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Monday 1 April 2019
Lake Jackson Area Attorney Sentenced in Scheme to Commit Bank FraudRead the Press Release
HOUSTON ‐A 65-year-old resident of Lake Jackson has been ordered to federal prison for his role in a mortgage fraud scheme, announced U.S. Attorney Ryan K. Patrick. Kirk Lawrence Brannan pleaded guilty to bank fraud April 30, 2018, admitting he conspired with others from 2005 to 2009 to execute a scheme to defraud Wells Fargo Bank and other lenders.
Today, Chief U.S. District Judge Lee Rosenthal handed him a 36-month sentence to be immediately followed by three years of supervised release. At the hearing, the court held that, in committing the crime, Brannan had used sophisticated means and had employed his special skills as an attorney and real estate agent. Judge Rosenthal noted that Brannan had created false HUD-1 settlement forms and title documents that purported to show the sale of three of his properties to his children at grossly inflated prices. These HUD-1 forms then became the three comparable sales that appraisers relied upon in over-valuing the rest of Brannan’s beach home properties which Brannan then sold through the fraud scheme at inflated prices.
In imposing the sentence, Judge Rosenthal balanced Brannan’s honorable military service and other aspects of what, up to the time of the fraud, had been an exemplary life, with the tremendous damage mortgage fraud had done to the U.S. financial system and economy and the fact that Brannan had been a knowing and willing participant in such a scheme. She also pointed out that some individuals much less sophisticated than Brannan had suffered severe economic harm as a result of Brannan’s scheme.
He was further ordered to pay $5,317,350 in restitution. A money judgement was previously entered in the amount of $2,401,368.
Brannan sold 10 beach homes in the Freeport/Surfside area to “straw buyers” at exorbitant prices. Other co-conspirators recruited straw buyers who created loan applications with misrepresentations that lenders relied upon in deciding to make the mortgage loans. The applications contained misrepresentations of the buyer’s address, employer, income and expenses. The applications also suggested the buyers were much better credit risks than they actually were. Brannan admitted he paid kickbacks to co-conspirators each time one of the beach homes was sold to a straw buyer.
The beach properties were sold at two to three times the appraised values. The mortgage lenders, including Wells Fargo Bank, were induced to lend the inflated amounts for the purchases through flawed or fraudulent appraisals which were based on comparisons Brannan manufactured to further the scheme.
Brannan created settlement statements that suggested he sold three of his properties to his children at exorbitant prices. Appraisers relied upon these “sales” as comparable sales in appraising Brannan’s remaining properties sold to straw buyers. As a result of the fraudulent appraisals, he and his co-conspirators were able to inflate the values for his properties and deceive the lenders into approving home loans at those exorbitant amounts.
All of the straw buyers defaulted on the mortgages, and all 10 of the beach properties ended up in foreclosure.
The fraudulent mortgage loan scheme resulted in a loss of $5,317,350 to Wells Fargo Bank and the other lenders. Brannan paid $2,401,368 to his co-conspirators as part of the scheme.
Previously released on bond, Brannan was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
Co-conspirators Chucoboie Lanier, 42, David Lee Morris, 56, and Derwin Jerome Blackshear, 52, all of Houston, previously pleaded guilty for their roles in the scheme. Lanier received a sentenced of 36 months while Morris was ordered to serve a 42-month prison term. Blackshear is set for sentencing April 9.
The Texas Department of Public Safety and the FBI conducted the investigation. Assistant U.S. Attorneys Robert Johnson and Michael Day are prosecuting the case.
Justice Department Settles Lawsuit Against Glendale, Arizona, for Violating the USERRA Rights of Arizona Air National Guard MemberRead the Press Release
The Department of Justice today announced that a settlement has been reached with the City of Glendale, Arizona, resolving a lawsuit filed by the Department of Justice under the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) on behalf of Arizona Air National Guard Member Rebecca Cruz.
According to the complaint filed in the United States District Court for the District of Arizona, the City of Glendale fired Captain Cruz because she needed to miss work to attend military training.
To resolve this case, the City paid Cruz the back wages and retirement benefits that she lost because of her termination.
“Our nation depends on Captain Cruz and other members of our National Guard. Our laws preserve their civilian jobs when they are called to service,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Department of Justice ensures that these laws are followed.”
USERRA protects the rights of uniformed servicemembers to retain their civilian employment following absences due to military service obligations, and provides that servicemembers shall not be discriminated against because of their military obligations. This case stems from a referral by the U.S. Department of Labor (DOL), pursuant to an investigation by the DOL’s Veterans’ Employment and Training Service. The case is being handled by the Employment Litigation Section of the Department of Justice’s Civil Rights Division, which works collaboratively with the DOL to protect the jobs and benefits of National Guard servicemembers upon their return to civilian life.
The Justice Department gives high priority to the enforcement of servicemembers’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at www.usdoj.gov/crt/emp and www.servicemembers.gov, as well as on DOL’s website at www.dol.gov/vets/programs/userra/main.htm.
Justice Department Settles Immigration-Related Discrimination Claim Against Housing Authority in TexasRead the Press Release
The Justice Department today announced that it has reached a settlement agreement with the Housing Authority of Victoria, Texas (Housing Authority). The settlement resolves a complaint that the Housing Authority discriminated against a lawful permanent resident when it rejected his valid employment documents and fired him in violation of the anti-discrimination provision of the Immigration and Nationality Act (INA). While it is illegal under the INA for employers to knowingly hire individuals without work authorization, it is also illegal under that law for employers to discriminate against lawful permanent residents, among other work-authorized immigrants, in the hiring process.
“Employers should not reject valid employment documents because of a lawful permanent resident’s citizenship status,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “We look forward to working with the Housing Authority to ensure its compliance with the Immigration and Nationality Act.”
The Department’s investigation, which was initiated based upon the lawful permanent resident’s complaint, concluded that the Housing Authority improperly requested that the worker present more documents than necessary to prove his ability to work, thereby rejecting the identification and unrestricted Social Security card he already presented, based on his citizenship status. These actions constitute unfair documentary practices in violation of the INA.
The Department’s investigation also concluded that the Housing Authority improperly terminated the worker based on his citizenship status when he could not comply with its discriminatory document request. Under the INA, workers are allowed to choose from lists of acceptable documents to prove that they are authorized to work, and employers cannot reject valid documents or specify which documents the workers should present because of their citizenship. The INA also prohibits employers from firing U.S. citizens and those who are lawfully in the country and authorized to work based on their citizenship, immigration status, or national origin.
Under the settlement, the Housing Authority will offer to rehire the injured worker, provide him back wages, pay civil penalties to the United States, train employees on the requirements of the INA’s anti-discrimination provision, and be subject to departmental monitoring requirements.
The Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits discrimination against individuals who are authorized to work based on citizenship status and national origin in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation; and intimidation.
More information on how employers can avoid unlawful discrimination when verifying that workers are eligible to work is available here. For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.
Applicants or employees who believe they were subjected to discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral for a fee; or discrimination in the employment eligibility verification process (Form I-9 and E-Verify) based on their citizenship, immigration status or national origin; or retaliation can file a charge or contact IER’s worker hotline for assistance.
Jury finds Warren man guilty of selling heroin that resulted in fatal overdose of womanRead the Press Release
A jury found a Warren man guilty of selling heroin that resulted in the overdose death of a woman, as well as other crimes.
John G. Simer II, 39, was found guilty of all 13 countss he faced, including: distribution of heroin that resulted in death, possession with intent to distribute heroin, possession with intent to distribute cocaine, being a felon in possession of firearms, using firearms in furtherance of drug trafficking and being a felon in possession of body armor.
Simer is scheduled to be sentenced July 17.
Simer sold heroin on March 20, 2017. A Warren woman ingested the heroin and died, according to court documents and trial testimony.
Simer possessed heroin and cocaine on April 19, 2017. He also possessed a Smith & Wesson .40-caliber pistol, 58 rounds of ammunition and body armor on that day, despite previous convictions for aggravated robbery and firearms offenses that made it illegal for him to have a firearm or body armor, according to court documents and trial testimony.
“Opioids and other drugs have caused a staggering amount of pain and death across our state, particularly in Trumbull County,” said U.S. Attorney Justin E. Herdman. “We will continue to seek long prison sentences for people who sell heroin and profit off this epidemic.”
Warren Police Chief Eric Merkel said: "I hope this case serves as a cautionary tale to anyone who thinks their criminal liability ends after they have sold their drugs. We will continue to investigate these overdose deaths and bring those responsible to justice. I would like to thank Detective Melanie Gambill and the Warren Street Crimes Unit for all of their hard work on this case."
This case was investigated by the Warren Police Department’s Street Crimes and prosecuted by Assistant U.S. Attorneys Marisa T. Darden and Segev Phillips.
Jefferson County pharmacist ordered to pay more than $335,000 for filling fake prescriptionsRead the Press Release
WHEELING, WEST VIRGINIA – David M. Wasanyi, a former Martinsburg and Charles Town, West Virginia pharmacist, was ordered to pay $335,670 in civil penalties for filling prescriptions in violation of the Comprehensive Drug Abuse Prevention and Control Act, United States Attorney Bill Powell announced.
Wasanyi, age 50, was a pharmacist at City Pharmacy in Martinsburg and at City Pharmacy in Charles Town, West Virginia. From 2010 to 2015, City Pharmacy filled 1,181 invalid prescriptions for controlled substances written by physicians in Florida, Georgia, Tennessee, and Virginia for patients in Alabama, Florida, Georgia, Kentucky, Maryland, Ohio, Tennessee and Virginia. All of the purportedly fraudulent patients traveled great distances to have the illegitimate prescriptions filled, most by Wasanyi.
The civil judgment against Wasanyi in the amount of $335,670 is for his estimated income from those illegitimate prescriptions, many of which were written for oxycodone.
Assistant U.S. Attorneys Greg Kinskey and Stephanie Savino litigated the case on behalf of the government. The Drug Enforcement Administration investigated.
U.S. District Judge John Preston Bailey presided.
Indictment Unsealed Charging Mangum Pharmacist with over $1 Million in Health Care FraudRead the Press Release
OKLAHOMA CITY – A federal indictment has been unsealed charging JEFFREY SCOTT TERRY, 37, of Mangum, Oklahoma, with forty counts of using his pharmacy to defraud Medicare and Medicaid, announced First Assistant U.S. Attorney Robert J. Troester and Oklahoma Attorney General Mike Hunter.
"Protecting the health care system from fraud is critical to the stability and viability of the Medicare and Medicaid programs," said Mr. Troester. "We are proud to have an active partnership with Attorney General Mike Hunter and his office where we work collaboratively together to fight health care fraud."
"The ability to combine state and federal resources is one of our best assets when fighting fraud and corruption," Attorney General Hunter said. "I appreciate Mr. Troester and his team for continuing to collaborate with us in cracking down on healthcare fraud in the state and for helping us hold perpetrators accountable for these types of crimes. We must do everything we can to protect the Medicaid system, which serves Oklahomans in need."
According to an indictment filed on March 5 and unsealed on March 29, Terry was a licensed pharmacist who began operating Bratton Drug at 109 S. Oklahoma in Mangum in August 2015. Both the Oklahoma Health Care Authority—which administers Medicaid under the name SoonerCare—and Medicare reimbursed Bratton Drug for prescriptions and pharmaceutical products it dispensed.
The indictment alleges that from August 2015 to September 2018, Terry submitted false claims to SoonerCare and Medicare Part D for drugs that had not actually been prescribed or ever dispensed to patients. These false claims are alleged to have caused Terry to receive $338,481.81 from SoonerCare and $753,334.13 through the Medicare Part D program, for a total of $1,091,815.94 in fraudulent proceeds.
Terry appeared for his arraignment on March 29 before United States Magistrate Judge Bernard M. Jones. He was released pending trial, which is scheduled to start on May 14, 2019.
If convicted, Terry faces up to ten years in prison on each count, in addition to a fine of up to $250,000. He would also be subject to up to three years of supervised release after imprisonment and would be required to pay restitution to Oklahoma and the federal government for losses sustained by SoonerCare and Medicare. Finally, the indictment seeks forfeiture of proceeds of these crimes, including real property at 321 S. Robinson in Mangum, a tract of land in Greer County, and a 2016 Dodge Challenger.
To maximize recovery of fraud proceeds, the United States also moved for and obtained a temporary restraining order that prevents Terry from transferring assets and spending money out of as many as eight financial accounts he controls. According to court filings unsealed today, Terry commingled fraud proceeds in personal and business accounts and has been rapidly selling, transferring, dissipating, and concealing assets since the Oklahoma Attorney General’s Office’s Medicaid Fraud Control Unit executed a search warrant in October 2018. Part of that concealment allegedly involves transferring Bratton Drug’s inventory and business to Granite Drug in Granite, Oklahoma, which he also controls.
These charges are the result of an investigation by the Oklahoma Attorney General’s Office’s Medicaid Fraud Control Unit and the U.S. Department of Health and Human Services—Office of Inspector General, including its Office of Audit Services. Assistant Oklahoma Attorney General Lory Dewey, who also serves as a Special Assistant U.S. Attorney, and Assistant U.S. Attorney Amanda Green are prosecuting the case. Assistant U.S. Attorneys Amanda Johnson and Ron Gallegos of the U.S. Attorney’s Office’s Civil Division are handling the request for a temporary restraining order.
The public is reminded that these charges are merely allegations and that Terry is presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to public filings for further information.
Indian National Sentenced to More Than Eight Years for Call Center ScamRead the Press Release
Tampa, FL – U.S. District Judge Virginia Hernandez Covington has sentenced Nishitkumar Patel (31, Tampa) to eight years and nine months in federal prison for conspiracy to commit wire fraud and aggravated identity theft, relating to his participation in an India-based call center scam. As part of his sentence, the court also entered a money judgment of $200,000, and ordered Patel to forfeit cash and a 2015 Land Rover that was seized in October 2018.
Patel pleaded guilty on January 9, 2019.
According to court documents, from 2014 through at least 2016, Patel conspired with U.S.-based coconspirators and India-based call centers to extort money from U.S. residents by impersonating IRS officers and misleading victims to believe that they owed money to the IRS and would be arrested and fined if they did not pay their alleged back taxes immediately. The conspirators collected the fraud proceeds by (1) withdrawing cash from prepaid cards purchased and funded by victims; (2) hiring other conspirators (runners) to retrieve money wired by the victims to those runners; and/or (3) hiring runners to open bank accounts into which victims deposited fraud proceeds. The defendants collected the proceeds by providing the runners with the victims’ names, locations, and amounts paid. The runners were directed to retrieve the fraud proceeds in cash and turn the funds over to the defendants, often less a payment to the runner for opening the account or conducting the transaction.
Four others previously pleaded guilty for their roles in the scheme. On March 25, 2019, Alejandro Juarez was sentenced to 15 months in federal prison. Hemalkumar Shah, Sharvil Patel, and Brenda Dozier are currently awaiting sentencing.
“As a proud IRS Special Agent of 20 years, this fraud infuriates me,” stated Special Agent in Charge Mary Hammond of IRS Criminal Investigations Tampa Field Office. “We here at IRS CI recognize the heartache and concern these crooks cause innocent people. This is why we are eager to team up with our law enforcement partners to track down these impersonators in whatever corner of the globe they may be hiding in.”
“This terrible scam took advantage of people who wanted to comply with what they thought were proper authorities,” said FDLE’s Tampa Special Agent in Charge Mark Brutnell. “Thank goodness, investigators from several agencies were able to put an end to it and those responsible will no longer be able to mislead innocent people.”
“Over the last several years, American taxpayers have been subjected to unprecedented attempts to fraudulently obtain money by individuals impersonating Internal Revenue Service employees,” said J. Russell George, Treasury Inspector General for Tax Administration. “Victimizing taxpayers by impersonating IRS employees is a serious crime,” George continued. “TIGTA and our law enforcement partners will continue working to ensure that those involved in the impersonation of IRS employees are prosecuted to the fullest extent of the law. This significant sentencing should serve notice to those who engage in this type of criminal activity that they will be held accountable.”
This case was investigated by the Treasury Inspector General for Tax Administration (TIGTA), the Internal Revenue Service – Criminal Investigation, the Florida Department of Law Enforcement, the Tampa Police Department, and the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Rachel K. Jones.
Greenville Man Sentenced to 10 Years in Federal Prison in Firearms CaseRead the Press Release
RALEIGH - United States Attorney Robert J. Higdon, Jr. announced that today, JUSTIN O’NEAL BARNES, 30, of Greenville was sentenced in United States District Court. The charges stem from the recovery of a firearm in a liquor store in Greenville on October 11, 2017.
U.S. District Judge James C. Dever, III sentenced BARNES to 120 months in prison following his December 18, 2018 conviction by a jury for being a felon in possession of a firearm. On October 11, 2017, Greenville Police Department Officers began searching for BARNES based upon his potential involvement in another incident. A Greenville detective observed BARNES’ vehicle and followed it to the ABC store located at 2305 South Memorial Drive in Greenville, where he observed BARNES enter the store. The detective called for assistance and other officers responded to the scene. In the store, the clerks refused to sell any alcohol to BARNES because he appeared to be under the influence of alcohol. One of the clerks saw the officers outside and mentioned that to BARNES. BARNES then quickly walked to the side of the counter and placed an object in an open box. He then left the store and was detained. The clerks then observed a handgun in the box. Officers recovered a loaded Ruger .45 caliber pistol from the box.
BARNES has prior convictions for possession with intent to sell and deliver cocaine, common law robbery, and felon in possession of a firearm.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Since 2017 the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
That effort has been implemented through the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
Investigation of this case was conducted by the Greenville Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Pitt County Alcoholic Beverage Control Board. Assistant United States Attorney John Bennett is prosecuting the case.
Former South Carolina Resident Pleads Guilty to Charity Fraud Scheme Targeting Marine Corps FamiliesRead the Press Release
Charleston, South Carolina ---- United States Attorney Sherri A. Lydon announced today that John Shannon Simpson, age 43, of Lee County, Florida, has entered a guilty plea in federal court to Wire Fraud. United States District Judge David C. Norton of Charleston accepted the guilty plea and will impose sentence after he has received and reviewed a presentence report prepared by the United States Probation Office.
Evidence presented to the court established that in May 2014, Simpson founded a charitable organization entitled “Marines and Mickey” and served as the President. The purpose of the charity was to provide funds to selected United States Marines Corps (USMC) service members and their families to defray their costs of visiting the Walt Disney Resorts. The charity was also supposed to provide funds to the families of newly graduated Marines to defray the families’ costs of attending USMC boot camp graduations, including some held at Parris Island, South Carolina, and San Diego, California.
The charity claimed in its promotions and requests for money that 100% of the donations went directly to Marines and their families through the charity’s programs. The charity actively solicited donations on and near the USMC base in Parris Island, South Carolina, and elsewhere. The remainder of monies raised by the charity were a combination of private and corporate donations to the charity, including by USMC recruits and recent boot camp graduates.
While acting as the charity’s President and in support of fundraising for the charity, Simpson falsely represented himself as a retired career Marine with as much as 20 years of service, a retired Master Sergeant, a former Drill Instructor, and a Recon Marine.
In fact, Simpson spent less than five years in the Marine Corps. He entered active duty on June 28, 1993. He was absent without leave (AWOL) from June 10, 1996, to June 19, 1997. The highest rank he achieved prior to going AWOL was Lance Corporal/E-3, and his operational specialty was Basic Disbursing Clerk. Simpson was found guilty at a Special Court Martial for violation of Article 86 (Absence without leave) of the Uniform Code of Military Justice, was reduced in rank to Private/E-1, and was given a Bad-Conduct Discharge, which was effective on May 5, 1998.
By misleading donors and volunteers about his military background, Simpson was able to add credibility to his solicitations for money.
The charity was in operation from May 2014 through 2016, and it received approximately $481,000 in donations during that time period. However, despite Simpson’s claims that 100% of the donations would go to Marines and their families through the charity’s programs, only about $90,000—or about 19% of the donations—were used for charitable purposes. Simpson diverted the remainder of the monies in the charitable accounts, approximately $391,000, for his personal use and enrichment.
Additionally, during 2015 and 2016, Simpson made unauthorized withdrawals from the bank accounts of at least seven active-duty Marines who had recently graduated from boot camp. Simpson convinced them to allow him to make recurring withdrawals from their accounts in nominal amounts to support the charity. Instead, he used their debit card numbers to make unauthorized withdrawals from their accounts in a combined total amount of more than $5,000.
Simpson faces a maximum penalty of 20 years in federal prison and/or a fine of $250,000.
The case was investigated by agents of the Federal Bureau of Investigation and the Naval Criminal Investigative Service. Assistant United States Attorney Dean H. Secor of the Charleston is prosecuting the case.
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Erie County Man Pleads Guilty to Child Exploitation ChargesRead the Press Release
Erie, Pa. - A former resident of Girard, Pennsylvania, pleaded guilty in federal court to charges of violating federal laws relating to the sexual exploitation of children, United States Attorney Scott W. Brady announced today.
Michael Robert Heinrich, 68, pleaded guilty to three counts before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that in January 2017 Heinrich took sexually explicit photos of a minor who was four years of age at the time. On February 14, 2017, Heinrich again took sexually explicit photos of that same four-year-old minor and also took a sexually explicit photo of a three-year-old minor. An examination of Heinrich’s computers and cell phone also revealed the presence of numerous other images depicting prepubescent minors engaged in sexually explicit conduct. As part of his plea, Heinrich agreed to a sentence of fifteen (15) years in jail and lifetime supervised release.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Judge Cercone scheduled sentencing for August 5, 2019 at 2:15 p.m. The law provides for a total sentence of 90 years in prison, a fine of $1,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Heinrich on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation that led to the prosecution of Heinrich.
Dominican Man Pleads Guilty to Participating in Heroin Distribution ConspiracyRead the Press Release
CONCORD - Geraldo De La Cruz Cabral Pena, 43, of the Dominican Republic, pleaded guilty in federal court on Friday to conspiring to distribute heroin, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, from 2013 to 2016, Cabral Pena facilitated an international heroin distribution conspiracy with connections to Colombia, Guatemala, and Mexico. Multi-kilogram loads of heroin were smuggled into the United States from Mexico, and Cabral Pena then facilitated deliveries of the heroin to numerous regional drug trafficking organizations along a route from Texas to Massachusetts. Heroin arriving in Lawrence, Massachusetts would then be distributed by a local drug trafficking organization to sub-distributors in New Hampshire and the rest of northern New England. Cabral Pena also collected payment from the regional drug trafficking organizations through multiple means including bulk cash smuggling. Pena was arrested by Dominican Republic authorities in March 2018 at the request of the United States government, and he was extradited to the United States to face these charges on August 16, 2018.
Cabral Pena is scheduled to be sentenced on June 22, 2019.
“International drug trafficking organizations have brought large quantities of heroin and other drugs into New England, causing untold damage to the citizens of New Hampshire,” said U.S. Attorney Murray. “This case is an example of the law enforcement community’s effort to target the larger distribution networks that have supplied heroin to drug traffickers in the Granite State. We will not be deterred by state or international borders in our efforts to hold drug traffickers responsible for their crimes.”
The case was investigated by the Drug Enforcement Administration; Homeland Security Investigations; the Massachusetts State Police; the Haverhill Police Department; the United States Marshals Service; the New Hampshire State Police; the Manchester Police Department; the Lawrence Police Department; the Lowell Police Department, the Methuen Police Department, and the Hillsborough County Drug Task Force. The case is being prosecuted by Assistant U.S. Attorney Jarad E. Hodes.
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Department of Justice to Hold Roundtable on the Antitrust Criminal Penalty Enhancement & Reform ActRead the Press Release
On April 11, 2019, the Department of Justice Antitrust Division will hold a public roundtable to discuss the Antitrust Criminal Penalty Enhancement & Reform Act (ACPERA). ACPERA reduces the civil damages exposure of a company granted leniency under the Antitrust Division’s Leniency Policy if the company provides civil plaintiffs with timely, “satisfactory cooperation.” ACPERA, Section 213(b) & (c), 15 U.S.C. § 1 notes. The Antitrust Division seeks to hear the views of interested stakeholders regarding ACPERA and its impact on the Division’s criminal enforcement efforts.
The ACPERA Roundtable will provide a public forum for the Antitrust Division to engage with the antitrust community and gain insight from judges, attorneys, economists, academics, the business community, and other interested stakeholders on ACPERA. The format of the Roundtable will be a series of panel discussions with featured speakers.
“The Division’s Leniency Policy is critical to the success of our criminal enforcement program. I am proud to have been at the Division when ACPERA was enacted in 2004 and the Antitrust Division looks forward to examining how ACPERA is operating today,” said Assistant Attorney General Makan Delrahim. “The Division values input from those who have experience with ACPERA and other stakeholders who have considered ACPERA’s effects on the self-disclosure of wrongdoing.”
The roundtable will take place from 1-5 p.m., on April 11, 2019, in the Anne K. Bingaman Auditorium & Lecture Hall on the lower level of the Liberty Square Building, 450 Fifth Street, NW, Washington, DC 20530.
In addition, the Antitrust Division is accepting written comments on the efficacy of ACPERA. Interested parties may submit public comments to [email protected] until May 31, 2019. Submitted comments and any submissions from roundtable panelists will be made publicly available on the Antitrust Division’s website.
To register for the event, please email [email protected] with your name, organization, and contact information.
For more information, please see the ACPERA Roundtable webpage or send an email to [email protected].
Reasonable accommodations for people with disabilities are available upon request. Requests should be submitted via email to Jeremy Edwards in the Office of Public Affairs at [email protected]. Requests should be made in advance. Please include a detailed description of the accommodation needed and provide contact information.
Council Bluffs Woman, a Distributor for Mexico-based Drug Trafficking Organization, Sentenced to Imprisonment for Eleven YearsRead the Press Release
United States Attorney Joe Kelly announced that on March 28, 2019, United States District Judge Robert F. Rossiter, Jr., sentenced Ralynn Christine Francisco to a term of imprisonment of 132 months, to be served in the U.S. Bureau of Prisons. Francisco, age 32, of Council Bluffs, Iowa, pleaded guilty to conspiracy to distribute and possess with intent to distribute methamphetamine, and conspiracy to commit money laundering.
In the summer of 2017, Francisco obtained multi-pound quantities of methamphetamine from codefendant Baltazar Quintero-Rodriguez, a member of a Mexico-based drug trafficking organization, and redistributed it to customers in the local area. Mexican sources supplied Quintero-Rodriguez with the methamphetamine and directed its distribution to others, including Francisco. In addition, investigators determined that Francisco wired drug proceeds totaling $13,634 on at least 15 occasions to recipients in Mexico in furtherance of a money laundering conspiracy.
The case was primarily investigated by the Omaha Field Division of the Drug Enforcement Administration and the Internal Revenue Service, Criminal Investigations.
Convicted Felon Sentenced to 10 Years in Prison on Firearm ChargeRead the Press Release
PROVIDENCE – A Providence man previously convicted and imprisoned on firearm charges was sentenced in U.S. District Court in Providence today to 10 years in federal prison for possessing a firearm in furtherance of drug trafficking crimes.
Joshua R. Souza, 37, of Providence, was most recently arrested by Providence Police detectives on April 27, 2018, following an investigation into Souza’s drug trafficking activities.
According to information provided to the Court, following controlled purchases of cocaine from Souza, Providence Police detectives executed a court-authorized search warrant at Souza’s residence. Detectives seized loose and packaged cocaine from Souza’s person. From his residence they seized 11.9 grams of cocaine and two firearms: a 12 gauge sawed-off shotgun with an obliterated serial number and a stolen 9mm semi-automatic handgun.
Souza, arrested and detained on Rhode Island state court charges since April 27, 2018, pleaded guilty in federal court on January 14, 2019, to possession of a firearm in furtherance of a drug trafficking crime.
At sentencing today, U.S. District Court Judge John J. McConnell sentenced Souza to 10 years in federal prison to be followed by 3 years supervised release.
Souza’s sentence is announced by United States Attorney Aaron L. Weisman, Providence Police Chief Colonel Hugh T. Clements, Jr., and Special Agent in Charge of the Boston Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Kelly D. Brady.
According to court records, Souza was previously convicted in Rhode Island state court on firearm, larceny, and breaking and entering charges.
The case was prosecuted by Assistant U.S. Attorney Ly T. Chin.
The matter was investigated by Providence Police with the assistance of ATF and the ATF Task Force.
The ATF Task Force is comprised of law enforcement agents and officers from ATF, the Providence and Police Pawtucket Police Departments, Rhode Island State Police, and the Rhode Island Department of Corrections.
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Controller Pleads Guilty to Wire Fraud, Tax ChargeRead the Press Release
PROVIDENCE – A controller employed by a Providence based high-technology company that specializes in the optimization of electro-magnetic and automated process equipment pleaded guilty today in federal court to charges that she executed a scheme to defraud the company of more than $550,000 in reimbursements for business related expenses she was not entitled to, and that she failed to pay taxes to the IRS for the funds she fraudulently received.
Appearing before U.S. District Court Chief Judge William E. Smith, Jill Martinho, 43, of Swansea, Mass., pleaded guilty to wire fraud and willfully making a false tax return, announced United States Attorney Aaron L. Weisman, Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta, Special Agent in Charge of Internal Revenue Service Criminal Investigation Kristina O'Connell, and Special Agent in Charge of the United States Secret Service Stephen Marks.
According to information presented to the Court, from May 2015 through February 2018, Martinho was authorized to purchase supplies necessary for her company with the use of personal credit cards. Although Martinho was entitled to reimbursements from the company totaling approximately $459,224, based on her fraudulent claims, including the use of fraudulently created card statements, she received approximately $1,017,295 from the company, causing the company a loss of approximately $557,974.
Additionally, Martinho did not report the fraudulently obtained income to the IRS nor did she pay taxes due the IRS.
Martinho had been employed by the company since 2005.
Martinho is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on July 19, 2019. Wire fraud is punishable by statutory penalties of up to 20 years imprisonment; a fine of $250,000 or twice the pecuniary gain or loss from the offense, whichever is greater; and a term of supervised release of 5 years. Willfully making a false tax return is punishable by statutory penalties of up to 3 years imprisonment; a fine of $100,000; and a term of supervised release of 3 years.
The case was prosecuted by Assistant U.S. Attorney Lee H. Vilker.
The matter was investigated by the FBI, Internal Revenue Service Criminal Investigation, and the United States Secret Service.
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City Councilman Pleads Guilty to Wire Fraud and Filing A False Tax ReturnRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Adam C. McFadden pleaded guilty to wire fraud and filing a false tax return before U.S. District Judge Elizabeth A. Wolford. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that McFadden was a member of the Rochester City Council, while co-defendant George H. Moses is the former Chairman of the Board of Commissioners of the Rochester Housing Authority (RHA), which provides housing opportunities and services for the Rochester community and a board member of the Rochester Housing Charities (RHC), an entity that was formed and created to advance the purposes of RHA.
Prior to May 12, 2015, McFadden contacted Capital Connection Partners LLC (CCP), an alleged consulting firm in Washington D.C., to discuss RHC hiring CCP to provide RHC with various services. McFadden advised CCP that he would provide most of the services required by RHC as a subcontractor and that he wanted CCP to act merely as a pass through, meaning, he wanted CCP to pay to him most of the funds CCP received from any future contract with Rochester Housing Charities. McFadden discussed this arrangement with co-defendant George Moses.
On May 15, 2015, McFadden emailed CCP a draft of the contract he wanted CCP to enter with RHC along with a draft of the pass-through agreement he wanted to enter into with CCP. On May 28, 2015, McFadden emailed these drafts to George Moses as well.
On June 19, 2015, McFadden created minutes of an RHC board meeting held on May 12, 2015. The minutes falsely stated: that RHC had contacted three vendors by telephone; that a Request for Qualifications was sent to the three vendors; that the three vendors provided bid proposals containing amounts; and that RHC selected CCP as the winning bidder. On July 7, 2015, RHC entered into a one-year $87,500.00 contract with CCP.
On July 8, 2015, the defendant, on behalf of his company, Caesar Development LLC, executed a contract with CCP entitled the Pass Through Funding and Services Agreement, which provided that CCP would pass through 75% of the funds it received from RHC to Caesar Development LLC.
On August 3, 2015, the RHA, on behalf of RHC, wire transferred a first installment payment of $43,750.00 from Rochester to CCP in Washington, D.C. On August 8, 2015, CCP paid $32,812.50 to Caesar Development LLC in Rochester, which represented 75% of the funds CCP received under the terms of its contract with RHC.
On December 18, 2015, McFadden prepared and emailed to CCP inserts which were to be placed on a revised CCP invoice that was to be sent to the RHC. Those inserts falsely alleged that CCP had performed certain services under the contract. Specifically, the inserts falsely alleged or grossly exaggerated that CCP had, among other things, provided the following services: prepared and submitted multiple grants for local funding; researched laundry business development; researched summer and after-school program development for school aged children; provided administrative support to RHC for nine months; and created a partnership with The Roberts Companies to manage cell lease buyout negotiations.
A revised invoice containing the inserts was sent to RHC, and as a result, RHC, on December 24, 2015, transferred the final installment payment totaling $43,750.00 from Rochester to CCP in Washington, D.C. On December 26, 2015, CCP wire transferred $32,812.50 from Washington, D.C. to Caesar Development LLC, which represented 75% of the funds CCP received under the terms of the contract between RHC and CCP.
In addition for the tax years 2015 through 2017, McFadden provided false information on his personal tax returns. McFadden reported false deductions, including personal expenses, on his Schedule C, which falsely reduced his taxable income. For example, McFadden reported rent expense as deductions on each return when in fact he had not paid rent. The reduction in the defendant’s taxable income resulted in the approximate tax loss of $46,865.
“Dishonest and self-indulgent people have no place in elected office at any level of government,” stated U.S. Attorney Kennedy. “Individuals like Mr. McFadden seem to forget that ‘public service’ is not synonymous with ‘public-money self-service.’ This Office will continue to seek out and to bring to justice those public officials who elevate their own personal financial interests above the interests of the public that they serve.”
“Today's plea doesn't mean our work is done, the FBI and our partners remain committed to routing out public corruption in Rochester and throughout the Western New York community,” said Supervisory Special Agent Jeremy Bell. “We ask public officials everywhere to think twice before abusing the community's trust.”
HUD OIG Special Agent-in-Charge Geary stated, “At such a critical time for the Department of Housing and Urban Development, with programs that are vital to the well-being of so many in our communities, it is critical that those entrusted to public service are completely dedicated to those in need. The HUD Office of Inspector General is committed to partnering with Federal prosecutors and fellow law enforcement to aggressively pursue those engaged in activities that harm HUD’s Public Housing programs.”
“Today’s plea illustrates IRS Criminal Investigation’s commitment to holding public officials accountable for undermining the tax laws of the United States and violating public trust”, said Acting Special Agent-in-Charge Jonathan D. Larsen. “The deliberate failure of Mr. McFadden to report and pay taxes on income through the use of fraudulent deductions is a serious matter and cannot be tolerated by the IRS or the public he has a duty to serve.”
Charges remain pending against co-defendant George H. Moses. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent-in-Charge Brad Geary; and the Internal Revenue Service, Criminal Investigations Division, under the direction of Jonathan D. Larsen, Acting Special Agent-in-Charge, New York Field Office.
Sentencing is scheduled for June 27, 2019, at 3:00 p.m. before Judge Wolford.
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Chevy Chase Man Who Secretly Videotaped Children in His Home Sentenced to 20 Years in Federal Prison for Production and Possession of Child PornographyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced Jonathan Mark Oldale, age 55, of Chevy Chase, Maryland, today to 20 years in federal prison, followed by lifetime supervised release, on charges of production and possession of child pornography, arising from Oldale secretly filming children using hidden cameras in the bathrooms of his home. As a result of his conviction, Oldale must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA). In addition, Oldale must pay a $400,000 money judgment in lieu of forfeiture of Oldale’s interest in his residence, which Oldale used to facilitate his crimes.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Jennifer L. Moore of the Federal Bureau of Investigation, Baltimore Field Office; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
“Jonathan Oldale invited children into his home in order to surreptitiously photograph them while they were changing clothes or using the bathroom, and attempted to do the same thing in public facilities that catered to children,” said U.S. Attorney Robert K. Hur. “This sentence sends a clear message that we will bring to justice those who would victimize innocent children.”
According to Oldale’s plea agreement, on May 5, 2017, the Montgomery County Police Department received a complaint from an employee at a children’s gymnastics facility in Silver Spring that Oldale had placed a backpack containing a camera disguised to look like an automobile key fob in a bathroom at the facility. The employee also told officers about a prior incident in which Oldale had left a backpack in the same bathroom. A search of Oldale’s residence on May 9, 2017, recovered electronic media, including three laptop computers. A subsequent forensic review of the computers revealed that two of the computers had installations of browsers used to access the “dark web,” and some of the files accessed had titles consistent with child pornography. The dark web is the part of the World Wide Web that requires specific software, configurations, or authorization to access, allowing users and website operators to remain anonymous. One of the laptops had previously connected to a dark web site used to exchange child pornography. The third computer contained image and video files of children with exposed genitalia, including in public bathrooms.
On July 5, 2017, Montgomery County Police officers executed a second search warrant at Oldale’s residence and seized among other items, three “spy cameras,” five MicroSD cards (small memory cards used in cameras and phones to store information), and five USB drives. All of the removable media contained videos created using surreptitious “spy” cameras that had been placed by Oldale in bathrooms in his residence. Another MicroSD card contained the titles of encrypted files that had been erased from the card, and the titles were indicative of child pornography.
Videos recorded in the bathrooms show that the cameras were placed at waist height or lower, for example under the sink and in a basket in the shower, and that multiple cameras were placed in a bathroom. The videos show that Oldale would enter the bathroom to adjust the cameras just before children entered the bathrooms and just after the children left. Between May and July 2017, Oldale recorded more than 1,000 videos using the hidden cameras in his bathrooms. The videos depict minor children changing into and out of bathing suits, taking showers, and using the toilet.
Children were invited to “splash parties” at Oldale’s residence in June and July 2017, including by e-mailed invitations sent to their parents. Children would become covered with grass while playing on an inflatable structure in the back yard. Oldale encouraged the children to change clothes or take showers before they went home. Of the approximately 79 children who appear in the videos taken in the bathroom, approximately 52 are depicted nude at some point in the videos.
Forensic analysis of the USB drives revealed that Oldale stored videos in a nested file folder structure. Subfolders were named for the month and within those folders were additional subfolders with event names, like party or camp. On two of the USB drives there were subfolders that included lists of children’s names followed by a description of the swimsuit worn by the child. In all, there were nine subfolders with names indicative of events and containing videos of children in the bathrooms at Oldale’s residence.
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 Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur commended the FBI, the Montgomery County Police Department, and the Montgomery County State’s Attorney’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Joseph R. Baldwin and Timothy F. Hagan, Jr., who are prosecuting the federal case.
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Buffalo Man Sentenced on Gun ChargesRead 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 Erick Pizarro, 37, of Buffalo, NY, who was convicted of possession of firearms in furtherance of a drug trafficking crime and being a felon in possession of a firearm, was sentenced to serve 84 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Patricia Astorga, who handled the case, stated that on June 9, 2015, the Buffalo and Lackawanna Police Departments a search warrant at the defendant’s Schuele Avenue residence. Officers recovered bags of heroin, a digital scale with heroin residue, a sifter with heroin residue, a spoon with heroin residue, a bottle of cutting agent, ammunition, and a loaded firearm.
On April 9, 2003, Pizarro was convicted of Attempted Robbery in the Second Degree in Erie County Court and sentenced to 30 months in prison. As a result, he is legally prohibited from possessing a firearm.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Gary Loeffert, Special Agent-in-Charge, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, the Buffalo Police Department, under the direction of Commissioner Byron Lockwood, and the Lackawanna Police Department, under the direction of Chief James Michel.Beltsville Man Sentenced to 87 Months in Federal Prison for Stealing over $4.2 Million in a Business E-Mail Compromise SchemeRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Nkeng Amin, a/k/a “Rapone,” a/k/a “Arnold,” age 31, of Beltsville, Maryland, today to 87 months in prison, followed by three years of supervised release, for a large-scale business e-mail compromise scheme during which Amin and his co-conspirators obtained over $4.2 million from at least 13 individual and business victims. Judge Grimm also ordered Amin to forfeit and to pay restitution in the amount of $1,021,474.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Cardell T. Morant of Homeland Security Investigations; and Special Agent in Charge Matthew S. Miller of the United States Secret Service, Washington Field Office.
According to his plea agreement, and to evidence presented at today’s sentencing hearing, between February 2016 and July 2017, Amin and his co-conspirators gained access to e-mail accounts associated with the victims. Then, posing as an entity with whom the victims were associated, they sent false wiring instructions to the victims, who wired millions of dollars into “drop accounts” set up by Amin and his co-defendants, in the names of fictitious businesses they registered. Drop accounts were bank accounts opened or controlled by Amin and his co-conspirators that were used to receive fraudulently obtained money from victims. Amin and others then disbursed the money in the drop accounts that were received from the victims by, among other things: electronically transferring money to other accounts; transferring funds to other accounts at the same bank; withdrawing cash; obtaining cashier’s checks; and writing checks to other individuals or entities.
Amin worked hand-in-hand with co-conspirator Aldrin Fomukong to perpetrate the fraud in Maryland. Amin also independently corresponded with the leaders of the fraud scheme overseas and recruited and managed his own co-conspirators, including co-defendant Yanick Eyong, to open bank accounts to receive victim funds and withdraw the victim funds from the fictitious bank accounts before the fraud was detected.
Over the course of the conspiracy, Amin, Fomukong, and their co-conspirators obtained over $4.2 million and attempted to steal over $10.9 million from at least 13 victims.
The following co-conspirators all pleaded guilty to their roles in the scheme.
- Aldrin Fon Fomukong, a/k/a “Albanky,” a/k/a “A.L.,” age 24, of Greenbelt, Maryland;
- Carlson Cho, a/k/a “Uncle Tiga2,” age 23, of Braintree, Massachusetts;
- Izou Ere Digifa, a/k/a “Lzuo Digifa,” a/k/a “Mimi VA,” age 22, of Lynchburg, Virginia;
- Yanick Eyong, age 26, of Bowie, Maryland; and
- Ishmail Ganda, a/k/a “Banker TD,” age 31, of College Park, Maryland.
Fomukong and Digifa remain detained pending sentencing. Judge Grimm sentenced Eyong to 57 months in prison; sentenced Cho to 48 months in prison; and sentenced Ganda to 90 days in prison, to be served during his first 18 months of supervised release.
United States Attorney Robert K. Hur praised Homeland Security Investigations and the United States Secret Service for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Kelly O’Connell Hayes, who prosecute the case.
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Asbury Park, New Jersey, Man Sentenced to 11 Years in Prison for Distribution of Cocaine Base and Violating Federal Supervised ReleaseRead the Press Release
TRENTON, N.J. – An Asbury Park, New Jersey, man was sentenced today to 11 years in prison on charges of drug distribution and violation of supervised release, U.S. Attorney Craig Carpenito announced.
Sean Lambert, a/k/a “Pretty Tone,” 48, was sentenced to 120 months in prison for distributing cocaine base, commonly known as “crack,” from a residential building in Asbury Park. He was also sentenced to an additional 12 months in prison – to be served following his completion of a 120-month prison term – for distributing the crack while he was serving a term of federal supervised release. At the time of his arrest, Lambert was on supervised release after completing a 120-month sentence for illegally possessing a firearm.
Lambert pleaded guilty before U.S. District Judge Michael A. Shipp to an indictment charging him with two counts of distributing cocaine base and entered a guilty plea admitting to having violated his court-ordered terms of supervised release. Judge Shipp imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
On two occasions – Feb. 28, 2018, and March 9, 2018, Lambert sold cocaine base out of an apartment within a multi-family building in Asbury Park. During the second sale, Lambert sold over 28 grams of cocaine base.
When he was arrested, Lambert was on federal supervised release following a 2008 conviction – also in federal court in Trenton – for being a felon in possession of a firearm. As such, he was required to not commit another federal, state, or local crime during his period of supervision. Lambert admitted that, by selling cocaine base, he violated this condition.
Due to his having a prior first-degree drug distribution conviction in New Jersey, an enhanced penalty information was filed, increasing the mandatory minimum penalty on the drug distribution charge to 10 years in prison.
U.S. Attorney Carpenito credited special agents of the Drug Enforcement Administration’s New Jersey Division, under the direction of Special Agent in Charge Susan A. Gibson in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the Health Care and Government Fraud Unit of the U.S. Attorney’s Office in Newark.
Ames Man Sentenced to 30 Years in Prison for Child Exploitation and Child Pornography ChargesRead the Press Release
DES MOINES, Iowa—On March 29, 2019, Tyler Gene Harris, age 28, of Ames, appeared before United States District Court Judge Rebecca Goodgame Ebinger and was sentenced to 360 months in prison for charges of sexual exploitation of a child, distribution of child pornography, and possession of child pornography. Judge Ebinger ordered 15 years of supervised release to follow his prison term. Harris pleaded guilty in November 2018 to six counts of sexual exploitation of a child, in violation of Title 18, United States Code, Section 2251(a); one count of distribution of child pornography, in violation of Title 18, United States Code, Section 2252A(a)(2); and two counts of possession of child pornography, in violation of Title 18, United States Code, Section 2252(a)(5)(B).
According to plea documents, Harris admitted between December 2016 and April 2018, he knowingly persuaded, induced, enticed, or coerced victims to engage in sexually explicit conduct with the purpose of producing visual depictions of the victims engaging in sexually explicit conduct. Harris also admitted to distributing visual depictions of prepubescent minors engaging in sexually explicit conduct. Harris was ordered to pay $900 to the Crime Victims’ Assistance Fund.
This investigation was conducted by the Ames Police Department, Homeland Security Investigations, and Boone Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Alabama Husband and Wife Business Owners Indicted for Payroll Tax FraudRead the Press Release
BIRMINGHAM - A federal grand jury returned an indictment on Thursday charging a Crane Hill, Alabama, husband and wife with five counts of failing to pay over payroll taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Jay E. Town for the Northern District of Alabama.
According to the indictment, Walter Michael Williams and Amy Butler Williams operated Dixie Steel Erectors (DSE), a commercial construction business in Hanceville, Alabama. Walter Michael Williams, president and owner of DSE, and Amy Williams, bookkeeper and office manager of DSE, were allegedly responsible for withholding and paying over DSE’s payroll taxes. The indictment charges that during 2012 and 2013, DSE accrued payroll tax liabilities and that the Williams withheld those taxes from the pay of the business’s employees, but willfully failed to pay over the withheld amounts to the Internal Revenue Service (IRS). The indictment further alleges that, while failing to pay over payroll taxes to the IRS, Walter Michael and Amy Williams used DSE’s funds to pay for numerous personal expenses, including mortgage payments on a lake house and condominium and alimony payments.
If convicted, both Walter Michael and Amy Williams face a maximum of five years in prison for each count of failure to pay over the employment taxes. In addition, they face a period of supervised release, restitution, and monetary penalties.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Town commended special agents of IRS Criminal-Investigation, who conducted the investigation, and Tax Division Trial Attorney Allison Garnett and Assistant United States Attorney Melissa Atwood, who are prosecuting the case.
Saturday 30 March 2019
Sturgis Man Charged with Firearm CrimeRead the Press Release
United States Attorney Ron Parsons announced that a Sturgis, South Dakota, man was charged in federal district court with Possession of an Unregistered Firearm.
Kelly Vasknetz, age 47, was indicted on March 19, 2019. Vasknetz appeared before U.S. Magistrate Judge Daneta Wollmann and pleaded not guilty to the charge. The maximum penalty upon conviction is 10 years in federal prison and/or a $250,000 fine, 3 years supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Vasknetz knowingly being in possession of a double-barrel shotgun with a barrel of less than 18 inches in length that was not registered to him. The charge is merely an accusation and Vasketnz is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Sturgis Police Department. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
Vasknetz was detained pending trial. A trial date has not been set.
Rosebud Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on March 26, 2019, by U.S. District Judge Roberto A. Lange.
Garrett Alan Heck, age 23, was sentenced to 12 months and 1 day in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Heck was indicted by a federal grand jury on September 11, 2018. He pled guilty on January 23, 2019.
Heck was convicted of Aggravated Sexual Abuse in July 2012. As a result of this conviction, he is required to register as a sex offender. It is alleged that between April 27, 2018, and July 2018, Heck, a person required to register under the Sex Offender Registration and Notification Act and a sex offender by reason of conviction under Federal Law, failed to properly register as a sex offender.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Michael J. Elmore prosecuted the case.
Heck was immediately turned over to the custody of the U.S. Marshals Service.
Pierre Residents Indicted on Fentanyl ChargesRead the Press Release
United States Attorney Ron Parsons announced that three Pierre, South Dakota, individuals have been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance and Possession with Intent to Distribute a Controlled Substance.
Jacob Seibel, age 25, Christa Seibel, age 22, and Darrell Hamann, age 25, were indicted on March 12, 2019. Jacob Seibel and Christa Seibel appeared on March 18, 2019, and Hamann appeared on March 22, 2019, before U.S. Magistrate Judge Mark A. Moreno. All three pled not guilty to the Indictments.
The maximum penalty upon conviction is 20 years in prison and/or a $1,000,000 fine, at least 3 years, up to life, of supervised release, and $100 to the Federal Crime Victims Fund for each Count.
The Indictments allege that between September 1, 2018, and September 5, 2018, Jacob Seibel, Christa Seibel and Hamann knowingly and intentionally conspired with others to distribute and possess with the intent to distribute fentanyl, a Schedule II controlled substance, in South Dakota.
The charges are merely accusations and Jacob Seibel, Christa Seibel and Hamann are presumed innocent until and unless proven guilty.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force, Pierre Police Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
All three defendants were released on bond pending trial. A trial date has not been set.
Mission Woman Charged with Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, woman has been indicted by a federal grand jury for Possession with Intent to Distribute Methamphetamine.
Alicia Medicine Eagle, age 38, was indicted on March 13, 2019. She appeared before U.S. Magistrate Judge Mark A. Moreno on March 25, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $1,000,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on October 14, 2016, and October 26, 2016, Medicine Eagle possessed methamphetamine with intent to distribute it to others.
The charges are merely accusations and Medicine Eagle is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Medicine Eagle was released on bond. A trial date has not been set.
Mission Man Sentenced for BurglaryRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man convicted of Third Degree Burglary was sentenced on March 26, 2019, by U.S. District Judge Roberto A. Lange.
Preston White Feather, age 23, was sentenced to 14 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
White Feather was indicted by a federal grand jury on June 12, 2018. He pled guilty on January 23, 2019.
The conviction stemmed from an incident that occurred in the early morning hours of April 9, 2018, wherein White Feather broke into and burglarized the Todd County High School in Mission, and stole property belonging to the school, valued at over $4,000.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
White Feather was immediately turned over to the custody of the U.S. Marshals Service.
Manderson Man Sentenced for Possessing a Firearm and MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that a Manderson, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person and Possession with Intent to Distribute a Controlled Substance was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Elijah West, age 21, was sentenced on March 25, 2019, to 24 months in federal prison, to be followed by 3 years of supervised release, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund.
The conviction stems from West knowingly being in possession of a Ruger .22 caliber revolver, while unlawfully using and distributing methamphetamine in February 2018 at Pine Ridge.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime
This case was investigated by the Bureau of Indian Affairs Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorneys Benjamin Patterson and Heather Sazama prosecuted the case.
West was remanded to the custody of the U.S. Marshals Service.
Kyle Man Sentenced for Discharge of a Firearm During the Commission of a Crime of ViolenceRead the Press Release
United States Attorney Ron Parsons announced that a Kyle, South Dakota, man convicted of Discharging a Firearm During the Commission of a Crime of Violence was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Charles Kieffe, age 34, was sentenced on March 22, 2019, to 10 years in federal prison, followed by 3 years of supervised release, and ordered to pay $3,854.54 in restitution and a $100 special assessment to the Federal Crime Victims Fund.
Kieffe was indicted by a federal grand jury in May 2018. The charge related to Kieffe pursuing a vehicle on March 23, 2018, near Kyle. After getting a short distance in front of the victims’ vehicle, Kieffe stopped his vehicle causing the victims to slam on their vehicle’s brakes. Kieffe exited his vehicle and discharged a .270 caliber rifle at the victims’ vehicle, striking the windshield and the passenger’s side window. The victims quickly spun their vehicle around and sped away from Kieffe. Kieffe confessed to law enforcement that he intentionally discharged the firearm at the victims’ vehicle, thinking someone who had sold him $1,500 worth of bad drugs was inside the vehicle. One of the victims sustained a shrapnel injury to her leg and property damage to her vehicle.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bureau of Indian Affairs - Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Megan Poppen prosecuted the case.
Kieffe was immediately turned over to the custody of the U.S. Marshals Service.
Fort Thompson Man Sentenced for Domestic Assault by an Habitual OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Fort Thompson, South Dakota, man convicted of Domestic Assault by an Habitual Offender was sentenced on March 26, 2019, by U.S. District Judge Roberto A. Lange.
Michael Farmer, age 31, was sentenced to 14 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Farmer was indicted by a federal grand jury on September 11, 2018. He pled guilty on December 21, 2018.
The conviction stemmed from an incident on July 19, 2017, when Farmer, who has four prior convictions of domestic assault, had been out all night following an argument the previous day, came home and forced his intimate partner out of the residence. While removing the victim from the home, Farmer struck her on the arms and legs causing bruising.
This case was investigated by the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Farmer was immediately turned over to the custody of the U.S. Marshals Service.
Friday 29 March 2019
United States Reaches Settlement with Harrisburg Millworks Llc Regarding Compliance with ADARead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced a settlement with Harrisburg Millworks LLC, the owner of The Millworks, Harrisburg, Pennsylvania. The agreement was reached under Title III of the Americans with Disabilities Act (“ADA”).
According to United States Attorney David J. Freed, the United States Department of Justice received a complaint that The Millworks was not accessible to individuals in wheelchairs. After an investigation with the owner’s complete cooperation, the United States Attorney’s Office found architectural barriers to access and violations of the relevant ADA Standards in The Millworks.
Under the terms of the agreement, The Millworks has agreed to remove those architectural barriers in their seating areas and lavatories. Any future alteration to The Millworks must also comply with federal disability law. The Millworks further agreed to pay a civil penalty of $6,000 to the United States for this ADA violation.
“Restaurants must ensure that their construction and operation comply with all requirements of the ADA, and that they provide equal access for all people,” said U.S. Attorney David J. Freed. “The Millworks quickly and cooperatively worked to address the ADA violations discovered during our investigation, which will enable all prospective patrons to dine at its establishment.”
Federal law requires public accommodations, including restaurants, to provide individuals with disabilities equal access to facilities. The ADA authorizes the U.S. Department of Justice and the U.S. Attorney’s Office to undertake investigations and periodic reviews of covered establishments. For more information on the ADA, visit www.ADA.gov.
This case was handled by Assistant United States Attorney Michael J. Butler.
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United States Attorney’s Office Recognizes Women’s History Month by Honoring the Districts’ First Female U.S Attorney and AUSARead the Press Release
SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, in honor of #WomensHistoryMonth, recognizes the contributions of two former attorneys at the United States Attorney’s Office.
Alicia A.G. Limtiaco, born and raised in Guam, became the first female U.S. Attorney for Guam and the NMI. She served from June 21, 2010 to March 10, 2017. Ms. Limtiaco previously served as the first female Attorney General of Guam and served in that office from January 3, 2007 to June 21, 2010. She completed undergraduate studies at the University of Southern California, then earned her Juris Doctorate at UCLA School of Law. Ms. Limtiaco is a Distinguished Fellow with the Institute on Violence, Abuse and Trauma (IVAT) and an International Fellow with the Ho’omaluhia Family Violence and Sexual Assault Institute – Hawai’i Pacific, and serves as a trainer at their international summits. She is also a legal specialist on contract to the Office of the Prosecuting Attorney for Hawai’i County working in the area of domestic violence and sexual assault.
Ellen A. Lockwood was the first female Assistant U.S. Attorney in the Guam office. She was sworn in on June 8, 1987. On July 29, 1989, Ellen transferred as an AUSA to the Western District of Texas. She currently works in private practice and as an adjunct professor at St. Mary’s University School of Law in San Antonio. She is a graduate of the Georgetown University Law Center.
United States Attorney’s Office Marks Women’s History Month by Honoring the First and Post Recent Female Assistant United States Attorneys in the DistrictRead the Press Release
HARRISBURG – As we close Women’s History Month, United States Attorney David J. Freed and the United States Attorney’s Office for the Middle District of Pennsylvania honor the outstanding service and contributions of our female Assistant United States Attorneys.
Hired in 1979, Barbara Kosik Whitaker was the first female AUSA in the Middle District. The daughter of District Judge Edwin M. Kosik, Barbara graduated from Juniata College and the Dickinson School of Law. Barbara served the office faithfully until losing a hard-fought battle against breast cancer in 2011.
U.S. Attorney Freed also recognizes Sally A. Lied as our second female AUSA in the Middle District. Ms. Lied began her extensive career by serving on the Indiana staff of Robert F. Kennedy's presidential campaign in 1968. She then entered the Indiana University School of Law and obtained her JD in 1974. In 1975, Ms. Lied was the Assistant Deputy Secretary of Education for Pennsylvania, the first woman to hold that position. She was later promoted in 1978 to Deputy Attorney General. Ms. Lied joined the office in 1982, and served 20 years, retiring from federal service in 2000.
Sally A. Lied (left) and Barbara Kosik Whitaker (right) with colleagues.
As of March 2019, there are nine female AUSAs serving in the U.S. Attorney’s Office for the Middle District of Pennsylvania. In the past few years, the Middle District welcomed five new and exceptional women lawyers to the office:
- A National Association of Women Lawyers Recognition Award recipient, Tamara Haken, joined the office last Fall following her established career as an Assistant Enforcement Counsel for the Pennsylvania Gaming Control Board, a legal advisor for CURE International, Inc. and as an Adjunct Professor in the Business Law Department for Harrisburg Area Community College;
- Joanne Hoffman began her federal career almost 11 years ago in our office as a Paralegal Specialist. Ms. Hoffman attended Widener Law School’s evening degree program and was promoted in November 2018 to AUSA. Ms. Hoffman handles criminal prosecution of illegal reentry and defense of civil immigration detention cases;
- A University of Pennsylvania graduate, Alisan Martin served as an Assistant District Attorney in Philadelphia prosecuting drug crimes and violent felonies before returning to her hometown of Williamsport to serve as an AUSA in 2017;
- An alum of Rutgers University, Shana Priore began her career clerking for the Honorable Alexander H. Carver, III of the Superior Court of New Jersey. Ms. Priore then served as a Deputy Attorney General in New Jersey before joining our office in 2017;
- Jenny Roberts, a graduate of Villanova School of law, joined the office in 2016 after a 12-year career as an Assistant District Attorney in Blair and Luzerne Counties. Ms. Roberts serves as the Coordinator of the Financial Unit and the Asset Forfeiture Unit.
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United States Attorney’s Office Celebrates the Achievements of Judge Mary Anne RicheyRead the Press Release
In honor of Women’s History Month in March, the United States Attorney’s Office spotlights the achievements of Judge Mary Anne (Reimann) Richey, a true woman of firsts.
Judge Richey received her Bachelor of Laws from the University of Arizona College of Law in 1951. She paid for law school by operating a local ranch and raising thoroughbred racehorses. Judge Richey was the only woman in her graduating class, and the only woman to pass the Arizona bar examination that year. Three years later, she became the first woman Assistant United States Attorney (AUSA) for the District of Arizona.
In 1960, Judge Richey became the first woman United States Attorney for the District of Arizona. She was appointed as a judge to the Pima County Superior Court in 1964, and served as the Court’s presiding judge from 1972 to 1976. In 1976, President Gerald Ford nominated Judge Richey to a seat on the United States District Court for the District of Arizona, as the only woman to receive a nomination during the Ford Administration. Judge Richey remained on the federal bench until her death in 1983.
Judge Richey’s achievements went far beyond the law. She grew up with aspirations of taking to the sky, and joined the Women’s Airforce Services Program (WASP) in 1943 as a test pilot to honor her brother, a Navy pilot killed earlier in the war. Throughout her life, Judge Richey was deeply committed to civic engagement and a champion for underprivileged girls.
Today, there are 83 woman AUSAs in the District of Arizona, making up more than half of the District’s AUSA positions. 67% of the Office’s employees are women. Following Judge Richey, four more women have been confirmed as the United States Attorney, including former Maricopa County Superior Court Judge Linda A. Akers, former Arizona governor and United States Secretary of Homeland Security Janet Napolitano, and United States District Judge Diane J. Humetewa.
RELEASE NUMBER: 2019-041_Judge Richey
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Ukranian Man Extradited to the United States to Face Charges in International Money Laundering and Fraud SchemeRead the Press Release
WASHINGTON – South Korean authorities extradited to the United States a Ukranian man in connection with allegations that he conducted an extensive money laundering and fraud campaign that targeted dozens of victims, including a corporation based in the Western District of North Carolina.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney R. Andrew Murray of the Western District of North Carolina and Special Agent in Charge John A. Strong of the FBI’s Charlotte Field Office made the announcement.
Aleksandr Musienko, aka “Oleksandr Serhiyovych Musiyenko,” “Robert Davis,” and “Ply,” a Ukranian national, was charged in a recently unsealed indictment with one count of wire fraud, one count of bank fraud, one count of money laundering conspiracy and two counts of money laundering. Musienko had been traveling in South Korea, when, at the U.S. government’s request, South Korean officials arrested him on the charges out of the Western District of North Carolina. South Korean officials extradited Musienko to the United States on March 28. Musienko will make his initial appearance at 1:45 p.m. today before U.S. District Court Magistrate Judge David S. Cayer.
According to the indictment, Musienko is charged with engaging in an extensive international money laundering and fraud scheme targeting U.S. corporations and individuals. He is alleged to have begun the scheme in 2009 and continued it through at least 2012.
In particular, Musienko allegedly partnered with overseas cybercriminals who had hacked into, and stole funds from, online bank accounts belonging to a large number of individual and corporate victims in the United States. One victim was a business based in the Western District of North Carolina. Musienko operated a network of “money mules” throughout the United States. According to the indictment, using aliases that included “Robert Davis” and phony front companies that included “Vita Finance AG” and “Hilpert AG,” Musienko recruited money mules throughout the United States using a variety of fraudulent techniques, including by advertising bogus “employment” opportunities to work as “Financial Assistants.” He promised to pay the money mules a fee of approximately five percent for each overseas wire transfer they completed.
Once Musienko had his network of money mules in place, Musienko then offered his money mule services to his cybercriminal partners to assist them in transferring stolen funds. He directed his “money mules” to use their own bank accounts to receive and then transfer proceeds from the compromised bank accounts overseas. As alleged in the indictment, Musienko’s criminal money mule operation effectuated the theft and laundering of at least $2.8 million from 2009 to 2012.
The investigation was conducted by the FBI Charlotte Field Office. The Justice Department’s Office of International Affairs provided significant support with the defendant’s extradition and with obtaining evidence from South Korea. Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Taylor Phillips of the Western District of North Carolina are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Ukrainian Man Extradited to the United States to Face Charges in International Money Laundering and Fraud SchemeRead the Press Release
South Korean authorities extradited to the United States a Ukrainian man in connection with allegations that he conducted an extensive money laundering and fraud campaign that targeted dozens of victims, including a corporation based in the Western District of North Carolina.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney R. Andrew Murray of the Western District of North Carolina and Special Agent in Charge John A. Strong of the FBI’s Charlotte Field Office made the announcement.
Aleksandr Musienko, aka “Oleksandr Serhiyovych Musiyenko,” “Robert Davis,” and “Ply,” a Ukrainian national, was charged in a recently unsealed indictment with one count of wire fraud, one count of bank fraud, one count of money laundering conspiracy and two counts of money laundering. Musienko had been traveling in South Korea, when, at the U.S. government’s request, South Korean officials arrested him on the charges out of the Western District of North Carolina. South Korean officials extradited Musienko to the United States on March 28. Musienko will make his initial appearance at 1:45 p.m. today before U.S. District Court Magistrate Judge David S. Cayer.
According to the indictment, Musienko is charged with engaging in an extensive international money laundering and fraud scheme targeting U.S. corporations and individuals. He is alleged to have begun the scheme in 2009 and continued it through at least 2012.
In particular, Musienko allegedly partnered with overseas cybercriminals who had hacked into, and stole funds from, online bank accounts belonging to a large number of individual and corporate victims in the United States. One victim was a business based in the Western District of North Carolina. Musienko operated a network of “money mules” throughout the United States. According to the indictment, using aliases that included “Robert Davis” and phony front companies that included “Vita Finance AG” and “Hilpert AG,” Musienko recruited money mules throughout the United States using a variety of fraudulent techniques, including by advertising bogus “employment” opportunities to work as “Financial Assistants.” He promised to pay the money mules a fee of approximately five percent for each overseas wire transfer they completed.
Once Musienko had his network of money mules in place, Musienko then offered his money mule services to his cybercriminal partners to assist them in transferring stolen funds. He directed his “money mules” to use their own bank accounts to receive and then transfer proceeds from the compromised bank accounts overseas. As alleged in the indictment, Musienko’s criminal money mule operation effectuated the theft and laundering of at least $2.8 million from 2009 to 2012.
The investigation was conducted by the FBI Charlotte Field Office. The Justice Department’s Office of International Affairs provided significant support with the defendant’s extradition and with obtaining evidence from South Korea. Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Taylor Phillips of the Western District of North Carolina are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney’s Office Kicks Off 28th Annual Seminar Series on School SafetyRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon announced today that this week, the U.S. Attorney’s Office for the District of South Carolina kicked off its 28th Annual Safe Schools Seminars Series in Greer, West Columbia, and Florence. The Safe Schools Seminars bring together law enforcement and school personnel charged with protecting children—such as superintendents, administrators, counselors, school resource officers, nurses, and social workers—to discuss some of the safety issues today’s students face.
Following this week’s seminars, U.S. Attorney Lydon stated, “As we join with Walterboro in mourning the loss of a precious young life this week, we are reminded of the weight of our responsibility to ensure schools are a safe place for students to learn and grow. Through our Safe Schools partnership, we will continue working toward that goal. I am grateful to our law enforcement partners and educators across the state who work tirelessly to protect our students.”
Topic sessions during the Safe Schools Seminars include De-Escalation in the Education Environment; Behavior Threat Assessment; Vaping: How It’s Affecting Our Youth; and Don’t Get Sued: Protecting Educators, Administrators, and SROs from Liabilities.
The Safe Schools Seminars are hosted by the U.S. Attorney’s Office, the South Carolina Law Enforcement Officers Association, the South Carolina Department of Education, the Francis Marion University Police Department, the West Columbia Police Department, the Lexington Police Department, the Greer Police Department, and the North Charleston Police Department.
Upcoming Safe Schools Seminars will be in Lexington on April 16, and North Charleston on June 12.
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U.S. Attorney’s Office Commemorates Women’s History Month by Honoring First Woman to Serve as U.S. Attorney for the District of South DakotaRead the Press Release
SIOUX FALLS, SD – In observance of Women’s History Month, United States Attorney Ron Parsons is pleased to honor and highlight the first and only woman to serve as the Presidentially-appointed U.S. Attorney for the District of South Dakota, the Honorable Karen E. Schreier.
Annette Abbott AdamsThe first U.S. Attorneys were appointed in 1789 and it was not until 129 years later that the first woman became a U.S Attorney. Her name was Annette Abbott Adams. She was appointed by the court and then nominated by President Wilson in 1918 to serve as U.S. Attorney for the Northern District of California. It was not until 39 years later, in 1957, before the next woman was appointed as a U.S. Attorney, Kathleen Ruddell, who was nominated by President Eisenhower to serve in the Eastern District of Louisiana.
Karen E. SchreierIt took some time, but the District of South Dakota eventually caught up with history. In 1993, Karen E. Schreier was appointed by President Clinton and confirmed by the U.S. Senate as the 36th U.S. Attorney for the District of South Dakota. She served in that capacity for six years until 1999, when she was appointed by President Clinton and confirmed by the Senate as the first and only woman to serve as a U.S. District Judge in the District of South Dakota. Judge Schreier presided as Chief Judge of the District of South Dakota from 2006 to 2013, and continues to serve as the principal U.S. District Judge for the Southern Division.
Thanks in large part to the pathfinding accomplishments of leaders such as Judge Schreier, women now make up 56 percent (18 out of 32) of Assistant U.S. Attorneys serving in the District of South Dakota and approximately 60 percent of its total staff. The U.S. Attorney’s Office is proud to commemorate Women’s History Month and to encourage the study, observance, and celebration of the vital role of women in American history.
Two Men Convicted of 1997 Double Murder in the BronxRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York, announced that ROBERT ACOSTA and JOSE DIAZ were convicted of the December 22, 1997, murders of Alex Ventura, 25, and Aneudis Almonte, 20. The convictions follow a three-week trial before U.S. District Judge Kevin P. Castel.
U.S. Attorney Geoffrey S. Berman said: “More than two decades ago, two young men were brutally murdered in a Bronx stairwell. Although the case went cold, members of the NYPD and the FBI worked tirelessly to solve it. A unanimous jury has now held Acosta and Diaz responsible for this terrible crime.”
According to the evidence presented during the trial:
In the 1990s, ACOSTA was the leader of a large-scale drug trafficking organization that distributed hundreds of kilograms of cocaine out of several buildings in northern Manhattan. In the summer of 1997, the murder victims stole more than $200,000 in drug money from a stash apartment that belonged to ACOSTA. To retaliate, ACOSTA hired DIAZ to kill both men.
On December 22, 1997, DIAZ and a co-conspirator (“CC-1”) lured the victims to an apartment building in the Bronx, ambushed them in a stairwell, and murdered them both. CC-1 stabbed 20-year-old Almonte six times, including once in the chest. DIAZ shot Ventura, 25, in the head from point-blank range. In exchange for these murders, ACOSTA paid DIAZ $12,000.
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ACOSTA, 47, of Yonkers, New York was convicted of murder while engaged in a conspiracy to distribute five or more kilograms of cocaine (Counts One and Two), conspiracy to commit murder for hire (Count Three), and murder for hire (Counts Four and Five). DIAZ, 53, of the Bronx, New York was convicted of conspiracy to commit murder for hire (Count Three), murder for hire (Counts Four and Five), and the use of a firearm to commit murder in furtherance of a crime of violence (Count Six). ACOSTA and DIAZ each face a mandatory sentence of life in prison.
Mr. Berman praised the outstanding investigative work of the NYPD and FBI.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Laurie A. Korenbaum, Michael K. Krouse, and Nicholas W. Chiuchiolo are in charge of the prosecution.
Two Louisiana Residents Charged with Conspiring to Harbor Aliens and Tax CrimesRead the Press Release
A federal grand jury sitting in New Orleans, Louisiana, returned an indictment against two Louisiana residents, charging each with one count of conspiracy to harbor an alien, one count of conspiracy to defraud the United States, 48 counts of failure to withhold and pay over employment tax, and 12 counts of aiding and assisting in the preparation of a fraudulent tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana.
As alleged in the indictment, Imad “Eddie” Hamdan and Ziad “Z” Mousa owned and operated over 30 locations of Brothers Food Mart. Hamdan and Mousa are alleged to have hired undocumented workers to work in their stores and paid them in cash. To further conceal these undocumented workers, Hamdan and Mousa allegedly filed false employment tax returns with the Internal Revenue Service (IRS) that did not report the cash wages paid to the undocumented workers.
In addition, the indictment charges that Hamdan and Mousa paid the salaries of the managers of the Brothers Food Mart stores partially in cash. Allegedly, employment taxes were also not withheld or reported in connection with these cash wages. Finally, according to the indictment, Hamdan and Mousa issued and filed false Forms W-2 that underreported their wages. The indictment further alleges that Hamdan and Mousa aided in the filing of fraudulent tax returns for the managers of Brothers Food Mart stores.
An indictment merely alleges that crimes have been committed. The defendants are presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Hamdan and Mousa each face a statutory maximum sentence of ten years in prison for the conspiracy to harbor aliens count, five years for the conspiracy to defraud the United States count, five years for each count of willful failure to withhold and pay over employment tax, and three years for each count of aiding and assisting in the preparation of a fraudulent tax return. They also face substantial monetary penalties, supervised release, and restitution.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Strasser commended Assistant United States Attorney Greg Kennedy and Trial Attorney Lauren Castaldi of the Tax Division, who are prosecuting this case. The case was investigated by special agents of IRS-Criminal Investigation and Homeland Security Investigations.
Two Louisiana Residents Charged with Conspiring to Harbor Aliens and Tax CrimesRead the Press Release
WASHINGTON –A federal grand jury sitting in New Orleans, Louisiana, returned an indictment against two Louisiana residents, charging each with one count of conspiracy to harbor an alien, one count of conspiracy to defraud the United States, 48 counts of failure to withhold and pay over employment tax, and 12 counts of aiding and assisting in the preparation of a fraudulent tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana.
As alleged in the indictment, Imad “Eddie” Hamdan and Ziad “Z” Mousa owned and operated over 30 locations of Brothers Food Mart. Hamdan and Mousa are alleged to have hired undocumented workers to work in their stores and paid them in cash. To further conceal these undocumented workers, Hamdan and Mousa allegedly filed false employment tax returns with the Internal Revenue Service (IRS) that did not report the cash wages paid to the undocumented workers.
In addition, the indictment charges that Hamdan and Mousa paid the salaries of the managers of the Brothers Food Mart stores partially in cash. Allegedly, employment taxes were also not withheld or reported in connection with these cash wages. Finally, according to the indictment, Hamdan and Mousa issued and filed false Forms W-2 that underreported their wages. The indictment further alleges that Hamdan and Mousa aided in the filing of fraudulent tax returns for the managers of Brothers Food Mart stores.
An indictment merely alleges that crimes have been committed. The defendants are presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, Hamdan and Mousa each face a statutory maximum sentence of ten years in prison for the conspiracy to harbor aliens count, five years for the conspiracy to defraud the United States count, five years for each count of willful failure to withhold and pay over employment tax, and three years for each count of aiding and assisting in the preparation of a fraudulent tax return. They also face substantial monetary penalties, supervised release, and restitution.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Strasser commended Assistant United States Attorney Greg Kennedy and Trial Attorney Lauren Castaldi of the Tax Division, who are prosecuting this case. The case was investigated by special agents of IRS-Criminal Investigation and Homeland Security Investigations.
Two Individuals Found Guilty by A Jury for Carjacking Mother and Two Young Children at Gas Station in Broad DaylightRead the Press Release
SAN JUAN, P.R. – Yesterday, Eddie Guerrero-Narváez and Keyvan Cartagena-Suárez, were found guilty of working together to commit a carjacking against a mother and her two young children, announced United States Attorney Rosa Emilia Rodríguez-Vélez. United States Senior Judge Juan M. Pérez-Giménez presided over the trial.
On January 10, 2018, a federal grand jury returned an indictment charging Guerrero-Narváez with one-count of carjacking. After additional evidence was uncovered that placed Cartagena-Suárez at the scene of the crime, a federal grand jury returned a superseding indictment adding Cartagena-Suárez as a co-defendant.
During the 2-day trial, the government presented evidence that Guerrero-Narváez and Cartagena-Suárez worked together, in broad daylight, to carjack a BMW Sports Utility Vehicle from a mother, with her two young children in the backseat, at a Puma Gas station, located near the airport on Calle Los Angeles in Carolina, Puerto Rico. According to the testimony of the Victim, on January 3, 2018, Guerrero-Narváez came up to her as she attempted to exit her vehicle to pump gas. Guerrero-Narváez then threatened her and her children by stating that if she cooperated, they would not get hurt and gestured as if he had a weapon. Fearing for her life and the safety of her children, the Victim complied and allowed Guerrero-Narváez to take the vehicle.
Later that evening, Guerrero-Narváez was arrested in Carolina, around the corner from the BMW, with the keys to the car. Cartagena-Suárez was walking with Guerrero-Narváez at the time of his arrest. After finding Cartagena-Suárez’s fingerprints on the driver’s door handle, his driver’s license inside the car, and video surveillance showing Cartagena-Suárez and Guerrero-Narváez working together at the Puma gas station, Cartagena-Suárez was added to the Indictment. According to the testimony of an FBI Special Agent, during an interview, Cartagena-Suárez admitted to going to the gas station knowing that a carjacking would occur, being present for the carjacking, and getting into the stolen vehicle after Guerrero-Narváez took the BMW from the Victim.
The case was prosecuted by Assistant United States Attorney David T. Henek. The defendants face a maximum penalty of 15 years in prison. The sentencing hearing is scheduled for July 12, 2019 at 10:15 am.
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Two Corporate Executives Indicted in First-Ever Criminal Prosecution for Failure to Report under Consumer Product Safety ActRead the Press Release
LOS ANGELES – A federal grand jury returned an indictment yesterday against two corporate executives for their roles in a scheme involving defective and dangerous consumer products, the Department of Justice announced.
Simon Chu, 63, of Chino Hills, California, and Charley Loh, 60, of Arcadia, California, were charged with a multiple-object conspiracy to commit wire fraud, to fail to furnish information under the Consumer Product Safety Act (CPSA), and to defraud the U.S. Consumer Product Safety Commission (CPSC). In addition to the conspiracy charge, the indictment also charges both defendants with one count of wire fraud and one count of failure to furnish information under the CPSA.
According to the indictment, Simon Chu was part owner and chief administrative officer of two corporations in City of Industry, California, that imported, distributed, and sold to retailers for consumer purchase dehumidifiers that were made in China. The indictment further states that Loh was part owner and chief executive officer of the same two corporations.
The Consumer Product Safety Act requires manufacturers, importers, and distributors of consumer products to report “immediately” to the CPSC information that reasonably supports the conclusion that a product contains a defect that could create a substantial product hazard or creates an unreasonable risk of serious injury or death. This duty also applies to the individual directors, officers, and agents of those companies. The indictment alleges that as early as September 2012, Chu, Loh, and their companies received multiple reports that their Chinese dehumidifiers were defective, dangerous, and could catch fire. They also allegedly knew that they were required to report this product safety information to the CPSC immediately. Despite their knowledge of consumer complaints of dehumidifier fires and test results showing problems with the dehumidifiers, the indictment alleges that Chu and Loh failed to disclose their dehumidifiers’ defects and hazards for at least six months while they continued to sell their products to retailers for resale to consumers.
“The importation, distribution, and sale of defective consumer products have real-world consequences, including serious injury or death,” said Nicola T. Hanna, U.S. Attorney for the Central District of California. “This indictment sends a clear message: If you plan to profit from selling defective products, you should also plan to face justice.”
“When corporate executives delay reporting defective consumer products to the CPSC, it puts consumers at needless risk for injury or even death,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “This prosecution reflects the Department of Justice’s commitment to enforcing product safety laws that protect consumers from product hazards. We will seek to hold accountable corporate executives who value profits over the safety of consumers by failing to immediately report their dangerous products.”
The indictment further alleges that as part of their scheme, Chu and Loh deliberately withheld information about the defective and dangerous Chinese dehumidifiers from the retail companies that bought the dehumidifiers; the insurance companies that paid for damage caused by the fires resulting from the dehumidifiers; and the CPSC. Loh and Chu allegedly continued to sell the Chinese dehumidifiers to retailers with false certifications that the products met safety standards; caused a company employee to solicit materials that would falsely portray to an insurance company that the dehumidifiers were safe and not defective; and sent an untimely report to the CPSC that falsely stated that the dehumidifiers were not defective or hazardous.
“Inferior goods represent a serious threat to the integrity of the consumer product supply chain that the public needs to rely on with confidence,” said Joseph Macias, Special Agent in Charge for Homeland Security Investigations (HSI) Los Angeles. “Dangerous products like these pose a serious threat to consumers who mistakenly assume the products are safe and reliable. HSI will continue to work with our law enforcement partners to aggressively target and investigate those who would do harm to the public safety of our citizens.”
According to the indictment, Chu, Loh, and their companies continued to sell the defective and dangerous dehumidifiers through April 2013, and sought to avoid, reduce, and delay the costs of recalling the products. If convicted, Loh and Chu face a term of up to five years in prison for each of the conspiracy and the failure to furnish information counts. They both face up to 20 years’ imprisonment for the wire fraud charge. If convicted, the defendants are also subject to forfeiture and a fine of $250,000 or twice the gross gain or loss for each count.
In September 2013, the CPSC announced a recall of 2.2 million dehumidifiers, including Chinese dehumidifiers allegedly sold by Loh’s and Chu’s companies between September 2012 and April 2013.
An indictment merely alleges that crimes have been committed, and each defendant is presumed innocent until proven guilty beyond a reasonable doubt.
This case is being prosecuted by Senior Litigation Counsel Allan Gordus and Trial Attorney Natalie Sanders of the U.S. Department of Justice’s Consumer Protection Branch and Assistant United States Attorneys Joseph Johns and Dennis Mitchell of the Central District of California, with the assistance of Patricia Vieira of the CPSC Office of General Counsel. The case was investigated by U.S. Homeland Security Investigations in the Department of Homeland Security.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Central District of California, visit its website at https://www.justice.gov/usao-cdca.
Two Corporate Executives Indicted in First-Ever Criminal Prosecution for Failure to Report Under Consumer Product Safety ActRead the Press Release
A federal grand jury returned an indictment yesterday against two corporate executives for their roles in a scheme involving defective and dangerous consumer products, the Department of Justice announced.
Simon Chu, 63, of Chino Hills, California, and Charley Loh, 60, of Arcadia, California, were charged with a multiple-object conspiracy to commit wire fraud, to fail to furnish information under the Consumer Product Safety Act (CPSA), and to defraud the U.S. Consumer Product Safety Commission (CPSC). In addition to the conspiracy charge, the indictment also charges both defendants with one count of wire fraud and one count of failure to furnish information under the CPSA.
According to the indictment, Simon Chu was part owner and chief administrative officer of two corporations in City of Industry, California, that imported, distributed, and sold to retailers for consumer purchase dehumidifiers that were made in China. The indictment further states that Loh was part owner and chief executive officer of the same two corporations.
The Consumer Product Safety Act requires manufacturers, importers, and distributors of consumer products to report “immediately” to the CPSC information that reasonably supports the conclusion that a product contains a defect that could create a substantial product hazard or creates an unreasonable risk of serious injury or death. This duty also applies to the individual directors, officers, and agents of those companies. The indictment alleges that as early as September 2012, Chu, Loh, and their companies received multiple reports that their Chinese dehumidifiers were defective, dangerous, and could catch fire. They also allegedly knew that they were required to report this product safety information to the CPSC immediately. Despite their knowledge of consumer complaints of dehumidifier fires and test results showing problems with the dehumidifiers, the indictment alleges that Chu and Loh failed to disclose their dehumidifiers’ defects and hazards for at least six months while they continued to sell their products to retailers for resale to consumers.
“When corporate executives delay reporting defective consumer products to the CPSC, it puts consumers at needless risk for injury or even death,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “This prosecution reflects the Department of Justice’s commitment to enforcing product safety laws that protect consumers from product hazards. We will seek to hold accountable corporate executives who value profits over the safety of consumers by failing to immediately report their dangerous products.”
“The importation, distribution, and sale of defective consumer products have real-world consequences, including serious injury or death,” said Nicola T. Hanna, U.S. Attorney for the Central District of California. “This indictment sends a clear message: If you plan to profit from selling defective products, you should also plan to face justice.”
The indictment further alleges that as part of their scheme, Chu and Loh deliberately withheld information about the defective and dangerous Chinese dehumidifiers from the retail companies that bought the dehumidifiers; the insurance companies that paid for damage caused by the fires resulting from the dehumidifiers; and the CPSC. Loh and Chu allegedly continued to sell the Chinese dehumidifiers to retailers with false certifications that the products met safety standards; caused a company employee to solicit materials that would falsely portray to an insurance company that the dehumidifiers were safe and not defective; and sent an untimely report to the CPSC that falsely stated that the dehumidifiers were not defective or hazardous.
“Inferior goods represent a serious threat to the integrity of the consumer product supply chain that the public needs to rely on with confidence,” said Joseph Macias, Special Agent in Charge for Homeland Security Investigations (HSI) Los Angeles. “Dangerous products like these pose a serious threat to consumers who mistakenly assume the products are safe and reliable. HSI will continue to work with our law enforcement partners to aggressively target and investigate those who would do harm to the public safety of our citizens.”
This case is being prosecuted by Senior Litigation Counsel Allan Gordus and Trial Attorney Natalie Sanders of the U.S. Department of Justice’s Consumer Protection Branch and Assistant United States Attorneys Joseph Johns and Dennis Mitchell of the Central District of California, with the assistance of Patricia Vieira of the CPSC Office of General Counsel. The case was investigated by U.S. Homeland Security Investigations in the Department of Homeland Security.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Central District of California, visit its website at https://www.justice.gov/usao-cdca.
Two Baltimore Men Sentenced to at Least 12 Years in Federal Prison for Attempting to Rob Undercover ATF Special Agents at GunpointRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III today sentenced Menard Hazelwood, age 29, and Donte Smith, age 34, both of Baltimore, to 13 years in federal prison and 12 years in federal prison, respectively, each followed by three years of supervised release, for assaulting a federal officer and brandishing a firearm during a crime of violence, in connection with the May 26, 2017, assault on two undercover Special Agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
The sentence were announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Rob Cekada of the ATF Baltimore Field Division.
“These brave agents, like all law enforcement officers, put their lives on the line every day to identify and disrupt the drug dealers that bring violence to our streets. We are grateful that they were able to return home safely,” said United States Attorney Robert K. Hur. “These defendants thought they were robbing drug customers, which happens all often in Baltimore. Hopefully the sentences imposed today send a message to those who would commit violence that gun crime will lead to federal time, which has no parole – ever.”
“We are glad to see justice served today and are grateful that our dedicated Special Agents were unharmed,” said ATF Baltimore Special Agent in Charge Rob Cekada. “ATF’s top priority in Baltimore is to identify and target the criminal organizations responsible for gun violence. Special Agents risk their personal safety each time they work undercover during an investigation, yet they do this because they know the importance of their mission to protect the community from these violent criminals.”
According to Smith and Hazelwood’s plea agreements, on May 26, 2017, during an ATF undercover operation, Smith and Hazelwood attempted to rob two ATF undercover Special Agents (UCs), who were working with a confidential informant (CI) to purchase $2,000 worth of heroin from a known heroin dealer. The UCs and the CI had picked up the heroin dealer, with one UC driving and the other UC in the front passenger seat, then drove to a location in West Baltimore to meet with the dealer’s supplier. The dealer got out of the car and told the CI and the UCs to wait; Smith and Hazelwood immediately walked up to the vehicle. Smith asked the UCs for a light and Hazelwood took advantage of the distraction and pointed a gun at the UC in the passenger seat. Smith then pointed a silver revolver at the other UC. Smith and Hazelwood demanded money. The UCs told Smith and Hazelwood, who continued to hold them at gunpoint, that there was cash in the vehicle. The UCs then gave the distress signal to the covert ATF team that was monitoring the operation. As the covert team arrived on the scene, the agents ordered Smith and Hazelwood to put their hands up. Smith fled, and the responding ATF Special Agents fired their service weapons, striking Smith. Hazelwood also broke away and ran to a nearby car, but was not able to get into the car. Special Agents arrested him at the scene.
Agents recovered the .44-caliber revolver brandished by Smith during the robbery, but did not recover the gun used by Hazelwood. Smith and Hazelwood admitted that they each participated in the robbery, but did not know that the undercover Special Agents were federal agents at the time of the robbery.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
United States Attorney Robert K. Hur commended the ATF for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Patricia C. McLane, who prosecuted the case.
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Three Indicted in Fort Wayne for Hobbs/Armed Robbery Related OffensesRead the Press Release
FORT WAYNE, IN –Quran Waterford, 34, of Bloomington, Indiana, Gary McCaleb, 29, of Harvey, Illinois, and Mandell Strawter, 27, of Fort Wayne, Indiana, were charged in a seven count Indictment returned by the Grand Jury arising out of the armed robberies of B&H Firearms and a T-Mobile Store in Fort Wayne, Indiana on December 5 and 13, 2018, announced U.S. Attorney Thomas L. Kirsch, II.
The indictment alleges that between November 28 and December 13, 2018, the three conspired to commit Hobbs Act Robbery. The Indictment further alleges that on December 5 and 13, 2018, Waterford and McCaleb committed Hobbs Act robberies of B&H Firearms and a T-Mobile store in Fort Wayne. Waterford and McCaleb, in connection with these robberies, were also charged with using, carrying and brandishing a firearm during and in relation to those crimes of violence. Finally, Waterford and McCaleb were charged with being convicted felons in possession of firearms.
The United States Attorney’s Office emphasizes that an Indictment is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Fort Wayne Police Department. This case is being prosecuted by Assistant United States Attorney Stacey R. Speith.
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Texas Man Arrested and Charged with Bribery ConspiracyRead the Press Release
McALLEN, Texas - A Weslaco man has been arrested on charges of conspiracy to commit bribery and other offenses in connection with a scheme to bribe a city commissioner in exchange for government contracts.
U.S. Attorney Ryan K. Patrick made the announcement along with Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Christopher Combs of the FBI San Antonio Field Office and Acting Special Agent in Charge Sarah Kull of the IRS-Criminal Investigation (CI) Houston Field office.
An 18-count indictment filed in the Southern District of Texas and unsealed upon his arrest yesterday charges Richard Quintanilla, 51, with conspiring to bribe and bribing a Weslaco City Commissioner in exchange for official actions favorable to three engineering companies. According to the indictment, from approximately August 2011 through December 2016, the companies supplied Quintanilla with approximately $85,950 which was funneled through a co-conspirator. Quintanilla allegedly kept a portion of these payments and paid the remainder to a city commissioner. In exchange for these bribe payments, the indictment alleges that the city commissioner used his official position to benefit the companies, including by voting to authorize multi-million dollar contracts for water treatment facilities in the City of Weslaco. Quintanilla will appear before U.S. Magistrate Judge Peter E. Ormsby today at 11:00 a.m.
The FBI and IRS-CI conducted the investigation. Assistant U.S. Attorney Roberto Lopez is prosecuting the case along with Trial Attorneys Peter M. Nothstein and Jessica C. Harvey of the Criminal Division’s Public Integrity Section.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Texas Man Arrested and Charged with Bribery ConspiracyRead the Press Release
A Weslaco, Texas man has been arrested on charges of conspiracy to commit bribery and other offenses in connection with a scheme to bribe a city commissioner in exchange for government contracts.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick for the Southern District of Texas, Special Agent in Charge Christopher Combs of the FBI San Antonio Field Office and Acting Special Agent in Charge Sarah Kull of the IRS Criminal Investigation (CI) Houston Field office, made the announcement.
An 18-count indictment filed in the Southern District of Texas and unsealed upon his arrest yesterday charges Richard Quintanilla, 51, with conspiring to bribe and bribing a Weslaco City Commissioner in exchange for official actions favorable to three engineering companies. According to the indictment, from approximately August 2011 through December 2016, the companies supplied Quintanilla with approximately $85,950, which was funneled through a co-conspirator. Quintanilla allegedly kept a portion of these payments and paid the remainder to a city commissioner. In exchange for these bribe payments, the indictment alleges that the city commissioner used his official position to benefit the companies, including by voting to authorize multi-million dollar contracts for water treatment facilities in the City of Weslaco. Quintanilla will appear before U.S. Magistrate Judge Peter E. Ormsby at 11:00 a.m. CT today.
An indictment contains only allegations. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI and IRS-CI conducted the investigation. Trial Attorneys Peter M. Nothstein and Jessica C. Harvey of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Roberto Lopez of the Southern District of Texas are prosecuting the case.
Tallahassee Music Teacher Sentenced to 240 Months in Prison for Enticing a Minor and Child Pornography OffensesRead the Press Release
TALLAHASSEE, FLORIDA – Nicholas Hughes, 34, of Tallahassee, was sentenced to 240 months in prison today for enticement of a minor, production, and possession of child pornography, after being convicted on January 4 following a two-day trial. Lawrence Keefe, United States Attorney for the Northern District of Florida, announced the sentence.
During the 2016-2017 school year, the mother of a 13-year-old student reported that her child had told her about various sexual encounters with Hughes, a music teacher at Coast Charter School in St. Marks, Florida. Hughes and the victim communicated through in-person visits, telephone calls, text messages, and social media applications, including sending pornographic pictures. A forensic review of Hughes’s laptop computer and external hard drive revealed dozens of images and videos of child pornography.
U.S. Attorney Keefe said: “Children see their teachers as role models and mentors, and in this tragic case, the defendant took advantage of that trust. Together with our federal, state, and local law enforcement partners, we will pursue child predators and bring them to justice.”
“This predator was in a position of trust and abused that trust in the worst way possible,” said HSI Tampa Special Agent in Charge James C. Spero. “All child exploitation is reprehensible, but this case is even more egregious having been committed by someone trusted by children and parents.”
FDLE Tallahassee Regional Operations Center Special Agent in Charge Mark Perez said: “Florida’s families should be able to feel confident that their children are safe at school. The violation of that trust here is despicable and has no place in our community.”
The case was investigated by United States Immigration and Customs Enforcement Homeland Security Investigations, the Wakulla County Sheriff’s Office, the Florida Department of Law Enforcement, the Leon County Sheriff’s Office, and other members of the North Florida Internet Crimes Against Children Task Force. The case was prosecuted by Assistant United States Attorneys Michelle Daffin and Christopher Thielemann.
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.
Suspect in Evanston carjacking case receives 184 Months in Federal PrisonRead the Press Release
JONATHAN ALEXANDER OLIVARES, 26, of Uinta County, Wyoming was sentenced in Federal District Court on March 25, 2019 by Chief United States District Judge Scott W. Skavdahl for carjacking and use/carrying a firearm during and in relation to a crime of violence.
The charges against Mr. Olivares stemmed from his assault of a Uinta County Sheriff’s Deputy following a State District Court appearance in Evanston, Wyoming on June 26, 2018. After his court appearance, Mr. Olivares attacked and disarmed a Sheriff’s Deputy and fled the County Courthouse before carjacking a local resident at gunpoint. Fast-acting local law enforcement authorities located and re-arrested Mr. Olivares shortly after his escape.
United States Attorney Mark A. Klaassen announced the sentence of one hundred eighty-four months in federal prison to be followed by sixty months of supervised release. Klaassen stated, "I appreciate the prompt action of law enforcement to apprehend the defendant and assist in his prosecution. Such acts of violence will not be tolerated and I am pleased to see that a measure of justice has been achieved to address this unacceptable conduct." Olivares was also ordered to pay $1,727.58 in restitution and a special assessment of $200.00.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.