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3 May 2019
Lewis County man sentenced to nearly 18 years for drug distributionRead the Press Release
WHEELING, WEST VIRGINIA – Trenton Farnsworth, of Weston, West Virginia, was sentenced this week to 215 months incarceration for methamphetamine distribution, United States Attorney Bill Powell announced.
Farnsworth, age 30, pled guilty to one count of “Possession With the Intent to Distribute Methamphetamine” in December 2018. Farnsworth admitted to possessing more than five grams of methamphetamine in Barbour County in April 2018.
Farnsworth was also ordered to forfeit $5,997.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; and the Barbour County Sheriff’s Office investigated.
U.S. District Judge John Preston Bailey presided.
Lewis County man admits to drug chargeRead the Press Release
ELKINS, WEST VIRGINIA –Clarence Russell Foster, III, of Jane Lew, West Virginia, has admitted to a drug charge, United States Attorney Bill Powell announced.
Foster, age 42, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine.” Foster admitted to distributing methamphetamine in May 2018 in Lewis County.
Foster faces up to 20 years incarceration and a fine of up to $1,000,000. 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 Stephen D. Warner is prosecuting the case on behalf of the government. The United States Marshal Service and the Lewis County Sheriff’s Office investigated.
U.S. Magistrate Michael John Aloi presided.
Leader of Mail Theft Conspiracy, Former Ravn Alaska Supervisor Sentenced to Federal PrisonRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that a former Ravn Alaska supervisor has been sentenced for his lead role in a mail theft conspiracy, which involved stealing 60 Apple computers and over $100,000 worth of phones and tobacco products from the United States mail.
Congress Lepou, 30, of Anchorage, was sentenced today by U.S. District Judge Sharon L. Gleason to serve 12 months in prison, followed by three years of supervised release. In addition to his sentence, Lepou was ordered $199,143 in restitution. In December 2018, Lepou pleaded guilty to one count of conspiracy, one count of mail theft, and one count of possession of stolen mail.
According to court documents, Lepou was the leader of the mail theft conspiracy involving a total of six former Ravn employees. Lepou and his co-defendant, Breadoflife Faiupu, abused their positions as supervisors at Ravn Alaska to steal computers from the mail, and then recruited those they supervised to help find buyers for the stolen computers. The investigation further revealed that Faiupu and Lepou would then share the proceeds from the sales with those they were tasked to supervise, thus ensuring their silence.
Specifically, from March 2015 to April 2017, Lepou and Faiupu used Ravn Alaska’s supervisor truck – intended for the transportation of mail from the U.S. Postal Service facility to Ravn airplanes for delivery to Alaska villages – to take articles stolen from the mail and drive them to the Ravn employee parking lot to load into their personal vehicles. The stolen computers were intended for village schools. Lepou and Faiupu recruited ramp agents Hubert Barte, Paulo Maae, Rogelio Daquis, as well as former ramp agent Harold Velicaria, to help find buyers for the stolen Apple computers. The proceeds from the stolen computers were shared among the co-conspirators.
During the course of the conspiracy, Lepou and Faiupu stole approximately 60 Apple computers from mail. The total approximate retail value of stolen Apple computers attributable to the conspiracy is $90,000. The majority of those computers were intended for delivery to school districts in Alaska villages. Lepou also stole over $100,000 worth of phones and tobacco products from the mail intended for rural stores in addition to the computers.
At the sentencing hearing, Judge Gleason noted the serious impact to village school districts and communities as a result of the defendant’s thefts.
The U.S. Postal Service Office of Inspector General (USPS-OIG), with the assistance of the U.S. Postal Inspection Service (USPIS), conducted the investigation leading to the successful prosecution of this case. The Alaska State Trooper Technical Crimes Unit also assisted in the investigation. This case was prosecuted by Assistant U.S. Attorney Aunnie Steward.
Lauderdale CountyMan Sentenced to 100 Months for Illegally Possessing Firearms in Furtherance of Drug TraffickingRead the Press Release
Memphis, TN – A Lauderdale Countyman has been sentenced to 100 months in federal prison for illegally possessing firearms in furtherance of drug trafficking. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented in court, Derriyl DeAndre Maben, 34, was known as the "go to person" for anyone in need of firearms in Ripley, Tennessee.
On July 26, 2017, law enforcement from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Ripley Police Department, Tennessee Bureau of Investigation (TBI), and Tennessee Department of Correction (TDOC) conducted a search of Maben’s residence. Several loaded firearms were seized along with marijuana, methamphetamine (ICE) and drug paraphernalia.
Additionally, on September 30, 2017, evidence proved that Maben discharged a firearm during a physical altercation at the L & M Market on Eastland Street, Ripley, TN.
On July 16, 2018, Maben pleaded guilty to possession with intent to distribute methamphetamine, possession of a firearm in furtherance of drug trafficking, being a convicted felon in possession of a firearm and being a convicted felon in possession of ammunition.
On April 26, 2019, United States District Court Judge Thomas L. Parker sentenced Maben to 100 months in federal prison followed by three years supervised release.
U.S. Attorney D, Michael Dunavant said, "This defendant has a long criminal history of felony and misdemeanor convictions involving violence, drug possession, and property damage, and was on felony probation when he was found in possession of multiple firearms in furtherance of drug trafficking. Mr. Maben has devoted his adult life to a career of criminal conduct in Lauderdale County, and that prior history has finally caught up with him. This sentence removing him from the community for more than 8 years will make Lauderdale County and West Tennessee a safer place."
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Ripley Police Department; Tennessee Bureau of Investigation and the Tennessee Department of Correction.
Assistant U.S. Attorney Raney Irwin prosecuted this case on behalf of the government.
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La Crosse Man Sentenced to 4 Years for Possessing Child PornographyRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Kyle Olson, 33, of La Crosse, Wisconsin, was sentenced today by U.S. District Judge William Conley to four years in federal prison for possessing child pornography. This term of imprisonment is to be followed by 25 years of supervised release. Olson pleaded guilty to this charge on February 22, 2019.
On July 18, 2018, law enforcement officers executed a search warrant at the defendant’s home in La Crosse and seized numerous electronic items, which were later found to contain child pornography.
The defendant was previously convicted of possessing child pornography in 2012, while he was in the military. In sentencing the defendant, Judge Conley noted that Olson engaged in a “secret life of collecting and trading online child pornography” and was concerned Olson had begun engaging in online conversations with minors.
The charge against Olson was the result of an investigation conducted by the Federal Bureau of Investigation, the La Crosse area Internet Crimes Against Children Task Force, the La Crosse County Sheriff’s Department, and the West Salem, Onalaska, Holmen, Town of Campbell, and La Crosse Police Departments. The prosecution of the case has been handled by Assistant U.S. Attorney Elizabeth Altman.
Jury Convicts Pinon Man for Rape of 11 Year-Old VictimRead the Press Release
PHOENIX – Today, Murphy Alex Begay, 41, of Pinon, Ariz., was convicted by a jury of aggravated sexual abuse of a child. Begay will be sentenced by U.S. District Judge Steven P. Logan in July.
In March 2012, Begay lured the 11 year-old victim outside the mother’s house during the night, where he forcibly raped the victim in a dirt field. Both Begay and the victim are members of the Navajo Nation, and the crime was committed on the Navajo Nation Indian Reservation.
Begay is a convicted felon. At the time he raped the victim, he was serving a term of supervised release for previously shooting an unarmed man.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorneys William G. Voit and Dimitra H. Sampson, District of Arizona, Phoenix.
CASE NUMBER: CR-18-08107-SPL
RELEASE NUMBER: 2019-059_Begay
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Jury Convicts Binghamton Man of False IRS FilingsRead the Press Release
BINGHAMTON, NEW YORK – Kareem Young, age 40, of Binghamton, was convicted today of filing a fraudulent claim with the Internal Revenue Service, following a 4-day trial.
The announcement was made by United States Attorney Grant C. Jaquith and Jonathan D. Larsen, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI), New York Field Division.
Young is scheduled to be sentenced on September 24, 2019 by Senior United States Judge Thomas J. McAvoy, and faces up to 5 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.
The trial evidence showed that Young filed a 2013 U.S. Individual Tax Return claiming income of $6,125,000 and federal tax withholdings of $6,125,000. Young’s return also sought a refund of $6,125,000. Young’s actual income for 2013 was $3,127.36.
To further his claims, Young fabricated withholdings on a Form 1099 OID claiming false withholding credits from the Broome County District Attorney. Young’s return was reviewed and the IRS sent Young correspondence telling him to file a corrected return immediately. Young failed to do so and persisted in his efforts to get a refund of $6,125,000. The IRS never issued a refund.
The trial evidence showed that Young learned of this scheme while in state prison, and that the scheme involved falsely claiming credits from the District Attorney’s Office that prosecuted the prisoner.
This case was investigated by IRS-CI, with the assistance of the Inspector General’s Office of the New York State Department of Corrections and Community Supervision. The case was prosecuted by Assistant United States Attorney Tamara Thomson.
International “Malvertiser” Extradited from the Netherlands to Face Hacking Charges in New JerseyRead the Press Release
A Ukrainian national charged with participating in a years-long, international scheme to infect computers with malware through online advertisements – so-called “malvertising” – will appear in Newark, New Jersey federal court today after being extradited from the Netherlands, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Craig Carpenito for the District of New Jersey announced.
Oleksii Petrovich Ivanov, 31, is charged by indictment with one count of conspiracy to commit wire fraud, four counts of wire fraud, and one count of computer fraud. The indictment was returned on Dec. 3, 2018, and unsealed upon his arrival in the United States on May 2, 2019. Ivanov is scheduled to appear today before U.S. Magistrate Judge James B. Clark III in Newark federal court and was detained without bail.
“Cyber criminals who harm victims in the United States and around the world cannot rely on fake identities and international borders to evade justice,” said Assistant Attorney General Benczkowski. “This case and today’s extradition demonstrate that the United States and its international partners will find cyber fugitives and bring them to face justice in the United States, no matter where they commit their crimes.”
“This defendant engaged in an extraordinary and far-reaching scheme to infect and hack computers throughout the United States and the world,” said U.S. Attorney Carpenito. “This ‘malvertising’ scheme is especially dangerous because it uses online ads to target millions of unsuspecting Internet users engaged in activities as routine as booking their next vacation.”
Ivanov was arrested on Oct. 19, 2018, following an international investigation led by the U.S. Secret Service and in coordination with Dutch law enforcement. He had been detained by the Dutch authorities pending the resolution of the extradition proceedings.
According to the indictment, unsealed in Newark federal court on May 2, 2019, and other court filings, between around October 2013 through May 2018, Ivanov conspired to defraud millions of internet users around the world by launching malicious online advertising campaigns that appeared legitimate, but attempted to direct the internet browsers of victim computers towards malicious computer programs (“malware”), unwanted advertisements, and other computers that could install malware. As a result of the scheme, Ivanov and others caused unsuspecting internet users to view or access malicious advertisements on more than one hundred million occasions.
Online advertising companies work with companies and individuals to publish their online advertisements on the internet. These companies place advertisements on third-party websites, such as shopping, news, entertainment, or sports websites. These advertisements include web banners, frame ads, and other graphical advertisements and are delivered through websites that are accessed by computer users.
To carry out the scheme, Ivanov and co-conspirators are alleged to have used fake online personas and fake companies to pose as legitimate advertisers seeking to purchase online advertisements. According to the indictment, Ivanov and his co-conspirators told the advertising companies they were distributing ads for real products and services, and even created false banners and websites showing purported advertisements. But, in reality, the advertisements they purchased were used to push malware out to the computers of victims who viewed or clicked on the advertisements.
For instance, in June and July 2014, the defendant allegedly posed as “Dmitrij Zaleskis,” CEO of a fake United Kingdom company called “Veldex Limited” to submit a series of malicious advertisements to a U.S.-based internet advertising company for distribution, including two campaigns submitted on July 15, 2014 that were viewed or accessed approximately 17,328,129 times in a matter of days. The internet advertising company repeatedly told Ivanov that his advertisements were being flagged as malware threats, but Ivanov denied any wrongdoing and persuaded the company to continue running his malicious advertisements for months.
After online advertisers and advertising server platforms flagged many of the co-conspirators’ advertisements as malicious, Ivanov and others are alleged to have lied and denied that their advertisements were malicious. When their advertisements were banned as malicious, they switched to new online advertising companies and used new fake identities to buy more advertisements.
Ivanov and co-conspirators also allegedly used false identities to register internet domains that hosted malicious advertisements, and launch purported advertising campaigns. Ivanov and others also allegedly attempted to enrich themselves by offering to sell access to networks of infected devices or “botnets. Ivanov is alleged to have successfully infected or aided and abetted the infection of computers with malware that he controlled, including botnet malware that infected more than one hundred devices in the District of New Jersey.
The investigation was conducted by the U.S. Secret Service Criminal Investigations, under the direction of Director Director James M. Murray, and the Newark Field Office under the direction of Special Agent in Charge Mark McKevitt. Substantial support was also provided by the Secret Service’s Attaché Office in The Hague and the Justice Department’s Office of International Affairs in coordinating the extradition of Ivanov. The Department thanks the public prosecutors of the Dutch National Public Prosecution Service, the National High Tech Crime Unit of the Dutch National Police, and the National Crime Agency (UK) for their tremendous assistance with this case.
Trial Attorney Aarash Haghighat of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS), Chief Justin S. Herring of the U.S. Attorney’s Office Cybercrimes Unit and Assistant U.S. Attorneys Melissa Wangenheim and Dara Govan of the District of New Jersey are prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
International ‘Malvertiser’ Extradited from Netherlands to Face Hacking Charges in New JerseyRead the Press Release
NEWARK, N.J. – A Ukrainian national charged with participating in a years-long, international scheme to infect computers with malware through online advertisements – so-called “malvertising” – will appear in Newark federal court today after being extradited from the Netherlands, U.S. Attorney Craig Carpenito for the District of New Jersey and Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division announced.
Oleksii Petrovich Ivanov, 31, is charged by indictment with one count of conspiracy to commit wire fraud, four counts of wire fraud, and one count of computer fraud. The indictment was returned on Dec. 3, 2018, and unsealed upon his arrival in the United States on May 2, 2019. Ivanov appeared today before U.S. Magistrate Judge U.S. Magistrate Judge James B. Clark III in Newark federal court and was detained without bail.
“This defendant engaged in an extraordinary and far-reaching scheme to infect and hack computers throughout the United States and the world,” U.S. Attorney Carpenito said. “This ‘malvertising’ scheme is especially dangerous because it uses online ads to target millions of unsuspecting Internet users engaged in activities as routine as booking their next vacation.”
“Cyber criminals who harm victims in the United States and around the world cannot rely on fake identities and international borders to evade justice,” said Assistant Attorney General Benczkowski. “This case and today's extradition demonstrates that, through international cooperation, we are able to bring cyber thieves to justice in the United States, wherever they may commit their crimes.”
Ivanov was arrested Oct. 19, 2018, following an international investigation led by the U.S. Secret Service in coordination with Dutch law enforcement. He had been detained by Dutch authorities pending the resolution of the extradition proceedings.
According to documents filed in this case and statements made in court:
From October 2013 through May 2018, Ivanov conspired to defraud millions of internet users around the world by launching malicious online advertising campaigns that appeared legitimate, but attempted to direct victims’ browsers to malicious computer programs (malware), unwanted advertisements, and other computers that could install malware. Ivanov and others caused unsuspecting users to view or access malicious advertisements on more than 100 million occasions.
Ivanov and his conspirators used fake online personas and fake companies to pose as legitimate advertisers seeking to purchase online advertisements. They told the advertising companies they were distributing ads for real products and services, and even created false banners and websites showing purported advertisements. The advertisements they purchased were used instead to push malware out victims.
For example, in June and July 2014, Ivanov posed as “Dmitrij Zaleskis,” CEO of a fake United Kingdom company called “Veldex Limited,” to submit a series of malicious advertisements to a United States-based internet advertising company for distribution, including two campaigns submitted on July 15, 2014, that were viewed or accessed 17,328,129 times in a matter of days. The internet advertising company repeatedly told Ivanov that his advertisements were being flagged as malware threats, but Ivanov denied any wrongdoing and persuaded the company to continue running his malicious advertisements for months.
After online advertisers and advertising server platforms flagged many of the conspirators’ advertisements as malicious, Ivanov and others lied and denied that their advertisements were malicious. When their advertisements were banned as malicious, they switched to new online advertising companies and used new fake identities to buy more advertisements.
Ivanov and his conspirators also used false identities to register internet domains that hosted malicious advertisements, and launch purported advertising campaigns. Ivanov and others also attempted to enrich themselves by offering to sell access to networks of infected devices or “botnets.” Ivanov successfully infected or aided and abetted the infection of computers with malware that he controlled, including botnet malware that infected more than 100 devices in New Jersey.
U.S. Attorney Carpenito and Assistant Attorney General Benczkowski credited special agents of the U.S. Secret Service, Criminal Investigations, under the direction of Director James M. Murray, and the Newark Field Office, under the direction of Special Agent in Charge Mark McKevitt, for the investigation leading to the indictment. Substantial support was also provide by the Secret Service’s Attaché Office in The Hague and the Justice Department’s Office of International Affairs in coordinating the extradition of Ivanov. The Department also thanks the public prosecutors of the Dutch Ministry of Security and Justice, the National High Tech Crime Unit of the Dutch National Police, and the National Crime Agency (UK) for their assistance with this case.
The wire fraud conspiracy and substantive wire fraud counts with which Ivanov is charged carry a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or victim loss from the offense. Ivanov is also charged with a computer fraud count that carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense.
The government is represented by Justin S. Herring, Chief of the U.S. Attorney’s Office Cybercrimes Unit, and Assistant U.S. Attorneys Melissa Wangenheim and Dara Govan, District of New Jersey, and Aarash Haghighat, Trial Attorney with the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS).
The charges and allegations contained in the indictment are merely accusations and the defendant is considered innocent unless and until proven guilty.
Indictment Charges Waterbury Man with Unlawful Firearm PossessionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a grand jury in Hartford has returned an indictment charging RAEKWON OVERSTREET, 23, of Waterbury, with possession of a firearm by a convicted felon.
The indictment was returned on April 10, 2019. Overstreet appeared today before U.S. Magistrate Judge Robert M. Spector in New Haven and pleaded not guilty to the charge. He has been detained since February 19, 2019, when he was arrested on related state charges.
The indictment alleges that, on February 19, 2019, Overstreet possessed a Springfield 9mm firearm. Prior to that date, Overstreet was convicted in state court of conspiracy to commit robbery in the first degree.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm that has moved in interstate or foreign commerce.
If convicted of the charge, Overstreet faces a maximum term of imprisonment of 10 years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Waterbury Police Department. The case is being prosecuted by Assistant United States Attorney Michael J. Gustafson.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Illegal Alien from Mexico Pleads Guilty to Human Smuggling ConspiracyRead the Press Release
Gulfport, Miss. – Javier Tellez-Lopez, 38, an illegal alien from Mexico living in South Carolina, pled guilty yesterday before Senior U.S. District Judge Louis Guirola, Jr. to conspiracy to transport illegal aliens within the United States, announced U.S. Attorney Mike Hurst, Jere T. Miles, Special Agent in Charge of U.S. Immigration & Customs Enforcement's (ICE) Homeland Security Investigations (HSI) in New Orleans, and Gregory K. Bovino, Chief Patrol Agent of the U.S. Border Patrol’s New Orleans Sector.
Tellez-Lopez will be sentenced by Judge Guirola on July 31, 2019, at 10:00 a.m. He faces a potential maximum penalty of 10 years in prison, followed by three years of supervised release, a maximum $250,000 fine, and special assessments that could total $5,100. He will also be subject to immigration removal proceedings.
On January 28, 2019, an interdiction agent with the South Mississippi Metro Enforcement Team conducted a traffic stop on a GMC Yukon XL with South Carolina license plates at or about the 62-mile marker on interstate I-10 eastbound in Jackson County. The agent observed eight occupants of the vehicle, which was being driven by Javier Tellez-Lopez.
Border Patrol Agents arrived on the scene shortly thereafter, and interviewed the occupants of the vehicle as to their citizenships, determining none had proper documents and all were illegally present in the United States. Of the eight total vehicle occupants (two drivers and six passengers), all were illegal aliens from Mexico. All occupants were arrested and transported to the Border Patrol Station in Gulfport. HSI and Border Patrol agents determined the six passengers were being smuggled within the United States. Further investigation determined that five of the six passengers had unlawfully returned after being formally removed from the United States. Each of these five passengers were separately prosecuted by the U.S. Attorney’s Office.
U.S. Attorney Hurst praised the cooperation exhibited by Homeland Security Investigations, the United States Border Patrol, the South Mississippi Metro Enforcement Team, the Jackson County Sheriff’s Department and the City of Gautier Police Department. Assistant United States Attorney Stan Harris is the prosecutor for the case.
Honduran Man Charged with Illegal Re-EntryRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that SANTOS EVELIO NOLAZCO, age 48, a native of Honduras, was charged yesterday in a one-count indictment with illegal reentry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).
According to the indictment, EVELIO NOLAZCO was previously removed from the United States on August 17, 2016. He was later found in the Eastern District of Louisiana on March 28, 2019 and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
If convicted, EVELIO NOLAZCO faces a maximum term of imprisonment of 2 years, a fine of $250,000, one year of supervised release, and a $100 special assessment fee.
U.S. Attorney Strasser reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the United States Immigration and Customs Enforcement agency in investigating this matter. Assistant United States Attorney Carter K.D. Guice, Jr. is in charge of the prosecution.
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Harvey Man Indicted for Conspiracy to Commit Bank and Wire Fraud and Aggravated Identity TheftRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that CHRISTOPHER WATSON, age 28, was indicted yesterday by a federal grand jury for charges stemming from his arrest in Jefferson Parish last summer. WATSON was charged with one count of conspiracy to commit bank fraud and wire fraud, three counts of bank fraud, three counts of wire fraud, and four counts of aggravated identity theft.
According to today’s indictment, the investigation was initiated by the Jefferson Parish Sheriff’s Office after determining that WATSON was using stolen or fraudulent identities to obtain vehicle financing. The investigation revealed that WATSON, who previously worked as a used car salesman, submitted numerous fraudulent loan applications to financial institutions and automobile lenders, sometimes using the personal identifying information of his customers. WATSON was also charged with aggravated identity theft for stealing the identities of several current/former military members or their families and submitting fraudulent loan applications to USAA Financial on their behalf.
U.S. Attorney Peter G. Strasser reiterated that the Indictment is merely an allegation and that the guilt of the defendant must be proven beyond a reasonable doubt.
If convicted of conspiracy to commit bank fraud and wire fraud, in violation of Title 18, United States Code, Section 371, WATSON faces a maximum penalty of five years imprisonment, followed by up to five years supervised release, and a $250,000 fine. If convicted of bank fraud, in violation of Title 18, United States Code, Section 1344, WATSON faces a maximum penalty of 30 years imprisonment, followed by up to five years supervised release, and a $250,000 fine. If convicted of wire fraud, in violation of Title 18, United States Code, Section 1343, he faces a maximum of 20 years imprisonment, followed by up to three years supervised release, and a $250,000 fine. The aggravated identity theft charges carry a sentence of two years consecutive to any other sentence imposed, followed by one year of supervised release, and a $250,000 fine.
U.S. Attorney Peter G. Strasser praised the work of the Jefferson Parish Sheriff’s Office and the United States Secret Service Financial Crimes Taskforce in investigating this matter. Assistant United States Attorney Shirin Hakimzadeh is in charge of the prosecution.
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Guatemalan Man Sentenced to Prison Following Deportation and Document FraudRead the Press Release
A Guatemalan man who had been deported twice, illegally returned to the United States, and then used false identification documents to obtain a job was sentenced today to eight months in federal prison.
Cesar Solovi-Valle, age 33, a citizen of Guatemala illegally present in the United States and residing in Decorah, Iowa, received the prison term after a January 28, 2019, guilty plea to one count of unlawful use of identification documents and one count of illegal reentry into the United States.
In a plea agreement, Solovi-Valle admitted he had previously been deported two times from the United States and that he illegally reentered the United States without the permission of the United States government. Solovi-Valle was deported in September 2004 following a conviction in the Southern District of Texas for illegal entry into the United States. Solovi-Valle was deported in August 2008 following convictions in June 2008 in Allamakee County, Iowa, for operating a motor vehicle under the influence (OWI), and in July 2008 in Clayton County, Iowa, for third degree criminal mischief.
Solovi-Valle also admitted he used a fraudulent Social Security card and a fraudulent permanent resident card, also known as a “green card,” when he completed an employment form using an alias name in November 2016, at a business in Waukon, Iowa. The Social Security account number on the card used by Solovi-Valle belonged to another person. The Alien Registration number on the “green card” was issued to another person. On November 30, 2016, Solovi-Valle was arrested by immigration agents at the business in Waukon where Solovi-Valle was working under the alias name.
Solovi-Valle was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Solovi-Valle was sentenced to eight months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Solovi-Valle is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-1047.
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Grant County man admits to firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Carmen Liseno, of Cabins, West Virginia, has admitted to a firearms charge, United States Attorney Bill Powell announced.
Liseno, age 36, pled guilty to one count of “Unlawful Possession of a Firearm.” Liseno, having been previously convicted of two felonies, admitted to having a .40 caliber pistol in December 2017 in Grant County.
Liseno faces up to 10 years incarceration and a fine of up to $250,000. 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 Danae DeMasi-Lemon is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Grant County Sheriff’s Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Grand Jury Indicts Inmate for Mailing Threats to Former Ohio Attorney General & Prisons Director, Judges, NewspapersRead the Press Release
COLUMBUS, Ohio – An Ohio inmate has been charged federally for writing at least 15 threatening letters containing powder. In some of the letters, he allegedly claimed the powder was anthrax or fentanyl or threatened the use of explosive devices.
Sean Heisa, 35, was indicted by a grand jury yesterday on two counts of making false information or hoaxes and 13 counts of mailing threatening communications.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Todd A. Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the charges.
According to the indictment, from July 2017 to July 2018, Heisa mailed threatening letters to various officials throughout the state of Ohio.
Heisa mailed a letter to the city manager of Painesville, Ohio and claimed powder contained within the envelope was anthrax. Likewise, Heisa mailed a second letter that month to a magistrate judge in Whitehall, Ohio, again claiming the powder contained within the letter was anthrax.
Heisa also allegedly threatened via letter officials within the Coshocton Municipal Courthouse, Franklin County Common Pleas Court and then Ohio Attorney General Mike DeWine through threatened exposure to anthrax and the use of explosive devices.
Other letters threatened to injure recipients – including the former Ohio prisons director, the Columbus Dispatch, the Circleville Herald and The Ohio State University – by exposure to fentanyl.
Heisa was charged by criminal complaint in December 2018 and arrested in January 2019.
Creating false information/hoaxes and mailing threatening communications are each federal crimes punishable by up to five years in prison
U.S. Attorney Glassman commended the investigation of this case by the FBI, and Assistant United States Attorney Jessica W. Knight, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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Gang member sentenced to federal prison for possessing drugs and a firearm while on probationRead the Press Release
ATLANTA - Enrique Fuentes has been sentenced for possessing with the intent to distribute methamphetamine and possessing a firearm in furtherance of a drug trafficking crime. Fuentes is a member of the “18th Street” gang.
“This gang member, while on probation, sat outside of a restaurant in broad daylight with a gun as well as methamphetamine packaged for sale,” said U.S. Attorney Byung J. “BJay” Pak. “Fuentes will be off our streets as a result of the outstanding efforts of the Chamblee Police Department and Homeland Security Investigations. We are strategically and aggressively working to make our communities safer and this case is another example of the positive impact of Project Safe Neighborhoods.”
“HSI is committed to combatting transnational gang members who threaten public safety with criminal activities in our neighborhoods,” said Nick S. Annan, Special Agent in Charge of HSI Atlanta. “Violent street gangs and their transnational contacts are a priority focus for HSI and this case illustrates the importance of collaborative relationships between HSI and local law enforcement across Georgia to keep our communities safe.”
“We are very appreciative of the outstanding partnership between state, local, and federal agencies which has proven to be effective in keeping our communities safe. In this case, it has taken a dangerous gang member and drug dealer off the streets. The successful prosecution of cases like this reduces crime and the fear of crime in our communities,” said Assistant Chief of Police Michael Beller, Chamblee Police Department.
According to U.S. Attorney Pak, the charges and other information presented in court: On the morning of April 25, 2018, officers with the Chamblee Police Department were on patrol when they observed Fuentes and a female sitting in front of a restaurant. One of the officers then witnessed him hand something to the female, so they approached and discovered that both Fuentes and the female had been smoking marijuana. The officers then learned that Fuentes had an outstanding warrant for a probation violation.
After Fuentes was secured, officers searched a brown paper bag next to him and found 11 smaller plastic baggies, each containing methamphetamine, which weighed a total of 289 grams. In addition to the drugs, officers found inside of the bag a .38 caliber revolver and a small scale used for weighing narcotics for distribution and sale. At the time he possessed these narcotics and firearm, Fuentes was on probation for a 2016 felony conviction.
Enrique Fuentes, a/k/a Grumpy, 32, of Chamblee, Georgia, was sentenced by U.S. District Judge Mark H. Cohen to eight years, eight months in prison to be followed by three years of supervised release. Fuentes was convicted on these charges on February 7, 2019, after he pleaded guilty.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Chamblee Police Department.
Assistant U.S. Attorney Michael Herskowitz, Chief of the Cyber and Intellectual Property Crime Section, prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Gang Leader Sentenced to Prison for Marijuana Trafficking ConspiracyRead the Press Release
ALEXANDRIA, Va. – A Washington, D.C. man was sentenced today to six and a half years in prison for in prison for his role in a marijuana conspiracy.
“This case illustrates certain dangers posed by organized criminal gangs: They have a built in distribution network, a division of labor and development of expertise by tasking their membership, and as a result they have the ability to move large quantities of narcotics,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Here, the distribution of marijuana resulted in the generation of thousands of dollars of illicit profit—cash—which generally serves as a dinner bell for armed robbers and can easily result in violent conflict and collateral injury to innocent bystanders. Thank you to our law enforcement partners who bravely continue to assist in our efforts in thwart drug trafficking and bring those perpetrators to justice.”
According to court documents, Cuong Huynh, 31, was the leader of a marijuana trafficking ring and leader of a criminal street gang known as the Asian Dragon Family. Under Huynh’s leadership, the Washington, D.C. area marijuana trafficking ring distributed over 100 kilograms of marijuana over a two-year period.
“This sentencing demonstrates the commitment of the FBI and our task force partners who work each day to identify individuals who are injecting drugs into our communities and leading criminal organizations.,” said Matthew J. DeSarno, Special Agent in Charge of the FBI’s Washington Field Office’s Criminal Division. “Thank you to our partners for their continued support in tackling organized crime and bringing those responsible to justice.”
Huynh operated at the center of the conspiracy, maintaining multiple wholesale sources of supply for marijuana while also maintaining a distribution network in the Washington, D.C. region. Huynh’s girlfriend, Victoria Nguyen, stored tens of thousands of dollars in cash proceeds at a time from the sale of marijuana and safeguarded those earnings for the next wholesale purchase. Nikco Nguyen and Michael Ngo, who were also members of the Asian Dragon Family, distributed marijuana for Huynh, picked up cash proceeds from customers and re-packaged larger quantities of marijuana into redistribution amounts.
Nikco Nguyen was sentenced to 30 months in prison and Michael Ngo was sentenced to 24 months in prison on April 12 for their roles in the conspiracy. Victoria Nguyen was sentenced to two years in prison on April 5 for her role in the conspiracy.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Matthew J. DeSarno, Special Agent in Charge, Criminal Division, FBI Washington Field Office, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Special Assistant U.S. Attorney Lena Munasifi and Assistant U.S. Attorney Dennis M. Fitzpatrick prosecuted the case.
This matter was investigated by the FBI Washington Field Office’s Transnational Organized Crime Task Force which consists of FBI Agents, task force officers from multiple other federal agencies, local, state and international law enforcement partners.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-12.
Fraudster Sentenced to 11 Years in Federal Prison for Stealing the Identities of Hundreds of Victims to Fraudulently Obtain More Than $2.2 Million in Tax RefundsRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Toyosi Alatishe, a/k/a Felix Victor Johnson, age 49, of Columbia, Maryland, today to 11 years in federal prison, followed by 3 years of supervised release, for a conspiracy to commit credit/debit card fraud, wire fraud, and for aggravated identity theft, in connection with two separate schemes to obtain fraudulent tax refunds. Judge Blake entered an order requiring Alatishe to pay restitution in the amount of $2,287,959.67. A federal jury convicted Alatishe on all 16 counts on January 24, 2019.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Special Agent in Charge Robert E. Craig, Jr. of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division; and Chief Lisa Myers of the Howard County Police Department.
“This criminal stole the personal information of law-abiding citizens, including the disabled residents of the group homes where he worked, to file bogus tax returns claiming fraudulent ‘refunds,’ and stole over $2.2 million from the IRS,” said U.S. Attorney Robert K. Hur. “Those who prepare and file fraudulent returns cheat all honest taxpayers. We are committed to investigating, stopping, and prosecuting these crimes.”
According to the evidence presented at Alatishe’s six-day trial, in the first scheme, which occurred from 2012 to 2013, Alatishe misused his position as a caretaker for residents of a group home for individuals suffering from severe mental and physical disabilities, by using their personal information to file fraudulent tax returns with the IRS and the State of Maryland. Alatishe also obtained access to the personal identifying information of other mentally disabled Maryland victims, who lived at group homes run by a company where Alatishe’s ex-wife worked. After filing the fraudulent tax returns through an online tax filing company, Alatishe had the tax refunds deposited into bank accounts he controlled, including an account opened using a fraudulent Nigerian passport in the name of Felix Victor Johnson.
The evidence proved that, in 2013, Alatishe also filed fraudulent tax returns using the names and social security numbers of eight other victim taxpayers from across the United States without their authority. The fraudulent tax returns contained false information concerning the taxpayers, including their marital status, spouses, dependents, employers, wages, withholdings, tax due and owing, and refund amounts. This resulted in Alatishe receiving fraudulently obtained tax refunds of more than $30,000 in March and April 2013, which the IRS direct deposited into the Felix Victor Johnson bank account.
In the second scheme, a conspirator in Florida used the identifying information of a Florida accountant to fraudulently purchase debit cards from First View Financial, purportedly so that customers of the accountant could have their tax refunds transferred directly from the IRS to the cards. The co-conspirator asked First View to mail 2,000 prepaid debit cards to him at an address in Tampa, Florida, which was actually the address of Regus Management Group, LLC, a company that provided virtual office services to businesses. Still posing as the accountant, the co-conspirator contracted with Regus for mail forwarding. Specifically, the evidence proved that all mail received by Regus in the victim accountant’s name was forwarded to Alatishe’s address in Columbia, Maryland. Trial evidence showed that during January and February 2015, First View sent out the debit cards in five different shipments, which Regus then forwarded to Alatishe’s address.
Further, the government presented evidence proving that in 2015, the personal identifying information of more than 300 individuals from across the United States was used without their permission and knowledge to file false tax returns with the IRS in order to obtain refunds. More than 300 of the First View debit cards were activated and loaded with IRS tax refund money from the fraudulently filed tax returns. The total value of the IRS funds loaded onto the cards was more than $2.2 million. During February and March 2015, Alatishe and his co-conspirator withdrew more than $1 million through ATM and point-of-sale transactions, including the purchase of $40,000 in money orders.
Further, between March 6 and March 15, 2015, Alatishe was captured on security video repeatedly using ATMs at a specific financial institution in Columbia, Maryland. As detailed in the trial testimony, withdrawals occurred in short periods of time with many different cards from First View, in approximate withdrawal amounts of $300. The large number of transactions and high dollar value resulted in the ATMs running out of money. The financial institution conducted an investigation and notified law enforcement and First View, resulting in First View and other financial institutions freezing the remaining funds on the First View debit cards on about March 17, 2015.
According to trial testimony, a federal search warrant was executed at Alatishe’s residence in June 2016. Law enforcement recovered electronic evidence, including evidence as to Alatishe’s involvement in both fraudulent tax refund schemes. Agents also seized physical evidence, including numerous handwritten lists containing the personal identifying information of identity theft victims. Some of these handwritten documents were identified by Alatishe as his handwriting and the information on the handwritten sheets matched even more extensive lists of personal identifying information from his computer. In 2013, Alatishe had been the subject of an investigation and search warrant by the Howard County Police Department, which led to the seizure of important evidence used during the federal trial of the two schemes.
United States Attorney Robert K. Hur praised the IRS-CI, DCIS, U.S. Postal Inspection Service, and Howard County Police Department for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Harry M. Gruber and Dana J. Brusca, who prosecuted the case.
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Former Youth Basketball Coach Sentenced to 180 Years in Prison for Sexual Exploitation of Children, Possession and Transportation of Child PornographyRead the Press Release
DES MOINES, Iowa – On May 2, 2019, Gregory Scott Stephen, age 43, of Monticello, Iowa, was sentenced by United States Northern District of Iowa Judge C.J. Williams to 180 years – the maximum statutory penalty – in federal prison, announced United States Attorney Marc Krickbaum. Stephen pleaded guilty on October 18, 2018, to five counts of sexual exploitation of a child, one count of possession of child pornography, and one count of transportation of child pornography.
During the sentencing hearing, Judge Williams stated the defendant “is a hands-on sexual abuser of children” who “exploited, manipulated, and abused children for almost two decades.” According to Judge Williams, defendant’s crime was “horrendous,” and the harm he caused his victims was “incalculable and profound.” Stephen was the former co-director of Barnstormers Basketball of Iowa. The Barnstormers operate youth basketball teams for athletes between fourth and twelfth grades. In addition to his administrative duties, Stephen also coached Barnstormer players.
“The Defendant exploited boys who looked up to him as a coach and mentor,” stated Krickbaum. “He had power over these kids, and he exploited that power. The sentence imposed today reflects the enormity of his crimes.” Krickbaum continued, “I want to thank the law enforcement officers and advocates who worked with the victims and their families. Most importantly, thank you to the victims who came forward to tell your stories. Your courage is inspiring.”
“The significant sentence imposed today is the result of law enforcement cooperation at the local, state, and federal levels,” stated Iowa Division of Criminal Investigation Special Agent in Charge Rick Rahn. “The DCI will continue to work with our law enforcement partners to investigate those who sexually exploit and abuse children.”
According to court documents, Stephen violated over 400 minor victims in a multitude of ways – he secretly recorded victims while they were nude, tricked victims into sending Stephen sexually explicit images and videos by impersonating a minor female online, and photographed victims’ genitals while the victims slept, and in some cases, photographed himself touching the victims’ genitals.
The Iowa Division of Criminal Investigation, Federal Bureau of Investigation, and the Monticello Police Department investigated this matter. This case was prosecuted by Southern District of Iowa Assistant United States Attorneys Clifford Cronk and Amy Jennings, who have been designated as Special Assistant United States Attorneys, based on the recusal of the Northern District of Iowa United States Attorney’s Office.
Former Virgin Islands National Guard Member Convicted in Federal Court of 50 Counts Related to Fraud, Theft of Government Money, and a False StatementRead the Press Release
St. Croix, USVI – Aesha Rivers, age 43, of St. Croix, was found guilty yesterday, following a federal jury trial in the St. Croix District Court of 48 counts of Wire Fraud; 1 count of Theft of Government Money; and 1 count of False Statement to Government, United States Attorney Gretchen C.F. Shappert announced. The jury acquitted Rivers on an additional 27 counts of Wire Fraud. Trial commenced on April 30, 2019 and concluded on May 2, 2019.
According to trial testimony, Rivers was a Virgin Islands National Guard member who applied for and received Overseas Housing Allowance (OHA) proceeds between June 1, 2011, and June 30, 2015, for a residence she purchased on St. Croix, for which she held a mortgage through Flagstar Bank.
The OHA program is a reimbursement-based program intended to help defray the higher cost of housing for National Guard members located in the Virgin Islands, Puerto Rico, and Guam. In order to receive OHA proceeds, the National Guard member must submit and certify an application as well as provide documentation to support either an existing rental agreement or HUD-1 to validate an existing mortgage. Annual recertification is also required.
Rivers stopped making her mortgage payments to Flagstar by March 1, 2012, and a foreclosure motion for default judgment was granted to Flagstar on March 18, 2014. Rivers failed to notify the Virgin Islands National Guard of her changed circumstances as to her housing expenses, as required by law. She falsely recertified her OHA eligibility annually. As a result, Rivers fraudulently received OHA proceeds through the electronic transfer of funds into her USAA checking account until June 30, 2015. Evidence presented at trial showed that Rivers fraudulently received $71,345.93 from the OHA program.
The Wire Fraud offenses for which Rivers was convicted carry a possible term of imprisonment of up to 20 years and a fine of up to $250,000 for each count. The Theft of Government Money offense carries a term of imprisonment of up to 10 years and a fine of up to $250,000. The False Statement to Government offense carries a term of imprisonment of up to 5 years and a fine of up to $250,000. Sentencing is set before Visiting Judge Anne E. Thompson on September 20, 2019.
The U.S. Army CID – Major Procurement Fraud Unit and Homeland Security Investigations investigated the case. Assistant U.S. Attorney Daniel H. Huston prosecuted the case.
Florida man sentenced for defrauding bank customersRead the Press Release
WHEELING, WEST VIRGINIA – Roger Ernesto Ballester Caser, of Hialeah, Florida, was sentenced this week to five months incarceration for using others’ bank information and personal identification numbers to make purchases, United States Attorney Bill Powell announced.
Caser, age 26, pled guilty to one count of “Access Device Fraud – Use of Unauthorized Access Device” in February 2019. Caser admitted to using Main Street Bank of Wheeling’s customer banking information and PINs to make purchases totaling at least $1,000 in Ohio and Marshall Counties in March 2018.
Caser was also ordered to pay $11,013.92 in restitution.
Assistant U.S. Attorney Jarod J. Douglas prosecuted the case on behalf of the government. The Federal Bureau of Investigation, the Ohio County Sheriff’s Office, the Wheeling Police Department, and the Moundsville Police Department investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Federal Jury in Chicago Convicts Suburban Man of Conspiring to Straw Purchase HandgunsRead the Press Release
CHICAGO — A federal jury in Chicago has convicted a suburban man of conspiring to straw purchase several handguns on behalf of a woman who allegedly tried to smuggle the weapons into Egypt.
OMRAN ISMAIL, 53, of Burbank, was found guilty Wednesday of both counts against him, including one count of conspiracy to knowingly make a materially false statement to a licensed dealer and knowingly and willfully smuggle the firearms on a common carrier, and one count of acquiring a firearm from a licensed dealer by means of a materially false statement. Evidence at trial revealed that Ismail in November 2013 purchased four handguns from a licensed firearms dealer in Tinley Park, and then immediately transferred the guns to co-defendant OLA SAYED so that Sayed could bring them to Egypt. The guns were discovered in Sayed’s checked luggage at O’Hare International Airport in Chicago as she attempted to board a flight to Cairo, via London. Sayed, 47, of Palos Park, was charged in the conspiracy but fled and is considered a fugitive.
The conspiracy count carries a maximum sentence of five years in prison, while the straw purchasing count is punishable by up to ten years. U.S. District Judge Sara L. Ellis set sentencing for Dec. 3, 2019, at 10:00 a.m.
Ismail’s conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; James M. Gibbons, Special Agent-in-Charge of the Chicago office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and Eddie Johnson, Superintendent of the Chicago Police Department. Valuable assistance was provided by U.S. Customs and Border Protection. The government is represented by Assistant U.S. Attorneys Abigail L. Peluso and Katie M. Durick.
“Straw purchasers enable unlawful possession of guns and the violence that may follow,” said U.S. Attorney Lausch. “We will continue to work with our law enforcement partners to hold accountable those who engage in these illicit transactions.”
“Individuals who circumvent our nation’s gun laws to illegally obtain firearms for others stand as a threat to our public safety and national security,” said Special Agent-in-Charge Gibbons. “HSI will continue to work with our law enforcement partners to enforce these vital laws.”
According to evidence presented at the three-day trial, Ismail purchased four 9mm firearms from the dealer on Nov. 18, 2013. Sayed accompanied Ismail to the gun store, and Ismail falsely represented to the dealer that Sayed was his wife. When he purchased the firearms, Ismail completed a federal form falsely certifying that he was the “actual buyer.” Ismail picked up the guns from the dealer five days later, at which time he confirmed that all of his answers on the form were “still true, correct, and complete.” Ismail then immediately transferred all four firearms to Sayed, so that Sayed could take the firearms with her to Egypt.
Sayed purchased two additional 9mm firearms, and then took all six guns with her to O’Hare Airport on Dec. 23, 2013, according to the charges pending against her. Authorities at the airport discovered the guns in Sayed’s checked luggage as she waited to board her flight, the charges allege.
Federal Drug Trafficking Charges Filed Against 3 Flora, Illinois MenRead the Press Release
Three men from Flora, Illinois, have been indicted by a federal grand jury and charged with methamphetamine-related offenses, Steven D. Weinhoeft, United States Attorney for the Southern District of Illinois, announced today.
Ethan K. Doud, 28, Bradley A. Caudle, 30, and Justin A. Schofield, 37, are accused of conspiring to distribute 50 grams or more of crystal methamphetamine (known as "ice") in Clay County and elsewhere. According to the indictment, the conspiracy operated from the fall of 2017 until late January, 2019. Doud is also charged with possessing with the intent to distribute 50 grams or more of crystal methamphetamine on January 6, 2019. Elsewhere in the seven-count indictment, Schofield is charged with distributing methamphetamine on four separate dates in 2018 and with possessing with the intent to distribute methamphetamine on October 22, 2018.
Members of the public are reminded that an indictment is merely a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
If convicted, the conspiracy count exposes all three defendants to a possible punishment of 10 years to life imprisonment, up to a $10,000,000 fine, and supervised release of not less than five years. Doud’s additional charge carries the same penalties, while Schofield could receive as much as 20 years imprisonment and a $1,000,000 fine on each of the five additional counts in which he is named.
The investigation of this case was conducted by the Flora Police Department, the Clay County State’s Attorney’s Office, the Clay County Sheriff’s Office, the Richland County Sheriff’s Office, and the Southeastern Illinois Drug Task Force.
East Nassau Man Arrested for Possession of Unregistered FirearmsRead the Press Release
ALBANY, NEW YORK – Thomas E. Ozga, age 30, of East Nassau, New York, was arrested today on a charge of possessing unregistered firearms.
The announcement was made by United States Attorney Grant C. Jaquith and Kevin M. Kelly, Special Agent in Charge, Homeland Security Investigations (HSI), Buffalo Field Office.
According to the complaint, Ozga possessed multiple, unregistered firearm silencers. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Ozga appeared today before United States Magistrate Judge Christian F. Hummel, who ordered Ozga released with conditions.
If convicted, Ozga faces up to 10 years in prison and a fine of up to $10,000. 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 is being investigated by HSI Office of the Assistant Special Agent in Charge, Albany, and is being prosecuted by Assistant U.S. Attorney Emily C. Powers.
District Heights Man Sentenced to 10 Years in Federal Prison for Serving as Lookout and Driver for Five Armed Commercial RobberiesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Joshua Isaiah Potter, age 22, of District Heights, Maryland, today to 10 years in prison, followed by five years of supervised release, for his participation in a series of commercial robberies in which the robbers brandished a gun.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Special Agent in Charge Jennifer Moore of the Federal Bureau of Investigation, Baltimore Field Office; Acting Chief Russell E. Hamill of the Montgomery County Police Department; Frederick County Sheriff Charles A. “Chuck” Jenkins; and Chief Henry P. Stawinski III of the Prince George’s County Police Department.
“Joshua Potter knowingly chose to be a part of this conspiracy to commit dangerous armed robberies,” said U.S. Attorney Robert K. Hur. “All members of a conspiracy can be held responsible for the actions of all of the conspirators. Potter will now spend 10 years in federal prison, where there is no parole—ever. Put down the guns and save a life—maybe even your own.”
According to his guilty plea, between December 27, 2016 and January 7, 2017, Potter and his co-defendants, Deniro Wesley Southern-Robinson and Deandre Denzil Proctor, conspired with others to commit a series of robberies of businesses. In each robbery, Southern-Robinson and/or Proctor entered the locations, brandished a gun, and robbed the employees of the proceeds of the business, while Potter served as a lookout during the robberies and drove the getaway vehicle.
Specifically, on December 27, 2016, Potter drove co-defendant Deandre Proctor and another conspirator to a convenience store, where Proctor and the co-conspirator entered and robbed the store, stealing approximately $130. Potter served as the lookout and getaway driver. In less than two hours in the early morning of December 29, 2016, the conspirators robbed three businesses in Myersville, Frederick, and Bethesda, Maryland. In each robbery, Southern-Robinson brandished a silver revolver and Proctor brandished a BB gun. Both men covered their faces with bandanas or masks. In the first robbery, they confronted an employee and demanded to know where the safe was. The victim informed them that there was no safe and began pushing one of the robbers before noticing that both appeared to be brandishing firearms. Southern-Robinson and Proctor emptied the cash registers into their pockets and a duffel bag, stealing approximately $517. As they fled, they threatened to kill the employee if he/she called the police. In the other two robberies, Southern-Robinson and Proctor confronted employees and demanded they open the cash registers, stealing $232 and $350, respectively. Potter was the lookout and getaway driver for each robbery.
On January 7, 2017, Potter drove the robbers to a business in Myersville, Maryland. Southern-Robinson and Proctor entered the business, again brandishing a silver revolver and BB gun, respectively, and wearing masks to cover their faces. The robbers confronted two store employees, with Proctor pointing the BB gun at the chest of one of the victim store employees, and asked for the safe. The victim led them to where the safe was located and Southern-Robinson removed cash from the safe and put it in a duffel bag. Southern-Robinson and Proctor stole approximately $773. Potter served as the getaway driver after the robbery was completed.
Several minutes later, law enforcement officers saw Potter’s vehicle traveling from the direction of the business and initiated a traffic stop. Proctor, the front seat passenger, was wearing the same distinctive shoes he had worn in the December 29th robberies. Law enforcement arrested the defendants and obtained a search warrant for the vehicle. Law enforcement seized the silver revolver, a .22-caliber handgun loaded with four rounds of ammunition, from the right rear passenger door, where Southern-Robinson had been seated. From the front passenger floor, where Proctor was sitting, law enforcement recovered black clothing that matched the clothing worn during the robberies, a black BB gun, and the duffel bag that had been used in the robberies. Law enforcement also recovered $789 from the pouch on the back of the front passenger seat, where Southern-Robinson has been seated, and three cell phones, among other items. Additional search warrants were executed at the residences of Southern-Robinson and Proctor that recovered additional cash and other clothing worn during the December 29th robberies.
Deniro Southern-Robinson, age 21, of Largo, Maryland, pleaded guilty to his role in the robberies and was sentenced to 10 years in federal prison. Deandre Denzil Proctor, age 22, of Upper Marlboro, Maryland, has also pleaded guilty and is scheduled to be sentenced on May 6, 2019 at 9:00 a.m.
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. 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.
United States Attorney Robert K. Hur commended the FBI Cross-Border Task Force, the Montgomery County Police Department, the Frederick County Sheriff’s Office, and the Prince George’s County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Elizabeth G. Wright, who is prosecuting the case.
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Decatur Hospital Authority, d/b/a Wise Health System in Decatur, Texas will pay $431,182.96 to the United States for services rendered to patients that were in violation of the Federal False Claims ActRead the Press Release
Memphis, TN – Decatur Hospital Authority, d/b/a Wise Health System in Decatur, Texas will pay $431,182.96 to the United States to resolve allegations of billing false claims to Medicare for genetic testing panels for surgical patients that were not medically reasonable or necessary.
The allegations were that from 2016 to 2018, Decatur Hospital Authority submitted samples from surgical patients to Tennessee based Total Diagnostic II, LLC labs for genetic testing that were not medically reasonable or necessary. This testing caused claims to be filed with Medicare that were false. Under federal law, Medicare will not pay for services that are not medically reasonable or necessary.
The False Claims Act, 31 U.S.C. §§ 3729-3733, provides the United States with a cause of action against any person or entity that knowingly presents, or causes to be presented, a false or fraudulent claim for payment or approval.
"Protecting the health and safety of Medicare patients is one of our primary concerns. When medical providers break the law by defrauding the government by providing medically unreasonable or unnecessary services we will use our resources to combat this fraud and hold them accountable," said D. Michael Dunavant, United States Attorney for the Western District of Tennessee.
This investigation was conducted by the United States Department of Health and Human Services Office of the Inspector General and the United States Attorney’s Office for the Western District of Tennessee.
Assistant United States Attorneys Stuart J. Canale and Matt Waldrop prosecuted this case on behalf of the government.
Damien Nixon Sentenced to 240Months Imprisonment for His Involvement in a Drug Trafficking OrganizationRead the Press Release
Memphis, TN – Damien Nixon, 40, was sentenced to 240 months imprisonment for his role in a conspiracy to possess with intent to distribute in excess of 50 grams of actual methamphetamine. U.S. Attorney D. Michael Dunavant announced the sentence today.
According to information presented in court, Dyersburg Police Department conducted a consensual search pursuant to a probation order at the residence of Nixon. A search of the residence revealed 475 grams of actual methamphetamine in a zip-lock bag, crack cocaine, and approximately $1,500 in U.S. currency. Nixon claimed ownership of the narcotics. Based on the investigation, it was determined that Nixon was receiving the methamphetamine from members of the conspiracy and then distributing to others. A total amount of methamphetamine attributed to Nixon was over 1,133 grams of actual methamphetamine.
On May 1, 2019, U.S. District Court Judge J. Daniel Breen, sentenced Nixon to 240 months imprisonment followed by five years’ supervised release.
U.S. Attorney D. Michael Dunavant said, "Methamphetamine that is trafficked in and through West Tennessee continues to increase in purity, which increases its potential to cause addiction, injury, and death. Criminal enterprises that distribute these harmful drugs into our rural communities can no longer hide. We are taking the fight to the drug trafficking organizations in order to dismantle them, and this substantial sentence will remove a dangerous drug dealer from our streets."
This prosecution is part of an extensive investigation of Organized Crime and Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This case was investigated by the Federal Bureau of Investigation and the Dyersburg Police Department.
Assistant U.S. Attorneys Jerry Kitchen and Hillary Parham prosecuted this case on behalf of the government.
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Commercial Truck Driver Pleads Guilty to Drug Charge that Carries Potential of 10 Years up to Life in PrisonRead the Press Release
DAYTON – Michael D. Nailen, 54, of Glendale, Ariz. pleaded guilty in U.S. District Court to conspiring to distribute large quantities of fentanyl, heroin and cocaine.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angie Salazaar, Acting Special Agent in Charge, Homeland Security Investigations (HSI), Montgomery County Sheriff Rob Streck, Col. Richard S. Fambro, Superintendent, Ohio State Highway Patrol and the Miami Valley Bulk Smuggling Task Force announced the plea entered into before U.S. District Judge Walter H. Rice.
According to court documents, Nailen worked with others to distribute more than 400 grams of fentanyl, 100 grams of fentanyl analogue, one kilogram of heroin and five kilograms of cocaine to Dayton, Ohio and other places throughout the eastern United States.
Nailen worked as a commercial truck driver, and when traveling for work, he permitted other individuals to hide kilogram quantities of controlled substances and bulk amounts of cash in his tractor trailer.
Consistent with this scheme, in December 2018, Nailen met Marco Gonzalez in Dayton at a local shopping center, where he gave Gonzalez a box containing controlled substances. Nailen understood that Gonzalez planned to deliver the package to local drug dealers in Dayton. Nailen and Gonzalez repeated this process in Columbus as well.
Nailen still had hidden within his tractor trailer (which was also carrying food products) the following controlled substances – namely more than: 23 kilograms of fentanyl; six kilograms of heroin; two kilograms of fentanyl analogue and five kilograms of cocaine. Before he and Gonzalez could deliver these additional drugs to other cities in the eastern United States, law enforcement discovered the contraband.
Gonzalez pleaded guilty to the same narcotics crime as Nailen. Both men are scheduled for sentencing in August.
U.S. Attorney Glassman commended the investigation of this case by HSI, the Miami Valley Bulk Smuggling Force, Montgomery County Sheriff’s Office and Ohio State Highway Patrol, as well as Assistant United States Attorney Brent Tabacchi, who is representing the United States in this case.
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Columbia Man Sentenced to over 3 Years in Federal Prison for Unlawful Possession of FirearmsRead the Press Release
Columbia, South Carolina ---- United States Attorney Sherri A. Lydon announced today that Tavares Antonio Cromer, age 25, of Columbia, South Carolina, was sentenced to over three years in federal prison after pleading guilty in December 2018 to being a felon in possession of firearms and ammunition.
Evidence presented in court established that on March 9, 2018, Columbia Police Department officers stopped a vehicle on Bailey Street to investigate suspicious activity. Officers could smell marijuana as they approached the vehicle, and a small amount of marijuana was seen in a glass jar on the front seat. During a search of the vehicle’s glove compartment, three loaded firearms were found. One of the firearms was reported stolen out of Rock Hill. Cromer claimed possession of the firearms, which he had placed inside the glove box immediately prior to the traffic stop.
Federal law prohibits Cromer from possessing firearms based on 2014 convictions for assault and battery by mob 3rd degree, assault and battery 1st degree, and strong arm robbery.
United States District Judge Joseph F. Anderson, Jr., of Columbia, accepted Cromer’s guilty plea and sentenced him to 40 months in federal prison, followed by a term of court-ordered supervision. There is no parole in the federal system. Assistant United States Attorneys William E. Day, II, and Christopher D. Taylor of the Columbia office prosecuted the case.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Columbia Police Department. It was prosecuted as part of the joint federal, state, and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Project CeaseFire is South Carolina’s implementation of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally-based prevention and reentry programs for lasting reductions in crime.
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Cocaine Kingpin with Mexican Cartel Connections and His Associate Plead Guilty to Drug Conspiracy ChargesRead the Press Release
St. Louis, MO – Adrian “AD” Lemons, 41, of Saint Louis, MO, and Virgil “V.G.” Sims, 34, of Kennett, MO, each pleaded guilty to one count of cocaine conspiracy. Each man entered his guilty plea before United States District Court Judge Henry E. Autrey on May 3 and May 1, 2019, respectively. Sentencing for Sims is set for July 30, 2019. Lemons’ sentencing date is July 31, 2019.
According to court documents, between 2012 and 2016, Lemons worked with representatives of the Mexican cartel to receive and distribute vast kilogram quantities of cocaine within the City of Saint Louis. Lemons also supplied large quantities of cocaine to large-scale, mid-level, and street-level drug dealers who also sold cocaine and cocaine base (crack) within the Saint Louis area and beyond. Virgil Sims was one such dealer who distributed cocaine supplied to him directly by Lemons in Saint Louis as well as the southeast Missouri region. Sims also undertook efforts to maintain Lemons’ drug trafficking organization once Lemons was federally indicted in January 2016.
As to the larger drug conspiracy, the Mexican cartel coordinated routine bulk shipments of cocaine from Reynosa, Mexico, through the Rio Grande Valley, and then to the Saint Louis, Missouri area. The cocaine shipments were transported via truck and, in turn, bulk quantities of United States currency were shipped back through the southern United States to Mexico as payment for the cocaine. During the course of the overall investigation, agents seized firearms; drug trafficking tools; drug ledgers; over 64 kilograms of cocaine; and over $1.3 million directly attributable to Lemons and his associates, including Sims. Lemons also owned and utilized multiple properties located throughout the City of Saint Louis in furtherance of the drug trafficking conspiracy, including, but not limited to, properties at 11553 Poeggemoeller Avenue; 824 and 1600 McLaran; 6327 Theodosia Avenue; 7230 North Broadway; 8573 Broadway; 877 Wall; and 7118 Idlewild. Lemons specifically admitted that he was the manager of this extensive criminal enterprise.
Under the drug conspiracy charge, Sims faces a term of imprisonment of not less than five years and not more than forty (40) years in prison. Under the same charge, Lemons faces a mandatory minimum penalty of 10 years and up to life imprisonment. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges. At sentencing the United States and Sims will recommend a five-year term of imprisonment. As to Lemons, the parties will be recommending 20 years in prison.
Lemons and Sims are two of 34 defendants named in federal indictments consisting of charges related to drug trafficking and drug trafficking related violence, including multiple homicides. In November 2018, the United States Attorney General directed the United States Attorney’s Office to seek the death penalty against one of those defendants, Anthony “TT” Jordan. Jordan has pleaded not guilty to the charges against him. He is presumed innocent until the United States proves him guilty beyond a reasonable doubt.
This case was investigated by Homeland Security Investigations; Drug Enforcement Administration; Saint Louis Metropolitan Police Department; the Kennett, Missouri, Police Department; the United States Marshals Service; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Federal Bureau of Investigation.
Chicago-Area Musician Sentenced to 10 Years in Prison for Enticing Underage Girls to Produce Sexually Explicit VideosRead the Press Release
CHICAGO — A musician from a west suburb of Chicago was sentenced today to ten years in federal prison for enticing several underage girls, some as young as 14 years old, to produce sexually explicit videos of themselves.
AUSTIN JONES, 26, of Bloomingdale, pleaded guilty earlier this year to one count of receipt of child pornography. U.S. District Judge John Z. Lee imposed the sentence after a hearing in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and James M. Gibbons, Special Agent-in-Charge of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Chicago. The Illinois Attorney General’s Internet Crimes Against Children Task Force and the Bloomingdale Police Department provided valuable assistance in the investigation.
“Production and receipt of child pornography are extraordinarily serious offenses that threaten the safety of our children and communities,” Assistant U.S. Attorney Katherine Neff Welsh argued in the government’s sentencing memorandum. “Jones’s actions took something from his victims and their families that they will never be able to get back.”
“Today’s sentencing of Austin Jones represents a major step towards justice for the young victims whom he manipulated and exploited,” said Special Agent-in-Charge Gibbons. “HSI is committed to protecting the most vulnerable members of our society, our children, from predators who abuse their trust.”
Jones is a musician with a significant following on social media, including Facebook and YouTube. His online music videos have been viewed millions of times.
Jones admitted in a plea agreement that in 2016 and 2017 he chatted with six underage girls on Facebook and enticed them to produce pornographic videos of themselves and send them to him. Jones told some of his victims to send him the videos as a way to “prove” they were his biggest fans. He also told some of his victims that the videos were part of a modeling opportunity, and that he could assist them in gaining followers on Instagram.
In addition to the six victims who sent videos, Jones further admitted in the plea agreement that he used Facebook on approximately 30 other occasions to attempt to persuade minor girls to send him sexually explicit videos and photographs.
If you believe you are a victim of sexual exploitation, you are encouraged to call the ICE Tip Line at 1-866-DHS2-ICE (1-866-347-2423) or the National Center for Missing and Exploited Children at 1-800-843-5678. The hotlines are available 24 hours a day, seven days a week.
Charleston Bank Robber Sentenced to 8 Years in Federal PrisonRead the Press Release
Charleston, South Carolina --- United States Attorney Sherri A. Lydon announced today that Johnathan Clayton, age 39, of Charleston, South Carolina, was sentenced to eight years in federal prison after pleading guilty to bank robbery by force, violence, and intimidation.
Evidence presented to the court showed that on October 13, 2017, at approximately 11:35 a.m., a bank on Broad Street was robbed by a black male, approximately 30 years old and 6’7” tall. The bank teller stated that the man was wearing a work uniform and demanded money from the teller’s drawer or he would shoot her. The teller did not see a gun, but the male had his left arm by his side and looked as though he was concealing something near his left pant pocket. He began to count down from five and told the teller to “stop procrastinating.” After he received approximately $1,860, he fled the bank on foot.
City of Charleston Police Department officers reviewed the surveillance video and determined that the suspect was Johnathan Clayton. The bank teller and other witnesses at the bank were able to positively identify Clayton as the suspect in a photo lineup.
United States District Judge Richard M. Gergel sentenced Clayton to a total of 96 months in federal prison, to be followed by a 3-year term of court-ordered supervision. There is no parole in the federal system.
This case was investigated by the Charleston City Police Department and the Federal Bureau of Investigation (FBI). Assistant United States Attorney Emily Limehouse of the Charleston office prosecuted the case.
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Career criminal sentenced to federal prison for convenience store robberyRead the Press Release
SAVANNAH, Ga: A career criminal who pled guilty to robbing a convenience store was sentenced to 15 years in federal prison.
Quinton Williams, 30, of Savannah, was sentenced to 180 months in prison by U.S. District Court Judge R. Stan Baker, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Williams, who pled guilty to Interference with Commerce by Robbery, also was sentenced to serve three years of supervised release after completion of his sentence, and ordered to pay $2,000 in restitution to his victims. There is no parole in the federal prison system.
As noted during court proceedings, Williams was under the influence of cocaine when he entered the Garden City Convenience store at 4801 Augusta Road on Sept. 16, 2018, and pointed a gun at the store manager. With several customers in the store at the time, Williams pointed a gun at the manager’s face and forced him to lie on the floor before stealing cash. Williams was arrested two days later. Due to the seriousness of his criminal history, Williams was judged to be a career offender with numerous violent felony convictions and offenses involving firearms.
“As we’ve seen too often, violent, career criminals like Quentin Williams are among the relative handful of people who cause much of the crime in our communities,” said Southern District of Georgia U.S. Attorney Bobby L. Christine. “Thanks to our diligent law enforcement agencies, this is now one fewer violent criminal for our citizens to fear.”
“Williams, with multiple prior felony convictions, once again put innocent civilians at risk during the commission of this robbery. He clearly has no regard for the law,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI is proud to work with our local law enforcement partners in helping to convict these repeat offenders at the federal level, where they face stiffer penalties and no opportunity for parole.”
The case was investigated by the FBI’s Southeast Georgia Violent Crimes Task Force and the Garden City Police Department.
CEO of medical equipment company sentenced to 40 months for Medicare fraudRead the Press Release
SAVANNAH, GA: The chief executive officer of a string of Savannah-based durable medical equipment companies was sentenced to more than three years in prison for a scheme that defrauded Medicare out of millions of dollars.
Roderic Bain, 57, of Savannah, who pled guilty to one count of False Statements Relating to Health Care Matters, was sentenced in U.S. District Court in Savannah to serve 40 months in prison and to pay more than $1.9 million in fines and restitution, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.
According to court documents and as previously announced, Bain, who owned and operated a series of durable medical equipment companies, oversaw a multi-year scheme resulting in nearly $10 million in claims billed to Medicare. Working with a number of others, Bain operated a network that paid kickbacks to obtain patient information, specifically that of Medicare patients. Through a third-party biller, Bain would then bill Medicare Part B and Part C plans for medically unnecessary medical equipment and orthotics, including a variety of back and knee braces that were not ordered as medically necessary by a physician. During the course of the investigation, agents determined Bain and his affiliates were linked to a larger nationwide scheme, recently announced as “Operation Brace Yourself.” Bain is the first defendant sentenced under the ongoing investigation.
“Schemes like this put greed before need – using the identities of those who are assumed to be medically fragile to exploit programs intended for the benefit of patients,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “Ultimately, such fraud hurts all patients by further straining the limited funding available for healthcare in an already struggling system.”
“Roderic Bain is only one piece of the puzzle, who for just his part in a nationwide scheme was responsible for nearly $10 million in fraudulent Medicare claims. That is a snapshot of how prevalent the problem of healthcare fraud is,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Every tax-paying citizen is a victim when providers like Bain are driven by personal greed. We are proud of the work our agents and law enforcement partners are doing, and will continue to do, to stem this scourge on our federally-subsidized programs.”
“This sentence is a warning to those who enrich themselves through fraud scams at the expense of taxpayers,” said Special Agent in Charge Derrick L. Jackson of the Department of Health and Human Services, Office of Inspector General. “Working closely with our law enforcement partners, we will continue to crack down on such schemes, which waste taxpayer funds designed to care for vulnerable patients.”
“Cases of this magnitude can only be tackled using a strategy that recognizes that the most effective way to fight these large criminal networks is by combining the strengths, resources, and expertise of our federal agencies,” said Resident Agent in Charge Glen M. Kessler of the U.S. Secret Service. “For those companies, medical professionals and criminal organizers that exploit America’s healthcare system, we will continue working with our law enforcement partners to prosecute those who put greed before the welfare of our citizens.”
Nationwide, “Operation Brace Yourself” involved the payment of illegal kickbacks and bribes by companies in exchange for the referral of Medicare beneficiaries by medical professionals working with fraudulent telemedicine companies for back, shoulder, wrist and knee braces that are medically unnecessary. Some of the defendants controlled an international telemarketing network that lured hundreds of thousands of elderly and/or disabled patients into a criminal scheme that crossed borders, involving call centers in the Philippines and throughout Latin America. The defendants paid doctors to prescribe medical equipment either without any patient interaction or with only a brief telephone conversation with patients they had never met or seen. As announced recently, “Operation Brace Yourself” led to the execution of more than 80 search warrants in 17 federal districts with charges against 24 defendants so far.
This investigation remains ongoing. Any doctors or medical professionals who have been involved with alleged fraudulent telemedicine and medical equipment marketing schemes should report this conduct to the FBI hotline at 1-800-CALL-FBI. Any beneficiaries who believe their identity may have been used fraudulently also should contact the FBI hotline.
The operation was investigated in the Southern District of Georgia by the FBI, the Health and Human Services Office of Inspector General, and the United States Secret Service. Assistant United States Attorney J. Thomas Clarkson is prosecuting this case on behalf of the United States.
Business Charged with Unlawful Employment of an AlienRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that N & F Logistics, Inc., a shipping and trucking business located in Harahan, Louisiana, was charged Tuesday, April 30, 2019 in a one-count bill of information with unlawful employment of an alien in violation of 8 U.S.C. '' 1324a (a)(1)(A) and (f)(1).
If convicted, N & F Logistics, Inc. faces a maximum fine of up to $250,000.00 and a $100 special assessment.
U. S. Attorney Strasser reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
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Buffalo Man Sentenced to Nearly Six Years in Prison for Selling Crack CocaineRead 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 Derrick Washington, 41, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, 28 grams or more of crack cocaine, was sentenced to serve 70 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Paul C. Parisi, who handled the case, stated that between January 2018 and February 14, 2018, the defendant conspired with others to sell crack cocaine. On four separate occasions during that time, Washington sold crack cocaine to an individual working with the Drug Enforcement Administration.
On February 14, 2018, investigators executed a federal search warrant at 1502 Niagara Street and seized suspected crack cocaine, two digital scales, and a SKS rifle.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division, the Buffalo Police Department, under the direction of Commissioner Byron Lockwood, and the Cheektowaga Police Department, under the direction of Chief David Zack.
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Buffalo Man Sentenced for Conspiring to Sell FentanylRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Jose Alvarez, 26, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, butyryl fentanyl, was sentenced to serve 12 months in prison by U.S. District Court Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Brendan T. Cullinane, who handled the case, stated that on July 27, 2017, Drug Enforcement Administration and Homeland Security Investigations Special Agents executed a search warrant on Alvarez’s vehicle. During the search, agents recovered 20 bags of butyryl fentanyl, a Schedule I controlled substance. The investigation determined that the defendant, along with his co-defendants, were staying at a hotel and casino located in Salamanca. Subsequently, law enforcement executed a search warrant in their hotel room, where agents recovered another 196 bags of butyryl fentanyl. Alvarez also admitted selling butyryl fentanyl on three prior occasions in Salamanca in May and July of 2017.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan; Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the NYS State Police Bureau of Criminal Investigation, under the direction of Major Edward Kennedy; and the Southern Tier Regional Drug Task Force, under the direction of Cattaraugus County Sheriff Timothy Whitcomb.
Buffalo Man Pleads Guilty to Being A Felon in Possession of A FirearmRead 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 Andre Baker, 28, of Buffalo, NY, pleaded guilty to felon in possession of a firearm before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Emmanuel O. Ulubiyo, who is handling the case, stated that on March 25, 2018, two Buffalo Police Officers were flagged down by an unidentified civilian yelling and screaming “he has a gun” while simultaneously pointing his hands in the direction of a parking lot in the vicinity of Jefferson Avenue and Genesee Street. The officers observed another civilian pointing a firearm at the defendant as well as a firearm on the ground next to the defendant’s feet. After making eye contact with the officers, the defendant jumped into the rear seat of a vehicle. Seconds later, Baker exited the vehicle and fled on foot. The defendant was quickly apprehended in the vicinity of Virginia and Cherry Streets by the officers.
One of the civilians, who identified himself as a sworn Peace Officer and licensed gun owner, reported that he observed and later broke up a physical fight between the defendant and an unidentified male and female outside Arthur’s Pub in the vicinity of Jefferson Avenue and Genesee Street. After he broke up the fight, the civilian stated that Baker went across the street and got into the aforementioned vehicle. The civilian then observe the female involved in the fight approach the car and spit in the defendant’s face. The defendant exited the car, approached the rear bumper, and removed a gun. The civilian withdrew his concealed firearm from his holster, pointed the gun at Baker and gave a verbal command to the defendant to drop his gun. Baker complied.
Officers subsequently recovered a loaded, .380 caliber pistol, on the ground next to where the defendant was standing prior to fleeing. Officers also recovered a loaded 12 gauge shotgun from the vehicle.
Baker was previously convicted of Attempted Criminal Possession of a Weapon in the 2nd degree in Erie County Court and is legally prohibited from possessing a firearm.The plea is the result of an investigation by the Buffalo Police Department, under the direction of Commissioner Byron Lockwood, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
Sentencing is scheduled for August 7, 2019, before Judge Arcara.
Bridgeville Man Sentenced to Prison for Child Pornography PossessionRead the Press Release
PITTSBURGH, PA - A former resident of Allegheny County, Pennsylvania, has been sentenced in federal court to two years’ (24 months’) imprisonment, followed by 10 years’ supervised release, on his conviction of possession of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Nora Barry Fischer imposed the sentence on John Edward Desalome, age 31, of Bridgeville, Pennsylvania.
According to information presented to the court, Desalome possessed on November 23, 2016, approximately 143 videos in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age. Desalome had been identified as a user of Bit Torrent, a peer-to-peer filing sharing network through which he was receiving, distributing, and possessing child pornography videos.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation (FBI) for the investigation leading to the successful prosecution of Desalome.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Birmingham Man Convicted of Trafficking Nearly Half a Kilogram of Deadly FentanylRead the Press Release
BIRMINGHAM – Yesterday a federal jury convicted a Birmingham man of possessing nearly half a kilogram of the highly addictive and extremely potent opioid fentanyl with the intent to distribute, announced U.S. Attorney Jay Town and Drug Enforcement Administration (DEA) Assistant Special Agent in Charge Clay Morris.
Following a two-day trial before U.S. District Judge R. David Proctor, the jury convicted BOB COTCHERY III, 28, of one count of possession with the intent to distribute over 400 grams of fentanyl.
According to the evidence at trial, on the evening of December 14, 2017, Birmingham police officers on routine patrol in the Norwood area of Birmingham attempted to stop COTCHERY for a traffic violation. Seeing police, COTCHERY bailed out of his moving car and fled. Officers gave chase into a dark alley where they saw COTCHERY crouch down near a car just before he was taken into custody. Under the car near where COTCHERY bent down, officers recovered a Ziploc plastic bag, which was later determined to contain 494 grams of fentanyl. COTCHERY, who has previous drug trafficking convictions, faces a minimum sentence of 10 years and a maximum sentence of life in prison for his crimes.
“Fentanyl is responsible for too many overdose deaths across Alabama and is something we wish we could uninvent”, Town said. “As Cotchery found out today, criminals that peddle poisonous opioids like this, from clinic to street corner, will continue to be targets for prosecution. We will even leave a light on for them in a federal prison cell.”
"Today’s guilty verdict should send a clear message to anyone involved in the distribution of synthetic opioids. The DEA and our law enforcement partners will work tirelessly to protect our communities, families, and children,” said Morris. “The distribution of any drug, especially fentanyl, will not be tolerated.”
The DEA investigated the case along with the Birmingham Police Department, which Assistant U.S. Attorneys Gregory R. Dimler and Mohammad Khatib prosecuted.
Biddeford Man Pleads Guilty to Conspiracy and Theft of Firearms from a Licensed Firearms DealerRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Danny Rydle, 29, of Biddeford, Maine pled guilty today in U.S. District Court to conspiracy and theft of firearms from a federally licensed firearms dealer.
According to court records, on February 20, 2018, the defendant and another individual stole firearms from a federally licensed firearm dealer in Biddeford. The theft was discovered by the Biddeford Police Department, who responded to a burglar alarm and found a broken glass door at the building’s entrance. The responding officers used a police K9 to locate a price tag that had been attached to one of the stolen firearms. The price tag had Rydle’s blood on it.
Rydle faces up to five years for conspiracy and up to 10 years for theft, and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the Biddeford Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Ashland Cardiologist Sentenced to 60 Months for Health Care Fraud and False StatementsRead the Press Release
COVINGTON, Ky. – Late yesterday, Ashland cardiologist Dr. Richard E. Paulus was sentenced, by U.S. District Court Judge David L. Bunning, to serve 60 months in federal prison for health care fraud and false statements. In October 2016, a federal jury convicted Paulus, 71, of one count of health care fraud and ten counts of making false statements relating to health care matters, after hearing evidence that Paulus defrauded Medicare, Medicaid, and private insurers, by implanting medically unnecessary stents in his patients and falsifying the degree of stenosis in their medical records. After the trial, the district court granted Paulus’s motion for an acquittal. The Sixth Circuit Court of Appeals later reversed that decision, on June 25, 2018, and reinstated Dr. Paulus’s conviction, resulting in his formal sentencing.
According to evidence presented at trial, from 2008 to 2013, Paulus performed invasive heart procedures on patients who did not need them. In order to justify these unnecessary procedures, Paulus falsified patients’ medical records, exaggerating their medical condition and making it appear that the heart procedures were necessary and qualified for payment. From 2006 to 2012, Paulus billed Medicare for more heart procedures than any other cardiologist in Kentucky, and was fifth in the nation in terms of amount paid by Medicare for stent procedures.
Paulus’s sentence was based on stents he placed in seventy-one patients whose blockages were significantly less than 70 percent, where Paulus recorded them at or near 70 percent in the records, in order to be paid for the procedures. These medically unnecessary procedures were performed during his tenure at King’s Daughters Medical Center in Ashland.
In addition to his term of imprisonment, Paulus must pay $1.1 million in restitution to Medicare, Medicaid, and other private insurers who were financial victims of his scheme. Under federal law, Paulus must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for three years following release.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, Derrick L. Jackson, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of Inspector General, Atlanta Division; James Robert Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation, Louisville Division, and Andy Beshear, Kentucky Attorney General, jointly announced the sentence.
The investigation was conducted by FBI and the Department of Health and Human Services, and the Kentucky Office of Attorney General-Medicaid Fraud and Abuse Control Unit. Former Assistant United States Attorney Andrew Sparks and Assistant United States Attorney Kate Smith prosecuted the case on behalf of the federal government.
Armed Drug Dealer Sentenced to Prison as Career OffenderRead the Press Release
RICHMOND, Va. – A Goochland man was sentenced today to more than 15 years in prison for possession with the intent to distribute cocaine.
According to court documents, Richmond Police officers executed a traffic stop on Markenon Blakely, 40, in February 2018. Video camera footage showed that the officers were concerned when they saw Blakely dip forward in his seat and then sit back up as they approached his vehicle. For their safety, the officers directed Blakely to exit his vehicle, but he steadfastly refused. After politely speaking to Blakely for several minutes, during which they explained why they needed Blakely to step out of his car, Blakely still refused to exit the vehicle. The officers finally physically removed him from the car. In subsequently patting Blakely down for their safety, the officers discovered a loaded Glock .45 caliber pistol in Blakely’s waist area. They then found over $1,000 in Blakely’s left front pocket and nearly a half of a gram of marijuana in his right front pocket.
In a subsequent search of Blakely’s vehicle, the officers recovered 14.62 grams of cocaine hydrochloride and 2.33 grams of crack. They also found a second magazine for the Glock handgun, with ammunition in it. In pleading guilty in January 2019, Blakely admitted he possessed the drugs with the intent to distribute them and that the money was the proceeds of the unlawful distribution of controlled substances.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson. Assistant U.S. Attorney Stephen W. Miller 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. 3:18-cr-126.
Armed Career Criminal Sentenced for Possession of AmmunitionRead the Press Release
NEWPORT NEWS, Va. – A Newport News man was sentenced today to more than 17 years in prison for the unlawful possession of ammunition by a convicted felon.
“While firing multiple shots in the air in public is extremely dangerous, it may not seem to warrant federal prosecution when viewed without broader context,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “That action is more than just reckless when preceded by pointing a loaded weapon at another person’s face and making unprovoked threats of violence. When you add two decades-plus of violent and dangerous criminal activity to the story, it is time for the government to firmly enforce its primary mission: to protect its citizens. It is Claud’s significant criminal history that qualified him as an armed career criminal, and it is because of that status that we are able to protect the community from him for years to come.”
According to court documents, Rondale Latte Claud, 42, was inside a vehicle that pulled up to a fuel pump at a 7-Eleven on Jefferson Avenue in Newport News in June 2018 at approximately 2:00am with three other individuals. While one individual pumped gas into the vehicle, three other individuals, including Claud, entered the store. Upon exiting the store, Claud encountered a 7-Eleven employee on break outside talking to a friend in the parking lot. Unprovoked, Claud harassed and threatened the employee with violence, shouting at her as he walked back to the vehicle. With Claud in the passenger seat, the vehicle exited the 7-Eleven, drove past the employee still outside, and Claud rolled down his window, pointed a gun at her face, and then pointed the firearm in the air and fired four shots. He fired four more shots in the air as the vehicle exited the 7-Eleven. No one was injured.
Although the gun was never recovered, investigators used the National Integrated Ballistic Information Network (NIBIN), to match the shell casings from the 7-Eleven incident with shell casings from a homicide occurring three days later. Claud is not believed to be connected with the homicide but refused to assist law enforcement with the investigation.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, and Steve R. Drew, Chief of Newport News Police, made the announcement after U.S. District Judge Arenda Wright Allen accepted the plea. Assistant U.S. Attorney Peter G. Osyf is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:18-cr-91.
Alleged Fraudster Indicted in Investment SchemeRead the Press Release
SAN FRANCISCO – Ramesh Kris Nathan was indicted on charges related to an alleged investment fraud scheme, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. In an indictment filed January 17, 2019, and unsealed today, a federal grand jury charged Nathan with fraudulently obtaining investors for a company with no legitimate underlying business activities by promising their money would be used to fund research and develop prototype spacecraft, space-related propulsion systems, and related technologies.
According to the indictment, between June 2016 and August 2017, Nathan, 37, a U.S. national whose last known address is in Chennai, India, created a Nevada corporation called Relativity Research Fund, Inc. (Relativity). Relativity had no legitimate underlying business activities. Instead, Nathan allegedly used the corporation to induce potential investors to provide funds for non-existent business enterprises. Further, Nathan allegedly opened and maintained a bank account using the name and personal identification of an investor who did not authorize Nathan to do so.
The indictment further describes how Nathan allegedly induced potential investors to provide funds by making false and misleading statements on Relativity’s website and in emails to potential investors. For example, Nathan held out the company as being involved in the development of numerous technology-related enterprises including advanced robotics, space travel technology, and combustion-free propulsion systems. Nathan also represented that the company had a $10,000,000 capital investment, had seven worldwide offices, employed 15,456 employees, generated gross revenue of $36.87 billion in the fourth quarter of 2016, and earned a profit of $29.8 billion in the fourth quarter of 2016. In addition, Nathan represented that Relativity had completed all of the requirements for listing its shares on the Nasdaq Private Market, and that investors would be able to trade their Relativity shares on that market. According to the indictment, none of these facts was true. Further, Nathan allegedly either spent the investor funds on his own personal expenses or transferred investor funds to his overseas bank account, his mother, or his then-girlfriend.
In sum, the indictment charges Nathan with six counts of wire fraud, in violation of 18 U.S.C. § 1343, two counts of money laundering, in violation of 18 U.S.C. § 1957; and one count of aggravated identity theft, in violation of 18 U.S.C. § 1028A. Nathan was arrested yesterday in Los Angeles and made his initial appearance today. His next appearance has not be scheduled as of the time of this writing.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of 20 years in prison and a maximum $250,000 fine on each count of wire fraud as well as 10 years in prison and a $250,000 maximum fine for each count of money laundering. Further, if convicted of the aggravated identity theft count, Nathan faces a mandatory two years in prison consecutive to any other sentence, and a maximum $250,000 fine. In addition, the court also may order an additional term of supervised release, fines or other assessments, and restitution, if appropriate. 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.
Special Assistant U.S. Attorney Christopher Vieira is prosecuting this case with the assistance of Kimberly Richardson. This prosecution is the result of an investigation by the Federal Bureau of Investigation.
3 Germans Who Allegedly Operated Dark Web Marketplace with over 1 Million Users Face U.S. Narcotics and Money Laundering ChargesRead the Press Release
LOS ANGELES – Following a nearly two-year international investigation involving U.S. law enforcement and authorities in Germany and the Netherlands, federal prosecutors have charged three German nationals with being the administrators of Wall Street Market (WSM), which was one of the world’s largest dark web marketplaces that allowed vendors to sell a wide variety of contraband, including an array of illegal narcotics, counterfeit goods and malicious computer hacking software.
A criminal complaint filed Wednesday in United States District Court in Los Angeles alleges that the three defendants, who currently are in custody in Germany, were the administrators of WSM, a sophisticated online marketplace available in six languages that allowed approximately 5,400 vendors to sell illegal goods to about 1.15 million customers around the world. Like other dark web marketplaces previously shut down by authorities – Silk Road and AlphaBay, for example – WSM functioned like a conventional e-commerce website, but it was a hidden service located beyond the reach of traditional internet browsers, accessible only through the use of networks designed to conceal user identities, such as the Tor network.
For nearly three years, WSM allegedly was operated on the dark web by the three men who now face charges in both the United States and Germany. An “exit scam” was allegedly conducted last month when the WSM administrators took all of the virtual currency held in marketplace escrow and user accounts – believed by investigators to be approximately $11 million – and then diverted the money to their own accounts. Exit scams are common among large dark-net marketplaces, which typically hold money in escrow while a vendor delivers illicit goods.
The three defendants charged in the United States were arrested in Germany on April 23 and 24. They are a 23-year-old resident of Kleve, Germany; a 31-year-old resident of Wurzburg, Germany; and a 29-year-old resident of Stuttgart, Germany. The complaint charges the men with two felony counts – conspiracy to launder monetary instruments, and distribution and conspiracy to distribute controlled substances. These three defendants also face charges in Germany.
A fourth defendant linked to Wall Street Market was charged yesterday in a criminal complaint filed in United States District Court in Sacramento, California. Marcos Paulo De Oliveira-Annibale, 29, of Sao Paulo, Brazil, also faces federal drug distribution and money laundering charges for allegedly acting as a moderator on WSM, who, among other things, mediated disputes between vendors and their customers. Annibale, who used the online monikers “MED3LIN,” also acted as a public relations representative for WSM by, among others things, promoting WSM on websites such as Reddit, according to the complaint. The case naming Annibale was unsealed today when Brazilian authorities executed a search warrant at his residence.
The two cases filed in the United States are the result of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, the U.S. Postal Inspection Service, IRS Criminal Investigation, and U.S. Immigration and Customs’ Enforcement’s Homeland Security Investigations (HSI).
“We continue to keep pace with sophisticated actors on the dark web by increasing our technical abilities and working even more closely with our international law enforcement partners,” said United States Attorney Nick Hanna. “While they lurk in the deepest corners of the internet, this case shows that we can hunt down these criminals wherever they hide.”
“We are on the hunt for even the tiniest of breadcrumbs to identify criminals on the dark web,” said United States Attorney McGregor W. Scott for the Eastern District of California. “The prosecution of these defendants shows that even the smallest mistake will allow us to figure out a cybercriminal’s true identity. As with defendant Marcos Annibale, forum posts and pictures of him online from years ago allowed us to connect the dots between him and his online persona ‘Med3l1n.’ No matter where they live, we will investigate and prosecute criminals who create, maintain, and promote dark web marketplaces to sell illegal drugs and other contraband.”
“Just as international law-enforcement partners began dismantling Wall Street Market and taking action against its members, as alleged in the complaint, the site’s administrators decided to steal their customers’ money via an exit scam,” said Assistant Attorney General Brian Benczkowski. “This operation sends a crystal-clear message: dark markets offer no safe haven. The arrest and prosecution of the criminals who allegedly ran this dark-net marketplace is a great example of our partnership with law enforcement authorities in Europe, with the support of Europol, and demonstrates what we can do when we stand together.”
“Investigators from many countries overcame the national, legal and diplomatic challenges to hold accountable sophisticated actors who operated one of the largest known encrypted marketplaces in the shadowy environment of the Dark-net,” said Assistant Director Paul Delacourt of the FBI’s Los Angeles Field Office. “This case is an example of successful global collaboration among law enforcement entities who share the many challenges of prosecuting transnational criminal activity conducted by individuals who operate anonymously across borders.”
The affidavit in support of the criminal complaint filed in Los Angeles outlines how the defendants operated a sophisticated online marketplace that offered encrypted communications between buyers and sellers, as well as an online forum to discuss vendors and the quality of their wares. The affidavit also describes an international investigation that was able to identify the three administrators of WSM, show how they previously operated another German-based dark-net marketplace that shut down in 2016, and link them to computer servers in Germany and the Netherlands that were used to operate WSM and process virtual currency transactions.
The three defendants allegedly created WSM, maintained the website, and operated the marketplace to ensure that buyers could access vendor pages and that financial transactions were properly processed. The investigation outlined in the complaint affidavit linked the three defendants to WSM in a number of ways, including their access to the WSM computer infrastructure. One defendant, for example, used virtual private networks to access WSM computers, but when a VPN connection would fail, his IP was revealed and authorities were able to identify his specific location.
The three defendants charged in Los Angeles were arrested in Germany after the WSM administrators conducted an exit scam in the wake of WSM recently becoming regarded as the world’s pre-eminent dark web marketplace and gaining a significant influx of new vendors and users, according to the affidavit. On April 16, vendors realized they could not collect the virtual funds that had been placed in escrow by their customers, which prompted German authorities to execute a series of arrest and search warrants.
The complaint affidavit identifies several cases that have been filed in the United States against WSM vendors. One dark-net vendor who advertised on WSM is currently serving a 12-year federal prison sentence after being convicted in the Western District of Wisconsin for distributing a fentanyl analogue resulting in the overdose death of a Florida resident who ordered a nasal spray laced with the powerful opioid from the vendor.
Two of the “top vendors” on WSM – identified by the online monikers Platinum45 and Ladyskywalker – were based in the Los Angeles area and were major drug distributors. One vender, “Ladyskywalker,” operated on several dark-net marketplaces, where the individual advertised and sold opioids such as fentanyl, oxycodone and hydrocodone. The second top vendor – who used the moniker “Platinum45” and operated on at least two dark-net marketplaces, including WSM – advertised and sold drugs such as methamphetamine, Adderall and oxycodone to customers in the United States and around the world, including in Germany and Australia. “Platinum45” also manufactured Adderall tablets and advertised the sale of up to 1 kilogram quantities of methamphetamine on WSM.
“The dark web marketplace, Wall Street Market, was one of the largest operating hosts for vendors peddling illegal wares,” said DEA San Francisco Special Agent in Charge Chris Nielsen. “Law enforcement is always adapting to changes in technology and this case sends a clear message to those breaking the law and attempting to hide behind the illusion of anonymity – we will identify and find you. The success of this case is due to the excellent cooperation between law enforcement agencies from around the globe who delivered another blow to criminal networks operating in the underground cyberspace.”
“Anyone who thinks the dark web is a safe place to conduct illegal commerce should know they are not anonymous,” said Inspector in Charge Michael Ray of the Postal Inspection Service. “They will be found and they will be brought to justice. The Postal Inspection Service has a highly trained, skilled and committed cyber unit that works tirelessly with other law enforcement agencies to disrupt marketplaces and stop vendors from using the U.S. mail to ship illegal goods and dangerous drugs.”
“Taking down this site is a huge win for past and future victims of crimes perpetrated due to the proliferation of illegal products and services being sold,” said Chief Don Fort of IRS Criminal Investigation. “We are committed to using our unique financial investigative abilities to tackle these kinds of threats head on to protect citizens, to promote cyber security and to inform the global community.”
“HSI and our partners are at the forefront of combating narcotics trafficking, financial crimes and illicit activities purveyed by online black markets,” said HSI Acting Executive Associate Director Alysa D. Erichs. “While criminal operators may continue to grow the reach of their businesses through these dark web marketplaces, ultimately they do not escape the reach of law enforcement. We continue to investigate, disrupt, and dismantle hidden illegal networks that pose a threat in cyberspace.”
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The charges against the three WSM administrators were announced today in conjunction with authorities in Germany and the Netherlands.
The case in the United States is being prosecuted by Assistant U.S. Attorneys Ryan White and Puneet Kakkar of the Central District of California, Assistant U.S. Attorney Grant Rabenn of the Eastern District of California, Justice Department Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section, and Justice Department Trial Attorney Joseph Wheatley of the Criminal Division’s Organized Crime and Gang Section.
The U.S. investigation was conducted with support and coordination provided by the Department of Justice’s multi-agency Special Operations Division.
The Justice Department thanks its law enforcement colleagues at the German Federal Criminal Police (the Bundeskriminalamt), the German Public Prosecutor’s Office in Frankfurt, the Dutch National Police (Politie), the Netherlands National Prosecutor’s Office, Federal Police of Brazil (Policia Federal), Europol and Eurojust. Significant assistance was provided by the Office of International Affairs at the Justice Department and the Organized Crime and Drug Enforcement Task Force program.
2 May 2019
Wilkinsburg Man Sentenced for Converting Social Security Benefits and Lying About ItRead the Press Release
PITTSBURGH, PA - A resident of Allegheny County, Pennsylvania, has been sentenced in federal court to three years and six months of probation, with 10 months to be served on home confinement with electronic monitoring, and restitution in the amount of $103,415.00 on his conviction of theft of government property and false statement to the government, United States Attorney Scott W. Brady announced today.
United States District Judge Mark R. Hornak imposed the sentence on Robert J. Harris, Jr., 70, of Wilkinsburg, PA.
According to the information presented to the court, Harris converted to his own use $103,415.00 in Social Security benefits and Economic Stimulus money being paid to a fictitious person. He also lied to an employee of the Social Security Administration to make it appear that the fictitious claimant receiving benefits was still alive.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
U.S. Attorney Brady commended the U.S. Social Security Administration-Office of Inspector General for the investigation leading to the successful prosecution of Robert J. Harris, Jr.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
White Swan Man Sentenced to Life in Federal Prison for First Degree Murder and Two Consecutive 10-Year Terms in Federal Prison for Discharging Firearms During Separate Crimes of ViolenceRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that George Skylar Cloud, age 22, of White Swan, Washington, and an enrolled member of Confederated Bands and Tribes of the Yakama Nation, was sentenced after having been convicted after a four-day jury trial in January 2019 of one count of First Degree Murder and one count of Discharging a Firearm During a Crime of Violence, and after having pleaded guilty on February 21, 2018, to one count of Discharging a Firearm During a Crime of Violence involving a separate incident. United States District Judge Stanley A. Bastian sentenced Cloud to a term of life imprisonment on the First Degree Murder count, and two consecutive 10-year terms of imprisonment on the Discharging a Firearm During a Crime of Violence counts.
According to information disclosed during court proceedings, in early to mid-March 2016, Cloud was a passenger in a Chrysler with multiple occupants. The owner of the Chrysler stopped to talk with an acquaintance near the Yakamart in Toppenish, Washington. Cloud decided to take the vehicle so he jumped into the front seat, displayed a firearm, and shot the car owner in her leg. The wounded victim got out and Cloud drove away in the stolen vehicle. Afraid of Cloud, the victim did not report the crime to law enforcement or seek medical treatment. However, members of the community later notified law enforcement that Cloud had bragged about shooting the car owner and stealing her car.
In late March 2016, Cloud and another individual mistakenly believed that Felina Metsker provided, or was going to provide, information to law enforcement about the incident so they decided to murder her. In late March 2016, Ms. Metsker was shot in the head in her residence. Cloud and another individual wrapped Ms. Metsker’s body in her bedding, dragged her across the floor of her residence, and placed her body in the stolen Chrysler. Cloud then transported Ms. Metsker’s body to a remote location within the boundaries of the Yakama Nation, and left her. Cloud returned to Ms. Metsker’s residence and requested some of his family members to assist him in trying to sanitize it. The stolen Chrysler was later abandoned in a rural area within the boundaries of the Yakama Nation.
On April 1, 2016, a citizen notified the Yakama Nation Police Department that blood had been observed in Ms. Metsker’s residence. Ms. Metsker had also been reported as a missing person. Detectives with the Yakama Nation Police Department responded to the residence, secured it and contacted the Federal Bureau of Investigation. After obtaining a warrant to search Ms. Metsker’s residence, FBI investigators observed dried blood on the residence’s ceiling, wall and floor. Investigators also perceived what appeared to be dried fragments of a human brain on a wall behind a bed. The FBI agent in charge of the investigation believed that the murderer(s) wrapped the victim’s body in bedding and transported the body to another location. In May 2016, human remains, including a skull, were discovered in a rural area within the boundaries of the Yakama Nation. The human remains were decomposed and animals had disturbed the area. Over the next 21 months, law enforcement officers conducted an unrelenting and thorough investigation.
As the investigation progressed, the FBI learned that Cloud had carjacked a victim in early to mid-March 2016, and stole her Chrysler vehicle. A Yakama Nation police officer eventually discovered the stolen Chrysler and notified the FBI. During a search of the Chrysler’s trunk, investigators discovered traces of DNA. This, along with other evidence, that had been collected was submitted to the FBI Laboratory in Quantico, Virginia. A forensic scientist determined that Ms. Metsker was the source of blood found in the residence, and the human remains were Ms. Metsker. An FBI metallurgist discovered traces of low zinc brass and lead embedded in the remains of Ms. Metsker’s skull, which was consistent with a bullet wound. No DNA or latent fingerprint evidence linking Cloud to Ms. Metsker’s residence was recovered. Several local residents were unwilling to cooperate with law enforcement during the investigation. In December 2017, a witness came forward and provided information concerning the murder.
At the sentencing hearing, Judge Bastian observed that although Cloud was only 22 years of age, he had a “remarkable history of incredible violence.” Furthermore, the Court observed that in murdering Ms. Metsker, Cloud stole a life from Ms. Metsker, he stole a mother from her children, and he stole a daughter from her mother.
Joseph H. Harrington said, “The United States Attorney’s Office for the Eastern District of Washington commends the officers with the Yakama Nation Police Department and the Federal Bureau of Investigation who investigated this case. Their seamless partnership resulted in the successful outcome of this matter. The sentences imposed send a clear message that anyone who commits a violent federal crime will be sentenced to a lengthy term of federal prison.”
Two of Cloud’s family members have entered pleas of guilty for their respective roles. On December 14 and 19, 2018, Kristen Ashlie Windy Cloud and Nicole Lee Sunny Cloud pled guilty to one count of Misprision of a Felony. On March 6, 2019, Judge Bastion sentenced Kristen Ashlie Windy Cloud to serve an 18-month term of imprisonment, to be followed by a 1- year term of court supervision upon release from federal prison. Nicole Lee Sunny Cloud’s sentencing date is pending.
This case was investigated by the Yakima Resident Office of the Federal Bureau of Investigation, and the Yakama Nation Police Department. This case was prosecuted by Tom Hanlon, an Assistant United States Attorney for the Eastern District of Washington.
Westerville Man Charged with Sexually Exploiting Five Year OldRead the Press Release
COLUMBUS, Ohio – A Westerville man is being arraigned this afternoon on charges related to creating child pornography of his alleged sexual abuse of a five year old.
Christopher M. Sammons, 26, is scheduled for arraignment at 2:30pm before Chief U.S. District Judge Edmund A. Sargus, Jr.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Todd A. Wickerham, Special Agent in Charge, Federal Bureau of Investigation (FBI), Westerville Acting Police Chief Charles Chandler, Franklin County Prosecutor Ron O’Brien and other members of the FBI Crimes Against Children Task Force announced the charges.
According to the court documents, on March 11, an undercover FBI agent in Little Rock, Ark. received a message from Sammons regarding sexual interest in children.
Throughout their conversations, it is alleged that Sammons encouraged the undercover agent to “just make some home made stuff” when discussing the availability of child pornography.
Sammons detailed sexually abusing a six-year-old victim and also allegedly offered to “share her next time if you’re interested in a long term thing.” It is alleged that Sammons sent the agent child pornography files and suggested plans for he and the agent to exchange videos of them sexually abusing minors.
Based on IP address information, the investigative lead was forwarded to FBI Columbus and a Task Force Officer here began communicating with Sammons.
According to an affidavit filed in support of the criminal complaint in this case, Sammons told the task force officer he had been sexually abusing the victim for a year.
Sammons was charged by criminal complaint on April 5 and moved from local to federal custody on April 8.
A grand jury indicted him on April 23, charging him with one count of sexually exploiting a minor (15 to 30 years in prison), two counts of making a notice for child pornography (15 to 30 years in prison) and one count of distributing child pornography (five to 20 years in prison).
U.S. Attorney Glassman commended the investigation of this case by the FBI’s Child Exploitation Task Force, as well as Assistant United States Attorney Heather A. Hill and Special Assistant United States Attorney Jennifer M. Rausch, Director, Franklin County Special Victim’s Unit, who is prosecuting the case.
Criminal complaints and indictments merely contain allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
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