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Monday 6 May 2019
Former Pediatric Medical Assistant Sentenced to 12+ Years in Child Sexual Exploitation CaseRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Cameron Carlucci, 27, of Philadelphia was sentenced by the Honorable Berle M. Schiller to 151 months in federal prison, followed by 10 years supervised release. Carlucci was convicted of distributing and possessing child pornography from 2016 through his arrest in 2018. During that time, he amassed more than 56,000 images and videos that depicted mostly prepubescent boys, infants, and toddlers being sexually abused and exploited.
At the time that Carlucci distributed these images and videos over the Internet, he had already been convicted in Philadelphia in 2011 for possession of obscene and other sexual materials, for which he received a 5-year probationary sentence. Almost immediately after the termination of his probation, Carlucci began committing the sexual crimes against children in this case. At the same time that he was committing these crimes, Carlucci sought out and obtained employment at Valley Pediatrics in Warminster, PA as a medical technician. To obtain his employment with Valley Pediatrics, Carlucci falsified his application by denying his criminal history.
“Not only did this defendant commit the heinous crime of possessing and distributing child pornography, he lied to get a job that would put him in close proximity to children,” said U.S. Attorney McSwain. “Parents and caregivers bring their children to doctors’ offices with the expectation that they will be safe and cared for, not in the presence of a known sexual predator. We thank the judge in this case for ensuring that Carlucci will be behind bars and unable to be in contact with children for a very long time.”
The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Michelle Rotella.
Former Houston Banker Indicted for Bank FraudRead the Press Release
HOUSTON – A 39-year-old Houston woman is set to appear in federal court following the return of a four-count indictment alleging bank fraud, announced U.S. Attorney Ryan K. Patrick.
Lori Nan Dean is set to make her initial appearance before U.S. Magistrate Judge Christina Bryan at 10:00 a.m. today.
The indictment, returned April 30, 2019, alleges that while employed at the International Bank of Commerce (IBC), she defrauded them of $144,300. She allegedly made unauthorized withdrawals of money through the submission of fraudulent debit general ledger tickets.
According to the indictment, Dean made false entries in the books and records of IBC to conceal her fraud.
The alleged bank fraud scheme lasted from approximately Jan. 2, 2016 through Aug. 2, 2017.
Each count of bank fraud carries a maximum penalty of 30 years imprisonment and a fine up to $1 million.
The FBI conducted the investigation. Assistant U.S. Attorney John Braddock is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless and until convicted through due process of law.Former FBI Linguist Arrested on False Statement and Obstruction ChargesRead the Press Release
A Virginia man who previously served as a linguist for the FBI was arrested Saturday night on charges of making multiple false statements to FBI officials and obstructing a federal investigation. Assistant Attorney General for National Security John C. Demers, U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia and Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office made the announcement.
According to court documents, Abdirizak Jaji Raghe Wehelie, aka Haji Raghe, 66, of St. Burk, was a federal contractor for the FBI and worked as a linguist translating communications captured by court-authorized surveillance of a suspect (Person A) in a terrorism investigation. Wehelie allegedly intentionally misidentified his own voice that was captured when Person A left a voicemail message on Wehelie’s mobile telephone. When questioned by FBI investigators about this particular incident, Wehelie made several misleading and/or false statements.
Wehelie is scheduled to make his initial appearance in federal court in Alexandria today at 2:00 p.m.
Wehelie is charged with making false statements to government officials and obstruction of a federal investigation. If convicted, he faces a maximum penalty of 25 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorney James P. Gillis is prosecuting the case, with assistance from the National Security Division.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Former FBI Linguist Arrested and Indicted on Obstruction ChargesRead the Press Release
ALEXANDRIA, Va. – A Virginia man who previously served as a linguist for the FBI was arrested Saturday night on charges of obstructing a federal investigation and making multiple false statements to FBI officials.
According to court documents, Abdirizak Jaji Raghe Wehelie, aka Haji Raghe, 66, of Burke, was a federal contractor for the FBI and worked as a linguist translating communications captured by court-authorized surveillance of a suspect (Person A) in a terrorism investigation. Wehelie allegedly intentionally misidentified his own voice that was captured when Person A left a voicemail message on Wehelie’s mobile telephone. When questioned by FBI investigators about this particular incident, Wehelie made several misleading and/or false statements.
Wehelie is scheduled to make his initial appearance in federal court in Alexandria today at 10:00 a.m.
Wehelie is charged with making false statements to government officials and obstruction of a federal investigation. If convicted, he faces a maximum penalty of 25 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, John C. Demers, Assistant Attorney General for National Security, and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement. Assistant U.S. Attorney James P. Gillis is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-CR-295-CMH.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Former Banker Extradited from Malaysia to United States to Face Charges in Multi-Billion Dollar Money Laundering and Bribery Scheme Relating to the 1MDB FundRead the Press Release
A Malaysian national, Ng Chong Hwa, 46, also known as “Roger Ng,” has been extradited from Malaysia to the United States to face charges of conspiring to launder billions of dollars embezzled from 1Malaysia Development Berhad (1MDB), Malaysia’s investment development fund, conspiring to violate the Foreign Corrupt Practices Act (FCPA) by paying bribes to multiple government officials in Malaysia and Abu Dhabi, and conspiring to violate the FCPA by circumventing the internal accounting controls of a major New York-headquartered financial institution (Financial Institution).
Assistant Attorney General Brian A. Benczkowski of the U.S. Department of Justice’s Criminal Division, U.S. Attorney Richard P. Donoghue for the Eastern District of New York, Assistant Director in Charge William F. Sweeney Jr., of the FBI’s New York Field Office and Acting Special Agent in Charge Ryan L. Korner of the IRS Criminal Investigation (CI), Los Angeles Field Office announced the extradition.
In a three-count indictment unsealed last year, Ng, of Kuala Lumpur, Malaysia, was charged with crimes he allegedly committed while employed as a Managing Director at the Financial Institution, which underwrote more than $6 billion in bonds issued by 1MDB in three separate bond offerings in 2012 and 2013. Ng was arrested in Malaysia on Nov. 1, 2018, pursuant to a provisional arrest warrant issued at the request of the United States, later waived extradition to the United States, and is scheduled to make his first appearance today before U.S. Magistrate Judge Peggy Kuo in federal court in Brooklyn, New York.
As alleged in the indictment, between approximately 2009 and 2014, Ng conspired with others to launder billions of dollars misappropriated and fraudulently diverted from 1MDB, including funds 1MDB raised in 2012 and 2013 through three bond transactions 1MDB executed with the Financial Institution. As part of the scheme, Ng and others conspired to bribe government officials in Malaysia and Abu Dhabi to obtain and retain lucrative business for the Financial Institution, including the 2012 and 2013 bond deals. They further conspired to launder the proceeds of their criminal conduct through the U.S. financial system.
Court filings further allege that Ng, Low Taek Jho, also known as “Jho Low,” and the co-conspirators used co-defendant Low’s close relationships with high-ranking government officials in Malaysia and Abu Dhabi to obtain and retain business for the Financial Institution through the promise and payment of hundreds of millions of dollars in bribes. In the course of executing the scheme, Ng and others at the Financial Institution conspired to circumvent the Financial Institution’s internal accounting controls. Through its work for 1MDB during that time, the Financial Institution received approximately $600 million in fees and revenues along with increased reputational prestige. At the same time, Ng and other co-conspirators at the Financial Institution received large bonuses and enhanced their own reputations at the Financial Institution. In total, more than $2.7 billion was misappropriated from the 1MDB bond proceeds. Low remains at large.
The charges in the indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The investigation was jointly conducted by the FBI’s International Corruption Unit and IRS-CI. The government’s criminal case is being handled by the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and Fraud Section and the Business and Securities Fraud Section of the U.S. Attorney’s Office for the Eastern District of New York. MLARS Trial Attorneys Jennifer E. Ambuehl, Woo S. Lee, Mary Ann McCarthy and Kyle Freeny, Fraud Section Trial Attorneys Katherine A. Nielsen and Nikhila Raj and Assistant U.S. Attorneys Jacquelyn M. Kasulis, Alixandra E. Smith and Drew G. Rolle are prosecuting the case. The Criminal Division’s Office of International Affairs provided critical assistance in this case. Additional Criminal Division Trial Attorneys and Assistant U.S. Attorneys within U.S. Attorney’s Offices for the Eastern District of New York and Central District of California have provided valuable assistance with various aspects of this investigation, including with civil and criminal forfeitures.
The Department also appreciates the significant cooperation and assistance provided by the U.S. Securities and Exchange Commission, and the Board of Governors of the Federal Reserve System along with the Federal Reserve Bank of New York. The Department also appreciates the significant assistance provided by the government of Malaysia, including the Attorney General’s Chambers of Malaysia, the Royal Malaysia Police and NCB Interpol Malaysia. The Department also appreciates the significant assistance provided by the Attorney General’s Chambers of Singapore, the Singapore Police Force-Commercial Affairs Division, the Office of the Attorney General of Switzerland, the Judicial Investigating Authority of the Grand Duchy of Luxembourg and the Criminal Investigation Department of the Grand-Ducal Police of Luxembourg.
The International Unit of the Criminal Division’s MLARS is home to the Kleptocracy Asset Recovery Initiative—a team of dedicated prosecutors working to prosecute individuals and forfeit the proceeds of foreign official corruption that has affected the U.S. financial system and, where appropriate, return those proceeds to benefit the people harmed by these acts of corruption and abuse of office. MLARS’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected].
Former Banker Extradited from Malaysia to United States to Face Charges in Multi-Billion Dollar Money Laundering and Bribery Scheme Relating to the 1MDB FundRead the Press Release
BROOKLYN, NY – Ng Chong Hwa, also known as “Roger Ng,” a citizen of Malaysia, has been extradited to the United States from Malaysia to face charges of conspiring to launder billions of dollars embezzled from 1Malaysia Development Berhad (1MDB), Malaysia’s investment development fund, conspiring to violate the Foreign Corrupt Practices Act (FCPA) by paying bribes to multiple government officials in Malaysia and Abu Dhabi, and conspiring to violate the FCPA by circumventing the internal accounting controls of a major New York-headquartered financial institution (Financial Institution). In a three-count indictment unsealed last year, Ng, was charged with crimes he allegedly committed while employed as a Managing Director at the Financial Institution, which underwrote more than $6 billion in bonds issued by 1MDB in three separate bond offerings in 2012 and 2013. Ng was arrested in Malaysia on November 1, 2018, pursuant to a provisional arrest warrant issued at the request of the United States, later waived extradition to the United States, and is scheduled to be arraigned today before U.S. Magistrate Judge Peggy Kuo in federal court in Brooklyn, New York.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Brian A. Benczkowski, Assistant Attorney General of the Department of Justice’s Criminal Division, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Ryan L. Korner, Acting Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, Los Angeles Field Office (IRS-CI), announced the extradition.
As set forth in the indictment, between approximately 2009 and 2014, Ng conspired with others to launder billions of dollars misappropriated and fraudulently diverted from 1MDB, including funds 1MDB raised in 2012 and 2013 through three bond transactions it executed with the Financial Institution. As part of the scheme, Ng and others conspired to bribe government officials in Malaysia and Abu Dhabi to obtain and retain lucrative business for the Financial Institution, including the 2012 and 2013 bond deals. They also conspired to launder the proceeds of their criminal conduct through the U.S. financial system by funding major Hollywood films and purchasing, among other things, artwork from a New York-based auction house and luxury residential real estate in New York City and elsewhere.
As alleged, Ng, co-defendant Low Taek Jho (also known as “Jho Low”), and their co-conspirators used Low’s close relationships with high-ranking government officials in Malaysia and Abu Dhabi to obtain and retain business for the Financial Institution through the promise and payment of hundreds of millions of dollars in bribes. In the course of executing the scheme, Ng and others at the Financial Institution conspired to circumvent the Financial Institution’s internal accounting controls. Through its work for 1MDB during that time, the Financial Institution received approximately $600 million in fees and revenues along with increased reputational prestige. At the same time, Ng and other co-conspirators at the Financial Institution received large bonuses and enhanced their own reputations at the Financial Institution. In total, Ng and the other co-conspirators misappropriated more than $2.7 billion from 1MDB. Low remains at large.
The charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty.
The investigation was jointly conducted by the FBI’s International Corruption Unit and IRS-Criminal Investigation. The government’s criminal case is being handled by the Business and Securities Fraud Section of the United States Attorney’s Office for the Eastern District of New York and the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and Fraud Section. Assistant United States Attorneys Jacquelyn M. Kasulis, Alixandra E. Smith and Drew G. Rolle and Trial Attorneys Jennifer E. Ambuehl, Woo S. Lee, Kyle Freeny, Mary Ann McCarthy, Katherine A. Nielsen and Nikhila Raj are prosecuting the case. The Criminal Division’s Office of International Affairs provided critical assistance in this case. Additional Criminal Division Trial Attorneys and Assistant U.S. Attorneys within U.S. Attorney’s Offices for the Eastern District of New York and Central District of California have provided valuable assistance with various aspects of this investigation, including with civil and criminal forfeitures.
The Department also appreciates the significant cooperation and assistance provided by the U.S. Securities and Exchange Commission, and the Board of Governors of the Federal Reserve System along with the Federal Reserve Bank of New York. The Department also appreciates the significant assistance provided by the government of Malaysia, including the Attorney General’s Chambers of Malaysia, the Royal Malaysia Police and NCB Interpol Malaysia. The Department also appreciates the significant assistance provided by the Attorney General’s Chambers of Singapore, the Singapore Police Force-Commercial Affairs Division, the Office of the Attorney General of Switzerland, the Judicial Investigating Authority of the Grand Duchy of Luxembourg and the Criminal Investigation Department of the Grand-Ducal Police of Luxembourg.
The Defendant:
NG CHONG HWA
Age: 51
Kuala Lumpur, MalaysiaE.D.N.Y. Docket No. 18-CR-538 (MKB)
Federal Jury Convicts Former FedEx Employee of Obstruction of MailRead the Press Release
Memphis, TN – After a three-day jury trial, a Memphis man was found guilty for obstruction of mail. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the guilty verdict today.
According to information presented in court, in 2015, Braylon Butler, 25, worked at the FedEx Hub as a box sorter. Pursuant to a contractual relationship between FedEx and the United States Postal Service, a large volume of U.S. mail is processed at the FedEx Hub in Memphis. FedEx corporate security viewed Butler on security video footage searching through U.S. mail. In the video, Butler is seen opening shipping containers filled with U.S. mail and searching for brightly colored greeting card envelopes, which may have contained U.S. currency or gift cards. The video also shows Butler appearing to open one such envelope.
U.S. Attorney D. Michael Dunavant said, "This office takes very seriously our duty to protect the sanctity and security of the United States Postal Service and the U.S. Mail. We work very closely with the United States Postal Inspection Service to defend the nation’s mail system from theft and obstruction to ensure public trust in the mail. This guilty verdict shows our collective commitment to hold accountable any persons who violate that sanctity and victimize innocent citizens for their own selfish gains."
Sentencing is set for August 2, 2019 before United States District Court Judge Thomas L. Parker, where Butler faces up to five years imprisonment.
This case was investigated by the United States Postal Inspector.
Assistant U.S. Attorneys Annie Christoff and Tony Arvin prosecuted this case on behalf of the government.
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Federal Employee Sentenced and Ordered to Repay Stolen FundsRead the Press Release
Memphis, TN – A former federal employee has been sentenced for theft of public money. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence today.
According to information presented in court, on December 17, 2018, Jacquelyn Denise Young, aka "Jacqueline Harvey," 56, pled guilty to Count 1 of the Indictment. Young formerly worked as the systems administrator for the United States Social Security Administration's Office of Disability Adjudication Review. While working there from approximately 2009 until 2014, she stole $7,224.02 in federal money by misusing government gas cards. The gas cards were provided for Social Security Administration employees to use for official business travel in government-owned vehicles. Ms. Young repeatedly misused the gas cards over a five-year period, to fill up her personal vehicle for non-work-related use.
On April 25, 2019, United States District Court Judge Mark S. Norris sentenced Young to time served, followed by two years supervised release. She was sentenced to serve four months of her supervised release on home detention with location monitoring. Young also was ordered to pay restitution to the General Services Administration and forfeiture totaling $7,224.04 and to pay a $500 fine.
U.S. Attorney D. Michael Dunavant said, "One of the primary functions of this office is to protect the United States Treasury, and the ability of the Social Security Administration to provide efficient public services. Fraudulent schemes and crimes of dishonesty do not pay, and will be exposed."
This case was investigated by the Social Security Administration – Office of the Inspector General.
Assistant U.S. Attorney Murre Foster prosecuted this case on behalf of the government.
Dallas Man Found Guilty of Conspiring to Support ISISRead the Press Release
A federal jury convicted a Dallas man on multiple terror charges, U.S. Attorney for the Northern District of Texas Erin Nealy Cox and Assistant Attorney General for National Security John C. Demers announced today.
Following a three-and-a-half day trial, Said Azzam Mohamad Rahim, a 42-year-old United States citizen, was convicted Friday of one count of conspiracy to provide material support to a designated foreign terrorist organization (FTO), one count of attempting to provide material support to an FTO, and six counts of making false statements involving international terrorism to federal authorities.
“We will not allow radical terrorists motivated by dangerous ideologies to promote violence against innocent people,” said U.S. Attorney Nealy Cox. “The Justice Department is committed to combatting terror at home and abroad.”
“Said Azzam Mohamad Rahim operated online to spread ISIS’s poisonous message of hate and violence,” said Assistant Attorney General Demers. “Then he attempted to travel to support ISIS and he lied to the FBI when questioned about his activities. With the jury’s guilty verdicts, he is being held accountable for his crimes. I want to thank the prosecutors, agents, and analysts who are responsible for this result.”
According to evidence presented at trial, Mr. Rahim moderated a social media channel dedicated to recruiting fighters for the Islamic State of Iraq and al-Sham, or ISIS, a State Department designated terror group.
Mr. Rahim used Zello, a push-to-talk direct messaging application, to promote violence in ISIS’s name, prosecutors said.
Records showed he spent hours on Zello’s “State of the Islamic Caliphate” channel, where he touted acts of terror under various monikers:
“Kill and do not consult anyone,” he said in July 2016. “Kill by any means, smash his head on the wall, spit in his face, burn -- I mean anything, anything – poison, anything.”
“Brothers! What are you waiting for?” he said a month later. “Mobilize and perform jihad for the cause of Allah…. Some of the brothers mobilized from this channel, they were amongst us.”
He even praised several terrorist attacks after the fact.
“I was happy for this act,” Rahim said after a truck barreled into a crowd of people in Nice, France, killing 86. “Those dogs.”
Mr. Rahim was arrested on March 5, 2017 at the Dallas Fort Worth International Airport, where he was attempting to board a flight to Amman, Jordan. Asked by agents if he had ever supported ISIS, advocated travel for the purposes of jihad, promoted violence on ISIS’s behalf, or encouraged anyone to kill infidels at the urging of ISIS spokesman Abu Mohammed al-Adnani, Mr. Rahim said “no.”
Mr. Rahim now faces up to 20 years in federal prison for each material support count and eight years for each false statement count, for a total of up to 88 years imprisonment.
The Federal Bureau of Investigation, the U.S. Department of State – Diplomatic Security Services, and the Joint Terrorism Task Force conducted the investigation. Assistant United States Attorney Errin Martin and Trial Attorney Taryn Meeks of the National Security Division’s Counterterrorism Section prosecuted the case. U.S. District Judge Jane Boyle presided over the trial.
DEA Prescription Drug Takeback Day Big SuccessRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announces the results of the DEA April 27, 2019, 17th National Prescription Drug Take Back Day. Nationwide, DEA, along with their law enforcement partners collected nearly 469 tons of potentially dangerous expired, unused, and unwanted prescription drugs. In the Eastern District of North Carolina, approximately 7,229.92 pounds were collected and 8,968 pounds were collected statewide.
“Across the country and here in the Eastern District of North Carolina, we are facing a real and dangerous threat from opioids and other prescription drugs,” said United States Attorney Higdon. “We have unprecedented levels of addiction, frightening numbers of overdoses, and an alarming number of deaths because of the over prescription and improper use of these drugs. This requires each of us to work to solve it. By properly disposing of prescription medication we do not need, we can reduce the risk that these drugs will fall into the wrong hands.”
Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. According to the Centers for Disease Control and Prevention, 91 Americans die each day from an opioid overdose. Some painkiller abusers move on to heroin: Four out of five new heroin users started with painkillers.
Flushing medications down the toilet or throwing them in the trash pose potential safety and health hazards. This initiative addresses the public safety and public health issues that surround medications languishing in home cabinets, becoming highly susceptible to diversion, misuse, and abuse.
DEA’s next National Prescription Drug Take Back Day is October 26, 2019. For complete results of the recently concluded Spring Take Back Day visit www.DEATakeBack.com. If you missed the Take Back Day click here https://apps2.deadiversion.usdoj.gov/pubdispsearch/spring/main?execution=e1s1 to locate an authorized collector in your area.
DEA New England and Partners Collect over 44 Tons of Drugs During Take Back DayRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank joined the U.S. Drug Enforcement Administration (DEA) in announcing that DEA New England and its partners collected 89,366 lbs. of drugs during National Prescription Drug Take Back Day on April 27, 2019. The following is a breakdown of collected weights for the six New England states:
Maine – 27,680 lbs.
Massachusetts – 28,117.5 lbs.
New Hampshire – 14,180 lbs.
Connecticut – 8,361.8 lbs.
Vermont – 6,562 lbs.
Rhode Island – 4,465 lbs.
Last October, during its 16th Take Back Day, the DEA New England collected 80,278 pounds, or 40 tons, of expired, unused and unwanted prescription drugs at 613 collection sites throughout New England. In Maine, last October, 27,516 pounds of drugs were collected.
Since its inception in September 2010, Maine has collected 404,698 lbs. of drugs; the most, per capita, in the United States.
Connecticut Woman Pleads Guilty to Escaping from Federal CustodyRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that, on May 3, 2019, BARBARA MARCH, 73, of Bridgeport, pleaded guilty before U.S. District Judge Kari A. Dooley in Bridgeport to escaping from federal custody.
According to court documents and statements made in court, in October 2006, March was sentenced in the District of Columbia to 15 years of imprisonment for mailing baked goods laced with rat poison to Supreme Court justices, FBI officials and military leaders. On April 26, 2018, March signed out of the halfway house in Washington, D.C., where she was completing her sentence, and failed to return as scheduled. She was arrested in Bridgeport on October 9, 2018.
Judge Dooley scheduled sentencing for June 24, 2019, at which time March faces a maximum term of imprisonment of five years. March has been detained since her arrest.
On May 10, 2018, a federal grand jury in the District of Columbia returned an indictment charging March with one count of escape from custody. The case was transferred to the District of Connecticut for further prosecution.
This case is being prosecuted by Assistant U.S. Attorney Margaret E. Maigret.
Clay County Fentanyl and Heroin Dealer Sentenced to Life in Prison for Role InRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard today sentenced Trumaine “Lucky” Muller (34, Orange Park) to life in federal prison for distributing a lethal dose of fentanyl that resulted in the overdose death of an 18-year old woman.
A federal jury had found Muller guilty on January 16, 2019. The jury also convicted Muller of other felony drug offenses and for possession of a firearm by a convicted felon.
According to court documents, on November 9, 2016, at approximately 10:30 pm, Muller sold heroin (which was actually fentanyl) to Christopher Williams and Tyler Hamilton. Williams and Hamilton provided a portion of the substance to “A.B.,” an 18-year old female. A.B., a first time opiate user, snorted what she believed was a small dose of heroin. However, the substance that Muller had sold was fentanyl, which caused the death of A.B. at approximately 4:45 am on November 10, 2016.
On January 31, 2017, during the ensuing investigation into A.B.’s death, the Clay County Sheriff’s Office made a controlled purchase of heroin and furanylfentanyl from Muller. On February 8, 2017, during the execution of a search warrant, officers seized furanylfentanyl and a loaded revolver from an apartment in Clay County where Muller had been living.
Christopher Williams and Tyler Hamilton previously pleaded guilty to manslaughter in state court.
“Families and communities have been ravaged by the opioid epidemic. I commend law enforcement and the U.S. Attorney’s Office for their skillful investigation and prosecution of Trumaine Muller for the overdose death of AB,” said State Attorney Melissa Nelson.
“We appreciate the hard work of everyone involved in this. This is truly teamwork at its finest,” stated Clay County Sheriff Darryl Daniels.
This case was investigated by the Clay County Sheriff’s Office and the Office of the State Attorney for the Fourth Judicial Circuit. It is being prosecuted by Assistant United States Attorney Tysen Duva.
Cabell County Woman Pleads Guilty to Theft of Social Security Income BenefitsRead the Press Release
Defendant fraudulently obtained over $44,000
HUNTINGTON, W.Va. – A Huntington woman entered a guilty plea to the felony offense of fraudulently obtaining Social Security Income benefits, announced United States Attorney Mike Stuart. Linda Crabtree, 54, faces up to 5 years of incarceration when she is scheduled to be sentenced on August 12, 2019. She will also be required to pay restitution back to the United States Treasury. United States Attorney Mike Stuart praised the work of the United States Social Security Administration-Office of Inspector General.
“Theft of government program dollars will not be tolerated,” said United States Attorney Mike Stuart. “Many West Virginians depend on these critical benefits. We all suffer when fraudsters like Crabtree take money to which they aren’t entitled.”
Crabtree applied for Title XVI Social Security benefits in 2004. These Social Security benefits are based on income and living arrangements, and create a duty on the recipient to report a change in income or living arrangements. In 2004, Crabtree indicated that she was married, but claimed she was not residing with her spouse. In fact, Crabtree was residing with her spouse and they had been married and living together since 2004. Their combined income would have lowered the amount of money she was receiving every month from the Social Security Administration. From December 2004 through December 2017, Crabtree received $24,735 in Social Security benefits in excess of the amount she was due.
Crabtree also received additional money she was not entitled to receive as the representative payee on behalf of her daughter. This resulted in overpayments to Crabtree as a representative payee in the amount of $19,502. In total, Crabtree obtained $44,237 in benefits she was not entitled to receive. On November 6, 2017, Crabtree gave a detailed statement to federal investigators with the Office of Inspector General admitting that she was living with her spouse the entire time and knew that she was receiving money that she was not entitled to receive.
Assistant United States Attorney Erik S. Goes handled the prosecution. United States District Judge Robert C. Chambers presided over the hearing.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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Buffalo Man Charged with Possession of Crack Cocaine Following A Traffic StopRead 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 Luis Acevedo Rivera, 23, of Buffalo, NY, was arrested and charged by criminal complaint with possessing with the intent to distribute, and distributing, 500 grams or more of cocaine. The charge carries a maximum penalty of 20 years in prison and a $1,000,000.
Assistant U.S. Attorney Jeremiah E. Lenihan, who is handling the case, stated that according to the complaint, on May 3, 2019, at approximately 4:45 p.m., a marked unit from the Erie County Sherriff's Department initiated a vehicle and traffic stop of a Jeep Compass rental vehicle being operated by the defendant in the vicinity of 975 Hertel Avenue in Buffalo. A white plastic grocery bag was observed in plain view on the front passenger floorboard of the vehicle.
Rivera was asked for consent to search the vehicle and declined. Thereafter, following additional investigation, a search warrant for the vehicle was obtained and executed, and a quantity of suspected cocaine was recovered from the white plastic grocery bag.
The complaint is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly, the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard, and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Bronx Man Sentenced to 39 Months in Prison for Participating in Scheme to Take over Ride-Sharing Driver AccountsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that LOUIS PINA was sentenced to 39 months in prison for participating in a scheme to defraud drivers of two ride-sharing companies (“Company-1” and “Company-2”) by accessing those drivers’ accounts without authorization in order to divert driver funds to bank accounts controlled by PINA and other members of the scheme (the “Scheme”). PINA previously pled guilty to one count of conspiracy to commit access device fraud and one count of aggravated identity theft before U.S. District Judge Jed S. Rakoff, who imposed today’s sentence. PINA is the eighth defendant to have pled guilty in this case.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Louis Pina was a leader of a criminal consortium that deceived the drivers of two ride-sharing companies, enabling the criminals to access drivers’ accounts and steal millions of dollars. Hard-working men and women who worked long hours to make a living had their accounts hacked into and their hard-earned money stolen. Now Louis Pina is going to prison for his crimes.”
According to the Complaint, the Indictment to which PINA pled guilty, court filings, and statements made in public court proceedings:
PINA and his co-defendants defrauded livery drivers and ride-sharing companies using mobile ride-sharing applications. The Scheme targeted drivers associated with Company-1 and Company-2. Scheme members called Company-1 and Company-2 drivers posing as Company-1 and Company-2 representatives, and deceived the drivers into providing unique personal identifiers and other information that was then used to obtain unauthorized access into the online Company-1 and Company-2 driver accounts. Once members of the Scheme logged into Company-1 and Company-2 driver accounts without authorization, they altered information in those compromised accounts and diverted driver funds to bank accounts they controlled. PINA personally called Company-1 and Company-2 drivers to obtain their login credentials, hacked the accounts of Company-1 and Company-2 drivers, and recruited others into the Scheme. Scheme members compromised hundreds of Company-1 and Company-2 driver accounts and stole millions of dollars from Company-1 and Company-2 driver accounts.
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In addition to the prison term, Judge Rakoff ordered PINA, 24, of the Bronx, New York, to make court-ordered restitution in the amount of $198,663 to Company-1 and $243,112 to Company-2.
Mr. Berman praised the outstanding investigative work of the Special Agents of the United States Attorney’s Office for the Southern District of New York and the United States Secret Service. Mr. Berman further thanked the Westchester County District Attorney’s Office for their assistance and cooperation throughout this case, and also thanked the FBI’s Westchester County Safe Streets Task Force for their assistance.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Sheb Swett and Noah Solowiejczyk are in charge of the prosecution.
Berkeley County woman sentenced for drug distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Samione Monay Jones, of Martinsburg, West Virginia, was sentenced today to three years probation for a drug distribution charge, United States Attorney Bill Powell announced.
Jones, age 31, pled guilty to one count of “Aiding and Abetting Distribution of Cocaine Base ‘Crack’” in January 2019. Jones admitted to selling “crack” cocaine in May 2017 in Berkeley County.
Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecutor’s Office, prosecuted the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Gina M. Groh presided.
Berkeley County man sentenced for child pornographyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Eric Eugene Smith, of Falling Waters, West Virginia, was sentenced today to 97 months incarceration for possessing child pornography, United States Attorney Bill Powell announced.
Smith, age 51, pled guilty to one count of “Possession of Child Pornography” in January 2019. Smith admitted to having child pornography of children under the age of 12 in his possession in September 2018 in Berkeley County.
Assistant U.S. Attorney Kimberley D. Crockett prosecuted the case on behalf of the government. The Federal Bureau of Investigation and the West Virginia State Police investigated.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ 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 http://www.justice.gov/psc/.
Chief U.S. District Judge Gina M. Groh presided.
Beaver County Man Pleads Guilty to Making and Sharing Sexually Explicit Images and Videos of a MinorRead the Press Release
PITTSBURGH, PA - A former Beaver County resident pleaded guilty in federal court to charges of production and distribution of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
Randolph Guy Gum, 25, formerly of Rochester, Pennsylvania pleaded guilty to three counts before Senior United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that on January 19, 2014 and March 3, 2014, Gum employed, used, persuaded, induced, enticed, or coerced a minor—Minor A— to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct in the form of video and image files. At the time of the offense, Minor A was under the age of 18 years old. Gum produced the images and videos using material that had traveled in interstate commerce and knowingly distributed the images and videos containing the material depicting the sexual exploitation of Minor A to another individual via the Internet on July 23, 2015.
Judge Hornak scheduled sentencing for August 29, 2019 at 3:30 p.m. The law provides for a maximum sentence life imprisonment for the production of child pornography counts, and a maximum sentence of 20 years imprisonment for distribution of child pornography, and a fine of up to $750,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the Judge continued Gum's detention.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
The Department of Homeland Security, Immigration & Customs Enforcement and the Rochester Pennsylvania Police Department conducted the investigation that led to the prosecution of Randolph Guy Gum.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Argentine Man Sentenced in Witchcraft Extortion SchemeRead the Press Release
Assistant U.S. Attorney Andrew J. Galvin (619) 546-9721
NEWS RELEASE SUMMARY – May 6, 2019
SAN DIEGO – Ariel Boiteux, an Argentine national who masterminded an international extortion scheme against hundreds of people seeking romance through witchcraft and magic spells, was sentenced in federal court today to the maximum sentence - two years in prison.
According to court documents, targets of the scheme were directed to record themselves performing sexually explicit rituals to be used in casting love spells. Boiteux instead threatened to post the embarrassing videos on social media unless the clients paid large sums of money.
“This was a despicable scheme that preyed upon people who put their trust in a phony,” said U.S. Attorney Robert Brewer. “This defendant used the vulnerability of the lovelorn to humiliate and extort them, and for that he will pay a price.”
“I commend the dedicated work by our cybercrime experts who worked diligently to bring Boiteux, who dangerously preyed on others for his own financial gain, to justice,” said David Shaw, Special Agent in Charge for Homeland Security Investigations in San Diego. “This investigation underscores our commitment to keep pace with combatting criminal activity across all borders, including the internet.”
According to his plea agreement, Boiteux and several associates – operating out of Paraguay under the business name Amarres Inmediatos – offered to perform rituals that could improve one’s romantic relationships. Boiteux advertised these services on Facebook, Instagram, and MercadoLibre. The advertised services included casting spells designed to foster romantic relationships.
Clients who contacted Amarres Inmediatos soon learned that the rituals were performed remotely rather than in person. Clients were provided with a list of items to purchase, which typically included candles, alcohol, vegetables, and photographs. The ritual called for the client to drink alcohol, recite sexually explicit incantations, and perform sexual acts, all while recording the ritual. The client would then send the recordings of the ritual back to Boiteux and his associates, who would threaten to publicize the sexually explicit recordings unless the client paid an amount that far exceeded the initial price agreed upon for the ritual. In his plea agreement, Boiteux admitted to researching the clients to see who would be susceptible to extortion.
In February 2017, the plea agreement said, Boiteux obtained sensitive recordings of a client performing a ritual. The defendant researched the client’s background and determined that she was a well-connected public figure with access to significant financial resources. Boiteux and his associates then contacted the client and threatened to publicize the recordings unless she paid more than $250,000.
According to the plea agreement, in the fall of 2017, an undercover agent from Homeland Security Investigations called a phone number on the Amarres Inmediatos website and offered to purchase recordings of another victim, portions of which had been uploaded to publicly-available websites in an attempt to extort that victim. Boiteux agreed to sell the recordings for thousands of dollars and instructed the undercover agent to send a money transfer through Western Union. After the agent sent the money transfer, Paraguayan law enforcement officers waited at a Western Union in Ciudad del Este, Paraguay where Boiteux had picked up a previous money transfer. As expected, Boiteux arrived a short time later to pick up the transfer, but instead was arrested by Paraguayan officers. Boiteux was extradited to San Diego in July 2018.
DEFENDANT: Case Number 18-CR-2025-H
Ariel Boiteux Age: 31 San Juan, Argentina
SUMMARY OF CHARGES
Foreign Transmission of an Extortionate Threat – Title 18, U.S.C., Section 875
Maximum penalty: 2 years’ imprisonment and $250,000 fine
AGENCY
Homeland Security Investigations
Announcing the 2019 Women’s Leadership InitiativeRead the Press Release
Indianapolis - United States Attorney Josh J. Minkler is pleased to announce this year’s Women’s Leadership Initiative (WLI) Steering Committee members: Assistant United States Attorneys Cindy Cho, Kate Olivier, Kelly Rota, Gina Shields, U.S. District Court Law Clerk Sarah Dame, and FBI Special Agent Victoria Madtson. The WLI concept was conceived and implemented in 2016 by a Steering Committee that consisted of First Assistant U.S. Attorney Cynthia Ridgeway, Civil Chief Shelese Woods, Assistant U.S. Attorneys MaryAnn Mindrum and Michelle Brady, and Financial Litigation Unit Supervisor Tracy Jones, as a way to encourage and foster professional development, leadership acumen, and camaraderie.
Programs to-date have included presentations by Judges of the United States District and Bankruptcy Court, including the Honorable Sarah Evans Barker, the Honorable Tanya Walton Pratt, the Honorable Jane E. Magnus Stinson, Chief District Judge, Chief Bankruptcy Judge Robyn Moberly, Congresswoman Susan W. Brooks, Deborah Daniels of Krieg DeVault LLP (#Metoo), Anderson University President John Pistole (leadership and courage), John Trimble of Lewis Wagner LLP (unconscious bias), and Judy Shepard the mother of Matthew Shepard (diversity & inclusion), among others.
“Words of Advice for My Younger Self,” a Women’s Leadership Initiative event, will take place on Wednesday, May 8, 2019 at 12:00 p.m., at the United States Attorney’s Office located at 10 West Market Street, 20th Floor, Indianapolis, Indiana. The panel will be moderated by WLI Steering Committee members and will feature Michelle Brady, Assistant United States Attorney, Laura A. Briggs, Clerk of Court, United States District Court, Southern District of Indiana, Joe Cleary, Indiana Federal Community Defenders, and Kenneth Riggins of The Law Office of Kenneth Riggins.
“These public servants are charged with a daunting and critical task – to serve their community selflessly and completely, putting aside personal endeavors to pursue justice,” said Josh J. Minkler, U.S. Attorney. “We are pleased to support this continued partnership with and on behalf of our federal family in order to arm these civic-minded servant soldiers with the tools they need to nimbly strike the right balance on behalf of our community.”
Akron Man Pleads Guilty to Federal Drug Crime - Defendant Intended to Distribute over 196 Grams of Powerful CarfentanilRead the Press Release
Defendant Intended to Distribute Over 196 Grams of Powerful Carfentanil
HUNTINGTON, W.Va. – An Ohio man pled guilty today to a federal drug trafficking crime, announced U. S. Attorney Mike Stuart. Martel Trayvelle Easton, 21, of Akron, pled guilty to possessing with intent to distribute over 196 grams of carfentanil. Carfentanil is a form of fentanyl but 100 times more powerful, and 10,000 times more powerful than morphine. It is used as an elephant tranquilizer, and is commonly mixed with heroin and known on the street as “pink heroin.”
“100 times more powerful than fentanyl. 10,000 times more powerful than morphine. An elephant tranquilizer,” said United States Attorney Mike Stuart. “If law enforcement had not intervened before these drugs hit the streets of Huntington, many West Virginians would have lost their lives. I so much appreciate law enforcement’s tireless fight against evil. They put their own lives in peril every day in an effort to save the lives of the citizens of our great state.”
On February 7, 2018, the Huntington Violent Crime and Drug Task Force, along with member of the Huntington Police Department, served a search warrant at 1217 10th Avenue in Huntington after seeing drug traffic from that apartment, which was being used a storage house for drugs. Easton was in the apartment when law enforcement entered and ran out the back door while throwing cash. After a brief struggle, Easton was subdued and arrested. Law enforcement also seized approximately 8 grams of methamphetamine during the search.
Easton faces a minimum of 10 years and up to life imprisonment when he is sentenced on August 12, 2019. United States District Judge Robert C. Chambers presided over the plea hearing. Assistant United States Attorney Greg McVey is handling the prosecution.
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Albuquerque Businessman Pleads Guilty to Federal Tax Evasion ChargeRead the Press Release
ALBUQUERQUE – David Castle, 76, of Albuquerque, N.M., pleaded guilty to a tax evasion charge on May 3, 2019, before U.S. Magistrate Judge Steven C. Yarborough, announced U.S. Attorney John C. Anderson and Special Agent in Charge Ismael Nevarez, Jr., of the Phoenix Field Office of IRS-Criminal Investigation.
Castle, the owner and operator of the Gold and Silver Exchange (GSE), an Albuquerque-based store that focuses on the sale, purchase and repair of jewelry, was indicted in Feb. 2018, and was charged with obstructing the administration of the internal revenue laws and tax evasion.
Count 1 of the indictment charged Castle with perpetuating a scheme to evade and defeat the assessment and payment of taxes to the United States from Dec. 2004 through Jan. 2018. According to the indictment, Castle used several nominee businesses to conduct GSE’s financial operations to hide income generated by GSE from the IRS; executed his corrupt scheme by using bank accounts belonging to the nominee businesses; concealed personal income and expenditures; engaged in cash transactions; employed and paid GSE personnel in cash that could not easily be connected to GSE’s business operations; and deliberately failed to keep accurate business records reflecting GSE’s income and expenses.
Count 2 of the indictment alleged that from Dec. 2008 through Dec. 2017, Castle attempted to evade federal taxes for the years 1992-1993, 1995-2002, 2005, and 2006 in the approximate amount of $104,446.81. Castle committed this crime by concealing from the IRS the nature and location of his business revenue; placing funds in bank accounts belonging to nominee businesses; emphasizing cash operations in order to place the revenue beyond the reach of the legal process; and by failing to file personal and business income tax returns or by filing false or frivolous tax returns.
On Friday, Castle pled guilty to Count 2. In his plea agreement, Castle admitted from 2010 through 2013, while he was the sole owner and operator of GSE, he filed no tax returns for his business, his business provided no tax withholdings to the IRS, and he paid no taxes either for his business or his household. Castle acknowledged relying on cash transactions to operate GSE, and using bank accounts that appeared to be unassociated with GSE to conceal the business’s revenue. Castle agreed that his criminal conduct resulted in a tax loss of $211,829 during tax years 2010 through 2013.
At sentencing, Castle faces a maximum penalty of five years of imprisonment, a term of supervised release, a maximum fine of $250,000, and restitution. A sentencing date has yet to be scheduled.
This case was investigated by the Albuquerque office of IRS – Criminal Investigation and is being prosecuted by Assistant U.S. Shaheen P. Torgoley.
12 Individuals from the Colebrook Area Indicted on Drug Trafficking ChargesRead the Press Release
CONCORD - United States Attorney Scott W. Murray announced that 12 individuals who previously were arrested have been indicted by a federal grand jury for crimes that primarily involve prescription drug trafficking.
On May 2, 2019, a federal grand jury returned indictments of the following individuals:
Glenn M. Adjutant, 21, of Colebrook, was charged with distribution of Suboxone within 1,000 feet of a school and distribution of Suboxone and amphetamine (Adderall) within 1,000 feet of a school;
Roxanne Adjutant, 48, of Stratford, was charged with two counts of distribution of Suboxone within 1,000 feet of a school;
Timothy Adjutant, 27, of Colebrook, was charged with two counts of distribution of Suboxone within 1,000 feet of a school;
Brooke Butler, 35, of Stratford, was charged with two counts of distribution of Suboxone;
Peter Carney, 57, of Stewartstown, was charged with distribution of Suboxone within 1,000 feet of a school;
Rachel Edgerton, 50, of Stewartstown, was charged with distribution of oxycodone within 1,000 feet of a school and distribution of oxycodone;
Korin Gendreau, 32, of West Stewartstown, was charged with distribution of oxycodone and distribution of hydrocodone;
Dustin Grant, 34, of Colebrook, was charged with distribution of Suboxone within 1,000 feet of a school;
Michael R. Haynes, 38, of Colebrook, was charged with distribution of clonazepam within 1,000 feet of a school and distribution of methamphetamine within 1,000 feet of a school;
Sylvia Lewis, 52, of Colebrook, was charged with distribution of hydromorphone within 1,000 feet of a school, distribution of hydromorphone, and distribution of oxycodone and Adderall within 1,000 feet of a school;
Brian Rancourt, 44, of Stewartstown, was charged with distribution of Suboxone within 1,000 feet of a school and distribution of Suboxone; and
Eric W. Simpson, 39, of Stratford, was charged with two counts of distribution of Suboxone.
Eleven of the above-referenced individuals were arrested on April 9, 2019. Timothy Adjutant was arrested on April 17, 2019.
In addition, six other individuals have been charged in state court. This case was part of a coordinated operation involving federal, state and local law enforcement officers.
The charges in the indictments are only allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Charges of distribution of controlled substances within 1,000 feet of a school carry enhanced penalties, including a one-year mandatory minimum sentence.
This matter was investigated by the DEA, with assistance from the Colebrook Police Department, the New Hampshire State Police, U.S. Customs and Border Protection, the Office of Inspector General of the U.S. Department of Health and Human Services, the Coos County Sheriff’s Office, and the New Hampshire Liquor Commission’s Division of Enforcement & Licensing. The federal case is being prosecuted by Assistant United States Attorneys Charles Rombeau and John S. Davis. The state case is being prosecuted by Assistant Attorneys General Danielle Sakowski and Jesse O’Neill.
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Sunday 5 May 2019
Bakersfield Woman Indicted for Bank FraudRead the Press Release
FRESNO, Calif. — On May 5, 2019, a federal grand jury returned a four-count indictment against Amanda Joy Nash, 31, of Bakersfield, charging her with bank fraud, U.S. Attorney McGregor W. Scott announced.
According to court documents, between August 20, 2017, and March 6, 2018, Nash obtained checks that had been stolen from the mail and altered to change the payee name. Nash deposited the checks into her own and her associates’ bank accounts.
This case is the product of an investigation by the U.S. Postal Inspection Service. Assistant U.S. Attorney Vincente A. Tennerelli is prosecuting the case.
If convicted, Nash faces a maximum statutory penalty of 30 years in prison and a $1 million fine. Any sentence, however, would 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. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Saturday 4 May 2019
White River Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Ron Parsons announced that a White River, South Dakota, man convicted of Abusive Sexual Contact was sentenced on April 29, 2019, by U.S. District Judge Roberto A. Lange.
Roy Brushbreaker, III, age 24, was sentenced to 18 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Brushbreaker was indicted by a federal grand jury on May 15, 2018. He pled guilty on February 6, 2019.
The conviction stemmed from an incident that occurred on January 28, 2017, in the Horse Creek Community near White River. On that date, Brushbreaker was consuming alcoholic beverages and socializing at a house in Horse Creek. At one point, Brushbreaker was alone in the house with the 15-year-old victim, who had also been consuming alcoholic beverages. The victim went into a bedroom to change clothes, and Brushbreaker followed her and began touching her and making sexual advances. He stopped when he heard someone come into the house.
This case was investigated by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Brushbreaker was immediately turned over to the custody of the U.S. Marshals Service.
Todd County Man Indicted for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Todd County, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Kameron Lamont Jackson, age 26, was indicted on November 14, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 26, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Jackson was convicted of Attempted Sexual Abuse of a Minor and Abusive Sexual Contact in May 2013. As a result of this conviction, he is required to register as a sex offender for a period of 25 years. It is alleged that between October 3, 2018, and November 14, 2018, Jackson, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, failed to properly register as a sex offender.
The charge is merely an accusation and Jackson is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Michael J. Elmore is prosecuting the case.
Jackson was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
St. Francis Woman Sentenced for Involuntary ManslaughterRead the Press Release
United States Attorney Ron Parsons announced that a St. Francis, South Dakota, woman convicted of Involuntary Manslaughter was sentenced on April 29, 2019, by U.S. District Judge Roberto A. Lange.
Chelsea Okiya Wi Nixon, age 22, was sentenced to 13 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Nixon was indicted by a federal grand jury on December 11, 2018. She pled guilty on February 7, 2019.
The conviction stemmed from an incident that occurred on August 18, 2018, when Nixon had ingested methamphetamine and stayed up late the evening prior. Nixon fell asleep while bottle-feeding her child. A relative entered the room Nixon was sleeping in, and observed Nixon’s shoulder covering the child’s face. The cause of death was reported as “asphyxia due to smothering by mother.”
This case was investigated by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Michael J. Elmore prosecuted the case.
Nixon was immediately turned over to the custody of the U.S. Marshals Service.
Six Sioux Falls Residents Sentenced for Conspiracy to Commit Bank FraudRead the Press Release
United States Attorney Ron Parsons announced that two men and four women from Sioux Falls, South Dakota, convicted of Conspiracy to Commit Bank Fraud, were sentenced by U.S. District Judge Karen E. Schreier.
Brande Black, age 40, was sentenced on September 24, 2018, to 18 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Wakinyan Gay, age 20, was sentenced on October 22, 2018, to 18 months in federal prison, followed by 5 years of supervised release, restitution in the amount of $11,135.90, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Cornell Butler, age 46, was sentenced on December 10, 2018, to time served, 5 years of supervised release, restitution in the amount of $3,093.13, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Vanessa Carr, age 38, was sentenced on December 27, 2018, to time served, 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Brandy Scholl, a/k/a Brandy Bentine, age 39, was sentenced on January 28, 2019, to 41 months in federal prison, followed by 4 years of supervised release, restitution in the amount of $32,189.07, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Brittany Hockett, age 28, was sentenced on April 12, 2019, to time served, 4 years of supervised release, restitution in the amount of $17,110.04, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
All Defendants were indicted by a federal grand jury on April 4, 2018. Black pled guilty on June 25, 2018; Gay pled guilty on July 26, 2018; Butler pled guilty on July 30, 2018; Carr pled guilty on October 3, 2018; Scholl pled guilty on November 5, 2018; and Hockett pled guilty on February 1, 2019.
The convictions stemmed from incidents beginning on or about July 18, 2017, and continuing through August 30, 2017. The Defendants knowingly and willfully conspired and agreed together and with each other, to execute a scheme to defraud one or more financial institutions in the District of South Dakota.
In furtherance of the conspiracy, one or more of the conspirators stole legitimate checks from the unsecured mailboxes of various individuals and businesses in the Sioux Falls area, altered the stolen checks by removing some of the original information regarding the payee and the payment amount of the checks, then adding fraudulent payee information and fraudulent payment amounts in order to defraud the financial institutions.
This case was investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
Black, Gay, and Scholl were immediately turned over to the custody of the U.S. Marshals Service.
Sioux Falls Man Sentenced for Stolen Firearm OffenseRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man convicted of possessing a stolen firearm was sentenced on April 30, 2019, by U.S. District Judge Karen E. Schreier.
William Willis, age 35, was sentenced to 53 months in custody, followed by 3 years of supervised release, and ordered to pay $100 to the Federal Crime Victims Fund.
WIllis was indicted for Possession of a Stolen Firearm by a federal grand jury on August 7, 2018. He pled guilty on February 4, 2019.
On February 13, 2018, the Sioux Falls Police Department received a report that Willis had stolen his former employer’s 9mm handgun. That evening, Sioux Falls Police Department officers stopped Willis’ vehicle for a traffic violation. An officer performed a pat-down search and located the firearm concealed beneath Willis’ coat in his back waistband.
This case was investigated by the Sioux Falls Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Special Assistant U.S. Attorney Tamara Nash prosecuted the case.
Willis was immediately turned over to the custody of the U.S. Marshals Service.
Ravinia Man Sentenced for AssaultRead the Press Release
United States Attorney Ron Parsons announced that a Ravinia, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury was sentenced on April 30, 2019, by U.S. District Judge Karen E. Schreier.
Jacob Neault, age 26, was sentenced to 37 months in federal prison, followed by 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Neault was indicted by a federal grand jury on May 8, 2018. He pled guilty on February 4, 2019.
The conviction stemmed from an incident on April 24, 2018, when Neault unlawfully shook a two-month old child. The said assault caused serious injury, including severe head, brain, and eye trauma.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
Neault was immediately turned over to the custody of the U.S. Marshals Service.
Pine Ridge Woman Sentenced for Theft of Government PropertyRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, woman convicted of Theft of Government Property was sentenced by Daneta Wollmann, U.S. Magistrate Judge.
Monica Tyon, age 52, was sentenced on April 26, 2019, to pay a $25 special assessment to the Federal Crime Victims Fund and $4,755 in restitution.
The conviction stemmed from Tyon willfully and knowingly receiving approximately $4,755 in General Assistance funds, for which she was not eligible, between 2015 and 2018 while being employed with the Oglala Sioux Tribe Ambulance Services.
This case was investigated by the Office of Inspector General, U.S. Department of the Interior. Assistant U.S. Attorneys Cassandra DeCoste and Eric Kelderman prosecuted the case.
Mobridge Man Charged with Drug TraffickingRead the Press Release
United States Attorney Ron Parsons announced that a Mobridge, South Dakota, man has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance and Distribution of a Controlled Substance.
Meinrad Medicine, age 58, was indicted on March 12, 2019. He appeared before U.S. Magistrate Judge William D. Gerdes on May 2, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $1,000,000 fine, 3 years up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between December 21, 2016, and March 27, 2017, Medicine knowingly and intentionally conspired with others to distribute a substance containing a detectable amount of Hydrocodone and Oxycodone and did distribute the same.
The charges are merely accusations and Medicine is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Medicine was released on bond pending trial. A trial date has not been set.
Lower Brule Man Charged with Sexual Abuse, Assault by Strangulation, and Child AbuseRead the Press Release
United States Attorney Ron Parsons announced that a Lower Brule, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse, Assault of a Spouse by Strangulation, and Child Abuse.
Boyer Thomas LaForge, Jr., age 31, was indicted on April 9, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 26, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $250,000 fine, 5 years, up to life, of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on February 4, 2019, LaForge knowingly caused his intimate partner to engage in a sexual act by use of force, and further assaulted the victim by strangling and suffocating her. The Indictment further alleges that LaForge did abuse, expose, torture, torment, and cruelly punish a child who had not attained the age of 18.
The charges are merely accusations and LaForge is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
LaForge was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Cherry Creek Man Charged with Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Ron Parsons announced that a Cherry Creek, South Dakota, man has been indicted by a federal grand jury for Assault Resulting in Serious Bodily Injury.
Myron Flying By Jr., age 25, was indicted on April 9, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 30, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on January 19, 2019, Flying By Jr. assaulted an individual and said assault resulted in serious bodily injury.
The charge is merely an accusation and Flying By Jr. is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Flying By Jr. was released on conditions pending trial. A trial date has not been set.
Friday 3 May 2019
Wilkinsburg Felon Pleads Guilty to Gun ChargeRead the Press Release
PITTSBURGH, Pa - A resident of Wilkinsburg, Pennsylvania, pleaded guilty yesterday in federal court to a charge of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
Mitchell Thompson, 21, pleaded guilty to one count before Chief United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that on August 30, 2018, Thompson unlawfully possessed a Glock 9 millimeter pistol, after having been convicted of crimes punishable by more than one year in prison. Specifically, on August 30, 2018, law enforcement observed Mitchell take a black semi-automatic handgun from the front left side of his pants, and attempt to discard the gun into a row of bushes next to the sidewalk. The gun did not go into the bushes, instead bouncing back onto the sidewalk. The magazine then fell from the gun. Thompson’s convictions include one conviction for a firearms violation and one conviction for possession with intent to deliver a controlled substance and conspiracy to deliver a controlled substance. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition.
Judge Hornak scheduled sentencing for August 29, 2019. The law provides for a maximum total sentence of 10 years in prison, a fine of up to $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal historyof the defendant.
Assistant United States Attorney Christy C. Wiegand is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, along with the Bureau and Alcohol, Tobacco, Firearms and Explosives and the Wilkinsburg Police Department, conducted the investigation leading to the Indictment in this case. The case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Wheeling man sentenced for firearms chargeRead the Press Release
WHEELING, WEST VIRGINIA – Charles C. Ansley, Jr., of Wheeling, West Virginia, was sentenced this week to 24 months incarceration for unlawful possession of a firearm, United States Attorney Bill Powell announced.
Ansley, age 37, pled guilty to one count of “Unlawful Possession of a Firearm” in February 2018. Ansley, having previously been convicted of burglary in Commons Pleas Court in Lucas County, Ohio, admitted to possessing a .22 caliber revolver in Ohio County on August 2017.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Wheeling Police Department investigated.
U.S. District Judge John Preston Bailey presided.
Westchester Man Sentenced to 19½ Years in White Plains Federal Court for Sex Trafficking of Minors and Child Pornography ProductionRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced that VICTOR GONZALEZ was sentenced yesterday in White Plains federal court to 235 months in prison for sex trafficking of minors and production of child pornography. GONZALEZ pled guilty to these charges on January 24, 2019. United States District Judge Cathy Seibel imposed yesterday’s sentence.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Victor Gonzalez admitted to the reprehensible crimes of trafficking underage girls for his commercial benefit and producing child pornography of one of his victims. He will now serve over 19 years in prison, were he will not be able to harm any more children.”
FBI Assistant Director William F. Sweeney Jr. said: “It is our responsibility as a community to protect the vulnerable, and stop people like Mr. Gonzalez from ever harming girls again. However, the FBI needs your help and law enforcement cannot do this on our own. We work with dedicated detectives, community activists and charity organizations who do all they can to help these girls get away from these criminal and rebuild their lives. We also need help from the community. If you know of a young girl or boy in trouble, please contact the FBI at 212-384-1000.”
According to the Information and other filings in White Plains federal court:
From at least in or about 2014 to in or about June 2018, GONZALEZ engaged in the sex trafficking of three teenage girls (“Victim-1,” “Victim-2,” and “Victim-3”) for his own commercial benefit. GONZALEZ solicited Victim-1, who was approximately 14 or 15 years old, and Victim-2, who was approximately 15 or 16 years old, for sex in exchange for money. He met Victim-3, who was 17 years old, on an online dating website after he misrepresented himself as being in his 20’s. After establishing a relationship with each of the victims, GONZALEZ, using online services and the telephone, posted online advertisements for commercial sex services with the minor victims and arranged for the victims to engage in those services with adult men. He also transported the victims on numerous occasions to meet with those men in New York and Connecticut. GONZALEZ further sexually abused the victims himself. In addition, in or about January 2016, GONZALEZ produced a video containing child pornography of Victim-1, depicting GONZALEZ engaged in sexual activity with the victim.
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In addition to his prison term, GONZALEZ, 41, of Millwood, New York, was sentenced to 10 years of supervised release and restitution in an amount to be determined by the Court at a later date.
Mr. Berman praised the outstanding investigative work of the FBI’s Westchester County Safe Streets Task Force, the Greenburgh Police Department, and the New Castle Police Department and thanked the Westchester County District Attorney’s Office and the White Plains Police Department for their assistance.
This case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys Jacqueline Kelly and Christopher Brumwell are in charge of the prosecution.
West Virginia Man Sentenced for Interstate Transportation of Two Checks Taken by FraudRead the Press Release
PITTSBURGH: A resident of Wellsburg, West Virginia, has been sentenced in federal court to three year of probation on his conviction of violating federal laws of interstate transportation of fraudulently obtained property, United States Attorney Scott W. Brady announced today.
United States District Judge Nora Barry Fischer imposed the sentence on James E. Miller, III, age 48, of Wellsburg, West Virginia.
According to the information presented to the court, Miller unlawfully caused two checks totaling $32,671.50, issued by a victim business, to be transported from Charleroi, Pennsylvania to Wellsburg, West Virginia, knowing that the checks were taken by fraud. Miller transported a check in the amount of $19,527.50 in November 2016 and a check in the amount of $13,144.00 in January 2017.
Assistant United States Attorney Yvonne M. Saadi prosecuted this case on behalf of the government.
The U.S. Attorney commended the United States Postal Inspection Service – Criminal Investigation for the investigation leading to the successful prosecution of James E. Miller, III.
Waterbury Man Pleads Guilty to Distributing CrackRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that CHARLES WILKERSON, 37, of Waterbury, pleaded guilty yesterday before U.S. District Judge Michael P. Shea in Hartford to one count of distribution of 28 grams or more of cocaine base (“crack”).
According to court documents and statement made in court, in May and June 2018, law enforcement made four controlled purchases of crack cocaine from Wilkerson in Waterbury. One of the crack cocaine sales involved approximately 34 grams of crack.
Wilkerson was arrested on a federal criminal complaint on August 16, 2018.
Judge Shea scheduled sentencing for August 5, 2019, at which time Wilkerson faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years. Wilkerson is released on a $200,000 bond pending sentencing.
Wilkerson’s criminal history includes several state convictions, including five convictions for distributing narcotics. At the time of the drug sales in May and June 2018, Wilkerson was released on bond after being arrested in Torrington for distributing crack and other offenses.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Federal Bureau of Investigation and Waterbury Police Department. The case is being prosecuted by Assistant U.S. Attorney Natasha Freismuth.
Waterbury Man Charged with Drug and Gun OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a grand jury in Hartford has returned an indictment charging WILLIAM MOORE, 39, of Waterbury, with drug trafficking and firearm offenses.
The indictment was returned on April 10, 2019. Moore appeared today before U.S. Magistrate Judge Robert M. Spector in New Haven and pleaded not guilty to the charges. He has been detained since February 25, 2019, when he was arrested on related state charges.
The indictment alleges that, on February 25, 2019, Moore possessed heroin and crack cocaine that he intended to distribute, and a Glock, Model 23, .40 caliber semi-automatic handgun.
It is further alleged that Moore’s criminal history includes felony convictions in New York for assault in the first degree and assault in the second degree. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm that has moved in interstate or foreign commerce.
The indictment charges Moore with one count of possession of cocaine base (“crack”) and heroin with intent to distribute, an offense that carries a maximum term of imprisonment of 20 years; one count of unlawful possession of a firearm by a convicted felon, and offense that carries a maximum term of imprisonment of 10 years, and one count of possession of a firearm in furtherance of drug trafficking, an offense that carries a mandatory consecutive term of imprisonment of at least five years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Waterbury Police Department. The case is being prosecuted by Assistant United States Attorney Michael J. Gustafson.
This prosecution has been brought through 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.
United States Attorney Minkler leads efforts to seize street drugs from Indianapolis drug traffickersRead the Press Release
INDIANAPOLIS –United States Attorney Josh J. Minkler announced that a Complaint was filed naming two defendants in drug trafficking offenses. Christopher Deeren was charged with drug possession with intent to distribute and/or distribute methamphetamine. Arthur Miles was charged with drug possession with intent to distribute and/or distribution of MDMA (ecstasy), methamphetamine and cocaine.
“In the wake of the opioid epidemic, our federal prosecutors and investigators continue to fight street battles involving the large scale distribution of addictive illicit drugs such as methamphetamine, cocaine, and in this case ecstasy or MDMA,” said Minkler. “We implore parents and the community at large to give careful consideration to the devastation and havoc these street drugs are having on our society and to partner with law enforcement through anonymous tips whenever possible.”
In 2019, federal investigators learned information about Deeren and initiated an investigation, followed by the execution of a federal search warrant at Dereen’s residence. Deeren and Miles were located at the residence and were arrested for operating a drug trafficking organization in the Brightwood neighborhood on the north side of Indianapolis, Indiana. Agents seized approximately 300.2 grams of methamphetamine, 320.4 grams of cocaine, 15,000 MDMA pills and two rifles.
“DEA working in concert with the Indianapolis Metropolitan Police Department and United States Attorney's Office will continue to identify subjects involved in selling/distributing illegal drugs including MDMA, methamphetamine, cocaine and other illicit drugs,” said DEA Assistant Special Agent in Charge Michael Gannon. “The residents of Indianapolis should be cautioned that drug dealers deal poison and prey on the weak, and cause enormous harm to our communities. Indianapolis drug dealers are put on notice. We will arrest you and ensure you are brought to justice, swiftly.”
“The distribution of illicit drugs causes violence that impacts our lives, families and communities,” said IMPD Chief Bryan Roach. “Collaborative and explicit investigative/enforcement of those who profit on the distribution and sale of illegal and highly addictive drugs will continue to be a focus of the collective law enforcement communities. Equally as important is ensuring law enforcement continues to collaborate with community-based social services to aid those struggling with addiction and substance abuse challenges.”
This case was jointly investigated by the Drug Enforcement Administration and the Indianapolis Metropolitan Police Department.
According to Assistant United States Attorney Pamela Domash, who is prosecuting this case for the government, Deeren and Miles each face up to 40 years’ imprisonment if convicted.
A Complaint is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting those who engage in violent crime involving drugs and firearms. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 2.2
U.S. Attorney’s Office Hosts Roundtable to Combat Sexual Harassment in HousingRead the Press Release
Greensboro, NC – On April 30, the U.S. Attorney’s Office for the Middle District of North Carolina and the Justice Department’s Civil Rights Division hosted a roundtable for community organizations to discuss the problem of sexual harassment in housing, U.S. Attorney Matthew G.T. Martin announced. The event included state and local fair housing agencies, a representative from Legal Aid of North Carolina’s Fair Housing Project, and numerous community organizations.
“A tenant should be able to feel safe in her own home.” U.S. Attorney Martin said. “Landlords and others who abuse a position of power to commit sexual harassment violate a person’s right to fair housing. Attacking exploitation is a priority of our office, and we are dedicated to uncovering fair housing violations and aggressively pursuing those individuals who violate the law.”
The Department of Justice, through the U.S. Attorney’s Offices and the Civil Rights Division, enforces the federal Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. Sexual harassment is a form of sex discrimination prohibited by the Act.
In October 2017, the Justice Department’s Civil Rights Division announced an initiative to combat sexual harassment in housing. In April 2018, the Justice Department announced the nationwide rollout of that initiative, including three major components: a new joint Task Force with the Department of Housing and Urban Development to combat sexual harassment in housing, an outreach toolkit to leverage the Department’s nationwide network of U.S. Attorney’s Offices, and a public awareness campaign, including the launch of a national Public Service Announcement.
The Justice Department’s initiative seeks to identify barriers to reporting sexual harassment in housing, increase awareness of the Justice Department’s enforcement efforts – both among survivors and those they may report to – and collaborate with federal, state, and local partners to increase reporting and help survivors quickly and easily connect with federal resources.
Our office is working closely with the Civil Rights Division to spread the word here in the Middle District of North Carolina about options to help victims experiencing sexual harassment or who experienced sexual harassment in housing in the past. Roundtable discussions like the one that U.S. Attorney Martin hosted today are one way to increase awareness and build strong partnerships in the community to combat this problem together. Assistant U.S. Attorney Cassie Crawford is leading the Sexual Harassment in Housing Initiative in the district.
Our community organizations, such as local law enforcement, legal aid offices, fair housing organizations, shelters, and transitional housing providers can identify the misconduct and recommend that victims report sexual harassment to the Civil Rights Division, using the contact information below. Local police departments or legal aid offices may be able to help victims, if the behavior is a crime or if there is an imminent eviction. Legal Aid of North Carolina’s Fair Housing Project Hotline is 1-855-797-3247.
The Justice Department brings cases each year involving egregious conduct, including allegations that defendants have exposed themselves sexually to current or prospective tenants, requested sexual favors in exchange for reduced rents or making necessary repairs, made unrelenting and unwanted sexual advances to tenants, and evicted tenants who resisted their sexual overtures. Since launching the initiative, the Justice Department has filed nine lawsuits alleging a pattern or practice of sexual harassment in housing. The Justice Department has filed or settled 14 sexual harassment cases since January 2017, and has recovered over $2.2 million for victims of sexual harassment in housing.
Many instances of sexual harassment in housing continue to go unreported. The Justice Department’s investigations frequently uncover sexual harassment that has been ongoing for years or decades and identify numerous victims who never reported the conduct to federal authorities.
The Department encourages anyone who has experienced sexual harassment in housing, or knows someone who has, to contact the Division by calling 1-844-380-6178 or emailing [email protected]. Individuals can also report sexual harassment and other forms of housing discrimination by e-mailing the U.S. Attorney’s Office at [email protected].
More information about the Justice Department’s Civil Rights Division and the laws it enforces can be found at http://www.justice.gov/crt.
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Two Pharmacists at New England Compounding Center Convicted by Federal JuryRead the Press Release
BOSTON – Two former verification pharmacists at New England Compounding Center (NECC) were convicted yesterday of violating the Food, Drug, and Cosmetic Act (FDCA). The convictions mark the fourth and final trial resulting from the 2014 indictment of NECC owners, employees, and executives in connection with the 2012 nationwide fungal meningitis outbreak.
Kathy S. Chin, 47, of Canton, and Michelle L. Thomas, 35, of Cumberland, R.I., were convicted of four and two counts, respectively, of dispensing drugs without valid prescriptions with the intent to defraud or mislead government regulators. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Aug. 8 and Aug. 9, 2019, respectively.
During the trial, the jury heard evidence that NECC, a licensed pharmacy, routinely dispensed drugs in bulk without valid prescriptions. Chin and Thomas served as verification pharmacists, signing off on drug orders prior to shipment to customers. Chin was convicted of approving shipments of drugs for patients with names such as Flash Gordon, Long John, Tony Tiger, Chester Cheeto, Dale Earnhardt, Tom Brokaw, Jon Stewart, Jay Leno, David Letterman, and Dick Van Dyke, among others. Thomas was convicted of approving shipments of drugs for patients with names such as L.L. Bean, Filet O’Fish, Rug Doctor, Squeaky Wheel, Dingo Boney, Coco Puff, and Harry Potter, among others.
The jury also found that Chin and Thomas dispensed these prescription drugs with the intent to defraud and mislead government regulators. Specifically, the evidence demonstrated that NECC repeatedly took steps to shield its operations from regulatory oversight by the Food and Drug Administration (FDA) by claiming to be a pharmacy dispensing drugs pursuant to valid, patient-specific prescriptions. The jury heard evidence that the fake prescriptions approved by Chin and Thomas allowed NECC to operate as an unregulated drug manufacturer.
Today, Alla Stepanets, 38, of Framingham, was sentenced to one-year of probation by Judge Stearns. In December 2018, Stepanets, a licensed pharmacist, who worked as another verification pharmacist at NECC, was convicted of six counts of dispensing drugs without valid prescriptions. Specifically, Stepanets was convicted of approving shipments of drugs for patients with names such as Wonder Woman, Fat Albert, Bud Weiser, Samuel Adams, Hindsight Man, Betty Ford, Jimmy Carter, Bill Clinton, Donald Trump, Calvin Klein and Jennifer Lopez, among others.
In June 2017, Barry Cadden, the former owner and head pharmacist for NECC, was sentenced to nine years in prison and three years of supervised release after being convicted of racketeering, racketeering conspiracy, mail fraud and introduction of misbranded drugs into interstate commerce with the intent to defraud and mislead. In January 2018, Glenn Chin, NECC’s former supervisory pharmacist, was sentenced to eight years in prison and two years of supervised release after being convicted of 77 counts. With the convictions of Chin and Thomas yesterday, a total of 13 NECC defendants have been convicted of 178 charges.
United States Attorney Andrew E. Lelling; FDA Acting Commissioner Norman E. Sharpless, M.D.; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Leigh-Alistair Barzey, Special Agent in Charge of the Defense Criminal Investigative Service, Northeast Field Office; Sean Smith, Special Agent in Charge of the Department of Veterans Affairs Office of Inspector General, Criminal Investigations Division; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division, made the announcement today. Acting Chief Amanda P.M. Strachan of Lelling’s Health Care Fraud Unit and Assistant U.S. Attorney George P. Varghese investigated and indicted the case. Strachan and Assistant U.S. Attorney Christopher Looney tried the case against Chin and Thomas.
Two Men Plead Guilty to $2.6M Auto Loan SchemeRead the Press Release
COLUMBUS, Ohio – An Ohio man and a Texas man pleaded guilty in U.S. District Court to crimes related to an auto-loan scheme in Texas and Columbus, Ohio that netted more than $2.6 million in fraudulent loans from at least nine financial institutions.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, William Cheung, Acting Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation and Yvonne DiCristoforo, Special Agent in Charge, United States Secret Service, announced the pleas entered into yesterday afternoon before U.S. District Judge Michael H. Watson.
According to court documents, from at least August 2014 through April 2018, Watson and Johnson recruited people who were qualified for membership in eligibility-based financial institutions like USAA, Navy Federal Credit Union and Pentagon Federal Credit Union to create accounts at those institutions.
Albert Watson, 37, of Columbus, Ohio, and Rassaun E. Johnson, 46, of Texas, then caused fraudulent loan applications to be submitted to the financial institutions.
Initially, the defendants simply inflated the sales price of actual vehicle sales to pocket the difference. Eventually, loan applications were submitted when there was no actual transfer of vehicle.
In many cases, multiple fraudulent auto loan applications were submitted on a single vehicle, with no intention that the vehicle’s ownership would transfer in accordance with the information submitted on the auto loan applications. The loans obtained were as large as $40,000.
In total, the financial institutions funded at least $2,680,423.26 million in loans that Watson and Johnson and others obtained by fraud.
Watson and Johnson each pleaded guilty to one count of conspiracy to commit bank fraud (punishable by up to 30 years in prison) and one count of conspiracy to commit money laundering (punishable by up to 20 years in prison).
As part of their pleas, they have agreed to pay the more than $2.6 million in restitution.
U.S. Attorney Glassman commended the investigation of this case by the IRS-Criminal Investigation and U.S. Secret Service, as well as Assistant United States Attorney Peter K. Glenn-Applegate, who is representing the United States in this case.
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Two Greek Shipping Companies Sentenced After Illegally Discharging Oil into Texas Port WatersRead the Press Release
Two Greek shipping companies, Avin International LTD and Nicos I.V. Special Maritime Enterprises, were sentenced today in the Eastern District of Texas before Judge Marcia A. Crone on charges stemming from several discharges of oil into the waters of Texas ports by the oil tanker M/T Nicos I.V., announced Assistant Attorney General Jeffrey Bossert Clark for the Justice Department’s Environment and Natural Resources Division and United States Attorney Joseph D. Brown for the Eastern District of Texas.
Avin International was the operator and Nicos I.V. Special Maritime Enterprises was the owner of the Nicos I.V., which is a Greek-flagged vessel. The Master of the Nicos I.V., Rafail-Thomas Tsoumakos, and the vessel’s Chief Officer, Alexios Thomopoulos, also pleaded guilty to making material false statements to members of the United States Coast Guard during the investigation into the discharges.
Both companies pleaded guilty to one count of obstruction of an agency proceeding, one count of failure to report discharge of oil under the Clean Water Act, and three counts of negligent discharge of oil under the Clean Water Act on Nov. 26, 2018. Under the plea agreement, the companies will pay a $4 million criminal fine and serve a four-year term of probation, during which vessels operated by the companies will be required to implement an environmental compliance plan, including inspections by an independent auditor. Mr. Tsoumakos and Mr. Thomopoulos both pleaded guilty to one count of making a material false statement and were sentenced to pay fines of $10,000 each on Dec. 20, 2018.
“Our nation, including the State of Texas, rely on America’s ports and coastal waters for trade, recreation, and environmental enjoyment. Foreign companies acting in defiance of the laws and regulations that protect these valued resources threaten adjacent communities as well as marine ecosystems more broadly,” said Assistant Attorney General Clark. “The Division remains committed to pursuing justice for these offenders, and today’s action stands as proof of that commitment.”
“Our coastal waterways are critically important,” said United States Attorney Joseph D. Brown. “Companies that use them are expected to help maintain them by abiding by the Clean Water Act. When they do not, there will continue to be investigations and consequences for those violations. Furthermore, individuals are always expected to tell the truth when investigations are required, and failure to deal truthfully with investigators always makes a situation worse.”
“We are very grateful for the opportunity to work with the Coast Guard Investigative Service, the United States Department of Justice’s Environmental Crimes Section, and the United States Attorney’s Office, who were all instrumental in achieving this significant outcome,” said Captain Jacqueline Twomey of U.S. Coast Guard Sector MSU Port Arthur. “We believe that the results of this case will serve as a deterrent that will ultimately prevent or reduce the damage to the environment. By demonstrating the consequences of this vessel’s illicit actions, the intense collaboration and attention to detail of all team members ensured this vessel and others, with similar intentions that conduct trade in the United States, comply with domestic and international environmental laws intended to eliminate marine pollution around the globe.”
According to documents filed in court, the Nicos I.V. was equipped with a segregated ballast system, a connected series of tanks used to control the trim and list of the vessel by taking on or discharging water, the latter involving an operation called deballasting. At some point prior to July 6, 2017, the ballast system of the Nicos I.V. became contaminated with oil and that oil was discharged twice from the vessel into the Port of Houston on July 6 and July 7, 2017, during deballasting operations. Both Tsoumakos and Thomopoulos were informed of the discharges of oil in the Port of Houston. Tsoumakos failed to report the discharges, which, as the person in charge of the vessel, he was required to do under the Clean Water Act. Neither discharge was recorded in the vessel’s oil record book, as required under MARPOL and the Act to Prevent Pollution from Ships.
After leaving the Port of Houston, en route to Port Arthur, Texas, oil was observed in several of the ballast tanks. After arriving in Port Arthur, additional oil began bubbling up next to the vessel, which was then reported to the U.S. Coast Guard. During the ensuing investigation, both Tsoumakos and Thomopoulos lied to the Coast Guard, stating, among other things, that they had not been aware of the oil in the ballast system until after the discharge in Port Arthur, and that they believed that the oil in the ballast tanks had entered them when the vessel took on ballast water in Port Arthur.
The case was investigated by the U.S. Coast Guard Investigative Service, with assistance from the U.S. Coast Guard Sector MSU Port Arthur, which conducted the inspection of the ship. Additional assistance was provided by the U.S. Environmental Protection Agency’s Criminal Investigation Division, the Jefferson County Sheriff’s Office Marine Unit, and the Beaumont Police Department. The prosecution was handled by Trial Attorney Lauren D. Steele of the Environmental Crimes Section of the U.S. Department of Justice and Assistant United States Attorney Joseph R. Batte of the Eastern District of Texas.
Two Boston Men Sentenced in Connection with Trans-National Methamphetamine Trafficking RingRead the Press Release
BOSTON – Two Boston men have been sentenced in federal court in Boston in connection with their roles in a large-scale methamphetamine trafficking and money laundering ring operating between Massachusetts and California.
Mario Castro, 50, was sentenced yesterday to 57 months in prison by U.S. Senior District Court Judge George A. O’Toole, Jr., in connection with his role in distributing methamphetamine in the Boston area. Jorge Grandon, 49, was sentenced on Wednesday, May 1, 2019, by Judge O’Toole to 30 months in prison for his role in the conspiracy.
Castro and Grandon were two of 11 men from Massachusetts and California who were indicted in 2016 on offenses including conspiracy to distribute and to possess with intent to distribute methamphetamine, distribution of methamphetamine and possession of methamphetamine with intent to distribute, and conspiracy to launder monetary instruments. All 11 defendants have pleaded guilty to federal charges. Eight defendants are still pending sentencing; a ninth defendant, Christopher Halfond, was sentenced by Judge O’Toole on April 29, 2019 to 140 months in federal prison.
The charges were the result of a two-year investigation into methamphetamine trafficking. Beginning in at least 2013, the defendants participated in a conspiracy to transport sizeable quantities of methamphetamine from San Diego, Calif., to Massachusetts, where it was distributed in the greater Boston area. Proceeds from the sale of that methamphetamine were then transported and/or transferred back to California and laundered in various ways. In December 2015, agents seized approximately 75 grams of 99% pure methamphetamine that had been ordered by Grandon and were hidden in Castro’s pants.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; William Ferrara, Director of Field Operations of U.S. Customs and Border Protection; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Boston Police Commissioner William Evans made the announcement. The Massachusetts Department of Correction; Norfolk County Sherriff’s Office; Suffolk County Sheriff’s Office; the Reading, Watertown, Quincy, Chelsea, Braintree, Peabody, Waltham, and Woburn Police Departments; and Connecticut State Police assisted with the investigation. Assistant U.S. Attorneys James E. Arnold and Jared C. Dolan of Lelling’s Narcotics & Money Laundering Unit are prosecuting the cases.
Tulsa Armed Robber Sentenced to Federal PrisonRead the Press Release
A man who was shot by store employees while robbing a Tulsa liquor store was sentenced Friday to 22 years in federal prison, announced U.S. Attorney Trent Shores.
U.S. District Judge Gregory K. Frizzell further sentenced Tyrone Lee, 37, of Tulsa, to 5 years supervised release following his term of imprisonment.
“Violent criminals like Tyrone Lee are a threat to the lives of every Oklahoman. This robbery could have ended in tragedy, but it ended with justice,” said U.S. Attorney Shores. “We are pleased the court handed down a sentence of 22 years in federal prison. Chalk this up as another success story for Project Safe Neighborhoods, as another ‘Alpha criminal’ was removed from our Tulsa streets.”
In January, Lee pleaded guilty to the Feb. 22, 2018, robbery of Forest Acres Liquor. During the robbery, Lee threatened the store employees with a loaded sawed off shotgun. The two employees shot and injured Lee while the robbery was in progress, but he managed to escape. Tulsa police officers arrested Lee after he was admitted to a hospital for his injuries. Lee pleaded guilty to all four counts of the Indictment, which included the use and discharge of a firearm during and in relation to a crime of violence, possession of an unregistered firearm and felon in possession of a firearm.
Lee will remain in the custody of the U.S. Marshals Service until transfer to a U.S. Bureau of Prisons facility.
This case is the result of a joint investigation by the Tulsa Police Department, FBI and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Dennis Fries prosecuted the case.
Project Safe Neighborhoods is the nationwide federal initiative to disrupt gun violence strategically and comprehensively, using all available enforcement and prosecutive tools. The initiative involves a partnership of federal, state, and local authorities, uniting their efforts and leveraging existing and new resources. The U.S. Attorney’s Office and its partners tailor their efforts to meet their own district’s unique needs, helping ensure the safety of communities in the Northern District of Oklahoma.
Toledo man indicted for conspiracy to possess with the intent to distribute heroin and fentanylRead the Press Release
A Toledo man was indicted for conspiracy to possess with the intent to distribute heroin and fentanyl.
Donald Fuller, 49, possessed with the intent to distribute at least one kilogram of heroin and at least 400 grams of fentanyl between 2016 and 2019, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Federal Bureau of Investigation, the Toledo Police Department and the Toledo Metro Drug Task Force. The case is being handled by Assistant U.S. Attorneys Ashley A. Futrell and Alissa M. Sterling.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three Germans Who Allegedly Operated Dark Web Marketplace with over 1 Million Users Face U.S. Narcotics and Money Laundering ChargesRead the Press Release
SACRAMENTO, Calif. — Following a nearly two-year international investigation involving U.S. law enforcement and authorities in Germany and the Netherlands, federal prosecutors have charged three German nationals with being the administrators of Wall Street Market (WSM), which was one of the world’s largest dark web marketplaces that allowed vendors to sell a wide variety of contraband, including an array of illegal narcotics, counterfeit goods and malicious computer hacking software. A Brazilian national was also charged for allegedly acting as a moderator for WSM.
A criminal complaint filed Wednesday in United States District Court in Los Angeles alleges that the three defendants, who currently are in custody in Germany, were the administrators of WSM, a sophisticated online marketplace available in six languages that allowed approximately 5,400 vendors to sell illegal goods to about 1.15 million customers around the world. Like other dark web marketplaces previously shut down by authorities — SilkRoad and AlphaBay, for example — WSM functioned like a conventional e-commerce website, but it was a hidden service located beyond the reach of traditional internet browsers, accessible only through the use of networks designed to conceal user identities, such as the Tor network.
For nearly three years, WSM allegedly was operated on the dark web by the three men who now face charges in both the United States and Germany. An “exit scam” was allegedly conducted last month when the WSM administrators took all of the virtual currency held in marketplace escrow and user accounts – believed by investigators to be approximately $11 million – and then diverted the money to their own accounts. Exit scams are common among large darknet marketplaces, which typically hold money in escrow while a vendor delivers illicit goods.
A defendant linked to Wall Street Market was charged yesterday in a criminal complaint filed in U.S. District Court in Sacramento. Marcos Paulo De Oliveira-Annibale, 29, of Sao Paulo, Brazil, also faces federal drug distribution and money laundering charges for allegedly acting as a moderator who, among other things, mediated disputes between vendors and their customers. Annibale, who used the online monikers “MED3LIN,” also acted as a public relations representative for WSM by, among others things, promoting WSM on websites such as Reddit, according to the complaint. The case naming Annibale was unsealed today when Brazilian authorities executed a search warrant at his residence.
The three defendants arrested in Germany on April 23 and 24 and charged in the United States are a 23-year-old resident of Kleve, Germany; a 31-year-old resident of Wurzburg, Germany; and a 29-year-old resident of Stuttgart, Germany. The complaint charges the men with two felony counts – conspiracy to launder monetary instruments, and distribution and conspiracy to distribute controlled substances. These defendants also face charges in Germany.
The two cases filed in the United States are the result of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, the U.S. Postal Inspection Service, IRS Criminal Investigation, and Homeland Security Investigations.
“We are on the hunt for even the tiniest of breadcrumbs to identify criminals on the dark web,” said U.S. Attorney McGregor W. Scott for the Eastern District of California. “The prosecution of these defendants shows that even the smallest mistake will allow us to figure out a cybercriminal’s true identity. As with defendant Marcos Annibale, forum posts and pictures of him online from years ago allowed us to connect the dots between him and his online persona ‘Med3l1n.’ No matter where they live, we will investigative and prosecute criminals who create, maintain, and promote dark web marketplaces to sell illegal drugs and other contraband.”
“We continue to keep pace with sophisticated actors on the dark web by increasing our technical abilities and working even more closely with our international law enforcement partners,” said U.S. Attorney Nick Hanna. “While they lurk in the deepest corners of the internet, this case shows that we can hunt down these criminals wherever they hide.”
“Just as international law-enforcement partners began dismantling Wall Street Market and taking action against its members, as alleged in the complaint, the site’s administrators decided to steal their customers’ money via an exit scam,” said Assistant Attorney General Brian Benczkowski. “This operation sends a crystal-clear message: dark markets offer no safe haven. The arrest and prosecution of the criminals who allegedly ran this darknet marketplace is a great example of our partnership with law enforcement authorities in Europe, with the support of Europol, and demonstrates what we can do when we stand together.”
“Investigators from many countries overcame the national, legal and diplomatic challenges to hold accountable sophisticated actors who operated one of the largest known encrypted marketplaces in the shadowy environment of the Darknet,” said Assistant Director Paul Delacourt of the FBI’s Los Angeles Field Office. “This case is an example of successful global collaboration among law enforcement entities who share the many challenges of prosecuting transnational criminal activity conducted by individuals who operate anonymously across borders.”
The affidavit in support of the criminal complaint filed in Los Angeles outlines how the defendants operated a sophisticated online marketplace that offered encrypted communications between buyers and sellers, as well as an online forum to discuss vendors and the quality of their wares. The affidavit also describes an international investigation that was able to identify the three administrators of WSM, show how they previously operated another German-based darknet marketplace that shut down in 2016, and link them to computer servers in Germany and the Netherlands that were used to operate WSM and process virtual currency transactions.
The three defendants allegedly created WSM, maintained the website, and operated the marketplace to ensure that buyers could access vendor pages and that financial transactions were properly processed. The investigation outlined in the complaint affidavit linked the three defendants to WSM in a number of ways, including their access to the WSM computer infrastructure. One defendant, for example, used virtual private networks to access WSM computers, but when a VPN connection would fail, his IP was revealed and authorities were able to identify his specific location.
The three defendants charged in Los Angeles were arrested in Germany after the WSM administrators conducted an exit scam in the wake of WSM recently becoming regarded as the world’s pre-eminent dark web marketplace and gaining a significant influx of new vendors and users, according to the affidavit. On April 16, vendors realized they could not collect the virtual funds that had been placed in escrow by their customers, which prompted German authorities to execute a series of arrest and search warrants.
The complaint affidavit identifies several cases that have been filed in the United States against WSM vendors. One darknet vendor who advertised on WSM is currently serving a 12‑year federal prison sentence after being convicted in the Western District of Wisconsin for distributing a fentanyl analogue resulting in the overdose death of a Florida resident who ordered a nasal spray laced with the powerful opioid from the vendor.
Other defendants include Jose Robert Porras III, 21, and Pasia Vue, 23, both of Sacramento, who were charged with drug distribution, money laundering, and illegally possessing firearms, in a 16-count indictment returned by a grand jury in the Eastern District of California. According to the indictment, Porras and Vue were using the online monikers “Cannabars” and “TheFastPlug,” to distribute marijuana, Xanax, and methamphetamine on various dark web marketplaces, including Wall Street Market.
“The dark web marketplace, Wall Street Market, was one of the largest operating hosts for vendors peddling illegal wares,” said DEA San Francisco Special Agent in Charge Chris Nielsen. “Law enforcement is always adapting to changes in technology and this case sends a clear message to those breaking the law and attempting to hide behind the illusion of anonymity – we will identify and find you. The success of this case is due to the excellent cooperation between law enforcement agencies from around the globe who delivered another blow to criminal networks operating in the underground cyberspace.”
“Anyone who thinks the dark web is a safe place to conduct illegal commerce should know they are not anonymous,” said Inspector in Charge Michael Ray of the Postal Inspection Service. “They will be found and they will be brought to justice. The Postal Inspection Service has a highly trained, skilled and committed cyber unit that works tirelessly with other law enforcement agencies to disrupt marketplaces and stop vendors from using the U.S. mail to ship illegal goods and dangerous drugs.”
“Taking down this site is a huge win for past and future victims of crimes perpetrated due to the proliferation of illegal products and services being sold,” said Chief Don Fort of IRS Criminal Investigation. “We are committed to using our unique financial investigative abilities to tackle these kinds of threats head on to protect citizens, to promote cyber security and to inform the global community.”
“HSI and our partners are at the forefront of combating narcotics trafficking, financial crimes and illicit activities purveyed by online black markets,” said HSI Acting Executive Associate Director Alysa D. Erichs. “While criminal operators may continue to grow the reach of their businesses through these dark web marketplaces, ultimately they do not escape the reach of law enforcement. We continue to investigate, disrupt, and dismantle hidden illegal networks that pose a threat in cyberspace.”
The charges against the three WSM administrators were announced today in conjunction with authorities in Germany and the Netherlands.
The cases in the United States are being prosecuted by Assistant U.S. Attorney Grant Rabenn of the Eastern District of California, Assistant U.S. Attorneys Ryan White and Puneet Kakkar of the Central District of California, Justice Department Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section, and Justice Department Trial Attorney Joseph Wheatley of the Criminal Division’s Organized Crime and Gang Section.
The U.S. investigation was conducted with support and coordination provided by the Department of Justice’s multi-agency Special Operations Division.
The Justice Department thanks its law enforcement colleagues at the German Federal Criminal Police (the Bundeskriminalamt), the German Public Prosecutor’s Office in Frankfurt, the Dutch National Police (Politie), the Netherlands National Prosecutor’s Office, Federal Police of Brazil (Policia Federal), Europol and Eurojust. Significant assistance was provided by the Office of International Affairs at the Justice Department and the Organized Crime and Drug Enforcement Task Force program.
The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.