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14 June 2019
New York Man Sentenced to 20 Years in Prison for Attempting to Join ISIS in YemenRead the Press Release
Earlier today in federal court in Brooklyn, Mohamed Rafik Naji was sentenced to 20 years imprisonment to be followed by five years supervised release by United States District Judge Frederic Block for attempting to provide material support or resources to the Islamic State of Iraq and al-Sham (ISIS), a foreign terrorist organization. Naji pleaded guilty to the charge in February 2018.
Assistant Attorney General for National Security John C. Demers, 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 Commissioner James P. O’Neill of the New York City Police Department (NYPD) announced the sentence.
“Time and again, the United States has brought to justice those who have traveled from here to try and fight for ISIS,” said Assistant Attorney General Demers. “This is just what Naji did. Today’s sentence holds him accountable for his crime and I want to thank the agents, analysts, and prosecutors who are responsible for this result.”
“With today’s sentence, Naji has been held accountable for trying to enter a foreign war zone and join ISIS’ murderous cause,” said United States Attorney Donoghue. “This Office, together with the FBI, the NYPD and all the members of the FBI Joint Terrorism Task Force will take every step necessary to incapacitate terrorists like Naji and protect the American people. I commend the Task Force for its outstanding work in this case.”
“Extremists like Mr. Naji believe murdering innocent people advances their political agendas,” said FBI Assistant Director-in-Charge Sweeney. “In the end, Mr. Naji, like many others before him, find the only thing their actions lead to is a different vantage point from which to watch the world pass by – through the steel bars of a federal prison. Mr. Naji will remember today as sentencing day, nothing more. Working day in and day out with our partners on the FBI Joint Terrorism Task Force, safeguards have been put in place to secure Times Square and other popular attractions so any would be terrorist will find it extremely difficult to carry out their plans. Our unified goal is to remain proactive and prevent acts before they occur, and once again I would like to thank all of those who ensure our safety.”
“This case is a reminder that New York City remains the top target for terrorism in the U.S.,” said NYPD Commissioner O’Neill. “The NYPD and its partners in law enforcement will never relent in the fight against terror. I want to thank the dedicated members of the JTTF who worked on this investigation to keep our City safe and the prosecutors from the Eastern District of New York.”
By late 2014, Naji had become a committed supporter of ISIS’s murderous cause as he repeatedly promoted and distributed ISIS propaganda with violent themes and messages on social media. In March 2015, Naji traveled from New York to Yemen in an effort to join ISIS. Naji also used social media to advise another person he could travel to join ISIS, but unbeknownst to Naji, that individual was a confidential source of information for the government (the CS). In an online conversation with the CS, Naji proclaimed his allegiance to ISIS, stating, “I belong to Islamic state only.”
Following his return to the United States in September 2015, Naji continued to express his support for ISIS and violent jihad. In July 2016, following the ISIS-inspired terrorist truck attack in Nice, France, that killed scores of innocent civilians, Naji told the CS how easy it would be to carry out a similar attack in Times Square, explaining that ISIS “want[s] an operation in Times Square” and stating that an ISIS “reconnaissance group . . . put up scenes of Times Square.” Naji further explained, “if there is a truck, I mean a garbage truck and one drives it there to Times Square and crushes them . . . Times Square day.”
Naji has been incarcerated since his arrest in Brooklyn in November 2016.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorney Ian C. Richardson is in charge of the prosecution, with assistance from Trial Attorney Jacqueline L. Barkett of the National Security Division’s Counterterrorism Section.
New Salem Man Charged with Child Pornography OffensesRead the Press Release
BOSTON - A New Salem man was charged yesterday in federal court in Springfield with child pornography offenses.
Nicholas Conkey, 33, was charged with two counts of distribution of child pornography, two counts of receipt of child pornography, and one count of possession of child pornography.
At various times in 2018 and 2019, Conkey is alleged to have sent and received child pornography by email. On Jan. 18, 2019, he is alleged to have been in possession of child pornography depicting children younger than 12-years-old.
Possession of child pornography carries a sentence of no greater than 20 years in prison and the charges of distribution and receipt of child pornography carry a mandatory minimum sentence of five years and up to 20 years in prison. All three charges provide for a mandatory minimum sentence of five years and up to a lifetime of supervised release and a fine of up to $250,000 fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Office is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
New Orleans Man Pleads Guilty to Hancock Whitney Bank RobberyRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that JOHN L. MURRAY, age 66, pled guilty yesterday before United States District Judge Eldon E. Fallon to a one count indictment for bank robbery in violation of Title 18, United States Code, Section 2113(a).
According to court documents, MURRAY robbed the Hancock Whitney Bank located at 2421 St. Claude Avenue in New Orleans, Louisiana on February 13, 2019. MURRAY faces a sentence of up to twenty years, a $250,000.00 fine, and three years of supervised release after imprisonment. Sentencing is scheduled for September 19, 2019 at 2:00 p.m.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter. Assistant United States Attorney Julia K. Evans is in charge of the prosecution.
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New Jersey Broker Pleads Guilty in “Cherry-Picking” SchemeRead the Press Release
BOSTON – A former New Jersey securities broker pleaded guilty in federal court in Newark, N.J. today to charges of defrauding his clients by engaging in a multi-year “cherry-picking” scheme.
Michael Bressman, 61, of Montville, N.J., formerly of FCG Advisors and FCG Wealth Management in Chatham, N.J., pleaded guilty to securities fraud and investment advisor fraud. U.S. District Judge Esther Salas of the District of New Jersey scheduled sentencing for November 2019. On Sept. 11, 2018, Bressman was charged by indictment in the District of Massachusetts, and the case was transferred to the District of New Jersey on Nov. 8, 2018.
Bressman misused his access to an omnibus or “allocation” account to obtain at least $700,000 in illicit trading profits over a six-year period ending in February 2018. Bressman used the allocation account to place trades and cherry-picked profitable trades, which he then transferred to his own account and the account of family members, while placing unprofitable trades in other customers’ accounts.
The charge of securities fraud provides for a sentence of no greater than 20 years in prison, five years of supervised release and a fine of $5 million. The charge of investment advisor fraud provides for a sentence of no greater than five years in prison, two years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors. Pursuant to the plea agreement, the government recommended a sentenced of 24 to 40 months in prison.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. The SEC’s Market Abuse Unit in New York provided assistance with the investigation. Assistant U.S. Attorney Eric Rosen of Lelling’s Securities and Financial Fraud Unit and Assistant U.S. Attorney Courtney Howard of the District of New Jersey are prosecuting the case.
Nashville Heroin Distributor Sentenced to 30 Years in Federal PrisonRead the Press Release
NASHVILLE, Tenn. – June 14, 2019 – Brandon Bradford, 40, of North Chicago, Illinois, was sentenced yesterday in U.S. District Court to 30 years in prison for conspiring to distribute a kilogram or more of heroin, announced U.S. Attorney Don Cochran for the Middle District of Tennessee. Bradford was convicted by a federal jury in November 2018, following a four-day trial.
Bradford, along with Terrell Pierson, aka, Tank, 33, and Justin Joplin, aka, Fat Boy, 35, both from the Chicago area, and Krystin Pape, 33, of Nashville, were indicted in May 2016 and later pleaded guilty. Pierson and Joplin were previously sentenced to 10 years in federal prison and Pape will be sentenced next week.
“I commend our prosecution team and our law enforcement partners at the Metropolitan Nashville Police Department and the FBI for working to build a strong case and disrupt the supply of heroin coming to our community,” said U.S. Attorney Cochran. “This case is just one of many that these dedicated individuals undertake on a daily basis and I’m grateful for their commitment to do all they can to make Nashville and Middle Tennessee a safer place.”
The prosecution arose out of an investigation into heroin trafficking by the Metropolitan Nashville Police Department’s Gang Unit and the FBI in 2015, which identified Brandon Bradford as a heroin supplier who was obtaining large quantities of heroin from the Chicago, Illinois area. Bradford conspired with several others, including Pape, Pierson and Joplin, to obtain multiple kilograms of heroin from the Chicago area on a regular basis and to distribute that heroin in the Nashville area from around September of 2014 through April 20, 2016. Based on the evidence at trial, Bradford was conservatively responsible for more than 18 kilograms of heroin that were sold on the streets of Nashville.
The evidence at trial revealed that the amounts transported from the Chicago area for distribution in Nashville during the conspiracy ranged from approximately 50-100 grams and increased quickly to kilogram quantities as the conspiracy progressed. As the operation grew larger, Bradford directed Pierson and Joplin, his half-brother, to move from the Chicago area to Nashville to assist him in running the operation, along with Pape. Bradford and they shared a residence in the Bellevue area of Nashville where they frequently repackaged and prepared heroin for delivery to customers in Nashville. Bradford, as the leader of the operation, determined the pricing for the heroin and controlled the money.
Pape and Joplin were arrested when a search warrant was executed at the residence on Stacy Drive, on April 20, 2016, and Pierson was arrested shortly thereafter. Bradford was arrested 15 months later, in August 2017, at a hotel in New Albany, Indiana, after being actively sought by law enforcement. At the time of his arrest, Bradford was in possession of more than 300 grams of heroin.
“This sentencing is the culmination of a collective effort between federal and local law enforcement to combat heroin trafficking in our community," said Special Agent in Charge of the Memphis Division of the Federal Bureau of Investigation M. A. Myers. "We will continue to be relentless in our mission to disrupt and dismantle drug trafficking organizations and bring the criminals who run them to justice.”
“MNPD officers and our federal partners are so serious about interdicting heroin and holding traffickers accountable because people are dying,” Chief Steve Anderson said. “Nearly four times as many persons died in Nashville last year from drug overdoses than from the crime of murder. I am grateful for the relationship we share with the U.S. Attorney’s Office and other federal law enforcement agencies as we investigate cases like this.”
This case was prosecuted by Assistant U.S. Attorneys Phillip H. Wehby and Brooke K. Schiferle.
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Monroe County Man Was Sentenced to 11 Years in Prison for Role in Heroin and Cocaine Trafficking ConspiracyRead the Press Release
WILKES-BARRE - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Joseph Morales, age 27, of Tobyhanna, Pennsylvania, was sentenced on June 12, 2019, by Senior U.S. District Court Judge A. Richard Caputo to eleven years’ imprisonment and ten years on supervised release for his role in a Monroe County-based heroin and cocaine trafficking conspiracy.
According to United States Attorney David J. Freed, Morales previously pleaded guilty to conspiring with others to distribute between 700 grams and one kilogram of heroin (which is equivalent to 28,000 to 40,000 individual doses of heroin), as well as between 840 grams and 2.8 kilograms of crack cocaine, in the Monroe County area between May and July 2015. Morales was one of eleven individuals indicted by a grand jury in July 2015 and charged with conspiring to distribute heroin, powder cocaine and crack cocaine in the Monroe County area.
The case was investigated by the Drug Enforcement Administration (DEA) and the Pocono Mountain Regional Police Department. Assistant United States Attorney Robert J. O’Hara prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This prosecution is also part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
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Monroe County Man Pleads Guilty to Heroin and Cocaine TraffickingRead the Press Release
WILKES-BARRE - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Sherquille Ernest, age 26, of Mount Pocono, Pennsylvania, pleaded guilty on June 12, 2019, before U.S. District Court Senior Judge A. Richard Caputo to the charge of conspiracy to distribute heroin and crack cocaine.
According to United States Attorney David J. Freed, Morales admitted to participating in a conspiracy to distribute between 20 and 40 grams of heroin (which is equivalent to 800 to1,600 individual doses of heroin), as well as between 28 and 112 grams of crack cocaine, in the Monroe County area between May and July 2015. Ernest was one of eleven individuals indicted by a grand jury in July 2015, and charged with conspiring to distribute heroin, powder cocaine and crack cocaine in the Monroe County area.
Judge Caputo ordered a presentence report to be completed. Sentencing will be scheduled at a later date.
The investigation was conducted by the Drug Enforcement Administration (DEA) and the Pocono Mountain Regional Police Department. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The charge carries a mandatory minimum sentence of five years in prison. The maximum penalty under federal law is up to forty years in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Minnesota Attorney Sentenced to 168 Months in Prison for Multi-Million Dollar Pornography Film Copyright Fraud SchemeRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of PAUL R. HANSMEIER, 37, to 168 months in prison for orchestrating a multi-million dollar fraud scheme to obtain payments from extortion victims to settle sham copyright infringement lawsuits by lying to state and federal courts throughout the country. HANSMEIER, who pleaded guilty on August 17, 2018, was sentenced today before Judge Joan N. Ericksen in U.S. District Court in Minneapolis, Minnesota. HANSMEIER’S co-defendant JOHN L. STEELE also pleaded guilty to his role in the scheme. STEELE is scheduled to be sentenced on July 9, 2019.
United States Attorney Erica MacDonald said, “Paul Hansmeier abandoned his sworn oath to uphold the law and chose instead to use coercion and lies to exploit victims and deceive judges. The sentence he received today is a just consequence for his actions.”
“Today's sentence for Paul Hansmeier is the just result for an attorney who abused his license to practice law and disgraced himself and the bar in so many ways,” said Jill Sanborn, Special Agent in Charge of the FBI's Minneapolis Division. “Hansmeier’s role in this salacious fraud scheme exploited victims by misusing his position of trust as an officer of the court. The FBI is grateful for the victims who came forward in this case because their information was critical to our work.”
“Today justice has been served with the fourteen-year sentencing of Mr. Hansmeier,” stated Tara Sullivan, IRS Criminal Investigation Special Agent in Charge of the Chicago Field Office. “Mr. Hansmeier greatly misused his position as an attorney by preying upon unsuspecting individuals for nothing but pure power and greed. IRS Criminal Investigation is proud to have worked alongside with the U.S. Attorney’s Office and the FBI to dismantle this money laundering enterprise created by Hansmeier and his partner.”
According to his guilty plea and documents filed in court, between 2011 and 2014, HANSMEIER and STEELE, both practicing lawyers, executed a scheme to obtain millions of dollars by threatening copyright lawsuits against individuals who allegedly downloaded pornographic movies from file-sharing websites. HANSMEIER admitted in court during his plea that he and STEELE created a series of sham entities, which he and STEELE surreptitiously controlled, to obtain copyrights to pornographic movies – some of which they filmed themselves – and then uploaded those movies to file-sharing websites like “The Pirate Bay” in order to lure people to download the movies. The defendants then filed bogus copyright infringement lawsuits that concealed both their role in distributing the movies, and their personal stake in the outcome of the litigation. After filing the lawsuits, HANSMEIER and STEELE gained authority from the courts to subpoena internet service providers (“ISPs”) for identification information of the subscriber who controlled the IP address used to download the movie. With that information, the defendants used extortionate tactics such as letters and phone calls to threaten victims with enormous financial penalties and public embarrassment unless they agreed to pay a $3,000 settlement fee.
According to the Indictment, the plea agreement, and other court documents, in November 2011, in order to distance themselves from the specious lawsuits and any potential fallout, HANSMEIER and STEELE created and used Prenda Law, among other law firms, to pursue their fraudulent lawsuits. HANSMEIER acknowledged at his plea hearing that he and STEELE exerted de facto control over Prenda Law throughout the scheme, but recruited a now-deceased Illinois attorney to pretend to own and control the law firm.
In October 2012, the defendants changed their tactics and began filing lawsuits falsely alleging that computer systems belonging to their sham clients had been hacked. To facilitate their phony “hacking” lawsuits, HANSMEIER and STEELE recruited individuals who had been caught downloading pornography from a file-sharing website, to act as ruse “defendants.” These ruse defendants agreed to be sued and permit HANSMEIER and STEELE to conduct early discovery against their supposed “co-conspirators” in exchange for HANSMEIER and STEELE waiving their settlement fees. During his plea hearing, HANSMEIER admitted that the allegations of “hacking” in these complaints were made up.
In total, HANSMEIER and STEELE obtained approximately $3 million from the fraudulent copyright lawsuits.
This case is the result of an investigation conducted by the FBI and the Criminal Investigation Division of the IRS.
Assistant U.S. Attorneys Benjamin F. Langner and David J. MacLaughlin of the District of Minnesota, and Senior Trial Counsel Brian Levine of the Criminal Division’s Computer Crime and Intellectual Property Section, prosecuted the case.
Defendant Information:
PAUL R. HANSMEIER, 37
Woodbury, Minn.
Convicted:
- Conspiracy to commit mail fraud and wire fraud, 1 count
- Conspiracy to commit money laundering, 1 count
Sentenced:
- 168 months in prison
- Two years of supervised release
- Restitution in the amount of $1,541,527.37
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Mexican Citizen Pleads Guilty to Drug Conspiracy and Immigration ChargeRead 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 Giovani Ramirez-Soto, 27, a citizen of Mexico, pleaded guilty before Senior U.S. District Judge William M. Skretny to conspiracy to possession with intent to distribute, and to distribute, one kilogram or more of heroin. Soto also pled guilty to being a removed alien unlawfully found in United States. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that beginning sometime in 2018 and continuing until July 26, 2018, the defendant conspired with co-defendant Humberto Martinez-Vega to sell heroin.
On July 26, 2018, a New York State Police Trooper conducted a traffic stop of a red Honda Accord, with Alabama license plates, driving on Route 20A in the Town of Warsaw in Wyoming County. The trooper approached the vehicle, which was being driven by Martinez-Vega with Ramirez-Soto as a passenger. Martinez-Vega gave the trooper an expired Georgia identification card, and told the trooper he was looking for work.
Martinez-Vega gave the trooper consent to search the vehicle. A NYSP K9 Trooper was brought to the scene. The K9 alerted to several areas of the vehicle and a subsequent search recovered 1,200 grams of suspected heroin, and approximately 421 grams of suspected methamphetamine hidden behind the front dashboard of the vehicle.
Further investigation determined that the defendants were illegally present in the United States.
Charges remain pending against Humberto Martinez-Vega. 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.
The plea is the result of an investigation by the New York State Police, under the direction of Major Edward Kennedy, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
Sentencing is scheduled for September 25, 2019, at 11:00 a.m. before Judge Skretny.
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Member of Maryland MS-13 Extortion Operation in DC Suburbs Is Convicted After Federal TrialRead the Press Release
Greenbelt, Maryland –A federal jury has convicted Gerdandino Delgado-Escobar, a/k/a “Pumba,” age 24, of Hyattsville, a member of La Mara Salvatrucha, or MS-13, of conspiracy to interfere with interstate commerce by extortion. The verdict was returned late on June 13, 2019.
The guilty verdict was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Assistant Director in Charge John P. Selleck of the FBI Washington Field Office; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore Field Office; Special Agent in Charge Jesse R. Fong of the U.S. Drug Enforcement Administration (DEA) Washington Field Division; Acting Chief Marcus Jones of the Montgomery County Police Department; Chief Henry P. Stawinski III of the Prince George’s County Police Department; Chief Amal Awad of the City of Hyattsville Police Department; Prince George’s County State’s Attorney Aisha Braveboy; and Montgomery County State’s Attorney John McCarthy.
“We will not tolerate the fear and violence perpetrated by MS-13 in Maryland,” said U.S. Attorney Robert K. Hur. “This prosecution sends a strong message to MS-13 gang members that federal, state, and local law enforcement will continue to work together to find and bring to justice MS-13 members who prey on our neighborhoods.”
MS-13 is a violent gang composed primarily of immigrants or descendants of immigrants from El Salvador, with members operating in the State of Maryland, including Montgomery County, Prince George’s County, Anne Arundel County, and Frederick County, and throughout the United States. Branches or “cliques” of MS-13 often work together cooperatively as “Programs,” with the purpose of increasing the gang’s levels of organization, violence, extortion, and other criminal activity, and to assist one another in avoiding detection by law enforcement.
According to trial evidence, in the Washington, DC metropolitan area, MS-13 generated income from various sources, including the extortion of money from businesses. Targeted businesses included drug dealers, brothels, unlicensed “stores” where food, alcoholic beverages, and cigarettes were sold, as well as legitimate businesses, including food and beverage sellers and distributors.
The evidence presented at the four-day trial proved that Delgado-Escobar was a member and associate of the Langley Park Salvatrucha (“LPS”) clique of MS-13. From at least March 2013, Delgado-Escobar, working with other MS-13 members and associates, extracted weekly extortion payments known as “rent” from victim business owners for operating in territory controlled by the LPS and Sailors cliques of MS-13. According to trial testimony, the payments were generally about $40 to $50 per week for beer delivery businesses and around $115 per week for brothel owners.
As proven during the trial, Delgado-Escobar and his co-conspirators extorted numerous business owners operating in the Langley Park area. Delgado-Escobar conspired with other MS-13 members and associates to obtain money from the victims through the use of actual and threatened force, violence, and fear. According to the trial evidence, in one instance a victim who delivered beer was grabbed by the neck, had a gun put to his head and was threatened with the murder of his entire family if the victim did not pay MS-13 for operating a business in its territory. MS-13 members referred to these extortion payments as “rent.”
Delgado-Escobar remains detained pending his sentencing, which has not yet been scheduled.
U.S. Attorney Robert K. Hur thanked the FBI Washington and Baltimore Field Offices, HSI Baltimore, the DEA Washington Field Office, the Prince George’s County Police Department, the Montgomery County Police Department, the Prince George’s County State’s Attorney’s Office, the City of Hyattsville Police Department, and the Montgomery County State’s Attorney’s Office for their work in this investigation. Mr. Hur commended Assistant U.S. Attorneys William D. Moomau and Catherine K. Dick, who are prosecuting this case.
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Media Advisory – Peninsula Violent Crime SummitRead the Press Release
WHAT: Federal, state, and local law enforcement and community partners will hold the Peninsula Violent Crime Summit on Monday, June 17, at NASA’s Langley Research Center in Hampton.
WHERE: NASA Langley Research Center, 2 Langley Blvd, Hampton, VA
WHEN: Arrive at NASA June 17 at 3:45 p.m.
DETAILS: Members of the media are invited to attend the final wrap-up of the event from approximately 4:00 p.m. to 4:30 p.m. Photography and B-Roll videography will be permitted inside of the event hall only.
Following the wrap-up, co-hosts of the summit will hold a press conference and take questions. After the press conference, select law enforcement officials will be available for one-on-one interviews. Community partners may also be available for one-on-one interviews.
RSVP: Please RSVP by Noon on June 17 to Joshua Stueve at: [email protected]. If you do not RSVP, you will NOT be permitted to enter the facility. No exceptions.
CO-HOSTS: U.S. Attorney G. Zachary Terwilliger; Chief Terry Sult, Hampton Police Division; Chief Steve Drew, Newport News Police; Commonwealth’s Attorney Howard Gwynn, Newport News Commonwealth’s Attorney’s Office; Deputy Commonwealth’s Attorney Sheree Konstantinou, Hampton Commonwealth’s Attorney’s Office.
LAW ENFORCEMENT PARTNERS: Federal Bureau of Investigation (FBI); Drug Enforcement Administration (DEA); Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF); U.S. Postal Inspection Service; U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Gloucester Sheriff’s Office; Virginia State Police; James City County Police; York-Poquoson Sheriff's Office; York County Commonwealth’s Attorney’s Office.
COMMUNITY PARTNERS: Newport News City Council; Ministers to the Queens Plaza Community; Newport News Youth Gang Outreach Unit; CBC World Ministry; Newport News Police Homicide Support Group; Catalyst Effect; Phantom Eagle Engineering; Newport News Citizens United for Action; Hawkins, Burcher & Boester; others.
Media AdvisoryRead the Press Release
CEDAR RAPIDS, IA – On June 17, 2019, five men will be sentenced in federal district court in Cedar Rapids, Iowa, following their convictions for drug, robbery, and gun crimes related to the fatal shooting of an individual in Coggon, Iowa, in February 2017. On June 18, 2019, at 11:00 a.m. the United States Attorney’s Office and the Linn County Sheriff’s Office will hold a press conference at the United States Attorney’s Office in the federal courthouse, 111 Seventh Avenue SE, in Cedar Rapids to announce the results of those sentencing hearings.
Additionally, United States Attorney Peter E. Deegan, Jr. will announce recent Project Safe Neighborhood gun charges in Eastern Iowa at the press conference. Representatives from federal and local law enforcement will be present.
Event Details
When: June 18, 2019
Where: Cedar Rapids Federal Courthouse (United States Attorney’s Office), 111 Seventh Avenue SE
Time: 11:00 a.m.
A press release will be provided and interview opportunities will be available.
Please RSVP to Tony Morfitt at [email protected] if you plan to attend.
Follow us on Twitter @USAO_NDIA.
Massachusetts Man Pleads Guilty to Fentanyl TraffickingRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Cameron Soto, 26, of Fairhaven, Massachusetts, pleaded guilty yesterday in U.S. District Court to distribution of fentanyl.
According to court records, on March 14, 2017, the defendant distributed fentanyl to a resident of St. George, Maine who died as a result. The following day, the defendant distributed fentanyl to a person working with law enforcement.
As a result of the plea, the defendant faces between 16 and 24 years in prison, a $2,000,000 fine and six years to life on supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
This case was investigated by the Maine Drug Enforcement Agency, the Knox County Sheriff’s Office and Rockland Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Massachusetts Chiropractor Pleads Guilty to Tax EvasionRead the Press Release
The owner of a chiropractic business pleaded guilty today to tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to an indictment filed in June 2018, Richard Rogers, a Northborough, Massachusetts, chiropractor, operated his practice from his residence. Rogers was charged with evading his taxes from 2012 through 2016 by concealing his income from the Internal Revenue Service (IRS) through a variety of methods. Rogers encouraged his clients to pay in cash, used a nominee bank account to negotiate check payments when he was not paid in cash, paid creditors using postal money orders, and used credit card accounts opened with a fictitious social security number. Rogers also concealed the ownership of his residence by titling the property in the name of a trust. Rogers did not file federal tax returns from at least 2008 through 2016, despite his obligation to do so.
United States District Judge Timothy S. Hillman scheduled sentencing for Sept. 10, 2019. Rogers faces a maximum sentence of five years in prison, three years of supervised release, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant Chief John N. Kane and Trial Attorney Carl F. Brooker of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Maryland Man Sentenced to Five Years for Role in Large-Scale Narcotics ConspiracyRead the Press Release
WASHINGTON – Lonnell Tucker, 42, of Temple Hills, Md., was sentenced today to five years in prison stemming from his role in a large-scale narcotics conspiracy, announced U.S. Attorney Jessie K. Liu, Ashan M. Benedict, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Tucker, Anthony Fields, 45, of Washington, D.C., and Abdul Samuels, 45, of Washington, D.C., were found guilty on March 21, 2019, following a trial in the U.S. District Court for the District of Columbia before the Honorable Amit P. Mehta. Tucker was convicted of conspiracy to distribute and possess with intent to distribute heroin from on or about June 1, 2017 through February 1, 2018. Judge Mehta sentenced Tucker to a prison term of five years. Following his prison term, Tucker will be placed on 36 months of supervised release.
In June 2017, ATF began investigating the trafficking of narcotics from the Next Level Cuts barbershop located in the 2400 block of MLK, Jr., Avenue, SE and adjoining property above. Law enforcement discovered a coordinated drug trafficking operation that was centered at the barbershop and extended into Maryland through surveillance, controlled purchases from inside and outside the barbershop, residential search warrants, cellphone searches, arrests, jailhouse calls, pleas, and cooperating witnesses. The investigation established that drug traffickers used the barbershop and adjoining property as a stash location.
The investigation led to a series of arrests beginning in February 2018. These arrests led to the recovery of three firearms from the barbershop, one firearm in a residence, the seizure of more than $7,000 in cash, and without packaging, the seizure of more than 300 grams of PCP, more than 150 grams of heroin, more than 100 grams of fentanyl, boxes of suboxone strips, and more than 100 grams of a cutting agents.
During the trial, officers and agents of the Prince George’s County Police Department, Metropolitan Washington Airports Authority, and the Maryland Office of the State Prosecutor, testified regarding separate arrests of coconspirators during the course of ATF’s investigation, which resulted in the seizure of narcotics, drug paraphernalia, and U.S. currency.
Tucker was previously prosecuted in the D.C. Superior Court and convicted of drug trafficking felony offenses on three separate occasions. In 2010, he was convicted of two counts of distributing PCP. In 1999 and 2000, he was convicted of possessing crack cocaine with an intent to distribute.
On June 13, 2019, Fields was sentenced to 16 years of incarceration to be followed by eight years of supervised release. Samuels has not yet been sentenced for his role in the drug trafficking conspiracy. Three other defendants – Darryl Smith, 41, of Washington, D.C., James Venable, 47, of Fort Washington, Md., and Lacy Hamilton, 42, of Suitland, Md. – pled guilty earlier to federal charges. Another defendant remains at large as a fugitive. Smith managed the barbershop and was sentenced to 80 months in prison relating to his possession of narcotics in the barbershop on February 1, 2018, and for his possession of packaged fentanyl and a loaded firearm following an arrest by MPD in December 2017 outside of the barbershop. Venable, another conspirator, was sentenced to a 37-month prison term following his possession of narcotics and a firearm in both Washington, D.C. during a December 2017 arrest by MPD and at his residence in Maryland on February 1, 2018. Venable also acknowledged selling narcotics to an ATF confidential informant in July 2017. Hamilton was sentenced to a 15-month prison term for selling narcotics outside the barbershop and in Maryland as part of the charged narcotics conspiracy.
In announcing the sentence, U.S. Attorney Liu, Special Agent in Charge Benedict, and Chief Newsham commended the assistance provided by officers and agents of the Prince George’s County Police Department, Metropolitan Washington Airports Authority, and the Maryland Office of the State Prosecutor. They also acknowledged the efforts of those who handled the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Christopher Macchiaroli and Gregory Rosen of the Violent Crime and Narcotics Trafficking Section, and Paralegal Specialist Candace Battle.
Man from Fruitland, N.m., Pleads Guilty to Assault Resulting in Serious Bodily Injury in Indian CountryRead the Press Release
ALBUQUERQUE – Harry Jim, Jr., 36, of Fruitland, N.M., pleaded guilty in federal court yesterday to assault resulting in serious bodily injury in Indian Country.
In Jim’s plea agreement, he admitted driving while intoxicated and causing a vehicle collision within the Navajo Nation. The victim of the collision suffered a broken finger and leg.
Jim is currently in custody/out of custody awaiting sentencing. He faces up to 10 years in prison.
The Farmington office of the FBI investigated this case. Assistant U.S. Attorney Joseph M. Spindle is prosecuting the case.
Man from Chimayo, N.m., Pleads Guilty to Assault Resulting in Serious Bodily Injury in Indian CountryRead the Press Release
ALBUQUERQUE – Ricky Martinez, 27, of Chimayo, N.M., pleaded guilty in federal court on June 13, 2019, to assault resulting in serious bodily injury in Indian Country.
In Martinez’s plea agreement, he admitted committing this offense in Rio Arriba County on September 2, 2017. Martinez assaulted the victim by stabbing him with a knife in the face, neck, chest, and back causing extreme pain. The assault happened within the boundaries of Ohkay Owingeh Pueblo. The victim is an Indian. Martinez is not an Indian.
Martinez is currently in custody awaiting sentencing. He faces 41 to 51 months in prison.
The Santa Fe office of the FBI investigated this case with the Ohkay Owingeh Police Department. Assistant U.S. Attorney Allison C. Jaros is prosecuting the case.
Lexington Man and Semiconductor Company Indicted for Theft of Trade SecretsRead the Press Release
BOSTON – A Chinese born naturalized U.S. citizen living in Lexington, and a company he and his wife established, were charged in federal court in Boston in connection with stealing proprietary information from his former employer, Analog Devices, Inc. (ADI), a semiconductor company headquartered in Norwood. Yu is also charged with allegedly selling and illegally exporting integrated circuits that incorporated ADI’s stolen trade secrets.
Haoyang Yu, a/k/a “Jack Yu,” a/k/a “Harry Yu,” a/k/a “Jack Tricon,” 40, of Lexington, was arrested and charged along with his company, Tricon MMIC LLC, in an indictment unsealed today. Yu was indicted on four counts of theft of trade secrets; four counts of copying, uploading, downloading, and attempted copying, uploading, and downloading of a trade secret; four counts of possession and attempted possession of a trade secret; and three counts of smuggling. Tricon MMIC LLC was also indicted on three counts of smuggling. Yu will appear this afternoon in federal court in Boston.
“Theft of trade secrets from American companies is a pervasive economic and national security threat, which makes Massachusetts, a worldwide leader in technological research and innovation, a target,” said United States Attorney Andrew E. Lelling. “Yu is charged with a massive theft of proprietary trade secret information from his former employer for the purpose of setting up his own company and marketing their products as his own. Today’s charge should make it clear that combating the theft of trade secrets from American businesses is one of my office’s top priorities.”
“Today’s actions are the result of the seamless coordination and collaborative counter proliferation efforts by the Office of Export Enforcement, the Justice Department, Homeland Security Investigations, NCIS and the FBI,” said Acting Special Agent in Charge William Higgins of the Office of Export Enforcement. “The Boston Field Office, Office of Export Enforcement will continue to work with all its Law Enforcement partners to stem illicit trade that threatens U.S. national security and undermines U.S. foreign policy. We will continue to vigorously pursue violators wherever they may be.”
“Violations of U.S. export laws like the ones charged in this case are serious offenses that undermine national security through the illegal export of sensitive U.S. technology and compromise the economic viability of American companies,” said Peter C. Fitzhugh, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE), Homeland Security Investigations, Boston. “Today’s enforcement actions could not have occurred without the coordinated efforts of a very dedicated team of law enforcement partners that included members of HSI’s Counter-Proliferation Investigations Center, the agency’s specialized unit dedicated to preventing the illegal export of U.S. technology and protecting American businesses by combating transnational criminal networks and violators of our export laws.”
“As alleged, Mr. Yu stole trade secrets from his employer for his own financial gain,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “We are deeply concerned about American innovation ending up in the wrong hands, and the FBI is committed to investigating rogue actors and foreign nations who steal our trade secrets, technology, and proprietary information for military or economic gain. While we all welcome fair competition, we cannot and will not tolerate stealing and cheating. It’s illegal, unethical, and unfair, and this type of conduct hurts American businesses, jobs, and consumers, and in many instances, jeopardizes our national security.”
NCIS Northeast Field Office Special Agent in Charge Leo S. Lamont stated: “NCIS works closely with our partners in the FBI, HSI, and Department of Commerce to aggressively combat the theft of trade secrets and the illegal export of sensitive defense technologies. These crimes not only weaken our national security but also jeopardize the safety of our brave men and women in uniform.”
According to the charging document, Yu was born in Harbin, China, and first came to the United States in 2002 through the student visa program. He became a lawful permanent resident in June 2009, and a naturalized U.S. citizen in March 2017. In July 2014, Yu started working at ADI as a principal design engineer.
As alleged in the indictment, Yu worked for ADI designing and developing parts of monolithic microwave integrated circuits (MMICs), which are used in radio, cellular, and satellite communications as well as defense and aerospace applications. As a result of his work, Yu had access to data and information relating to the present and future product designs, schematics, manufacturing files and testing procedures. It is alleged that, while working for ADI, Yu downloaded hundreds of highly confidential schematic design files and modeling files that belonged to ADI, and copied portions of those files into spreadsheets which he uploaded to his personal Google drive account. The files Yu allegedly stole from ADI were worth millions of dollars.
In March 2017, approximately five months before he resigned from ADI, Yu and his wife established Tricon MMIC LLC, which according to its website, “specializes in wide band MMIC amplifiers,” and serves customers in “defense and aerospace, test and instrumentation, [and] satellite communications.”
On July 31, 2017, Yu resigned from ADI and signed an agreement affirming that he had surrendered all proprietary information or data. Nevertheless, in December 2018, Yu allegedly had propriety ADI files in his possession. Furthermore, since creating Tricon in March 2017, Yu marketed and sold approximately 20 ADI designs as his own, and even used the same semiconductor fabrication plant as ADI. Yu used the Tricon website to target ADI customers, claiming that Tricon could better serve customers because ADI “has hit many customers by sudden announcements of obsolete parts.” For each purported obsolete part, Tricon listed a replacement part on its website. These replacement parts contained specifications identical to or substantially similar to ADI.
It is alleged that since leaving ADI, from August 2017 to June 2019, Yu has been working at a cleared defense contractor while simultaneously operating Tricon and selling parts that are identical to, or substantially similar, to ADI products and which incorporate ADI’s stolen trade secrets. Yu has also allegedly used Tricon to illegally export several parts to Spain by concealing both his name and the export control classification number of the parts being exported on the shipping documents.
ADI, the named victim of the Yu’s theft of trade secrets, has been cooperating with the government throughout this investigation.
The charge of stealing, copying, downloading, and possessing a trade secret provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. The charge of smuggling goods from the United States provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Lelling; Acting DOC – Office of Export Enforcement SAC Higgins; HSI Boston SAC Fitzhugh; FBI Boston SAC Bonavolonta; and NCIS SAC Lamont made the announcement today. The following agencies also assisted in this investigation: Customs and Border Protection; Coast Guard Investigative Service; Defense Criminal Investigative Service; Massachusetts State Police; Lexington Police Department; and Hingham Police Department. Assistant U.S. Attorney B. Stephanie Siegmann, Chief of Lelling’s National Security Unit, and Assistant U.S. Attorney George Varghese, of Lelling’s National Security Unit, are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
UPDATE: In April 2022, Haoyang Yu was acquitted by a federal jury of 18 counts of the charges alleged in the indictment. He was convicted of one count of possessing a stolen trade secret.
Law Enforcement Effort Will Coordinate Action Against Foreign Fraud Schemes that Target American SeniorsRead the Press Release
Attorney General William P. Barr today announced the establishment of the Transnational Elder Fraud Strike Force, a joint law enforcement effort that brings together the resources and expertise of the Department of Justice’s Consumer Protection Branch, the U.S. Attorneys’ Offices for six federal districts, the FBI, the U.S. Postal Inspection Service, and other organizations. The Strike Force will focus on investigating and prosecuting individuals and entities associated with foreign-based fraud schemes that disproportionately affect American seniors. These include telemarketing, mass-mailing, and tech-support fraud schemes.
The Transnational Elder Fraud Strike Force will be comprised of prosecutors and data analysts from the Consumer Protection Branch, prosecutors with six U.S. Attorneys’ Offices (Central District of California, Middle and Southern Districts of Florida, Northern District of Georgia, Eastern District of New York, Southern District of Texas), FBI special agents, Postal Inspectors, and numerous other law enforcement personnel. The Strike Force will also collaborate with the Federal Trade Commission and industry partners, who have pledged to engage with the Department to help end the scourge of elder fraud. It will further benefit from the help of the Elder Justice Coordinators now assigned in every U.S. Attorney’s Office.
“Fraud against the elderly is on the rise,” said Attorney General Barr. “One of the most significant and pernicious causes for this increase is foreign-based fraud schemes. The new Transnational Elder Fraud Strike Force will bring together the expertise and resources of our prosecutors, federal and international law enforcement partners, and other government agencies to better target, investigate, and prosecute criminals abroad who prey on our elderly at home. The Department of Justice is committed to ending the victimization of elders across the country.”
“It doesn’t matter where these criminals live. We’re committed to keeping our elderly citizens safe, whether they’re being targeted door-to-door, over the phone, or online, from thousands of miles away,” said Director Christopher Wray of the FBI. “Our new Transnational Elder Fraud Strike Force will give us additional resources and tools to identify and stop those who are targeting our senior communities from overseas. If you think you may be a victim of elder fraud, or you know someone who is, please let us know. We want to help.”
“Protecting older Americans and educating them and their caregivers about foreign lotteries and sweepstakes has been a long-time priority of the Postal Inspection Service,” said Chief Postal Inspector Gary Barksdale. “Our consumer awareness programs, coupled with our investigative efforts, have prevented countless older Americans from fraud and financial exploitation. But there’s so much more than can be done. By joining our partner agencies in this Strike Force, we become more effective at identifying and stopping those who prey on our vulnerable citizens.”
Using analytical tools and sophisticated investigative approaches, the Strike Force will seek to identify those responsible for foreign fraud schemes affecting American seniors, as well as those individuals and entities facilitating such schemes. The Strike Force will coordinate closely with foreign law enforcement, and will use all available criminal and civil tools to stop victims from losing money and to hold wrongdoers responsible.
The Attorney General announced creation of the Strike Force as part of a week of events recognizing World Elder Abuse Awareness Day on June 15, which is dedicated to raising awareness about the millions of older adults who experience elder abuse, neglect, and financial exploitation.
The establishment of the Transnational Elder Fraud Strike Force builds on the Trump Administration’s commitment to combating elder fraud. That commitment was reflected in the Department’s historic 2018 and 2019 Elder Fraud Sweeps—which collectively brought criminal and civil actions against more than 500 defendants responsible for defrauding more than $1.5 billion from at least 3 million victims —as well as the 2018 Rural and Tribal Elder Justice Summit.
More information about the Department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at https://www.ovc.gov.
Lancaster Man Sentenced to Federal Prison on Federal Firearm ChargeRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated that Quavis Jamar Rudisell, age 30, of Lancaster, was sentenced to a total of 41 months imprisonment today in federal court after earlier pleading to being a felon in possession of a firearm and ammunition.
Evidence presented in court established that on the early morning hours of September 6, 2018, deputies with the Lancaster County Sheriff’s Department responded to a residence on Providence Road after receiving a 911 call in regard to a theft of money. The residence advised that Rudisell had been a guest in the home, stolen approximately $1,300, and fled on a silver moped. Officers with the Lancaster Police Department located Rudisell on the moped and attempted to conduct a traffic stop. Rudisell jumped off the moped and fled into nearby woods where he was later captured. Officers located the stolen money on Rudisell, along with a magazine loaded with rounds of 9mm ammunition. Rudisell admitted to throwing the firearm down. Officers did a search of the area and recovered a 9mm handgun with a large capacity magazine loaded with 19 rounds of ammunition.
Rudisell is prohibited under federal law from possessing firearms and ammunition based upon a prior state conviction for breach of trust with fraudulent intent more than $2,000 but less than $10,000 (2016) and a prior federal conviction for conspiracy to possess with intent to distribute 5 kilograms or more of cocaine and 50 grams or more of crack cocaine (2011). Rudisell had been released from federal prison and was on federal supervised release at the time of the instant offense.
Senior United States District Judge Joseph F. Anderson, Jr. sentenced Rudisell to a total of 41 months imprisonment. That sentence was comprised of 37 months imprisonment on the felon in possession of a firearm and ammunition charge and a consecutive 4 months imprisonment for violating the earlier term of federal supervised release. Following the term of imprisonment, Rudisell will be on supervision for 3 years.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Lancaster County Sheriff’s Office, and the Lancaster Police Department. This case was prosecuted as part of the joint federal, state, and local initiative, Project Safe Neighborhoods, which aggressively prosecutes firearm cases. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
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Kyle Man Sentenced to 20 Years for Second Degree MurderRead the Press Release
United States Attorney Ron Parsons announced that a Kyle, South Dakota, man convicted of Second Degree Murder following a jury trial in June 2017 was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Marlin Iron Crow, age 46, was sentenced on June 13, 2019, to 20 years in federal prison, followed by 3 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
The conviction stemmed from Iron Crow killing a man in November 2016 at Porcupine, by punching and kicking him in the head during an argument.
This case was investigated by the Federal Bureau of Investigation and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Megan J. Poppen prosecuted the case.
Iron Crow was immediately turned over to the custody of the U.S. Marshals Service.
Individual Indicted and Arrested for Conspiracy Against the United States to Provide KickbacksRead the Press Release
SAN JUAN, Puerto Rico– On June 11, 2019, Leonardo Lebrón-Torres, president of Dynamic Solar Solutions, Inc., a corporation organized under the laws of Puerto Rico, was indicted for conspiracy against the United States to provide kickbacks, and six substantive charges for providing kickbacks, announced U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico.
The agencies in charge of the investigation of the case are: Naval Criminal Investigative Service; US Department of Agriculture – Office of Inspector General; General Services Administration – Office of Inspector General; U.S. Department of Veterans Affairs - Office of Inspector General; Coast Guard Criminal Investigative Service; and the Federal Bureau of Investigation.
According to the indictment, defendant Lebrón-Torres, and two individuals identified as B.P. and J.P., and others known and unknown to the grand jury, conspired to commit offenses against the United States, specifically, by the president of Dynamic Solar Solutions, Inc., a company holding subcontracts associated with a prime contract with the United States, knowingly and willfully provided kickbacks, that is, money and compensation of any kind to J.P. for B.P., which were provided for the purpose of improperly obtaining and rewarding favorable treatment in connection with four subcontracts associated with the United States of America.
B.P. was a Senior Project Manager for a private company known in the Indictment as “Prime Contractor.” This company subcontracted Dynamic Solar Solutions, Inc. It was B.P. who negotiated subcontract agreements between his company and the various subcontractors, including Dynamic Solar Solutions Inc., for the Energy Savings Performance Contracts that federal agencies awarded to B.P.’s company.
Defendant Lebrón-Torres knew that he was not permitted to offer gratuities or kickbacks in connection with Energy Savings Performance Contracts in order to obtain favorable treatment with respect to contracts awarded by various government agencies to B.P.. In furtherance of the conspiracy, the defendant paid B.P. and J.P. in several checks totaling approximately $422,080. The defendant is facing a maximum term of imprisonment of 10 years.
The charges contained in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
Illegal Alien Felon Previously Removed Three Times Sentenced for Again Unlawfully Reentering the United StatesRead the Press Release
Jackson, Miss. – Valentin Camacho-Alvarez, 27, an illegal alien from Mexico, was sentenced yesterday by United States District Judge Henry T. Wingate to 16 months in federal prison, followed by three years of supervised release, for illegally reentering the United States after being convicted of a felony and deported, announced U.S. Attorney Mike Hurst and Scott Sutterfield, Acting Field Office Director of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO) in New Orleans. The defendant pled guilty before Judge Wingate on March 13, 2019. In sentencing to the defendant to serve 16 months, the Court accepted the recommendation of the United States that the defendant be sentenced to the maximum sentence under the applicable guidelines.
On July 24, 2018, an officer with the U.S. National Park Service conducted a traffic stop on the Natchez Trace Parkway in Ridgeland. The passenger, Camacho-Alvarez, provided the officer with a Mexican voter registration card for identification purposes. He was also in possession of a Mexican driver’s license, which he admitted belonged to him. He advised the officer that he was born in Mexico and his parents are citizens of Mexico. ICE agents were requested to the scene for further assistance. Camacho-Alvarez admitted he is a citizen of Mexico and that he was illegally present in the United States. He also admitted to having previously been deported from the United States. He claims he has been living in Fredericksburg, Texas, for the last three years.
Camacho-Alvarez was convicted of driving while intoxicated with a child passenger, in February 2012, and removed from the United States the following month. He was then convicted of illegally re-entering the United States in June 2013, in Texas federal court. He has been deported from the United States on three prior occasions, in May 2009, March 2012, and October 2013.
The case was investigated by the Department of Homeland Security, Immigration & Customs Enforcement, Enforcement Removal Operations. It was prosecuted by Assistant United States Attorney Kimberly T. Purdie.
IBM Agrees to Pay $14.8 Million to Settle False Claims Act Allegations Related to Maryland Health Benefit ExchangeRead the Press Release
International Business Machines Corporation (IBM) and Cúram Software have agreed to pay $14.8 million to settle alleged violations of the False Claims Act arising from material misrepresentations to the State of Maryland during the Maryland Health Benefit Exchange (MHBE) contract award process for the development of Maryland’s Health Insurance Exchange (HIX) website and IT platform, the Department of Justice announced today.
“Making misleading statements to win contract awards violates fundamental tenets of government contracting and harms the government and taxpayers,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “The Department is committed to protecting the American taxpayer from false claims and preserving the integrity of federal funding decisions.”
“When companies misrepresent their products and capabilities in order to win government contracts, they enrich themselves at taxpayers’ expense,” said U.S. Attorney Robert K. Hur. “Today’s resolution demonstrates our continuing commitment to hold companies accountable for their actions.”
“Companies are expected to be candid about products, skills and abilities during contract negotiations,” said Maureen R. Dixon, Special Agent in Charge, for the Department of Health and Human Services, Office of the Inspector General. “We will continue to work with the U.S. Department of Justice to ensure taxpayer dollars are only spent for honest, high-quality health care products and services.”
On Dec. 19, 2011, IBM completed its acquisition of Cúram Software Ltd (Cúram). That same day, a proposal was submitted to the State of Maryland to support the HIX, which was drafted in part by Cúram and included Cúram as a subcontractor for software and services. On Jan. 5, 2012, as part of the bid evaluation process and with IBM’s knowledge, Cúram participated in a presentation to the State of Maryland that illustrated Cúram software conducting eligibility determinations for health assistance coverage, calculating applicable tax credits, addressing changes in life events (e.g. changes in income), and illustrating the integration of Cúram’s software with another subcontractor’s health plan shopping software. On Feb. 22, 2012, the State, acting through MHBE, awarded the contract for development of Maryland’s HIX website and IT platform. Cúram-IBM served as a subcontractor on the project. Federal grants from the U.S. Department of Health and Human Services partially funded MHBE’s contract for the Maryland HIX.
The settlement covers the time period from Jan. 1, 2011, through May 31, 2014, and resolves allegations against Cúram-IBM regarding material misrepresentations made to the State of Maryland during the HIX contract procurement process, including misrepresentations regarding the development status of the Cúram for Health Care Reform software; the existing functionality of the Cúram software to meet the State’s technical requirements, such as addressing life events and calculating tax credits under the Patient Protection and Affordable Care Act; and the integration of Cúram software with other software needed to provide a properly functioning HIX website. After repeated problems following the launch of the HIX website in October 2013, Maryland, acting through MHBE, terminated the contract and replaced the HIX website and IT platform, including the Cúram software.
The investigation and settlement in this matter were the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of Maryland, the Department of Health and Human Services Office of Inspector General, and the Office of the Attorney General of Maryland. The claims resolved by this settlement are allegations only and there has been no determination of liability.
IBM Agrees to Pay $14.8 Million to Settle Federal False Claims Act Allegations Relating to Maryland Health Benefit ExchangeRead the Press Release
Baltimore, Maryland – International Business Machines Corporation (IBM) and Cúram Software have agreed to pay $14.8 million to settle allegations under the federal False Claims Act that they made material misrepresentations to the State of Maryland during the Maryland Health Benefit Exchange contract award process for the development of Maryland’s Health Insurance Exchange (HIX) website and IT platform.
The settlement agreement was announced today by United States Attorney for the District of Maryland Robert K. Hur; Assistant Attorney General Jody Hunt of the Justice Department’s Civil Division; and Special Agent in Charge Maureen R. Dixon of the Office of Inspector General for the Department of Health and Human Services.
“When companies misrepresent their products and capabilities in order to win government contracts, they enrich themselves at taxpayers’ expense,” said U.S. Attorney Robert K. Hur. “Today’s resolution demonstrates our continuing commitment to hold companies accountable for their actions.”
“Making misleading statements to win contract awards violates fundamental tenets of government contracting and harms the government and taxpayers,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “The Department is committed to protecting the American taxpayer from false claims and preserving the integrity of federal funding decisions.”
“Companies are expected to be candid about products, skills and abilities during contract negotiations,” said Special Agent in Charge Maureen R. Dixon of the Office of Inspector General for the Department of Health and Human Services. “We will continue to work with the U.S. Department of Justice to ensure taxpayer dollars are only spent for honest, high-quality health care products and services.”
According to the settlement agreement, on December 19, 2011, IBM completed its acquisition of Cúram Software Ltd (Cúram). That same day, a proposal was submitted to the State of Maryland to support the HIX, which was drafted in part by Cúram and included Cúram as a subcontractor for software and services. On January 5, 2012, as part of the bid evaluation process and with IBM’s knowledge, Cúram participated in a presentation to the State of Maryland that illustrated Cúram software conducting eligibility determinations for health assistance coverage, calculating applicable tax credits, addressing changes in life events (e.g., changes in income), and illustrating the integration of Cúram’s software with another subcontractor’s health plan shopping software. On February 22, 2012, the State, acting through MHBE, awarded the contract for development of Maryland’s HIX website and IT platform. Cúram-IBM served as a subcontractor on the project. Federal grants from the U.S. Department of Health and Human Services partially funded MHBE’s contract for the Maryland HIX.
After repeated problems following the launch of the HIX website in October 2013, Maryland, acting through MHBE, terminated the contract and replaced the HIX website and IT platform, including the Cúram software. The settlement covers the time period from January 1, 2011, through May 31, 2014, and resolves allegations against Cúram-IBM regarding material misrepresentations made to the State of Maryland during the HIX contract procurement process, including misrepresentations regarding the development status of the Cúram for Health Care Reform software; the existing functionality of the Cúram software to meet the State’s technical requirements, such as addressing life events and calculating tax credits under the Patient Protection and Affordable Care Act; and the integration of Cúram software with other software needed to provide a properly functioning HIX website.
The claims resolved by this settlement agreement are allegations. The settlement is not an admission of liability by IBM, nor a concession by the United States that its claims are not well founded.
The investigation and settlement in this matter were the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of Maryland, the Department of Health and Human Services Office of Inspector General, and the Office of the Attorney General of Maryland. U.S. Attorney Robert K. Hur thanked Assistant United States Attorneys Allen F. Loucks and Rebecca A. Koch, and Michael Hoffman with the Civil Division’s Commercial Litigation Branch, who handled the case.
Honduran National Sentenced for Making a False Statement on a Passport ApplicationRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that WILMER ADONYS OSORTO, a/k/a OMAR ORLANDO CUADRADO, age 41, a citizen of Honduras, was sentenced yesterday after previously pleading guilty to a one-count Bill of Information with making a false statement in a United States passport application, in violation of Title 18, United States Code, Section 1542.
According to the Bill of Information, WILMER ADONYS OSORTO, a/k/a OMAR ORLANDO CUADRADO falsely stated in the application that his name was Omar Orlando Cuadrado when in fact he is Wilmer Adonys Osorto.
WILMER ADONYS OSORTO, a/k/a OMAR ORLANDO CUADRADO was sentenced to time served, a $100.00 special assessment and remanded to Immigration and Customs Enforcement for deportation proceedings.
U.S. Attorney Strasser praised the work of the United States Department of State Diplomatic Security Service in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
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Harrisburg Man Sentenced to over Twenty-One Years’ Imprisonment for Drug Trafficking and Firearms OffensesRead the Press Release
HARRISBURG—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Robert Hendrix, Jr., age 39, of Harrisburg, Pennsylvania, was sentenced on June 13, 2019, by United States District Court Judge Sylvia H. Rambo to 262 months’ imprisonment to be followed by six years of supervised release for drug trafficking and firearms offenses.
According to United States Attorney David J. Freed, Hendrix previously admitted to possessing with the intent to distribute crack cocaine and possessing multiple firearms as a previously convicted felon.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Harrisburg Police Bureau. Assistant U.S. Attorney Carlo D. Marchioli prosecuted the case.
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Harrisburg Man Charged with Drug Trafficking and Firearm OffensesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Donald Jackson, age 33, of Harrisburg, Pennsylvania, was indicted on June 12, 2019, by a federal grand jury on drug trafficking and firearms charges.
According to United States Attorney David J. Freed, the indictment alleges that Jackson distributed cocaine base, also known as crack cocaine, possessed with intent to distribute marijuana and methamphetamine, and illegally possessed a Ruger 9mm pistol in furtherance of drug trafficking and as a previously convicted felon.
The case was investigated by the Harrisburg Bureau of Police and the Pennsylvania Office of Attorney General Mobile Street Crimes Unit with assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney James T. Clancy is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the drug trafficking offenses is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. The maximum sentence for possessing a firearm in furtherance of drug trafficking is life in prison, a term of supervised release following imprisonment, and a fine. The maximum sentence for possessing a as a convicted felon is 10 years in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Fugitive Returned to U.S. to Face Federal & State ChargesRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that William Guy, 51, formerly of Madison, Wisconsin, appeared in federal court this morning, following his extradition from Austria.
Guy was arrested in Austria in April 2018 on federal charges of fraudulently obtaining a passport, and on numerous state charges. At the time of his arrest, he had been a fugitive for more than seven years, and was on the U.S. State Department’s Diplomatic Security Service’s most wanted list. Guy fought extradition from Austria for almost a year, before finally being removed from the country this week. Magistrate Judge Stephen Crocker ordered Guy detained based on his flight risk, and set Guy’s federal trial date for October 28, 2019.
In addition to the federal charges, Guy faces charges of possessing child pornography, stalking resulting in bodily harm, false imprisonment, identity theft, victim intimidation, second degree sexual assault, kidnapping, bail jumping, and numerous other charges in Dane County Circuit Court.
You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
The charges against Guy are the result of an investigation conducted by the U.S. Department of State’s Diplomatic Security Service, the U.S. Marshals Service, and the Madison Police Department. The prosecution of the federal case has been assigned to Assistant U.S. Attorney Elizabeth Altman. The prosecution of the state charges has been assigned to Assistant District Attorney Matthew Moeser.
Fox Chapel Cardiologist Convicted at Trial of Health Care Fraud Involving more than $13 Million of Insurance BillingsRead the Press Release
PITTSBURGH – After deliberating for two hours, a federal jury found Samirkumar J. Shah guilty of two counts of health care fraud, United States Attorney Scott W. Brady announced today.
Shah, 56, of Fox Chapel, Pa., was tried before United States District Judge David S. Cercone in Pittsburgh, Pennsylvania.
U.S. Attorney Brady stated, "Health care fraud threatens the safety and integrity of our entire health care system. Doctors and medical professionals like Dr. Shah who issue false diagnoses, order unnecessary testing and fraudulently bill Medicare and Medicaid in effect steal from the most vulnerable in our community. Today’s jury verdict sends a clear message to those who would do the same: if you commit health care fraud, you will be prosecuted to the fullest extent of the law."
"Health care fraud is a serious problem that impacts every American," said FBI Pittsburgh Special Agent in Charge Robert Jones. "It takes critical resources from our health care system and increases health care costs for everyone. Dr. Shah's disregard for safe patient care goes against the medical ethics he was to uphold. The FBI, with its law enforcement partners, will continue to allocate a significant amount of expert resources to investigate these crimes and hold those defrauding the system accountable."
The evidence introduced during the eight-day trial established that between 2008 and 2013, Shah, a practicing cardiologist, submitted fraudulent claims to private insurance companies—Highmark Blue Cross Blue Shield (Highmark), UPMC Health Plan (UPMC), and Gateway Health Plan (Gateway)—as well as government insurance programs—Medicare and Medicaid—for an outpatient treatment known as External Counter Pulsation, or ECP. ECP involves the use of a specialized bed equipped with pressure cuffs, which exert pressure upon patients’ lower extremities as a means to increase blood flow to the heart. The evidence at trial further demonstrated that insurers only reimbursed for ECP treatments of patients who suffered from disabling angina—or chest pain caused by decreased blood flow to the heart—and only when a physician supervised the treatment.
In total, Shah purchased 25 beds and offered ECP to patients at more than 18 locations in Western Pennsylvania, Ohio, New York, and Florida. The evidence also showed that, in order to acquire new patients, Shah advertised ECP as "the Fountain of Youth," claimed that it made patients "younger and smarter," and offered the treatment for a range of ailments other than disabling angina, including obesity, migraines, high blood pressure, low blood pressure, diabetes, and erectile dysfunction. After signing up new patients, including many patients who never experienced chest pain, Shah instructed his employees to indicate that every patient had disabling angina on billing sheets that were used to support false insurance claims. In certain instances, Shah never met patients for whom he billed for ECP treatments.
The evidence also showed that patients were required to undergo certain diagnostic ultrasounds as a precautionary measure prior to starting ECP—in part to rule out blood clots that could cause a stroke or heart attack during the treatment. Nevertheless, witness testimony established that Shah did not review any of the ultrasound imagery before approving new patients to begin ECP.
Likewise, contrary to health insurance requirements, ECP treatments routinely occurred while neither Shah nor any other medical doctor was present at his various locations. On one such occasion, a patient experienced an adverse event during his ECP treatment and had to be transported via ambulance to the hospital.
In addition to billing for ECP treatments that were not medically necessary and were not provided under direct physician supervision, Shah also double-billed insurers by using a so-called "bundled" ECP code, which accounted for and included payment for various incidental procedures, and then separately submitted claims for the same included procedures. The evidence at trial further established that during reviews initiated by various insurers, Shah routinely submitted fabricated patient files and made false statements concerning his practice, his patient population, his record keeping, and his compliance with applicable coverage guidelines.
During the period of Shah’s scheme, the evidence showed that he submitted ECP-related claims for Medicare, Medicaid, UPMC, Highmark, and Gateway beneficiaries, totaling more than $13 million and that he received reimbursement payments in excess of $3.5 million.
Judge Cercone set sentencing for November 6, 2019, at 11 a.m. The law provides for a maximum sentence of 10 years in prison, a fine of $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 history, if any, of the defendant.
Assistant United States Attorneys Eric G. Olshan and Nicole Vasquez Schmitt prosecuted this case on behalf of the government, with the assistance of Assistant United States Attorney Philip O’Connor.
The Federal Bureau of Investigation and Pennsylvania Office of Attorney General, Medicaid Fraud Control Unit, conducted the investigation that led to the conviction of Shah.
Four Individuals Indicted and Arrested for Hobbs Act, Carjacking Murder, and Firearms OffensesRead the Press Release
SAN JUAN, P.R. – On June 11, 2019, a federal grand jury returned a six-count indictment against four individuals for interference with commerce by robbery (Hobbs Act), carjacking murder, carrying and discharging a firearm during a crime of violence that resulted in death, and theft of firearms, announced United States Attorney Rosa Emilia Rodríguez-Vélez. The FBI and the Puerto Rico Police Department are in charge of the investigation.
The indictment alleges that on April 1, 2019, in the District of Puerto Rico, Ángel David López-Zayas, a.k.a. “Pancho;” Ricardo Pérez, a.k.a. “Bam Bam;” Freddie Ramos-Ortiz, a.k.a. “Fredito;” and Jadier Joaquín Torres-Rijos, a.k.a. “Castier/Kastier”, aiding and abetting each other, conspired to interfere with commerce by robbery; that is, they agreed to take U.S. currency representing assets of victim A.R.M.’s commercial businesses and destined to further A.R.M.’s commercial activities, from his presence at his residence, against his will, by means of force, violence, and fear of injury.
During the robbery, the defendants stole two vehicles, a gray Honda Accord and a red Dodge Ram 2500 by force, violence, and intimidation. They discharged a firearm and killed A.R.M. The defendants also stole approximately six firearms from the residence of A.R.M., to wit, a .9mm caliber Ruger pistol, a .22 Smith and Wesson rifle, a .9mm Smith and Wesson pistol, a .45 caliber Glock pistol, a 12-gauge Mossberg shotgun, and a 12-gauge pistol. All six firearms were legally owned by A.R.M.
“This violent home invasion in the town of San Lorenzo, which resulted in the murder of business owner A.R.M., stunned the community,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “I commend the PRPD and FBI agents, and the prosecutors for their excellent work in bringing these defendants to justice. We will continue to work diligently to prosecute violent criminals to the fullest extent of the law.”
“The FBI’s Humacao Office and our partners at the Puerto Rico Police Department worked quickly to solve this tragic and vicious murder of a hard working businessman,” said FBI SAC Douglas Leff. “We thank Homeland Security Investigations and the U.S. Attorney’s Office for their continued commitment to removing violent offenders from our streets and neighborhoods.”
The case is being prosecuted by Assistant United States Attorney Alexander Alum. The FBI and Puerto Rico Police Department are in charge of the investigation. If convicted, the defendants face up to life in prison and are eligible for the death penalty. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
Former stockbroker sentenced for defrauding clientsRead the Press Release
ATLANTA - Sean Kelly has been sentenced to federal prison for wire fraud and securities fraud after pleading guilty to stealing over $1.4 million from his clients.
“Kelly never intended to fulfill his fiduciary responsibility to his clients, which included elderly citizens and veterans,” said U.S. Attorney Byung J. “BJay” Pak. “As thieves like Kelly continue to try avoiding detection and covering their fraudulent methods, we will continue to catch them and prosecute them. We encourage people to thoroughly check out anyone that promises to shepherd their investments.”
“While it is easy to dismiss financial fraud cases as being almost benign because of their lack of violence, there is, however, a very real victimization felt and lives are changed forever,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI is hopeful that Kelly’s sentence will send a strong message to anyone who would try to take advantage of unsuspecting clients for their own personal greed.”
According to U.S. Attorney Pak, the charges and other information presented in court: For almost five years, from January 2014 through October 2018, defendant Sean Kelly defrauded his investor clients. Kelly was a stockbroker and investment adviser who purported to provide tax planning, insurance brokering, and other financial services to his clients. Kelly advised his victims to invest in various ways, including through private placements, annuities, investments funds, and real estate investment trusts.
Despite the claimed investments, Kelly instead took his victims’ money and used it for personal expenses, to include mortgage payments, Super Bowl tickets, vacations, and significant cash withdrawals. Ultimately, he stole over $1.4 million from more than 18 clients. In October 2018, closely following the filing of a lawsuit by the U.S. Securities and Exchange Commission, the FBI obtained a warrant based on Kelly’s fraud and arrested him. At his sentencing, the Court found that Kelly’s fraud injured vulnerable victims, including the elderly and veterans.
Sean Kelly, 50, of Marietta, Georgia, was sentenced to five in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $1,457,043.99. Kelly was convicted on these charges on January 4, 2019, after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation. The U.S. Securities and Exchange Commission contributed to this case.
Assistant U.S. Attorney Christopher J. Huber, Deputy Chief of the Complex Frauds Section, prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Postal Employee Sentenced for Theft of MailRead the Press Release
NEW ORLEANS – United States Attorney Peter G. Strasser announced that COURTNEY C. DUPLESSIS (“DUPLESSIS”), age 30, of New Orleans, Louisiana, was sentenced yesterday for Theft of Mail, in violation of Title 18, United States Code, Section 1709.
According to court records, DUPLESSIS was employed by the United States Postal Service as a Letter Carrier originally assigned to the Carrolton Station Post Office and then to the Elmwood Station Post Office. After an investigation by the U.S. Postal Service, Office of Inspector General (“USPS-OIG”), it was determined that on various dates from October 2017 to June 2018, DUPLESSIS stole several pieces of mail containing gift cards and cash. On June 19, 2018, special agents with the USPS-OIG determined DUPLESSIS opened an envelope and removed cash from the envelope. The USPS-OIG agents confronted DUPLESSIS and advised her of her Miranda rights. During an interview, DUPLESSIS admitted to opening several articles of mail and removing cash and gift cards. Agents discovered an additional 54 articles of mail during a subsequent search of DUPLESSIS’S personal vehicle.
U.S. District Judge Eldon E. Fallon sentenced DUPLESSIS to three (3) years of probation.
U.S. Attorney Peter G. Strasser praised the work of the USPS-OIG. The prosecution of this case is being handled by Assistant U. S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit.
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Former Miramar Police Department Employee Sentenced to Prison for Participating in Fraud SchemeRead the Press Release
A former Miramar Police Department employee was sentenced to prison today for participating in a fraud scheme.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Brian M. Chen, 39, of Weston, Florida, a former Information Technology Analyst with the police department for the city of Miramar, Florida, was sentenced today to 37 months in prison by U.S. District Judge William P. Dimitrouleas, after previously pleading guilty to a three-count Information charging him in each count with mail fraud, in violation of Title 18, United States Code, Section 1341. Chen was order to pay $343,797.02 in restitution to the City of Miramar. After sentencing, Chen was remanded to the custody of the Bureau of Prisons to begin serving his prison sentence.
According to the court record, including stipulated statements of fact, the State of Florida had a contract with Verizon Wireless for a cellular telephone service plan, which included the acquisition by state and local agencies of cellular telephones and devices. The contract allowed state and local agencies in Florida to obtain iPhones and Android cellular telephones for free or at a discounted rate, provided that the cellular telephones were obtained for official use and that Verizon Wireless was utilized as the service provider. In his position as Information Technology Analyst, Chen was the administrator of the plan and was in charge of overseeing the purchase and use of cellular telephones and service.
Beginning in or about 2013, Chen, through his position as Information Technology Analyst with the Miramar Police Department, ordered cellular telephones online through the Verizon “My Business” portal for free or at a substantial discount with the intent to unlawfully resell those cellular telephones. Upon ordering the cellular telephones, Chen caused Verizon to initiate a monthly service plan for each line of service. Chen attempted to suspend the monthly service plan for each cellular telephone in order to conceal his illegal acquisition of them.
Chen offered the illegally obtained telephones for sale individually through an online auction and resale provider and also sold the illegally obtained telephones in bulk to persons in the business of reselling cellular telephones. Due to the volume of telephones illegally purchased and the associated lines of service plans, some service plans could not be continuously suspended. Miramar Police Department incurred a loss of approximately $350,000 by paying for service plans for telephones purchased by Chen pursuant to the fraudulent scheme. From in or about 2013, through on or about November 29, 2018, Chen illegally profited, from the scheme, by receiving approximately $800,000 through the sale of over a thousand illegally obtained cellular telephones.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI in connection with this matter. She thanked the Miramar Police Department for their assistance. The case was prosecuted by Assistant U.S. Attorneys Jeffrey N. Kaplan and Paul F. Schwartz.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Chicopee Police Officer Sentenced for Immigration FraudRead the Press Release
BOSTON – A former Chicopee police officer was sentenced yesterday in federal court in Springfield in connection with immigration fraud.
Nhac Duy Truong, 44, of East Longmeadow, was sentenced by U.S. District Court Judge Mark G. Mastroianni to a $5,000 fine. In February 2019, Truong pleaded guilty to one count of immigration fraud. According to the terms of the plea agreement, Truong agreed to resign from the Chicopee Police Department, where he has served as a police officer since 2004, and to never seek employment in law enforcement.
In 2008 and 2009, Truong submitted two petitions for a claimed alien fiancée, who was in fact the sister of his common law wife. On Feb. 15, 2011, in Ho Chi Minh City, Vietnam, Truong signed a sworn affidavit in support of his second petition for his common law wife’s sister that falsely stated he had never lived with his common law wife and never met her in person, when in fact he had lived with her, and she is the mother of his two children.
United States Attorney Andrew E. Lelling and William Gannon, Special Agent in Charge of the United States Department of State, Bureau of Diplomatic Security, Boston Field Office, made the announcement. Assistant U.S. Attorney Steven H. Breslow of Lelling’s Springfield Branch Office prosecuted the case.
Former Bank Vice President Who Aided the Obstruction of an FDIC Investigation Sentenced to Federal PrisonRead the Press Release
A man who aided the obstruction of an FDIC examination was sentenced on June 13, 2019, to one year and one day in federal prison.
Martin Smith, age 39, from Center Point, Iowa, received the prison term after an August 27, 2018 guilty plea to aiding and abetting the obstruction of an FDIC investigation.
Smith worked as a bank vice president from 2009 to 2012. Information at sentencing showed that, during a December 2011 FDIC examination, Smith made it appear as though a borrower’s delinquent loans had been refinanced several months prior, which kept regulators from scrutinizing those loans as part of the exam. Information at sentencing also showed that Smith changed due dates and allowed unauthorized advances on other loans, ultimately causing the bank to incur more than $1 million in losses on loans that the bank never formally authorized and, in some circumstances, never even memorialized.
Smith was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Smith was sentenced to 12 months’ and one day imprisonment. He was ordered to make $1,270,132.97 in restitution. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Smith was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Jacob Schunk and investigated by the Federal Deposit Insurance Corporation Office of Inspector General and the United States Secret Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-00076.
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Florida Man Pleads Guilty to Wire Fraud ConspiracyRead the Press Release
BOSTON – A Florida man pleaded guilty today in federal court in Boston in connection with the fraudulent abuse of the U.S. Postal Service’s (USPS) Informed Delivery electronic notification system.
Peter Belony, 34, of Margate, Fla., pleaded guilty to one count of conspiracy to commit wire fraud. U.S. District Court Judge Douglas Woodlock scheduled sentencing for Sept. 19, 2019. Belony and his co-conspirators, Fred Alcius, Lucson Appolon, and Kevens Louis were charged on April 9, 2019. Co-conspirators Appolon and Louis were arrested on April 16, 2019; Belony was arrested on April 26, 2019; and Alcius remains a fugitive.
Informed Delivery is a free electronic notification service provided by the USPS that gives residential and P.O. Box customers the ability to digitally preview their incoming mail and manage their packages.
According to the indictment, the defendants accessed victims’ personal identifying information, including names, Social Security numbers, dates of birth, and addresses on the “dark web” and then used the information to open credit cards in the victims’ names. The defendants then subscribed to Informed Delivery using the victims’ personal identifying information and a fraudulent email address created to track the delivery of credit cards to the victims’ residential mailboxes. The defendants subsequently intercepted the credit cards at the victims’ mailboxes before the victims could receive them and used those credit cards at ATMs and to purchase gift cards and other items for resale at Apple and Walmart, among other retail establishments. The defendants traveled to states across the East Coast in furtherance of the fraud, including New Hampshire, Maine, and Massachusetts.
The charge of conspiracy to commit wire fraud carries a sentence of no greater than 20 years in prison, up to three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. Valuable assistance was provided by the Federal Bureau of Investigation, Boston Field Office; Homeland Security Investigations in Boston; the Concord, Fort Lauderdale (Fla.), Harvard, Kittery (Maine), Norfolk, Plantation (Fla.), Sherborn, and Weston Police Departments. Assistant U.S. Attorney Mackenzie A. Queenin of Lelling’s Cybercrime Unit is prosecuting the case.
The details contained in the indictment are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Federal Jury Convicted Former FAA Aviation Safety Inspector of Bribery and Fraud SchemeRead the Press Release
Yesterday, following a four-week trial before U.S. District Court Judge Marcia G. Cooke, a federal jury convicted a former Federal Aviation Administration (FAA) Safety Inspector Manuel R. Fernandez, 42, of Miami, of twenty-one criminal counts for his participation in a bribery and fraud scheme.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Todd Damiani, Regional Special Agent in Charge, U.S. Department of Transportation, Office of Inspector General (DOT-OIG), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
According to the evidence at trial, from 2010 through June 28, 2013, Fernandez served as a FAA Aviation Safety Inspector with the FAA South Florida Flight Standards District Office (“FSDO”). Patricia Suarez and Rolando Suarez were the co-owners, officers, and directors of AVCOM, a Miami aviation repair company, which was subject to the jurisdiction and official responsibility of the FAA South Florida FSDO. The evidence showed that, at the same he was working for the FAA, Fernandez held various positions at AVCOM, including Vice President of Operations.
In exchange for Patricia Suarez and Rolando Suarez corruptly providing over $150,000 in cash, as well as jewelry, a cruise, clothing, and approximately $15,000 funneled to Fernandez’s mother, Fernandez violated his lawful and official duties as an FAA Aviation Safety Inspector. Fernandez provided AVCOM with advanced notice and warnings as to pending FAA inspections of AVCOM, disclosed financial information about AVCOM’s competitors, and provided AVCOM with improperly obtained aviation repair manuals produced by original equipment manufacturers such as Honeywell and Delta, saving AVCOM from paying vast sums of money for this proprietary information. The evidence further showed that Fernandez provided materially false statements to the FAA and DOT in order to hide his participation in these AVCOM-related activities. Additionally, Fernandez submitted a fraudulent sick leave request to the FAA, utilizing a forged doctor’s note.
Fernandez was convicted of one count of conspiracy to commit bribery, in violation of Title 18, United States Code, Sections 371 and 201(b)(1)(C) and (b)(2)(C); fifteen counts of bribery, in violation of Title 18, United States Code, Section 201(b)(2)(C); one count of providing false statements to a federal agency, in violation Title 18, United States Code, Section 1001(a)(2); two counts of wire fraud, in violation Title 18, United States Code, Section 1343; and two counts of aggravated identity theft, in violation Title 18, United States Code, Section 1028A. Fernandez faces a maximum statutory sentence of 5 years in prison for the conspiracy count of conviction, 15 years in prison for each for the bribery counts, five years in prison for the false statement count, 20 years in prison for each wire fraud count, and a 2-year consecutive mandatory minimum sentence for the aggravated identity theft counts. In addition, he faces a fine of up to $250,000 or triple the bribery proceeds.
Rolando Suarez previously pled guilty and was sentenced to 24 months in prison. Patricia Suarez previously pled guilty and was sentenced to 5 years’ probation with 240 days of electronic monitoring. Rolando and Patricia Suarez were ordered to jointly pay $711,940.46 in restitution.
Fernandez is scheduled to be sentenced by Judge Cooke on August 28, 2019, at 10:30 a.m. (Case No. 17-20780-Cr-Cooke).
U.S. Attorney Fajardo Orshan commended the investigative efforts of the DOT-OIG and FBI in this matter. She also thanked the Hialeah Police Department, Miami Beach Police Department, and Miami-Dade Police Department for their assistance. This case is being prosecuted by Assistant U.S. Attorneys Michael Davis and Yeney Hernandez.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Elementary Music Teacher Charged with Possession of Child PornographyRead the Press Release
A Federal Way, Washington, man was arrested this morning for possession of child pornography and made his initial appearance in U.S. District Court in Seattle this afternoon, announced U.S. Attorney Brian T. Moran. CHRISTOPHER SCOTT NEWCOMBE, 35, has worked as a music teacher in a variety of public and charter schools in the Puget Sound region. Currently, he is an elementary music teacher in the Renton School District.
According to records filed in the case, KIK screens for explicit images on its messaging system and forwards information on those images to law enforcement. In November 2018, Homeland Security Investigations was alerted to the transmitting of sexually explicit images of young boys involving an internet protocol address ultimately traced to NEWCOMBE. Law enforcement obtained a search warrant for NEWCOMBE’s digital devices. The warrant was executed this morning, and NEWCOMBE was charged with possession of images of child pornography.
Since NEWCOMBE has been employed as a music teacher, Homeland Security is asking that those who have concerns and wish to communicate with law enforcement call 206-442-1469. NEWCOMBE’s current teaching position is at Renton’s Cascade Elementary School, but his social media profiles indicate prior teaching positions at schools in Tacoma, Federal Way, and Bainbridge Island.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources better to locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The case is being prosecuted by Assistant United States Attorney Matthew Hampton.
Domestic Violence Offender Sentenced for Illegal Possession of Firearm with Homemade SuppressorRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that a Fairbanks man has been sentenced to federal prison for possessing a handgun with a homemade suppressor, after being convicted of a crime of domestic violence.
Kyle Steven Moody, 33 of Fairbanks, was sentenced today by Sr. District Judge Ralph R. Beistline, to serve 37 months in federal prison, followed by 3 years of supervised release. In March 2019, Moody pleaded guilty to being a prohibited person in possession of a firearm.
According to court documents, on Dec. 15, 2017, Moody was convicted in the State of Alaska of a misdemeanor crime of domestic violence, for violently assaulting his girlfriend, K.H. On Dec. 6, 2018, the Alaska State Troopers received a report that Moody had again assaulted K.H. so badly that her eyes were swollen shut. At that time, Moody was in violation of his conditions of release, where the court had ordered that he have no contact with K.H., who also had a restraining order against Moody.
Troopers identified Moody near his residence in a car with K.H., and he was arrested. Troopers then observed a .22 caliber Ruger Mark IV handgun with a suppressor attached to the barrel under the passenger seat where Moody had been sitting. Moody admitted the firearm belonged to him and that he purchased a kit to make the suppressor.
Moody has a history of domestic violence charges in the State of Alaska involving the same victim, and as someone previously convicted of a misdemeanor crime of domestic violence, Moody was prohibited from possessing a firearm.
At Moody’s sentencing hearing, Judge Beistline noted that Moody’s relationship with K.H. was “very deadly” and that “people in a domestic relationship should be protecting each other, not abusing each other.” He also noted that Moody showed “no respect whatsoever for the law” when he repeatedly violated court orders not to contact K.H. As a condition of his sentence and supervised release, Judge Beistline ordered Moody to undergo batterer intervention training and prohibited him from contacting K.H.
The Alaska State Troopers (AST) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Ryan D. Tansey.
Dallas Trafficker Ordered to Pay $330,000+ in Restitution to VictimRead the Press Release
A Dallas area sex trafficker was sentenced today to 11 years in federal prison and ordered to pay his victim nearly $333,000, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Gregory Bowden, aka “G,” pleaded guilty to a racketeering charge in January.
In plea papers, Mr. Bowden admitted he recruited his 19-year-old victim, identified in court documents by her initials “R.R.,” in 2014.
He advertised her services on Backpage.com and trafficked her across Texas, from Odessa to Euless to Corpus Christi, using violence to force her to engage in commercial sex acts while he kept the proceeds.
On Friday, U.S. District Judge Sidney A. Fitzwater sentenced Mr. Bowden to 11 years behind bars and ordered him to pay $332,990 in restitution to R.R.
Homeland Security Investigations and the Corpus Christi Police Department conducted the investigation. Assistant U.S. Attorney Cara Foos Pierce prosecuted the case.
Anyone with information pertaining to possible human trafficking, please call the National Human Trafficking Hotline, live 24/7, at 1-888-373-7888.
Cuban Man Sentenced to 27 Months’ Imprisonment for Drug Trafficking OffensesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on June 11, 2019, David Alzugaray-Lugones, age 50, a Cuban refugee from Weatherly, Pennsylvania, was sentenced to 27 months’ imprisonment and three years of supervised release, by United States District Court Judge Malachy E. Mannion, for drug trafficking offenses.
According to United States Attorney David J. Freed, Alzugaray-Lugones was convicted following a 13-day jury trial of conspiring to distribute 15 grams of heroin from June 2, 2015 and June 8, 2015, and for distributing five grams of heroin on June 8, 2015. Alzugaray-Lugones also attempted to obstruct justice by authoring a letter sent to law enforcement, in which he claimed responsibility for C-4 explosives crimes committed by one of his co-conspirators.
Alzugaray-Lugones’s codefendants, Roberto Torner and Liza Robles, also were convicted at trial of various heroin trafficking, firearms, and explosives charges. Torner and Robles both are awaiting sentencing.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Weatherly Police Department, the Luzerne County Drug Task Force, the Pennsylvania State Police, and other federal, state, and local law enforcement agencies. Assistant United States Attorneys Phillip Caraballo and Todd Hinkley prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Convicted Felon Pleads Guilty to Illegal Possession of a FirearmRead the Press Release
NEW ORLEANS - U.S. Attorney Peter G. Strasser announced today that KEVIN CRAWFORD (“CRAWFORD”), age 34, of New Orleans, pled guilty yesterday to being a felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1).
The Court set sentencing in this matter for August 21, 2019. CRAWFORD faces a maximum term of imprisonment of ten (10) years, a maximum $250,000 fine, three (3) years supervised release following any term of imprisonment, and a $100 special assessment fee.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. PSN, the centerpiece of the Department of Justice’s violent crime reduction efforts, 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.
U.S. Attorney Strasser praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives along with the New Orleans Police Department on investigating this matter. Assistant United States Attorney Duane A. Evans is prosecuting the case.
Cleveland man with convictions for domestic violence, robbery and other crimes sentenced to more than three years in prison for having firearms and ammunitionRead the Press Release
A Cleveland man with a history of violent crimes was sentenced to more than three years in prison for having a firearm.
Miquel D. Jones, 49, was sentenced to 42 months in prison. He previously pleaded guilty to being a felon in possession of firearms.
“This defendant has no right to firearms because his history of violent crime, including convictions for domestic violence and robbery,” U.S. Attorney Justin Herdman said. “Domestic violence offenders pose an outsized threat to Ohio’s families, communities and law enforcement officers.”
“ATF’s mission is reducing violent gun crime in our country,” said Jonathan T. McPherson, Special Agent in Charge of ATF’s Columbus Field Division. “We are committed to working with our federal, state, and local partners to follow the gun and remove the most violent criminals from our streets.”
Law enforcement officials searched Jones’ residence on Poe Avenue on May 23, 2018, in relation to a missing minor. A search of the residence revealed a Ruger 9 mm handgun, a Maverick 12-gauge shotgun and 16 rounds of 9 mm ammunition, according to court documents.
Jones has previous convictions for robbery, domestic violence, burglary and other crimes, which make it illegal for him to possess firearms or ammunition, according to court documents.
This case was prosecuted by Assistant U.S. Attorneys Brian S. Deckert and Robert J. Patton following an investigation by the ATF, Homeland Security Investigations, Cuyahoga County Regional Human Trafficking Task Force and Cleveland Division of Police.
Cheverly Man Sentenced to 14 Years in Federal Prison for Enticing and Coercing A Minor to Produce Child PornographyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Wilmer Flores Mejia, age 44, a naturalized citizen of the United States residing in Cheverly, Maryland, to 14 years in federal prison, followed by 25 years of supervised release, for coercion and enticement of a minor to produce child pornography. Judge Grimm also ordered that, upon his release from prison, Flores Mejia must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA). The sentence was imposed on June 13, 2019.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
According to his plea agreement, in December 2015, Flores Mejia used a messaging application to communicate with the victim, who was a 15-year-old boy living in El Salvador. During the course of a sexually explicit conversation, Flores Mejia agreed to pay the victim to send Flores Mejia a sexually explicit photograph of himself, which the victim did.
Flores Mejia’s messaging account showed that he had engaged in other sexually explicit conversation with minor boys on several occasions. Cellular phones seized from Flores Mejia contain conversations with minor boys, including regarding sexual topics. A federal search warrant executed at the residence of Flores Mejia in Maryland also recovered a notebook which contained the names and ages of boys from a village in El Salvador, including the name and age of the victim.
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 Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation and thanked the Prince George’s County Police Department, U.S. Customs and Border Protection, and the Policia Nacional Civil of El Salvador for their assistance. Mr. Hur thanked Assistant U.S. Attorney Joseph R. Baldwin, who prosecuted the federal case.
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Chairman and Senior Executive of Venture Capital Funds Charged in Manhattan Federal Court with Securities Fraud and Wire FraudRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that DAVID WAGNER and MARC LAWRENCE were arrested this morning on securities fraud and wire fraud charges stemming from their operation of a number of corporate entities (collectively referred to as “Downing”) as a Ponzi-like scheme. WAGNER and LAWRENCE solicited over $8 million from investors through materially false and misleading statements regarding, among other things, Downing’s financial condition, use of investor proceeds, sources of funding, ability to pay salaries to employee-investors, and investment portfolio. Then, WAGNER and LAWRENCE misappropriated a significant portion of those funds and used them for, among other things, the payment of management fees, the repayment of prior investors, and personal expenses. WAGNER was arraigned earlier today in the United States District Court for the District of Rhode Island and LAWRENCE will be presented later today in the United States District Court for the Middle District of Florida. The case has been assigned to U.S. District Judge Ronnie Abrams.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, David Wagner and Marc Lawrence were no more scrupulous than practitioners of three-card Monte or the shell game, but for much higher stakes. They allegedly offered employee-investors the opportunity to get in on the ground floor of a multimillion-dollar venture capital business, but what the employee-investors really got was fleeced. Now Wagner and Lawrence are in custody and facing serious criminal charges.”
FBI Assistant Director William F. Sweeney Jr. said: “Wagner and Lawrence sought money up front from employee investors who believed their principals were acting in good faith. It turns out, as we allege, they were not. The ones who stood to lose the most in this scheme knew the least about the risks they were taking. Illegal investment schemes of any kind will ultimately be faced with intense scrutiny, especially those that aim to capitalize on the losses of others.”
According to the Indictment unsealed today in Manhattan federal court:[1]
From at least in or about December 2013 through at least in or about 2017, WAGNER, the chief executive officer of Downing, and LAWRENCE, the president of several Downing entities, solicited investments in Downing, a purported venture capital firm that would invest in healthcare start-ups referred to as “portfolio companies” and provide sales, operations, and management expertise to the portfolio companies in order to bring their products to market and generate returns for Downing investors, who also worked for Downing (the “employee-investors”). WAGNER and LAWRENCE, and others acting at their direction, solicited more than approximately $8 million in investments in Downing from employee-investors located across the United States, including in the Southern District of New York, as a requirement of employment with Downing.
After making the required investment of between $150,000 and $250,000 in Downing and starting their employment at Downing, employee-investors soon learned, among other things, that contrary to representations made by WAGNER and LAWRENCE, and others acting at their direction, Downing did not have access to millions of dollars in funding, often could not make payroll, had virtually no products to sell, and that employee-investors were the overwhelming source of funding. Employee-investors also learned that WAGNER and LAWRENCE had misrepresented the companies in Downing’s portfolio, their product readiness, and ability to generate revenue. While the particular formulation of these misrepresentations shifted over time, WAGNER and LAWRENCE systematically sought and obtained employee-investor money through materially false and misleading statements.
Beginning in or about May 2016, after several employee-investors had brought lawsuits against WAGNER, LAWRENCE, and several Downing entities, alleging claims based on, among other things, fraud, WAGNER and LAWRENCE continued the scheme by recruiting employee-investors into a new company called Cliniflow Technologies, LLC (“Cliniflow”), through materially false and misleading statements about Cliniflow’s cash reserves, portfolio companies, and exposure to litigation. In fact, Cliniflow purportedly held majority ownership in the same primary portfolio company as other Downing entities and was simply a new name used by WAGNER and LAWRENCE to solicit investments from new employee-investors that was not tainted by the lawsuits filed against Downing entities. A majority of the over $1.5 million raised by WAGNER and LAWRENCE through Cliniflow was transferred to other Downing entities and used to pay for, among other things, WAGNER’s personal expenses and the repayment of prior investors.
Finally, in or about January 2017, WAGNER obtained a $400,000 loan and $100,000 grant from the Connecticut Department of Economic and Community Development (“CTDECD”) for Cliniflow on the basis of materially false statements made by WAGNER to the CTDECD. WAGNER transferred a majority of the funds obtained from the State of Connecticut, which were required to be used for Cliniflow’s purported relocation from New York to Connecticut, to other Downing entities and also used a portion of the funds to purchase a luxury car for his daughter.
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WAGNER, 54, of East Greenwich, Rhode Island, and LAWRENCE, 54, of St. Petersburg, Florida, are each charged in five counts – namely, two counts of securities fraud, one count of conspiracy to commit securities fraud, one count of conspiracy to commit wire fraud, and one count of wire fraud. Conspiracy to commit securities fraud carries a maximum sentence of five years in prison. Each of other charges carries a maximum sentence of 20 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.
Mr. Berman praised the work of the FBI, and thanked the United States Securities and Exchange Commission and the Enforcement Section of the Massachusetts Securities Division for their assistance.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Jilan J. Kamal and Sagar K. Ravi are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Brooklyn Man Sentenced to 20 Years’ Imprisonment for Attempting to Join ISIS in YemenRead the Press Release
Earlier today, in federal court in Brooklyn, Mohamed Rafik Naji was sentenced to 20 years’ imprisonment by United States District Judge Frederic Block for attempting to provide material support or resources to the Islamic State of Iraq and al-Sham (ISIS), a foreign terrorist organization. Naji pleaded guilty to the charge in February 2018.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, John C. Demers, Assistant Attorney General for National Security, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the sentence.
“With today’s sentence, Naji has been held accountable for trying to enter a foreign war zone and join ISIS’ murderous cause,” stated United States Attorney Donoghue. “This Office, together with the FBI, the NYPD and all the members of the FBI Joint Terrorism Task Force will take every step necessary to incapacitate terrorists like Naji and protect the American people. I commend the Task Force for its outstanding work in this case.”
“Time and again, the United States has brought to justice those who have traveled from here to try and fight for ISIS,” said Assistant Attorney General Demers. “This is just what Naji did. Today’s sentence holds him accountable for his crime and I want to thank the agents, analysts, and prosecutors who are responsible for this result.”
“Extremists like Mr. Naji believe murdering innocent people advances their political agendas,” said FBI Assistant Director-in-Charge Sweeney. “In the end, Mr. Naji, like many others before him, find the only thing their actions lead to is a different vantage point from which to watch the world pass by – through the steel bars of a federal prison. Mr. Naji will remember today as sentencing day, nothing more. Working day in and day out with our partners on the FBI Joint Terrorism Task Force, safeguards have been put in place to secure Times Square and other popular attractions so any would be terrorist will find it extremely difficult to carry out their plans. Our unified goal is to remain proactive and prevent acts before they occur, and once again I would like to thank all of those who ensure our safety.”
“This case is a reminder that New York City remains the top target for terrorism in the U.S.,” said NYPD Commissioner O’Neill. “The NYPD and its partners in law enforcement will never relent in the fight against terror. I want to thank the dedicated members of the JTTF who worked on this investigation to keep our City safe and the prosecutors from the Eastern District of New York.”
By late 2014, Naji had become a committed supporter of ISIS as he repeatedly promoted its mission and distributed the terrorist group’s propaganda with violent themes and messages on social media. In March 2015, Naji traveled from New York City to Yemen in an effort to join ISIS. Naji also used social media to advise another person he could travel to join ISIS, but unbeknownst to Naji, that individual was a confidential source of information for the government (the “CS”). In an online conversation with the CS, Naji proclaimed his allegiance to ISIS, stating, “I belong to Islamic state only.”
Following his return to the United States in September 2015, Naji continued to express support for ISIS and violent jihad. In July 2016, following an ISIS-inspired terrorist truck attack in Nice, France that killed scores of civilians, Naji told the CS how easy it would be to carry out a similar attack in Times Square: “[ISIS] want an operation in Times Square” and “[an ISIS] reconnaissance group . . . put up scenes of Times Square.” Naji added: “if there is a truck, I mean a garbage truck and one drives it there to Times Square and crushes them . . . Times Square day.”
Naji has been incarcerated since his arrest in Brooklyn in November 2016.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorney Ian C. Richardson is in charge of the prosecution, with assistance from Trial Attorney Jacqueline L. Barkett of the National Security Division’s Counterterrorism Section.
The Defendant:
MOHAMED RAFIK NAJI
Age: 40
Brooklyn, New YorkE.D.N.Y. Docket No. 16-CR-653 (FB)
Brooklyn Felon Convicted of Possession of a Firearm and Ammunition Used During a Shooting at the Louis H. Pink HousesRead the Press Release
Earlier today, a federal jury in Brooklyn returned a guilty verdict against Shakeem Boykins charging him with being a felon in possession of a firearm and ammunition. The verdict followed a five-day trial before United States District Judge Edward R. Korman. When sentenced, Boykins faces up to 10 years’ imprisonment.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the verdict.
“The danger posed by a felon possessing a firearm was brought into sharp focus in this case, where the defendant shot a woman simply for being in a certain part of the Pink Houses against his wishes,” stated United States Attorney Donoghue. This Office and its law enforcement partners will do everything in our collective power to stop gun violence, including prosecuting those who illegally possess guns to the fullest extent of the law.” Mr. Donoghue expressed his grateful appreciation to the Federal Bureau of Investigation (FBI), New York Field Office, Safe Streets Task Force, which is comprised of FBI special agents and New York City Police Department (NYPD) detectives.
The evidence at trial established that on the afternoon of October 5, 2017, outside the Louis H. Pink Houses on Linden Boulevard in East New York, Boykins approached a woman with whom he and his friends had been in a dispute, and told her to leave the area. When she refused, Boykins rode away on a bicycle and returned with a handgun. Boykins then shot the woman twice at close range, striking her in the left leg. A .40 caliber cartridge casing was recovered at the scene. Subsequently, the NYPD recovered from his associates the .40 Glock semiautomatic handgun that Boykins had used in the shooting.
As presented at trial, Boykins was convicted in 2013 of a felony offense in Queens County Supreme Court. In addition, he was convicted in federal court in 2015 of being a member of a heroin and crack cocaine drug-trafficking conspiracy based in the Pink Houses.
This case was brought as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorneys’ Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys James P. McDonald and Margaret E. Gandy are in charge of the prosecution.
The Defendant:
SHAKEEM BOYKINS
Age: 24
Brooklyn, New YorkE.D.N.Y. Docket No. 18-CR-338 (ERK)
Boston Man Pleads Guilty to Federal Firearm OffenseRead the Press Release
BOSTON – A Boston man pleaded guilty yesterday in federal court in Boston to being a felon in possession of a firearm and ammunition.
Mohamed Abdulaziz, 32, pleaded guilty to one count of being a felon in possession of a firearm and ammunition. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Sept. 11, 2019. Abdulaziz was charged in December 2018 and is currently in state custody.
On Sept. 2, 2018, law enforcement officers stopped Abdulaziz on Route 24 South in West Bridgewater because he was driving erratically. After Abdulaziz failed several field sobriety tests, he was arrested for driving under the influence of alcohol. Troopers then conducted a routine inventory search of Abdulaziz’s vehicle before it was towed and found a loaded revolver beneath the driver’s seat. Federal law prohibits Abdulaziz from possessing a firearm or ammunition because of a prior felony conviction.
The charging statute provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement today. Assistant U.S. Attorney Christine Wichers of Lelling’s Major Crimes Unit is prosecuting the case.
Attorney Sentenced to 18 Months’ Imprisonment for Obstructing Federal Grand Jury Investigation of His ClientRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, John Servider was sentenced by United States District Judge Eric N. Vitaliano to 18 months’ imprisonment and fined $1,000 for obstructing a grand jury investigation in the Eastern District of New York. Specifically, Servider conspired to alter, and did alter, records responsive to a grand jury subpoena by removing the name of his client, Vincent Vertuccio. From 1988 until his conviction at trial in May 2018, Servider had been licensed by the State of New York to practice law.
Richard P. Donoghue, United States Attorney for the Eastern District of New York and Jonathan D. Larsen, Acting Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI), Michael C. Mikulka, Special Agent-in-Charge, United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations (DOL OIG), and Michael Nestor, Inspector General, Port Authority of New York and New Jersey, Office of Inspector General (PA-OIG), announced the sentence.
“With today’s sentence, Servider pays the price for violating the law and his oath as an attorney by impeding a federal grand jury investigation of his client,” stated United States Attorney Donoghue. “Crimes like those committed by the defendant undermine the integrity of our criminal justice system. Attorneys who commit such crimes are on notice that this Office will prosecute them to the fullest extent of the law.”
“It’s unconscionable that a licensed attorney would corruptly assist a client with evidence tampering in order to evade income taxes,” stated IRS-CI Special Agent-in-Charge Larsen. “When IRS special agents begin their career, they take an oath to uphold the constitution, a similar oath Mr. Servider swore to when he became a practicing attorney.”
“John Servider violated the law and his oath as an officer of the court when he obstructed a grand jury investigation by deliberately providing the grand jury with false documents,” said DOL OIG Special Agent-in-Charge Mikulka. “Today’s sentencing affirms the Office of Inspector General’s commitment to work with our law enforcement partners to hold those who obstruct criminal investigations accountable for their actions.”
“Servider’s conduct was egregious on many ethical and legal levels. His criminal conduct in altering documents to a federal grand jury subpoena was an effort to obstruct the Government’s investigation, and was also an effort to mislead the federal Grand Jury,” stated PA-OIG Inspector General Nestor. “These actions are particularly serious given that Servider had been an attorney. The PA-OIG thanks its law enforcement partners for the cooperative effort exhibited throughout this investigation and prosecution.”
In March 2013, Servider learned that federal law enforcement agencies were investigating Vertuccio for receiving unreported income – including Rolex watches and other expensive jewelry – from Crimson Corporation, a construction company that he controlled as a silent partner. After a grand jury subpoena was served on a jewelry store, Servider and Vertuccio agreed to alter the store’s receipts and invoices by removing any mention of Vertuccio. As part of the scheme, Servider also instructed Crimson Corporation principals to destroy other evidence relevant to the grand jury investigation.
Vertuccio pleaded guilty in April 2017 to filing a false tax return and conspiracy to obstruct justice. He was sentenced to 24 months’ imprisonment in October 2018.
The government’s case is being handled by the Office’s Organized Crime & Gangs Section. Assistant United States Attorneys Tanya Hajjar and Jonathan P. Lax are in charge of the prosecution.
The Defendant: JOHN SERVIDER
Age: 56
Patterson, New YorkE.D.N.Y. Docket No. 15-CR-174 (ENV)