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16 May 2019
Libby tax evader sentenced to probationRead the Press Release
MISSOULA—Libby resident Candace Hessel Cummings, who admitted to not paying income taxes, was sentenced today to five years of probation and ordered to pay $48,516 restitution, U.S. Attorney Kurt Alme said.
Cummings, 65, pleaded guilty to tax evasion in January.
Chief U.S. District Judge Dana L. Christensen presided.
Prosecutors said in court records that Cummings failed to report income of about $140,188 in 2012, which produced a tax loss of $35,096, and income of about $52,500 in 2013, which produced a tax loss of $13,420.
In late 2011, Cummings became the financial caretaker for a person who was unable to care for herself. Adult Protective Services assigned a power of attorney to Cummings on the individual’s behalf. APS told Cummings she needed to keep track of receipts for expenses she paid for the individual, and Cummings agreed to serve as a fiduciary without compensation.
In 2012 and 2013, Cummings used the individual’s money for personal expenses and failed to report the money as income on her own tax returns.
In 2013, after several suspicious transactions involving the individual’s certificates of deposit and savings bonds, the bank contacted APS and local law enforcement. APS revoked Cummings’ power of attorney based on the suspicious activity.
Assistant U.S. Attorney Timothy Racicot prosecuted case, which was investigated by the IRS’s Criminal Investigation Division.
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Lawrence Man Pleads Guilty to Participating in A Conspiracy to Distribute FentanylRead the Press Release
CONCORD – United States Attorney Scott W. Murray announced that that Geudin Nivar Baez, a/k/a/ Jhonatan Mateo, 31, of Lawrence, Massachusetts, pleaded guilty in federal court on Wednesday to participating in a conspiracy to distribute fentanyl.
According to court documents and statements make in court, in May of 2018, Nivar’s co-defendant Santo Benito Lara participated in a conspiracy to sell fentanyl to a customer in Salem, New Hampshire. After the DEA received information about the conspiracy, it began an investigation into Lara’s activities. Between May and September of 2018, Nivar and Lara sold fentanyl in Lawrence to a cooperating individual on multiple occasions.
Lara was found guilty by a jury on May 10, 2019 and is scheduled to be sentenced on August 27, 2019. Nivar is scheduled to be sentenced on August 27, 2019.
“Interstate fentanyl traffickers facilitate the sale of a lethal drug in New Hampshire,” said U.S. Attorney Murray. “Close cooperation by law enforcement agencies operating in both New Hampshire and Massachusetts is necessary to address this problem. We will continue to coordinate efforts to identify and prosecute those who are responsible for distributing this deadly drug in the Granite State.”
This matter was investigated by the DEA, with assistance from the New Hampshire State Police and the Essex County (MA) Sheriff’s Department. The case is being prosecuted by Assistant U.S. Attorneys Anna Dronzek and Jarad Hodes.
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Kentucky Correctional Officer Pleads Guilty to Beating Handcuffed and Compliant InmateRead the Press Release
Devan Edwards, 22, a former correctional officer at the Louisville Metro Department of Corrections, one of three officers charged last week in connection with the beating of a handcuffed and compliant inmate, pleaded guilty today, announced Assistant Attorney General Eric Dreiband for the Department of Justice’s Civil Rights Division, U.S. Attorney Russell Coleman for the Western District of Kentucky, and FBI Louisville Special Agent in Charge James Robert Brown Jr.
In open court today, Edwards admitted that he and another officer removed an inmate from his cell, handcuffed him, and took him to a holding cell outside the view of surveillance cameras. In the holding cell, while the inmate was seated, handcuffed, and not resisting, the other officer grabbed the inmate by the neck with his right hand and began to strangle him. The inmate struggled to breathe. After the other officer released his grip on the inmate’s neck, the other officer and Edwards punched the inmate repeatedly in the head until a third officer intervened. After the incident, at his supervisor’s direction, Edwards wrote and filed a use-of-force report that exaggerated the inmate’s initial non-compliance and omitted any mention of the beating.
“Correctional officers who abuse their power and harm inmates violate our civil rights laws, said Assistant Attorney General Eric Dreiband. “This type of abuse towards inmates will not be tolerated by the Department of Justice.”
“The rule of law is only upheld in our Commonwealth when all Kentuckians are held to the same standard regardless of position,” stated U.S. Attorney Russell Coleman.
“Today’s guilty plea should send a clear message that the FBI and the Department of Justice will not tolerate the abuse of power or victimization of citizens by anyone in law enforcement,” said Special Agent in Charge Robert Brown Jr. “The Kentucky Public Corruption and Civil Rights Task Force was set up to insure the integrity of our criminal justice system for all citizens. The Task Force will vigorously investigate these kinds of cases, and those who violate the public's trust will be held accountable.”
Edwards faces a maximum penalty of 10 years in prison and a $250,000 fine.
This case was investigated jointly by the FBI’s Louisville Resident Agency Office and by the Louisville Metro Police Department’s Public Integrity Unit. It is being prosecuted by Trial Attorney Christopher J. Perras of the Department of Justice’s Civil Rights Division, and Assistant United States Attorney Amanda Gregory of the Western District of Kentucky.
Jury Convicts Chesapeake Man of Auto Loan Fraud SchemeRead the Press Release
NORFOLK, Va. – A federal jury convicted a Chesapeake man today on charges of credit union fraud and aggravated identity theft.
According to court records and evidence presented at trial, Adante Leshaun Dupree, 25, took part in a scheme to defraud Navy Federal Credit Union. Dupree and his co-conspirators bought the stolen identities of out-of-state victims using the darkweb, opened Navy Federal Credit Union accounts in their name, and applied for auto loans from the credit union in the names of the identity theft victims. The conspirators then paid a woman to impersonate the identity theft victims, pick up the loan checks, and cash them at a Norfolk check cashing store. The scheme unraveled after the woman was caught trying to cash a second auto loan check while wearing a wig to impersonate a victim decades older than the impersonator’s true age.
Dupree faces a maximum penalty of 30 years of in prison for the credit union fraud and a mandatory minimum consecutive sentence of two years for aggravated identity theft when he is sentenced on September 19. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk, Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, and Larry D. Boone, Chief of Norfolk Police, made the announcement after U.S. District Judge Arenda Wright Allen accepted the verdict. Assistant U.S. Attorneys Andrew Bosse and Daniel T. Young are prosecuting the case.
The Virginia Army National Guard Counter Drug Task Force provided significant assistance in this investigation.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-172-2.
Jacksonville Woman Pleads Guilty to Committing Aggravated Identity Theft and Fraud While on Federal Supervised ReleaseRead the Press Release
Jacksonville, Florida – Jaceta Anya Streeter (38, Jacksonville) has pleaded guilty to aggravated identity theft and wire fraud. She faces up to 20 years in federal prison on the wire fraud charge and a consecutive minimum mandatory term of 2 years in federal prison for the aggravated identity theft charge. Streeter was also ordered to pay restitution to her victims.
According to court documents, in 2006, after being found guilty at trial for participating in a scheme involving the passing of counterfeit checks, Streeter was sentenced to seven years in federal prison, followed by three years of supervised release. After she was released from prison and while on federal supervised release, the court issued a warrant for Streeter, as her whereabouts were unknown and she was considered a fugitive. When the U.S. Marshals Service eventually located and arrested her in Orlando, she had multiple counterfeit forms of identification in her possession. A follow-up investigation by law enforcement determined that Streeter had engaged in a scheme involving credit card fraud and identity theft. She obtained credit card account numbers for various victims, along with the victims’ personal identifiable information. Using this information, Streeter went to various merchants, including home improvement and clothing stores, and fraudulently purchased large quantities of merchandise.
This case was investigated by the Jacksonville Sheriff’s Office, the U.S. Department of Treasury – Office of Inspector General Jacksonville Field Office, the U.S. Marshals Service, and the United States Secret Service Jacksonville Field Office. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
Jackson Man Sentenced to 9 Years in Federal Prison for Illegally Possessing a Firearm as Prior Convicted FelonRead the Press Release
Jackson, Miss. – Rodrecas Tims, 33, of Jackson, was sentenced yesterday by U.S. District Judge Henry T. Wingate to 108 months in federal prison, followed by three years of supervised release, for being a convicted felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Tims was also ordered to pay a $1,500 fine.
On November 1, 2018, Jackson Police officers approached Tims as he was walking away from his car in a Jackson parking lot after the officers smelled, and observed in plain view, marijuana rolled into a “cigar” in an ashtray. Tims was found to have two pistols concealed in this waistband of his pants. One of the pistols was stolen. Tims was previously convicted of armed robbery in 2000 and again in 2005, and unlawfully possessing a firearm in 2005.
On November 27, 2018, Tims was charged in a federal indictment with possession of a firearm by a convicted felon. He pled guilty before Judge Wingate on February 14, 2019.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Bert Carraway.
Jackson Man Pleads Guilty Under Project EJECT to Illegally Possessing a GunRead the Press Release
Jackson, Miss. – Mackee Donell Jefferson, 37, of Jackson, pled guilty today before Senior U.S. District Court Judge Tom S. Lee to 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 in Mississippi.
On September 14, 2018, Jefferson was waiting in line at a fast food restaurant in Jackson. He became irritated at the long wait in the drive-thru line and approached the drive-thru window. He then produced a black handgun and tapped on the drive-thru window, in an apparent attempt to accelerate his fast food service. A restaurant employee called the Jackson Police Department and officers responded. The officers questioned Jefferson and he admitted to possessing a gun. Jefferson has prior felony convictions for auto burglary in Rankin County and auto theft in Hinds County.
Mackee is currently in custody and will be sentenced by Judge Lee on August 15, 2019 at 9:00 a.m. He faces a maximum penalty of ten years in prison and a $250,000.00 fine.
The case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Bert Carraway.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Justice Expel Crime Together." PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Independence Sex Offender Sentenced to 15 Years for Child PornographyRead the Press Release
KANSAS CITY, Mo. – A registered sex offender in Independence, Mo., has been sentenced in federal court for possessing and exchanging child pornography over the internet.
Harrison Elliot Combs, 28, was sentenced by U.S. District Judge Roseann Ketchmark on Wednesday, May 15, to 15 years in federal prison without parole. The court also sentenced Combs to 20 years of supervised release following incarceration.
Combs, a registered sex offender, has a prior conviction for possessing child pornography.
On Aug. 10, 2018, Combs pleaded guilty to one count of receiving child pornography over the internet, eight counts of attempting to distribute child pornography over the internet, and one count of possessing child pornography.
This investigation began when a law enforcement officer was conducting an investigation into a peer-to-peer file-sharing network. On three separate occasions, Combs’s computer was downloading child pornography from the network. On Sept. 23, 2016, officers executed a search warrant at Combs’s residence and seized his cell phone and other items. Examiners discovered approximately 1,631 images and 168 videos of child pornography on those items. The majority of the images appeared to be of infant- to toddler-aged females involved in sexually explicit conduct by adults. In addition to his cell phone, child pornography files were also associated with computers, a gaming system, a thumb drive, and optical discs belonging to Combs.
In January 2017, Combs’s computer was again identified by law enforcement as downloading child pornography from a peer-to-peer file-sharing network on several occasions. There were approximately 1,962 image and video files downloaded between Jan. 7 and Jan. 16, 2017. The files included prepubescent males and females as young as toddlers involved in sexually explicit conduct by adults. Officers executed a search warrant at Combs’s residence, where they arrested Combs and seized his cell phone.
This case was prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Illegal Alien MS-13 Member Sentenced to Nineteen Years in Federal Prison for Violent Crime and Drug DistributionRead the Press Release
NASHVILLE, Tenn. – May 16, 2019 – Gerson Serrano-Ramirez, aka Frijole, 31, an illegal alien and MS-13 gang member from El Salvador, was sentenced today to 19 years in prison, announced U.S. Attorney Don Cochran for the Middle District of Tennessee . At the completion of his sentence, Serrano-Ramirez will be deported from the United States.
Serrano-Ramirez was convicted by a federal jury in September 2018, of using physical force to tamper with a witness; being an illegal alien in possession of a firearm; illegally re-entering the United States after previously being deported; multiple counts of cocaine distribution; and multiple counts of other firearms violations.
According to evidence and testimony presented at trial, in July 2017, the activities of Seranno-Ramirez and other MS-13 Gang members were disrupting the normal operation and business of a local night club and this was brought to the attention of Serrano-Ramirez by an acquaintance, with a request to tone down their disruptive behavior. Serrano-Ramirez later invited the individual to his home in the Antioch, Tennessee area, where he subsequently assaulted him by pointing an assault rifle at him; strangling him with the rifle strap; spraying bleach into his eyes; and then attempted to suffocate him by placing a plastic bag over his head. Finally, while clamping the individual’s finger with a pair of pliers and holding an assault rifle on him, Seranno-Ramirez told the individual that if he told anyone about the assault that he would kill him and his mother.
Evidence introduced during the trial also included video of the assault which was captured on an in-home security system at Serrano-Ramirez’ house and videos of him packaging and selling cocaine from the residence. This video was discovered and seized during the subsequent execution of a search warrant. Also seized during this search was an AK-47 assault rifle; multiple rifle magazines; 582 rounds of ammunition; body armor; and a small amount of cocaine and marijuana.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Drug Enforcement Administration; Homeland Security Investigations – Immigration & Customs Enforcement; and the Metropolitan Nashville Police Department Gang Unit. Assistant U.S. Attorney Ahmed Safeeullah and Department of Justice Trial Attorney Matthew Hoff prosecuted the case.
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Houma Man Sentenced to Five Years for Receiving Child PornographyRead the Press Release
NEW ORLEANS, LOUISIANA – THOMAS BROUSSARD (“BROUSSARD”), age 69, of Houma, Louisiana, was sentenced Tuesday, May 14, 2019 for receiving child pornography, announced United States Attorney Peter G. Strasser.
According to documents filed in federal court, on January 23, 2018, agents with the Louisiana Bureau of Investigation, U.S. Department of Homeland Security, Homeland Security Investigations (“HSI”), and the Louisiana State Police executed a search warrant and arrested BROUSSARD at his Houma home after finding him in possession of several items, including a laptop computer and thumb drive containing images depicting the sexual victimization of prepubescent children. A subsequent computer forensic search by HSI agents revealed over 11,000 images and 85 videos of prepubescent child pornography.
U.S. District Judge Jay C. Zainey sentenced BROUSSARD to five (5) years incarceration to be followed by five (5) years supervised release. BROUSSARD will also be required to register as a sex offender pursuant to the Sex Offender Registration and Notification Act.
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.”
U.S. Attorney Strasser praised the work of the U. S. Department of Homeland Security, Homeland Security Investigations, the Louisiana Bureau of Investigation, the Louisiana State Police, and the Terrebonne Parish Sheriff’s Office in investigating this matter. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Financial Crimes Unit Supervisor, Assistant U.S. Attorney Brian M. Klebba.
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Heroin Conspiracy Sends Doctor to Federal PrisonRead the Press Release
CORPUS CHRISTI, Texas – A 37-year-old U.S. citizen who was living in Mexico has been ordered to federal prison following his conviction of conspiring to possess with the intent to distribute more than 10 kilograms of heroin, announced U.S. Attorney Ryan K. Patrick.
Jose Roberto Moya pleaded guilty Oct. 26, 2018.
Today, U.S. District Judge Nelva Gonzales Ramos determined Moya had a leadership role in the drug conspiracy and ordered him to serve 144 months in federal prison followed by five years of supervised release.
Moya is a medical doctor who operated a clinic in Reynosa, Mexico.
Law enforcement stopped him June 6, 2018, for a traffic violation just south of Alice as he was driving with two female passengers in the vehicle. As the females exited the car, deputies noticed unusual bulges beneath their clothing. A subsequent pat-down revealed nine bundles of heroin with a total weight of more than 22 pounds strapped to their bodies. Both of the females later plead guilty to conspiring to possess with intent to distribute heroin.
Moya will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation with the assistance of the Jim Wells County Sheriff’s Office. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
Hartford Man Sentenced to 42 Months in Federal Prison for Illegal Gun PossessionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ALVIN CRAWFORD, also known as “Nardy,” 34, of Hartford, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 42 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.
According to court documents and statements made in court, on April 2, 2018, Crawford, holding a yellow plastic bag, exited a car and ran from Hartford Police in the area of Rockville Street in Hartford. Crawford ignored verbal commands to stop running, tossed the yellow bag over the fence, scaled the fence, picked up the bag and continued to run. Officers apprehended Crawford on Westland Street shortly after he had dropped the bag. A search of the bag revealed a Taurus .38 Special revolver and five rounds of ammunition.
Crawford’s criminal history includes state felony convictions for criminal possession of a firearm, carrying a pistol without a permit, violation of a protective order, and assault in the second degree. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Crawford has been detained since his arrest. On December 11, 2018, he pleaded guilty to one count of possession of firearm by a convicted felon.
This matter was investigated by the Hartford Police Department and the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, which includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The case was prosecuted by Assistant U.S. Attorney Brian P. Leaming.
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 neighborhoods safer for everyone.
Hancock County addiction center co-owner sentenced for illegally selling suboxoneRead the Press Release
CLARKSBURG, WEST VIRGINIA – Eric Drake, of Weirton, West Virginia, was sentenced to time served for illegally distributing controlled substances, United States Attorney Bill Powell announced.
Drake, age 49, pled guilty to one count of “Distribution of a Controlled Substance” in October 2018. Drake admitted to selling suboxone in Hancock County in May 2016.
Drake was also ordered to pay $100,000 in a money judgment. Drake was co-owner of an addiction treatment center, Advance Healthcare, Inc., located at 3300 West Street in Weirton.
Assistant U.S. Attorneys Sarah E. Wagner and Robert H. McWilliams, Jr. prosecuted the case on behalf of the government. The Drug Enforcement Administration; the Federal Bureau of Investigation; the Office of Inspector General at the U.S. Department of Health and Human Services; the WV Offices of the Insurance Commissioner Fraud Division; the WV Medicaid Fraud Control Unit; the Office of Ohio Attorney General Health Care Fraud; the Ohio Bureau of Workers’ Compensation; the Hancock-Brook-Weirton Drug Task Force, a HIDTA-funded initiative; the Greater Harrison County Drug Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Hancock County Sheriff’s Office; and the Weirton Police Department investigated.
This case is the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.Senior U.S. District Judge Irene M. Keeley presided.
Guatemalan Man Sentenced for Transferring False Identification DocumentsRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that MARIO ARGUETA-CHUN, age 41, a native of Guatemala, was sentenced today after previously pleading guilty to a one-count bill of information charging him with unlawfully transferring false identification documents.
United States District Court Judge Eldon E. Fallon sentenced ARGUETA-CHUN to time served (10 months of imprisonment) and a $100 special assessment fee. The defendant will be surrendered to the custody of Immigration and Customs Enforcement for removal proceedings.
According to court documents, in November 2016, Homeland Security Investigations (HSI) received information that an unidentified male was selling fraudulent Social Security and U.S. Lawful Permanent Resident cards to buyers in the New Orleans area. During the investigation, agents learned that ARGUETA-CHUN was one of the people selling the fraudulent identification cards. As a result, the agents purchased documents during undercover buys from the defendant on six (6) occasions, wherein the buyer would have his picture on the documents along with a fraudulent Social Security number. A Forensic Document Examiner analyzed all of the documents purchased from ARGUETA-CHUN and determined that they were counterfeit. The Social Security numbers belonged to people other than the names placed onto the documents and contained holograms, symbols, and sequences of numbers and letters which made the documents appear to have been issued under the authority of the United States.
U.S. Attorney Strasser praised the work of Homeland Security Investigations and the Jefferson Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Greek Ship Management Company, Corporate Vessel Owner, and Chief Engineer Indicted for Falsification of Pollution Records, Obstruction of JusticeRead the Press Release
A federal grand jury in Wilmington, Delaware, returned a four-count indictment today charging Evridiki Navigation Inc., Liquimar Tankers Management Services Inc., and Nikolaos Vastardis with failing to keep accurate pollution control records, falsifying records, and obstruction of justice, the Justice Department announced.
According to the indictment, the charges stem from the falsification of records and other acts designed to conceal from the Coast Guard inspectors impermissible overboard discharges of oily bilge water from the Nigerian-flagged oil tanker, M/T Evridiki. According to the indictment, on or about March 11, 2019, Vastardis, who was the chief engineer for the ship, failed to maintain an accurate oil record book which fully recorded both the discharge overboard of bilge water that had accumulated in machinery spaces, and any failure of the ship’s oil filtering equipment. Additionally, when the ship’s pollution control equipment was inspected by the Coast Guard, Vastardis made false statements concerning how the equipment was operated at sea, and demonstrated how the equipment was operated at sea in a manner designed to trick the equipment into reporting the discharge of oily bilge water at permissible levels.
The vessel’s management company, Liquimar Tankers Management Services; the vessel’s owner, Evridiki Navigation; and Vastardis are all charged with failing to maintain an accurate oil record book as required by the Act to Prevent Pollution from Ships, a U.S. law which implements the International Convention for the Prevention of Pollution from Ships, commonly known as MARPOL. The defendants are also charged with falsification of records, obstruction of justice, and making false statements.
An indictment is merely an accusation and defendants are presumed innocent unless and until proven guilty in a court of law.
The case was investigated by the Coast Guard Investigative Service. The case is being prosecuted by Assistant United States Attorney Edmund Falgowski of the United States Attorney’s Office for the District of Delaware, and Joel La Bissonniere, Trial Attorney with the Department of Justice’s Environmental Crimes Section.
GozNym Cyber-Criminal Network Operating out of Europe Targeting American Entities Dismantled in International OperationRead the Press Release
A complex transnational organized cybercrime network that used GozNym malware in an attempt to steal an estimated $100 million from unsuspecting victims in the United States and around the world has been dismantled as part of an international law enforcement operation. GozNym infected tens of thousands of victim computers worldwide, primarily in the United States and Europe. The operation was highlighted by the unprecedented initiation of criminal prosecutions against members of the network in four different countries as a result of cooperation between the United States, Georgia, Ukraine, Moldova, Germany, Bulgaria, Europol and Eurojust.
United States Attorney Scott W. Brady of the Western District of Pennsylvania made the announcement at Europol, located in The Hague, Netherlands, along with his international partners.
The operation was conducted by the United States Attorney’s Office for the Western District of Pennsylvania and the FBI’s Pittsburgh Field Office, along with the Office of the Prosecutor General of Georgia, Prosecutor General’s Office of Ukraine, Office of the Prosecutor General of the Republic of Moldova, Public Prosecutor’s Office Verden (Germany), the Supreme Prosecutor’s Office of Cassation of the Republic of Bulgaria, Ministry of Internal Affairs of Georgia, National Police of Ukraine, General Police Inspectorate of the Republic of Moldova, the Luneburg Police of Germany and the Republic of Bulgaria’s General Directorate for Combatting Organized Crime with the significant assistance of Europol and Eurojust.
“International law enforcement has recognized that the only way to truly disrupt and defeat transnational, anonymized networks is to do so in partnership,” said U.S. Attorney Brady. “The collaborative and simultaneous prosecution of the members of the GozNym criminal conspiracy in four countries represents a paradigm shift in how we investigate and prosecute cybercrime. Cybercrime victimizes people all over the world. This prosecution represents an international cooperative effort to bring cybercriminals to justice.”
Earlier today, the U.S. Attorney’s Office for the Western District of Pennsylvania unsealed an Indictment returned by a federal grand jury in Pittsburgh charging 10 members of the GozNym criminal network with conspiracy to commit computer fraud, conspiracy to commit wire fraud and bank fraud, and conspiracy to commit money laundering. An eleventh member of the conspiracy was previously charged in a related Indictment. The victims of these crimes were primarily U.S. businesses and their financial institutions, including a number of victims located in the Western District of Pennsylvania.
“This takedown highlights the importance of collaborating with our international law enforcement partners against this evolution of organized cybercrime,” said FBI Pittsburgh Special Agent in Charge Robert Jones. “Successful investigation and prosecution is only possible by sharing intelligence, credit and responsibility. Our adversaries know that we are weakest along the seams and this case is a fantastic example of what we can accomplish collectively."
According to the Indictment, the defendants conspired to:
- infect victims’ computers with GozNym malware designed to capture victims’ online banking login credentials;
- use the captured login credentials to fraudulently gain unauthorized access to victims’ online bank accounts; and,
- steal money from victims’ bank accounts and launder those funds using U.S. and foreign beneficiary bank accounts controlled by the defendants.
The defendants reside in Russia, Georgia, Ukraine, Moldova and Bulgaria. The operation was an unprecedented international effort to share evidence and initiate criminal prosecutions against members of the same criminal network in multiple countries.
At the request of the United States, Krasimir Nikolov, aka “pablopicasso,” “salvadordali,” and “karlo,” of Varna, Bulgaria, was searched and arrested by Bulgarian authorities and extradited to the United States in December 2016 to face prosecution in the Western District of Pennsylvania. Nikolov’s primary role in the conspiracy was that of a “casher” or “account takeover specialist” who used victims’ stolen online banking credentials captured by GozNym malware to access victims’ online bank accounts and attempt to steal victims’ money through electronic funds transfers into bank accounts controlled by fellow conspirators. Nikolov is named as a GozNym conspirator in the newly unsealed indictment, although he is charged in a related Indictment filed in the Western District of Pennsylvania. Nikolov entered a guilty plea in federal court in Pittsburgh on charges relating to his participation in the GozNym conspiracy on April 10, 2019. He is scheduled to be sentenced on Aug. 30, 2019.
Five of the named defendants reside in Russia and remain fugitives from justice. However, to overcome the inability to extradite the remaining defendants to the United States for prosecution, an unprecedented effort was undertaken to share evidence and build prosecutions against defendants in the remaining countries where they reside, including Georgia, Ukraine and Moldova. The prosecutions are based on shared evidence acquired through coordinated searches for evidence in Georgia, Ukraine, Moldova and Bulgaria, as well as from evidence shared by the United States and Germany from their respective investigations.
The GozNym network exemplified the concept of “cybercrime as a service.” According to the Indictment, the defendants advertised their specialized technical skills and services on underground, Russian-language, online criminal forums. The GozNym network was formed when these individuals were recruited from the online forums and came together to use their specialized technical skills and services in furtherance of the conspiracy.
According to the Indictment, Alexander Konovolov, aka “NoNe,” and “none_1,” age 35, of Tbilisi, Georgia, was the primary organizer and leader of the GozNym network who controlled more than 41,000 victim computers infected with GozNym malware. Konovolov assembled the team of cybercriminals charged in the Indictment, in part by recruiting them through the underground online criminal forums. Marat Kazandjian, aka “phant0m,” age 31, of Kazakhstan and Tbilisi, Georgia, was allegedly Konovolov’s primary assistant and technical administrator. Konovolov and Kazandjian are being prosecuted in Georgia for their respective roles in the GozNym criminal network.
Gennady Kapkanov, aka “Hennadiy Kapkanov,” “flux,” “ffhost,” “firestarter,” and “User 41,” age 36, of Poltava, Ukraine, was an administrator of a bulletproof hosting service known by law enforcement and computer security researchers as the “Avalanche” network. This network provided services to more than 200 cybercriminals, including Konovolov and Kazandjian, and it hosted more than 20 different malware campaigns, including GozNym. Kapkanov’s apartment in Poltava, Ukraine was searched in November 2016 during a German-led operation to dismantle the network’s servers and other infrastructure. Kapkanov was arrested for shooting an assault rifle through the door of his apartment at Ukrainian law enforcement officers conducting the search. Through the coordinated efforts being announced today, Kapkanov is now facing prosecution in Ukraine for his role in providing bulletproof hosting services to the GozNym criminal network.
Alexander Van Hoof, aka “al666,” age 45, of Nikolaev, Ukraine, was a “cash-out” or “drop master” who provided fellow members of the conspiracy with access to bank accounts he controlled that were designated to receive stolen funds from GozNym victims’ online bank accounts.
Eduard Malanici, aka “JekaProf,” and “procryptgroup, age 32, of Balti, Moldova, provided crypting services to cybercriminals. Malanici crypted GozNym malware in furtherance of the conspiracy to enable the malware to avoid detection by anti-virus tools and protective software on victims’ computers. Malanici, along with two associates, is being prosecuted in Moldova.
Victims of the GozNym malware attacks include:
- An asphalt and paving business located in New Castle, Pennsylvania;
- A law firm located in Washington, DC;
- A church located in Southlake, Texas;
- An association dedicated to providing recreation programs and other services to persons with disabilities located in Downers Grove, Illinois;
- A distributor of neurosurgical and medical equipment headquartered in Freiburg, Germany, with a U.S. subsidiary in Cape Coral, Florida;
- A furniture business located in Chula Vista, California;
- A provider of electrical safety devices located in Cumberland, Rhode Island;
- A contracting business located in Warren, Michigan;
- A casino located in Gulfport, Mississippi;
- A stud farm located in Midway, Kentucky; and
- A law office located in Wellesley, Massachusetts;
Five Russian nationals charged in the Indictment who remain fugitives from justice include:
Vladimir Gorin, aka “Voland,” “mrv,” and “riddler,” of Orenburg, Russia. Gorin was a malware developer who oversaw the creation, development, management, and leasing of GozNym malware, including to Alexander Konovolov.
Konstantin Volchkov, aka “elvi,” age 28, of Moscow, Russia, provided spamming services to cybercriminals. Volchkov conducted spamming operations of GozNym malware on behalf of the conspiracy. The spamming operations involved the mass distribution of GozNym malware through “phishing” emails. The phishing emails were designed to appear legitimate to entice the victim recipients into opening the emails and clicking on a malicious link or attachment, which facilitated the downloading of GozNym onto the victims’ computers.
Ruslan Katirkin, aka “stratos,” and “xen,” age 31, of Kazan, Russia, resided in Khmelnytskyi, Ukraine, during the time frame of the charged conspiracy. Katirkin, like Krasimir Nikolov, was a “casher” or “account takeover specialist” who used victims’ stolen online banking credentials captured by GozNym malware to access victims’ online bank accounts and attempt to steal victims’ money through electronic funds transfers into bank accounts controlled by fellow conspirators.
Viktor Vladimirovich Eremenko, aka “nfcorpi,” age 30, of Stavropol, Russia, and Farkhad Rauf Ogly Manokhin, aka “frusa,” of Volgograd, Russia, were “cash-outs” or “drop masters” on behalf of the GozNym criminal network. Like Alexander Van Hoof, Eremenko and Manokhin provided fellow members of the conspiracy with access to bank accounts they controlled that were designated to receive stolen funds from GozNym victims’ online bank accounts. Manokhin was arrested at the request of the United States while visiting Sri Lanka in February 2017. Following his arrest, Manokhin was released on bail but was required to remain in Sri Lanka pending the outcome of his extradition proceedings to the United States. In December 2017, Manokhin unlawfully absconded from Sri Lanka and successfully fled back to Russia prior to the conclusion of the extradition proceedings.
Other agencies and organizations partnering in this effort include the United States Secret Service, the National Cyber-Forensics and Training Alliance (NCFTA) in Pittsburgh and the Shadowserver Foundation. The Justice Department’s Office of International Affairs provided significant assistance throughout the investigation and spearheaded the efforts to enable the United States to request searches, arrests, and extraditions in the foreign countries as well as the sharing of evidence with those countries through Mutual Legal Assistance Treaty requests.
The case is being prosecuted by Assistant U.S. Attorney Charles A. “Tod” Eberle, Chief of National Security and Cybercrime for the Western District of Pennsylvania.
Gangster Disciple Pleads Guilty to Committing Violent Crimes in Aid of Racketeering, Distribution of Marijuana and Firearms ViolationsRead the Press Release
Jackson, TN – A Madison County man has pled guilty to committing violent crimes in aid of racketeering, distribution of marijuana and firearms violations. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the guilty plea today.
On April 17, 2017, Dontoreus Douglas, aka "D.T." 32, was indicted in the Western District of Tennessee on four counts of violent crimes in aid of racketeering activity (VICAR). Each count is based upon the attempted murder of four different victims on June 12, 2012. Each of the VICAR counts has a corresponding count for using and carrying a firearm during and in relation to a crime of violence. There is also one count for being a felon in possession of a firearm.
According to the indictment, Douglas and other members and associates of the Gangster Disciples engaged in narcotics distribution, firearms trafficking, and acts of violence, involving murder, attempted murder and assault.
The Gangster Disciples enterprise has a highly organized structure with nationwide reach. As of the date of the indictment, the Gangster Disciples were active in 35 states. It is further alleged in the indictment that Douglas committed the attempted murders for the purpose of gaining entrance to or maintaining or increasing position within the Gangster Disciples.
U.S. Attorney D. Michael Dunavant said, "Dismantlement of criminal gangs is a top priority of the Department of Justice, and this case represents the collaborative efforts of federal, state, and local law enforcement to target and remove a significant violent participant in the Gangster Disciples organization. D.T. will now be removed from the streets, and will serve a significant sentence for his violent crimes. We are taking the fight to the gangs in West Tennessee, and we are relentless in our resolve."
For the four counts of violent crime in aid of racketeering activity, the maximum penalty is 10 years in prison and a $250,000 fine. Each of the using and carrying a firearm in relation of a crime of violence counts has a potential penalty of not less than 10 years, consecutive to the respective VICAR counts.
Douglas is presently in federal custody for charges that are pending from an indictment returned against him in June 2016. That indictment alleges charges of possession of marijuana with intent to distribute, felon in possession of a firearm, and possession of a firearm in furtherance of a drug trafficking crime.
Sentencing is scheduled for August 13, 2019 before U.S. Chief District Judge S. Thomas Anderson.
This case was investigated by the Alcohol, Tobacco, Explosives and Firearms (ATF); Federal Bureau of Investigation and the Jackson Police Department’s Gang Enforcement Unit.
Assistant U.S. Attorneys Beth Boswell and Hillary Parham are prosecuting this case on behalf of the government.
Goznym Cyber-Criminal Network Operating Out of Europe Targeting American Entities Dismantled in International OperationRead the Press Release
PITTSBURGH – A complex transnational organized cybercrime network that used GozNym malware in an attempt to steal an estimated $100 million from unsuspecting victims in the United States and around the world has been dismantled as part of an international law enforcement operation. GozNym infected tens of thousands of victim computers worldwide, primarily in the United States and Europe. The operation was highlighted by the unprecedented initiation of criminal prosecutions against members of the network in four different countries as a result of cooperation between the United States, Georgia, Ukraine, Moldova, Germany, Bulgaria, Europol and Eurojust.
United States Attorney Scott W. Brady of the Western District of Pennsylvania made the announcement at Europol, located in The Hague, Netherlands, along with his international partners.
The operation was conducted by the United States Attorney’s Office for the Western District of Pennsylvania and the FBI’s Pittsburgh Field Office, along with the Office of the Prosecutor General of Georgia, Prosecutor General’s Office of Ukraine, Office of the Prosecutor General of the Republic of Moldova, Public Prosecutor’s Office Verden (Germany), the Supreme Prosecutor’s Office of Cassation of the Republic of Bulgaria, Ministry of Internal Affairs of Georgia, National Police of Ukraine, General Police Inspectorate of the Republic of Moldova, the Luneburg Police of Germany and the Republic of Bulgaria’s General Directorate for Combatting Organized Crime with the significant assistance of Europol and Eurojust.
“International law enforcement has recognized that the only way to truly disrupt and defeat transnational, anonymized networks is to do so in partnership,” said U.S. Attorney Brady. “The collaborative and simultaneous prosecution of the members of the GozNym criminal conspiracy in four countries represents a paradigm shift in how we investigate and prosecute cybercrime. Cybercrime victimizes people all over the world. This prosecution represents an international cooperative effort to bring cybercriminals to justice.”
Earlier today, the U.S. Attorney’s Office for the Western District of Pennsylvania unsealed an Indictment returned by a federal grand jury in Pittsburgh charging 10 members of the GozNym criminal network with conspiracy to commit computer fraud, conspiracy to commit wire fraud and bank fraud, and conspiracy to commit money laundering. An eleventh member of the conspiracy was previously charged in a related Indictment. The victims of these crimes were primarily U.S. businesses and their financial institutions, including a number of victims located in the Western District of Pennsylvania.
"This takedown highlights the importance of collaborating with our international law enforcement partners against this evolution of organized cybercrime," said FBI Pittsburgh Special Agent in Charge Robert Jones. "Successful investigation and prosecution is only possible by sharing intelligence, credit and responsibility. Our adversaries know that we are weakest aloing the seams and this case is a fantastic example of what we can accomplish collectively."
According to the Indictment, the defendants conspired to:- infect victims’ computers with GozNym malware designed to capture victims’ online banking login credentials;
- use the captured login credentials to fraudulently gain unauthorized access to victims’ online bank accounts; and,
- steal money from victims’ bank accounts and launder those funds using U.S. and foreign beneficiary bank accounts controlled by the defendants.
The defendants reside in Russia, Georgia, Ukraine, Moldova and Bulgaria. The operation was an unprecedented international effort to share evidence and initiate criminal prosecutions against members of the same criminal network in multiple countries.
At the request of the United States, Krasimir Nikolov, aka “pablopicasso,” “salvadordali,” and “karlo,” of Varna, Bulgaria, was searched and arrested by Bulgarian authorities and extradited to the United States in December 2016 to face prosecution in the Western District of Pennsylvania. Nikolov’s primary role in the conspiracy was that of a “casher” or “account takeover specialist” who used victims’ stolen online banking credentials captured by GozNym malware to access victims’ online bank accounts and attempt to steal victims’ money through electronic funds transfers into bank accounts controlled by fellow conspirators. Nikolov is named as a GozNym conspirator in the newly unsealed indictment, although he is charged in a related Indictment filed in the Western District of Pennsylvania. Nikolov entered a guilty plea in federal court in Pittsburgh on charges relating to his participation in the GozNym conspiracy on April 10, 2019. He is scheduled to be sentenced on Aug. 30, 2019.
Five of the named defendants reside in Russia and remain fugitives from justice. However, to overcome the inability to extradite the remaining defendants to the United States for prosecution, an unprecedented effort was undertaken to share evidence and build prosecutions against defendants in the remaining countries where they reside, including Georgia, Ukraine and Moldova. The prosecutions are based on shared evidence acquired through coordinated searches for evidence in Georgia, Ukraine, Moldova and Bulgaria, as well as from evidence shared by the United States and Germany from their respective investigations.
The GozNym network exemplified the concept of “cybercrime as a service.” According to the Indictment, the defendants advertised their specialized technical skills and services on underground, Russian-language, online criminal forums. The GozNym network was formed when these individuals were recruited from the online forums and came together to use their specialized technical skills and services in furtherance of the conspiracy.
According to the Indictment, Alexander Konovolov, aka “NoNe,” and “none_1,” age 35, of Tbilisi, Georgia, was the primary organizer and leader of the GozNym network who controlled more than 41,000 victim computers infected with GozNym malware. Konovolov assembled the team of cybercriminals charged in the Indictment, in part by recruiting them through the underground online criminal forums. Marat Kazandjian, aka “phant0m,” age 31, of Kazakhstan and Tbilisi, Georgia, was allegedly Konovolov’s primary assistant and technical administrator. Konovolov and Kazandjian are being prosecuted in Georgia for their respective roles in the GozNym criminal network.
Gennady Kapkanov, aka “Hennadiy Kapkanov,” “flux,” “ffhost,” “firestarter,” and “User 41,” age 36, of Poltava, Ukraine, was an administrator of a bulletproof hosting service known by law enforcement and computer security researchers as the “Avalanche” network. This network provided services to more than 200 cybercriminals, including Konovolov and Kazandjian, and it hosted more than 20 different malware campaigns, including GozNym. Kapkanov’s apartment in Poltava, Ukraine was searched in November 2016 during a German-led operation to dismantle the network’s servers and other infrastructure. Kapkanov was arrested for shooting an assault rifle through the door of his apartment at Ukrainian law enforcement officers conducting the search. Through the coordinated efforts being announced today, Kapkanov is now facing prosecution in Ukraine for his role in providing bulletproof hosting services to the GozNym criminal network.
Alexander Van Hoof, aka “al666,” age 45, of Nikolaev, Ukraine, was a “cash-out” or “drop master” who provided fellow members of the conspiracy with access to bank accounts he controlled that were designated to receive stolen funds from GozNym victims’ online bank accounts.
Eduard Malanici, aka “JekaProf,” and “procryptgroup, age 32, of Balti, Moldova, provided crypting services to cybercriminals. Malanici crypted GozNym malware in furtherance of the conspiracy to enable the malware to avoid detection by anti-virus tools and protective software on victims’ computers. Malanici, along with two associates, is being prosecuted in Moldova.
Victims of the GozNym malware attacks include:
- An asphalt and paving business located in New Castle, Pennsylvania;
- A law firm located in Washington, DC;
- A church located in Southlake, Texas;
- An association dedicated to providing recreation programs and other services to persons with disabilities located in Downers Grove, Illinois;
- A distributor of neurosurgical and medical equipment headquartered in Freiburg, Germany, with a U.S. subsidiary in Cape Coral, Florida;
- A furniture business located in Chula Vista, California;
- A provider of electrical safety devices located in Cumberland, Rhode Island;
- A contracting business located in Warren, Michigan;
- A casino located in Gulfport, Mississippi;
- A stud farm located in Midway, Kentucky; and
- A law office located in Wellesley, Massachusetts;
Five Russian nationals charged in the Indictment who remain fugitives from justice include:
Vladimir Gorin, aka “Voland,” “mrv,” and “riddler,” of Orenburg, Russia. Gorin was a malware developer who oversaw the creation, development, management, and leasing of GozNym malware, including to Alexander Konovolov.
Konstantin Volchkov, aka “elvi,” age 28, of Moscow, Russia, provided spamming services to cybercriminals. Volchkov conducted spamming operations of GozNym malware on behalf of the conspiracy. The spamming operations involved the mass distribution of GozNym malware through “phishing” emails. The phishing emails were designed to appear legitimate to entice the victim recipients into opening the emails and clicking on a malicious link or attachment, which facilitated the downloading of GozNym onto the victims’ computers.
Ruslan Katirkin, aka “stratos,” and “xen,” age 31, of Kazan, Russia, resided in Khmelnytskyi, Ukraine, during the time frame of the charged conspiracy. Katirkin, like Krasimir Nikolov, was a “casher” or “account takeover specialist” who used victims’ stolen online banking credentials captured by GozNym malware to access victims’ online bank accounts and attempt to steal victims’ money through electronic funds transfers into bank accounts controlled by fellow conspirators.
Viktor Vladimirovich Eremenko, aka “nfcorpi,” age 30, of Stavropol, Russia, and Farkhad Rauf Ogly Manokhin, aka “frusa,” of Volgograd, Russia, were “cash-outs” or “drop masters” on behalf of the GozNym criminal network. Like Alexander Van Hoof, Eremenko and Manokhin provided fellow members of the conspiracy with access to bank accounts they controlled that were designated to receive stolen funds from GozNym victims’ online bank accounts. Manokhin was arrested at the request of the United States while visiting Sri Lanka in February 2017. Following his arrest, Manokhin was released on bail but was required to remain in Sri Lanka pending the outcome of his extradition proceedings to the United States. In December 2017, Manokhin unlawfully absconded from Sri Lanka and successfully fled back to Russia prior to the conclusion of the extradition proceedings.
Other agencies and organizations partnering in this effort include the United States Secret Service, the National Cyber-Forensics and Training Alliance (NCFTA) in Pittsburgh and the Shadowserver Foundation. The Justice Department’s Office of International Affairs provided significant assistance throughout the investigation and spearheaded the efforts to enable the United States to request searches, arrests, and extraditions in the foreign countries as well as the sharing of evidence with those countries through Mutual Legal Assistance Treaty requests.
The case is being prosecuted by Assistant U.S. Attorney Charles A. “Tod” Eberle, Chief of National Security and Cybercrime for the Western District of Pennsylvania.
Front Man Pleads Guilty to $550 Million Ponzi Scheme—One of the Largest Ever Charged in MarylandRead the Press Release
Baltimore, Maryland – Kevin B. Merrill, age 53, of Towson, Maryland, pleaded guilty today to conspiracy and wire fraud arising from a $550 million investment fraud scheme that operated from 2013 through September 2018. Co-defendant Cameron R. Jezierski, age 28, of Fort Worth, Texas, previously pleaded guilty to his role in the scheme. The U.S. Securities and Exchange Commission (SEC) has filed a parallel civil complaint in this matter.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Jennifer L. Moore of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Robert W. Manchak of the Federal Housing Finance Agency, Office of Inspector General.
“Federal prosecutors, FBI agents, and our SEC partners together interrupted an ongoing fraud scheme, with the potential to victimize even more people. Kevin Merrill lured investors through an elaborate web of lies, duping them into paying millions of dollars into this Ponzi scheme,” said U.S. Attorney Robert K. Hur. “The effects of this kind of fraud can be devastating. As a result of this scheme, a number of victims have lost their life savings.”
According to his plea agreement, beginning in January 2013, Merrill and his co-conspirators perpetrated a Ponzi scheme to defraud investors of more than $394 million. Specifically, Merrill and a co-conspirator invited investors to join them in purchasing consumer debt portfolios. “Consumer debt portfolios” are defaulted consumer debts to banks/credit card issuers, student loan lenders, and car/truck financers which are sold in batches called “portfolios” to third parties that attempt to collect on the debts. Merrill, using the names of collection businesses he owned, including Delmarva Capital and Global Credit Recovery, among others, falsely represented to investors that he would use the investors’ money to buy consumer debt portfolios and make money for them by (1) collecting the payments that people made on their debts or (2) selling the portfolios for a profit to other third-party debt buyers, in a practice called “flipping.” According to the related complaint in the civil action filed by the SEC, the victim investors included small business owners, restauranteurs, construction contractors, retirees, doctors, lawyers, accountants, bankers, talent agents, professional athletes, and financial advisors, located in Maryland, Washington, D.C., Northern Virginia, Denver, Texas, Chicago, New York, and elsewhere. As detailed in the plea agreement, Merrill admitted that the scheme caused financial hardship to at least five victims, and Merrill knew that at least one of those was a vulnerable victim.
At today’s hearing, Merrill admitted that to induce investors to participate, he and his co-conspirators falsely represented who they were buying the debt portfolios from and how much they were paying for the portfolios, whether they were investing their own funds, and their track record of success. According to the plea agreement, sometimes there was no underlying debt portfolio purchased with the investors’ money. To conceal the truth, Merrill, Jezierski, and others created imposter companies with names similar to actual consumer debt sellers or brokers and opened bank accounts in the names of those imposter companies. In addition, to lend credibility to the transactions, the defendants created false portfolio overviews, sales agreements which used the names and forged signatures of actual employees of the sellers, created false collections reports, and falsified bank statements and merchant account reports.
Further, Merrill admitted that he falsely represented that the monies the conspirators paid to investors were “proceeds” from collections and/or flipping debt portfolios, when in fact, the proceeds were paid from funds provided by other investors. Merrill provided monthly or quarterly reports to investors regarding the “purported progress of the portfolio and its recovery,” which he invented. Merrill used the proceeds of the scheme to purchase and/or renovate five high-end homes in Maryland and Florida, gamble at casinos, purchase luxury automobiles, jewelry, artwork, collectibles such as comic books and sports memorabilia, and a share in a jet plane, and support a lavish lifestyle.
Finally, Merrill admitted that while the scheme was ongoing, he met with the FBI, lied to the investigating agents, and provided false documents to the FBI. As detailed in his plea agreement, after his arrest, Merrill attempted to obstruct justice by causing his wife to remove assets from their Naples, Florida home on October 13, 2018, and by preparing a handwritten note instructing his wife to conceal assets from the court-appointed receiver, which he intended to hold up to the glass in the detention center on December 5, 2018, when his wife visited. These actions violated the restraining order with which Merrill was served in the criminal case, and the preliminary injunction ordered by the Court in the SEC’s civil action.
As part of his plea agreement, Merrill is required to pay restitution in the full amount of the victims’ losses and to forfeit property acquired with the proceeds of the offenses. The SEC has appointed a receiver to marshal the assets for the benefit of the victims.
Merrill faces a maximum of 40 years in prison for the wire fraud conspiracy and for wire fraud, as well as a possible fine of $500,000, or twice the gross gain. U.S. District Judge Richard D. Bennett has scheduled sentencing for Merrill on September 19, 2019, at 9:30 a.m., and for Jezierski on August 12, 2019 at 3:00 p.m. Co-defendant Jay B. Ledford, age 55, of Westlake, Texas and Las Vegas, Nevada, is scheduled for a rearraignment on June 6, 2019, at 10:00 a.m. Kevin Merrill’s wife, Amanda Merrill, age 30 of Towson, Maryland, is charged with conspiracy to obstruct justice. No court appearance is currently scheduled for Amanda Merrill. Kevin Merrill and Ledford have been detained since their arrest on September 18, 2018, and Amanda Merrill and Cameron Jezierski are released under the supervision of U.S. Pretrial Services.
United States Attorney Robert K. Hur commended the FBI in Baltimore, Dallas, Las Vegas and Tampa; the Federal Housing Finance Agency, Office of the Inspector General; and the SEC for their work in this investigation. Mr. Hur thanked Assistant U.S. Attorneys Joyce K. McDonald and Martin J. Clarke, who are prosecuting the criminal case.
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Fort Dodge Man to Federal Prison for Meth and Gun ConvictionsRead the Press Release
A man who conspired to distribute methamphetamine and illegally possessed firearms was sentenced May 15, 2019, to 15 years in federal prison.
Cody Groat, 25, from Fort Dodge, Iowa, received the prison term after a November 16, 2018, guilty plea to conspiracy to distribute methamphetamine; possession with intent to distribute methamphetamine; possession of a firearm in furtherance of a drug trafficking crime; and possession of firearms by a domestic abuser. Groat was previously convicted of domestic abuse assault in July of 2013.
At sentencing, the district court found that from about 2017 through July 2018, Groat and others conspired to distribute more than four pounds of methamphetamine in the Fort Dodge area. On December 27, 2017, law enforcement executed a search warrant of Groat’s residence. At that time officers seized about ¾ pound of methamphetamine, three handguns, a shotgun, and assorted 9mm ammunition. It was later determined that two of the 9mm handguns had been stolen from a large scale firearm (150+) burglary/arson case in Calhoun County, Iowa.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.
Groat was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Groat was sentenced to 180 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. Groat 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 investigated by the Fort Dodge Police Department, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Webster County, Iowa Sheriff’s Office, and Iowa Division of Criminal Investigations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-3023. Follow us on Twitter @USAO_NDIA.
Former St. Louis Podiatrist Convicted of Scheme to Defraud Medicare and Medicare FraudRead the Press Release
ST. LOUIS -- Following a four-day trial, Dr. Dawn Rhodes, 43, presently of Atlanta, Georgia, was convicted of eight counts of engaging in a scheme to defraud Medicare and submitting false claims to Medicare. The trial took place before U.S. District Court Judge Henry E. Autrey.
Rhodes, a podiatrist, falsely described and billed for purported care to residents in nursing homes and residential care facilities. More specifically and among other things, Rhodes falsely claimed that she provided routine nail care to patients when, in fact, those patients never received the care or never possessed a condition that would require the care identified by Rhodes for Medicare reimbursement.
Between 2013 and 2017, Rhodes submitted false claims to Medicare totaling $1,443,672.53.
Steve Hanson, Special Agent in Charge, U. S. Department of Health and Human Services, Kansas City Region, stated following the jury’s verdict, “Unscrupulous health care providers who improperly bill Medicare for non-covered services will continue to be vigorously pursued by our office in order to preserve the integrity of the program.”
U.S. Attorney Jeff Jensen applauded the work of the prosecution team and investigators, “Today’s conviction of Dr. Rhodes is the culmination of a five-plus-year investigation resulting in a total of nine federal convictions, sentences to prison, and judgement requiring restitution of almost $7 million. We appreciate the coordinated effort of our federal law enforcement partners and are pleased with the jury’s unanimous verdict on all counts charged.”
Rhodes’ sentencing has been set for August 13, 2019. Rhodes faces a maximum term of 10 years imprisonment on each scheme to defraud count. Rhodes faces a maximum term of 5 years imprisonment on each false claim count. Mandatory restitution will also be required. In determining actual sentences, a judge is required to consider the U.S. Sentencing Guidelines which provide recommended sentencing ranges.
This case was investigated by Health and Human Services and the St. Louis division of the FBI. The case was tried by Assistant United States Attorneys Dorothy McMurtry and Gwendolyn Carroll.
Former Manager of International Labor Union Pleads Guilty to Defrauding and Stealing from UnionRead the Press Release
A former facilities and real estate manager for a large, international labor union pleaded guilty today to defrauding and stealing from his employer, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia, Inspector General Scott S. Dahl of the U.S. Department of Labor and Director Arthur F. Rosenfeld of the U.S. Department of Labor’s Office of Labor-Management Standards.
Michael J. Carney, 63, of Ashburn, Virginia, pleaded guilty to one count of conspiracy to commit honest services wire fraud and theft and embezzlement of labor union funds before U.S. District Judge Liam O’Grady of the Eastern District of Virginia. Sentencing is scheduled for Oct. 18, 2019.
According to court documents, Carney is a former facilities and real estate manager for a large, international union located in Herndon, Virginia. Between in or about May 2012 and at least in or about mid-2015, Carney received tens of thousands of dollars in kickbacks from a heating, ventilation, and air conditioning (HVAC) company located in Maryland, in exchange for the awarding of the union’s HVAC service agreements and maintenance contracts. The benefits included high-end outdoor kitchen and free HVAC and plumbing services for Carney and a relative over a multi-year period. With Carney’s knowledge, the president and majority owner of the HVAC company, Howard W. Janoske, and his subordinates submitted inflated and fraudulent invoices to the union to recoup expenses for these personal benefits. Janoske pleaded guilty to a similar charge on March 1, 2019, and is awaiting sentencing.
The Department of Labor’s Office of Inspector General and the Office of Labor Management Standards investigated the case. Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section is prosecuting the case.
Former Lawyer Sentenced to Six Months for Criminal ContemptRead the Press Release
CONCORD - William Summers, 77, of Haines City, Florida, was sentenced on Wednesday to six months in federal prison for criminal contempt, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on March 22, 2012, Summers, who previously practiced law in the Cleveland area, was suspended from the practice of law in Ohio. Nevertheless, Summers continued to solicit clients while under suspension, including a defendant in a criminal prosecution being prosecuted in the District of New Hampshire. Summers was hired for the representation for a flat of $25,000, plus travel and local counsel expenses. Summers sold his services to the defendant as an expert litigator who could file an effective motion to suppress evidence in the case and take the case to trial if necessary. Summers did not disclose to the defendant that he was suspended from legal practice and could not appear in court.
Because Summers could not appear in court, he engaged another lawyer from Ohio who would appear in court for Summers until the suspension ended. Summers sent letters to the defendant stating falsely that he was "of-counsel" in the same law firm as the lawyer who was going to appear in court. Despite his promises, Summers never appeared in court and did not file a motion to suppress. Instead, once Summers collected his fees from the defendant and his family, Summers told the defendant that he should be plead guilty. Summers never appeared in the District of New Hampshire for the defendant.
At a later court hearing, Summers testified and intentionally sought to obstruct the administration of justice by providing misleading testimony. In particular, Summers provided misleading testimony in which he claimed to have explained to the defendant that he would not be able to appear in court for him during the case.
In addition to time in prison, Summers was ordered to pay $26,600 in restitution. Summers previously pleaded guilty on October 24, 2018.
“Attorneys are officers of the court and must adhere to the highest standards of integrity,” said U.S. Attorney Murray. “By misleading a defendant and attempting to mislead the court, Mr. Summers fell short of that mark and will serve a prison sentence as a result”.
This matter was investigated by the United States Postal Inspection Service. The case was prosecuted by Assistant U.S. Attorneys Seth Aframe and Charles Rombeau.
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Former Harrison Police Chief Sentenced to 18 Months in Prison for Tax EvasionRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that ANTHONY MARRACCINI, the former chief of the Harrison Police Department, was sentenced to 18 months in prison for tax evasion. MARRACCINI pled guilty in January 2019 before U.S. District Judge Kenneth M. Karas, who imposed today’s sentence.
U.S. Attorney Geoffrey S. Berman said: “When Anthony Marraccini became a police officer in the Town of Harrison, he swore to uphold the law. Instead, he violated the public’s trust when he evaded more than $902,000 in federal and state income taxes. Today’s sentence serves as a reminder that the laws of our land apply to all, regardless of position or power.”
According to the allegations contained in the Information:
During the relevant time period of 2011 to 2016, MARRACCINI was the Chief of Police for the Town of Harrison, New York. MARRACCINI also owned and operated Coastal Construction Associates LLC (“Coastal Construction”), a construction business, and was also employed as a salesperson for two title companies. In addition, MARRACCINI owned several residential rental properties. MARRACCINI reported some of Coastal Construction’s revenue and expenses, and the rental income from some of his rental properties, on his personal federal income tax return.
MARRACCINI failed to report all of Coastal Construction’s revenue on his income tax returns from 2011 through 2016. Instead, he deposited some checks Coastal Construction received for construction work into his personal bank accounts. He also cashed some checks Coastal Construction received at a check cashing service and kept the cash for his personal use. In some instances, MARRACCINI deposited checks Coastal Construction received into Coastal Construction’s bank accounts but took portions of the deposits as cash, thus reducing the amounts of the deposits on Coastal Construction’s bank account statements. MARRACCINI then falsely represented to his tax return preparers that Coastal Construction’s bank account statements showed the vast majority of the company’s revenue for each year.
MARRACCINI failed to report more than $2.3 million in revenue for Coastal Construction for the tax years 2011 through 2016.
MARRACCINI also failed to report a total of more than $199,800 in rents received from two rental homes he owned in Purchase, New York, from 2011 through 2015. In addition, MARRACCINI failed to report $24,500 in rents he received from a rental home he owned in Rye, New York, in 2013 and 2014.
In total, MARRACCINI failed to report more than $2.5 million in revenue from Coastal Construction and the rental properties, thereby evading more than $782,000 in federal income tax and more than $119,000 in state income tax, from 2011 through 2016.
* * *
In addition to the prison term, MARRACCINI, 54, of West Harrison, New York, was sentenced to one year of supervised release and ordered to pay a $25,000 fine.
Mr. Berman praised the outstanding investigative work of the IRS-CI and the Special Agents of the United States Attorney’s Office for the Southern District of New York.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorney James McMahon is in charge of the prosecution.
Former Harrisburg Businessman Pleads Guilty to Defrauding Pennsylvania College Faculty UnionRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that the former owner/operator of a Harrisburg based dental and vision claims processing business, Michael Timothy Buchanan, age 68, of Fishers, Indiana, pleaded guilty on May 14, 2019, before U.S. District Court Judge Sylvia H. Rambo, to one count of Health Care Fraud.
According to United States Attorney David J. Freed, Buchanan admitted to defrauding a trust fund established by the Association of Pennsylvania State College and University Faculties (APSCUF) out of $1,493,629. Buchanan executed a scheme to defraud the Pennsylvania Faculty Health and Welfare Fund (The Fund) between 2007 and 2017 by his submission of false, inflated invoices for the services his company, Actuaries, Consultants and Administrators, Inc. (ACA), provided The Fund in connection with the processing of dental and vision claims submitted by members of the APSCUF Union.
The Fund paid ACA $5.20 for each vision claim it processed and $8.10 for each dental claim it processed. Buchanan routinely and artificially inflated the number of claims it allegedly processed for The Fund between 2007 and 2017 that resulted in a $1,493,629 overpayment to ACA.
Upon the conclusion of the guilty plea proceeding, Judge Rambo released Buchanan on his own recognizance pending preparation of a presentence report. No date has yet been scheduled for sentencing.
The case was investigated by the Harrisburg Office of the FBI and the U.S. Department of Labor, Office of Inspector General. Assistant United States Attorney Kim Douglas Daniel is prosecuting the case.
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 this offense is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. 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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Former GE Engineer Pleads Guilty to Conspiring to Steal Trade SecretsRead the Press Release
SYRACUSE, NEW YORK – Miguel Sernas, age 40, of Mexico City, Mexico, pled guilty yesterday to conspiring to steal trade secrets from the General Electric Company (GE).
The announcement was made by United States Attorney Grant C. Jaquith and James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his plea, Sernas, a former engineer with GE, admitted that he conspired with his business partner and co-defendant, Jean Patrice Delia, to compete against GE using trade secrets Delia stole from GE while employed by GE in Schenectady, New York. Sernas admitted that he and Delia, operating as ThermoGen Power Services, used the stolen trade secrets, as well as stolen marketing data, pricing information, and other confidential GE documents, to compete against GE around the world.
Sernas, who is in custody, faces up to 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years when he is sentenced on September 16, 2019 by Senior United States District Judge Norman A. Mordue. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The charges in the indictment against Delia are merely accusations. Delia is presumed innocent unless and until proven guilty
This case is being investigated by the FBI, and is being prosecuted by Assistant U.S. Attorney Wayne A. Myers.
Former Controller Pleads Guilty to Stealing over $750,000Read the Press Release
Orlando, Florida – Jeffrey McKinney (61, Minneola) has pleaded guilty to wire fraud for his scheme to steal over $750,000 from his employer and one of its executives. McKinney is facing up to 20 years in federal prison, three years of supervised release, and will be ordered to pay restitution. Sentencing has not yet been set.
According to court documents, McKinney is a Certified Public Accountant and was the Controller of a local business. In addition to serving as the Controller, McKinney was responsible for moving funds between various accounts held by the business and one of its executives. For a period of over a year and a half, McKinney used his position to embezzle over $750,000 from those accounts. To cover up his thefts, McKinney falsified check stubs, moved money between accounts to hide what he had stolen, and provided the executive with reports that inflated the amount of money that remained in the executive’s accounts.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Roger B. Handberg.
Five Men and One Woman Charged with Drug and Gun OffensesRead the Press Release
BOSTON – Five men and one woman have been charged in three indictments with drug and firearm offenses following an investigation of a drug ring operating in and around Wareham and New Bedford.
Steven Miranda, 52, of Wareham; Manuel Pina-Agee, 32; Clifford Gomes, 53; and Casey Andrade, 37, all of New Bedford, were each charged with conspiring to distribute fentanyl, heroin, cocaine, and marijuana. The indictment alleges the conspiracy involved more than 40 grams of fentanyl and more than 10 grams of furanyl fentanyl, a fentanyl analogue. All four men are also charged with possessing fentanyl with the intent to distribute it in April of 2019. In addition, Pina-Agee and Gomes are charged with possessing a firearm after having been convicted of a crime punishable by more than one year in prison.
Jarrett Galloway, 28, of New Bedford, was charged in a separate indictment with distributing and possessing with intent to distribute fentanyl on Jan. 29, 2019, and possessing cocaine with intent to distribute it on April 25, 2019.
Jodi Smith, 33, formerly of Wareham, was charged in a third indictment with three counts of distributing fentanyl in January and February 2019.
Pina-Agee, Andrade, and Smith were arrested on April 25, 2019, and charged by criminal complaint. Pina-Agee is detained and Andrade and Smith were released on conditions. Gomes, Miranda, and Galloway were arrested on state charges on April 25, 2019. The state charges are expected to be dismissed in lieu of federal prosecution.
For Pina-Agee, Gomes, Miranda, and Andrade, the conspiracy charge carries a mandatory minimum sentence of five years and up to 40 years in prison, a minimum of four and up to a lifetime of supervised release, and a fine of $5 million. For Pina-Agee, the charge of possession with intent to distribute carries 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 up to $5 million. The other drug charges each carry 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 $1 million. The firearm charges carry a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Agency, New England Field Division; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Division; and Acting Wareham Police Chief John Walcek made the announcement. The Sandwich, Carver, Middleboro, and New Bedford Police Departments also participated in the investigation, as did the Internal Revenue Service and Homeland Security Investigations. Assistant U.S. Attorney Ted Heinrich of Lelling’s Criminal Division is prosecuting the case.
The details contained in the charging documents are allegations. The defendants remain innocent until proven guilty beyond a reasonable doubt.
Five Individuals Involved in Marriage Fraud Scheme Plead GuiltyRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that five individuals have pleaded guilty in Hartford federal court to charges related to their participation in fraudulent marriages so that non-U.S. citizens would receive U.S. immigration benefits. The fifth defendant pleaded guilty this afternoon.
According to court documents and statements made in court, four of the defendants are U.S. citizens who entered into one or more fraudulent marriages with non-citizens, and sponsored each non-citizen’s fraudulent application for lawful permanent resident (“LPR”) status, also known as a “green card.” A fifth defendant is a non-citizen who entered into a fraudulent marriage with a U.S. citizen to obtain green card status.
On February 4, 2019, MARVIN WILLIAMS, 60, of New York, New York, pleaded guilty and admitted that he entered into four fraudulent marriages with non-citizens, and sponsored all four of their fraudulent LPR/green card applications.
On March 6, 2019, RICKY OWEN, 39, of Bridgeport, pleaded guilty and admitted that he entered into two fraudulent marriages with non-citizens, and sponsored both of their fraudulent LPR/green card applications.
On April 1, 2019, KENOL NOEL, 35, of Bridgeport, pleaded guilty and admitted that he entered into two fraudulent marriages with non-citizens, and sponsored both of their fraudulent LPR/green card applications.
On April 24, 2019, DWIGHT HENRY, 44, a citizen of Jamaica residing in Queens, New York, pleaded guilty and admitted that he entered into a fraudulent marriage with a U.S. citizen, and submitted a fraudulent application for LPR/green card status.
Today, CARL JARRETT, 36, of Bridgeport, pleaded guilty and admitted that he entered into a fraudulent marriage with a non-citizen, and sponsored her fraudulent LPR/green card application.
Each of the five defendants, who were arrested in November 2018 after they were charged by indictment, pleaded guilty to one count of conspiracy to commit marriage/immigration fraud. At sentencing, each faces a maximum term of imprisonment of five years.
This investigation is being conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), and U.S. Citizenship and Immigration Service’s Office of Fraud Detection and National Security. The cases are being prosecuted by Assistant U.S. Attorney Henry K. Kopel.
Firearms Trafficker Pleads Guilty to False StatementsRead the Press Release
ALEXANDRIA, Va. – A Maryland man pleaded guilty today to making false statements to acquire firearms.
“The trafficking of illegally obtained firearms creates tremendous risk for violence and presents a serious danger to our communities and the law enforcement officers who keep us safe,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “We will continue our constantly expanding partnership with the ATF to use federal firearms laws to hold individuals accountable for their role in trafficking illegally purchased firearms. The ATF in the Eastern District of Virginia is living up to its self-imposed motto of being no better partner.”
According to court documents, between September 2017 and March 2019, Christian Malik White, 22, purchased 40 firearms from federal firearms licensees in the Eastern District of Virginia using a false address in Gainesville. After purchasing the firearms, White trafficked the firearms across state lines to Maryland and Washington, D.C., where he re-sold the firearms to other individuals. One of these individuals was a convicted felon, who possessed the firearm in Washington, D.C. with an obliterated serial number. White instructed his customers to obliterate the serial numbers on the firearms he sold to them.
“Gun traffickers commit a worse crime than the illegal purchase, sale and transportation of firearms,” said Special Agent in Charge Ashan M. Benedict, ATF Washington Field Division. “As demonstrated by this case, these criminals provide a pathway for prohibited persons to obtain potentially deadly weapons for their own selfish profit and thereby put at risk the safety of all law abiding citizens and their families.”
White pleaded guilty to making false statements to acquire firearms and faces a maximum penalty of five years in prison when sentenced on August 2. 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.
This 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after U.S. District Judge Anthony J. Trenga accepted the plea. Assistant U.S. Attorney Nicholas U. Murphy II and Special Assistant U.S. Attorney Daniel J. Olinghouse 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-157.
Felon in Possession of a Firearm Sentenced to Federal PrisonRead the Press Release
United States Attorney Brandon J. Fremin announced today that U.S. Chief Judge Shelley D. Dick sentenced LESTER DESMOULIN, a 32-year-old resident of Baton Rouge, to 96 months in federal prison following his conviction for possessing a firearm by a convicted felon. The Court further sentenced DESMOULIN to 3 years of supervised release following his term of imprisonment, and ordered that the firearm possessed by DESMOULIN be forfeited.
On July 31, 2017, DESMOULIN, who was previously convicted of a felony, took a phone call from his friend, Terrance Thornton, after Thornton had been arrested on several fugitive warrants. During the call, Thornton advised DESMOULIN that during an earlier chase by police, he had successfully hidden his Glock pistol in the backyard of a residence in Baton Rouge, Louisiana, before his arrest. At Thornton’s request, DESMOULIN went to the residence and took possession of the firearm. On August 1, 2017, law enforcement officers executed a search warrant at an apartment that DESMOULIN shared with Thornton in Baton Rouge, Louisiana, and, among other things, the Glock pistol was recovered. In October 2018, Thornton was sentenced to a term of 120 months in federal prison for being a convicted felon in possession of the Glock and a 7.62mm semi-automatic rifle.
U.S. Attorney Fremin stated, “DESMOULIN’s sentence to 8 years in prison is another stern sentence imposed in our efforts to combat violent crime. It highlights the continuing success of our joint Federal, State, and local law enforcement effort to ensure the safety of our community. It also highlights our effort to convince repeat offenders, such as DESMOULIN, to return to life as a contributing member of society or face the consequence of a significant term of imprisonment.”
“ATF, along with our federal, state, and local law enforcement partners will continue to focus our efforts on removing armed violent criminals from our streets,” said ATF New Orleans Field Division Acting Special Agent in Charge Kristen deTineo." ATF and our partners remain committed to pursuing and bringing to justice those who seek to disrupt communities and harm law abiding citizens.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Baton Rouge Police Department, with substantial assistance from the Louisiana State Police Crime Laboratory and Fugitive Task Force. The case was prosecuted by Assistant United States Attorney Paul L. Pugliese.
Felon Who Sold Firearm Sentenced to over a Year in PrisonRead the Press Release
A convicted felon who possessed and sold a firearm was sentenced on May 16, 2019, to more than one year in federal prison.
James Leroy Walter Kottman, age 42, from Luana, Iowa, received the prison term after a December 28, 2018, guilty plea possessing a firearm as a felon.
At the guilty plea, Kottman admitted that in November 2017 he sold a gun to his brother-in-law. The buyer later became concerned that the gun had been stolen and turned it into police. Kottman was a felon at the time of the sale, having previously been convicted of possession of heroin with intent to deliver. While state court charges were pending, Kottman obstructed justice by attempting to have the purchaser tell police that he obtained the gun from someone else.
Kottman was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Kottman was sentenced to 18 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.
Kottman is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Lisa C. Williams and investigated by the Clayton County Sheriff’s Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-1046.
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Federal Grand Jury Indicts 4 Teenagers in Connection with Violent Carjacking in ChicagoRead the Press Release
CHICAGO — A federal grand jury has indicted four teenagers on carjacking or weapons offenses in connection with the theft of a vehicle at gunpoint in Chicago’s Edgewater neighborhood.
JAMAR JARVIS, 18, RAYNELL LANFORD, 19, and JAMAAL ASHSAHEED, 19, all of Chicago, forcibly took a Lexus sport-utility vehicle from a victim early in the morning of Oct. 18, 2018, according to an indictment returned Tuesday in U.S. District Court in Chicago. The fourth defendant, JAVION BUSH, 19, of Chicago, provided assistance to the others after the carjacking, the indictment states.
All four defendants are currently in law enforcement custody. Arraignments in federal court in Chicago have not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Eddie Johnson, Superintendent of the Chicago Police Department. The Cook County State’s Attorney’s Office provided valuable assistance. The government is represented by Assistant U.S. Attorneys Albert Berry III and Shy Jackson, and Special Assistant U.S. Attorneys Yvette Loizon and Maureen McCurry.
After taking the Lexus, Jarvis, Lanford and Ashsaheed drove it to a gas station in the South Loop neighborhood of Chicago, where they purchased gas and a gas can, the indictment states. CPD officers later arrested the trio, as well as Bush.
The indictment charges Jarvis, Lanford and Ashsaheed with conspiring to commit carjacking. The three are also charged with using, carrying and brandishing a firearm during a crime of violence. Bush is charged with being an accessory after-the-fact to the carjacking.
In addition to the Oct. 18, 2018, carjacking, the indictment charges Jarvis, Lanford and Ashsaheed with conspiring to commit an attempted carjacking late the prior evening. In the attempted carjacking, Lanford allegedly displayed a firearm while unsuccessfully attempting to take an Acura sedan in Chicago’s Uptown neighborhood.
Using, carrying and brandishing a firearm in connection with a carjacking carries a maximum sentence of life in prison, while carjacking and attempted carjacking are each punishable by up to 15 years, and the conspiracy charge is punishable by up to five years. The accessory after-the-fact charge is punishable by up to seven and a half years.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
Evansdale Man Charged with Receipt and Possession of Child PornographyRead the Press Release
Derek Clemens, age 31, of Evansdale, Iowa, has been charged with receipt and possession of child pornography. The charges are contained in an Indictment unsealed on May 8, 2019, in United States District Court in Cedar Rapids.
The Indictment alleges that, in 2018, Clemens knowingly received child pornography and possessed child pornography on a cell phone.
If convicted, Clemens faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of 40 years’ imprisonment, a $500,000 fine, and at least five years and up to life on supervised release following any imprisonment.
Clemens appeared on May 10, 2019, in federal court in Cedar Rapids for a detention hearing and was held without bond. Clemens’ 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 Evansdale 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 19-2030.
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Eight Charged in Connection with North Philadelphia Business Owner Murder-KidnappingRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that eight individuals were charged in an indictment unsealed today with one count each of conspiracy to commit kidnapping. Seven of those individuals were also charged with the actual kidnapping, and five of the individuals were charged with firearms offenses. The charges stem from an investigation into the kidnapping and murder of a business owner from North Philadelphia in June 2018, whose body was later found in Cecil County, Maryland.
The indictment alleges that on June 19, 2018, the victim was kidnapped in a home in Philadelphia by seven of the defendants. During the kidnapping, the victim was restrained through the use of duct tape, hand cuffs, and zip ties. He was transported to Chester County, Pennsylvania in the course of the kidnapping, and ransom calls demanding hundreds of thousands of dollars were made to the victim’s wife, and to an associate of the victim. During the kidnapping, the victim was shot and killed, and his body was dumped in Maryland.
“As alleged in the indictment, these ruthless individuals are a serious threat to the safety of our neighborhoods – not just in Philadelphia, but the entire mid-Atlantic region and beyond,” said U.S. Attorney William McSwain. “This indictment reflects our Office’s steadfast commitment to rid the streets of people who resort to intimidation and extreme violence to try to get what they want. This case is also an excellent example of why prosecuting violent crime is a priority for the Eastern District of Pennsylvania and the entire Department of Justice. I want to thank our law enforcement partners in Pennsylvania and Maryland for their hard work investigating this heinous crime.”
“Anyone willing to abduct another human being and try to trade their life for money is a danger to society,” said Michael T. Harpster, Special Agent in Charge of the FBI's Philadelphia Division. “Just imagine the terror of being kidnapped, restrained, and at the total mercy of armed criminals. The FBI will never stop working to make our communities safer from violent thugs who care nothing for the lives of others.”
Those charged with conspiracy to commit kidnapping are: Ivan Rangel Prieto, 34, of Asheboro, North Carolina; Jose Castillo, 44, of Albuquerque, New Mexico; Jose Bernal, 30, of Newark, Delaware; Jose Delgado, 40, of Warminster, Pennsylvania; Salvador Sanchez Guerrero, 47, of Philadelphia, Pennsylvania; Robert Favors, 39, of Philadelphia, Pennsylvania; John Perkins, 31, of Philadelphia, Pennsylvania; and Fermín Perez Mejia, 35, of Norristown, Pennsylvania.
Those charged with kidnapping are: Rangel Prieto, Castillo, Bernal, Delgado, Sanchez Guerrero, Favors, and Perkins. Those charged with using a firearm in connection with a crime of violence are: Rangel Prieto, Castillo, Bernal, Delgado, and Sanchez Guerrero.
If convicted, Rangel Prieto, Castillo, Bernal, Delgado, Sanchez Guerrero, Favors, and Perkins face a mandatory sentence of life imprisonment. The statute also provides for the possibility of the death penalty. If convicted, Perez Mejia faces a maximum possible sentence of life imprisonment.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department, with assistance from the Cecil County, Maryland Sherriff’s Office, the Southern Chester County Regional Police Department, and the Plymouth Township Police Department, and is being prosecuted by Assistant United States Attorneys Amanda R. Reinitz and Everett Witherell. U.S. Attorney McSwain and SAC Harpster would like to thank FBI Albuquerque, the New Mexico State Police, the Farmington (NM) Police Department, and FBI Charlotte - Greensboro Resident Agency, for their assistance with this matter.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Eastern Panhandle man sentenced for firearms chargeRead the Press Release
WHEELING, WEST VIRGINIA – Raymond Hoak, of Kearnysville, West Virginia, was sentenced today to 41 months incarceration for a firearms charge, United States Attorney Bill Powell announced.
Hoak, age 42, pled guilty to one count of “Unlawful Possession of a Firearm” in November 2018. Hoak, having previously been convicted of a felony, admitted to having five .22-caliber rifles, a .22-250 rifle, a .300-caliber rifle, a .380-caliber pistol, and another rifle in June 2018 in Jefferson County.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Lara K. Omps-Botteicher prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. District Judge John Preston Bailey presided.
Eagle Butte Woman Sentenced for Theft from an Indian Tribal OrganizationRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, woman convicted of Theft from an Indian Tribal Organization was sentenced on May 13, 2019, by U.S. District Judge Roberto A. Lange.
Memoree Ducheneaux, age 28, was sentenced to 1 year of probation, restitution in the amount of $1,461.93, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Ducheneaux was indicted by a federal grand jury on August 14, 2018. She pled guilty on February 20, 2019.
Between November 25, 2016, and August 13, 2017, Ducheneaux was employed at the Lakota Thrifty Mart in Eagle Butte. During the course of her employment, Ducheneaux knowingly stole, embezzled, and converted to her own use, funds totaling an amount of $1,461.93 belonging to the Lakota Thrifty Mart, an Indian tribal organization.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
The case was brought as part of The Guardians Project, a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities. The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities. Led by the United States Attorney’s Office, the participating agencies include: Federal Bureau of Investigation; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; Internal Revenue Service, Criminal Investigation Division; U.S. Postal Inspector Service; U.S. Postal Service, Office of Inspector General.
For additional information about The Guardians Project, please contact the United States Attorney’s Office at (605) 330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.
Chicago Man Indicted on Federal Racketeering Charges for Allegedly Committing Murder to Increase Position in Violent Street GangRead the Press Release
CHICAGO — A grand jury has indicted a Chicago man on federal racketeering charges for allegedly committing murder to maintain and increase his position in a violent street gang.
LUIS CONTRERAS, 39, is charged with one count of murder in aid of racketeering, one count of attempted murder in aid of racketeering, and two counts of illegally possessing multiple firearms and ammunition. The indictment accuses Contreras of murdering Andre Franzell on Feb. 18, 2018, for the purpose of maintaining and increasing Contreras’s position in the Latin Saints street gang. Franzell, 23, was fatally shot in the 7700 block of South Kilbourn Avenue in Chicago’s Scottsdale neighborhood.
The indictment was returned Wednesday in federal court in Chicago. Arraignment has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Timothy Jones, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; James M. Gibbons, Special Agent-in-Charge of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Chicago; and Eddie Johnson, Superintendent of the Chicago Police Department. The government is represented by Assistant U.S. Attorneys Kavitha Babu and Nicholas J. Eichenseer.
The indictment alleges that the Latin Saints is a criminal organization whose members and associates engaged in narcotics trafficking and committed acts of violence, including murder and assault, to acquire and preserve the gang’s territory on the South Side of Chicago. Members of the Latin Saints publicly claimed responsibility for their activities, boasted about the gang on social media, and intimidated rival gang members through acts and threats of violence, according to the indictment.
The attempted murder count accuses Contreras of trying to kill a man on the same day as the Franzell murder. The illegal firearm possession counts allege that Contreras is a convicted felon who was not lawfully allowed to possess a firearm or ammunition.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Murder in aid of racketeering is punishable by a mandatory sentence of life in prison, and the death penalty is also possible. The attempted murder count and the illegal gun possession counts are each punishable by up to ten years in prison. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
Chicago Based “Prince” of Mafia Insane Vice Lords Sentenced for Distributing HeroinRead the Press Release
CHATTANOOGA, Tenn. – On May 15, 2019, the Honorable Curtis L. Collier, Senior United States District Judge, sentenced James Silas to 30 years followed by 5 years of supervised release for conspiring to distribute heroin.
Beginning in 2016, the Drug Enforcement Administration (DEA) conducted a series of court-authorized wiretaps on a number of telephones belonging to gang members as a component of an investigation into heroin distribution in and around Chattanooga. Through these wiretaps, they discovered the involvement of Silas in this interstate conspiracy. Silas was arrested in Illinois and brought to the Eastern District of Tennessee for trial. On November 13, 2018, after a five-day jury trial, Silas, 51, of the Chicago suburb of Dolton, Illinois, was convicted as charged of conspiring to distribute one kilogram or more of heroin.
At the sentencing hearing, witnesses testified that Silas was the leader of the Mafia Insane Vice Lords, a nationwide violent street gang. As the “Prince” of the Mafia Insane Vice Lords, Silas used the gang to develop a network of heroin distributors in various cities, including Chattanooga, Knoxville, Memphis, Atlanta and elsewhere. Silas provided his subordinate gang members with what came to be known as “Chicago Gray,” a form of heroin that rapidly became highly desired among users. These subordinates sold the heroin to other drug dealers as well as to addicts. Witnesses testified that tens of thousands of dollars at a time were transported from Tennessee to Silas’ Illinois residence in payment for heroin. Judge Collier ordered the defendant to forfeit $600,000, representing proceeds of Silas’ illegal drug trafficking.
“The Eastern District of Tennessee is experiencing a surge in drug abuse and overdose related deaths,” said U.S. Attorney J. Douglas Overbey. “Today’s sentencing is an example of how our office is working with our law enforcement partners to prosecute those who are trafficking in and distributing these illegal drugs into our region, putting the citizens of East Tennessee in danger.”
“The Drug Enforcement Administration and our law enforcement partners remain committed to targeting interstate heroin traffickers and gang members that are contributing to the nation’s opioid epidemic,” said Brett R. Pritts, Assistant Special Agent in Charge of DEA’s Nashville District Office. “I commend our law enforcement partners and the prosecutors for their extraordinary efforts in this case.”
This investigation was conducted by the DEA, in conjunction with the Hamilton County Sheriff’s Office, and with the assistance of local and federal law enforcement agencies in the Chicago area. Assistant U.S. Attorney Kyle Wilson represented the United States at sentencing.
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Charter Oak Man to Federal Prison for Meth ConvictionsRead the Press Release
A man who conspired to distribute methamphetamine was sentenced May 16, 2019, to 12 years in federal prison.
John Edward Willroth, 54, from Charter Oak, Iowa, was convicted of one count of conspiring to distribute methamphetamine and one count of distributing methamphetamine on November 16, 2018. Willroth was previously convicted of five felony drug offenses in Iowa.
At the guilty plea, Willroth admitted that from about 2016 through March 2018 he was involved in a conspiracy that distributed at least 1.5 kilograms of methamphetamine. Evidence at the hearing also showed that on three occasions, in 2016 and 2017, Willroth distributed and possessed with the intent to distribute about 30 grams of actual (pure) methamphetamine to other persons.
Willroth was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Willroth was sentenced to 144 months’ imprisonment. He must also serve an eight-year term of supervised release after the prison term. There is no parole in the federal system. Willroth 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 investigated by the 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 18-4046. Follow us on Twitter @USAO_NDIA.
Celebrity Business Manager Sentenced to 89 Months in Prison for Defrauding Clients, Bankruptcy and Tax ChargesRead the Press Release
COLUMBUS, Ohio – A business manager was sentenced in U.S. District Court here today for crimes related to a $7.9 million scheme to defraud his celebrity clients.
Kevin R. Foster, 43, of Montclair, N.J., was sentenced to 89 months in prison and ordered to pay more than $7.9 million in restitution.
In August 2018, a jury convicted Foster of 16 charges, including wire fraud, money laundering, bankruptcy fraud, tax evasion and filing false tax returns.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, William Cheung, Acting Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, and Todd A. Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the sentence imposed today by Chief U.S. District Judge Edmund A. Sargus, Jr.
This case stems from the prior prosecution of Thomas E. Jackson and Preston J. Harrison, who collected approximately $9 million from investors under false pretenses to start and market the sports beverage “OXYwater” through their company, Imperial Integrative Health Research and Development (“Imperial”). The two were convicted by a federal jury in March 2015 of multiple wire fraud, money laundering and tax fraud charges.
Foster, as the principal of his management/accounting firm, Foster & Firm, Inc., and as business manager for Shaffer Smith (“Ne-Yo”), induced Smith to invest $2 million into OXYwater under false representations. Unbeknownst to Smith, Foster invested an additional $1.5 million of Smith’s money into the product without his consent and fraudulently took out $1.4 million in lines of credit under Smith’s name by forging his signature.
Foster also defrauded a second celebrity client, Brian McKnight, as a way to secure money to help keep Imperial solvent.
Ne-Yo and McKnight agreed to invest in the company, not knowing that Foster served as an officer/controller of Imperial. Foster withdrew more money from his victims’ accounts than they had authorized, and transferred some of it to one of Imperial’s business associates in order to help keep Imperial afloat. Foster also used the stolen funds to enjoy a lavish lifestyle, with luxury cars – including a Rolls-Royce, Bentley, Jaguar, and Mercedes – a personal driver, extravagant suits and jewelry, season tickets to the New York Giants, courtside season tickets to the New York Knicks, and Super Bowl tickets.
Foster continued to divert funds from Ne-Yo and McKnight, unbeknownst to them, until Imperial went into receivership. Foster then filed for bankruptcy relief on behalf of Imperial in order to claim himself as the majority owner, and made multiple false and misleading statements under oath during his bankruptcy deposition.
In addition, Foster failed to report on his 2012 and 2013 tax returns the millions of dollars that he stole from Ne-Yo and McKnight. He also claimed millions of dollars in bogus deductions in order to further reduce his tax liability.
“Foster deceived his victims into believing they were investing in a profitable sports beverage company when, in reality, he was using their money as a personal slush fund for his lavish lifestyle,” U.S. Attorney Glassman said. “His ongoing and systematic deception also included stealing millions of dollars of additional funds. Not only did Foster betray the trust of his clients who believed he would act in their best interest, but he also used his accounting expertise to fraudulently report his income and live a virtually tax-free life.”
“Today’s sentencing marks the successful end of an investigation that uncovered an investment fraud scheme laced with a web of financial lies that generated millions of dollars through false promises and deceit,” said Acting Special Agent in Charge William Cheung of the IRS-Criminal Investigation (CI) Cincinnati Field Office. “When you knowingly mix deceit and trickery into the financial well-being of individuals, you create a recipe for devastation that could last a lifetime.”
Foster was charged in an original, seven-count indictment in July 2016. A superseding indictment containing 10 counts was returned in November 2017. The final, second superseding indictment added six more charges in May 2018.
Foster’s restitution includes more than $1.4 million to the IRS.
U.S. Attorney Glassman commended the investigation of this case by the IRS Criminal Investigation and FBI, and Assistant United States Attorney Jessica H. Kim who is prosecuting the case.
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Cedar Rapids Felon Who Tried to Rob Group at Gunpoint Found Guilty after Bench TrialRead the Press Release
A federal judge found a convicted felon who tried to rob a group of people at gunpoint guilty on May 16, 2019, after a bench trial.
Carl Anthony McArthur, age 40, from Cedar Rapids, Iowa, was found guilty after a May 14, 2019 bench trial. The judge found McArthur guilty of possessing a firearm as a felon and person convicted of a crime of domestic violence.
Evidence at trial showed that on March 17, 2018, McArthur and another individual went into a home on 20th Avenue in Cedar Rapids. In the home, they held at least four people at gunpoint while demanding money. Someone in the group called 9-1-1 and police responded a short time later. McArthur and the other individual hid the guns as officers came into the home. The other individual was able to get away from police and run. Officers found the two loaded guns underneath clothes and a blanket. Officers also found two baggies of methamphetamine in McArthur’s pockets. McArthur admitted he had been at the house earlier in the day to get methamphetamine. McArthur was prohibited from possessing firearms based on a 2003 domestic violence conviction and a 2009 conviction for unlawfully possessing a gun.
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.
McArthur is being held in the United States Marshal’s custody until he can be sentenced. A sentencing date has not yet been set.
The case was prosecuted by Assistant United States Attorneys Ashley Corkery and Pat Reinert and investigated by the Cedar Rapids Safe Streets Task Force. The task force is composed of representatives from the Federal Bureau of Investigation and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-0102.
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Cedar Rapids Drug User Sentenced to Nearly Five Years for Possessing a Stolen GunRead the Press Release
A Cedar Rapids drug user who possessed a stolen gun was sentenced May 14, 2019, to nearly five years in federal prison.
Riley Neff-Gonzales, age 20, from Cedar Rapids, Iowa, received the prison term after a November 2, 2018 guilty plea to one count of possession of a firearm by a drug user.
Evidence at the sentencing and plea hearings showed that Neff-Gonzales unlawfully possessed a stolen gun, a .22 caliber revolver, on April 6, 2018, nearly two years after the gun had been reported stolen. Neff-Gonzales also admitted to knowing the gun had been stolen. At the time authorities found Neff-Gonzales with the gun, he tested positive for several drugs, including benzodiazepines, opiates, cocaine metabolites, and marijuana. Neff-Gonzales also has a prior conviction for assault while displaying a dangerous weapon.
Neff-Gonzales was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Neff-Gonzales was sentenced to 57 months’ imprisonment. He must also serve a 3-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.
The case was prosecuted by Assistant United States Attorney Jake Schunk and investigated by the Cedar Rapids Safe Streets Task Force. The task force is composed of representatives from the Federal Bureau of Investigation and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-cr-00074-CJW.
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Cartel transportation head sentenced to federal prison for drug trafficking and money launderingRead the Press Release
ATLANTA - Carlos Montemayor, the head of the U.S. arm of the cocaine transportation and distribution network of Edgar Valdez-Villareal, a/k/a La Barbie, has been sentenced to federal prison on charges of cocaine trafficking and money laundering.
“Montemayor came to the United States from Mexico and used his skills, hard work, and the opportunities afforded in this country to build a successful trucking company from the ground up,” said U.S. Attorney Byung J. “BJay” Pak. “However, he was ultimately driven by greed and partnered with Edgar Valdez-Villareal to convert his trucking company into a transportation arm for the Sinaloa and Beltran-Leyva cartels, shipping tons of cocaine and drug money across the United States.”
Robert J. Murphy, the Special Agent in Charge of the Drug Enforcement Administration in Atlanta commented, “Today’s sentencing of Carlos Montemayor is a victory for the citizens of this country. This defendant’s decision to hide behind the veil of his once legitimate trucking company led to a twist of fate driven by greed. Because of the united front between DEA, the United States Attorney’s Office, its federal, state, local, and foreign partners, the citizens of this country can feel safer.”
According to U.S. Attorney Pak, the charges and other information presented in court: Beginning in 1992, Montemayor established and built a successful trucking and logistics company in Laredo, Texas, that specialized in moving goods across the border from Nuevo Laredo, Mexico, and then into and across the United States.
In 2002, however, he partnered with Edgar Valdez-Villareal, the infamous and ruthless enforcer for the Sinaloa and Beltran-Leyva cartels. Valdez, who would ultimately become the highest ranking American-born member of a Mexican drug cartel, needed help moving his cocaine from Mexico to customers in the United States. Montemayor’s transportation network fit the need exactly.
Using his logistics skills, trucks, and distribution hubs, Montemayor was soon moving up to 300 kilograms of cocaine per week to stash houses in Atlanta, Memphis, Tennessee, and other cities in the United States. He then used his trucks to smuggle proceeds from the drugs sales back to Mexico – in shipments that carried no less than $1 million cash per load. Montemayor’s transportation network was particularly regimented, disciplined, and efficient, with Montemayor and his lieutenants exercising tight control over the workers and all aspects of the drug trade.
The entire drug trafficking network was pierced by DEA agents who began wiretapping phones used by Montemayor’s workers at a distribution hub in Atlanta. Methodically unraveling the network of conspirators, seizing hundreds of kilograms of cocaine and millions of dollars of cash at a time, agents followed the chain of command of the organization to identify Montemayor, ultimately intercepting the calls in which he tightly controlled activities from Mexico. Agents then went even further to identify Montemayor’s partner and cocaine supplier: Valdez. Both Valdez and Montemayor were arrested in Mexico in 2010, and extradited to face trial in the United States in 2015.
Carlos Montemayor, a/k/a The Director, a/k/a Licenciado, a/k/a Fox, 47, of Tamaulipas, Mexico, was sentenced to 34 years, three months in prison to be followed by 10 years of supervised release by U.S. District Judge Leigh Martin May. Montemayor pleaded guilty to conspiracy to import cocaine, conspiracy to distribute cocaine, possession with intent to distribute cocaine, and conspiracy to launder money on November 14, 2018.
Members of the drug trafficking operation previously sentenced in the U.S. Court for the Northern District of Georgia are:
- Edgar Valdez-Villareal, a/k/a La Barbie, of Laredo, Texas, was sentenced to 49 years and one month in prison to be followed by 10 years of supervised release, and ordered to forfeit the sum of $192,000,000. Valdez-Villareal pleaded guilty to conspiracy to import cocaine, conspiracy to distribute cocaine, and conspiracy to launder money on January 6, 2016, and was sentenced on June 6, 2018.
- Ruben Hernandez, a/k/a Super, a/k/a Secre, was sentenced to 22 years, four months in prison to be followed by five years of supervised release. Hernandez pleaded guilty to conspiracy to distribute cocaine and conspiracy to launder money on January 29, 2013, and was sentenced on October 15, 2013.
- Juan Montemayor, a/k/a Vice, a/k/a Johnny-5, was sentenced to 21 years, 10 months in prison to be followed by five years of supervised release. Juan Montemayor pleaded guilty to conspiracy to import cocaine and conspiracy to distribute cocaine on July 16, 2013, and was sentenced on October 15, 2013.
- Jesus Ramos, a/k/a C-1, was sentenced to eight years, four months in prison to be followed by five years of supervised release. Ramos pleaded guilty to conspiracy to distribute cocaine on June 18, 2010, and was sentenced on January 21, 2011.
- Jesus Hector Flores, a/k/a Cain, was sentenced to 38 years, four months in prison to be followed by 10 years of supervised release. Flores was convicted by a jury of conspiracy to distribute cocaine and ecstasy, possession with intent to distribute cocaine, and possession of firearms in furtherance of a drug trafficking crime on January 11, 2008, and was sentenced on May 9, 2008.
- Romero Roel Martinez, a/k/a Cache, a/k/a Cuchillo, was sentenced to 26 years, 10 months in prison to be followed by five years of supervised release. Martinez pleaded guilty to conspiracy to distribute cocaine and possessing firearms in furtherance of a drug trafficking crime on April 20, 2007, and was sentenced on May 8, 2008.
- Luis Fernando Trevino, a/k/a Chile, was sentenced to 14 years, nine months in prison to be followed by five years of supervised release. Trevino pleaded guilty to conspiracy to distribute cocaine and possessing firearms in furtherance of a drug trafficking crime on March 14, 2007, and was sentenced on June 17, 2008.
- Joe Louis Lopez, a/k/a Jolly, was sentenced to 29 years, four months in prison to be followed by 10 years of supervised release. Lopez was convicted by a jury of conspiracy to distribute cocaine, possession with intent to distribute cocaine, and brandishing a firearm in furtherance of a drug trafficking crime on January 11, 2008, and was sentenced on May 7, 2008.
- Roberto Garcia, a/k/a Gordo, a/k/a Mike Jones, was sentenced to 14 years, nine months in prison to be followed by five years of supervised release. Garcia pleaded guilty to conspiracy to distribute cocaine and possessing firearms in furtherance of a drug trafficking crime on April 20, 2007, and was sentenced on May 28, 2008.
Florentino Villanueva-Castillo, a/k/a Tejano, was sentenced to 11 years in prison to be followed by five years of supervised release. Villanuevo-Castillo pleaded guilty to conspiracy to distribute cocaine on January 7, 2008, and was sentenced on May 28, 2008.
This case was investigated by the Drug Enforcement Administration.
Former U.S. Attorney John Horn, Assistant U.S. Attorney Elizabeth M. Hathaway – Chief of the Narcotics and Dangerous Drugs Section, and Assistant U.S. Attorney Garrett L. Bradford – Deputy Chief of the Narcotics and Dangerous Drugs Section prosecuted the case. The Department of Justice’s Office of International Affairs provided assistance with this case.
This prosecution was brought as a part of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.California Woman to Federal Prison for Iowa Meth ConvictionRead the Press Release
A woman who conspired to distribute methamphetamine was sentenced on May 15, 2019, to more than two years in federal prison.
On November 15, 2018, Jocelyn Mendoza, 23, from Selma, California, pled guilty to one count of conspiring to distribute methamphetamine.
At the plea hearing, Mendoza admitted that from about September 2017 through July 2018, she was involved in a conspiracy that distributed at least 300 grams of methamphetamine. Evidence at the hearing showed that Mendoza traveled by bus from Fresno, California to Sioux City, Iowa with approximately ¼ pound of methamphetamine hidden inside of a neck rest which she and another co-conspirator intended to distribute in Sioux City. Mendoza and the co-conspirator had twice previously transported ½ lb of meth from California to Iowa for redistribution.
Mendoza was sentenced by United States District Court Chief Judge Leonard T. Strand. Mendoza was sentenced to 32 months’ imprisonment. She must also serve a five year term of supervised release following her imprisonment. There is no parole in the federal system. Mendoza remains in custody of the U.S. Marshals Service until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by 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 18-4076. Follow us on Twitter @USAO_NDIA.
Armed casino robbery sends Billings man to prison for 10 yearsRead the Press Release
BILLINGS—A Billings man convicted by a jury in the armed robbery of Dotty’s Casino last year was sentenced today to 10 years in prison, five years of supervised release and ordered to pay $3,424 restitution, U.S. Attorney Kurt Alme said.
A jury in January found Antonio Francisco Gutierrez, 36, guilty of three counts, including robbery affecting commerce, brandishing a firearm in furtherance of a crime of violence and being a felon in possession of a firearm.
U.S. District Judge Susan Watters presided in the case.
Prosecutors alleged that on Feb. 5, 2018, Gutierrez asked co-defendant, Christopher Esrey, to drive him to Dotty’s Casino, on Montana Sapphire Drive, near Shiloh Road, to meet a friend to “get some money.” The pair arrived at the casino at about 11:43 p.m. Esrey waited in the car while Gutierrez entered the casino wearing a hood, hat and facemask. He tried to open the inner door but it was locked. Gutierrez pushed a buzzer to summon a casino attendant, who motioned for him to remove his clothing before she unlocked the inner door.
Gutierrez mimed as if he was going to remove the items and the attendant opened the door and began walking back to her station, prosecutors alleged. When the attendant unlocked the door, Gutierrez stopped removing his face coverings, took a pistol from his coat pocket, cocked it and pointed it at the attendant’s back. The attendant, who was pregnant, complied with Gutierrez’s instruction to empty the till.
Gutierrez got into the idling vehicle, and the attendant reported the robbery to the Billings Police Department. Officers located Gutierrez and Esrey at another casino.
Esrey pleaded guilty to accessory after the fact and was sentenced to 15 months in prison and to three years of supervised release.
Assistant U.S. Attorneys Colin Rubich and Tom Godfrey prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Billings Police Department.
The case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Ali Kourani Convicted in Manhattan Federal Court for Covert Terrorist Activities on Behalf of Hizballah’s Islamic Jihad OrganizationRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that a jury returned a guilty verdict today against Ali Kourani, a/k/a “Ali Mohamad Kourani,” a/k/a “Jacob Lewis,” a/k/a “Daniel,” on all eight counts in the Indictment, which charged him with terrorism, sanctions, and immigration offenses for his illicit work as an undercover terrorist operative for Hizballah’s external attack-planning component. KOURANI is scheduled to be sentenced on September 27, 2019, by the Honorable Alvin K. Hellerstein, who presided over the eight-day trial.
U.S. Attorney Geoffrey S. Berman said: “Ali Kourani was recruited, trained, and deployed by Hizballah’s Islamic Jihad Organization to plan and execute acts of terrorism in the United States. Kourani’s chilling mission was to help procure weapons and gather intelligence about potential targets in the U.S. for future Hizballah terrorist attacks. Some of the targets Kourani surveilled included JFK Airport and law enforcement facilities in New York City, including the federal building at 26 Federal Plaza in Manhattan. Today, Kourani has fittingly been convicted for his crimes in a courthouse that stands in the shadow of one of his potential targets.”
As reflected in the criminal Complaint, Indictment, and the evidence presented at trial:
Hizballah is a Lebanon-based Shia Islamic organization with political, social, and terrorist components that was founded in the 1980s with support from Iran. Since Hizballah’s formation, the organization has been responsible for numerous terrorist attacks that have killed hundreds, including United States citizens and military personnel. In 1997, the U.S. Department of State designated Hizballah a Foreign Terrorist Organization, pursuant to Section 219 of the Immigration and Nationality Act, and it remains so designated today. In 2010, State Department officials described Hizballah as the most technically capable terrorist group in the world, and a continued security threat to the United States.
The Islamic Jihad Organization (“IJO”), which is also known as the External Security Organization and “910,” is a highly compartmentalized component of Hizballah responsible for the planning, preparation, and execution of intelligence, counterintelligence, and terrorist activities on behalf of Hizballah outside of Lebanon. In July 2012, an IJO operative detonated explosives on a bus transporting Israeli tourists in the vicinity of an airport in Burgas, Bulgaria, killing six people and injuring 32 others. Law enforcement authorities have disrupted several other IJO attack-planning operations around the world, including the arrest of an IJO operative surveilling Israeli targets in Cyprus in 2012, the seizure of bomb-making precursor chemicals in Thailand in 2012, including chemicals manufactured by a medical devices company based in Guangzhou, China (“Guangzhou Company-1”), and a similar seizure of chemicals manufactured by Guangzhou Company-1 in Cyprus in May 2015 in connection with the arrest of another IJO operative.
KOURANI, who was born in Lebanon, attended Hizballah-sponsored weapons training in Lebanon in 2000 when he was approximately 16 years old. After lawfully entering the United States in 2003, KOURANI obtained a Bachelor of Science in biomedical engineering in 2009, and a Masters of Business Administration in 2013.
KOURANI and certain of his relatives were in Lebanon during the summer 2006 conflict between Israel and Hizballah, when a residence belonging to his family was destroyed. At some point before 2008, IJO recruited KOURANI to its ranks. In August 2008, KOURANI submitted an application for naturalization in the United States in which he falsely claimed, among other things, that he was not affiliated with a terrorist organization. In April 2009, KOURANI became a naturalized citizen and was issued a United States passport. Despite claiming in his passport application that he had no travel plans, KOURANI traveled to Guangzhou, China – the location of Guangzhou Company-1 – on May 3, 2009. He later claimed to the FBI that the purpose of the trip was to meet with medical device manufacturers and other businessmen.
IJO assigned KOURANI an IJO handler, or mentor, responsible for providing him with taskings, debriefings, and arranging training. KOURANI sometimes communicated with his handler using coded email communications, including messages sent by the handler that informed KOURANI of the need to return to Lebanon. In order to establish contact with his handler when KOURANI returned to Lebanon, KOURANI called a telephone number associated with a pager (the “IJO Pager”) and provided a code that he understood was specific to him. After contacting the IJO Pager, the handler would contact KOURANI to set up an in-person meeting by calling a phone belonging to one of KOURANI’s relatives. The IJO also provided KOURANI with additional training in tradecraft, weapons, and tactics. In 2011, for example, KOURANI attended a weapons training camp in the vicinity of Birkat Jabrur, Lebanon, where he used a rocket propelled grenade launcher, an AK-47 assault rifle, an MP5 submachine gun, a PKS machine gun (a Russian-made belt-fed weapon), and a Glock pistol.
Based on other taskings from IJO personnel, which IJO personnel conveyed during periodic in-person meetings when KOURANI returned to Lebanon, KOURANI conducted operations, which he understood to be aimed at preparing for potential future Hizballah attacks. These covert activities included searching for weapons suppliers in the United States who could provide firearms to support IJO operations; identifying individuals affiliated with the Israeli Defense Force whom the IJO could either recruit or target for violence; gathering information regarding operations and security at airports in the United States and elsewhere, including JFK International Airport in New York; and surveilling U.S. military and law enforcement facilities in New York City, including the federal building at 26 Federal Plaza in Manhattan. KOURANI transmitted some of the products of his surveillance and intelligence-gathering efforts back to IJO personnel in Lebanon using digital storage media.
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KOURANI, 34, of the Bronx, New York, was convicted of providing material support to a designated foreign terrorist organization, which carries a maximum sentence of 20 years in prison; conspiracy to provide material support and resources to a designated foreign terrorist organization, which carries a maximum sentence of 20 years in prison; receiving military-type training from a designated foreign terrorist organization, which carries a sentence of 10 years in prison or a fine; conspiracy to receive military-type training from a designated foreign terrorist organization, which carries a maximum sentence of five years in prison; conspiracy to possess, carry, and use firearms and destructive devices during and in relation to crimes of violence, which carries a maximum sentence of life in prison; making and receiving a contribution of funds, goods, and services to and from Hizballah, in violation of IEEPA, which carries a maximum sentence of 20 years in prison; conspiracy to make and receive a contribution of funds, goods, and services to and from Hizballah, in violation of IEEPA, which carries a maximum sentence of 20 years in prison; and naturalization fraud in connection with an act of international terrorism, which carries a maximum sentence of 25 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as the defendant’s sentence will be determined by Judge Hellerstein.
Mr. Berman praised the outstanding efforts of the Federal Bureau of Investigation’s (“FBI”) New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the New York City Police Department. Mr. Berman also thanked the Counterterrorism Section of the Department of Justice’s National Security Division.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Emil J. Bove III and Amanda L. Houle, with assistance from Trial Attorney Bridget Behling of the Counterterrorism Section.
Additional Charges Filed Against Plains Township Man Indicted for Firebombing the Luzerne County Children and Youth Office BuildingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal grand jury returned a second superseding indictment on May 14, 2019, charging Phillip Finn, Jr, age 48, of Plains Township, Pennsylvania, with attempted witness tampering.
According to United States Attorney David J. Freed, the second superseding indictment alleges that on January 31, 2019, Finn instructed a witness to tell law enforcement that he/she does not remember certain events with the intent to cause the witness to withhold testimony during Finn’s trial.
On July 11, 2017, Finn was indicted on charges of stalking, interstate communications and malicious damage to federal property by fire. The indictment alleged that between March 3, 2017 and March 6, 2017, Finn used Facebook, Google and his cell phone to engage in a course of conduct, to harass and intimidate two Luzerne County Children and Youth Services employees. On October 2, 2018, an additional count of Interstate Communications and the charge of use of fire to commit a felony were filed against Finn.
The case was investigated by the U.S. Federal Bureau of Investigation (FBI), the Wilkes-Barre City Police Department and the Luzerne County District Attorney’s Office. Assistant U.S. Attorney Jenny P. Roberts is prosecuting the case.
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 combined maximum penalty under federal law for these offenses is life imprisonment, a term of supervised release following imprisonment, and a fine. 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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15 May 2019
Woman found guilty of money laundering in scheme that stole money from Augusta attorneyRead the Press Release
AUGUSTA, Ga: A Texas woman who helped steal nearly a quarter-million dollars from an Augusta attorney faces up to 20 years in prison after being found guilty in a jury trial.
Gloria Ifem Okolie, 39, of Dallas, Texas, was found guilty Wednesday, May 15, of Conspiracy to Commit Money Laundering as a federal jury in U.S. District Court in Augusta began a second day of deliberations, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. She was acquitted of a second charge in the case, Wire Fraud. A date for sentencing has not yet bet set.
According to court documents and testimony during the trial, Okolie, along with former co-defendant Paul Wilson Aisosa – who previously pled guilty to money laundering – participated in a scheme to steal $246,218.83 from an Augusta attorney who was deceived into rerouting the proceeds from the sale of a West Lake home.
The money was sent to an account Okolie opened at a Dallas bank, where she, Aisosa and a co-conspirator who is currently in Nigeria withdrew large portions of the money that they sent to other conspirators who also are believed to be in Nigeria.
“Complex international cases involving cyber fraud and banking manipulation are still, in the end, just old-fashioned theft,” said U.S. Attorney Bobby L. Christine. “And just like any other theft, our job is to work with our law enforcement partners to bring these thieves to justice and shut down the avenues by which they enrich themselves at the expense of honest people.”
“Okolie was part of an elaborate plan of deception to steal money from an unsuspecting victim through an email scam,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI is committed to working with our international partners to crack down on these fraud schemes and reminds businesses to be diligently alert to potential email compromises.”
“Today’s conviction is a direct result of the excellent partnership IRS and the U.S. Attorney’s office has in combating violations of federal law,” said Thomas J. Holloman III, Special Agent in Charge of IRS Criminal Investigation, Atlanta Field Office. “This conviction should serve as a deterrent to those who might contemplate similar fraudulent actions.”
This case was investigated by the FBI and the Internal Revenue Service, and prosecuted for the United States by Assistant U.S. Attorneys Patricia Rhodes and Hank Syms.
Warwick Man Sentenced for Possessing Child Pornography Downloaded from the Dark WebRead the Press Release
PROVIDENCE – A Warwick man who purchased, downloaded, and concealed videos of child pornography he obtained from the dark web with the use of bitcoin was sentenced today to 42 months in federal prison.
According to court documents, beginning in May 2017, Stephen P. Langlois, Jr., 34, used bitcoin to subscribe to an overseas child pornography website from which he acquired and downloaded more than 100 videos of child pornography. Some of these videos included sadistic depictions of children engaged in sexual activity. Langlois concealed the videos in a music folder on his laptop.
Langlois pleaded guilty in U.S. District Court in Providence on January 2, 2019, to possession of child pornography. He was sentenced today by U.S. District Court Chief Judge William E. Smith to 42 months in federal prison to be followed by 10 years supervised release, and ordered to pay a mandatory assessment of $5,000 as provided for in the Justice for Victims Trafficking Act.
Langlois’ sentence is announced by United States Attorney Aaron L. Weisman, Homeland Security Investigations Special Agent in Charge Peter C. Fitzhugh, Special Agent in Charge of Internal Revenue Service Criminal Investigation Kristina O'Connell, and Superintendent of the Rhode Island State Police Colonel James M. Manni.
The case was prosecuted by Assistant U.S. Attorney Sandra R. Hebert.
The matter was investigated by Homeland Security Investigations, Internal Revenue Service Criminal Investigation, and the Rhode Island State Police Internet Crimes Against Children Task Force.
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