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17 May 2019
6 Charged with Running Middletown Narcotics RingRead the Press Release
CINCINNATI – A grand jury has indicted six defendants in an alleged Middletown narcotics conspiracy.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Todd A. Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Middletown Police Chief Rodney Muterspaw, and officials with the Butler County Sheriff's Office, Warren County Drug Task Force, ATF, Homeland Security Investigations and the FBI Safe Street Task Force announced the charges that were unsealed today.
According to the indictment, the six individuals are part of a group that calls itself “All State” and is responsible for distributing more than 400 grams of fentanyl and more than 100 grams of heroin in Middletown.
Those charged include:
Name
Also Known As
Benwan A. Edwards
Marqui D. L. Conley
Key Man
Joseph L. Singletary, Jr.
Joker
Will D. Owens V
Hailey E. P. Meeks
Tyrese A. Robinson
Tye, Moneybags
It is alleged that Edwards and Conley served in leadership roles in the criminal organization. The other defendants allegedly served as sub-distributors and couriers of the drugs, and at times, as the group’s “enforcers.”
The indictment details more than 40 alleged specific drug transactions between October 2018 and May 2019. Each of the transactions included $400 to $2,600 in narcotics sales.
“The indictment alleges not only a narcotics conspiracy, but a violent one,” U.S. Attorney Glassman said. “According to the indictment’s allegations, certain co-conspirators used and brandished firearms to facilitate their drug trafficking business, intimidate rivals, and punish anyone who stood in their way.”
In January 2019, Edwards, Conley and another person allegedly discussed a murder-for-hire during a drug transaction.
In the same month, Edwards allegedly stated, “I got to this level from staying low and getting n***** knocked the f*** off for stepping in my lane.
The 38-count indictment charges each of the defendants with participating in a narcotics conspiracy. Other charges include possessing and distributing narcotics, as well as using a firearm during a drug trafficking crime and possessing a firearm as a prohibited person.
The narcotics conspiracy is punishable by 10 years up to life in prison.
The government seeks to forfeit 19 vehicles – including a Maserati, Jaguar, Mercedes Benz and BMW – at least nine firearms and nearly $12,000 in cash in this case.
U.S. Attorney Glassman commended the cooperative investigation of this case by the FBI, Middletown Police, Butler County Sheriff's Office, Warren County Drug Task Force, ATF, Homeland Security Investigations and the FBI Safe Street Task Force, as well as Assistant United States Attorney Karl P. Kadon, who is prosecuting the case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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17 Indicted in Multi-State Cocaine Distribution Scheme Conducted through the U.S. MailRead the Press Release
PITTSBURGH – Seventeen people in four states have been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics, money laundering and postal laws, United States Attorney Scott W. Brady announced today. The three separate, but related, indictments were returned on May 8, 2019 and unsealed this week.
"This is one of the largest cocaine distribution rings in western Pennsylvania," said U.S. Attorney Brady. "Together with our state and local law enforcement partners, we conducted an extensive investigation of this multi-state drug distribution network. My office will continue the fight to dismantle drug trafficking organizations and hold those who pollute our communities with drugs accountable."
"This drug distribution organization threatened the safety of the people of western Pennsylvania and beyond by peddling illegal drugs in their communities," said Pennsylvania Attorney General Josh Shapiro. "I’m grateful for the strong collaboration between local, state, and federal law enforcement to break up this criminal network. We will continue working together to get these poisons off our streets and hold those who push them into our neighborhoods accountable."
"This was an investigation that started at the local level and we quickly realized we needed the help of the U.S. Attorney’s Office and the Drug Enforcement Administration," said Lawrence County District Attorney Joshua Lamancusa. "Through the cooperation of local, state and federal agencies, we were able to make a substantial impact on drug trafficking in Lawrence County."
According to U.S. Attorney Brady, the indictments follow an 18-month investigation of a multi-state drug distribution network led by Hector Forbes, in which cocaine was sold throughout the country, including in New Castle and Pittsburgh, Pennsylvania. The group used the mail to transport the cocaine and to send cash back to Hector Forbes and Marcia Cunningham.
An eight-count indictment returned on May 8, names:
• Timothy Bonner, 38, of Pittsburgh, Pennsylvania;
• Garfield Campbell, aka "Sean Grant," 44, of Pittsburgh, Pennsylvania;
• Garfield Campbell, Jr., aka "Theo Campbell," 22, of Pittsburgh, Pennsylvania;
• Marcia Cunningham, aka "Elaine Ambersley," "Marcia Headley," 51, of Plantation, Florida;
• Hector Forbes, aka "Michael Ambersley," "Troy Williams," "Desmond Roreric," "Hextor Obian," "Hector Obytan," "Haneen Arrie," "Warren Blake," "Sperm," "Henry," 45, of Pomona, California;
• Robert Forbes, aka "Daniel Kirkpatrick," "Joe," 44, of Pittsburgh, Pennsylvania; and
• Anthony Portis, Jr., 36, of Pittsburgh, Pennsylvania, as defendants.
Cunningham and Hector Forbes were arrested in Florida on May 10, 2019. The remaining defendants were arrested in Lawrence and Allegheny counties on Monday, May 13, 2019. Garfield Campbell and Garfield Campbell, Jr. are father and son. Hector Forbes and Robert Forbes are brothers.
According to Count 1 of the Indictment, from in and around April 2017, and continuing thereafter to in and around April 2019, Hector Forbes participated in a continuing criminal enterprise involved in cocaine trafficking. That statute is often referred to as the Drug Kingpin Statute, and calls for a mandatory minimum sentence of 20 years of incarceration upon conviction.
At Count 2, the Indictment charges all defendants with conspiring to distribute and possess with intent to distribute 5 kilograms or more of cocaine, a Schedule II controlled substance from in and April 2017, and continuing thereafter to in and around April 2019, in the Western District of Pennsylvania and elsewhere. That statute calls for a mandatory minimum sentence of 10 years of incarceration upon conviction.
Garfield Campbell is charged at Count 3 with attempting to possess with intent to distribute 500 grams or more of cocaine, a Schedule II controlled substance, in and around June 2017. That statute calls for a mandatory minimum sentence of five years of incarceration upon conviction.
Timothy Bonner is charged at Counts 4 and 5 with possessing with intent to distribute 500 grams or more of cocaine, a Schedule II controlled substance, and less than 50 kilograms of marijuana, a Schedule I controlled substance, on or about February 11, 2019.
Garfield Campbell, Marcia Cunningham, Hector Forbes and Robert Forbes are charged at Count 6 with conspiring to commit money laundering, from in and April 2017, and continuing thereafter to in and around April 2019; and at Count Seven with interstate travel in aid of racketeering.
Marcia Cunningham and Hector Forbes are charged at Count 8 with using false names and addresses to conduct an unlawful business by means of the postal service, from in and April 2017, and continuing thereafter to in and around April 2019.
The law provides for a maximum total sentence of life in prison for all of these defendants.
A second indictment, returned on May 8, and containing 24 counts, names:
• Fawn Cox, 40, of New Castle, Pennsylvania;
• Wesley Cox aka "Michael Deshawn Carter," 37, of New Castle, Pennsylvania;
• Michael Cox, 48, of 811 High Street, of New Castle, Pennsylvania;
• Ronny Daniels, Jr. aka "Moocher," 36, of New Castle, Pennsylvania;
• Sergio Murillo, 45, of Detroit, Michigan;
• Eva Scialabba, 32, of Beaver Falls, Pennsylvania;
• Dondi Searcy, Jr. aka "Little Dondi," 34, of New Castle, Pennsylvania;
• Quantel Searcy, 45, of New Castle, Pennsylvania; and
• Christopher Shaner, 24, of New Castle, Pennsylvania, as defendants.
All of the defendants were arrested on Monday, May 13, 2019, except for Wesley Cox and Sergio Murillo who were already in custody. Fawn, Wesley and Michael Cox are siblings. Dondi Searcy, Jr. and Quantel Searcy are cousins.
According to the Indictment, from in and around 2017, and continuing thereafter to in and around May 2019, in the Western District of Pennsylvania and elsewhere, defendants Fawn Cox, Wesley Cox, Ronny Daniels, Jr., Sergio Murillo, Eva Scialabba, Dondi Searcy, Jr., Quantel Searcy and Christopher Shaner conspired with each other and others to distribute and possess with intent to distribute five kilograms or more of cocaine and 280 grams or more of cocaine base, in the form commonly known as crack, each a Schedule II controlled substance. That statute carries with it a mandatory minimum sentence of 10 years of incarceration.
Counts 2, 4, 5, 6, 7, 8, 10, 11, 12, 17, 18, 19, 20, 22, 23 and 24 of the Indictment charge Fawn Cox, Wesley Cox, Ronny Daniels, Jr., Dondi Searcy, Jr. and Quantel Searcy with distributing and possessing with the intent to distribute a quantity of cocaine, a Schedule II controlled substance, on various dates from February 2017 to April 2019.
Wesley Cox is further charged at Counts 3 and 9 with distributing and possession with intent to distribute crack cocaine and fentanyl, each a Schedule II controlled substance, on or about December 8, 2017 and February 28, 2018, respectively.
Count 13 charges Wesley Cox and Michael Cox with conspiring to commit money laundering from in and around 2017, and continuing thereafter to in and around May 2019.
Counts 14, 15 and 16 charge Ronny Daniels, Jr. with distributing and possessing with intent to distribute crack cocaine, on or about January 10, 2018, January 31, 2018, May 1, 2018, respectively.
Count 21 charges Sergio Murillo and Dondi Searcy, Jr. with attempting to distribute and possess with intent to distribute crack cocaine, on or about September 18, 2018.
The law provides for a maximum total sentence of life in prison for all of the defendants except for Michael Cox, who faces a maximum total sentence of twenty years of incarceration.
Finally, a third indictment returned on May 8, and containing two counts names:
• Rondell Palmer, 47, of Pontiac, Michigan, as the sole defendant. Palmer was already in custody.
According to the Indictment, from in and around August 2018, and continuing thereafter to in and around September 2018, Palmer conspired with others to distribute and possess with intent to distribute 500 grams or more of cocaine, a Schedule II controlled substance. Additionally, on or about September 17, 2018, Palmer attempted to distribute and possess with intent to distribute 500 grams or more of cocaine, a Schedule II controlled substance.
The law provides for a maximum total sentence of not less than five years to a maximum of 40 years in prison, a fine not to exceed $5,000,000 or both.
Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant(s).
Assistant United States Attorneys Brendan T. Conway and Marnie Sheehan-Balchon are prosecuting this case on behalf of the government.
A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation leading to the Indictment in this case. The task force is headed by the Drug Enforcement Administration and is comprised of members drawn from the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lawrence County Drug Task Force, Pennsylvania Office of Attorney General, Borough of Baldwin Police Department, McKees Rocks Police Department, Munhall Police Department, Allegheny County Sheriff’s Office, Pittsburgh Bureau of Police, and the Pennsylvania State Police.
In this case, the Lawrence County Drug Task Force, the Lawrence County District Attorney’s Special Investigations Unit, the New Castle Police Department and the Union Township Police Department provided significant assistance in the investigation.
The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
16 May 2019
“Sovereign Citizen” Sentenced to 10 Years in Federal Prison for Fraud SchemeRead the Press Release
Columbia, South Carolina - United States Attorney Sherri A. Lydon announced today that Ronald Allen Wright, age 53, of Columbia, was sentenced to 10 years in federal prison after a jury found him guilty of tax fraud and conspiracy to commit wire fraud. His convictions stem from the false and meritless “sovereign citizen” ideology, whereby individuals argue that they are not subject to the laws of the United States of America and that debts can be discharged by accessing secret government bank accounts.
According to information presented during his trial and sentencing, Wright was the owner of “Money Solutions,” a Columbia-based financial services business. Between 2013 and 2015, Wright targeted multiple individuals, some elderly, who were experiencing financial difficulty. Wright especially pursued those going through foreclosure on their homes and contacted many of them through churches and other faith-based organizations. Wright claimed that he knew a method whereby individuals could eradicate their debts by making financial claims against their birth certificates. Wright told his customers that these monetary claims against the birth certificates could then be used to satisfy the customer’s debts.
According to evidence presented at trial, Wright attempted to fraudulently discharge nearly $15 million of consumer debt. Despite Wright’s claimed belief in this payment system, he did not accept this form of payment at Money Solutions, and instead charged individuals over $140,000 of actual currency to participate in his bogus scheme. Wright also argued that his so-called “sovereign” status exempted him from the payment of income taxes.
“No one is exempt from the Rule of Law in this country,” said U.S. Attorney Lydon. “Mr. Wright’s sentence holds him accountable for years of defrauding some of the most vulnerable members of his community and taking advantage of those who were desperate for help.”
"We continue to see the negative consequences of participating in fraudulent debt elimination tactics," said Matthew D. Line, Special Agent in Charge of IRS Criminal Investigation Charlotte Field Office. "Today's sentence is a positive message to honest taxpayers and further exhibits that the IRS and U.S. Attorney’s Office are duty bound to protect the integrity of the U.S. tax administration system, and to make sure everyone complies with their tax obligations."
The case was investigated primarily by the Federal Bureau of Investigation and the Internal Revenue Service. It was prosecuted by Assistant United States Attorney T. DeWayne Pearson of the Columbia office.
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Worcester Man and Dominican National Indicted for Distributing Fentanyl and HeroinRead the Press Release
BOSTON – A Worcester man and a Dominican national were charged today in federal court in Worcester for distributing fentanyl and heroin.
Albeiro Gomez, 54, of Worcester, and Erotides Mendez, 50, a Dominican national previously residing in New York City, were indicted on one count of conspiring to distribute heroin and more than 40 grams of heroin and one count of distributing heroin and more than 40 grams of fentanyl. Gomez was also charged with one count of distributing heroin and fentanyl and one count of possessing cocaine with intent to distribute. Mendez was also charged with one count of possessing heroin and more than 40 grams of fentanyl with intent to distribute. Gomez and Mendez were each arrested in December 2018. Mendez has remained in custody since that time.
According to court documents, Gomez distributed heroin and fentanyl in and around Worcester and obtained the drugs from various sources, including an individual residing in New York City. Mendez was actively involved in the acquisition, transportation, and distribution of heroin and fentanyl in and around New York City and Worcester.
The charges involving more than 40 grams of fentanyl provide for a mandatory minimum sentence of five years and up to 40 years in prison, a minimum of four years and up to a lifetime of supervised release, and a fine of $5 million. Each additional drug charge 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. Mendez will be subject to deportation proceedings upon completion of any sentence imposed. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. Valuable assistance was provided by the Massachusetts Attorney General’s Office and the Massachusetts State Police. Assistant U.S. Attorneys Bill Abely and John Mulcahy of Lelling’s Criminal Division 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.
Woman Sentenced to 30 Years for Medicaid Fraud Perpetrated from PrisonRead the Press Release
Just three years into serving an eight-year sentence for health care fraud, Alexis C. Norman was sentenced yesterday to another 30 years for a second health care fraud scheme, some of it committed while she was behind bars, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox. Her new sentence will run concurrent to her original one, starting this week.
In December, Ms. Norman pleaded guilty to one count of conspiracy to commit health care fraud and four counts of health care fraud – three committed before she was sentenced in the prior case and one committed while she was behind bars.
According to plea papers, Ms. Norman approached co-conspirator Karen Jones in February 2015 with a business idea she hoped could help pay legal fees from her previous case. Ms. Jones agreed to help Ms. Norman by listing herself as the administrator of Janus Children Services, Inc., opening a bank account in Janus’ name, and leasing office space for Janus in Tyler, Texas.
The company never occupied the office space, never hired any employees, and never provided any services.
Together, Ms. Norman and Ms. Jones used stolen identities of licensed counselors and Medicaid recipients to submit more than $810,000 in fraudulent claims to Medicaid, and were paid more than $427,000.
After Medicaid paid Janus for the false claims, Ms. Norman directed Jones to withdraw cash from the Janus bank account, always in amounts less than $10,000. Roughly once a month from April 2015 to February 2016, the pair would meet at a restaurant. When they finished their meal, Ms. Jones – who carried the cash in a gift bag – would leave the package on a chair for Ms. Norman.
Following Ms. Norman’s incarceration in April 2016, Ms. Jones agreed to help Ms. Norman submit additional fraudulent claims through a second company, Therapeutic Outreach Services Inc.
Ms. Jones helped Ms. Norman lease office space for Therapeutic in Waco, Texas, and visited Ms. Norman in prison on multiple occasions to gather billing instructions and identifying information of counselors and Medicaid clients. Ms. Norman concealed the information on a piece of paper hidden in her shoe, which she retrieved during Ms. Jones’ visits.
Like Janus, Therapeutic never operated out of the Waco location, had no employees, and provided no services.
The U.S. Department of Health and Human Services – Office of Inspector General and the Texas Attorney General’s Medicaid Fraud Control Unit conducted the investigation. Assistant U.S. Attorney Douglas Brasher and DOJ Trial Attorney Christina Liu are prosecuting the case.
Wilmington Gang Member Sentenced to More than 12 Years Following ATF Stash House Robbery Sting OperationRead the Press Release
RALEIGH — The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today, United States District Judge James C. Dever, III, sentenced Joseph Anthony Vaught, 29, of Wilmington to 150 months’ imprisonment, followed by 5 years of supervised release.
On January 22, 2019, VAUGHT pled guilty to charges of conspiring to distribute and possess with intent to distribute 500 grams or more of cocaine and possessing a firearm in furtherance of a drug trafficking crime
VAUGHT was the last of six men to be sentenced in this case. His five co-defendants have previously received sentences ranging from 60 to 240 months:
- On May 23, 2018, Eugene Telphia Grady, Jr., was sentenced to 60 months’ imprisonment and 6 years of supervised release, following his guilty plea to a charge of conspiring to distribute crack cocaine.
- On October 3, 2018, James Flowers was sentenced to 120 months’ imprisonment and 5 years of supervised release, following a guilty plea to conspiring to manufacture, distribute and possess cocaine and 28 grams or more of crack cocaine; manufacture, distribution, and possession with intent to distribute 28 grams or more of crack cocaine; and using and carrying a firearm in furtherance of a drug trafficking crime.
- Also on October 3, 2018, Sylvester Lorenzo Hooper, Jr., was sentenced to 204 months’ imprisonment and 8 years of supervised release, following his guilty plea to conspiring to distribute 28 grams or more of crack cocaine; possession of a firearm by a convicted felon; and distribution of a quantity of crack cocaine.
- On February 20, 2019, Victor Dorm was sentenced to 240 months’ imprisonment and 5 years of supervised release following his guilty plea to conspiracy to distribute cocaine and 28 grams or more of crack cocaine; distribution of heroin; manufacture, distribution, and possession with intent to distribute 28 grams or more of cocaine base; using and carrying a firearm in furtherance of a drug trafficking crime; and possession of a firearm by a convicted felon.
- On April 16, 2018, Rufus Lamar Parker was sentenced to 78 months’ imprisonment and 3 years of supervised release, following a guilty plea to conspiring to distribute cocaine and six counts of distributing cocaine.
These convictions are the result of a long-term undercover operation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and officers of the Wilmington Police Department. Beginning in December 2016 and continuing until the federal indictment in August of 2017, ATF used a confidential informant, undercover agents, and a wired undercover apartment to investigate gang and drug activity in the Wilmington, North Carolina area. Victor Dorm, a principal target of the investigation, was a leader of a subset of the Bloods street gang. VAUGHT was a lower-ranking member of the gang.
During the course of the investigation, a confidential informant and undercover agents conducted roughly three-dozen controlled purchases of cocaine, crack cocaine, heroin, counterfeit currency, and multiple firearms from the six co-defendants and other targets. At the same time, ATF received reports that Dorm and other members of his gang were also conducting violent robberies. In response, ATF devised a scenario where Dorm and his crew were provided the opportunity to rob a fictitious cocaine stash house. Dorm was told that a Mexican drug cartel operated the stash house, where two armed men guarded eight to ten kilograms of cocaine. Dorm confirmed that his crew, including VAUGHT, was ready to commit the robbery.
On August 29, 2017, VAUGHT and co-defendant Sylvester Hooper met with the confidential informant to carry out the plan. The three men rode to a predetermined location to meet with the undercover agents that supposedly had access to the stash house. Both VAUGHT and Hooper were armed with handguns and reaffirmed that they wanted to rob the stash house. From there, Vaught and Hooper followed the undercover agents to a separate location, where they believed the agents would obtain additional cocaine to be delivered to the stash house. Instead, a team of federal agents executed a take-down, arresting the two men and seizing their firearms.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Since 2017 the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
That effort has been implemented through the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Wilmington Police Department, the New Hanover County Sheriff’s Office, and the Brunswick County Sheriff’s Office. Assistant United States Attorneys Jake D. Pugh represented the government.
Wilkes-Barre Man Sentenced to over Two Years’ Imprisonment for Possessing A Firearm in Connection with Drug TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Shakim Varick, age 37, of Wilkes-Barre, Pennsylvania, was sentenced on May 14, 2019, by U.S. District Court Judge Robert D. Mariani, to 30 months’ imprisonment to be followed by three years of supervised release for unlawfully possessing a firearm in furtherance of a drug trafficking crime.
According to United States Attorney David J. Freed, Varick previously admitted to possessing a firearm along with heroin and crack cocaine that he intended to distribute in the city of Wilkes-Barre in March 2015.
The matter was investigated by the Federal Bureau of Investigation and the Wilkes-Barre Police Department. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Wells Fargo Personal Banker Pleads Guilty to Money Laundering ChargesRead the Press Release
Assistant U. S. Attorney Blanca Quintero (619) 546-7118
NEWS RELEASE SUMMARY – May 16, 2019
SAN DIEGO – Luis Fernando Figueroa of Tijuana pleaded guilty in federal court today to money laundering charges, admitting that he worked with others to launder and transfer money to Mexico through accounts he opened up at Wells Fargo as a personal banker.
Figueroa’s arrest by the FBI in November 2018 was the last in a string of indictments and arrests tied to the international money laundering organization based in Tijuana, Mexico but operating primarily in San Diego. To date, eight former members and leaders of the organization have been arrested and charged in San Diego. Six of those arrested have pleaded guilty.
According to the indictment and other public records, the international money laundering organization laundered approximately $19.6 million dollars in narcotics proceeds on behalf of Mexican based drug trafficking organizations to include the Sinaloa Cartel between 2014 and 2016.
“We can’t allow our banks to be laundromats for cartel cash,” said U.S. Attorney Robert Brewer. “Bank employees who launder drug money for traffickers will face prosecution and prison.”
“Today’s conviction shows the dedication and depth of the FBI’s efforts to dismantle money laundering organizations,” said Suzanne Turner, FBI Acting Special Agent in Charge of the San Diego Field Office. “With our law enforcement partners, we will continue to strike at the heart of narcotics trafficking by pursuing each and every member of money laundering organizations who feed the proceeds of illegal and dangerous drug trafficking back to the cartels.”
According to court documents, the money laundering organization recruited individuals to serve as funnel account holders to open personal bank accounts at Wells Fargo Bank and other U.S. banks. Figueroa, as a personal banker with Wells Fargo, admitted in his plea agreement that he knowingly opened personal bank accounts at Wells Fargo for the funnel account holders, knowing that those personal accounts would be used to launder funds to Mexico.
Other members of the money laundering organization, known as couriers, travelled to Los Angeles, Chicago, Charlotte, Boston, New Jersey, and New York City to pick up bulk cash narcotics proceeds that ranged from thousands to hundreds of thousands of dollars in narcotics proceeds. The couriers made contact with individuals holding the bulk cash in private residences or public places such as parking lots and retail stores. The cash was typically concealed in shopping bags, duffel bags or shoeboxes.
Once in possession of the money, the couriers deposited the bulk cash in increments of $22,000 to $45,000 into the funnel bank accounts at Wells Fargo Bank and other U.S. banks controlled by the money laundering organization. The funds were then wire transferred from the funnel accounts to a series of Mexico based shell companies operated by the money laundering organization. Figueroa himself made multiple wire transfers from the funnel accounts knowing that the funds were from unlawful activity. Once in Mexico, the funds were transferred to representatives of the Sinaloa Cartel.
This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise of federal, state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking, and money laundering organizations and enterprises. This case is being prosecuted by Assistant U.S. Attorney Blanca Quintero.
DEFENDANT Case Number: 17CR-2203-WQH
Luis Fernando Figueroa Age: 30 Tijuana, Mexico
SUMMARY OF CHARGES
Money Laundering Conspiracy – Title 18, U.S.C., Section 1956(h)
Criminal Forfeiture (18 U.S.C. 981(a)(1)(C), 18 U.S.C. 982(a)(1), 28 U.S.C. 2461(c))
Maximum penalty: 20 years’ imprisonment and $500,000 fine
AGENCY
Federal Bureau of Investigation’s San Diego Cross Border Violence Task Force
IRS Criminal Investigations
Waterloo Man Sentenced to Nearly Two Years in Federal Prison for Possessing FirearmRead the Press Release
A Waterloo man who possessed a firearm in a car in Waterloo in June 2018 was sentenced May 15, 2019, to nearly two years in federal prison.
Dereon Equwan Davenport, age 20, from Waterloo, Iowa, received the prison term after a November 8, 2018, guilty plea to possessing a firearm as a drug user.
Evidence at sentencing showed that Davenport was driving a car in Waterloo on June 3, 3018, when the Waterloo Police Department stopped him for a traffic violation. When officers approached the vehicle, they smelled marijuana. During a search of the car, officers found an unloaded German .22 caliber revolver and marijuana in the front center console. At the time, Davenport was wanted in Winnebago County, Illinois, for probation violations arising out of an incident in which Davenport was found with dealer-quantity hydrocodone and other prescription pills at a school. There was also a warrant outstanding for Davenport’s arrest in Madison County, Illinois, after Davenport tried to punch his counselor with a closed fist and threatened to return to his health care provider’s place of business with a gun to “shoot the place up.”
Davenport was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Davenport was sentenced to 21 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing 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.
Davenport was 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 Tim Vavricek and investigated by the Federal Bureau of Investigation and the Waterloo Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-2055.
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Violent Felon Pleads Guilty Under Project EJECT to Robbery and ShootingRead the Press Release
Jackson, Miss. – Joshua Johnson, 25, of Jackson, pled guilty today before Senior U.S. District Judge Tom S. Lee to robbing a local business, brandishing a firearm during the commission of a violent crime, and being a convicted felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Christopher Freeze with the Federal Bureau of Investigation.
On November 21, 2018, around 3:00 a.m., officers with Jackson Police Department responded to an armed robbery at the Exxon Service Station at 4611 I-55 North in Jackson. Witnesses reported that a gunman, later identified as Joshua Johnson, entered the business, pointed a gun at the business clerks, and exited with approximately $374 in cash from the cash drawers and a customer. Johnson was apprehended by Jackson police officers a short time later.
Johnson will be sentenced on September 12, 2019, before Judge Lee and faces a maximum penalty of life in prison and a $250,000 fine.
The case was investigated by the Jackson Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Candace Mayberry.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Justice Expel Crime Together." PSN is bringing together all levels of law enforcement and the communities to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing our offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime..
United States Attorney Mike Stuart Recognizes National Peace Officers' Memorial Day at Annual Memorial Ceremony in HuntingtonRead the Press Release
CHARLESTON, W.Va. — United States Attorney Mike Stuart recognized the service and sacrifice of federal, state, and local police officers yesterday at the annual memorial ceremony hosted by the Huntington Police Department and the Fraternal Order of Police (FOP) Gold Star Lodge 65.
In October 1962, Congress enacted a joint resolution, which the President signed, declaring May 15th as National Peace Officers Memorial Day to honor law enforcement officers killed or disabled in the line of duty. The resolution also created National Police Week as an annual tribute to law enforcement service and sacrifice, which is being observed this year from Sunday, May 12 to Saturday, May 18, 2019. During Police Week, our nation celebrates the contributions of police officers from around the country, recognizing their hard work, dedication, loyalty and commitment in keeping our communities safe.
Last year, 158 law enforcement officers lost their lives in the line of duty. That is 158 too many. On May 13, 2019, Attorney General William Barr honored the men and women of law enforcement and their families at the National Law Enforcement Officers Memorial Fund Candlelight Vigil. The names of all fallen officers nationwide were formally dedicated on the National Law Enforcement Officers Memorial in Washington, DC, during the 31st Annual Candlelight Vigil. The Candlelight Vigil is one of many commemorative events that take place in the nation’s capital during National Police Week 2019.
“Thank you. Thank you for all you do every single day to keep us safe,” said United States Attorney Mike Stuart. “Since becoming United States Attorney, with every passing day I become more and more appreciative of the work performed by federal, state, and local law enforcement, who often face uncertain and dangerous situations without question and without expectation of thanks. The brave men and women in law enforcement work tirelessly to protect our families and our communities, and most often do so without commensurate pay. That is why I was extremely honored to be the guest speaker at Huntington’s annual law enforcement officers memorial service to remind our first responders that they have my unwavering support and appreciation. I will always back the blue.”
For more information about other National Police Week events, please visit www.policeweek.org.
Follow us on Twitter: @SDWVNews and @USAttyStuart
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U.S. Government Files Suit Against Webster Aviation CompanyRead the Press Release
HOUSTON – The U.S. Attorney’s Office for the Southern District of Texas has filed a civil penalty action against Michael D. King and his solely owned company, Ascent Aviation Solutions LLC, based in Webster, announced U.S. Attorney Ryan K. Patrick.
The suit seeks $154,000 in penalties against King and Ascent, alleging King has been operating Ascent as a direct air carrier without the necessary Federal Aviation Administration (FAA) certification. A direct air carrier is one who provides, or offers to provide, air transportation and who maintains control over the operational functions performed in providing the transportation. In order to operate as a direct air carrier, one must hold an FAA-issued certificate after demonstrating one meets the requisite requirements.
The complaint alleges Ascent uses what is known in the industry as a “dry lease” to circumvent the FAA requirements for direct air carriers. Under such lease, the lessee simply leases the equipment and is responsible for all aspects of operational control of the plane. The complaint alleges Ascent entered into a dry lease with a passenger who took at least 14 trips with Ascent.
The passenger did not have operational control of the plane, according to the complaint. He allegedly only paid Ascent to fly him from one city to another. The charges allege Ascent retained operational control of the aircraft – meaning Ascent, not the passenger, handled all flight logistics including hiring the pilots.
The complaint alleges pilots had not passed the competency checks or instrument proficiency checks required under the FAA regulations governing direct air carriers.
“Air safety and integrity in our system is important. When operators in any industry evade regulations by naming or classifying an act as something else, we will hold them accountable,” said Patrick. AAs a licensed pilot myself, I know firsthand the training and education required to operate in the air transport industry. This action ensures passengers are protected when they seek private charter travel and companies compete in a fair manner.”
The FAA conducted the investigation. Assistant U.S. Attorney Michelle Zingaro is handling the case.
Two Plead Guilty to Federal Firearm ChargesRead the Press Release
PROVIDENCE – Two Boston area men have pleaded guilty in federal court in Providence to federal firearm charges brought as the result of a Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and Woonsocket Police Department investigation into the theft of a firearm from a federally licensed firearms dealer in August 2018.
Charlie D. Vick, 30, of Everett, Mass., pleaded guilty in U.S. District Court on Wednesday to being a felon in possession of ammunition. Gabriel A. Rosario, 23, of Chelsea, Mass., pleaded guilty on March 7, 2019, to theft of a firearm from a licensed firearm dealer.
Vick and Rosario’s guilty pleas are announced by United States Attorney Aaron L. Weisman, Special Agent in Charge of the Boston Field Division of ATF Kelly D. Brady, and Woonsocket Police Chief Thomas Oates.
According to court documents and information presented to the Court, on August 31, 2018, Vick and Rosario traveled from Boston with the intent of buying ammunition from a Woonsocket, R.I., licensed firearm dealer, because Rhode Island state law does not require a background check for ammunition purchases, unlike Massachusetts. Once in the store, Vick asked the store manager for assistance with ammunition, and the manager accompanied Vick to an area of the store away from a countertop where a .22 caliber firearm was displayed. While Vick and the manager were away from the counter area, Rosario took the .22 caliber firearm from the countertop, placed it in his waistband, and left the store.
After Rosario left the store, the store manager and Vick returned to the counter area. Vick, a convicted felon, purchased three boxes of ammunition: a box of .38 caliber Smith & Wesson ammunition, a box of .38 special ammunition, and a box of Remington .45 caliber ammunition. After making the purchase, Vick left the store. Both Vick and Rosario are seen entering a dark colored, late model vehicle and leaving the area. The investigation determined that Vick and Rosario immediately returned to Boston. Within a few days the stolen firearm was sold on the streets of Boston.
To obtain assistance from the public in identifying the two men responsible for the theft of the firearm, ATF offered a $1,500 reward leading to the identification of one or both of the men. At least two individuals contacted the Woonsocket Police Department and identified Charlie Vick as being one of the two men depicted in surveillance camera photos publicized by law enforcement. The investigation later determined that the two men arrived and left the parking lot of the gun shop in a vehicle rented in the Boston area by Charlie Vick.
The defendants made initial appearances in U.S. District Court in Providence on January 17, 2019. Rosario is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on June 14, 2019. Vick is scheduled to be sentenced by Chief Judge William E. Smith on August 22, 2019.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
United States Attorney Aaron L. Weisman, Special Agent in Charge of the Boston Field Division of ATF Kelly D. Brady, and Woonsocket Police Thomas Oates thank the United States Marshals Service and the Chelsea, Mass., Police Department for their assistance in the investigation and arrest of Vick and Rosario.
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Two Miami-Dade County Residents Charged Federally for Fraudulently Obtaining Hurricane Harvey Disaster-Relief FundsRead the Press Release
Two Miami-Dade County, Florida residents were charged with participating in a scheme to fraudulently obtain Hurricane Harvey disaster-relief funds.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, made the announcement.
Fredna Frederic, 27, and Courtney Lillie Gillis, 28, both of Miami-Dade County, have been charged by indictment with one count of conspiracy to commit wire fraud and three counts of wire fraud (Case No. 19-20290-CR-Gayles/Otazo-Reyes). If convicted Frederic and Gillis face up to 20 years in prison for the offenses, fines and a term of supervised release.
According to the indictment, after Hurricane Harvey struck the Houston, Texas area, a humanitarian organization made disaster-relief funds available to residents of the affected area. These funds were dispensed by a number of companies, including a national retailer headquartered in Bentonville, Arkansas. In order to qualify for these relief funds, an individual had to enter the names, addresses, and dates of birth of individuals who resided in the affected area. Once this information was verified, the individual would receive a reference code that could be redeemed for a $400 payment at a national retailer.
The indictment alleges, that in order to execute the scheme, Frederic and Gillis’s co-conspirators applied for Hurricane Harvey disaster relief funds by falsely and fraudulently using the names, addresses, and dates of birth of individuals who resided in the disaster-relief area to obtain reference codes. It is alleged that, as part of the scheme, Frederic contacted Gillis, who was an employee of the national retail store where reference codes could be redeemed, and offered Gillis a kickback if she processed the reference codes. It is further alleged that, on approximately fifteen occasions, Frederic provided those reference codes to Gillis, who then entered these reference codes into the retailer’s computer system and then issued payments of $400 per code to Frederic and her co-conspirators.
An indictment merely contains allegations. A defendant is presumed innocent unless and until proven guilty in a court of law.
The National Center for Disaster Fraud (NCDF) is the result of a partnership between the U.S. Department of Justice and various law enforcement and regulatory agencies to form a national coordinating agency within the Criminal Division of the Department of Justice to improve and further the detection, prevention, investigation, and prosecution of fraud related to natural and man-made disasters, and to advocate for the victims of such fraud. Anyone with information about Disaster Fraud is encouraged to call (866) 720-5721.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the USSS in this matter. This case is being prosecuted by Assistant U.S. Attorney Marty Fulgueira Elfenbein.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Two Men Plead Guilty to Counterfeit Currency ConspiracyRead the Press Release
ALEXANDRIA, Va. – Two Washington, D.C. men pleaded guilty this week to conspiring to pass counterfeit currency.
According to court documents, between June 2017 and January 2019, Markee Alexander Brown, 27, and Joseph Andre Robinson, 24, conspired with one another to pass counterfeit $100 and $50 U.S. banknotes to purchase goods and to receive change in genuine U.S. currency from businesses and restaurants throughout the greater metropolitan Washington, D.C. area. Approximately 30 of these counterfeit passes were reported and captured by surveillance footage, and the U.S. Secret Service has collected thousands of dollars in counterfeit federal reserve notes connected to this conspiracy.
Brown and Robinson pleaded guilty to conspiring to pass counterfeit currency and face a maximum penalty of five years in prison when sentenced on August 23. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Brian J. Ebert, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office, made the announcement after U.S. District Judge Anthony J. Trenga accepted the pleas. Assistant U.S. Attorney Nicholas U. Murphy II and Special Assistant U.S. Attorney Michael Jones are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-54.
Two Illegal Aliens Facing Federal Conspiracy, Drug Distribution and Firearms ChargesRead the Press Release
NASHVILLE, Tenn. – May 16, 2019 – A federal grand jury yesterday, returned an eight-count indictment charging two illegal aliens with conspiracy to distribute cocaine and marijuana; illegal possession of firearms; possession of a firearms in furtherance of drug trafficking crimes; and being illegal aliens in possession of firearms; announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Jose Calderon, 19, aka, JoJo, of Mexico, and Brian Paradez, aka Bryant Myers, aka Bryan Josue Paredes-Nataren, 21, of Honduras, were charged in the indictment after an investigation by the Drug Enforcement Administration, which began in June 2018.
According to the indictment and court records, on July 28, 2018, agents were conducting an investigation into illegal drug trafficking at a bar on Murfreesboro Pike in Nashville. At approximately 3:00 a.m., agents saw Paredes exit the bar and get into the back seat of a vehicle, which left at a high rate of speed. Agents followed the car to an apartment complex on Glengarry Drive and watched as the vehicle backed into a parking space and turned off the lights. As agents approached, the vehicle made an evasive maneuver and vaulted from a concrete ledge to escape. Though the vehicle was damaged, it continued erratically on Murfreesboro Pike without lights until stopping at an apartment complex on West End Avenue, after which, all occupants fled on foot. Paredes was found hiding under a parked car a short distance away and was taken into custody. Agents later determined that the car belonged to Paredes and recovered from it a Ruger AR-15 rifle, two loaded handguns, and bags of cocaine and marijuana packaged for resale. Further investigation resulted in this indictment and both of these individuals are in federal custody.
If convicted, Calderon and Peredes faces a minimum of 10 years and up to life in prison, and deportation from the United States.
This case was investigated by the U.S. Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms & Explosives; the U.S. Department of Homeland Security-Immigration and Customs Enforcement; and the Metropolitan Nashville Police Department Gang Unit. Assistant U.S. Attorney Ahmed Safeeullah and Department of Justice Trial Attorney Matthew Hoff are prosecuting the case.
An indictment is merely an accusation. The defendants are presumed innocent until proven guilty in a court of law.
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Three Convenience Store Robbers Sentenced to More Than 14 Years in Federal PrisonRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Travis B. Hall (38, Orlando) to 15 years in federal prison, and Antonio Mobley (43, Orlando) to 14 years and 11 months in federal prison, for committing armed robberies at convenience stores in the Orlando area and for brandishing firearms during these crimes of violence. In addition, Derrick M. Davis (38, Orlando) was sentenced to 14 years and 7 months’ imprisonment for participating in the robberies.
According to court records, on March 1, 2018, at 8:50 p.m., Hall and Davis robbed a convenience store at a Sunoco gas station in Kissimmee. Davis planned the robbery and drove Hall to the store, where Hall began filling a large trash bag with cartons of cigarettes. The attendant on-duty engaged in a shoving match with Hall, after which Hall lifted up his shirt to display a firearm in his waistband and then completed the robbery. Davis and Hall sold the stolen cartons of cigarettes to a cigarette vendor in exchange for cash.
On March 2, 2018, at 7:10 p.m., Davis, Hall, and Mobley robbed a convenience store at a Mobil gas station in Ocoee. Davis planned the robbery, drove Mobley and Hall to the store, and provided Mobley with a firearm. After entering the store, Mobley placed an on-duty attendant in a headlock and held the firearm to the attendant’s head, while Hall filled a trash bag with cartons of cigarettes. Davis, Hall, and Mobley then sold the stolen cartons of cigarettes to a cigarette vendor in exchange for cash.
On March 2, 2018, at 10:08 p.m., Davis, Hall, and Mobley robbed another convenience store at a Marathon gas station in Kissimmee. Davis drove Mobley and Hall to the store and then again provided Mobley with a firearm. After entering the store, Mobley held the on-duty attendant at gunpoint while Hall filled two trash bags with cartons of cigarettes. Hall and Mobley then fled with the firearm and cigarettes.
Hall and Mobley pleaded guilty on October 10, 2018. Davis pleaded guilty on February 27, 2019.
This case was investigated by the Federal Bureau of Investigation, the Osceola County Sheriff’s Office, the Ocoee Police Department, the Kissimmee Police Department, and the Orlando Police Department. It was prosecuted by Assistant United States Attorney Chauncey A. Bratt.
Texas Woman Sentenced for Conspiracy to Commit Mail and Wire Fraud as Part of Lottery ScamRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that DEBRA KROM, age 47, a resident of Wylie, Texas, was sentenced yesterday for her role in a conspiracy to commit mail and wire fraud.
According to court documents, in or before August 2013, and continuing through December 2015, KROM and others operated a scheme to contact elderly individuals and people with diminished capacity. The scheme involved contacting victims by telephone through Voice over Internet Protocol (“VoIP”) and informing them that they had won a lottery and needed to pay KROM and others monies by cash, check, wire, or other methods in order to claim their lottery winnings.
After receiving victims’ funds through United States mail, private mail carrier, or through an electronic transfer, KROM and other co-conspirators known and unknown to the United States Attorney, with knowledge that the money they received was obtained through false and fraudulent pretenses, did knowingly and intentionally transfer the stolen money to bank accounts in Jamaica.
U.S. District Judge Sarah S. Vance sentenced KROM to serve 12 months and one day imprisonment, followed by a 2-year term of supervised release, and to pay restitution in the amount of $75,928.
U.S. Attorney Strasser praised the work of the United States Postal Service, Office of Inspector General, United States Secret Service, and the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Sharan E. Lieberman was in charge of the prosecution.
Ten Members of the Aryan Knights Prison Gang Indicted on RICO Charges in Federal CourtRead the Press Release
BOISE – A federal grand jury indicted ten members of an Idaho prison gang called the Aryan Knights on RICO (the Racketeer Influenced and Corrupt Organization Act) charges, U.S. Attorney Bart M. Davis announced. The indictment results from an FBI investigation of the Aryan Knights at the request of the Idaho Department of Correction (IDOC).
As alleged in the indictment, the Aryan Knights, or “AK,” was formed in the mid-1990s in the Idaho prison system. It is a prison gang that operates within IDOC prison facilities and also outside of IDOC facilities. It was founded to organize criminal activity for a select group of white inmates within IDOC custody. The AK has white supremacist and white separatist ideologies. Since its founding, the AK has expanded and is now believed to have over 100 members, both inside and outside of IDOC custody. The AK has used violence and the threat of violence to target non‑white inmates and other targeted inmates. The AK also has used drug trafficking, extortion, and gambling to generate revenue, which was shared among members. The AK has a leadership structure and an evolving code of conduct.
As alleged in the indictment, the AK arranged to smuggle large quantities of illicit drugs into prison over the years, generating revenue and laundering the proceeds through an outside business. The AK increased and maintained its reputation for violence within IDOC through repeated acts of violence.
The Indictment has three counts. In Count One, nine of the defendants were charged with conspiracy to participate in a racketeering enterprise. They are:
- James Ramsey, age 38;
- Christopher Foss, age 30;
- Harlan Hale, age 53;
- Steven Bowman, age 36;
- Jeremy Brown, age 40;
- Nicholas Sites, age 34;
- Buck Pickens, age 30;
- Lucas Johnson, age 30; and
- Michael McNabb, age 34.
In Count Two, Ramsey and Hale also were charged with attempted murder and assault with a dangerous weapon in aid of racketeering for the June 2016 stabbing of an AK member who had come into conflict with Ramsey, the AK’s overall leader at the time.
In Count Three, Bowman and Mark Woodland, age 48, were charged with attempted murder and assault with a dangerous weapon in aid of racketeering for the February 2017 beating and stabbing of an inmate associated with a rival prison gang.
All defendants, except for Johnson, are currently in IDOC custody. Johnson, a former IDOC inmate, was arrested yesterday.
As charged in the Indictment for Ramsey, Foss, Hale, Bowman, Sites, Pickens, and Johnson, the charge of conspiracy to participate in a racketeering enterprise is punishable by up to life imprisonment.
As charged in the Indictment for Brown and McNabb, the charge of conspiracy to participate in a racketeering enterprise is punishable by up to twenty years imprisonment.
As charged in the Indictment, the charge of attempted murder in aid of racketeering is punishable by up to ten years imprisonment.
As charged in the Indictment, the charge of assault with a dangerous weapon in aid of racketeering is punishable by up to twenty years imprisonment.
“This Indictment is the result of remarkable collaboration between state and federal investigators,” said Davis. “It shows the commitment of law enforcement at all levels in Idaho to root out crime wherever it occurs.”
“The defendants in this case didn’t let prison walls deter their acts of brazen violence and crime,” said Special Agent in Charge Paul Haertel of the FBI’s Salt Lake City Field Office. “The FBI is committed to fighting organized crime wherever it takes place and will continue to work closely with our law enforcement partners to make that happen.”
“This Indictment will help make our correctional facilities and communities safer,” said IDOC Director Josh Tewalt. “When people in our custody choose to further their criminal activities while incarcerated, it poses a significant danger to our correctional professionals, the vast majority of people in our custody working hard to turn their lives around, and even reaches into our communities.”
The investigation was prompted by information uncovered by the IDOC’s Special Investigations Unit. Because of the depth and scale of the conspiracy, the department requested the assistance of the U.S. Attorney Office for the District of Idaho and the FBI.
In addition to the FBI, IDOC’s Special Investigations Unit, the Ada County Sheriff’s Office, and the Ada County Prosecutor’s Office participated in the investigation.
An indictment is a means of charging a person with criminal activity. It is not evidence. A person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Sisseton Man Sentenced for Aggravated Assaults Involving Two Women and for a Firearm OffenseRead the Press Release
United States Attorney Ron Parsons announced that a Sisseton, South Dakota, man convicted of felon in possession of a firearm and two counts of assault with a dangerous weapon was sentenced on May 14, 2019, by U.S. District Judge Charles B. Kornmann.
Anthony Janisch, age 29, was sentenced to 63 months in federal prison, to be followed by 3 years of supervised release. He was ordered to pay $300 to the Federal Crime Victims Fund.
According to court documents, on or about June 20, 2017, Janisch, having been previously convicted of a crime punishable by imprisonment for a term exceeding one year, did unlawfully possess a firearm. Janisch also brandished that firearm during the aggravated assault of two women and made specific threats to victims. The firearm was loaded and he put it to the head of one of the victims, while making threats.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
The investigation was conducted by Sisseton-Wahpeton Oyate Tribal Law Enforcement and the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Janisch was remanded to the custody of the U.S. Marshals Service.
Sisseton Man Charged with Aggravated Sexual Abuse and Assault of Partner by Strangulation or SuffocationRead the Press Release
United States Attorney Ron Parsons announced that a Sisseton, South Dakota, man has been indicted by a federal grand jury for aggravated sexual abuse by force, threat, or fear, and assault of partner by strangulation or suffocation.
Joshua John Max, age 35, was indicted on February 5, 2019. He appeared before U.S. Magistrate Judge William Gerdes on May 13, 2019, and pled not guilty to the Indictment.
According to the Indictment, on or about the 25th day of April, 2015, Max knowingly engaged, and attempted to engage in, a sexual act by using force, by threatening, and by placing in fear of death and serious bodily injury, and unlawfully assaulted an intimate partner by strangling and suffocating.
The maximum penalties upon conviction for each count are as follows: up to life imprisonment and/or a $250,000 fine; a mandatory minimum term of five (5) years, up to life, of supervised release; $100 special assessment for victim/witness fund; $5,000 assessment to the domestic trafficking fund; and restitution may be ordered.
The charges are merely accusations and Max is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Sisseton-Wahpeton Oyate Sioux Tribe’s Law Enforcement and the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Max was remanded to the custody of the U.S. Marshals Service. A trial date of June 25, 2019, has been set.
Rhode Island Property Preservationist Indicted for Fraud, Money Laundering, Aggravated Identity Theft and Obstructing an IRS InvestigationRead the Press Release
A federal grand jury returned a 14-count indictment today charging an East Greenwich, Rhode Island, business woman, whose business specializes in preserving foreclosed homes for resale, with nine counts of wire fraud, two counts aggravated identity theft, one count of money laundering, and one count each of structuring and obstructing an Internal Revenue Service investigation, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, United States Attorney Aaron L. Weisman for the District of Rhode Island, Special Agent in Charge of Internal Revenue Service Criminal Investigation Kristina O'Connell, and Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta.
According to the indictment and court documents, Monique N. Brady, owner and operator of MNB LLC, operated a scheme whereby she raised and pocketed millions of dollars from investors, including close friends, a family member, and business associates, by misrepresenting to them that she needed to raise tens of thousands of dollars for various repair projects. In return for their investment, investors were promised a return of 50 percent of the profit.
It is alleged that Brady fraudulently represented to potential investors that MNB had secured contracts to perform large scale rehabilitation projects on foreclosed properties in Rhode Island, Connecticut, Massachusetts, and New Hampshire, and that payments ranging from approximately $20,000 to $80,000 were needed to pay subcontractors to perform the work. Brady often solicited and received multiple investments for the same property. To make potential investors believe she had secured contracts for large scale rehabilitation projects, Brady forwarded to her investors fraudulent emails purporting to be from a national property rehabilitation company claiming Brady had been approved to rehabilitate a property. Brady included in the emails fraudulent itemizations of work to be performed. Brady also included, without permission, the identity of an actual employee of the national property rehabilitation company in an attempt to make the emails appear authentic.
For the majority of properties for which Brady received investments from third parties, allegedly no work whatsoever was performed by MNB. On some properties, MNB performed low-dollar tasks and was paid less than $1,000, at times as little as $25.
From January 2014 to July 2018, Brady received approximately $10.2 million dollars in investments from about 32 individuals and corporations to whom she fraudulently represented that large-scale rehabilitation projects had been awarded to MNB. These investors have sustained a loss of approximately $4.78 million. Some of the investor funds allegedly were spent by Brady on personal expenditures, to include numerous vacations, personal mortgage payments and gambling-related expenses. When individual investors demanded from Brady a return on their investment she would, at times, use other investors funds. In this way, Brady allegedly operated a “Ponzi scheme.”
The indictment further alleges Brady attempted to obstruct an IRS criminal investigation when, after being told by IRS investigators she was under investigation, she asked investors to delete or destroy all email correspondence, texts, and documents relating to their investments in MNB rehabilitation projects.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Each wire fraud charge carries statutory penalties of up to 20 years in prison, up to five years supervised release, and a fine of up to $250,000 or twice the gross profit/loss. Aggravated identity theft is punishable by statutory penalties of a two year mandatory sentence consecutive to any other sentence imposed and one year of supervised release. Money laundering is punishable by statutory penalties of up to 10 years imprisonment, three years supervised release, and a fine of up to $250,000. Structuring is punishable by statutory penalties of up to five years imprisonment, three years supervised release, and a fine of up to $250,000. Obstructing an IRS investigation is punishable by statutory penalties of up to three years in prison, one year supervised release, and a fine of $5,000.
The case is being prosecuted by Assistant United States Attorney Lee Vilker of the District of Rhode Island and Trial Attorney Christopher O’Donnell of the Tax Division.
The matter was investigated by agents from IRS-Criminal Investigation and the FBI.
Rapid City Woman Sentenced for LarcenyRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, woman convicted of Larceny was sentenced on May 13, 2019, by U.S. District Judge Roberto A. Lange.
Whitney Bagola, age 25, was sentenced to credit for time served, 3 years of supervised release, restitution in the amount of $5,107.68, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Bagola was indicted by a federal grand jury on January 23, 2019. She pled guilty on February 22, 2019.
The conviction stemmed from an incident on January 7, 2019, when Bagola entered a vehicle valued at more than $1,000 that was not hers and drove off in it. She abandoned the vehicle approximately 150 miles later, after the car ran out of gas.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Bagola was immediately turned over to the custody of the U.S. Marshals Service.
Property Preservationist Indicted for Fraud, Money Laundering, Aggravated Identity Theft, Obstructing an IRS InvestigationRead the Press Release
PROVIDENCE – A federal grand jury returned a 14-count indictment today charging an East Greenwich, Rhode Island business woman, whose business specializes in preserving foreclosed homes for resale, with nine counts of wire fraud, two counts aggravated identity theft, and one count each of money laundering, structuring, and obstructing an Internal Revenue Service investigation, announced United States Attorney Aaron L. Weisman for the District of Rhode Island, Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, Special Agent in Charge of Internal Revenue Service Criminal Investigation Kristina O'Connell, and Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta.
According to the indictment and court documents, Monique N. Brady, owner and operator of MNB LLC, operated a scheme whereby she raised and pocketed millions of dollars from investors, including close friends, a family member, and business associates, by misrepresenting to them that she needed to raise tens of thousands of dollars for various repair projects. In return for their investment, investors were promised a return of fifty percent of the profit.
It is alleged that Brady fraudulently represented to potential investors that MNB had secured contracts to perform large scale rehabilitation projects on foreclosed properties in Rhode Island, Connecticut, Massachusetts, and New Hampshire, and that payments ranging from approximately $20,000 to $80,000 were needed to pay subcontractors to perform the work. Brady often solicited and received multiple investments for the same property. To make potential investors believe she had secured contracts for large scale rehabilitation projects, Brady forwarded to her investors fraudulent emails purporting to be from a national property rehabilitation company claiming Brady had been approved to rehabilitate a property. Brady included in the emails fraudulent itemizations of work to be performed. Brady also included, without permission, the identity of an actual employee of the national property rehabilitation company in an attempt to make the emails appear authentic.
For the majority of properties for which Brady received investments from third parties, allegedly no work whatsoever was performed by MNB. On some properties, MNB performed low-dollar tasks and was paid less than $1,000, at times as little as $25.
From January 2014 to July 2018, Brady received approximately $10.2 million dollars in investments from about 32 individuals and corporations to whom she fraudulently represented that large-scale rehabilitation projects had been awarded to MNB. These investors have sustained a loss of approximately $4.78 million. Some of the investor funds allegedly were spent by Brady on personal expenditures, to include numerous vacations, personal mortgage payments and gambling-related expenses. When individual investors demanded from Brady a return on their investment she would, at times, use other investors funds. In this way, Brady allegedly operated a “Ponzi scheme.”
The indictment further alleges Brady attempted to obstruct an IRS criminal investigation when, after being told by IRS investigators she was under investigation, she asked investors to delete or destroy all email correspondence, texts, and documents relating to their investments in MNB rehabilitation projects.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Each wire fraud charge carries statutory penalties of up to 20 years in prison, up to 5 years supervised release, and a fine of up to $250,000 or twice the gross profit/loss. Aggravated identity theft is punishable by statutory penalties of a 2-year mandatory sentence consecutive to any other sentence imposed and 1 year of supervised release. Money laundering is punishable by statutory penalties of up to 10 years imprisonment, 3 years supervised release, and a fine of up to $250,000. Structuring is punishable by statutory penalties of up to 5 years imprisonment, 3 years supervised release, and a fine of up to $250,000. Obstructing an IRS investigation is punishable by statutory penalties of up to 3 years in prison, 1 year supervised release, and a fine of $5,000.
The case is being prosecuted by Assistant United States Attorney Lee Vilker of the District of Rhode Island and Trial Attorney Christopher O’Donnell of the Tax Division.
The matter was investigated by agents from IRS-Criminal Investigation and the FBI.
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Portage Woman Sentenced to 15 YEARS in Prison for Producing Child PornographyRead the Press Release
GRAND RAPIDS, MICHIGAN –Rachel Marie Burrell, 30, of Portage, Michigan, was sentenced for sexual exploitation of a child, U.S. Attorney Andrew Birge announced today. Burrell was sentenced to 180 months’ imprisonment, followed by five years of supervised release and was ordered to pay fines and other monetary penalties.
Burrell took sexually explicit pictures of an infant in her care and forwarded the images to a man with whom she was in a relationship. She also made the infant available to that man knowing he would sexually assault the infant. According to a victim impact statement filed by the victim’s foster parents, the victim suffers from night terrors and a sensory processing disorder as a result of the abuse. Chief Judge Jonker noted at sentencing "the ultimate injury to the child … was severe."
"Children, and infants in particular, are some of our most vulnerable victims and my office is dedicated to seeking justice when they are harmed," said U.S. Attorney Birge. "As a law enforcement agency and as a community, we have no greater duty than to protect the most vulnerable among us," said Timothy R. Slater, Special Agent in Charge of the FBI’s Detroit Division. "The FBI and our law enforcement partners will relentlessly pursue those who would victimize innocent children and ensure they are brought to justice."
This case is part of the Department of Justice’s Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. The U.S. Attorney’s Office, county prosecutor’s offices, and federal, state, and local law enforcement work closely together to locate, apprehend, and prosecute individuals who exploit children. Individuals with information or concerns about possible child exploitation should contact local law enforcement. For more information about Project Safe Childhood in West Michigan, including resources for children and parents, visit: http://www.justice.gov/usao/miw/programs/psc.html.
The case was investigated by the FBI, the Michigan State Police, and the Kalamazoo County Sheriff’s Department and prosecuted by Assistant U.S. Attorney Alexis M. Sanford.
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Plymouth Man Sentenced for Drug DistributionRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that United States District Judge James C. Dever III sentenced NORMAN LYDELL FORD, 45, of Plymouth, North Carolina, to 120 months imprisonment, followed by three years of supervised release.
FORD was named in an Indictment filed on October 3, 2018, charging him with conspiracy to distribute cocaine base (crack) and six counts of distribution of cocaine base (crack). On January 24, 2019, FORD pled guilty to conspiracy and one count of distribution.
According to the investigation, FORD distributed cocaine base (crack) seven times between December 2015 and April 2018. FORD had multiple previous drug distribution convictions.
This case was implemented through the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices in those communities on a sustained basis to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
Investigation of this case was conducted by North Carolina Alcohol Law Enforcement. Assistant United States Attorney Lucy Brown represented the government.
Philadelphia Man Convicted of Illegally Possessing a FirearmRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Kevin Jamelle Archie, 37, of Philadelphia, Pennsylvania was convicted today at trial of one count of felon in possession of a firearm.
On September 10, 2016, Philadelphia Police officers arrested the defendant after responding to a 911 call and finding him in possession of a firearm loaded with ten rounds of ammunition at the corner of Frankford Avenue and East Pacific Street in the Harrowgate section of lower Northeast Philadelphia. The defendant had previously been convicted of a felony – possession with the intent to distribute controlled substances – which barred him from legally possessing a firearm.
“Reducing violent crime is a top priority of my Office and of the Department of Justice, and successful prosecutions of cases like this remain a key part of our deterrence strategy,” said U.S. Attorney McSwain. “My Office is committed to working with the Philadelphia Police Department to clear the city streets of firearms in the hands of convicted felons, which undeniably pose a serious threat to the safety of all residents.”
“Public safety is the core responsibility of all who work in the field of law enforcement. Regardless of our specific agencies or titles, keeping our communities safe is at the heart of our primary mission,” said Philadelphia Police Commissioner Richard Ross. “In order for us to accomplish our mission, collaboration between our law enforcement partners, the community, and initiatives like Project Safe Neighborhoods must remain a priority. The investigation, arrest, and successful prosecution of Mr. Archie serves as evidence of the effectiveness of strong and consistent collaboration between stakeholder agencies.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and is being prosecuted by Assistant United States Attorney Tom Zaleski.
Pelion Man Sentenced to Federal Prison for Loan FraudRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Richard Earl Jeffcoat, age 52, of Pelion, was sentenced to six months in federal prison and six months of home confinement after pleading guilty to Conspiring to Commit Bank Fraud. Senior United States District Court Judge Terry L. Wooten of Columbia imposed the sentence and ordered Jeffcoat to pay over $45,000 in restitution to the victim, Arthur State Bank.
Facts presented in court established that Jeffcoat is an accountant who was producing false documentation in support of loan applications and giving that information to an Arthur State Bank loan officer. The officer than facilitated approvals for mortgages and other loans using the fake documents. Some of the loans were for Jeffcoat’s family members.
Jeffcoat was involved in a total of six loans valued at $529,000. Several are still current. The value of the loss-to-date is approximately $45,000.
The United States Secret Service investigated the case. Assistant United States Attorney Winston D. Holliday, Jr., of the Columbia office prosecuted the case.
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North Charleston Man Sentenced to a Year in Prison on Federal Gun ChargeRead the Press Release
Charleston, South Carolina --- United States Attorney Sherri A. Lydon announced today that Corey Emery Jenkins, 35, of North Charleston, was sentenced to a year in federal prison after pleading guilty to being a felon in possession of a firearm.
Evidence presented to the court showed that on August 10, 2017, officers of the North Charleston Police Department responded to an apartment on Russelldale Avenue regarding reports of gun and drug trafficking. Jenkins answered the door with a gun in his hand, and then tried to close the door on the officer. Officers entered the apartment and secured a search warrant. A search of the apartment revealed three loaded guns, including a stolen Glock, a revolver capable of firing shotgun shells, and an assault rifle. Federal law prohibits Jenkins from possessing firearms based on prior felony convictions.
United States District Judge Bruce Howe Hendricks of Charleston sentenced Jenkins to twelve months in federal prison to be followed by a 3-year term of court-ordered supervision. The Court imposed the maximum sentence available under the terms of Jenkins’ plea agreement. There is no parole in the federal system.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the North Charleston Police Department. It was prosecuted as part of the joint federal, state, and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Project CeaseFire is South Carolina’s implementation of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. Assistant United States Attorney Chris Schoen of the Charleston office prosecuted the case.
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Nora Springs Man Charged with Child Sexual Exploitation OffensesRead the Press Release
Aaron Olson, age 35, of Nora Springs, Iowa, has been charged with two counts of sexual exploitation of a child. The charges are contained in an Indictment unsealed on May 9, 2019, in United States District Court in Cedar Rapids.
The Indictment alleges that, between 2017 and 2018, Olson used two minors to engage in sexually explicit conduct for the purpose of producing visual depictions.
If convicted, Olson faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of 60 years’ imprisonment, a $500,000 fine, and at least five years and up to life on supervised release following any imprisonment.
Olson appeared on May 9, 2019, in federal court in Cedar Rapids and was held without bond. Olson’s next appearance for trial is set for July 8, 2019.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and is being investigated by the Iowa Division of Criminal Investigation and the Nora Springs Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 19-2029.
Follow us on Twitter @USAO_NDIA.
Nine people, most from Toledo, indicted for their roles in a conspiracy to traffic large amounts of heroin, cocaine and fentanyl in Northwest OhioRead the Press Release
Nine people, most from Toledo, were indicted for their roles in a conspiracy to traffic large amounts of heroin, cocaine and fentanyl in Northwest Ohio.
Named in the eight-count indictment are: Pedro Negrin, 59, Santino Montoya, 26, Aurelio Seoane-Armada, 59, Jamel Gaines, 30, Corey Goings, 48, Nathaniel Houle, Jr., 22, Korey Parker, 29, all of Toledo; Francisco Cabrera-Hernandez, 35, of Casa Grande, Arizona; and Luis Perez-Rodriguez, 31, of Phoenix.
All nine defendants are charged with one count of conspiracy to possess with intent to distribute at least one kilogram of heroin, five kilograms of cocaine and 400 grams of fentanyl.
Goings is charged with being a felon in possession of a firearm, for allegedly having a Springfield Armory .45-caliber pistol despite a previous drug conviction. Various defendants are charged with additional drug counts, including Cabrera-Hernandez and Perez-Rodriguez being charged with possession with intent to distribute 11 kilograms of cocaine.
Prosecutors are seeking to forfeit more than $407,000 seized as part of the investigation, as well as a firearm and two vehicles installed with after-market traps.
“These defendants trafficked in large amounts of heroin, fentanyl and cocaine, drugs that have taken so many lives and destroyed so many families in Ohio,” U.S. Attorney Justin Herdman said. “We will continue to work with our law enforcement partners to prosecute those who profit from this drug crisis.”
“These individuals brought danger and violence to our communities through their illegal drug dealing behavior,” said FBI Special Agent in Charge Eric Smith. “Collaborative law enforcement efforts will continue daily to combat the for profit distribution of illicit life robbing narcotics.”
Toledo Police Chief George Kral said: “Here is yet another example of exemplary police work and collaborations between local, state, and federal law enforcement. As a result of this investigation, ten individuals, mostly from Toledo, were arrested and a substantial amount of dangerous drugs are off of our streets. Toledo is a safer community with the individuals behind bars. I look forward to continuing our long standing relationship with our federal partners."
If convicted, the defendants’ sentences will be determined by the Court after reviewing factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases, it will be less than the maximum.
The investigating agencies in this case are the Federal Bureau of Investigation and the Toledo Metro Drug Task Force. The case is being handled by Assistant U.S. Attorneys Alissa M. Sterling and Matthew D. Simko.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
New York Man Indicted for Conspiracy to Distribute Heroin and Interstate ProstitutionRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Akbar Muhammad, age 42, of New York, was indicted on May 14, 2019, by a federal grand jury for conspiracy to distribute more than a kilogram of heroin, and two counts of interstate prostitution.
According to United States Attorney David J. Freed, the indictment alleges that Muhammad, who used the street name “Biz,” participated in the conspiracy to distribute heroin from 2015 to the present, and transported prostitutes from Pennsylvania to New York and from New York to Pennsylvania between October 2016 and 2017.
The indictment stems from an investigation by the Federal Bureau of Investigation, the Pennsylvania State Police, and Stroud Area Regional Police. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the drug conspiracy charge is life imprisonment, a term of supervised release following imprisonment, and a fine. The drug charge also carries a mandatory minimum sentence of 10 years’ imprisonment. The maximum sentence for the prostitution offenses is 10 years’ imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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New Orleans Man Pleads Guilty for His Role in Scheme to Defraud Medicare by Soliciting Kickback Payments for Two New Orleans-Area PhysiciansRead the Press Release
A New Orleans, Louisiana, man pleaded guilty today for his role in a scheme to solicit the payment of illegal health care kickbacks to several individuals, including two New Orleans-area physicians, for the referring and certifying of individuals for medically unnecessary home health services.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana, Special Agent in Charge Eric J. Rommal of the FBI’s New Orleans Field Office and Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Field Office made the announcement.
Joseph A. Haynes, 63, pleaded guilty before U.S. District Judge Barry W. Ashe of the Eastern District of Louisiana to one count of conspiracy to solicit and receive health care kickbacks and bribes. Sentencing is set for Aug. 22 before Judge Ashe.
In pleading guilty, Haynes admitted that he participated in a scheme with codefendants Muhammad Kaleem Arshad, M.D., 63, of New Orleans, Padmini Nagaraj, M.D., 61, of Kenner, Louisiana, and others, including patient recruiter Kim Ricard, 52, of Gonzales, Louisiana, and clinic owner Milton Diaz, 66, of Harvey, Louisiana. Haynes admitted that the purpose of the scheme was to solicit and receive kickbacks and bribes for the referral of Medicare beneficiaries to Progressive Home Health (Progressive), of New Orleans, owned by Diaz, and having them certified as eligible to receive home health services. In reality, the beneficiares were not eligible to receive such services. Haynes admitted that he solicited a total of approximately $331,000 in kickbacks from Diaz for Ricard disguised as marketing fees and solicited approximately $1,500 in monthly kickbacks from Diaz for Arshad and Nagaraj disguised as medical director fees.
Arshad pleaded guilty on Feb. 22, 2019 and Nagaraj pleaded guilty on May 2, 2019 before Judge Ashe, to one count each of conspiracy to commit health care fraud. Arshad’s sentencing is set for July 11, 2019, and Nagaraj’s sentencing is set for Aug. 8, 2019. As part of their pleas, Arshad and Nagaraj each admitted that in return for accepting illegal health care kickbacks, which Haynes orchestrated, Arshad and Nagaraj each referred beneficiaries that they treated at a Louisiana-based psychiatric facility for medically unnecessary home health services at Progressive, and further fraudulently certified that the beneficiaries were eligible to receive such services. Diaz, on behalf of Progressive, then submitted the fraudulent claims to Medicare and was reimbursed for the medically unnecessary home health services, he admitted.
Diaz pleaded guilty on July 13, 2017, and is scheduled to be sentenced on July 31, 2019 before U.S. District Judge Jane Triche Milazzo of the Eastern District of Louisiana. Ricard was found guilty after a three-day trial in September 2017, and was sentenced on Jan. 4, 2018, to 51 months in prison.
This case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Louisiana. Trial Attorneys Jared Hasten, Katherine Payerle and Claire Yan of the Criminal Division’s Fraud Section are prosecuting the case.
The Medicare Fraud Strike Force is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Nebraska Man Charged with Selling Employer’s Confidential InformationRead the Press Release
NEWARK, N.J. – A Nebraska man was arrested today for allegedly selling one of his employer’s databases, U.S. Attorney Craig Carpenito announced.
Timothy Young, 49, of Moorefield, Nebraska, is charged by complaint with one count of wire fraud. He is scheduled to make his initial appearance May 17, 2019, before U.S. Magistrate Judge F.A. Gossett III, in Omaha, Nebraska, federal court.
According to documents filed in this case:
Young was employed at a data analytics and risk assessment firm based on New Jersey. The company serves customers worldwide, including entities providing insurance and financial services as well as government entities. The company maintains a network that houses, among other things, significant amounts of personally identifiable information.
Young provided to an individual he met online non-public information from the company’s system, including names, logon names, passwords, email addresses, and telephone numbers for some of the company’s clients. Young expected to be paid for providing this information.
The charge of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits to Young or twice the gross loss suffered by the victim.
U.S. Attorney Carpenito credited special agents the FBI Cyber Task Force, which includes special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; and task force officers from the N.J. State Police, Jersey City Police Department and Federal Protective Service, with the investigation leading to today’s arrest. He also thanked FBI Omaha, under the direction of Randall C. Thysse, for its role in the investigation.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cyber Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
Moses Lake Man Sentenced to over 12 Years in Federal Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Loren John Jay Meade, age 32, of Moses Lake, Washington, was sentenced today after having pleaded guilty on October 2, 2018, to conspiracy to distribute 50 or more grams of actual methamphetamine. Chief United States District Judge Thomas O. Rice sentenced Meade to a 12 year and four month term of imprisonment, to be followed by a five-year term of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, Meade conspired with Michael John Montejano, age 28, also of Moses Lake, Washington, to distribute methamphetamine in Moses Lake. For his role in the conspiracy, Montejano was sentenced on April 9, 2019, to a seven year term of imprisonment, to be followed by a five-year term of court supervision.
Joseph H. Harrington said, “Methamphetamine is a highly dangerous and addictive drug and federal law enforcement is committed to investigating and prosecuting those responsible for its distribution anywhere in the Eastern District of Washington. The United States Attorney’s Office for the Eastern District of Washington commends the law enforcement officers with the Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives who investigated this case. The sentences imposed in this case by the court removes two drug traffickers from our streets and sends a clear message to others who may choose to distribute methamphetamine in our communities.”
This case was investigated by the Spokane Resident Offices of the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by James A. Goeke, an Assistant United States Attorney for the Eastern District of Washington.
Monona County Man off to Federal Prison for Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced May 14, 2019, to ten years in federal prison.
Gary Gibbs, 48, from Soldier, Iowa, received the prison term after a November 13, 2018, guilty plea to conspiracy to distribute methamphetamine. Gibbs was previously convicted of four felony drug offenses in Nebraska.
At the plea hearing, Gibbs admitted that from January 2017 through February 2018, he and others were involved in a conspiracy that distributed more than 500 grams of methamphetamine. Gibbs further admitted to obtaining methamphetamine from sources in Omaha, Nebraska to sell in the Monona County area. On November 23, 2017, a Monona County Sheriff’s deputy traffic stopped Gibbs and found Gibbs with about ½ ounce of methamphetamine. The deputy also witnessed Gibbs throw a bag out the passenger door window. Deputies returned to the area where Gibbs had thrown out the bag and located about 3 ounces of methamphetamine, 1 ounce of marijuana, and other indicia of drug distribution in the bag. On June 12, 2018, when arrested on the federal charges in this case, Gibbs was found to be in possession of about ¼ ounce of methamphetamine, and approximately $1,400.
Gibbs was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Gibbs was sentenced to 120 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. Gibbs 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 Shawn S. Wehde and was investigated by the Monona County Sheriff’s Office, Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-4047. Follow us on Twitter @USAO_NDIA.
Missoula man gets prison for drug distribution and firearms possessionRead the Press Release
Missoula—A Missoula man who admitted distributing methamphetamine and other drugs and to having multiple firearms was sentenced today to eight years in prison and to five years of supervised release, U.S. Attorney Kurt Alme said.
Nickolas William Povsha, 24, pleaded guilty earlier to possession with intent to distribute controlled substances and to possession of a firearm in furtherance of a drug trafficking crime.
Chief U.S. District Judge Dana L. Christensen presided at sentencing.
Prosecutors said in court records that Povsha twice sold a confidential informant MDMA, commonly known as ecstasy, in April and May 2018. And in July 2018, pursuant to a federal search warrant, two packages belonging to Povsha were intercepted and searched. One package contained more than 50 grams of pure methamphetamine and the other contained marijuana seeds. A third package was searched at a later date and was found to contain Xanax.
Law enforcement also executed a search warrant at Povsha’s residence in August 2018 and found multiple firearms, ammunition, drugs, a scale and other items.
Assistant U.S. Attorney Tara Elliott prosecuted the case, which was investigated by the Missoula High Intensity Drug Trafficking Area Task Force and Homeland Security Investigations.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Mission Man Sentenced for Burglary ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man convicted of Third Degree Burglary was sentenced on May 13, 2019, by U.S. District Judge Roberto A. Lange.
Jonathan Yellow Eyes, age 23, was sentenced to 15 months in federal prison, followed by 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Yellow Eyes was indicted by a federal grand jury on September 11, 2018. He pled guilty on February 19, 2019.
The conviction stemmed from an incident that occurred in the early morning hours of December 6, 2017, wherein Yellow Eyes broke into and burglarized the Rosebud Sioux Tribe Head Start Administration Building in Rosebud. While inside the building, Yellow Eyes stole multiple items, including the keys to a vehicle that belonged to the Rosebud Sioux Tribe Head Start. Yellow Eyes subsequently exited the building, located the vehicle, and stole it. The vehicle was later found abandoned in Sioux Falls.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Yellow Eyes was immediately turned over to the custody of the U.S. Marshals Service.
Minnesota Man with Multiple Prior Felony Convictions Pleads Guilty under Project EJECT to Illegally Possessing a FirearmRead the Press Release
Jackson, Miss. – Bobby Joseph Stallworth, 59, of Minneapolis, Minnesota, entered a guilty plea today before Senior U.S. District Judge David C. Bramlette III to being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Christopher Freeze with the Federal Bureau of Investigation.
Stallworth had been previously convicted of approximately twenty felony offenses out of Escambia County, Florida over the past thirty years, most of which involved theft or forgery. On October 9, 2017, Stallworth was found in possession of a firearm in Jackson after law enforcement intervened in a domestic dispute with his then-girlfriend.
Stallworth was indicted for this offense on April 3, 2019. He will be sentenced by Judge Bramlette on August 22, 2019, at 11:00 a.m., and faces a maximum penalty of 10 years in prison and a $250,000 fine.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The Federal Bureau of Investigation and Jackson Police Department investigated the case. The case is being prosecuted by Assistant United States Attorney Andrew W. Eichner.
Minnesota Man Sentenced for Abusive Sexual Contact of a Child under Twelve YearsRead the Press Release
United States Attorney Ron Parsons announced that a Moose Lake, Minnesota, man convicted of two counts of abusive sexual contact of a child under twelve years was sentenced on May 13, 2019, by U.S. District Judge Charles B. Kornmann.
Roland Joseph Brant, age 64, was sentenced to 262 months in federal prison and ordered to pay $100 to the Federal Crime Victims Fund.
According to court documents, between February and July 2007, in Roberts County, South Dakota, Brant knowingly engaged in, and attempted to engage in, sexual acts with two children who had not attained the age of 12.
The investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Brant was remanded to the custody of the U.S. Marshals Service.
Miami-Dade County Resident Sentenced to Five Years in Federal Prison for ArsonRead the Press Release
A Miami-Dade County, Florida resident was sentenced yesterday to five years in federal prison for setting fire to a local business.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and Ari C. Shapira, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, made the announcement.
Fabiola Pena, 41, of Miami-Dade County, pled guilty on April 22, 2019, to one count of arson of a business, in violation of Title 18, United States Code, Section 844(i) (Case No. 19-20005-CR-SCOLA). U.S. District Court Judge Robert N. Scola sentenced Pena to a total of 60 months in prison, to be followed by 3 years of supervised release. A hearing to determine the amount of restitution that Pena will be ordered to pay is scheduled for July 19, 2019 at 10 a.m.
According to the court record, including the agreed upon factual proffer, on December 25, 2018, Pena and a locksmith arrived at Hector’s Pizza located in Miami-Dade County, where the locksmith unlocked the door for the defendant. Pena later went to a nearby gas station, pumped gasoline into a white jug and then returned to the business. While inside the business, Pena set four fires: one in the rear storage area, one on the west rear wall refrigerator, one on the power cord within the office, and one on the northeast wall refrigerator. Pena left shortly after she started the fires. Surveillance video from a nearby business revealed smoke coming out of the front of Hector’s Pizza, after Pena exited the establishment.
Law enforcement responded, observed smoke from the front of the business, and contacted Miami-Dade Fire Rescue Department. Fire personnel observed heavy black smoke upon entering the business, as well as heavy smoke extending from the floor to the ceiling at the freezer located on the west wall in the kitchen. Fire personnel also made a forced entry through the rear door and observed flames in the southwest storage room.
U.S. Attorney Fajardo Orshan commended the investigative efforts of ATF in this matter. She thanked the Miami-Dade Police Department’s Arson Squad for assisting with the investigation and the Miami-Dade Fire Rescue Department for responding to the scene, extinguishing the fire, and protecting the local community. This case was prosecuted by Assistant U. S. Attorney Marty Fulgueira Elfenbein.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Miami Man Pleads Guilty to Participating in $1.5 Million Apple Pay Fraud ConspiracyRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces that Daniel Butler (29, Miami) today pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft. Butler faces a minimum mandatory sentence of 2 years in federal prison for the aggravated identity theft count and up to 20 years in federal prison for the wire fraud count. A sentencing date has not yet been set.
According to the plea agreement, Butler and his co-conspirators fraudulently obtained access to at least 477 credit card accounts and linked those accounts to the Apple Pay application on their iPhones. Then, using their iPhones, Butler and the others made purchases using the victims’ credit card accounts, all without having to present actual credit cards to retailers. The group made more than $1.5 million in fraudulent purchases.
Three co-conspirators previously pleaded guilty for their roles in this scheme. Johnny Max Wesley (23, Miami) was sentenced in December 2018 to four years in federal prison. Laurent Pierre Louis (30, Miami) is scheduled to be sentenced on July 25, 2019, and Rachel Bishop (26, Miami), is scheduled to be sentenced on September 18, 2019.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Michael J. Coolican.
McLaughlin Man Sentenced for Possession of Firearms by Prohibited PersonRead the Press Release
United States Attorney Ron Parsons announced that a McLaughlin, South Dakota, man convicted of felon in possession of a firearm by prohibited person was sentenced on May 13, 2019, by U.S. District Judge Charles B. Kornmann.
Jesse Boyd Brown Otter, age 37, was sentenced to 46 months in federal prison, to be followed by 3 years of supervised release. He was ordered to pay $300 to the Federal Crime Victims Fund.
According to court documents, on or about the 28th day of December, 2017, in the District of South Dakota, Jesse Boyd Brown Otter, having previously been convicted of a crime punishable by imprisonment for a term exceeding one year, and being an unlawful user of a controlled substance, did knowingly possess a firearm and ammunition.
The Indictment alleges that Brown Otter possessed a Bond Arms, Model “Cowboy Texas Defender” 45 Long Colt caliber/410 gauge derringer-style handgun, bearing serial number 33176, and a Bond Arms, Model “Snake Slayer” 45 Long Colt caliber/410 gauge derringer-style handgun, bearing serial number 61571, and 4 rounds of Starline 45 Long Colt ammunition.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
The investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
Brown Otter was remanded to the custody of the U.S. Marshals Service.
Marion man indicted for lighting a fire in the Kenton Walmart which caused $3.5 million in damageRead the Press Release
A Marion man was indicted in federal court for lighting a fire in the Walmart in Kenton, which caused an estimated $3.5 million in damage.
Caleb T. Poole, 27, was indicted on one count of destroying or damaging property used in interstate commerce.
According to court documents:
An explosion and fire were reported on May 6 at the Walmart on East Columbus Street in Kenton. Police and fire responded and, after controlling the fire, determined the fire originated within a shopping cart that contained two thermoses, toilet paper, a lighter and remnants of an aerosol spray can.
A review of Walmart security videos show a man determined to be Poole using a credit card to buy two thermoses. He exited the store and walked to the gas station across the street, where he filled the thermoses with gasoline. Poole then reentered the store and was observed picking up toilet paper and hairspray, then walking with the items to the origin area of the fire. Video surveillance shows the fire starting in the area with flames rising as high as 20 feet, according to court documents.
Poole is in custody. The investigation is ongoing.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Hardin County Sheriff’s Office, the Kenton Police Department and the Federal Bureau of Investigation. Assistant U.S. Attorneys Thomas Weldon and Matthew D. Simko are handling the case.
An indictment is only a charge and is not evidence of guilt. The burden of proof is always on the government to prove a defendant guilty beyond a reasonable doubt.
Manchester Man Sentenced to 42 Months for Gang-Related Drug Trafficking in Hartford, Gun PossessionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that JEFFREY FERRY, also known as “30,” 32, of Manchester, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 42 months of imprisonment, followed by three years of supervised release, for drug and gun offenses.
According to court documents and statements made in court, this matter stems from an investigation conducted by the FBI’s Northern Connecticut Violent Crimes Task Force and Hartford Police Department’s Vice and Narcotics Division into the trafficking of narcotics and associated violence in Hartford’s South End by members and associates of the Almighty Latin Kings Nation (“Latin Kings”). The investigation, which included court-authorized wiretaps, physical surveillance and controlled purchases of narcotics, revealed that two alleged members of the Latin Kings operated separate drug trafficking organizations that distributed fentanyl, heroin, cocaine, and crack cocaine. The organizations used multiple locations to process, package, store and distribute narcotics, and possessed firearms in furtherance of their drug trafficking activities.
Ferry was a member of a drug trafficking organization that operated a “trap house” at 149 Wethersfield Avenue in Hartford as a distribution point for drug customers. Ferry delivered drugs to the trap house, and also sold fentanyl to his own customers. On May 22, 2018, an individual was shot and seriously wounded in an apparent robbery of the trap house.
On June 3, 2018, Ferry and a co-defendant were arrested on state charges after intercepted communications revealed that Ferry had a gun and planned to meet someone to settle a dispute. Hartford Police officers stopped a car Ferry was driving on Redding Street and located a loaded 9mm pistol in the car’s glove box.
Ferry’s criminal history includes convictions in 2004 for possessing a weapon in a motor vehicle, and in 2006 for criminal possession of a firearm.
Ferry has been detained since his arrest. On February 20, 2019, he pleaded guilty to one count of conspiracy to distribute fentanyl and one count of possession of a firearm by a convicted felon.
This matter is being investigated by the FBI’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department. The Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division and Shooting Task Force have provided valuable assistance to the investigation.
The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Manchester Man Arrested for Trafficking Synthetic CannaboidsRead the Press Release
CONCORD - Heath Palmer, 39, of Manchester, was arrested on a federal complaint charging him with possessing a synthetic cannabinoid product containing 5F-MDMB-PICA with intent to distribute, United States Attorney Scott W. Murray announced today.
The complaint filed in court alleges that on April 18, 2019, Palmer was observed by police officers conducting hand-to-hand sales from a car. The Manchester Police stopped Palmer and he voluntarily turned over the product he was selling. Palmer claimed that the product did not contain illegal substances. Testing by the New Hampshire State Police Forensic Laboratory confirmed, however, that the product did contain an illegal substance, 5F-MDMB-PICA.
On May 7, 2019, Palmer was informed by the Manchester Police that the substance he was selling was in fact illegal. Three days later, the Manchester Police observed Palmer continue to make hand-to-hand sales from a car. The police stopped the car and seized the product that Palmer was selling. The product was again tested and it contained the same illegal substance.
Palmer appeared before a federal magistrate judge today and was detained pending further proceedings.
The charges in the complaint are only allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
According to the DEA, synthetic cannabinoids, which commonly are referred to by names such as “Spice” or “K2,” are designer drugs that are made in laboratories. The chemicals often are sprayed onto plant substances and then smoked in order to obtain a high. These substances have severe adverse effects and have often led to overdoses and deaths. In addition to the dangers associated with the chemical substances themselves, the lack of manufacturing standards may lead to increased health risks.
The DEA issued a regulation on April 16, 2019, that made 5F-MDMB-PICA and several other synthetic cannabinoids Schedule I controlled substances. In its order, the DEA noted that this drug had been associated with over 47 overdoses in Connecticut and at least 244 overdoses in Washington, D.C. Further information is available at https://www.dea.gov/sites/default/files/sites/getsmartaboutdrugs.com/files/publications/DoA_2017Ed_Updated_6.16.17.pdf#page=88.
“Synthetic cannabinoids present a very serious risk to public health,” said U.S. Attorney Murray. “I urge residents of the Granite State to avoid these dangerous substances. You literally do not know what you are putting into your body and can jeopardize your health by using these potentially deadly drugs. We will work closely with our law enforcement partners to stop the distribution of synthetic cannabinoids in the Granite State.
“There is a misconception that synthetic cannabinoids, known on the street as synthetic marijuana, K2, and spice are safe. Synthetic cannabinoids are anything but safe,” said DEA Special Agent in Charge Brian D. Boyle. “They are a toxic cocktail of lethal chemicals with serious health and safety risks. This investigation represents the strength of New Hampshire law enforcement’s efforts to combat this emerging public threat.”
“I would like to thank the U.S. Attorney’s office for their help in this matter,” said Chief Carlo Capano, Manchester Police Department. “The collaboration we received from them was essential in getting to this point.”
The case was investigated by the Manchester Police Department and the Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorney Seth R. Aframe.
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Man Sentenced in Drug Conspiracy Following 55-pound Methamphetamine Seizure in Hall CountyRead the Press Release
United States Attorney Joe Kelly announced that United States District Judge Robert F. Rossiter, Jr. sentenced Elmer Alexander Andrade today to imprisonment for 175 months, to be followed by a 5-year term of supervised release. Andrade was convicted of conspiracy to distribute and possess with intent to distribute methamphetamine, in violation of Title 21 U.S.C. § 846.
On January 18, 2018, in Hall County, Nebraska, a Nebraska State Trooper stopped a black Ford Expedition, driven by Andrade, for a traffic violation. Investigators searched the Expedition and recovered approximately 55 pounds of methamphetamine. Investigators subsequently executed a search warrant at an apartment in Hastings, Nebraska. Among the items seized from the apartment were narcotics packaging material, a scale, police scanners, ledgers, $17,820 in United States Currency, and an AR-15 firearm.
The case was investigated by the Central Nebraska Drug and Safe Streets Task Force.
Man Caught on Wiretap Buying Heroin Fined $3,000 and Sentenced to Federal ProbationRead the Press Release
A man whose phone calls and text messages were intercepted by police as he purchased heroin was fined and sentenced on May 14, 2019, to probation and home detention.
Ray Robertson, age 53, from Cedar Rapids, Iowa, received the sentence after a November 1, 2018, guilty plea to using a communication facility to commit a felony drug crime.
Information disclosed at the sentencing hearing indicates that law enforcement was conducting a court-authorized wiretap investigation when Robertson was intercepted, on multiple occasions, purchasing heroin. Robertson used his cell phone to make phone calls and text messages to arrange the purchases of the heroin. Because Robertson had prior drug-related convictions, his purchase and possession of heroin was a felony under federal law.
Robertson was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Robertson must serve a three-year term of probation, a condition of which is that he serve a 60-day term of home detention. Robertson must also pay a fine of $3,000.
The case was prosecuted by Assistant United States Attorney Justin Lightfoot and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice, by the Drug Enforcement Administration (DEA) Task Force, consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; and the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-105.
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Long Island High School Teacher Pleads Guilty to Transportation and Possession of Child PornographyRead the Press Release
Joseph Zanco, a teacher at Massapequa High School, pleaded guilty today at the federal courthouse in Central Islip to transportation and possession of child pornography. The proceeding was held before United States District Judge Joseph F. Bianco. When sentenced, Zanco faces a mandatory minimum of five years’ and a maximum of 20 years’ imprisonment, as well as forfeiture and a fine of up to $250,000.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York, announced the guilty plea.
In April 2018, while a teacher at Massapequa High School, Zanco began uploading hundreds of images of child pornography to the cloud-based Google Drive storage feature of his Google account. In accordance with its policies and federal law, Google flagged these uploads, suspended the defendant’s account, and notified law enforcement authorities. Federal prosecutors and agents then obtained search warrants and recovered from Zanco’s Google account the same child pornography Google had reported, as well as additional images and videos containing child pornography from Zanco’s laptop computer and cell phone.
“Zanco now faces years in prison for victimizing children by possessing and transporting images of minors being sexually abused, at the same time he was employed as a teacher and entrusted with the safety and well-being of students,” stated United States Attorney Donoghue. “The protection of innocent children is a priority for this Office and our law enforcement partners. We will continue to make every effort to ensure that those who contribute to the victimization of children are brought to justice.” Mr. Donoghue extended his grateful appreciation to ICE-HSI’s Child Exploitation Group for its investigative work and assistance.
This prosecution is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Department of Justice Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Michael R. Maffei is in charge of the prosecution.
The Defendant:
JOSEPH M. ZANCO
Age: 44
Massapequa, New YorkE.D.N.Y. Docket No. 18-CR-412 (JFB)
Local Law Enforcement Officer Honored for Commitment to Drug Abuse PreventionRead the Press Release
A law enforcement officer from Sioux City, Iowa, is being honored by the United States Attorney’s Offices for the Northern and Southern Districts of Iowa and the Drug Enforcement Administration (DEA) for his commitment to reducing drug abuse. A recipient of the 2018 Enrique S. Camarena Award is Lieutenant Brad Bollinger of the Sioux City Police Department.
The award is named after Enrique “Kiki” Camarena, who was an 11-year veteran agent of the DEA before being kidnapped, brutally tortured and then murdered in Mexico in 1985 while working undercover gathering information and evidence about drug lords. This award is presented each year to local law enforcement officers who best exemplify the qualities and principles for which Agent Camarena gave his life—specifically, making their communities a safer place to live through outstanding drug prevention and enforcement efforts.
This year’s award recipient has gone above and beyond the call of duty in pursuit of a drug-free community:
- Lieutenant Brad Bollinger has demonstrated a lifelong dedication to fighting drug abuse and working with young people. Through his work for many years with the GREAT and DARE programs, Lieutenant Bollinger provided valuable anti-drug and anti-gang curriculum to young students in multiple schools. In his capacity leading the Department’s Youth Bureau and as the Community Policing Coordinator, Lieutenant Bollinger developed and coordinated numerous programming activities aimed at keeping young people involved in lawful activities and away from criminal activity and drug abuse. From creating programs such as the “Books for Kids” program, to securing grants to combat opioid abuse, to serving on various boards and advisory committees focused on combatting drug, alcohol, and tobacco abuse among minors, Lieutenant Bollinger has demonstrated a robust passion for securing bright futures for young people in the community.
Peter E. Deegan, Jr., United States Attorney for the Northern District of Iowa, stated, “Lieutenant Bollinger is a worthy recipient of the Enrique S. Camarena award. He is a true public servant who recognizes that there are certain problems that cannot be solved through criminal prosecution alone. Sioux City is safer due to his hard work and dedication to the young people in our community.”
“The Enrique S. Camarena award is given each year to law enforcement professionals who personify the strong character and values of our fallen colleague,” Darin Thimmesch, Acting Special Agent in Charge of the DEA Omaha Division said. “These award winners truly represent the best of Special Agent Camarena with their passion, commitment and generosity continuously on display in their work and home life. It is an honor to recognize these men for their outstanding investigative efforts that have aided in disrupting the illegal activities of drug trafficking organizations from in and around Iowa.”
U.S. Attorney Deegan will present Lt. Bollinger his award at the Sioux City Police Department’s Spring Awards and Promotions Ceremony on May 16, 2019. The ceremony will be held at 7:00p.m. at the Betty Strong Encounter Center.
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