Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
10 May 2019
Charleston Man Pleads Guilty to Federal Drug CrimeRead the Press Release
CHARLESTON, W.VA. – A Charleston man pled guilty to a federal drug crime, announced United States Attorney Mike Stuart. Shanton E. Penn, 27, pled guilty to distributing over 20 grams of methamphetamine. The investigation was conducted by the Metropolitan Drug Enforcement Team (MDENT) and the Kanawha County Sheriff’s Department.
“We’re prosecuting meth dealer after meth dealer,” said United States Attorney Mike Stuart. “We are 100 percent committed to ridding our communities of poison peddlers.”
On August 14, 2018 and August 20, 2018, a confidential informant working for MDENT purchased a quantity of methamphetamine from Penn. Penn admitted that he sold the methamphetamine to the confidential informant for $300 and $375.
Penn faces up to 20 years in prison when he is sentenced on August 8, 2019.
Senior United States District Judge John T. Copenhaver, Jr. presided over the plea hearing. Assistant United States Attorney Chris Arthur is handling the prosecution.
SDWVNews and USAttyStuart
###
Buffalo Man Going to Prison for Selling FentanylRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Donald Hennings, 33, of Buffalo, NY, who was convicted of possession with intent to distribute, and distribution of butyryl fentanyl and furanyl fentanyl, was sentenced to serve 33 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Laura A. Higgins, who handled the case, stated that on three separate occasions in September and October 2016, the Hamburg Police Department conducted three separate controlled purchases of butyryl fentanyl from the defendant. In addition, in October and November 2016, Hamburg Police conducted six controlled purchases of furanyl fentanyl from Hennings.
On December 7, 2016, a search warrant was executed at the defendant’s residence on Southside Parkway in Buffalo. Officers recovered quantities of furanyl fentanyl and crack cocaine, multiple grinders, a digital scale, and blue envelopes and rubber bands commonly used to package controlled substances. Hennings was arrested inside a 2012 Chevy Traverse vehicle, which he used during several of the controlled purchases. In the door panel on the driver’s side, where the defendant was sitting, officers found an additional quantity of furanyl fentanyl.
The sentencing is the result of an investigation by the Hamburg Police Department, under the direction of Chief Gregory Wickett, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
# # # #
Broome County Man Arrested on Child Exploitation ChargesRead the Press Release
SYRACUSE, NEW YORK – Chad Swartwood, age 40, of Castle Creek, New York, was arrested today on a federal criminal complaint charging him with attempted sexual exploitation of a child, attempted receipt of child pornography, and possession of child pornography. The announcement was made by United States Attorney Grant C. Jaquith, Kevin M. Kelly, Special Agent in Charge, United States Homeland Security Investigations (HSI), Buffalo Field Office, and Acting New York State Police Superintendent Keith Corlett.
According to the allegations in the complaint, Swartwood impersonated a teenage female online to try to convince individuals he believed to be teenage boys to send him sexually explicit images of themselves. He also is alleged to have possessed images of child pornography on his mobile telephone. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Swartwood appeared today before United States Magistrate Judge David E. Peebles, who ordered the defendant detained.
If convicted of all counts, Swartwood faces a mandatory minimum of 25 years imprisonment and a maximum term of 110 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release between five years and life, as well as mandatory registration as a sex offender. A defendant’s sentence is imposed by a judge base on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case is being investigated by U.S. Homeland Security Investigations (HSI), the New York State Police Computer Crimes Unit, and Investigators from the Broome County (New York) District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney Michael D. Gadarian. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
Bronx Tax Preparer Sentenced for Aggravated Identity Theft and Multi-Year Tax Fraud SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that REBECCA BAYUO, a Bronx tax preparer, was sentenced yesterday to three years in prison for committing three different tax fraud schemes that involved using stolen identities to obtain fraudulent tax refunds. BAYUO was convicted of 12 counts of aiding and assisting the preparation of false tax returns, one count of theft of government funds, one count of aggravated identity theft, and two counts of subscribing to false tax returns, after a two-and-a-half-week jury trial. The charges arose from BAYUO’s preparation of false tax returns on behalf of her clients, her filing of false tax returns in the names of victims whose identities she had previously stolen, and her filing of false tax returns on her own behalf. The sentence was imposed by U.S. District Judge John G. Koeltl.
U.S. Attorney Geoffrey S. Berman stated: “Rebecca Bayou, a tax preparer in the Bronx, used stolen identities to file false tax returns – and collect the refunds – for dozens of victims in her money-making scheme. Tax fraud does not just cheat the government of the funds needed to provide the critical services we all use, it victimizes all honest taxpayers paying into the system. Today’s sentence is a perfect example of the consequence often awaiting tax cheats – they go to prison.”
According to the allegations contained in the Complaint, Indictment, and the evidence presented at trial:
BAYUO owned and operated Breakthrough Insurance Brokerage, a tax preparation business, located in the Bronx, New York. From in or about 2010 through in or about 2014, BAYUO used stolen identifying information of victims to file fraudulent federal income tax returns, which generated tax refunds to which BAYUO was not entitled. Specifically, BAYUO repeatedly used stolen identities of dozens of victims to file false tax returns and unlawfully collect tax refunds in their names for herself from the Internal Revenue Service (“IRS”). As a result of BAYUO’s criminal conduct, many of the victims were unable to file tax returns as required by law, and were deprived of tax refunds to which they were entitled, and on which they were counting.
In addition, from in or about 2011 through in or about 2012, BAYUO prepared and submitted to the IRS fraudulent tax returns for her clients that resulted in increased tax refunds, to which her clients were not entitled. Among other things, BAYUO charged her clients an additional fee in exchange for providing them with the stolen identities of children as false “dependents” to claim on their tax returns. BAYUO recycled the same stolen identities as false “dependents” for numerous tax returns, over at least a four-year time period.
Finally, from in or about 2014 to in or about 2015, BAYUO filed false personal income tax returns in her own name, and included in those filings personal identifying information she had stolen from other individuals. Specifically, on her own tax returns BAYUO included false “dependents,” whose identities she had stolen, in order to obtain a larger tax refund to which she was not entitled.
* * *
Judge Koeltl sentenced BAYUO to a mandatory minimum sentence of two years in prison on the aggravated identity theft count and one year in prison on the remaining counts, to be served consecutively to the two-year term prison term. In addition, Judge Koeltl imposed forfeiture in the amount of $76,985 and restitution in the amount of $127,356.
Mr. Berman praised the outstanding investigative work of the Internal Revenue Service. The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Mollie Bracewell and Cecilia Vogel are in charge of the prosecution.
Brian Folks Convicted of Sex and Drug Trafficking in Forcing and Coercing Heroin Addicted Women to ProstituteRead the Press Release
After a three week trial in United States District Court in Burlington, Vermont, on May 9, 2019, the jury found Brian Folks, 44, guilty of 13 felonies arising from his 2012 – 2016 operation of a sex and drug trafficking ring in Burlington. Folks used force, fraud, and coercion to control and manipulate dozens of young, drug addicted women into prostitution. During the time he prostituted the women, he also supplied them with heroin.
Twenty witnesses testified for the government, including eight women, most of whom were addicted to drugs and worked in his sex and/or drug trafficking business. Two additional victims died of drug overdoses prior to trial. Another approximately one dozen involved women were referenced during the trial. Only first names were used at trial and in court filings in an effort to protect victim privacy.
Most women testified that at the outset Folks offered to split prostitution earnings 50/50 with them. However, they soon wound up giving their 50% to Folks to buy drugs from him. Folks thus pocketed 100% of prostitution earnings.
The jury deliberated about six hours yesterday before convicting Folks of all drug and human trafficking charges. The 13 convictions included five counts of sex trafficking by force, fraud, or coercion; one count of sex trafficking of a minor; four counts of distributing heroin; one count of possessing heroin and cocaine base with intent to distribute; one count of conspiracy to distribute heroin and cocaine base, and one count of operating an unlawful prostitution business enterprise.
U.S. Attorney Christina E. Nolan for the District of Vermont stated, “This conviction represents a total vindication for victims of human trafficking, who bravely told their stories of abuse and degradation at the hands of Folks. Folks is a merciless predator, who targeted vulnerable young addicted women. We are grateful that a Vermont jury has served up justice. We hope that this conviction will help the countless other victims of human trafficking find their voices and come forward to seek help and services. We will never stop looking for them, connecting them with recovery services, and seeking convictions and stiff penalties for those who would commit this most heinous of crimes. I commend the collaboration of federal and local law enforcement officers who tirelessly pursued Folks, showing compassion and support for the victims and a recognition that combatting human trafficking is a crucial component of our anti-drug campaign.”
Trial evidence indicated that Folks targeted young, vulnerable women in the Burlington area. Most had experienced very challenging backgrounds, including physical and sexual abuse as children in broken homes. By the time Folks found them they were often addicted and homeless. Folks identified their weaknesses, recruited them, and exploited them for profit. Two women described how he promised them love and security and they fell in love with him. Both wound up being marketed as prostitutes. Various women also described how Folks, when they were experiencing withdrawal symptoms and needed drugs, offered them heroin in exchange for various degrading sexual acts, which he videotaped. Among the defendant’s victims were three young women whom he approached when they were age 17, each suffering from drug addiction. All three wound up photographed by Folks in their underwear and advertised in the “escort” section of Backpage.com. One such victim, since deceased, was the subject of the sex trafficking of a minor conviction.
Folks maintained strict rules to ensure compliance and profit from his sex and drugs businesses. He subjected his employees – all of whom were women – to violence and humiliation if they violated his rules, including beating, raping and physical violence. In early 2016 Folks punished the subject of the minor trafficking conviction by creating and publishing on his Facebook page a strongly derogatory video denouncing her as a promiscuous addict. Folks kept a digital library containing thousands of photographs and videos of his victims. He has a Manslaughter 1 conviction in his native New York City.
“DEA will aggressively pursue individuals like Mr. Folks who distribute heroin in order to profit and destroy people’s lives,” said DEA Special Agent in Charge Brian D. Boyle. “Today’s verdict not only holds Mr. Folks accountable for his crimes but serves as a warning to those traffickers who are fueling the opioid epidemic.”
Folks was represented at trial by Burlington attorneys Mark Kaplan and Natasha Sen. They sought to persuade the jury that government witnesses lied about Folks. Folks took the stand and testified on his own behalf, urging that he merely helped women who wished to prostitute and did not coerce or manipulate anyone.
The defendant’s sentencing has not yet been scheduled. He faces a minimum sentence of 15 years and a maximum sentence of life imprisonment, as well as restitution to sex trafficking victims.
Assistant Attorney General Eric Dreiband for the Department of Justice’s Civil Rights Division stated, “Brian Folks used violent means to force young women suffering from opioid addictions to perform commercial sex acts, causing them immeasurable harm, and he contributed to the destruction of multiple lives by selling opioids to our communities.” “Human traffickers are exploiting the opioid epidemic with increasing frequency. Their depraved conduct, like this defendant’s, will not be tolerated, and the Department of Justice will continue its vigorous efforts to hold them accountable, bring justice to their victims, and prevent them from harming others.”
This case was investigated by the Drug Enforcement Agency, with assistance from the Essex, Burlington and Winooski Police Departments and the Federal Bureau of Investigation. The United States was represented at trial by Assistant U.S. Attorney William Darrow, and Trial Attorney Emily Savner and Special Litigation Counsel Matthew Grady from the Civil Rights Division of the U.S. Department of Justice.
Bourbonnais Couple Charged with Filing False Tax ReturnsRead the Press Release
URBANA, Ill. – A Bourbonnais, Ill., couple, Raymond and Angie Adamee, are scheduled to make their initial appearance in federal court in Urbana, on June 3, 2019, on tax charges. A federal grand jury returned its indictment of the couple on May 7, 2019. The indictment charges both Raymond and Angie with five counts of filing false individual income tax returns. In addition, the indictment charges Angie Adamee with four counts of filing—and one count of aiding and assisting in filing—false corporate tax returns.
The indictment alleges that for tax years 2012 through 2016, Raymond and Angie Adamee falsely reported on their individual tax returns the income they earned from the business they own, Kankakee Plaza Liquors, 1623 E. Court St., Kankakee, Ill., knowing that their income substantially exceeded the amounts stated in the returns. The indictment also alleges that Angie Adamee falsely reported—and for 2012, that she aided and assisted in falsely reporting—gross receipts or sales earned by Kankakee Plaza Liquors on the corporation’s income tax returns, knowing that its income substantially exceeded the amounts stated in the returns.
If convicted, each count charged carries a penalty of up to three years in prison and a fine of up to $100,000 plus the costs of prosecution, and full restitution.
The charges are the result of an investigation by the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Meredith Reiter.
Members of the public are reminded that an indictment is merely an accusation; the defendants are presumed innocent unless proven guilty.
Bahamian Nationals Arrested on Federal Smuggling, Failing to Heave and Illegal Re-entry ChargesRead the Press Release
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Anthony Salisbury, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s, Homeland Security Investigations (ICE-HSI), Thomas G. Martin, Acting Chief Patrol Agent, U.S. Border Patrol (USBP), Miami Sector, U.S. Customs and Border Protection (CBP), U.S. Coast Guard Sector Miami, and Rick Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO), made the announcement.
Donald Nehemiah Watson, 35, of the Bahamas, was charged by complaint with one count of alien smuggling, in violation of Title 8, United States Code, Section 1324, and failure to heave, in violation of Title 18, United States Code, Section 2237 (Case No. 19-MJ-8188). If convicted, Watson faces up to 15 years in prison. Travis Jamaal Moss, 24, of the Bahamas, was charged by complaint with one count of reentry by an illegal alien after deportation, in violation of Title 8, United States Code, Section 1326(a) (Case No. 19-MJ-8189). If convicted, Moss faces up to 10 years in prison. The defendants were both arrested and are scheduled for a pre-trial detention hearing on May 14, 2019, in West Palm Beach Federal Court.
According to allegations contained in the court record, on May 6, 2019, officials with U.S. Border Patrol and the Palm Beach County Sheriff’s Office Marine Unit encountered a vessel approximately two nautical miles east of West Palm Beach, Florida. As the boat approached one mile off shore, it quickly turned around and fled east. The pursuing law enforcement boat, later joined by the U.S. Coast Guard, attempted to stop the vessel which continued at high speed for more than 10 nautical miles, until it ran out of fuel. The vessel was captained by Watson and occupied by Moss, an illegal alien who had been previously removed from the United States.
A complaint is merely an accusation and a defendant is presumed innocent unless and until proven guilty in a court of law.
U.S. Attorney Fajardo Orshan commended the investigation efforts of HSI, USBP, CBP Air and Marine Unit, U.S. Coast Guard Sector Miami, U.S. Coast Guard Station Lake Worth Inlet, and the Palm Beach County Sheriff’s Office. This case is being prosecuted by Assistant U.S. Attorney Gregory Schiller.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Attorney General William P. Barr Announces Edward O’Callaghan as Acting Deputy Attorney GeneralRead the Press Release
Attorney General William P. Barr issued the following statement:
“Yesterday in the Great Hall at the Department of Justice, we celebrated Rod Rosenstein's 29 years of outstanding service to the Department of Justice, and bid a fond farewell to an exceptional Department leader and friend. Over the last year, Rod has been well-served by his Principal Deputy, Ed O'Callaghan. Ed is a top-notch attorney whose intellect, competence, judgment, and experience are evident in every task he takes on. That is why I have asked him to serve as the Acting Deputy Attorney General until the Senate confirms Deputy Attorney General Rosenstein's successor, Jeffrey Rosen. I am confident that Ed will be an excellent Acting Deputy Attorney General during this interim period."
12 Gadsden and Jackson County Residents Charged in Drug Trafficking ConspiracyRead the Press Release
TALLAHASSEE, FLORIDA – A federal grand jury returned an indictment, unsealed today, charging 12 defendants with federal drug trafficking offenses. The indictment was announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.
The defendants are:
- Jermaine Terrell Hadley, 31, Quincy, Florida;
- Devar San Jacus Donaldson, 27, Quincy, Florida;
- Sariem Shanquell McMillian, 23, Quincy, Florida;
- Ja’rod Lamar Bryant, 31, Quincy, Florida;
- Jaquantavious Trayshon Owens, 25, Quincy, Florida;
- Jamaron Juanata Paden Sr., 29, Marianna, Florida;
- Eddie Lee Hughes, 52, Quincy, Florida;
- Tiffany Jean Hughes, 29, Marianna, Florida;
- Samantha Eugenia Yelle, 30, Marianna, Florida;
- Patrick Lee Baker, 43, Quincy, Florida;
- Randell Lavel Colston, 47, Quincy, Florida; and
- Linda Lockwood, 48, Quincy, Florida.
The indictment and arrests resulted from an ongoing Organized Crime Drug Enforcement Task Force Operation which targeted a drug trafficking organization alleged to be responsible for the distribution of methamphetamine, cocaine, and MDMA throughout the northcentral panhandle of Florida between 2018 and 2019.
The charged defendants face penalties ranging up to and including life imprisonment, and fines up to $20,000,000.
The case was investigated by the Drug Enforcement Administration, the Office of Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Marshals Service, the U.S. Department of Agriculture, the Gadsden County Sheriff’s Office, Jackson’s County Sheriff’s Office, the Florida Highway Patrol, the Chattahoochee Police Department, the Tallahassee Police Department, the Leon County Sheriff’s Office, the Calhoun Sheriff’s Office, the Florida Department of Law Enforcement, and the Florida Air National Guard Counterdrug Program. The case is being prosecuted by Assistant United States Attorney Eric Mountin.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt and dismantle the targeted criminal organization and seize its assets.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
9 May 2019
Woman Sentenced in Methamphetamine Distribution ConspiracyRead the Press Release
United States Attorney Ron Parsons announced that a Mitchell, South Dakota, woman convicted of conspiring to distribute 500 grams or more of methamphetamine was sentenced on May 6, 2019, by U.S. District Judge Karen E. Schreier.
Reva Dawn Janis-Bauer, age 45, was sentenced to 210 months in federal prison, to be followed by 5 years of supervised release. She was also ordered to pay $100 to the Federal Crime Victims Fund.
Janis-Bauer was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on August 7, 2018. She pled guilty on February 22, 2019.
Janis-Bauer sold methamphetamine to a confidential informant in Sioux Falls in May and June of 2018, totaling approximately 60 grams. On June 17, 2018, a search of her vehicle and a motel room she was renting revealed over 1,000 grams of methamphetamine.
This case was investigated by the Sioux Falls Police Department, the South Dakota Division of Criminal Investigation, and the Drug Enforcement Administration. Special Assistant U.S. Attorney Tamara Nash prosecuted the case.
Janis-Bauer was immediately turned over to the custody of the U.S. Marshals Service.
West Seneca Man Fined for Bilking Victims Out of Thousands of Dollars in Scheme Involving Postage Stamps and Lottery TicketsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Jerry Hayes, 71, of West Seneca, NY, who was convicted of unlawfully mailing lottery tickets and related matter, was fined $1,000 by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Jonathan P. Cantil, who handled the case, stated that between 2006 and November 17, 2017, the defendant participated in a scheme to mislead and defraud others. Hayes sent out circulars and solicitation letters encouraging potential participants (victims) to join a “club” and to mail items of nominal value, namely, cash, U.S. postage stamps, and/or unscratched lottery tickets, to two or more purported other “participants,” whose alleged names and addresses were listed on the circulars and solicitation letters.
The solicitation letters directed the victims, in turn, to provide their names and addresses, allegedly so that the information could be added to the top of the solicitation letters, thereby making the victim an “instant benefactor” of all future mailed letters. The defendant advertised that such participation in the club would result in an exponential number of people sending cash, stamps or lottery tickets back to the victim, hence allowing the victim to “get rich” off an initial minimal investment.
The solicitations letters further indicated that the majority of the current club participants resided in Western New York. However, the addresses listed in the solicitation letters were merely post office boxes rented by the defendant and located in Hamburg, West Falls, East Aurora, Athol Springs, Blasdell, Orchard Park, and West Seneca, New York. All of the participants named on the solicitation letters were aliases used by Hayes, and each of the names were associated with a different post office box rented by the defendant.
Hayes mailed circulars and solicitation letters to individuals throughout the United States with a return address of “THG Funding,” PO Box 872, East Aurora, NY, 14052. Each envelope was addressed by hand, and each contained a notation such as: “Christmas Club;” “Requested Material;” “Stamp Club;” or “Personal Stimulus Plan.” The solicitation letters touted in their narratives that such opportunities were an “endless circle of cash,” “make money all year,” “simple inexpensive program could make you a multi-millionaire,” and “receive monthly benefits of $15,000.00.”
As a result of the scheme, Hayes collected approximately $90,713.00 in cash and postage stamps.
The sentencing is the result of an investigation by the U.S. Postal Inspection Service, under the direction of Boston Division Inspector-in-Charge Joseph W. Cronin.
# # # #
Waterbury Man Charged with Illegal Gun PossessionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal grand jury in Hartford has returned an indictment charging RYAN GRAY, 24, of Waterbury, with possession of a firearm a by a convicted felon.
The indictment was returned on April 24, 2019. Gray appeared today before U.S. Magistrate Judge Donna F. Martinez in Hartford and entered a plea of not guilty to the offense. He has been detained since his arrest by Waterbury Police on January 30, 2019.
As alleged in the Indictment, on January 30, 2019, Gray possessed two loaded handguns.
It is further alleged that Grays’s criminal history includes state felony convictions for firearms, robbery and larceny offenses.
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.
If convicted of the offense, Gray faces a maximum term of imprisonment of 10 years and a fine of up to $250,000.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Bureau of Alcohol, Tobacco Firearms and Explosives and the Waterbury Police Department. The case is being prosecuted by Assistant U.S. Attorney Heather Cherry.
This prosecution has been brought through 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.
Virginia Man Convicted of Threatening Employees of the Arab American InstituteRead the Press Release
William Patrick Syring, 61, of Arlington, Virginia, was convicted today of threatening employees of the Arab American Institute (AAI), because of their race and national origin, threatening AAI employees because of their efforts to encourage Arab Americans to participate in political and civic life in the United States, and transmitting threats to AAI employees in interstate commerce. Syring was convicted on all 14 counts in the indictment.
“Threats aimed at individuals because of their race and national origin have no place in our society and violate federal civil rights laws,” said Assistant Attorney General Eric Dreiband. “The Department of Justice will continue to hold criminals accountable who commit such acts of hate so that all individuals in this country can engage in civic life and political discourse.”
Evidence presented at trial established that from 2012 to 2017, Syring sent over 700 emails to AAI employees, culminating in five death threats in 2017. According to court documents, Syring previously pleaded guilty in 2008 to sending threatening emails to AAI employees. Evidence presented at trial showed that Syring used nearly identical language that he admitted were threats in 2008 as he did in 2017.
According to testimony in court, AAI employees were frightened of Syring, because he had sent them death threats in the past and continued to do so over a decade later. Additionally, according to witness testimony, many AAI employees lived in fear that Syring would follow through his threats and physically harm them. They further testified to the toll it took on them personally and their families and loved ones.
Sentencing is set for Aug. 9. The maximum penalties for the convictions is 42 years of imprisonment.
The case was investigated by the FBI Washington Field Office and is being prosecuted by Civil Rights Division Senior Legal Counsel Mark Blumberg and Trial Attorney Nick Reddick.
Virginia Doctor Convicted on 861 Federal Counts of Drug Distribution, Including Distribution Resulting in Death: Faces Mandatory Minimum of 20 Years in Federal PrisonRead the Press Release
Abingdon, VIRGINIA – Joel Smithers, a Martinsville-based doctor, was found guilty today of 861 federal drug charges at the conclusion of a nine-day jury trial in U.S. District Court in Abingdon, United States Attorney Thomas T. Cullen announced.
The jury convicted Smithers, 36, after seven hours of deliberation, on one count of maintaining a place for the purpose of illegally distributing controlled substances, one count of possession with the intent to distribute controlled substances, and 859 counts of illegally prescribing Schedule II controlled substances. The jury also found that the oxycodone and oxymorphone Smithers prescribed to a woman from West Virginia caused her death.
“This defendant not only violated his Hippocratic Oath to his patients, but he perpetuated, on a massive scale, the vicious cycle of addiction, despair, and destruction,” U.S. Attorney Cullen stated today. “We have no higher priority than investigating drug-dealing physicians and other corrupt health-care practitioners and putting them in federal prison.”
“The actions of corrupt physicians who prescribe medically unnecessary drugs contribute to our nation’s ongoing opioid crisis and threaten the health of Americans. The human cost of these crimes is unacceptable,” said Maureen R. Dixon, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We will continue to work with our law enforcement partners to hold criminals accountable for their actions.”
“ This is a prime example of why the DEA’s Tactical Diversion Squads were formed throughout the nation,” said Jesse Fong Special Agent In Charge of the Washington Division Office. “Dr. Smithers flooded Virginia, West Virginia and Ohio with his opioid prescriptions and hid behind his white doctor’s coat as a large scaled drug dealer. The Drug Enforcement Administration’s Tactical Diversion Squads will relentlessly investigate and arrest these drug dealers disguised as doctors.”
Evidence presented at trial showed Smithers opened an office in Martinsville in August 2015, and prescribed controlled substances to every patient in his practice, resulting in over 500,000 Schedule II controlled substances being distributed. The drugs involved included oxymorphone, oxycodone, hydromorphone, and fentanyl. A majority of those receiving prescriptions from Smithers traveled hundreds of miles, one-way, to receive the drugs. Smithers did not accept insurance and took in over $700,000 in cash and credit card payments prior to a search warrant being executed at his office on March 7, 2017.
United States District Court Judge James P. Jones ordered Smithers taken into custody pending sentencing. Sentencing is scheduled for August 16 at 10:00 a.m. in Abingdon. Smithers faces a mandatory minimum sentence of imprisonment for a term of twenty years and a maximum sentence of life imprisonment. He also faces a maximum fine of more than $200 million dollars.
The case was investigated by the Roanoke offices of the Drug Enforcement Administration’s Tactical Diversion Squad and the Health and Human Services – Office of Inspector General. Task force officers with the police departments of Bristol, Martinsville, Buena Vista, Roanoke, and Roanoke County; the Sheriff’s Offices of Henry County and Pittsylvania County; and the Virginia State Police assisted in the investigation. Assistant United States Attorneys Cagle Juhan, Randy Ramseyer and Zachary T. Lee prosecuted the case for the United States.
Violent Felon Guilty of Illegally Entering the U.S. for a Fifth TimeRead the Press Release
ALEXANDRIA, Va. – An illegal alien and violent felon who has previously illegally entered the United States on at least four occasions, pleaded guilty today to his fifth instance of illegally entering the United States.
According to court documents, Jose Edgardo Diaz-Ramos, 36, is a native and citizen of Honduras. Prior to his previous removal, Diaz-Ramos was convicted of a violent felony in California of willful infliction of corporal injury on a spouse. In 2014, after serving a sentence of six years in prison, Diaz-Ramos was deported at taxpayer expense for a fourth time. Sometime thereafter, Diaz-Ramos illegally reentered the United States again.
Diaz-Ramos pleaded guilty to illegal reentry of a removed alien after commission of a felony, and faces a maximum penalty of 10 years in prison when sentenced on July 26. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Lyle A. Boelens, Acting Field Office Director for U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) Washington, D.C., made the announcement after Senior U.S. District Judge T.S. Ellis accepted the plea. Special Assistant U.S. Attorney Brendan P. Geary is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-126.
Un hombre de California acusado de delitos de odio por el tiroteo en una sinagoga en PowayRead the Press Release
El Departamento de Justicia acusó hoy a un hombre de California de delitos de odio, entre ellos el asesinato de una persona y el intento de asesinato de otros 53 más, por sus acciones en el tiroteo del 27 de abril en la Sinagoga Chabad de Poway en California. El Fiscal General Auxiliar de la División de Derechos Civiles, Eric Dreiband, el Fiscal Federal para el Distrito Sur de California, Robert S. Brewer, Jr. y la Agente Especial Encargada en funciones del FBI en San Diego, Suzanne Turner, emitieron el anuncio.
«Nadie en este país debe ser víctima de violencia, lesiones o muerte por ser quién es o por sus creencias religiosas», declaró el Fiscal General Auxiliar de la División de Derechos Civiles, Eric Dreiband. «El Departamento enjuiciará activamente a individuos que cometan un delito de odio o acto de terrorismo doméstico y seguiremos colaborando con nuestras agencias asociadas del orden público estatales y locales para que se haga justicia ante cualquier persona que contravenga los derechos civiles de los estadounidenses».
«No permitiremos la caza de nuestros miembros comunitarios en sus lugares de culto, donde deberían sentirse libres y seguros en el ejercicio de su derecho a la práctica de culto religioso», afirmó el Fiscal Federal Robert S. Brewer, Jr. «Nuestras acciones de hoy son inspiradas por nuestro deseo de lograr justicia para todas las víctimas y sus familias».
«El FBI se ha comprometido firmemente a recopilar todos los hechos y asegurar que se haga justicia en este caso» dijo la Agente Especial Encargada en funciones del FBI en San Diego, Suzanne Turner. «A medida que trabajemos juntos para hacer justicia y comenzar el proceso de recuperación, nuestra comunidad ha demostrado una fortaleza y unidad tremenda en tantos niveles, desde nuestras agencias del orden público asociadas y comunidades religiosas diversas, hasta nuestros ciudadanos y vecinos».
John T. Earnest, de 19 años, vecino de Rancho Peñasquitos, California, fue acusado por denuncia penal de 109 contravenciones relacionadas con delitos de odio.
Según la declaración jurada en apoyo de la denuncia penal, el 27 de abril Earnest condujo a la Sinagoga de Chabad de Poway, donde miembros de la congregación se habían reunido para celebrar un culto religioso en honor al Shabat y el último día de la Pascua judía. Earnest entró en el edificio armado con un rifle de asalto AR-15 completamente cargado con un cargador de 10 cartuchos. Él llevaba puesto una funda en el pecho que contenía cinco cargadores adicionales, cada uno de ellos cargados con 10 cartuchos de municiones. La declaración jurada alega que estando dentro de la Sinagoga de Poway, Earnest abrió fuego y asesinó a una persona y lesionó a otros tres miembros de la congregación, entre ellos un menor de edad. Durante una pausa mientras Earnest intentaba sin éxito recargar su rifle, varios miembros de la congregación, incluyendo un Agente de la Patrulla Fronteriza fuera de servicio, persiguieron a Earnest mientras este huía de la sinagoga. Earnest huyó de la escena en su carro, pero fue posteriormente capturado por las autoridades policiales, quienes descubrieron el AR-15 y cargadores adicionales de munición en el vehículo.
Más aún, la declaración jurada alega que, tras el tiroteo, los investigadores policiales hallaron un manifiesto en línea con el nombre de Earnest. Una copia del manifiesto se encontró posteriormente en el portátil de Earnest durante la ejecución de una orden de registro. En el manifiesto, Earnest hizo muchas declaraciones antisemíticas y antimusulmanes. En concreto, Earnest se refirió a los «judíos» como raza y manifestó que lo único que lamenta es no haber matado a más personas.
Según la declaración jurada, Earnest también confesó en el manifiesto el incendio provocado de una mezquita en Escondido en marzo del 2019. La declaración jurada alega que el 24 de marzo, siete individuos se encontraban dentro de la mezquita cuando olieron gasolina y vieron llamas saliendo de la grieta de una de las puertas de la mezquita. Los individuos apagaron el incendio, pero solo después de que el incendio hubiera dañado el exterior de la mezquita. La declaración jurada alega además que el vídeo de vigilancia muestra a un sospechoso llegando a la mezquita en el mismo tipo de vehículo que Earnest empleó para realizar el ataque en la sinagoga. El acusado supuestamente alegó en su manifiesto que se había inspirado por el tiroteo en la sinagoga Tree of Life en Pittsburgh, Pensilvania y los tiroteos recientes en dos mezquitas en Nueva Zelanda.
En concreto, la denuncia le acusa de 109 contravenciones relacionadas con delitos de odio:
- 54 cargos de obstrucción al libre ejercicio de creencias religiosas con el uso de un arma peligrosa, lo que resultó en muerte, lesiones corporales e intentos de asesinato;
- 54 cargos de vulneración de la ley de Prevención de Delitos de Odio de Matthew Shepard y James Byrd Jr.;
- Un cargo de daño a una propiedad religiosa por el uso de fuego en relación al intento de provocar un incendio en la mezquita.
Los Fiscales Federales Auxiliares Shane Harrigan, Peter Ko, John Parmley y Caroline Han, juntos con la Abogada de Litigios Rose Gibson, de la División de Derechos Civiles, están enjuiciando este caso en nombre del Gobierno. El FBI, la Oficina del Sheriff de San Diego y la Agencia de Control de Bebidas Alcohólicas, Tabaco, Armas de Fuego y Explosivos llevaron a cabo la investigación.
Earnest se enfrenta a la máxima pena posible de muerte o cadena perpetua. Actualmente se encuentra bajo custodia estatal a la espera de cargos penales estatales.
Todos los cargos y la denuncia son meramente alegaciones, y al acusado se lo considera inocente mientras no se pruebe su culpabilidad ante un tribunal de justicia.
Anexo(s):
Download Earnest Complaint and Affidavit
U.S. Attorney’s Office, FBI and Bloomington Police Department Will Host Community Meeting to Discuss SextortionRead the Press Release
United States Attorney Erica H. MacDonald, Special Agent in Charge of the FBI Minneapolis Division Jill Sanborn, and Bloomington Police Chief Jeff Potts will convene a community meeting on May 14, 2019, to talk about the issue of sextortion and the alarming increase that law enforcement is seeing in these types of cases. Sextortion is a type of online sexual exploitation where victims are coerced into providing sexually explicit images or videos often in compliance with a threat being made against them or their loved ones. Join us for a panel discussion highlighting the issue of sextortion, trends in victimization, recent cases, prevention tips, and what to do if you or a loved one becomes a target. Parents, teachers, students, law enforcement, and community leaders are encouraged to attend.
This event is free and open to the public. The meeting will take place on Tuesday, May 14, 2019, from 6:00-8:00 p.m. at the Bloomington Center for the Arts in Bloomington, Minnesota. For more information, please visit /media/1001006/dl?inline
NOTE: This event is open press. All media must RSVP to [email protected] and present valid media credentials at the event.
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
U.S. Attorney Recognizes Kansas Officers Who Died in the Line of DutyRead the Press Release
KANSAS CITY, KAN. – We all owe a debt of gratitude to three Kansas law enforcement officers who sacrificed their lives for the safety and protection of others, U.S. Attorney Stephen McAllister said in recognition of National Police Week, May 12 to May 18.
The names of Sedgwick County Sheriff’s Deputy Robert Kunze and Wyandotte County Sheriff’s Deputies Theresa King and Patrick Rohrer will be added to the National Law Enforcement Officers Memorial in Washington, D.C., during a ceremony May 13.
“We must never forget these brave officers,” McAllister said. “We will strive to be worthy of the sacrifices they made for us and to carry on their dedication to law enforcement. I invite the public to join our office in showing support for their families and their fellow officers.”
King and Rohrer were shot to death June 15, 2018, in Kansas City, Kan., while transporting prisoners between jail and court. Kunze was shot to death Sept. 16, 2018, during an arrest in western Sedgwick County.
According to the FBI, 55 law enforcement officers died in 2018 from injuries received during felonious incidents
Victim officer profile:
- Average age: 37 years old.
- Average length of service: 10 years.
- Gender: 52 male, 3 female.
For more information, see of the FBI report Law Enforcement Officers Killed and Assaulted, 2018 at https://ucr.fbi.gov/leoka/2018/
U.S. Attorney Announces Charges Against Multimillion-Dollar Business Email Compromise SyndicateRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an indictment against four defendants charged with conducting a wide-ranging business email compromise fraud scheme.
U.S. Attorney Geoffrey S. Berman said: “As alleged, these four men and others engaged in a profitable charade, posing as legitimate business counterparties to their victims, whom they deceived into sending them millions of dollars. Now, thanks to the FBI, the defendants are no longer in a position to defraud anyone.”
FBI Assistant Director William F. Sweeney Jr. said: “The subjects in this alleged scheme made it look so realistic that they were able to maintain it for several years, stealing millions of dollars from the victims. This type of insidious fraud and cybercrime can do major harm to our financial system and the agency victims. Our job each day in the New York FBI is to mitigate the damage and assist agencies and businesses in thwarting the threat these criminals pose.”
As alleged in the Indictment unsealed yesterday in Manhattan federal court[1]:
During the relevant time period, CYRIL ASHU, a/k/a “Akem Maleke,” a/k/a “Zabi Malik,” a/k/a “Bill Zambia Morgan,” a/k/a “Anibal Vasquez Roblero,” a/k/a “Baker Lee Walter,” IFEANYI EKE, a/k/a “Luthur Mulbah Doley,” JOSHUA IKEJIMBA, a/k/a “Johnson Ifeanyi Gbono,” a/k/a “Alfred Henshaw,” a/k/a “Peterson Kamara Lawson,” a/k/a “Ganiru Paul Thompson,” and CHINEDU IRONUAH, a/k/a “John Akuba Annan,” a/k/a “Kenneth Kwame Emerson,” a/k/a “Andrew Kamsi Mong,” a/k/a “Emmanuel Mong,” a/k/a “George Wallace,” a/k/a “George Weah,” a/k/a “Frederick Werner,” the defendants, and others known and unknown, engaged in a fraudulent business email compromise (“BEC”) scheme designed to deceive various victims, including an intergovernmental organization headquartered in New York City, into diverting commercial payments from their intended beneficiaries to bank accounts controlled by the defendants and their co-conspirators.
The defendants executed this fraudulent scheme by, among other things, obtaining fraudulent identification documents in false names, registering and incorporating shell companies, and opening fake bank accounts at various banks throughout the United States. Victims were successfully tricked into wiring funds in accordance with fraudulent wiring instructions sent from fake email accounts, which were designed to resemble email accounts for individuals and companies with whom those victims had business relationships. The defendants defrauded numerous victims of millions of dollars during the period from 2016 through July 2018.
CYRIL ASHU and IFEANYI EKE were arrested yesterday morning in Atlanta, Georgia and presented in the Northern District of Georgia. JOSHUA IKEJIMBA was arrested yesterday afternoon in Houston, Texas, and will be presented the Southern District of Texas. One defendant, CHINEDU IRONUAH, remains at large.
* * *
CYRIL ASHU, 34, of Georgia, IFEANYI EKE, 32, of Georgia, JOSHUA IKEJIMBA, 24, of Texas, and CHINEDU IRONUAH, 32, of Texas, are each charged with one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349, and one count of wire fraud, in violation of 18 U.S.C. § 1343. The charges of conspiracy to commit wire fraud and wire fraud each carry a maximum penalty of 20 years in prison. CYRIL ASHU is also charged with one count of aggravated identity theft, which carries a mandatory sentence of two years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the FBI, as well as the assistance of prosecutors in the Northern District of Georgia, the Southern District of Texas, and the Western District of Texas.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Olga Zverovich and Jarrod L. Schaeffer are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Two North Texas Doctors, One Nurse Sentenced to Prison for Federal Drug Trafficking ViolationsRead the Press Release
PLANO, Texas – Three medical professionals have been sentenced to federal prison over the last week in the Eastern District of Texas for the illegal distribution of opioids and other pharmaceutical controlled substances, announced U.S. Attorney Joseph D. Brown today.
Today in federal court in Plano, Howard Gregg Diamond, 58, of Sherman, was sentenced to 20 years in federal prison for conspiracy to possess with intent to distribute controlled substances and 10 years in prison for health care fraud. The sentences, handed down by U.S. District Judge Marcia A. Crone, follow Diamond’s guilty plea in October of 2018 and will run concurrently.
According to information presented in court, beginning in 2010, Diamond wrote prescriptions for hydrocodone, oxymorphone, methadone, fentanyl, morphine, oxycodone, alprazolam, and zolpidem, from his pain management medical offices in Sherman and Paris, Texas without a legitimate medical purpose. Specifically, on July 15, 2014, Diamond distributed or dispensed morphine, oxycodone, alprazolam and zolpidem to an individual that resulted in that individual’s death on July 25, 2014. In addition to the death of that patient, Judge Crone received information that six other overdose deaths were connected to prescriptions written by Diamond between 2010 and 2017. The health care fraud conviction resulted from Diamond submitting a claim for reimbursement to Medicare claiming he treated a Medicare patient on Sep. 29, 2015, although he was in another state at that time. Diamond was indicted by a federal grand jury on July 6, 2017.
On May 3, former Richardson doctor Tad W. Taylor, 64, was sentenced to 20 years in federal prison by Judge Crone for conspiracy to distribute and dispense oxycodone, amphetamine salts, hydrocodone, alprazolam and promethazine with codeine. Taylor’s wife, Chia Jen Lee, also known as Chia Jen Lee-Taylor, a registered nurse, was sentenced to 188 months in federal prison for the same charge. Taylor and Lee had previously been convicted of the charges by a jury following a seven day trial in October of 2018.
According information presented at trial, during 2010 through 2012, Taylor and Lee owned and operated Taylor Texas Medicine, a medical clinic in Richardson, Texas. The defendants were convicted of conspiring to distribute large quantities of the above five drugs at their clinic without a legitimate medical need.
“This is the type of behavior that has resulted in the opioid crisis in this country,” said United States Attorney Joseph D. Brown. “The number of pills Dr. Diamond was prescribing was shocking. When doctors care more about the money they are making than anything else, people can die, and in his case, they did. The severity of the sentences for these doctors is the kind we see for dealers of large amounts of street drugs. And really, that is what these doctors became – just drug dealers.”
“The DEA has teams of investigators who work to identify doctors who over-write prescriptions, potentially causing addiction and overdoses,” said DEA Special Agent in Charge Clyde E. Shelley, Jr. of the Dallas Field Division. “We will continue to investigate doctors who practice in this manner.”
“Opioid fraud schemes result in staggering numbers of addicted patients, overdoses, and deaths of individuals, including Medicare and Medicaid beneficiaries,” said Special Agent in Charge CJ Porter of the Department of Health and Human Services, Office of Inspector General. “Working in concert with our law enforcement partners, our agents will continue to pursue and prosecute corrupt physicians, like Dr. Howard Diamond, who contribute to this devastating national opioid epidemic. Dr. Diamond’s lengthy and meaningful sentence, as a result of his depraved indifference to patients he was entrusted to care for, should serve notice to others who would replicate this type of illegal conduct, that they risk severe consequences.”
"The plea and sentencing of Dr. Howard Diamond underscores the threat posed by this physician,” said FBI Dallas Acting Special Agent in Charge, Michael Schneider. “Diamond leveraged his medical privilege and blatantly violated the doctor's oath for personal financial gain at the expense of his patients. The FBI has made it a priority to proactively identify and bring others like him to justice who willingly engage in criminal activity, specifically over prescribing opioids to the detriment of patients they promised to help and not harm. Diamond was prosecuted because of great law enforcement partnerships that are investigating opiate abuse in the Dallas-Fort Worth Metroplex."
The case against Diamond was investigated by the U.S. Drug Enforcement Administration, Department of Health and Human Services, Internal Revenue Service, the Federal Bureau of Investigation, the Sherman Police Department, the Ellis County Sheriff’s Office, and the Texas Office of the Attorney General. This case was prosecuted by Assistant U.S. Attorneys Heather Rattan and Maureen Smith.
The cases against Taylor and Lee were investigated by the U.S. Drug Enforcement Administration, Desoto Police Department, and Ellis County Sheriff’s Office and prosecuted by Assistant U.S. Attorneys Stevan A. Buys and Jonathan R. Hornok.
######
Two Men Sentenced in Fentanyl Distribution ConspiracyRead the Press Release
United States Attorney Ron Parsons announced that two South Dakota men convicted of conspiring to distribute 40 grams or more of fentanyl were sentenced on May 6, 2019, by U.S. District Judge Karen E. Schreier.
Stuart Harlon Siecke, age 28, of Worthing, South Dakota, was sentenced to 87 months in federal prison, to be followed by 4 years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund.
Dean Joseph Bourn, age 37, of Vermillion, South Dakota, was sentenced to 88 months in federal prison, to be followed by 4 years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund.
Both men were indicted with others for Conspiracy to Distribute a Controlled Substance by a federal grand jury on February 5, 2019. They both pled guilty on February 22, 2019.
Siecke and Bourn were obtaining fentanyl from co-conspirators in Minneapolis for redistribution in South Dakota.
This case was investigated by Homeland Security Investigations, Drug Enforcement Administration, and the police departments of Vermillion, Yankton, and Sioux Falls, South Dakota. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Both men were immediately turned over to the custody of the U.S. Marshals Service.
Tonawanda Man Pleads Guilty to Drug Possession Near A High SchoolRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that James Nelson, 63, of Tonawanda, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to possession with intent to distribute crack cocaine, oxycodone, and hydrocodone within 1,000 feet of a private school. The charge carries a mandatory minimum penalty of one year in prison, a maximum penalty of 40 years, and a $2,000,000 fine.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that on December 11, 2017, investigators with the Drug Enforcement Administration and the Town of Tonawanda Police Department executed a state search warrant at the defendant’s residence at 11 Fayette Avenue in Tonawanda. Nelson was found in the living room area of the residence. Investigators recovered suspected crack cocaine, numerous pills containing suspected controlled substances, two compact digital scales, and approximately $1,442 in U.S. currency.
Subsequent testing determined that the substances recovered included crack cocaine, diazepam, oxycodone, butalbital, hydrocodone, and alprazolam.
The defendant’s residence is located within 1,000 feet of St. Joseph’s Collegiate Institute, a private secondary school, located at 845 Kenmore Avenue in Buffalo.
The plea is the result of an investigation by the Tonawanda Police Department, under the direction of Chief Jerome Uschold and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
Sentencing is scheduled for August 16, 2019, before Judge Arcara.
# # # #
Three indicted for drug conspiracy involving thousands of THC cartridges used with vaping devicesRead the Press Release
Three people were indicted in federal court for their roles in a conspiracy to distribute THC.
Indicted are Frank Altieri, 25, of Brooklyn, Florida; and David Bruell, 28, of Pepper Pike, Ohio, and James Campbell, 35, of Boynton Beach, Florida. They are each charged with one count of conspiracy to possess with intent to distribute tetrahydrocannabinol and one count of possession with intent to distribute tetrahydrocannabinol.
Prosecutors are seeking to forfeit nearly $1.5 million seized during the investigation.
According to court documents:
Campbell came to Cleveland to engage in narcotics trafficking, and met with Altieri on April 11 at a Holiday Inn Express, where they transferred numerous boxes containing THC cartridges. Campbell then drove to a house on Elsetta Avenue in Cleveland, where he understood the boxes of THC cartridges would be removed and picked up.
During surveillance of the house on Elsetta, a Nissan Altima arrived at the home and people in the car were believed to move the boxes into the home. A subsequent search of the home on Elsetta resulted in the recovery of approximately 5,888 THC cartridges, according to court documents.
A search of Bruell’s residence on Brandywood Drive in Pepper Pike resulted in the recovery of additional THC cartridges and cash. The same Nissan Altima seen at the home on Elsetta was at the Pepper Pike home, according to court documents.
A subsequent search of Bruell’s CubeSmart rental units in Columbus and Warrensville Heights resulted in the recovery of marijuana and at least 1,700 THC cartridges, according to court documents.
If convicted, the defendant's sentence will be determined by the Court after reviewing factors unique to this case, including the defendant's prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case was investigated by the Cleveland OCDETF Strike Force, including representatives of the Drug Enforcement Administration, Ohio State Highway Patrol, Cleveland HIDTA, Cuyahoga County Sheriff’s Department, Medina County Sheriff’s Office, Montville Township Police Department and the Northern Ohio Law Enforcement Task Force. It is being prosecuted by Assistant U.S. Attorney Margaret Sweeney.
An indictment is only a charge and is not evidence of guilt. The burden of proof is always on the government to prove a defendant guilty beyond a reasonable doubt.
Three Men Charged in Methamphetamine Distribution ConspiracyRead the Press Release
United States Attorney Erica H. MacDonald announced an indictment charging HUMBERTO TORRES-RODRIGUEZ, 38, JOSE ALFREDO PENALOZA ROMERO, 22, and IRWIN ENRIQUE BECERRA, 22, with conspiring to distribute methamphetamine. The defendants will make their initial appearances in U.S. District Court at a later date.
According to the indictment and documents filed in court, on April 3, 2019, Colorado law enforcement conducted a traffic stop on a California-plated vehicle. The driver, TORRES-RODRIGUEZ, consented to a search of the vehicle. Officers recovered more than 55 pounds of methamphetamine in a false compartment, or “trap,” inside the vehicle. The following day, TORRES-RODRIGUEZ made phone calls to ROMERO and BECERRA to coordinate the delivery and pickup of the methamphetamine in Minnesota. On April 5, 2019, law enforcement established surveillance at the defendants’ agreed-upon meeting location in Bloomington, Minnesota. The three defendants arrived at the meeting location and law enforcement observed BECERRA give TORRES-RODRIGUEZ money in exchange for the methamphetamine. All three defendants were taken into custody. Following the arrests, law enforcement executed a follow-up search warrant at ROMERO's residence in Minneapolis and recovered an additional sixteen (half-pound to pound) packages of methamphetamine and approximately $30,000 in U.S. currency.
This case is the result of an investigation conducted by the Drug Enforcement Administration, the Ramsey County Violent Crime Enforcement Team, and the St. Paul Police Department.
This case is being prosecuted by Assistant U.S. Attorneys Andrew R. Winter and Bradley M. Endicott.
Defendant Information:
HUMBERTO TORRES-RODRIGUEZ, 38
Los Angeles, Calif.
Charges:
- Conspiracy to distribute methamphetamine, 1 count
JOSE ALFREDO PENALOZA ROMERO, 22
Minneapolis, Minn.
Charges:
- Conspiracy to distribute methamphetamine, 1 count
- Possession with intent to distribute methamphetamine, 1 count
IRWIN ENRIQUE BECERRA, 22
Kansas City, Mo.
Charges:
- Conspiracy to distribute methamphetamine, 1 count
- Possession with intent to distribute methamphetamine, 1 count
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Three Illegal Aliens Plead Guilty to Unlawful Reentry after RemovalRead the Press Release
Gulfport, Miss. – Lucas Ramirez-Hernandez, 28, an illegal alien from Guatemala, Jose Valdez-Santana, 36, an illegal alien from Mexico, and Angel Martinez-Garcia, 19, an illegal alien from Mexico, pled guilty today before Senior U.S. District Judge Louis Guirola, Jr. to unlawful reentry by an alien after removal, announced U.S. Attorney Mike Hurst, Jere T. Miles, Special Agent in Charge of U.S. Immigration & Customs Enforcement's Homeland Security Investigations in New Orleans, and Gregory K. Bovino, Chief Patrol Agent of the U.S. Border Patrol’s New Orleans Sector.
The defendants will be sentenced by Judge Guirola, on August 20, 2019, at 1:30 p.m. They each face a potential maximum penalty of 2 years in prison followed by one year of supervised release, and a maximum $250,000 fine. They also face being removed from the United States following the completion of any prison sentence.
On April 4, 2019, a Biloxi police officer conducted a traffic stop on a Dodge Caravan minivan on Interstate 10 east bound. The driver of the vehicle was later identified as an illegal alien from Honduras. The officer observed seven passengers – five males and two females. Since the officer did not speak Spanish, he contacted the Department of Homeland Security’s Blue Lightning Operations Center, and two Homeland Security Investigations Special Agents responded to the traffic stop. All eight occupants of the vehicle were determined to be illegally present in the U.S. and were transported to the U.S. Border Patrol office in Gulfport for further processing. After interviewing the occupants, it was determined that they were being smuggled from Houston, Texas, to Maryland.
Further investigation revealed that three of the passengers (Ramirez-Hernandez, Valdez-Santana and Martinez-Garcia) were aliens who had unlawfully returned after being removed from the United States. Ramirez-Hernandez was previously removed from the United States on January 29, 2019. Martinez-Garcia was previously removed on October 13, 2015 and again on December 13, 2018. Valdez-Santana was previously removed on April 26, 2017.
U.S. Attorney Hurst praised the teamwork and cooperation exhibited by the Biloxi Police Department, the Department of Homeland Security, Immigration & Customs Enforcement, Customs and Border Protection, the U.S. Border Patrol, and Homeland Security Investigations. Assistant United States Attorney Stan Harris is the prosecutor for the case.
The Department of Justice Files Lawsuit Alleging Disability-Based Discrimination by Owners and Developers of 82 Apartment Complexes in 13 StatesRead the Press Release
The Department of Justice and the U.S. Attorney’s Office for the Southern District of Ohio today announced the filing of a lawsuit against Ohio-based Miller-Valentine Operations Inc. and affiliated companies, owners, developers and builders of 82 multifamily housing complexes located in Illinois, Indiana, Iowa, Kansas, Kentucky, Missouri, North Carolina, Ohio, Oklahoma, Pennsylvania, Tennessee, Texas and West Virginia. The lawsuit alleges that the defendants failed to design and construct housing units and related facilities to make them accessible to persons with disabilities in compliance with the Fair Housing Act (FHA) and the Americans with Disabilities Act (ADA). The 82 complexes contain more than 3,000 units that are required by the FHA to have accessible features, and most contain public spaces that are required to comply with the ADA.
According to the government’s complaint, the defendants built many of the complexes with the assistance of federal Low-Income Housing Tax Credits or with the financial assistance of other federal government programs.
“For over two decades federal laws have required multifamily housing complexes to be built with accessible features,” said Assistant Attorney General Eric Dreiband. “The Department of Justice is committed to protecting the rights of persons with disabilities to equal access to housing opportunities, including accessible dwellings and related facilities.”
“We’re in the business of enforcing federal civil rights laws to their fullest extent,” said U.S. Attorney Glassman. “It doesn’t matter to us whether the defendant is an individual in a single neighborhood or, as here, a company operating in many states. The complaint that the United States filed today alleges not only that Miller-Valentine designed and built multi-family housing complexes that are not accessible to people with disabilities, but also that Miller-Valentine took public money to build those complexes and yet still built them such that some citizens wouldn’t be able to live there.”
The lawsuit, which was filed in the United States District Court for the Southern District of Ohio, alleges that the 82 properties have significant accessibility barriers, including steps leading to building entrances; non-existent or excessively sloped pedestrian routes from apartment units to site amenities (e.g., picnic areas, dumpsters, clubhouse/leasing offices); inaccessible parking; inaccessible bathrooms and kitchens; inaccessible door hardware; and insufficient maneuvering space at unit entrances and entrances to common use areas that make those entrances inaccessible to many people with disabilities.
The lawsuit seeks an order (1) requiring the defendants to bring the properties into compliance with the FHA and the ADA, (2) requiring the defendants to pay monetary damages to persons harmed by the lack of accessibility and civil penalties to the United States to vindicate the public interest, and (3) prohibiting the defendants from designing or constructing future residential properties in a manner that discriminates against persons with disabilities. The complexes at issue are:
Illinois
- Twin Lakes Senior Villas, Rantoul, IL
Indiana
- Honey Creek, Greenwood, IN
- Mill Pond, Muncie, IN
- Summit Pointe, Lawrenceburg, IN
- Waterbury Apartments, Decatur, IN
Iowa
- Meadow Vista Senior Villas, Altoona, IA
Kansas
- Galena Estates, Galena, KS
Kentucky
- Weaver Farm Apartments, Florence, KY
Missouri
- Hampshire Landing, Joplin, MO
North Carolina
- Madison Place Senior, Gastonia, NC
- Pinecrest Apartments, Walkertown, NC
- River Crossing, Charlotte, NC
- The Enclave at Winston-Salem, Winston-Salem, NC
- The Landings at Steele Creek I, Charlotte, NC
- The Landings at Steele Creek II, Charlotte, NC
- Twin Cedars I, Hickory, NC
- Twin Cedars II, Hickory, NC
- Villas at Twin Cedars, Hickory, NC
Ohio
- Aspen Grove Apartments, Middletown, OH
- Bent Tree Apartments I, Piqua, OH
- Bent Tree Apartments II, Piqua, OH
- Breckenridge Apartments, Findlay, OH
- Bridge Street Landing, Chillicothe, OH
- Brookdale Trillium Crossing, Columbus, OH
- Brookstone Apartments, Bellefontaine, OH
- Carriage Trails Senior Villas, Huber Heights, OH
- Cedar Trail, Bellbrook, OH
- Cedar Wood Apartments, Mansfield, OH
- Cobblegate Square Apartments, Moraine, OH
- Deerfield Crossing, Lebanon, OH
- Eagles Point Apartments, Kenton, OH
- Faith Community Housing, Crestline, OH
- Fox Run, Trotwood, OH
- Glen Arbors Apartments, Napoleon, OH
- Harbour Cove Apartments, Cincinnati, OH
- Harmony Senior Village, Williamsburg, OH
- Holly Hills Apartments, Jackson, OH
- Hoover Place, Dayton, OH
- Hunter’s Oak Apartments, Greenville, OH
- Indian Trace I, Oxford, OH
- Indian Trace II, Oxford, OH
- Lake Towne Senior, Walbridge, OH
- Lofts at Hoover, Dayton, OH
- Lofts at One West High Street, Oxford, OH
- Lyons Place I, Dayton, OH
- Lyons Place II, Dayton, OH
- Mallard Glen, Amelia, OH
- Mallard Landing, Marion, OH
- Meadow Creek Apartments, Bryan, OH
- Meadow View South, Springboro, OH
- Oak Wood Apartments, Lexington, OH
- Pheasant Run Senior, Dayton, OH
- Pine Ridge, Logan, OH
- Quail Run Apartments, Van Wert, OH
- Queen Esther’s Village, Canton, OH
- Riverside Landing at Delaware Place, Delaware, OH
- Riverview Bluffs, New Richmond, OH
- Sandhurst, Zanesville, OH
- Scioto Woods I, Chillicothe, OH
- Scioto Woods II, Chillicothe, OH
- Siena Village Senior Living, Dayton, OH
- St. Bernard Commons, St. Bernard, OH
- St. Rita’s Senior Housing, Garfield Heights, OH
- Stone Creek Apartments, Moraine, OH
- Sycamore Creek Apartments, Sidney, OH
- Timber Glen II, Batavia, OH
- Timber Ridge Apartments, Dayton, OH
- Timberlake Apartments, Vandalia, OH
- Walnut Run Senior Villas, Cortland, OH
- Waterstone Landing, Perrysburg, OH
- Whitehouse Square Senior Villas, Whitehouse, OH
- Wind Ridge Apartments, Tipp City, OH
- Windsor Place, Beavercreek, OH
- Wright Place Apartments, Xenia, OH
Oklahoma
- Fairway Breeze Apartments, El Reno, OK
- Reserve at Spencer, Spencer, OK
Pennsylvania
- Allegheny Pointe, Apollo, PA
- Walkers Ridge Apartments, Greensburg, PA
Texas
- Gallatin Park Apartments, Gallatin, TX
- Oak Ridge Apartments, Nolanville, TX
- Silversage Point at Western Center, Fort Worth, TX
West Virginia
- Reserve at Oak Spring, Clarksburg, WV
Anyone with information about the inaccessible conditions at these properties should call the Department of Justice at 1-800-896-7743, and follow the prompts to enter mailbox number 9996, or send an e-mail to [email protected].
The FHA prohibits discrimination in housing based on disability, race, color, religion, national origin, sex and familial status. Among other things, it requires all multifamily housing constructed after March 13, 1991, to have basic accessibility features, including accessible routes without steps or steep slopes to all ground-floor units. Enacted in 1990, the ADA requires, among other things, that places of public accommodation -- such as rental offices -- at multifamily housing complexes designed and constructed for first occupancy after Jan. 26, 1993, be accessible to persons with disabilities. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt.
The complaint contains allegations of unlawful conduct; the allegations must be proven in court.
Texas Man Sentenced to 20 Years in Prison for Enticing a Sacramento Minor Online and Traveling to Engage in Illicit Sexual Conduct with HerRead the Press Release
SACRAMENTO, Calif. — Christopher L. Crawford, 38, of Houston, Texas, was sentenced today by U.S. District Judge Troy L. Nunley to 20 years in prison for enticing a minor online and traveling in interstate commerce to engage in illicit sexual conduct with a minor, U.S. Attorney McGregor W. Scott announced.
According to court documents, in March 2017, Crawford met a young victim online in a video game and began texting and video chatting with her. Crawford told the victim that he was 15 years old. After a few weeks of chatting, Crawford made plans to come to Sacramento and meet the victim. In April 2017, Crawford travelled from Texas to California, and lured the victim away from her junior high school campus and molested her.
This case was the product of an investigation by the Internet Crimes Against Children Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant U.S. Attorney Rosanne Rust prosecuted the case.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Terrorist Sympathizer from Iraq Sentenced to Prison for Illegally Possessing a Stolen FirearmRead the Press Release
PHOENIX Ariz. – On May 7, 2019, Duraid Hussein, 25, of Glendale, Arizona, was sentenced by U.S. District Judge G. Murray Snow to 54 months in prison. Hussein is a citizen of Iraq who entered the United States as a refugee. On December 6, 2018, Hussein was convicted by a federal jury of being a felon in possession of a firearm. In July 2017, Hussein sold a stolen firearm to another individual. As a convicted felon, Hussein is not allowed to possess firearms or ammunition.
During the investigation, Hussein was observed watching extremist propaganda videos on the Internet, and heard making statements about being called to fight the Jihad. Since entering the United States, Hussein has had multiple contacts with law enforcement for violent acts, including a May 2017 conviction for aggravated assault.
Hussein is subject to removal from the United States upon his release from prison.
The investigation was conducted by the Federal Bureau of Investigation, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, and Immigration and Customs Enforcement. The case was prosecuted by Lacy Cooper and Matthew Binford, Assistant United States Attorneys, District of Arizona, Phoenix.
Superseding Indictment adds Developer/Entrepreneur to Racketeering ConspiracyRead the Press Release
TALLAHASSEE, FLORIDA – A federal grand jury has returned a forty-seven count superseding indictment, unsealed today, against suspended Tallahassee City Commissioner Scott Charles Maddox, 51, Tallahassee political consultant Janice Paige Carter-Smith, 54, and John Thomas Burnette, 42, all of Tallahassee, Florida.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Lawrence Keefe of the Northern District of Florida, Special Agent in Charge Rachel Rojas of the FBI’s Jacksonville Field Office and Special Agent in Charge Mary Hammond of the IRS Criminal Investigation (CI) Tampa Field Office made the announcement.
In December 2018, a federal grand jury charged Maddox and Carter-Smith in a forty-four count indictment for conspiring to operate a racketeering enterprise that engaged in acts of bank fraud, extortion, honest-services fraud and bribery. That indictment also charged Maddox and Carter-Smith with substantive counts of bank fraud, false statements to financial institutions, extortion, honest-services fraud, use of interstate facilities to facilitate bribery, false statements to federal officers, conspiracy to interfere with the lawful function of the IRS, and filing false tax returns. The superseding indictment adds Burnette as a defendant and charges him with participating in the racketeering conspiracy and extortion, honest services mail fraud, the use of facilities in interstate commerce to facilitate bribery, and making false statements to federal officers.
Burnette’s initial appearance is scheduled for today at 3:00 p.m. EST at the United States Courthouse in Tallahassee. The trial of this case has been scheduled for November 4, 2019.
More specifically, the December 2018 indictment alleges that Maddox and Carter-Smith conspired to operate two companies, Governance Inc. and Governance Services LLC, as one entity they referred to as “Governance.” Governance was allegedly part of a racketeering enterprise which extorted money and accepted bribes from Governance clients under color of Maddox’s office and through fear of the economic harm which Maddox could inflict in his position as an influential City Commissioner. Maddox allegedly agreed to and voted on matters and exerted influence on City employees to take actions that benefitted the businesses that paid Maddox and Carter-Smith through Governance. Additionally, Maddox and Carter-Smith allegedly defrauded a bank of more than $250,000 through two fraudulent short sales of real property, lied to federal agents about Governance and other matters, and violated federal tax laws by conspiring to interfere with the IRS and filing false tax returns.
The superseding indictment adds charges that Burnette participated with Maddox and Carter-Smith in extorting representatives of a company seeking to develop properties in Tallahassee to pay money to Maddox through Governance in exchange for Maddox’s assistance as a public official in the proposed projects. Further, it is alleged that Burnette arranged the logistics of bribe payments of $10,000 per month to Maddox through Governance, and told the company representatives that Maddox wanted them to deal only with Burnette. Additionally, the superseding indictment alleges that when Maddox and Burnette traveled to Las Vegas with the company representatives paying for all expenses, Maddox and Burnette told the company representatives about Maddox threatening to destroy a former client’s business deals if the former client did not pay Maddox. The superseding indictment further alleges that at subsequent meetings, when asked by company representatives about stopping the bribe payments to Maddox, Burnette made various extortionate statements to the representatives as to what actions Maddox would take to cause economic harm to the company if they stopped making the $10,000 monthly payments to Maddox. The superseding indictment further alleges that Burnette made false statements to the FBI concerning the name of the firm that Carter-Smith had, his knowledge of the company making payments to Maddox through Governance, and the content of conversations that Maddox had with company representatives.
The investigation was conducted by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorneys Stephen M. Kunz, Gary Milligan, and Andrew J. Grogan of the Northern District of Florida and Trial Attorneys Simon J. Cataldo and Peter M. Nothstein of the Department of Justice, Criminal Division’s Public Integrity Section.
The maximum terms of imprisonment for the offenses are as follows:
- 30 years: Bank Fraud, False Statements to a Financial Institution
- 20 years: Racketeering Conspiracy, Extortion, and Honest Services Fraud
- 5 years: Use of Interstate Facilities in Furtherance of Bribery, Making False Statements to a Federal Officer, Conspiracy to Defraud the United States
- 3 years: False Statement on a Tax Return
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Superseding Indictment Adds Developer/Entrepreneur to Racketeering ConspiracyRead the Press Release
A federal grand jury has returned a 47-count superseding indictment against suspended Tallahassee City Commissioner Scott Charles Maddox, 51, Tallahassee political consultant Janice Paige Carter-Smith, 54, and John Thomas Burnette, 42, all of Tallahassee, Florida.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Lawrence Keefe of the Northern District of Florida, Special Agent in Charge Rachel Rojas of the FBI’s Jacksonville Field Office and Special Agent in Charge Mary Hammond of the IRS Criminal Investigation (CI) Tampa Field Office made the announcement.
In December 2018, a federal grand jury charged Maddox and Carter-Smith in a 44-count indictment for conspiring to operate a racketeering enterprise that engaged in acts of bank fraud, extortion, honest-services fraud and bribery. That indictment also charged Maddox and Carter-Smith with substantive counts of bank fraud, false statements to financial institutions, extortion, honest-services fraud, use of interstate facilities to facilitate bribery, false statements to federal officers, conspiracy to interfere with the lawful function of the IRS and filing false tax returns. The superseding indictment adds Burnette as a defendant and charges him with participating in the racketeering conspiracy and extortion, honest services mail fraud, the use of facilities in interstate commerce to facilitate bribery and making false statements to federal officers.
Burnette’s initial appearance is scheduled for today at the U.S. Courthouse in Tallahassee. The trial of this case has been scheduled for Nov. 4, 2019.
More specifically, the December 2018 indictment alleges that Maddox and Carter-Smith conspired to operate two companies, Governance Inc. and Governance Services LLC, as one entity they referred to as “Governance.” Governance was allegedly part of a racketeering enterprise which extorted money and accepted bribes from Governance clients under color of Maddox’s office and through fear of the economic harm which Maddox could inflict in his position as an influential City Commissioner. Maddox allegedly agreed to and voted on matters and exerted influence on City employees to take actions that benefitted the businesses that paid Maddox and Carter-Smith through Governance. Additionally, Maddox and Carter-Smith allegedly defrauded a bank of more than $250,000 through two fraudulent short sales of real property, lied to federal agents about Governance and other matters and violated federal tax laws by conspiring to interfere with the IRS and filing false tax returns.
The superseding indictment adds charges that Burnette participated with Maddox and Carter-Smith in extorting representatives of a company seeking to develop properties in Tallahassee to pay money to Maddox through Governance in exchange for Maddox’s assistance as a public official in the proposed projects. Further, it is alleged that Burnette arranged the logistics of bribe payments of $10,000 per month to Maddox through Governance, and told the company representatives that Maddox wanted them to deal only with Burnette. Additionally, the superseding indictment alleges that when Maddox and Burnette traveled to Las Vegas (Nevada) with the company representatives paying for all expenses, Maddox and Burnette told the company representatives about Maddox threatening to destroy a former client’s business deals if the former client did not pay Maddox. The superseding indictment further alleges that at subsequent meetings, when asked by company representatives about stopping the bribe payments to Maddox, Burnette made various extortionate statements to the representatives as to what actions Maddox would take to cause economic harm to the company if they stopped making the $10,000 monthly payments to Maddox. The superseding indictment further alleges that Burnette made false statements to the FBI concerning the name of the firm that Carter-Smith had, his knowledge of the company making payments to Maddox through Governance, and the content of conversations that Maddox had with company representatives.
An indictment is merely a charge and defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The investigation was conducted by the FBI and the IRS-CI. The case is being prosecuted by Trial Attorneys Simon J. Cataldo and Peter M. Nothstein of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Stephen M. Kunz, Gary Milligan and Andrew J. Grogan of the Northern District of Florida.
Sumner County Man Pleads Guilty to Impersonating an FBI AgentRead the Press Release
WICHITA, KAN. – A Sumner County man pleaded guilty today to trying to get out of a traffic ticket by pretending to be an FBI agent, U.S. Attorney Stephen McAllister said.
Jarrod M. Andra, 36, Milan, Kan., pleaded guilty to one count of impersonating an agent. In his plea, he admitted that on Nov. 30, 2018, he was stopped for speeding in Sumner County by a Sumner County Sheriff’s Deputy. Andra claimed he was a special agent for the FBI and presented what appeared to be an FBI identification card with his photo.
Sentencing is set for July 31. Both parties are expected to recommend a sentence of probation and a $1,000 fine. McAllister commended the FBI, the Sumner County Sheriff’s Department and Assistant U.S. Attorney Lanny Welch for their work on the case.
Stow man indicted for having methamphetamine, heroin and fentanylRead the Press Release
A Stow man was indicted in federal court for having methamphetamine, heroin and fentanyl.
David Thomas, Jr., 29, was indicted on one count of possession with intent to distribute methamphetamine and one count of possession with intent to distribute fentanyl and heroin.
Thomas had more than 500 grams of methamphetamine and approximately 12 grams of a mixture of fentanyl and heroin on February 23, 2019, according to the indictment.
If convicted, the defendant's sentence will be determined by the Court after reviewing factors unique to this case, including the defendant's prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case was investigated by the FBI and South Euclid Police Department. It is being prosecuted by Assistant U.S. Attorney Patrick Burke.
An indictment is only a charge and is not evidence of guilt. The burden of proof is always on the government to prove a defendant guilty beyond a reasonable doubt.
Stockton Man Sentenced to 5 Years in Prison for Trafficking Cocaine BaseRead the Press Release
SACRAMENTO, Calif. — David Alhaqq, 56, of Stockton, was sentenced today by U.S. District Judge Morrison C. England Jr. to five years in prison for distributing cocaine base, U.S. Attorney McGregor W. Scott announced.
Alhaqq pleaded guilty on January 3. According to court documents, in November 2016, a confidential source purchased six ounces of cocaine base from Alhaqq during a controlled buy in Lodi. Just before the buy, Alhaqq met with an unidentified third-party at a parking lot and retrieved a white box. Afterwards, Alhaqq met with the confidential source and gave him the white box, in exchange for $6,000. The box contained approximately six ounces of cocaine base (i.e., crack cocaine).
This case was the product of an investigation by the Federal Bureau of Investigation, the Stockton Safe Streets Task Force, and the Stockton Police Department, with special assistance from the San Joaquin County District Attorney’s Office. Assistant U.S. Attorney Quinn Hochhalter prosecuted the case.
St. Louis Man Sentenced for Distributing More Than 400 Grams of FentanylRead the Press Release
St. Louis, MO – Larry Weeden, Jr., 39, of St. Louis, was sentenced on Wednesday to 151 months in prison for possession of one or more firearms as a previously convicted felon and possession with intent to distribute more than 400 grams of fentanyl. He appeared before Federal District Judge Ronnie L. White.
According to court documents, investigators learned Weeden was distributing fentanyl and storing significant amounts of the drug in an apartment, causing them to seek a state-level search warrant in July of 2018.
During the execution of the warrant, investigators located six (6) loaded semi-automatic pistols, including a Glock 23 .40 caliber handgun with an extended magazine and a Springfield XD .45 caliber handgun which was later determined to have been stolen.
Investigators recovered approximately 740 grams of fentanyl in total, including a large compressed brick of fentanyl and baggies of fentanyl packaged in smaller quantities, and approximately 130 grams of methamphetamine in powder and pill form. They also located drug trafficking paraphernalia including a gas mask, cutting agents, and digital scales, as well as a money counting machine and approximately $46,000 in United States currency which was forfeited to the Government.
The St. Louis Metropolitan Police Department and the Federal Bureau of Investigation investigated this case.
St. Francis Woman Indicted on Assault ChargesRead the Press Release
United States Attorney Ron Parsons announced that a St. Francis, South Dakota, woman has been indicted by a federal grand jury for Assault With a Dangerous Weapon and Assault Resulting In Serious Bodily Injury.
Tiffany Spotted War Bonnet, age 44, was indicted on April 9, 2019. She appeared before U.S. Magistrate Judge Mark A. Moreno on May 7, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on March 4, 2019, Spotted War Bonnet assaulted an individual with a sharp metal object with the intent to do bodily harm, and the assault resulted in serious bodily injury.
The charges are merely accusations and Spotted War Bonnet is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Michael J. Elmore is prosecuting the case.
Spotted War Bonnet was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
South Carolina Man Charged with Trafficking 25 Handguns into New York CityRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, John B. Devito, the Special Agent-in-Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), and James P. O’Neill, Commissioner of the New York City Police Department (“NYPD”), announced the arrest of TORRIE JOHNSON, a/k/a “Torrie Terrel Johnson,” a/k/a “Black,” for trafficking 25 firearms from South Carolina into New York City, and for being a felon in possession of a firearm. JOHNSON was arrested and presented before U.S. Magistrate Judge Ona T. Wang in the Southern District of New York earlier today.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Torrie Johnson traveled from South Carolina to sell more than two dozen firearms illegally to an undercover officer in New York in the span of less than four months. Stopping the flow of illegal guns into New York is essential to keep our city safe, and arresting alleged prolific gun traffickers is fundamental in that effort.”
ATF Special Agent in Charge John B. Devito said: “As alleged, Johnson was responsible for transporting over two dozen firearms to the streets of New York. Illegal firearms trafficking often has a nexus to a host of other violent crimes in our community. Thanks to the efforts of the ATF/ NYPD Joint Firearms Task Force a trafficking scheme that could have put many at risk was dismantled and destroyed. ATF and its law enforcement partners stand committed to ridding our communities of these illegal guns and those responsible for putting them on the streets. I would like to thank the United States Attorney’s Office for their work in prosecuting this case.”
NYPD Commissioner James P. O’Neill said: “While New York City continues to see record reductions in gun related violence, we must remain ever vigilant against illegal firearm trafficking in order to protect the people and communities we serve. This arrest demonstrates that the cooperation with our local, state and federal law enforcement partners is producing real results that keep people safe, and ensure they feel safe too.”
According to the allegations in the Complaint unsealed today:[1]
On at least five occasions between January 23, 2019, and May 9, 2019, TORRIE JOHNSON, a/k/a “Torrie Terrel Johnson,” a/k/a “Black,” sold firearms to an undercover NYPD detective (the “UC”). In total, JOHNSON sold 25 firearms to the UC in Manhattan and the Bronx, including a variety of 9 millimeter, .32, .38, .40, .45, and .380 caliber pistols and revolvers, as well as hundreds of rounds of assorted ammunition.
JOHNSON purchased the firearms in South Carolina, and transported them to New York for the purpose of selling them there. On at least two occasions, the UC specifically told JOHNSON that he was planning to transport the firearms that JOHNSON had sold him to a foreign country, and resell them there for a profit. JOHNSON also told the UC that he was attempting to obtain for sale to the UC a Century Arms Mini Draco AK-47 semi-automatic pistol.
JOHNSON, 41, of Sumter, South Carolina, has been charged with one count of firearms trafficking, in violation of 18 U.S.C. §§ 922(a)(1)(A) and 2, which carries a maximum sentence of five years in prison, and one count of being a felon in possession of a firearm, in violation of 18 U.S.C. §§ 922(g)(1) (2), which carries a maximum sentence of 10 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
The charges in the Complaint are merely accusations, and JOHNSON is presumed innocent unless and until proven guilty.
Mr. Berman praised the outstanding investigative work of the ATF, the NYPD, and the Joint Firearms Task Force.
The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Benjamin Woodside Schrier is in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
South Bend Man Sentenced to 120 Months in PrisonRead the Press Release
SOUTH BEND –Darcy Neily, age 41, of South Bend, Indiana, was sentenced before United States District Court Judge Robert L. Miller, Jr., upon his plea of guilty to being a felon in possession of a firearm, announced U. S. Attorney Kirsch.
Neily was sentenced to 120 months in prison followed by 2 years of supervised release.
According to documents in this case, in July 2018, Neily possessed a firearm after being convicted of seven prior felony offenses.
The case was investigated by the ATF with the assistance of the South Bend Police Department and St. Joseph County Metro Homicide Unit. This case was handled by Assistant United States Attorney Joel Gabrielse.
###
Rosebud Man Indicted on Assault ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Assault With Intent to Commit Murder, Assault with a Dangerous Weapon, and Assault Resulting in Serious Bodily Injury.
Dylan Blue Thunder, a/k/a Dylan Black Lance, age 19, was indicted on April 9, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on May 7, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on March 29, 2019, Blue Thunder stabbed an individual with a knife in the neck with the intent to commit murder, and the assault resulted in serious bodily injury.
The charges are merely accusations and Blue Thunder is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Michael J. Elmore is prosecuting the case.
Blue Thunder was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Rocklin Man Pleads Guilty to Distributing Child PornographyRead the Press Release
SACRAMENTO, Calif. — Cameron Fox, 35, of Rocklin, pleaded guilty today to distributing child pornography, U.S. Attorney McGregor W. Scott announced.
According to court documents, Fox met a minor victim online for sexual purposes and after meeting her in person, he sent her child pornography.
This case is the product of an investigation by the Federal Bureau of Investigation and the Marin County Sheriff’s Office. Assistant U.S. Attorney Rosanne Rust is prosecuting the case.
Fox is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on August 1. Fox faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Ontario Man Pleads Guilty for His Role in International Fraud SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Sheldon Hurley, 39, of Markham, Ontario, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to conspiracy to commit wire fraud. The charge carries a maximum penalty of 20 years in prison, and a $250,000 fine.
Assistant U.S. Attorney Jonathan P. Cantil, who handled the case, stated that between May 2007 and July 2011, the defendant conspired with Afiya Stoddart, Sherece Payne, Ashley Cain, Luna Noncent, and others to defraud loan applicants, and fraudulently to obtain money and property from loan applicants.
The scheme involved a number of individuals in Canada operating websites for fictitious financial services companies which offered to arrange loans to U.S. residents with credit problems. Applicants provided their names, phone numbers, state of residence, requested loan amount, and approximate credit scores. They were then contacted by persons posing as Company “representatives” (using fictitious names), and told that a lender would be contacted for approval. When informed that a loan was arranged, applicants were instructed to sign and return a loan agreement, provide bank account information, and pay an “insurance deposit” for the lender to process the loan. Each applicant was provided wire instructions for the lender’s “insurance deposit,” including the name of the Company representative (payee), the amount, date, and Western Union location. Hurley engaged other individuals in the U.S. and Canada to act as Company “payees.” Some traveled from Canada to the United States, picked up wired funds, and transported them back to Canada. Others, residents of the U.S., picked up funds at Western Union locations in the U.S. and sent the cash to the defendant in Canada, via DHL courier services. Applicants never received the loans, but they were often coerced into making multiple “deposits” under various pretexts.
During the course of this scheme, the defendant recruited Afiya Stoddart and Sherece Payne to travel to Western Union locations in Buffalo, NY and elsewhere to pick up funds from victims of this scheme who sent “insurance deposits” to the fraudulently established companies.
Afiya Stoddart, Sherece Payne, Ashley Cain, and Luna Noncent were previously convicted and sentenced.
The plea is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Sentencing is scheduled for August 27, 2019, at 11:00 a.m. before Judge Wolford.
# # # #
Oahu Physical Therapist Sentenced to 42 Months for Mulit-Million Dollar Health Care Fraud SchemeRead the Press Release
HONOLULU – Garrett Okubo, 52, of Honolulu, Hawaii, was sentenced today to 42 months of imprisonment for committing health care fraud. As part of his sentence, Okubo must pay $3.7 million in restitution, $3.7 million in forfeiture, and must serve three years of supervised release.
According to court documents and information presented in court, from January 2011 through October 2017, Okubo submitted millions of dollars of false claims for payment for physical therapy services to TRICARE, Medicare, Medicaid, and HMSA. Moreover, Okubo falsely claimed he had personally provided physical therapy services to his patients, when in reality his staff members, who were not licensed, provided said services. Okubo was often not physically present in his clinic while his patients received treatment, and was instead available only by phone. Okubo inflated the amount of time that his patients were treated, by “rounding up” to the maximum amount of time that the health care benefit plan would pay for a single patient visit, even if a patient were seen for far less time. Nearly 70% of Okubo’s total billings over six years were fraudulent.
At sentencing, Chief U.S. District Judge J. Michael Seabright highlighted the importance of deterring others from committing similar crimes, and remarked that Okubo “knew exactly what he was doing.”
“Our dedicated law enforcement community will continue to pursue individuals like Mr. Okubo, whose fraudulent conduct drains money from public coffers,” stated U.S. Attorney for the District of Hawaii Kenji M. Price. “Fraud in the healthcare industry erodes the finite resources available to fund treatment for ailing patients, and we will continue to do our part as a law enforcement community to protect those resources by exposing misconduct and holding perpetrators accountable for their crimes.”
The case was jointly investigated by the Defense Criminal Investigative Service; the Federal Bureau of Investigation; the Department of Health and Human Services, Office of Inspector General; and the State of Hawaii, Department of the Attorney General, Medicaid Fraud Control Unit; and was prosecuted by Assistant U.S. Attorney Marc A. Wallenstein.
###
North Korean Cargo Vessel Connected to Sanctions Violations Seized by U.S. GovernmentRead the Press Release
Assistant Attorney General for National Security John C. Demers, U.S. Attorney Geoffrey S. Berman for the Southern District of New York, Assistant Director John Brown of the FBI’s Counterintelligence Division and Assistant Director William F. Sweeney Jr. of the FBI’s New York Field Office announced today the filing of a civil forfeiture complaint against M/V Wise Honest (the “Wise Honest”), a 17,061-ton, single-hull bulk carrier ship registered in the Democratic People’s Republic of Korea (“DPRK” or “North Korea”). The Wise Honest, one of North Korea’s largest bulk carriers, was used to illicitly ship coal from North Korea and to deliver heavy machinery to the DPRK. Payments for maintenance, equipment, and improvements of the Wise Honest were made in U.S. dollars through unwitting U.S. banks. This conduct violates longstanding U.S. law and United Nations Security Council resolutions.
“This sanctions-busting ship is now out of service,” said Assistant Attorney General Demers. “North Korea, and the companies that help it evade U.S. and U.N. sanctions, should know that we will use all tools at our disposal — including a civil forfeiture action such as this one or criminal charges — to enforce the sanctions enacted by the U.S. and the global community. We are deeply committed to the role the Justice Department plays in applying maximum pressure to the North Korean regime to cease its belligerence.”
“Today’s civil action is the first-ever seizure of a North Korean cargo vessel for violating international sanctions,” said U.S. Attorney Berman. “Our Office uncovered North Korea’s scheme to export tons of high-grade coal to foreign buyers by concealing the origin of their ship, the Wise Honest. This scheme not only allowed North Korea to evade sanctions, but the Wise Honest was also used to import heavy machinery to North Korea, helping expand North Korea’s capabilities and continuing the cycle of sanctions evasion. With this seizure, we have significantly disrupted that cycle. We are willing and able to deploy the full array of law enforcement tools to detect, deter, and prosecute North Korea’s deceptive attempts to evade sanctions.”
“Although barred from doing business in this country, North Korea continues to violate U.S. and international sanctions while simultaneously taking advantage of unwitting U.S. companies,” said Assistant Director Brown. “The FBI is committed to ensuring that North Korea be held responsible for their blatant disregard for U.S. law. I am proud of the work done by the many men and women of the FBI who pursued this case.”
“Working with our law enforcement and intelligence partners around the world gives the FBI the ability to interdict illicit activity globally,” said Assistant Director in Charge Sweeney. “Our counterintelligence efforts are squarely focused on protecting the American people. This seizure should serve as a clear signal that we will not allow foreign adversaries to use our financial systems to fund weapons programs which will be used to threaten our nation.”
According to the documents filed today in Manhattan federal court:
Pursuant to the International Emergency Economic Powers Act and the North Korea Sanctions and Policy Enhancement Act of 2016, North Korea and other individuals or entities that the Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) has determined are involved in the facilitation of proliferation of weapons of mass destruction are prohibited from engaging in transactions with U.S. persons, involving U.S.-origin goods, or using the U.S. financial system. The United Nations Security Council has similarly prohibited the provision of goods, technology, and services to North Korea, including the sale, supply, or transfer of coal.
From at least November 2016 through April 2018, the Wise Honest was used by Korea Songi Shipping Company, an affiliate of Korea Songi General Trading Corporation (a.k.a. “Songi Trading Company”), to export coal from North Korea to foreign purchasers and import machinery to North Korea (the “Korea Songi Scheme”). On June 1, 2017, OFAC designated Songi Trading Company pursuant to Executive Order 13722 for its involvement in the sale, supply, or transfer of coal from North Korea. OFAC also determined that Songi Trading Company was a subordinate of the Korean People’s Army.
On or about March 14, 2018, the Wise Honest was loaded with coal in Nampo, North Korea. On or about April 2, 2018, foreign maritime authorities intercepted and detained the Wise Honest. Maritime regulations require vessels like the Wise Honest engaged in international voyages to operate an automatic identification system (“AIS”) capable of providing information about the vessel to other ships and coastal authorities. However, despite its March 2018 voyage from North Korea, the Wise Honest had not broadcast an AIS signal since August 4, 2017.
Participants in the Korea Songi Scheme attempted to conceal the Wise Honest’s DPRK affiliation by falsely listing different countries for the Wise Honest’s nationality and the origin of the illicit coal in shipping documentation.
In connection with the Korea Songi Scheme, Kwon Chol Nam, one of Korea Songi Shipping Company’s representatives, paid for numerous improvements, equipment purchases, and service expenditures for the Wise Honest in U.S. dollars through unwitting U.S. financial institutions. Such transfers constitute a provision of services by U.S. banks to both the sender and recipient of the funds, and longstanding U.S. law prohibits banks from providing such services to North Korean parties. Payments totaling more than $750,000 were transmitted through accounts at a U.S. financial institution in connection with the March 2018 shipment of coal on board the Wise Honest.
The Wise Honest is currently in the custody of the United States, having previously been seized pursuant to a warrant issued in the Southern District of New York.
Mr. Demers and Mr. Berman praised the outstanding investigative work of the FBI and its New York Field Office, Counterintelligence Division, and thanked the Department of Justice’s Money Laundering and Asset Recovery Section and Office of International Affairs; the United States Coast Guard; and the Department of State for their assistance.
The case is being handled by Assistant U.S. Attorneys David W. Denton, Jr. and Benet J. Kearney of the U.S. Attorney’s Office for Southern District of New York, and Trial Attorney Christian Ford of the National Security Division’s Counterintelligence and Export Control Section.
North Korean Cargo Vessel Connected to Sanctions Violations Seized by U.S. GovernmentRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York, John C. Demers, Assistant Attorney General for National Security, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation, and John Brown, Assistant Director of the Counterintelligence Division of the Federal Bureau of Investigation, announced today the filing of a civil forfeiture complaint against M/V Wise Honest (the “Wise Honest”), a 17,061-ton, single-hull bulk carrier ship registered in the Democratic People’s Republic of Korea (“DPRK” or “North Korea”). The Wise Honest, one of North Korea’s largest bulk carriers, was used to illicitly ship coal from North Korea and to deliver heavy machinery to the DPRK. Payments for maintenance, equipment, and improvements of the Wise Honest were made in U.S. dollars through unwitting U.S. banks. This conduct violates longstanding U.S. law and United Nations Security Council resolutions.
U.S. Attorney Geoffrey S. Berman said: “Today’s civil action is the first-ever seizure of a North Korean cargo vessel for violating international sanctions. Our Office uncovered North Korea’s scheme to export tons of high-grade coal to foreign buyers by concealing the origin of their ship, the Wise Honest. This scheme not only allowed North Korea to evade sanctions, but the Wise Honest was also used to import heavy machinery to North Korea, helping expand North Korea’s capabilities and continuing the cycle of sanctions evasion. With this seizure, we have significantly disrupted that cycle. We are willing and able to deploy the full array of law enforcement tools to detect, deter, and prosecute North Korea’s deceptive attempts to evade sanctions.”
Assistant Attorney General John C. Demers said: “This sanctions-busting ship is now out of service. North Korea, and the companies that help it evade U.S. and U.N. sanctions, should know that we will use all tools at our disposal — including a civil forfeiture action such as this one or criminal charges — to enforce the sanctions enacted by the U.S. and the global community. We are deeply committed to the role the Justice Department plays in applying maximum pressure to the North Korean regime to cease its belligerence.”
FBI Assistant Director William F. Sweeney Jr. said: “Working with our law enforcement and intelligence partners around the world gives the FBI the ability to interdict illicit activity globally. Our counterintelligence efforts are squarely focused on protecting the American people. This seizure should serve as a clear signal that we will not allow foreign adversaries to use our financial systems to fund weapons programs which will be used to threaten our nation.”
FBI Assistant Director John Brown said: “Although barred from doing business in this country, North Korea continues to violate U.S. and international sanctions while simultaneously taking advantage of unwitting U.S. companies. The FBI is committed to ensuring that North Korea be held responsible for their blatant disregard for U.S. law. I am proud of the work done by the many men and women of the FBI who pursued this case.”
According to the documents filed today in Manhattan federal court:
Pursuant to the International Emergency Economic Powers Act and the North Korea Sanctions and Policy Enhancement Act of 2016, North Korea and other individuals or entities that the Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) has determined are involved in the facilitation of proliferation of weapons of mass destruction are prohibited from engaging in transactions with U.S. persons, involving U.S.-origin goods, or using the U.S. financial system. The United Nations Security Council has similarly prohibited the provision of goods, technology, and services to North Korea, including the sale, supply, or transfer of coal.
From at least November 2016 through April 2018, the Wise Honest was used by Korea Songi Shipping Company, an affiliate of Korea Songi General Trading Corporation, to export coal from North Korea to foreign purchasers, and to import machinery to North Korea (the “Korea Songi Scheme”). On June 1, 2017, OFAC designated Korea Songi General Trading Corporation, also known as “Songi Trading Company,” pursuant to Executive Order 13722 for its involvement in the sale, supply, or transfer of coal from North Korea. OFAC also determined that Songi Trading Corporation was a subordinate of the Korean People’s Army.
On or about March 14, 2018, the Wise Honest was loaded with coal in Nampo, North Korea. On or about April 2, 2018, foreign maritime authorities intercepted and detained the Wise Honest. Maritime regulations require vessels like the Wise Honest engaged in international voyages to operate an automatic identification system (“AIS”) capable of providing information about the vessel to other ships and coastal authorities. However, despite its March 2018 voyage from North Korea, the Wise Honest had not broadcast an AIS signal since August 4, 2017.
Participants in the Korea Songi Scheme attempted to conceal the Wise Honest’s DPRK affiliation by falsely listing different countries for the Wise Honest’s nationality and the origin of the illicit coal in shipping documentation.
In connection with the Korea Songi Scheme, Kwon Chol Nam, one of Korea Songi Shipping Company’s representatives, paid for numerous improvements, equipment purchases, and service expenditures for the Wise Honest in U.S. dollars through unwitting U.S. financial institutions. Such transfers constitute a provision of services by U.S. banks to both the sender and recipient of the funds, and longstanding U.S. law prohibits banks from providing such services to North Korean parties. Payments totaling more than $750,000 were transmitted through accounts at a U.S. financial institution in connection with the March 2018 shipment of coal on board the Wise Honest.
The Wise Honest is currently in the custody of the United States, having previously been seized pursuant to a warrant issued in the Southern District of New York.
* * *
Mr. Berman and Mr. Demers praised the outstanding investigative work of the FBI and its New York Field Office, Counterintelligence Division, and thanked the Department of Justice’s Money Laundering and Asset Recovery Section’s Program Operations Unit and Office of International Affairs, the United States Coast Guard, and the Department of State for their assistance.
The case is being handled by the Office’s Terrorism and International Narcotics as well as the Money Laundering and Transnational Criminal Enterprises Units. Assistant U.S. Attorneys David W. Denton Jr. and Benet J. Kearney of the U.S. Attorney’s Office for Southern District of New York, and Trial Attorney Christian Ford of the National Security Division’s Counterintelligence and Export Control Section are in charge of this case.
Nitro Man Pleads Guilty to Gun CrimeRead the Press Release
CHARLESTON, W.Va. – A Nitro, West Virginia, man pled guilty to a federal firearm charge, announced United States Attorney Mike Stuart. On May 8, 2019, Cole Dylan Cooper, 30, pled guilty to possession of a firearm by a felon before United States District Judge Joseph R. Goodwin. Stuart commended the investigation conducted by the South Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
At the plea hearing, it was established that on November 11, 2018, police officers were dispatched to Thomas Hospital in South Charleston, West Virginia, where a suspect was attempting to break into vehicles and evading hospital security officers. Officers spotted Cooper in a nearby parking lot. Cooper’s appearance matched the description of the attempted burglary suspect.
An officer asked Cooper if he had fled from Thomas Hospital security officers, and Cooper acknowledged that he had. Cooper further stated that he was carrying a firearm, and officers retrieved a loaded pistol from Cooper’s inner jacket pocket. Cooper was not permitted to possess the firearm as he had previously been convicted of conspiracy to commit first degree robbery, a felony.
Cooper faces up to 10 years in federal prison when he is sentenced on July 31, 2019. Assistant United States Attorney Andrew J. Tessman is handling the prosecution.
SDWVNews and USAttyStuart
###
Nine Individuals Connected to a Hacking Group Charged with Online Identity Theft and Other Related ChargesRead the Press Release
Six individuals connected to a hacking group known to its members as “The Community” were charged in a fifteen count indictment unsealed today with conspiracy to commit wire fraud, wire fraud and aggravated identity theft, announced United States Attorney Matthew Schneider. In addition, a criminal complaint was unsealed charging three former employees of mobile phone providers with wire fraud in relation to the conspiracy.
Schneider was joined in the announcement by Acting Special Agent in Charge Angie Salazar of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Detroit.
Charged in the indictment were:
Conor Freeman, 20, of Dublin, Ireland
Ricky Handschumacher, 25 of Pasco County, Florida
Colton Jurisic, 20 of, Dubuque, Iowa
Reyad Gafar Abbas, 19, of Rochester, New York
Garrett Endicott, 21, of Warrensburg, Missouri
Ryan Stevenson, 26, of West Haven, Connecticut
Charged in the criminal complaint were:
Jarratt White, 22 of Tucson, Arizona
Robert Jack, 22 of Tucson, Arizona
Fendley Joseph, 28, of Murrietta, California
According to the indictment, the defendants are members of “The Community” and are alleged to have participated in thefts of victims’ identities in order to steal cryptocurrency via a method known as “SIM Hijacking”. Cryptocurrencies, also known as virtual currencies or digital currencies, are online media of exchange. The most famous of these is Bitcoin. Like traditional currency, they act as a store of value and can be exchanged for goods and services. They can also be exchanged for dollars.
“SIM Hijacking” or “SIM Swapping” is an identity theft technique that exploits a common cyber-security weakness – mobile phone numbers. This tactic enabled “The Community” to gain control of victims’ mobile phone number, resulting in the victims’ phone calls and short message service (“SMS”) messages being routed to devices controlled by “The Community”. “SIM Hijacking” was often facilitated by bribing an employee of a mobile phone provider. Other times, SIM Hijacking was accomplished by a member of “The Community” contacting a mobile phone provider’s customer service—posing as the victim—and requesting that the victim’s phone number be swapped to a SIM card (and thus a mobile device) controlled by “The Community”.
The indictment alleges that, once “The Community” had control of a victim’s phone number, the phone number was leveraged as a gateway to gain control of online accounts such as a victim’s email, cloud storage, and cryptocurrency exchange accounts. For example, “The Community” would use their control of victims’ phone numbers to reset passwords on online accounts and/or request two-factor authentication (2FA) codes that allowed them to bypass security measures.
The members of “The Community” charged in the indictment endeavored to gain control of victims’ cryptocurrency wallets or online cryptocurrency exchange accounts and steal victims’ funds. It is alleged in the indictment that the defendants executed seven attacks that resulted in the theft of cryptocurrency valued at approximately $2,416,352.
According to the criminal complaint, defendants White, Jack and Joseph were employees of mobile phone service providers and helped members of “The Community” steal the identities of subscribers to their employers’ services in exchange for bribes.
“Mobile phones today are not only a means of communication but also a means of identification,” stated United States Attorney Matthew Schneider. “This case should serve as a reminder to all of us to protect our personal and financial information from those who seek to steal it.”
“The allegations against these defendants are the result of a complex cryptocurrency and identity theft investigation led by Homeland Security Investigations, which spanned two continents,” said Salazar. “Increasingly, criminal groups are turning exclusively to web-based schemes to further their illicit activities, which is why HSI has developed capabilities to meet these threats head on.”
If convicted on the charge of conspiracy to commit wire fraud, each defendant faces a statutory maximum penalty of 20 years in prison. The charges of wire fraud each carry a statutory maximum penalty of 20 years in prison. A conviction of aggravated identity theft in support of wire fraud carries a statutory maximum penalty of 2 years in prison to be served consecutively to any sentence imposed on the underlying count of wire fraud.
The defendants in this case are presumed innocent. Indictments and criminal complaints are merely charges and it is the government’s burden to prove guilty beyond a reasonable doubt.
This case was investigated by special agents of Immigration and Customs Enforcement with the assistance of Irish law enforcement authorities. The case is being prosecuted by Assistant United States Attorney Timothy Wyse, assisted by Assistant United States Attorney Shankar Ramamurthy and attorneys from the DOJ Office of International Affairs. Special thanks are due to Assistant United States Attorneys and federal agents across the country that provided assistance with arrests and searches conducted on May 9, 2019.
New York Man Sentenced to 30 Years for Attempting to Produce Child PornographyRead the Press Release
JEFFERSON CITY, Mo. – A Binghamton, N.Y., man who posed online as a teenage girl was sentenced in federal court today for attempting to produce child pornography by tricking children – including three victims in Sedalia, Mo. – into sending him nude images of themselves.
Brandon David Cuddihe, 32, was sentenced by U.S. District Judge Stephen R. Bough to 30 years in federal prison without parole. The court also sentenced Cuddihe to 30 years of supervised release following incarceration.
On Oct. 16, 2018, Cuddihe pleaded guilty to two counts of attempting to produce child pornography. Cuddihe admitted that he posed on Facebook as a 14-year-old girl named “Hannah Richards.” Using that false identity, he conversed with more than 150 people, many of whom were between 10 and 16 years of age. Three minors, including two 10-year-olds and a teenager, are from the Sedalia, Mo., area. The mother of one of those victims contacted the Sedalia Police Department when she learned that her 10-year-old daughter had sent nude photos and videos via Facebook Messenger. Federal agents were able to identify and interview eight additional victims between the ages of 10 and 16.
Using the “Hannah Richards” Facebook account, Cuddihe told investigators, he would pick a random individual to befriend. Cuddihe would go through all of their friends and add a bunch of their friends to his friends list. If an individual accepted his friend request, then he would begin chatting with them through Facebook Messenger. In some cases, according to court documents, Cuddihe redistributed a victim’s images in order to convince other children to produce child pornography. The “Hanna Richards” Facebook account is over 2,000 pages long and is dedicated almost entirely to soliciting pornographic images from children.
This case was prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by the FBI, the Sedalia, Mo., Police Department, the Binghamton, N.Y., Police Department, and the Broome County, N.Y., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."New York CPA Sentenced to 14 Months in Prison for False Tax FilingRead the Press Release
NEWARK, N.J. – A certified public accountant from New York was sentenced today to 14 months in prison for filing a tax return in his own name that contained materially false information, U.S. Attorney Craig Carpenito announced.
Christopher Miu, 58, previously pleaded guilty before U.S. District Judge William J. Martini to an information charging him with one count of subscribing to a tax return that he knew substantially understated his gross income. Judge Martini imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Between 2008 and 2014, Miu failed to file income tax returns own his own behalf. When he ultimately filed returns for those years, Miu substantially under-reported his gross income, leading to a tax loss to the United States of more than $550,000.
In addition to the prison term, Judge Martini sentenced Miu to one year of supervised release and ordered him to pay restitution of $670,000.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan R. Tafur, with the investigation leading to today’s sentencing.
The government is represented by Senior Trial Counsel Andrew Leven of the Healthcare and Government Fraud Unit of the U.S. Attorney’s Office, District of New Jersey.
Defense counsel: Aidan P O’Connor Esq., Hackensack, New Jersey
Mississippi Man Sentenced to 17 Years in Prison for Assisting Producer of Child PornographyRead the Press Release
TUCSON, Ariz. – On May 8, 2019, Rico Wilbert, 38, of Purvis, Mississippi, was sentenced by U.S. District Judge James A. Soto to 17 years in prison. Wilbert’s term of imprisonment will be followed by lifetime supervised release requiring him to register and abide by sex offender conditions. Wilbert had previously pleaded guilty on August 27, 2018, to aiding and abetting the production of child pornography.
Agents from Homeland Security Investigations (HSI) investigating Josue Cota arrested Wilbert after discovering chats in which Wilbert encouraged and requested videos of Cota sexually abusing children. Wilbert and Cota communicated and exchanged child pornography online over at least a nine-month period during 2016 and 2017. Evidence showed that Wilbert repeatedly asked Cota for “new” material, and encouraged Cota as he sexually assaulted his victims. In February 2019, Cota was sentenced in federal court to 60 years’ incarceration for production of child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched by the Department of Justice in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The investigation in this case was conducted by Homeland Security Investigations, Douglas Office. The prosecution was handled by Carin C. Duryee and Carmen F. Corbin, District of Arizona, Tucson.
Michigan Woman Prepared False Federal Income Tax Returns for now Defunct Pittsburgh Tax ServiceRead the Press Release
PITTSBURGH, PA – A resident of Michigan has pleaded guilty in federal court on charges of Aiding or Assisting in the Preparation or Filing of False Federal Income Tax Returns, United States Attorney Scott W. Brady announced today.
Lakisha K. Pinkney, 42, of Eastpointe, MI pleaded guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, Pinkney, a former tax preparer for now defunct "Cititax Refund" in Pittsburgh between 2010 and 2013 prepared federal income tax returns for other persons that included false Schedule C information, and which requested refunds for taxpayers totaling approximately $626,000.
Judge Fischer scheduled the sentencing for September 18, 2019 at 11 a.m. The law provides for a total sentence of 3 years imprisonment for each count, a fine of $100,000.00 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigations conducted the investigation that lead to the prosecution of Lakisha K. Pinkney.
Mercer County Man Indicted on Production of Child Pornography Abroad, Illicit Sexual Conduct Abroad, and Possession of Child PornographyRead the Press Release
TRENTON, N.J. – A Mercer County, New Jersey, man, formerly of Ocean County, New Jersey – a cargo pilot who traveled abroad frequently – was indicted today for allegedly using two minors to participate in acts of child sexual abuse, which he video-recorded and imported to the United States, U.S. Attorney Craig Carpenito announced.
Frank William Maile, 63, of Hamilton, New Jersey, and formerly of New Egypt, New Jersey, was previously arrested on May 1, 2018, by agents of the Department of Homeland Security (DHS), Homeland Security Investigations (HSI). Maile is retired from the U.S. Air Force and, before his arrest, worked as a cargo pilot. A grand jury sitting in Trenton today returned a five-count indictment against Maile, charging two counts of production of child pornography abroad, two counts of illicit sexual conduct abroad, and one count of possession of child pornography.
According to documents filed in this case and statements made in court:
Between Nov. 27, 2015, and Dec. 27, 2015, while in the Philippines, Maile created images and videos of two minor females engaging in multiple sex acts. Between Feb. 18, 2016, and March 28, 2016, Maile traveled to the Philippines and engaged in sexual contact with both victims, which constituted commercial sex acts because they were performed for compensation, and also created additional videos of the victims. Maile also possessed additional images of child sexual abuse in New Jersey at the time of his arrest.
The charges of producing child pornography abroad each carry a mandatory minimum sentence of 15 years in prison, a maximum potential penalty of 30 years in prison, and a $250,000 fine. The charges of engaging in illicit sexual conduct in a foreign place each carry a maximum potential penalty of 30 years in prison, and a $250,000 fine. The charge of possession of child pornography carries a maximum potential penalty of 10 years in prison, and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of the DHS Cherry Hill office, under the direction of Resident Agent in Charge Richard Reinhold, with the investigation leading to the charges. He also thanked the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley D. Billhimer, and the Plumsted Township Police Department, under the direction of Chief Earl Meroney, for their assistance with the investigation.
The government is represented by Assistant U.S. Attorney Elisa T. Wiygul of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Anyone with information regarding possible victims of this activity is urged to contact HSI’s tip line at 866-DHS-2-ICE.
Defense counsel: Jerome A. Ballarotto Esq., Trenton