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Wednesday 1 May 2019
Illegal Alien Pleads Guilty to Unlawful Reentry After RemovalRead the Press Release
Gulfport, Miss. –Juan Carlos Rodriguez-Morales, 39, an illegal alien from Honduras, pled guilty today before U.S. District Judge Sul Ozerden to unlawful reentry by an alien after removal, announced U.S. Attorney Mike Hurst, and Mr. Trey Lund, Acting Field Office Director of Immigration and Customs Enforcement, Enforcement and Removal Operations in New Orleans.
Rodriguez-Morales will be sentenced by Judge Ozerden, on July 25, 2019, at 9:30 a.m. He faces a potential maximum of 2 years in prison and a $250,000 fine. He also faces being removed from the United States following the completion of any prison sentence.
On February 3, 2019, a Hancock County Sheriff’s Deputy conducted a traffic stop on Rodriguez-Morales’ vehicle for failing to yield to an emergency vehicle displaying emergency lights. Rodriguez-Morales was arrested for that offense and for driving without a license. He was convicted of both misdemeanor offenses in Hancock County. Hancock County officials notified Immigration & Customs Enforcement (ICE) Enforcement Removal Operations (ERO).
On February 6, 2019, an ERO Deportation Officer interviewed Rodriguez-Morales who confessed that he is an illegal alien from Honduras, and was later positively identified via a fingerprint scan. Rodriguez-Morales had been physically removed from the United States on multiple occasions pursuant to a lawful removal order & did not have permission to reenter. Records indicate that, beginning in 2001, Rodriguez-Morales was removed from the United States on three different occasions, before reentering the United States illegally on this most recent occasion.
U.S. Attorney Hurst praised the cooperation exhibited by the Department of Homeland Security, Immigration & Customs Enforcement, Enforcement Removal Operations, the Harrison County Sheriff’s Department and the Hancock County Sheriff’s Department. Assistant United States Attorney Stan Harris is the prosecutor on the case.
Human Smuggler Pleads Guilty to Transporting Illegal AliensRead the Press Release
Gulfport, Miss. – Paul Garza, 50, of Houston, Texas, pled guilty yesterday before U.S. District Judge Sul Ozerden to transporting illegal aliens within the United States, announced U.S. Attorney Mike Hurst, Jere T. Miles, Special Agent in Charge of U.S. Immigration & Customs Enforcement's Homeland Security Investigations in New Orleans, and Gregory K. Bovino, Chief Patrol Agent of the U.S. Border Patrol’s New Orleans Sector.
On March 22, 2019, a U.S. Border Patrol Agent conducted a traffic stop on a Dodge SUV with Texas license plates around the 40-mile marker on Interstate 10 eastbound. The agent noticed multiple indicators that smuggling actively was taking place. Ironically, the same agent had been present when the same vehicle had been previously encountered in September 2018, in Jackson, Mississippi, in an alien smuggling venture. The agent determined that none of the passengers had proper documents and that all were illegally present in the United States.
A Homeland Security Investigations Special Agent joined the investigation at the Gulfport Border Patrol Station and determined that all the other occupants of the vehicle were being smuggled by Paul Garza. Investigation revealed that front seat passenger, Paul Garza, actually was the primary driver; but, had been temporarily replaced as driver due to Garza’s becoming sleepy and weaving on the road. It also was noted that, while the vehicle was equipped with 7 seatbelts, it had 9 occupants, thereby depriving two of the occupants from wearing seatbelts.
Two of the illegal alien passengers were determined to be unaccompanied juveniles. Additionally, Ms. Catarina Ixquiactap Morales, an illegal alien from Guatemala, was determined to have unlawfully returned after removal from the United States, and is being separately prosecuted for that felony offense. All of the illegal alien passengers except for Ms. Morales, were determined to have been apprehended for the first time in the United States and were placed into administrative proceedings to be officially removed from the United States.
Garza is scheduled to be sentenced by Judge Ozerden on August 1, 2019 at 10:00 a.m., and faces a potential maximum 5 years imprisonment, as well as 3 years supervised release, a maximum $250,000 fine, and special assessments that could total $5,100. Garza is a U.S. Citizen living in the Houston, Texas, area.
U.S. Attorney Hurst praised the cooperation exhibited by the Department of Homeland Security, United States Border Patrol, and by Homeland Security Investigations. Assistant United States Attorney Stan Harris is the prosecutor for the case.
High Desert Pharmacist Pleads Guilty to Illegal Distribution of Prescription Opioids and Laundering the Proceeds of the Illicit SalesRead the Press Release
LOS ANGELES – A High Desert pharmacist has pleaded guilty to a federal charge of illegally distributing the opioid oxycodone, admitting that she filled hundreds of counterfeit prescriptions.
Pauline Tilton, 49, of Hesperia, a licensed pharmacist and the owner of Oasis Pharmacy in Victorville, pleaded guilty Monday to one count of distribution of oxycodone and one count of money laundering related to more than a quarter millions dollars of revenue generated by the illegal sales.
In conjunction with Tilton’s guilty pleas, Oasis Pharmacy also pleaded guilty Monday to the same two felony offenses.
According to court documents, over the course of just one year that ended in July 2017, Tilton filled at least 345 fraudulent prescriptions for oxycodone. The prescriptions were written under the name and DEA registration number of a retired doctor. Tilton admitted knowing the prescriptions were fraudulent, outside the usual scope of professional practice, and without a legitimate medical purpose.
As a result of the 345 prescriptions, Tilton and Oasis Pharmacy illegally diverted approximately 62,100 tablets of oxycodone. Many of the fraudulent oxycodone prescriptions also included prescriptions for alprazolam and promethazine with codeine. Those three drugs – oxycodone, alprazolam, and promethazine with codeine – comprise the “Holy Trinity,” a frequently abused and life-threatening cocktail of controlled substances.
In return for filling the fake prescriptions, Tilton and Oasis Pharmacy received hundreds of thousands of dollars in cash payments. Between January 2016 and June 2017, Tilton deposited $268,621 of illicit cash proceeds from her illegal drug distribution into three banks accounts over which Tilton held sole signature authority.
Tilton and Oasis Pharmacy pleaded guilty before United States District Judge Otis D. Wright II, who scheduled sentencing hearings on August 12 for both defendants.
When she is sentenced, Tilton will face a statutory maximum penalty of 30 years in federal prison. Oasis Pharmacy could be ordered a fine of up to $1.25 million.
This case was the first to be charged as the result of an investigation into corrupt pharmacies dubbed “Operation Faux Pharmacy.”
This case is being investigated by the Drug Enforcement Administration; the U.S. Department of Health and Human Services, Office of Inspector General; IRS Criminal Investigation; and the California Board of Pharmacy.
This matter is being prosecuted by Assistant United States Attorney Chelsea Norell of the International Narcotics, Money Laundering, & Racketeering Section.
Hartford Gang Member Sentenced to More Than 6 Years in Federal Prison for Firearm OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JOSHUA AMARAL, also known as “Ill Child,” 34, of Hartford, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 78 months of imprisonment, followed by five years of supervised release, for firearm offenses related to a shootout in Hartford’s South End in April 2017.
According to court documents and statements made in court, this matter stems from an investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department’s Vice and Narcotics Division targeting gang violence and narcotics trafficking in Hartford. The investigation revealed that Wilson Velez, also known as “Wiso,” a member of the Almighty Latin Kings Nation (“Latin Kings”), was distributing heroin and fentanyl. Velez employed family members and other Latin Kings members and associates to process, package and distribute the drugs from apartment buildings on Hamilton Street and Elliot Street in Hartford. During the investigation, law enforcement conducted multiple controlled purchases of narcotics from Velez and other members of the drug trafficking organization.
On April 28, 2017, Velez, Amaral and others were involved in a shootout after they confronted a rival drug dealer in the area of Franklin Avenue and Barker Street in Hartford. Amaral, who was armed, was shot in the leg during the gunfire exchange.
On May 1, 2018, a grand jury returned a 41-count indictment charging Velez, Amaral and eight other members and associates of the Latin Kings.
Amaral has been detained since his arrest on state charges on September 15, 2017. On February 5, 2019, pleaded guilty in federal court to one count of conspiracy to possess a firearm in furtherance of a drug trafficking crime, and one count of possession of a firearm in furtherance of a drug trafficking crime.
Velez was arrested on related federal narcotics offenses on December 7, 2017, and was subsequently released on bond. He has been detained since April 5, 2018, when his bond was revoked. On February 22, 2019, he pleaded guilty to one count of conspiracy to distribute one kilogram or more of heroin and/or 400 grams or more of fentanyl, and one count of conspiracy to use and carry a firearm in relation to, and furtherance of, a drug trafficking crime. He awaits sentencing.
The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
This case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Green Energy Fraudster Convicted at Trial for Scamming Multiple Federal Agencies, CustomersRead the Press Release
PHILADELPHIA, PA – United States Attorney William M. McSwain and Assistant Attorney General Jeffrey Bossert Clark of the Environment and Natural Resources Division (ENRD) of Department of Justice announced today that a federal jury in Reading, Pennsylvania convicted David M. Dunham, Jr. of the following crimes: conspiracy to commit wire fraud and defraud the United States; wire fraud; filing false tax documents; and obstruction of justice. The conviction stemmed from Dunham hatching and executing a scheme to defraud the Environmental Protection Agency, the Internal Revenue Service, the United States Department of Agriculture, and his customers to obtain renewable fuel credits in his “green energy” business. The government is also seeking forfeiture of approximately $1.7 million in fraudulently obtained revenue and several parcels of real estate. The trial lasted four weeks before United States District Judge Jeffrey L. Schmehl.
In Dunham’s green energy scam, he fraudulently applied for, received, and sold “credits” for selling renewable biofuels that he, in fact, did not sell and, in many instances, had never possessed in the first place. He obtained these credits from government agencies, which resulted in Dunham obtaining $50 million in fraudulent revenue. Dunham ran the scam from approximately 2010 to 2015, using his business, Smarter Fuels, and that of his co-defendant, Ralph Tomasso, who previously pleaded guilty to conspiracy to defraud federal programs.
“Though this defendant tried to deflect blame on others, his years of scamming the government and his customers has finally caught up to him,” said U.S. Attorney McSwain. “And the truth is as simple as this: Everyone has to follow the rules. You cannot lie, steal, or cover up your misdeeds. If you do, we will hold you accountable. Experience shows that fraudsters like Dunham are always looking for the next best scam. As American consumers become increasingly more concerned with energy conservation, green energy scams like the one in this case provide criminals with an easy angle. We are grateful that the jury saw through Dunham’s lies and reached the correct result.”
“Today’s conviction sends a clear message to any future fraudsters out there: crime does not pay. Especially when that crime involves defrauding American customers and multiple federal agencies,” said Assistant Attorney General Clark. “When the defendant knowingly cheated a federal government program aimed at energy conservation, he gave himself an unfair advantage over his competitors and stole millions of dollars from the American taxpayer in the process. The Department of Justice will not tolerate this type of deception and will continue to work with its law enforcement partners to root out this unlawful conduct.”
“David Dunham created an elaborate scheme that served no purpose other than to mislead and defraud the government,” said IRS Special Agent in Charge Guy Ficco. “Unfortunately for him, our special agents were able to track the movement of paperwork and uncover the deceit behind his actions. We, along with our fellow law enforcement partners and the Department of Justice, will continue to investigate and prosecute those who commit similar crimes.”
“The defendant made numerous fraudulent claims to illegally profit from the Renewable Fuel Standard (RFS) Program,” said Jessica Taylor, Director of EPA’s Criminal Investigation Division. “Today’s conviction should send a clear signal that EPA and our law enforcement partners are committed to protecting the integrity of the Energy Independence and Security Act of 2007.”
USDA-OIG Special Agent-in-Charge Bethanne M. Dinkins said, “We appreciate the commitment of the Department of Justice and the cooperative efforts of our law enforcement partners throughout this significant investigation. Mr. Dunham’s conviction at trial sends a strong message regarding the benefit of working across agency lines to protect the integrity of Government programs like the USDA Advanced Biofuel Payment Program, established in the 2008 Farm Bill as an incentive for companies to produce and use alternative fuel sources. The USDA Office of Inspector General will continue to dedicate resources to protect the Department’s programs and assets by investigating those who commit fraud and compromise the integrity of USDA programs.”
The case was investigated by the Environmental Protection Agency’s Criminal Investigation Division, the Internal Revenue Service’s Criminal Investigation Division, and the United States Department of Agriculture’s Office of Inspector General. The case is being prosecuted by Assistant United States Attorney John Gallagher and Trial Attorney Adam Cullman of the ENRD.
Green Energy Fraudster Convicted at Trial for Scamming Multiple Federal Agencies and his CustomersRead the Press Release
Assistant Attorney General Jeffrey Bossert Clark of the Department of Justice’s Environment and Natural Resources Division (ENRD) and United States Attorney William M. McSwain for the Eastern District of Pennsylvania announced today that a federal jury in Reading, Pennsylvania, convicted David M. Dunham Jr. of the following crimes: conspiracy to commit wire fraud and defraud the United States; wire fraud; filing false tax documents; and obstruction of justice. The conviction stemmed from Dunham hatching and executing a scheme to defraud the Environmental Protection Agency, the Internal Revenue Service, and his customers to obtain renewable fuel credits in his “green energy” business. The government is also seeking forfeiture of approximately $1.7 million in fraudulently obtained revenue and several parcels of real estate. The trial lasted four weeks before United States District Judge Jeffrey L. Schmehl.
In Dunham’s green energy scam, he fraudulently applied for, received, and sold “credits” for selling renewable biofuels that he, in fact, did not sell and, in many instances, had never possessed in the first place. He obtained these credits from government agencies, which resulted in Dunham obtaining $50 million in fraudulent revenue. Dunham ran the scam from approximately 2010 to 2015, using his business, Smarter Fuels, and that of his co-defendant, Ralph Tomasso, who previously pleaded guilty to conspiracy to defraud federal programs.
“Today’s conviction sends a clear message to any future fraudsters out there: crime does not pay. Especially when that crime involves defrauding American customers and multiple federal agencies,” said Assistant Attorney General Clark. “When the defendant knowingly cheated a federal government program aimed at energy conservation, he gave himself an unfair advantage over his competitors and stole millions of dollars from the American taxpayer in the process. The Department of Justice will not tolerate this type of deception and will continue to work with its law enforcement partners to root out this unlawful conduct.”
“Though this defendant tried to deflect blame on others, his years of scamming the government and his customers has finally caught up to him,” said U.S. Attorney McSwain. “And the truth is as simple as this: Everyone has to follow the rules. You cannot lie, steal, or cover up your misdeeds. If you do, we will hold you accountable. Experience shows that fraudsters like Dunham are always looking for the next best scam. As American consumers become increasingly more concerned with energy conservation, green energy scams like the one in this case provide criminals with an easy angle. We are grateful that the jury saw through Dunham’s lies and reached the correct result.”
“David Dunham created an elaborate scheme that served no purpose other than to mislead and defraud the government,” said IRS Special Agent in Charge Guy Ficco. “Unfortunately for him, our special agents were able to track the movement of paperwork and uncover the deceit behind his actions. We, along with our fellow law enforcement partners and the Department of Justice, will continue to investigate and prosecute those who commit similar crimes.”
“The defendant made numerous fraudulent claims to illegally profit from the Renewable Fuel Standard (RFS) Program,” said Director Jessica Taylor, Director of EPA’s Criminal Investigation Division. “Today’s conviction should send a clear signal that EPA and our law enforcement partners are committed to protecting the integrity of the Energy Independence and Security Act of 2007.”
“We appreciate the commitment of the Department of Justice and the cooperative efforts of our law enforcement partners throughout this significant investigation,” said USDA-OIG Special Agent-in-Charge Bethanne M. Dinkins. “Mr. Dunham’s conviction at trial sends a strong message regarding the benefit of working across agency lines to protect the integrity of Government programs like the USDA Advanced Biofuel Payment Program, established in the 2008 Farm Bill as an incentive for companies to produce and use alternative fuel sources. The USDA Office of Inspector General will continue to dedicate resources to protect the Department’s programs and assets by investigating those who commit fraud and compromise the integrity of USDA programs.”
The case was investigated by the Environmental Protection Agency’s Criminal Investigation Division, the Internal Revenue Service’s Criminal Investigation Division, and the United States Department of Agriculture’s Office of Inspector General. The case is being prosecuted by Trial Attorney Adam Cullman of the Environmental Crimes Section and Assistant United States Attorney John Gallagher.
Georgia Man Sentenced for Stealing from the Accounts of the Elderly andRead the Press Release
St. Louis – Omar Fandino, 25, of Suwanee, GA, was sentenced to 30 months in prison for cloning access devices of elderly victims to obtain cash and merchandise. He appeared in federal court today before U.S. District Judge Ronnie L. White who ordered Fandino to pay $29,551.42 in restitution.
According to court documents, Fandino traveled to the St. Louis area and rented a vehicle between September 23rd and October 3, 2016. He traveled throughout the area using access devices embedded with the account numbers of individuals to purchase merchandise, money orders, and gift cards and to initiate automated teller machine withdrawals. The account holders were between the ages of 59 and 86, and the final victim was a disabled person sharing an account with her 72-year-old mother.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Tracy Berry is handling the case for the U.S. Attorney’s Office as part of the Department of Justice Elder Justice Initiative.
The Department of Justice Elder Justice Initiative is dedicated to investigating and prosecuting financial crimes targeting older adults. The Eastern District of Missouri Identity Theft Task Force is a group of federal, state and local law enforcement agencies working together to combat identity theft and its related crimes across the St. Louis Community.
Gas Marketer B. Charles Rogers Gas and Three Individuals Agree to Pay $4.375 Million to Resolve Royalty Fraud AllegationsRead the Press Release
Gas marketer B. Charles Rogers Gas Ltd. (BCR), which operated in the San Juan Basin area of New Mexico and southern Colorado, and its owners Billy Charles Rogers Jr. and Wynon Rogers, of Fort Worth, Texas, have agreed to pay $3.575 million to resolve False Claims Act (FCA) allegations that they caused reduced mineral royalty payments to the United States, the Department of Justice announced today. In addition, Thomas R. Lutner III, of Katy, Texas, who worked with BCR while employed as a gas supply manager at a natural gas distributor based in Houston, Texas, has agreed to pay $800,000 to resolve FCA allegations relating to his role in BCR’s alleged royalty fraud.
“The Department of Justice is committed to ensuring that those who remove valuable assets from public or Indian lands pay a fair price for those assets,” said Assistant Attorney General Jody Hunt, of the Department of Justice’s Civil Division. “We will continue to pursue claims against those who evade, or cause others to evade, their royalty obligations.”
“Businesses that underpay for our nation’s natural resources must be held to account,” said U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
The United States alleged that, while operating as a gas marketer in the San Juan Basin, BCR, at the direction of Mr. and Mrs. Rogers and Mr. Lutner, issued to producers false transaction statements in connection with BCR’s gas purchases. Those transaction statements allegedly underreported the volume and value of the natural gas liquids that BCR purchased. The United States alleged that many of the producers had federal gas leases, and that BCR’s fraudulent conduct caused those producers to underpay royalties owed to the United States on gas removed from those leases. BCR, Mr. and Mrs. Rogers, and Mr. Lutner have admitted and accepted responsibility for making and using, or causing to be made and used, false records that were material to producers’ obligations to pay royalties to the United States.
“The Department of the Interior (DOI) Office of the Inspector General (OIG) is committed to working with the Department of Justice and the Office of Natural Resources Revenue to ensure that public oil and gas revenues are properly accounted for and collected on behalf of the American public and all mineral interest owners,” said Ron Gonzales, Special Agent in Charge of the DOI OIG Energy Investigations Unit.
The civil settlement was the result of a coordinated effort by the Justice Department’s Civil Division, Commercial Litigation Branch; the U.S. Attorney’s Office for the Northern District of Texas; and the DOI OIG.
Except to the extent of the facts admitted by the settling parties, the claims resolved by the settlement agreement are allegations only and there has been no determination of liability.
Four Members of the Violent “Murdaland Mafia Piru” Bloods Gang Convicted of Federal Racketeering and Drug Conspiracies and Related Charges after Six-Week TrialRead the Press Release
Defendants Committed Gun Violence in Northwest Baltimore City and Baltimore County, Including with Assault Rifle
Baltimore, Maryland – Late on April 30, 2019, a federal jury convicted the following four defendants for racketeering and drug trafficking conspiracies, as well as firearms and other related charges connected to their participation in the gang activities of Murdaland Mafia Piru (MMP), a subset of the Bloods gang:
Dante Bailey, a/k/a “Gutta,” “Almighty,” and “Wolf,” age 40, of Windsor Mill, Maryland;
Jamal Lockley, a/k/a “T-Roy” and “Droid,” age 40, of Baltimore;
Corloyd Anderson, a/k/a “Bo,” age 36, of Owings Mills, Maryland; and
Shakeen Davis, a/k/a “Creams,” age 24, of Baltimore.The jury convicted co-defendant Randy Banks, a/k/a “Dirt,” age 41, of Baltimore, of the drug trafficking conspiracy. He was found not guilty of the racketeering conspiracy.
The guilty verdicts were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Commissioner Michael Harrison of the Baltimore Police Department; Chief Terrence B. Sheridan of the Baltimore County Police Department; Baltimore City State’s Attorney Marilyn J. Mosby; and Baltimore County State’s Attorney Scott Shellenberger.
“These gang members brought terror and death to Baltimore and Baltimore County neighborhoods with guns and drugs,” said U.S. Attorney Robert K. Hur. “Now they face up to life in federal prison, where there are no suspended sentences and no parole—ever. I urge anyone who’s thinking of following these defendants’ example: Please, put down the guns and save a life—maybe even your own.”
“The gun violence resulting from these gang turf wars and rivalries is tearing this city apart,” said ATF Baltimore Special Agent in Charge Rob Cekada. “We remain committed in our mission to identify, investigate, and incarcerate anyone using firearms to commit these violent crimes.”
According to the evidence presented at the six-week trial, MMP, also known as the “Mob” or “Mobsters,” is a violent subset of the Bloods gang that operates in Maryland and elsewhere. MMP was modeled after the Italian Mafia, and was organized hierarchically, with Dante Bailey as “the Don” at the top and various “Bosses,” “Underbosses,” “Capos,” “Lieutenants,” and “Mobsters” underneath. For many years, MMP controlled the drug trade in large swaths of Northwest Baltimore City and neighboring Baltimore County. The gang’s drug shop in the 5200 block of Windsor Mill Road was particularly lucrative due to its close proximity to Interstate 70, and it frequently attracted drug customers driving from Western Maryland and neighboring states. MMP’s members enriched themselves through drug trafficking and other criminal activities, and used violence and threats of violence to intimidate or retaliate against witnesses, protect the gang’s territories, enforce debts, and eliminate rivals.
According to trial testimony, one of the founding principles of the gang was a rule against cooperation with law enforcement. Violations of this rule were punishable by death. MMP members enhanced their status within the gang by carrying out acts of violence against rivals. For instance, members could earn a lightning bolt tattoo for “killing for the Mob.” Several MMP members, including Dante Bailey, have lightning bolt tattoos on their faces or bodies. MMP members used social media websites to assert the gang’s claim to particular drug territories, intimidate rival gangs and drug traffickers, enhance MMP’s status, and enhance members’ status within the gang. MMP members and associates posted photographs and rap videos to these social media websites in which they flaunted firearms and threatened to kill those who stood in the way of the gang. The evidence proved that members and associates of MMP participated in the gang’s affairs through a pattern of racketeering activities, including murder, extortion, witness tampering and retaliation, and drug distribution.
For example, on February 12, 2015, Dante Bailey murdered James Edwards for showing disloyalty to the gang. Bailey shot Edwards to death in the 300 block of Collins Avenue, using the same gun he had used to shoot at rivals in the 5200 block of Windsor Mill Road three nights earlier. On May 30, 2015, Shakeen Davis attempted to murder two rivals in the 5200 block of Windsor Mill Road, firing multiple rounds at them with an assault rifle in broad daylight at a busy intersection. In September 2017, while in pretrial custody, the gang’s leader, Dante Bailey, caused a letter to be mailed to a co-conspirator that directed the murder of a co-defendant who was cooperating with law enforcement. ATF Special Agents recovered the hit letter from the co-conspirator’s residence, as well as a recently purchased firearm.
The evidence proved that Randy Banks was part of the drug conspiracy, which began in at least 2011 and distributed narcotics, including heroin, crack cocaine, and powder cocaine.
Bailey faces a mandatory life sentence for murder in aid of racketeering. Lockley, Anderson, and Davis each face a maximum of life in prison for the racketeering and drug conspiracies. Lockley faces a mandatory minimum of 25 years in prison for the drug conspiracy. Anderson faces a mandatory minimum of 15 years in prison for possession of a firearm by a felon. Davis faces a mandatory minimum sentence of 10 years in prison for the drug conspiracy. Banks faces a maximum sentence of 20 years in prison for the drug conspiracy. U.S. District Judge Catherine C. Blake has not yet scheduled sentencing for the defendants.
Twenty co-defendants previously pleaded guilty to their roles in the conspiracies. The final defendant, Sydni Frazier, was part of this trial, but had a mistrial declared after his attorney could not continue due to health reasons. His new trial date has not yet been scheduled. He is the final defendant of the 26 indicted in 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 its 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.
United States Attorney Robert K. Hur praised the ATF, the Baltimore City and Baltimore County Police Departments, and the Baltimore City and Baltimore County State’s Attorney’s Offices for their work in the investigation and prosecution. Mr. Hur thanked Assistant United States Attorneys Christina Hoffman and Lauren E. Perry, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
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Fort Pierce Felon Sentenced to Prison for Unlawfully Possessing a Firearm and More Than Two Pounds of MarijuanaRead the Press Release
Jose Antonio Morales, 33, of Fort Pierce, was sentenced by U.S. District Judge Robin L. Rosenberg to a total of 84 months in prison today, after having been convicted at trial of being a felon unlawfully in possession of a firearm and possessing marijuana with the intent to distribute the controlled substance (Case No. 18-Cr-14056).
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Ari C. Shapira, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office and Ken J. Mascara, Sheriff, St. Lucie County Sheriff’s Office, made the announcement.
According to the court record, including evidence introduced during the trial in West Palm Beach, in June 2018, law enforcement seized two pounds of high-grade marijuana and a loaded firearm from a safe in Morales’ bedroom while executing a search warrant at his residence in Fort Pierce. When the search warrant was executed, Morales’ residence was occupied by five children. A toddler was sleeping within a few feet of the safe where the loaded firearm and two pounds of marijuana were discovered.
Morales is a convicted felon and was prohibited, by law, to possess a firearm and/or ammunition.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the ATF and St. Lucie County Sheriff’s Office in this matter. The case was prosecuted by Assistant U.S. Attorneys Michael D. Porter and Marton Gyires.
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.
Former West Virginia Jail Internal Affairs Officers Charged with Civil Rights OffenseRead the Press Release
Austin Garland Burke, 64, and Timmy Allen Kemper, 58, were indicted today for the use of unlawful force on a pretrial detainee at the Western Regional Jail in Barboursville, West Virginia, while they were acting as internal affairs officers with the West Virginia Regional Jail and Correctional Facility Authority, announced Assistant Attorney General Eric Dreiband of the Department of Justice’s Civil Rights Division, U.S. Attorney for the Southern District of West Virginia Michael B. Stuart, and FBI Pittsburgh Division Special Agent in Charge Robert A. Jones.
Burke and Kemper are charged with one count of deprivation of rights under color of law. According to the indictment, on Feb. 27, 2015, Burke and Kemper were responsible for the use of unlawful force against the detainee, who was injured when a flashbang grenade and a stinger grenade were deployed in his cell and he was then hogtied and transported in a K-9 vehicle to another correctional facility. The indictment also alleges that the defendants’ acts involved the use of a dangerous weapon and resulted in bodily injury to the detainee.
The count carries a maximum penalty of 10 years of imprisonment. An indictment is merely an accusation and the defendant is presumed innocent unless proven guilty.
This case was investigated by the FBI Pittsburgh Division, Huntington, West Virginia Resident Agency. It is being prosecuted by Trial Attorneys Olimpia E. Michel and Kathryn E. Gilbert of the Department of Justice’s Civil Rights Division and Assistant United States Attorney Rachel Kincaid for the Southern District of West Virginia.
Former University Professor Pleads Guilty to Traveling to Missouri for Sex with a MinorRead the Press Release
KANSAS CITY, Mo. – A former Ohio university professor pleaded guilty in federal court today to traveling to Kansas City, Mo., to engage in sexual activity with a person whom he believed to be a 14-year-old girl.
Kevin Connor Armitage, 53, pleaded guilty before U.S. District Judge Brian C. Wimes to traveling across state lines to engage in illicit sexual conduct with a minor. Armitage was a professor of American studies at Miami University in Oxford, Ohio.
According to today’s plea agreement, Armitage maintained a profile on a website that allows registered members to exchange information regarding commercial sex activity. The website’s public posts contain detailed accounts of sexual encounters between members and commercial sex workers, including prices and specific locations for sexual encounters. Links to well-known sex trafficking websites were posted with reviews of sexual encounters. Members of the website are able to contact the posters by private message to obtain contact information for the commercial sex workers described in the posts.
Armitage was a senior member of the website, with 576 postings that detail his prior experiences with prostitutes in Ohio, Arizona, Kansas, Colorado, and Tijuana.
On May 22, 2018, an undercover federal agent responded to a discussion thread posted by Armitage. Armitage indicated that he would be visiting the Kansas City area and was interested in recommendations. Armitage was provided a phone number for a female FBI agent, who was posing as a 14-year-old female.
After several conversations, Armitage agreed to meet the 14-year-old’s cousin at a restaurant on the Country Club Plaza in Kansas City on May 30, 2018, in order to discuss payment. Once he arrived at the restaurant, Armitage was told, he would be given the address where he could meet the 14-year-old. An FBI undercover employee, posing as the cousin, met Armitage at the restaurant and he was arrested.
Under federal statutes, Armitage is subject to a sentence of up to 30 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Teresa A. Moore. It was investigated by the Department of Health and Human Services, Office of Inspector General and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Former U.S. Army Employee at Picatinny Arsenal Sentenced to Five Years in Prison for Receiving Bribes and Directing KickbacksRead the Press Release
NEWARK, N.J. – A Pennsylvania man was sentenced today to 60 months in prison for using his position as an employee of the U.S. Army Contracting Command New Jersey (ACC-NJ) in connection with his role in two conspiracies in construction projects at Picatinny Arsenal (PICA) and Joint Base McGuire-Dix Lakehurst (Ft. Dix), U.S. Attorney Craig Carpenito announced.
Kevin Leondi, 58, of Stroudsberg, Pennsylvania, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to Counts One and Two of a superseding indictment charging him with conspiring to defraud the United States by soliciting and accepting bribes, and conspiring to steer kickbacks from one conspirator to another. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Leondi represented the Army in renovation projects at PICA and Ft. Dix. A company referred to in the indictment as “Construction Company No. 1” served as a Job Order Contractor, also known as a “prime contractor,” for construction projects at PICA and Fort Dix. James Conway was employed by Construction Company No. 1 as a regional project manager of large-scale projects at PICA and Ft. Dix. George Grassie ran a construction, excavating and landscaping business in Pennsylvania that did subcontracting work at the bases.
From December 2010 through August 2015, Leondi solicited and accepted more than $150,000 in bribes from Grassie and others in return for task orders and other favorable assistance at the bases, and for not denying them future work. Leondi and the conspirators would disguise the bribes in the form of facially legitimate transactions, with Leondi buying vehicles and equipment from the conspirators at cut-rate prices or selling them equipment at inflated prices. In another instance, Leondi had Grassie absorb the costs that another contractor incurred in renovating property that Leondi owned in East Stroudsburg, Pennsylvania.
Leondi also admitted that he conspired to steer at least $48,000 in corporate kickbacks from Grassie to Conway to improperly obtain and reward Conway for his giving subcontracts and other favorable assistance to Grassie relating to Conway’s employer’s contracts with the federal government at PICA and Ft. Dix. The kickbacks included cash payments to help Conway pay his mortgage as well as free construction work at Conway’s home in Pennsylvania.
Grassie pleaded guilty in February 2017 to one count of conspiracy and one count of providing unlawful kickbacks for his role in the bribery and kickback conspiracies. Conway pleaded guilty to accepting unlawful kickbacks and a wire fraud charge involving other fraudulent conduct in August 2016. Both defendants are awaiting sentencing.
In addition to the prison term, Judge Wigenton sentenced Leondi to three years of supervised release and fined him $25,000.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie; the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh-Alistair Barzey; and the U.S. Army, Major Procurement Fraud Unit, Criminal Investigation Command, under the direction of Special Agent in Charge Larry Scott Moreland, with the investigation leading to today’s sentencing.
The government is represented by Senior Trial Counsel Leslie Faye Schwartz and Senior Trial Counsel Mark J. McCarren, of the U.S. Attorney’s Office’s Special Prosecutions Division.
Former CIA Officer Pleads Guilty to Conspiracy to Commit EspionageRead the Press Release
ALEXANDRIA, Va. – A former Central Intelligence Agency (CIA) case officer pleaded guilty today to conspiring to communicate, deliver and transmit national defense information to the People’s Republic of China.
“Those Americans entrusted with our government’s most closely held secrets have a tremendous responsibility to safeguard that information,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Instead of embracing that responsibility and honoring his commitment to not disclose national defense information, Lee sold out his country, conspired to become a spy for a foreign government, and then repeatedly lied to investigators about his conduct. This prosecution should serve as a warning to others who would compromise our nation’s secrets and betray our country’s trust. My thanks to the prosecutors, agents and our intelligence community partners for their terrific work on this important case.”
According to court documents, Jerry Chun Shing Lee, 54, left the CIA in 2007 and began residing in Hong Kong. In April 2010, two Chinese intelligence officers (IOs) approached Lee and offered to pay him for national defense information he had acquired as a CIA case officer. The IOs also told Lee they had prepared for him a gift of $100,000 cash, and they offered to take care of him “for life” in exchange for his cooperation.
Beginning sometime in May 2010 and continuing into at least 2011, Lee received requests for information, or taskings, from the Chinese IOs. The majority of the taskings asked Lee to reveal sensitive information about the CIA, including national defense information. On May 14, 2010, Lee made or caused to be made a cash deposit of $138,000 HKD (approximately $17,468 in USD) into his personal bank account in Hong Kong. This would be the first of hundreds of thousands of dollars (USD equivalent) in cash deposits Lee made or caused to be made into his personal HSBC account from May 2010 through December 2013.
“This is the third case in less than a year in which a former US intelligence officer has pled or been found guilty of conspiring with Chinese intelligence services to pass them national defense information,” said Assistant Attorney General Demers. “Every one of these cases is a tragic betrayal of country and colleagues. The National Security Division will continue to prosecute individuals like Lee who abuse their former access to classified information for financial gain while threatening the security of America. Many thanks to the agents, analysts and prosecutors whose work led to today’s outcome.”
On May 26, 2010, Lee created on his laptop computer a document that described, among other things, certain locations to which the CIA would assign officers with certain identified experience, as well as the particular location and timeframe of a sensitive CIA operation. After Lee created this document, he transferred it from his laptop to a thumb drive. The document included national defense information of the United States that was classified at the Secret level.
In August 2012, the FBI conducted a court-authorized search of a hotel room in Honolulu, Hawaii registered in Lee’s name. The search revealed that Lee possessed the thumb drive within his personal luggage. The FBI forensically imaged the thumb drive and later located the document in the unallocated space of the thumb drive, meaning that it had been deleted. The search also revealed that Lee possessed a day planner and an address book that contained handwritten notes made by Lee that mostly related to his work as a CIA case officer prior to 2004. These notes included, among other things, intelligence provided by CIA assets, true names of assets, operational meeting locations and phone numbers, and information about covert facilities.
“Today’s guilty plea is an example of how the FBI and the Department of Justice successfully pursue threats to our nation’s security and intelligence,” said Nancy McNamara, Assistant Director in Charge of the FBI's Washington Field Office. “U.S. Government employees are entrusted by the American people to keep our country safe and secure from adversaries. The targeting of former U.S. security clearance holders by Chinese intelligence services is a constant threat we face, and the FBI will continue to combat these threats and guard our nation against those who conspire to compromise our national security. I would like to thank the hardworking people of the FBI who work each day to defend our security and intelligence.”
During 2012, Lee had a series of interviews with the CIA. Throughout these interviews, in response to questions about what the IOs had wanted from him, Lee intentionally failed to disclose that he had received taskings from them. In May 2013, the FBI conducted three interviews with Lee. During one of those interviews, Lee admitted that he had received taskings but stated that he had not kept the written requests because they would tend to incriminate him.
“Today, Mr. Lee accepts responsibility not only for his crimes but also for their dangerous ramifications,” said John Brown, Assistant Director for Counterintelligence for FBI. “By knowingly aiding a foreign government, Mr. Lee put our country’s national security at serious risk and also threatened the safety and personal security of innocent people, namely his former intelligence colleagues. He deserves to answer for his treachery and he will do so as a result of the dedication of the FBI’s Counterintelligence Division, the Washington Field Office, and the Department of Justice in pursuing this case.”
The FBI interviewers also confronted Lee with the sensitive document discovered on the thumb drive. Lee falsely denied that he possessed it, claimed not to know who created it, and denied knowing why it would have been on his computer. He also denied deleting the document. Approximately one week later, in another FBI interview, Lee admitted that he created the document in response to two taskings from the IOs and transferred it to a thumb drive. He also said he thought about giving it to the IOs but never did.
In a January 2018 interview with the FBI, Lee falsely denied that he ever kept any work-related notes at home. When shown a photocopy of the front covers of the day planner and address book described above, as well as a copy of his handwriting therein, Lee falsely denied that he possessed the notebooks while transiting through Hawaii in August 2012. Lee also falsely denied that either of the books contained notes from asset meetings but conceded that any such notes would be classified. Further, Lee falsely denied that he ever put the sensitive document on a thumb drive, notwithstanding the fact that he had admitted having done so when interviewed by FBI agents in May 2013. Finally, Lee also falsely told the interviewing agents that in drafting this document he was writing down things “more [like] a diary thing,” notwithstanding the fact that in May 2013 he had told FBI agents that he had created the document in response to two taskings from the Chinese IOs.
Lee pleaded guilty to conspiracy to deliver national defense information to aid a foreign government and faces a maximum penalty of life in prison when sentenced on August 23. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, John C. Demers, Assistant Attorney General for National Security, and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after Senior U.S. District Judge T.S. Ellis III accepted the plea. Assistant U.S. Attorney Neil Hammerstrom and Trial Attorneys Patrick T. Murphy and Adam L. Small of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case with assistance from Assistant U.S. Attorney Inayat Delawala.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-89.
Former CIA Officer Pleads Guilty to Conspiracy to Commit EspionageRead the Press Release
A former Central Intelligence Agency (CIA) case officer pleaded guilty today to conspiring to communicate, deliver and transmit national defense information to the People’s Republic of China. Assistant Attorney General for National Security John C. Demers, U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia, Assistant Director for Counterintelligence John Brown of the FBI and Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office made the announcement after Senior U.S. District Judge T.S. Ellis III accepted the plea.
According to court documents, Jerry Chun Shing Lee, 54, left the CIA in 2007 and began residing in Hong Kong. In April 2010, two Chinese intelligence officers (IOs) approached Lee and offered to pay him for national defense information he had acquired as a CIA case officer. The IOs also told Lee they had prepared for him a gift of $100,000 cash, and they offered to take care of him “for life” in exchange for his cooperation.
Beginning sometime in May 2010 and continuing into at least 2011, Lee received requests for information, or taskings, from the Chinese IOs. The majority of the taskings asked Lee to reveal sensitive information about the CIA, including national defense information. On May 14, 2010, Lee made or caused to be made a cash deposit of $138,000 HKD (approximately $17,468 in USD) into his personal bank account in Hong Kong. This would be the first of hundreds of thousands of dollars (USD equivalent) in cash deposits Lee made or caused to be made into his personal HSBC account from May 2010 through December 2013.
“This is the third case in less than a year in which a former US intelligence officer has pled or been found guilty of conspiring with Chinese intelligence services to pass them national defense information,” said Assistant Attorney General Demers. “Every one of these cases is a tragic betrayal of country and colleagues. The National Security Division will continue to prosecute individuals like Lee who abuse their former access to classified information for financial gain while threatening the security of America. Many thanks to the agents, analysts and prosecutors whose work led to today’s outcome.”
“Those Americans entrusted with our government’s most closely held secrets have a tremendous responsibility to safeguard that information,” said U.S. Attorney Terwilliger. “Instead of embracing that responsibility and honoring his commitment to not disclose national defense information, Lee sold out his country, conspired to become a spy for a foreign government, and then repeatedly lied to investigators about his conduct. This prosecution should serve as a warning to others who would compromise our nation’s secrets and betray our country’s trust. My thanks to the prosecutors, agents and our intelligence community partners for their terrific work on this important case.”
“Today, Mr. Lee accepts responsibility not only for his crimes but also for their dangerous ramifications” said Assistant Director Brown. “By knowingly aiding a foreign government, Mr. Lee put our country’s national security at serious risk and also threatened the safety and personal security of innocent people, namely his former intelligence colleagues. He deserves to answer for his treachery and he will do so as a result of the dedication of the FBI’s Counterintelligence Division, the Washington Field Office, and the Department of Justice in pursuing this case.”
“Today's guilty plea is an example of how the FBI and the Department of Justice successfully pursue threats to our nation's security and intelligence,” said Assistant Director McNamara. “U.S. Government employees are entrusted by the American people to keep our country safe and secure from adversaries. The targeting of former U.S. security clearance holders by Chinese intelligence services is a constant threat we face, and the FBI will continue to combat these threats and guard our nation against those who conspire to compromise our national security. I would like to thank the hardworking people of the FBI who work each day to defend our security and intelligence.”
On May 26, 2010, Lee created on his laptop computer a document that described, among other things, certain locations to which the CIA would assign officers with certain identified experience, as well as the particular location and timeframe of a sensitive CIA operation. After Lee created this document, he transferred it from his laptop to a thumb drive. The document included national defense information of the United States that was classified at the Secret level.
In August 2012, the FBI conducted a court-authorized search of a hotel room in Honolulu, Hawaii registered in Lee’s name. The search revealed that Lee possessed the thumb drive within his personal luggage. The FBI forensically imaged the thumb drive and later located the document in the unallocated space of the thumb drive, meaning that it had been deleted. The search also revealed that Lee possessed a day planner and an address book that contained handwritten notes made by Lee that related to his work as a CIA case officer prior to 2004. These notes included, among other things, intelligence provided by CIA assets, true names of assets, operational meeting locations and phone numbers, and information about covert facilities.
During 2012, Lee had a series of interviews with the CIA. Throughout these interviews, in response to questions about what the IOs had wanted from him, Lee intentionally failed to disclose that he had received taskings from them. In May 2013, the FBI conducted three interviews with Lee. During one of those interviews, Lee admitted that he had received taskings but stated that he had not kept the written requests because they would tend to incriminate him.
The FBI interviewers also confronted Lee with the sensitive document discovered on the thumb drive. Lee falsely denied that he possessed it, claimed not to know who created it, and denied knowing why it would have been on his computer. He also denied deleting the document. Approximately one week later, in another FBI interview, Lee admitted that he created the document in response to two taskings from the IOs and transferred it to a thumb drive. He also said he thought about giving it to the IOs but never did.
In a January 2018 interview with the FBI, Lee falsely denied that he ever kept any work-related notes at home. When shown a photocopy of the front covers of the day planner and address book described above, as well as a copy of his handwriting therein, Lee falsely denied that he possessed the notebooks while transiting through Hawaii in August 2012. Lee also falsely denied that either of the books contained notes from asset meetings but conceded that any such notes would be classified. Further, Lee falsely denied that he ever put the sensitive document on a thumb drive, notwithstanding the fact that he had admitted having done so when interviewed by FBI agents in May 2013. Finally, Lee also falsely told the interviewing agents that in drafting this document he was writing down things “more [like] a diary thing,” notwithstanding the fact that in May 2013 he had told FBI agents that he had created the document in response to two taskings from the Chinese IOs.
Lee pleaded guilty to conspiracy to deliver national defense information to aid a foreign government and faces a maximum penalty of life in prison when sentenced on Aug. 23, 2019. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorney Neil Hammerstrom and Trial Attorneys Patrick T. Murphy and Adam L. Small of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case, with assistance from Assistant U.S. Attorney Inayat Delawala.
Federal Grand Jury Indicts Tuscaloosa Man Previously Convicted of Felony MurderRead the Press Release
BIRMINGHAM – A federal grand jury indicted a Tuscaloosa man for being a felon in possession of a firearm announced U.S. Attorney Jay E. Town and ATF Special Agent in Charge Marcus Watson.
A one-count indictment filed in U.S. District Court charges MONTEZ VANTERUS SPRADLEY, 36, with felon in possession of a firearm. The firearm was seized by the Tuscaloosa Police Department after responding to a domestic disturbance at an apartment on March 26, 2019. Spradley is prohibited from possessing firearms because he has prior state court convictions in Jefferson County for felony murder, intimidating a witness, unlawful possession of a controlled substance with the intent to distribute, unlawful possession of a controlled substance, and second degree assault.
“Individuals with felony convictions, especially those involving violence and drugs, will answer to federal charges if they are caught with firearms,” Town said. “The U.S. Attorney’s Office appreciates the thorough investigation by the Tuscaloosa patrol officers at the scene and the ATF Task Force Officer’s quick preparation of this case for a federal charge. Criminals should be aware that every level of law enforcement is working together to get them off of the streets...and it’s working!”
“ATF’s Crime Gun Intelligence Centers are the driving force to reduce the violent crime that plagues our neighborhoods,” Watson said. “This indictment illustrates the effective partnerships with law enforcement and the community.”
If convicted, Spradley qualifies as an armed career criminal and will face a mandatory minimum sentence of 15 years in prison.
ATF investigated the case, which Assistant United States Attorney Alan Baty is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
East Bridgewater Man Pleads Guilty to Fentanyl ConspiracyRead the Press Release
BOSTON – An East Bridgewater man pleaded guilty today in federal court in Boston in connection with fentanyl trafficking.
Joshua Siereveld, 38, pleaded guilty to conspiracy to distribute and possess with the intent to distribute 400 grams or more of fentanyl, and possession with intent to distribute 40 grams or more of fentanyl. U.S. Senior District Court Judge Geoerge A. O’Toole Jr. scheduled sentencing for Sept. 16, 2019. Siereveld has been in custody since his arrest in March 2018.
From December 2017 through January 2018, investigators intercepted hundreds of communications between Siereveld and his source of supply in Lawrence. Over the course of two months, Siereveld purchased over a kilogram and a half of fentanyl, assisted by co-defendant Justin Brunick, 29, of Rockland, who served as a courier for several transactions. After a fentanyl pickup on March 14, 2018, investigators stopped Siereveld, seized approximately 130 grams of fentanyl, and arrested him.
Brunick pleaded guilty to his role in the fentanyl conspiracy on April 19, 2019; his sentencing is scheduled for July 17, 2019.
The charge of conspiracy for over 400 grams of fentanyl provides for a mandatory minimum sentence of 10 years and up to life in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of up to $10 million. The charge of possession with intent to distribute and distribution of 40 grams or more of fentanyl provides for a sentence of no greater than 40 years in prison, a minimum of four years and up to a lifetime of supervised release, and a fine of up to $8 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; East Bridgewater Police Chief Scott Allen; and Pembroke Police Chief Richard D. Wall made the announcement today. Assistant U.S. Attorney Lauren A. Graber of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
Dominican National Pleads Guilty to Illegally Reentering U.S.Read the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that OLIVER JOAN UBIERA MALENO, 36, a citizen of the Dominican Republic last residing in Danbury, pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to illegal reentry by a removed alien.
According to court documents and statements made in court, in July 2002, Ubiera Maleno, who at the time was a lawful permanent resident of the U.S., was sentenced in federal court in Alaska to 37 months of imprisonment for possessing with intent to distribute a controlled substance. In December 2003, he was sentenced in state court in Harris County, Texas, to 15 years of imprisonment for possessing with intent to deliver 400 grams or more cocaine. Ubiera Maleno was removed to the Dominican Republic in August 2009 after he had served the federal sentence and a portion of the Texas sentence.
On April 19, 2018, the Danbury Police Department arrested Ubiera Maleno for drug distribution offenses. He has been detained since his arrest, and the state charges are pending.
The charge of illegal reentry carries a maximum term of imprisonment of 20 years. A sentencing date is not scheduled.
This matter is being investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations. The case is being prosecuted by Assistant U.S. Attorney Hal Chen.
Dominican National Pleads Guilty to Heroin ConspiracyRead the Press Release
BOSTON – A Dominican national pleaded guilty today in federal court in Springfield in connection with his role in a large-scale drug conspiracy that trafficked dozens of kilos of heroin and fentanyl into Springfield from Bronx, N.Y., and the Dominican Republic.
Jose Miguel Ramos, 39, pleaded guilty to one count of conspiring to distribute and possession with intent to distribute more than one kilogram of heroin. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Aug. 1, 2019.
Ramos lived in a heroin mill in Springfield where he and others packaged kilograms of heroin for retail distribution for a drug trafficking organization (DTO) based in Springfield, which was allegedly run by Alberto Marte. The investigation revealed that in approximately April of 2016, Marte paid approximately $20,000 to smuggle Ramos into the country so that Ramos could work for Marte’s DTO in Springfield. When law enforcement executed federal search warrants related to the investigation in September 2016, they recovered approximately $140,000 in cash and over six kilograms of heroin.
The charge of conspiracy to distribute more than one kilogram of heroin provides for a mandatory minimum sentence of 10 years in prison, a minimum of five years of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration’s New England Division; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Hampden County District Attorney Anthony D. Gulluni; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Acting Springfield Police Commissioner Cheryl Clapprood; Chicopee Police Chief William Jebb; Holyoke Police Chief Manny Febo; and West Springfield Police Chief Ronald Campurciani made the announcement today. Assistant U.S. Attorney Neil Desroches of Lelling’s Springfield Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Court Authorizes Service of John Doe Summonses Seeking Information About Finnish Residents Using Bank of America, Charles Schwab, and TD Bank Payment Cards Linked to Non-Finnish Bank AccountsRead the Press Release
A federal court in North Carolina authorized the Internal Revenue Service (IRS) to serve John Doe summonses on Bank of America, Charles Schwab, and TD Bank in an order that was unsealed yesterday, the Justice Department announced. The John Doe summonses seek information about persons residing in Finland that have Bank of America, Charles Schwab, or TD Bank payment cards linked to bank accounts located outside of Finland. The summonses are referred to as “John Doe” summonses because the IRS does not know the identity of the persons being investigated.
“The Department of Justice and the IRS are committed to working with the United States’ international treaty partners to identify and stop individuals using hidden offshore accounts to evade tax laws,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division. “The United States does not tolerate offshore tax evasion, nor does it sanction tax evasion committed through U.S. financial institutions.”
“Our continued success in combatting offshore tax noncompliance has been helped by the assistance we receive through the network of tax treaties around the globe,” said IRS Commissioner Charles Rettig. “Yesterday’s effort reflects that the U.S. will return this help by working under the law with tax administrators in other nations to help them in their fight against tax evasion and avoidance. A global economy should not be allowed to serve as a possible vehicle for tax evasion in any country.”
The United States petitioned the United States District Court for the Western District of North Carolina to authorize the summons at the request of the government of Finland under the tax treaty between Finland and the United States. That treaty allows the two countries to cooperate in exchanging information that is necessary for carrying out each country’s tax laws. The IRS summons seeks the identities of Finnish residents who have payment cards linked to bank accounts located outside of Finland so that the Finnish government can determine if those persons have complied with Finnish tax laws. Finland has advised the IRS that, in circumstances where the payment cards are used only at ATMs or in other transactions where authorization is by PIN code, and the cardholder need not identify himself or herself to the merchant, the cardholders cannot be identified from sources in Finland.
The filing does not allege that Bank of America, Charles Schwab, or TD Bank violated any U.S. or Finnish laws with respect to these accounts.
As described in the petition and supporting documents filed by the United States, the request is part of a foreign payment project being conducted by the Finnish Tax Administration (FTA), in which information on the use of payment cards issued by foreign financial institutions is used to identify non‑compliant Finnish taxpayers. Earlier FTA investigations of approximately 120 to 150 Finnish taxpayers who used foreign payment cards in a similar manner have yielded extremely high rates of tax non-compliance, as noted in the United States’ memo in support of the petition, which indicates that it is likely that the John Does sought by the summons are Finnish residents who are failing to report these foreign accounts and associated income.
The court order in this case authorizing this enforcement action is part of ongoing international efforts by the United States and its treaty partners to stop persons from using foreign financial accounts to evade taxes. Courts have previously approved John Doe summonses allowing the IRS to identify individuals using offshore accounts to evade their U.S. obligations, and have also approved John Doe summonses to be used to identify individuals using U.S. financial institutions or accounts to evade foreign tax obligations.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Corrections Officer Pleads Guilty to Scheme to Smuggle Opioids into MCI-NorfolkRead the Press Release
BOSTON – A former corrections officer at the Massachusetts Correctional Institute facility in Norfolk (MCI-Norfolk) pleaded guilty today in federal court in Boston in connection with a conspiracy to smuggle Suboxone strips into the facility for an inmate.
Steven J. Frazer, 29, of Cumberland, R.I., pleaded guilty to an Information charging him with one count of conspiracy to possess a controlled substance with intent to distribute. U.S. Senior District Court Judge George A. O’Toole Jr. scheduled sentencing for Sept. 16, 2019. In November 2018, Frazer was charged by criminal complaint and arrested.
Beginning around Nov. 14, 2018, Frazer, who was working as a corrections officer, arranged with a cooperating witness to smuggle Suboxone strips into MCI-Norfolk to sell to inmates. Suboxone is a Class III controlled substance used to treat heroin addiction, but some people abuse it to get high. It is coveted as contraband in prisons across the nation and particularly in New England.
Around midnight on Sunday, Nov. 18, 2018, the cooperating witness met Frazer in a South Attleboro parking lot and provided him with 40 Suboxone strips, 24 pages of K2 (a synthetic cannabinoid, which is more powerful and more dangerous than marijuana), and $2,500 in cash. After the meeting – which was audio and video recorded by law enforcement – federal agents arrested Frazer.
The charge of conspiracy to possess a controlled substance with intent to distribute provides for a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $500,000 and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Commissioner Carol A. Mici III of the Massachusetts Department of Correction made the announcement today. Assistant U.S. Attorney Eugenia M. Carris of Lelling’s Public Corruption and Special Prosecutions Unit is prosecuting the case.
Convicted Felon Sentenced to Federal Prison for Possessing a GunRead the Press Release
A two-time felon was sentenced to more than five years in federal prison today.
Roque Moreno, age 38, from Sioux City, Iowa, received the prison term after an November 19, 2018, guilty plea to one count of possession of a firearm by a prohibited person.
Evidence produced by the United States at the change of plea and sentencing hearings revealed Moreno had two prior felony convictions, and had used guns to threaten people on two occasions, once dry firing the weapon to scare an individual and on another occasion actually firing the weapon into the ground. Additionally, his criminal history revealed a history of dangerousness including five assault convictions, negligent child abuse, interference with official acts, Operating While Intoxicated, and other offenses.
Moreno was sentenced in Sioux City by Chief United States District Court Judge Leonard T. Strand. Moreno was sentenced to 70 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system. Moreno is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of the Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violence crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violence offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Sioux City, Iowa Police Department and prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-04068.
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Columbia Man Sentenced to over 5 Years on Federal Drug and Firearm ChargesRead the Press Release
Columbia, South Carolina --- United States Attorney Sherri A. Lydon announced today that Reggie Denard Goodwin, age 47, of Columbia, South Carolina, was sentenced to over 5 years in federal prison after pleading guilty to possession with intent to distribute cocaine and crack cocaine and to being a felon in possession of a firearm and ammunition.
Evidence presented to the court showed that on March 13, 2018, deputies with the Richland County Sheriff’s Department stopped Goodwin’s vehicle after observing a traffic violation. Deputies smelled marijuana and asked Goodwin, the driver, to exit the vehicle. Goodwin actively resisted arrest, struck the officer’s arm, and tried to flee. A loaded .380 caliber handgun, which was later determined to be stolen, was found in Goodwin’s pocket. Inside the car, deputies located a digital scale and baggies of cocaine, crack cocaine, and marijuana. After waiving his rights, Goodwin admitted that he tried to run because he had drugs and a gun. Goodwin was arrested on state charges and released on state bond.
Three months later, while out on that state bond from the March 2018 drug and gun offenses, Goodwin was involved in a high speed chase on June 1, 2018, after Richland County Sheriff’s Department deputies attempted to stop his truck for a traffic violation. The chase ensued through highly populated areas of Columbia, including Devine Street and Garners Ferry Road. During the chase, a deputy observed Goodwin throwing baggies out of his truck. Goodwin lost control and wrecked his truck as he crossed into oncoming traffic over a raised median at the on-ramp to I-77. Goodwin exited the truck with a handgun in his hands, which he tossed into the brush when he attempted to flee. Goodwin resisted arrest and struggled with deputies. He was arrested on state charges and released again on state bond. Thereafter, a federal complaint and arrest warrant were issued. Goodwin was arrested and remains in federal custody.
Federal law prohibits Goodwin from possessing firearms and ammunition based upon prior state convictions for possession of cocaine and possession of crack cocaine (1990); burglary 2nd degree (1990); grand larceny (1991); receiving stolen goods (1994); forgery (1996); burglary 2nd degree/strong arm robbery, possession of crack cocaine, and grand larceny (1996); burglary 2nd degree and grand larceny (1996); possession with intent to distribute marijuana (2006); and possession of crack cocaine (2006).
Senior United States District Judge Joseph F. Anderson, Jr., sentenced Goodwin to 63 months in federal prison, to be followed by a 6-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Richland County Sheriff’s Department. It was prosecuted as part of the joint federal, state, and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Project CeaseFire is South Carolina’s implementation of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. 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 prosecuted the case.
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Colombian National Sentenced for Illegal ReentryRead the Press Release
BOSTON – A Colombian national was sentenced today in federal court in Boston for illegally reentering the United States after deportation
Hector Mejia Mejia, a/k/a Hector Giraldo Mejia, 33, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to two years in prison and three years of supervised release. His sentence is to be served consecutive to a state sentence he is currently serving for cocaine trafficking. In February 2019, Mejia Mejia pleaded guilty to one count of illegal reentry of a deported alien.
Mejia Mejia has been deported from the United States on four prior occasions between 2008 and 2011, and has two prior federal convictions for illegal reentry: in 2009 out of the District of New Mexico, and one in 2010 out of the Southern District of Texas. Sometime after his last deportation, Mejia Mejia illegally reentered the United States.
United States Attorney Andrew E. Lelling and Todd Lyons, Acting Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit prosecuted the case.
Child Sexual Predator Sentenced to 140 Years in Prison for Sexual Exploitation of ChildrenRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man convicted of sexually exploiting children by producing child pornography and possessing hundreds of images and videos of child pornography, was sentenced today to 140 years in federal prison, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Division.
“Today’s sentence sends a strong message that we will hold child sexual predators accountable and bring them to justice,” said U.S. Attorney Trutanich. “Through our Project Safe Childhood initiative, in collaboration with local and federal partners, we will prosecute individuals who prey on our children and commit heinous and violent acts against them.”
A jury convicted Lonny Joseph DiTirro, 37, of four counts of sexual exploitation of children by producing child pornography and one count of possession of child pornography. United States District Judge Kent J. Dawson presided over the jury trial and sentencing hearing. After being released from custody, under the Sexual Offender Registration Notification Act (SORNA), DiTirro will be required to register as a sex offender.
According to court documents and evidence presented during the three-day jury trial, on September 10, 2015, the Las Vegas Metropolitan Police Department received a concerned citizen’s report of possible child pornography found on a SD card belonging to DiTirro. Law enforcement obtained and executed a search warrant for the SD card. A forensic examination of the SD card found 254 images and 42 videos of child pornography, depictions that included infants and toddlers being sadistically and violently sexually assaulted.
Additionally, DiTirro had organized and catalogued dozens of folders titled with the name and age of nearly 50 girls from multiple states. The folders contained nude photos and videos of the girls, including videos of DiTirro raping several girls. Law enforcement identified several victims who all testified that they met DiTirro on a social media dating application when they were under the age of 16. The victims further testified that DiTirro lied about his age, claiming he was a teenager or in his early 20s, and went as far as falsifying his birth certificate in an effort to coerce, entice, and induce the victims into various sexual activities. DiTirro recorded sex acts with the minor victims, and he also created screenshots of sexually explicit video chats of the victims.
The case was investigated by the FBI and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorneys Elham Roohani and Christopher Burton prosecuted the case.
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 U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, please visit www.justice.gov/psc.
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Brookings Man Found Guilty of Wire FraudRead the Press Release
United States Attorney Ron Parsons announced that Timothy Burns, age 50, of Brookings, South Dakota, was found guilty of five counts of wire fraud as a result of a five-day federal jury trial in Sioux Falls, South Dakota.
Each charge carries a maximum penalty of 20 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Burns and co-defendant Tobias Ritesman were indicted by a federal grand jury on January 9, 2018, after an extensive investigation by the Federal Bureau of Investigation.
Ritesman started a company called Ritesman Enterprises, Inc. in approximately 2012. Ritesman had three companies that operated under its umbrella: Tinkers and Thinkers, Tiger Consulting, and Global Aquaponics, Inc. In approximately June 2016, Ritesman formed SD Food Security, LLC.
Burns owned and operated multiple businesses in the Brookings area: Oakwood Equity Group, LLC, Concrete Contractors, Inc., and Multiply, LLC, d/b/a CF Promo, CF Gear, and I-29 Sports. Burns held these companies under a parent company called Syntech, Inc.
Ritesman purportedly sought to build an aquaponics facility in Brookings. The purpose of this facility would be to raise fish and produce. Global Aquaponics, Inc. would contribute $5.6 million to the project and own 51% of the facility. SD Food Security, LLC would contribute $5.4 million to the project—raised primarily by selling investment shares—and own 49% of the facility.
As part of their fundraising efforts, Ritesman and Burns each circulated a private placement memorandum that contained false and misleading information about the aquaponics facility. In addition, Ritesman and Burns each made false and fraudulent representations about the facility, either directly or through the salespeople they hired, in an effort to solicit investors for the project. Bank records show that Ritesman and Burns were each stealing investor money and using it for their own purposes rather than for the aquaponics facility, which was never built.
On April 18, 2019, Ritesman pled guilty to all counts he was charged with: ten counts of wire fraud and eight counts of mail fraud.
“Ritesman and Burns used the idea of what could be an innovative agricultural facility to defraud dozens of investors for their own personal gain,” said U.S. Attorney Parsons. “In South Dakota, a state with such strong agricultural roots, such criminal activity will be caught and prosecuted.”
This case was investigated by the Federal Bureau of Investigation and the U.S. Attorney’s Office. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
A presentence investigation was ordered for both Ritesman and Burns. Ritesman’s sentencing is set for July 15, 2019. Burns’ sentencing is set for July 22, 2019.
Boone County Man Sentenced to Prison for Meth DistributionRead the Press Release
CHARLESTON, W.Va. – A Boone County man who trafficked methamphetamine was sentenced to six years in federal prison, announced United States Attorney Mike Stuart. Stuart commended the investigation conducted by the Boone County Sheriff’s Office, the West Virginia State Police, the U.S. 119 Drug and Violent Crime Task Force, and the Drug Enforcement Administration.
“Meth is being trafficked in every county in the District,” said United States Attorney Mike Stuart. “We’re working hard with our federal, state and local law enforcement partners to identify meth dealers and hold them accountable.”
Shaine Ray Dingess, 41, previously pled guilty to distribution of methamphetamine. As established by public court filings and hearings, on December 12, 2017, Dingess distributed $50 worth of methamphetamine to a confidential police informant at Dingess’ residence in Nellis, West Virginia, where Dingess’ co-defendant, Bruce Lee Boardman, was present. Boardman supplied Dingess with the methamphetamine and brandished a firearm during the drug transaction. On January 10, 2018, Dingess gave a small amount of marijuana to a confidential police informant. On February 6, 2018, Dingess again sold $50 worth of ice methamphetamine to a confidential police informant. Finally, on April 11, 2018, police investigators spotted Dingess while he was walking in Nellis. When asked if he was carrying any drugs, Dingess turned over five small packages of ice methamphetamine.
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. The case was prosecuted by Assistant United States Attorneys R. Gregory McVey and Drew O. Inman.
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Biloxi Man Sentenced to over 23 Years in Prison in Large Scale Heroin OperationRead the Press Release
Gulfport, Miss. – Donald Eric McRoy, 53, of Biloxi, was sentenced today by U.S. District Judge Sul Ozerden to 278 months in federal prison, followed by five years of supervised release, for conspiracy to possess with intent to distribute heroin, announced U.S. Attorney Mike Hurst and Special Agent in Charge Jere T. Miles with Immigration and Customs Enforcement’s Homeland Security Investigations in New Orleans.
On four separate occasions in 2016, McRoy sold, directly or indirectly, quantities of heroin to an individual acting in an undercover capacity along the Gulf Coast. The investigation also revealed that McRoy was obtaining large quantities of heroin from a dealer in the Atlanta, Georgia area. Further investigation has led to the convictions of both McRoy’s supplier and his supplier’s supplier, and has thwarted a large scale heroin operation in south Mississippi.
This case was investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorney John Meynardie.#
Attorney Sentenced to Prison for Filing False Tax ReturnsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JUSTIN C. FREEMAN, 47, of Manchester, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to eight months of imprisonment, followed by one year of supervised release, for filing tax returns that substantially underreported his income. Judge Dooley also ordered Freeman to pay a $4,000 fine.
According to court documents and statements made in court, Freeman is an attorney who owns and operates his own law practice, The Law Offices of Justin C. Freeman, based in Hartford. For the 2010, 2011 and 2012 tax years, Freeman signed individual federal income tax returns that underreported more than $1.2 million in income he received from his law practice. The returns were subsequently filed by his tax preparer.
For 2010, Freeman reported $476,228 in total income, but actually earned $860,041.93. For 2011, he reported $410,002 in total income, but actually earned $1,093,147.43. For 2012, he reported $529,673 in total income, but actually earned $696,559.43. The tax loss to the IRS resulting from this criminal conduct was $419,259.
On November 28, 2018, Freeman pleaded guilty to one count of filing a false tax return.
Since learning he was under criminal investigation, Freeman has paid the $419,259 he owed for the 2010 through 2012 tax years, and an additional $3,329,527 in taxes, interest and penalties for the 2013 through 2016 tax years, and estimated payments for the 2017 through 2019 tax years. He still owes approximately $1.3 million in back taxes, interest and penalties.
Freeman, who is released on a $100,000 bond, is required to report to prison on July 1, 2019.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division, and was prosecuted by Assistant U.S. Attorney Susan L. Wines.
Atlantic City Man, Leader of Drug Trafficking Organization, Sentenced to 22 Years in PrisonRead the Press Release
CAMDEN, N.J. – An Atlantic City man was sentenced today to 264 months in prison for his role in a drug trafficking and money laundering in the Atlantic County area, U.S. Attorney Craig Carpenito announced.
Toye Tutis, 46, previously pleaded guilty before U.S. District Judge Jerome B. Simandle to Count One of a second superseding indictment, charging him with conspiracy to distribute and possess with intent to distribute cocaine, crack cocaine and heroin, and Count 13 charging him with conspiring with his long-time paramour, Jazmin Vega, 45, to launder his drug trafficking proceeds. Vega also pleaded guilty to the conspiracy to launder Tutis’ drug proceeds in Count 13 and is scheduled to be sentenced June 14, 2019.
“Defendant Tutis laundered more than just clothing at his Atlantic City laundromat – he also laundered the proceeds of his significant heroin and cocaine drug trafficking ring,” U.S. Attorney Carpenito said. “The sentence handed down today punctuates the end of both his drug trafficking and his money laundering activities, and is yet another example of our efforts to clean up the streets of Atlantic City and the towns surrounding it.”
“This defendant littered the streets of Atlantic City and surrounding areas with dangerous drugs and then washed the money through his laundromat, various businesses and multiple real estate transactions,” FBI Newark Special Agent-in-Charge Gregory W. Ehrie said. “The magnitude of his crimes may never be fully known but his actions fed a deadly drug epidemic that claims countless lives. The FBI is committed to working with our local, state and federal law enforcement partners to drive drug traffickers like Toye Tutis out of business and rid the community of these threats to public health and public safety.”
“Mr. Tutis’ actions show his main concern was making a profit off the misery of others,” said Susan A. Gibson, Special Agent in Charge of the Drug Enforcement Administration’s New Jersey Division. “His term in federal prison will allow him to experience some misery of his own. DEA and our law enforcement partners will continue to pursue those who choose to poison our community.”
According to documents filed in this case and statements made in court:
From 2010 through December 2014, Tutis operated a large-scale drug trafficking ring out of the Ta’Ja Laundromat in Atlantic City, purchasing and distributing between 150 to 450 kilograms of cocaine and approximately 26 kilograms of heroin, and laundering between $1.5 million and $3 million in drug proceeds. Tutis was aided by Vega, who admitted to laundering his drug trafficking proceeds in several ways, including through the couple’s various businesses – Ta’Ja Construction I LLC; Ta’Ja Real Estate Investors LLC; and Integrity Heating and Cooling LLC; and by purchasing more than 30 properties with tainted funds. As part of their plea agreements, Vega and Tutis have to forfeit 20 properties, cash and other assets.
In addition to the prison term, Judge Simandle sentenced Tutis to five years of supervised release.
Nine other people have pleaded guilty to participating in the drug trafficking conspiracy or other related drug trafficking in the Atlantic County area, including:
- Kabaka Atiba, 49, of Atlantic City, sentenced on Oct. 16, 2017, to 120 months in prison and five years of supervised release;
- Tozine Tiller, 45, of Absecon, sentenced on Jan. 3, 2018, to 235 months in prison and five years of supervised release;
- TeJohn Cooper, 45, of Galloway Township, sentenced on Sept. 12, 2017, to 96 months in prison and one year of supervised release;
- Ronald Douglas Byrd, 53, of Pleasantville, sentenced on July 11, 2017, to 96 months in prison and five years of supervised release;
- Kareem Taylor, 43, of Atlantic City, sentencing scheduled for June 3, 2019;
- Talib Tiller, 46, of Mays Landing, sentenced on Sept. 5, 2017, to 57 months in prison and three years of supervised release;
- John Wellman, 43, of Somers Point, sentenced on July 13, 2017, to 130 months in prison and five years of supervised release;
- Phillip Horton, 53, of Los Angeles, California, sentencing scheduled for June 3, 2019;
- and Francisco Alberto Rascon-Muracami, 25, of Obregon, Mexico, sentenced on Oct. 30, 2015, to 70 months in prison and five years of supervised release.
U.S. Attorney Carpenito credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie; the DEA’s New Jersey Division, under the direction of Special Agent in Charge Susan A. Gibson; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor Damon G. Tyner; and the Atlantic City Police Department, under the direction of Police Chief Henry White, with the investigation leading to today’s sentencing.
He also thanked the N.J. State Police; the Pennsylvania State Police, the Atlantic County Sheriff’s Office; the Bureau of Alcohol, Tobacco and Firearms; U.S. Immigration and Customs Enforcement (ICE)-Homeland Security Investigation (HSI); U.S. Postal Inspection Service; Cumberland County Sheriff’s Office and the Ventnor, Northfield and Millville police departments for their assistance.
The government is represented by Assistant U.S. Attorneys Diana Carrig of the Camden Division, Jonathan M. Peck of the Newark Division and Peter W. Gaeta of the Asset Recovery and Money Laundering Unit.
Armed Felon Sentenced to 15 Years in Federal PrisonRead the Press Release
Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan today sentenced Jerome Stancil (52, Jacksonville) to 15 years in federal prison for possessing a firearm as a convicted felon.
Stancil had been found guilty on January 31, 2019, following a bench trial.
According to court documents, Stancil was stopped by officers from the Jacksonville Sheriff’s Office for speeding. The officers discovered that Stancil was in violation of his state probation curfew and also noticed an odor of marijuana coming from Stancil’s vehicle. Officers searched Stancil’s car and found a loaded .40 caliber pistol near the driver’s seat. Stancil admitted that the firearm was his and said it was for protection.
At the time, Stancil had prior convictions in Virginia for multiple drug trafficking felonies. As a result of his prior convictions, Stancil was prohibited from possessing a firearm and qualified as an armed career criminal under federal law.
This case was investigated by the Jacksonville Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Frank Talbot.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Altoona Woman Charged with Obtaining a Controlled Substance by FraudRead the Press Release
JOHNSTOWN, Pa. – A resident of Altoona, Pa., was indicted on April 24, 2019, by a federal grand jury in Pittsburgh on a charge of violating federal narcotics law, United States Attorney Scott W. Brady announced today.
The one-count indictment named Laura M. Singh, 36, as the sole defendant.
According to the indictment presented to the court, from on or about October 17, 2017, to on or about April 18, 2018, Singh obtained a controlled substance by fraud.
The law provides for a maximum sentence of four years in prison and a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Maureen S. Sheehan-Balchon is prosecuting this case on behalf of the government.
The Department of Veterans Affairs conducted the investigation that led to the prosecution of Singh.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
ATF Thwarts Felon’s Plan to Hide Firearms EvidenceRead the Press Release
PITTSBURGH - A resident of Aliquippa, Pennsylvania, pleaded guilty in federal court to charges of illegally possessing firearms and attempting to tamper with evidence, United States Attorney Scott W. Brady announced today.
Nicholas John Padak, 31, pleaded guilty yesterday to four counts before Senior United States District Judge Donetta W. Ambrose.
In connection with the guilty plea, the court was advised that a defendant named Erik Lowry operated a gun store known as Pittsburgh Tactical Firearms (PTF). Gun dealers are required to keep records on every firearm that is acquired or disposed of by the dealership, including those that are brought in for sale, trade, or repair. An ATF review of PTF’s books showed that defendant Nicholas Padak had brought two military-style rifles in for repair. Padak has a February 19, 2014 felony conviction in Beaver County for Theft by Unlawful Taking, which precludes him from lawfully possessing a firearm or ammunition.
ATF agents approached Padak on April 11, 2016, away from his residence, and he agreed to go with them to turn over his illegal firearms. Padak then surreptitiously phoned his mother, and agents at the home Padak shared with his mother observed her carrying multiple guns outside in an effort to hide them in the trunk of a car. ATF was able to seize the six firearms and ammunition belonging to Padak before they were removed from the premises. One of those guns was a 300 Blackout caliber semi-automatic Anderson short-barreled rifle, which is required to be registered with the National Firearms Registration and Transfer Record, but was not. Padak also possessed a seventh firearm, which he purchased illegally on April 30, 2015, and later sold after picking it up from Lowry on July 30, 2015.
Erik Lowry, of McKeesport, was prosecuted and sentenced in January 2018 to 30 months in prison, followed by three years supervised release, and a fine of $30,000, for possessing an unregistered firearm, witness tampering, and attempting to tamper with evidence. Renaissance Electric, LLC, aka Pittsburgh Tactical Firearms, was also prosecuted and is no longer doing business.
Judge Ambrose scheduled Padak’s sentencing for September 3, 2019 at 10 a.m. The law provides for the forfeiture and destruction of the firearms and ammunition, as well as a total sentence of up to 50 years in prison, a fine of up to $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Ross E. Lenhardt is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) conducted the investigation leading to the successful conviction of both Lowry and Padak. 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. The government has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Attorney General announced the reinvigoration of PSN and all U.S. Attorney’s Offices were directed to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Tuesday 30 April 2019
West Virginia physician found guilty of illegally distributing drugsRead the Press Release
WHEELING, WEST VIRGINIA – Dr. George P. Naum, of Wheeling, West Virginia, was found guilty today of illegally distributing controlled substances, United States Attorney Bill Powell announced.
After a six-day trial, a jury found Naum, guilty of one count of “Conspiracy to Distribute Controlled Substances Outside the Bounds of Professional Medical Practice,” and four counts of “Aiding and Abetting the Distribution of Controlled Substances Outside the Bounds of Professional Medical Practice.” He was found not guilty of one count of “Aiding and Abetting the Distribution of Controlled Substances Outside the Bounds of Professional Medical Practice.” Naum, age 60, conspired with others to illegally distribute controlled substances from a drug treatment center, Advance Healthcare, Inc., in Weirton, West Virginia from 2008 to 2016.
“Successful prosecutions like this one are complex, time consuming, and require great effort by talented prosecutors and law enforcement agents. The vast majority of medical providers are honorable and law abiding professionals. However, our determination to bring drug dealing doctors and other medical providers who violate the criminal laws and simultaneously ignore their professional obligations to do no harm is unwavering,” said Powell.
Naum faces up to 10 years incarceration and a fine of up to $250,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Sarah E. Wagner and Robert H. McWilliams, Jr. are prosecuting the case on behalf of the government. The Drug Enforcement Administration, the Federal Bureau of Investigation, the Office of Inspector General at the U.S. Department of Health and Human Services, WV Offices of the Insurance Commissioner Fraud Division, WV Medicaid Fraud Control Unit, Office of Ohio Attorney General Health Care Fraud, Ohio Bureau of Workers’ Compensation, the Hancock-Brook-Weirton Drug Task Force, a HIDTA-funded initiative, the Greater Harrison County Drug Task Force, a HIDTA-funded initiative, West Virginia State Police, the Hancock County Sheriff’s Office, and the Weirton Police Department investigated.
These charges are the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
Senior U.S. District Judge Irene M. Keeley presided.
Union County, New Jersey, Man Charged with Armed Robbery of Business OwnerRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man was arrested and charged today for allegedly robbing a New Jersey business owner at gunpoint in February 2019, U.S. Attorney Craig Carpenito announced.
Raymond Scura, 29, of Kenilworth, New Jersey, is charged by complaint with one count of Hobbs Act robbery and one count of brandishing a firearm during a crime of violence. He is scheduled to appear this afternoon before U.S. Magistrate Judge James B. Clark III in Newark federal court. Scura previously was arrested and charged in March 2019 with wire fraud and aggravated identity theft.
According to the complaints and other documents filed in this case:
In February 2019, Scura was a customer of an internet-based business owned and operated by the victim. Scura wrote at least one fraudulent check to the victim to pay for the services of the business. When the victim insisted on cash payment, Scura drove with the victim to a bank, where Scura brandished a firearm, threatened to kill the victim, and demanded that the victim deposit a fraudulent check into the victim’s bank account and withdraw the same amount of money as set forth in the check. Scura led the victim to an ATM, where he directed the victim to insert the victim’s bank card into the ATM, asked for the victim’s PIN, input the PIN himself, and deposited the check. Scura then led the victim to a teller, where the victim withdrew the money as directed. Scura and the victim left the bank, where Scura demanded, at gunpoint, that the victim hand him the money withdrawn at the bank.
Scura was charged by complaint in March 2019 with allegedly defrauding various individuals and entities by obtaining and attempting to obtain merchandise, services, and cash. In some circumstances, Scura obtained goods and services, including a country club membership, limousine services, luxury hotel expenses, wine, and a Rolex watch, by charging such items to credit card accounts that were not his own and which he did not have authorization to access or use. Scura also wrote and presented personal checks both in his own name and in the name of victims from accounts Scura knew were either closed or held insufficient funds to cover the checks.
The count of brandishing a firearm during a crime of violence carries a mandatory minimum sentence of seven years in prison, which must be served consecutively to any other sentence imposed. The Hobbs Act robbery charge carries a statutory maximum of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. The wire fraud affecting a financial institution charge carries a statutory maximum of 30 years in prison and a $1 million fine, and the aggravated identity theft charge carries a mandatory minimum sentence of two years in prison, which must be served consecutively to any other sentence imposed.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and members of the Belleville Police Department, under the direction of Chief of Police Mark Minichini, with the investigation leading to the charges against Scura. He also thanked the Summit Police Department, the Union County Prosecutor’s Office, the Burlington County Prosecutor’s Office, and the Evesham Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Elaine K. Lou of the U.S. Attorney’s Office’s Criminal Division in Newark.
The charges and allegations against Scura are merely accusations, and he is presumed innocent unless and until proven guilty.
Defense counsel: Anthony Iacullo Esq., Clifton, New Jersey
Undocumented Alien Pleads Guilty to Assaulting Federal OfficerRead the Press Release
LAREDO, Texas – A 39-year-old Mexican national has just admitted he assaulted a Border Patrol (BP) agent with a flashlight, announced U.S. Attorney Ryan K. Patrick.
Melecio Lopez-Hernandez was arrested Feb. 7, 2019, after a BP agent encountered him walking through the brush south of Freer. He began to struggle as the agent attempted to detain him, during which time Lopez-Hernandez dislodged a flashlight that was clipped to the agent’s outer vest.
After verbally threatening him, Lopez-Hernandez then struck the agent in the head with the flashlight. The agent sustained injuries from the impact.
Sentencing has been set for Sept. 17, 2019, before U.S. District Judge Marina Garcia Marmolejo. At that time, Lopez-Hernandez faces up to 20 years in prison and a possible $250,000 fine.
He has been and will remain in custody pending that hearing
The FBI and Border Patrol conducted the investigation. Assistant U.S. Attorney Jennifer Day is prosecuting the case.
USAO Hosts Roundtable on Sexual Harassment in HousingRead the Press Release
HOUSTON - The U.S. Attorney’s Office (USAO) for the Southern District of Texas and the Department of Justice’s (DOJ) Civil Rights Division hosted a roundtable today for community organizations to discuss the problem of sexual harassment in housing, announced U.S. Attorney Ryan K. Patrick.
The event included personnel from legal aid offices, fair housing organizations, shelters and transitional housing providers, who often work with vulnerable populations and are most likely to become victims of such harassment.
The DOJ, through USAOs and the Civil Rights Division, enforces the Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. Sexual harassment is a form of sex discrimination the law prohibits.
“Sexual harassment in housing - which typically involves a landlord extorting sexual favors from vulnerable tenants - is an egregious violation of the Fair Housing Act,” said Patrick. “My office is dedicated to uncovering such violations where they exist and using every available tool to stop this unlawful and despicable behavior.”
The roundtable is part of DOJ’s Sexual Harassment in Housing Initiative. It seeks to identify barriers to reporting sexual harassment in housing, increase awareness of enforcement efforts - both among survivors and those to whom they report - and collaborate with federal, state and local partners to increase reporting and help survivors quickly and easily connect with federal resources.
The USAO is working closely with the Civil Rights Division to ensure people are aware of options to help victims experiencing sexual harassment or who experienced sexual harassment in housing in the past. Today’s roundtable was just such an example designed to increase awareness and build strong partnerships in the community and combat this problem together.
While most people are familiar with the problem of sexual harassment in the workplace, harassment also occurs in housing which the Fair Housing Act prohibits. DOJ brings cases each year involving egregious conduct, including allegations that defendants have exposed themselves sexually to current or prospective tenants, requested sexual favors in exchange for reduced rents or making necessary repairs, made unrelenting and unwanted sexual advances to tenants and evicted tenants who resisted their sexual overtures.
Unfortunately, many instances of sexual harassment in housing continue to go unreported. The investigations frequently uncover sexual harassment that has been ongoing for years or decades and identify numerous victims who never reported the conduct to federal authorities.
In October 2017, the Justice Department launched the initiative to combat sexual harassment in housing. In April 2018, the Department announced the nationwide rollout of the initiative, including three major components: a new joint Task Force with the Department of Housing and Urban Development to combat sexual harassment in housing, an outreach toolkit to leverage the Department’s nationwide network of U.S. Attorney’s Offices, and a public awareness campaign, including the launch of a national Public Service Announcement.
Since launching the initiative, the Justice Department has filed nine lawsuits alleging a pattern or practice of sexual harassment in housing. The Justice Department has filed or settled 14 sexual harassment cases since January 2017, and has recovered over $2.2 million for victims of sexual harassment in housing.
DOJ encourages anyone who has experienced sexual harassment in housing, or knows someone who has, to contact the Civil Rights Division by calling 844-380-6178 or emailing them.
Two Miami Men Plead Guilty to Aggravated Identity TheftRead the Press Release
Gulfport, Miss. – Alexey Aguilera, 38, and Jorge Alberto Perez, 57, both of Miami, Florida, pled guilty today before U.S. District Judge Sul Ozerden to aggravated identity theft, announced U.S. Attorney Mike Hurst and Special Agent in Charge Jere T. Miles with Immigration and Customs Enforcement’s Homeland Security Investigations in New Orleans.
On February 17, 2018, Aguilera and Perez were detained by the Gulfport Police Department on suspicion of credit card fraud. During the course of the investigation, it was discovered that Aguilera was in possession of illegally obtained credit card account information, and Perez was in possession of a fraudulent credit card containing illegally obtained credit card account information.
Aguilera will be sentenced by Judge Ozerden on July 31, 2019, at 10:00 a.m., and Perez will be sentenced on August 8, 2019, at 9:00 a.m. Both defendants face a mandatory penalty of 2 years in prison and a $250,000 fine.
The Gulfport Police Department and Department of Homeland Security investigated the case. The case is being prosecuted by Special Assistant United States Attorney Joshua Paul Fortenberry.
Two Men Sentenced for Cocaine ConspiracyRead the Press Release
BOSTON – Two men have been sentenced in federal court in Boston for their roles in a cocaine conspiracy operating in and around the Taunton and Worcester areas.
Angel Oyola, 36, of Caguas, Puerto Rico, was sentenced yesterday by U.S. Senior District Court Judge Douglas P. Woodlock to two years in prison and three years of supervised release. In January 2019, Oyola pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine.
Luis Elias, 44, of Worcester, was sentenced today by Judge Woodlock to 78 months in prison and four years of supervised release. In January 2019, Elias pleaded guilty to one count of conspiracy to distribute and possession with intent to distribute 500 grams or more of cocaine and one count of conspiracy to launder monetary instruments.
Oyola, Elias, and eight co-defendants, were charged in May 2018 for their roles in a large scale cocaine conspiracy operating in and around the Taunton and Worcester areas. The charges were a culmination of a nine-month investigation aimed at attacking the increased volume of cocaine flooding southern and central Massachusetts. The defendants allegedly controlled and managed a lucrative and sophisticated drug trafficking and distribution ring in the region.
In November 2017, Oyola brokered and coordinated a transaction for nine kilograms of cocaine, which were shipped from Puerto Rico to Massachusetts. Elias received multiple kilograms of cocaine when they were shipped from Puerto Rico to Worcester and also shipped and carried drug proceeds back down to Puerto Rico. In January 2018, Elias was stopped at the San Juan International Airport with $41,700 in U.S. currency in his luggage.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Bristol County District Attorney Thomas Quinn; and Fairhaven Police Chief Michael Myers made the announcement today. Assistant U.S. Attorney Lauren Graber of Lelling’s Narcotics and Money Laundering Unit is prosecuting the cases.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Costa Rican Residents Sentenced to Lengthy Prison Terms in Connection with $10 Million International Telemarketing SchemeRead the Press Release
Two individuals from Costa Rica were sentenced to 25 and 20 years in prison today for their roles in a $10 million telemarketing scheme that defrauded primarily elderly victims in the United States from call centers in Costa Rica.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney R. Andrew Murray of the Western District of North Carolina, Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service’s Charlotte Division, Acting Special Agent in Charge William Cheung of the IRS Criminal Investigation’s (CI) Cincinnati Field Office and Special Agent in Charge John Strong of the FBI’s Charlotte Field Office made the announcement.
Andrew Smith, 46, and Christopher Lee Griffin, 45, both of San Jose, Costa Rica, were sentenced by U.S. District Judge Robert J. Conrad of the Western District of North Carolina to 25 years and 20 years in prison, respectively. Judge Conrad also ordered Smith to pay $10,222,838.76 in restitution to be paid jointly and severally with his co-conspirators and forfeit $406,324.96. Griffin was ordered to pay $9,612,590.39 in restitution to be paid jointly and severally with his co-conspirators and forfeit $182,439. Following a three-day jury trial in February 2018, Smith and Griffin were each convicted of one count of conspiracy to commit wire fraud, eight counts of wire fraud, one count of conspiracy to commit money laundering, and seven counts of international money laundering.
“Andrew Smith and Christopher Lee Griffin participated in a deplorable scam to defraud hard-working elderly Americans out of millions of dollars,” said Assistant Attorney General Benczkowski. “The severe sentences imposed today represent a significant victory in our continuing efforts to fight elder fraud and protect some of the most vulnerable members of the U.S. public. These sentences should serve as a strong deterrent to anyone seeking to enrich themselves by taking part in similar scams.”
“Smith and Griffin used shameless tricks and brazen lies to convince victims their dream of financial security had come true. That dream soon turned into a devastating nightmare, one that took a financial and emotional toll on the victims, many of whom were elderly,” said U.S. Attorney Murray. “The depravity of this scheme is reflected in the sentence handed down to these two criminals, for it takes a special kind of wickedness to steal from the elderly. Today’s sentence also underscores our commitment to stopping financial scams and holding offenders accountable for their actions, no matter where they are.”
“We are proud to work alongside our federal law enforcement partners in efforts to target those individuals who take advantage of the American public, especially our vulnerable older Americans, for illegal profits,” said Inspector in Charge McGinnis. “Anyone who engages in deceptive practices like this should know they will not go undetected and will be held accountable, regardless of where they are.”
“Quite simply, the conduct in this case is egregious. This investigation uncovered a fraudulent telemarketing scheme that generated millions of dollars through a web of financial lies that preyed on countless elderly victims, all so these defendants could line their pockets with stolen money,” said IRS-CI Acting Special Agent in Charge Cheung. “These types of investigations are often solved most efficiently through a multiple-agency approach to crime fighting.”
“Years ago, our parents taught us not to talk to strangers. Their advice has proven to be timeless,” said FBI Special Agent in Charge Strong. “Strangers are reaching out to us on social media, sending us emails, calling our homes and cell phones. If you fall for a scam, you can bet your life, they will call you again. They might have a different sales pitch or a sob story, but they are the same crooks. These prison sentences should serve as a warning to the thieves, the FBI and our law enforcement partners will work tirelessly to find you and put you out of business for good.”
According to evidence presented at trial, both Smith and Griffin worked in a call center in Costa Rica in which conspirators, who posed as representatives of the U.S. Securities and Exchange Commission and the Federal Trade Commission (FTC), contacted victims in the United States to tell them that that they had won a substantial “sweepstakes” prize. After convincing victims, many of whom were elderly, that they stood to receive a significant financial reward, the conspirators told victims that they needed to make a series of up-front payments before collecting their supposed prize, purportedly for items like insurance fees, taxes and import fees. Conspirators used a variety of means to conceal their true identities, such as Voice over Internet Protocols, which made it appear that they were calling from Washington, D.C., and other places in the United States. According to trial testimony, one elderly victim who indicated she was going to stop paying was warned by a conspirator that they knew where she and her family lived.
Smith and Griffin arranged for victims to transmit payments through international wire transfers directly to Costa Rica or through “runners,” who collected money from victims in the United States and forwarded payment to Smith, Griffin and others in Costa Rica, according to evidence presented at trial. Runners dispatched by Smith and his co-conspirators met elderly victims at their homes to collect bags of cash, which they in turn remitted to Costa Rica, the evidence showed.
Smith, Griffin and their conspirators stole more than $10 million from victims, the evidence showed.
This case was investigated by the U.S. Postal Inspection Service, IRS-CI and the FBI, with assistance from the FTC and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The case is being prosecuted by Trial Attorneys William Bowne and Jennifer Farer and Assistant Chief Anna Kaminska of the Criminal Division’s Fraud Section. The U.S. Attorney’s Office for the Western District of North Carolina provided substantial assistance with this matter. The Criminal Division’s Office of International Affairs, U.S. Department of State’s Diplomatic Security Service and Bureau of Consular Affairs, along with government authorities in Costa Rica, provided critical assistance with the extradition of these defendants.
Treasurer of Hannibal Church Sentenced for Wire FraudRead the Press Release
St. Louis, MO – Donald Ray White, 69, Hannibal, MO, was sentenced to a year and a day in prison and ordered to pay restitution in the amount of $289,412.02 for embezzling monies from Antioch Baptist Church of Hannibal in which he was the treasurer in a scheme that lasted over two decades.
As treasurer of Antioch Baptist Church of Hannibal, White independently oversaw the church’s bank account. In this role, White was an authorized signatory on the bank account, made the majority of all deposits into the checking account, and was required to submit payments on behalf of the church. White was not entitled to a salary or payment for his services to the church. Investigation confirmed that while serving as treasurer, White fraudulently used the bank’s checking account to issue checks to himself and to make purchases on his behalf and the behalf of others.
Donald Ray White pleaded guilty in federal court to one felony count of wire fraud on January 4, 2019, and was sentenced today.
“Today’s sentence is the culmination of hard work and focused dedication by the Ralls County Sheriff’s Office and Hannibal Police Department,” said U.S. Attorney Jeff Jensen.
After the sentence, Ralls County Sheriff Gerry Dinwiddie echoed U.S. Attorney Jensen’s comments. He also recognized the members of the Antioch Baptist Church of Hannibal. “The strength of this church community and its members has been exemplary. They were absolutely critical in uncovering this fraud and have worked tirelessly to not let it define or diminish the church or themselves.”
The Federal Bureau of Investigation investigated this case along with the Ralls County Sheriff’s Department, the Hannibal Police Department and Bureau of Alcohol, Tobacco, Firearms & Explosives. This case was handled by Assistant United States Attorney Dianna R. Collins.
Tax Preparer Pleads Guilty to Preparing False Federal Income Returns for OthersRead the Press Release
PITTSBURGH, PA – A resident of Allegheny County, Pennsylvania, has pleaded guilty in federal court on charges of Aiding or Assisting in the Preparation or Filing of False Federal Income Tax Returns, United States Attorney Scott W. Brady announced today.
Quincy K. Denson of Clairton pleaded guilty to two counts before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, Denson, while a tax preparer at Cititax Tax Refund in Pittsburgh, prepared false federal income tax returns for other persons that included false Schedule C information, and which requested a false tax refund for the taxpayer.
Judge Fischer scheduled the sentencing for October 3, 2019 at 11 a.m. The law provides for a total sentence of three years imprisonment for each count, a fine of $250,000.00 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigation conducted the investigation that lead to the prosecution of Quincy K. Denson.
Tax Preparer Pleads Guilty to Filing Fraudulent Tax ReturnsRead the Press Release
NEW ORLEANS, LOUISIANA – DANA ALVAREZ, age 49, a resident of Holden, Louisiana, pled guilty Thursday, April 25, 2019 to conspiracy to defraud the United States with regard to tax returns announced U.S. Attorney Peter G. Strasser.
According to court documents, ALVAREZ worked for Crown Tax Service, LLC, located in Kenner, Louisiana. ALVAREZ and others conspired to defraud the United States by fraudulently minimizing tax liability and fraudulently inflating tax refunds claimed on the tax returns of Crown Tax Service’s clients, and for personal enrichment.
ALVAREZ faces 5 years of imprisonment as to Count 1, 3 years of supervised release and a possible $250,000 fine. Sentencing will occur on July 25, 2019.
U.S. Attorney Strasser praised the work of the Internal Revenue Service, Criminal Investigations Division for its work in investigating this case.
The case is being prosecuted by Trial Attorney Lauren Castaldi, Department of Justice Tax Division, and Assistant U.S. Attorney G. Dall Kammer, Supervisor, General Crimes.
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Syracuse Man Sentenced to 46 Months for Threats Against Public OfficialsRead the Press Release
SYRACUSE, NEW YORK – Stephen J. Taubert, age 61, of Syracuse, was sentenced today by Chief United States District Court Judge Glenn T. Suddaby to serve 46 months in prison, to be followed by a three-year term of supervised release, and to pay a fine of $1,000, following Taubert’s conviction after trial on charges that he threatened to kill Congresswoman Maxine Waters (D-CA 43rd District) and her staff, and separately threatened to kill former President Barack Obama. The sentence was announced by United States Attorney Grant C. Jaquith, Chief Matthew R. Verderosa, United States Capitol Police, and Special Agent in Charge Lewis Robinson, United States Secret Service, Buffalo, New York Field Office.
United States Attorney Jaquith said, “The jury unanimously found that Taubert targeted former President Obama and Representative Waters because of their race. Racist threats to kill present and former public officials are not protected free speech, but serious crimes against both the victims and the rule of law that is the cornerstone of our republic. As the trial verdict and sentence in this case illustrate, those who spew such vile, violent hatred will be held accountable.”
In March 2019, a federal jury found Taubert guilty of making several telephone calls to the Washington D.C. office of then-Minnesota Senator Al Franken in June 2017. In two of those calls, Taubert stated that he was planning to go to Washington D.C. the next day to “hang” former President Obama at his home and to kill him. In making these threats, Taubert repeatedly used vile racial slurs directed toward former President Obama.
The jury also convicted Taubert of threatening Congresswoman Maxine Waters on July 20, 2018. Taubert called the Los Angeles, California district office of Congresswoman Waters and stated that he would be at every event the Congresswoman attended and that he would kill her and every member of her staff. In making these threats, Taubert directed vile racial slurs toward Congresswoman Waters and her staff.
The evidence at trial included a recorded law enforcement interview of Taubert, during which he admitted that he called Congresswoman Waters’s office to “terrorize” her in retaliation for public statements she had previously made.
In addition to returning guilty verdicts on all three counts charged in the indictment, the trial jury made specific findings that Taubert selected his victims because of their actual or perceived race, color, or ethnicity, which provided for an enhancement under the U.S. Sentencing Guidelines based upon hate-crime motivation.
This case was investigated by the United States Capitol Police, Threat Assessment Section, and the United States Secret Service, with assistance from the Syracuse Police Department, and was prosecuted by Assistant U.S. Attorneys Michael D. Gadarian and Michael F. Perry.
St. Louis Man Sentenced for Armed Robbery of 7-11 StoreRead the Press Release
St. Louis, MO – Travion Lindsey, 20, of St. Louis, was sentenced to 108 months in prison for armed robbery charges. He appeared in federal court today before U.S. District Judge Ronnie L. White.
According to court documents, Lindsey, along with co-defendants Jevante Phillips and Ahmaad Ali, entered the 7-11 store located on Christy Avenue in South St. Louis, Missouri on October 18, 2017. The three arrived at the 7-11 in a Pontiac Aztek that had been stolen one day earlier at gunpoint by Ali and Phillips. They entered the store with firearms displayed. Their faces were covered with masks. Phillips walked around the counter and began removing lottery tickets and money from the cash register. Ali jumped over the counter and began removing the cash register’s contents. Lindsey stood guard at the door and eventually assisted in removing the money. After two minutes inside of the store, the three started taking liquor bottles, cigarettes, and candy on their way outside. The males then re-entered the Aztec and fled the area.
Phillips pled guilty in September 2018 and was sentenced to 130 months in prison in February 2019. Ahmaad Ali pled guilty in February 2019 and will be sentenced May 8, 2019.
The case was investigated by the Federal Bureau of Investigation and assisted by the St. Louis Metropolitan Police Department. Assistant U.S. Attorney Tom Mehan was handling the case for the U.S. Attorney’s Office.
Springfield Man Indicted on Federal Cocaine OffenseRead the Press Release
BOSTON – A Springfield man was arrested today and charged in federal court with distributing cocaine.
Samuel Diaz, a/k/a “Sammy,” 36, was indicted on one count of distribution and possession with intent to distribute cocaine.
The indictment alleges that, on March 24, 2015, Diaz distributed and possessed with intent to distribute cocaine.
The charge of distributing and possessing with intent to distribute cocaine provides a sentence of no greater than 20 years in prison, at least three years of supervised release, and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. Assistant U.S. Attorney Katharine A. Wagner of Lelling’s Springfield Branch Office is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
South Florida Doctor Sentenced to Prison for Tax Evasion and Disability FraudRead the Press Release
A South Florida doctor residing in Hobe Sound, Florida, was sentenced to 51 months in prison yesterday for tax evasion, wire fraud, and Social Security disability fraud, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida.
According to court documents and information provided to the court, Arthur John Kranz was a doctor specializing in psychiatry. Beginning in 2002, Kranz made a claim on his private disability policy that he was unable to work, and began receiving disability payments from his insurance company. In December 2003, Kranz submitted an application to the Social Security Administration (SSA) for disability benefits The SSA approved his application. Kranz then began receiving SSA disability payments, in addition to the private disability insurance payments. Because of the disability payments, Kranz was required to notify his insurance company and the SSA if he returned to work.
From January 2006 to March 2013, Kranz worked as a psychiatrist at a hospital in Pennsylvania and earned over $1.6 million in income. Kranz did not report his employment to either the SSA or his insurance company. Rather, in order to continue collecting disability benefits, Kranz took steps to conceal his income from the insurance company, the SSA, and the Internal Revenue Service (IRS). He directed that his income be paid to nominee individuals and sham corporations he had created to receive his payments. Kranz also filed false personal tax returns that did not report the income from his work as a psychiatrist, and provided .
fraudulent documentation to his insurance company that falsely stated that he was not working.
In addition to the term of imprisonment imposed, Kranz was order to serve three years of supervised release and pay restitution of $1,013,284.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS-Criminal Investigation and the SSA Office of Inspector General, who conducted the investigation, and Assistant Chief Charles M. Edgar, Jr. and Trial Attorneys Michael C. Boteler and Terri-Lei O’Malley of the Tax Division, who prosecuted the case with assistance from the U.S. Attorney’s Office for the Southern District of Florida.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Several Charged in Federal Drug Trafficking and Money Laundering ConspiraciesRead the Press Release
CORPUS CHRISTI, Texas – A total of six men are now in custody following the return of a 41-count indictment alleging a cocaine and marijuana trafficking conspiracy, conspiracy to commit money laundering and 39 substantive drug and money laundering violations, announced U.S. Attorney Ryan K. Patrick.
During an enforcement operation today, federal agents and local officers arrested Rodolfo Hernandez Ramos, 40, Luis Ortiz III, 39, Florentino Galvan, 77, Antonio Saenz, 52, Guadalupe Gonzalez, 39, and Ulises Francisco Cortinas, 44, all of the Brownsville and McAllen areas. Also charged is Emilio Garcia Uribe, 61.
Cortinas and Gonzalez made their initial appearances today before U.S. Magistrate Judge Ronald Morgan in Brownsville and Scott Hacker in McAllen, respectively. With the exception of Uribe, all are expected to make their appearances in Brownsville and McAllen, respectively, tomorrow. Uribe is considered a fugitive and a warrant remains outstanding for his arrest.
The indictment, returned March 13, 2019, and unsealed today, charges all seven with the drug trafficking conspiracy involving more than five kilograms of cocaine and more than 1,000 kilograms of marijuana between July 1, 2014, and March 13, 2019.
All are also charged with conspiring to conduct financial transactions with drug proceeds. They allegedly transported, transmitted and transferred U.S. currency which they knew represented the proceeds from drug trafficking from the United States to Mexico. The transactions and transportation were designed to conceal and disguise the nature, location, source, ownership and control of the drug proceeds, according to the charges.
If convicted of the drug conspiracy offense, they all face a minimum of 10 years and up to life in federal prison as well as a possible $10 million maximum fine. The money laundering conspiracy carries a potential 20 years and a fine of not more than $500,000, or twice the value of the property involved in the transaction or both.
Ramos also faces 28 additional substantive money laundering counts which carry the same 20-year-sentence. Also charged in some of these substantive money laundering counts along with Ramos are Ortiz, Cortinas and Saenz.
The indictment also includes 11 additional substantive possession with intent to distribute cocaine and/or marijuana counts against Ramos, Ortiz, Galvan and Uribe. If convicted on those charges, Ramos and Galvan face up to life imprisonment, while Ortiz and Uribe face up to 40 years in prison.
The Drug Enforcement Administration and IRS – Criminal Investigation conducted the Organized Crime Drug Enforcement Task Force investigation dubbed “Broken Blue Line.” Assistant U.S. Attorney Kenneth Cusick is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless and until convicted through due process of law.Seventh Guilty Plea in Gas Pump Skimming Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – A Philadelphia man pleaded guilty today to his role in a gas pump skimming fraud scheme in Northern Virginia and elsewhere that resulted in the theft of thousands of credit and debit cards and a loss to financial institutions and the U.S. Postal Service of nearly $500,000 in actual losses and at least $3.5 million in intended losses.
According to court documents, Timurbek Khasanov, 38, participated in a scheme that involved at least six other individuals. The scheme was carried out by attaching electronic devices known as “skimmers” to gas pump payment systems—which collected the information captured when unwitting customers swiped their payment cards at the compromised gas pumps—and then encoding the stolen card numbers onto physical payment cards. Thereafter, the encoded physical cards were used throughout Northern Virginia and elsewhere to make fraudulent ATM withdrawals and U.S. Postal Service money order purchases. Court documents show that between May and August 2017, Khasanov used these encoded physical cards to make at least $5,100 in unauthorized cash withdrawals from ATMs and to purchase at least $6,200 in U.S. Postal Service money orders.
Khasanov pleaded guilty to bank fraud and wire fraud, each of which carry maximum terms of imprisonment of 30 years, as well as aggravated identity theft, which carries a mandatory term of imprisonment of 2 years. Khasanov is scheduled to be sentenced on September 6. Actual sentences for federal crimes are typically less than the maximum penalties, and a federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
As reflected in court documents, in addition to Khasanov, the six individuals listed in the table below have been charged in connection with the same criminal conduct, have pleaded guilty to the listed offenses, and have been sentenced.
Name, Age
Hometown
Convictions
Total Sentence
Rudolf Mekhakian, 31
Van Nuys, CA
Conspiracy to Commit Bank and Wire Fraud; Aggravated Identity Theft
90 months
Radik Karapetyan, 25
North Hollywood, CA
Conspiracy to Commit Bank and Wire Fraud; Aggravated Identity Theft
78 months
Siranush Yengibaryan, 24
Van Nuys, CA
Conspiracy to Commit Bank and Wire Fraud; Aggravated Identity Theft
66 months
Armen Saplekchian, 37
Tarzana, CA
Conspiracy to Commit Bank and Wire Fraud; Aggravated Identity Theft
60 months
Mushegh Melkonyan, 28
Las Vegas, NV
Conspiracy to Commit Bank and Wire Fraud; Aggravated Identity Theft
54 months
Anatoly Zinchenko, 47
Philadelphia, PA
Conspiracy to Commit Bank and Wire Fraud
33 months
Court documents indicate that some of the above-listed defendants may face immigration consequences as a result of their convictions. For instance, Karapetyan and Yengibaryan are citizens of Armenia and green card holders, and Saplekchian is an illegal alien.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., Matthew J. DeSarno, Special Agent in Charge, Criminal Division, FBI Washington Field Office, Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after U.S. District Judge Liam O’Grady accepted the plea. Assistant U.S. Attorneys Alexander P. Berrang and Kellen S. Dwyer are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 1:18-cr-136, 1:18-cr-143, 1:18-cr-144, and 1:18-cr-149.
Sedalia Man Sentenced to 25 Years for Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – A Sedalia, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute methamphetamine and prescription opioids.
Jackie R. Shelledy, 57, was sentenced by U.S. District Judge Roseann Ketchmark to 25 years in federal prison without parole. The court also sentenced Shelledy to 10 years of supervised release following incarceration.
Shelledy was convicted at trial on Nov. 2, 2018. According to court documents, Shelledy possessed or distributed at least 2.3 kilograms of methamphetamine as well as prescription opioids during the drug-trafficking conspiracy that lasted from Jan. 1, 2015, to Feb. 14, 2018. Shelledy purchased and redistributed methamphetamine in Kansas City, Sedalia, Springfield, Warsaw, and other locations.
Evidence introduced during the trial indicated that Shelledy, a member of the Galloping Goose Motorcycle Club, sold methamphetamine and prescription pills to co-defendant Teresa A. Wolfe, 53, of Sedalia. Wolfe then distributed the illegal drugs to other individuals. Shelledy also purchased methamphetamine and prescription pills from Wolfe.
An undercover agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives made a series of undercover purchases of methamphetamine as well as some prescription pills from Wolfe.
A search warrant was executed at Shelledy’s residence on Feb. 13, 2018. Officers seized drug paraphernalia and a bottle of prescription pills in someone else’s name.
Wolfe and co-defendants Joseph E. Whitlow, 42, of Sedalia, and James “Manny” Smith, 56, of Clinton, Mo., have pleaded guilty to their roles in the drug-trafficking conspiracy and await sentencing. Wolfe also pleaded guilty to 14 additional counts related to distributing methamphetamine. Whitlow also pleaded guilty to being a felon in possession of a firearm.
Smith testified at trial that he introduced Shelledy to his source of methamphetamine in exchange for a motorcycle. During this introduction, Shelledy received a pound (453.6 grams) of methamphetamine from Smith’s supplier. Other individuals, who were not charged in the same conspiracy, testified during the trial that they sold pound quantities of methamphetamine to Shelledy.
The court also found that Shelledy attempted to obstruct justice when he tried to persuade a fellow inmate to falsely testify during the trial that another witness had lied to the jury.
Co-defendant Randall L. Rozier, 57, of Sedalia, was sentenced to 27 months in federal prison without parole after pleading guilty to being an illegal drug user in possession of firearms. Rozier was in possession of seven handguns when he was stopped by a Sedalia police officer for a traffic violation.
This case is being prosecuted by Assistant U.S. Attorneys Patrick Edwards and Emily A. Morgan. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Sedalia, Mo., Police Department.