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23 May 2019
Madison Man Sentenced to 6 Years for Possessing 4 Kilograms of CocaineRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Edward Bartlett, 30, Madison, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to six years in federal prison for possessing four kilograms of cocaine with the intent to distribute. Bartlett pleaded guilty to this charge on March 7, 2019, and agreed to forfeit his rights to a 2014 Maserati.
On April 17, 2018, Madison police officers observed Bartlett driving a Maserati near an apartment complex in Fitchburg, Wisconsin. Based on their investigation, the Madison police officers believed that the Maserati likely contained a large amount of cocaine. As they approached the Maserati, Bartlett attempted to drive out of a parking lot but crashed into a Madison police car with two officers inside. Bartlett then fled on foot but was arrested after a brief chase. The cocaine was found in the Maserati.
In imposing the sentence, Judge Conley noted that Bartlett was part of a large-scale drug trafficking ring and recently had purchased the Maserati using cash. Judge Conley also noted that Bartlett had a prior felony conviction for cocaine trafficking.
The charge against Bartlett is the result of an investigation by the Dane County Narcotics Task Force, Wisconsin Department of Justice Division of Criminal Investigation, and Drug Enforcement Administration. The prosecution of this case has been handled by Assistant U.S. Attorney Aaron D. Wegner.
Macedonia man who defrauded elderly people out of nearly $575,000 sentenced to more than six years in prisonRead the Press Release
A Macedonia man who claimed to be a financial planner but defrauded three elderly people out of nearly $575,000 was sentenced to more than six years in prison.
William E. Callam, 61, was sentenced to 78 months in prison and ordered to pay $574,146 in restitution. He previously pleaded guilty to one count of wire fraud and four counts of mail fraud.
“The conduct of this defendant is reprehensible. He stole the life savings of three elderly people to feed his own greed and lifestyle,” U.S. Attorney Justin Herdman said. “The Justice Department is committed to protecting older Americans and holding accountable anyone who would defraud them.”
“Callam will be serving a significant amount of time behind bars for victimizing elderly folks out of their life savings,” FBI Special Agent in Charge Eric Smith said. “The FBI will continue efforts to hold criminals accountable for preying on others for their own greed.”
According to court documents:
Callam held himself out as a financial planner and investment advisor. He operated Blackstone Real Estate Group LLC.
Callam represented to three people from Lake County that Blackstone was in the business of financing loans for the purpose of rehabilitating commercial property, with the loans secured by mortgages on the property. He promised investors safe investments with an annual return of six percent, and stated the investments were very liquid.
Callam caused investors to liquidate their annuities, insurance policies and other retirement assets to invest those funds in Blackstone. He created false statements purporting to reflect investors’ earnings. Instead, he used their money to maintain his personal lifestyle and enrich himself and family members.
A married couple was defrauded out of $381,571 while another person was defrauded out of $192,575 as a result of Callam’s scheme.
Callam has a history of defrauding people. He was convicted in 2007 of defrauding two senior citizens out of $68,000. Later that year he was convicted of defrauding four other people out of $49,000 in a similar scheme. He was later convicted of defrauding another person out of $55,000, according to court documents.
Callam targeted the victims in the most recent case because they were elderly and trusted him. As a result of his fraud, the victims cannot pay for medical care, struggle to pay for prescription medication and other bills, and have suffered emotional stress, according to court documents.
This case was prosecuted by Assistant U.S. Attorney Megan Miller following an investigation by the FBI.
Mississippi Accountant Sentenced to Five Years in Prison for Tax FraudRead the Press Release
WASHINGTON – A locally prominent certified public accountant (CPA) was sentenced today to five years in prison in Hattiesburg, Mississippi, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman and United States Attorney Mike Hurst for the Southern District of Mississippi.
“Today’s prison sentence for CPA Nicholson should serve as a reminder that the Department of Justice will prosecute fraudulent tax return preparers, who violate this nation’s tax laws, and that the penalties for such conduct include significant prison time,” stated Principal Deputy Assistant Attorney General Zuckerman.
“Carl Nicholson abused his position of trust as a CPA and defrauded Mississippians and American taxpayers. This case illustrates that no one is above the law, that our tax laws will be vigorously enforced, and that justice will always be done in the Southern District of Mississippi,” said U.S. Attorney Mike Hurst.
On Feb. 8, 2019, a jury convicted Carl Nicholson of conspiracy to defraud the United States as well as six counts of aiding in the preparation of false tax returns and four counts of filing false tax returns. According to court documents and evidence presented at trial, from 2012 to 2014, Nicholson conspired with a client to falsely classify $740,000 of personal payments as business expenses and filed false tax returns on the client’s behalf with the Internal Revenue Service (IRS). Nicholson was also found guilty of filing his own false personal income tax returns for 2012 through 2015. Specifically, he falsely claimed expenses, failed to report embezzlement income, and under-reported the gain on the sale of his accounting firm Nicholson & Company.
In addition to the term of imprisonment, U.S. District Court Judge Keith Starrett ordered Nicholson to serve three years of supervised release, to pay a $25,000 fine and to pay restitution of $629,432 to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and United States Attorney Hurst thanked special agents of IRS-Criminal Investigation and investigators with the Mississippi Auditor’s Office, who investigated the case, and Assistant United States Attorney Jay Golden and Trial Attorney Kim Shartar of the Tax Division, who prosecuted the case.
Lumberton Man Sentenced to over Seven Years Following Multiple Firearms ArrestsRead the Press Release
NEW BERN — The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today, United States District Judge Louise W. Flanagan sentenced Frederick Beverly, 41, of Lumberton to 87 months’ imprisonment, followed by 3 years of supervised release. Beverly pled guilty to one count of possession of a firearm by a convicted felon on January 29, 2019.
On January 19, 2017, a team of law enforcement consisting of members of the Lumberton Police Department, U.S. Marshal’s Service, Robeson County Sheriff’s Office, and North Carolina State Highway Patrol successfully located BEVERLY’s vehicle in Robeson County and arrested BEVERLY. Under BEVERLY’s seat, officers found a Hi-Point .45 caliber semi-automatic handgun.
At sentencing, it was noted that BEVERLY was found in possession of firearms on two additional occasions following his January 2017 arrest. On September 19, 2017, and again on March 16, 2018, officers of the Lumberton Police Department conducted traffic stops of vehicles which BEVERLY drove or in which he was a passenger and found BEVERLY to be in possession of handguns.
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.
That effort has been implemented through 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 violent crime rate, drug trafficking, and crimes against law enforcement.
The investigation of this case was conducted by the Lumberton Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), with additional assistance from the Robeson County Sheriff’s Office, North Carolina State Highway Patrol, and U.S. Marshals Service. Assistant United States Attorney Jake D. Pugh represented the government.
Long Island Federal Jury Convicts MS-13 Gang Associate of Murder, Racketeering and Assault ChargesRead the Press Release
A federal jury in Central Islip returned a guilty verdict today against Jose Suarez, an associate of the Sailors Locos Salvatruchas Westside (Sailors) clique of La Mara Salvatrucha, also known as the MS-13, a transnational criminal organization. Suarez was convicted of racketeering, murder, assault and related conspiracy, firearms and accessory after the fact charges in connection with the January 30, 2017 murder of Esteban Alvarado-Bonilla and the shooting of a female employee at a deli in Central Islip, and the December 18, 2016 assault of a man outside a restaurant in Brentwood. The verdict followed a three-week trial before United States Circuit Judge Joseph F. Bianco. When sentenced, Suarez faces a mandatory sentence of life in prison.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Geraldine Hart, Commissioner, Suffolk County Police Department (SCPD), and Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), announced the verdict.
“Suarez has been held responsible for the execution-style murder of a suspected gang rival and violent assaults, ruthless crimes that reflect the danger to our communities posed by MS-13,” stated United States Attorney Donoghue. “By his actions the defendant sought status within the gang, and with today’s verdict, what he has found instead is a mandatory sentence of life in prison. I commend our prosecutors and the FBI Long Island Gang Task Force for their outstanding work bringing the defendant to justice and their commitment to eradicating MS-13.”
“MS-13 attacks, assaults and murders simply to be as violent as they can. The gang members associated with this case and Mr. Suarez didn’t give a second thought to the life they took, the harm they caused or the terror they created in a community,” stated FBI Assistant Director-in-Charge Sweeney. “The partners of the FBI Long Island Gang Task Force are fully committed to collaborating and dedicating all necessary resources as we continue to eradicate violent gang members from our communities.”
“This guilty verdict ensures that a violent MS-13 associate will face life in prison for his heinous crimes dating back to 2016,” stated SCPD Commissioner Hart. “This case highlights the dangers this gang poses and reinforces our need to continue to work with our law enforcement partners to rid our communities of gang violence. I would like to thank the Eastern District of New York and our partners at the FBI Long Island Gang Task Force for their partnership and perseverance in holding gang members and their associates accountable for their crimes.”
“The combined efforts of associated law enforcement agencies and its dedicated investigators bring to justice defendant Jose Suarez, thus ending a wave of terror by way of the murder of one individual and assaults of two others,” stated NCPD Commissioner Ryder. “This conviction removes another MS-13 gang member from the streets of Nassau County and its communities, thus making them a safer place. We will continue our zero tolerance approach to end all illegal gang activity. Congratulations to all for a job well done.”
The evidence at trial established that, on January 30, 2017, a member of the Sailors clique saw Alvarado-Bonilla inside El Campesino Deli in Central Islip. Believing that Alvarado-Bonilla was a rival gang member, the Sailors clique devised a plan to kill him. Suarez drove MS-13 member Mario Aguilar-Lopez and an MS-13 associate to a street near the deli and parked. The MS-13 associate entered the deli and confirmed that Alvarado-Bonilla was there. Aguilar-Lopez then entered the deli, approached Alvarado-Bonilla from behind and shot him multiple times, killing him. One of the bullets traveled through Alvarado-Bonilla’s head and struck, in the chest, a female employee of the deli who was standing directly in front of him. Aguilar-Lopez ran out of the deli and back to the car where Suarez was waiting, and the two then fled the scene. The store employee was taken to a local hospital for treatment and survived.
Aguilar-Lopez pleaded guilty to the murder of Alvarado-Bonilla and wounding of the female deli employee, and is awaiting sentencing.
The government’s evidence at trial also established that on December 18, 2016, Suarez and several other MS-13 members and associates assaulted two men outside the Super Taco restaurant in Brentwood, seriously injuring one of the men. The victims were attacked because one of them had disrespected the MS-13.
Today’s trial conviction is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent international criminal organization. The MS-13’s leadership is based in El Salvador and Honduras, but the gang has thousands of members across the United States, comprised primarily of immigrants from Central America. With numerous branches, or “cliques,” the MS-13 is the largest and most violent street gang on Long Island. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted of federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted of federal racketeering charges for participating in murders, attempted murders and assaults. Since 2010, this Office has obtained indictments charging MS-13 members with carrying out more than 45 murders in the Eastern District of New York, and has convicted dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, comprising agents and officers of the FBI, SCPD, NCPD, Bureau of Alcohol, Tobacco, Firearms and Explosives, Nassau County Sheriff’s Department, Suffolk County Probation, Suffolk County Sheriff’s Office, Rockville Centre Police Department and the New York State Police.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Raymond A. Tierney and Michael T. Keilty are in charge of the prosecution.
The Defendant:
JOSE SUAREZ (also known as “Chompira”)
Age: 24
Central Islip, New YorkE.D.N.Y. Docket No. 16-CR-403 (JFB)
Local Man Heads to Prison After Answering “Casual Encounter” Ad in CraigslistRead the Press Release
BROWNSVILLE, Texas –A 52-year-old resident of McAllen has been ordered to prison following his conviction of enticement of a child, announced U.S. Attorney Ryan K. Patrick.
Juan Carlos Bautista began trial Jan. 30, 2019. However, after opening statements and testimony of four government witness, he decided to enter a guilty plea the same day.
Today, U.S. District Judge Fernando Rodriguez Jr. sentenced Bautista to a 120-month-term of federal imprisonment. He was further ordered to serve 10 years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. Bautista will also be ordered to register as a sex offender.
On Jan. 19, 2017, law enforcement placed an advertisement on the Brownsville Craigslist website under “casual encounters” section. Bautista responded to the ad via email expressing an interest in pursuing a sexual relationship with a 13-year-old minor female.
Bautista made arrangements to meet who he thought was the young female in Harlingen for the purpose of a sexual encounter. He was taken into custody upon his arrival Feb. 8, 2017.
Bautista will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation in conjunction with the Rio Grande Valley Child Exploitation and Investigation Task Force.
Assistant U.S. Attorneys Ana Cano and Jose A. Esquivel Jr. are prosecuting the case, which 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."
Lady Lake Man Pleads Guilty to Producing Child Pornography of 6-Year-Old GirlRead the Press Release
Ocala, Florida – Brian Alan Jones (36, Lady Lake) today pleaded guilty to sexual exploitation of a child under 12 years of age. He faces a minimum mandatory penalty of 15 years, and up to 30 years, in federal prison. A sentencing date has not yet been set.
According to court documents, Jones produced sexually explicit images of a 6-year-old girl who was under his supervision. He took explicit photographs of the victim on his cellphone and sent them to an undercover officer posing as a pedophile. The victim resided with her mother and Jones, who were allegedly dating at the time of this crime.
Jones also admitted to sending another undercover officer sexually explicit videos depicting young children having sexual intercourse with adult men. Jones’s cellphone was later found to contain more than 100 images of the child victim and over 70 images of other child pornography or child erotica.
This case was investigated by Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Michael P. Felicetta.
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 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 locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Kalispell man gets 12 years in prison for meth, firearms crimesRead the Press Release
BILLINGS—A Kalispell man who admitted drug trafficking and firearms crimes after law enforcement seized meth from his Billings hotel room last year was sentenced today to 12 years in prison and to five years of supervised release, U.S. Attorney Kurt Alme said.
Christopher Scott Hurst, 30, pleaded guilty in December to possession with intent to distribute meth and to possession of a firearm in furtherance of a drug trafficking crime.
U.S. District Judge Susan P. Watters presided.
Prosecutors said in court records that Hurst was arrested on Feb. 27, 2018 at a Billings hotel. Agents with the Eastern Montana High Intensity Drug Trafficking Area Task Force served a search warrant on Hurst’s room and seized about a half-ounce of meth and $1,488 cash. After the search, hotel staff found a handgun that had been missed in the initial search.
Hurst told investigators that he had been getting meth, heroin and cocaine from two persons in California and that these persons had been bringing large quantities of drugs to Billings for months. Hurst also admitted he had been getting four to eight ounces of meth almost every day for months.
In addition, a witness who was familiar with Hurst’s activities told agents he had repeatedly seen Hurst with firearms and meth and that Hurst had traded firearms for meth on several occasions.
Assistant U.S. Attorney Colin Rubich prosecuted the case, which was investigated by the FBI, EMHIDTA and Billings Police Department.
The case is part of Project Safe Neighborhoods (PSN), which 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.
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Indian National Arrested for Transporting Illegal AliensRead the Press Release
SYRACUSE, NEW YORK – Jaswinder Singh age 30, of Philadelphia, Pennsylvania, has been charged in federal court in Syracuse with transporting aliens in the United States, knowing or in reckless disregard of the fact that the aliens were in the United States illegally, announced United States Attorney Grant C. Jaquith and U.S. Border Patrol Swanton Sector Chief Patrol Agent Robert Garcia.
A criminal complaint filed in United States District Court charges Singh with transporting two aliens who were without lawful status in the United States, and alleges that he received approximately $2,200 as payment for his services. The complaint further alleges that an agent from the United States Border Patrol stopped Singh’s vehicle in St. Lawrence County near the Canadian border, after a U.S. Customs and Border Protection (CBP) Air and Marine Unit helicopter spotted multiple people entering a vehicle in the area after crossing the St. Lawrence River from Canada into the United States.
The charge filed against Singh carries a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of 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.
The defendant was arraigned before United States Magistrate Judge David E. Peebles, and ordered detained pending resolution of the charges.
The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
This case is being investigated by the United States Border Patrol with assistance from U.S. Customs and Border Protection (CBP) Air and Marine Operations (AMO), and is being prosecuted by Assistant U.S. Attorney Michael F. Perry.
Illegal Alien Sentenced on Gun Possession ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that Gregorio Salinas-Guzman, a native of Mexico living in Lyndonville, NY, who was convicted of being alien in possession of a firearm, was sentenced to serve 30 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Seth T. Molisani, who is handling the case, stated that the defendant is a native and citizen of Mexico with no lawful status in the United States. On March 15, 2018, the defendant was arrested following the execution of a search warrant at his residence on Alps Road in Lyndonville. Inside the residence, the Orleans County Major Felony Crime Task Force, assisted by Immigration and Customs Enforcement, recovered two 20 gauge shotguns; a rifle; a .22 caliber revolver; 207 rounds of ammunition; shotgun slugs; and 15 rounds of shotgun shells. Investigators also recovered a counterfeit Social Security card and a fraudulent Permanent Resident Card in the defendant’s name.
The sentencing is the result of plea is the result of an investigation by the Orleans County Major Felony Crime Task Force, under the direction of Sheriff Randy Bower, and Immigration and Customs Enforcement, Enforcement and Removal Operations, under the direction of Thomas E. Feely, Director of Field Operations.
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Illegal Alien Sentenced After Fourth Illegal Reentry into United StatesRead the Press Release
RICHMOND, Va. – A Mexican man who has been deported at taxpayer expense on three previous occasions was sentenced today to nearly two years in prison for his fourth illegal reentry into the United States.
According to court documents, Isidoro Gonzalez-Ferretiz, 35, first illegally entered the United States sometime in 2008. In August 2008, he was voluntarily removed to Mexico. Sometime later, Gonzalez-Ferretiz again illegally entered the United States and was found by authorities in February 2014. That same year, Gonzalez-Ferretiz was convicted of theft from a motor vehicle in Pennsylvania. In June 2014, Gonzalez-Ferretiz was again deported back to Mexico. Sometime later, Gonzalez-Ferretiz illegally entered the United States for the third time. In 2017, he was convicted for driving while intoxicated, and in March 2018 was again deported back to Mexico at taxpayer expense. After the March 2018 removal, Gonzalez-Ferretiz illegally entered the United States for a fourth time and was found by authorities in Henrico County in September 2018.
Gonzalez-Ferretiz, who was sentenced to 21 months in prison, will be deported at taxpayer expense for a fourth time after the completion of his prison sentence.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Lyle A. Boelens, Acting Field Office Director for U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) Washington, D.C., made the announcement after sentencing by Senior U.S. District Judge Robert E. Payne. Assistant U.S. Attorney Heather H. Mansfield 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. 3:18-cr-117.
Illegal Alien Charged in Money Laundering Conspiracy and for Firearms ViolationRead the Press Release
CORPUS CHRISTI, Texas – A federal grand jury has returned a two-count indictment against a 31-year-old Mexican citizen who illegally resided in Mission, announced U.S. Attorney Ryan K. Patrick. Abraham Barajas-Alcantar was originally arrested by criminal complaint April 30, 2019. A grand jury has now indicted him for conspiracy to conduct financial transactions and being an alien illegally in possession of firearms. He had already been in custody on the original charges, but will make an appearance on the indictment before a U.S. magistrate judge in the near future. The indictment alleges Barajas-Alcantar conspired to conduct financial transactions and transported, transmitted and transferred the proceeds of the drug trafficking from May 28, 2014, to Nov. 1, 2017. He is further charged with being an alien from Mexico, illegally and unlawfully in the United States, who knowingly possessed six firearms which had previously traveled in interstate or foreign commerce. The charges allege a money laundering conspiracy which focuses on a number of methods drug traffickers use to launder proceeds from the delivery and sale of narcotics. Specifically, in this case, Barajas allegedly purchased aircraft, aircraft engines and aircraft parts with drug proceeds and shipped them to his business in McAllen. From there, Barajas shipped the merchandise to Mexico for his customers, according to the allegations. The charges further allege drug proceeds were then sent to Barajas in the form of bulk cash and through the funneling of cash deposits via banks. Barajas-Alcantar allegedly had accounts or had access to or controlled accounts in those financial institutions. This activity combined the traditional methods of bulk cash smuggling and the use of funnel accounts with trade-based money laundering through the purchase of aircraft and related equipment with drug proceeds for shipment to drug traffickers in Mexico, according to the charges. If convicted of the money laundering conspiracy offense, Barajas-Alcantar faces up to 20 years in federal prison, while the firearms offense carries a potential 20 year-term of imprisonment. Both convicted also have a potential $250,000 fine. The Drug Enforcement Administration and IRS – Criminal Investigation conducted the investigation. Assistant U.S. Attorney Kenneth Cusick is prosecuting the case. An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until convicted through due process of law.Holyoke Man Pleads Guilty to Threatening to Murder Federal Law Enforcement OfficerRead the Press Release
BOSTON - A Holyoke man pleaded guilty yesterday in federal court in Boston to threatening to murder a federal law enforcement officer.
Carlos Maldonado, 30, pleaded guilty to threatening to murder a federal law enforcement officer in retaliation for the federal officer’s performance of his official duties. U.S. District Court Judge Denise J. Casper scheduled sentencing for June 19, 2019. Maldonado was charged on April 26, 2019.
Maldonado is presently serving a 42-month federal sentence, a compilation of a 30-month sentence as a result of his conviction for cocaine distribution in 2016, and a consecutive 12-month sentence for his violation of supervised release conditions related to a prior conviction for distributing heroin in 2014.
If convicted on the charge of threatening a federal law enforcement officer, Maldonado faces a sentence of no greater than 10 years in prison, three years of supervised release, and a $250,000 fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement. Assistant U.S. Attorney Greg A. Friedholm of Lelling’s Worcester Branch Office is prosecuting the case.
Hartford Man Who Sold Fentanyl to Southington Overdose Victim Pleads GuiltyRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that EDGARDO RIVERA, also known as “Eggy,” 27, of Hartford, waived his right to be indicted and pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to fentanyl distribution and firearm possession offenses.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on July 17, 2017, the Southington Police Department and emergency medical personnel responded to a Southington residence on a report of an unresponsive male. At the residence, medical personnel pronounced a male victim deceased of a suspected drug overdose. Investigators collected bags, which were later found to contain fentanyl, from the scene.
The Office of the Chief Medical Examiner subsequently determined the victim’s cause of death to be “acute fentanyl toxicity.”
The investigation revealed that the victim purchased fentanyl from Rivera the day before the victim died from ingesting the drug.
In May and June 2018, law enforcement conducted controlled purchases of fentanyl and heroin from Rivera.
Rivera was arrested on federal criminal complaint on October 5, 2018. At the time of his arrest, he was found in possession of approximately 300 grams of controlled substances containing heroin and fentanyl, a loaded 9mm pistol, and more than $14,000 in cash.
Rivera pleaded guilty to one count of possession with intent to distribute, and distribution of, 40 grams or more of fentanyl, and one count of possession of a firearm in furtherance of a narcotics trafficking offense. Judge Dooley scheduled sentencing for August 21, 2019, at which time Rivera faces a prison term of at least 10 years.
Rivera is detained pending sentencing.
This investigation is being conducted by the Drug Enforcement Administration’s New Haven Task Force, U.S. Marshals Service and Southington Police Department. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Harrison County man sentenced for role in methamphetamine distribution operations in Harrison, Marion, and Monongalia CountiesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Christopher Conley, of Clarksburg, West Virginia, was sentenced today to 14 months incarceration for his role in a methamphetamine distribution operation, United States Attorney Bill Powell announced.
Conley, age 35, pled guilty to one count of “Unlawful Possession of a Firearm” in January 2019. Conley, being a person prohibited from having a firearm, admitted to having a 9mm pistol in April 2018 in Harrison County.This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. District Judge Thomas S. Kleeh presided.
Harnett County Nine Trey Blood Sentenced for Illegally Possessing FirearmsRead the Press Release
RALEIGH – Robert J. Higdon, Jr., the United States Attorney for the Eastern District of North Carolina, announces that Chief United States District Judge Terrence W. Boyle sentenced TYRESE QUINTARIUS PEGUES, 19, of Lillington to 27 months’ imprisonment, followed by 3 years of supervised released.
On November 27, 2018, PEGUES was named in a one-count Indictment charging him with Possession of a Firearm by a Convicted Felon. On February 19, 2019, PEGUES pled guilty to the charge.
On August 25, 2018, a call was placed to the Harnett County Sheriff’s Office in Lillington, North Carolina, concerning shots fired at a residence in Heritage Village. Deputies responded and identified the address in question as 1346 Heritage Way. Deputies noted bullet holes in the house and in a vehicle, and they then made entry through the unsecured front door. Once inside, they observed firearms, currency, a small quantity of marijuana and a $10 bill in a jar, and packaging material in the kitchen and in a bedroom in plain view. A .380 caliber handgun was located in one of the bedrooms with the slide locked back. Shell casings for a .380 caliber firearm were located outside the residence.
After securing a search warrant, an inspection of the residence recovered a total of three firearms, including an AR-15 assault weapon containing two thirty-round magazines taped together on the couch in the living room. Paperwork identifying PEGUES was recovered from one of bedrooms. The bedroom identified as belonging to PEGUES contained the .380 caliber handgun and a set of digital scales. The gun was reported stolen.
On August 28, 2018, PEGUES was arrested. He declined to provide any information on that date, but did provide a statement on August 29, 2018. PEGUES admitted shooting at a vehicle in self-defense after seeing a vehicle drive by slowly and a known individual raise what appeared to be a firearm. Thereafter, PEGUES went inside to retrieve the AR-15 and returned to the porch. PEGUES denied any involvement with the marijuana found inside the residence.
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.
That effort has been implemented through 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.
Assistant United States Attorney Daniel W. Smith prosecuted the case for the government.
Garryowen man admits involuntary manslaughter, assault charges in vehicle crashRead the Press Release
BILLINGS – A Garryowen man this week admitted involuntary manslaughter and assault charges stemming from an August 2018 vehicle crash that killed one passenger and injured two other passengers on the Crow Reservation, U.S. Attorney Kurt Alme said.
Gus Oldbear III, 20, pleaded guilty on May 21 to involuntary manslaughter and to two counts of assault resulting in serious bodily injury.
U.S. District Judge Susan P. Watters presided. Oldbear faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release on the assault charge and a maximum eight years in prison, a $250,000 fine and three years of supervised release on the manslaughter charge. Watters released Oldbear pending sentencing.
Prosecution evidence in court records said that Oldbear was driving a truck on a secondary highway between Wyola and Lodge Grass at about 4 a.m. on Aug. 10, 2018 when it left the road, hit a ditch and rolled. One of the three passengers in the truck died as a result of the crash, while the other two suffered serious injuries.
Oldbear and the three passengers, and an additional person, had been drinking and driving around most of the day on Aug. 9 and evening of Aug. 10. The additional person was dropped off in Wyola immediately before the crash. Oldbear admitted in an interview that he had been drinking but claimed that the cause of the crash was him falling asleep. A blood test taken from Oldbear at the time of crash determined he had a blood-alcohol concentration of .123 percent.
An autopsy performed on deceased person confirmed the cause of death was blunt force trauma caused by the crash. Both of the surviving passengers suffered spinal fractures and other fractures and lacerations.
Assistant U.S. Attorney Lori Suek prosecuted the case, which was investigated by the FBI.
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Four people indicted for their roles in conspiracy to distribute 16 pounds of methamphetamineRead the Press Release
A nine-count indictment was filed charging four people for their roles in a conspiracy to distribute 16 pounds of methamphetamine.
Indicted are: Rafael Smith, 47, of Covington, Virginia; Robert Coore, 46, a Jamaican national; Shuree Jefferson, 41, of Garfield Heights, and Jeffrey Westmoreland, 30, of Rock Creek.
All four are charged with conspiracy to distribute and possess with intent to distribute methamphetamine, as well as additional charges of possession or distribution of methamphetamine. Coore is also charged with illegal reentry, as he was in the United States on March 20, 2019, after having been deported to Jamaica on January 25, 2018.
According to court documents:
Coore and Smith met numerous times in March and April 2019 with an undercover agent at locations in Beachwood, Independence, Brooklyn, Cleveland and elsewhere to sell large amounts of methamphetamine.
Coore stated he traveled to California to arrange for bulk shipments of drugs to the Cleveland area. Coore and Smith requested the undercover agent’s help in locating a warehouse with a loading dock and town motor capable of offloading a tractor trailer upon arrival in Northeast Ohio.
Coore was arrested on April 23 with four pounds of methamphetamine. A search of a residence in Aurora resulted in the arrest of Smith, and seizure of approximately three pounds of methamphetamine.
Prosecutors are seeking to forfeit $nearly $48,000 in cash seized as part of the investigation.
This case was investigated by Homeland Security Investigations, the Drug Enforcement Administration and the Cleveland Division of Police. It is being prosecuted by Assistant U.S. Attorney Margaret Sweeney.
If convicted, the defendants’ sentences will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Four Men Indicted in Schemes to Corrupt and Defraud District of Columbia's Office of Tax and RevenueRead the Press Release
WASHINGTON – Four individuals were arrested yesterday on federal indictments alleging that they participated in corruption and fraud schemes centered at the District of Columbia’s Office of Tax and Revenue (OTR).
Last week, a federal grand jury in the District of Columbia returned a sealed indictment alleging that Vincent Slater, 41, of Temple Hills, MD, the former supervisor of OTR’s Compliance Administration Adjustment Unit; Anthony Merritt, 44, of Washington, D.C., a former employee of the District of Columbia Department of Consumer and Regulatory Affairs (DCRA); and Andre de Moya, 46, of Brookeville, MD, a District business owner, conspired to fraudulently reduce the tax liabilities of de Moya’s businesses by paying bribes to Slater. The indictment also alleges that two other District business owners, Chao Charles Zhou, 46, and Arman Amirshahi, 48, both of Maryland, participated in the conspiracy.
According to the indictment, Slater brokered bribery agreements with de Moya, Zhou, and Amirshahi through Merritt, whom Slater relied upon to communicate with the business owners and to collect bribe payments. The indictment alleges that Slater used his position at OTR to fraudulently eliminate tax liabilities of businesses owned by de Moya, Zhou, and Amirshahi. According to the indictment, Slater caused fraudulent tax adjustments to be entered into the computer database used by OTR to manage taxpayer accounts. These adjustments resulted in the granting of waivers and abatements for which the businesses were ineligible under OTR policies and procedures, as well as the creation of false tax credits that the indictment alleges Slater to have caused to be applied against the businesses’ current liabilities. The indictment further alleges that Slater settled the tax liabilities of at least one business by creating a fraudulent Offer in Compromise agreement, in which he falsely identified himself as a supervisor in the Collection Division, because he was not authorized to issue such an agreement in his role in the Adjustment Unit. Finally, the indictment alleges that Slater used his official position and knowledge of District tax laws to take measures to help co-conspirators unlawfully evade taxes without consequence.
In a separate indictment, also returned under seal by a federal grand jury in the District of Columbia last week, Bobby Tucker, 63, of Suffolk, Virginia, is alleged to have paid bribes to an OTR official in order to reduce the tax liabilities of a business he consulted and to take other actions to benefit Tucker’s business interests as opportunities arose. The indictment alleges that Tucker agreed to pay an OTR official, who was working as a confidential source, to obtain referrals of city taxpayers with outstanding tax liabilities. According to the indictment, Tucker would then attempt to broker a bribery agreement whereby he would be paid by a business owner to facilitate a bribe to the OTR official to fraudulently reduce or eliminate tax liabilities.
Slater, Merritt, and de Moya were arrested Wednesday in the Metropolitan Area and presented to U.S. Magistrate Judge G. Michael Harvey of the U.S. District Court for the District of Columbia. All three defendants were released on personal recognizance. They are each charged with one count of Conspiracy, in violation of 18 U.S.C. § 371; Slater and de Moya are each charged with one count of Bribery, and Merritt is charged with two counts of Bribery, in violation of 18 U.S.C. § 201; and all three defendants are charged with six counts of Money, Property, and Honest Services Wire Fraud, in violation of 18 U.S.C. §§ 1343 and 1346. The case is assigned to U.S. District Judge Reggie B. Walton, who scheduled an initial status conference for De Moya, Merritt, and Slater on May 29, 2019.
Tucker was arrested on Wednesday in Suffolk, VA, and presented to U.S. Magistrate Judge Robert J. Krask of the U.S. District Court for the Eastern District of Virginia, Norfolk Division. He was released on personal recognizance. Tucker is charged with one count of Bribery, in violation of 18 U.S.C. § 201. Tucker’s case is assigned to Chief Judge Beryl A. Howell of the U.S. District Court for the District of Columbia. The next court date is May 31.
The charges in an indictment are merely allegations and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. The statutory maximum penalty for Conspiracy, in violation of 18 U.S.C. § 371, is five years; for Bribery, in violation of 18 U.S.C. § 201, the statutory maximum penalty is 15 years; and for Money, Property, and Honest Services Wire Fraud, in violation of 18 U.S.C. §§ 1343 and 1346, the statutory maximum penalty is 20 years.
These cases are being investigated by the FBI's Washinigton Field Office and the District of Columbia Office of Inspector General, with the assistance of the District of Columbia Office of the Chief Financial Officer, Office of Integrity and Oversight. Assistant U.S. Attorneys Emily Miller, Molly Gaston, and Peter Lallas of the Fraud and Public Corruption Section are prosecuting the cases.
Former Superintendent of Oswego Wastewater Treatment Plant Pleads Guilty to Clean Water Act ViolationRead the Press Release
SYRACUSE, NEW YORK – Gary Hallinan, age 61, of Oswego, New York, pled guilty yesterday in federal court in Syracuse to negligently discharging wastewater from the City of Oswego Wastewater Treatment Plant into Lake Ontario in violation of the Clean Water Act on three dates between March 2015 and June 2015, announced United States Attorney Grant C. Jaquith, Tyler Amon, Special Agent in Charge of the U.S. Environmental Protection Agency’s Criminal Investigation Division (EPA-CID) in New York, and Bernard Rivers, Director of Law Enforcement, New York State Department of Environmental Conservation (DEC).
In pleading guilty, Hallinan admitted that in December 2014, while he was the Superintendent of the Oswego Wastewater Treatment Plant, the plant’s centrifuge, an essential piece of equipment to process wastewater and remove untreated or improperly treated sewage, stopped operating. As a result, the plant could no longer properly remove sewage from its wastewater. Over the next five months, Hallinan, as the superintendent of the plant, failed to take action to remove sewage from the plant’s wastewater or to report the broken centrifuge to the New York State Department of Environmental Conservation. As a result of the defendant’s negligence, the Oswego Wastewater Treatment Plant discharged wastewater containing solid sewage in violation of its permit under the Clean Water Act. These discharges took place on March 1, 2015; June 19, 2015; and June 23, 2015. The concentration of solid matter in the water discharged into Lake Ontario on June 23, 2015, was approximately 60 times higher than allowed by the plant’s permit.
The charge to which Hallinan pled guilty yesterday carries a maximum penalty of up to 1 year in prison, a fine of up to $100,000, and a term of supervised release of up to 1 year. The defendant will be sentenced on September 24, 2019 by United States Magistrate Judge David E. Peebles. 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 U.S. Environmental Protection Agency’s Criminal Investigation Division (EPA-CID), the New York State DEC, Division of Law Enforcement and Bureau of Environmental Crimes Investigation Unit (BECI), and is being prosecuted by Assistant United States Attorney Michael F. Perry.
Five Plead Guilty in Oxycodone ConspiracyRead the Press Release
NASHVILLE, Tenn. – May 23, 2019 – The final person charged last year in a in a conspiracy to obtain and distribute oxycodone in the Nashville area has pleaded guilty in U.S. District Court, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
AbdulNasar Nour, 25, of Antioch, Tennessee, pleaded guilty today to wire fraud and aggravated identity theft, after being indicted with four others in June 2018.
In January 2017, Nour and others devised a scheme to steal the personal identification information, including the DEA registration numbers, from four area medical providers, in order to create fraudulent prescriptions for oxycodone. Another defendant, William Afari, worked as an intern at a dental clinic in Nashville, and stole the personal information of 22 patients, which was then used to create the fraudulent prescriptions. These prescriptions were presented at pharmacies in the Nashville area and exchanged for oxycodone.
Others charged in this conspiracy have previously pleaded guilty and are awaiting sentencing. They include William Afari, 24, of Antioch, Tennessee; Simbarashe Kanjanda, aka Simba, 38, of Hermitage, Tennessee; Kudakawashe Mandishona, aka Kuda, 24, of Antioch, Tennessee; and Robert Pride, Jr., 32, of Nashville, Tennessee.
Each defendant faces a mandatory minimum term of two years in prison and up to 20 years, when they are sentenced later this year.
This case was investigated by the Drug Enforcement Administration; the Tennessee Office of Inspector General; and the Smyrna Police Department. The case is being prosecuted by Assistant U.S. Attorney Ahmed A. Safeeullah.
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Felon Pleads Guilty to Firing Shots Outside Greece ResidenceRead 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 Christopher Rivers, 22, pleaded guilty before U.S. District Judge David G. Larimer to being a felon in possession of a firearm. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Cassie Kocher, who is handling the case, stated that during the early morning hours of January 25, 2019, the defendant fired a shotgun multiple times outside an apartment window at 1221 Affinity Lane in Greece, NY.
Rivers was previously convicted of Criminal Possession of a Firearm in Orleans County Court, and is legally prohibited from possessing a firearm.
The case was brought by the U.S. Attorney’s Office as part of its Project Safe Neighborhoods (PSN) initiative. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The plea is the result of an investigation by the Greece Police Department, under the direction of Chief Patrick D. Phelan, and the Bureau of Alcohol, Tobacco, Firearms & Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
Sentencing is scheduled for July 30, 2019, at 10:00 a.m. before Judge Larimer.
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Federal Jury Finds Pittsburgh Man Guilty of Possessing Crack, Cocaine, Marijuana and 4 Loaded FirearmsRead the Press Release
PITTSBURGH - After deliberating for two hours, a federal jury of nine men and three women found Denver Sangster guilty of one count of Possession with the Intent to Deliver More than 280 Grams of Crack Cocaine, a Quantity of Cocaine, and a Quantity of Marijuana and one count of Possession of Firearms in Furtherance of Drug Trafficking, United States Attorney Scott W. Brady announced today.
Sangster, 43, of Pittsburgh, Pennsylvania was tried before United States District Judge David Stewart Cercone in Pittsburgh, Pennsylvania.
According to Assistant United States Attorneys Brendan T. Conway and Brian Czarnecki, who prosecuted the case, the evidence presented at trial established that on March 30, 2016, the Pittsburgh Bureau of Police executed a search warrant at Sangster’s former residence, along with his person and vehicle. During the course of the search warrant, the officers located approximately 340 grams of crack cocaine, 150 grams of powdered cocaine, and more than nine kilograms of marijuana, along with four loaded firearms.
Judge Cercone scheduled sentencing for October 1, 2019. The law provides for a total sentence of not less than 15 years in prison and up to life. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the and the prior criminal history, if any, of the defendant.
The Pittsburgh Bureau of Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that led to the prosecution of Sangster.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Ethiopian Human Rights Abuser Sentenced for Fraudulently Obtaining U.S. Citizenship by Admitted Series of Lies in Naturalization Process, Including Failure to Disclose Participation in Persecution During the Red Terror Period in EthiopiaRead the Press Release
A naturalized U.S. citizen residing in Alexandria, Virginia was sentenced to 37 months in prison for having fraudulently obtained U.S. citizenship.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia and Special Agent in Charge Patrick J. Lechleitner of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C made the announcement.
Mergia Negussie Habteyes, 58, previously pleaded guilty to one count of unlawful procurement of naturalization. Negussie was sentenced by U.S. District Judge T.S. Ellis III of the Eastern District of Virginia.
“Negussie-Habteyes believed he could conceal his past participation in the brutal persecution of political dissidents in order to enjoy the benefits of U.S. citizenship and escape accountability in Ethiopia,” said Assistant Attorney General Benczkowski. “This case demonstrates the Justice Department’s continued commitment to ensuring that the United States does not become a safe haven for human rights violators.”
“Negussie hid his past atrocities as a human rights abuser and lied his way into the United States,” said U.S. Attorney Terwilliger. “United States citizenship and the protections and privileges that accompany it is not intended for those who persecute their fellow man. My thanks to the prosecutors and law enforcement agents and officers for their outstanding work on this case.”
According to admissions in the plea agreement, Negussie participated in the persecution of detainees in Ethiopia from roughly 1977 to 1978 during a period of time known as the “Red Terror.” As part of actions led by a council of military officers in power at the time, known as the “Derg,” Negussie injured and abused detainees on account of their political opinion by beating them with weapons including belts, rods and other objects, causing permanent scarring and injury to some of the detainees. During these beatings, Negussie questioned the detainees about their affiliation with the Ethiopian People’s Revolutionary Party (EPRP) and the opposition activities of the EPRP, which was politically opposed to the Derg.
Negussie was able to come the United States in 1999 by telling a series of lies to U.S. immigration authorities. He ultimately obtained U.S. citizenship in 2008. He ultimately obtained U.S. citizenship in 2008. At his plea hearing, Negussie specifically admitted that, during his sworn naturalization interview, he falsely stated that he never persecuted persons because of their political opinion, and he failed to disclose that he had committed a crime or offense for which he was not arrested. In fact, as Negussie admitted, he had participated in the persecution and assaults against individuals imprisoned because of their political opinion. Additionally, Negussie admitted that he falsely stated that he never gave false or misleading information to any U.S. government official while applying for any immigration benefit and falsely stated that he never lied to U.S. immigration authorities to gain entry or admission into the United States and to obtain immigration benefits.
Negussie’s materially false representations in sworn statements to U.S. immigration officials resulted in his procurement of naturalization contrary to law. In addition to sentencing Negussie to a period of incarceration, Negussie’s U.S. citizenship was also revoked.
The case was investigated by ICE HSI Washington, D.C. and Sterling, Virginia Field Office with the support of the Human Rights Violators and War Crimes Center (HRVWCC). Established in 2009, the HRVWCC furthers the government’s efforts to identify, locate and prosecute human rights abusers in the United States, including those who are known or suspected to have participated in persecution, war crimes, genocide, torture, extrajudicial killings, female genital mutilation and the use or recruitment of child soldiers. The HRVWCC leverages the expertise of a select group of agents, lawyers, intelligence and research specialists, historians and analysts who direct the government’s broader enforcement efforts against these offenders. The HRVWCC is comprised of ICE HSI’s Human Rights Violators and War Crimes Unit, ICE’s Human Rights Law Section, FBI’s International Human Rights Unit and the Justice Department’s Human Rights and Special Prosecutions Section (HRSP).
The case was jointly prosecuted by Trial Attorney Jamie Perry of the Criminal Division’s HRSP and Assistant U.S. Attorney Alexander Blanchard of the Eastern District of Virginia.
Members of the public who have information about former human rights violators in the United States are urged to contact U.S. law enforcement through the HSI tip line at 1-866-DHS-2-ICE or its online tip form at www.ice.gov/exec/forms/hsi-tips/tips.asp.
Eight Charged with Trafficking Marijuana from Colorado to OklahomaRead the Press Release
OKLAHOMA CITY – Eight people have been charged in a conspiracy to distribute more than 100 kilograms of marijuana by transporting it from Colorado Springs to Oklahoma, announced First Assistant U.S. Attorney Robert J. Troester. TOMMY SAVANH NAMMIXAY, 40, CHRISTOPHER BLAND BYRNE, 40, ANDREW CORY EAVES, SR., 47, TERRY DON BROWNE, 34, LAWRENCE JOSEPH HARDEN, 33, RALPH ARTHUR GOLDEN, 59, Johnnie Wilmire Vinavong, 41, and ILIANA MACIAS, 29, are named in a criminal complaint filed on May 13, 2019.
According to an affidavit in support of the complaint, investigation began in September 2016, when the Norman Police Department conducted controlled purchases of marijuana and cocaine and discovered a potential distribution network linked to Nammixay. The affidavit indicates that a long-term Drug Enforcement Administration investigation revealed Nammixay was the leader of a drug-trafficking organization that moved large amounts of high-grade marijuana from Colorado Springs to Oklahoma City, where it was re-distributed throughout Oklahoma. In late 2017, using court-approved GPS location monitoring and physical surveillance, DEA investigators are alleged to have learned that Nammixay made numerous trips to and from Colorado Springs in which he drove a "lead" vehicle and a conspirator drove a "load" vehicle with large quantities of marijuana. When Nammixay and his colleagues arrived in Oklahoma City, they allegedly stored the marijuana in various “stash houses” under Nammixay’s control.
According to the affidavit, the conspiracy included at least 49 trips to and from Colorado Springs. It is alleged that law enforcement seized a total of 278.35 pounds of marijuana in the course of six traffic stops during the investigation.
Nammixay was arrested in the early morning hours of May 20, 2019. Today, after an evidentiary hearing that showed the presence of more than 40 weapons, U.S. Magistrate Judge Bernard M. Jones determined that Nammixay is a risk of flight as well as a danger to community and ordered him detained pending further proceedings.
If found guilty of conspiring to possess 100 kilograms or more of marijuana, each defendant faces a maximum potential penalty of 40 years in prison and a fine of up to $5,000,000. This crime carries a mandatory minimum sentence of five years in prison. Each defendant would also be required to serve a term of supervised release of at least four years and up to life.
This case is a result of an investigation by the Drug Enforcement Administration, with assistance from the Norman Police Department, Homeland Security Investigations, Internal Revenue Service—Criminal Investigations, and the Oklahoma Highway Patrol. Assistant U.S. Attorneys Tom Snyder and David Petermann are prosecuting the case.
The public is reminded that this charge is merely an allegation and that each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to public filings for more information.
Dominican National Pleads Guilty to Misuse of A Social Security NumberRead the Press Release
BOSTON – A Dominican national was sentenced yesterday in federal court in Boston for misusing a Social Security number.
Adys Sanchez, 47, was sentenced by U.S. District Court Judge Leo T. Sorokin to 12 months and one day in prison and two years of supervised release. Sanchez will be subject to deportation proceedings upon completion of her sentence. In April 2018, Sanchez was charged by indictment and later arrested in Miami, Fla.
In April 2014, Sanchez used the name and Social Security number of a U.S. citizen from Puerto Rico when she applied for a driver’s license renewal at the Massachusetts Registry of Motor Vehicles. Based on the application, Sanchez’s license in the name of the U.S. citizen was renewed.
United States Attorney Andrew E. Lelling; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; William B. Gannon, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office; Scott Antolik, Special Agent in Charge of the Social Security Administration Office of Inspector General; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit is prosecuting the case.
Dominican National Pleads Guilty to Identity Theft and Drug ChargeRead the Press Release
BOSTON - A Dominican national pleaded guilty yesterday in federal court in Boston to identity theft and distributing fentanyl and cocaine.
Yhoan Alexis Nivar Rodriguez, 30, a Dominican national residing in Mattapan, pleaded guilty to Social Security fraud, aggravated identity theft, and possession of cocaine and fentanyl with intent to distribute. Chief U.S. District Court Judge Patti B. Saris scheduled sentencing for Aug. 22, 2019.
On Dec. 15, 2015, Nivar went to a Registry of Motor Vehicles office in Braintree and successfully applied for a Massachusetts driver’s license using the name, date of birth, and Social Security number of a female U.S. citizen from Puerto Rico. In July 2018, federal agents went to Nivar’s apartment to arrest him and execute a search warrant. While executing the warrant, agents found a locked safe in Nivar’s bedroom that contained small knotted baggies of drugs, a ledger, and $1,500. Another $2,753 was found on a table in the bedroom.
The charge of Social Security fraud provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of up to $250,000. The charge of aggravated identity theft carries a mandatory sentence of two years in prison, to be served consecutive to any other sentence imposed, up to one year of supervised release, and a fine of up to $250,000. The charging statute for possession with intent to distribute cocaine and fentanyl provides for a sentence of no greater than 20 years in prison, supervised release for a minimum of three years and up to life, and a fine of up to $1 million. Nivar will be subject to deportation upon completion of his sentence. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations in Boston; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and William B. Gannon, Special Agent in Charge of the U.S. Department of State, Diplomatic Security Service, Boston Field Office, made the announcement today. Assistant U.S. Attorney Christine Wichers of Lelling’s Major Crimes Unit is prosecuting the case.
Department of Justice Files Complaint Against New York Company to Stop Distribution of Adulterated Dietary SupplementsRead the Press Release
The United States filed a civil complaint to stop a Long Island company from marketing adulterated dietary supplements, the Department of Justice today announced.
The complaint, filed May 23, seeks a permanent injunction against defendants Confidence USA Inc., of Port Washington, New York, company president Helen Chian, and company manager Jim Chao to prevent the defendants from marketing dietary supplements without following current good manufacturing practices (cGMPs). The complaint alleges that multiple inspections by the U.S. Food and Drug Administration (FDA) repeatedly showed that the defendants failed to verify the identity of each dietary ingredient used in the manufacture of their supplements and also failed to verify that their products met specifications for purity, strength, composition, and contamination limits.
According to the complaint, the defendants make and distribute more than 50 dietary supplements under brand names that include Confidence USA, American Best, USA Natural, and The Herbal Store. The Justice Department filed the complaint in U.S. District Court for the Eastern District of New York at the request of the FDA.
“Dietary supplement makers put consumers’ health at risk by distributing products without first verifying that those products actually are what they claim to be,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The Department of Justice will continue to work with the FDA to make sure that dietary supplement manufacturers meet the legal standards necessary to ensure the quality of such products.”
“Millions of Americans take dietary supplements and trust that these products are safe,” stated United States Attorney Richard P. Donoghue of the Eastern District of New York. “This Office is committed to protecting those consumers and holding dietary supplement manufacturers and distributors to current safety standards. Today’s filing demonstrates that we will take action to enforce those standards and keep the public safe.”
“Ensuring product integrity is a priority for the FDA,” said, Melinda Plaisier, Associate Commissioner for Regulatory Affairs at the Food and Drug Administration. “Consumers should be able to expect that the dietary supplements they purchase meet quality standards and contain only what they are supposed to, in the correct amounts. The FDA will continue to take swift action against companies that sell adulterated dietary supplements.”
Dietary supplements not prepared, packed, and held in conformance with cGMP regulations are adulterated in violation of the Federal Food, Drug, and Cosmetic Act. According to the Department of Justice’s complaint, FDA issued a warning letter to Confidence USA in 2011 regarding deficiencies at the company. U.S. Marshals previously seized certain Confidence USA products in connection with a 2012 complaint alleging that the products were adulterated.
A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.
The case is being handled by Trial Attorney Douglas Ross of the Civil Division’s Consumer Protection Branch, with the assistance of the Assistant United States Attorney Robert Schumacher from the U.S. Attorney’s Office for the Eastern District of New York, and Associate Chief Counsel for Enforcement Jennifer Argabright of the FDA’s Office of General Counsel.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Eastern District of New York, visit its website at https://www.justice.gov/usao-edny.
Creedmoor Man Sentenced to More Than 27 Years for Manufacturing Child PornographyRead the Press Release
NEW BERN – Robert J. Higdon, Jr., the United States Attorney for the Eastern District of North Carolina, announces that United States District Judge Louise W. Flanagan sentenced MARK BASS, 59, of Creedmoor, North Carolina to 326 months’ imprisonment, followed by a lifetime of supervised released. He was also ordered to pay restitution in the amount of $75,000.00.
On October 18, 2018, BASS was named in a one-count Indictment charging him with the Manufacture of Child Pornography. On January 28, 2019, BASS pled guilty to the charge. BASS is currently serving a term in state custody for other sex offenses against children.
In August 2017, the Granville County Sheriff’s Office (GCSO) in Oxford, North Carolina, and the Wake County Sheriff’s Office in Raleigh, North Carolina, received information related to the sexual abuse of an 18-year-old female (Victim 1) by MARK BASS. The sexual abuse began when Victim 1 was 7 or 8 years of age and continued until she was at least 17 years old. During the course of the investigation, agents also learned of a second victim, Victim 2, a 13 year-old autistic male, who was also sexually abused by BASS.
On January 30, 2018, Wake County Child Protective Services (WCCPS) notified the GCSO that Victim 2 reported multiple forms of sexual abuse endured at the hands of BASS. Victim 2 also substantiated that BASS took sexual photographs of Victim 1 with his cellphone, which BASS periodically showed to Victim 2.
Based on the substantiated sexual abuse involving Victims 1 and 2, a search warrant was obtained and executed at BASS’ residence on February 16, 2018. A cellphone belonging to BASS and other physical evidence was seized. Forensic investigation of the cellphone indicated that, on August 14, 2016, BASS produced at least one image of Victim 2 that constituted child pornography under the law. Evidence also proved that BASS engaged in sexual contact with Victim 2 on multiple occasions.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
The investigation of this case was conducted by Homeland Security Investigations, Granville County Sheriff’s Office, and the Wake County Sheriff’s Office.
Assistant United States Attorney Melissa Belle Kessler prosecuted the case for the government.
Conewango Man Sentenced for His Role in Debt Restructuring SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Mark Farnham, 26, of Conewango Valley, NY, who was convicted of conspiracy to commit bank fraud, was sentenced to time served (nine months) and five years supervised release by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorneys Stephanie Lamarque, Wei Xiang, and Mary Clare Kane, who handled the case, stated that between February 2016 and October 2016, the defendant worked with co-defendants Sergiy Bezrukov, Dustin Walker, and Vanessa Cardona at companies with various names such as “Corporate Restructure” and “Salamanca Payroll Services.” Farnham was a manager for Corporate Restructure, Inc., which operated out of office space in Salamanca, NY, and Buffalo, NY.
Farnham, Bezrukov, Walker, and Cardona, along with others, used a number of fraudulent companies to mail solicitations to small business owners (victims) which fraudulently informed the victims that one or more of the fraudulent companies could assist the victims with restructuring debts they had with other lenders.
From the summer of 2016 until October 27, 2016, the defendant: opened multiple bank accounts at a number of banks, including Citizens Bank, Bank of America, Northwest Savings Bank and First Niagara Bank; made daily deposits into the bank accounts opened at the aforementioned banks; made daily withdrawals from the bank accounts at the aforementioned banks; obtained a bulk mailing permit and opened post office boxes which were used to receive victims mail and to use as the return addresses on solicitation letters; and took calls from victims who were upset and had questions about their “loan restructure.”
When talking with victims over the telephone, Farnham used aliases and provided the victims with information that was not true or accurate about the status of the purported loan restructure. Farnham continued to deposit victims’ monies into the account of shell companies that never provided any services, and withdrew the deposited money from those accounts.
Bezrukov, Walker, and Cardona were all previously convicted and are awaiting sentencing.Today’s sentencing is the result of an investigation by the United States Postal Inspection Service, under the direction of Inspector-in-Charge Joseph W. Cronin of the Boston Division; the Internal Revenue Service, Criminal Investigations Division, under the direction of Acting Special Agent-in-Charge Jonathan D. Larsen, New York Field Office; and Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
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Captain of Fishing Vessel “Alaskan Girl” Sentenced for Unlawful Discharge of a Pollutant into Sumner StraitRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Brannon Finney, 32, of Bellingham, Washington, was sentenced yesterday by U.S. Magistrate Judge Matthew Scoble after having pleaded guilty to one count of unlawful discharge of a pollutant, a violation of the Clean Water Act. The Court ordered Finney to pay a fine of $8,000, pay an additional $2,000 to the National Fish and Wildlife Foundation as a community service payment; and perform 40 hours of community work service. Finney will be on probation for 18 months and is required to post a public apology.
According to court documents, Finney, as captain of the F/V Alaskan Girl, caused the crew to dump approximately 16,000 pounds of sandblast waste into Sumner Strait. Specifically, on June 15, 2017, F/V Alaskan Girl was in route from Wrangell to Petersburg, Alaska with four bags, known as super sacks or brailer bags, on board. Each bag weighed approximately 4,000 pounds and contained sandblast waste. The waste, generated from the recent re-painting of the F/V Alaskan Girl, was a mixture of the copper slag used to remove the paint from the vessel as well as approximately 15 gallons of paint chips removed in the sandblast process. The waste – totaling eight tons – had been loaded onto the vessel at the direction of Finney.
Along with Finney and two crewmembers, a cameraman was also on board the F/V Alaskan Girl, filming for a possible cable TV reality show. Video footage taken during the trip from Wrangell to Petersburg captured one of the brailer bags hanging overboard the vessel while two crewmembers on board sliced through the bag with a knife. Afterwards, black sandy waste spilled from the sliced bag into the water, while at least one of the crew audibly cheered.
Once the vessel arrived in Petersburg, video footage showed an interaction between an Alaska Wildlife Trooper and Finney. In the video, the Trooper informed Finney that he had received a complaint about the vessel leaving the shipyard in Wrangell with sandblasting waste. When he asked where it went, Finney replied, “We just dumped it.” The investigation revealed that Finney unlawfully discharged the waste into Sumner Strait with the goal of avoiding spending $1,460 to dispose of it properly.
“Maintaining the pristine waters of Alaska is important to all residents and visitors to our state, said U.S. Attorney Schroder. “The quality of our waters is essential to Alaska’s fishing fleet. Fishing is one of the most important parts of our economy, and Alaska seafood is prized worldwide because of the quality of the catch. Protecting our waters is vitally to our economy, as well as the environment.”
“Illegal discharges of pollution pose a serious threat to our oceans,” said Jeanne Proctor, Special Agent in Charge of EPA's criminal enforcement program in Alaska. “Today’s sentencing demonstrates that EPA and its partner agencies are committed to protecting the marine environment and pursuing those whose illegal acts threaten our natural resources.”
The Environmental Protection Agency, Criminal Investigation Division (EPA-CID); the Alaska Wildlife Troopers; and the Alaska Department of Law, Office of Special Prosecutions conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Jonas M. Walker.
Butler Couple Charged in $1.3 M Fraud Scheme Now Facing Tax ChargesRead the Press Release
PITTSBURGH - Two residents of Butler County, Pennsylvania, previously indicted in Pittsburgh on April 17, 2019, on charges of mail fraud, conspiracy to commit mail fraud, embezzlement from a healthcare benefit program, conspiracy to commit money laundering, money laundering, and making a false statement in a loan application, have been indicted by a federal grand jury in Pittsburgh on additional charges of conspiracy and filing false tax returns, United States Attorney Scott W. Brady announced today.
The 42-count Superseding Indictment, returned on May 22, named Stephanie J. Roskovski, 49, and her husband, Scott A. Roskovski, 50, both of Butler, PA, as defendants.
According to the Superseding Indictment, the Roskovskis, during the years 2011 through December 2017, perpetrated a fraud totaling more than $1.3 million on Butler Healthcare Providers, d/b/a Butler Memorial Hospital, where Stephanie Roskovski was employed and, for much of that time, served as the hospital’s Chief Operating Officer. During the time, Scott Roskovski was employed as a detective with the Butler County District Attorney’s Office where he conducted investigations involving fraud and other financial crimes. Counts 1 through 23 of the Superseding Indictment allege that the defendants conspired to and did defraud Butler Healthcare Providers by submitting requests to Butler Hospital for alleged business-related expenses that were used, or intended to be used, for personal expenditures. Those personal expenses included, among others, lavish family vacations, household furnishings, concert and event tickets, and the purchase of, and expenses associated with, a motocross racetrack they purchased in 2015 known as Switchback MX, LLC, located in Butler, Pennsylvania. Counts 24 through 28 charge Stephanie Roskovski with embezzling funds from a healthcare benefit program. Count 29 through 35 charge the couple with conspiring to launder the proceeds of the fraud and with engaging in monetary transactions intended, in part, to conceal their theft, as well as in monetary transactions involving fraud proceeds in excess of $10,000. Counts 36 and 37 allege that in March and July of 2018, the defendants made false statements to S&T Bank in applying for two loans totaling approximately $1.8 million.
Count 38 of the Superseding Indictment charges the couple with conspiracy to defraud the United States and to evade the payment of income taxes. Counts 39 through 42 charge them with filing false income tax returns in each of the years 2013 through 2016, in which they failed to report income from the embezzlement perpetrated on Butler Health System and falsely reported unreimbursed employee expenses and over $85,000 in losses from a purported private investigating consulting business, identified as "Private Investigative Solutions". The Superseding Indictment also includes forfeiture allegations.
The law provides for a maximum total sentence of more than 30 years in prison, a fine of $3.1 million, 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.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The U.S. Postal Inspection Service, the Internal Revenue Service, Criminal Investigation, and the Federal Bureau of Investigation conducted the investigation leading to the superseding indictment in this case.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Buffalo Man Pleads Guilty to Distributing Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that Atif Ullah, 30, of Buffalo, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to distribution of child pornography. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 20 years, and a $250,000 fine.
Special Assistant U.S. Attorney Jeremy Murray, who is handling the case, stated that on March 6, 2018, the defendant distributed a video using his cellular telephone that he knew constituted child pornography. On August 16, 2018, law enforcement officers executed a federal search warrant at the Ullah’s residence and seized two cellular telephones, each containing images of child pornography. An examination of the telephones revealed a total of 33 images of child pornography. Eight of the images were produced by the defendant between June 22 and August 16, 2018. The minor depicted in the images was seven years old at the time of the production, and was related to the defendant.
The plea is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Sentencing is scheduled for October 4, 2019, before Judge Vilardo.
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British Citizen Arrested for Conspiracy to Defraud Investors of More Than $36 MillionRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of an Indictment in Manhattan federal court charging SAVRAJ GATA-AURA, a/k/a “Sam Aura,” with wire fraud and conspiracy to commit wire fraud for engaging in a scheme to defraud victims by making material misrepresentations about the management and operations of a company called Bar Works Inc. and related entities (“Bar Works”). GATA-AURA was arrested this morning and will be presented later today in Manhattan federal court before U.S. District Judge Richard M. Berman.
In addition, U.S. Attorney Berman announced the unsealing of a guilty plea, on May 8, 2019, by RENWICK HADDOW, a/k/a “Jonathan Black,” in which he admitted to his own involvement in the fraudulent scheme related to Bar Works, as well as to making material misrepresentations and misappropriating investment funds in another company created by HADDOW called Bitcoin Store Inc. (“Bitcoin Store”). HADDOW was originally charged in June 2017 and extradited from Morocco in April 2018. HADDOW, who pled guilty to an Information charging him with wire fraud and conspiracy to commit wire fraud, is cooperating with the Government in this investigation. HADDOW’s case has been assigned to U.S. District Judge Laura Taylor Swain.
U.S. Attorney Geoffrey S. Berman stated: “Renwick Haddow, a U.K. citizen, had a long track record of financial misconduct in the U.K., so much so that British regulatory authorities imposed an eight-year ban barring Haddow from serving as director of any financial institution. Haddow then turned his sights toward the U.S., using the alias ‘Jonathan Black’ and fraudulently soliciting investments in Bar Works. Haddow and co-defendant Savraj Gata-Aura allegedly solicited funds from investors with fictitious claims about Bar Works’ management and performance. They are now being held to account for the blizzard of lies they told to get money from their unsuspecting victims.”
According to the Indictment unsealed today, the Information to which HADDOW pled, a previously filed Complaint against HADDOW, and other court documents:[1]
GATA-AURA and HADDOW are citizens of the United Kingdom who principally resided in New York from at least September 2015 through at least June 2017. Prior to moving to New York, HADDOW was sanctioned and sued by British regulators for operating a variety of investment schemes in which investors lost money. Those sanctions and related lawsuits were publicized online, using HADDOW’s real name.
From September 2015 through at least about June 2017, GATA-AURA and others partnered with HADDOW in soliciting investments in Bar Works through material misrepresentations concerning, among other things, the identity of Bar Works’ management and the financial condition of that company. Specifically, HADDOW adopted the alias “Jonathan Black” to further hide his role in Bar Works in light of the negative publicity on the internet about his regulatory history in the United Kingdom. Notwithstanding HADDOW’s control over Bar Works, HADDOW caused the Bar Works offering materials to list Black as the chief executive officer of Bar Works and claim that Black had an extensive background in finance and past success with start-up companies. HADDOW also made material misrepresentations to investors about, among other things, the operations and historical performance of both Bar Works and Bitcoin Store.
GATA-AURA spearheaded efforts to raise millions of dollars in investments into Bar Works while misrepresenting that “Jonathan Black” was the company’s CEO. GATA-AURA recruited agents to sell workspace leases in Bar Works and provided them with offering documents and other information that concealed HADDOW’s control and ownership interests in Bar Works, and affirmatively misrepresented that “Jonathan Black” ran the company. Between September 2015 and June 2017, Bar Works raised over $36 million from investors. GATA-AURA personally obtained at least $3.1 million in exchange for his participation in the scheme.
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SAVRAJ GATA-AURA, 33, has been charged with one count of wire fraud and one count of wire fraud conspiracy relating to the Bar Works scheme. Each charge carries a maximum sentence of 20 years in prison.
HADDOW, 50, pled guilty to one count each of wire fraud and wire fraud conspiracy relating to the Bar Works scheme, and one count each of wire fraud and wire fraud conspiracy relating to the Bitcoin Store scheme. Each charge carries a maximum sentence of 20 years in prison.
Mr. Berman praised the investigative work of the FBI and thanked the Securities and Exchange Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Vladislav Vainberg and Martin S. Bell are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, Information, and the referenced Complaints, and the description of those charging documents set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Belmont Resident Sentenced to 160 Months for Fentanyl Trafficking and Firearms CrimesRead the Press Release
CONCORD – Louis Gardner, 41 of Belmont, New Hampshire, was sentenced to160 months in prison for participating in a conspiracy to distribute and possess with intent to distribute fentanyl, illegally possessing firearms, and possessing a firearm in furtherance of drug trafficking, United States Attorney Scott W. Murray announced.
According to court documents and statements made in court, Gardner and another individual sold fentanyl and methamphetamine to an individual who was cooperating with the FBI on two separate occasions at locations in and around New Hampshire. On May 31, 2017, a woman arranged for Gardner and two other men to purchase fentanyl from a supplier in Lawrence, Massachusetts. The three men drove together from Belmont to Lawrence. In Lawrence, the men met with their drug supplier, purchased a quantity of fentanyl, and began to drive back to New Hampshire. On the highway near Derry, the New Hampshire State Police conducted a traffic stop and seized a firearm and a package containing approximately 111 grams of fentanyl. As a convicted felon, Gardner could not lawfully possess a firearm.
Gardner previously pleaded guilty on October 30, 2018.
“Armed drug traffickers are a menace on our highways,” said U.S. Attorney Murray. “The transportation of fentanyl into New Hampshire has had a disastrous impact on public health and safety. When drug traffickers are also armed, the danger grows exponentially. I am grateful to our law enforcement partners for stopping this defendant’s criminal conduct and protecting the safety of our community.”
“Those who distribute fentanyl, like Mr. Gardner, are endangering their customers and causing great damage to our community,” said Joseph R. Bonavolonta, Special Agent in Charge, FBI Boston Division. “The FBI will continue to work with our law enforcement partners to detect and disrupt drug traffickers like him who are contributing to the opioid crisis. Dangerous drugs like this need to be taken off our streets, and in doing so, we can help keep addiction from spreading.”
This matter was investigated by the FBI, the New Hampshire State Police, and the Laconia Police Department. The case was prosecuted by Assistant U.S. Attorney Anna Z. Krasinski.
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Bank CEO Stephen M. Calk Charged with Corruptly Soliciting A Presidential Administration Position in Exchange for Approving $16 Million in LoansRead the Press Release
Audrey Strauss, the Attorney for the United States, Acting Under Authority Conferred by 28 U.S.C. § 515, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Patricia Tarasca, the Special Agent-in-Charge of the New York Region for the Federal Deposit Insurance Corporation Office of Inspector General (“FDIC OIG”), announced today the unsealing of an indictment charging STEPHEN M. CALK with financial institution bribery for corruptly using his position as the head of a federally insured bank to issue millions of dollars in high-risk loans to a borrower in exchange for a personal benefit: assistance from the borrower in obtaining a senior position with an incoming presidential administration. CALK is expected to be presented this afternoon before U.S. Magistrate Judge Debra Freeman.
Ms. Strauss said: “As alleged, Stephen M. Calk abused the power entrusted to him as the top official of a federally insured bank by approving millions of dollars in high-risk loans in an effort to secure a personal benefit, namely an appointment as Secretary of the Army or another similarly high-level position in the incoming presidential administration. Calk’s alleged attempt to obtain such an appointment was unsuccessful, and the loans he approved were ultimately downgraded by the bank’s primary regulator. Thanks to the outstanding work of the FBI and FDIC OIG, Calk’s alleged corrupt scheme has now resulted in a federal criminal charge.”
FBI Assistant Director William F. Sweeney Jr. said: “As alleged, Calk went to great lengths to avoid banking violations in an attempt to secure a senior position in a presidential administration. He curried favor with an influential borrower, exploited his position as CEO of a bank and its holding company, and exercised control over the bank and the borrower’s loans, intentionally turning his back on the many red flags posted along the way. His attempt at petitioning for political favors was unsuccessful in more ways than one – he didn’t get the job he wanted, and he compromised the one he had.”
FDIC OIG Special Agent-in-Charge Patricia Tarasca said: “Today’s indictment charges Stephen Calk with misusing his position as Chairman and Chief Executive Officer of a bank for his own personal gain. The FDIC Office of Inspector General remains committed to investigating cases where bank officials cause multimillion-dollar losses to a financial institution and undermine its integrity. We will continue to work with our law enforcement partners to bring to justice those who commit such offenses.”
According to the allegations in the Indictment:[1]
CALK, the Bank, and the Borrower
STEPHEN M. CALK is the chairman and chief executive officer of the “Bank,” a federal savings association headquartered in Chicago, Illinois, with an office in New York, New York. The Bank is owned in its entirety by the “Holding Company,” a Chicago-based bank holding company, and CALK is the chairman, chief executive officer, and owner of approximately 67% of the Holding Company.
The “Borrower” was, at all relevant times, a lobbyist and political consultant. Beginning in or about March 2016, the Borrower held a senior role with a presidential campaign (the “Presidential Campaign”), and from June 2016 through August 2016, he served as chairman of the Presidential Campaign. After the Borrower’s formal role with the Presidential Campaign concluded in or about August 2016, the Borrower continued to be informally involved in the campaign. Beginning in or about November 2016, when the candidate for whom the Borrower had been working was elected President of the United States, the Borrower provided informal input to the presidential transition team (the “Presidential Transition Team”).
The Corrupt Scheme
Between in or about July 2016 and January 2017, CALK engaged in a corrupt scheme to exploit his position as the head of the Bank and the Holding Company in an effort to secure a valuable personal benefit for himself, namely, the Borrower’s assistance in obtaining for CALK a senior position in the presidential administration. During this time period, the Borrower sought millions of dollars in loans from the Bank. CALK understood that the Borrower urgently needed these loans in order to terminate or avoid foreclosure proceedings on multiple properties owned by the Borrower and the Borrower’s family. Further, CALK believed that the Borrower could use his influence with the Presidential Transition Team to assist CALK in obtaining a senior administration position.
CALK thus sought to leverage his control over the Bank and the loans sought by the Borrower to his personal advantage. Specifically, CALK offered to, and did, cause the Bank and Holding Company to extend $16 million in loans to the Borrower in exchange for the Borrower’s requested assistance in obtaining a high-level position in the presidential administration. For example, and while the Borrower’s loans were pending approval, CALK provided the Borrower with a ranked list of the governmental positions he desired, which started with Secretary of the Treasury, and was followed by Deputy Secretary of the Treasury, Secretary of Commerce, and Secretary of Defense, as well as 19 ambassadorships similarly ranked and starting with the United Kingdom, France, Germany, and Italy.
In approving these loans to the Borrower, CALK was aware of significant red flags regarding the Borrower’s ability to repay the loans, such as his history of defaulting on prior loans. Moreover, given the size of the loans, the Borrower’s debt became the single largest lending relationship at the Bank. In order to enable the Bank to issue these loans without violating the Bank’s legal limit on loans to a single borrower, CALK authorized a maneuver never before performed by the Bank, in which the Holding Company – which CALK also controlled – acquired a portion of the loans from the Bank.
During the same time period, the Borrower provided CALK with valuable personal benefits. First, in or about the summer of 2016, during the Presidential Campaign – and just days after CALK and the rest of the Bank’s credit committee conditionally approved a proposed $9.5 million loan to the Borrower – the Borrower appointed CALK to a prestigious economic advisory committee affiliated with the campaign. And second, in or about late November and early December 2016 – after the presidential candidate had been elected president, after the Borrower’s first loan from the Bank had been issued, and while a second set of loans worth more than $6 million sought by the Borrower was pending approval by the Bank – the Borrower used his influence with the Presidential Transition Team to assist Calk, recommending CALK for an administration position. Due to the Borrower’s efforts, CALK was formally interviewed for the position of Under Secretary of the Army in or about early January 2017 at the Presidential Transition Team’s principal offices in New York, New York. CALK was not ultimately hired.
As a result of its independent review of the Bank’s loans to the Borrower, in or around July 2017, the bank’s primary regulator, the Office of the Comptroller of the Currency (“OCC”), downgraded the credit quality of those loans to “substandard,” concluding that the Bank’s classification of them as satisfactory had been inappropriate. Moreover, to conceal the unlawful nature of his scheme, CALK made false and misleading statements to the OCC regarding the loans to the Borrower. Among other things, CALK falsely stated to the OCC regulators that he had never desired a position in the presidential administration.
In or about October 2017, the Borrower was charged with federal crimes and the U.S. Government sought the forfeiture of the Borrower’s interests in properties securing the loans he had received from the Bank. The Borrower subsequently ceased making loan payments to the Bank, and the Bank and the Holding Company foreclosed on the cash collateral securing the loans and have currently written off the remaining principal balance – totaling over $12 million – as a loss.
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STEPHEM M. CALK, 54, is charged with one count of financial institution bribery, which carries a maximum sentence of 30 years in prison.
The statutory maximum penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Ms. Strauss praised the outstanding investigative work of the FBI and FDIC OIG.
This case is being handled by the Office’s Public Corruption Unit and Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorneys Paul M. Monteleoni, Douglas S. Zolkind, and Benet J. Kearney are in charge of the prosecution.
The allegations contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Attorney Convicted of Defrauding Elderly Woman Sentenced to Almost 4 Years in PrisonRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that John Kelvin Conner, 63, of Elkins Park, Pennsylvania, was sentenced today to nearly four years (46 months) imprisonment, three years supervised release, ordered to forfeit $14,923 and pay an additional $14,923 in restitution by United States District Judge Gerald M. McHugh. Conner was convicted in February 2019 by a jury of 19 counts of wire fraud and one count of making a false statement to federal agents. The defendant, an attorney and former federal agent, devised and participated in a scheme to defraud an elderly woman out of more than $95,000 so that he could gamble with her money at casinos.
In July 2016, the 85-years old victim signed a Power of Attorney (“POA”) agreement with the defendant that granted him authority to manage the victim’s finances and pay her bills. At the time, the victim lived at home, but required the assistance of multiple caregivers, and her only source of income was a monthly pension. The evidence presented at trial showed that Conner used the POA agreement to liquidate a life annuity policy that the victim owned, deposit the proceeds into one of her bank accounts, and siphon nearly all of that money for his personal use at casinos.
From August 16, 2016 until April 22, 2017, the defendant used an ATM card to make at least 176 unauthorized withdrawals at Pennsylvania and New Jersey casinos totaling at least $95,688 from the victim’s bank account. During this time, the defendant neglected to pay the victim’s bills, which led to her temporarily losing basic utilities like heat, hot water, electricity, and telephone services. Additionally, many checks paid to the home caregivers were returned because of insufficient balances in the victim’s checking account. Ultimately, Conner left the elderly victim with just $15.07 in her bank accounts before he was caught. When questioned by FBI agents about the ATM withdrawals, the defendant falsely told the agents a ridiculous story that the victim had authorized him to use her money to gamble at casinos.
“The defendant’s conduct in this case was egregious,” said U.S. Attorney McSwain. “Stealing an elderly woman’s life-savings, gambling it away at casinos, and then lying about it to federal agents – all as an officer of the court, an attorney who took an oath to act in the best interest of his clients and with a high moral standard. This is the very definition of someone with power preying upon the most vulnerable. I am grateful that the Judge held him accountable for his despicable actions.”
“Ripping off an elderly and vulnerable woman, gambling away her money even as her utilities were being shut off — the callousness of John Conner's crimes is staggering,” said Michael T. Harpster, Special Agent in Charge of the FBI's Philadelphia Division. “While we can't undo all of the stress and damage caused, the FBI takes great satisfaction in bringing crooks like Connor to justice and preventing them from doing any more harm. Elder fraud and abuse are utterly unacceptable. If you're being victimized or know of someone who is, please reach out to the FBI. As always, tipsters can remain anonymous.”
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Mark B. Dubnoff.
Amusement Park Employee Charged with Attempting to Entice A Child for SexRead the Press Release
Ocala, Florida – United States Attorney Maria Chapa Lopez announces the arrest and filing of a criminal complaint charging Frederick M. Pohl, Jr. (40, Clermont) with transferring obscene materials to a minor and attempting to entice a minor. If convicted, Pohl faces a maximum penalty of life in federal prison. He has been detained since his arrest on May 21, 2019.
According to the complaint, Pohl engaged in a series of online chat communications to arrange a sexual encounter with an 8-year-old girl. Pohl believed he was chatting with the child and her father, but he was actually communicating with an undercover federal agent. Pohl sent explicit photos of himself and arranged to meet with the child at an Orlando hotel. When Pohl arrived at the hotel, he was arrested. Pohl was found to be in possession of condoms and a child-sized pink dress.
A criminal complaint is merely an allegation that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Homeland Security Investigations. It will be prosecuted by Assistant United States Attorney Michael P. Felicetta. Anyone with additional information should contact Homeland Security Investigations at 1-866-DHS-2ICE (347-2423).
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 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 locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Aberdeen Man Pleads Guilty to Methamphetamine TraffickingRead the Press Release
Jackson, Miss. – Terrence Gunn, 31, of Aberdeen, Mississippi, pled guilty today before U.S. District Judge Henry T. Wingate to possession with intent to distribute 50 grams or more of methamphetamine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Brad L. Byerley with the Drug Enforcement Administration (DEA).
During an investigation of drug trafficking in central Mississippi, agents discovered that Gunn and another individual had arranged to meet in order to conduct a drug transaction. On June 2, 2018, agents surveilled the meeting between Gunn and that individual. After the meeting, Gunn headed north on Interstate 55. A Madison County Sheriff’s Office deputy attempted to stop Gunn but Gunn fled. Agents observed Gunn throw items from the vehicle as he was fleeing law enforcement officers. Ultimately, law enforcement officers were able to stop Gunn, where they recovered approximately 400 grams of methamphetamine, 40 grams of heroin and some marijuana.
Gunn will be sentenced by Judge Wingate on August 23, 2019, at 9:30 a.m. and he faces a maximum penalty of life in prison and a $10,000,000 fine.
The case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol Tobacco Firearms and Explosives, the U.S. Marshals Service, Hinds County Sheriff’s Office, Jones County Sheriff’s Department, Richland Police Department, Pearl Police Department, Madison County Sheriff’s Office, and the Jackson Police Department. It is being prosecuted by Assistant United States Attorney Chris Wansley.
22 May 2019
Wooster man with domestic violence conviction indicted for firearms violations, including having two illegal components used to turn firearms into fully automatic machine gunsRead the Press Release
A federal grand jury returned a three-count indictment charging a Wooster man with firearms violations, including having two illegal components used to turn firearms into fully automatic machine guns.
Kenneth L. McKinley, 31, was indicted on one count each of illegal possession of machine guns, being a prohibited person in possession of ammunition, and receipt and possession of unregistered firearms.
The indictment alleges that McKinley possessed on March 12, 2019 a black Glock-type, select-fire conversion device, with no serial number or manufacturer markings, and a silver Glock-type, select-fire conversion device, with no serial number or manufacturer markings, both and each designed and intended solely and exclusively, for use in converting a weapon into a machinegun.
McKinley was prohibited from having firearms or ammunition because of a misdemeanor conviction for domestic violence in Wayne County Municipal Court, but possessed 50 rounds of Winchester brand, .22 caliber ammunition, according to the indictment.
The indictment alleges McKinley knowingly received and possessed two firearms, those being, a black Glock-type, select-fire conversion device, with no serial number or manufacturer markings, and a silver Glock-type, select-fire conversion device, with no serial number or manufacturer markings, both and each designed and intended solely and exclusively, for use in converting a weapon into a machinegun, not registered to him in the National Firearms Registration and Transfer Record.
“In addition to the fact that a convicted domestic abuser is not allowed to have firearms or ammunition, these specific parts are illegal and put the public at risk,” U.S. Attorney Justin Herdman said. “We will work with our law enforcement partners to prosecute all firearms violations, and especially to stop the flow of these parts into the country.”
“The possession of illegal firearms is a violation of federal law and a threat to public safety,” said Jonathan T. McPherson, Special Agent in Charge of ATF’s Columbus Field Division. “ATF will continue to work closely with our law enforcement partners to protect our communities.”
“Keeping weapons out of the wrong hands is critical to keeping our communities safe and to prevent gun violence, we are committed to remaining vigilant to ensure firearms and any firearm parts are acquired while abiding federal laws,” said HSI Acting Special Agent in Charge Angie Salazar.
This case is part of Project Safe Neighborhoods, 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 was reinvigorated in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the Department of Homeland Security, Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant United States Attorney Damoun Delaviz.
Woman Pleads Guilty to Disaster Fraud Related to Hurricane MatthewRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces today that SHEILA RUFFIN, 50, of Rocky Mount, pled guilty to 15 counts of Disaster Fraud related to the Hurricane Matthew recovery effort conducted by the Federal Emergency Management Agency (FEMA).
RUFFIN made false statements and representations and submitted fraudulent documentation FEMA in connection with applications for federal disaster assistance following Hurricane Matthew. From January 31, 2017 to January 29, 2018, RUFFIN was awarded more than $11,000.00 in rental assistance to which she was not entitled.
Investigation of this case was conducted by the U.S. Department of Homeland Security, Office of Inspector General. Assistant United States Attorney Toby Lathan is prosecuting the case for the government.
Members of the public who suspect fraud involving disaster relief efforts, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. The telephone line is staffed by live operators 24 hours a day, seven days a week. You can also fax information to the Center at (225) 334-4707, or email it to [email protected]. Learn more about the National Center for Disaster Fraud at www.justice.gov/disaster-fraud and watch a public service announcement here. Tips for the public on how to avoid being victims of fraud can be found at https://www.justice.gov/opa/pr/tips-avoiding-fraudulent-charitable-contribution-schemes.
Winter Park Man Pleads Guilty to Distribution of Child Pornography and Enticement of A Minor to Produce Child PornographyRead the Press Release
Orlando, Florida – Eric Bales (30, Winter Park) has pleaded guilty to distributing child pornography and online enticement of a child to produce child pornography. He faces a minimum mandatory penalty of 10 years, and up to life, in federal prison. Bales has been in custody since his arrest on November 15, 2018.
According to the plea agreement, beginning in August 2018, Bales obtained and distributed images and videos of child pornography over internet peer-to-peer applications. Bales also elicited the production of pornographic images from a 16-year-old girl, and shared those images via messaging apps. In 2014, prior to committing these offenses, Bales was convicted for willful child abuse in Florida state court.
This case was investigated by Homeland Security Investigations. It is being prosecuted by Special Assistant United States Attorney Brandon Bayliss, on assignment from the Office of Principal Legal Advisor, U.S. Immigration and Customs Enforcement.
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 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 locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
West Virginia Man Charged with Attempted Coercion of a Minor and Travel for SexRead the Press Release
PITTSBURGH, PA – A former resident of West Virginia, has been indicted by a federal grand jury in Pittsburgh on charges of Attempted Coercion and Enticement of a Minor to Engage in Illegal Sexual Activity and Travel with Intent to Engage in Illicit Sexual Conduct, United States Attorney Scott W. Brady announced today.
The two-count Indictment named Jason W. Lynn, age 40, as the sole defendant.
According to Indictment, from on or about April 4, 2019 until on or about May 3, 2019, Lynn used a facility and means of interstate commerce, specifically the Internet and a cellular telephone network, to knowingly attempt to persuade, induce, entice and coerce a minor to engage in sexual activity. The Indictment further alleges that on or about May 3, 2019, Lynn traveled with the intent to engage in illicit sexual contact with a minor.
The law provides for a minimum term of imprisonment of 10 years up to a maximum total sentence of life in prison, a fine of $250,000, 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.
Assistant United States Attorneys Shanicka L. Kennedy and Heidi M. Grogan are prosecuting this case on behalf of the government.
The FBI conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Walnut Grove Man Sentenced to over Four Years in Federal Prison for Illegally Possessing a GunRead the Press Release
Jackson, Miss. – Matthew J. Underwood, 45, of Walnut Grove, was sentenced today by U.S. District Judge Carlton Reeves to 55 months in federal prison, followed by three years of supervised release, for being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Underwood was also ordered to pay a $1,000.00 fine.
On August 7, 2018, officers were conducting a residence check of Underwood’s home when they discovered a loaded 12 gauge shotgun and a box of 12 gauge shotgun shells. Underwood has previous convictions in the Southern District of Mississippi for assaulting, resisting, or impeding an officer by use of a firearm and for being a felon in possession of a firearm. Underwood also has a previous conviction in Scott County for possession of a firearm by a convicted felon. He was on parole for the Scott County conviction when the instant offense occurred.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Sebastopol Police Department, the Mississippi Department of Corrections, and the Leake County Sheriff’s Department. It was prosecuted by Assistant United States Attorney Kimberly T. Purdie.
Virgin Islands Barber Charged with Trafficking in Stolen Cell PhonesRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands announced today that Raphi Joseph has been arrested on a complaint charging him with Transportation of Stolen Goods.
According to court documents unsealed today, the United States Postal Inspection Service was previously alerted that an unknown person had logged into a victim’s cell-phone account without the victim’s permission. The perpetrator then ordered an iPhone to be mailed to the Virgin Islands. Raphi Joseph is alleged to have inquired about the package at the post office in St. Thomas, VI, and further investigation identified more than 20 additional fraudulently-obtained cell phones being sent to Joseph in the U.S. Virgin Islands in various packages.
This case is being investigated by the United States Postal Inspection Service and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Nathan Brooks.
United States Attorney Shappert reminds the public that a complaint is merely a formal charging document, and it is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty beyond a reasonable doubt in a court of law.
Upshur County man admits to firearms chargeRead the Press Release
ELKINS, WEST VIRGINIA – Floyd Edward Roby, of Buckhannon, West Virginia, has admitted to a firearms charge, United States Attorney Bill Powell announced.
Roby, age 41, pled guilty to one count of “Unlawful Possession of a Firearm.” Roby, having previously been convicted of a felony, admitted to having a 9mm pistol in January 2019 in Upshur County.
Roby faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Upshur County Sheriff’s Office investigated.
U.S. Magistrate Judge Michael John Aloi presided.
U.S. Attorney's Officer Joins Charlotte Habitat for Home Presentation and Dedication Event, Following Successful Transfer Through Operation GoodwillRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Andrew Murray participated in a presentation and dedication event this afternoon, hosted by Charlotte Habitat, during which a selected homeowner was formally presented with a key to a new home constructed by community and law enforcement volunteers. The property onto which the new home was built was previously forfeited to the United States, as part of a 2014 federal criminal prosecution involving drug trafficking and money laundering offenses.
In 2018, the property, which is located in the Hidden Valley community, was transferred to Charlotte Habitat through Operation Goodwill, a federal program designed to assist neighborhood communities impacted by drug trafficking and other violent criminal activity via transfers of federally forfeited properties to state or local governments, designated contractors or transferees, in support of drug abuse treatment, drug and crime prevention and education, housing, job skills, or other community-based public health and safety programs. Charlotte Habitat demolished the old structure and built a new home for a family selected by the organization. This is the second time in the Western District of North Carolina that a federally forfeited property has been transferred to a community partner through the Operation Goodwill program.
In making today’s announcement U.S. Attorney Murray said, “This property has been transformed from a drug-infested epicenter of criminal activity to a brand new home built for a deserving family. I want to thank all of our law enforcement partners for working with my Office and Charlotte Habitat to complete this project. The new home is a symbol of what we can accomplish when we all work together to support our communities and bring about positive change.”
“For Charlotte Habitat, the house in the Hidden Valley community represents a transition from despair to promise. This is a story of redemption,” said Laura Belcher, Charlotte Habitat President and CEO. “A property that once served as a hub of destruction for so many lives, is now a haven of hope for a hardworking young family. We could not be more pleased to have had the privilege of working with the Department of Justice and the Charlotte-Mecklenburg Police Department to achieve this end.”
In addition to handling the criminal case, forfeiture action, and administrative matters related to the property, prosecutors and staff with the U.S. Attorney’s Office, deputy U.S. Marshals, and Charlotte-Mecklenburg police officers volunteered at the construction site to help build the new home, alongside Habitat community volunteers. Construction was completed in early May, and the key to the property was formally presented to the selected family at today’s event.
Operation Goodwill was established in 1997 and revised in 2010 to streamline the transfer process. Any designated non-profit organization can apply to participate in the program. To participate, interested organizations are required to enter into a Memorandum of Understanding (MOU) with the Department of Justice. The MOU outlines the specific requirements for the property transfer and provides certain obligations the selected organization must fulfil for a period of five years. Final approval for the property transfer must be granted by the Attorney General of the United States.
U.S. Attorney's Office Recognizes Older Americans MonthRead the Press Release
WASHINGTON – The United States Attorney’s Office for the District of Columbia and the YMCA of Metropolitan Washington will host two Senior Awareness Events featuring fitness workshops, exercise classes and public safety seminars on May 23, 2019, and May 28, 2019, from 9:00 a.m. to 12:00 p.m.to recognize Older Americans Month.
These events will highlight the importance of exercise and lifestyle changes and encourage seniors to be active. Valuable information on fitness, drug prevention, financial fraud, and healthy eating will be provided. Seniors will also have the opportunity to participate in several fitness workshops led by YMCA Fit & Well instructors and safety seminars hosted by the U.S. Attorney’s Office for the District of Columbia.
The Administration for Community Living (ACL) was created by the U.S. Department of Health and Human Services (HHS) in 2012 around the fundamental principle that older adults and people of all ages with disabilities should be able to live where they choose, with the people they choose, and with the ability to participate fully in their communities. ACL brings together the efforts and achievements of the Administration on Aging (AoA), the Administration on Intellectual and Developmental Disabilities (AIDD), and the HHS Office on Disability to serve as the Federal agency responsible for increasing access to community supports, while focusing attention and resources on the unique needs of older Americans and people with disabilities across the lifespan.
ACL leads our nation’s observance of Older Americans Month every May. This year’s theme, Connect, Create, Contribute, encourages older adults and their communities to connect with friends, family, and services that support participation; create by engaging in activities that promote learning, health, and personal enrichment; and contribute time, talent, and life experience to benefit others. “May is a time for us to celebrate the wonderful contributions given by so many older Washingtonians,” said U.S. Attorney Jessie K. Liu. “We recognize that older adults play a key role in the vitality of our neighborhoods, networks, and lives and we hope that these types of events encourage them to take advantage of resources and social programs available throughout their communities.”
The May 23, 2019, event will be at the Hattie Holmes Wellness Center located at 324 Kennedy Street, N.W., Washington, D.C. 20011. The event on May 28, 2019, will be at the Barry Farms Recreation Center located at 1230 Sumner Road, S.E., Washington, D.C. 20020. There will be a continental breakfast, guest speakers, and giveaways. Both events are free and open to all seniors.
These events are part of the Office’s wider efforts to combat crimes against seniors. In 2018, the U.S. Attorney’s Office for the District of Columbia launched an Elder Abuse and Financial Exploitation Initiative to expand its response to criminal and civil violations targeting older adults. The initiative has enabled the U.S. Attorney’s Office to further develop and coordinate its prosecution of these cases and enhance its overall support of older victims. The team consists of experienced prosecutors and victim advocates from across the Office, to include the Superior Court, Criminal, and Civil Divisions as well as the Victim Witness Assistance Unit.
U.S. Attorney Announces Indictment of Michael Avenatti for Aggravated Identity Theft, Engaging in A Scheme to Defraud A Former ClientRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced the indictment today of MICHAEL AVENATTI on fraud and aggravated identity theft charges. As alleged, AVENATTI used misrepresentations and a fraudulent document purporting to bear his client’s name and signature to convince his client’s literary agent to divert money owed to AVENATTI’s client to an account controlled by AVENATTI. AVENATTI then spent the money principally for his own personal and business purposes. The fraud and aggravated identity theft case is assigned to U.S. District Judge Deborah Batts of the Southern District of New York.
AVENATTI was separately indicted today on extortion charges, which were the subject of a previous Complaint and arrest of AVENATTI, relating to his alleged attempt to extract more than $20 million in payments from Nike, Inc., by threatening to use his ability to garner publicity to inflict substantial financial and reputational harm on the company if his demands were not met. That case is assigned to U.S. District Judge Paul Gardephe of the Southern District of New York.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Michael Avenatti abused and violated the core duty of an attorney – the duty to his client. As alleged, he used his position of trust to steal an advance on the client’s book deal. As alleged, he blatantly lied to and stole from his client to maintain his extravagant lifestyle, including to pay for, among other things, a monthly car payment on a Ferrari. Far from zealously representing his client, Avenatti, as alleged, instead engaged in outright deception and theft, victimizing rather than advocating for his client.”
According to the allegations in the Indictment unsealed today[1]:
From August 2018 through February 2019, AVENATTI defrauded a client (“Victim-1”) by diverting money owed to Victim-1 to AVENATTI’s control and use. After assisting Victim-1 in securing a book contract, AVENATTI allegedly stole a significant portion of Victim-1’s advance on that contract. He did so by, among other things, sending a fraudulent and unauthorized letter purporting to contain Victim-1’s signature to Victim-1’s literary agent, which instructed the agent to send payments not to Victim-1 but to a bank account controlled by AVENATTI. As alleged, Victim-1 had not signed or authorized the letter, and did not even know of its existence.
Specifically, prior to Victim-1’s literary agent wiring the second of four installment payments due to Victim-1 as part of the book advance, AVENATTI sent a letter to Victim-1’s literary agent purportedly signed by Victim-1 that instructed the literary agent to send all future payments to a client trust account in Victim-1’s name and controlled by AVENATTI. The literary agent then wired $148,750 to the account, which AVENATTI promptly began spending for his own purposes, including on airfare, hotels, car services, restaurants and meal delivery, online retailers, payroll for his law firm and another business he owned, and insurance. When Victim-1 began inquiring of AVENATTI as to why Victim-1 had not received the second installment, AVENATTI lied to Victim-1, telling Victim-1 that he was still attempting to obtain the payment from Victim-1’s publisher. Approximately one month after diverting the payment, AVENATTI used funds recently received from another source to pay $148,750 to Victim-1, so that Victim-1 would not realize that AVENATTI had previously taken and used Victim-1’s money.
Approximately one week later, pursuant to AVENATTI’s earlier fraudulent instructions, the literary agent sent another payment of $148,750 of Victim-1’s book advance to the client account controlled by AVENATTI. AVENATTI promptly began spending the money for his own purposes, including to make payments to individuals with whom AVENATTI had a personal relationship, to make a monthly lease payment on a luxury automobile, and to pay for airfare, dry cleaning, hotels, restaurants and meals, payroll, and insurance costs. Moreover, to conceal his scheme, and despite repeated requests to AVENATTI, as Victim-1’s lawyer, for assistance in obtaining the book payment that Victim-1 believed was missing, AVENATTI led Victim-1 to believe that Victim-1’s publisher was refusing to make the payment to the literary agent, when, as AVENATTI knew, the publisher had made the payment to the literary agent, who had then sent the money to AVENATTI pursuant to AVENATTI’s fraudulent instructions.
* * *
AVENATTI, 48, of Los Angeles, California, is charged in the fraud and aggravated identity theft indictment with one count of wire fraud, which carries a maximum penalty of 20 years in prison, and one count of aggravated identity theft, which carries a mandatory term of imprisonment of two years in addition to the sentence imposed for the wire fraud charge.
AVENATTI is charged in the extortion indictment with one count of conspiracy to transmit interstate communications with intent to extort, which carries a maximum penalty of five years in prison, one count of conspiracy to commit extortion, which carries a maximum penalty of 20 years in prison, one count of transmission of interstate communications with intent to extort, which carries a maximum penalty of two years in prison, and one count of extortion, which carries a maximum penalty of 20 years in prison.
The maximum potential sentences in both cases are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Berman praised the work of the FBI and the Special Agents of the United States Attorney’s Office for the Southern District of New York, and noted that the investigation is ongoing.
The cases are being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Matthew Podolsky, Robert L. Boone, and Robert B. Sobelman are in charge of the prosecutions.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Two Men Found Guilty of March 2018 Armed Credit Union RobberyRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that two Anchorage men were found guilty on all counts, in connection with the March 2018 robbery of the Credit Union One branch located at 3525 Eureka Street in Anchorage.
John Pierce, 30, and Michael Wayne Moore, 46, both of Anchorage, were found guilty yesterday after a seven-day jury trial. The jury found Pierce and Moore guilty of conspiracy to commit credit union robbery, armed robbery of a credit union, and brandishing a firearm during and in relation to and in furtherance of a credit union robbery. As a result of their convictions, Pierce and Moore face a maximum penalty of up to 25 years in federal prison, along with a consecutive seven years for brandishing a firearm in furtherance of a credit union robbery.
According to evidence presented at trial, on March 13, 2018, Pierce entered the Credit Union One, armed with a handgun, and was wearing a light colored mask, dark pants, dark gloves, a camouflage coat, and red shoes. Pierce was brandishing a handgun with a laser sight attached and carrying a black gym bag. As he was brandishing the gun, he demanded and obtained approximately $15,000 in cash from a number of tellers. Pierce then ran west bound from the credit union and then got into a red sedan driven by Moore, who was waiting in a nearby parking lot.
Moore was almost immediately identified as the get-away driver when APD officers working with FBI special agents canvassed the scene and found surveillance footage of the getaway vehicle, driver, and passenger. The surveillance footage revealed a partial license plate on the get-away vehicle, and that it was an older Chevrolet Lumina. When Moore was interviewed, he denied knowledge of the robbery, but admitted that he had been in the same area as the bank robbery, but stated that it was because he was transporting narcotics – not robbing a bank. During the course of the interview with Moore, investigators learned that he has three prior bank robbery convictions in the District of Alaska.
A search of the vehicle revealed evidence associated with the credit union robbery, including the mask worn by Pierce, who was later identified through the use of cell phone location analysis and other investigative techniques.
The Federal Bureau of Investigation (FBI) and the Anchorage Police Department (APD), as part of FBI’s Safe Streets Task Force, conducted the investigation leading to the successful prosecution of this case. The FBI’s Cellular Analysis Survey Team (CAST) also provided substantial assistance. This case is being prosecuted by Assistant U.S. Attorneys Adam Alexander and Karen Vandergaw of the District of Alaska, and Trial Attorney C. Alden Pelker of the Computer Crime and Intellectual Property Section of the Justice Department’s Criminal Division.