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7 June 2019
Box Elder man sentenced in domestic assaultRead the Press Release
GREAT FALLS—A judge on Wednesday sentenced a Box Elder man to eight months in prison and three years of supervised release in the assault of his domestic partner on the Rocky Boy’s Indian Reservation, U.S. Attorney Kurt Alme said.
Larry Ray Denny, Jr., 46, pleaded guilty in January to domestic assault by habitual offender.
U.S. District Judge Brian M. Morris presided.
The assault occurred on Oct. 15, 2017, the prosecution said in court records. The victim told law enforcement that Denny had hit her. The victim had swelling on an eye, blood on her forehead and red marks on her neck. Denny had two prior domestic assault convictions.
Assistant U.S. Attorneys Cassady Adams and Ryan Weldon prosecuted the case, which was investigated by the FBI and Chippewa Cree Law Enforcement.
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Belmont Man Pleads Guilty to Participating in Fentanyl Trafficking ConspiracyRead the Press Release
CONCORD - Samuel Morris, 29, of Belmont, pleaded guilty in federal court to participating in a fentanyl trafficking conspiracy, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, during an ongoing drug trafficking investigation that included court-authorized wiretaps, agents and task force officers with the Drug Enforcement Administration learned that Morris regularly obtained fentanyl from a source in Lawrence, Massachusetts and then sold the fentanyl in New Hampshire.
On March 9, 2018, investigators learned that Morris intended to travel from New Hampshire to Lawrence to obtain drugs. Agents conducted surveillance of Morris and observed him driving away from a known drug runner. After Morris picked up the drugs, he telephoned his source and questioned the packaging of the drugs. The source told him the drugs were wrapped in “green paper.”
Shortly thereafter, a New Hampshire State Trooper stopped the vehicle for traffic violations and later located approximately 148 grams of fentanyl packaged in green paper in the vehicle. Over the course of the wiretap investigations, investigators allege that Morris purchased approximately 1320 grams of fentanyl.
Morris is scheduled to be sentenced on September 10, 2019.
“The harmful results of interstate fentanyl trafficking are seen each day throughout New Hampshire,” said U.S. Attorney Murray. “Those who choose to bring fentanyl into the Granite State should understand that there will be substantial consequences for their unlawful actions. We will continue to work closely with our law enforcement partners to identify, arrest, and prosecute fentanyl traffickers who do business in our state.”
The case was a collaborative investigation that involved the DEA; the New Hampshire State Police; the Hillsborough County Sheriff’s Office; the Nashua Police Department; the Massachusetts State Police; the Massachusetts Attorney General’s Office; the New Hampshire Attorney General’s Office; the Essex County District Attorney’s Office; the Internal Revenue Service; Immigration and Customs Enforcement’s Homeland Security Investigations; United States Customs and Border Protection Boston Field Office; the United States Marshals Service; the United States Department of State’s Diplomatic Security Service; the Manchester Police Department; the Lisbon Police Department; the Littleton Police Department; the Seabrook Police Department; the Haverhill (MA) Police Department; the Methuen (MA) Police Department; the Lowell (MA) Police Department; and the Maine State Police.
The case is being prosecuted by Assistant United States Attorneys Georgiana L. Konesky, Seth R. Aframe and Debra M. Walsh.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Bellevue Man Sentenced on Two Methamphetamine CasesRead the Press Release
United States Attorney Joe Kelly announced that Phillip Marlowe Donovan, 33, of Bellevue, was sentenced today to federal prison in two cases by Chief United States District Judge John M. Gerrard. Donovan was sentenced to ten years (120 months) for conspiracy to distribute 500 grams or more of methamphetamine mixture. Donovan was indicted in that case in November of 2017. In a second case that was indicted in 2018, Donovan was sentenced to 21 years and 10 months (262 months) for possession with intent to distribute 50 grams or more of actual (pure) methamphetamine and a consecutive six months for committing the offense while he was on pretrial release in the first case. The sentences for both cases were ordered to be served concurrently (at the same time), resulting in a total sentence of 22 years and four months (268 months). Following the prison terms, Donovan will serve five years on supervised release.
Information provided to law enforcement indicated that between January of 2014 and September 30, 2016, Donovan was involved in the distribution of at least 500 grams (approximately 18 ounces) of methamphetamine mixture in the Lincoln and Omaha areas. Donovan pleaded guilty to that offense. On July 18, 2018, when he was awaiting sentencing on the first case, Omaha Police went to an Omaha hotel looking for Donovan who was wanted for violating the terms of his release on the first case. When officers tried to arrest him, Donovan tried to run from them. As Donovan ran, he pulled a pistol out of his waistband. Donovan dropped the gun when he tripped and fell. A search warrant was executed on his hotel room and car. Officers found at least 498 grams (approximately 18 ounces) of actual (pure) methamphetamine in Donovan’s car and 13 ½ grams of methamphetamine mixture in his hotel room.
This case was investigated by the Lincoln/Lancaster County Drug Task Force and the Omaha Police Department.
Ballwin Man Pleads Guilty to Causing Death by Distributing MorphineRead the Press Release
St. Louis, MO – Connor Wentz, 26, of Ballwin, MO, entered a guilty plea today to one count of distribution of morphine that caused the death of another in front of United States District Judge Henry E. Autrey.
According to court documents, on December 22, 2015, a 19-year-old victim was discovered unresponsive in a home in Chesterfield, MO. Emergency medical assistance was summoned, but the victim was pronounced deceased. A subsequent post-mortem examination and other investigation revealed that the victim died as a result of morphine intoxication.
Connor Wentz distributed the morphine that killed the victim. Wentz is scheduled to appear for sentencing on September 3, 2019. Wentz faces a sentence of 15 years.
This case was investigated by the Chesterfield Police Department.
Augusta Man Sentenced to 1½ Years for Lying to a Federal Gun DealerRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced Jason Morgan, 24, of Augusta, Maine, was sentenced today in U.S. District Court by Judge Lance E. Walker to 1½ years in prison and three years of supervised release for making a false statement to a federal firearms licensee. Morgan pleaded guilty on January 17, 2019.
Court records reveal that on May 26, 2017, Morgan purchased a Smith & Wesson .380 semi-automatic pistol from a federal firearms licensee in Augusta. In connection with the purchase, Morgan completed a Firearms Transaction Record stating that he was the actual buyer. In fact, he purchased the firearm for another person from whom he had previously bought illegal drugs and who gave him the money for the purchase.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Maine State Police, with assistance provided by the U.S. Border Patrol. This case is part of Project Safe Neighborhoods (PSN), a program bringing together federal and state levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Justice Department reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Attorney Indicted for Investment FraudRead the Press Release
DENVER – David Kaplan, age 52, of Zephyr Cove, Nevada appeared before a Colorado U.S. Magistrate Judge in Denver on Tuesday, June 4, 2019, after being transferred from Reno, Nevada, where he was arrested for securities fraud, wire fraud, mail fraud and money laundering, announced United States Attorney Jason R. Dunn, IRS Criminal Investigation Special Agent in Charge Steven Osborne and Federal Bureau of Investigation Special Agent in Charge Dean Phillips.
According to the indictment, beginning around September 14, 2014, and continuing until approximately April 2016, Kaplan operated a scheme to defraud and to obtain money and property from investors by means of materially false and fraudulent representations. Kaplan obtained money from investors by representing that investors could invest risk-free in off-shore investments with a sometimes guaranteed return on investment of 10% per month. Kaplan utilized entities, including several charitable organizations, which he established and controlled as part of the scheme. He also used his position as an attorney to gain the trust of investors and used his attorney trust account to create the pretense that investor monies were held in trust. Kaplan made payments to investors in order to lull them into a sense of legitimacy and to encourage the recruitment of additional investors.
Kaplan then made payments to himself and others for personal expenses, from accounts which he controlled, in which proceeds of the scheme were deposited. He similarly made payments to entities, corporations, and foundations he controlled, from accounts he controlled, in which proceeds of the scheme were deposited. Kaplan never disclosed to investors that: he would receive a financial benefit from the investment; the terms of his compensation; that he would divert investor monies for his personal benefit through entities he controlled; the pertinent risks associated with the securities; or his relationship with purported beneficiaries of investor funds.
Kaplan is charged with 7 counts of securities fraud, 36 counts of wire fraud, 9 counts of mail fraud, and 19 counts of money laundering. Each count of securities fraud carries a penalty of not more than 20 years in prison, and a fine of up to $5,000,000. Each count of wire fraud and mail fraud carries a penalty of not more than 20 years in prison, plus a fine of up to $250,000, or twice the amount of gain or loss (whichever is greater). Money laundering carries a penalty of not more than 10 years in prison, and a fine of up to $250,000 or not more than twice the amount of criminally derived property involved in the transaction.
This case is being investigated by the Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation. This case is being prosecuted by Assistant United States Attorneys Jaime Pena and Tim Neff.
The charges contained in the indictment are allegations and the defendant is presumed innocent until proven guilty.
6 June 2019
“AK Bandit” Sentenced for Multi-State Crime SpreeRead the Press Release
United States Attorney Joe Kelly announced that Richard L. Gathercole, 41, formerly of Roundup, Montana, was sentenced today in Lincoln, Nebraska, to 35 years in prison by Senior United States District Judge Richard G. Kopf, for bank robbery, brandishing a firearm and carjacking. In addition to his prison sentence, Gathercole will be ordered to serve 5 years on federal supervised release and pay restitution in the amount of $392,392.06 to the numerous victims of his crime spree.
Gathercole was one of the most wanted bank robbers in the nation when his criminal career ended in a string of violent crimes that he committed in western Nebraska and northern Kansas in June, 2017. He was ultimately arrested in Lexington, Nebraska after carjacking a farmer in Kansas.
Gathercole was known as the “AK Bandit,” because he went armed with an AK-47 assault-style rifle to each of his bank robberies. Early in his crime spree, he hit several banks in California and was believed to be from that area of the country. In a particularly violent bank robbery in California, he shot an officer with the Chino Police Department, and that bullet struck his artery. The officer had to drive himself to the hospital bleeding from that artery and was unable to return to duty due to a shattered femur bone.
Gathercole used maximum threats of violence to control bank employees. On top of brandishing the AK-47 style weapon, he often used tactics such as shutting them in the bank vault, threatening to kill them, and he sometimes would also take an explosive device to place the employees in fear that the bomb could go off inside the bank. Gathercole did this at a bank robbery in Iowa in 2015. Gathercole robbed a bank in Nebraska City, Nebraska in 2014, and during that bank robbery, he forced the employees into the vault and threatened to harm them if they did not wait a certain period of time before calling police.
In addition to the bank robberies in California, Nebraska, and Iowa in 2014 and 2015, Gathercole also used his assault rifle to rob banks in Washington and Idaho in 2012. Gathercole would sometimes wear a bullet proof vest that was marked “Sheriff” or “Police.” A bullet proof vest with “Sheriff” on it was recovered from the defendant’s residence in Montana following his arrest after the carjacking.
In June of 2017, Gathercole left Montana and traveled through Nebraska before a Kansas Highway Patrolman noticed several irregularities with Gathercole’s vehicle and a traffic violation, and attempted to stop the vehicle. Gathercole led troopers on a high-speed pursuit while repeatedly firing a weapon at them. Due to the danger of the pursuit, troopers were forced to leave more space between themselves and Gathercole, which led to the troopers losing sight of him.
Gathercole ditched his vehicle after the shootout with Kansas troopers and began walking where a farmer offered him a ride outside of Atwood, Kansas. Gathercole got into the truck and pointed a gun at the victim and forced him to drive toward the Nebraska state line. Eventually, the driver was able to escape and Gathercole continued in the vehicle. When stopping for gas in Lexingon, Nebraska the vehicle was identified by deputy sheriffs as the vehicle that was the subject of the carjacking report and Gathercole was taken into custody as he exited the gas station.
This case was investigated by the Federal Bureau of Investigation along with law enforcement agencies in Nebraska, Kansas, Washington, Iowa, California, Idaho, and Montana.
Woman Arrested for Defrauding Homeless Individuals and a Nonprofit Serving the HomelessRead the Press Release
SACRAMENTO, Calif. — Sherwana Lynn Marcus, also known as Sherwana Granderson and Sherwana Santana, 47, was arrested today on a 36-count federal indictment charging her with wire fraud for a scheme that defrauded homeless individuals and a housing assistance nonprofit that was receiving federal funding, U.S. Attorney McGregor W. Scott announced.
According to court documents, between May 2014 and March 2015, Marcus used her employment at a nonprofit organization in the Sacramento area to divert funding for homelessness services to herself and also to defraud homeless individuals. She submitted false paperwork to the nonprofit organization so that it would issue rent checks under a program to house the homeless, and she then funneled the checks through a bank account that she controlled. She also altered, or caused to be altered, money orders that had been collected from individuals seeking housing assistance and funneled those money orders through the bank account that she controlled. The individuals providing the money orders believed they were contributions to rent or savings that they would get back.
According to court documents, Marcus stole at least approximately $54,133 through the scheme. At least in part as a result of her diverting rent checks and money orders to herself, she caused at least one person to lose housing and become homeless.
This case is the product of an investigation by the U.S. Department of Housing and Urban Development, Office of Inspector General. Assistant U.S. Attorney Miriam R. Hinman is prosecuting the case.
If convicted, Marcus faces a maximum statutory penalty of 20 years in prison and a $250,000 fine on each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Wetzel County man indicted for firearms violationsRead the Press Release
WHEELING, WEST VIRGINIA – Martin Anderson, of New Martinsville, West Virginia, had his initial appearance in federal court today after being indicted by a federal grand jury sitting in Wheeling this week for firearms violations, United States Attorney Bill Powell announced.
Anderson, age 30, is charged with two counts of “Unlawful Possession of a Firearm” and one count of “Possession of a Firearm with Obliterated Serial Number.” Anderson, a person prohibited from having firearms, is accused of possessing a .9 mm caliber pistol with an obliterated serial number, a .223 caliber rifle, and two .22 caliber rifles in Wetzel County in October 2017 and June 2018.
Anderson 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.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
U.S. Magistrate Judge James P. Mazzone presided.
Westside Columbus Drug Trafficker Sentenced to More Than 16 Years in PrisonRead the Press Release
Columbus, Ohio – A violent Westside drug trafficker was sentenced in U.S. District Court today to 197 months in prison.
Keith “Butters” Drummond, 41, of Columbus, was sentenced for crimes related to trafficking narcotics and using firearms.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Jonathan McPherson, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Columbus Interim Police Chief Thomas Quinlan announced the sentence handed down today by Chief U.S. District Judge Edmund A. Sargus, Jr.
In November 2017, a federal grand jury returned a three-count Superseding Indictment against Drummond, charging him with conspiracy to distribute controlled substances, including over 28 grams of crack; possession of one or more firearms in furtherance of a drug trafficking crime; and being a felon in possession of a firearm.
Drummond pleaded guilty to all three charges in July 2018, on the day he was scheduled to stand trial.
According to court documents, the charges resulted from a years-long investigation by the Columbus Division of Police and ATF into Drummond for his drug trafficking and firearms activity on the west side of Columbus.
Beginning as early as 2011, Drummond operated several “trap houses” on the west side of Columbus where he routinely manufactured and sold crack cocaine, cocaine, heroin, marijuana and oxycodone. His primary trap house was located on North Guilford Avenue, in the “Bottoms” neighborhood. Drummond routinely enlisted drug addicts to work for him at that residence as a “security” force. He would arm these addicts with firearms and then instruct them to safeguard the house, the drugs and his drug proceeds.
Drummond also kept a firearm at his personal residence and in his vehicle. He was prohibited by law from possessing any firearms due to prior felony convictions for possession of drugs, domestic violence and felonious assault, as well as two prior convictions of misdemeanor domestic violence.
Drummond would often punish people who owed him money for drugs or did not satisfy his requirements as employees. This violence included physical restraint (whether being duct taped to a wall or locked in a dog cage), choking, pistol-whipping individuals to the point of fracturing their jaws, and sexual assault, including anally assaulting one woman with a broomstick.
“Drummond’s violence in connection with his drug trafficking was so pronounced that dozens of women and community members submitted letters for the Court’s consideration at sentencing. Most of these individuals were unwilling to share their identity with Drummond for fear of their own safety, so the Government culled those statements down to just six for the Court’s review,” U.S. Attorney Glassman said. “But those six statements tell quite a story: Beatings from Drummond for not selling enough drugs. Scouting out drug addicts on their payday to keep them hooked. Locking women in dog cages and beating them. And threatening, beating, and sexually assaulting women for buying their drugs from anyone else.”
“The defendant has a history of selling drugs, vicious physical assault, and the use of firearms to further his criminal enterprise, despite being prohibited from possessing guns,” stated Jonathan McPherson, ATF’s Special Agent in Charge for the Columbus Field Division. “He is exactly the kind of violent criminal who needs to be removed from our streets, and ATF will continue to work with our partners at the Columbus Division of Police on cases like this to make our community a safer place.”
U.S. Attorney Glassman commended the cooperative investigation by ATF and the Columbus Division of Police, as well as Assistant United States Attorneys Kevin W. Kelley and Noah R. Litton, who are representing the United States in this case.
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West Monroe felon sentenced for unlawful possession of a loaded pistolRead the Press Release
MONROE, La. – United States Attorney David C. Joseph announced that Michael Holder, 41, of West Monroe, Louisiana, was sentenced Wednesday to 51 months in prison by U.S. District Judge Terry Doughty for possession of a firearm by a convicted felon.
Officers with the Ouachita Parish Sheriff’s Office and West Monroe Police Department conducted a traffic stop on June 9, 2017 of Holder’s vehicle and discovered that Holder had an outstanding arrest warrant from the Ouachita Parish Sheriff’s Office. As Holder was exiting the vehicle, he stated to the officers that he was sitting on a BB gun, which turned out to be a Glock, Model 17, 9mm-caliber pistol, loaded with two bullets in the magazine. The officers also found a glass smoking pipe with suspected methamphetamine in Holder’s back pocket.
Holder was convicted of aggravated flight from an officer on January 12, 2015 in Ouachita Parish. Under federal law, convicted felons are prohibited from possessing a firearm or ammunition. Holder pleaded guilty to the federal charges on January 17, 2019.
The ATF, Ouachita Parish Sheriff’s Office, and West Monroe Police Department conducted the investigation. Assistant U.S. Attorney J. Aaron Crawford prosecuted the case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. Project Safe Neighborhoods 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.
Two Individuals Charged with Robbery of A Red Lake RestaurantRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment charging COURTNEY JOHN BARRETT, JR., 30, and ROBERT LEE JOURDAIN, SR., 25, with robbery. BARRETT and JOURDAIN were arrested this morning and will make an initial appearance later today before Magistrate Judge Jon T. Huseby in U.S. District Court in Bemidji, Minnesota.
According to the allegations in the indictment and documents filed in court, on May 1, 2019, BARRETT and JOURDAIN entered the Snack Shack on the Red Lake Indian Reservation armed with a metal pipe and a firearm. BARRETT held the metal pipe to an employee’s head while JOURDAIN brandished the firearm and stole money from the cash register and an employee’s purse.
This case is the result of an investigation conducted by the Red Lake Tribal Police Department and the FBI Headwaters Safe Trails Task Force.
Special Assistant U.S. Attorney Gina L. Allery is prosecuting the case.
Defendant Information:
COURTNEY JOHN BARRETT, JR., 30
Red Lake, Minn.
Charges:
- Robbery, 1 count
ROBERT LEE JOURDAIN, SR., 25
Red Lake, Minn.
Charges:
- Robbery, 1 count
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The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Two Illegal Aliens Sentenced to 120 months Imprisonment for Federal Drug Trafficking Charges and Illegal Reentry After DeportationRead the Press Release
Jackson, TN – Christino Alcazar-Ortiz, 37 and Armando Alcazar-Ortiz, 40, of Union City were both sentenced to 120 months imprisonment for conspiracy to distribute and possess with the intent to distribute 50 grams or more of actual methamphetamine and Illegal Reentry into the United States after having been previously deported. U.S. Attorney D. Michael Dunavant announced the sentences today.
According to information presented in court, beginning in April, 2017, the Drug Enforcement Agency (DEA) and Union City Police Department became aware of an ongoing drug trafficking organization in the West Tennessee area, specifically Obion County, Tennessee. The investigation, which lasted approximately one year, revealed that the organization was trafficking crystal methamphetamine (ice) from multiple residential locations within Union City and Jackson, Tennessee. As a result, law enforcement officers utilized confidential informants and electronic surveillance to include wiretaps on phones used by the defendants.
A total of six controlled drug purchases were made from Christino and Armando Alcazar-Ortiz. Christino Alcazar-Ortiz distributed actual methamphetamine from the Mi Tierra Caliente Restaurant in Union City, while Armando Alcazar-Ortiz distributed actual methamphetamine from his place of employment in Jackson, Tennessee. The methamphetamine (ice) recovered was tested at (DEA) laboratories and was determined to range from 95% to 99% pure crystal methamphetamine. The investigation determined that Christino Alcazar-Ortiz was responsible for the distribution of over 409 grams of ice and Armando Alcazar-Ortiz for the distribution of over 167 grams of ice during the conspiracy.
U.S. Attorney D. Michael Dunavant said, "This case combines two of the top priorities of the Department of Justice: illegal drug trafficking and criminal immigration enforcement. We work with our local and federal law enforcement partners to aggressively investigate
and prosecute any and all suppliers that distribute illegal drugs in West Tennessee. At the same time, we work to identify, prosecute, and remove persons who violate our sovereign immigration laws, and our work focuses on criminal re-entry cases that will further deter and reduce illegality by criminal aliens. Clearly, these offenders posed a significant danger to public safety in Obion County and West Tennessee by their distribution of pure methamphetamine into the community, and will now serve long prison sentences as a result."
On August 20, 2018, a federal grand jury returned a three-count indictment against Christino Alcazar-Ortiz and Armando Alcazar-Ortiz charging each with conspiracy to distribute actual methamphetamine and Illegal Reentry after deportation.
On June 6, 2019, U.S. District Court Judge J. Daniel Breen sentenced both defendants to 120 months imprisonment followed by five years’ supervised release.
This case was investigated by the Drug Enforcement Administration (DEA), Union City Police Department and Homeland Security (ICE).
Assistant U.S. Attorney Jerry Kitchen prosecuted this case on behalf of the government.
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Three Peruvians Plead Guilty to Overseeing Spanish-Speaking Call Centers that Extorted U.S. ConsumersRead the Press Release
Three residents of Lima, Peru, pleaded guilty yesterday to extortion for overseeing a ring of call centers that threatened and extorted Spanish-speaking victims in the United States, the Department of Justice and U.S. Postal Inspection Service announced.
Jesus Gerardo Gutierrez Rojas, 37, Maria de Guadalupe Alexandra Podesta Bengoa, 38, and Virgilio Ignacio Polo Davila, 43, were extradited from Peru in April and pleaded guilty before U.S. District Court Judge Roy K. Altman in Fort Lauderdale yesterday. As part of his guilty plea, Gutierrez admitted that he oversaw a number of affiliated call centers in Peru that falsely told Spanish-speaking victims across the United States that they had incurred debts and would suffer various consequences for failure to pay off the debts that they did not, in fact, owe. As part of their guilty pleas, Podesta and Polo admitted that they managed and supervised two of these affiliated call centers that used extortion to obtain money from U.S. victims.
“The Department of Justice is committed to identifying and prosecuting criminals who target and extort U.S. consumers,” said Assistant Attorney General Jody Hunt. “Yesterday’s guilty pleas demonstrate that those who threaten U.S. consumers by phone cannot escape justice by placing their calls from abroad. Working with our international partners, we will bring them to justice no matter where they reside. I thank the Republic of Peru for extraditing these defendants to face justice in our courts and the U.S. Postal Insecption Service for its work investigating this case.”
As part of their guilty pleas, Podesta and Polo admitted that their Peruvian call centers contacted U.S. consumers, many of whom were elderly and vulnerable, using Internet-based calls. Claiming to be attorneys and government representatives, Podesta, Polo and their callers falsely told victims that they failed to pay for or receive a delivery of products and threatened them into paying fraudulent settlements for nonexistent debts. The callers falsely threatened victims with lawsuits, negative marks on their credit reports, imprisonment, or immigration consequences if they did not immediately pay for the purportedly delivered products and “settlement fees.” Many victims made payments based on these baseless extortionate threats.
Gutierrez was the general manager of a larger company where he worked in partnership with Podesta, Polo, and others to facilitate their extortion scheme. The defendants’ associates in Miami collected the payments and sometimes shipped packages to victims in the U.S.
“If an individual who claims to be an attorney or government representative calls and instructs you to pay money to: receive products you did not buy; avoid a lawsuit; avoid imprisonment; or avoid a change in immigration status, hang up and immediately report that threat to www.ftccomplaintassistant.gov,” said U.S. Attorney for the Southern District of Florida Ariana Fajardo Orshan. “I thank the Republic of Peru for extraditing the defendants in this case and the U.S. Postal Inspection Service for their unwavering commitment to investigate and pursue those who threaten U.S. consumers.”
“The U.S. Postal Inspection Service will continue to aggressively investigate and pursue those who threaten U.S. consumers and extort them of their hard earned money, regardless of what country they operate from,” said U.S. Postal Inspector in Charge Antonio J. Gomez. “The U.S. Postal Inspection Service appreciates the continued partnership with the Department of Justice’s Consumer Protection Branch in pursuing South American call center operators who victimize consumers through the U.S. mail.”
With yesterday’s three guilty pleas, all five defendants who have been charged in connection with this large-scale extortion scheme have now pleaded guilty.
Trial Attorney Phil Toomajian of the Department of Justice’s Consumer Protection Branch is prosecuting the case. The Postal Inspection Service investigated the case. The Criminal Division’s Office of International Affairs, the U.S. Attorney’s Office of the Southern District of Florida, the Diplomatic Security Service, and the Peruvian National Police provided critical assistance.
Three Individuals Indicted in Conspiracy to Sell Counterfeit Apparel and AccessoriesRead the Press Release
WASHINGTON – Three individuals were indicted today for trafficking in counterfeit goods through their operation of a retail store and warehouse used to sell apparel and accessories under unauthorized trademarks announced U.S. Attorney Jessie K. Liu.
Today a federal grand jury in the District of Columbia returned an indictment alleging that Zi Yu Zheng, 57, Xiao Ling Wei, 56, and Ling Wu Wei, 50, all from Maryland, conspired to sell apparel and accessories with counterfeit trademarks that appeared to be items that were manufactured by brand-name designers. According to the indictment, the three individuals operated a retail store, The Guang Da Group, and a warehouse in Northeast, D.C., from which they sold counterfeit clothing, shoes, jewelry, handbags, and other accessories that were virtually indistinguishable from legitimate merchandise produced by designer companies such as Burberry, Chanel, Gucci, Louis Vuitton, Michael Kors, Nike, Polo, Ralph Lauren, Rolex, North Face, and Timberland.
According to the indictment, the defendants kept a filing cabinet of logos trademarked by these companies, which they attached to apparel and accessories sold from their warehouse and The Guang Da Group retail store. The indictment alleges that the three individuals openly displayed the counterfeit merchandise in the retail store, while engaging in various security and counter-surveillance measures to prevent detection by law enforcement, including limiting access to their warehouse to individuals and customers they knew, prohibiting cell phones in the warehouse, and maintaining a secret showroom of counterfeit merchandise behind a false emergency door. According to the indictment, law enforcement penetrated the conspiracy through controlled purchases executed by confidential sources and an undercover agent.
All three defendants are charged with conspiracy, in violation of 18 U.S.C. § 371. Zi Yu Zheng and Xiao Ling Wei are also each charged with one count, and Ling Wu Wei is also charged with two counts, of trafficking in counterfeit goods, in violation of 18 U.S.C. § 2320(a). The indictment also contains a forfeiture allegation. The case has not yet been assigned to a U.S. District Judge and an initial appearance date has not been set.
The charges in an indictment are merely allegations and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. The statutory maximum penalty for conspiracy, in violation of 18 U.S.C. § 371, is five years; for trafficking in counterfeit goods, in violation of 18 U.S.C. § 2320(a), the statutory maximum penalty is 10 years.
The case is being investigated by the U.S. Immigration and Customs Enforcement, Homeland Security Investigations. Assistant U.S. Attorney Michael Marando of the Fraud and Public Corruption Section is prosecuting the case.
Three Individuals Indicted in Conspiracy to Sell Counterfeit Apparel and AccessoriesRead the Press Release
WASHINGTON – Three individuals were indicted today for trafficking in counterfeit goods through their operation of a retail store and warehouse used to sell apparel and accessories under unauthorized trademarks announced U.S. Attorney Jessie K. Liu.
Today a federal grand jury in the District of Columbia returned an indictment alleging that Zi Yu Zheng, 57, Xiao Ling Wei, 56, and Ling Wu Wei, 50, all from Maryland, conspired to sell apparel and accessories with counterfeit trademarks that appeared to be items that were manufactured by brand-name designers. According to the indictment, the three individuals operated a retail store, The Guang Da Group, and a warehouse in Northeast, D.C., from which they sold counterfeit clothing, shoes, jewelry, handbags, and other accessories that were virtually indistinguishable from legitimate merchandise produced by designer companies such as Burberry, Chanel, Gucci, Louis Vuitton, Michael Kors, Nike, Polo, Ralph Lauren, Rolex, North Face, and Timberland.
According to the indictment, the defendants kept a filing cabinet of logos trademarked by these companies, which they attached to apparel and accessories sold from their warehouse and The Guang Da Group retail store. The indictment alleges that the three individuals openly displayed the counterfeit merchandise in the retail store, while engaging in various security and counter-surveillance measures to prevent detection by law enforcement, including limiting access to their warehouse to individuals and customers they knew, prohibiting cell phones in the warehouse, and maintaining a secret showroom of counterfeit merchandise behind a false emergency door. According to the indictment, law enforcement penetrated the conspiracy through controlled purchases executed by confidential sources and an undercover agent.
All three defendants are charged with conspiracy, in violation of 18 U.S.C. § 371. Zi Yu Zheng and Xiao Ling Wei are also each charged with one count, and Ling Wu Wei is also charged with two counts, of trafficking in counterfeit goods, in violation of 18 U.S.C. § 2320(a). The indictment also contains a forfeiture allegation. The case has not yet been assigned to a U.S. District Judge and an initial appearance date has not been set.
The charges in an indictment are merely allegations and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. The statutory maximum penalty for conspiracy, in violation of 18 U.S.C. § 371, is five years; for trafficking in counterfeit goods, in violation of 18 U.S.C. § 2320(a), the statutory maximum penalty is 10 years.
The case is being investigated by the U.S. Immigration and Customs Enforcement, Homeland Security Investigations. Assistant U.S. Attorney Michael Marando of the Fraud and Public Corruption Section is prosecuting the case.
Stratford Tax Preparer Sentenced to Prison for Filing Numerous False Tax ReturnsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JUAN SILVA, 38, of Stratford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to seven months of imprisonment, followed by one year of supervised release, for preparing numerous false federal income tax returns. Judge Shea also ordered Silva to serve 45 days in home confinement and perform 80 hours of community service while on supervised release
According to court documents and statements made in court, Silva operated Oficina Hispana, a multi-service business that included tax return preparation. Between approximately 2011 and 2017, Silva falsified itemized deductions and unreimbursed employee business expenses on numerous returns that he prepared for clients. In addition, for the 2011, 2012 and 2013 tax years, Silva made substantial deposits of business receipts from his tax preparation business into his personal bank accounts, and failed to report to the IRS a total of more than $306,000 in income.
On December 21, 2017, Silva pleaded guilty to one count of aiding and assisting the filing of a false tax return.
Judge Shea ordered Silva to pay restitution of $143,693.
The IRS, with Silva’s assistance, has been taking action to recover unpaid taxes from Silva’s clients. Silva’s restitution obligation will be reduced if monies are recovered from his clients.
Silva, who is released on bond, is required to report to prison on August 30.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division and was prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Southern Illinois Sends Back 3 Tons of Unused Prescription DrugsRead the Press Release
Residents of the Southern District of Illinois returned over three tons of prescription drugs for destruction on National Prescription Drug Take Back Day, Steven D. Weinhoeft, United States Attorney for the Southern District of Illinois, announced today.
DEA’s National Prescription Drug Take Back Day was held on Saturday, April 27, 2019. Now in its ninth year, the biannual nationwide event provides a safe and convenient way for individuals to dispose of unwanted, unused, or expired prescription medications. According to the 2017 National Survey on Drug Use and Health, millions of Americans misuse prescription drugs each year. A majority of those drugs are obtained from family and friends, often from the home medicine cabinet.
The public response so far this year has been tremendous. 6,636 pounds of prescription drugs were collected in the Southern District of Illinois alone. In Madison County, 897 pounds of drugs were turned in – a total nearly matched in St. Clair County, where 892 pounds were returned. Nationwide, the haul reached 937,443 pounds (468.72 tons) of prescription drugs amassed at more than 6,000 collection sites. Nearly 5,000 law enforcement agencies participated in the event.
The 18th National Take Back Day will be held on October 26, 2019.
Members of the public can find more information on the DEA National Take Back Day and a list of permanent drug return locations at https://takebackday.dea.gov. For local addiction recovery and prevention information, please visit https://partnershipdrugfree.org.
South Boston Man Pleads Guilty to Loansharking and Gambling ChargesRead the Press Release
BOSTON - A South Boston man pleaded guilty today in federal court in Boston to loansharking and gambling charges.
Tam V. Nguyen, 51, pleaded guilty to one count of conspiracy to collect extensions of credit by extortionate means and one count of operating an illegal gambling business. U.S. District Court Judge Denise J. Casper scheduled sentencing for Sept. 11, 2019.
From April to August 2017, Nguyen conspired to collect an extension of credit from a victim. Nguyen also engaged in an illegal gambling business from September 2016 through August 2017. According to court proceedings, Nguyen was a bookmaker and conspired to collect a large gambling debt from a bettor. In an intercepted telephone call, Nguyen told a conspirator to “go ahead and be firm, be firm with him. That will make him afraid and try hard to take care of it. That’s all.”
As part of the same investigation, in August 2017, Vinh Quang Huynh, Quang PT Le, and Kim Nguyen, all of Dorchester, were charged with kidnapping, conspiracy to collect extension of credit by extortionate means, and operating an illegal gambling business. In May 2018, Le was sentenced to six years in prison, three years of supervised release and ordered to pay restitution in the amount of $6,300. In March 2019, Kim Nguyen was sentenced to one year and one day in prison, two years of supervised release, and ordered to pay restitution in the amount of $6,300. In December 2017, Huynh pleaded guilty and is awaiting sentencing. In addition, as part of the same case, Ban “Bo” Tran pleaded guilty to misprision of a felony and was sentenced in February 2019 to eight months in prison, one year of supervised release and ordered to pay a fine of $5,000.
The charge of conspiracy to collect extensions of credit by extortionate means provides for a sentence of no greater than 20 years in prison, three years of supervised release and fine of $250,000. The charge of operating an illegal gambling business provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Boston Police Commissioner William Gross; and Quincy Police Chief Paul Keenan made the announcement today. The Internal Revenue Service’s Criminal Investigation in Boston and the Massachusetts Department of Correction assisted with the investigation. Assistant U.S. Attorney Timothy E. Moran of Lelling’s Organized Crime and Gang Unit is prosecuting the case.
Seven people indicted for conspiracy to traffic heroin and cocaine in Warren and YoungstownRead the Press Release
A federal grand jury returned a 48-count indictment charging seven people for their roles in a conspiracy to distribute cocaine and heroin in the Warren and Youngstown areas.
Indicted are: Thomas I. Sledge, 38, of Youngstown; Preston D. Sims Jr., 33, of Akron; Levar A. Johnson; 41; Khalef K. Freeman, 37; James A. Lipscomb, 40; Christopher L. Williams, 39, and Lajuna R. Brown, 30, all of Warren, with conspiracy to distribute cocaine and heroin.
The indictment alleges the defendants conspired to distribute cocaine and heroin in the Warren and Youngstown areas between September 2017 through June 2018.
Sims allegedly supplied heroin to Sledge, who in turn supplied it to Johnson, Freeman, Lipscomb, Williams and Brown for distribution in Youngstown and Warren, according to the indictment.
Sledge obtained cocaine from a source and supplied it to Freeman for distribution in Warren and Youngstown, according to the indictment
The indictment further alleges Sledge distributed cocaine in the fall of 2017.
The indictment also alleges Sledge, Sims, Johnson, Freeman, Lipscomb, Williams and Brown used a communication facility in furtherance of a drug trafficking crime between January and March 2018.
“These defendants are charged with seeking to profit from the drug epidemic that has plagued all of Ohio and hit the Mahoning Valley particularly hard,” U.S. Attorney Justin E. Herdman said. “We will seek long prison sentences for people who bring cocaine, heroin, and other illicit drugs into our neighborhoods.”
If convicted, the defendants’ sentence will be determined by the Court after review of factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offenses and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by Drug Enforcement Administration and the Warren Police Department’s Street Crimes Unit. The case is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Savannah man indicted for 2018 murder on Fort StewartRead the Press Release
SAVANNAH, GA: A Savannah man has been indicted for the murder last summer of the wife of a deployed U.S. Army soldier on post at Fort Stewart.
In an indictment unsealed today, Stafon Davis, 27, of Savannah, is charged with Premeditated Murder in the July 9, 2018 shooting death of Abree Boykin, 24, a resident of post housing at Fort Stewart Army Reservation, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Davis also is charged with Possession of a Firearm by a Convicted Felon.
The indictment alleges that Davis, while on Fort Stewart, “willfully, deliberately, maliciously, and with premeditation and malice aforethought, did unlawfully kill Abree Boykin, by shooting Abree Boykin with a 9mm firearm.” The body of Boykin, whose husband was a then-deployed soldier, was discovered by Military Police in her residence.
Davis is being held at the Palm Beach County Jail in West Palm Beach, Fla. He is scheduled to have an initial appearance Friday in the West Palm Beach Division of the Southern District of Florida, and will be required to appear in the Southern District of Georgia for further proceedings.
“Our service members already make a tremendous sacrifice for their country, including deployments, and they deserve to know their families will be kept safe here at home – especially at our own military facilities,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “We owe it to Abree Boykin’s family to seek the full measure of justice for her killer.”
“Nothing will ever resolve the pain and suffering this murder has caused the husband, family and friends of Abree Boykin, but hopefully this indictment is the beginning step toward some sense of justice for them,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “This result would not have been possible without the cooperation of our law enforcement partners at the U.S. Army and U.S. Attorney’s Office.”
FBI and CID continue to offer a reward of up to $20,000 for information leading to the recovery of Abree Boykin’s black 2018 Honda Accord, Georgia license plate RLQ1762. Those with information are encouraged to call the FBI Atlanta Field Office at (770) 216-3000, email [email protected], or call 1-844-ARMY-CID. Individuals wishing to remain anonymous will be protected to the degree allowable under the law.
A criminal indictment contains only charges; defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the FBI and the Army Criminal Investigation Command, with assistance from the Savannah Police Department and the U.S. Marshals Service, and prosecuted for the United States by Assistant United States Attorney Jennifer G. Solari.
Russian Woman Sentenced for Parental Kidnapping, ExtortionRead the Press Release
WICHITA, KAN. – A Russian-born woman was sentenced to 84 months in federal prison today for unlawfully taking her daughter to Russia and demanding money before allowing the American father to have custody of the girl, U.S. Attorney Stephen McAllister said.
In March, a jury found Bogdana Alexandrovna Mobley, 38, guilty on one count of international parental kidnapping and two counts of attempting to extort money from the child’s father.
During trial, the prosecutor presented evidence that in April 2014 Mobley took a child of hers (identified as S.M. in court records) to Russia despite the fact the biological father, Brian Mobley, had been awarded joint custody in Sedgwick County District Court. At the time, the Mobleys had a pending divorce case before the court. The defendant did not obtain the permission of the court or Brian Mobley before going to Russia with the child. The child still has not returned to the United States.
Between April 2014 and November 2016, the defendant only permitted Brian Mobley to communicate with S.M. via cell phones and Skype applications. She told Brian Mobley that he needed to send her money in order to see the child.
McAllister commended the FBI and Assistant U.S. Attorney Jason Hart for their work on the case.
Rochester Man Pleads Guilty to Selling Fentanyl That Led to A DeathRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Tyler Taylor, 28, of Rochester, NY, pleaded guilty to possession with intent to distribute fentanyl and possession of a firearm in furtherance of a drug trafficking crime, before U.S. District Judge David G. Larimer. The charges carry a maximum penalty of 35 years in prison and a $2,000,000 fine.
Assistant U.S. Attorney Cassie Kocher, who is handling the case, stated that the defendant was arrested after law enforcement officers executed a search warrant at 70 Texas Street in Rochester. During the search, officers recovered approximately 655 decks of fentanyl, materials consistent with the packaging of narcotics, and a firearm, among other contraband.
On May 3, 2018, Taylor sold fentanyl that led to the overdose death of an individual identified as S.M.
The plea is the result of an investigation by the Monroe County Heroin Task Force, under the direction of Sheriff Todd Baxter, and the Bureau of Alcohol, Tobacco, Firearms & Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
The case was brought by the U.S. Attorney’s Office as part of its Project Safe Neighborhoods (PSN) initiative. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Sentencing is scheduled for September 4, 2019, at 3:00 p.m. before Judge Larimer.
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Rochester Man Pleads Guilty to Heroin ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Daiquan Hill, 25, of Rochester, NY, pleaded guilty to conspiracy to distribute heroin, before U.S. District Judge David G. Larimer. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Cassie Kocher, who is handling the case, stated that between January 2018 and June 14, 2018, the defendant conspired to distribute heroin. In furtherance of the conspiracy, Hill distributed quantities of fentanyl to customers and also directed others as to when, where, and how much narcotics to deliver to customers. .
The plea is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge John B. Devito; the Rochester Police Department, under the direction of Chief La’Ron Singletary; U.S. Border Patrol, under the direction of Patrol Agent in Charge Jeffrey Wilson; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
Sentencing is scheduled for September 5, 2019, at 10:00 a.m. before Judge Larimer.
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Rochester Man Pleads Guilty to Fentanyl ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Giovanni Deleon, 27, of Rochester, NY, pleaded guilty to conspiracy to distribute 400 grams or more of fentanyl, before U.S. District Judge David G. Larimer. The charge carries a minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Attorney Cassie Kocher, who is handling the case, stated that between August 2018 and December 2018, the defendant conspired to distribute fentanyl. In furtherance of the conspiracy, Deleon distributed quantities of fentanyl to customers and assisted in obtaining quantities of fentanyl to be distributed in the Western District of New York.
The plea is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge John B. Devito; the Rochester Police Department, under the direction of Chief La’Ron Singletary; U.S. Border Patrol, under the direction of Patrol Agent in Charge Jeffrey Wilson; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
Sentencing is scheduled for September 18, 2019, at 2:00 p.m. before Judge Larimer.
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Ramer Man Convicted Oo Federal Firearms and Drug ChargesRead the Press Release
Montgomery, Alabama – On Wednesday, June 5, 2019, a federal jury convicted Willis Lydell Cogburn, 31, of Ramer, Alabama, on charges of being a felon in possession of a firearm, possession of a controlled substance with intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime, announced United States Attorney Louis V. Franklin, Sr., Troy Police Chief Randall Barr, and ATF Special Agent in Charge Marcus Watson.
The trial evidence showed that in the early morning hours of Saturday, July 8, 2017, Troy Police officers were patrolling the downtown area after responding to a disturbance call. After the issues with the initial call were cleared, officers then began to patrol the area near a bar on Love Street where a crowd had gathered. There they found Cogburn in a vehicle with his car stereo playing at an excessive volume. When officers approached the car to address the noise issue, they noticed an open container of alcohol in the vehicle and detected the smell of marijuana.
Upon questioning, Cogburn became uncooperative and confrontational. Officers asked Cogburn to get out of the vehicle and opened the driver’s door to remove him. At that point, Cogburn placed the vehicle in reverse and drove backwards down the street for approximately 50 feet before hitting another vehicle and coming to a stop. This happened so suddenly that an officer had to jump into the car’s doorjamb and cling to the vehicle to avoid being struck by the open door as the car moved backwards. Luckily, no one was injured.
Once Cogburn was removed from the vehicle, officers searched the car and found a significant amount of marijuana, digital scales, and a .38 caliber revolver. Small amounts of cocaine and methamphetamine were also discovered. Having previously been convicted of a felony, Cogburn was prohibited from possessing a firearm.
Following these convictions, Cogburn is facing a minimum of five years in prison with a maximum sentence of life. There is no parole in the federal system.
“Guns and drugs are a deadly mix,” stated U.S. Attorney Franklin. “Dealers often carry firearms to protect their drugs and money, placing the public and law enforcement at risk. We are fortunate that someone was not seriously injured during this encounter and I am relieved that the Troy police officers were able to prevent the situation from escalating further.”
“Our officers encountered a dangerous individual that night and the situation escalated very quickly,” stated Chief Barr. “Thankfully, we were able to get him into custody without serious injury to officers, bystanders, or the defendant. I am grateful for the partnerships my department has with the agencies involved in this case and the U.S. Attorney’s Office.”
ATF Special Agent in Charge, Marcus Watson stated, “The partnerships with the Troy Police Department and the U.S. Attorney’s Office were crucial in reducing the potential for violent crime in this case.”
The case was investigated by the Troy Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with assistance from the Montgomery County Sheriff’s Office and the Alabama Department of Forensic Sciences. Assistant United States Attorneys Joshua Wendell and Robert Nichols prosecuted the case.
Owner of Income Tax Preparation Business Sentenced to Prison for Preparing Falsified Income Tax Returns for ClientsRead the Press Release
BOISE – David Lee Brannum, 56, now of Washougal, Washington, was sentenced to 12 months and one day in prison for preparing false income tax returns for clients of his business, “Dave’s Tax Service,” U.S. Attorney Bart Davis announced today. U.S. District Judge B. Lynn Winmill also ordered that Brannum pay $101,550 in restitution to the IRS and placed Brannum on one year of supervised release after his prison sentence ends.
According to court records, in January 2019, Brannum pleaded guilty to one count of assisting, advising, and counseling clients to submit materially false federal income tax returns to the IRS. According to the plea agreement filed in this case, from 2003 through 2015, Brannum operated his tax preparation business in Idaho and Nevada and submitted hundreds of federal income tax returns. Brannum often claimed false and fraudulent itemized deductions for his clients, which had the effect of decreasing their tax liability and generating improper refunds. Specifically, Brannum inflated the amounts of his clients’ charitable contributions and entered amounts for unreimbursed employee expenses that were not substantiated, that he inflated, or that he knew were not allowable.
This case was investigated by the IRS Criminal Investigations Division.
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Natchez Man Pleads Guilty under Project EJECT to Possessing a Firearm while under Felony IndictmentRead the Press Release
Natchez, Miss. – Tywone Noble, 23, of Natchez, pled guilty today before Senior U.S. District Judge David C. Bramlette, III to possession of a firearm while under a felony indictment, announced U.S. Attorney Mike Hurst and Dana Nichols, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On January 22, 2018, Tywone Noble was indicted by an Adams County Grand Jury on felony charges. While Noble was still under that indictment, on November 19, 2018, probation agents with the Mississippi Department of Corrections were conducting home visits in the area of Beaumont Street and observed four men standing in front of a house. As they approached, the agents observed one of the men, Noble, holding an assault rifle. On April 16, 2019, Noble was charged in a federal indictment with possessing a firearm while under felony indictment.
Noble will be sentenced on October 1, 2019 by Judge Bramlette and faces a maximum penalty of five years in prison and a $250,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and is being prosecuted by Assistant United States Attorney Bert Carraway.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Justice Expel Crime Together." PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Monore man pleads guilty to drug, firearm chargesRead the Press Release
MONROE, La. – United States Attorney David C. Joseph announced that Robert E. Robinson, 45, of Monroe, pleaded guilty Wednesday before U.S. District Judge Terry Doughty for possession of marijuana with the intent to distribute and possessing firearms in furtherance of a drug-trafficking crime.
According to the guilty plea, law enforcement agents with the Monroe Metro Narcotics Unit obtained a search warrant for Robinson’s residence following two undercover buys of marijuana from him. The search yielded more than 7 kilograms of marijuana as well as marijuana butter, marijuana cookies, digital scales, and a marijuana grinder. Officer also found three loaded firearms, to include a Rock Island Armory revolver, loaded with six rounds of ammunition, an Anderson pistol, loaded with 30 rounds of ammunition, and a Smith & Wesson pistol, loaded with 14 rounds of ammunition. More than 500 rounds of various caliber ammunition were recovered from the residence.
Robinson faces up to five years in prison for the drug offense and at least five years in prison for the firearm offense. He also faces up to a $250,000 fine and five years of supervised release. Doughty set Robinson’s sentencing for September 4, 2019.
The ATF and the Monroe Metro Narcotics Unit conducted the investigation. Assistant U.S. Attorney Brian C. Flanagan is prosecuting the case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. Project Safe Neighborhoods 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.
Milton Man Sentenced to 90 Months of Imprisonment for Heroin and Cocaine Base DistributionRead the Press Release
The Office of the United States Attorney for the District of Vermont stated today that Jerry Romero, 64, of Milton was sentenced by Judge William K. Sessions III to 90 months of imprisonment to be followed by four years of supervised release. Romero had previously pled guilty to possession with intent to distribute both heroin and 28 grams or more of cocaine base and agreed to the 90-month sentence.
According to Court records, in September 2018, Romero was living at 77 Beartrap Road in Milton, Vermont. On September 4, 2018, the Milton Police Department and the Drug Enforcement Administration (“DEA”) executed a search warrant at Romero’s home. Upon entry, a law enforcement agent asked Romero where the drugs were and Romero responded that they were in the bathroom trashcan. Law enforcement then recovered approximately 61 grams of cocaine base and 480 bags of heroin from the trashcan. Law enforcement also recovered a .380 Glock pistol and ammunition from a gun safe. Romero had the combination to this safe in his wallet.
At the time he committed this drug trafficking offense, Romero was on federal supervised release related to a prior federal drug trafficking conviction in 2017. Accordingly, the 90-month sentence was broken down into two parts: 66 months for the new drug offense and 24 months, to be served consecutively, for violating his terms of federal supervised release. From 2002 to 2017, Romero incurred four other federal felony convictions, three involving drug trafficking and one involving unlawful possession of a firearm.
“Working with federal law enforcement partners, the Milton Police Department was able to establish a case involving Jerry Romero and address the concerns of Milton residents.”, stated Milton Police Chief Steve Laroche. He praised the efforts of the citizens of Milton for providing valuable information, based on “See Something Say Something”, which lead to the arrest of Jerry Romero. “This investigation resulted in the largest amount of crack cocaine and heroin seized in the department’s history”, according to Chief Laroche.
This matter was investigated by the Drug Enforcement Administration, the Milton Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. This case was prosecuted by Assistant U.S. Attorneys Jon Ophardt and Joe Perella. Romero is represented by Steven Barth of the Federal Public Defenders Office.
Middlesex County Woman Arrested for $1.7 Million Bank Fraud SchemeRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, woman was arrested today for allegedly orchestrating a $1.7 million bank fraud scheme that involved writing fraudulent business checks, U.S. Attorney Craig Carpenito announced.
Tammy Martinez, 46, of South Amboy, New Jersey, is charged by complaint with one count of bank fraud. Federal agents arrested Martinez this morning; she is scheduled to appear this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
According to documents filed in this case and statements made in court:
From January 2014 through March 2019, Martinez served as an office manager and bookkeeper for a company in Newark. Beginning in January of 2014, Martinez used her position to issue fraudulent company checks made payable to herself or cash and forged the signature of her manager on the checks. Martinez then converted the fraudulent company checks into cash at bank branches in New Jersey. Martinez’s bank fraud scheme resulted in more than $1.7 in losses.
The bank fraud count carries a maximum potential penalty of 30 years in prison and a $1 million fine.
U.S. Attorney Carpenito credited special agents of the U.S. Attorney’s Office, under the direction of Supervisory Special Agent Thomas Mahoney in Newark, and the Newark Police Department, under the direction of Public Safety Director Anthony F. Ambrose, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Jamel Semper of the U.S. Attorney’s Office Economic Crimes Unit.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty
Defense counsel: Peter Carter Esq., Assistant Federal Public Defender, Newark
Mexican Man Sentenced for Illegally Reentering the United StatesRead the Press Release
A man who entered the United States illegally from Mexico was sentenced on May 31, 2019, to four months in federal prison.
Miguel Angel Prieto-Soto, age 33, from Mexico, received the sentence after an April 12, 2019, guilty plea to one count of unlawful use of identification documents.
At the guilty plea, Prieto-Soto admitted he had purchased a counterfeit permanent resident alien card and counterfeit social security card from an individual in Omaha for $200. Prieto-Soto admitted he had used his real name on both cards. He further admitted that he presented the counterfeit documents to Bliek’s Custom Fab in Hull, Iowa, for the purposes of obtaining employment.
Prieto-Soto was sentenced in Sioux City by United States District Court Judge Leonard T. Strand. Prieto-Soto was sentenced to four months’ imprisonment. He must also serve a 1-year term of supervised release.
The case was prosecuted by Assistant United States Attorney Kevin C. Fletcher and investigated by Immigration and Customs Enforcement (ICE) and the Enforcement and Removal Office of the Immigration and Customs Enforcement Bureau.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-04016.
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Merrill Man Charged with Gun CrimesRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced today the unsealing of an indictment charging Douglas P. Bannister, 37, Merrill, Wisconsin, with being a felon in possession of a firearm and illegally possessing a silencer.
The sealed indictment was returned yesterday by a federal grand jury and an arrest warrant was issued for Bannister. He was arrested in Merrill yesterday afternoon. He made an initial appearance in U.S. District Court in Madison today, and was ordered to remain in custody pending a detention hearing, which has not been scheduled.
The indictment alleges that on December 11, 2018, Bannister, knowing he had previously been convicted of a felony, possessed an Anderson Manufacturing AM-15 lower receiver. The receiver is the part of a firearm which provides housing for internal components. For the purposes of federal law, the receiver is legally the firearm. The indictment also charges that on December 11, 2018, Bannister possessed a silencer not registered to him in the National Firearms Registration and Transfer Record.
If convicted, Bannister faces a maximum penalty of 10 years in federal prison on each charge. The charges against him are the result of an investigation by the Lincoln County Sheriff’s Office, Wisconsin Department of Natural Resources, and Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of this case is being handled by Assistant U.S. Attorney Corey C. Stephan.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach involves collaboration by federal, state and local law enforcement agencies, prosecutors and communities to prevent and deter gun violence.
You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Member of the Violent “Murdaland Mafia Piru” Bloods Gang Sentenced to 14 Years in Federal Prison for Racketeering and Drug ConspiraciesRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake today sentenced Devon Dent, age 28, of Baltimore, Maryland to 14 years in federal prison, followed by five years of supervised release, for racketeering and drug conspiracies related to his participation in the gang activities of the Murdaland Mafia Piru (MMP), a subset of the Bloods gang. Dent admitted that as part of his gang activities, he distributed crack cocaine for the gang and he was present when a MMP co-defendant attempted to kill a victim outside a Baltimore nightclub, shooting that person multiple times in the head and chest.
The sentence was 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.
According to Dent’s plea agreement and court documents, 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 “the Don” at the top and various “Bosses,” “Underbosses,” “Capos,” “Lieutenants,” and “Mobsters” underneath. For many years, MMP has controlled the drug trade in large swaths of Northwest Baltimore City and neighboring Baltimore County, including Forest Park, Windsor Mill, Gwynn Oak, Howard Park, Woodlawn, and Walbrook Junction. 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 using violence and threats of violence to intimidate or retaliate against witnesses, protect the gang’s territories, enforce debts, and eliminate rivals.
Dent admitted that he was a member of MMP and participated in the gang’s affairs through a pattern of racketeering activities, that included offenses involving drug distribution. Specifically, as detailed in his plea agreement, on October 15, 2012, Dent was present when a co-defendant attempted to murder a victim, shooting him multiple times in the head and chest with a .45-caliber firearm outside Club Mirage in downtown Baltimore. A closed-circuit television camera captured the incident, and showed Dent arriving at Club Mirage with four other MMP members, including one who was wearing a red shirt with the words “MOBB SQUAD” on the back and filmed the victim with a tablet device shortly before the shooting.
On November 4, 2012, Dent possessed with intent to distribute roughly 12 grams of heroin and 21 grams of crack cocaine, as well as MMP paperwork. The paperwork detailed the history and structure of the gang, as well as certain rules of conduct, including that “retaliation is a must,” and that “co-operation with authorities that lead[s] to incriminating others” is punishable by death.
On April 15 and April 22, 2015, Dent distributed crack cocaine on Gwynn Oak Avenue to an undercover officer who was wearing an audio-video recording device.
Twenty-five defendants have been convicted in the case, including five who were convicted by a federal jury on April 30, 2019 after a six-week trial.
This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
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.
This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
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 A. Hoffman and Lauren E. Perry, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
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Maumee man indicted on child pornography charges and for attempting to coerce what he believed to be a 14-year-old girl to engage in sexual activityRead the Press Release
A Maumee man was indicted for attempting to coerce what he believed to be a 14-year-old girl to engage in sexual activity.
Ryan Davis, 30, was indicted on one count of coercion or enticement and one count of receipt or distribution of child pornography.
Davis, between April 24 and 30, 2019, attempted to coerce an undercover agent posing as a 14-year-old girl to engage in sexual activity, according to the indictment.
Davis knowingly received and distributed child pornography between 2016 and 2019, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the FBI. It is being prosecuted by Assistant U.S. Attorney Tracey Ballard Tangeman.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Massachusetts Restaurant Owner Pleads Guilty to Conspiracy to Defraud the IRSRead the Press Release
A Denham, Massachusetts, resident pleaded guilty today in Boston to conspiring to defraud the United States by impeding the lawful functions of the Internal Revenue Service (IRS), announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents, Ayaz Ali Shah co-owned and operated a carry-out restaurant called “New York Fried Chicken and Pizza” that conducted business in Dorchester, Massachusetts. The indictment alleges that Shah, together with his co-defendants, Muhamad Siuyab Khan and Khurshed Jehan Badshah, conspired to defraud the United States from 2009 through 2014. The co-defendants each owned twenty percent of the business, but during the five-year period charged in the indictment, Shah and his co-conspirators allegedly agreed to underreport the business’s gross receipts, cost of goods sold, and net profit, and to report these false amounts on Shah’s 2012 and 2013 individual tax returns.
The indictment against Khan and Badshah remains pending. An indictment merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Chief United States District Judge Patti B. Saris scheduled Shah’s sentencing for Sept. 19, 2019. Shah faces a maximum sentence of five years in prison on the conspiracy charge. He also faces a period of supervised release, restitution and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS Criminal Investigation, the FBI Boston Division, U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI), and the Boston Police Department, who conducted the investigations, and Trial Attorneys Mark McDonald and Thomas Voracek of the Tax Division, who are prosecuting the case.
Marshall County man indicted for firearms violationRead the Press Release
WHEELING, WEST VIRGINIA – William M. Johnson, Jr., of McMechen, West Virginia, had his initial appearance in federal court today after being indicted by a federal grand jury sitting in Wheeling this week for a firearms violation, United States Attorney Bill Powell announced.
Johnson, age 30, is charged with one count of “False Statement to Acquire Firearm.” Johnson is accused of making a false statement when purchasing a firearm. Johnson is accused of claiming the weapon was for his use, when, in fact, he purchased the .40 caliber pistol for a convicted felon. The crime took place in August 2018 in Ohio County.
Johnson faces up to 10 years incarceration and a fine of up to $250,000. 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.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Robert H. McWilliams, Jr. is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
U.S. Magistrate Judge James P. Mazzone presided.
Manhattan U.S. Attorney Announces Criminal and Civil Charges Against CEO of Clothing Company for Million-Dollar Customs FraudRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Angel M. Melendez, the Special Agent in Charge of the New York Office of the U.S. Department of Homeland Security, Homeland Security Investigations (“HSI”), and Troy Miller, Director, Field Operations, New York, U.S. Customs and Border Protection (“CBP”), announced today the filing of criminal and civil charges against JOSEPH BAILEY, the CEO of a children’s apparel company headquartered in Manhattan. BAILEY was charged, in an indictment unsealed today, with participating in a years-long scheme to defraud U.S. Customs and Border Protection (“CBP”) by submitting invoices to CBP that falsely understated the true value of the goods his company imported into the United States. BAILEY’s scheme resulted in the loss of over $1 million in duty revenue to the United States.
BAILEY was arrested today, and will be presented before Chief U.S. Magistrate Judge Gabriel W. Gorenstein in Manhattan federal court later today. The criminal case has been assigned to U.S. District Judge William H. Pauley III. In addition, a civil fraud lawsuit against BAILEY and his companies, Stargate Apparel, Inc. (“STARGATE”) and Rivstar Apparel, Inc. (“RIVSTAR”), which is assigned to U.S. District Judge J. Paul Oetken, was unsealed in Manhattan federal court earlier today. The civil complaint, which was filed on April 19, 2019, under seal, asserts that BAILEY, STARGATE, and RIVSTAR violated the False Claims Act by submitting invoices to CBP that falsely understated the true value of the goods they imported into the United States. The conduct in this matter was first brought to the attention of federal law enforcement by a whistleblower who filed a lawsuit under the False Claims Act.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Joseph Bailey defrauded the United States by several schemes with one theme – misrepresenting the value of imported goods to avoid payment of customs duties. Bailey now faces criminal charges for his alleged fraud, and the government’s civil suit seeks treble damages and penalties against Bailey and his companies.”
HSI Special Agent in Charge Angel M. Melendez said: “Bailey is alleged to have undervalued imported goods, leading to a loss to the government of more than a million dollars in duty revenue. It is important to remember that customs fraud is not a victimless crime, as it affects legitimate trade and business. Trade enforcement is a priority for HSI, and we will continue to partner with CBP as we investigate those fraudsters and bring them to justice.”
CBP Director of New York Field Operations Troy Miller said: “U.S. Customs and Border Protection provided a critical link in an ongoing investigation that resulted in the takedown of an elaborate criminal enterprise. It is through our interagency partnerships, and collaborative approaches like the one leading to today’s arrests, that law enforcement successfully combats modern criminal organizations.”
According to the allegations in the Government’s indictment and civil complaint[1]:
From in or about 2007 to in or about 2015, BAILEY and other employees of STARGATE engaged in a scheme fraudulently to understate the value of goods imported into the United States. During the charged time period, STARGATE purchased much of its merchandise from a manufacturer located in China (“Manufacturer-1”). Starting shortly after STARGATE began doing business with Manufacturer-1 in 2007, through approximately 2010, BAILEY and others at STARGATE engaged in a double-invoicing scheme by which STARGATE would receive two sets of invoices from Manufacturer-1 for the same shipment of goods. One invoice, referred to as the “pay by” invoice, was significantly higher and reflected the actual price paid by STARGATE for the goods. The second invoice reflected a significantly lower price for the goods and was presented to CBP. This allowed STARGATE to pay a fraudulently lower amount of customs duties.
In approximately 2010, BAILEY and other employees of Stargate began a new variation of the customs fraud scheme, involving invoices for “sample” goods, by which Manufacturer-1 would send two separate sets of invoices for a given shipment that together reflected the true price STARGATE actually paid to Manufacturer-1 for a particular shipment of clothing. The first invoice, typically entitled the “commercial invoice,” described the goods purchased and was submitted to CBP. The second invoice purportedly reflected amounts paid by STARGATE for “sample” goods and was not submitted to CBP. Sample goods are not subject to customs duties.
The “samples” invoice was not, in fact, for samples actually purchased by STARGATE. Rather, it was a means to make an additional payment to Manufacturer-1 for actual goods purchased by Stargate without disclosing that payment to CBP. Typically, the “samples” invoices reflected a unit price for sample goods that was significantly greater than the unit price for the non-sample goods reflected on the invoice submitted to CBP (for example, $70-$90 per unit on the “samples” invoice versus a $4 per unit price on the “commercial invoice”). In addition, the “samples” invoice reflected the purchase of unusually large quantities of sample goods. For example, the “samples” invoice reflected quantities as large as 24 or 48 pieces of a single color in a single style.
This multi-year fraud scheme resulted in the loss of over $1 million in duty revenue to the United States.
In addition to these allegations, the Government’s civil fraud complaint also alleges that BAILEY, STARGATE, and RIVSTAR engaged in similar schemes involving additional manufacturers. Similar to the schemes involving Manufacturer-1, these schemes involved a second invoice, which purported to be for “samples,” “accessories,” “commissions,” or “testing costs,” but in reality reflected an additional payment made by the defendants for the same goods described in first invoice, but that was not submitted to CBP. Through these schemes the defendants undervalued the goods that entered into the United States by tens of millions of dollars.
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BAILEY is charged with one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison, one count of wire fraud, which carries a maximum sentence of 20 years in prison, and one count of falsely effecting the entry of goods into the United States, which carries a maximum sentence of two years. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. BAILEY, STARGATE, and RIVSTAR are also charged with civil claims under the False Claims Act, through which the Government may recover treble damages and civil penalties arising from his conduct.
Mr. Berman thanked HSI and U.S. Customs and Border Protection for their efforts and ongoing support and assistance with the case.
The criminal case is being handled by the Office’s Complex Frauds Unit, and Assistant U.S. Attorneys Dina McLeod and Dominika Tarczynska are in charge of the prosecution.
The civil case is being handled by the Office’s Civil Frauds Unit, and Assistant U.S. Attorneys Dominika Tarczynska and Jean-David Barnea are in charge of the matter.
The charges contained in the indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the texts of the indictment and the civil complaint, and the descriptions of the indictment and civil complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Man from Missouri sentenced to 18 months in prison for failure to surrender to serve prison sentenceRead the Press Release
MONROE, La. – United States Attorney David C. Joseph announced that Gary Lynn Ward, 51, of St. Charles, Missouri, was sentenced on Wednesday by United States District Judge Terry Doughty to serve 18 months in prison. Ward pleaded guilty on March 6, 2019, to an indictment charging him with failure to surrender for service of sentence. The 18-month sentence will run consecutive to the previous 46-month prison sentence he received on June 29, 2015, resulting in a total of 64 months in prison.
Ward, who is a former resident of Ouachita Parish, pleaded guilty in U.S. District Court, Western District of Louisiana, on March 9, 2015, to conspiracy to distribute anabolic steroids, and was sentenced on June 29, 2015, to 46 months in prison. He was required to self-surrender on August 3, 2015, but Ward filed a motion on July 23, 2015, to extend his reporting date, which was granted. His self-surrender date was then set for September 14, 2015.
Ward’s spouse contacted the U.S. Marshals Service in Shreveport on the day of his surrender to inform them that they were traveling by car to St. Louis, Missouri, so Ward could report to U.S. Marshals Service there. While at a gas station, Ward stated that he was “not going back to jail,” forced his wife out of the car and sped away. He never reported to the U.S. Marshals Service in St. Louis or his designated Bureau of Prisons facility at FCI Forrest City Low, in Forrest City, Arkansas. Law enforcement agents arrested Ward on January 7, 2017, in the St. Louis, Missouri, area for failing to report to prison.
The U.S. Marshals Service and the U.S. Bureau of Prisons investigated the case. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
MS-13 Member Sentenced for Unlawful Possession of a FirearmRead the Press Release
BOSTON – An MS-13 member was sentenced yesterday for being an illegal alien in possession of a firearm and ammunition.
Nery Rodriguez Diaz, 19, a Salvadoran national who resided in Chelsea, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to 14 months in prison and three years of supervised release. Diaz will also be subject to deportation proceedings upon completion of his sentence.
On May 22, 2018, Diaz and another MS-13 member, Elmer Alfaro Hercules, were arrested in possession of loaded firearms in Bremen Street Park in East Boston, a location where numerous MS-13 gang members have been observed and where gang-on-gang violence frequently occurs.
The investigation revealed that Diaz and Hercules each separately and unlawfully entered the United States in 2014 as unaccompanied minors. Both Diaz and Hercules were charged federally for being aliens in possession of a firearm and ammunition.
Hercules previously pleaded guilty and was sentenced to 13 months in prison and three years of supervised release. Hercules will also be subject to deportation proceedings after the completion of his sentence.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Suffolk County District Attorney Rachel Rollins; Boston Police Commission William Gross; and Chelsea Police Chief Brian Kyes made the announcement today.
Los Angeles Dentist Sentenced to 40 Months in Prison for Role in $3.8 Million Health Care Fraud SchemeRead the Press Release
A Los Angeles, California-based dentist was sentenced to 40 months in prison today for his role in a $3.8 million health care fraud scheme in which he billed numerous dental insurance carriers for crowns and fillings that were never provided to patients.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Nicola T. Hanna of the Central District of California, Acting Assistant Director in Charge John P. Selleck of the FBI’s Washington, D.C. Field Office and Assistant Director in Charge Paul D. Delacourt of the FBI’s Los Angeles Field Office made the announcement.
Benjamin Rosenberg, D.D.S., 59, of Los Angeles, was sentenced by U.S. District Judge John A. Kronstadt of the Central District of California, who also ordered Rosenberg to pay $1,414,011.59 in restitution. Rosenberg pleaded guilty on Jan. 31, 2019, to one count of health care fraud.
As part of his guilty plea, Rosenberg admitted that he submitted and caused to be submitted approximately $3,853,931 in false and fraudulent claims to various insurance companies for dental care that he knew had not been rendered. Rosenberg further admitted that he submitted these false and fraudulent claims to Denti- Cal (California Medi-Cal Dental Program), Metlife, Anthem, Cigna, Delta Dental, Guardian, LMCO-DHA, United Healthcare and United Concordia (the carriers), which caused the carriers to pay Rosenberg approximately $1,415,011.
This case was investigated by the FBI. Trial Attorney Emily Z. Culbertson of the Criminal Division’s Fraud Section is prosecuting the case.
The Fraud Section leads the Medicare Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Long Island Man Sentenced to More Than 10 Years’ Imprisonment for Stealing More Than $1 Million from Dead Woman’s Estate and for Possession of Child PornographyRead the Press Release
John Derounian was sentenced today in federal court in Central Islip by United States District Judge Joan M. Azrack to 51 months’ imprisonment for mail fraud and 70 months’ imprisonment for possession of child pornography, to run consecutively, for a total sentence of 121 months’ imprisonment. The Court also ordered him to pay $1,403,209.17 in restitution for his theft of more than $1.2 million from the estate of a deceased victim (Jane Doe), and a $10,000 fine. Derounian pleaded guilty to the charges in June 2018.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Philip R. Bartlett, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS), announced the sentence.
“Derounian’s crimes were unconscionable and today’s sentence is well deserved,” stated United States Attorney Donoghue.
“When it comes to evil deeds, there is nothing more despicable than preying on children and robbing the dead. Today’s sentence is a lesson in karma and justice; when you break the law, your crimes will eventually be exposed,” stated USPIS Inspector-in-Charge Bartlett.
On November 12, 2015, Derounian claimed to have found the body of his tenant, Jane Doe, inside her Sea Cliff residence. He then telephoned and emailed employees at Morgan Stanley, in an attempt to obtain over $200,000 from Doe’s account. As a further part of the scheme, Derounian forged a will naming himself executor and sole beneficiary of Doe’s estate, had the body of Doe cremated, sold Doe’s real property for over $1 million, and transferred the proceeds into bank accounts he controlled.
The government’s case is being handled by the Office’s Long Island Criminal and Civil Divisions. Assistant United States Attorney Mark E. Misorek is in charge of the prosecution, and Assistant United States Attorney Robert W. Schumacher of the Office’s Civil Division is handling matters relating to forfeiture.
The Defendant:
JOHN DEROUNIAN
Age: 51
Sea Cliff, New YorkE.D.N.Y. Docket No. 16-412 (S-1) (JMA)
Lawton Man Pleads Guilty to Explosives and Gun ChargesRead the Press Release
OKLAHOMA CITY – PHILIP JAMES HEATH, 51, of Lawton, has pleaded guilty to being a felon in possession of both explosives and firearms, announced Timothy J. Downing, United States Attorney for the Western District of Oklahoma.
On February 4, 2019, Heath was charged by complaint with possession of firearms after a felony conviction. According to an affidavit executed by a special agent with the Bureau of Alcohol, Tobacco, Firearms, and Explosives, on the morning of January 30, 2019, officers of the Lawton Police Department responded to a 911 call regarding a domestic disturbance at an apartment. The woman who made the call allegedly told the dispatcher Heath had pointed a gun at her and threatened her. The complaint explained that after the responding officers detained Heath, they saw the buttstock of a rifle in plain view, sticking out from between a mattress and box springs. It was alleged they ultimately discovered three pistols and two rifles. Because of items discovered in the apartment, numerous FBI personnel responded immediately to assess and mitigate any threat and to ensure public safety.
On April 3, a federal grand jury returned a two-count indictment that alleged not only illegal possession of firearms, but also illegal possession of explosives, which under the relevant criminal statute includes detonating cord. The indictment sought forfeiture of five firearms, 1,404 rounds of various kinds of ammunition, and two lengths of detonating cord.
Today Heath pleaded guilty to both counts. At sentencing, which will take place in approximately ninety days, he faces a potential penalty on each count of ten years in prison, a fine of $250,000, and three years of supervised release.
Heath has been in the custody of the U.S. Marshals Service since early March.
This case is a result of an investigation by the Lawton Police Department, the Oklahoma Highway Patrol, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the FBI Oklahoma City Division. Prosecuted by Assistant U.S. Attorneys Brandon Hale and Travis D. Smith, the case is part of Project Safe Neighborhoods, the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions. As part of this strategy, PSN focuses on the most violent offenders and partners with local prevention and re-entry programs for lasting reductions in crime.
Reference is made to public filings for more information.
Lawton Hospital, Two Physicians, and a Nurse Practitioner to Pay $155,000 to Settle Civil Penalty ClaimsRead the Press Release
Oklahoma City – COMANCHE COUNTY MEMORIAL HOSPITAL; SCOTT MICHENER, M.D.; MICHAEL RAMOS, M.D.; and ERNESTINE OLSON, A.P.R.N., have agreed to pay a combined $155,000 to settle civil penalty claims stemming from allegations they violated the Comprehensive Drug Abuse Prevention and Control Act of 1970 and its regulations, announced United States Attorney Timothy J. Downing.
Michener, Ramos, and Olson are medical providers who worked in clinics affiliated with Comanche County Memorial Hospital in Lawton, Oklahoma. The United States alleges that from October 10, 2016, to October 19, 2018, the hospital and the individual providers did not maintain proper records related to orders of testosterone filled by the hospital and requested by Michener, Ramos, and Olson. The hospital’s purchase and delivery records did not contain the required names, addresses, and DEA registration numbers of the individual providers to whom the controlled substances were distributed, and the purchase and delivery records maintained by the individual providers did not contain the required names, addresses, and DEA registration numbers of the supplier or the actual date of receipt.
To resolve these allegations, the hospital agreed to pay $70,000, Michener and Ramos each agreed to pay $35,000, and Olson agreed to pay $15,000 to the United States.
In reaching this settlement, the hospital and the individual providers did not admit liability, and the government did not make any concessions about the legitimacy of the claims. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.
This case was investigated by the Drug Enforcement Administration, Office of Diversion Investigation. Assistant U.S. Attorneys Ronald R. Gallegos and Amanda R. Johnson prosecuted the case.
Lawrence Man Pleads Guilty to Distributing FentanylRead the Press Release
CONCORD - Anthony Cabrera, 27, of Lawrence, pleaded guilty in federal court to distribution of fentanyl, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on March 12, 2019, the defendant traveled from Massachusetts to New Hampshire and sold approximately 49 grams of fentanyl to an undercover officer in Salem, New Hampshire.
Cabrera is scheduled to be sentenced on September 23, 2019.
“Stopping interstate fentanyl trafficking is a primary goal for law enforcement in New Hampshire,” said U.S. Attorney Murray. “In order to prevent the distribution of this lethal drug, we will prioritize coordination with all of our law enforcement partners to identify, arrest, and prosecute those who are responsible for bringing this deadly substance into the Granite State.”
This matter was investigated by the Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorney Anna Krasinski.
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Las Vegas Woman Indicted for Using over 40 Stolen Identities to Collect $170,000 in Unemployment InsuranceRead the Press Release
LAS VEGAS, Nev. – A Las Vegas woman was arrested and arraigned Wednesday in federal court in connection to a 13-count indictment for using more than 40 stolen identities to collect $170,000 in fraudulent unemployment insurance benefits, announced United States Attorney Nicholas A. Trutanich for the District of Nevada.
Danielle Lacharis Buck, aka “Danielle Lacharis Lakey,” 42, was charged with three counts of mail fraud, four counts of wire fraud, one count of using an unauthorized access device, and five counts of aggravated identity theft. United States Magistrate Judge Carl W. Hoffman scheduled a trial date for August 12, 2019.
According to allegations in the indictment, which was unsealed yesterday, from about September 2010 to April 2019, Buck participated in a scheme to defraud the California Employment Development Department (EDD) into paying her more than $170,000 in unemployment insurance benefits. As part of the scheme, Buck fraudulently obtained personal identifying information, such as names, dates of birth, and social security numbers of unsuspecting individuals, and then electronically filed false unemployment claims using the stolen names and information. She filed more than 50 false unemployment insurance claims using more than 40 different identities. When EDD approved one of Buck’s false claims, Bank of America mailed her an electronic benefits payment debit card loaded with unemployment insurance benefits. Buck then used the debit card to withdraw the benefits in the form of cash from ATMs in the Las Vegas and Los Angeles metropolitan areas.
The EDD is the administrator of the federally funded unemployment insurance benefit program for residents of the State of California.
If convicted, the maximum penalty is 160 years in prison.
The case was investigated by the Department of Labor-Office of the Inspector General and the California Employment Development Department. Assistant United States Attorney Tony Lopez is prosecuting the case.
Charges contained in an indictment are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Large-Scale Counterfeit Fentanyl Pill Dealer Convicted at TrialRead the Press Release
Tampa, FL – United States Attorney Maria Chapa Lopez announces that a federal jury has found Dion Gregory Fisher (33, formerly of Seminole) guilty of conspiring to manufacture and distribute fentanyl and fentanyl analogue, and money laundering. Because Fisher was convicted of distributing more than 400 grams of fentanyl and more than 100 grams of fentanyl analogue, he faces a mandatory minimum sentence of 10 years, up to life, in federal prison. In addition to the conspiracy count, the jury found Fisher guilty of five counts of fentanyl distribution and manufacturing and eight counts of committing money laundering transactions involving more than $10,000 of narcotics proceeds. A preliminary order of forfeiture was entered for several high-end vehicles, real property, and jewelry that Fisher had purchased with fentanyl proceeds, as well as for cash proceeds. A sentencing date has not yet been set.
According to the testimony and evidence presented at trial, Fisher and others, including Christopher McKinney, manufactured and distributed hundreds of thousands of counterfeit oxycodone 30 mg blue and white pills that were made with fentanyl, that Fisher had ordered from China. Fisher ordered pill presses from China, some of which were seized by Homeland Security. He also purchased binding and cutting agents used during the pill-manufacturing process. Fisher and McKinney distributed thousands of fentanyl pills to Phil Morose, formerly of Boston, in person when Morose traveled to Tampa, and later by U.S. mail to various addresses in Boston.
Fisher was charged with his co-defendant, Sam Huffman, who had used the pill presses and materials provided by Fisher to press fentanyl pills at his automotive business in Pinellas Park. Fisher also stored fentanyl and fentanyl analogue in a work bay in Clearwater. In January and February 2018, large quantities of fentanyl and fentanyl analogue were seized from both locations, as well as from Fisher’s residence in Seminole, and McKinney’s residence and work bay. More than three kilograms of fentanyl and fentanyl analogue were admitted into evidence during the seven-day trial.
Fisher laundered the proceeds from his fentanyl pill sales with Konrad Guzewicz, who owned and operated automotive and tire-and-rim companies in Pinellas County. Fisher purchased several high-end luxury vehicles, including an Aston Martin, a Bentley, a Maserati, a BMW, and an Audi R8, with fentanyl proceeds. Guzewicz also laundered fentanyl cash proceeds for Fisher. On four occasions, Fisher provided Guzewicz with $35,000 in cash he had obtained from selling fentanyl pills, and Guzewicz in turn wrote Fisher a $30,000 check from his business and personal accounts.
On June 28, 2018, Guzewicz pleaded guilty to four counts of money laundering. He faces up to 10 years in federal prison for each count. His sentencing hearing is scheduled for July 2, 2019.
On July 2, 2018, McKinney pleaded guilty to conspiring to distribute and manufacture more than 4000 grams of fentanyl and more than 100 grams of fentanyl analogue. He faces a mandatory minimum penalty of 10 years, up to life, in federal prison. His sentencing hearing is scheduled for June 28, 2019.
On October 9, 2018, Huffman pleaded guilty to the fentanyl conspiracy and is scheduled to be sentenced on June 24, 2019. He faces a mandatory minimum penalty of 10 years, up to life, in federal prison.
On January 26, 2019, Morose pleaded guilty to conspiring to distribute and manufacture more than 4,000 grams of fentanyl and more than 100 grams of fentanyl analogue. He faces a mandatory minimum penalty of 10 years, up to life, in federal prison. His sentencing hearing is scheduled for July 8, 2019. In a related case, Morose has been indicted on one count of money laundering in Boston.
This case was investigated by the Middle District of Florida Opioid Fraud and Abuse Detection Unit – one of 12 Department of Justice pilot programs created to help combat the devastating opioid crisis that is ravaging families and communities across America and to prosecute individuals that are contributing to the opioid epidemic. It was investigated by the Drug Enforcement Administration, the Pinellas County Sheriff’s Office, the Pinellas Park Police Department, the Tarpon Springs Police Department, the United States Postal Inspection Service, the U.S. Marshals Service, and IRS – Criminal Investigation. It is being prosecuted by Assistant United States Attorneys Kelley Howard-Allen, Maria Guzman, and Greg Pizzo.
KC-Area Man Sentenced for Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., area man was sentenced in federal court today for illegally possessing a firearm.
Seneca Harrison, 36, was sentenced by U.S. District Judge Stephen R. Bough to seven years and eight months in federal prison without parole.
On Dec. 10, 2018, Harrison was found guilty at trial of being a felon in possession of a firearm. Harrison was in possession of a loaded Maverick by Mossberg 12-gauge pump action pistol grip shotgun with an obliterated serial number.
A Blue Springs, Mo., police officer conducted a traffic stop of Harrison’s vehicle on April 9, 2018. Harrison was driving a silver GMC Yukon eastbound on 40 Highway. When Harrison stopped his vehicle, he got out of the vehicle and began to walk away. The officer told Harrison to return to his vehicle, but Harrison continued walking away. When the officer attempted to detain Harrison, he resisted by pulling away and pushing the officer. During this interaction, the officer observed the strong odor of alcohol coming from Harrison’s breath. According to court documents, it was later determined that his blood alcohol content was nearly double the legal limit several hours after he was driving his vehicle.
Another officer arrived on the scene and saw the shotgun in the driver’s seat of Harrison’s vehicle. Harrison was arrested. Harrison kicked the rear door of the patrol vehicle while he was being transported to the Blue Springs jail, yelled profanities and threatened to assault the officers. Upon arrival at the jail, Harrison continued to be combative as he threatened and cursed at the officers.
When placed in a holding cell, according to court documents, Harrison removed a small plastic baggie from his sock that contained a white powdery substance and flushed it down the toilet. It was never determined what the baggie contained, but an empty prescription pill bottle that contained residue that field tested positive for methamphetamine was located in Harrison’s cell. Harrison said, “Oh yeah that’s mine. It’s got my name on it.” Harrison continued to be combative and refused to provide a breath test. He was transported to St. Mary’s Hospital for a blood draw. While at the hospital, Harrison said, “I’m kinda glad you guys got me. You knew I was going to kill someone tomorrow. I was about to go away for a long time.” Harrison uttered this multiple times in various ways.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Harrison has two prior felony convictions for burglary and prior felony convictions for unlawful possession of a firearm, stealing, unlawful use of a weapon, and possession of marijuana. He was on parole for illegally possessing a firearm at the time of this offense.
According to court documents, Harrison used a firearm to break into an occupied residence in April 2008; he then pointed the firearm at victims in the residence, and stole property. While still on parole for the April 2008 incident, in March 2016 he threatened an estranged girlfriend, broke into her residence, and fired a firearm into the residence. Harrison has displayed belligerent and threatening behavior in other incidents, according to court documents, including against law enforcement in Clinton County, Mo., related to a drunk driving arrest, against a Wal-Mart employee and a security officer when a money transfer could not be completed, and when he inflicted bodily injury on an estranged girlfriend.
Harrison has also been charged in Jackson County Circuit Court with a felony offense of driving while intoxicated and with several misdemeanor offenses related to the incident that resulted in this federal prosecution.
This case was prosecuted by Assistant U.S. Attorneys Matthew Moeder and Ashleigh Ragner. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Blue Springs, Mo., Police Department.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone.KC Man Sentenced to 25 Years for Drug Trafficking That Led to Kidnapping, TortureRead the Press Release
KANSAS CITY, Mo. – Two men have been sentenced in federal court this week for their roles in a drug-trafficking conspiracy that led to the kidnapping and torture of an Independence, Mo., man.
Gerald L. Holmes, also known as “Jerry” or “Joker,” 27, and Richard M. Phoenix, also known as “Snake,” 77, were sentenced in separate appearances before U.S. District Judge Greg Kays. Holmes was sentenced to 25 years in federal prison without parole. Phoenix was sentenced to five years in federal prison without parole.
On Aug. 17, 2018, Holmes pleaded guilty to one count of conspiracy to commit kidnapping, one count of kidnapping, one count of conspiracy to distribute 50 kilograms or more of marijuana, and one count of brandishing firearms in furtherance of a drug-trafficking crime.
During the conspiracy, which lasted from May 1 to Sept. 13, 2016, co-defendant Jeremy R. Bond, 40, of Independence, invested $10,000 into the marijuana operation. In return, he received $1,000 a week as interest and free marijuana until the entire principal investment was repaid in full. This investment allowed Holmes and a co-conspirator, identified in court documents as “C.H.” (who had made four trips to Colorado with Gerald Holmes), to purchase greater quantities of marijuana per trip. Once it reached the greater Kansas City metropolitan area, the marijuana was then resold by Gerald Holmes and C.H.
Conspirators purchased at least 120 pounds of marijuana from co-defendant Michael C. Borrusch, also known as “Birdie,” 43, of Lakewood, Colo., for which they made more than a dozen trips between Colorado and Kansas City. Holmes paid Borrusch between $1,600 to $2,400 per pound, depending on the type and quality of marijuana available. Holmes’s father and co-defendant, Randal G. Holmes, also known as “Peckerwood” or “Wood,” 54, of Kansas City, Mo., received $100 for every pound of marijuana brought back to Kansas City because of his prior connection to Borrusch, who was previously his supplier.
On Sept. 12, 2016, Gerald and Randal Holmes agreed to kidnap C.H. because he stole $16,000 that was intended for the purchase of marijuana. C.H. spent the money in Las Vegas, Nev.
They arrived at the Independence, Mo., residence of the victim’s father, identified as “W.H.,” on Sept. 12, 2016. During their conversation, Gerald Holmes removed a firearm from his waistband and placed it on a table in front of W.H. They told W.H. to call C.H. and tell him he was being held at gunpoint and that C.H. needed to come to the residence right away. When C.H. arrived at the residence, Randal Holmes pointed a firearm at him and told him to get into his vehicle. While in the vehicle, Gerald Holmes struck, punched, and choked C.H. as Randal Holmes drove away.
They took C.H. to Randal Holmes’s residence, where they met Phoenix, who was living with Randal Holmes and his wife. C.H. was taken to the basement, where he was assaulted with fists, a hammer, and tin snips/clippers. Gerald Holmes attempted to remove the victim’s pinkie finger and a toe. During the assault, Randal Holmes repeatedly demanded that C.H. disclose where the duffle bag containing the money was located. Randal and Gerald Holmes left to retrieve the duffle bag while Phoenix held C.H. at gunpoint with instructions to shoot him if he got off the desk he had been sitting on.
Randal Holmes later drove C.H. to a rural residence near Edwards, Mo. As Randal Holmes drove them to the residence, Gerald Holmes continued to strike C.H. with fists and the butt of a firearm. When they arrived at the residence, C.H. was told to call his father and to tell him that he was okay, that he had taken a beating, that he would be home in a couple of days, and that he deserved what had happened.
Law enforcement officers were able to trace the telephone call and on Sept. 13, 2016, officers were able to locate C.H. and arrest the conspirators. Officers observed that C.H. had suffered multiple, visible injuries to his face, head, hands, and feet. Officers noted that C.H. had trouble walking, that his face was black and blue, as well as swollen with traces of dried blood. Upon receiving medical treatment, it was determined that C.H. had also suffered a fracture in his left hand.
Officers found a Jimenez Arms 9mm pistol in Randal Holmes’s vehicle and a Hi-Point 9mm pistol in the residence where C.H. had been held. Officers also found an FN Herstal .40-caliber pistol, a Remington .270-caliber rifle, an RG .22-caliber revolver, a Ruger .22-caliber rifle, a Mossberg .20-gauge shotgun, 36.4 grams of marijuana, and drug paraphernalia in another residence.
Gerald Holmes and Phoenix are the final defendants to plead guilty and be sentenced in this case. Randal Holmes was sentenced to 15 years in federal prison without parole. Borrusch was sentenced to 3 years and 10 months in federal prison without parole. Jeremy R. Bond, 40, of Independence, was sentenced to two years and six months in federal prison without parole.
This case was prosecuted by Assistant U.S. Attorney Brad K. Kavanaugh. It was investigated by the Independence, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Benton County, Mo., Sheriff’s Department, the Missouri State Highway Patrol and the FBI.
Justice Department Reaches Agreement with McKinley County, New Mexico, to Ensure Accessible VotingRead the Press Release
The Department of Justice today reached a settlement under the Americans with Disabilities Act (ADA) with McKinley County, New Mexico, to ensure that the County’s polling places are accessible to individuals with mobility and vision impairments. The County is home to the Zuni Pueblo and parts of the Navajo Nation, and more than two dozen of the County’s polling places are located on Indian reservations.
Based on a complaint, the Department of Justice surveyed and assessed the County’s voting program for compliance with the ADA. The Department’s survey identified architectural barriers under the ADA at County polling places, including inaccessible parking, ramps that were too steep, and doorways that were too narrow. Under the ADA, counties that conduct local, state, or federal elections may not select polling places that are inaccessible during elections to individuals with disabilities. Under the terms of the settlement agreement, McKinley County will begin remediating its voting program in time for its next election. To make its selected polling places accessible, the County will employ temporary measures, such as portable ramps, signage, and propped open doors, as well as certain permanent changes, such as paved parking and ramps. In addition, the County will train its poll workers on the requirements of the ADA and how to use temporary measures to ensure each polling place is accessible during elections. Furthermore, the County will survey polling locations for accessibility and maintain the accessibility of each polling place it uses on Election Day. When selecting future polling places, the agreement requires the County to select locations that will be accessible during elections. The Department of Justice will monitor the County’s compliance with the agreement and provide the County with technical assistance.
“Through this settlement, McKinley County will ensure that its polling places are accessible to voters with disabilities so that they have an equal opportunity to exercise one of their most fundamental rights, the right to vote,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “We applaud the County’s commitment to providing equal access to the polls.”
“The right to cast a ballot and participate in elections is at the heart of our democracy,” said John C. Anderson, U.S. Attorney for the District of New Mexico. “Disability should never stand as an impediment to the exercise of this fundamental right. Today’s settlement ensures the citizens of McKinley County that their polling places will be accessible to all eligible voters.”
This settlement is part of the Department’s ADA Voting Initiative, which focuses on protecting the voting rights of individuals with disabilities. A hallmark of the ADA Voting Initiative is its collaboration with jurisdictions to increase accessibility at polling places. Through this Initiative, the Department of Justice has surveyed more than 1,600 polling places and increased polling place accessibility in more than 35 jurisdictions, including Harris County, Texas; Chicago, Illinois; Richland County, South Carolina; and Dauphin County, Pennsylvania.
For more information about the ADA and today’s agreement, please visit http://www.ada.gov or call the toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY).
The settlement agreement can be found here.