 13-count indictment charging Archie G. Overby, 70, formerly of Waupaca, Wisconsin, now living in Plano, Texas, with bank fraud in violation of Title 18, United States Code, Section 1344, and misapplication of bank funds by a bank officer, in violation of Title 18, United States Code, Section 656. If convicted of these offenses he faces up to 30 years in prison and a $1,000,000 fine on each count.
The indictment alleges that between 2010 and 2013, Overby, who was then president, CEO and Chairman of the Board of First National Bank in Waupaca, Wisconsin, defrauded the bank by expensing the bank for luxurious personal travel and entertainment for himself, his family, and various friends. Among the trips that he is alleged to have taken at bank expense are trips to Tanzania, the Cayman Islands and St. Maarten, as well as to luxury hotels and resorts in California, Texas, Florida, and North Carolina. The indictment alleges that this personal travel exceeded $1.2 million dollars and that he caused the bank to provide him with an additional $320,930 to cover taxes on the ill-gotten proceeds.
The case was investigated by Special Agents of the Federal Deposit Insurance Corporation Office of Inspector General and the United States Treasury Office of Inspector General. It is being prosecuted by Assistant United States Attorney Carol L. Kraft.
# # #
DEA Omaha Division collects 32,713 pounds of unwanted medication at spring Take Back Day eventRead the Press Release
OMAHA, Neb., – The Drug Enforcement Administration (DEA) collected nearly 469 tons of unwanted medication at the 17th National Prescription Drug Take Back Day event, April 27, with a record-setting 6,398 sites hosted by more than 5,000 law enforcement partners. In South Dakota, 1,634 pounds of potentially dangerous and unwanted drugs were discarded at 25 sites with assistance from 24 local, state, tribal and federal partners. The DEA Omaha Division, which includes Iowa, Minnesota, Nebraska, North Dakota and South Dakota and four counties in Illinois and Wisconsin, collected 32,713 pounds of medication on April 27.
"National Prescription Drug Take Back Day is more than just a day for people to turn in unwanted, unused and expired medication," DEA Omaha Division Diversion Program Manager William Stockmann said. "Take Back Day provides us with a time to remind our communities about the potential for misuse and abuse of prescription medication. It’s important for each of us to do our part in making sure that medications are properly safeguarded and eventually discarded, removing the temptation for misuse by family and friends."
Individuals unable to attend the Take Back Day event can locate year-round, secure drop-off locations by visiting https://apps2.deadiversion.usdoj.gov/pubdispsearch/spring/main?execution=e1s1. Or, to safely dispose of unwanted medication, remove medicine from its original container, mix it with an undesirable substance, such as used coffee grounds or kitty litter, place the mixture into a sealable bag and then throw the contents into the trash.
For more information on National Prescription Drug Take Back Day, including April 27 results, please visit, takebackday.dea.gov, or contact Omaha Division Public Affairs Specialist Emily Murray at 402-964-7950.
The next National Prescription Drug Take Back Day is set for Saturday, October 26.
Connecticut Man Pleads Guilty to Federal Firearms ChargeRead the Press Release
BOSTON – A Connecticut man pleaded guilty today in federal court in Springfield to a federal firearms charge.
Jermane Merlyn Samuel, 36, of Enfield, Conn., pleaded guilty to one count of receiving and possessing two firearms with obliterated serial numbers. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for July 31, 2019.
On Sept. 20, 2018, Samuel received and possessed a Model 27 .40 caliber Glock pistol and a Model 17 9mm Glock pistol in a hotel parking lot in West Springfield. The serial numbers of both pistols had been obliterated.
Samuel faces a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. Assistant U.S. Attorney Katharine A. Wagner of Lelling=s Springfield Branch Office is prosecuting the case.
Columbus man indicted on drug trafficking charges involving fentanyl and methamphetamineRead the Press Release
A federal grand jury returned a four-count indictment charging Andre Little, 33, of Columbus, with distribution of fentanyl and possession with intent to distribute methamphetamine and fentanyl.
The indictment alleges that on or about March 11, 2019 and April 5, 2019, Little knowingly and intentionally distributed fentanyl.
The indictment further alleges that on or about April 11, 2019, Little knowingly and intentionally possessed with the intent to distribute methamphetamine and fentanyl.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offenses and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Clark County Man Sentenced to 79 Months for Methamphetamine Distribution and Illegal Firearms SalesRead the Press Release
LEXINGTON, Ky. – Adam Ray Dodson, 38, of Winchester, Kentucky, was sentenced to 79 months in federal prison on Monday, by United States District Judge Joseph M. Hood, for distributing quantities of methamphetamine and selling firearms in Clark County, Kentucky, in October and November of 2017.
Dodson had previously plead guilty to charges of distribution of 50 grams or more of methamphetamine, possession of a firearm by a convicted felon, and sale of a firearm to a convicted felon. Between October and November of 2017, Dodson, conducted multiple sales of methamphetamine, totaling over 200 grams in Winchester. In addition to the sales of methamphetamine, Dodson was found to have illegally possessed and sold firearms to an individual he also knew to be a convicted felon.
Under federal law, Dodson must serve 85 percent of his sentence. Upon completion of his imprisonment, he will be under the supervision of the United States Probation Office for a period of four years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Stuart L. Lowery, Special Agent in Charge, ATF, Louisville Field Division; Commissioner Richard Sanders, Kentucky State Police; and Sheriff Berl Perdue, Jr., Clark County Sheriff, jointly made the announcement.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The PSN program was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Canaan Man Sentenced to 156 Months for Transporting and Possessing Child PornographyRead the Press Release
CONCORD - Zachary A. C. Benoit, 28, of Canaan, was sentenced to 156 months in prison for transportation and possession of child pornography, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, in the summer of 2017, the Grafton County Sheriff’s Department was conducting an online investigation into individuals involved in the trading of illegal images of child pornography. Benoit was identified after he uploaded numerous images of child sexual abuse, which were intercepted by law enforcement. Forensic examinations of several of Benoit’s electronic devices revealed thousands of images and videos depicting the sexual assaults of children including babies and toddlers.
Benoit previously pleaded guilty on November 7, 2018.
“It is critical that we safeguard children from being exploited on the internet” said U.S. Attorney Murray. “To that end, we will continue to allocate substantial resources to stopping the distribution of these terrible images in New Hampshire. In conjunction with our law enforcement partners, we will prioritize the investigation and prosecution of offenses involving child pornography.”
“This is a very appropriate sentence in light of the truly disturbing facts of this case” said Peter C. Fitzhugh, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston. “The successful prosecution of this individual could not have happened without the close coordination that we share with our very dedicated New Hampshire law enforcement partners, and with the Internet Crimes Against Children Task Force, whose work in this case was invaluable.”
This matter was investigated by the Grafton County Sheriff's Department, Lebanon Police Department, Nashua Police Department, members of the Internet Crimes Against Children Task Force, and Immigration and Customs Enforcement’s Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorney Helen W. Fitzgibbon.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
###
Buffalo Man Who Pointed A Gun at Police Pleads Guilty to Being A Felon in PossessionRead 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 Julius Hatten, Jr., 29, of Buffalo, NY, pleaded guilty before Senior U.S. District Judge William M. Skretny to being a felon in possession of a firearm. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorneys Charles J. Volkert, Jr. and Justin G. Bish, who are handling the case, stated that on August 5, 2018, Buffalo Police Officers observed a black vehicle, traveling eastbound on Winspear Avenue, violating several New York State traffic laws. Officers conducted a vehicle stop and determined that the defendant was not suitable to operate a motor vehicle. As officers attempted to secure Hatten and place him in handcuffs, he pushed them away, pulled a firearm from his waistband, began to flee on foot, and pointed the firearm in the direction of the officers. The defendant was ultimately apprehended on Highgate Avenue. The firearm was a 9mm pistol.
In August 2011, Hatten was convicted of a felony for Criminal Possession of a Weapon Second Degree in Erie County Court and is legally prohibited from possessing a firearm.
The plea is the is the result of an investigation by the Buffalo Police Department, under the direction of Commissioner Byron Lockwood, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
Sentencing is scheduled for August 14, 2019, before Judge Skretny
# # # #
Brockton Man Pleads Guilty to Computer Fraud and AbuseRead the Press Release
BOSTON – A Brockton man pleaded guilty today in federal court in Boston in connection with an August 2018 computer intrusion of a Massachusetts company.
Colby Anderson, 25, pleaded guilty to one count of intentionally causing damage to a protected computer without authorization. U.S. District Court Judge William G. Young scheduled sentencing for July 22, 2019. In October 2018, Anderson was arrested and charged by complaint; he was released on conditions.
In July 2018, Anderson was terminated from his position as a Network Operations Center Technician at Blueport Wireless, a high speed internet access provider. Following his termination, Anderson subsequently used his former colleagues’ account login information to delete approximately 120 customer configuration profiles, causing widespread internet service issues at customer facilities.
The charging statute provides for a sentence of no greater than 10 years in prison, up to three years of supervised release, and a fine of $250,000 or twice the gross gain or loss. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office made the announcement today. Assistant U.S. Attorney Mackenzie A. Queenin of Lelling’s Cybercrimes Unit is prosecuting the case.
Brockton Man Indicted for Federal Firearm and Drug OffensesRead the Press Release
BOSTON – A Brockton man was indicted today by a federal grand jury in Boston on firearm and drug charges.
Kawana Tillman, 47, was charged with being a felon in possession of a firearm and ammunition, one count of possession with intent to distribute cocaine base, and one count of possession with intent to distribute more than 28 grams of cocaine base. Tillman has prior felony drug conspiracy and firearm convictions. Tillman was arrested on April 30, 2019, and has been in custody since.
The charge of being a felon in possession of a firearm and ammunition provides a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of up to $250,000. The charge of possession with intent to distribute cocaine base carries a sentence of no greater than 30 years in prison, a minimum of six years and up to a lifetime of supervised release, and a fine of up to $2 million. The charge of possession with intent to distribute 28 grams or more of cocaine base provides for a mandatory minimum sentence of five years and up to 30 years in prison, a minimum of six years and up to a lifetime of supervised release, and a fine of up to $2 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Division; Plymouth County District Attorney Timothy J. Cruz; Suffolk County District Attorney Rachael Rollins; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Boston Police Commissioner William Gross made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Lelling’s Organized Crime and Gang Unit is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Bartow county man charged with employing and exploiting illegal aliensRead the Press Release
ROME, Ga. - Juan Antonio Perez has been indicted on charges that his construction company, Aztec Framing, which operated in northwest Georgia and eastern Tennessee, profited by employing illegal aliens and paying them below-market wages. He has also been charged with being an illegal alien in possession of 14 firearms. Federal law prohibits illegal aliens from possessing firearms.
“Perez not only broke the law by allegedly hiring illegal aliens at below-market wages and paying no taxes, he had a large assortment of weapons including shotguns and pistols that he had acquired through various means other than buying them himself,” said U.S. Attorney Byung J. “BJay” Pak. “Illegal aliens, such as Perez, are not allowed to own firearms at all. We will get to the bottom of how he acquired them.”
“Individuals, like Mr. Perez, who flagrantly violate federal law to give themselves an unfair business advantage are cheating both law-abiding employers and employees exploited by these unfair and illegal labor practices,” said Special Agent in Charge of Homeland Security Investigations Atlanta Nick S. Annan. “This case is an illustration of serious threats to public safety on numerous levels. Homeland Security Investigations will continue to focus not only on workers who violate federal law but also their employers.”
According to U.S. Attorney Pak, the indictment, and other information presented in court: Perez allegedly came to the United States illegally in 1992. He has lived in Bartow County, Georgia, and has operated Aztec Framing at least since 2009. Aztec Framing has offices in Cartersville and Rossville, Georgia, and Hixon, Tennessee.
Perez allegedly employed illegal aliens at below-market rates, provided no benefits or insurance, and did not pay payroll taxes or Social Security. Perez built his family a 7,500-square-foot house, bought other houses where he allowed some of his employees to live, and purchased more than 50 sports cars and heavily customized trucks. Yet, as of April 2019, the Georgia Department of Labor had no record of Perez reporting any income. Perez was also known to collect firearms, and was found to have 14 in his home when agents searched it on April 30, 2019.
Juan Antonio Perez, 46, of Rydal, Georgia, was indicted by a federal grand jury on May 7, 2019. He will be arraigned at 9:30 a.m. on Monday, May 13, 2019, before U.S. Magistrate Judge Walter E. Johnson.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the Bartow-Cartersville Drug Task Force, with assistance from the Federal Bureau of Investigation, U.S. Customs and Border Protection Air and Marine Operations, the Georgia Bureau of Investigation, the Cherokee Multi-Agency Narcotics Squad, and the Polk County Drug Task Force.
Assistant U.S. Attorney William Traynor is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Armed career criminal sentenced to nearly 16 years in federal prisonRead the Press Release
SAVANNAH, Ga: A Savannah man with an extensive criminal history has been sentenced to nearly 16 years in federal prison for illegal gun possession.
Frenchy Gamil Hilliard, 32, was sentenced to 188 months in prison by United States District Judge R. Stan Baker after pleading guilty to possession of a firearm by a convicted felon, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. After completion of his sentence, Hilliard also will serve five years of supervised release. There is no parole in the federal system.
According to information provided in court filings and in open court, a detective from the Savannah Police Department Special Investigations Unit saw Hilliard, a known convicted felon and convicted drug dealer, with a handgun with an extended magazine in June 2018. The detective saw Hilliard place the gun in his pocket, get into a vehicle and drive away when officers ordered him out of the car. After crashing the vehicle, Hilliard attempted to flee on foot and was captured.
Officers searching the area found the pistol, a black Glock 43 .40 caliber with an extended magazine and one of its serial numbers obliterated. The investigation determined the pistol had been stolen, and a photograph found on Hilliard’s phone showed him brandishing the weapon more than a year before the arrest. Tests also confirmed Hilliard’s DNA was on the stolen pistol and magazine.
Hilliard, determined by the court to be an Armed Career Criminal, has an extensive criminal history dating back more than 15 years, including:
- Seven prior felony convictions;
- Eight prior misdemeanor convictions;
- Nearly 20 violations of court orders and state probation; and,
- Two previous state convictions for being a felon in possession of a firearm.
In addition, Hilliard was on probation for state charges of aggravated assault with a firearm and being a felon in possession of a firearm at the time of his arrest.
“The Armed Career Criminal Act, which carries a sentence of at least 15 years of incarceration, was designed specifically for unrepentant criminals like Hilliard,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “This sentence removes a menace from our community.”
“The defendant had no business carrying a firearm, given his previous criminal conduct,” said Beau Kolodka, Assistant Special Agent in Charge of the Atlanta Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “This case made the Cuyler-Brownsville neighborhood a safer place.”
This case was investigated by the ATF and the Savannah Police Department, and prosecuted for the United States as a Project Safe Neighborhoods initiative by Assistant United States Attorney E. Greg Gilluly Jr.
Armed Career Criminal Charged with Illegal Possession of FirearmsRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment charging PERCY LEE STROTHER JR., 47, with two counts of possession of a firearm by a convicted felon. STROTHER will make his initial appearance in U.S. District Court at a later date.
According to the allegations in the indictment, on October 12, 2018, and January 5, 2019, STROTHER was found to be in possession of firearms, namely, a Beretta, Model 92F, 9 millimeter semi-automatic pistol and a Jennings, Model Bryco 59, .380 caliber semi-automatic pistol. Because he has prior felony convictions in Hennepin and Dakota Counties, STROTHER is prohibited under federal law from possessing firearms at any time. If convicted of the charges, STROTHER faces a mandatory minimum sentence of 15 years in federal prison.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Minneapolis Police Department, and the Plymouth 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.
This case is being prosecuted by Assistant U.S. Attorney Bradley M. Endicott.
Defendant Information:
PERCY LEE STROTHER JR., 47
Minneapolis, Minn.
Charges:
- Felon in possession of a firearm (Armed Career Criminal), 2 counts
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Anadarko Man Pleads Guilty to Running Cockfighting Operation on Indian LandRead the Press Release
OKLAHOMA CITY – DOUGLAS WAYNE BUTLER, 67, has pleaded guilty to aiding and abetting cockfighting, announced First Assistant U.S. Attorney Robert J. Troester.
A federal grand jury indicted Butler on January 15, 2019, for aiding and abetting the sponsoring of animals in a cockfighting operation that was located on his property on Indian land in Caddo County. According to the indictment, Butler was running an interstate animal fighting venture that featured the fighting of gamecocks for the purpose of sport, wagering, and entertainment. A second count charged him with aiding and abetting the possession and receiving of gamecocks for the purpose of cockfighting in interstate commerce. The indictment states Butler engaged in this conduct from January 1, 2015, to March 3, 2016.
According to an affidavit in support of a search warrant, Butler said he held approximately a dozen cockfighting derbies at his residence and that he earned thousands of dollars from cockfighting during 2015. The affidavit explains he held cockfights in a large red barn with an enclosed pit surrounded by bleachers. He allegedly charged $20 per person at the gate and also profited from sales at an on-site concession stand. According to the affidavit, Butler indicated a cockfight could be attended by many as 200 people, some of whom traveled from Nebraska, Arkansas, New Mexico, Arizona, and Colorado.
Butler, a former Caddo County Deputy Sheriff, is alleged to have told a Special Agent with the Bureau of Indian Affairs that he knew cockfighting was illegal under state law but believed he was entitled to hold cockfights on allotted Indian land under the jurisdiction of the Caddo Nation based on an unspecified treaty. It is actually a federal felony to knowingly sponsor or exhibit an animal in a fighting venture in interstate commerce, regardless of whether the fighting takes place on Indian land. It is also a violation of federal law to knowingly attend an animal fighting venture.
On May 6, Butler pleaded guilty to aiding and abetting cockfighting.
At sentencing, he faces a maximum penalty of five years in prison, a fine of $250,000, and three years of supervised release. Sentencing will take place in approximately ninety days.
This case is the result of an investigation by the Bureau of Indian Affairs. Assistant U.S. Attorneys Arvo Q. Mikkanen and Edward J. Kumiega are prosecuting the case.
Reference is made to court filings for further information.
Albany Attorney Pleads Guilty to Defrauding Clients, Law FirmRead the Press Release
ALBANY, NEW YORK – Albert Hessberg III, age 64, an attorney residing in Slingerlands, New York, pled guilty today to stealing at least $2 million in the course of defrauding his former clients and law firm.
The announcement was made by 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.
Hessberg admitted to a fraudulent scheme spanning more than a decade, and pled guilty to 1 count each of wire fraud, mail fraud and filing a false tax return.
Hessberg worked for 37 years in the Albany office of the law firm now known as Barclay Damon LLP (“Barclay”), practicing in the area of trusts and estates. The Syracuse-based law firm terminated Hessberg for cause in March 2018.
Starting in 2006 and continuing until his termination in 2018, Hessberg defrauded Barclay and law firm clients, by: stealing at least $2,060,803 entrusted to him as fiduciary and trustee for his clients; stealing funds from one client to replenish the account of another client from whom he had previously stolen; billing clients and receiving payments for legal services he did not perform; and stealing payments for legal services that should have been made to Barclay.
United States Attorney Grant C. Jaquith stated: “Albert Hessberg betrayed his clients, his law firm, his profession, and the courts. He stole $2 million from his clients by taking advantage of their trust, and when they asked questions about their money, he repeatedly lied to them to hide his theft. His guilty plea is the first step in holding him accountable for his despicable fraud. I thank Barclay Damon LLP for reporting this fraud as soon as it was discovered.”
FBI Special Agent James H. Hendricks stated: “At its most basic level, this is a case about greed and the abuse of trust. Albert Hessberg abused his position and defrauded clients of over two million dollars. His clients trusted him with their life savings and now he must face the consequences of his actions. The FBI is dedicated to working with our law enforcement partners to investigate these crimes because of their lasting impact on the lives of the victims and our community as a whole.”
As part of his plea, Hessberg also admitted to filing federal tax returns that were false because he did not report, as income, money that he stole as part of his fraudulent scheme.
Hessberg faces up to 20 years in prison, a maximum $250,000 fine, and up to 3 years of post-imprisonment supervised release, when he is sentenced by United States District Judge Mae A. D’Agostino on September 5, 2019. 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.
In November 2018, following Hessberg’s arrest on a federal criminal complaint, the Appellate Division, Third Department suspended Hessberg from the practice of law.
This case was investigated by the FBI and Internal Revenue Service-Criminal Investigation, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Alabama Man Indicted for Attempts to Entice Wisconsin Minor to Engage in IncestRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, has announced that yesterday, a federal grand jury returned a four-count indictment against Tyler A. Blackmon (age: 28) of Prattville, Alabama.
According to the indictment, on four occasions between September 27, 2018, and October 10, 2018, Blackmon attempted to entice a Wisconsin child identified in the indictment as “Minor Child A” to engage in acts of incest, a felony under Wisconsin law.
Blackmon faces four charges of attempting to “persuade, induce, entice, and coerce” the child to engage in criminal sexual activity, incest, contrary to Title 18, United States Code, Sections 2422(b) and 2. As to each count, he faces a mandatory minimum sentence of 10 years and up to a lifetime of incarceration in federal prison.
This case was investigated by the Seymour Police Department with the assistance of the Prattville Police Department in Alabama. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
# # #
Administrators of DeepDotWeb Indicted for Money Laundering Conspiracy, Relating to Kickbacks for Sales of Fentanyl, Heroin and Other Illegal Goods on the DarknetRead the Press Release
The alleged owners and operators of a website known as DeepDotWeb (DDW) have been indicted by a federal grand jury sitting in Pittsburgh, Pennsylvania, for money laundering conspiracy, relating to millions of dollars in kickbacks they received for purchases of fentanyl, heroin, and other illegal contraband by individuals referred to Darknet marketplaces by DDW. The website has now been seized by court order.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Scott W. Brady for the Western District of Pennsylvania, Assistant Director Robert Johnson of the FBI’s Criminal Investigative Division and Special Agent in Charge Robert Allan Jones of the FBI’s Pittsburgh Field Office made the announcement.
In an indictment unsealed today, Tal Prihar, 37, an Israeli citizen residing in Brazil, and Michael Phan, 34, an Israeli citizen residing in Israel, were charged on April 24, 2019, in a one-count indictment by a federal grand jury in Pittsburgh. Prihar was arrested on May 6, 2019 by French law enforcement authorities in Paris, pursuant to a provisional arrest request by the United States in connection with the indictment. Phan was arrested in Israel on May 6 pursuant to charges in Israel. Further, the FBI seized DDW, pursuant to a court order issued by the U.S. District Court for the Western District of Pennsylvania.
“According to the indictment unsealed today, these defendants allegedly made millions of dollars by providing a gateway to illegal Darknet marketplaces, allowing hundreds of thousands of users to buy fentanyl, hacking tools, stolen credit cards, and other contraband,” said Assistant Attorney General Benczkowski. “The great work of our law enforcement partners and prosecutors allowed us to penetrate these supposedly anonymous online criminal networks, and those who used the networks to commit crimes will be held accountable regardless of where they live or how they attempt to hide their identities.”
“This is the single most significant law enforcement disruption of the Darknet to date,” said U.S. Attorney Scott W. Brady. “While there have been successful prosecutions of various Darknet marketplaces, this prosecution is the first to attack the infrastructure supporting the Darknet itself.”
“For years, DeepDotWeb operated as a key gateway to the criminal underbelly of Darknet marketplaces, all while the website administrators profited from the Darknet economy,” said FBI Assistant Director Robert Johnson. “Although they believed that they could hide in plain sight, this case demonstrates nothing could be further from the truth. The FBI does not turn a blind eye to criminal activity happening on or off the Darknet. Rather, we have worked together with our partners, both at home and abroad, to investigate nefarious activity, shut down websites like DeepDotWeb that facilitate the introduction of opioids and other illicit contraband into the United States, and arrest the individuals profiting from these transactions. The indictment announced today represents a true international success and should serve as a message to others that the FBI will always pursue criminals victimizing Americans, no matter where they may try to hide.”
“Websites like DeepDotWeb pose global threats that require global partnerships,” said FBI Special Agent in Charge Jones. “DDW acted as a gateway to the Darknet, allowing for the purchase and exchange of illicit drugs and other illegal items around the world, and the individuals charged today profited from those nefarious transactions. The efforts of federal and international law enforcement should send the message that we are coming after the operators of these dangerous websites.”
Summary
According to the indictment, from in and around October 2013 and continuing through the date of the indictment, Tal Prihar and his co-conspirator Michael Phan allegedly owned and operated DDW, hosted at www.deepdotweb.com and also accessible on the Darknet at DeepDot35Wveyd5.onion.
DDW provided users with direct access to numerous online Darknet marketplaces, not accessible through traditional search engines, at which vendors offered for sale illegal narcotics such as fentanyl, carfentanil, cocaine, heroin, and crystal methamphetamine, firearms, including assault rifles, malicious software and hacking tools; stolen financial information and payment cards and numbers; access device-making equipment and other illegal contraband.
Prihar and Phan received kickback payments, representing commissions on the proceeds from each purchase of the illegal goods made by individuals referred to a Darknet marketplace from the DDW site. These kickback payments were made in virtual currency, such as bitcoin, and paid into a DDW-controlled bitcoin “wallet.” To conceal and disguise the nature and source of the illegal proceeds, totaling over $15 million, Prihar and Phan transferred their illegal kickback payments from their DDW bitcoin wallet to other bitcoin accounts and to bank accounts they controlled in the names of shell companies.
The Money Laundering Kickback Scheme
According to the indictment, Darknet marketplaces operated on the “Tor” network, a computer network designed to facilitate anonymous communication over the Internet. Because of Tor’s structure, a user who wanted to visit a particular Darknet marketplace needed to know the site’s exact .onion address. DDW simplified this process by including pages of hyperlinks to various Darknet marketplaces’ .onion addresses.
Further, the indictment alleges that users who visited DDW were able to click on the hyperlinks to navigate directly to the Darknet marketplaces. Embedded in these links were unique account identifiers, which enabled the individual marketplaces to pay what they referred to as “Referral Bonuses,” to DDW. Kickbacks in the form of referral bonuses, paid in virtual currency, were a percentage of the profits of all of the activities conducted on the marketplace by any user who made purchases on the marketplace by using DDW’s customized referral link. Through the use of the referral links, DDW received kickbacks from Darknet marketplaces every time a purchaser used DDW to buy illegal narcotics or other illegal goods on the marketplace.
During the time period relevant to this Indictment, DDW’s referral links were widely used by users in the Western District of Pennsylvania and elsewhere to access and then create accounts on many Darknet marketplaces, including AlphaBay Market, Agora Market, Abraxas Market, Dream Market, Valhalla Market, Hansa Market, TradeRoute Market, Dr. D’s, Wall Street Market, and Tochka Market. When AlphaBay was seized by law enforcement in 2017, it was one of the largest Darknet markets that offered illegal drugs, fraudulent identification materials, counterfeit goods, hacking tools, malware, firearms, and toxic chemicals. Approximately 23.6 percent of all orders completed on AlphaBay were associated with an account created through a DDW referral link, meaning that DDW received a referral fee for 23.6 percent of all orders made on AlphaBay.
Over the course of the conspiracy, the defendants referred hundreds of thousands of users to Darknet marketplaces. These users in turn completed hundreds of millions’ of dollars’ worth of transactions, including purchases of illegal narcotics such as fentanyl, carfentanil, cocaine, heroin, and crystal methamphetamine; firearms, including assault rifles; malicious software and hacking tools; stolen financial information and payment cards and numbers; access device-making equipment; and other illegal contraband. Through the use of the referral links, the defendants received kickbacks worth millions of dollars, generated from the illicit sales conducted on Darknet marketplace accounts created through the site.
The defendants grew and promoted the DDW site, which functioned to drive further traffic to the DDW referral links, generating additional income for the defendants. Prihar functioned as the administrator of DDW. He registered the domain, made infrastructure payments and maintained control over site content. Phan was responsible for DDW’s technical operations, designing and maintaining the website’s day-to-day operation. Phan and Prihar communicated on a daily basis to facilitate their criminal enterprise.
From in or before November 2014 until the date of this indictment, the defendants controlled a bitcoin wallet that they used to receive the kickback payments for purchases completed on the various Darknet marketplaces. Throughout the course of the conspiracy, DDW operated accounts on Darknet markets and communicated with the operators of various Darknet markets regarding kickback payments.
Between in and around November 2014 and April 10, 2019, DDW received approximately 8,155 bitcoin in kickback payments from Darknet marketplaces, worth approximately $8,414,173 when adjusted for the trading value of bitcoin at the time of each transaction. The bitcoin was transferred to DDW’s bitcoin wallet, controlled by the defendants, in a series of more than 40,000 deposits and was subsequently withdrawn to various destinations both known and unknown to the grand jury through over 2,700 transactions. Due to bitcoin’s fluctuating exchange rate, the value of the bitcoin at the time of the withdrawals from the DDW bitcoin wallet equated to approximately $15,489,415. In seeking to conceal their illicit activities and protect their criminal enterprise and the illegal proceeds it generated, the defendants set up numerous shell companies around the world. The defendants used these companies to move their ill-gotten gains and conduct other activity related to DDW. These companies included WwwCom Ltd., M&T Marketing, Imtech, O.T.S.R. Biztech, and Tal Advanced Tech.
An indictment contains only allegations. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was brought in conjunction with the Joint Criminal Opioid and Darknet Enforcement (J-CODE) Team. Established within the FBI’s Hi-Tech Organized Crime Unit, J-CODE is a U.S. Government initiative announced in January 2018, aimed at targeting drug trafficking, especially fentanyl and other opioids, on the Darknet. The J-CODE team brings together agents, analysts, and professional staff with expertise in drugs, gangs, health care fraud, and more. J-CODE entities, including the FBI, U.S. Drug Enforcement Administration (DEA), U.S. Postal Inspection Service (USPIS), U.S. Customs and Border Protection (CBP), U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Department of Defense (DOD), Financial Crimes Enforcement Network (FinCEN), and Department of Justice focus on disrupting the sale of drugs via the Darknet and dismantling criminal enterprises that facilitate this trafficking.
Assistant U.S. Attorney Jessica Lieber Smolar of the U.S. Attorney’s Office for the Western District of Pennsylvania, Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section, and Trial Attorneys Alexander Gottfried and Joseph Wheatley of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case. The FBI’s Pittsburgh Field Office is investigating the case. The Department thanks the French authorities, as well as its law enforcement colleagues at the U.S. Postal Inspection Service, National Cyber-Forensics and Training Alliance, IRS Criminal Investigation, Brazilian Federal Police Cyber Division, Israeli National Police, Dutch National Police, Europol Darkweb Team, German Federal Criminal Police (the Bundeskriminalamt), Polizeidirektion Zwickau and Saxon Police in Germany and law enforcement authorities in the United Kingdom. Significant assistance was also provided by the U.S. Department of Justice’s Office of International Affairs. The prosecution and investigative team thanks the AlphaBay prosecution team and the Criminal Division’s Money Laundering and Asset Recovery Section for their assistance.
Administrators of Deepdotweb Indicted for Money Laundering Conspiracy Relating to Kickbacks for Sales of Fentanyl, Heroin, and Other Illegal Goods on the DarknetRead the Press Release
PITTSBURGH - United States Attorney Scott W. Brady announced today the alleged owners and operators of a website known as DeepDotWeb (DDW) have been arrested on charges of money laundering conspiracy relating to millions of dollars in kickbacks they received for purchases of fentanyl, heroin, and other illegal contraband by individuals referred to Darknet marketplaces by DDW. The website has now been seized by court order.
In an indictment unsealed today, Tal Prihar, 37, an Israeli citizen residing in Brazil, and Michael Phan, 34, an Israeli citizen residing in Israel, were charged on April 24, 2019, in a one-count indictment by a federal grand jury in Pittsburgh. Prihar was arrested on May 6, 2019 by French law enforcement authorities in Paris, pursuant to a provisional arrest request by the United States in connection with the indictment. Phan was arrested in Israel on May 6 pursuant to charges in Israel. Further, FBI Pittsburgh seized DDW, pursuant to a court order issued by the U.S. District Court for the Western District of Pennsylvania.
“This is the single most significant law enforcement disruption of the Darknet to date,” said U.S. Attorney Scott W. Brady. “With western Pennsylvania at the epicenter of the opioid crisis in America, the U.S attorney’s office has leveraged its significant cyber expertise in attacking the sale of fentanyl and opioids on the Darknet. This case signifies the first takedown of the very infrastructure that supports and promotes the illegal marketplaces where these deadly drugs are sold on the Darknet.”
According to the indictment, between October 2013 until the date of the indictment, Tal Prihar and his co-conspirator Michael Phan allegedly owned and operated DDW, hosted at www.deepdotweb.com.
DDW provided users with direct access to numerous online Darknet marketplaces, not accessible through traditional search engines, where vendors sold illegal narcotics such as fentanyl, carfentanil, cocaine, heroin, and crystal methamphetamine, firearms, including assault rifles, malicious software and hacking tools stolen financial information and payment cards and numbers access device-making equipment and other illegal contraband.
Prihar and Phan received kickback payments, representing commissions on the proceeds from each purchase of the illegal goods made by individuals referred to a Darknet marketplace from the DDW site. These kickback payments were made in virtual currency, such as bitcoin, and paid into a DDW-controlled bitcoin “wallet.” To conceal and disguise the nature and source of the illegal proceeds, totaling over $15 million, Prihar and Phan transferred their illegal kickback payments from their DDW bitcoin wallet to other bitcoin accounts and to bank accounts they controlled in the names of shell companies.
The Money Laundering Kickback Scheme
According to the indictment, Darknet marketplaces operated on the “Tor” network, a computer network designed to facilitate anonymous communication over the Internet. Because of Tor’s structure, a user who wanted to visit a particular Darknet marketplace needed to know the site’s exact .onion address. DDW simplified this process by including pages of hyperlinks to various Darknet marketplaces’ .onion addresses.
Users who visited DDW were able to click on the hyperlinks to navigate directly to the Darknet marketplaces. Embedded in these links were unique account identifiers, which enabled the individual marketplaces to pay what they referred to as “Referral Bonuses,” to DDW. These kickbacks, paid in virtual currency, were a percentage of the profits of all of the activities conducted on the marketplace by any user who made purchases on the marketplace by using DDW’s customized referral link. Through the use of the referral links, DDW received kickbacks from Darknet marketplaces every time a purchaser used DDW to buy illegal narcotics or other illegal goods on the marketplace.
During the time period relevant to this Indictment, DDW’s referral links were widely used by users in the Western District of Pennsylvania and elsewhere to access and then create accounts on many Darknet marketplaces, including AlphaBay Market, Agora Market, Abraxas Market, Dream Market, Valhalla Market, Hansa Market, TradeRoute Market, Dr. D’s, Wall Street Market, and Tochka Market. These Darknet markets offer illegal drugs, fraudulent identification materials, counterfeit goods, hacking tools, malware, firearms, and toxic chemicals. Two of the largest markets included AlphaBay and Hansa Market, which were both seized by law enforcement in 2017. Approximately 23 percent of all orders completed on AlphaBay and 47% of all orders completed on Hansa were associated with accounts created through DDW referral links, meaning that DDW received referral fees for 23%of all orders made on AlphaBay and 47% of all orders made on Hansa.
During the time period relevant to this Indictment, DDW’s referral links were widely used by users in the Western District of Pennsylvania and elsewhere to access and then create accounts on many Darknet marketplaces, including AlphaBay Market, Agora Market, Abraxas Market, Dream Market, Valhalla Market, Hansa Market, TradeRoute Market, Dr. D’s, Wall Street Market, and Tochka Market. When AlphaBay was seized by law enforcement in 2017, it was one of the largest Darknet markets that offered illegal drugs, fraudulent identification materials, counterfeit goods, hacking tools, malware, firearms, and toxic chemicals. Approximately 23.6%of all orders completed on AlphaBay were associated with an account created through a DDW referral link, meaning that DDW received a referral fee for 23.6% of all orders made on AlphaBay.
Over the course of the conspiracy, the defendants referred hundreds of thousands of users to Darknet marketplaces. These users in turn completed hundreds of millions’ of dollars’ worth of transactions, including purchases of illegal narcotics such as fentanyl, carfentanil, cocaine, heroin, and crystal methamphetamine, firearms, including assault rifles, malicious software and hacking tools, stolen financial information and payment cards and numbers, access device-making equipment, and other illegal contraband. Through the use of the referral links, the defendants received kickbacks worth millions of dollars, generated from the illicit sales conducted on Darknet marketplace accounts created through the site.
The defendants grew and promoted the DDW site, which functioned to drive further traffic to the DDW referral links, generating additional income for the defendants. Prihar functioned as the administrator of DDW. He registered the domain, made infrastructure payments and maintained control over site content. Phan was responsible for DDW’s technical operations, designing and maintaining the website’s day-to-day operation. Phan and Prihar communicated on a daily basis to facilitate their criminal enterprise.
From in or before November 2014 until the date of this indictment, the defendants ,,ontrolled a bitcoin wallet that they used to receive the kickback payments for purchases completed on the various Darknet marketplaces. Throughout the course of the conspiracy, DDW operated accounts on Darknet markets and communicated with the operators of various Darknet markets regarding kickback payments.
Between in and around November 2014 and April 10, 2019, DDW received approximately 8,155 bitcoin in kickback payments from Darknet marketplaces, worth approximately $8,414,173 when adjusted for the trading value of bitcoin at the time of each transaction. The bitcoin was transferred to DDW’s bitcoin wallet, controlled by the defendants, in a series of more than 40,000 deposits and was subsequently withdrawn to various destinations both known and unknown to the grand jury through over 2,700 transactions. Due to bitcoin’s fluctuating exchange rate, the value of the bitcoin at the time of the withdrawals from the DDW bitcoin wallet equated to approximately $15,489,415. In seeking to conceal their illicit activities and protect their criminal enterprise and the illegal proceeds it generated, the defendants set up numerous shell companies around the world. The defendants used these companies to move their ill-gotten gains and conduct other activity related to DDW. These companies included WwwCom Ltd., M&T Marketing, Imtech, O.T.S.R. Biztech, and Tal Advanced Tech.
“While there have been successful prosecutions of various Darknet marketplaces, this prosecution is the first to attack the infrastructure supporting the Darknet itself,” said U.S. Attorney Brady. The website has been seized by the FBI based on a court order obtained in the Western District of Pennsylvania.
“Websites like DeepDotWeb pose global threats that require global partnerships,” said FBI Special Agent in Charge Robert Jones. “DDW acted as a gateway to the Darknet, allowing for the purchase and exchange of illicit drugs and other illegal items around the world, and the individuals charged today profited from those nefarious transactions. The efforts of federal and international law enforcement should send the message that we are coming after the operators of these dangerous websites.”
An indictment contains only allegations. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was brought in conjunction with the Hi-Tech Organized Crime Unit, Joint Criminal Opioid and Darknet Enforcement (J-CODE) Team. Announced by the U.S. Attorney General in Pittsburgh, Pennsylvania, in January, 2018, J-CODE is a Department of Justice initiative targeting drug trafficking, especially fentanyl and other opioids, on the Darknet. The J-CODE team brings together experienced prosecutors, agents, analysts and professional staff with expertise in drugs, gangs, health care fraud and cyber-based investigations. J-CODE entities, including the FBI, Drug Enforcement Administration, U.S. Postal Inspection Service, U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement Homeland Security Investigations, Department of Defense, Financial Crimes Enforcement Network and Department of Justice focus on disrupting the sale of drugs via the Darknet and dismantling criminal enterprises that facilitate this trafficking.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Assistant U.S. Attorney Jessica Lieber Smolar of the U.S. Attorney’s Office for the Western District of Pennsylvania, Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section, and Trial Attorneys Alexander Gottfried and Joseph Wheatley of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case. The FBI’s Pittsburgh Field Office is investigating the case. The United States Attorney thanks the French authorities, as well as its law enforcement colleagues at the United States Postal Inspection Service, Internal Revenue Service, Brazilian Federal Police Cyber Division, Israeli National Police, Dutch National Police, Europol Darkweb Team, Federal Criminal Police Office of Germany, and law enforcement in the United Kingdom. Significant assistance was also provided by the United States Department of Justice, Criminal Division’s Office of International Affairs.
Indictment- DeepDotWeb Indictment
15 Individuals Convicted, Sentenced in Heroin and Cocaine Trafficking ConspiracyRead the Press Release
PROVIDENCE, RI – The fifteenth and final defendant arrested, charged and convicted for leading or participating in a drug trafficking conspiracy that repeatedly arranged for and supervised multi-kilogram shipments of heroin and cocaine from Mexico to stash houses in Cranston and Woonsocket, R.I., then distributed the drugs to mid-level drug dealers in the greater Providence and greater Boston areas and in Hartford, Conn., was sentenced today in federal court in Providence.
An FBI Safe Streets Gang Task Force investigation dubbed “Operation Triple Play,” in reference to three brothers, Juan, Claudio, and Hector Valdez, all Dominican nationals who admitted to running the drug trafficking organization, dismantled the operation that imported substantial quantities of heroin and cocaine from Mexico into Rhode Island.
Juan Valdez, 51, of Milton, Mass., and Claudio Valdez, 46, of Woonsocket, R.I., are currently serving sentences of 20 years in federal prison. Hector Valdez, 45, of Woonsocket, R.I., is serving a sentence of 108 months in federal prison.
In addition to executing fourteen court-authorized searches in three states and arresting fifteen individuals, law enforcement seized nearly 3.5 kilograms of fentanyl, nearly four kilograms of heroin - most of which was laced with fentanyl, more than 1.6 kilograms of cocaine, 142 grams of crack cocaine, more than 137 pounds of cutting agents, $45,500 in cash, and nine vehicles, five of which were found to contain hidden compartments used for the transportation of drugs and money.
Eleven of the “Operation Triple Play” defendants, many who had been living in the United States with stolen identities, including the three brothers who led the drug trafficking organization, have or will face deportation proceedings. According to court records, Juan Valdez was previously deported from the United States on four occasions. Claudio and Hector were previously deported one occasion.
The conclusion of these cases brought in U.S. District Court in Providence as the result of Operation Triple Play is announced by United States Attorney Aaron L. Weisman and FBI Special Agent in Charge Joseph R. Bonavolonta.
“This investigation by a team of hard working, relentless members of law enforcement under the direction of the Rhode Island FBI Safe Streets Gang Task Force drove a spike through the heart of a significant drug trafficking organization and put them out of business. An equally committed team of prosecutors ensured that each and every defendant arrested and charged was held accountable for their actions,” said United States Attorney Aaron L. Weisman. “This office and law enforcement remain committed to working together to provide the personnel and the resources necessary to disrupt and dismantle criminal drug trafficking organizations that destroy so many lives.”
Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division added, “It’s a good day when 15 drug traffickers are taken off the streets, and their drug trafficking organization is dismantled. This case shows how drug cartels based in foreign countries will go anywhere to distribute their deadly products, threatening the safety and stability of our neighborhoods. The FBI’s Safe Streets Gang Task Force will continue to work with our law enforcement partners to aggressively track down others like them who are recklessly poisoning our communities with illegal drugs, bringing nothing but danger—and in far too many cases death—to our cities.”
Operation Triple Play was an Organized Crime Drug Enforcement Task Force investigation initiated by the FBI Safe Streets Task Force. Under the direction of the FBI, the participating agencies in this investigation included the Drug Enforcement Administration (Providence and Boston Resident Agencies); Immigration and Customs Enforcement; Rhode Island State Police; Providence Police Department; Woonsocket Police Department; Central Falls Police Department; Cranston Police Department; Warwick Police Department; and the Rhode Island Department of Corrections.
United States Attorney Aaron L. Weisman and FBI Special Agent in Charge Joseph R. Bonavolonta thank the U.S. Department of State and United States Attorney’s Offices in the District of Massachusetts and the District of Connecticut for their assistance in the investigation of this matter. They also acknowledge and thank the DEA for their financial and technical support during Operation Triple Play.
The cases were prosecuted by Assistant U.S. Attorney Gerard B. Sullivan, with the assistance of Assistant U.S. Attorneys William J. Ferland and Ronald A. Gendron.
Tuesday 7 May 2019
Weld County Woman Sentenced to Federal Prison for Stealing over $180,000 from the United States Postal Service Through Hundreds of False Insurance ClaimsRead the Press Release
DENVER – Lorrine Kimmel, age 48, of Weld County, Colorado, was sentenced today by Senior U.S. District Court Judge Wiley Y. Daniel to serve 15 months in federal prison, followed by 3 years on supervised release for defrauding the U.S. Postal Service (USPS) by mail fraud, U.S. Attorney Jason Dunn and U.S. Postal Service Office of Inspector General Special Agent in Charge of the Western Area Field Office John D. Masters announced today. The defendant was also ordered to pay $188,575 in restitution. Kimmel appeared at the sentencing hearing free on bond, and was ordered to report to a Bureau of Prison facility once one is designated.
Kimmel was charged by Information on August 29, 2018. She pled guilty to mail fraud on November 8, 2018. She was sentenced today, May 7, 2019.
According to court documents, including the stipulated facts contained in the plea agreement, between October 2014 and July 2018, the defendant engaged in a complex scheme to defraud the USPS by filing 770 false insurance claims where she claimed that the contents of parcels she had mailed were damaged.
The defendant initiated each false claim by mailing as many as ten or more packages per week from her local post office in Kersey, Colorado, or a larger, nearby post office in Greeley. She typically claimed that the items she was shipping were purchased by customers and were damaged in transit. In fact, both of those facts were false. The recipients listed on most of the parcels were either fictitious individuals or entities that had never ordered anything from Kimmel or her business. She then purchased insurance on each of those packages, and attempted to defeat detection by using variants on addresses and email addresses for each of those packages.
During the three year period, Kimmel filed insurance claims with the U.S. Postal Service totaling $227,005, and, of those claims, she was paid $188,575. She used this scheme to obtain tax-free money to finance her personal expenses.
“The Postal Service plays a very important role in our country,” said U.S. Attorney Jason Dunn. “A fraud upon it is a fraud upon all of us that use the USPS and pay for its services.”
“One of the missions of the U.S. Postal Service Office of inspector General (OIG) is to help safeguard the USPS from external crimes, such as fraud. OIG Special Agents vigorously investigate these cases,” said Special Agent-in-Charge John D. Masters. “This sentencing serves as a reminder and deterrent to anyone thinking this type of behavior is acceptable. Such actions come with consequences. The OIG’s efforts, with the support of the United States Attorney’s Office, District of Colorado, help maintain the integrity of the Postal Service.”
This case was investigated by the U.S. Postal Service Office of the Inspector General. The defendant was prosecuted by Assistant U.S. Attorney Hetal Doshi.
Vestavia Hills Cardiologist Sentenced to 87 Months in Prison for Illegally Prescribing OpioidsRead the Press Release
BIRMINGHAM – A federal judge on Wednesday sentenced a physician to 87 months in prison for illegally prescribing opioid painkillers, announced United States Attorney Jay E. Town, Drug Enforcement Administration-Birmingham Assistant Special Agent in Charge Clay Morris and Internal Revenue Service-Criminal Investigation Special Agent in Charge Thomas J. Holloman.
United States District Judge L. Scott Coogler sentenced STEVEN BRUCE HEFTER, 61, of Vestavia Hills, to 87 months in prison, to be followed by three years of supervised release and was directed to forfeit more than $38,000. Hefter must report to the Bureau of Prisons on June 30th.
Hefter pled guilty in December 2017 to one count of conspiracy to distribute controlled substances outside the usual scope of professional practice and not for a legitimate medical purpose. The charge arose from Hefter’s involvement between 2012 and 2016 with the now defunct clinic Cindy Dunn & Dr. Buckingham, M.D., Weight Loss Clinic and Pain Management (CDPM) in Moody, Alabama.
“The opioid crisis in the United States accounts for the overdose deaths of tens of thousands of Americans every year,” Town said. “This sentence puts on notice any medical provider that justice will find you, from the street corner to the clinic. There is no hiding behind the white coat or white shoes. You will be caught, you will be prosecuted and you will occupy a federal prison bed. We will even leave the light on for you.”
“Today’s sentence should serve as a warning to any medical professional considering exploiting their patients for profit: you will be caught, you will be prosecuted, and you will pay a steep price,” said Thomas J. Holloman, Special Agent in Charge IRS Criminal Investigation, Atlanta Field Office. “IRS-CI remains committed to working with our law enforcement partners to bring those seeking to enrich themselves at the expense of their patients, to justice.”
“As always, DEA stands ready to protect our citizens, families and often time our children from the devastating effects from the criminal diversion of opioid based drugs.” Morris said. “We will not allow physicians who have abandoned their Hippocratic oath to continue to poison our communities. The DEA and our law enforcement partners will continue to aggressively investigate those who choose profit over patient care.”
In early 2018, Hefter surrendered his Alabama medical license and his federal Drug Enforcement Administration registration authorizing him to prescribe controlled substances.
Hefter was a cardiologist by training, with no specialization in pain management. Nevertheless, he worked for CDPM as a pain management physician. CDPM was a pill mill. The cash-only clinic received anywhere from 40 to 80 patients in a single day. The primary method for treating pain was by writing multiple prescriptions for high doses of potent and addictive opioids, usually oxycodone, for months and years without offering any other modes of treatment. According to Alabama’s Prescription Drug Monitoring Program, which tracks the dispensing of controlled substances, during the span of approximately four months in late 2015, Hefter wrote 2,785 prescriptions for 279,665 opioid pills. The vast majority of Hefter’s prescriptions were pre-signed and issued to patients while Hefter was absent from CDPM. CDPM patients were rarely, if ever, examined properly. CDPM didn’t even have a patient examination table. Many patients were either drug addicts or were diverting their pills to the street.
“This sentence should serve as a warning to unscrupulous doctors who abuse their prescribing authority and put lives at risk for financial gain, said Assistant United States Attorney Mohammad Khatib, “You are not above the law, and when you are caught, justice awaits.”
This case was a multi-agency investigation by the DEA and IRS-Criminal Investigation as part of an Organized Crime Drug Enforcement Task Force operation. Assistant United States Attorney Mohammad Khatib prosecuted the case.
United States Files Civil Action to Collect Debts Owed for Violations of Federal Mine Safety ActRead the Press Release
Roanoke, VIRGINIA – United States Attorney Thomas T. Cullen and the Assistant Secretary of Labor for the Mine Safety and Health Administration (MSHA) David G. Zatezalo, announced today the filing of a civil action against 23 coal companies operating in Virginia, West Virginia, Tennessee, Alabama, and Kentucky, seeking over $4.7 million in unpaid penalties for violations of the Federal Mine Safety and Health Act.
“The MSHA plays a critical role in protecting our coal miners and ensuring that mine owners and operators fulfill their legal obligations to provide safe and healthy working conditions,” U.S. Attorney Cullen stated today. “As alleged in the complaint, the defendants racked up over 2,000 safety violations over a five-year period and have, to date, refused to comply with their legal obligations to pay the resulting financial penalties. This is unacceptable, and, as indicated by this suit, we will hold them accountable.”
“MSHA stands with the Department of Justice in seeking to hold mine operators responsible for the penalties they owe,” said Assistant Secretary Zatezalo. “In the Mine Act, Congress was extremely clear on enforcement matters: Federal inspectors issue citations for safety and health violations, which carry a monetary fine. Failure to pay penalties is unfair to miners who deserve safe workplaces, and to mine operators who play by the rules.”
According to court documents filed today, between May 3, 2014 and May 3, 2019, MSHA collectively issued at least 2,297 citations to the defendant mine operators for violations of the Mine Health and Safety Act, and at the appropriate time, assessed civil penalties for each violation, pursuant to the law.
The defendants failed to pay the penalties or even notify MSHA that it contested the assessed civil penalties. When defendants failed to pay the civil penalties for 100 days despite two demand letters, MSHA referred the civil penalties to the Department of Treasury for collection. The Department of Treasury made another written demand on the defendants, but they still failed to pay, and the Department of Treasury referred the civil penalties to the Department of Justice for collection. On September 5, 2018, the United States Attorney’s Office for the Western District of Virginia made a written demand on the defendants for the delinquent debts. The defendants, however, still failed to pay the outstanding debts and, as of the date of this filing, continue not to pay both the old and newly assessed penalties.
In the complaint, the United States is seeking judgment against the 23 defendants for $3,954,984.37, the total principal amount of unpaid civil penalties owed. An additional $821,386.03 in administrative costs and interest is being sought.
The 23 defendants are: Southern Coal Corporation; Justice Coal of Alabama; A&G Coal Corporation; Black River Coal; Chestnut Land Holdings; Double Bonus Coal Company; Dynamic Energy; Four Star Resources; Frontier Coal Company; Infinity Energy; Justice Energy Company; Justice Highwall Mining; Kentucky Fuel Corporation; Keystone Service Industries; M&P Services; Nine Mile Mining; Nufac Mining Company; Pay Car Mining; Premium Coal Company; S and H Mining; Sequoia Energy; Tams Management; and Virginia Fuel Corporation.
According to court documents, each of the defendant companies operated at least one mine with delinquent, uncontested MSHA penalties.
Assistant United States Attorney Krista Consiglio Frith and Special Assistant United States Attorney Jason Grover, an attorney with the Department of Labor, are representing the United States in these matters.
Three Members of Robbery Crew Plead Guilty to Conspiracy and Related Charges Regarding Scheme to Commit North Bay Home Invasion RobberiesRead the Press Release
SAN FRANCISCO- Jaray Simmons, Nakia Jones, and Siddiq Abdullah pleaded guilty today to their respective roles in a scheme to conduct home invasion robberies in California to obtain marijuana for resale on the East Coast, announced United States Attorney David L. Anderson and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett. The guilty pleas were accepted by the Honorable Edward M. Chen, U.S. District Judge.
According to the guilty pleas, Simmons, 29, of Winston-Salem, N.C., Jones, 23, of Richmond, Va., and Abdullah, 22 , of Richmond, Va., were three of eight codefendants who agreed to target houses in northern California they believed contained bulk quantities of marijuana and the cash proceeds of marijuana sales. The eight codefendants agreed to conduct armed home invasion robberies of the targeted homes and to distribute for a profit on the East Coast the marijuana they were able to steal.
In March of 2018, Simmons traveled by car with three codefendants from Winston-Salem to California to carry out the plan. When the four codefendants reached Sacramento, they obtained multiple weapons and one of the codefendants purchased supplies including jackets, duffel bags, scissors, a vacuum sealer, and vacuum bags. The codefendants purchased these items to package for shipment the marijuana stolen during the home invasion robberies. Meanwhile, Jones, Abdullah, and an additional two co-defendants traveled from Richmond to Washington, D.C., and then from Washington by plane to San Francisco. After arriving in Northern California, the codefendants obtained a supply of firearms and ammunition.
All eight defendants met in Novato, Calif., on March 12, 2019, and traveled in two cars from Novato to a residential street in Petaluma. The plea agreements provide the following facts regarding the events of the evening:
A codefendant kicked open the front door of the residence and six of the coconspirators entered. The residence was occupied by a man and a woman who were forced inside the bathroom and bound with duct tape. At least one codefendant threatened to kill the victims if they did not cooperate, at least one codefendant pointed a firearm at the victims to threaten them into providing the location of marijuana and money, and at least one codefendant struck the male victim inside the bathroom in an effort to get him to disclose the location of marijuana and money. The victims explained they did not have any marijuana and that the defendants were in the wrong house.
Six of the defendants walked to a nearby second house. The group separated into two smaller groups and broke into the second house through both the front door and a side door. A codefendant grabbed a telephone from a woman occupant and threw it on the floor. At least one codefendant questioned the female victim about the location of marijuana and money. The woman was dragged by the hair and locked inside a closet. The woman said there was no marijuana in the house but that she had money in a drawer.
Two codefendants who were outside the second house encountered a neighbor. They brought the neighbor into the second house, pointed a gun at the victim, tied him with an electrical extension cord, and repeatedly struck him while asking where the marijuana and money was located. The male victim repeated that the defendants were in the wrong house.
The defendants heard the police approaching and left the houses. The defendants attempted to escape in the two vehicles in which they arrived. The police gave chase. Eventually, all the codefendants were apprehended, some as they abandoned their vehicle, others when they arrived at San Francisco International Airport later in the afternoon of March 12, 2018, and one defendant several days later.
On April 26, 2018, a federal grand jury indicted Simmons, Jones, and Abdullah and the other five defendants charging all with conspiracy to commit robbery affecting interstate commerce, in violation of 18 U.S.C. § 1951(a); conspiracy to possess with intent to distribute marijuana, in violation of 21 U.S.C. § 846; two counts of attempted robbery affecting interstate commerce, in violation of 18 U.S.C. § 1951(a) and 2; and possession or use of a firearm during and in relation to and in furtherance of a crime of violence and a drug trafficking crime, in violation of 18 U.S.C. § 924(c)(1)(A)(i) and 2. Simmons, Jones, and Abdullah all pleaded guilty to one count each of conspiracy to commit robbery affecting interstate commerce, conspiracy to possess with intent to distribute marijuana, and use or possession of a firearm.
Judge Chen scheduled Jones’s sentencing hearing for July 31, 2019, Simmons’s sentencing hearing for August 7, 2019, and Abdullah’s sentencing hearing for August 14, 2019. The maximum statutory penalties for conspiracy to commit robbery affecting interstate commerce is 20 years in prison and a $250,000 fine. The maximum statutory penalties for conspiracy to possess with intent to distribute marijuana is 5 years in prison and a $250,000 fine. The maximum statutory penalties for use or possession of a firearm during and in relation to a crime of violence is life in prison and a $250,000 fine. Additional fines, forfeitures, and restitution also may be ordered; 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 Christiaan Highsmith is prosecuting the case with the assistance of Lance Libatique. The prosecution is the result of an investigation by the FBI, the Sonoma County Sheriff’s Department, and the Santa Rosa Police Department.
Third Nigerian National Admits Role in Business E-Mail Compromise Scheme Targeting CFOs and ControllersRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that STANLEY HUGOCHUKWU NWOKE, also known as “Stanley Banks,” “Banks,” “Hugo Banks,” “Banky,” and “Jose Calderon,” 28, a citizen of Nigeria, pleaded guilty today before U.S. District Judge Janet C. Hall in New Haven to a fraud offense stemming from his role in a business e-mail compromise scheme.
According to court documents and statements made in court, Nwoke conspired with Adeyemi Odufuye and others in a business compromise scheme that targeted hundreds, if not thousands, of CFOs, controllers and others at businesses, nonprofit organizations, and schools in Connecticut and across the United States. As part of the scheme, Odufuye, Nwoke and others, including Olumuyiwa Yahtrip Adejumo, sent e-mails addressed to executives that were made to appear to be sent from the legitimate e-mail address of the CEO or other executive from the business. The emails were sent with the intent of having the recipients send or wire money to bank accounts used by members of the conspiracy.
The investigation revealed that scheme participants controlled multiple e-mail and social media accounts used in the scheme and, in certain instances, sent e-mails and attachments containing malware to the intended recipients.
In late 2015, Odufuye and others sent or caused to be sent dozens of e-mails to the controller of a company in Torrington, Connecticut. In the e-mails, Odufuye posed at the real CEO of the victim company and instructed the controller to send multiple wire transfers exceeding a total of $1 million from the company’s accounts to various individuals and purported entities. The company then sent five wire transfers totaling more than $500,000 to accounts in Virginia, Florida, Washington, D.C., and Hong Kong.
The investigation revealed that Odufuye and others also targeted a company headquartered in Waterbury, Connecticut, as part of this scheme.
In pleading guilty, Nwoke agreed that the loss related to his role in the scheme is at least $109,100. The government believes that the loss attributable to Nwoke is over $1.8 million.
Nwoke was arrested in Mauritius on May 8, 2018. He was extradited to the U.S. on May 25, 2018, and is detained.
Nwoke pleaded guilty to one count of conspiracy to commit wire fraud, an offense that carries a maximum term of imprisonment of 20 years. Judge Hall scheduled sentencing for August 5, 2019.
Nwoke has agreed to a restitution order of $662,053.87.
Odufuye, formerly residing in Sheffield, United Kingdom, and Adejumo, formerly residing in Toledo, Ohio, both citizens of Nigeria, previously pleaded guilty to related charges. On December 12, 2018, Odufuye was sentenced to 45 months of imprisonment and was ordered to pay restitution of $921,497.87 to victims of the scheme. On August 17, 2018, Adejumo was sentenced to 15 months of imprisonment.
This matter has been investigated by the Federal Bureau of Investigation and the Connecticut Cyber Task Force. The case is being prosecuted by Assistant U.S. Attorney David T. Huang.
U.S. Attorney Durham thanked the Department of Justice’s Office of International Affairs, the United Kingdom’s National Crime Agency, the United Kingdom’s Metropolitan Police, and the Mauritius Police Force’s Central Criminal Investigation Department for their assistance in this case.
To contact the Connecticut Cyber Task Force, please call the FBI in New Haven at 203-777-6311.
St. Louis Man Pleads Guilty to Armed RobberiesRead the Press Release
St. Louis, MO –Jerrinon Tate, 28, of St. Louis, MO, pleaded guilty to two counts of brandishing a firearm in furtherance of a crime of violence. He appeared today before U.S. District Judge Henry E. Autrey who accepted his plea and set his sentencing date for August 13, 2019.
According to the plea agreement, on June 21, 2018 at 1:00 a.m., Tate entered the Quik Trip located at 10845 Lilac in Bellefontaine Neighbors. He displayed a black semi-automatic pistol to the clerk and demanded money from the case drawer.
On June 21, 2018 at 7:30 a.m., Tate entered the Moto Mart located at 11005 Riverview Drive in the City of St. Louis. He displayed a black semi-automatic pistol and demanded that the clerk give him money.
On June 21, 2018 at 7:20 p.m., Tate entered the Family Dollar store located at 8971 Halls Ferry, St. Louis, Missouri. Tate displayed a firearm, demanded money, and threatened to shoot an employee if he/she did not comply.
In the armed robberies, the total combined cash that Tate took was approximately $847.
The firearms charges carry penalties of not less than seven years nor more than life and/or fine of $250,000 on each count consecutive to any other sentence imposed. Accordingly, there is a mandatory minimum sentence of 14 years and a maximum possible penalty of life imprisonment. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The Federal Bureau of Investigation investigated this case.
St. Croix Man Sentenced to Five Years in Prison for Distribution of Crack CocaineRead the Press Release
St. Croix, USVI – Robert Klyvert, 47, of St. Croix, was sentenced Monday for distribution of crack cocaine, United States Attorney Gretchen C.F. Shappert announced.
Visiting Judge Anne E. Thompson sentenced Klyvert to 60 months and five years of supervised release. Judge Thompson also ordered him to pay a fine of $1,000 and a $100 special assessment.
On January 29, 2019, Klyvert pleaded guilty to distribution of crack cocaine. According to his plea agreement Klyvert, aka “Family”, told a confidential human source (CHS) in September of 2016 that he wanted to begin supplying cocaine to the CHS directly, because one of Klyvert’s drug associates was now dead. In a series of phone calls and text messages over the next few months, Klyvert advised the CHS that he had a kilogram of cocaine in Florida, that he would contact the CHS once the cocaine arrived in the United States. Klyvert instructed the CHS that he would need to travel to Florida to obtain the cocaine, which would be “fronted” to the CHS, so that the CHS would have about a week to sell it and pay $25,000 back to the defendant.
According to court documents, Klyvert informed the CHS that the cocaine wasn’t good for “the nose” and that it was only good for converting into crack cocaine. Klyvert also told the CHS that if he could sell this kilogram quickly, Klyvert’s supplier would ship another kilogram to the United States on January 2, 2017 and the CHS could buy that as well.
On December 27, 2016, Klyvert texted the CHS the phone number for the drug supplier with whom the CHS was to meet in Orlando to obtain the cocaine. Three days later, the CHS received a text from the contact number supplied by Klyvert providing the address where the CHS was to pick up the drugs. The address provided was the address of record for Nolly King, Jr., who was subsequently charged, pled guilty, and was sentenced to prison last week in federal court.
The CHS obtained the cocaine from King and on December 31, 2016, Klyvert texted the CHS advising the CHS that he only needed to pay $22,000 for the cocaine as the amount of cocaine was approximately 4 ounces short of a full kilo, so the CHS need pay the $25,000 previously agreed upon price. Laboratory tests confirmed that the substance received by the CHS on December 30, 2016 from King was cocaine base and cocaine hydrochloride with a net weight of 884.18 grams.
As a result of his drug dealing described in court documents, Klyvert was indicted by the federal grand jury in the District of the Virgin Islands on April 13, 2017.
The case was investigated by the Federal Bureau of Investigation with assistance from the Drug Enforcement Administration. The case was prosecuted by Assistant U.S. Attorneys Rhonda Williams-Henry and Melissa Ortiz.
Springfield Man Indicted for Bank Fraud ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man was indicted by a federal grand jury today for a bank fraud conspiracy in which he and others used stolen mail to create dozens of counterfeit checks that they attempted to cash at area banks.
Shannon Western Fields, 42, was charged in an 11-count indictment returned by a federal grand jury in Springfield, Mo. Today’s indictment replaces a federal criminal complaint against Fields that was filed on May 2, 2019.
The indictment alleges that Fields participated in a conspiracy to commit bank fraud from February to May 7, 2018, in Greene, Christian, Jasper, and Newton counties. In addition to the conspiracy, Fields is charged with 10 counts of bank fraud.
According to the indictment, Fields and others stole mail from individuals and businesses in order to obtain checks and personal identity information. Conspirators purchased blank check stock and magnetic ink from office supply stores, the indictment says, to create counterfeit checks by using the stolen checks (typically business checks) as templates. They allegedly created checks payable to the conspirators, or used stolen identity information, to create counterfeit identification such as Social Security cards and Missouri driver’s licenses, to cash the checks.
The indictment refers to 11 unidentified co-conspirators who were identified as the payees listed on the forged and counterfeit checks and who, along with Fields, attempted to cash those checks at area financial institutions. Fields and his co-conspirators allegedly attempted to cash 41 counterfeit checks at financial institutions in Springfield and Branson, Mo. Many of those attempts were unsuccessful, according to the indictment.
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 Steven M. Mohlhenrich. It was investigated by the U.S. Postal Inspection Service, the Springfield, Mo., Police Department, and the Joplin, Mo., Police Department.
South Bay Resident Sentenced to 45 Months in Prison for Money Laundering and Witness TamperingRead the Press Release
SAN JOSE – Kenneth Tam was sentenced to 45 months in prison for his role in a money laundering and witness tampering scheme related to the sale of stolen computer parts announced United States Attorney David L. Anderson and Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI), Kareem Carter. The sentence was handed down by the Honorable Edward J. Davila, U.S. District Judge.
Tam, 59, formerly of San Jose, pleaded guilty to the charges on February 4, 2019. According to the plea agreement, Tam admitted that from January 2006 through July 2010, he was an employee of a San Francisco Bay Area manufacturer of computer parts. During that period, and until at least the end of 2010, Tam knowingly obtained stolen merchandise from his employer and sold it to his co-conspirator, Cuong Cao Dang. Dang owned a company whose business was overwhelmingly that of buying and selling merchandise stolen from Tam’s employer. Tam admitted that in most instances, he would take cash from Dang as payment for delivery of stolen computer parts. Tam further admitted that he would deposit the proceeds from the stolen equipment into accounts owned by a foreign national who had given Tam power-of-attorney over the accounts.
Tam’s plea agreement describes various aspects of the money-laundering and witness tampering schemes. For example, on February 3, 2010, Dang provided Tam with a check for $500,000 made out to a foreign national whose name Tam was using as the nominal owner of accounts Tam controlled. The check was provided to Tam for payment of previously provided stolen parts, as well as in pre-payment for additional stolen parts that Tam planned to provide. Nevertheless, Tam instructed Dang to write “loan” on the memo line of the check to disguise the true purpose of the payment. Then, after Tam learned there was an investigation into Dang’s company, Tam gave Dang a backdated check for $500,000 to make it appear as though a loan was made and re-paid. Also, Tam provided the foreign national with a false cover story to use if she were contacted by law enforcement agents investigating the accounts.
On October 26, 2017, a federal grand jury handed down a superseding indictment charging Tam with two counts of witness tampering, in violation of 18 U.S.C. § 1512(b)(1), as well as one count each of conspiracy to commit mail fraud, in violation of 18 U.S.C. 1349; money laundering, in violation of 18 U.S.C. § 1956; structuring financial transactions, in violation of 31 U.S.C. § 5324(a)(1) and (a)(3); making a false statement to government agents, in violation of 18 U.S.C. § 1001; and contempt, in violation of 18 U.S.C.§ 401(3). Tam pleaded guilty to the money laundering count and one count of witness tampering. The remaining counts were dismissed.
In addition to the prison term, Judge Davila sentenced Tam to serve two years of supervised release and to pay $3,475,958.14 in restitution. Judge Davila ordered Tam to surrender on or before August 21, 2019, to begin serving his prison term.
On December 11, 2015, Dang pleaded guilty for his role in the scheme and on October 31, 2017, Judge Davila sentenced Dang to 90 months in prison to be followed by three years of supervised release.
Assistant United States Attorneys Amie Rooney and Robert Leach are prosecuting the case with the assistance of Lakisha Holliman and Elise Etter. The prosecution is the result of an investigation by the IRS-CI and the Santa Clara REACT Task Force.
Smiths Grove Businessman Pleads Guilty to Bank FraudRead the Press Release
LOUISVILLE, Ky. – Michael Todd Barrick, aka Kentuckyana Jones, age 56, of Smiths Grove, Kentucky, pleaded guilty to five counts of bank fraud on Monday in United States District Court in Louisville, announced United States Attorney Russell M. Coleman. Barrick also stipulated to a loss of over $1.4 million. Barrick’s codefendants, Roger Hagan, Lorri Hughes, and Garry Hammer, all pleaded guilty in April.
According to Barrick’s plea agreement and other documents filed in the case, in 2007 Barrick and his co-defendant, Roger Hagan, agreed that Hagan would purchase property at 302 Laurel Street in Smiths Grove from Barrick for $575,000, but Barrick would make all loan payments and keep all rental income. Hagan did not have sufficient assets and income to qualify for the loan, but at Barrick’s direction Hagan submitted a fraudulent financial statement to American Bank & Trust (AB&T) that substantially overstated Hagan’s assets and income. Based on these fraudulent representations, AB&T approved Hagan for the loan. Barrick paid Hagan’s $118,977.50 loan down payment, and gave Hagan $21,422.50 as payment for participating in the transaction. The loan went into default in November 2010.
In 2008, Hagan entered a similar agreement with Barrick to purchase 708 Kelly Road in Bowling Green for $300,000. At Barrick’s direction, Hagan again submitted a fraudulent financial statement to PBI Bank. Based on these fraudulent representations, PBI approved Hagan for the loan. After the loan closed Barrick paid Hagan $6,534 for participating in the transaction, and the loan went into default in March 2010.
In 2011, Barrick recruited co-defendant Lorri Hughes to purchase a Wholesale Mattress Warehouse (WMW) from Barrick for $179,000. The WMW was purportedly located at 1700 N. Dixie Highway in Louisville, but in reality a McDonalds restaurant operated at that address, and had been there for many years. At Barrick’s direction, Hughes submitted a fraudulent financial statement to Monticello Bank that substantially overstated her income and assets. Based on these fraudulent representations, Monticello Bank approved the loan, and after the loan closed Barrick paid Hughes $20,000 for participating in the transaction. The loan went into default in February 2012.
In 2010, Barrick recruited T.P. to purchase Som’ Beach Tanning (SBT), a business located at 140 River Place Avenue in Bowling Green, from Barrick. At Barrick’s direction, T.P. submitted a fraudulent financial statement to Monticello Bank that substantially overstated his assets. The loan was supposed to be collateralized by SBT’s equipment, but Barrick had already used that equipment as collateral in a separate December 2009 loan from BB&T Bank, and that BB&T loan was not satisfied. Based on these fraudulent representations, co-defendant Garry Hammer, a Monticello Bank loan officer, approved the loan, and after the loan closed Barrick paid T.P. $5,000 for participating in the transaction, but Barrick never surrendered control of the business.
In late 2010, Barrick recruited R.R. to purchase a Mattress City Wholesale (MCW) from Barrick for $179,880. Under the terms of their agreement, R.R. would own the business on paper and would receive a small percentage of profits, but Barrick would pay the taxes, insurance, and all loan payments, and would receive the majority of profits. The paperwork Barrick submitted reflected that the MCW was located at 2201 Gallatin Road in Madison, Tennessee. In reality, a PetSmart was located at that address, and had been there for many years. Based on these fraudulent representations, Monticello Bank, through co-defendant Garry Hammer, approved the loan. After the loan closed, Barrick paid R.R. $30,000 for participating in the transaction, and used a significant portion of the remaining proceeds to pay off T.P.’s SBT loan. The R.R. loan went into default in February 2012.
Barrick is scheduled to be sentenced by United States District Court Judge Joseph McKinley in Bowling Green on August 15, 2019, at 9:30 a.m., and faces a statutory maximum penalty of 150 years in prison. Roger Hagan, Lorri Hughes and Garry Hammer are all scheduled to be sentenced in Bowling Green on July 9, 2019.
This case is being prosecuted by Assistant United States Attorneys David Weiser and Josh Judd and was investigated by the Federal Deposit Insurance Corporation (FDIC) and the FBI.
Slidell Man Pleads Guilty to Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – NATHANIEL LOUIS, age 45, of New Orleans, Louisiana, pleaded guilty May 2, 2019 before the Honorable Carl J. Barbier to an indictment charging him with violating the Federal Controlled Substances Act, announced U.S. Attorney Peter G. Strasser.
According to the court records, LOUIS conspired to possess with the intent to distribute and to distribute a kilogram or more of a mixture or substance containing a detectable amount of heroin. LOUIS admitted to being captured on recorded calls as part of a lengthy Title III wire intercept.
Sentencing is scheduled for August 22, 2019. LOUIS faces a mandatory minimum term of imprisonment of at least 10 years up to a maximum of life, a fine of $10,000,000 and at least five years of supervised release following any term of imprisonment.
This case was investigated by Special Agents of the Drug Enforcement Administration (DEA). The prosecution is being handled by Assistant United States Attorney David Haller.
* * *
Shubuta Woman Sentenced for Lying in Attempt to Illegally Acquire FirearmRead the Press Release
Jackson, Miss. – Tamesha Lewis, 36, of Shubuta, was sentenced today by U.S. District Judge Henry T. Wingate to 14 months in federal prison, followed by 3 years of supervised release, for making a false statement to a licensed firearms dealer in connection with acquiring or purchasing a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Lewis was also ordered to pay a $1,500.00 fine.
On March 21, 2018, Lewis attempted to purchase a gun from a firearm dealer in Meridian. When a person purchases a firearm, they are required to truthfully provide certain information on an ATF form in connection with such a purchase, including whether that individual has ever been committed to a mental institution. In this case, Lewis provided false information by indicating that she had never been previously committed to a mental institution.
On October 24, 2018, Lewis was charged in a federal indictment with making a false statement to a licensed firearms dealer in an attempt to purchase a firearm. She pled guilty before Judge Wingate on February 6, 2019.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Bert Carraway.
Schuylkill County Man Sentenced to 105 Months’ Imprisonment for Heroin and Methamphetamine TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Derek Mountz, age 35, of Schuylkill Haven, Pennsylvania, was sentenced on May 6, 2019, to 105 months’ imprisonment followed by four years on supervised release, by Senior U.S. District Court Judge A. Richard Caputo, for participating in a drug trafficking conspiracy that distributed heroin and methamphetamine in the Schuylkill County area in 2016.
According to United States Attorney David J. Freed, Mountz previously pleaded guilty to conspiracy to distribute more than 100 grams of heroin and more than 50 grams of methamphetamine. One hundred grams of heroin is equivalent to approximately 4,000 retail bags of heroin.
The matter was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and local police in Schuylkill County. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
# # #
Rochester, Indiana Man Sentenced to 77 Months in PrisonRead the Press Release
SOUTH BEND – Travis Norman, age 30, of Rochester, Indiana, was sentenced before United States District Court Judge Robert L. Miller upon his plea of guilty to being a felon in possession of a firearm, announced U. S. Attorney Thomas L. Kirsch II.
Norman was sentenced to 77 months in prison followed by 3 years of supervised release.
According to documents in this case, on October 4, 2018, Rochester Police were dispatched to a local hotel in response to a complaint. They located Travis Norman in a hotel room along with seven grams of methamphetamine, three grams of heroin, drug paraphernalia, a large amount of United States currency, and a loaded Smith and Wesson handgun. At the time of this arrest, Mr. Norman had been recently convicted of Dealing Methamphetamine in Marshall County.
The case was investigated by the ATF with the assistance of the Rochester Police Department and was handled by Assistant United States Attorney Kimberly Schultz.
###