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20 May 2019
Louisiana Couple Pleads Guilty to Criminal Civil Rights Charges for Abusing Woman with DisabilitiesRead the Press Release
WASHINGTON – Raylaine Knope, 42, and Terry J. Knope II, 45, pleaded guilty today in the Eastern District of Louisiana to criminal civil rights charges arising from their abuse of an adult woman with cognitive disabilities. Both defendants pleaded guilty to one count of conspiring to obtain forced, unpaid household labor and services from the victim, who is identified only as “D.P.” Raylaine Knope also pleaded guilty to one count of forced labor and one count of misprision of a felony. Terry J. Knope II, also pleaded guilty to one count of violating D.P.’s federal Fair Housing Act rights, one count of a hate crime, and one count of misprision of a felony.
At the plea hearing, the defendants, who were married at the time of the offense, admitted that, between Aug. 13, 2015, and June 30, 2016, in Amite, Louisiana, they conspired with each other and with other members of their family to obtain D.P.’s uncompensated household labor and services through a number of means, including by force, threats of force, and physical restraint. Both defendants admitted that they forced D.P. to live in a locked backyard cage and to perform housework and yard work in exchange for food and water. The defendants admitted that they and their co-conspirators subjected D.P. to routine physical abuse, threats, and verbal and psychological abuse designed to ensure her continued compliance with the family’s orders. As examples of this abuse, the defendants admitted that Raylaine Knope once forced D.P. to eat D.P.’s deceased mother’s ashes, and Terry J. Knope II, intentionally burned D.P. with a cigarette lighter while another family member held D.P. in place so she could not escape. Raylaine Knope also admitted that she used this overarching abuse to obtain D.P.’s forced labor, and that she helped Terry J. Knope II, steal D.P.’s monthly federal disability benefits. Terry Knope further admitted that, because of D.P.’s disability, he forced D.P. to live in the locked backyard cage and shot her with a B.B. gun at close range, and that he also helped others produce methamphetamine on his property.
“The Knopes’ conspired to brutally coerce a vulnerable victim with disabilities to work long hours in despicable conditions with no monetary compensation,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Department of Justice continues to combat human trafficking by forced labor and today’s guilty plea reflects our commitment to seeking justice for these vulnerable victims.”
“Today's guilty pleas highlight that the U.S. Attorney's Office will continue to work with the FBI and local law enforcement partners to pursue human traffickers and to seek justice on behalf of vulnerable victims," said U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana.
“The defendants’ actions were heinous, despicable, and in-human. As a disabled person, the victim depended on her family to care for her but instead, they abused and mistreated someone who was unable to defend themselves,” said Special Agent in Charge Eric J. Rommal for the FBI New Orleans Field Office. “I am confident the courts will show them the proper sentence they deserve however, I am certain the victim will never out live these horrific memories."
Both defendants will be sentenced on Aug. 22 and face a maximum sentence of 28 years in prison.
This case was investigated by the FBI’s Field Office in New Orleans, Louisiana, the Tangipahoa Parish Sheriff’s Office and the Tangipahoa District Attorney’s Office. The case is being prosecuted by Trial Attorneys Risa Berkower and Nicholas Reddick of the Department of Justice’s Civil Rights Division, Assistant United States Attorney Julia Evans, of the U.S. Attorney’s Office for the Eastern District of Louisiana, and by the Tangipahoa Parish District Attorney’s Office.
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Local Rapper Found Guilty of Sex Trafficking of a MinorRead the Press Release
HOUSTON – A federal jury has convicted a 27-year-old Houston resident and member of The Sauce Factory for conspiracy and sex trafficking, announced U.S. Attorney Ryan K. Patrick. The jury deliberated for less than eight hours before convicting Jaimian Sims after five days of trial.
At trial, the jury heard that Sims trafficked both adult and minor females.
In one instance, Sims had directed a co-defendant - Tabbetha Mangis, 22, of La Grange - to find another co-defendant - Gary Shawn Haynes Jr. - 23, of Houston - to find Haynes a girl for prostitution. The victim, only 17 years of age, was picked up from her residence and transported to a 5,000 square foot residence in Northwest Houston, known as “The Mansion.”
After a brief stay there, the jury heard that the minor was taken to the Express Inn where she was given an identification card in order to rent a room. Sims had instructed an adult victim to provide the card to the minor. He had also told that adult to take photos of the minor female victim and post ads for her which was used to solicit customers who would pay for sex.
The jury heard testimony from the adult victim who described her fear of Sims because he always carried a gun and he had assaulted some of the other women who engaged in commercial sex on his behalf.
Testimony also revealed the minor victim wanted to be “arrested” because she was afraid the perpetrators would think she was speaking to law enforcement on her own. This dovetailed with the government’s expert testimony on victimology and the pimp/prostitution subculture amongst those involved in that world as “the game.” The expert described for the jury the meaning of several terms associated with and used by those within this subculture to include victims and defendants.
The jury also saw and heard three rap videos featuring Sims which contained many of the terms people use in the game.
The defense attempted to convince the jury that the women were not victims and engaged in the sex acts willingly nor did he use force, fraud 0r coercion to make them do so. They were not convinced and found him guilty of conspiracy to commit sex trafficking of a minor and sex trafficking of a minor.
Mangis and Haynes previously pleaded guilty and are awaiting sentencing.
U.S. District Judge David Hittner presided over the trial and set sentencing for Aug. 14, 2019. At that time, Sims faces a minimum of 10 years and up to life in federal prison and a possible $250,000 maximum fine.
He will remain in custody pending that hearing.
The Harris County Constable’s Office Precinct 4 and FBI conducted the investigation with the assistance of the Harris County District Attorney’s Office as part of the Human Trafficking Rescue Alliance (HTRA).
Established in 2004, the United States Attorney’s office in Houston formed the HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as a national model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.
Assistant U.S. Attorneys Sherri Zack and Kimberly Leo are prosecuting the case.
Lewiston Man Sentenced for Bank RobberyRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Keith Phillips, 58, of Lewiston, Maine, was sentenced in U.S. District Court on a charge of bank robbery. Senior United States District Judge D. Brock Hornby sentenced Phillips to 70 months in federal prison to be followed by three years of supervised release. The court also ruled that Phillips will be ordered to pay restitution to the victim bank. Phillips pleaded guilty to the charge on December 26, 2018.
According to court records, on June 6, 2018, Phillips entered Androscoggin Bank in Lewiston, approached a teller, passed a note that contained a demand for money and a threat of a gun, and absconded with $2,000.
The case was investigated by the Lewiston Police Department; the FBI; the Southern Maine Gang Task Force, which is comprised of agents and officers from the FBI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Portland, South Portland, and Lewiston Police Departments; and the Central Maine Violent Crime Task Force.
Last Defendant in Large-Scale Narcotic Distribution Conspiracy Sentenced to 30 Years in PrisonRead the Press Release
Roberto Omar Vera, 53, of Corpus Christi - the last of 23 defendants in a large-scale narcotic distribution conspiracy - was sentenced to 30 years in federal prison on May 16 by U.S. District Judge Jane J. Boyle.
Vera was apprehended after he engaged in a lengthy high-speed chase in Hunt County, resulting in speeds of up to 100 miles per hour, and Vera firing a gun at law enforcement multiple times. After an hour and half standoff, Vera was taken into custody along with the firearms and illegal narcotics that were in his possession.
The defendants in this case were found responsible for distributing more than 72 kilograms of methamphetamine, along with heroin and other illegal drugs to the Northern Dallas area. Combined, they were responsible for 142 prior criminal convictions, with 52 of them being drug related and 6 being violent offenses. They received a total of over 245 years in federal prison, with sentences ranging from 33 to 360 months.
- Roberto Vera – 360 months
- Elizabeth Causey-Eck – 240 months
- Daniel Moss – 215 months
- John Owen – 210 months
- Roberto Munoz - 190 months
- Simon Trevino – 188 months
- Rodney Broach – 188 months
- Larry Lincks – 188 months
- Arthur Currie – 168 months
- Clisty Pratt – 130 months
- Brandi Turcola – 100 months
- Angela Burkham – 87 months
- Illona King – 85 months
- Kneely Abadie – 75 months
- Paul Shreves – 71 months
- Lauren Crites – 70 months
- Kameron Vera – 60 months
- Mark Craven – 60 months
- Stephanie Aldava – 57 months
- Charley Crossland – 57 months
- Chelsea Johnson – 57 months
- Caitlyn Johnson – 51 months
- Jorge Morales – 33 months
The investigation was led by the Texas Department of Public Safety and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney P.J. Meitl, Northern District of Texas, was in charge of these prosecutions.
LPR Heads to Prison for Hiding Illegal Aliens in Furniture in Attempt to Circumvent CheckpointRead the Press Release
CORPUS CHRISTI, Texas – A 23-year-old legal permanent resident of Katy has been ordered to federal prison following his conviction of transporting illegal aliens, announced U.S. Attorney Ryan K. Patrick. Yabar Ayan Portes-Arevalo pleaded guilty Feb. 18, 2019.
Today, Senior U.S. District Judge John Rainey handed Portes-Arevalo a 21-month sentence. He could also lose his resident status in the United States. At the hearing, the court found he endangered the lives of the illegal aliens.
On Dec. 10, 2018, Portes-Arevalo approached the primary inspection lane of the Border Patrol (BP) checkpoint near Sarita. He was driving a Ford F-150 pickup with a couch and dresser loaded in the bed of the truck wrapped in plastic. During a routine inspection, Portes-Arevalo became visibly nervous, at which time BP conducted an x-ray examination of the vehicle which showed abnormalities inside the furniture.
BP agents removed the plastic and discovered three undocumented aliens hidden in the couch and three more inside the dresser. The dresser had been nailed shut.
Portes-Arevalo is in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
BP conducted the investigation. Assistant U.S. Attorney Cody Barnes is prosecuting the case.
Kentucky Man Sentenced to Prison for Traveling to Meet a Minor for SexRead the Press Release
HUNTINGTON, W.Va. – A Kentucky man was sentenced today to spend 46 months in prison for traveling in interstate commerce in order to engage in illicit sexual activity with a minor, announced United States Attorney Mike Stuart. Upon his release from prison, Caudill will be required to serve a 15 year term of supervised release. He will also be required to register as a sex offender.
“As we announced last month, federal, state and local law enforcement resources are working collaboratively throughout West Virginia and across state lines to identify and prosecute child predators,” said United States Attorney Mike Stuart. “We are committed to doing everything possible to protect our children.”
Richard Gerald Caudill, Jr., 46, of Catlettsburg, Kentucky, previously admitted that during August 2018 he communicated via the cell phone messaging app Kik with a minor he believed to be a 14-year-old girl from the Ashland, Kentucky area. During the conversations, Caudill attempted to persuade and entice the minor to meet him in order to engage in sexual intercourse. On August 28, 2018, Caudill traveled from his home in Kentucky to a location in Kenova, Wayne County, West Virginia, in order to have sex with the minor. Only then did Caudill discover that the minor was actually an undercover law enforcement officer.
The investigation was conducted by the West Virginia State Police Internet Crimes Against Children Task Force, the FBI Violent Crimes Against Children Task Force, and the Ashland Police Department. First Assistant United States Attorney Lisa Johnston and Assistant United States Attorney Jennifer Rada Herrald handled the prosecution. The sentence was handed down by United States District Judge Robert C. Chambers.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Kanawha County Man Pleads Guilty to Theft of Mail from a United States Post OfficeRead the Press Release
Defendant stole 16 pieces of mail and White House Christmas ornaments
CHARLESTON, W.Va. – A Charleston man entered a guilty plea to the felony offense of stealing mail from a Post Office, announced United States Attorney Mike Stuart. Joshua Hanshaw, 37, faces up to 5 years of incarceration and a $250,000 fine when he is sentenced on August 15, 2019. He will also be required to pay restitution back to the United States Treasury and any mail theft victims. Stuart praised the work of the United States Postal Inspection Service and the Charleston Police Department.
“Theft of mail is a serious offense,” said United States Attorney Mike Stuart. “All too often, there is an uptick in mail theft around holidays. We will prosecute “Grinches” like Hanshaw no matter what time of year they commit their criminal act.”
On December 27, 2017, Hanshaw went to the Main Charleston Post Office on Lee Street in downtown Charleston, West Virginia after regular business hours. He was able to lift open a metal security screen that covered a teller window. Hanshaw then crawled over the counter and through the gap to the area where mail is sorted. Once there, Hanshaw took a number of pieces of mail. He also took seven 2017 White House Christmas ornaments that the post-office sells. Hanshaw left the post-office with the mail and ornaments in a plastic bin. He riffled the mail and discarded much of it around the post-office and behind a nativity scene at St. Mark’s United Methodist Church. In total, Hanshaw took 16 pieces of mail, five packages, and seven official 2017 White House Christmas ornaments.
Police had access to security videos where Hanshaw was observed taking the mail and the ornaments. He was also observed opening the metal screen and crawling through the opening. The Charleston Police Department and United States Postal Inspection Service were able to identify Hanshaw and he was arrested. Hanshaw agreed to speak with investigators after they advised him of his Miranda rights. He told investigators that he opened the window and went into the post-office, stealing mail and the Christmas ornaments.
United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Erik S. Goes and former Assistant United States Attorney Eric Bacaj handled the prosecution.
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Justice Department Seeks to Intervene in Private Class Action to Enforce Prohibition on Unlawful “No-Poach” AgreementsRead the Press Release
The Department of Justice announced today that it has filed an unopposed motion to intervene in a private antitrust class action challenging alleged agreements between Duke University (Duke) and the University of North Carolina (UNC) not to compete for each other’s medical faculty. At the same time, the Department joined the parties’ proposed settlement agreement for the limited purpose of obtaining the right to enforce an injunction designed to prevent the maintenance or recurrence of any unlawful no-poach agreements. If approved by the court, the settlement would give the United States the right to enforce an injunction and certain compliance and reporting requirements against Duke. The case is Seaman v. Duke University and Duke University Health System, Case No. 15-cv-00462, in the United States District Court for the Middle District of North Carolina.
Under the terms of the proposed settlement, Duke is prohibited from entering, maintaining, or enforcing unlawful no-poach agreements for five years. The settlement, if approved by the court, also requires Duke to implement rigorous notification and compliance measures to preclude its entry into these types of anticompetitive agreements in the future.
“Dr. Seaman’s class action challenged alleged anticompetitive conduct occurring at the intersection of two important sectors of the U.S. economy: healthcare and higher education,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “Today’s filings, along with the Statement of Interest we filed in March, make clear that the Antitrust Division will use all of its enforcement and advocacy tools to ensure that labor markets across the economy are free from anticompetitive conduct and that workers receive the benefits of robust competition for their labor.”
On June 9, 2015, Dr. Danielle Seaman, an assistant professor at Duke University School of Medicine, filed a class action alleging that Duke and UNC agreed not to permit lateral hiring of faculty between the universities. Her complaint further alleged that the universities’ agreement violates Section 1 of the Sherman Act by eliminating competition for faculty, restricting their mobility, and suppressing their compensation. In 2018, the court certified a class comprised of faculty members with an academic appointment at the Duke or UNC Schools of Medicine.
In March 2019, the Department’s Antitrust Division filed a Statement of Interest in this lawsuit addressing the proper application of the antitrust laws, including the standard for judging the legality of alleged no-poach agreements under the Sherman Act. In April 2019, the litigants announced an agreement to settle the case. The Department sought to intervene in the litigation for the limited purpose of joining the proposed settlement and thereby obtaining the right to enforce any injunctive relief entered by the court against Duke.
“I would like to thank our colleagues at the United States Attorney’s Office for the Middle District of North Carolina for their assistance,” said Assistant Attorney General Delrahim. “In addition, we commend the litigants for working cooperatively with us throughout the resolution of this matter, including for agreeing to permit the United States to seek to intervene in this settlement. Permitting the United States to become part of this settlement agreement in this private antitrust case, and thereby to obtain all of the relief and protections it likely would have sought after a lengthy investigation, demonstrates the benefits that can be obtained efficiently for the American worker when public and private enforcement work in tandem.”
Duke is a private research university located in Durham, North Carolina. It has several schools and institutes, including the Duke University School of Medicine.
Judge Sentences Macon Man Found Guilty of Fraud in Multi-Million Dollar Bibb County School District Computer CaseRead the Press Release
MACON – A businessman convicted in a complex scheme to defraud the Bibb County School District (BCSD) will spend 50 months in prison for his crime, announced Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. Dave Carty, 49, of Macon, was found guilty on February 1, 2019 of one count of Wire Fraud following a week-long trial in federal court. Today, the Honorable Marc Treadwell sentenced Mr. Carty to 50 months in prison and 3 years supervised release. There is no parole in the federal system.
Mr. Carty was charged in connection to the sale of 15,000 NComputing devices for $3.7 million to upgrade classroom technology for BCSD in 2012. Mr. Carty prepared the template for an invoice that was ultimately presented to the BCSD to purchase the devices for $3.7 million. The actual cost of the devices was $1.7 million. Mr. Carty’s invoice did not reflect the donation of 4,000 devices that NComputing intended for the BCSD. The invoice also included charges for services provided by NComputing at no cost. A co-defendant, Isaac Culver, was found guilty in July 2018 by a jury of his peers for Conspiracy to Commit Wire and Mail Fraud, Mail Fraud, Conspiracy to Launder the Proceeds of Unlawful Activity and ten counts of Wire Fraud. Mr. Culver was sentenced to 87 months in prison and three years of supervised release in November.
“The defendants’ scheme defrauded the Bibb County School District of millions of dollars, but the real victims are the school children who were deprived of educational opportunities as a result of this fraud,” said Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. “Our office will continue to vigorously pursue criminals who attempt to steal from taxpayers. I want to thank the FBI and IRS for their exemplary efforts in this case.”
This case was investigated by the Federal Bureau of Investigation and Internal Revenue Service. Assistant U.S. Attorneys Beth Howard and Danial Bennett are prosecuting the case for the Government with participation and cooperation of Special Assistant U.S. Attorney David McLaughlin from the Georgia Office of the Attorney General.
Questions concerning this case can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Jamestown Man Going to Prison for Selling HeroinRead 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 Alex Mercado, 40, of Jamestown, NY, who was convicted of conspiracy to distribute one kilogram or more of heroin, was sentenced to serve 120 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that beginning in early 2016, the defendant served as one of the primary mid-level distributors of heroin and cocaine for the Sigfredo Martinez drug organization. Mercado admitted that he was responsible for the “night shift” transactions, and stated that his co-defendant, Bryan Ferrer-Vazquez, distributed during the “day shift.” The defendant admitted that he received a couple hundred bundles of heroin from Martinez every few days and was tasked with distributing it to smaller dealers and users. Mercado said he would then turn over the proceeds to Martinez and take payment for his role in the distribution. The defendant also directed co-defendant Ferrer-Vazquez to distribute heroin to specific customers and would collect the proceeds earned by Ferrer-Vazquez on behalf of Martinez. During this period of time, Mercado occasionally worked with other uncharged co-conspirators to process bulk quantities of heroin and repackage it for retail sale.
Between November 3, 2016, and March 2, 2017, the Drug Enforcement Administration conducted four controlled purchases of heroin with the defendant. On April 6, 2017, federal search warrants were executed at 385 Buffalo Street, the residence of Bryan Ferrer-Vazquez, and 32 Duquesne Street, the residence of Sigfredo Martinez. At each location, law enforcement officers seized numerous ledgers and paper records of drug transactions. A federal search warrant was also executed at Mercado’s residence at 1083 North Main Street in Jamestown where approximately 10 ounces of marijuana and several suboxone strips were recovered.
Bryan Ferrer-Vazquez was previously convicted and is awaiting sentencing. Charges remain pending against Sigfredo Martinez. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, the Jamestown Police Department, under the direction of Chief Harry Snellings, and the Southern Tier Regional Drug Task Force.
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Insurance Broker Bookeeper Sentenced to 27 Months in Prison for Stealing $900,000 from EmployerRead the Press Release
NEWARK, N.J. – A former accounting specialist in the Ridgefield Park, New Jersey, office of an insurance broker was sentenced today to 27 months in prison for defrauding her employer of approximately $900,000, U.S. Attorney Craig Carpenito announced.
Violeta McGough, 57, of Bergenfield, New Jersey, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to an information charging her with one count of wire fraud. Judge Arleo imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From 2008 through October 2015, McGough allegedly made numerous fraudulent accounting entries to steal funds that her employer – identified as “Victim-Company 1” – collected as insurance premiums. The premiums were for policies underwritten and issued by Victim-Company 1 on behalf of a United Kingdom-based insurance syndicate that actually held the risk. As part of her employment duties, McGough tracked premiums collected by Victim-Company 1 and its monthly payments to the syndicate.
McGough repeatedly used her access to Victim-Company 1’s books to divert a portion of those payments to her personal use. McGough disguised the stolen funds as reimbursed premiums for cancelled policies. She caused Victim-Company 1 to generate checks payable to a person identified in the complaint as “Individual 1,” who suppossedly worked for a premium financing company, but did not actually work there. McGough personally deposited the checks into Individual 1’s bank account and the bulk of the funds were transmitted back to McGough’s bank account.
In addition to the prison term, Judge Arleo sentenced McGough to three years of supervised release.
U.S. Attorney Carpenito credited postal inspectors with the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, and special agents of the U.S. Attorney’s Office, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney David W. Feder of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: David Holman Esq., Assistant Federal Public Defender, Newark
Huntington Man Pleads Guilty to Federal Drug and Gun ChargesRead the Press Release
HUNTINGTON, W.Va. – A Huntington man who was caught with methamphetamine and a gun in Huntington in 2018 pled guilty today to federal charges, announced United States Attorney Mike Stuart. Brandon Douglas Tomblin, 35, entered guilty pleas in federal court in Huntington to possession with intent to distribute methamphetamine and possession of a firearm in furtherance of drug trafficking. Stuart commended the investigative efforts of the Huntington Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
“Strong partnerships have led to dramatic decreases in violent crime in Huntington,” said United State Attorney Mike Stuart. “We are prosecuting record numbers of drug and gun defendants like Tomblin.”
On July 29, 2018, an officer with the Huntington Police Department was on patrol along 15th Street in Huntington when he initiated a traffic stop on a vehicle driven by Tomblin for nearly hitting a parked car. Subsequent to Tomblin’s arrest, the officer located approximately 22 grams of a white crystal like substance believed to be methamphetamine. On August 4, 2018, an officer with the Huntington Police Department responded to 401 Bridge Street in Huntington for report of a suspicious person. The officer detained the individual who was identified as Tomblin, at which time the officer observed a gun nearby, specifically a .357 Sig Sauer pistol. The officer also located drugs on Tomblin’s person in an amount consistent with drug trafficking.
Tomblin faces up to 20 years in federal prison when he is sentenced on August 19, 2019.
Assistant United States Attorney Ryan A. Keefe is handling the prosecution. United States District Judge Robert C. Chambers presided over the plea hearing.
This case is being prosecuted as part of the Project Safe Neighborhoods (PSN) program, 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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Hamden Deli Owner Pleads Guilty to Tax EvasionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and Kristina O’Connell, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that on May 17, 2019, RAYMOND GEORGE, 52, of Hamden, waived his right to be indicted and pleaded guilty before U.S. District Judge Stefan R. Underhill in Bridgeport to one count of tax evasion.
According to court documents and statements made in court, George owns and operates a Ray & Mike’s, LLC, a delicatessen located at 3030 Whitney Avenue in Hamden. For the 2012 and 2013 tax years, George evaded payment of his federal income taxes in multiple ways. First, George failed to deposit all of the cash receipts of the business into his business bank account. He used a portion of the cash to fill an in-store ATM and failed to report the cash as income.
In addition, George used the Ray & Mike business account to pay personal expenses. He also deposited three large checks totaling nearly $300,000 from the Ray & Mike’s business account into his personal investment account, without reporting the funds as income in any capacity, and then withdrew funds from the investment account to purchase personal investment properties. He also deposited a $25,800 check from the Ray & Mike’s lottery account into his personal investment account without reporting the funds as income.
On his federal tax returns, George underreported his income by approximately $365,065 for the 2012 tax year and by $273,108 for the 2013 tax year, and failed to pay a total of approximately $220,000 in taxes.
At sentencing, George faces a maximum term of imprisonment of five years and a fine of up to approximately $440,000. He also has agreed to pay back taxes of $220,663, plus interest and penalties.
This case has been investigated by the Internal Revenue Service – Criminal Investigation Division, and is being prosecuted by Assistant U.S. Attorney Michael S. McGarry.
Guatemalan Man Sentenced to Prison for Illegally Reentering the United States After Prior DeportationRead the Press Release
A man who illegally returned to the United States after being deported was sentenced today to over three months in federal prison.
Francisco Gomez-Tino, age 32, a citizen of Guatemala illegally present in the United States and residing in Toledo, Iowa, received the prison term after a March 15, 2019, guilty plea to one count of illegal reentry into the United States.
At the guilty plea, Gomez-Tino admitted he had previously been deported from the United States in June 2011 and August 2013 and illegally reentered the United States without the permission of the United States government. Gomez-Tino was found by immigration agents in February 2019 after he was charged in Tama County, Iowa, with operating a motor vehicle while intoxicated and providing false identification information. That case is still pending.
Gomez-Tino has prior convictions providing false identification and failure to appear in July 2004 in Moore County, Texas, driving under the influence of alcohol in April 2011 and interference with law enforcement in August 2013, both in Cowley County, Kansas. Gomez-Tino used an alias in these prior cases.
Gomez-Tino also has cases pending in Kansas and Nebraska. Gomez-Tino was arrested in Cowley County, Kansas, in March 2014 and charged with domestic battery, driving under the influence, and fleeing or attempting to elude a police officer. Gomez-Tino was arrested in Dodge County, Nebraska, in August 2014 and charged with terroristic threats and disorderly conduct.
Gomez-Tino was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Gomez-Tino was sentenced to 102 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Gomez-Tino is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-21.
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Fraudulent Tax Returns Nets Detroit Man Prison TermRead the Press Release
Juan Carlos Pena-Lora, 32 of Detroit, was sentenced to 52 months in prison for negotiating over 2,000 U.S. Treasury income tax refund checks generated from false income tax returns, announced U.S. Attorney Matthew Schneider.
Schneider was joined in the announcement by Manny Muriel, Special Agent in Charge of the Detroit, Michigan office of the Internal Revenue Service - Criminal Investigation.
Imposing the sentenced was U.S. District Judge Sean F. Cox. In addition to the prison time, Judge Cox ordered Pena-Lora to pay $14,286,166.46 in restitution.
According to court records, from 2011 through 2012, Pena-Lora negotiated over 2,000 U.S. Treasury income tax refund checks in the Eastern District of Michigan. As Pena-Lora was well aware, the Treasury checks had been generated through the filing of fraudulent tax returns claiming refunds filed in the names and using the social security numbers of Puerto Rican nationals, but using residential addresses in the United States. Pena-Lora cashed the Treasury tax refund checks at local check cashing stores in the city of Detroit, which Pena-Lora knew were proceeds of illegal activity specifically, Theft of Public Money. Although Pena-Lora is pleading guilty to one count of the indictment, he acknowledges that he was involved in criminal activity which generated losses in the sentencing guideline range of more than $9.5 million.
“The defendant committed crimes of greed by stealing from honest taxpayers,” United States Attorney Matthew Schneider said. “This sentence is a warning to others who would consider committing similar crimes.”
“Pena-Lora bilked the U.S. Treasury and taxpayers out of millions of dollars and because of his actions; he’s going to prison,” said Special Agent in Charge Manny Muriel of IRS Criminal Investigation, adding “IRS CI will continue to devote resources to pursue those who attempt to exploit the tax system.”
The case was investigated by agents of the Internal Revenue Service – Criminal Investigation
Four Texas Men Sentenced for Stealing 654 Firearms from UPS Trailers in SpringfieldRead the Press Release
SPRINGFIELD, Mo. – Four Texas men were sentenced in federal court today for stealing 654 firearms from United Parcel Service trailers in Springfield, Mo., en route to Bass Pro Shops.
Frank McChriston, 35, and Derrick White, 33, both of Dallas, Texas; Quinton Haywood, 27, of Glenn Heights, Texas; and Eric White, 28, of Arlington, Texas were sentenced in separate appearances before U.S. Chief District Judge Beth Phillips. McChriston was sentenced to seven years and eight months in federal prison without parole. Derrick and Eric White were each sentenced to seven years and three months in federal prison without parole. Haywood was sentenced to seven years and six months in federal prison without parole. The court also ordered the defendants to pay $206,132 in restitution, for which they are jointly and severally liable.
All four defendants admitted they aided and abetted each other to steal cargo that was being shipped across state lines, from Beretta USA in Maryland to the state of Missouri. They also pleaded guilty to aiding and abetting each other to possess stolen firearms.
Co-defendants Raynord Hunt, 36, and Keith Lowe, 29, both of Dallas, have pleaded guilty to the same charges and await sentencing.
According to court documents, the defendants stole 600 Beretta .380-caliber handguns and 54 Beretta 12-gauge shotguns from United Parcel Service (UPS) trailers in Springfield in October 2017.
The firearms were in the process of being shipped from Beretta Firearms in Maryland to Bass Pro Shops in Springfield. The trailers in which the firearms were shipped had been parked in the UPS freight lot in a configuration to prevent access to the trailer doors, by being parked back-to-back, with the roll-up doors facing each other. The trailers were then blocked by longer trailers, which should have acted as a preventative measure from someone backing a truck-tractor to the trailer and pulling it forward.
Sometime between noon on Oct. 28, 2017, and 8:30 a.m. on Oct. 29, 2017, thieves hot-wired two truck-tractors and used them to push and pull various trailers around the lot, allowing the thieves access to the trailer doors. UPS employees discovered the theft on Oct. 29, 2017, and notified law enforcement.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Springfield, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Dallas, Texas, Police Department and the Texas Department of Public Safety.
Four South American Narcotic Smugglers Charged with Trafficking 1,535 Kilograms of CocaineRead the Press Release
St. Thomas, USVI – Freddy Montano Paz, 29, Calixto Tumbaco, 41, Mariano Abregon, 42, and Hector Hernandez, 48, were charged with Conspiracy to Possess and Possession of a Controlled Substance on Board a Vessel Subject to the Jurisdiction of the United States, United States Attorney Gretchen C.F. Shappert announced.
The complaint alleges that Montano Paz, Tumbaco, Abregon and Hernandez were all on board a go-fast style vessel that was intercepted by a United States Coast Guard (USCG) cutter while on routine patrol. The USCG first sighted the go-fast vessel on May 10, 2019, at approximately 250 nautical miles northwest of Esmeraldes, Ecuador. The vessel did not have any display indicating its nationality. After being detected, the occupants, which consisted of two Columbian nationals, one Ecuadorian national, and one Mexican national, began tossing the bales of suspected narcotics overboard their vessel. The USCG disabled the go-fast vessel, and upon boarding the vessel, successfully seized 40 bales of suspected narcotics, including the bales that were tossed overboard. The 40 recovered bales contained approximately 1,535 kilograms of a white powdery substance that field tested positive for cocaine.
This case is being investigated by the USCG and the Drug Enforcement Agency, and is being prosecuted by Assistant United States Attorney Delia L. Smith.
United States Attorney Shappert reminds the public that an indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty.
Former Owner and Operator of 16 Michigan Adult Foster Care Homes Convicted of Payroll Tax Fraud and Obstructing the IRSRead the Press Release
A Grand Blanc, Michigan, man, who previously operated adult foster care homes, was convicted today of payroll tax fraud, obstructing the Internal Revenue Service (IRS), and failure to file tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew Schneider for the Eastern District of Michigan.
According to court documents and the evidence presented at trial, Jeremiah Cheff owned and controlled the financial and business operations of 16 foster care homes that cared for individuals with mental illnesses and developmental and physical disabilities, including Hunter’s Home, Nico’s Place, Harmony Manor, Hilltop Estates, and Deerwood Manor. From September 2010 through September 2014, Cheff withheld payroll taxes from employees’ paychecks, but failed to timely file payroll tax returns and failed to pay over the withheld funds to the IRS. The jury found Cheff guilty of 60 counts of payroll tax fraud for this misconduct.
Cheff was also convicted of corruptly endeavoring to obstruct the administration of internal revenue laws, and failing to timely file his 2013 through 2015 individual income tax returns. According to court documents and the evidence presented at trial, after the IRS attempted to collect unpaid payroll taxes, Cheff sent an $80,000 false financial instrument to the IRS and falsely claimed to a revenue officer that he had paid the taxes due.
Sentencing is set for Sept. 3. Cheff faces a statutory maximum sentence of five years in prison for each payroll tax fraud count, three years in prison for the corrupt endeavor to obstruct count, and one year in prison for each of the failure to file counts. Cheff will also face a term of supervised release and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Schneider commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Jeffrey A. McLellan and Carl F. Brooker, IV of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Former Fresno Resident Charged with Illegally Brokering the Sale of Military Arms to a Foreign Government and Money LaunderingRead the Press Release
FRESNO, Calif. — Ara Dolarian, 58, was arrested on Wednesday, May 15, in Fresno on a criminal complaint charging him with illegally brokering the sale of military-grade arms and munitions, money laundering, and conspiracy, U.S. Attorney McGregor W. Scott announced.
According to court documents, Dolarian was the owner and president of Dolarian Capital Inc. (DCI), an arms brokering company operating in Fresno; Washington, DC; and Sophia, Bulgaria. Dolarian is a United States citizen residing in Sophia, Bulgaria. Beginning in 2013 and continuing through 2014, the U.S. Department of State denied DCI licenses to broker international arms deals. During this time period, in which DCI was not authorized to broker international arms deals, Dolarian allegedly attempted to broker a multi-million dollar transfer of high‑explosive bombs, rockets, military-grade firearms, and aircraft-mounted cannons from Eastern Europe and South Africa to the government of Nigeria.
In furtherance of this arms deal, it is alleged that in June 2014, Dolarian executed sales contracts with Societe D’Equipments Internationaux (SEI), a French arms brokering company acting on behalf of Nigeria, for the purchase and transfer of high‑explosive bombs, rockets, military-grade firearms, and aircraft-mounted cannons worth more than $8.5 million. Dolarian submitted a brokering application with the U.S. State Department in June 2014 for the proposed deal with Nigeria. This brokering application, along with a later one, was never approved by the State Department.
Without approval from the State Department, Dolarian allegedly accepted approximately $8.3 million from Nigeria and its broker, SEI. These funds were, in part, funneled by Nigeria through a purported furniture company in Hong Kong. Then they were routed through numerous shell accounts held by Dolarian, and others. Soon after obtaining the funds, Dolarian used them to pay off personal expenses, such as federal and state tax debts, and to buy a BMW SUV. In February 2015, the federal government seized over $6 million that remained in Dolarian’s accounts. Civil forfeiture proceedings related to that seizure are currently pending (Case No. 1:15-cv-954-DAD).
“Homeland Security Investigations’ (HSI) national security priorities include the investigation of violations of the arms export and money laundering control laws of the United States,” said Ryan L. Spradlin, HSI Special Agent in Charge. “Illegal arms brokering represents a threat, not only to U.S. national security, but to the security of the international community.”
This case is the product of an investigation by Homeland Security Investigations. This matter is being prosecuted by Assistant U.S. Attorneys Grant B. Rabenn and Jeffrey Spivak, and Department of Justice Trial Attorney Christian Ford of the National Security Division’s Counterintelligence and Expert Control Section.
Dolarian made his initial appearance on the charges on Thursday and is scheduled for a detention hearing on May 20.
If convicted of unlicensed arms brokering, Dolarian faces a maximum statutory penalty of 20 years in prison and a $1 million fine; a maximum statutory penalty of five years in prison and a $250,000 fine for conspiracy, and a maximum statutory penalty of 20 years in prison and a fine of up to $500,000 or up to twice the value of the property involved in the transactions, whichever is greater for money laundering. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Bank Employee Sentenced for EmbezzlementRead the Press Release
BOSTON – A former bank employee was sentenced today in federal court in Worcester in connection with embezzling money from client accounts held by the bank by which she was employed.
Jessica Vargas, 35, of Athol, was sentenced by U.S. District Court Judge Timothy S. Hillman to 30 days in prison and two years of supervised release. In February 2019, Vargas pleaded guilty to one count of bank fraud and two counts of bank embezzlement. Vargas was charged by criminal complaint and arrested in March 2018.
Vargas was an employee of a federally-insured bank when she embezzled approximately $108,000 by making unauthorized cash withdrawals from customer accounts. Bank documentation showed that Vargas made unauthorized withdrawals from the accounts of various customers, including more than $53,000 from the account of an 84-year-old bank customer and almost $13,000 from the account of an 88-year-old customer.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorneys Bill Abely and Kristen Noto of Lelling’s Criminal Division prosecuted the case.
Florida man arrested in Bryan, Ohio, and charged in federal court with attempting to hire someone to murder a social workerRead the Press Release
The FBI, Bryan Police Department and U.S. Attorney’s Office announced this morning that a Florida man was arrested and charged in federal court with attempting to hire someone to murder a social worker.
David Culver, 35, of Fountain, Florida, was charged with one count of use of interstate facilities for murder for hire. He was arrested in Bryan, Ohio, and is scheduled to appear in U.S. District Court in Toledo on Monday at 12:30 p.m.
According to an affidavit filed in the case:
On May 16, the Bryan Police Department received information from an individual identified in court documents as C1 that Culver wanted to have a social worker murdered.
Culver was previously convicted of endangering children and is classified as sex offender. C1 stated Culver has family in Bryan. C1 understood the targeted social worker was involved in an investigation which resulted in the removal of Culver from his children.
Culver texted C1 on May 15: “I did move to Florida, I came back up here an ram into some shit. But do u still have any contacts with some bad people? I need a huge favor.” C1 responded, “Like?” and “I can get them.” Culver’s telephone replied, “I need to get rid of some ASAP.” C1 asked, “Rid as in how?” Culver’s telephone responded, “None breathing.” C1 asked, “What happen.” Culver’s telephone replied, “I’ll call u here in a little while and we can talk then over the phone.”
Culver agreed to pay $1,000 to have the social worker murdered. Culver sent a screenshot with the name of a child protective service’s investigator assigned to the case involving Culver.
On May 18, an undercover Bryan police officer posing as a hitman with Culver at the McDonalds restaurant in Bryan. Culver confirmed he had money and referenced the targeted woman as the person responsible for taking his kids. When asked what kind of proof Culver was looking for to confirm the job was completed, Culver referenced wanting a photo and said he wants her to disappear, according to the affidavit.
Culver provided the undercover officer $200 as down payment for the hit and was taken into custody.
If convicted, the defendants’ sentence will be determined by the Court after review of factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
A charge is only an accusation and is not evidence of guilt. The burden of proof is always on the government to prove a defendant guilty beyond a reasonable doubt.
Florida Man Pleads Guilty to Sealing Bank Account Information of Dozens of VictimsRead 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 Jorge Alberto Alvarez, 35, a Cuban native living in Miami, Florida, pleaded guilty before U.S. District Judge Richard J. Arcara to bank fraud. The charge carries a maximum penalty of 30 years in prison, and a fine of $1,000,000.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that between October 10, 2017, and October 10, 2018, the defendant participated in a scheme to obtain the bank card information of customers utilizing gas pumps by installing skimming devices on the pumps. Alvarez used the information to produce counterfeit access devices and then used the devices to fraudulently obtain money.
The defendant fraudulently obtained bank card information for approximately 131 individual customer accounts with various banks including Bank of America, JP Morgan Chase, and SunTrust Bank. After obtaining the bank card information, Alvarez produced 93 counterfeit access devices to withdraw money from accounts.
On October 10, 2017, as the defendant attempted to enter the United States at the Peace Bridge Port of Entry, he was found to be in possession of the 93 counterfeit access devices, 16 internal gas pump skimming devices, a card reader/encoder with a modified USB cable, and several other items used in furtherance of the scheme. The total loss amount is approximately $57,000.00.
The plea is the result of an investigation by agents of the United States Secret Service at the direction of Special Agent in Charge Lewis Robinson.Sentencing is scheduled for August 28, 2019, at 1:00 p.m. before Judge Arcara.
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Florida Landscaper Pleads Guilty to Tax FraudRead the Press Release
A Stuart man pleaded guilty today to filing a false tax return with the Internal Revenue Service (IRS), announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida.
Joseph J. Ferry III, 80, pleaded guilty to one count of willfully filing a false corporate income tax return for his company, Ferry Enterprises Inc., for the tax year 2015.
According to court documents, Ferry’s company provided landscaping services under contracts with Martin County and the City of Port Saint Lucie and served residential and commercial customers in the Treasure Coast area.
Ferry filed false tax returns with the IRS, which understated the total income earned by Ferry Enterprises and Ferry himself for tax years 2012 through 2016. Income generated from Ferry Enterprises was deposited into bank accounts held in the name of the company; however, Ferry used funds from the corporate bank accounts to pay his personal expenses, including payments on his personal mortgage and loans, purchases of firearms, home renovations, and jewelry. Ferry also withdrew more than $2.9 million of cash from the business’ bank accounts. As part of his plea, Ferry admitted that he also willfully filed false individual income tax returns for the tax years 2011 through 2016. Ferry admitted that the tax loss for the years 2011 through 2016 was $556,396.
Sentencing is set for July 26. Ferry faces a statutory maximum sentence of three years in prison, and faces a term of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman commended Special Agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Allison J. Garnett and Sean Beaty of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Five Gangster Disciples gang members convicted including a former DeKalb police officerRead the Press Release
ATLANTA – A federal jury has convicted five members of the Gangster Disciples (“GD”) national criminal organization of offenses including racketeering, conspiracy involving murder, carjacking, attempted robbery, and other crimes.
“The defendants in this case were each responsible for horrific violent crimes,” said U.S. Attorney Byung J. “BJay” Pak. “It should give the community comfort to know that justice has been done and that each defendant faces a long prison sentence in a federal facility. Gangs like this cannot hide behind a veil of performing community service while at the same time encouraging crimes such as murder and robbery. We, along with our local law enforcement and district attorney partners, will continue to vigorously prosecute gangs and seek punishment for their leaders.”
“I would like to thank the FBI led Safe Streets Gang Task Force and its state and local partners, in particular in this case, the Atlanta Police Department and DeKalb County Police Department, for their efforts in making this case and making our streets safer,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The Gangster Disciples are a ruthless gang that has preyed upon the good people of our communities for far too long. We are dedicated to continue dismantling these organized and violent criminal enterprises until we reach our ultimate goal of ending their reign of terror.”
“This case is a great example of the value of interagency cooperation on a state and federal level. We are proud to stand with our Federal partners in an effort to dismantle dangerous gang operations plaguing our communities. We hope these convictions, along with the previous Gangster Disciple convictions in our local jurisdiction, send a strong and clear message that those who choose to engage in violent behavior will pay a price,” said DeKalb County District Attorney Sherry Boston.
According to U.S. Attorney Pak, the charges and other information presented in court: The Gangster Disciples are a national gang with roots in Chicago dating back to the 1970s. The gang is highly structured, with a hierarchy of leadership posts known as “Positions of Authority” or “POAs.” The gang strictly enforces rules for its members, the most important of which is “Silence and Secrecy” – a prohibition on cooperating with law enforcement. Violations of the rule are punishable by death.
The evidence showed that the defendants and their fellow gang members used the gang’s structure to carry out a pattern of violent and serious crimes, including murder, attempted murder, robbery, bank and wire fraud, drug trafficking and extortion. The jury heard testimony and other evidence about twelve victims murdered by Gangster Disciples and another twelve non-fatally shot.
Included in those murders was the killing of a man as he and his family walked home from a convenience store, leaving the man shot and dying in front of a 4-year-old child. The jury also saw surveillance footage from a shooting inside a Macon nightclub that left three people dead and another three injured. The jury also heard from a victim who was shot more than a dozen times because he refused to take part in a Gangster Disciples’ sponsored community clean-up.
Evidence of other crimes included a recording that captured a gang meeting where members planned to rob over $80,000 from another fraudster and recorded phone calls where defendants planned and then committed a carjacking.
Among the defendants convicted, three were Gangster Disciples with high-level state leadership positions. The evidence at trial showed that Alonzo Walton was the “Governor,” or highest-ranking Gangster Disciple in the State of Georgia, overseeing the entire state. Kevin Clayton was the “Chief Enforcer” for the state, responsible for violently maintaining discipline among members. The state’s enforcement structure included a specialized team known as the “Hate Committee,” led by Donald Glass and responsible for carrying out shootings, robberies and murders.
Also convicted was Vancito Gumbs, a former DeKalb County police officer who was a Gangster Disciple member and self-professed “hitman” for the gang while serving as an officer. Evidence showed that Gumbs relayed law enforcement information to the gang and provided guns. The jury also convicted Antarious Caldwell, who took part in murders and robberies as a member of the “Hate Committee.” One defendant, Perry Green, was acquitted on of the single charge against him.
The defendants convicted in this case were found guilty of the following charges:
- Alonzo Walton, 51, of Atlanta, Georgia, was convicted of racketeering conspiracy involving murder, carjacking, and brandishing a firearm during and relation to a crime of violence.
- Kevin Clayton, 47, of Stone Mountain, Georgia, was convicted of racketeering conspiracy involving murder.
- Donald Glass, 31, of Decatur, was convicted of racketeering conspiracy involving murder, discharging a firearm during and in relation to a crime of violence, and causing death through the use of a firearm.
- Vancito Gumbs, 27, of Stone Mountain, Georgia, was convicted racketeering conspiracy involving murder.
- Antarious Caldwell, 25, of Ellenwood, Georgia was convicted racketeering conspiracy involving murder.
Previously, 18 defendants pleaded guilty, and there are 15 defendants presently awaiting trial in this case.
This case was investigated by the FBI Safe Streets Task Force, DeKalb Police Department, DeKalb District Attorney’s Office, and Atlanta Police Department.
Assistant U.S Attorneys Kim S. Dammers, Chief of the Organized Crime and Gangs section, Ryan K. Buchanan, Deputy Chief of the Violent Crime and National Security section, and Erin N. Spritzer of the Northern District of Georgia, and Department of Justice Trial Attorney Conor Mulroe of the Criminal Division’s Organized Crime and Gang Section prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Felon Sentenced to Federal Prison for Illegal Possession of Firearm at Juneau AirportRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that a convicted felon was sentenced today for illegally possessing a firearm at Juneau International Airport.
Ryan Matthew Neely, 41, of Woodenville, Washington, was sentenced in Juneau by Chief U.S. District Judge Timothy M. Burgess to serve 21 months in prison, followed by three years of supervised release. In October 2018, Neely pleaded guilty to being a felon in possession of a firearm.
According to court documents, on Feb. 20, 2018, Neely was trying to clear security at Juneau International Airport with a duffle bag that contained a loaded firearm with a round in the chamber. When confronted by law enforcement, Neely claimed he had no knowledge about the firearm and that he grabbed the bag from someone else, not knowing there was a firearm inside.
When Neely was taken to the Juneau Police Department for further questioning, he lied about his identity and presented a stolen identification to the officer, and claimed to be that person. After providing his true identity, officers were able to determine that Neely was prohibited from possessing firearms based on prior convictions for theft, possession of stolen mail, and identify theft. At the time of his arrest, Neely was in possession of $8,000, 1.75 grams of heroin, .45 grams of methamphetamine, and .19 grams of buprenorphine. According to court documents, Neely was immediately released from state custody on bail and later absconded once he learned he was facing federal felon in possession charges.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Juneau Police Department (JPD), and the Transportation Security Administration (TSA) conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Jack S. Schmidt.
Felon Sentenced to 10 Years in Federal Prison for Heroin Distribution Conspiracy and for Illegal Possession of a FirearmRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced Patrick Nathan Broxton, age 48, of Ellicott City, Maryland, today to 10 years in federal prison, followed by four years of supervised release, for a heroin distribution conspiracy and for being a felon in possession of a firearm.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jesse R. Fong of the Drug Enforcement Administration - Washington Field Division; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Calvert County Sheriff Mike Evans; and Chief Henry P. Stawinski III of the Prince George’s County Police Department.
“Drug traffickers must know that gun crime will lead to federal time, which has no parole—ever,” said United States Attorney Robert K. Hur. “We will continue to work with our law enforcement partners to remove those who would commit violence from our community. Please, put down the guns and save a life—maybe even your own.”
According to his guilty plea from at least June 2016 through July 2017, Patrick Nathan Broxton conspired with Stephen Eugene Clark, Jr., Stephen Michael Kinnison, Robert Eugene Davidson, and others to distribute heroin in Calvert and Prince George’s County. Broxton was a regular source of supply to Stewart, who would then sell smaller quantities of heroin to Kinnison, Davidson, and others. Law enforcement obtained court-ordered wiretaps and intercepted Broxton’s communications with Stewart and others to arrange narcotics transactions. Those intercepted communications, as well as physical surveillance, show that Broxton distributed heroin and cocaine at commercial establishments, including convenience stores and a mall.
For example, between April 11 and 13, 2017, Broxton communicated with a co-conspirator by telephone to arrange a heroin transaction at a convenience store in Anne Arundel County, Maryland. As detailed in his plea agreement, Broxton was employed at a treatment and rehabilitation facility in Crownsville, Maryland, that assisted individuals affected by drug and alcohol dependency, mental health and other conditions. Law enforcement conducted surveillance of Broxton and saw him leave the facility to meet the co-conspirator at the convenience store, where Broxton supplied the co-conspirator with heroin in exchange for cash.
On July 6, 2017, law enforcement executed a search warrant at Broxton’s residence and recovered a 9mm handgun, 48 rounds of 9mm ammunition, a white ballistic vest, heroin which was in a plastic container in the back of a picture frame, a money counting machine, three digital scales with heroin and cocaine residue, and other drug distribution paraphernalia. Broxton, who was not at home at the time of the search, was subsequently arrested at his place of employment.
Broxton was on probation for a previous violent crime conviction at the time of the drug conspiracy and knew that he was prohibited from possessing a firearm or ammunition.
Co-defendants Stephen Eugene Clark, Jr., age 55, of Laurel, Maryland; Stephen Michael Kinnison, age 44, of Lusby, Maryland; and Robert Eugene Davidson, age 29, of Sunderland, Maryland, previously pleaded guilty to their roles in the conspiracy. Clark was sentenced to 19 months in federal prison. Kinnison and Davidson are scheduled to be sentenced on November 19 and November 21, 2019, respectively. Co-defendant Charles Benjamin Stewart, Jr., age 46, of Upper Marlboro, Maryland, remains detained pending trial, which is scheduled to begin on November 5, 2019.
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. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Robert K. Hur commended the DEA, the ATF, the Calvert County Sheriff’s Office, and the Prince George’s County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Jennifer R. Sykes and Erin B. Pulice, who are prosecuting the case.
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Federal Judge Grants Upward Variance and Gives Gang Member with Multiple Priors Significant Prison SentenceRead the Press Release
HOUSTON – A 38-year old Houston resident and documented 59 Bounty Hunters criminal street gang member has been ordered to federal prison for multiple convictions, announced U.S. Attorney Ryan K. Patrick.
Michael Wayne Ben pleaded guilty March 11, 2019, admitting he was in possession of several firearms and rounds of ammunition. With 18 prior convictions, he is not permitted to possess such per federal law.
Today, U.S. District Judge Kenneth Hoyt took into consideration Ben’s multiple convictions, granted an upward variance to the U.S. Sentencing Guidelines and ordered him to serve 115 months in federal prison. The sentence will be immediately followed by three years of supervised release.
At the hearing, the court heard that Ben was convicted of felonies twice in 1997, again in 1998, 2000, 2004, 2005, 2008, twice in 2012 and again in 2017, among other offenses.
The convictions included multiple felonies, such as possession of a controlled substance, burglary of a building, unlawful carrying of a weapon and unlawful possession of a firearm by a felon, unauthorized use of a vehicle, manufacturing or delivery of a controlled substance and assault of a family member.
The government contended a variance in the sentencing range was necessary to ensure the safety of the community.
Judge Hoyt heard that Ben once attempted to ingest 10.22 grams of crack cocaine so police would not seize it. He also stole a truck and rammed it into a grocery store to burglarize it.
More so, the court heard about one of Ben’s prior cases in which he once strangled and beat up a women who had a newborn baby in her arms, solely because she had discovered another woman’s keys in Ben’s pockets. During the encounter, Ben had thrown the baby on the floor. In a separate incident, he kicked yet another woman in the stomach after she did not get an abortion as he had instructed.
On Oct. 22, 2018, authorities observed a 1993 Lincoln Sedan at the intersection of Deering and Woodfair in Houston, at which time they learned of an open traffic warrant for the operator of the vehicle – Ben. He stopped the car, but then fled on foot.
A law enforcement officer chased him through a nearby apartment complex and a parking lot. Ben has also jumped over the hood of a car and a small privacy fence as he continued into another apartment complex. He was ultimately taken into custody apprehended a few days later.
In his vehicle, authorities found a stolen Glock 19 9-millimeter semi-automatic pistol with a 30-round high-capacity magazine containing 20 rounds of ammunition. Also discovered was an Anderson Manufacturing AM-15 semi-automatic assault rife with a double drum high-capacity magazine which is capable of holding more than 100 rounds of ammunition. It had 16 rounds of .222 ammunition, one of which was a military grade tracer round.
Ben will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Houston Police Department and Bureau of Alcohol, Tobacco and Firearms conducted the investigation. Assistant U.S. Attorney Adam Laurence Goldman prosecuted the case.
Federal Charges in Local Bomb Threat InvestigationRead the Press Release
PENSACOLA, FLORIDA – Noah D. Stirn, 24, formerly housed at the Blackwater Correctional Facility in Milton, Florida, was taken into federal custody today on a criminal complaint charging him with threatening communications involving explosives and mailing threatening communications to injure others. The charges were announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.
The criminal complaint alleges that during a one week time frame, Stirn mailed multiple letters to federal and state agencies that threatened the use of explosive devices to harm those in the local buildings. This led to the evacuation of the buildings and the deployment of officers with bomb sniffing canines.
Stirn will have his initial appearance today in federal court on the charges at 3:00 pm before United States Magistrate Judge Elizabeth M. Timothy.
A criminal complaint is merely an allegation that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
This case resulted from an investigation by the Federal Bureau of Investigation, the United States Marshals Service, the Florida Department of Law Enforcement, the Pensacola Police Department, the Tallahassee Police Department, and the Tallahassee Capitol Police. Assistant United States Attorney David L. Goldberg is prosecuting the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html
Ex-Mirae Bank Executive Sentenced to More than 5 Years in Prison for Loan Fraud that Caused Large Losses to the BankRead the Press Release
LOS ANGELES – The former chief marketing officer at the now-defunct Mirae Bank was sentenced today to 70 months in federal prison for his role in a scheme that caused the Koreatown-based lender to issue more than $15 million in fraudulent loans, and ultimately caused the bank to suffer severe losses.
Ataollah Aminpour, 60, of Beverly Hills, was sentenced today by United States District Judge Dale S. Fischer, who also ordered Aminpour to pay $7,519,084 in restitution. Judge Fischer then remanded Aminpour, who had been on bond, into federal custody to begin serving his sentence immediately.
Aminpour, who is also known as John and Johnny Aminpour, pleaded guilty in December 2017 to one felony count of making a false statement to a financial institution.
According to court documents, Aminpour held himself out as a successful businessman who could help people obtain financing for gas station and car wash businesses with little or no down payment. In some instances, Aminpour would identify a business for the borrower to purchase, and would negotiate the sales price. On the commercial loan applications that Aminpour would submit to the bank on behalf of the borrower, however, Aminpour would overstate the actual purchase price of the business, thereby causing the bank to issue inflated loan amounts that were not fully secured.
From 2005 to 2007, Aminpour, along with other participants, submitted fraudulent commercial loan applications to Mirae Bank, a federally insured financial institution. In his role as a senior bank executive, Aminpour submitted and knowingly caused others to submit false information not only about the true purchase price of the business but also about the assets of the borrowers and the finances of the businesses being purchased. Aminpour also allowed borrowers to circumvent the bank’s down payment requirements by arranging for money to be transferred into escrow accounts so it would falsely appear to Mirae Bank that the borrowers were making large down payments. As a result, borrowers were able to acquire businesses with little to no money down, with Aminpour earning commissions as a result and, in some instances, with Aminpour misappropriating the excess loan proceeds for himself.
For example, Aminpour made false statements to Mirae Bank in an application for a $4.2 million loan in connection with the purchase a car wash in Maywood. When he pleaded guilty, Aminpour admitted that, on the application, he falsely stated that the purchase price of the car wash was $6.65 million when the real purchase price was $3.25 million.
In his plea agreement, Aminpour further admitted that his scheme involved false statements in six loan applications submitted between November 2005 and February 2007 for loans totaling $16.7 million, and that losses on those loans exceeded $7.5 million.
In addition to the loans charged as part of the fraud in this case, Aminpour referred approximately $150 million in loans to Mirae Bank, and the losses on those loans played a significant role in the bank’s collapse in 2009, according to court documents.
After the bank’s failure, the FDIC took over Mirae Bank as its receiver. FDIC and Wilshire Bank, which acquired Mirae Bank’s assets from FDIC, together suffered more than $33 million in losses on the Aminpour-referred loans. Wilshire Bank was subsequently acquired by, and now does business as, Bank of Hope.
The case was investigated by the Federal Deposit Insurance Corporation’s Office of Inspector General, the Federal Bureau of Investigation, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), and the Federal Housing Finance Agency’s Office of Inspector General.
This matter is being prosecuted by Assistant United States Attorney Kerry L. Quinn of the Major Frauds Section.
Ex-Credit Union Manager Pleads Guilty to Bank Fraud in $40 Million Embezzlement that Rendered Institution InsolventRead the Press Release
LOS ANGELES – The former manager of CBS Employees Federal Credit Union pleaded guilty today to one felony count of bank fraud for embezzling $40 million from his employer over the course of 20 years – spending the money on gambling; homes in California, Nevada and Mexico; and travel by private jet – in a scheme that ultimately led to the credit union becoming insolvent.
Edward Martin Rostohar, 62, of Studio City, entered his plea before United States District Judge Otis D. Wright II, who scheduled a sentencing hearing for September 16, where Rostohar will face a statutory maximum sentence of 30 years in federal prison.
According to his plea agreement, Rostohar used his position as a manager at the credit union, a federally insured financial institution, to make online payments from the credit union to himself or by forging the signature of another credit union employee on checks made payable to himself. Prior to his three decades of employment at the credit union, Rostohar was a trained accountant and an examiner at the National Credit Union Administration (NCUA), a federal agency that regulates credit unions. During his approximately 20 years of embezzling from CBS Employees FCU, he used his senior position at the institution to falsify its records to hide his fraud and make credit union appear to be profitable despite it suffering more than $40 million in losses as a direct result of his scheme, the plea agreement states.
Rostohar sometimes disguised his unauthorized payments, and hid the proceeds of the fraud, by directing the stolen funds to shell companies he controlled, court papers state. Rostohar also admitted to submitting credit union checks to make personal credit card payments.
The scheme was exposed in March when a credit union employee, after discovering a $35,000 check payable to Rostohar, conducted an audit and discovered $3.8 million in checks made payable to Rostohar between January 2018 and March 2019. Rostohar told law enforcement he gambled away much of the money and spent the rest on traveling by private jet, buying expensive watches, and giving his wife a weekly allowance of $5,000, according to an affidavit filed with a criminal complaint in the case. Rostohar also started a coffee business in Reno, Nevada in December 2018, and he wrote tens of thousands of dollars’ worth of checks to himself to cover the business’s costs as well as to pay a $5,000 monthly mortgage on a home in Reno he recently purchased, according to court documents.
Rostohar has agreed to forfeit his ill-gotten gains, including bank accounts in his name and the names of his shell companies, four automobiles, including a Porsche, a Tesla and a Lexus, homes in Studio City, Reno, and Mexico, expensive watches, and Tiffany jewelry.
Rostohar’s long-running fraud resulted in the decision by the NCUA to liquidate the credit union and discontinue its operations after determining the Studio City-based CBS Employees was insolvent with no prospect of restoring viable operations on its own. In March, University Credit Union of Westwood assumed CBS Employees’ assets, loans, and all member shares. At the time of its liquidation and sale, CBS Employees served 2,798 members and had assets of $21,037,558, according to the credit union’s most recent Call Report.
Rostohar has been in federal custody since his arrest on March 13.
This case was investigated by the Federal Bureau of Investigation and the Los Angeles Police Department.
This matter is being prosecuted by Assistant United States Attorneys Andrew Brown of the Major Frauds Section and Victor Rodgers, deputy chief of the Asset Forfeiture Section.
Eleven Charged in Wide-Ranging Cape Cod Heroin ConspiracyRead the Press Release
BOSTON – Eleven individuals from Cape Cod and Rhode Island were arrested today and charged in federal court in Boston in a wide-ranging heroin conspiracy.
The following individuals were charged with conspiracy to distribute and to possess with intent to distribute heroin:
- Edwin Otero, 29, of Hyannis;
- Justin Joseph, 32, of Pawtucket, R.I.;
- Anthony Basilici, 35, of Pawtucket, R.I.;
- Vinicius Zangrande, 35, of Centerville;
- Krymeii Fray, 23, of Hyannis;
- Brooke Cotell, 25, of Hyannis;
- Ronny Baams, 37, of South Yarmouth;
- Tony Johnson, 35, of Hyannis;
- Eric Brando, 27, of Osterville;
- Joshua Johnson, 31, of Mashpee; and
- Kimberly Lopes, 49, of Hyannis
According to court documents unsealed today, in 2018, federal, state and local law enforcement began investigating Edwin Otero, an alleged leader of a Cape Cod-wide drug trafficking organization. It is alleged that the investigation revealed Otero and his 10 co-defendants distributed large quantities of heroin and other controlled substances throughout Cape Cod, including in Hyannis, Mashpee, Centerville, Osterville, and in Pawtucket, R.I.
On May 8, 2019, Otero, Joseph, and Basilici were allegedly involved in a shooting at Fray’s residence related to a drug debt Fray owed. Agents intercepted Otero discussing the fact that he was involved in the shooting.
As a result of search warrants executed today, heroin, packaging materials, scales, a finger press, and three firearms and ammunition, including a 9 millimeter assault-style weapon, were seized. A bullet hole in Fray’s home, consistent with the reported May 8 shooting, was also observed.
The charge of conspiracy to distribute and possession with intent to distribute heroin provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Barnstable Police Chief Matthew Sonnabend made the announcement today. Valuable assistance was provided by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Office; U.S. Postal Inspection Service, Boston Field Office; U.S. Secret Service, Boston Field Office; Federal Bureau of Investigations, Boston Field Office; Massachusetts State Police; Rhode Island State Police; Massachusetts Department of Corrections; Barnstable County Sheriff’s Office; and the Pawtucket (R.I), Providence (R.I), Falmouth, Mashpee, Yarmouth, Dennis, Sandwich, and Brewster police departments. Assistant U.S. Attorneys Christopher Pohl and Lauren Graber of Lelling’s Narcotics and Money Laundering Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Department of Justice Announces Third Annual Attorney General’s Award for Distinguished Service in PolicingRead the Press Release
Attorney General William P. Barr today announced the third annual Attorney General’s Award for Distinguished Service in Policing.
The Attorney General’s Award recognizes individual state, local or tribal sworn, rank- and-file police officers, deputies and troopers for exceptional efforts in community policing. The awarded officer(s), deputy(ies) or troopers will have demonstrated active engagement with the community in one of three areas: criminal investigations, field operations, or innovations in policing.
“Law enforcement officers put their safety and lives on the line every day for our protection," Attorney General William P. Barr said. "They have a noble calling, and we are grateful to every officer in this country. But some officers have gone above and beyond the call of duty and deserve to be recognized for particular acts of valor and dedication. Today I am pleased to announce the third annual Attorney General’s Award for Distinguished Service in Policing, which recognizes the accomplishments of outstanding state and local officers who have proven themselves to be some of the nation’s finest."
President Donald J. Trump established clear directives for the Department of Justice – with three Executive Orders – demonstrating his strong support of the law enforcement community. These Executive Orders commit the Department to working in tandem with state and local law enforcement to restore the rule of law, reduce violent crime, dismantle criminal gangs, and combat the growing drug epidemic. Today the Department of Justice continues to support the President’s directive to honor law enforcement officers by announcing the third annual Attorney General’s Award for Distinguished Service in Policing.
Within each category, an award will be given to law enforcement agencies serving small, medium, and large jurisdictions:
- Small: Agencies serving populations of fewer than 50,000
- Medium: Agencies serving populations of 50,000 to 250,000
- Large: Agencies serving populations of more than 250,000
By distinguishing and rewarding these efforts, the Department strives to promote and sustain its national commitment to policing and to advance proactive policing practices that are fair and effective.
With the Attorney General’s Award for Distinguished Service in Policing, the Office of the Attorney General recognizes that the nation’s more than 18,000 law enforcement agencies, individual officers, deputies, and troopers are working hard to keep our communities safe.
The application for nominees can be found at: https://www.justice.gov/ag/policing-award.
Defendant Sentenced to 30 Years for Sexual Exploitation of A ChildRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Steven James McNinch, age 35, of Okemah, Oklahoma, was sentenced to 360 months’ imprisonment and 10 years of supervised release for Sexual Exploitation of Children, in violation of Title 18, United States Code, Section 2251(a). The charges arose from an investigation by the Okmulgee County Sheriff’s Office, the Okmulgee County Department of Human Services, and the Federal Bureau of Investigation.
The Indictment alleged that on or about August 6, 2017, in the Eastern District of Oklahoma and elsewhere, the defendant employed, used, persuaded, induced, enticed, and coerced a person under the age of eighteen years, to engage in sexually explicit conduct, for the purpose of producing a visual depiction of such conduct, and such visual depiction was produced using materials that have been mailed, shipped, and transported in interstate and foreign commerce. McNinch plead guilty to the Indictment on November 29, 2018.
The investigation that lead to the Indictment and sentence established that McNinch had coerced a child to engage in sexually explicit conduct and had used a cellular telephone to make a video of the child’s pubic area. It was further discovered that while the defendant was in custody he made telephone calls from jail during which he requested that a witness retrieve and destroy evidence that he believed would further incriminate him. McNinch has multiple prior felony convictions including Burglary, Escape From Confinement, and Assault & Battery with a Dangerous Weapon.
United States Attorney Brian J. Kuester said, “The criminal justice process can at times be difficult for victims – especially child victims – despite our best efforts to ease the anxiety they experience. The ultimate outcome of this case is proof that despite the difficulties, justice can prevail. This sentence is just punishment for the defendant’s atrocious conduct against a child and will prevent him from harming others. It would not have been possible without the victim’s and family member’s courage, strength, and resilience.”
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Sarah McAmis represented the United States.
Dardanelle Man Sentenced to More Than 21 Years in Prison for Meth Conspiracy: Defendant Distributed Methamphetamine to Members of White Supremacist GangRead the Press Release
LITTLE ROCK—A Yell County man was sentenced Monday for his role in a methamphetamine conspiracy that involved members of a white supremacist gang. Daniel Adame, 32, of Dardanelle, was sentenced to 262 months in federal prison by Chief U.S. District Judge Brian S. Miller. Cody Hiland, United States Attorney for the Eastern District of Arkansas, announced today’s sentencing.
Judge Miller also sentenced Adame, who pleaded guilty to conspiring to distribute methamphetamine on January 30, 2019, to five years of supervised release following his term of imprisonment.
In 2016, local and federal agencies initiated a joint investigation to identify, infiltrate, and dismantle drug trafficking organizations in Russellville. Agents identified multiple individuals who were trafficking methamphetamine in the Pope County area. The investigation revealed that Adame shipped firearms to another suspect in exchange for pound quantities of methamphetamine. The methamphetamine was shipped to the Russellville area. Adame would then distribute methamphetamine to others in Pope and Yell Counties. Adame supplied methamphetamine to known members and associates of the New Aryan Empire (NAE), a white supremacist organization that began as a prison gang.
"Today’s sentence in Operation ‘To the Dirt’ reflects the significance of this crime," said Cody Hiland, United States Attorney for the Eastern District of Arkansas. "Distribution of methamphetamine to anyone, but especially to members of this violent gang that has plagued the River Valley, will result in a lengthy prison term. We will continue to investigate and prosecute methamphetamine distribution in this as well as other corrupt organizations."
Adame was charged on October 3, 2017, in a federal indictment that charged 44 people from the Pope County area with numerous gun and drug violations. The case is named "To The Dirt," a reference to the NAE slogan referring to the rule that members must remain in the NAE until they die.
After Adame pleaded guilty, a federal grand jury returned a superseding indictment on February 5, 2019, which named 11 additional defendants and added charges for the defendants’ involvement in acts involving attempted murder, kidnapping, maiming, and conspiracy to distribute methamphetamine. Adame is the first defendant to be sentenced in Operation "To the Dirt."
The investigation included the Bureau of Alcohol, Tobacco, and Firearms, the Drug Enforcement Administration, and the Federal Bureau of Investigation, as well as the Pope County Sheriff’s Office and the Russellville Police Department. The case is being prosecuted by Assistant United States Attorney Liza Brown.
This news release, as well as additional information about the office of the United States Attorney for the Eastern District of Arkansas, is available on-line at
http://www.justice.gov/edar
Twitter:
@EDARNEWS
Crack Dealer Who Had Previously Been Convicted of a Felony Drug Offense Sent to Prison for More Than Five YearsRead the Press Release
A man who distributed crack cocaine in Waterloo was sentenced May 17, 2019, to more than five years in federal prison.
Edward Smart, age 56, from Waterloo, Iowa, received the prison term after a July 2, 2018, guilty plea to conspiracy to distribute 28 grams or more of crack cocaine. Smart had previously been convicted of a felony drug offense.
Smart was sentenced in Cedar Rapids by Chief United States District Court Judge Leonard T. Strand. Smart was sentenced to 68 months’ imprisonment. He must also serve a four-year term of supervised release after the prison term. There is no parole in the federal system.
Smart is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Drew Inman and investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Bureau of Alcohol, Tobacco, and Firearms, Drug Enforcement Administration, Iowa Division of Narcotics Enforcement, and the Tri-County Drug Enforcement Task Force (Waterloo Police Department; Cedar Falls Police Department; Waverly Police Department; Bremer County Sheriff’s Office; Black Hawk County Sheriff’s Office; LaPorte City Police Department; Evansdale Police Department; Hudson Police Department).
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-2023.
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Clovis Man Sentenced to Almost 3 Years in Prison for Bank Fraud and Aggravated Identity TheftRead the Press Release
FRESNO, Calif. — Johnny Kajitani Jr., 47, of Clovis, was sentenced Monday to two years and 10 months in prison for bank fraud and aggravated identity theft, U.S. Attorney McGregor W. Scott announced. In addition, U.S. District Judge Dale A. Drozd ordered Kajitani to pay almost $44,000 in restitution to his various victims.
According to court documents, Kajitani obtained the social security number of an individual without her knowledge. In October 2012, he used that social security number to apply for membership with a local credit union. Kajitani then used that social security number to apply for and obtain from the credit union a $30,000 vehicle loan and a Platinum Visa credit card with a $7,500 limit. The credit union ultimately suffered a loss of over $30,000.
Furthermore, in 2014, Kajitani obtained the personally identifiable information and social security number of another individual. In September 2014, Kajitani opened four credit cards using that social security number without the consent of the victim. After Kajitani defaulted on these credit cards, four different banks suffered a combined loss of almost $30,000.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Laura D. Withers prosecuted the case.
Citizen of Bhutan with Permanent U.S. Residency Sentenced to 7 Years in Prison for Requesting and Receiving Sexually Explicit Images from a ChildRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 84 months of imprisonment and 5 years of supervised release on his conviction of receipt of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
United States District Judge Cathy Bissoon imposed the sentence on Mukesh Khawas. According to information presented to the court, from June 14, 2016, to June 15, 2016, Khawas engaged in online chat conversations with a female child via the social networking/dating application Skout.com, and during the conversations, Khawas requested and received sexually explicit images, knowing the minor victim had not yet attained 12 years of age.
In addition to his conviction for receipt of material depicting the sexual exploitation of a minor, Khawas acknowledged his responsibility for the production and possession of material depicting the sexual exploitation of a minor. Khawas, who is a citizen of Bhutan but a lawful permanent resident of the United States, has also agreed to be deported to Bhutan upon the conclusion of his sentence without the ability to appeal or reenter the United States.
Assistant United States Attorneys Christy C. Wiegand and Jessica Lieber Smolar prosecuted this case on behalf of the government.
The Federal Bureau of Investigation, the Allegheny County District Attorney’s Office, and the West Virginia State Police conducted the investigation leading to the successful prosecution of Khawas.
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.
Chief Financial Officer of Local Business Indicted for Embezzling 3.8 Million DollarsRead the Press Release
St. Louis, MO –Bryan Vonderahe, 45, of Kirkwood, Missouri, was charged on Thursday, May 16, in a federal indictment for three counts of Wire Fraud. He appeared this morning in front of U.S. Magistrate Judge Patricia Cohen.
The indictment charging Bryan Vonderahe alleges that beginning during January, 2012 and continuing through January, 2019, Vonderahe schemed to defraud a local company where he was employed as chief financial officer and controller. Vonderahe is alleged to have issued approximately 500 company checks to himself during that period of time, totaling approximately 3.8 million dollars, without the knowledge or authority of the company’s ownership. The indictment alleges that Vonderahe falsified internal company records and issued false financial statements to the company’s outside auditors in order to cover up and conceal his fraud scheme. Vonderahe is alleged to have used the stolen and embezzled funds for his own personal use, unrelated to the legitimate business of the company, including to pay for a lavish lifestyle; to pay for travel for himself and his family to locations such as Florida, Colorado, and Nevada; to make payments on his personal residential mortgage; and to pay for gambling and related activities.
Related to the indictment, a Federal Judge issued seizure warrants for two vehicles, a GMC Acadia Denali and a Land Rover, Range Rover Sport. The Indictment seeks forfeiture of Vonderahe’s residence on Windy Hill Road in Kirkwood, Missouri, and a second residence on Chardin Place in St. Louis, Missouri.
If convicted, as to each charge Vonderahe faces a maximum penalty of 20 years in prison and a $250,000 fine. Restitution is also mandatory. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The Federal Bureau of Investigation is investigating this case. Assistant U.S. Attorneys Hal Goldsmith and Kyle Bateman are handling the case for the U.S. Attorney’s Office.
Charter School Founder and CEO Sentenced to 2½ Years in Federal Prison for Misappropriating $3.2 Million in Public Education FundsRead the Press Release
LOS ANGELES – The founder and ex-chief executive officer of Celerity Educational Group, a Koreatown-based non-profit owner and operator of charter schools, was sentenced today to 30 months in federal prison for conspiring to misappropriate approximately $3.2 million in public education funds allocated to some of her company’s schools.
Vielka Maritza McFarlane, 56, of Sylmar, was sentenced by United States District Judge R. Gary Klausner, who told her, “If you want to help your students, you can teach them that if they make mistakes, they have to pay the price and be responsible for their own actions.”
McFarlane, who pleaded guilty on January 8 to one count of conspiracy to misappropriate and embezzle public funds, founded Celerity Educational Group in 2004 and served as its CEO until April 2015. Between April 2012 and April 2017, McFarlane also was CEO of Celerity Global Development, a non-profit California corporation, which provided various management services to the Celerity charter schools in exchange for a percentage of the schools’ revenues.
From July 2009 to April 2017, McFarlane and her co-conspirators caused the Celerity charter schools and Celerity Educational Group to falsely certify to federal, state and local authorities that they were complying with all rules and regulations governing the use of public funds that they received. McFarlane used public funds – money that should have been spent on educational purposes at Celerity charter schools in Los Angeles, Compton and Pasadena – for a variety of personal expenses and improper expenditures.
Those expenses included unauthorized first-class airfare and foreign travel, luxury items purchased from shops in Beverly Hills and Tokyo, expensive meals at high-end restaurants, airfare and lodging for herself, her family members, and others in January 2013 to attend President Barack Obama’s second inauguration, and customized recreational bicycles for the use of McFarlane and her spouse.
“Every dollar defendant spent on herself and her family members, whether it was for alcoholic drinks at expensive restaurants or checked bags for her trip to Washington, D.C., for a presidential inauguration, was a dollar less for the underserved yet deserving children of the Celerity Charter Schools and an insult to the hardworking individuals of Los Angeles who pay their taxes to help fund these needed schools,” prosecutors wrote in the government’s sentencing papers.
From late 2012 to June 2014, McFarlane also conspired to use approximately $3 million in public funds – a substantial portion of which came from the United States Department of Education – awarded to Celerity’s charter schools in Los Angeles to purchase and renovate an office building in Columbus, Ohio, where she oversaw the founding of a separate charter school.
McFarlane also used public funds awarded to the Celerity charters schools in 2013 to pay $157,957 for the security deposit, monthly rent and renovations at a soundstage and recording studio in Canoga Park, which was rarely used by the Celerity charter schools. McFarlane pursued a proposal to allow a digital-production company to use the studio space in exchange for 200,000 shares in the digital-production company, which would have been issued to a separate for-profit media-production business called The Muse Collective.
She admitted in her plea agreement that the payments for her personal use, the Ohio property purchase, and the Canoga Village studio were improper; she lacked authorization to make those payments and expenditures; and the payments violated rules, regulations and laws governing the use of public funds that the Celerity charter schools received.
Grace Canada, another Celerity executive, has pleaded not guilty to a 23-count federal grand injury indictment alleging conspiracy and wire fraud, among other offenses. She is scheduled to go to trial on November 12.
In June 2017, the U.S. Attorney’s Office entered into a Non-Prosecution Agreement with Celerity Educational Group, now known as ISANA Academies, in which ISANA recognized and acknowledged the misconduct committed by McFarlane, agreed to cooperate fully with the government’s investigation, and agreed to implement certain reforms designed to ensure that similar conduct does not occur again.
By entering into the Non-Prosecution Agreement, the U.S. Attorney’s Office recognized that ISANA is responsible for educating thousands of students from underserved neighborhoods throughout Los Angeles County, and has demonstrated a strong commitment to its students and their academic achievement. The reforms now implemented by ISANA should allow it to continue serving its students and communities. The United States Attorney’s Office recognizes the cooperation of ISANA and its board of directors throughout its ongoing investigation.
This case was investigated by the United States Department of Education, Office of Inspector General; the Federal Bureau of Investigation, the United States Postal Inspection Service; IRS Criminal Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the United States Secret Service. The Los Angeles Unified School District’s Office of Inspector General was also part of the investigative team and has played an instrumental role in the ongoing investigation.
This case is being prosecuted by Assistant United States Attorneys Julian L. André and Valerie L. Makarewicz of the Major Frauds Section.
Ceres Resident Sentenced to over 8 Years in Prison for Crystal Meth DeliveryRead the Press Release
FRESNO, Calif. — Jose Manuel Sotelo-Mendoza (Sotelo), 27, of Ceres, was sentenced today to eight years and four months in prison for conspiring to distribute and possess with intent to distribute 15 pounds of crystal methamphetamine, U.S. Attorney McGregor W. Scott announced.
Sotelo’s sentence follows his guilty plea earlier this year. According to court documents, Sotelo and his co-defendant Oscar Ivan Salazar-Avalos (Salazar), 29, of Mexico, delivered 15 pounds of crystal methamphetamine to an undercover officer in Delano after Salazar negotiated with the officer for the delivery of the drug for $3,400 per pound for a total of $51,000. Salazar and Sotelo met the source of supply in Castaic in the northern part of Los Angeles County to obtain the methamphetamine. Salazar was recently sentenced to 6 years and 9 months in prison for the drug conspiracy.
This case was the product of an investigation by the Central Valley High Intensity Drug Trafficking Area Task Force, consisting of law enforcement officers of Homeland Security Investigations, the California Highway Patrol, the Bureau of Investigation of the California Department of Justice, the Fresno Police Department, and the Fresno County Sheriff’s Office. Assistant U.S. Attorney Karen A. Escobar prosecuted the case.
California Man Sentenced for Smuggling 30 Pounds of MethRead the Press Release
WICHITA, KAN. – A California man was sentenced today to 10 years in federal prison for smuggling almost 30 pounds of methamphetamine into Kansas, U.S. Attorney Stephen McAllister said.
Christian Delgado-Lopez, 30, Dana Point, Calif., pleaded guilty to one count of possession with intent to distribute methamphetamine. According to court documents, Delgado-Lopez was driving a rented Ford F-150 when the Kansas Highway Patrol stopped him on U.S. Highway 54 in Meade County, Kan. Delgado-Lopez and his passenger told the trooper they were on their way to Wichita.
A search of the vehicle turned up the methamphetamine, which was hidden in a spare tire.
McAllister commended the Kansas Highway Patrol, the Drug Enforcement Administration and Assistant U.S. Attorney Debra Barnett for their work on the case.
California Man Responsible for Sending More Than 50 Pounds of Methamphetamine to Iowa Sentenced to Federal PrisonRead the Press Release
A man responsible for running a complex drug trafficking organization was sentenced May 17, 2019, to more than 14 years in federal prison.
Michael Pineda, age 34, from San Ysidro, California, received the prison term after an August 6, 2018, guilty plea to conspiracy to distribute at least 500 grams of methamphetamine and conspiracy to commit money laundering.
Evidence during the case established that Pineda served as a source of ice methamphetamine for numerous individuals. Pineda shipped the methamphetamine to Iowa from California, typically concealed in car stereo boxes. Once the methamphetamine arrived in Iowa, Pineda relied on various individuals to pick it up, repackage it, distribute it, and later collect money from its sale.
In order to conceal the money from the drug sales, Pineda directed others in the conspiracy, including his wife, to open bank accounts under fictitious business names. He then instructed his drug customers to deposit drug proceeds into these bank accounts. In less than two years, Pineda laundered more than $370,000 of drug money through these accounts. He also instructed other individuals to cash from the sales to California. One such individual was intercepted at the San Diego Airport carrying approximately $35,000 in drug proceeds.
Pineda was sentenced in Cedar Rapids by Chief United States District Court Judge Leonard T. Strand. Pineda was sentenced to 175 months’ imprisonment. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Pineda is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Lisa C. Williams and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of Federal Bureau of Investigation, Iowa Division of Narcotics Enforcement, and the Tri-County Drug Enforcement Task Force (Waterloo Police Department; Cedar Falls Police Department; Waverly Police Department; Bremer County Sheriff’s Office; Black Hawk County Sheriff’s Office; LaPorte City Police Department; Evansdale Police Department; Hudson Police Department).
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-2084.
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Burnsville Woman Sentenced to 24 Months in Prison for Intending to Distribute HeroinRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of ANGELICA PINO PERALTA, 37, to 24 months in prison for possession with intent to distribute heroin. PERALTA, who pleaded guilty on January 22, 2019, was sentenced on May 17, 2019, before Chief Judge John R. Tunheim in U.S. District Court in Minneapolis, Minnesota.
According to the defendant’s guilty plea and documents filed with the court, on October 10, 2018, police searched PERALTA’s apartment in Burnsville, and seized over eight pounds (3,662.73 grams) of heroin. PERALTA admitted that she intended to distribute a portion of the heroin. PERALTA is a Mexican national and is potentially subject to deportation upon completion of her sentence.
This case was the result of an investigation conducted by the Cannon River Drug and Violent Offender Task Force, the United States Drug Enforcement Administration, and the Minnesota Bureau of Criminal Apprehension.
Assistant U.S. Attorney Tom Hollenhorst prosecuted the case.
Defendant Information:
ANGELICA PINO PERALTA, 37
Burnsville, Minn.
Convicted:
- Possession with intent to distribute, 1 count
Sentenced:
- 24 months in prison
- 3 years supervised release
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Berks County Child Predator Sentenced to Eighteen YearsRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Sean Fager, 54, of Reading, Pennsylvania was sentenced to 18 years imprisonment, followed by lifetime supervised release by Judge Jeffrey L. Schmehl. In January 2019, Fager pleaded guilty to charges of production, transportation and possession of child pornography, including amassing a collection of more than 400 digital images and several videos found on his personal computer.
In March 2014, the National Center for Missing and Exploited Children shared a tip with law enforcement about suspected child pornography being uploaded from an IP address belonging to the defendant. An investigation revealed hundreds of images of child pornography, some of which appeared to be homemade, and evidence that the defendant participated in bondage and diaper fetish behavior. Most egregiously, Fager took photos of two children, a boy and a girl both around the age of 5, depicting these fetishes for his own sexual gratification.
“This defendant’s conduct was abhorrent. He preyed on the most vulnerable of victims – two five-year-old children. Fager, and others like him who participate in the world of child pornography, perpetuate the harm to the victims by creating demand and fueling this market,” said U.S. Attorney McSwain. “These children are victimized every time their images are downloaded, purchased, or viewed by another person. Their exploitation is ongoing and relentless. This sentence demonstrates the seriousness of these crimes and the ferocity with which we will prosecute them.”
“Anyone willing to sexually exploit children deserves to feel the full force of the law,” said Michael T. Harpster, Special Agent in Charge of the FBI's Philadelphia Division. “Sean Fager eagerly victimized two young children. Society is unquestionably safer with predators like him behind bars, and the FBI will never stop working to bring such criminals to justice.”
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorneys Amanda Reinitz and Christine Sykes.
Assistant Attorney General Jeffrey Bossert Clark Delivers Remarks at the Beijing American CenterRead the Press Release
Thank you for that kind introduction. I am pleased to be here as I begin my first visit to China in any capacity.
I very much appreciate the opportunity to discuss U.S. environmental law enforcement, generally, and how the important work of the Environment Division fits into that larger framework.
Robust enforcement of our nation’s environmental and wildlife protection laws is a high priority and a vital feature of the Division’s mission. In pursuing our enforcement mission, we strive to adhere to the fair and impartial rule of law, enhance federalism, exercise pragmatic decision-making, coordinate and collaborate with lead agencies and U.S. Attorneys, and protect the public fisc.
Before I get into the specifics of our work, however, I’d like to provide an overview of environmental law in the United States as a reference point.
The United States’ political system is not entirely centralized. In fact, our system of government, in many ways, structurally encourages participation by many independent actors – by states, by a range of business interests, by individuals and private interest groups of all types.
Because of our country’s political structure, Congress often seeks to exercise its powers by encouraging States to implement national programs. This allows the federal government to set national minimum standards that the states implement and exceed where they wish. This arrangement is commonly referred to as “cooperative federalism.” I also support classic federalism pursuant to which certain spheres of authority are left exclusively to the States. Indeed "left to the States" is not an accurate term, since the States are governments with general sovereign powers, whereas the federal government is confined to enumerated powers.
Cooperative federalism ensures a greater balance of authority between the US federal and state governments. The federal government often provides states with incentives to participate in particular federal programs.
Cooperative federalism is a feature of many U.S. environmental laws. The Clean Air Act is a good example. The federal government sets national ambient air quality standards. States determine how to meet those standards. This process involves each state creating a “State Implementation Plan” that limits emissions from industry within their own State and explains how any given State will enforce any emission limitations.
The federal government can enforce limits set through this process, as can the state. Additionally, the Clean Air Act contains a citizen suit enforcement provision. This creates yet another level of enforcement, one that serves to both supplement and check state and federal authority.
The Environment and Natural Resources Division actively promotes joint state-federal environmental enforcement, which underlies the whole nature of federalism in general and in its cooperative form, a concept central to the structure of our federal environmental laws. By teaming up with state partners in both enforcement and defensive cases, we combine sovereigns, reduce costs and obtain more comprehensive results.
Now I will turn to environmental law enforcement in the U.S. and where the Environment Division fits into that structure.
Environmental enforcement in the U.S. is often described from a quantitative perspective as a huge pyramid of actors and actions.
At the base of the pyramid are environmental enforcement cases brought by state and local government officials, as well as citizens and tribes. Of these, state agencies bring the largest number each year.
States have their own court systems. Though it’s unusual for the federal government to participate in state court, it does happen sometimes. This sometimes involves situations where the U.S. has waived its sovereign immunity.
Their enforcement actions range from cases seeking simple citations imposing a small monetary fine, to orders directing a company to comply with the law, to civil or criminal judicial enforcement actions in state or federal court.
The next level of the pyramid includes administrative actions brought by EPA to enforce U.S. environmental laws.
But U.S. environmental statutes generally place limits on the extent of penalties or other relief that EPA and other agencies may seek in administrative enforcement actions. This is because (a) agencies exercise only delegated judicial powers that we call "quasi-judicial" powers and (b) agencies do not provide the full measure of due process protections available in our so-called Article III Courts.
And so, for more serious violations of environmental laws in which a higher penalty is required or more extensive steps are needed to bring a defendant into compliance with the law or to respond to environmental harms resulting from a violation, EPA will refer the matter to the Justice Department for enforcement action in federal court.
ENRD also receives referrals from other federal agencies for violations of environmental laws under their agency’s jurisdiction. For example, the U.S. Coast Guard sends us referrals for oil pollution cases.
The Division can bring either civil cases or criminal cases. Taking those two types of cases in turn, I call it the next level simply because civil enforcement is generally less coercive though even that is not always true. Civil injunctions can be more coercive than civil cases. Civil cases comprise the next level of the pyramid.
Nearly all modern federal environmental laws in the U.S. have civil enforcement provisions that allow the Justice Department to seek injunctive relief, civil penalties, recovery of government response costs, enforcement of administrative orders, and other relief.
Finally, in the most serious cases involving violations of environmental laws, we pursue criminal enforcement actions, often times on top of civil enforcement, not in lieu of criminal enforcement. Although this is the smallest group of cases (i.e., top of the pyramid), they can often provide the most deterrent value because they can result in large monetary fines, imprisonment, and ongoing monitoring of operations to ensure that the defendant complies with the law in the future.
The Division has been in existence for nearly 110 years and is built upon a history of service, integrity, and adherence to the rule of law.
We began as a very small Division created to handle all cases concerning “enforcement of the Public Land Law,” including Indian rights cases. Initial staff consisted of 9 people -- 6 attorneys and 3 stenographers -- to carry out those responsibilities.
Many of these issues arose from an effort to balance competing interests related to westward expansion (e.g., preservation of natural spaces, resource disputes on public and tribal lands, balancing private and public property rights, and other such issues).
Our numbers grew over the course of the 20th Century to reflect our growing responsibilities under emerging environmental and natural resources laws in the U.S.
Our litigation responsibilities at present are broad and include:
Enforcing the nation’s civil and criminal pollution-control laws,
Defending environmental challenges to federal agency programs and activities,
Representing the United States in matters concerning the stewardship of the nation’s natural resources and public lands,
Acquiring real property,
Bringing and defending cases under the wildlife protection statutes, and
Litigating cases concerning the resources and rights of Indian tribes and their members.
Fiscal year 2018 – extending from October 1, 2017, through September 30, 2018 – was a successful year for the Division’s enforcement program. ENRD obtained over $3.2 billion in injunctive relief, over $100 million in costs and over $54 million in civil penalties. I personally negotiated the final stages of a more than one-half billion dollar case for auto-emissions cheating against Fiat Chrysler late last year. ENRD also achieved criminal convictions of 47 defendants in 31 cases. We secured criminal penalties totaling $48 million, and confinement totaling 65 years for 70 individuals.
I think it is fair to say that, in this Administration, we are seeing a reinvigoration of the ideals that are part of the fabric of the United States: individual liberty, respect for private property rights, prioritizing enforcement against cheating and malum in se (evil in itself) actions, not just penalizing technical violations, valuing the role of state and local governments, advancing the ability of people to be self-reliant and economically productive, and wisely using our abundant natural resources.
Much of our litigation directly supports the policy priorities of the Administration, as implemented by federal agencies.
For example, we support the Administration’s efforts to secure our Nation’s borders, and are assisting our client agencies in implementing the President’s January 2017 Executive Order directing the Secretary of Homeland Security to “immediately plan, design and construct” a “physical wall” or “barrier” along the border between Mexico and the United States.
The Division is aiding in the acquisition of land for the wall, fencing, towers, roads, infrastructure, and agent housing (along with developing associated title and appraisal work), as well as addressing legal challenges under a host of environmental, procedural, and inverse takings statutes. The Division is supporting the acquisition of land for the project by ensuring that proper survey work and title review is completed, as well as by ensuring negotiations and consultations are conducted with landowners prior to acquisition through condemnation. This is because the Fifth Amendment to our Constitution protects all people against unlawful takings of private property without due process of law.
ENRD is also providing expert appraisal review services in connection with land acquisitions to ensure uniformity in the valuation of the land. This ensures uniform results to satisfy the mandate of the U.S. Constitution for just compensation in the form of market value fair to both the landowners and the citizens who must pay for this land.
This Administration is also committed to course corrections in key areas within the purview of our Division. The President has directed new approaches to reduce regulatory burdens, especially for agriculture, energy development, infrastructure projects, and manufacturing; and to promote development of America’s energy resources, while also protecting the environment.
The Division is—and will continue to be—key to successful implementation of these new directions for the U.S. The Division’s efforts have included managing a number of existing cases challenging agency regulations now under review in this Administration.
ENRD’s work supports our nation’s investment in infrastructure development and energy security. Rebuilding the nation’s infrastructure is a critical part of the President’s agenda to promote job creation and grow the U.S. economy.
ENRD also continues to assist client agencies as they advance the goals of the President’s March 2017 Executive Order “Promoting Energy Independence and Economic Growth.”
Our Division vigorously defends the President’s energy agenda in the courts, which includes defending the Administration’s approvals for energy projects, from coast-to-coast. This includes representing the United States in lawsuits challenging coal mining projects, oil and gas development on public lands, offshore energy production, and many other vital energy decisions by the Administration.
In our work, we aim to avoid unnecessary litigation, support the integrity of the administrative process, and conserve the resources of the courts, the agencies, and other litigants. In doing so, we preserve the rightful prerogative of the new Administration to review the costs and benefits of regulations and to chart a new direction where appropriate.
Now that I have given you a flavor of the thousands of cases ENRD handles each year, I want to focus on our work in the enforcement arena.
ENRD is involved in many ways in wildlife protection in the U.S. and abroad. One area of increased attention and litigation for the Division has been the wide ranging efforts to stem wildlife trafficking.
With estimated annual revenues of $10 billion or more, wildlife trafficking is one of the most profitable types of transnational organized crime, behind only drugs, counterfeiting and human trafficking. In the past decade, wildlife trafficking has escalated into an international crisis.
ENRD implements a robust program of international activities that advances the goals of President Trump’s Executive Order on Enforcing Federal Law with Respect to Transnational Criminal Organizations and Preventing International Trafficking (Feb. 9, 2017).
Our prosecutors bring cases involving wildlife trafficking, and other transnational environmental crimes, in order to thwart criminal organizations and persons engaged in illicit activities that present a danger to public safety and national security. Illegal trade at the scale seen in wildlife trafficking threatens security, hinders sustainable economic development and undermines the rule of law.
In addition to prosecuting these cases, Division attorneys provide critical training for law enforcement partners in other countries to help them work more effectively with us in investigating and prosecuting transnational environmental crimes. Attorneys from the Division also participate in negotiation and implementation of trade agreements and international environmental agreements, to ensure they promote effective environmental enforcement.
Division attorneys also provide leadership in international law enforcement organizations. For example, we work with groups such as the International Criminal Police Organization (INTERPOL) that promote international efforts to combat transnational criminal organizations. ENRD also represents the Department on the Presidential Task Force on Wildlife Trafficking, which the Department co-chairs along with the Departments of State and the Interior.
Over the past year we continued to work closely with the other federal agencies on the Task Force to implement the requirements of the Eliminate, Neutralize, and Disrupt (or END) Wildlife Trafficking Act and develop new reports to Congress that analyze global challenges to combatting wildlife trafficking and provide a new, country-specific focus to our ongoing efforts. We also supported the Office of the Attorney General to prepare the Attorney General at the time to lead the United States delegation and deliver the statement of the United States at the October 2018 London Conference on the Illegal Wildlife Trade. Later that month, we took the lead role in presenting the Attorney General’s Forum on Combating Poaching and Wildlife Trafficking, which assembled governmental and non-governmental leaders to assess the challenges and potential responses to this form of transnational crime.
Through the Division’s capacity-building efforts, our attorneys work to help law enforcement partners, particularly in countries where illegal poaching of wildlife and deforestation occur, to strengthen their evidence-gathering abilities and improve their judicial and prosecutorial effectiveness. These training programs also foster positive relationships with prosecutorial counterparts, thereby increasing the Division’s ability to prosecute under U.S. criminal laws such as the Lacey Act and Endangered Species Act.
In fiscal year 2018 [October 1, 2017, through September 30, 2018], Division attorneys provided training on combatting wildlife trafficking and associated financial crimes for prosecutors, magistrates, and judges – often at the request of the State Department, other federal agencies or the United Nations Office on Drugs and Crime – in countries across the globe, including Africa, Asia and Latin America. This included prosecutor training in Malaysia that coincided with participation in the Association of Southeast Asian Nations (ASEAN) Wildlife Conference. We also supported the Justice Department’s placement in Laos of an ENRD prosecutor as a Resident Legal Advisor focused on wildlife trafficking in the Southeast Asia region.
In addition to our wildlife trafficking work, prosecutors from the Division now lead annual pollution enforcement workshops at the State Department’s International Law Enforcement Academies (ILEAs) in Thailand, Hungary, El Salvador and Botswana. Division attorneys also provided training for vessel pollution prosecutions in Singapore and South Africa.
Of course, as important as this work is, it comprises only a very small part of our environmental enforcement work. Our primary focus, as you might imagine, is on domestic enforcement of U.S. environmental laws, so I will turn to that now.
The Division plays a critical role enforcing federal environmental laws, both criminally and civilly. These include the Clean Air Act (CAA), the Clean Water Act (CWA), and the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA or Superfund Law), to name just a few. The main federal agencies the Division represents in these areas are the Environmental Protection Agency (EPA), the U.S. Army Corps of Engineers (Corps), and the U.S. Coast Guard (USCG).
The Division’s attorneys help to keep our nation’s waters clean by enforcing the CWA, which is the primary federal statute protecting the quality of the nation’s water, and regulates pollution from both industrial and municipal facilities. Together with the Oil Pollution Act, the CWA also prohibits oil spills.
The Division also requires responsible parties to clean up hazardous waste and to reimburse the government for cleanups already conducted by the United States by filing federal lawsuits under CERCLA, or the Superfund Law.
The CERCLA program operates on the principle that the cost of cleaning up a site should fall not on taxpayers, but on those responsible for the contamination. Our CERCLA litigation primarily deals with contamination left behind by past operations.
But sometimes an agency of the federal government, such as the Defense Department or the Energy Department, is one of the entities responsible for some portion of the contamination at a site. ENRD lawyers seek to limit the liability of the U.S. in such cases to only that portion of the contamination caused by the federal government, and to protect the taxpayers from unwarranted expenditures, by ensuring that other contributors pay their fair share. In that situation, Division attorneys must work together to defend the interests of the United States as a whole.
ENRD enforces the Clean Air Act, which is the primary federal statute protecting the quality of the nation’s air. The pollutants regulated under the CAA have numerous adverse effects on human health, including severe respiratory and cardiovascular impacts and premature death, and are significant contributors to acid rain, smog, and haze.
Now I would like to illustrate several of the topics I have touched upon with a recent example of a significant CAA enforcement case in which we partnered with a state to secure both penalties and injunctive relief.
On January 10, 2019, the United States and the State of California announced a settlement with Fiat Chrysler resolving alleged violations of the CAA and California law.
The United States’ case against the automaker — In Re: Chrysler-Dodge-Jeep Ecodiesel Marketing, Sales Practices, and Products Liability Litigation (N.D. Cal.) — began in May 2017, when the Division filed a civil complaint alleging that the company had used “defeat devices” to cheat on emissions tests.
A defeat device is something — here software — that reduces the effectiveness of the emission control system during normal on-road driving conditions. Defeat devices detect when a vehicle is being tested for compliance with emissions standards and fully activate the vehicle’s emissions controls. During normal driving conditions, however, defeat-device software renders certain emission control systems completely or partially inoperative, greatly increasing the vehicle’s emissions.
The United States’ complaint alleged that Fiat Chrysler equipped over 100,000 3.0-liter “EcoDiesel” Ram 1500 and Jeep Grand Cherokee vehicles in model years 2014 through 2016 with illegal defeat devices. EPA discovered the defeat devices during enhanced vehicle testing at the National Vehicle and Fuel Emissions Laboratory.
If the settlement agreement is approved by the court, Fiat Chrysler will implement a recall program to repair noncompliant diesel vehicles. To offset the air pollution emitted by the non-compliant vehicles, the settlement requires Fiat Chrysler to work with one or more vendors of aftermarket catalytic converters and improve the efficiency of 200,000 converters sold in the 47 States that do not already require the use of the California-mandated high-efficiency gasoline-vehicle catalysts.
The mitigation program under the joint U.S. and California settlement is expected to fully mitigate nitrogen oxide (NOx) emissions caused by Fiat Chrysler’s violations outside of California. The recall and mitigation project required by the joint U.S. and California settlement is estimated to cost approximately $185 million. (The State of California has a separate settlement with Fiat Chrysler with a separate mitigation program that will fully address excess NOx from affected vehicles in California. That mitigation project is expected to cost $19 million.) To resolve the alleged violations of the CAA, Fiat Chrysler will pay a penalty of $305 million. All told, as I had noted before, the total value of federal relief exceeds $500 million.
As you can see, the work of ENRD has grown in ways that no one would have imagined in 1909 when the Attorney General first established the Division. I have offered you but a few examples of the breadth of ENRD’s work.
Thank you again for inviting me to speak with you tonight. I welcome your questions.
Ada Man Pleads Guilty to Possession of AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Rhett Steven Ragland, age 23, of Ada, Oklahoma, entered a guilty plea to Felon In Possession Of Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleges that on or about October 30, 2018, in the Eastern District of Oklahoma the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, ammunition, to-wit: Seven (7) rounds of Giulio, Fiocchi and Lecco brand 9mm Luger caliber ammunition, which had been shipped and transported in interstate and foreign commerce.
The charges arose from an investigation by the Pontotoc County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Sarah McAmis represented the United States.
18 May 2019
Ohio Man Sentenced for Tampering with EvidenceRead the Press Release
ALBANY, NEW YORK – John L. Brooks, age 41, of Akron, Ohio, was sentenced yesterday to 21 months in prison for tampering with evidence.
The announcement was made by United States Attorney Grant C. Jaquith and John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Brooks was convicted of tampering with evidence after a 4-day jury trial in January 2019. The evidence presented at trial showed that Brooks traveled from Akron to Albany on April 29, and retrieved a bag containing eight firearms that he had previously purchased on March 18 and 19, 2017 and provided to individuals from New York. Brooks then returned to Akron with those firearms. After hearing evidence that Brooks did so only days after one of the individuals from New York attended an interview with a federal agent, and Brooks received several calls from phone numbers with a 518 area code, as well as other evidence, the jury found that Brooks attempted to conceal the firearms with the intent to impair their availability for use in a grand jury investigation.
United States District Judge Mae A. D’Agostino also sentenced Brooks to 2 years of supervised release, to begin following his term of imprisonment.
The case was investigated by the ATF and prosecuted by Assistant U.S. Attorney Alicia Giglio Suarez.
17 May 2019
“Southside” Gang Member Pleads Guilty to Newburgh Club Murder in Connection with Racketeering ConspiracyRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that TROY YOUNG, a/k/a “Hollywood,” pled guilty today to involvement in a racketeering conspiracy in connection with his membership in “Southside,” a violent street gang that operated in the City of Newburgh, New York. YOUNG also pled guilty to murdering Gevontay Owens-Grant, a gang rival, after an altercation broke out at a Valentine’s Day-themed party at a Newburgh club. YOUNG and others were also injured during the shooting. YOUNG faces a maximum term of life in prison and will be sentenced before United States District Judge Cathy Seibel later this year.
U.S. Attorney Geoffrey S. Berman said: “Troy Young has admitted to shooting at gang rivals during a crowded Valentine’s Day party and to killing 21-year-old Gevontay Owens-Grant. This murder demonstrated a disregard for the value of human life that epitomizes these senseless gang rivalries. Young now faces a significant term in prison for this shooting, the type of tragic event that happens too often on our city streets.”
According to the Indictment and other documents filed in the case, as well as statements made during the plea proceedings:
From at least 2014 through June 2017, the Southside gang was a criminal enterprise centered in and around the intersection of South Street and Chambers Street in an area of Newburgh also known as the “Southside.” In order to gain funds for the gang, protect the gang’s territory, and promote the gang’s standing, members of Southside engaged in, among other things, narcotics trafficking, robbery, and acts involving murder. To that end, Southside members sold heroin, crack cocaine, and marijuana in the gang’s territory, promoted their gang affiliation on social media sites such as Facebook, possessed firearms, and engaged in shootings as part of their gang membership.
YOUNG was a member of Southside. On February 12, 2017, YOUNG, aided and abetted by others, murdered Owens-Grant, who was from another part of Newburgh, after a fight broke out during a party at a club. Multiple other people fired guns inside and outside the club that night, and several others were injured, including YOUNG, who was partially paralyzed after being shot the same night he killed Owens-Grant.
* * *
YOUNG, 24, of Newburgh, was arrested in January 2018 as a result of a multi-year investigation by the FBI’s Hudson Valley Safe Streets Task Force and the City of Newburgh Police Department into gang violence in Newburgh. On June 14, 2017, Indictment 17 Cr. 364 (CS) was unsealed, charging 20 members and associates of Southside with racketeering conspiracy, narcotics conspiracy, and firearms charges. Superseding Indictment S1 17 Cr. 364 (CS), unsealed in January of 2018, charged YOUNG, added additional firearms charges against certain defendants, and charged four defendants with committing two separate murders as part of their involvement in Southside, including the murder of Owens-Grant. To date, 18 defendants have pled guilty.
Mr. Berman praised the outstanding investigative work of the FBI, the Bureau of Alcohol, Firearms, Tobacco, and Explosives, and the City of Newburgh Police Department. Mr. Berman thanked the Orange County District Attorney’s Office for its invaluable ongoing assistance in the case. Mr. Berman also thanked the Town of Newburgh Police Department, the New York State Police, the Orange County Sheriff’s Department, the Town of New Windsor Police Department, and the New York Department of Corrections and Community Supervision for their assistance in the case.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Jacqueline Kelly, Allison Nichols, Maurene Comey, and Samuel Raymond are in charge of the prosecution.
Woman Sentenced to Prison for Drug TraffickingRead the Press Release
ALEXANDRIA, Va. – A Woodbridge woman was sentenced today to five years in prison for buying and selling wholesale quantities of high-grade methamphetamine.
According to court documents, Nina Booher, 36, bought pounds of methamphetamine for redistribution to her customers in northern Virginia. Beginning in early 2018, Booher was buying pounds of methamphetamine every two or three weeks from her boyfriend and co-conspirator, Matthew Colby Cochran. Then, when she learned the identity of her boyfriend’s supplier, who was based in New York, she started buying methamphetamine directly from the supplier.
In November 2018, law enforcement searched Booher’s home in Woodbridge and found more than 200 grams of methamphetamine, marijuana, heroin, smoking devices, a digital scale, packaging materials, and thousands of dollars in cash.
Earlier this month, Cochran was sentenced to three years in prison for his involvement in the conspiracy.
This matter was investigated by the Washington Field Office’s Safe Streets/HIDTA Task Force – Northern Virginia which is composed of agents and detectives from Fairfax County, Prince William County Police, Loudoun County Sherriff’s Office, Leesburg Police, Vienna Police, Alexandria City Police, and Herndon Police.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Charles Dayoub, Acting Special Agent in Charge, Criminal Division, FBI Washington Field Office, and Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorney Katherine E. Rumbaugh 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. 1:19-cr-44.
Winter Garden Convicted Felon Pleads Guilty to Drug and Firearms ChargesRead the Press Release
Orlando, FL – Kenneth Bernard Smith (54, Winter Garden) pleaded guilty today to two counts of possessing ammunition and a firearm as a convicted felon and two counts of distributing cocaine and heroin. He faces a mandatory minimum penalty of 15 years, and up to life, in federal prison. Smith is scheduled to be sentenced in August 2019.
According to court documents, on February 8, 2019, deputies from the Orange County Sherriff’s Office responded to a call regarding a fatal drug overdose that had occurred in an apartment in Winter Garden, where Smith was the sole resident. The deputies found materials used for drug distribution as well as over 550 rounds of ammunition in the apartment. At the time, Smith had numerous prior felony convictions, including three felony convictions for drug distribution.
On February 20, 2019, law enforcement officers conducted an undercover purchase of cocaine from Smith. On March 6, 2019, officers executed a search warrant at Smith’s home and seized cocaine and heroin, packaged for distribution, along with a loaded 10 mm firearm.
This case was investigated by the Orange County Sherriff’s Office, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Dana E. Hill.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.