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Tuesday 16 April 2019
Justice Department Settles Claims Against Farmersville, Texas, Involving Denial of Islamic CemeteryRead the Press Release
WASHINGTON – The Department of Justice and the U.S. Attorney’s Office for the Eastern District of Texas today announced an agreement with the City of Farmersville, Texas, to resolve allegations that the City violated the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA) when, in July 2017, it denied an application by the Islamic Association of Collin County (Islamic Association) to build a cemetery.
“There is no place in our community for religious discrimination,” said U.S. Attorney Joseph D. Brown. “Our office is committed to protecting religious freedom.”
“Federal law protects the rights of all religious communities to buy or rent land for religious purposes including places of worship, religious schools, charitable activities, and cemeteries without discrimination or the imposition of unwarranted burdens,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Department of Justice will continue to vigorously enforce this important right.”
The settlement agreement resolves a lawsuit the United States filed today in the U.S. District Court for the Eastern District of Texas. After the City denied the Islamic Association’s application to build a religious cemetery, the United States opened an investigation of the City’s actions in September 2017. In August 2018, the United States notified the City that it had concluded that the City had violated RLUIPA and intended to file suit, and offered the City an opportunity to negotiate a resolution. In September 2018, the City and the Islamic Association entered into a separate agreement allowing for the approval of the cemetery and in December 2018, the City approved the Islamic Association’s application to develop the land as a cemetery.
The United States’ complaint alleges that the City’s denial of the Islamic Association’s application to develop the property as a cemetery imposed a substantial burden on the Islamic Association’s religious exercise and discriminated against the Islamic Association on the basis of religion. The City denies the allegations. As part of the agreement, the City has agreed to provide training to its officials and employees about their obligations under RLUIPA and to notify the public about the City’s compliance with RLUIPA in its zoning and land use actions.
RLUIPA is a federal law that protects religious institutions from unduly burdensome or discriminatory land use regulations. In June 2018, the Justice Department announced its Place to Worship Initiative, which focuses on RLUIPA’s provisions that protect the rights of houses of worship and other religious institutions to worship on their land. More information is available at www.justice.gov/crt/placetoworship.
In July 2018, the Department of Justice announced the formation of the Religious Liberty Task Force. The Task Force brings together Department components to coordinate their work on religious liberty litigation and policy, and to implement the Attorney General’s 2017 Religious Liberty Guidance.
Individuals who believe they have been subjected to discrimination in land use or zoning decisions may contact the Civil Rights Division Housing and Civil Enforcement Section at (800) 896-7743, or through the complaint portal on the Place to Worship Initiative website. More information about RLUIPA, including questions and answers about the law and other documents, may be found at http://www.justice.gov/crt/about/hce/rluipaexplain.php.
This matter is being handled by Eastern District of Texas Assistant U.S. Attorney James Gillingham and Civil Chief Josh Russ.
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Houston Man Gets Significant Sentence for Carjacking and Related OffenseRead the Press Release
HOUSTON – A 35-year-old Houston man has been ordered to federal prison for carjacking and discharging a firearm during a crime of violence, announced U.S. Attorney Ryan K. Patrick. A federal jury sitting in Houston convicted Sean Rodriguez Sept. 26, 2018, after approximately three hours of deliberation following a three-day trial.
Today, Chief U.S. District Judge Lee H. Rosenthal handed Rodriguez a 80-month sentence for the carjacking. He also received an additional 10 years for the firearms charge which must be served consecutively to the other sentence imposed. The sentences will be immediately followed by two years of supervised release. In handing down the sentence, the court noted that this was a serious and dangerous crime and that the defendant was lucky that no one was injured or killed during the crime or his flight.
During the trial, the jury heard from victims who were carjacked at gunpoint. Both described how Rodriguez brandished a silver revolver and pointed it at them. Rodriguez had pistol-whipped the male victim, at which time the gun discharged above the man’s head.
A neighbor also provided testimony who explained how she helped the female victim after she ran to her house to call 911. The jury also heard that call.
The jury also heard from four police officers were involved in a high-speed chase after Rodriguez refused to pull over in the stolen vehicle three days later. The jury saw a helicopter video of the chase and the dash cam of one of the officers. During the chase, Rodriguez went the wrong way down streets at high rates of speed, nearly hit pedestrians and other vehicles before crashing into a family of six.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI, Texas Department of Public Safety, Houston Police Department, Harris County Institute of Forensic Science and Harris County Sherriff’s Office conducted the investigation. Assistant U.S. Attorneys Jennie Basile and Britni Cooper are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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.
Herndon Man Pleads Guilty to CyberstalkingRead the Press Release
ALEXANDRIA, Va. – A Herndon man pleaded guilty today to cyberstalking a victim in New York.
According to court documents, Brandon Theresa, 21, engaged in an extensive cyberstalking campaign against a victim from at least May 2015 through December 2018. During that time, he accessed the victim’s online accounts without the victim’s permission and periodically impersonated the victim and the victim’s friends to gain information about the victim’s comings and goings. As part of that conduct, Theresa established U.S. Postal Service Informed Delivery accounts, which provide detailed information about the mail received at a particular address, using the personal information of the victim and the victim’s friends and family member in order to further place the victim under surveillance.
Theresa pleaded guilty to cyberstalking and faces a maximum penalty of five years in prison when sentenced on July 26. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Michael Ray, Inspector in Charge of Analytics/Cyber Division of the U.S. Postal Inspection Service, and Matthew J. DeSarno, Special Agent in Charge, Criminal Division, FBI Washington Field Office, made the announcement after Senior U.S. District Judge Claude M. Hilton accepted the plea. Assistant U.S. Attorney Laura Fong is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-118.
Guilty Plea in Illegal Firearms SalesRead the Press Release
PROVIDENCE - A Providence man pleaded guilty in U.S. District Court on Monday to selling two firearms, one with an obliterated serial number, to a local person and one to an undercover law enforcement out-of-state resident.
Diosvany Cabreja Renosa, 21, pleaded guilty to possession of a firearm with an obliterated serial number and sale of a firearm to an out-of-state resident, announced United States Attorney Aaron L. Weisman, Special Agent in Charge of the Boston Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Kelly D. Brady, and Providence Police Chief Colonel Hugh T. Clements, Jr.
According to information presented to the Court, on April 9, 2018, Reynosa, 21, sold an individual in Providence a 9mm pistol with an obliterated serial number, and on November 15, 2018, he sold an undercover ATF agent, who lives in Massachusetts, a semi-automatic rifle with a drum magazine.
In the first transaction, Reynosa acknowledged to the buyer that he was selling him a firearm with an obliterated serial number. In the second transaction, the undercover agent clearly stated to Reynosa that he was a Massachusetts resident. Reynosa acknowledged that he was aware that the person to whom he was selling the firearm did not live in Rhode Island.
According to ATF records, Reynosa is not a federally licensed firearms dealer.
Reynoso was arrested by members of the ATF Task Force on December 19, 2018, six days after a federal grand jury returned a sealed indictment in this matter.
Reynoso is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on August 30, 2019.
Possession of a firearm with an obliterated serial number and sale of a firearm to an out-of-state resident are punishable by statutory penalties of up to 5 years in federal prison to be followed by up to 3 years supervised release.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
The matter was investigated by ATF, the ATF Task Force, and the Providence Police Department. U.S. Attorney Aaron L. Weisman acknowledges and thanks the Pawtucket Police Department for their assistance in the investigation of this matter.
The ATF Task Force is comprised of law enforcement agents and officers from ATF, the Providence and Pawtucket Police Departments, Rhode Island State Police, and the Rhode Island Department of Corrections.
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Four Extradited from Peru for Operating Spanish-Speaking Call Centers that Extorted U.S. ConsumersRead the Press Release
Four Peruvian residents have been extradited to the United States, where they stand accused of operating a large-scale extortion scheme from 2012 through 2015, the Justice Department and U.S. Postal Inspection Service today announced.
Jesus Gerardo Gutierrez Rojas, 37, Maria de Guadalupe Alexandra Podesta Bengoa, 38, Virgilio Ignacio Polo Davila, 43, and Omar Alfredo Portocarrero Caceres, 39, face federal charges in Miami. Peruvian authorities arrested the four in late 2017, based upon a U.S. indictment. All four remained incarcerated in Peru since the time of their arrest. Peru approved their extradition to the U.S. on Jan. 18, 2019.
“The Department of Justice will pursue criminals who target and extort U.S. consumers, wherever they are,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “Those who extort U.S. consumers by phone cannot escape justice by placing their calls from abroad. I thank the Republic of Peru for extraditing these individuals to face charges in U.S. courts.”
“Individuals who defraud American consumers will be brought to justice, no matter where they are located,” said U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida. “Protecting the elderly and vulnerable members of our community from extortion schemes, such as this one, is a top priority of this Office and the Department of Justice, and I thank the U.S. Postal Inspection Service for their unwavering commitment to rid the U.S. mail system of these schemes. This is a reminder to our community to be wary of those individuals who threaten imprisonment, a negative credit score or a change in immigration status; please report those threats immediately.”
“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.”
Podesta, Polo, and Portocarrero allegedly managed and operated Peruvian call centers that placed calls to Spanish-speaking consumers across the United States while lying and threatening them into paying fraudulent settlements for nonexistent debts. Many of the consumer victims were elderly. Gutierrez was allegedly the general manager of a larger company where he worked in partnership with Podesta, Polo, and Portocarrero to facilitate their extortion scheme. The defendants’ associates in Miami collected the payments and sometimes shipped packages to victims in the U.S.
According to the allegations in the indictment, Podesta, Polo, Portocarrero, and their employees in Peru used Internet-based telephone calls and claimed to be attorneys and government representatives to threaten victims in the United States. The callers falsely claimed that victims failed to pay for or receive a delivery of products. The callers also falsely claimed that victims would be sued and that the companies would obtain large monetary judgements against them. Some victims were also threatened with negative marks on their credit reports, imprisonment, or immigration status. The callers said these threatened consequences could be avoided if the victims immediately paid “settlement fees.” Many victims made monetary payments based on these baseless threats.
A 34-count federal indictment was filed against the defendants in the U.S. District Court for the Southern District of Florida on Dec. 6, 2016, and was unsealed upon the defendants’ extradition to the U.S. The defendants are approved to face 12 extortion counts pending against them. An indictment merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The case is being prosecuted by Trial Attorney Phil Toomajian of the Department of Justice’s Consumer Protection Branch. 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.
Four Extradited from Peru for Operating Spanish-Speaking Call Centers that Extorted U.S. ConsumersRead the Press Release
Four Peruvian residents have been extradited to the United States, where they stand accused of operating a large-scale extortion scheme from 2012 through 2015, the Justice Department and U.S. Postal Inspection Service today announced.
Jesus Gerardo Gutierrez Rojas, 37, Maria de Guadalupe Alexandra Podesta Bengoa, 38, Virgilio Ignacio Polo Davila, 43, and Omar Alfredo Portocarrero Caceres, 39, face federal charges in Miami. Peruvian authorities arrested the four in late 2017, based upon a U.S. indictment. All four remained incarcerated in Peru since the time of their arrest. Peru approved their extradition to the U.S. on Jan. 18, 2019.
“The Department of Justice will pursue criminals who target and extort U.S. consumers, wherever they are,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “Those who extort U.S. consumers by phone cannot escape justice by placing their calls from abroad. I thank the Republic of Peru for extraditing these individuals to face charges in U.S. courts.”
“Individuals who defraud American consumers will be brought to justice, no matter where they are located,” said U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida. “Protecting the elderly and vulnerable members of our community from extortion schemes, such as this one, is a top priority of this Office and the Department of Justice, and I thank the U.S. Postal Inspection Service for their unwavering commitment to rid the U.S. mail system of these schemes. This is a reminder to our community to be wary of those individuals who threaten imprisonment, a negative credit score or a change in immigration status; please report those threats immediately.”
“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.”
Podesta, Polo, and Portocarrero allegedly managed and operated Peruvian call centers that placed calls to Spanish-speaking consumers across the United States while lying and threatening them into paying fraudulent settlements for nonexistent debts. Many of the consumer victims were elderly. Gutierrez was allegedly the general manager of a larger company where he worked in partnership with Podesta, Polo, and Portocarrero to facilitate their extortion scheme. The defendants’ associates in Miami collected the payments and sometimes shipped packages to victims in the U.S.
According to the allegations in the indictment, Podesta, Polo, Portocarrero, and their employees in Peru used Internet-based telephone calls and claimed to be attorneys and government representatives to threaten victims in the United States. The callers falsely claimed that victims failed to pay for or receive a delivery of products. The callers also falsely claimed that victims would be sued and that the companies would obtain large monetary judgements against them. Some victims were also threatened with negative marks on their credit reports, imprisonment, or immigration status. The callers said these threatened consequences could be avoided if the victims immediately paid “settlement fees.” Many victims made monetary payments based on these baseless threats.
A 34-count federal indictment was filed against the defendants in the U.S. District Court for the Southern District of Florida on Dec. 6, 2016, and was unsealed upon the defendants’ extradition to the U.S. The defendants are approved to face 12 extortion counts pending against them. An indictment merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The case is being prosecuted by Trial Attorney Phil Toomajian of the Department of Justice’s Consumer Protection Branch. 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.
Former Wichita Policeman Pleads Guilty to Protecting Illegal Poker GamesRead the Press Release
WICHITA, KAN. – A former Wichita police officer pleaded guilty Tuesday to looking the other way for years while co-defendants made a business of operating illegal private poker games, U.S. Attorney Stephen McAllister said.
Michael Zajkowski, 51, pleaded guilty to one count of concealing a felony. In his plea, he admitted he knew about illegal private poker games in Wichita and he did not report it to authorities. On Feb. 12, 2014, one of the co-defendants suspected an undercover Wichita police officer had come to a poker game posing as a gambler. At the co-defendant’s request, Zajkowski attempted to find out whether there was a police investigation and provided information to the co-defendant.
Sentencing is set for Aug. 2. Both parties have agreed to recommend Zajkowski serve a year on federal probation. McAllister commended the FBI, the Wichita Police Department, Assistant U.S. Attorney Mona Furst and Assistant U.S. Attorney Aaron Smith for their work on the case.
Former Student Pleads Guilty to Destroying Computers at the College of St. RoseRead the Press Release
ALBANY, NEW YORK – Vishwanath Akuthota, age 27, of Albany, pled guilty today to causing damage to computers owned by The College of St. Rose.
The announcement was made by United States Attorney Grant C. Jaquith; James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Chief Eric Hawkins of the Albany Police Department (APD).
Akuthota admitted that on February 14, 2019, he inserted a “USB Killer” device into 66 computers, as well as numerous computer monitors and computer-enhanced podiums, owned by the college in Albany. The “USB Killer” device, when inserted into a computer’s USB port, sends a command causing the computer’s on-board capacitors to rapidly charge and then discharge repeatedly, thereby overloading and physically destroying the computer’s USB port and electrical system.
Akuthota admitted that he intentionally destroyed the computers, and recorded himself doing so using his iPhone, including making statements such as “I’m going to kill this guy” before inserting the USB Killer into a computer’s USB port. Akuthota also admitted that his actions caused $58,471 in damage, and has agreed to pay restitution in that amount to the College.
Akuthota is a citizen of India, residing in the United States on a student visa. He has been in custody since he was arrested in North Carolina on February 22, 2019.
When he is sentenced on August 12, 2019 by United States District Judge Mae A. D’Agostino, Akuthota faces up to 10 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the FBI and APD, and is being prosecuted by Assistant U.S. Attorney Wayne A. Myers.
Former State Criminal Investigator Sentenced to over Three Years in Federal Prison for ExtortionRead the Press Release
Jackson, Miss. – Frank Saddler, 52, of Ridgeland, was sentenced today by U.S. District Judge Henry T. Wingate to serve 39 months in federal prison for extortion, announced U.S. Attorney Mike Hurst, FBI Special Agent in Charge Christopher Freeze, and Dax Roberson, Special Agent in Charge of the U.S. Department of Agriculture Office of Inspector General - Southwest Regional Office. Judge Wingate also ordered Saddler to pay $28,374.64 in restitution to the victims and to serve three years of supervised release upon completion of his prison sentence.
Saddler was a certified law enforcement officer working for the Mississippi Department of Human Services charged with investigating criminal fraud related to the Supplemental Nutrition Assistance Program ("SNAP"), a program funded by the United States Department of Agriculture. From July 23, 2014 to June 15, 2015, Saddler extorted money from convenience store owners who had been charged with criminal violations relating to SNAP in exchange for not pursuing criminal charges against them. Saddler would tell store owners that they were paying restitution to the State of Mississippi when, in fact, they were making payments to Saddler which he deposited in his own bank account.
The case was investigated by the Office of the Inspector General for the U.S. Department of Agriculture and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Dave Fulcher.
Former Medical Practice Employee Charged with Stealing Controlled SubstancesRead 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 Shannon Lambert, 33, of Canandaigua, NY, was arrested and charged by criminal complaint with obtaining controlled substances by fraud. The charge carries a maximum penalty of four years in prison and a fine of $250,000.
Assistant U.S. Attorney Sean C. Eldridge, who is handling the case, stated that according to the complaint, between January 2018 and February 2019, Lambert worked at Cornerstone Eye Associates in Rochester, NY. As part of her employment, the defendant had access to an electronic prescription program which doctors at Cornerstone used to write and submit prescriptions to pharmacies on behalf of their patients. Lambert fraudulently accessed the program by logging in as a doctor who worked at Cornerstone, and then used the program to issue prescriptions for Schedule II and III controlled substances to herself and others who were not Cornerstone patients. These substances included Vicodin, Hydrocodone, and Oxycodone. Investigators reviewed prescription records and identified 73 fraudulent prescriptions issued by the defendant, totaling approximately 5,048 prescription pills. All such prescriptions were issued without the knowledge or authorization of a doctor, and were issued by Lambert without a legitimate medical purpose.
The defendant made an initial appearance before U.S. Magistrate Judge Marian W. Payson, and was released on conditions. Further proceedings in this case are scheduled before Judge Payson on May 10, 2019, at 9:00 a.m.
The criminal complaint is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Former Colombian Police Officer Sentenced to More Than 12 Years for Attempted Cocaine SmugglingRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew today sentenced Santiago Silva-Ortiz (28, Colombia) to 12 years and 7 months in federal prison for conspiracy to possess with the intent to distribute five kilograms or more of cocaine on a vessel subject to the jurisdiction of the United States.
Silva-Ortiz had pleaded guilty on January 14, 2019.
According to testimony and court documents, Silva-Ortiz served as a member of the Colombian National Police for two years and became involved with narco-traffickers. On October 10, 2018, Silva-Ortiz served as the load guard on a go-fast vessel that was interdicted south of the Dominican Republic by the United States Coast Guard. Silva-Ortiz and his conspirators were attempting to smuggle more than 1,190 kilograms of cocaine.
In March 2019, the captain of the go-fast vessel, Eulices De Jesus Barliza-Lopez, was sentenced to 11 years and 3 months in federal prison for his role in the offense.
This case was investigated by the Panama Express Strike Force (PANEX) - a federally approved Organized Crime Drug Enforcement Task Force (OCDETF) consisting of U.S. Immigration and Customs Enforcement, the Drug Enforcement Administration, United States Coast Guard, Internal Revenue Service, Federal Bureau of Investigation, Pinellas County Sheriff’s Office, and the Florida Department of Law Enforcement. Operation Panama Express currently targets South American-based drug trafficking organizations responsible for smuggling drugs to the United States and elsewhere for distribution. This case was prosecuted by Assistant United States Attorney Thomas N. Palermo.
Feds Charge Eight in Owensboro Surge Targeting Community ViolenceRead the Press Release
OWENSBORO, Ky. – United States Attorney Russell M. Coleman announced in an Owensboro press conference that a federal grand jury has returned eight felony indictments against individuals charging multiple counts including firearms violations, and the possession and distribution of drugs.
The charges are part of an ongoing promise from the feds to be better partners outside of the Louisville region, and are in direct response to escalating violence in the Owensboro region. According to Owensboro Police Department statistics from January 1, 2018 through December 31, 2018, patrol officers responded to 126 shots fired calls.
“As a guy who spent his early years in Thruston out near Yellow Creek, , I know what a wonderful community this is; federal law enforcement is committed to being active partners in helping to protect it,” said U.S. Attorney Russell Coleman. “These indictments are a result of the feds teaming with the Owensboro Police Department and Sheriff Cain to better protect Daviess County families from narcotics trafficking and armed felons. More to come.”
U.S. Attorney Coleman was joined in the announcement by Owensboro Police Department Chief Arthur Ealum, and ATF ASAC L.C. Cheeks, Jr. These charges were developed through partnerships with multiple law enforcement agencies.
“ATF strives to be ‘no better partner’ to law enforcement agencies,” stated ATF Assistant Special Agent in Charge L.C. Cheeks Jr., of the Louisville Field Division. “During the past months, this partnership investigated illegal sources of crime guns and persons who illegally possessed or used guns to commit violent crimes in the Owensboro area. Together, we aggressively pursued ‘traffickers and trigger pullers,’ making use of crime gun intelligence to disrupt the shooting cycle. These efforts support the Department of Justice’s Project Safe Neighborhoods in making our communities safer for everyone.”
“The Owensboro Police Department is committed to reducing gun violence in our community,” said Owensboro Police Department Chief Arthur Ealum. “We are pleased to partner with the ATF and the office of United States Attorney Russell M. Coleman to help make our commitment a reality. The efforts here today should serve as a warning to all those who wish to prey on the vulnerable members of our community by trafficking in narcotics, unlawfully possessing a firearm or otherwise committing acts of violence in this community.
The Owensboro Police Department will work tirelessly with our local, state and federal partners to identify, charge and prosecute those offenders who commit serious offenses while in possession of firearms,” Ealum continued. “It is our hope that the seriousness and the certainty of punishment will serve as a deterrent to those who wish to engage in disruptive criminal behavior in this community.”
The eight defendants charged in this surge include:
- Joseph L. Howell, age 32, of Owensboro, Kentucky, who is charged in a three count indictment with possession with intent to distribute methamphetamine; use of/carrying a Taurus, model 709 Slim, 9 millimeter semiautomatic pistol during and in relation to a drug trafficking crime; and being a felon in possession of a firearm. Howell was previously convicted of first degree trafficking in methamphetamine in 2015, and convicted of manufacturing methamphetamine and tampering with physical evidence (two counts), each a felony in 2012.
- Larry Andrew Barnett, age 31, of Owensboro, Kentucky, who is charged in a one count indictment of being a felon in possession of a firearm, a Marlin, Model T95, .22LR semiautomatic rifle. Barnett was previously convicted of Wanton Endangerment in the first degree, a felony, in 2018.
- Jeremy L. Morrow, age 27, of Owensboro, Kentucky, who is charged in a one count indictment of being a felon in possession of a firearm, a Hi-Point, Model C9, 9 millimeter semiautomatic pistol. Morrow was previously convicted of Second-Degree Robbery, a felony, in 2011.
- Christen Shane Stewart, age 30, of Owensboro, Kentucky, who is charged in a one count indictment of being a felon in possession of a firearm, a Smith & Wesson, Model Bodyguard 380, .380 caliber semiautomatic pistol. Stewart was previously convicted of Second-Degree Robbery, a felony, in 2010.
- Seth Aaron Fenwick, age 28, of Owensboro, Kentucky, who is charged in a one count indictment of being a felon in possession of a firearm, a Rohm, model RG10, .22 caliber revolver, bearing an obliterated serial number. Fenwick was previously convicted of Third-Degree Burglary and Theft by Unlawful Taking/Automobile, felonies, in 2009.
- Jonathan Robert Miller, age 24, of Owensboro, Kentucky, is charged in a one count indictment of being a felon in possession of a firearm, a Kimber, model Micro 9, 9 millimeter semiautomatic pistol. Miller was previously convicted of First Degree Wanton Endangerment, a felony, in 2017.
- Carl Dikeith Warren, age 33, of Owensboro, Kentucky, who is charged in a one count indictment of being a felon in possession of a firearm, an Israeli Weapons Industries, Inc., model Baby Desert Eagle II, Compact Polymer 9 millimeter semiautomatic pistol bearing an obliterated serial number. Warren was previously convicted of Wanton Endangerment, First-Degree, a felony, in 2008.
- Jeremy V. Denson, age 27, of Owensboro, Kentucky, is charged in a one count indictment of being a felon in possession of a firearm, a Taurus, model PT111 Millennium, 9 millimeter semiautomatic pistol. Denson was previously convicted of trafficking marijuana, a felony, in 2016.
If convicted at trial, the maximum sentence for unlawfully possessing a firearm is no more than ten years in prison, a $250,000 fine, and three years of supervised release. If that firearm is possessed or used in furtherance of a drug trafficking crime, a defendant faces a mandatory minimum five years in prison in addition to the sentence received for the underlying charges, and could receive up to life in prison.
These cases are being prosecuted by Assistant United States Attorneys Seth Hancock, Leigh Ann Dycus and Madison Sewell, and were investigated by the Owensboro Police Department, Daviess County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
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 Kentucky. 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. Today’s announced indictments are part of the Project Safe Neighborhoods Initiative in the Western District of Kentucky.
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
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- Joseph L. Howell, age 32, of Owensboro, Kentucky, who is charged in a three count indictment with possession with intent to distribute methamphetamine; use of/carrying a Taurus, model 709 Slim, 9 millimeter semiautomatic pistol during and in relation to a drug trafficking crime; and being a felon in possession of a firearm. Howell was previously convicted of first degree trafficking in methamphetamine in 2015, and convicted of manufacturing methamphetamine and tampering with physical evidence (two counts), each a felony in 2012.
Drug Trafficker Gets 14 Years Added to Sentence for Conspiring to Deal Drugs While in Custody on Drug Trafficking ChargesRead the Press Release
CINCINNATI – Manuel Brijido Burciaga, 36, was sentenced today to an additional 168 months in prison for conspiring to deal drugs while in custody on pending federal drug trafficking charges.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Steve Francis, Special Agent in Charge, Homeland Security Investigations (HSI), the Northeast Hamilton County Drug Task Force (DART) and West Chester Police Chief Joel Herzog announced the sentence imposed today by U.S. District Judge Susan J. Dlott.
According to court documents, Burciaga was in custody in Butler County jail as he was being prosecuted for trafficking cocaine. He eventually received a 60-month sentence in April 2018 after pleading guilty to that charge.
In November 2016, Burciaga and his girlfriend, Yvette Estrella Rodriguez, 29, discussed the distribution of approximately 11 kilograms of methamphetamine. Burciaga arranged for her to connect with an outside contact to obtain the meth and distribute it in southern Ohio and elsewhere. Rodriguez met with an individual in January 2017 to make the deal. She and her mother, Socorro Rodriguez, 54, were arrested after she delivered five kilograms of meth.
“This case underscores the peril someone faces for continued drug trafficking activity while in custody,” U.S. Attorney Glassman said. “Although he was initially facing a five-year sentence, Burciaga will now be serving 19 years in federal custody due to his crimes.”
Yvette and Socorro Rodriguez have each pleaded guilty to conspiracy to distribute methamphetamine and are facing sentences of up to ten years.
Glassman commended the investigation by the federal, regional and local agencies, as well as Criminal Chief Kenneth L. Parker and Assistant U.S. Attorney Ebunoluwa Taiwo, who are representing the United States in the case.
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Des Moines Man Pleads Guilty to Defrauding United Way of Central Iowa and Embezzling from a Labor UnionRead the Press Release
Des Moines, IA—On April 15, 2019, Theodore Eric Watson, age 54, of Des Moines, Iowa, appeared before United States Magistrate Judge Celeste F. Bremer and entered guilty pleas to Mail Fraud and Embezzlement of Labor Union Assets.
Watson admitted from 2007 until September 2016, while employed as the Business Manager for Local 74 of the International Association of Heat and Frost Insulators and Allied Workers (AFL-CIO), he sent fraudulent requests for payment of grant funds for training adults to the United Way of Central Iowa. These fraudulent requests were unauthorized and unknown to Local 74. In one such circumstance, Watson obtained a check in the mail from United Way for $19,000 that Watson converted for his personal use.
Watson also admitted to embezzling from Local 74 by making unauthorized purchases and cash advances on a Local 74 credit card and then concealing the fraud by submitting altered credit card statements and false monthly reports to Local 74. Watson additionally opened a bank account in the name of Local 74, without Local 74’s consent or knowledge. From December 2013 through January 2016, Watson deposited Local 74 funds into this account, but used the money for his own purposes.
Watson faces up to 20 years imprisonment for mail fraud and up to five years imprisonment for embezzlement from the union. The Court will determine the restitution amount at sentencing. Sentencing is presently scheduled for August 23, 2019, at 10:30 a.m. before United States District Court Chief Judge John A. Jarvey at the Des Moines Federal Courthouse.
This matter was investigated by the United States Department of Labor–Management Standards. The case was prosecuted by the United States Attorney's Office for the Southern District of Iowa.
DeKalb Resident Indicted on Charges of Smuggling, Transporting and Harboring Illegal AliensRead the Press Release
ROCKFORD — A DeKalb resident, LUIS ALFREDO DELACRUZ, 49, was indicted today by a federal grand jury in Rockford on two counts of bringing aliens to the United States at a place other than a designated port of entry for commercial advantage or private financial gain, two counts of bringing aliens to the U.S. at a place other than a designated port of entry, two counts of transporting illegal aliens within the U.S. for commercial advantage or private financial gain, and eight counts of harboring illegal aliens for commercial advantage or private financial gain.
Delacruz will appear for arraignment on April 23, 2019, at 11:00 a.m., before U.S. Magistrate Judge Iain D. Johnston in Rockford.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and James M. Gibbons, Special Agent-in-Charge of the Chicago office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The DeKalb Police Department assisted in the investigation. The government is represented by Assistant U.S. Attorney Joseph C. Pedersen.
As alleged in the indictment, in November 2015 and April 2016, Delacruz brought to the United States two alien individuals who had not received prior official authorization to enter. Delacruz did not bring the individuals through immigration at a designated port of entry, the indictment states. It is further alleged that on June 1, 2018, Delacruz illegally harbored eight illegal aliens in buildings or other places through employment by Alfredo’s Iron Works in Cortland. Delacruz allegedly harbored these aliens for commercial advantage and his own financial gain.
Each count of bringing aliens to the United States at a place other than a designated port of entry for commercial advantage or private financial gain carries a mandatory minimum sentence of three years in prison and a maximum of ten years. Each count of bringing aliens to the U.S. at a place other than a designated port of entry carries a maximum sentence of five years in prison. Each count of transporting illegal aliens within the U.S. for commercial advantage or private financial gain and each count of harboring illegal aliens for commercial advantage or private financial gain carries a maximum sentence of ten years in prison. Each count in the indictment also carries a maximum fine of $250,000, and a period of supervised release following imprisonment of up to three years. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Corona Lawyer Admits Illegal Possession of Unregistered WeaponsRead the Press Release
LOS ANGELES – A California attorney and ex-Rialto police officer pleaded guilty today to one felony count of illegally possessing multiple unregistered weapons, including a short-barreled rifle, two silencers, and a hand grenade.
Sergio Lopez de Tirado, 43, of Corona, pleaded guilty to possession of an unregistered firearm and destructive device.
United States District Judge Fernando M. Olguin scheduled a September 26 sentencing hearing, where Lopez de Tirado will face a statutory maximum sentence of 10 years in federal prison. Lopez de Tirado is currently in custody without bond.
According to court documents, law enforcement found Lopez de Tirado asleep and apparently intoxicated in the passenger’s seat of a pickup truck that was parked with its doors wide open and blocking a driveway in Norco. During their search of the truck on December 21, 2018, authorities found a short-barreled 9-millimeter rifle, two silencers, and a hand grenade in a holster under his arm. Other items, such as high-capacity magazines, ammunition, and brass knuckles, were also found in the truck.
According to court documents, the firearms in the vehicle – including the short-barreled rifle and an AR-type rifle with a silencer – were loaded when recovered by authorities.
Lopez de Tirado admitted in his plea agreement that he had not registered the rifle, the silencers or the hand grenade with the National Firearms Registration and Transfer Record.
This case was investigated by the FBI’s Inland Empire Joint Terrorism Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Substantial assistance was provided by the Riverside County Sheriff’s Department, the Rialto Police Department, the Corona Police Department, and the California Highway Patrol.
This case is being prosecuted by Assistant United States Attorney Reema M. El-Amamy of the Terrorism and Export Crimes Section.
Clark County Man Sentenced for Possessing Carfentanil with Intent to DistributeRead the Press Release
DAYTON – Alandre J. Gilbreath, Jr., 34, of Springfield, was sentenced in U.S. District Court to 60 months in prison for possessing carfentanil with intent to distribute.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration, Springfield Police Chief Lee Graf and Acting Clark County Prosecutor Daniel P. Driscoll announced the sentence handed down by U.S. District Judge Thomas M. Rose.
According to court documents, in May 2017, Springfield police officers responded to reports of an attempted residential break-in and encountered Gilbreath standing on the porch of the house. They saw Gilbreath remove a baggie from his pocket and throw it into the yard.
“Officers picked up the bag, and forensic analysis at the Bureau of Criminal Investigation determined it contained 16.28 grams of a mixture of fentanyl and carfentanil,” U.S. Attorney Glassman said. “This amount is a quantity intended for distribution.”
Gilbreath pleaded guilty in December 2018 to one count of possessing with the intent to distribute more than 10 grams of carfentanil.
According to the DEA, carfentanil is an analogue of fentanyl and is 10,000 times more potent than morphine. Carfentanil is used in veterinary practice to immobilize large animals.
“Powerful opioids, such as Carfentanil, will continue to be a serious threat to America and Ohio as long as drug dealers such as Gilbreath are willing to put themselves and the community at risk,” said Special Agent in Charge Plancon. “Gilbreath was in possession of enough carfentanil to kill approximately 700 people. This case is a testament to the relentless determination of law enforcement to make a significant impact on the opioid supply in Ohio and to keep our communities drug free.”
U.S. Attorney Glassman commended the cooperative investigation by the DEA and Springfield Police Department, as well as Assistant United States Attorney Amy M. Smith, and Assistant U.S. Attorney Ryan Saunders, formerly with the Southern District of Ohio, who represented the United States in this case.
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Chilton County Man to Serve to Life in Prison for Transporting Two Minors and Producing, Transporting, and Possessing Child PornographyRead the Press Release
BIRMINGHAM – Chilton County man sentenced today for transporting two minor girls for illegal sexual activity and producing, transporting, and possessing child pornography, announced U.S. Attorney Jay E, Town and FBI Special Agent in Charge Johnnie Sharp Jr.
U.S. District Judge Madeline H. Haikala sentenced BRUCE NICHOLSON, 56 to life in prison.
NICHOLSON was convicted on October 18, 2018, for production, transportation, and possession of child pornography and transporting two minors with the intent to engage in unlawful sexual activity with them. According to the sentencing memorandum, for many years Nicholson had sexually abused both girls and fled the state of Alabama with them in 2012. They were on the road for more than month and spent time in Florida, North Carolina, and New York, before law enforcement authorities found them in Kentucky.
“The sentence handed down today ensures that this man, who stole the innocence of two girls, and a large part of their childhoods, can no longer take advantage of them or any other vulnerable child,” Town said. “Nicholson gave no sanctuary to these innocent girls and now has been sent away to federal prison for life where there is no sanctuary of parole.”
“A long prison sentence is well deserved for the defendant in this case,” SAC Sharp said. “The FBI will continue to use their tools to identify those who commit these horrendous acts, and will seek justice on behalf of their victims.”
FBI investigated the case, which Assistant U.S. Attorneys J.B. Ward and Don Long prosecuted.
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Child Sexual Predator Sentenced to 27 Years in PrisonRead the Press Release
NORFOLK, Va. – A Virginia Beach man was sentenced today to 27 years in prison for producing images of child sexual abuse of an 8 year-old victim.
“We must do everything possible to protect our children from dangerous sexual predators like Brown,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Child sexual abuse is a horrific and abhorrent crime. I want to thank our law enforcement partners and prosecutors for ensuring that Brown will now be in a place where he cannot prey on our most vulnerable victims.”
According to court documents and evidence, Leedente Darrell Brown, 32, met dozens of young girls, including an 8-year-old, in real life and online, and had them produce child pornography for him and other horrible sex offenders who were in group chat rooms with Brown. He was identified after a Virginia Beach Police Department officer responded to a Peeping Tom call. Investigators later learned that Brown was attempting to meet the 8-year-old girl to engage in sexual acts. The 8-year-old victim reported that Brown told her not to tell anyone, and if she did, he would kill her.
“Adults that prey on innocent children are despicable,” said Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk. “Brown’s victims will have to cope with the longstanding effects of his abuse for years to come. HSI special agents and our law enforcement partners will continue to investigate sexual predators like Brown to ensure they are prosecuted to the fullest extent of the law.”
Brown has a significant criminal history which includes violence. In 2005, he was convicted of Assault and Battery of an 11 year-old. He was also convicted in March 2013 for Assault and Battery for cutting someone inside the MacArthur mall.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Michael K. Lamonea, Assistant Special Agent in Charge of HSI Norfolk, and James A. Cervera, Chief of Virginia Beach Police made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorney Elizabeth M. Yusi prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-42.
Charter School Victims to Receive More Than a Half-Million in RestitutionRead the Press Release
HOUSTON – More than 4,000 parents who had entrusted their children to administrators at the Varnett Charter School are set to receive payments totaling more than $600,000, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge Perrye K. Turner of the FBI, Special Agent in Charge Neil Sanchez from the Department of Education – Office of Inspector General (ED-OIG) and Acting Special Agent in Charge Sarah Kull of IRS – Criminal Investigation (CI).
Marian Annette Cluff, 70, was the founding superintendent of The Varnett Public School, a charter school with three locations in Houston, while her husband - Alsie Cluff Jr., 69, was the facilities and operations manager. They pleaded guilty Aug. 25, 2017, to mail fraud and conspiracy to commit tax evasion charges for embezzling millions of dollars from the school.
In June 2018, U.S. District Judge Melinda Harmon sentenced Marian Cluff to 120 months imprisonment and to pay a $295,596 fine, while her husband was ordered to serve a 36-month term of imprisonment and pay a $88,678 fine. More importantly, however, was that both were also ordered to pay a total of $4,443,755.69 in restitution.
In less than a year following the sentencing hearing, the Financial Litigation Unit (FLU) of the U.S. Attorney’s Office – with the substantial assistance of the U.S. Marshal Service (USMS) – collected the total restitution ordered in the case.
In an amended order issued in March 2019, U.S. District Judge Andrew S. Hanen ordered that $604,889.76 of that amount be distributed to the identified victim parents of the school. The U.S. District Clerk’s Office has indicated that restitution payments to the parents will be handled on an expedited basis.
At the time of the sentencing, the court heard that the couple embezzled millions of dollars in funds that were intended for the operation and function of the charter school and its programs. These included “money orders” parents had submitted to pay for school field trips and student fundraisers, such as chocolate sales, book fairs, school carnivals and other school-related activities.
The Cluffs used their positions of trust and authority and diverted and concealed money received from vendors of the school, insurance companies and federal agencies into the off-book accounts for the purpose of diverting money intended for the charter school for their own personal use and benefit. The Cluffs concealed the accounts from the charter school office manager, the school’s external accountant and their income tax preparer.
Testimony at sentencing also revealed the Cluffs conspired to commit tax evasion of approximately $1,827,477.55 in tax, interest and penalties owed to the IRS. The Cluffs did not pay income taxes on the money they received as a result of the scheme.
The Cluffs were ordered to surrender to the U.S. Bureau of Prisons in August 2018 and are currently serving their sentences.
Today’s announcement comes as National Crime Victim Rights Week (NCVRW) draws to a close. Every April, the Office for Victims of Crime leads communities throughout the country in their annual observances of NCVRW. This year’s theme - Honoring Our Past. Creating Hope for the Future - celebrated the progress made by those before us as we look to a future of crime victim services that is even more inclusive, accessible and trauma-informed.
The Department of Justice’s Mega Victim Case Assistance Program (MCAP) has also conducted research in this case to identify the current addresses for parents of former students. If your child attended the Varnett Public School between 2007–2014 and you have not received any correspondence from the U.S. Attorney’s Office, please contact the Victim Witness Unit at 713-567-9445.
The FBI, IRS-CI and Ed-OIG conducted the investigation. ED-OIG, USMS, FLU, U.S. District Clerk’s Office and MCAP worked collectively to assist in the restitution matter.
Assistant U.S. Attorney Quincy L. Ollison prosecuted the criminal case.
CVS to Pay $535,000 for Filling Invalid PrescriptionsRead the Press Release
PROVIDENCE, R.I. - Pharmacy chain CVS Pharmacy, Inc. has agreed to pay $535,000 to resolve the United States’ allegations that several of its Rhode Island stores violated the federal Controlled Substances Act by filling invalid prescriptions, announced United States Attorney Aaron L. Weisman and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division.
The settlement caps an investigation by the United States Attorney’s Office for the District of Rhode Island and the DEA Office of Diversion Control of CVS’ conduct at several of its Rhode Island retail pharmacy locations in filling prescriptions for controlled substances with a high potential for abuse. Under the Controlled Substances Act and its implementing regulations, substances such as painkillers and opioids can only be prescribed for legitimate medical purposes by a physician. The law, however, also places a “corresponding responsibility” on the pharmacist filling the prescription to ensure that the prescription is valid and legal.
In this case, the United States alleged that CVS retail pharmacies in Rhode Island filled thirty-nine prescriptions for Percocet, a Schedule II narcotic, that CVS pharmacists had reason to know were forged.
Under the terms of this civil resolution, CVS will pay a civil penalty of $535,000 for its alleged conduct in the State of Rhode Island. CVS, while acknowledging that its pharmacists bear a corresponding responsibility under the Controlled Substances Act, has denied wrongdoing in this case.
United States Attorney Aaron L. Weisman commented, “This settlement demonstrates that the Department of Justice remains committed to using all the legal tools at its disposal to ensure that everyone in the chain of controlled substance distribution -- from physicians to pharmacists -- abides by the strict requirements of the law.”
“DEA registrants like CVS have a corresponding responsibility to dispense controlled substances in accordance with the Controlled Substance Act,” said DEA Special Agent in Charge Brian D. Boyle. “Pharmacies put patients at risk when they dispense Schedule II narcotics, which have the highest potential for abuse, without a valid and legal prescription. Today’s settlement demonstrates DEA’s commitment to work with our law enforcement and regulatory partners to ensure that these rules and regulations are followed.”
This matter was litigated by Assistant U.S. Attorney Richard Myrus.
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Bridgeport Man Sentenced to Federal Prison for Trafficking Homemade Machine GunsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that GEORGE JAIMAN, 70, of Bridgeport, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 14 months of imprisonment, followed by three years of supervised release, for trafficking machine guns. Judge Thompson also ordered Jaiman to pay a $1,000 fine and perform 100 hours of community service while he is on supervised release.
According to court documents and statements made in court, between July 2017 and April 2018, Jaiman’s coworker, Sean Dey, manufactured machine guns, including AK-47-style and AR-style machine guns, suppressors, and other firearms, in a basement workshop at Dey’s Torrington residence. Dey entered into an agreement with Jaiman to sell machine guns, suppressors and firearms to others for profit. Neither Dey nor Jaiman possessed a valid license to deal firearms.
The investigation also revealed that Jaiman’s son, Phillip Jaiman, sold some of Dey’s machine guns that he received from George Jaiman to individuals, including convicted felons, in the Bridgeport area.
George Jaiman was arrested on June 4, 2018. On October 26, he pleaded guilty to one count of unlawful possession of a machine gun.
Judge Thompson ordered Jaiman to report to prison on May 22.
On October 25, 2018, Dey pleaded guilty to one count of conspiracy to engage unlawfully in the business of selling firearms, and one count of unlawful possession and transfer of a machine gun. On February 13, 2019, he was sentenced to 24 months of imprisonment, followed by 12 months of home confinement and three years of supervised release, and 100 hours of community service.
On April 9, 2019, Phillip Jaiman pleaded guilty to one count of unlawful possession and transfer of a machine gun. He awaits sentencing.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Bridgeport Police Department. The case is being prosecuted by Assistant U.S. Attorney Rahul Kale.
Beaver Falls Man Indicted on Unlawful Possession of Firearms and Drug ChargesRead the Press Release
PITTSBURGH, PA - A resident of Beaver Falls, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal firearms and narcotics laws, United States Attorney Scott W. Brady announced today.
The three-count Indictment named Eliezer Rodriguez, 40, as the sole defendant.
According to the Indictment, Rodriguez was in possession of firearms while having been previously convicted of felonies; was in possession of a weapon in furtherance of a drug trafficking offense; and possessed with intent to distribute a quantity of a mixture of heroin, and N-phenyl-N-[1-(2-phenylethyl)-4-piperidinyl] propanamide, commonly known as fentanyl.
The law provides for a maximum total sentence of not less than five years and up to life in prison, a fine of not more than $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Special Assistant United States Attorney Chad R. Parks is prosecuting this case on behalf of the government.
The Beaver Falls Police Department and the Pennsylvania Office of Attorney General conducted the investigation leading to the Indictment in this case. This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Atlantic City, New Jersey, Man Admits Insurance Fraud, Drug DistributionRead the Press Release
CAMDEN, N.J. – An Atlantic City, New Jersey, man today admitted to staging a fake robbery of a Union County, New Jersey, pawnshop for the purpose of perpetrating an insurance fraud and to distributing illegal drugs, U.S. Attorney Craig Carpenito announced.
Salvatore “Sam” Piccolo, 67, of Atlantic City, a member of the Philadelphia La Cosa Nostra organized crime family, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with distribution 216 grams of methamphetamine and one count of wire fraud.
According to documents filed in this case and statements made in court:
Piccolo admitted that on April 19, 2014, he and an accomplice entered a pawnshop in Union County, purportedly to sell some silver items. Once inside the shop, the accomplice displayed a hand gun while Piccolo, wearing a nylon mask, chained the front doors closed to prevent anyone from entering. The owner was bound, as a pretense, while Piccolo and his accomplice looted the safe of what the owner told police was approximately $60,000 in cash, several pieces of jewelry, and a hand gun. The owner later submitted to his insurance company a fraudulent loss claim that was paid for approximately $174,000.
Piccolo also admitted making three sales of methamphetamine totaling 216 grams of the drug to an undercover FBI agent. Subsequent laboratory analysis determined the methamphetamine to be 99 percent pure.
The distribution of methamphetamine charge carries a minimum of 10 years in prison and a maximum penalty of life in prison; the wire fraud charge carries a maximum penalty of 10 years in prison. Both counts are also punishable by a fine of $250,000. Sentencing is scheduled for July 18, 2019.
U.S. Attorney Carpenito credited special agents of FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Patrick C. Askin of the Criminal Division, Camden Office, and Senior Litigation Counsel V. Grady O’Malley of the U.S. Attorney=s Office Organized Crime/Gangs Unit in Newark.
Apollo Man Pleads Guilty to Defrauding Social SecurityRead the Press Release
PITTSBURGH, PA- A resident of Apollo, Pennsylvania, pleaded guilty in federal court to a charge of theft of government money, United States Attorney Scott W. Brady announced today.
Danny Ray Alexander, 36, pleaded guilty to one count before Senior United States District Judge Donetta W. Ambrose.
In connection with the guilty plea, the Court was advised that between November 29, 2013 and December 30, 2016, Alexander, and his wife and codefendant, Tara Jo Frain, who pleaded guilty earlier this month, knowingly received $25,164 in Supplemental Security Income benefits to which they knew they were not entitled. In addition to the theft, Alexander took responsibility for making false statements to the Social Security Administration regarding his marital status, which impacted his eligibility to receive SSI disability payments, which was charged in a separate count of the Indictment. Specifically, the Court was informed, that in May of 2012, Frain and Alexander were married but Alexander did not inform the SSA of the change in his marital status and, in September of 2016, Alexander falsely claimed on a SSA form that he was not married.
Judge Ambrose scheduled sentencing for August 5, 2019, at 10:30 a.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Alexander remains on bond pending sentencing.
Assistant United States Attorney Rebecca L. Silinski and Adam N. Hallowell are prosecuting this case on behalf of the government.
The Social Security Administration – Office of Inspector General conducted the investigation that led to the prosecution of Alexander.
Alexandria man pleads guilty to being a felon in possession of a stolen pistolRead the Press Release
ALEXANDNRIA, La. – United States Attorney David C. Joseph announced today that Freddie Lewis, 28, of Alexandria, pleaded guilty before U.S. District Judge Dee D. Drell for possession of a firearm by a convicted felon.
On December 12, 2017, a Louisiana State Trooper stopped Freddie Lewis in Alexandria and found that he was in possession of a loaded Glock 22, .40-caliber pistol that had been reported stolen. Lewis is prohibited from possessing a firearm because of previous felony convictions that include possession of cocaine (2010), aggravated flight from an officer and simple burglary of a religious building (2013), obscenity (2015), and attempted possession of a firearm by a convicted felon (2017). Under federal law, felons are not allowed to possess a firearm or ammunition.
Lewis faces up to 10 years in prison, three years of supervised release and a $250,000 fine. Drell set the sentencing date for July 19, 2019.
The ATF and Louisiana State Police conducted the investigation. Assistant U.S. Attorney Mike O’Mara 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.
16 Individuals Charged or Arrested for Drug Trafficking Crimes as Part of Joint Law Enforcement EffortRead the Press Release
On April 16, 2019, the United States Attorney for the District of Vermont announced a multi-agency, multi-jurisdictional law enforcement effort that focused on drug trafficking in the area of Brattleboro, Vermont. During the three-day operation conducted last week by federal, state, local, and county officers, and federal and state prosecutors, law enforcement arrested or charged 16 individuals, searched 3 residences and 1 hotel room, and seized approximately 1,000 bags of heroin and 70 grams of cocaine base. Twelve individuals have been charged in federal court with participating in drug trafficking crimes. Two have been charged in state court with drug possession crimes.
Those charged in federal court include:
- Curtis Bunkley, 29, of Brattleboro, charged with distribution of cocaine base, distribution of fentanyl, and possession with intent to distribute heroin.
- Sarah Cassell, 32, of Brattleboro, charged with distribution of heroin and cocaine base.
- Arthur Fisk, 28, of Brattleboro, charged with conspiracy to distribute and possession with intent to distribute cocaine base.
- Daniel DeThomas, 37, of Hartford, Connecticut, charged with distribution of cocaine base.
- Luis Duprey, 24, of Holyoke, Massachusetts, charged with using a communication facility to facilitate the commission of a drug felony arising from his attempt to distribute 500 bags of heroin.
- Rachael Gauthier, 49, of Brattleboro, charged with distribution of heroin and fentanyl.
- Rory Jackson, 35, of Queens, New York, charged with possession with intent to distribute heroin and cocaine base.
- Holly Magnuson, 25, of Brattleboro, charged with conspiracy to distribute and possession with intent to distribute cocaine base.
- Robert Newton, 49, of Brattleboro, charged with distribution of heroin.
- Jocelyn Pond, 29, of Brattleboro, charged with distribution of fentanyl.
- Justine Pond, 29, of Brattleboro, charged with distribution of fentanyl.
- Jaylen Pryor, 18, of Brattleboro, charged with conspiracy to distribute and possession with intent to distribute cocaine base.
Those charged in state court include:
- Corey Archer, 38, of Brattleboro, Vermont, charged with cocaine possession.
- Lee Griffin, 36, of Brattleboro, Vermont, charged with cocaine possession.
Defendants Cassell and Newton are currently fugitives. All other defendants were arrested during the operation.
The charges against the defendants are only allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This operation stemmed from careful planning and collaboration by Vermont law enforcement at all levels. The enforcement surge involved the participation of the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Department of Homeland Security - Homeland Security Investigations; the Drug Enforcement Administration; the Federal Bureau of Investigation; the United States Marshals Service; the Brattleboro Police Department; the Vermont Drug Task Force; the Vermont State Police; CBP Air/Marine Unit; and New Hampshire Drug Task Force. Crucial support was provided by the Office of the Windham County State’s Attorney; the Vermont Attorney General’s Office; and the Office of the United States Attorney for the District of Massachusetts.
United States Attorney Christina E. Nolan stated: “Vermont lost 110 lives to drug overdose death last year, and the County with the most of those deaths was Windham County. This is an unacceptable tragedy. There is suffering from the drug crisis in every corner of Vermont, not least of all Brattleboro, in light of its geographic proximity to dealers based in the Springfield, Massachusetts area. This coordinated operation exemplifies the teamwork of Vermont law enforcement and our collective determination to deter and bring consequences to local and out-of-state dealers who ravage our communities. We will continue to surge federal, state, local, and county enforcement resources across the state to bring justice to those who profit from death and immense suffering. I commend this outstanding collaborative effort involving so many agencies and prosecutors’ offices.”
“Fentanyl and heroin abuse are at epidemic levels in Vermont and across the North East,” said DEA Special Agent in Charge Brian D. Boyle. “DEA is committed to aggressively pursuing Drug Trafficking Organizations or individuals who are coming from out of state to distribute these poisons, in order to profit and destroy people’s lives. This investigation demonstrates the strength of collaborative local, county, state and federal law enforcement efforts in Vermont and our strong partnership with the U.S. Attorney’s Office.”
“Operations like this demonstrate the critically important results that can be achieved through close coordination among state, local and federal law enforcement in Vermont,” said Peter C. Fitzhugh, Special Agent In Charge, U.S. Immigration and Customs Enforcement's Homeland Security Investigations, Boston. "Homeland Security Investigations is committed to maintaining our strong working relationship with our state, local and federal law enforcement colleagues in addressing the threats to public safety in the state of Vermont.”
“The operation was a large scale event with significant results directly connected to the strong partnerships that exist among our local, state and federal law enforcement agencies. As made evident by this event, the criminal element has no boundaries. This operation is a testament to our commitment to pursue and disrupt illegal activity in innovative and effective ways throughout Vermont,” stated U.S. Marshal Bradley J. LaRose.
“Effective coordination between federal, state, and local agencies is essential for us to identify and disrupt drug trafficking organizations,” said James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation. “Together, our agencies prevented 70 grams of crack cocaine and nearly 1,000 bags of heroin from being sold on our streets. The FBI, along with our law enforcement partners, is committed to investigating and bringing justice to the individuals arrested in this operation. Anyone who harms our communities with their drug dealing should know we're coming for you.”
“The success of this initiative is a testament to the hard work and dedication of all the law enforcement professionals in the region working in a truly collaborative fashion," said Kelly D. Brady, Special Agent-in-Charge of ATF’s Boston Field Division. "We could not ask for a better group of professionals to work with toward the shared goal of reducing violent crime in the City of Brattleboro and throughout Vermont."
“Resources from federal and state agencies combined with local law enforcement’s knowledge of the activities and needs of their community make a formidable team when conducting drug interdiction operations,” stated Brattleboro Police Chief Michael Fitzgerald. “Integrating multiple agencies in the execution of an operation requires extensive planning, coordination and cooperation. For us to be successful, we need to work together and take advantage of each other’s unique set of skills. This cooperation proved invaluable to the overall success of the most recent operation in Brattleboro. I would like to thank all the agencies which participated in the recent drug interdiction operation in Brattleboro. I would especially like to thank U.S. Attorney Christina Nolan and the members of her team who worked tirelessly over the past several months in coordinating this effort.”
Vermont Public Safety Commissioner Thomas D. Anderson stated: “Vermont has done a tremendous job in making opioid treatment available to anyone who wishes to get treatment. Unfortunately, as these arrests demonstrate, there continues to be a demand for illegal opioids throughout Vermont. One of the most important tactics in fighting Vermont’s opioid epidemic is reducing the supply of this deadly poison by taking dealers off our streets and holding them accountable. This month in Brattleboro, which has one of the highest rates of overdose deaths in the state, the Vermont Drug Task Force worked in close collaboration with local and federal law-enforcement partners to make numerous arrests that targeted the trafficking and sale of these illegal drugs. Our message must be clear: Stop selling, get into treatment, or get arrested. Our efforts to reduce the supply of drugs and the risk of overdose, and to bring offenders to justice, will continue.”
The Vermont Assistant U.S. Attorneys assisting in the operation and subsequent prosecutions are AUSAs John Boscia; Nate Burris; First Assistant U.S. Attorney Kevin Doyle; and Deputy Criminal Chief Jonathan Ophardt. Defendant Bunkley is represented by Chris Davis, Esq. Defendant Duprey is represented by the Office of the Federal Public Defender. Defendant Arthur Fisk is represented by Maryanne E. Kampmann, Esq. Defendant Gauthier is represented by David Watts, Esq. Defendant Jackson is represented by Richard Bothfeld, Esq. Defendant Magnuson is represented by Mary Kehoe, Esq. Defendant Justine Pond is represented by Thomas Sherrer, Esq. Defendant Jocelyn Pond is represented by Katina Ready, Esq. Defendant Jaylen Pryor is represented by the Office of the Federal Public Defender.
Monday 15 April 2019
Wisconsin Man Convicted of Sex Trafficking ChargesRead the Press Release
MADISON, WIS. – After a five-day trial, a federal jury in Madison, Wisconsin, found Erin F. Graham, Jr., 37, of Madison, guilty on Friday, April 12, of seven counts of sex trafficking. The verdict was announced by U.S. Attorney Scott C. Blader for the Western District of Wisconsin.
Evidence presented at trial established that between 2015 and 2017, Graham engaged in sex trafficking by force, coercion and fraud, and transported individuals across state lines with the intent that they engage in prostitution. Graham posted advertisements on Backpage.com and forced or coerced individuals to commit commercial sex acts with those who responded to the advertisements. In addition, Graham transported two individuals between Wisconsin and Virginia with the intent that they engage in prostitution.
The scheme was uncovered in April 2017 when law enforcement officials encountered one of the victims at a Madison hotel when an employee called 911 after the victim ran from her room bleeding and hid behind the front desk. The victim told a nurse at a Madison hospital that she had been strangled to the point of unconsciousness by Graham when she told him she wanted to leave.
The victims testified that they were forced to engage in multiple acts of prostitution and turn over money they earned to Graham and his girlfriend, Patience Moore, 28, of Madison. The victims testified that they were the only source of income for Graham and Moore. Moore pleaded guilty for her role in this sex trafficking scheme on March 14.
“Through violence and coercion, Graham exploited vulnerable young women into committing commercial sex acts for his profit. In the process the victims were often degraded and robbed of their human dignity,” said U.S. Attorney Blader. “We will continue to work closely with our law enforcement partners to bring human traffickers to justice.”
Traffickers use various techniques, including fraud, coercion and drugs – often opioids – to lure their victims and force them into commercial sexual or labor exploitation. The trauma caused by the traffickers can be so great that many may not identify themselves as victims or ask for help. The prosecution of sex traffickers is a priority for the Justice Department and all U.S. Attorneys’ Offices. Federal law provides severe penalties for these offenders. Since 2017, three sex traffickers convicted in the Western District of Wisconsin have received sentences totaling 58 years.
U.S. District Judge James Peterson scheduled Graham’s sentencing for July 1. Graham faces a mandatory minimum penalty of 15 years and a maximum of life in federal prison. Moore will be sentenced on June 5, and also faces a maximum of life.
The charges against Graham and Moore are the result of an investigation by the Dane County Sheriff’s Office, the Wisconsin Department of Justice Division of Criminal Investigation, with the assistance of the Madison, Grand Chute, Wisconsin State Capitol and Hampton (Virginia) Police Departments. The prosecution of the case is being handled by Assistant U.S. Attorneys Julie Pfluger and Kevin Burke.
UniCredit Bank AG Agrees to Plead Guilty for Illegally Processing Transactions in Violation of Iranian SanctionsRead the Press Release
UniCredit Bank AG (UCB AG), a financial institution headquartered in Munich, operating under the name HypoVereinsbank, and part of the UniCredit Group has agreed to enter a guilty plea to conspiring to violate the International Emergency Economic Powers Act (IEEPA) and to defraud the United States by processing hundreds of millions of dollars of transactions through the U.S. financial system on behalf of an entity designated as a weapons of mass destruction proliferator and other Iranian entities subject to U.S. economic sanctions. UniCredit Bank Austria (BA), another financial institution in the UniCredit Group, headquartered in Vienna, Austria, agreed to forfeit $20 million and entered into a non-prosecution agreement to resolve an investigation into its violations of IEEPA. UniCredit SpA, the parent of both UCB AG and BA, has agreed to ensure that UCB AG and BA’s obligations are fulfilled.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jessie K. Liu of the District of Columbia, Assistant Director in Charge William F. Sweeny of the FBI’s New York Field Office and Special Agent in Charge Kelly Jackson of the IRS-Criminal Investigations (CI) Washington Field Division made the announcement.
According to court documents, over the course of almost 10 years, UCB AG knowingly and willfully moved at least $393 million through the U.S. financial system on behalf of sanctioned entities, most of which was for an entity the U.S. Government specifically prohibited from accessing the U.S. financial system. UCB AG engaged in this criminal conduct through a scheme, formalized in its own bank polices and designed to conceal from U.S. regulators and banks the involvement of sanctioned entities in certain transactions. UCB AG routed illegal payments through U.S. financial institutions for the benefit of the sanctioned entities in ways that concealed the involvement of the sanctioned entities, including through the use of companies that UCB AG knew would appear unconnected to the sanctioned entity despite being controlled by the sanctioned entity.
“When the United States sanctioned Iranian entities for proliferating weapons of mass destruction, UCB AG went to great lengths to help one such entity – Islamic Republic of Iran Shipping Lines – evade sanctions to gain access to the U.S. financial system,” said Assistant Attorney General Benczkowski. “The integrity of our financial system requires financial institutions to comply with our laws, and UCB AG willfully failed to do so. Today’s guilty plea and $1.3 billion penalty are just punishments for undermining U.S. sanctions and putting our financial system at risk.”
“UCB AG’s actions in deliberately providing a designated weapons-of-mass-destruction proliferator with access to the U.S. financial system for almost two years after such access was prohibited by U.S. law were particularly egregious,” said U.S. Attorney Liu. “The bank’s impending guilty plea and the accompanying monetary penalty announced today send a clear message that financial institutions that subvert U.S. sanctions, and therefore our national security, should expect severe consequences.”
"This case is a prime example of how some institutions erroneously believe they can game the U.S. financial system and conceal their nefarious activity,” said Assistant Director in Charge Sweeney. "The FBI will root out and aggressively investigate institutions, like UCB AG, that conspire to violate U.S. sanctions on behalf of prohibited entities."
“The financial penalty announced today should dissuade other financial institutions around the world from scheming and circumventing U.S. sanctions by moving money around using various institutions and companies,” said Special Agent in Charge Jackson. “Following the money is what we do—so too is holding those accountable who try to avoid following the law.”
UCB AG will waive indictment and be charged in a one-count felony criminal information, according to documents to be filed in federal court in the District of Columbia, charging UCB AG with knowingly and willfully conspiring to commit violations of IEEPA and to defraud the United States, from 2002 through 2011. UCB AG has agreed to plead guilty to the information, has entered into a written plea agreement and has accepted responsibility for its criminal conduct. UCB AG will enter its guilty plea before a judge in the District of Columbia. UniCredit Group banks will pay total financial penalties of approximately $1.3 billion. The plea agreement, subject to approval by the court, provides that UCB AG will forfeit $316,545,816 and pay a fine of $468,350,000.
According to admissions in the non-prosecution agreement and accompanying statement of facts, between 2002 and 2012, BA used non-transparent methods to send payments related to sanctioned jurisdictions such as Iran through the United States. BA conspired to violate IEEPA and defraud the United States by processing transactions worth at least $20 million through the United States on behalf of customers located or doing business in Iran and other countries subject to U.S. economic sanctions or customers otherwise subject to U.S. economic sanctions. As a result of its crimes, BA will forfeit $20 million and has agreed to additional compliance and sanctions enhancements.
In addition, UCB AG has entered into a plea agreement with the New York County District Attorney’s Office (DANY) for violating New York State law pursuant to which it will pay $316,545,816. BA has also entered into a non-prosecution agreement with DANY for violating New York State law. DANY conducted its own investigation alongside the Justice Department.
UniCredit SpA, UCB AG and BA have also entered into various settlement agreements with the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC), the Board of Governors of the Federal Reserve System (the Federal Reserve) and the New York State Department of Financial Services (DFS) under which they will pay additional penalties of approximately $660 million as follows: $611,023,421 to OFAC, which will be satisfied in part by payments to the Justice Department and the Federal Reserve, $157,770,000 to the Federal Reserve and $405 million to DFS.
The case was prosecuted by Senior Trial Attorney Margaret A. Moeser of the Bank Integrity Unit in the Criminal Division’s Money Laundering and Asset Recovery Section, and Assistant U.S. Attorney Michelle Zamarin of the District of Columbia. The case was investigated by the FBI and the IRS-CI.
The Bank Integrity Unit investigates and prosecutes complex, multi-district, and international criminal cases involving financial institutions. The Unit’s prosecutions focus on banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.
The Department of Justice expressed its gratitude to DANY, OFAC, the Federal Reserve, DFS and the Justice Department’s Office of International Affairs.
UniCredit Bank AG Agrees to Plead Guilty for Illegally Processing Transactions in Violation of Iranian SanctionsRead the Press Release
WASHINGTON - UniCredit Bank AG (UCB AG), a financial institution headquartered in Munich, operating under the name HypoVereinsbank, and part of the UniCredit Group has agreed to enter a guilty plea to conspiring to violate the International Emergency Economic Powers Act (IEEPA) and to defraud the United States by processing hundreds of millions of dollars of transactions through the U.S. financial system on behalf of an entity designated as a weapons of mass destruction proliferator and other Iranian entities subject to U.S. economic sanctions. UniCredit Bank Austria (BA), another financial institution in the UniCredit Group, headquartered in Vienna, Austria, agreed to forfeit $20 million and entered into a non-prosecution agreement to resolve an investigation into its violations of IEEPA. UniCredit SpA, the parent of both UCB AG and BA, has agreed to ensure that UCB AG and BA’s obligations are fulfilled.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jessie K. Liu of the District of Columbia, Assistant Director in Charge William F. Sweeny of the FBI’s New York Field Office and Special Agent in Charge Kelly Jackson of the IRS-Criminal Investigations (CI) Washington Field Division made the announcement.
According to court documents, over the course of almost 10 years, UCB AG knowingly and willfully moved at least $393 million through the U.S. financial system on behalf of sanctioned entities, most of which for an entity the U.S. Government specifically prohibited from accessing the U.S. financial system. UCB AG engaged in this criminal conduct through a scheme, formalized in its own bank polices and designed to conceal from U.S. regulators and banks the involvement of sanctioned entities in certain transactions. UCB AG routed illegal payments through U.S. financial institutions for the benefit of the sanctioned entities in ways that concealed the involvement of the sanctioned entities, including through the use of companies that UCB AG knew would appear unconnected to the sanctioned entity despite being controlled by the sanctioned entity.
“When the United States sanctioned Iranian entities for proliferating weapons of mass destruction, UCB AG went to great lengths to help one such entity – Islamic Republic of Iran Shipping Lines – evade sanctions to gain access to the U.S. financial system,” said Assistant Attorney General Benczkowski. “The integrity of our financial system requires financial institutions to comply with our laws, and UCB AG willfully failed to do so. Today’s guilty plea and $1.3 billion penalty are just punishments for undermining U.S. sanctions and putting our financial system at risk.”
“UCB AG’s actions in deliberately providing a designated weapons-of-mass-destruction proliferator with access to the U.S. financial system for almost two years after such access was prohibited by U.S. law were particularly egregious,” said U.S. Attorney Liu. “The bank’s impending guilty plea and the accompanying monetary penalty announced today send a clear message that financial institutions that subvert U.S. sanctions, and therefore our national security, should expect severe consequences.”
"This case is a prime example of how some institutions erroneously believe they can game the U.S. financial system and conceal their nefarious activity,” said Assistant Director in Charge Sweeney. "The FBI will root out and aggressively investigate institutions, like UCB AG, that conspire to violate U.S. sanctions on behalf of prohibited entities."
“The financial penalty announced today should dissuade other financial institutions around the world from scheming and circumventing U.S. sanctions by moving money around using various institutions and companies,” said Special Agent in Charge Jackson. “Following the money is what we do—so too is holding those accountable who try to avoid following the law.”
UCB AG will waive indictment and be charged in a one-count felony criminal information, according to documents to be filed in federal court in the District of Columbia, charging UCB AG with knowingly and willfully conspiring to commit violations of IEEPA and to defraud the United States, from 2002 through 2011. UCB AG has agreed to plead guilty to the information, has entered into a written plea agreement and has accepted responsibility for its criminal conduct. UCB AG will enter its guilty plea before a judge in the District of Columbia. UniCredit Group banks will pay total financial penalties of approximately $1.3 billion. The plea agreement, subject to approval by the court, provides that UCB AG will forfeit $316,545,816 and pay a fine of $468,350,000.
According to admissions in the non-prosecution agreement and accompanying statement of facts, between 2002 and 2012, BA used non-transparent methods to send payments related to sanctioned jurisdictions such as Iran through the United States. BA conspired to violate IEEPA and defraud the United States by processing transactions worth at least $20 million through the United States on behalf of customers located or doing business in Iran and other countries subject to U.S. economic sanctions or customers otherwise subject to U.S. economic sanctions. As a result of its crimes, BA will forfeit $20 million and has agreed to additional compliance and sanctions enhancements.
In addition, UCB AG has entered into a plea agreement with the New York County District Attorney’s Office (DANY) for violating New York State law pursuant to which it will pay $316,545,816. BA has also entered into a non-prosecution agreement with DANY for violating New York State law. DANY conducted its own investigation alongside the Justice Department.
UniCredit SpA, UCB AG and BA have also entered into various settlement agreements with the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC), the Board of Governors of the Federal Reserve System (the Federal Reserve) and the New York State Department of Financial Services (DFS) under which they will pay additional penalties of approximately $660 million as follows: $611,023,421 to OFAC, which will be satisfied in part by payments to the Justice Department and the Federal Reserve, $157,770,000 to the Federal Reserve and $405 million to DFS.
The case was prosecuted by Senior Trial Attorney Margaret A. Moeser of the Bank Integrity Unit in the Criminal Division’s Money Laundering and Asset Recovery Section, and Assistant U.S. Attorney Michelle Zamarin of the District of Columbia. The case was investigated by the FBI and the IRS-CI.
The Bank Integrity Unit investigates and prosecutes complex, multi-district, and international criminal cases involving financial institutions. The Unit’s prosecutions focus on banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.
The Department of Justice expressed its gratitude to DANY, OFAC, the Federal Reserve, DFS and the Justice Department’s Office of International Affairs.
U.S. Attorney’s Office to Commemorate National Crime Victims’ Rights WeekRead the Press Release
FARGO – U.S. Attorney Christopher C. Myers announced today that on Thursday, April 18, 2019, the U.S. Attorney’s Office for the District of North Dakota will host a National Crime Victims’ Rights Week Awards Ceremony to raise awareness about crime victims’ rights and to recognize individuals in the state who provide outstanding services to crime victims. The awards ceremony will take place at the Quentin N. Burdick United States Courthouse, Jury Assembly Room, 655 First Avenue North, Fargo, ND at 10:30 a.m.
The Office for Victims of Crime (OVC) of the U.S Department of Justice leads communities throughout the country in their annual observances of National Crime Victims’ Rights Week, April 7-13, by promoting victims’ rights and honoring crime victims and those who advocate on their behalf. This year’s theme –Honoring Our Past. Creating Hope for the Future. – celebrates the progress made by those before us as we look to a future of crime victim services that is even more inclusive, accessible, and trauma-informed.
Members of the media will be permitted to bring appropriate still photo, video, and audio equipment to the Jury Assembly Room for purposes of covering this event. The public is invited to attend
U.S. Attorney Kicks Off Elder Fraud Prevention and Response Network ConveningRead the Press Release
U.S. Attorney Christina Nolan served as the keynote speaker for the Consumer Financial Protection Bureau’s Elder Fraud Prevention and Response Network Convening in Burlington, Vermont. Speaking last week to an audience comprised of Federal, State, Local and Private Sector stakeholders, U.S. Attorney Nolan emphasized the commitment of her office to protecting the elderly from any kind of abuse, financial or physical.
U.S. Attorney Nolan stated, “Society should be judged by how it protects its most innocent and vulnerable members. Elder abuse is a despicable crime that is already far too common. Protecting the elderly is a deeply rooted American ideal. As a country, we give the elderly special social and medical protections, as we should. The elderly should likewise receive special focus from our investigative and prosecutorial bodies. The Department of Justice will not stand for elder abuse or elder financial exploitation. At a nationwide level, we are doing more than ever to warn communities about ongoing scams, and to investigate and prosecute those who seek to exploit our seniors. And we are doing more in Vermont.”
The Convening was part of a nationwide effort by the Consumer Financial Protection Bureau’s Office of Older Americans to create or bolster local Elder Fraud Prevention and Response Networks. Convening participants engaged in a group exercise to brainstorm the successes and challenges of addressing Elder Financial Exploitation in Vermont. The Convening also included presentations from Assistant U.S. Attorney Andrew Gilman, Elder Justice Coordinator for the District of Vermont U.S. Attorney’s Office, Vermont Assistant Attorneys General Jamie Renner and John Waszak of the Vermont Attorney General’s Office Elder Protection Initiative, and Captain Frank Koss, President of the Vermont Chiefs of Police Association.
U.S. Attorney Nolan expressed her thanks to all who attended and helped organize the convening, including the Consumer Financial Protection Bureau’s Office of Older Americans, the Financial Abuse Specialist Team of Vermont, the Vermont Bankers Association, and the Association of Vermont Credit Unions.
If you have information concerning elder abuse, please contact law enforcement. The U.S. Attorney’s Office may be reached at 802-951-6725.
Two Individuals Sentenced for Mail Fraud and Ordered to Pay $746,000 in RestitutionRead the Press Release
St. Louis, MO – Bobby J. Woods, 50, of Stillwater, MN, and Alan Johnson, 64, of Collinsville, IL, were sentenced to a year and a day in prison and probation, respectively, for conspiracy to commit mail fraud. They appeared in federal court today before U.S. District Court Judge Catherine D. Perry. In addition to the sentences, the Court ordered them to pay restitution in the amount of $746,293.13.
According to court documents, Woods and Johnson engaged in a long-term conspiracy to defraud Johnson’s employer, BMI, an industrial manufacturing company located in East St. Louis, Illinois. Woods, an outside vendor, sold equipment to BMI at prices that were falsely inflated by between 26% and 102%. Woods then paid Johnson, BMI’s plant manager, over $167,000 in kickbacks to ensure that Johnson would secure payment by BMI on the fraudulently inflated invoices.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorneys Gwen Carroll and Lindsay McClure-Hartman handled the case for the U.S. Attorney’s Office.
Two Illegal Aliens Plead Guilty to Unlawfully Reentering United States after RemovalRead the Press Release
Gulfport, Miss. – Abraham Bautista-Rodriguez, 19, and Salvador Bautista-Rodriguez, 19, both citizens of Mexico, pled guilty today before U.S. District Judge Sul Ozerden, to unlawful reentry by an alien after removal, announced U.S. Attorney Mike Hurst, Jere T. Miles, Special Agent in Charge of U.S. Immigration & Customs Enforcement's Homeland Security Investigations in New Orleans, and Gregory K. Bovino, Chief Patrol Agent of the U.S. Border Patrol’s New Orleans Sector.
The two men, who are brothers, will be sentenced by Judge Ozerden, on July 8, 2019.
Abraham Bautista-Rodriguez, who has a prior conviction for reentry after removal, faces a maximum penalty of 10 years in prison and a $250,000 fine for unlawful reentry by an alien removed after conviction of a felony. Salvador Bautista-Rodriguez faces a maximum penalty of 2 years in prison and a $250,000 fine for illegal reentry by an alien. Each man also faces being removed from the United States following the completion of his sentence.
On January 28, 2019, an interdiction agent with the South Mississippi Metro Enforcement Team conducted a traffic stop on Interstate 10 in Jackson County. The agent observed eight occupants of the vehicle which included the Bautista-Rodriguez brothers. Border Patrol Agents arrived on the scene shortly thereafter, and interviewed the occupants of the vehicle as to their citizenships, determining that none had proper documents and all were illegally present in the United States. Of the eight vehicle occupants (two drivers and six passengers), all were illegal aliens from Mexico. They were all arrested and transported to the Border Patrol Station in Gulfport.
A Homeland Security Investigations Special Agent joined Border Patrol Agents and determined that the 6 passengers were being smuggled within the United States. Further investigation revealed that both men are citizens of Mexico, and previously had been ordered removed from the United States.
U.S. Attorney Hurst praised the cooperation exhibited by the Department of Homeland Security, Homeland Security Investigations, the United States Border Patrol, the Jackson County Sheriff’s Department, and the City of Gautier Police Department, and the South Mississippi Metro Enforcement Team. Assistant United States Attorney Stan Harris is the prosecutor for the case.
Tri-Cities Repeat Offender Sentenced to More Than 15 Years in Federal Prison for Drug TraffickingRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Antonio Faustino Deleon, age 31, from the Tri-Cities Washington area, was sentenced, after having pleaded guilty to Possessing with Intent to Distribute 50 Grams or More of Pure Methamphetamine. United States District Judge Salvador Mendoza Jr. sentenced Deleon to a 188-month term of imprisonment, to be followed by a 5-year term of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, Deleon was contacted on March 29, 2018 by the Kennewick Police Department’s Criminal Apprehension Team (“CAT”) after they received a report of a suspicious vehicle in a parking lot. CAT Detectives immediately recognized Deleon as an occupant of the vehicle based on multiple previous encounters, to include a recent encounter where Deleon pulled a knife on a law enforcement officer. CAT Detectives knew there was an active warrant for Deleon’s arrest. Upon announcing themselves as police officers, Deleon and two other occupants of the vehicle made multiple furtive movements, and continued to do so contrary to multiple police commands. Eventually, the three occupants were removed from the vehicle without incident. CAT Detectives observed in plain view a large amount of methamphetamine on the floorboard of the vehicle. A search of the vehicle revealed an additional quantity of methamphetamine and heroin, weighing approximately one kilogram, in a backpack that contained Deleon’s identification. Deleon is a known long-term affiliate with the Sureno criminal street gang, and he is known by the moniker “Peanut.” Deleon’s history reveals at least thirty-one prior criminal cases. CAT Detectives referred the case to the FBI Safe Streets Task Force for federal prosecution.
During sentencing, Judge Mendoza noted Deleon’s significant criminal history, committing “crime after crime,” and that the public needed to be protected from Deleon’s future criminal activities.
Joseph H. Harrington said, “The United States Attorney’s Office for the Eastern District of Washington commends the law enforcement officers with the Kennewick Police Department and the FBI who investigated this case. Their seamless partnership resulted in the successful outcome of this matter. The sentence imposed by the court removes a drug trafficker from our streets and sends a clear message to others who may choose to engage in such criminal activity.”
This case was prosecuted under the Project Safe Neighborhoods (PSN) program. PSN is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. The U.S. Attorney’s Office is partnering with federal, state, local, and tribal law enforcement to specifically identify the criminals responsible for violent crime in the Eastern District of Washington and pursue criminal prosecution.
This case was investigated by the Kennewick Police Department in partnership with the Federal Bureau of Investigation’s Safe Streets Task Force, which is comprised of officers from the Benton County Sheriff’s Office, Kennewick Police Department, Pasco Police Department, Richland Police Department, and Washington Department of Corrections. This case was prosecuted by Caitlin Baunsgard, Assistant United States Attorney for the Eastern District of Washington.
The Department of Justice Files Amended Sexual Harassment Lawsuit Against Owner and Manager of Rental Properties in Lexington, TennesseeRead the Press Release
Memphis, TN – The Department of Justice today announced that it has filed an amended complaint in its lawsuit against a Lexington, Tennessee, landlord, Chad David Ables, alleging that he violated the Fair Housing Act by subjecting female tenants of his rental properties to sexual harassment and retaliation.
The lawsuit, filed in the U.S. District Court for the Western District of Tennessee, alleges that Ables, who owns and manages rental properties in Henderson County, including a mobile home park called "Pops Cove," sexually harassed a number of female tenants at his properties. For example, according to the government’s complaint, Ables conditioned housing or housing benefits on female tenants’ agreement to engage in sexual acts; subjected at least one female tenant to unwanted sexual touching; made unwelcome sexual comments and advances to female tenants; and took adverse housing-related actions against female residents when they refused his sexual advances.
"No woman should ever be subjected to sexual harassment or intimidation in her home," said Assistant Attorney General Eric Dreiband. "The Fair Housing Act protects tenants from harassment and retaliation by their landlords, and the Justice Department will continue to vigorously enforce this law and seek relief for victims."
"Every person in this district deserves the right to live in a place of their choosing without fear of sexual harassment. This is not a small town issue or a big city issue, but an issue of respect and dignity. We want the women and men throughout all of West Tennessee to know that there’s someone they can turn to if they feel unsafe in their home – no matter where their home is," said D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee.
"Property owners and landlords who use their position to harass residents or to attempt to trade sexual favors for rent violate the sanctity of an individual's home, the place where they should feel the safest," said Anna María Faría, HUD’s Assistant Secretary for Fair Housing and Equal Opportunity. "HUD will continue to work with the Justice Department to take action against housing providers that violate the Fair Housing Act by engaging in this type of behavior."
The lawsuit arose from complaints about Ables’s conduct that two women filed with the Department of Housing and Urban Development (HUD). After HUD investigated the complaints, it issued a charge of discrimination and the matter was referred to the Department of Justice. The Department of Justice filed an initial complaint in December, 2018 on behalf of the two complainants. The amended complaint alleges that the defendant harassed several additional female tenants.
The lawsuit seeks monetary damages to compensate the victims, a civil penalty to vindicate the public interest, and a court order barring future discrimination and harassment. The complaint contains allegations of unlawful conduct; the allegations must be proven in federal court.
In October 2017, the Department of Justice launched an initiative to combat sexual harassment in housing. In April 2018, the Department announced the nationwide rollout of the initiative, including three major components: a new joint Task Force with HUD to combat sexual harassment in housing, an outreach toolkit to leverage the Department’s nationwide network of U.S. Attorney’s Offices, and a public awareness campaign, including the release of a national Public Service Announcement.
Since launching the initiative, the Department of Justice has filed nine lawsuits alleging a pattern or practice of sexual harassment in housing. The Department of Justice has filed or settled 14 sexual harassment cases since January 2017, and has recovered over $1.6 million for victims of sexual harassment in housing.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination at rental dwellings owned or managed by Chad David Ables, or who have other information that may be relevant to this case, can contact the Housing Discrimination Tip Line, at 1-800-896-7743, and select mailbox 6 to leave a message.
Individuals can also report sexual harassment and other forms of housing discrimination by e-mailing the Justice Department at [email protected].
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The Department of Justice Files Amended Sexual Harassment Lawsuit Against Owner and Manager of Rental Properties in Lexington, TennesseeRead the Press Release
The Department of Justice today announced that it has filed an amended complaint in its lawsuit against a Lexington, Tennessee, landlord, Chad David Ables, alleging that he violated the Fair Housing Act by subjecting female tenants of his rental properties to sexual harassment and retaliation.
The lawsuit, filed in the U.S. District Court for the Western District of Tennessee, alleges that Ables, who owns and manages rental properties in Henderson County, including a mobile home park called “Pops Cove,” sexually harassed a number of female tenants at his properties. For example, according to the government’s complaint, Ables conditioned housing or housing benefits on female tenants’ agreement to engage in sexual acts; subjected at least one female tenant to unwanted sexual touching; made unwelcome sexual comments and advances to female tenants; and took adverse housing-related actions against female residents when they refused his sexual advances.
“No woman should ever be subjected to sexual harassment or intimidation in her home,” said Assistant Attorney General Eric Dreiband. “The Fair Housing Act protects tenants from harassment and retaliation by their landlords, and the Justice Department will continue to vigorously enforce this law and seek relief for victims.”
“Every person in this district deserves the right to live in a place of their choosing without fear of sexual harassment. This is not a small town issue or a big city issue, but an issue of respect and dignity. We want the women and men through all of west Tennessee to know that there’s someone they can turn to if they feel unsafe in their home – no matter where their home is," said U.S. Attorney D. Michael Dunavant for the Western District of Tennessee.
“Property owners and landlords who use their position to harass residents or to attempt to trade sexual favors for rent violate the sanctity of an individual's home, the place where they should feel the safest," said Anna María Faría, HUD’s Assistant Secretary for Fair Housing and Equal Opportunity. “HUD will continue to work with the Justice Department to take action against housing providers that violate the Fair Housing Act by engaging in this type of behavior.”
The lawsuit arose from complaints about Ables’s conduct that two women filed with the Department of Housing and Urban Development (HUD). After HUD investigated the complaints, it issued a charge of discrimination and the matter was referred to the Department of Justice. The Department of Justice filed an initial complaint in December, 2018 on behalf of the two complainants. The amended complaint alleges that the defendant harassed several additional female tenants.
The lawsuit seeks monetary damages to compensate the victims, a civil penalty to vindicate the public interest, and a court order barring future discrimination and harassment. The complaint contains allegations of unlawful conduct; the allegations must be proven in federal court.
In October 2017, the Department of Justice launched an initiative to combat sexual harassment in housing. In April 2018, the Department announced the nationwide rollout of the initiative, including three major components: a new joint Task Force with HUD to combat sexual harassment in housing, an outreach toolkit to leverage the Department’s nationwide network of U.S. Attorney’s Offices, and a public awareness campaign, including the release of a national Public Service Announcement.
Since launching the initiative, the Department of Justice has filed nine lawsuits alleging a pattern or practice of sexual harassment in housing. The Department of Justice has filed or settled 14 sexual harassment cases since January 2017, and has recovered over $1.6 million for victims of sexual harassment in housing.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination at rental dwellings owned or managed by Chad David Ables, or who have other information that may be relevant to this case, can contact the Housing Discrimination Tip Line, at 1-800-896-7743, and select mailbox 6 to leave a message.
Individuals can also report sexual harassment and other forms of housing discrimination by e-mailing the Justice Department at [email protected].
Taylor County man admits to methamphetamine distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – William Edward Boyce, II, of Flemington, West Virginia, has admitted to distributing methamphetamine, United States Attorney Bill Powell announced.
Boyce, age 27, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine.” Boyce admitted to distributing more than 50 grams of methamphetamine in September 2018 in Harrison County.Boyce faces up to 20 years incarceration and a fine of up to $1,000,000. 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.
Assistant U.S. Attorney Traci M. Cook is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Clarksburg Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
St. Croix Man Found Guilty of Possession Cocaine Base (“Crack”) and Assaulting Virgin Islands Police OfficerRead the Press Release
St. Croix, USVI – Jimmy Davis, 41, of St. Croix, has been found guilty after a jury trial in the St. Croix District Court of one count of Possession of Cocaine and one count of Aggravated Assault and Battery, United States Attorney Gretchen C.F. Shappert announced. The jury trial lasted a total of five days, commencing on April 8, 2019, and concluding on April 12, 2019. An additional charge was dismissed.
According to trial testimony, on February 26, 2018, Virgin Islands Police Department officers arrested Jimmy Davis, on an outstanding Superior Court warrant. At the time of his arrest, officers located of 9.61 grams of crack cocaine in the Davis’s front right pants pocket. The DEA Southeast Laboratory in Miami, Florida subsequently analyzed the crack cocaine and confirmed it to be cocaine base, a Schedule II controlled substance.
While Davis was being processed and booked at the police department following his February of 2018 arrest on the drug charges, he became belligerent and violent. According to trial testimony, Davis verbally threatened and then intentionally kicked Officer Travis Herbert in the right thigh area.
The possession offense carries a term of imprisonment of up to 1 year and a fine of up to $1,000. The aggravated assault and battery offense also carries a term of imprisonment of up to 1 year and a fine of up to $500. Sentencing is scheduled for August 14, 2019.
The Virgin Islands Police Department and the Drug Enforcement Administration (DEA) investigated the case. Assistant U.S. Attorneys Daniel H. Huston and Alphonso G. Andrews prosecuted the case.
Springfield Man Sentenced to 30 Years for Sexual Exploitation of a ChildRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man was sentenced in federal court today for recording his sexual abuse of a child victim.
George Ralph Pollock, 77, was sentenced by U.S. District Judge Brian C. Wimes to 30 years in federal prison without parole.
On April 3, 2018, Pollock pleaded guilty to the sexual exploitation of a child. Pollock admitted that he sexually abused a child victim from the age of 12 until she was 17 years old, and had been exchanging nude images via email and text since she was 15 years old. The child victim told investigators that Pollock had sexually abused her more than 100 times.
The investigation began on Aug. 16, 2016, when officers received a CyberTip from the National Center for Missing and Exploited Children that Pollock had attempted to upload and email an image of child pornography. Officers executed a search warrant at Pollock’s residence and seized two cell phones and computers. Images of child pornography were found on those devices, as well as a VHS tape that depicted Pollock and the child victim engaged in sexual activity.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by Homeland Security Investigations, the Southwest Missouri Cyber Crimes Task Force and the Greene County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."South Bay Drug Trafficker Sentenced to 45 Months in PrisonRead the Press Release
SAN JOSE – Sophann Pin was sentenced today to 45 months in prison for possessing with the intent to distribute methamphetamine announced United States Attorney David L. Anderson and Drug Enforcement Administration (DEA) Special Agent in Charge Chris Nielsen. The sentence was handed down by the Honorable Edward J. Davila, U.S. District Judge.
Pin, 36, of San Jose, pleaded guilty to the charges on May 10, 2018. According to his plea agreement, Pin admitted he possessed methamphetamine with the intent to sell it to other people. The plea agreement describes three transactions in which Pin distributed drugs. Pin admitted that on September 30, 2016, he agreed to meet two drug buyers in a parking lot on East Hamilton Avenue in Campbell, Calif. After arriving at the parking lot with approximately 543 grams of a substance containing methamphetamine, Pin exchanged the drugs for $3,500. Further, on November 15, 2017, Pin possessed one kilogram of methamphetamine he obtained from co-defendant Oscar Andrade, 32, from San Jose. Pin also acknowledged that on January 19, 2017, he obtained two kilograms of methamphetamine from co-defendant Christian Urena, 32, from San Jose, and that he intended to sell the methamphetamine to another person.
On February 2, 2017, a federal grand jury indicted Pin, charging him with two counts of conspiracy to possess with intent to distribute and to distribute methamphetamine, in violation of 21 U.S.C. § § 846, 841(a)(1), and 841(b)(1)(C), and three counts of possession with intent to distribute methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(C). Pin pleaded guilty to one count of possession with intent to distribute methamphetamine. The remaining counts were dismissed.
In addition to the prison term, Judge Davila also sentenced Pin to serve 3 years of supervised release that will begin at after his prison term has been served.
Andrade and Urena also pleaded guilty to their respective roles in the scheme. On January 14, 2019, Judge Davila sentenced Andrade to 160 months in prison and five years of supervised release for his role. On March 4, 2019, Judge Davila sentenced Urena to 50 months in prison and three years of supervised release for his role.
Assistant U.S. Attorney Scott Simeon is prosecuting the case with the assistance of Tong Zhang. The prosecution is the result of an investigation by the DEA.
Source of Supply for Bakersfield Synthetic Marijuana Traffickers Sentenced to over 5 Years in PrisonRead the Press Release
FRESNO, Calif. — Haitham Eid Habash, aka Eddie Habash, 55, of Hawthorne, was sentenced today to five years and three months in prison for his role in supplying synthetic drugs to wholesale internet drug traffickers, U.S. Attorney McGregor W. Scott announced. Habash was also ordered to forfeit over $193,000 in proceeds derived from drug trafficking.
According to court documents, in 2015, Habash manufactured smokeable synthetic cannabinoids, commonly known as “spice,” which contained AB-Chminaca, AB-Pinaca, and XLR11, all of which are Schedule I controlled substances. Habash personally negotiated with and obtained the raw chemicals directly from Chinese suppliers. He would then dilute them with a solvent before mixing them with flavoring to add to dried plant material. Habash sold his drugs under various brand names, including Bizarro and his own special blend, Mr. High. His customers included his co-defendant Majed Bashir Akroush, aka Magic Mike, 51, of Bakersfield, who sold Habash’s product over the internet under the business names of Magic Mans Wholesale, Blue Whale Wholesale, and World of Incense.
According to the plea agreement, on April 14, 2015, CHP officers intercepted 95 pounds of synthetic cannabinoid products manufactured by Habash in Bakersfield.
The case against Akroush is still pending. He is charged with the drug conspiracy and two substantive drug offenses, all of which carry a maximum statutory penalty of 20 years in prison and a $1 million fine. Akroush is also charged with conspiring to structure several million dollars obtained from his drug trafficking activity. The structuring charge carries a maximum statutory penalty of five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation by the U.S. Drug Enforcement Administration, IRS Criminal Investigation, Federal Bureau of Investigation, Homeland Security Investigations, U.S. Postal Inspection Service, California Highway Patrol, California Department of Motor Vehicles, Kern County Probation, Kern County Sheriff’s Office, and Bakersfield Police Department. OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of OCDETF is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
Sentence: Prison for Wichita Man Convicted of Sex TraffickingRead the Press Release
WICHITA, KAN. – A Wichita man was sentenced to 25 years in federal prison today for sex trafficking, U.S. Attorney Stephen McAllister said.
Johnell Carter, 23, Wichita, Kan., pleaded guilty to two counts of sex trafficking. In his plea, he admitted he used physical force including punching and biting to make an 18-year-old woman have sex for money at Wichita hotels. He advertised her services online.
In the second count, Carter admitted recruiting a 15-year-old to perform commercial sex acts at Wichita hotels. He advertised her services online.
McAllister commended the FBI, the Wichita Police Department, the Exploited and Missing Child Unit (EMCU) and Assistant U.S. Attorney Jason Hart for their work on the case.
Sanford Man Sentenced to 54 Months for Illegally Possessing a Firearm and AmmunitionRead the Press Release
RALEIGH – Robert J. Higdon, Jr., the United States Attorney for the Eastern District of North Carolina, announces that United States District Judge James C. Dever, III sentenced MARQUIS ANTIONE BARNES, 20, of Sanford to 54 months’ imprisonment, followed by 3 years of supervised released.
On November 7, 2018, BARNES was named in a one-count Indictment charging him with Possession of a Firearm by a Convicted Felon. On January 7, 2019, BARNERS pled guilty to the charge.
On September 5, 2018, during an investigation into a case involving stolen firearms and drug distribution, the Harnett County Sheriff’s Office (HCSO) obtained permission to search a telephone of an individual. During the search, a video with the name of “Marquis 919” was located. In this video, the male, identified as BARNES, was seen with a Glock semi-automatic handgun, which contained an extended magazine. Another video located showed BARNES sleeping with a Glock with an extended magazine located near him. The weapon appeared to be the same weapon in both videos.
On September 8, 2018, a deputy with the HSCO conducted a traffic stop on a vehicle. When the deputy approached the vehicle, an odor of marijuana was detected. BARNES was in the front passenger seat and an unidentified passenger was in the back seat. All three individuals were removed from the vehicle and, after searching the vehicle, the deputy seized a small bag of marijuana. At that time, the deputy conducted a search of the occupants to determine if they had any outstanding warrants. BARNES had a warrant for his arrest for Possession of a Firearm in Harnett County and he was arrested. Further search of the vehicle resulted in the seizure of a Glock 9mm handgun containing an extended magazine with 23 rounds of ammunition located between the passenger seat and center console. BARNES stated the gun was his.
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. Since 2017 the United States Department of Justice has reinvigorated the PSN program and has targeted 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 is also part of the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violence crime rate, drug trafficking, and crimes against law enforcement.
The investigation of this case was conducted by the Harnett County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Assistant United States Attorney Daniel W. Smith prosecuted the case for the government.
Operator of Tax Preparation Business Indicted on Tax Fraud and Tax EvasionRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man was arrested today by federal agents on charges of tax fraud and tax evasion, U.S. Attorney Craig Carpenito announced.
Terrance LeGall, 64, of Linden, New Jersey, is charged by indictment with 11 counts of aiding and abetting the preparation of a false tax return and eight counts of tax evasion for failure to file personal and corporate income tax returns. LeGall is scheduled to make his initial appearance 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:
Since 2009, LeGall was the sole operator of LeGall Group Inc. (LGI), a tax return preparation business in Union County, New Jersey. From 2013 to 2017, LeGall prepared false tax returns for his clients. He allegedly included fake charitable contributions, unreimbursed business expenses and business losses that he knew his clients had not actually incurred. These returns resulted in a reduction in his clients’ tax liability and fraudulent refunds from the IRS. LeGall acted as a “ghost preparer,” in that although he prepared income tax returns for his clients, he did not identify himself anywhere on the returns as a preparer, and electronically filed the returns in a manner that made it look like the returns had been filed by the taxpayers. LeGall also evaded the assessment of federal taxes in excess of $600,000 by willfully failing to file personal and corporate tax returns for the tax years 2012 through 2015. LeGall attempted to hide his source of income by depositing the proceeds of his tax preparation business into bank accounts belonging to his family members.
Each count of aiding and abetting in the preparation of false tax returns carries a maximum prison sentence of three years and a $250,000 fine. Each count of failure to file personal and corporate income tax returns carries a maximum prison sentence of five years and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Sammi Malek of the Economic Crimes Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: John Yauch Esq. Assistant Federal Public Defender, Newark
Olympia, Washington Man with Prior Conviction for Possessing Images of Child Rape and Abuse Sentenced to 48 Months in PrisonRead the Press Release
A 60-year-old Olympia, Washington resident was sentenced today in U.S. District Court in Tacoma to 48 months in prison and a lifetime of supervised release for possessing images of child sexual abuse, announced U.S. Attorney Brian T. Moran. DONALD A. DELATEUR was arrested in May 2018, as part of Operation Broken Heart – an investigation into peer-to–peer file sharing of images of child rape and abuse. A court-authorized search of DELATEUR’s electronic devices revealed they contained images of children being raped and sexually abused. At the sentencing hearing U.S. District Judge Benjamin H. Settle said “It is difficult to overstate the seriousness” of child pornography offenses. The victims of these offenses suffer their own “life sentence.”
“Victims of child sexual abuse, whose worst moments are video recorded and shared over the internet, are re-victimized each and every time an offender views those images or videos,” said U.S. Attorney Brian T. Moran.
In 2005, DELATEUR was convicted in Thurston County Superior Court of possessing child pornography. In 2015, DELATEUR was again contacted by federal investigators after his internet protocol (IP) address came up in an investigation of peer-to-peer file sharing of child pornography. However, in that instance, DELATEUR had been able to scrub his devices of images of child rape and molestation. At the time, DELATEUR was warned that if he continued his file sharing activities, he could face federal prison time. In 2018, his IP address was again linked to the trading of child pornography. This time the forensic examination of his devices uncovered the images of child sexual abuse.
DELATEUR pleaded guilty in January 2019.
Operation Broken Heart resulted in the arrest of more than 2,300 suspected online child sex offenders during a three-month, nationwide operation conducted by 61 Internet Crimes Against Children (ICAC) task forces. During March, April and May of 2018, the ICAC task forces investigated more the 25,200 complaints of technology-facilitated crimes against children.
This investigation was led by Homeland Security Investigations as part of the Seattle-area ICAC. The case was prosecuted by Assistant United States Attorney Matthew Hampton.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
Ohio Man Sentenced to Prison for eBay ScamRead the Press Release
PITTSBURGH, Pa. – An Ohio resident has been sentenced in federal court to three years and six months in prison, followed by three years’ supervised release, and was ordered to pay $379,591.95 in restitution on his conviction of mail fraud, United States Attorney Scott W. Brady announced today.
United States District Judge Bill Wilson imposed the sentence last Friday on Atticus Sliter-Matias, 30, of South Euclid, Ohio.
According to information presented during trial and at sentencing, around 2014 to on or about July 5, 2016, Sliter-Matias advertised electronic devices for sale on 498 eBay accounts. However, Sliter-Matias mailed empty packages through the United States Postal Service to the purchasers instead of the purchased merchandise. Sliter-Matias often used the proceeds from these fraudulent sales to purchase gold or silver bars and coins, which were delivered to his UPS mailbox. As a result of this scheme, the victims suffered a loss of $379,591.95.
Assistant United States Attorneys Colin J. Callahan and Shardul S. Desai prosecuted this case on behalf of the government.
United States Attorney Brady commended the United States Postal Inspection Service for the investigation leading to the successful prosecution of Sliter-Matias.
Number of Federal Defendants Charged and Imprisoned Rises in 2018Read the Press Release
BIRMINGHAM – The number of people charged with federal crimes in the Northern District of Alabama in 2018 and the percentage of those defendants sentenced to prison was the highest since 2007, announced U.S. Attorney Jay E. Town.
“I believe that our numbers are a reflection of effort and my office turned in a tremendous effort in FY18,” Town said. “Each Division is coordinating with the others in a true phalanx and, as a result, the office was more productive than at any time in recent memory. Because of this team effort, the citizens of NDAL are safer, our communities are better, and our partnerships with local law enforcement are stronger than ever before.”
The priorities of the Department of Justice to reduce illegal gun crimes, reduce violent crime, pursue criminal immigration matters, to aggressively address the opioid epidemic in Alabama, and protect the public fisc were all successfully executed by the Northern District in 2018. The U.S. Attorney’s Office showed vast improvement in all categories in 2018 over the previous fiscal year, which was itself one of the most productive years in over a decade.
The data provided by the Department of Justice indicates that the Northern District’s conviction rate of 99 percent is the highest since at least 2004. Defendants charged totaled 575 for Fiscal Year 2018, up 6.5% from the 540 defendants charged in FY 2017. The number of defendants sentenced to prison in 2018 rose 19%, from 325 in 2017 to 387 in 2018.
The 259 defendants charged with violent crimes in 2018 was an 80% increase over the 144 charged with violent crimes in 2015. The 169 defendants charged with drug-related crimes in 2018 was the largest number since 2008.
Illegal firearms prosecutions rose 27% in FY 2018 to 286, from 225 in FY 2017. FY 2018 marked the largest number of illegal firearms prosecutions ever recorded in the Northern District of Alabama.
In FY 2018, the prosecution of criminal immigration cases saw a 116% increase in the number of defendants found guilty, which is the largest increase in the history of the Northern District of Alabama.
Our Civil Division achieved favorable judgments in nearly every category of litigation.
Our Appellate Division was successful in all civil and criminal appeals.
In addition to the prosecutorial numbers, the Department of Justice, through grant funding, invested over $8.5 million last year in the Northern District of Alabama.
New York City Prison Bribery and Narcotics Smuggling Prosecution Completed with Sentencing of Last DefendantRead the Press Release
Earlier today, in federal court in Brooklyn, the seventh and final defendant was sentenced in connection with a bribery conspiracy to smuggle narcotics and other contraband into New York City prisons. Carl Noel, a former correction officer employed by the New York City Department of Correction, was sentenced today by United States District Judge Pamela K. Chen to six months’ home confinement for accepting bribes in exchange for smuggling narcotics into the Manhattan Detention Complex (MDC). Previously, Noel’s six co-defendants received sentences ranging from six months in a residential facility to 26 months’ imprisonment.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Margaret Garnett, Commissioner, New York City Department of Investigation (DOI), announced the sentences.
“Our prison system relies upon the integrity of its employees. For selling his integrity, undermining the security of the prison and endangering his fellow officers, Carl Noel will now go from guard to convicted felon,” stated United States Attorney Donoghue. “All seven members of this smuggling conspiracy, including two correction officers, have now been held accountable for their crimes.” Mr. Donoghue expressed his grateful appreciation to the Drug Enforcement Administration’s New York Drug Enforcement Task Force (DEA), consisting of agents and officers of the DEA, New York City Police Department and New York State Police for their assistance.
“Correction officers have a duty to enforce and abide by the rules of our city jails to protect the safety of their fellow officers and the incarcerated,” stated DOI Commissioner Garnett. “The two correction officers involved in this contraband smuggling scheme violated that pledge, sold out their integrity by accepting bribes, and have now been held to account for their crimes. DOI thanks the U.S. Attorney for the Eastern District for his partnership in stemming the flow of contraband in our City jails and for his office’s prosecution of this important matter.”
The defendants assumed a variety of roles in the conspiracy. Noel and correction officer Christian Mizell, were responsible for smuggling the marijuana and other contraband into the MDC. Their co-defendants, Warren Green and Patrick Johnson, both of whom were incarcerated at the MDC, arranged for marijuana and other contraband to be packaged and delivered covertly to Noel and Mizell, by co-defendants Robert Martino, Malik Holloway and Asha Patterson. Noel and Mizell received thousands of dollars in bribes, among other benefits, to smuggle narcotics past prison security personnel for distribution inside the prison.
Previously, Noel’s co-defendants were sentenced for their roles in the conspiracy. In November 2018, Mizell, was sentenced to 19 months’ imprisonment; in December 2018, Martino was sentenced to six months in a residential facility and two years’ probation; in December 2018, Johnson was sentenced to 21 months’ imprisonment; in December 2018, Patterson was sentenced to one year and one day in prison; in January 2019, Holloway was sentenced to 14 months’ imprisonment; and in February 2019, Green was sentenced to 26 months’ imprisonment.
The government’s case is being handled by Assistant United States Attorney Erik Paulsen of the Office’s Public Integrity Section and Nomi Berenson of the Office’s International Narcotics and Money Laundering Section.
The Defendants:
CARL NOEL
Age: 32
New York, New YorkChristian Mizell
Age: 49
Queens, New YorkWARREN GREEN
Age: 41
Pine City, New YorkPATRICK JOHNSON
Age: 27
Bronx, New YorkROBERT MARTINO
Age: 37
Queens, New YorkMALIK HOLLOWAY
Age: 23
Bronx, New YorkASHA PATTERSON
Age: 44
Queens, New YorkE.D.N.Y. Docket No. 18-CR-60 (PKC)
New Berlin Man Faces Federal Child Pornography ChargesRead the Press Release
URBANA, Ill. – An initial trial date in June has been scheduled for a New Berlin, Ill., man, Scott A. Gentry, 57, who appeared in federal court on April 12 for arraignment on federal child pornography charges. Gentry was previously arrested on Jan. 24, 2019, on charges filed in Macon County. The federal indictment, returned by the grand jury on April 2, had remained sealed pending Gentry’s arrest and transfer of the case to federal court.
Gentry appeared before U.S. Magistrate Judge Eric I. Long who ordered that Gentry remain detained in the custody of the U.S. Marshals Service. Trial for Gentry was scheduled on June 18, 2019, before Chief U.S. District Judge Sara Darrow in Urbana.
The indictment alleges that in November and December 2016, and April 2017, Gentry used a computer or device to receive images of children engaged in sexually explicit conduct, and in January 2019, that Gentry possessed images of child pornography in both Sangamon and Macon counties.
If convicted, the statutory penalty for each count of receipt of child pornography (three counts) is five to 20 years in prison, and a fine of up to $250,000; possession of child pornography (two counts) carries a penalty of up to 20 years in prison, and a fine of up to $250,000.
Assistant U.S. Attorney Elly M. Peirson is representing the government in the prosecution in coordination with the Macon and Sangamon County State’s Attorney’s Offices. The charges are the result of an investigation by the Macon County Sheriff’s office, the Sangamon County Sheriff’s office and the Internet Crimes Against Children Task Force of the Illinois Attorney General’s Office.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.