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8 May 2019
Alabama Man Indicted for Attempts to Entice Wisconsin Minor to Engage in IncestRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, has announced that yesterday, a federal grand jury returned a four-count indictment against Tyler A. Blackmon (age: 28) of Prattville, Alabama.
According to the indictment, on four occasions between September 27, 2018, and October 10, 2018, Blackmon attempted to entice a Wisconsin child identified in the indictment as “Minor Child A” to engage in acts of incest, a felony under Wisconsin law.
Blackmon faces four charges of attempting to “persuade, induce, entice, and coerce” the child to engage in criminal sexual activity, incest, contrary to Title 18, United States Code, Sections 2422(b) and 2. As to each count, he faces a mandatory minimum sentence of 10 years and up to a lifetime of incarceration in federal prison.
This case was investigated by the Seymour Police Department with the assistance of the Prattville Police Department in Alabama. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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Administrators of DeepDotWeb Indicted for Money Laundering Conspiracy, Relating to Kickbacks for Sales of Fentanyl, Heroin and Other Illegal Goods on the DarknetRead the Press Release
The alleged owners and operators of a website known as DeepDotWeb (DDW) have been indicted by a federal grand jury sitting in Pittsburgh, Pennsylvania, for money laundering conspiracy, relating to millions of dollars in kickbacks they received for purchases of fentanyl, heroin, and other illegal contraband by individuals referred to Darknet marketplaces by DDW. The website has now been seized by court order.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Scott W. Brady for the Western District of Pennsylvania, Assistant Director Robert Johnson of the FBI’s Criminal Investigative Division and Special Agent in Charge Robert Allan Jones of the FBI’s Pittsburgh Field Office made the announcement.
In an indictment unsealed today, Tal Prihar, 37, an Israeli citizen residing in Brazil, and Michael Phan, 34, an Israeli citizen residing in Israel, were charged on April 24, 2019, in a one-count indictment by a federal grand jury in Pittsburgh. Prihar was arrested on May 6, 2019 by French law enforcement authorities in Paris, pursuant to a provisional arrest request by the United States in connection with the indictment. Phan was arrested in Israel on May 6 pursuant to charges in Israel. Further, the FBI seized DDW, pursuant to a court order issued by the U.S. District Court for the Western District of Pennsylvania.
“According to the indictment unsealed today, these defendants allegedly made millions of dollars by providing a gateway to illegal Darknet marketplaces, allowing hundreds of thousands of users to buy fentanyl, hacking tools, stolen credit cards, and other contraband,” said Assistant Attorney General Benczkowski. “The great work of our law enforcement partners and prosecutors allowed us to penetrate these supposedly anonymous online criminal networks, and those who used the networks to commit crimes will be held accountable regardless of where they live or how they attempt to hide their identities.”
“This is the single most significant law enforcement disruption of the Darknet to date,” said U.S. Attorney Scott W. Brady. “While there have been successful prosecutions of various Darknet marketplaces, this prosecution is the first to attack the infrastructure supporting the Darknet itself.”
“For years, DeepDotWeb operated as a key gateway to the criminal underbelly of Darknet marketplaces, all while the website administrators profited from the Darknet economy,” said FBI Assistant Director Robert Johnson. “Although they believed that they could hide in plain sight, this case demonstrates nothing could be further from the truth. The FBI does not turn a blind eye to criminal activity happening on or off the Darknet. Rather, we have worked together with our partners, both at home and abroad, to investigate nefarious activity, shut down websites like DeepDotWeb that facilitate the introduction of opioids and other illicit contraband into the United States, and arrest the individuals profiting from these transactions. The indictment announced today represents a true international success and should serve as a message to others that the FBI will always pursue criminals victimizing Americans, no matter where they may try to hide.”
“Websites like DeepDotWeb pose global threats that require global partnerships,” said FBI Special Agent in Charge Jones. “DDW acted as a gateway to the Darknet, allowing for the purchase and exchange of illicit drugs and other illegal items around the world, and the individuals charged today profited from those nefarious transactions. The efforts of federal and international law enforcement should send the message that we are coming after the operators of these dangerous websites.”
Summary
According to the indictment, from in and around October 2013 and continuing through the date of the indictment, Tal Prihar and his co-conspirator Michael Phan allegedly owned and operated DDW, hosted at www.deepdotweb.com and also accessible on the Darknet at DeepDot35Wveyd5.onion.
DDW provided users with direct access to numerous online Darknet marketplaces, not accessible through traditional search engines, at which vendors offered for sale illegal narcotics such as fentanyl, carfentanil, cocaine, heroin, and crystal methamphetamine, firearms, including assault rifles, malicious software and hacking tools; stolen financial information and payment cards and numbers; access device-making equipment and other illegal contraband.
Prihar and Phan received kickback payments, representing commissions on the proceeds from each purchase of the illegal goods made by individuals referred to a Darknet marketplace from the DDW site. These kickback payments were made in virtual currency, such as bitcoin, and paid into a DDW-controlled bitcoin “wallet.” To conceal and disguise the nature and source of the illegal proceeds, totaling over $15 million, Prihar and Phan transferred their illegal kickback payments from their DDW bitcoin wallet to other bitcoin accounts and to bank accounts they controlled in the names of shell companies.
The Money Laundering Kickback Scheme
According to the indictment, Darknet marketplaces operated on the “Tor” network, a computer network designed to facilitate anonymous communication over the Internet. Because of Tor’s structure, a user who wanted to visit a particular Darknet marketplace needed to know the site’s exact .onion address. DDW simplified this process by including pages of hyperlinks to various Darknet marketplaces’ .onion addresses.
Further, the indictment alleges that users who visited DDW were able to click on the hyperlinks to navigate directly to the Darknet marketplaces. Embedded in these links were unique account identifiers, which enabled the individual marketplaces to pay what they referred to as “Referral Bonuses,” to DDW. Kickbacks in the form of referral bonuses, paid in virtual currency, were a percentage of the profits of all of the activities conducted on the marketplace by any user who made purchases on the marketplace by using DDW’s customized referral link. Through the use of the referral links, DDW received kickbacks from Darknet marketplaces every time a purchaser used DDW to buy illegal narcotics or other illegal goods on the marketplace.
During the time period relevant to this Indictment, DDW’s referral links were widely used by users in the Western District of Pennsylvania and elsewhere to access and then create accounts on many Darknet marketplaces, including AlphaBay Market, Agora Market, Abraxas Market, Dream Market, Valhalla Market, Hansa Market, TradeRoute Market, Dr. D’s, Wall Street Market, and Tochka Market. When AlphaBay was seized by law enforcement in 2017, it was one of the largest Darknet markets that offered illegal drugs, fraudulent identification materials, counterfeit goods, hacking tools, malware, firearms, and toxic chemicals. Approximately 23.6 percent of all orders completed on AlphaBay were associated with an account created through a DDW referral link, meaning that DDW received a referral fee for 23.6 percent of all orders made on AlphaBay.
Over the course of the conspiracy, the defendants referred hundreds of thousands of users to Darknet marketplaces. These users in turn completed hundreds of millions’ of dollars’ worth of transactions, including purchases of illegal narcotics such as fentanyl, carfentanil, cocaine, heroin, and crystal methamphetamine; firearms, including assault rifles; malicious software and hacking tools; stolen financial information and payment cards and numbers; access device-making equipment; and other illegal contraband. Through the use of the referral links, the defendants received kickbacks worth millions of dollars, generated from the illicit sales conducted on Darknet marketplace accounts created through the site.
The defendants grew and promoted the DDW site, which functioned to drive further traffic to the DDW referral links, generating additional income for the defendants. Prihar functioned as the administrator of DDW. He registered the domain, made infrastructure payments and maintained control over site content. Phan was responsible for DDW’s technical operations, designing and maintaining the website’s day-to-day operation. Phan and Prihar communicated on a daily basis to facilitate their criminal enterprise.
From in or before November 2014 until the date of this indictment, the defendants controlled a bitcoin wallet that they used to receive the kickback payments for purchases completed on the various Darknet marketplaces. Throughout the course of the conspiracy, DDW operated accounts on Darknet markets and communicated with the operators of various Darknet markets regarding kickback payments.
Between in and around November 2014 and April 10, 2019, DDW received approximately 8,155 bitcoin in kickback payments from Darknet marketplaces, worth approximately $8,414,173 when adjusted for the trading value of bitcoin at the time of each transaction. The bitcoin was transferred to DDW’s bitcoin wallet, controlled by the defendants, in a series of more than 40,000 deposits and was subsequently withdrawn to various destinations both known and unknown to the grand jury through over 2,700 transactions. Due to bitcoin’s fluctuating exchange rate, the value of the bitcoin at the time of the withdrawals from the DDW bitcoin wallet equated to approximately $15,489,415. In seeking to conceal their illicit activities and protect their criminal enterprise and the illegal proceeds it generated, the defendants set up numerous shell companies around the world. The defendants used these companies to move their ill-gotten gains and conduct other activity related to DDW. These companies included WwwCom Ltd., M&T Marketing, Imtech, O.T.S.R. Biztech, and Tal Advanced Tech.
An indictment contains only allegations. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was brought in conjunction with the Joint Criminal Opioid and Darknet Enforcement (J-CODE) Team. Established within the FBI’s Hi-Tech Organized Crime Unit, J-CODE is a U.S. Government initiative announced in January 2018, aimed at targeting drug trafficking, especially fentanyl and other opioids, on the Darknet. The J-CODE team brings together agents, analysts, and professional staff with expertise in drugs, gangs, health care fraud, and more. J-CODE entities, including the FBI, U.S. Drug Enforcement Administration (DEA), U.S. Postal Inspection Service (USPIS), U.S. Customs and Border Protection (CBP), U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Department of Defense (DOD), Financial Crimes Enforcement Network (FinCEN), and Department of Justice focus on disrupting the sale of drugs via the Darknet and dismantling criminal enterprises that facilitate this trafficking.
Assistant U.S. Attorney Jessica Lieber Smolar of the U.S. Attorney’s Office for the Western District of Pennsylvania, Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section, and Trial Attorneys Alexander Gottfried and Joseph Wheatley of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case. The FBI’s Pittsburgh Field Office is investigating the case. The Department thanks the French authorities, as well as its law enforcement colleagues at the U.S. Postal Inspection Service, National Cyber-Forensics and Training Alliance, IRS Criminal Investigation, Brazilian Federal Police Cyber Division, Israeli National Police, Dutch National Police, Europol Darkweb Team, German Federal Criminal Police (the Bundeskriminalamt), Polizeidirektion Zwickau and Saxon Police in Germany and law enforcement authorities in the United Kingdom. Significant assistance was also provided by the U.S. Department of Justice’s Office of International Affairs. The prosecution and investigative team thanks the AlphaBay prosecution team and the Criminal Division’s Money Laundering and Asset Recovery Section for their assistance.
Administrators of Deepdotweb Indicted for Money Laundering Conspiracy Relating to Kickbacks for Sales of Fentanyl, Heroin, and Other Illegal Goods on the DarknetRead the Press Release
PITTSBURGH - United States Attorney Scott W. Brady announced today the alleged owners and operators of a website known as DeepDotWeb (DDW) have been arrested on charges of money laundering conspiracy relating to millions of dollars in kickbacks they received for purchases of fentanyl, heroin, and other illegal contraband by individuals referred to Darknet marketplaces by DDW. The website has now been seized by court order.
In an indictment unsealed today, Tal Prihar, 37, an Israeli citizen residing in Brazil, and Michael Phan, 34, an Israeli citizen residing in Israel, were charged on April 24, 2019, in a one-count indictment by a federal grand jury in Pittsburgh. Prihar was arrested on May 6, 2019 by French law enforcement authorities in Paris, pursuant to a provisional arrest request by the United States in connection with the indictment. Phan was arrested in Israel on May 6 pursuant to charges in Israel. Further, FBI Pittsburgh seized DDW, pursuant to a court order issued by the U.S. District Court for the Western District of Pennsylvania.
“This is the single most significant law enforcement disruption of the Darknet to date,” said U.S. Attorney Scott W. Brady. “With western Pennsylvania at the epicenter of the opioid crisis in America, the U.S attorney’s office has leveraged its significant cyber expertise in attacking the sale of fentanyl and opioids on the Darknet. This case signifies the first takedown of the very infrastructure that supports and promotes the illegal marketplaces where these deadly drugs are sold on the Darknet.”
According to the indictment, between October 2013 until the date of the indictment, Tal Prihar and his co-conspirator Michael Phan allegedly owned and operated DDW, hosted at www.deepdotweb.com.
DDW provided users with direct access to numerous online Darknet marketplaces, not accessible through traditional search engines, where vendors sold illegal narcotics such as fentanyl, carfentanil, cocaine, heroin, and crystal methamphetamine, firearms, including assault rifles, malicious software and hacking tools stolen financial information and payment cards and numbers access device-making equipment and other illegal contraband.
Prihar and Phan received kickback payments, representing commissions on the proceeds from each purchase of the illegal goods made by individuals referred to a Darknet marketplace from the DDW site. These kickback payments were made in virtual currency, such as bitcoin, and paid into a DDW-controlled bitcoin “wallet.” To conceal and disguise the nature and source of the illegal proceeds, totaling over $15 million, Prihar and Phan transferred their illegal kickback payments from their DDW bitcoin wallet to other bitcoin accounts and to bank accounts they controlled in the names of shell companies.
The Money Laundering Kickback Scheme
According to the indictment, Darknet marketplaces operated on the “Tor” network, a computer network designed to facilitate anonymous communication over the Internet. Because of Tor’s structure, a user who wanted to visit a particular Darknet marketplace needed to know the site’s exact .onion address. DDW simplified this process by including pages of hyperlinks to various Darknet marketplaces’ .onion addresses.
Users who visited DDW were able to click on the hyperlinks to navigate directly to the Darknet marketplaces. Embedded in these links were unique account identifiers, which enabled the individual marketplaces to pay what they referred to as “Referral Bonuses,” to DDW. These kickbacks, paid in virtual currency, were a percentage of the profits of all of the activities conducted on the marketplace by any user who made purchases on the marketplace by using DDW’s customized referral link. Through the use of the referral links, DDW received kickbacks from Darknet marketplaces every time a purchaser used DDW to buy illegal narcotics or other illegal goods on the marketplace.
During the time period relevant to this Indictment, DDW’s referral links were widely used by users in the Western District of Pennsylvania and elsewhere to access and then create accounts on many Darknet marketplaces, including AlphaBay Market, Agora Market, Abraxas Market, Dream Market, Valhalla Market, Hansa Market, TradeRoute Market, Dr. D’s, Wall Street Market, and Tochka Market. These Darknet markets offer illegal drugs, fraudulent identification materials, counterfeit goods, hacking tools, malware, firearms, and toxic chemicals. Two of the largest markets included AlphaBay and Hansa Market, which were both seized by law enforcement in 2017. Approximately 23 percent of all orders completed on AlphaBay and 47% of all orders completed on Hansa were associated with accounts created through DDW referral links, meaning that DDW received referral fees for 23%of all orders made on AlphaBay and 47% of all orders made on Hansa.
During the time period relevant to this Indictment, DDW’s referral links were widely used by users in the Western District of Pennsylvania and elsewhere to access and then create accounts on many Darknet marketplaces, including AlphaBay Market, Agora Market, Abraxas Market, Dream Market, Valhalla Market, Hansa Market, TradeRoute Market, Dr. D’s, Wall Street Market, and Tochka Market. When AlphaBay was seized by law enforcement in 2017, it was one of the largest Darknet markets that offered illegal drugs, fraudulent identification materials, counterfeit goods, hacking tools, malware, firearms, and toxic chemicals. Approximately 23.6%of all orders completed on AlphaBay were associated with an account created through a DDW referral link, meaning that DDW received a referral fee for 23.6% of all orders made on AlphaBay.
Over the course of the conspiracy, the defendants referred hundreds of thousands of users to Darknet marketplaces. These users in turn completed hundreds of millions’ of dollars’ worth of transactions, including purchases of illegal narcotics such as fentanyl, carfentanil, cocaine, heroin, and crystal methamphetamine, firearms, including assault rifles, malicious software and hacking tools, stolen financial information and payment cards and numbers, access device-making equipment, and other illegal contraband. Through the use of the referral links, the defendants received kickbacks worth millions of dollars, generated from the illicit sales conducted on Darknet marketplace accounts created through the site.
The defendants grew and promoted the DDW site, which functioned to drive further traffic to the DDW referral links, generating additional income for the defendants. Prihar functioned as the administrator of DDW. He registered the domain, made infrastructure payments and maintained control over site content. Phan was responsible for DDW’s technical operations, designing and maintaining the website’s day-to-day operation. Phan and Prihar communicated on a daily basis to facilitate their criminal enterprise.
From in or before November 2014 until the date of this indictment, the defendants ,,ontrolled a bitcoin wallet that they used to receive the kickback payments for purchases completed on the various Darknet marketplaces. Throughout the course of the conspiracy, DDW operated accounts on Darknet markets and communicated with the operators of various Darknet markets regarding kickback payments.
Between in and around November 2014 and April 10, 2019, DDW received approximately 8,155 bitcoin in kickback payments from Darknet marketplaces, worth approximately $8,414,173 when adjusted for the trading value of bitcoin at the time of each transaction. The bitcoin was transferred to DDW’s bitcoin wallet, controlled by the defendants, in a series of more than 40,000 deposits and was subsequently withdrawn to various destinations both known and unknown to the grand jury through over 2,700 transactions. Due to bitcoin’s fluctuating exchange rate, the value of the bitcoin at the time of the withdrawals from the DDW bitcoin wallet equated to approximately $15,489,415. In seeking to conceal their illicit activities and protect their criminal enterprise and the illegal proceeds it generated, the defendants set up numerous shell companies around the world. The defendants used these companies to move their ill-gotten gains and conduct other activity related to DDW. These companies included WwwCom Ltd., M&T Marketing, Imtech, O.T.S.R. Biztech, and Tal Advanced Tech.
“While there have been successful prosecutions of various Darknet marketplaces, this prosecution is the first to attack the infrastructure supporting the Darknet itself,” said U.S. Attorney Brady. The website has been seized by the FBI based on a court order obtained in the Western District of Pennsylvania.
“Websites like DeepDotWeb pose global threats that require global partnerships,” said FBI Special Agent in Charge Robert Jones. “DDW acted as a gateway to the Darknet, allowing for the purchase and exchange of illicit drugs and other illegal items around the world, and the individuals charged today profited from those nefarious transactions. The efforts of federal and international law enforcement should send the message that we are coming after the operators of these dangerous websites.”
An indictment contains only allegations. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was brought in conjunction with the Hi-Tech Organized Crime Unit, Joint Criminal Opioid and Darknet Enforcement (J-CODE) Team. Announced by the U.S. Attorney General in Pittsburgh, Pennsylvania, in January, 2018, J-CODE is a Department of Justice initiative targeting drug trafficking, especially fentanyl and other opioids, on the Darknet. The J-CODE team brings together experienced prosecutors, agents, analysts and professional staff with expertise in drugs, gangs, health care fraud and cyber-based investigations. J-CODE entities, including the FBI, Drug Enforcement Administration, U.S. Postal Inspection Service, U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement Homeland Security Investigations, Department of Defense, Financial Crimes Enforcement Network and Department of Justice focus on disrupting the sale of drugs via the Darknet and dismantling criminal enterprises that facilitate this trafficking.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Assistant U.S. Attorney Jessica Lieber Smolar of the U.S. Attorney’s Office for the Western District of Pennsylvania, Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section, and Trial Attorneys Alexander Gottfried and Joseph Wheatley of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case. The FBI’s Pittsburgh Field Office is investigating the case. The United States Attorney thanks the French authorities, as well as its law enforcement colleagues at the United States Postal Inspection Service, Internal Revenue Service, Brazilian Federal Police Cyber Division, Israeli National Police, Dutch National Police, Europol Darkweb Team, Federal Criminal Police Office of Germany, and law enforcement in the United Kingdom. Significant assistance was also provided by the United States Department of Justice, Criminal Division’s Office of International Affairs.
Indictment- DeepDotWeb Indictment
15 Individuals Convicted, Sentenced in Heroin and Cocaine Trafficking ConspiracyRead the Press Release
PROVIDENCE, RI – The fifteenth and final defendant arrested, charged and convicted for leading or participating in a drug trafficking conspiracy that repeatedly arranged for and supervised multi-kilogram shipments of heroin and cocaine from Mexico to stash houses in Cranston and Woonsocket, R.I., then distributed the drugs to mid-level drug dealers in the greater Providence and greater Boston areas and in Hartford, Conn., was sentenced today in federal court in Providence.
An FBI Safe Streets Gang Task Force investigation dubbed “Operation Triple Play,” in reference to three brothers, Juan, Claudio, and Hector Valdez, all Dominican nationals who admitted to running the drug trafficking organization, dismantled the operation that imported substantial quantities of heroin and cocaine from Mexico into Rhode Island.
Juan Valdez, 51, of Milton, Mass., and Claudio Valdez, 46, of Woonsocket, R.I., are currently serving sentences of 20 years in federal prison. Hector Valdez, 45, of Woonsocket, R.I., is serving a sentence of 108 months in federal prison.
In addition to executing fourteen court-authorized searches in three states and arresting fifteen individuals, law enforcement seized nearly 3.5 kilograms of fentanyl, nearly four kilograms of heroin - most of which was laced with fentanyl, more than 1.6 kilograms of cocaine, 142 grams of crack cocaine, more than 137 pounds of cutting agents, $45,500 in cash, and nine vehicles, five of which were found to contain hidden compartments used for the transportation of drugs and money.
Eleven of the “Operation Triple Play” defendants, many who had been living in the United States with stolen identities, including the three brothers who led the drug trafficking organization, have or will face deportation proceedings. According to court records, Juan Valdez was previously deported from the United States on four occasions. Claudio and Hector were previously deported one occasion.
The conclusion of these cases brought in U.S. District Court in Providence as the result of Operation Triple Play is announced by United States Attorney Aaron L. Weisman and FBI Special Agent in Charge Joseph R. Bonavolonta.
“This investigation by a team of hard working, relentless members of law enforcement under the direction of the Rhode Island FBI Safe Streets Gang Task Force drove a spike through the heart of a significant drug trafficking organization and put them out of business. An equally committed team of prosecutors ensured that each and every defendant arrested and charged was held accountable for their actions,” said United States Attorney Aaron L. Weisman. “This office and law enforcement remain committed to working together to provide the personnel and the resources necessary to disrupt and dismantle criminal drug trafficking organizations that destroy so many lives.”
Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division added, “It’s a good day when 15 drug traffickers are taken off the streets, and their drug trafficking organization is dismantled. This case shows how drug cartels based in foreign countries will go anywhere to distribute their deadly products, threatening the safety and stability of our neighborhoods. The FBI’s Safe Streets Gang Task Force will continue to work with our law enforcement partners to aggressively track down others like them who are recklessly poisoning our communities with illegal drugs, bringing nothing but danger—and in far too many cases death—to our cities.”
Operation Triple Play was an Organized Crime Drug Enforcement Task Force investigation initiated by the FBI Safe Streets Task Force. Under the direction of the FBI, the participating agencies in this investigation included the Drug Enforcement Administration (Providence and Boston Resident Agencies); Immigration and Customs Enforcement; Rhode Island State Police; Providence Police Department; Woonsocket Police Department; Central Falls Police Department; Cranston Police Department; Warwick Police Department; and the Rhode Island Department of Corrections.
United States Attorney Aaron L. Weisman and FBI Special Agent in Charge Joseph R. Bonavolonta thank the U.S. Department of State and United States Attorney’s Offices in the District of Massachusetts and the District of Connecticut for their assistance in the investigation of this matter. They also acknowledge and thank the DEA for their financial and technical support during Operation Triple Play.
The cases were prosecuted by Assistant U.S. Attorney Gerard B. Sullivan, with the assistance of Assistant U.S. Attorneys William J. Ferland and Ronald A. Gendron.
7 May 2019
Weld County Woman Sentenced to Federal Prison for Stealing over $180,000 from the United States Postal Service Through Hundreds of False Insurance ClaimsRead the Press Release
DENVER – Lorrine Kimmel, age 48, of Weld County, Colorado, was sentenced today by Senior U.S. District Court Judge Wiley Y. Daniel to serve 15 months in federal prison, followed by 3 years on supervised release for defrauding the U.S. Postal Service (USPS) by mail fraud, U.S. Attorney Jason Dunn and U.S. Postal Service Office of Inspector General Special Agent in Charge of the Western Area Field Office John D. Masters announced today. The defendant was also ordered to pay $188,575 in restitution. Kimmel appeared at the sentencing hearing free on bond, and was ordered to report to a Bureau of Prison facility once one is designated.
Kimmel was charged by Information on August 29, 2018. She pled guilty to mail fraud on November 8, 2018. She was sentenced today, May 7, 2019.
According to court documents, including the stipulated facts contained in the plea agreement, between October 2014 and July 2018, the defendant engaged in a complex scheme to defraud the USPS by filing 770 false insurance claims where she claimed that the contents of parcels she had mailed were damaged.
The defendant initiated each false claim by mailing as many as ten or more packages per week from her local post office in Kersey, Colorado, or a larger, nearby post office in Greeley. She typically claimed that the items she was shipping were purchased by customers and were damaged in transit. In fact, both of those facts were false. The recipients listed on most of the parcels were either fictitious individuals or entities that had never ordered anything from Kimmel or her business. She then purchased insurance on each of those packages, and attempted to defeat detection by using variants on addresses and email addresses for each of those packages.
During the three year period, Kimmel filed insurance claims with the U.S. Postal Service totaling $227,005, and, of those claims, she was paid $188,575. She used this scheme to obtain tax-free money to finance her personal expenses.
“The Postal Service plays a very important role in our country,” said U.S. Attorney Jason Dunn. “A fraud upon it is a fraud upon all of us that use the USPS and pay for its services.”
“One of the missions of the U.S. Postal Service Office of inspector General (OIG) is to help safeguard the USPS from external crimes, such as fraud. OIG Special Agents vigorously investigate these cases,” said Special Agent-in-Charge John D. Masters. “This sentencing serves as a reminder and deterrent to anyone thinking this type of behavior is acceptable. Such actions come with consequences. The OIG’s efforts, with the support of the United States Attorney’s Office, District of Colorado, help maintain the integrity of the Postal Service.”
This case was investigated by the U.S. Postal Service Office of the Inspector General. The defendant was prosecuted by Assistant U.S. Attorney Hetal Doshi.
Vestavia Hills Cardiologist Sentenced to 87 Months in Prison for Illegally Prescribing OpioidsRead the Press Release
BIRMINGHAM – A federal judge on Wednesday sentenced a physician to 87 months in prison for illegally prescribing opioid painkillers, announced United States Attorney Jay E. Town, Drug Enforcement Administration-Birmingham Assistant Special Agent in Charge Clay Morris and Internal Revenue Service-Criminal Investigation Special Agent in Charge Thomas J. Holloman.
United States District Judge L. Scott Coogler sentenced STEVEN BRUCE HEFTER, 61, of Vestavia Hills, to 87 months in prison, to be followed by three years of supervised release and was directed to forfeit more than $38,000. Hefter must report to the Bureau of Prisons on June 30th.
Hefter pled guilty in December 2017 to one count of conspiracy to distribute controlled substances outside the usual scope of professional practice and not for a legitimate medical purpose. The charge arose from Hefter’s involvement between 2012 and 2016 with the now defunct clinic Cindy Dunn & Dr. Buckingham, M.D., Weight Loss Clinic and Pain Management (CDPM) in Moody, Alabama.
“The opioid crisis in the United States accounts for the overdose deaths of tens of thousands of Americans every year,” Town said. “This sentence puts on notice any medical provider that justice will find you, from the street corner to the clinic. There is no hiding behind the white coat or white shoes. You will be caught, you will be prosecuted and you will occupy a federal prison bed. We will even leave the light on for you.”
“Today’s sentence should serve as a warning to any medical professional considering exploiting their patients for profit: you will be caught, you will be prosecuted, and you will pay a steep price,” said Thomas J. Holloman, Special Agent in Charge IRS Criminal Investigation, Atlanta Field Office. “IRS-CI remains committed to working with our law enforcement partners to bring those seeking to enrich themselves at the expense of their patients, to justice.”
“As always, DEA stands ready to protect our citizens, families and often time our children from the devastating effects from the criminal diversion of opioid based drugs.” Morris said. “We will not allow physicians who have abandoned their Hippocratic oath to continue to poison our communities. The DEA and our law enforcement partners will continue to aggressively investigate those who choose profit over patient care.”
In early 2018, Hefter surrendered his Alabama medical license and his federal Drug Enforcement Administration registration authorizing him to prescribe controlled substances.
Hefter was a cardiologist by training, with no specialization in pain management. Nevertheless, he worked for CDPM as a pain management physician. CDPM was a pill mill. The cash-only clinic received anywhere from 40 to 80 patients in a single day. The primary method for treating pain was by writing multiple prescriptions for high doses of potent and addictive opioids, usually oxycodone, for months and years without offering any other modes of treatment. According to Alabama’s Prescription Drug Monitoring Program, which tracks the dispensing of controlled substances, during the span of approximately four months in late 2015, Hefter wrote 2,785 prescriptions for 279,665 opioid pills. The vast majority of Hefter’s prescriptions were pre-signed and issued to patients while Hefter was absent from CDPM. CDPM patients were rarely, if ever, examined properly. CDPM didn’t even have a patient examination table. Many patients were either drug addicts or were diverting their pills to the street.
“This sentence should serve as a warning to unscrupulous doctors who abuse their prescribing authority and put lives at risk for financial gain, said Assistant United States Attorney Mohammad Khatib, “You are not above the law, and when you are caught, justice awaits.”
This case was a multi-agency investigation by the DEA and IRS-Criminal Investigation as part of an Organized Crime Drug Enforcement Task Force operation. Assistant United States Attorney Mohammad Khatib prosecuted the case.
United States Files Civil Action to Collect Debts Owed for Violations of Federal Mine Safety ActRead the Press Release
Roanoke, VIRGINIA – United States Attorney Thomas T. Cullen and the Assistant Secretary of Labor for the Mine Safety and Health Administration (MSHA) David G. Zatezalo, announced today the filing of a civil action against 23 coal companies operating in Virginia, West Virginia, Tennessee, Alabama, and Kentucky, seeking over $4.7 million in unpaid penalties for violations of the Federal Mine Safety and Health Act.
“The MSHA plays a critical role in protecting our coal miners and ensuring that mine owners and operators fulfill their legal obligations to provide safe and healthy working conditions,” U.S. Attorney Cullen stated today. “As alleged in the complaint, the defendants racked up over 2,000 safety violations over a five-year period and have, to date, refused to comply with their legal obligations to pay the resulting financial penalties. This is unacceptable, and, as indicated by this suit, we will hold them accountable.”
“MSHA stands with the Department of Justice in seeking to hold mine operators responsible for the penalties they owe,” said Assistant Secretary Zatezalo. “In the Mine Act, Congress was extremely clear on enforcement matters: Federal inspectors issue citations for safety and health violations, which carry a monetary fine. Failure to pay penalties is unfair to miners who deserve safe workplaces, and to mine operators who play by the rules.”
According to court documents filed today, between May 3, 2014 and May 3, 2019, MSHA collectively issued at least 2,297 citations to the defendant mine operators for violations of the Mine Health and Safety Act, and at the appropriate time, assessed civil penalties for each violation, pursuant to the law.
The defendants failed to pay the penalties or even notify MSHA that it contested the assessed civil penalties. When defendants failed to pay the civil penalties for 100 days despite two demand letters, MSHA referred the civil penalties to the Department of Treasury for collection. The Department of Treasury made another written demand on the defendants, but they still failed to pay, and the Department of Treasury referred the civil penalties to the Department of Justice for collection. On September 5, 2018, the United States Attorney’s Office for the Western District of Virginia made a written demand on the defendants for the delinquent debts. The defendants, however, still failed to pay the outstanding debts and, as of the date of this filing, continue not to pay both the old and newly assessed penalties.
In the complaint, the United States is seeking judgment against the 23 defendants for $3,954,984.37, the total principal amount of unpaid civil penalties owed. An additional $821,386.03 in administrative costs and interest is being sought.
The 23 defendants are: Southern Coal Corporation; Justice Coal of Alabama; A&G Coal Corporation; Black River Coal; Chestnut Land Holdings; Double Bonus Coal Company; Dynamic Energy; Four Star Resources; Frontier Coal Company; Infinity Energy; Justice Energy Company; Justice Highwall Mining; Kentucky Fuel Corporation; Keystone Service Industries; M&P Services; Nine Mile Mining; Nufac Mining Company; Pay Car Mining; Premium Coal Company; S and H Mining; Sequoia Energy; Tams Management; and Virginia Fuel Corporation.
According to court documents, each of the defendant companies operated at least one mine with delinquent, uncontested MSHA penalties.
Assistant United States Attorney Krista Consiglio Frith and Special Assistant United States Attorney Jason Grover, an attorney with the Department of Labor, are representing the United States in these matters.
Three Members of Robbery Crew Plead Guilty to Conspiracy and Related Charges Regarding Scheme to Commit North Bay Home Invasion RobberiesRead the Press Release
SAN FRANCISCO- Jaray Simmons, Nakia Jones, and Siddiq Abdullah pleaded guilty today to their respective roles in a scheme to conduct home invasion robberies in California to obtain marijuana for resale on the East Coast, announced United States Attorney David L. Anderson and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett. The guilty pleas were accepted by the Honorable Edward M. Chen, U.S. District Judge.
According to the guilty pleas, Simmons, 29, of Winston-Salem, N.C., Jones, 23, of Richmond, Va., and Abdullah, 22 , of Richmond, Va., were three of eight codefendants who agreed to target houses in northern California they believed contained bulk quantities of marijuana and the cash proceeds of marijuana sales. The eight codefendants agreed to conduct armed home invasion robberies of the targeted homes and to distribute for a profit on the East Coast the marijuana they were able to steal.
In March of 2018, Simmons traveled by car with three codefendants from Winston-Salem to California to carry out the plan. When the four codefendants reached Sacramento, they obtained multiple weapons and one of the codefendants purchased supplies including jackets, duffel bags, scissors, a vacuum sealer, and vacuum bags. The codefendants purchased these items to package for shipment the marijuana stolen during the home invasion robberies. Meanwhile, Jones, Abdullah, and an additional two co-defendants traveled from Richmond to Washington, D.C., and then from Washington by plane to San Francisco. After arriving in Northern California, the codefendants obtained a supply of firearms and ammunition.
All eight defendants met in Novato, Calif., on March 12, 2019, and traveled in two cars from Novato to a residential street in Petaluma. The plea agreements provide the following facts regarding the events of the evening:
A codefendant kicked open the front door of the residence and six of the coconspirators entered. The residence was occupied by a man and a woman who were forced inside the bathroom and bound with duct tape. At least one codefendant threatened to kill the victims if they did not cooperate, at least one codefendant pointed a firearm at the victims to threaten them into providing the location of marijuana and money, and at least one codefendant struck the male victim inside the bathroom in an effort to get him to disclose the location of marijuana and money. The victims explained they did not have any marijuana and that the defendants were in the wrong house.
Six of the defendants walked to a nearby second house. The group separated into two smaller groups and broke into the second house through both the front door and a side door. A codefendant grabbed a telephone from a woman occupant and threw it on the floor. At least one codefendant questioned the female victim about the location of marijuana and money. The woman was dragged by the hair and locked inside a closet. The woman said there was no marijuana in the house but that she had money in a drawer.
Two codefendants who were outside the second house encountered a neighbor. They brought the neighbor into the second house, pointed a gun at the victim, tied him with an electrical extension cord, and repeatedly struck him while asking where the marijuana and money was located. The male victim repeated that the defendants were in the wrong house.
The defendants heard the police approaching and left the houses. The defendants attempted to escape in the two vehicles in which they arrived. The police gave chase. Eventually, all the codefendants were apprehended, some as they abandoned their vehicle, others when they arrived at San Francisco International Airport later in the afternoon of March 12, 2018, and one defendant several days later.
On April 26, 2018, a federal grand jury indicted Simmons, Jones, and Abdullah and the other five defendants charging all with conspiracy to commit robbery affecting interstate commerce, in violation of 18 U.S.C. § 1951(a); conspiracy to possess with intent to distribute marijuana, in violation of 21 U.S.C. § 846; two counts of attempted robbery affecting interstate commerce, in violation of 18 U.S.C. § 1951(a) and 2; and possession or use of a firearm during and in relation to and in furtherance of a crime of violence and a drug trafficking crime, in violation of 18 U.S.C. § 924(c)(1)(A)(i) and 2. Simmons, Jones, and Abdullah all pleaded guilty to one count each of conspiracy to commit robbery affecting interstate commerce, conspiracy to possess with intent to distribute marijuana, and use or possession of a firearm.
Judge Chen scheduled Jones’s sentencing hearing for July 31, 2019, Simmons’s sentencing hearing for August 7, 2019, and Abdullah’s sentencing hearing for August 14, 2019. The maximum statutory penalties for conspiracy to commit robbery affecting interstate commerce is 20 years in prison and a $250,000 fine. The maximum statutory penalties for conspiracy to possess with intent to distribute marijuana is 5 years in prison and a $250,000 fine. The maximum statutory penalties for use or possession of a firearm during and in relation to a crime of violence is life in prison and a $250,000 fine. Additional fines, forfeitures, and restitution also may be ordered; however, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Christiaan Highsmith is prosecuting the case with the assistance of Lance Libatique. The prosecution is the result of an investigation by the FBI, the Sonoma County Sheriff’s Department, and the Santa Rosa Police Department.
Third Nigerian National Admits Role in Business E-Mail Compromise Scheme Targeting CFOs and ControllersRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that STANLEY HUGOCHUKWU NWOKE, also known as “Stanley Banks,” “Banks,” “Hugo Banks,” “Banky,” and “Jose Calderon,” 28, a citizen of Nigeria, pleaded guilty today before U.S. District Judge Janet C. Hall in New Haven to a fraud offense stemming from his role in a business e-mail compromise scheme.
According to court documents and statements made in court, Nwoke conspired with Adeyemi Odufuye and others in a business compromise scheme that targeted hundreds, if not thousands, of CFOs, controllers and others at businesses, nonprofit organizations, and schools in Connecticut and across the United States. As part of the scheme, Odufuye, Nwoke and others, including Olumuyiwa Yahtrip Adejumo, sent e-mails addressed to executives that were made to appear to be sent from the legitimate e-mail address of the CEO or other executive from the business. The emails were sent with the intent of having the recipients send or wire money to bank accounts used by members of the conspiracy.
The investigation revealed that scheme participants controlled multiple e-mail and social media accounts used in the scheme and, in certain instances, sent e-mails and attachments containing malware to the intended recipients.
In late 2015, Odufuye and others sent or caused to be sent dozens of e-mails to the controller of a company in Torrington, Connecticut. In the e-mails, Odufuye posed at the real CEO of the victim company and instructed the controller to send multiple wire transfers exceeding a total of $1 million from the company’s accounts to various individuals and purported entities. The company then sent five wire transfers totaling more than $500,000 to accounts in Virginia, Florida, Washington, D.C., and Hong Kong.
The investigation revealed that Odufuye and others also targeted a company headquartered in Waterbury, Connecticut, as part of this scheme.
In pleading guilty, Nwoke agreed that the loss related to his role in the scheme is at least $109,100. The government believes that the loss attributable to Nwoke is over $1.8 million.
Nwoke was arrested in Mauritius on May 8, 2018. He was extradited to the U.S. on May 25, 2018, and is detained.
Nwoke pleaded guilty to one count of conspiracy to commit wire fraud, an offense that carries a maximum term of imprisonment of 20 years. Judge Hall scheduled sentencing for August 5, 2019.
Nwoke has agreed to a restitution order of $662,053.87.
Odufuye, formerly residing in Sheffield, United Kingdom, and Adejumo, formerly residing in Toledo, Ohio, both citizens of Nigeria, previously pleaded guilty to related charges. On December 12, 2018, Odufuye was sentenced to 45 months of imprisonment and was ordered to pay restitution of $921,497.87 to victims of the scheme. On August 17, 2018, Adejumo was sentenced to 15 months of imprisonment.
This matter has been investigated by the Federal Bureau of Investigation and the Connecticut Cyber Task Force. The case is being prosecuted by Assistant U.S. Attorney David T. Huang.
U.S. Attorney Durham thanked the Department of Justice’s Office of International Affairs, the United Kingdom’s National Crime Agency, the United Kingdom’s Metropolitan Police, and the Mauritius Police Force’s Central Criminal Investigation Department for their assistance in this case.
To contact the Connecticut Cyber Task Force, please call the FBI in New Haven at 203-777-6311.
St. Louis Man Pleads Guilty to Armed RobberiesRead the Press Release
St. Louis, MO –Jerrinon Tate, 28, of St. Louis, MO, pleaded guilty to two counts of brandishing a firearm in furtherance of a crime of violence. He appeared today before U.S. District Judge Henry E. Autrey who accepted his plea and set his sentencing date for August 13, 2019.
According to the plea agreement, on June 21, 2018 at 1:00 a.m., Tate entered the Quik Trip located at 10845 Lilac in Bellefontaine Neighbors. He displayed a black semi-automatic pistol to the clerk and demanded money from the case drawer.
On June 21, 2018 at 7:30 a.m., Tate entered the Moto Mart located at 11005 Riverview Drive in the City of St. Louis. He displayed a black semi-automatic pistol and demanded that the clerk give him money.
On June 21, 2018 at 7:20 p.m., Tate entered the Family Dollar store located at 8971 Halls Ferry, St. Louis, Missouri. Tate displayed a firearm, demanded money, and threatened to shoot an employee if he/she did not comply.
In the armed robberies, the total combined cash that Tate took was approximately $847.
The firearms charges carry penalties of not less than seven years nor more than life and/or fine of $250,000 on each count consecutive to any other sentence imposed. Accordingly, there is a mandatory minimum sentence of 14 years and a maximum possible penalty of life imprisonment. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The Federal Bureau of Investigation investigated this case.
St. Croix Man Sentenced to Five Years in Prison for Distribution of Crack CocaineRead the Press Release
St. Croix, USVI – Robert Klyvert, 47, of St. Croix, was sentenced Monday for distribution of crack cocaine, United States Attorney Gretchen C.F. Shappert announced.
Visiting Judge Anne E. Thompson sentenced Klyvert to 60 months and five years of supervised release. Judge Thompson also ordered him to pay a fine of $1,000 and a $100 special assessment.
On January 29, 2019, Klyvert pleaded guilty to distribution of crack cocaine. According to his plea agreement Klyvert, aka “Family”, told a confidential human source (CHS) in September of 2016 that he wanted to begin supplying cocaine to the CHS directly, because one of Klyvert’s drug associates was now dead. In a series of phone calls and text messages over the next few months, Klyvert advised the CHS that he had a kilogram of cocaine in Florida, that he would contact the CHS once the cocaine arrived in the United States. Klyvert instructed the CHS that he would need to travel to Florida to obtain the cocaine, which would be “fronted” to the CHS, so that the CHS would have about a week to sell it and pay $25,000 back to the defendant.
According to court documents, Klyvert informed the CHS that the cocaine wasn’t good for “the nose” and that it was only good for converting into crack cocaine. Klyvert also told the CHS that if he could sell this kilogram quickly, Klyvert’s supplier would ship another kilogram to the United States on January 2, 2017 and the CHS could buy that as well.
On December 27, 2016, Klyvert texted the CHS the phone number for the drug supplier with whom the CHS was to meet in Orlando to obtain the cocaine. Three days later, the CHS received a text from the contact number supplied by Klyvert providing the address where the CHS was to pick up the drugs. The address provided was the address of record for Nolly King, Jr., who was subsequently charged, pled guilty, and was sentenced to prison last week in federal court.
The CHS obtained the cocaine from King and on December 31, 2016, Klyvert texted the CHS advising the CHS that he only needed to pay $22,000 for the cocaine as the amount of cocaine was approximately 4 ounces short of a full kilo, so the CHS need pay the $25,000 previously agreed upon price. Laboratory tests confirmed that the substance received by the CHS on December 30, 2016 from King was cocaine base and cocaine hydrochloride with a net weight of 884.18 grams.
As a result of his drug dealing described in court documents, Klyvert was indicted by the federal grand jury in the District of the Virgin Islands on April 13, 2017.
The case was investigated by the Federal Bureau of Investigation with assistance from the Drug Enforcement Administration. The case was prosecuted by Assistant U.S. Attorneys Rhonda Williams-Henry and Melissa Ortiz.
Springfield Man Indicted for Bank Fraud ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man was indicted by a federal grand jury today for a bank fraud conspiracy in which he and others used stolen mail to create dozens of counterfeit checks that they attempted to cash at area banks.
Shannon Western Fields, 42, was charged in an 11-count indictment returned by a federal grand jury in Springfield, Mo. Today’s indictment replaces a federal criminal complaint against Fields that was filed on May 2, 2019.
The indictment alleges that Fields participated in a conspiracy to commit bank fraud from February to May 7, 2018, in Greene, Christian, Jasper, and Newton counties. In addition to the conspiracy, Fields is charged with 10 counts of bank fraud.
According to the indictment, Fields and others stole mail from individuals and businesses in order to obtain checks and personal identity information. Conspirators purchased blank check stock and magnetic ink from office supply stores, the indictment says, to create counterfeit checks by using the stolen checks (typically business checks) as templates. They allegedly created checks payable to the conspirators, or used stolen identity information, to create counterfeit identification such as Social Security cards and Missouri driver’s licenses, to cash the checks.
The indictment refers to 11 unidentified co-conspirators who were identified as the payees listed on the forged and counterfeit checks and who, along with Fields, attempted to cash those checks at area financial institutions. Fields and his co-conspirators allegedly attempted to cash 41 counterfeit checks at financial institutions in Springfield and Branson, Mo. Many of those attempts were unsuccessful, according to the indictment.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the U.S. Postal Inspection Service, the Springfield, Mo., Police Department, and the Joplin, Mo., Police Department.
South Bay Resident Sentenced to 45 Months in Prison for Money Laundering and Witness TamperingRead the Press Release
SAN JOSE – Kenneth Tam was sentenced to 45 months in prison for his role in a money laundering and witness tampering scheme related to the sale of stolen computer parts announced United States Attorney David L. Anderson and Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI), Kareem Carter. The sentence was handed down by the Honorable Edward J. Davila, U.S. District Judge.
Tam, 59, formerly of San Jose, pleaded guilty to the charges on February 4, 2019. According to the plea agreement, Tam admitted that from January 2006 through July 2010, he was an employee of a San Francisco Bay Area manufacturer of computer parts. During that period, and until at least the end of 2010, Tam knowingly obtained stolen merchandise from his employer and sold it to his co-conspirator, Cuong Cao Dang. Dang owned a company whose business was overwhelmingly that of buying and selling merchandise stolen from Tam’s employer. Tam admitted that in most instances, he would take cash from Dang as payment for delivery of stolen computer parts. Tam further admitted that he would deposit the proceeds from the stolen equipment into accounts owned by a foreign national who had given Tam power-of-attorney over the accounts.
Tam’s plea agreement describes various aspects of the money-laundering and witness tampering schemes. For example, on February 3, 2010, Dang provided Tam with a check for $500,000 made out to a foreign national whose name Tam was using as the nominal owner of accounts Tam controlled. The check was provided to Tam for payment of previously provided stolen parts, as well as in pre-payment for additional stolen parts that Tam planned to provide. Nevertheless, Tam instructed Dang to write “loan” on the memo line of the check to disguise the true purpose of the payment. Then, after Tam learned there was an investigation into Dang’s company, Tam gave Dang a backdated check for $500,000 to make it appear as though a loan was made and re-paid. Also, Tam provided the foreign national with a false cover story to use if she were contacted by law enforcement agents investigating the accounts.
On October 26, 2017, a federal grand jury handed down a superseding indictment charging Tam with two counts of witness tampering, in violation of 18 U.S.C. § 1512(b)(1), as well as one count each of conspiracy to commit mail fraud, in violation of 18 U.S.C. 1349; money laundering, in violation of 18 U.S.C. § 1956; structuring financial transactions, in violation of 31 U.S.C. § 5324(a)(1) and (a)(3); making a false statement to government agents, in violation of 18 U.S.C. § 1001; and contempt, in violation of 18 U.S.C.§ 401(3). Tam pleaded guilty to the money laundering count and one count of witness tampering. The remaining counts were dismissed.
In addition to the prison term, Judge Davila sentenced Tam to serve two years of supervised release and to pay $3,475,958.14 in restitution. Judge Davila ordered Tam to surrender on or before August 21, 2019, to begin serving his prison term.
On December 11, 2015, Dang pleaded guilty for his role in the scheme and on October 31, 2017, Judge Davila sentenced Dang to 90 months in prison to be followed by three years of supervised release.
Assistant United States Attorneys Amie Rooney and Robert Leach are prosecuting the case with the assistance of Lakisha Holliman and Elise Etter. The prosecution is the result of an investigation by the IRS-CI and the Santa Clara REACT Task Force.
Smiths Grove Businessman Pleads Guilty to Bank FraudRead the Press Release
LOUISVILLE, Ky. – Michael Todd Barrick, aka Kentuckyana Jones, age 56, of Smiths Grove, Kentucky, pleaded guilty to five counts of bank fraud on Monday in United States District Court in Louisville, announced United States Attorney Russell M. Coleman. Barrick also stipulated to a loss of over $1.4 million. Barrick’s codefendants, Roger Hagan, Lorri Hughes, and Garry Hammer, all pleaded guilty in April.
According to Barrick’s plea agreement and other documents filed in the case, in 2007 Barrick and his co-defendant, Roger Hagan, agreed that Hagan would purchase property at 302 Laurel Street in Smiths Grove from Barrick for $575,000, but Barrick would make all loan payments and keep all rental income. Hagan did not have sufficient assets and income to qualify for the loan, but at Barrick’s direction Hagan submitted a fraudulent financial statement to American Bank & Trust (AB&T) that substantially overstated Hagan’s assets and income. Based on these fraudulent representations, AB&T approved Hagan for the loan. Barrick paid Hagan’s $118,977.50 loan down payment, and gave Hagan $21,422.50 as payment for participating in the transaction. The loan went into default in November 2010.
In 2008, Hagan entered a similar agreement with Barrick to purchase 708 Kelly Road in Bowling Green for $300,000. At Barrick’s direction, Hagan again submitted a fraudulent financial statement to PBI Bank. Based on these fraudulent representations, PBI approved Hagan for the loan. After the loan closed Barrick paid Hagan $6,534 for participating in the transaction, and the loan went into default in March 2010.
In 2011, Barrick recruited co-defendant Lorri Hughes to purchase a Wholesale Mattress Warehouse (WMW) from Barrick for $179,000. The WMW was purportedly located at 1700 N. Dixie Highway in Louisville, but in reality a McDonalds restaurant operated at that address, and had been there for many years. At Barrick’s direction, Hughes submitted a fraudulent financial statement to Monticello Bank that substantially overstated her income and assets. Based on these fraudulent representations, Monticello Bank approved the loan, and after the loan closed Barrick paid Hughes $20,000 for participating in the transaction. The loan went into default in February 2012.
In 2010, Barrick recruited T.P. to purchase Som’ Beach Tanning (SBT), a business located at 140 River Place Avenue in Bowling Green, from Barrick. At Barrick’s direction, T.P. submitted a fraudulent financial statement to Monticello Bank that substantially overstated his assets. The loan was supposed to be collateralized by SBT’s equipment, but Barrick had already used that equipment as collateral in a separate December 2009 loan from BB&T Bank, and that BB&T loan was not satisfied. Based on these fraudulent representations, co-defendant Garry Hammer, a Monticello Bank loan officer, approved the loan, and after the loan closed Barrick paid T.P. $5,000 for participating in the transaction, but Barrick never surrendered control of the business.
In late 2010, Barrick recruited R.R. to purchase a Mattress City Wholesale (MCW) from Barrick for $179,880. Under the terms of their agreement, R.R. would own the business on paper and would receive a small percentage of profits, but Barrick would pay the taxes, insurance, and all loan payments, and would receive the majority of profits. The paperwork Barrick submitted reflected that the MCW was located at 2201 Gallatin Road in Madison, Tennessee. In reality, a PetSmart was located at that address, and had been there for many years. Based on these fraudulent representations, Monticello Bank, through co-defendant Garry Hammer, approved the loan. After the loan closed, Barrick paid R.R. $30,000 for participating in the transaction, and used a significant portion of the remaining proceeds to pay off T.P.’s SBT loan. The R.R. loan went into default in February 2012.
Barrick is scheduled to be sentenced by United States District Court Judge Joseph McKinley in Bowling Green on August 15, 2019, at 9:30 a.m., and faces a statutory maximum penalty of 150 years in prison. Roger Hagan, Lorri Hughes and Garry Hammer are all scheduled to be sentenced in Bowling Green on July 9, 2019.
This case is being prosecuted by Assistant United States Attorneys David Weiser and Josh Judd and was investigated by the Federal Deposit Insurance Corporation (FDIC) and the FBI.
Slidell Man Pleads Guilty to Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – NATHANIEL LOUIS, age 45, of New Orleans, Louisiana, pleaded guilty May 2, 2019 before the Honorable Carl J. Barbier to an indictment charging him with violating the Federal Controlled Substances Act, announced U.S. Attorney Peter G. Strasser.
According to the court records, LOUIS conspired to possess with the intent to distribute and to distribute a kilogram or more of a mixture or substance containing a detectable amount of heroin. LOUIS admitted to being captured on recorded calls as part of a lengthy Title III wire intercept.
Sentencing is scheduled for August 22, 2019. LOUIS faces a mandatory minimum term of imprisonment of at least 10 years up to a maximum of life, a fine of $10,000,000 and at least five years of supervised release following any term of imprisonment.
This case was investigated by Special Agents of the Drug Enforcement Administration (DEA). The prosecution is being handled by Assistant United States Attorney David Haller.
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Shubuta Woman Sentenced for Lying in Attempt to Illegally Acquire FirearmRead the Press Release
Jackson, Miss. – Tamesha Lewis, 36, of Shubuta, was sentenced today by U.S. District Judge Henry T. Wingate to 14 months in federal prison, followed by 3 years of supervised release, for making a false statement to a licensed firearms dealer in connection with acquiring or purchasing a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Lewis was also ordered to pay a $1,500.00 fine.
On March 21, 2018, Lewis attempted to purchase a gun from a firearm dealer in Meridian. When a person purchases a firearm, they are required to truthfully provide certain information on an ATF form in connection with such a purchase, including whether that individual has ever been committed to a mental institution. In this case, Lewis provided false information by indicating that she had never been previously committed to a mental institution.
On October 24, 2018, Lewis was charged in a federal indictment with making a false statement to a licensed firearms dealer in an attempt to purchase a firearm. She pled guilty before Judge Wingate on February 6, 2019.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Bert Carraway.
Schuylkill County Man Sentenced to 105 Months’ Imprisonment for Heroin and Methamphetamine TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Derek Mountz, age 35, of Schuylkill Haven, Pennsylvania, was sentenced on May 6, 2019, to 105 months’ imprisonment followed by four years on supervised release, by Senior U.S. District Court Judge A. Richard Caputo, for participating in a drug trafficking conspiracy that distributed heroin and methamphetamine in the Schuylkill County area in 2016.
According to United States Attorney David J. Freed, Mountz previously pleaded guilty to conspiracy to distribute more than 100 grams of heroin and more than 50 grams of methamphetamine. One hundred grams of heroin is equivalent to approximately 4,000 retail bags of heroin.
The matter was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and local police in Schuylkill County. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Rochester, Indiana Man Sentenced to 77 Months in PrisonRead the Press Release
SOUTH BEND – Travis Norman, age 30, of Rochester, Indiana, was sentenced before United States District Court Judge Robert L. Miller upon his plea of guilty to being a felon in possession of a firearm, announced U. S. Attorney Thomas L. Kirsch II.
Norman was sentenced to 77 months in prison followed by 3 years of supervised release.
According to documents in this case, on October 4, 2018, Rochester Police were dispatched to a local hotel in response to a complaint. They located Travis Norman in a hotel room along with seven grams of methamphetamine, three grams of heroin, drug paraphernalia, a large amount of United States currency, and a loaded Smith and Wesson handgun. At the time of this arrest, Mr. Norman had been recently convicted of Dealing Methamphetamine in Marshall County.
The case was investigated by the ATF with the assistance of the Rochester Police Department and was handled by Assistant United States Attorney Kimberly Schultz.
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Rochester Man Pleads Guilty for His Role in Drug ConspiracyRead 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 Terrence Morgan, aka Young, 24, of Rochester, NY, pleaded guilty, before Chief U.S. District Judge Frank P. Geraci, Jr. to conspiracy to possess with intent to distribute, and to distribute, 40 grams or more of fentanyl, 28 grams or more of crack cocaine, cocaine, and heroin. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney Matthew T. McGrath, who is handling the case, stated that between April 2018 and August 7, 2018, the defendant was a member of a drug trafficking organization led by co-conspirators Michael Wyatt and Andre Cunningham. During the conspiracy, Wyatt would obtain quantities of fentanyl, cocaine and heroin from various suppliers, including but not limited to Ulises Vargas, who in turn was supplied by Clifford Billins, among others. After obtaining a supply, Wyatt and Cunningham supervised and directed the distribution and sale of those controlled substances to individual drug users, at various drug houses maintained for that purpose in the City of Rochester. The drug houses were operated by members of the conspiracy, including Morgan. The locations of the drug houses included 218 Emerson Street and 131 Saratoga Avenue.
At the direction of Michael Wyatt and/or Andre Cunningham, the defendant was responsible for processing, breaking down, and re-packaging the controlled substances into smaller quantities to be sold to individual drug users. Morgan was also responsible for selling the controlled substances to individual buyers. The proceeds from these individual sales were collected from the defendant and others by Michael Wyatt and/or Andre Cunningham at regular intervals. Morgan was compensated for his role in the conspiracy.
In addition, between July 2018 and August 7, 2018, the defendant possessed a firearm in connection with the narcotics conspiracy.
Michael Wyatt, Andre Cunningham, and Ulises Vargas were previously convicted and are awaiting sentencing. Charges remain pending against Clifford Billins. 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.
Today’s plea is the result of an investigation by Bureau of Alcohol, Tobacco, Firearms & Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley; and the Rochester Police Department, under the direction of Chief La’Ron D. Singletary.
Sentencing is scheduled for August 5, 2019, at 3:30 p.m. before Judge Geraci.
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Robert Edward Kinsler Sentenced to Serve 151 Months in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
GREENEVILLE, Tenn. – On May 6, 2019, Robert Edward Kinsler, 49, of Bean Station, Tennessee, was sentenced by the Honorable Pamela L. Reeves, Chief U.S. District Court Judge, to serve 151 months in federal prison.
Kinsler pleaded guilty in February 2019 to conspiring with codefendants Stephen Earl Mayes, 62, of Morristown Tennessee; Wendy Kaye Warf, 40, of Morristown, Tennessee; Jacob Christian Carter, 33, of Rogersville, Tennessee; and others, to distribute methamphetamine.
Carter is scheduled to be sentenced on May 13, 2019. Sentencing for Warf is set for July 15, 2019. Sentencing for Mayes is set for June 20, 2019.
Agencies involved in this investigation included the Hamblen County Sheriff’s Department and the FBI. Assistant U.S. Attorney Robert Reeves represented the United States in court proceedings.
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Repeat Columbia County Sex Offender Found Guilty of Sexually Exploiting a ChildRead the Press Release
SYRACUSE, NEW YORK – John G. Stroming, age 60, of Stuyvesant, New York, was found guilty today of sexual exploitation of a child following a 2-day jury trial.
The announcement was made by United States Attorney Grant C. Jaquith; James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and New York State Police Acting Superintendent Keith M. Corlett.
The evidence at trial showed that Stroming video-recorded himself sexually abusing a 19-month-old child and that he also possessed child pornography involving other children. At the time of the crimes, Stroming was required to register as a sex offender. He has sex offense convictions including for rape in the second degree (2011) and promoting an obscene sexual performance by a child (1999).
Sentencing is set for September 9, 2019 before Senior United States District Judge Norman A. Mordue. Stroming faces at least 35 years in prison. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the New York State Police and the FBI, and is being prosecuted by Assistant U.S. Attorneys Katherine Kopita and Shira C. Hoffman.
Rashan Michel Pleads Guilty in Manhattan Federal Court to Bribing Former Division I Men’s Basketball Coach Chuck PersonRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that RASHAN MICHEL, the owner of a bespoke clothing business in Atlanta, Georgia, pled guilty in Manhattan federal court today to agreeing to facilitate bribes from a financial adviser to Chuck Connors Person (“Person”), a former Auburn University men’s basketball coach. The bribes were provided in exchange for Person using his influence over Auburn basketball players to retain MICHEL’s services and the services of the financial adviser paying the bribes. MICHEL pled guilty before U.S. District Judge Loretta A. Preska.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As he admitted today, Rashan Michel was paid to facilitate bribe payments from a financial adviser to college basketball coaches. His corruption of the system was significant but, sadly, far from unique. Indeed, in the last year this Office has convicted nine defendants in connection with fraud or bribery in the world of college basketball. We will continue to pursue those who offer or take bribes to influence student-athletes without regard to their interest.”
According to the Complaint, the Indictment, statements made in court, and publicly available documents:
In the fall of 2016, MICHEL, the founder and operator of a clothing store that specialized in making bespoke suits for professional athletes, met a financial adviser and business manager who, unbeknownst to MICHEL, was providing information to law enforcement (“CW-1”). MICHEL told CW-1 that MICHEL could introduce CW-1 to several college basketball coaches, including Person, who was then a men’s basketball coach at Auburn University, who would be willing to accept bribes from CW-1. MICHEL and CW-1 agreed to offer such bribes in return for the coaches’ agreeing to exert their influence over student-athletes to retain the services of Michel and CW-1 once the student-athletes entered the National Basketball Association (“NBA”).
In November 2016, MICHEL, who had a preexisting relationship with Person, arranged a meeting in Auburn, Alabama, to introduce CW-1 to Person and to broker the arrangement between CW-1 and Person whereby CW-1 would provide bribes to Person. At that meeting, in exchange for bribes, Person agreed to exert his influence over certain student-athletes Person coached at Auburn University to retain the services of CW-1 and MICHEL once those players entered the NBA. Over the next several months, in exchange for the bribes described above, Person did, in fact, arrange a meeting among CW-1, MICHEL and an Auburn student-athlete in Manhattan. At that meeting, Person falsely touted CW-1’s qualifications as a financial adviser and business manager without disclosing that Person was, in fact, being bribed to recommend CW-1 to the student-athlete. In connection with the bribery scheme, Person also steered the parent of a second student-athlete to CW-1.
In addition to brokering the bribery scheme with Person, MICHEL also solicited and received for himself tens of thousands of dollars in payments from CW-1 in exchange for introducing CW-1 to Person, and for promising to introduce CW-1 to other basketball coaches at NCAA Division I universities to engage in a similar bribery arrangement. Ultimately, MICHEL did introduce one member of a university athletics department to CW-1 for the purpose of engaging in a similar scheme. Working with MICHEL, CW-1 made payments to that individual, who in turn attempted to steer the parent of a student-athlete to CW-1.
In all, CW-1 paid more than $91,500 in bribes to Person, and paid MICHEL $24,000 for his role in the scheme.
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MICHEL, 44, of Atlanta, Georgia, pled guilty to one count of conspiracy to commit bribery. As a condition of his plea, MICHEL agreed to forfeit $24,000. The charge carries a maximum term of five years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. Sentencing is scheduled for September 18, 2019, before Judge Preska.
Mr. Berman praised the work of the Federal Bureau of Investigation and the Special Agents of the United States Attorney’s Office for the Southern District of New York.
The case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Robert L. Boone, Aline R. Flodr, Noah Solowiejczyk, and Eli J. Mark are in charge of the prosecution.
Ramsey County Man Indicted for Sexually Exploiting Children in the PhilippinesRead the Press Release
United States Attorney Erica H. MacDonald today announced a fourteen-count federal indictment charging ALAN DENNIS WOLFF, 56, with sexually exploiting children in the Philippines. WOLFF was initially charged in a criminal complaint on April 5, 2019, and was indicted on May 6, 2019. He is currently in custody in the Sherburne County Jail pending further court proceedings.
According to the allegations in the indictment and the criminal complaint, from January 2013 through February 2019, WOLFF used various Facebook accounts to communicate with other Facebook accounts purporting to belong to minor girls, some as young as 13 years old, in the Philippines. WOLFF repeatedly engaged the girls in graphic, sexually explicit conversations, sometimes telling the girls that he loved them, wanted to marry them, and wanted to meet them during his next trip to the Philippines. WOLFF repeatedly asked the minor girls to send him naked images or recordings and, on several occasions, he sent the girls images and recordings of himself that were sexual in nature. WOLFF also sent money via MoneyGram to the Philippines in exchange for the images and recordings. WOLFF traveled to the Philippines at least three times.
This case is the result of an investigation conducted by the FBI.
This case is being prosecuted by Assistant U.S. Attorney Carol M. Kayser.
Defendant Information:
ALAN DENNIS WOLFF, 56
Ramsey County, Minn.
Charges:
- Sexual exploitation of children, 12 counts
- Transfer of obscene material to minors, 2 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Pittsburgh Felon Sentenced to 3 Years in Prison for Illegally Possessing a Handgun at Monroeville MallRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to three years and one month (37 months) in prison and three years’ supervised release on his conviction of being a felon in possession of a handgun, United States Attorney Scott W. Brady announced today.
United States District Judge Donetta W. Ambrose imposed the sentence on Christian Erik Ralph, 24.
According to information presented to the court, on December 26, 2017, security guards at the Monroeville Mall saw Ralph in possession of a handgun near one of the mall’s stores. The officer asked Ralph whether he had a conceal/carry permit for the weapon. Ralph did not reply and began to walk away. The Monroeville Police Department was provided with a description of Ralph and dispatched a unit. The police encountered Ralph near one of the mall’s entrances. Ralph admitted to the officers that he was armed and was placed under arrest. In 2016, Ralph had been convicted in state court of possession with intent to deliver a controlled substance and for carrying a firearm without a license, both of which are felonies. Federal law Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition.
Assistant United States Attorney Michael Leo Ivory prosecuted this case on behalf of the government.
United States Attorney Brady commended the Monroeville Mall Security Department, the Monroeville Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Ralph.
The case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Pharmacists Plead Guilty to Federal Drug Trafficking and Fraud ChargesRead the Press Release
John Shedd and Terry Tooley Admitted Filling Controlled Substance Prescriptions They Knew Were Written For No Legitimate Medical Purpose
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that John Shedd, 71, of Albion, Michigan, and Terry Tooley, 64, of Spring Arbor, Michigan, pled guilty to conspiracy to distribute prescription drug controlled substances, and conspiracy to commit healthcare fraud. Shedd and Tooley, who formerly owned Parks Drug Store in Albion, Michigan, face up to five years in federal prison for their crimes. As part of their guilty pleas, they also agreed to permanently surrender their DEA pharmacy registrations, forfeit $1.2 million to the United States, and pay $500,000 in restitution to the healthcare benefit programs they defrauded.
Shedd and Tooley admitted that they filled opioid prescriptions written by former Albion doctor Horace J. Davis, even though they knew those prescriptions had been written for no legitimate medical purpose. Dr. Davis was convicted in 2017 of federal drug trafficking crimes and healthcare fraud. Shedd and Tooley also admitted they conspired to bill Medicare, Medicaid, and Blue Cross Blue Shield of Michigan for prescriptions that were never written, and forged documents in connection with their false healthcare billings.
"We are committed to fighting the opioid epidemic, and will prosecute the doctors, nurses, pharmacists, and other healthcare providers who feed the epidemic by writing and filling opioid prescriptions for no legitimate medical purpose," U.S. Attorney Birge said.
Timothy Plancon, Special Agent in Charge of the DEA’s Detroit Field Division said, "Today’s guilty plea exemplifies DEA’s determination to combat the troubling prescription drug and opiate abuse problem currently plaguing this country."
Manny Muriel, Special Agent in Charge of Detroit’s IRS Criminal Investigation, stated, "Shedd and Tooley submitted bogus claims to Medicare, Medicaid and others, resulting in hundreds of thousands of dollars going into their own pockets. The IRS is aggressively pursuing unscrupulous medical professionals that defraud American taxpayers."
The investigation was conducted by the Albion Department of Public Safety, Calhoun County Sheriff’s Office, DEA, and IRS Criminal Investigations. Assistant United States Attorney Clay Stiffler prosecuted the case.
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Pennsylvania Man Sentenced to Prison for Tax EvasionRead the Press Release
An Aliquippa, Pennsylvania, man was sentenced to 18 months in prison for tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to evidence presented in open court, William Rains failed to timely file his individual income tax returns for tax years 1997, 1999, and 2003-2006. Rains also filed false returns for 2000 and 2001, reporting zero income when he in fact he had earned income in those years. The Internal Revenue Service (IRS) assessed over $200,000 in taxes against Rains for all of these years, as well as for tax year 2008.
From July 2005 through December 2016, Rains evaded the payment of his taxes and sought to thwart IRS collection efforts. He concealed his income and assets from the IRS by using multiple bank accounts, entities, a nominee, and a false IRS financial form. He also caused his wife to move money into accounts in her name and to purchase bank checks to prevent the IRS from collecting taxes he owed.
U.S. District Court Judge Donetta W. Ambrose, sitting in Pittsburgh, Pennsylvania, also ordered Rains to serve three years of supervised release and to pay $207,634 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Shawn Noud and Christopher O’Donnell of the Tax Division, who prosecuted the case.
Passaic County, New Jersey, Man Convicted in Heroin Trafficking ConspiracyRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man was convicted today on charges that he conspired to distribute at least one kilogram of heroin, U.S. Attorney Craig Carpenito announced.
Yasmil Minaya, a/k/a “Animal,” 33, was convicted on both counts of the indictment against him: one count of conspiracy to distribute one kilogram or more of heroin and one count of distribution and possession with intent to distribute one kilogram or more of heroin. Minaya was convicted following a two-week trial before U.S. District Judge Kevin McNulty in Newark federal court. The jury deliberated one day before returning the guilty verdicts.
According to documents filed in this case and the evidence at trial:
Law enforcement officials learned that Minaya and his co-defendants were serving as New Jersey and New York area distributors for a drug trafficking organization operating in the Dominican Republic, Mexico and elsewhere. The organization’s narcotics were usually transported to this area via truck and were paid for by the defendants before being sold on the street. The drug organization has been linked to several multiple-kilogram seizures of heroin, including a seizure of approximately two kilograms of heroin in March 2015, four kilograms in November 2015, and 10 kilograms in January 2017.
The counts on which Minaya was convicted carry a mandatory minimum sentence of 10 years imprisonment, a maximum sentence of life imprisonment, and a maximum fine of $10 million per count. Sentencing is scheduled for Sept. 4, 2019.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
U.S. Attorney Carpenito credited special agents with the DEA, under the direction of Special Agent in Charge Susan A. Gibson, and officers with the N.J. State Police, Trafficking North Unit, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s conviction.
The government is represented by Assistant U.S. Attorney Melissa Wangenheim of the OCDETF/Narcotics Unit in Newark and U.S. Attorney Carpenito.
Parent Charged in College Admission Case Pleads GuiltyRead the Press Release
BOSTON – A California parent charged in the college admissions case pleaded guilty today in federal court in Boston in connection with paying $400,000 to facilitate his child’s admission to Georgetown University.
Stephen Semprevivo, 53, of Los Angeles, Calif., pleaded guilty to one count of conspiracy to commit mail fraud and honest services mail fraud. U.S. District Court Judge Indira Talwani scheduled sentencing for Sept. 11, 2019.
As set forth in the charging documents, Semprevivo paid $400,000 to facilitate his son’s admission to Georgetown University as a purported tennis recruit.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
The charge of conspiracy to commit mail fraud and honest services mail fraud provides for a maximum sentence of 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. According to the terms of the plea agreement, the government will recommend a sentence of 18 months in prison, one year of supervised release, and a fine of $95,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright, and Kristen A. Kearney of Lelling’s Securities and Financial Fraud Unit are prosecuting the case.
The details contained in the court documents are allegations and the remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Owners of Colorado Biomass Plant Pay $2.6 Million to Resolve Allegations They Defrauded A Renewable Energy ProgramRead the Press Release
DENVER – Three companies and two individuals have agreed to pay a total of $2.6 million to resolve allegations that they violated the False Claims Act by obtaining reimbursements from a federal renewable energy program to pay for costs they never actually incurred, U.S. Attorney Jason Dunn announced today.
Under a program created by Congress in the American Recovery and Reinvestment Act of 2009, companies that place into service “renewable energy properties,” including biomass power plants, can apply to get reimbursements for up to 30 percent of the costs they incurred in placing those properties into service. Companies submitted applications for these payments to the National Renewable Energy Laboratory (“NREL”) in Golden, Colorado. The funds for the reimbursement came from the U.S. Treasury. Those funds were set aside under section 1603 of the 2009 Act, under a program commonly known in the renewable energy industry as the “1603 Program.”
The resolution at issue involves three companies that developed a biomass power plant in Gypsum, Colorado. The companies were Eagle Valley Clean Energy, LLC (“Eagle Valley”), its parent company Evergreen Clean Energy Corporation (the “Corporation”), and Evergreen Clean Energy, LLC (“Evergreen”). Dean Rostrom and Kendric Wait were principals and had ownership interests in the three corporate entities.
The United States contends that in 2014, Eagle Valley applied to the 1603 Program, seeking reimbursement for its investment in the Gypsum plant. As part of its application, Eagle Valley contracted with Evergreen to perform “development services.” The contract entitled Evergreen to a fee based on a percentage of the cost of building the plant. Based on this contract, Treasury reimbursed Eagle Valley 30 percent of the costs associated with the fee Eagle Valley would pay Evergreen under the development services agreement. After receiving these funds from Treasury, Eagle Valley did not pay the fee. Instead, it wrote off the development fee owed to Evergreen, and Evergreen never requested or demanded payment of the fees Eagle Valley owed Evergreen under the contract. Because the fee was written off, Treasury, in effect, reimbursed Eagle Valley for 30% of a payment Eagle Valley never made. Once Eagle Valley decided that it would not be paying the Evergreen the fee for the development services, Eagle Valley was required to notify Treasury and return the money it received. But Eagle Valley never notified Treasury, and the United States alleged that this conduct violated the False Claims Act.
Under the terms of the settlement agreement, Eagle Valley paid $2,350,000, and Dean Rostrom and Kendric Wait each paid $125,000 to the United States.
“This program had important goals: jump-starting the economy during the Great Recession, and helping companies that took real steps to move our renewable energy industry forward. Taxpayers paid for that program. Companies and individuals who get taxpayer money from government programs like this one, but don’t do what they promised to do, will be held to account and will face consequences,” said U.S. Attorney Jason Dunn.
Treasury Inspector General Eric M. Thorson thanked the U.S. Attorney’s Office and the U.S. Department of the Treasury for their hard work and partnership on this case and previous cases involving the American Recovery and Reinvestment Act. He stated, “this settlement reinforces the commitment of the Treasury OIG to pursue cases against those who defraud the U.S. Treasury Department and misuse public funds.”
The claims resolved by this settlement are allegations only.
This matter was investigated by the U.S. Department of the Treasury’s Office of Inspector General. It was handled by Assistant U.S. Attorney Zeyen Wu.
Owner of Mike’s Famous Roast Beef & Pizza Pleads Guilty to Failing to Report $1.9 Million in Business ReceiptsRead the Press Release
BOSTON – The owner of Mike’s Famous Roast Beef & Pizza in North Reading pleaded guilty today in federal court in Boston to committing tax fraud by failing to report approximately $1.9 million in business receipts.
Emanuel Panousos, a/k/a Mike Panousos, 43, of Peabody, pleaded guilty to two counts of aiding and assisting in filing false corporate tax returns. U.S. Senior District Court Judge Douglas P. Woodlock scheduled sentencing for Aug. 15, 2019.
Panousos is the sole owner of Mike’s Famous Roast Beef & Pizza in North Reading. From 2013 through 2015, Panousos skimmed business cash receipts totaling about $1.9 million, and failed to report those cash receipts to his tax preparer or on the restaurant’s corporate tax returns. As a result, Panousos avoided paying both corporate and personal taxes totaling approximately $387,180 during those years.
The charge of aiding and assisting the filing of false tax returns provides for a sentence of no greater than three years in prison, one year of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Kristina O'Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement. Assistant U.S. Attorney Mark J. Balthazard of Lelling’s Securities and Financial Fraud Unit is prosecuting the case.
Orange Park Man Charged with Production of Child PornographyRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Michael Glenn Chope, (55, Orange Park) with four counts of production of child pornography. If convicted, Chope faces a maximum penalty of 30 years in federal prison for each count. Chope has been ordered detained pending trial.
According to court documents, on March 13, 2019, detectives from the Clay County Sheriff’s Office met with Chope regarding the investigation into a cyber-tip from the National Center for Missing and Exploited Children related to child pornography. Chope confirmed his email address and telephone number were the same ones identified during the investigation and stated he was the only one to use his electronics and computers. Chope also admitted to viewing and possessing child pornography, including on several devices in his home. Detectives seized multiple electronic devices from Chope’s home and analyzed their contents. The detectives located numerous images produced by Chope depicting him sexually abusing and exploiting a child to whom he had access. Following Clay County Sheriff’s Office’s contact with Chope, he fled the state. Chope was arrested on April 3, 2019, in Rowlett, Texas.
Chope was originally charged by federal complaint for a single count of production of child pornography. He was later indicted for four counts of production of child pornography that had been created between approximately May 2015 and February 2018.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Clay County Sheriff’s Office and Homeland Security Investigations. It is being prosecuted by Assistant United States Attorneys Ashley Washington and Kelly Karase.
It is another case 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.
Oilman’s Fraud Leads to Six Years in PrisonRead the Press Release
OKLAHOMA CITY – KEVIN WIECK, of Cromwell, Oklahoma, has been sentenced to six years in prison for wire fraud and money laundering, announced First Assistant U.S. Attorney Robert J. Troester.
On July 3, 2018, a federal grand jury returned a fifteen-count superseding indictment against Wieck, who owned and operated Wieck Oil Company, LLC. According to the indictment, Wieck’s fraudulent scheme involved two types of oil wells: three "vertical" wells and a "horizontal" well. Wieck sold working interests in the vertical wells that supposedly guaranteed investors percentages of oil revenue. He allegedly kept the majority of the money for himself rather than paying investors. Wieck sold and attempted to sell percentages of his supposed ownership interest in the horizontal well, when he in fact never actually owned—and therefore had no right to sell—any portion of that well. The five money laundering counts involved transfers of criminal proceeds in amounts larger than $10,000 between bank accounts. According to the indictment, Wieck fled to Mexico around late August 2014. He has been in the custody of the U.S. Marshals Service since April 11, 2018.
Trial began on September 11, 2018. Eight investors from Tulsa, Edmond, Michigan, Illinois, and elsewhere testified about Wieck’s false promises and misrepresentations in connection with the vertical wells. These investors had invested cash, co-signed loans with Wieck, or provided in-kind services such as drilling, road work, and construction on the wells at reduced rates. Two investors testified that Wieck solicited investments in the horizontal well. A local energy company executive who later assumed control of the three vertical wells confirmed that Wieck had a right to participate in the horizontal well but had never paid to exercise that right. He further explained that Wieck filed oil and gas assignments late and failed to secure division orders to pay investors directly. Instead, he exercised a "quick pay" option, which funneled all revenue into his own bank accounts.
An FBI forensic accountant confirmed during trial that Wieck received more than $1.17 million in revenue and—even after production and operating costs—pocketed at least $600,000, in addition to the value of investors’ in-kind contributions. Wieck’s ex-wife corroborated that she and Wieck splurged on hotel stays, vacations, and large purchases when investments came in.
After three days of testimony, a jury deliberated for approximately two hours before returning guilty verdicts on all counts on September 14.
On May 6, 2019, Chief U.S. District Judge Joe Heaton sentenced Wieck to 72 months in prison, or six years, to be followed by three years of supervised release. The court also ordered him to pay $358,256.92 in restitution to eight individual investors throughout the United States, as well as $1,500 in special assessments.
This case is the result of an investigation by the FBI Oklahoma City Division. Assistant U.S. Attorneys Julia E. Barry and William E. Farrior prosecuted the case.
Reference is made to court filings for further information.
Ohio man indicted for firearms chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Kenneth Tribett, of Bellaire, Ohio, was indicted by a federal grand today on a firearms charge, United States Attorney Bill Powell announced.
Tribett, age 46, was indicted on two counts of “Unlawful Possession of a Firearm.” Tribett, having been previously convicted of a felony, is accused of having a .9mm pistol, a 6.35 caliber pistol, and a 22 caliber revolver in January and March 2019 in Ohio County.
Tribett faces up to 10 years incarceration and a fine of up to $250,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Stephen L. Vogrin is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Wheeling Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
New Orleans Man Sentenced for Making False Statements to a Financial InstitutionRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that PATRICK HEALEY, age 34, of New Orleans, and a former employee of an undisclosed entity, ABC Homes, LLC, located in St. Bernard Parish, was sentenced May 1, 2019 for his role in making false statements to a financial institution.
According to court documents, beginning in or around October 24, 2008 and continuing to on or about May 31, 2009, HEALEY, along with co-defendants JARED CASTELLAW and VALERIE SCHONES made false statements to the Federal Housing Administration (“FHA”) in order to assist low-income borrowers in qualifying for FHA insured loans for which they would not otherwise have qualified. In total, due to the acts of the defendants, the FHA suffered a loss in excess of $852,415.
HEALEY was sentenced to time served, supervised release of 5 years, a special assessment of $100, and ordered to pay restitution in the amount of $852,415.
U.S. Attorney Strasser praised the work of the Department of Housing and Urban Development, Office of Inspector General and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Sharan E. Lieberman and Edward J. Rivera.
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Milton Man Sentenced for Sex TraffickingRead the Press Release
BOSTON – A Milton man was sentenced today in federal court in Boston for federal sex trafficking charges.
Duhamel Cassagnol, 31, was sentenced by U.S. District Court Judge Allison D. Burroughs to 17 years and three months in prison, five years of supervised release, and was ordered to pay restitution of approximately $13,249 to a group of four victims. In September 2018, Cassagnol pleaded guilty to sex trafficking by force, fraud, or coercion; engaging in a conspiracy to commit sex trafficking; and transporting three individuals for prostitution. In December 2017, Cassagnol was arrested along with Geneiva Whaley, 24, of Connecticut. In May 2018, Whaley pleaded guilty to one count of transportation of an individual for prostitution. In October 2018, she was sentenced to 12 months in prison and five years of supervised release.
Between approximately July 2014 and February 2016, Cassagnol worked with Whaley to prostitute at least four victims. Cassagnol and Whaley advertised the victims using online ad‑posting sites, including Backpage.com, and housed the victims in hotel rooms reserved in Whaley’s name in Massachusetts, Connecticut, New York and Florida. Using online advertisements, Cassagnol and Whaley attracted sex-for-a-fee clients whom they directed to the hotel rooms that housed their victims. Those victims generally had little or no control over what acts they were required to engage in or what fee would be charged for those acts. After the clients left, Cassagnol or Whaley collected the full proceeds from the victims, leaving the victims dependent on Cassagnol and Whaley for food and shelter.
Cassagnol and Whaley’s victims were all addicted to drugs, usually heroin, and to keep them compliant, Cassagnol and Whaley provided them with drugs in exchange for the income the women earned through prostitution. The victims were only entitled to drugs if they generated income. With three of the victims, Cassagnol was sometimes violent, and he threatened violence against all four. The violence included beating the victims and, in at least one instance, forcing a victim to use drugs against her will.
The charge of sex trafficking through force, fraud, or coercion provides for a sentence of no less than 15 years and up to life in prison, no less than five years and up to a lifetime of supervised release, and a fine of up to $250,000. The charge of conspiracy to commit sex trafficking provides for a sentence of up to life in prison, no less than five years and up to a lifetime of supervised release, and a fine of up to $250,000. The charge of transporting an individual for prostitution provides for a sentence of up to 10 years in prison, no less than five years and up to a lifetime of supervised release, and a fine of up to $250,000. Each count also provides for mandatory restitution and potential forfeiture. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Peter C. Fitzhugh, Special Agent in Charge of the Homeland Security Investigations in Boston, made the announcement today. Assistance with the investigation was provided by the Massachusetts State Police, Lexington and Needham Police Departments, and Vernon (Connecticut) Police Department. Assistant U.S. Attorney Brian A. Pérez-Daple of Lelling’s Civil Rights Enforcement Team is prosecuting the case.
Mexican National Convicted of Illegal Reentry for a Third TimeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that FABIOLA BASTIAN MOJICA, 38, a citizen of Mexico most recently residing in Stamford, pleaded guilty today in Hartford federal court to reentry of a removed alien. It is Bastian Mojica’s third conviction for illegal reentry.
According to court documents and statements made in court, in May 2003, Bastian Mojica, who at the time was a lawful permanent resident of the U.S., was convicted in Stamford superior court of possession of a hallucinogen/marijuana. Bastian Mojica’s lawful permanent residence status was revoked and, in November 2003, she was removed to Mexico.
In October 2005, Bastian Mojica was arrested by Greenwich Police and was subsequently convicted in state court of evading responsibility resulting in injury/property damage, and possession of marijuana. She was also charged and convicted in federal court of reentry of a removed alien. In January 2008, Bastian Mojica was removed to Mexico.
In July 2008, Bastian Mojica was arrested in Stamford. She was again removed to Mexico in August 2008.
In January 2010, Bastian Mojica was apprehended by the U.S. Border Patrol in Columbus, New Mexico. She was subsequently charged in the District of New Mexico with illegal reentry of a removed alien, and with violating the conditions of her supervised release related to her prior conviction for illegal reentry. She was convicted of both offenses and, following the completion of her sentence, was removed to Mexico in April 2011.
On October 23, 2018, Bastian Mojica was arrested by Stamford Police for a motor vehicle violation, and was subsequently charged with failure to appear. On March 7, 2019, after her identity was confirmed through a fingerprint analysis, she was arrested on a federal criminal complaint charging her with illegal reentry. She has been detained since her federal arrest.
Bastian Mojica is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on July 17, 2019, at which time she faces a maximum term of imprisonment of 10 years.
The investigation was conducted by the Department of Homeland Security, Immigration and Customs Enforcement. The case is being prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Mexican Drug Trafficker Sentenced to 10 Years in PrisonRead the Press Release
NORFOLK, Va. – A Mexican man was sentenced today to 10 years in prison for conspiracy to distribute and possess with intent to distribute 5 kilograms or more of cocaine.
According to court documents, Ulises Garcia-Razo, 39, flew from Mexico to Norfolk on two occasions in June and July of 2018 to collect over $500,000 in narcotics proceeds and to retrieve multiple kilograms of unsold cocaine that had previously been shipped to Virginia. Garcia-Razo acted on behalf of a large-scale cocaine trafficking organization based in Mexico and California whose members orchestrated the delivery of at least two large shipments of cocaine in the spring and early summer of 2018. The cocaine was shipped cross-country by truck and delivered to a Public Storage business in Virginia Beach disguised as hot-air balloon equipment. In July 2018, Garcia-Razo and other co-defendants were arrested at a local hotel with 8 kilograms of cocaine and a large amount of cash after FBI, DEA, and Norfolk Police set up a successful sting operation.
The case was investigated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Goodfellas. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, and Larry D. Boone, Chief of Norfolk Police, made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar. Assistant U.S. Attorney Sherrie S. Capotosto prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-156.
Members of Methamphetamine Distribution Organization SentencedRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton has sentenced James Kamisky (54, Augusta, GA) to 20 years in federal prison for his role in a drug conspiracy involving the distribution of large quantities of methamphetamine in Orlando. In addition, Jada Thomas (28, Orlando) was sentenced to 11 years and 8 months in federal prison for her participation in the drug conspiracy and for possessing a firearm in furtherance of a drug-trafficking crime, and Dejah Gooding (23, Snellville, GA) was sentenced to 9 years and 2 months’ imprisonment for her participation in the drug conspiracy.
Kamisky had pleaded guilty on January 15, 2019. Thomas and Gooding had pleaded guilty on January 22, 2019, and December 18, 2018, respectively.
According to court documents, in November 2018, Kamisky possessed with the intent to distribute more than 2 kilograms of methamphetamine. Kamisky provided Thomas and Gooding with approximately 1.4 kilograms of this methamphetamine, which they attempted to sell to a Drug Enforcement Administration informant on November 13, 2018, at an Orlando resort. At the time of the attempted sale, Thomas was in possession of a loaded firearm. Later in the day on November 13, 2018, Kamisky attempted to deliver more methamphetamine to Thomas and Gooding, at which time law enforcement agents arrested him after a brief vehicle pursuit.
“The Drug Enforcement Administration is committed to investigating those individuals or organizations that are distributing dangerous drugs, committing acts of violence, and fueling the addiction that destroys communities and families,” said Assistant Special Agent in Charge Marcus R. Anderson.
This case was investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Florida Highway Patrol, the Seminole County Sheriff’s Office, the Brevard County Sheriff’s Office, and the Longwood Police Department. It was prosecuted by Assistant United States Attorney Chauncey A. Bratt.
MS-13 Gang Member Sentenced to More than 25 Years in Prison for Attempted Murder that Left a 16-Year-Old ParalyzedRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Kevin Paniagua, a member of the Centrales Locos Salvatruchas (CLS) clique of La Mara Salvatrucha, also known as MS-13, a transnational criminal organization, was sentenced by United States District Judge Roslynn R. Mauskopf to 308 months in prison for the October 23, 2016 attempted murder of a 16-year-old victim suspected of being a member of the rival 18th Street gang. Paniagua pleaded guilty to the charges in June 2018.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the sentence.
“With today’s sentence, Paniagua has been held responsible for wanton violence he committed on behalf of of the MS-13 gang that left a teenager paralyzed,” stated United States Attorney Donoghue. “The Department of Justice and its law enforcement partners will continue working tirelessly to eradicate the MS-13 and all gangs that threaten the safety of our communities.”
“These gangs require violence of new recruits, and Mr. Paniagua did all he could to live up to their dangerous and warped initiation process. Our communities get caught in the middle of these deadly attacks and fear the harm that could come from stray bullets intended for a rival gang,” stated FBI Assistant Director-in-Charge Sweeney. “The FBI New York Metro Safe Streets Task Force won't rest until we stop these criminal organizations from filling their ranks with members willing to kill for acceptance.”
“Gang violence will not be tolerated, and the message of this sentencing is clear – the NYPD and our law enforcement partners will hold responsible any violent gang members such as MS-13 for their criminal acts. I thank our colleagues at the Eastern District and the FBI for their unceasing professionalism and dedicated work in removing from our streets anyone who would commit crime and disorder,” stated NYPD Commissioner O’Neill.
In the early morning hours of October 23, 2016, Paniagua and his co-conspirators confronted the victim in Jamaica, Queens. There, they punched and kicked him, and Paniagua pulled out a handgun and shot the victim in the face. Paniagua then attempted to shoot the victim a second time as he lay on the sidewalk, but the gun jammed. The victim is a paraplegic as a result of the attack.
Today’s sentencing is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of MS-13, a violent international criminal organization. MS-13’s leadership is based in El Salvador and Honduras, and the gang has thousands of members across the United States, comprised primarily of immigrants from Central America. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those gang members have been convicted of federal racketeering charges for participating in murders, attempted murders and assaults. Since 2010, this Office has obtained indictments charging MS-13 members with carrying out more than 45 murders in the district, and has convicted dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by our law enforcement partners, including the FBI’s Safe Streets Task Force, comprising agents and officers of the FBI and NYPD.
The government’s case is being handled by the Office’s Organized Crime & Gang Section. Assistant United States Attorney Nadia Moore is in charge of the prosecution.
The Defendant:
KEVIN PANIAGUA
Age: 20
Queens, New YorkE.D.N.Y. Docket No. 17-CR-307 (RRM)
Lynn Man Pleads Guilty to Bank Fraud and ID TheftRead the Press Release
BOSTON – A Lynn man pleaded guilty today in connection with a scheme to impersonate bank customers and fraudulently withdraw money from their bank accounts.
Antonio Niati, 28, pleaded guilty to one count of conspiracy to commit bank fraud, and one count of aiding and abetting aggravated identity theft. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Aug. 14, 2019. In September 2018, Niati was indicted and arrested.
In 2017, Niati recruited a bank teller working at a Santander Bank branch in Dorchester to assist in conducting fraudulent transactions in victim bank accounts. On three occasions in April 2017, another co-conspirator conducted transactions in two Santander Bank customers’ accounts using fraudulent driver’s licenses, all with the assistance of Niati and the recruited teller. Niati and his co-conspirators fraudulently withdrew over $640,000 from the customers’ accounts.
The charge of conspiracy to commit bank fraud provides for a sentence of no greater than 30 years in prison, five years of supervised release and a fine of up to $1 million. The charge of aggravated identity theft provides for a mandatory sentence of two years, to be served consecutively to any other imposed sentence, one year of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Assistant U.S. Attorney Mark Balthazard of Lelling’s Economic Crimes Unit is prosecuting the case.
Lewis County Magistrate and Gilmer County Magistrate indicted on wire fraud, mail fraud, and obstruction chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Lewis County Magistrate Roger D. Clem, Jr. and Gilmer County Magistrate Alton L. Skinner, II were indicted today by a federal grand jury on charges involving wire fraud, mail fraud, and obstruction charges, United States Attorney Bill Powell announced.
Clem, age 47, of Weston, West Virginia, and Skinner, age 57, of Sand Fork, West Virginia, were each indicted on one count of “Conspiracy to Commit Mail Fraud and Wire Fraud,” two counts of “Wire Fraud,” two counts of “Mail Fraud,” and one count of “Obstruction of Justice.” Skinner was also charged with one count of “False Statement to a Federal Agent.”
E-Z Out, LLC, based in Sand Fork, West Virginia, is an authorized bonding company in Lewis County. According to company records, E-Z Out is operated solely by Alton Skinner’s spouse, and employs Skinner’s son as an authorized bonding agent. Clem is accused of taking favorable actions in the courtroom for E-Z Out, including setting unnecessary surety bonds. Clem is accused of calling Skinner to arrange the bond of a detainee without presenting a list of authorized bonding companies to the detainee. Skinner would allegedly arrange for his spouse or son, as agents of E-Z Out, to be present at the arraignment of the detainee without the detainee’s informed choice of E-Z Out amongst other authorized bonding companies.
Clem and Skinner are accused of causing payments via electronic transmission which traveled outside of West Virginia. The two are also accused of mailing a contract and checks between Skinner’s spouse and Dave Bourne Bail Bonds, Inc. in Virginia, the general agent of the underwriter for E-Z Out.
Both men allegedly attempted to obstruct or impede the grand jury investigation. Skinner also allegedly made false statements to a special agent from the Internal Revenue Service Special Investigation Unit.
The United States is also seeking a money judgment in the amount of $18,900.
Clem and Skinner each face up to 20 years incarceration and a fine of up to $250,000 for each of the conspiracy, wire fraud and mail fraud, and obstruction counts. Skinner also faces up to five years incarceration and a fine of up to $250,000 for the false statement count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Jarod J. Douglas is prosecuting the cases on behalf of the government. The Internal Revenue Service-Criminal Investigation and the West Virginia Commission on Special Investigations investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Leader of Sex Trafficking Ring Pleads Guilty to Multiple Felony ChargesRead the Press Release
SAN JOSE – Ariel Guizar-Cuellar pleaded guilty in federal court in San Jose today to sex trafficking of children and sexual exploitation of children, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The Honorable Beth Labson Freeman, U.S. District Judge, accepted the plea.
In pleading guilty, Guizar-Cuellar, 38, of San Jose, admitted that from approximately September of 2014 until approximately January of 2016, he and various co-conspirators operated an unlawful commercial sex venture in San Jose and Santa Clara that sold the sexual services of adult women and at least three minor girls.
Guizar-Cuellar was the leader, primary facilitator, enforcer, and main financial beneficiary of the unlawful commercial sex venture. He recruited the minors through social media networks. He took pictures of the minors and caused those pictures to be posted in online advertisements for their sexual services on “backpage.com.” He transported the minors to various hotels and motels in the Bay Area to facilitate their prostitution dates with adult customers. He provided condoms for the minors to use during their prostitution dates and collected money from the minors after their dates. He also admitted that he made a recording of one of the minors engaging in sexual activity during a prostitution date in Sunnyvale and gave methamphetamine to some of the minors to entice them to continue working for him. He specifically told the minors to conceal their true ages.
On April 7, 2016, a federal grand jury indicted Guizar-Cuellar charging him with one count of conspiracy to commit sex trafficking of children, in violation of 18 U.S.C. § 371; three counts of sex trafficking of children, in violation of 18 U.S.C. § 1591(a)(1) and (b) as to each minor victim; and one count of sexual exploitation of children, in violation of 18 U.S.C. § 2251(a) and (e). Guizar-Cuellar pleaded guilty to all counts charged in the indictment.
Guizar-Cuellar is currently in federal custody awaiting sentencing. Judge Freeman scheduled his sentencing hearing for October 22, 2019. The maximum statutory penalty for each violation of 18 U.S.C. § 1591 is life in prison with a mandatory minimum sentence of 10 years. The maximum statutory penalty for child exploitation is 30 years, with a mandatory minimum of 15 years in prison. The maximum prison term for the conspiracy charge is five years in prison. Restitution is mandatory to all victims of sex trafficking. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Marissa Harris is prosecuting the case with the assistance of Tong Zhang. The prosecution is the result of an investigation by the FBI, the San Jose Police Department, and the Santa Clara County District Attorney’s Office Bureau of Investigation, with assistance from the Santa Clara County Human Trafficking Task Force.
Jury Convicts KC Man of Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was convicted by a federal trial jury today of illegally possessing a firearm.
Dionandre Ganter, 30, was found guilty of being a felon in possession of a firearm and of receiving a firearm while under indictment. Ganter has been detained in federal custody without bond since his arrest.
Evidence introduced during the trial indicated that Ganter was in possession of a loaded Smith and Wesson .40-caliber pistol on March 22, 2017. Ganter, a convicted felon, received that firearm while under indictment for tampering and resisting arrest in Jackson County, Mo.
At 2:55 a.m. on March 22, 2017, Kansas City, Mo., police officers responded to a reported shooting at the intersection of Van Brunt Boulevard and Anderson Avenue. An officer saw Ganter, who was not wearing a shirt and had his right wrist bandaged, leaving the area. The officer saw Ganter place a handgun in a flowerpot on the northwest corner of the intersection.
Ganter was detained for further investigation and the firearm was retrieved from the flowerpot.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Ganter has two prior felony convictions for domestic battery and a prior felony conviction for obstruction of legal process.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for approximately 30 minutes before returning the guilty verdict to U.S. District Judge Stephen R. Bough, ending a trial that began Monday, May 6, 2019.
Under federal statutes, Ganter is subject to a sentence of up to 15 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther and Special Assistant U.S. Attorney Sean T. Foley. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Joplin Man Indicted for Producing Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A Joplin, Mo., man was indicted by a federal grand jury today for producing child pornography.
William Lee Potts, 21, was charged in an indictment returned by a federal grand jury in Springfield, Mo. Today’s indictment replaces a federal criminal complaint filed against Potts on May 3, 2019.
The federal indictment charges Potts with one count of using a minor to produce child pornography from April 26 to May 1, 2019.
According to an affidavit filed in support of the original criminal complaint, Potts was found in a Joplin motel room with the 16-year-old child victim on May 1, 2019. Investigators searched his cell phone and found sexually explicit images and a video of child pornography.
The charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Joplin, Mo., Police Department, the Waynesville, Mo., Police Department, the FBI, and the Southwest Missouri Cybercrimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Jamestown Man Sentenced for Being A Felon in Possession of A GunRead 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 Douglas Wood, 39, of Jamestown, NY, who was convicted of being a felon in possession of a firearm, was sentenced to serve 63 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Seth Molisani, who handled the case, stated that on March 6, 2018, the Jamestown Police Department was actively engaged in a narcotics investigation operation. Investigators conducted physical and audio surveillance of the defendant and learned that Wood was in possession of a silver handgun. Investigators maintained surveillance on the defendant and alerted uniformed patrol officers who approached Wood and spoke with him briefly before he attempted to flee. Following a brief struggle, the defendant was restrained and officers recovered a loaded revolver and 14 additional rounds of ammunition.
Wood was previously convicted in 2000, in the Nottoway County Circuit Court, Nottoway, Virginia, of Grand Larceny, Unlawful Possession or Use of a Sawed-Off Shotgun, and Burglary; in 2001, in Chautauqua County Court, of Grand Larceny in the Fourth Degree; in 2004, in Chautauqua County Court, of Grand Larceny in the Fourth Degree; and in 2007, in Chautauqua County Court, of Robbery in the Third Degree. As a result, the defendant is legally prohibited from possessing a firearm.
Today’s sentencing is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division, and the Jamestown Police Department, under the direction of Chief Harry Snellings.
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Inmate at FCI-Loretto Indicted for Possession of ContrabandRead the Press Release
JOHNSTOWN, Pa. – An inmate at the Federal Correctional Institution in Loretto, Pa., has been indicted by a federal grand jury in Johnstown on a charge of possession of a prohibited object in prison, United States Attorney Scott W. Brady announced today.
The indictment named Bryan Wade Smith, 29.
According to the indictment presented to the court, on October 3, 2018, Smith possessed a quantity of Buprenorphine.
The law provides for a maximum sentence of 20 years in prison and a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Federal Correctional Institution, Special Investigative Staff, conducted the investigation leading to the prosecution of Smith.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Inland Empire Man Pleads Guilty to TARP Homeowner Relief FraudRead the Press Release
RIVERSIDE, California – A Corona man has become the first individual to plead guilty to federal charges for fraudulently obtaining tens of thousands of dollars in mortgage assistance benefits under the portion of the Troubled Asset Relief Program (TARP) intended for homeowners hardest hit by the 2007-09 economic downturn.
Eliseo Delgado Jr., 40, entered a guilty plea on Monday to one felony count of making a false or fraudulent claim against the United States. Delgado made the first known guilty plea by an individual to fraud charges regarding TARP’s mortgage assistance program. United States District Judge Jesus G. Bernal has scheduled an October 28 sentencing hearing, where Delgado faces a statutory maximum sentence of five years in federal prison.
According to court documents, in November 2014, Delgado knowingly submitted a false application for homeowner relief benefits under the Unemployment Mortgage Assistance Program (UMA). UMA was a federally funded program under TARP that was administered in California by the California Housing Finance Authority’s Mortgage Assistance Corporation under the name “Keep Your Home California.” The program was designed to help homeowners by providing temporary mortgage assistance to eligible low-to moderate-income homeowners who became unemployed. Congress passed TARP to stabilize the nation’s financial system during the financial crisis of 2008. In 2010, using TARP money, Congress established the Hardest Hit Fund (HHF), to provide targeted aid to families in states hit hard by the economic and housing market downturn.
Delgado’s November 2014 application for homeowner relief benefits fraudulently stated that Delgado’s income had been reduced because of unemployment. In a “hardship letter” in support of his application for UMA benefits, Delgado wrote, “I have lost my job…I fell behind on my mortgage payments in 01/01/2014, earlier this year due to lack of income.” In fact, from 2009 to 2016, Delgado was self-employed at various businesses he had founded, and at no point was he unemployed. In total, Delgado fraudulently received $52,373 in UMA benefits from January 2015 until June 2016 – 18 months, the maximum length of time permissible under the program, according to court documents.
This case was investigated by the Office of the Special Inspector General for the Troubled Asset Relief Program.
This matter is being prosecuted by Assistant United States Attorney Benjamin Weir of the Riverside Branch Office.
Illegal Alien from Mexico Pleads Guilty and is Sentenced for Identity TheftRead the Press Release
PITTSBURGH, PA – An illegal alien who had been residing in Frederick, MD, pleaded guilty yesterday to Identity Theft, and has been sentenced in federal court to time served, United States Attorney Scott W. Brady announced today.
Chief United States District Judge Mark R. Hornak imposed the sentence on Elfego Sanchez-Carranza, 23, of Mexico, who has been in federal custody since November 10, 2018. Following service of the sentence of imprisonment, Sanchez-Carranza was remanded to the custody of federal immigration authorities for commencement of deportation proceedings.
According to the information presented to the court, Elfego Sanchez-Carranza used the name and Social Security number of another person to obtain employment with tree-trimming company Pennline, which is headquartered in the Western District of Pennsylvania.
The court was further advised that the defendant was not in the United States legally during the time of his employment with Pennline, and would not have been eligible to obtain employment in his own name during that time period. Defendant worked at Pennline between January and November of 2018, and earned wages at Pennline under the identity of the United States citizen whose name and Social Security number he did not have the authority to use.
Assistant United States Attorney Christy C. Wiegand prosecuted this case on behalf of the government.
United States Attorney Brady commended the U.S. Immigration and Customs Enforcement (ICE)/Homeland Security Investigations (HSI) and the Department of Labor, Office of the Inspector General for the investigation leading to the successful prosecution in this case.
Idaho Man Pleads Guilty to Conspiring to Obstruct Justice in IowaRead the Press Release
An Idaho man who conspired to obstruct justice pled guilty today in federal court in Cedar Rapids. David Emerson Smith, from Pocatello, Idaho, was convicted of one count of conspiracy to obstruct, influence, and impede an official proceeding.
At the plea hearing and in a plea agreement, David Smith admitted that, from June 2017 through 2018, he agreed with his brother, Darrell Smith, to obstruct, influence, and impede Darrell Smith’s federal sentencing hearing in late 2018. While awaiting his sentencing hearing at the Bremer County Jail in June 2017, Darrell Smith told David Smith in a recorded telephone call that one of the victims of his fraud scheme could “make it really hard” for Darrell Smith if she continued to “complain” to the government. Darrell Smith told David Smith it would be “two extra years” if the victim continued her complaint, but Darrell Smith could get the victim some stock shares within a year. At Darrell Smith’s request, David Smith agreed to contact the victim on the telephone and, in February 2018, David Smith sent a letter to the victim at Darrell Smith’s request. The letter indicated Darrell Smith had $40,000 for the victim, in her children’s names, in accounts at an investment company. The letter also reminded the victim she had “$350,000 in tax credits” and two million shares of an energy company available to her. In truth, the “tax credits” and shares lacked any basis in law or fact.
Law enforcement officers discovered the scheme to obstruct justice before Darrell Smith’s sentencing. In October 2018, the court found Darrell Smith stole $2.4 million from his investment clients, including $161,800 from the victim whom David Smith contacted at Darrell Smith’s request. The court also found Darrell Smith had obstructed justice and sentenced him to 175 months in federal prison.
Sentencing before Chief United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. David Smith remains released on bond previously set pending sentencing. David Smith faces a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, and three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Timothy L. Vavricek and was investigated by the Federal Bureau of Investigation and the United States Postal Inspection Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-2071.
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Hoboken, New Jersey, Man Admits Promoting Voter Bribery SchemeRead the Press Release
NEWARK, N.J. – A Hoboken, New Jersey, man today admitted promoting a voter bribery scheme in two city elections, U.S. Attorney Craig Carpenito announced.
Matthew Calicchio, 28, pleaded guilty before U.S. District Court Judge William J. Martini in Newark federal court to an information charging him with using the mails to promote voter bribery from 2013 to 2015 in municipal elections in Hoboken.
According to documents filed in this case and statements made in court:
In November 2013, Calicchio, Lizaida Camis, Dio Braxton and others – at Frank Raia’s direction – participated in a scheme to pay certain Hoboken voters $50 if those voters applied for and cast mail-in ballots for the November 2013 Hoboken municipal election. Under New Jersey law, registered voters are permitted to cast a ballot by mail. They must complete and submit to their county clerk’s office an Application for Vote by Mail Ballot (VBM Application). The clerk’s office processes the application and sends the applicant a mail-in ballot.
After the mail-in ballots were delivered to the Hoboken voters, Camis and others went to the voters’ residences and, in some cases, instructed the voters to vote for a rent control referendum that Raia supported. Camis and others promised the voters that they would be paid $50 for casting their mail-in ballots and told them that they could pick up their checks after the election at Raia’s office in Hoboken. Raia instructed Calicchio, Camis, and Braxton that if the ballots did not come back open, the voters would not get paid. Braxton, Camis and others then checked the ballots to ensure that the voters had voted for the correct slate of candidates, including for Raia, and that they had voted for the referendum that was favored by Raia. Calicchio and others mailed certain of the completed ballots to the Hudson County Clerk’s Office. After the election, the voters received $50 checks from an entity associated with Raia.
In November 2015, Calicchio and Willie Rojas agreed to pay certain Hoboken voters $50 if those voters applied for and cast mail-in ballots in the November 2015 Hoboken municipal election in favor of a certain candidate for City Council. The candidate told Calicchio that the candidate wanted to win at all costs, and the candidate further indicated that everyone who voted by mail would get paid. Willie Rojas provided voters with VBM Applications, told the voters that they would get paid $50 for casting mail-in ballots, and then delivered the completed VBM Applications to the Hudson County Clerk’s office. After the mail-in ballots were delivered to the voters, Rojas went to the voters’ residences to collect the mail-in ballots. Calicchio and Rojas then checked the ballots to ensure that they had been cast for their candidate, and Calicchio signed an affidavit for each ballot falsely stating that he had assisted the voters in completing their ballots. After the election, the candidate handed Calicchio an envelope with $50 checks, and Calicchio passed the envelope to Rojas, who gave the checks to the voters.
The count to which Calicchio pleaded guilty is punishable by a maximum penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Sept. 12, 2019.
Camis previously pleaded guilty to her role in the scheme and is awaiting sentencing. Braxton and Raia were previously indicted and Rojas was previously charged by complaint. The charges against them are merely accusations, and they are presumed innocent unless and until proven guilty.
U.S. Attorney Craig Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and special agents of the U.S. Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Rahul Agarwal, Deputy Chief of the Criminal Division, and Assistant U.S. Attorney Sean Farrell of the U.S. Attorney’s Office’s Special Prosecutions Division.
Defense counsel: Michael P. Koribanics Esq., Clifton, New Jersey