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Newest first across public DOJ and U.S. Attorney press releases.
Monday 25 March 2019
Sexual exploitation of minor sends Kalispell man to prison for 15 yearsRead the Press Release
MISSOULA—A Kalispell man who was convicted of creating a sexually explicit video of a minor girl was sentenced recently to the minimum mandatory 15 years in prison, 10 years of supervised release and ordered to pay $3,000 restitution, said U.S. Attorney Kurt Alme.
Allen Duane Turman, 44, pleaded guilty to sexual exploitation of a child during a Nov. 29 hearing.
Chief U.S. District Judge Dana L. Christensen presided at the March 22 sentencing.
Prosecution evidence showed that in October 2017, a law enforcement officer received a call about a thumb drive that belonged to Turman. A forensic analysis of the device showed it contained a sexually explicit video of a girl who was under the age of 18. By looking at other files on the thumb drive, law enforcement determined that Turman had created the video.
When interviewed in April 2018, Turman told law enforcement that the victim had stayed with him but that he was using drugs at the time and his memory was poor. While he could not specifically remember making the video on the thumb drive, he did not dispute he created it.
Assistant U.S. Attorney Cyndee Peterson prosecuted the case, which was investigated by Homeland Security Investigations and the Flathead County Sheriff’s Office.
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Sacramento Man Arrested in Oklahoma for Mailing Interstate Threats, Some Containing White PowderRead the Press Release
SACRAMENTO, Calif. — Darnell Ray Owens, 32, of Sacramento, was arrested March 22 in Tulsa, Oklahoma, after being charged in Sacramento with mailing threatening communications and a hoax involving biological weapons, U.S. Attorney McGregor W. Scott announced.
According to the criminal complaint, between February 2018 and March 2019, Owens allegedly sent approximately 50 letters and online complaints to law enforcement agencies, individuals and organizations, in which he made threats to kill police officers, other government officials, homosexuals, and “white people.” He used return addresses of people he knew with the apparent purpose of having others blamed for sending the letters. Owens allegedly mailed no less than two letters containing a white powder, intending that the recipients would believe the powder to be a biological weapon. The majority of the letters were sent via the U.S. Postal Service and were postmarked from Sacramento.
According to the criminal complaint, in July 2018, one of the letters containing white powder was sent to a church in Dallas, Texas with a threat to assassinate the pastor. On August 3, 2018, the Sacramento County Department of Revenue Recovery received a letter containing white powder, and the letter threatened to burn down the department and kill “a lot of people.” On October 24, 2018, a television news station, KTXL Fox40 received a letter threatening to kill certain employees at the station. The last letter Owens allegedly sent was to the Sacramento County District Attorney, threatening her life.
This case is the product of an ongoing investigation by the Federal Bureau of Investigation, the U.S. Postal Inspection Service, and the City of Sacramento Police Department. Assistant U.S. Attorney Shea J. Kenny is prosecuting the case.
If convicted, Owens faces a maximum statutory penalty of five years in prison for each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Roanoke Woman Sentenced to 51 Months in PrisonRead the Press Release
FORT WAYNE – Marianne Matchette, 52 years old, formerly of Roanoke, Indiana, was sentenced by U.S. District Court Chief Judge Theresa L. Springmann after pleading guilty to Mail Fraud and Aggravated Identity Theft, announced U.S. Attorney Kirsch.
Ms. Matchette was sentenced to 51 months in prison followed by 1 year of supervised release. Ms. Matchette was ordered to pay $126,705.09 in restitution to the victims of her offenses.
According to documents in the case, Ms. Matchette was given access to a company credit card issued in her name to make purchases authorized by the company and was also given access to the President/CEO’s company and personal credit cards. From May 12, 2015 through June 18, 2015, Ms. Matchette devised and participated in a scheme to defraud the company, by using a credit card without authorization to make personal purchases at a retail establishment, and in so doing caused items to be delivered by private or commercial interstate carriers. In executing her scheme to defraud, Ms. Matchette used the identification of another person.
This investigation was conducted by the FBI’s Financial Crimes Task Force with the assistance of the Indiana State Police and Allen County Sheriff’s Department. The case was handled by Assistant U. S. Attorneys Stacey R. Speith and Tina L. Nommay.
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Press Conference AdvisoryRead the Press Release
There will be a press conference today at 2:30 p.m. to announce charges against attorney Michael Avenatti for attempting to extract more than $20 million in payments from a publicly traded company by threatening to use his ability to garner publicity to inflict substantial financial and reputational harm on the company if his demands were not met. The press conference will be livestreamed on Facebook @USAOSDNY. Relevant documents are attached.
WHO: Geoffrey S. Berman, United States Attorney for the Southern District of New York
William F. Sweeney, Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation
WHAT: Press Conference
WHEN: Monday, March 25, 2019 at 2:30 p.m.
WHERE: U.S. Attorney’s Office, Southern District of New York
1 St. Andrew’s Plaza
New York, NY 10007
CONTACT: James Margolin, Nicholas Biase, Dawn Dearden
(212) 637-2600
NOTE: Due to construction/renovation of the lobby-level entrance, entry is through the ground floor parking-level entrance. Please allow extra time for entry and screening. Please silence all cell phones, PDAs, and pagers before start of press conference.
Pennsylvania Department of Education Agrees to Resolve Federal Civil Rights Investigation into Complaints About Alternative Education ProgramsRead the Press Release
The Department of Justice’s Civil Rights Division and the United States Attorney’s Offices for the Western, Middle, and Eastern Districts of Pennsylvania today announced a settlement agreement with the Pennsylvania Department of Education (PDE) to resolve a federal civil rights investigation into complaints about PDE’s statewide system of alternative education programs, known as Alternative Education for Disruptive Youth (AEDY).
"All students should be provided an opportunity to succeed and are entitled to learn in an educational environment free from discrimination,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “We commend PDE’s cooperation throughout our investigation and for its commitment to ensure that students with disabilities and English learners are not prevented from learning opportunities afforded to other students. All students should receive the lawfully-required help they need to participate equally in schools.”
“Pennsylvania must ensure that children with disabilities are not placed in an alternative disciplinary program simply because they have a disability,” said United States Attorney Freed. “We applaud the Commonwealth of Pennsylvania for implementing numerous changes to its AEDY Programs already, which, coupled with this agreement, will improve the education of children with disabilities and give all children the opportunity to learn English in AEDY Programs.”
“Federal law does not allow schools to discipline students because of their disability, or to deprive them of an opportunity to learn English,” said United States Attorney William M. McSwain when announcing the resolution for the Eastern District of Pennsylvania. “This agreement protects their civil rights, and comes with laudable cooperation by the Commonwealth of Pennsylvania.”
The investigation was conducted under Title II of the Americans with Disabilities Act, which prohibits state and local government entities, including public schools, from discriminating based on disability. In addition, the Justice Department investigated under the Equal Educational Opportunities Act of 1974, which prohibits a state from denying equal educational opportunity based on national origin by failing to take appropriate action to overcome language barriers that impede equal participation by students in an instructional program.
Under the settlement agreement, PDE will monitor the AEDY system to ensure that students are not placed in AEDY in a manner that discriminates based on disability; that they are not denied equal educational opportunities; and that students with disabilities are transferred back to their home schools in a timely manner. In addition, the agreement will require Pennsylvania to ensure that local educational agencies provide appropriate language assistance services to English Learner (EL) students. The United States will monitor compliance with the terms of the agreement.
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Pennsylvania Department of Education Agrees to Resolve Federal Civil Rights Investigation into Alternative Education ProgramsRead the Press Release
PHILADELPHIA – The U.S. Attorney’s Offices for the Eastern, Middle, and Western Districts of Pennsylvania announced jointly today that the Pennsylvania Department of Education (PDE) has agreed to resolve a federal civil rights investigation into its statewide system of alternative education programs, known as Alternative Education for Disruptive Youth. Under Pennsylvania law, students in grades 6 through 12 can be referred to these programs for temporary placements when they meet statutory criteria. These programs are separate from students’ usual general education programs, and do not typically offer the same access to instructional programs or activities.
The United States Department of Justice received complaints that these alternative education programs discriminated against students based on disability and failed to provide appropriate services to students who are learning English as a second language. In response, the Department of Justice investigated PDE’s approval and oversight of these programs across Pennsylvania.
The federal investigation arose under Title II of the Americans with Disabilities Act, which prohibits state and local government entities, including public schools, from discriminating based on disability. In addition, the Equal Educational Opportunities Act of 1974 prohibits a state from denying equal educational opportunity based on national origin by failing to take appropriate action to overcome language barriers that impede equal participation by its students in an instructional program.
Under the settlement agreement, PDE will take measures designed to remedy the complaints. The agreement requires PDE to ensure that students with disabilities receive individual assessments to determine whether they are being placed in alternative education programs because of their disability. The agreement also requires PDE to monitor whether these programs have timely transferred students with disabilities back to their home schools. In addition, the agreement requires PDE to guarantee that local educational agencies attempt appropriate interventions before referring students with disabilities to alternative education programs, and to ensure that students are not placed in these programs solely because of disability.
The agreement will also require PDE to ensure that local educational agencies establish a service plan for students who are learning English in alternative education programs to ensure that they receive appropriate language assistance services. PDE will also improve its process for receiving and responding to complaints from parents or others regarding alternative education programs, and revise its non-discrimination policies and data monitoring practices to comply with federal law.
“Federal law does not allow schools to discipline students because of their disability, or to deprive them of an opportunity to learn English,” said United States Attorney William M. McSwain when announcing the resolution for the Eastern District of Pennsylvania. “This agreement protects their civil rights, and comes with laudable cooperation by the Commonwealth of Pennsylvania.”
“Pennsylvania must ensure that children with disabilities are not placed in an alternative disciplinary program simply because they have a disability,” said David J. Freed, United States Attorney for the Middle District of Pennsylvania. “We applaud the Commonwealth of Pennsylvania for implementing numerous changes to its AEDY Programs already, which, coupled with this agreement, will improve the education of children with disabilities and give all children the opportunity to learn English in AEDY Programs.”
“All students should be provided an opportunity to succeed and are entitled to learn in an educational environment free from discrimination,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “We commend PDE’s cooperation throughout our investigation and for its commitment to ensure that students with disabilities and English learners are not prevented from learning opportunities afforded to other students. All students should receive the lawfully-required help they need to participate equally in schools.”
Assistant U.S. Attorney Michael S. Macko handled the case, working jointly with the Department of Justice’s Civil Rights Division and with Assistant U.S. Attorneys Michael Butler and Jennifer Andrade from the Middle and Western Districts of Pennsylvania, respectively.
Pennsylvania Department of Education Agrees to Resolve Federal Civil Rights Investigation into Alternative Education Programs and Implement ReformsRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle, Eastern, and Western Districts of Pennsylvania announced that the Pennsylvania Department of Education (PDE) has agreed to resolve a federal civil rights investigation into Pennsylvania’s system of alternative education programs, known as Alternative Education for Disruptive Youth (AEDY). Under Pennsylvania law, students in grades 6 through 12 can be referred to these programs for temporary placements when they meet certain statutory criteria. These programs are separate from students’ usual general education programs, and do not typically offer the same access to the instructional programs or activities.
According to United States Attorney David J. Freed, the United States Department of Justice received complaints that AEDY programs discriminated against students based on disability and failed to provide appropriate services to students who are learning English. In response, the Department of Justice partnered with United States Attorney’s Offices for the Middle, Eastern, and Western District of Pennsylvania to investigate PDE’s approval and oversight of these programs across Pennsylvania.
The investigation was conducted under Title II of the Americans with Disabilities Act, which prohibits state and local government entities, including schools, from discriminating based on disability. In addition, the Equal Educational Opportunities Act of 1974 prohibits a state from denying equal educational opportunity based on national origin by failing to take appropriate action to overcome language barriers that impede equal participation by its students in an instructional program.
Under the settlement agreement, PDE will ensure that students with disabilities receive individual assessments to determine whether their behavior results from a disability before they are placed in AEDY. The agreement also requires PDE to monitor whether students with disabilities in AEDY programs are timely transferred back to their home schools, guarantee that local educational agencies attempt appropriate interventions before referring students with disabilities to AEDY, and ensure that students are not placed in AEDY solely on the basis of disability.
In addition, the agreement will require Pennsylvania to ensure that local educational agencies establish a service plan for English learning (EL) students in AEDY to ensure that they receive appropriate language assistance services. PDE will also improve its process for receiving and responding to complaints from parents or others regarding AEDY programs, and revise its non-discrimination policies and data monitoring practices to comply with the EEOA and the ADA.
“Pennsylvania must ensure that children with disabilities are not placed in an alternative disciplinary program simply because they have a disability,” said United States Attorney Freed. “We applaud the Commonwealth of Pennsylvania for implementing numerous changes to its AEDY Programs already, which, coupled with this agreement, will improve the education of children with disabilities and give all children the opportunity to learn English in AEDY Programs.”
“Federal law does not allow schools to discipline students because of their disability, or to deprive them of an opportunity to learn English,” said United States Attorney William M. McSwain when announcing the resolution for the Eastern District of Pennsylvania. “This agreement protects their civil rights, and comes with laudable cooperation by the Commonwealth of Pennsylvania.”
“All students should be provided an opportunity to succeed and are entitled to learn in an educational environment free from discrimination,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “We commend PDE’s cooperation throughout our investigation and for its commitment to ensure that students with disabilities and English learners are not prevented from learning opportunities afforded to other students. All students should receive the lawfully-required help they need to participate equally in schools.”
This case was handled by Assistant United States Attorneys Michael J. Butler, MDPA, Michael S. Macko, EDPA, and Jennifer Andrade, WDPA, working jointly with the Department of Justice’s Education and Opportunities Section of the Civil Rights Division.
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Patrick Ho, Former Head of Organization Backed by Chinese Energy Conglomerate, Sentenced to 3 Years in Prison for International Bribery and Money Laundering OffensesRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York, and Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, announced that CHI PING PATRICK HO, a/k/a “Patrick C.P. Ho,” a/k/a “He Zhiping,” was sentenced today to three years in prison for his role in a multi-year, multimillion-dollar scheme to bribe top officials of Chad and Uganda in exchange for business advantages for CEFC China Energy Company Limited (“CEFC China”). HO was convicted of violations of the Foreign Corrupt Practices Act (“FCPA”), money laundering, and conspiracy to commit the same, in December 2018, after a one-week jury trial before U.S. District Judge Loretta A. Preska, who imposed today’s sentence.
Manhattan U.S. Attorney Geoffrey S. Berman stated: “Patrick Ho schemed to bribe the leaders of Chad and Uganda in order to secure unfair business advantages for the Chinese energy company he served. His actions were brazen, including offering the president of Chad $2 million in cash, hidden in gift boxes. Foreign corruption undermines the fairness of international markets, erodes the public’s faith in its leaders, and is deeply unfair to the people and businesses that play by the rules. Today’s sentence recognizes the severe harm caused by Ho’s actions.”
Assistant Attorney General Brian A. Benczkowski stated: “Patrick Ho bribed officials at the highest levels of government in Chad and Uganda in pursuit of lucrative oil deals and other business opportunities, all while using a U.S.-based NGO to conceal his criminal scheme. This kind of corruption undermines world markets and tilts the playing field against law-abiding companies and individuals. The Department will continue to investigate and prosecute individuals and corporations that engage in foreign bribery.”
According to the Indictment, evidence presented at trial, information presented in connection with sentencing, and other publicly available materials:
Overview
HO orchestrated and executed two bribery schemes to pay top officials of Chad and Uganda in exchange for business advantages for CEFC China, a Shanghai-based multibillion-dollar conglomerate that operates internationally in multiple sectors, including oil, gas, and banking. At the center of both schemes was HO, the secretary-general of a non-governmental organization based in Hong Kong and Arlington, Virginia, and registered as a charitable entity in the United States, the China Energy Fund Committee (“CEFC NGO”), which held “Special Consultative Status” with the United Nations (“UN”) Economic and Social Council. CEFC NGO was funded by CEFC China.
In the first scheme (the “Chad Scheme”), HO, on behalf of CEFC China, offered a $2 million cash bribe, hidden within gift boxes, to Idriss Déby, the president of Chad, in an effort to obtain valuable oil rights from the Chadian government. In the second scheme (the “Uganda Scheme”), HO caused a $500,000 bribe to be paid, via wires transmitted through New York, New York, to an account designated by Sam Kutesa, the Minister of Foreign Affairs of Uganda, who had recently completed his term as the president of the UN General Assembly. HO also schemed to pay a $500,000 cash bribe to Yoweri Museveni, the president of Uganda, and offered to provide both Kutesa and Museveni with additional corrupt benefits by “partnering” with them and their families in future joint ventures in Uganda.
The Chad Scheme
The Chad Scheme began in or about September 2014 when HO flew into New York to attend the annual UN General Assembly. At that time, CEFC China – a multibillion-dollar energy company based in Shanghai, China – was working to expand its operations to Chad, and wanted to meet with President Déby as quickly as possible. Through a connection, HO was introduced to Cheikh Gadio, the former Minister of Foreign Affairs of Senegal, who had a personal relationship with President Déby. HO and Gadio met at CEFC China’s suite at Trump World Tower in midtown Manhattan, where HO enlisted Gadio to assist CEFC China in obtaining access to President Déby.
Gadio connected HO and CEFC China to President Déby. In an initial meeting in Chad in November 2014, President Déby described to HO and CEFC China executives certain lucrative oil rights that were available for CEFC China to acquire. Following that meeting, Gadio advised HO and CEFC China to send a technical team to Chad to investigate the oil rights and make an offer to President Déby grounded in factual data. Instead, HO insisted on a prompt second meeting with President Déby. The second meeting took place a few weeks later, in December 2014. HO led a CEFC China delegation, which flew to Chad on a corporate jet with $2 million cash concealed within several gift boxes. At the conclusion of a business meeting with President Déby, HO and the CEFC China executives presented him with the gift boxes.
To the surprise of HO and the CEFC China executives, President Déby rejected the $2 million bribe offer, but later agreed to accept the money as a charitable donation to the country. HO subsequently drafted a letter to President Déby falsely claiming that the cash had really been intended as a donation to the people of Chad all along.
HO and CEFC China did not obtain the unfair advantage that they had sought through the bribe offer, and by mid-2015, HO had turned his attention to a different so-called “gateway to Africa”: Uganda.
The Uganda Scheme
The Uganda Scheme began around the same time as the Chad Scheme, when HO was in New York for the annual UN General Assembly. HO met with Sam Kutesa, who had recently begun his term as the 69th president of the UN General Assembly (“PGA”). HO, purporting to act on behalf of CEFC NGO, met with Kutesa and began to cultivate a relationship with him. During the year when Kutesa served as PGA, HO and Kutesa discussed a “strategic partnership” between Uganda and CEFC China for various business ventures, to be formed once Kutesa returned to Uganda.
In or about February 2016 – after Kutesa had returned to Uganda and resumed his role as Foreign Minister, and Yoweri Museveni (Kutesa’s relative) had been reelected as the president of Uganda – Kutesa solicited a payment from HO, purportedly for a charitable foundation that Kutesa wished to launch. HO agreed to provide the requested payment, but simultaneously requested, on behalf of CEFC China, an invitation to Museveni’s inauguration, business meetings with Museveni and other high-level Ugandan officials, and a list of specific business projects in Uganda in which CEFC China could participate.
In May 2016, HO and CEFC China executives traveled to Uganda. Prior to departing, HO caused CEFC NGO to wire $500,000 to the account provided by Kutesa in the name of the so-called “foundation,” which wire was transmitted through New York, New York. HO also advised his boss, Ye Jianming, the then-chairman of CEFC China, to provide $500,000 in cash to Museveni, ostensibly as a campaign donation, even though Museveni had already been reelected. HO intended these payments to influence Kutesa and Museveni to use their official power to steer business advantages to CEFC China.
HO and CEFC China executives attended President Museveni’s inauguration and obtained business meetings in Uganda with Museveni and top Ugandan officials, including with the Department of Energy and Mineral Resources. After the trip, HO requested that Kutesa and Museveni assist CEFC China in acquiring a Ugandan bank, as an initial step before pursuing additional ventures in Uganda. HO also offered to “partner” with Kutesa and Museveni and/or their “family businesses,” making clear that both officials would share in CEFC China’s future profits. In exchange for the bribes offered and paid by HO, Kutesa thereafter steered a bank acquisition opportunity to CEFC China.
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In imposing sentence, Judge Preska explained that, as the UN Convention Against Corruption states: “Corruption is an insidious plague” that is “found in all countries—big and small, rich and poor—but it is in the developing world that its effects are most destructive.”
In addition to his prison term, HO, 69, a citizen of the People’s Republic of China who resided in Hong Kong prior to his arrest in November 2017 and has been detained since his arrest, was fined $400,000.
Mr. Berman and Mr. Benczkowski praised the outstanding work of the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation. He also thanked the Department of Homeland Security, Homeland Security Investigations, and the Department of Justice, Criminal Division’s Office of International Affairs, for their assistance.
This case is being prosecuted by the Office’s Public Corruption Unit and the Criminal Division’s Fraud Section, FCPA Unit. Assistant U.S. Attorneys Daniel C. Richenthal, Douglas S. Zolkind, and Catherine E. Ghosh, and Trial Attorney Paul A. Hayden of the Fraud Section, are in charge of the prosecution.
Passing of Senior United States District Judge James C. FoxRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, issued the following statement upon the passing of Judge James C. Fox:
“It is with a heavy heart that the men and women of the United States Attorney’s Office for the Eastern District acknowledge the death of former United States District Judge James C. Fox.
Judge Fox, a graduate of the University of North Carolina and the UNC School of Law, was appointed as a United States District Judge for the Eastern District in 1982 by President Ronald Regan. He served more than 35 years on the bench, until his retirement in 2017.
Over the years of his service on the bench, federal prosecutors in this district knew Judge Fox to be a keen student of the law, and dedicated to its firm and fair enforcement. He expected the highest standards of ethics and professionalism in his court and any attorney who appeared before him was the better for the experience. He deeply loved the people and places in the Eastern District and worked hard to ensure their business was well-handled in federal court. He will be greatly missed.
Our deepest respect and gratitude go to Judge Fox. And, we will keep Judge Fox’s family in our thoughts and prayers.”
Ohio County man admits to child pornography chargeRead the Press Release
WHEELING, WEST VIRGINIA – Kirk Grubler, of Wheeling, West Virginia, has admitted to possessing child pornography, United States Attorney Bill Powell announced.
Grubler, age 37, pled guilty to one count of “Possession of Child Pornography.” Grubler admitted to having images of child pornography depicting a child under the age of 12 in April 2017 in Ohio County.
Grubler faces up to 20 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.
Assistant U.S. Attorney Stephen L. Vogrin is prosecuting the case on behalf of the government. The U.S. Department of Homeland Security Investigations investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Nigerian Business E-mail Scammer Sentenced for FraudRead the Press Release
United States Attorney Joe Kelly announced that Pelumi Fawehinmi, age 38, of Nigeria, was sentenced Friday, March 22, 2019, for Wire Fraud. United States District Court Judge Robert F. Rossiter, Jr., sentenced Fawehinmi to a 72-month term of imprisonment. After his release from prison, Fawehinmi will begin a 3-year term of supervised release. The restitution amount is to be determined and will be ordered at a later date.
Fawehinmi was a key part of a scheme commonly referred to as business e-mail compromise. Fawehinmi provided bank accounts to other co-conspirators who were working directly with businesses to defraud them. In this scheme, co-conspirators used compromised e-mail accounts to send spoofed e-mails to thousands of business employees across the United States who had accounting responsibilities, to include authorizing and sending wire transfers. A spoofed e-mail is one in which the e-mail appears to be originating from a sender other than the person who is truly the sender. Fawehinmi’s co-conspirators posed as Chief Executive Officers or other business executives and would direct recipients of the spoofed e-mails to complete wire transfers. The business employees, thinking that the wire transfer requests were legitimate, would comply with the wire transfer requests and wire money to the location designated in the written instructions. One of Fawehinmi’s co-conspirators, Adewale Aniyeloye, was sentenced to 96 months by Judge Rossiter in February of 2019.
The scheme was primarily conducted from Nigeria where Fawehinmi was living. In 2017, investigators learned Fawehinmi was planning to travel to the United States. He was arrested upon his arrival in New York. Pursuant to this scheme, businesses, including businesses in the District of Nebraska, lost more than $6 million. The attempted losses pursuant to the scheme are more than $30 million. The two Nebraska victims of the fraud scheme lost approximately $163,230.
This case was investigated by the Federal Bureau of Investigation.
New Mexico Man Charged with Failure to Pay Child SupportRead the Press Release
United States Attorney Ron Parsons announced that an Ocoma, New Mexico, man has been indicted by a federal grand jury for Failure to Pay Child Support.
Joseph A. Mesteth, age 50, was indicted on December 4, 2018. He appeared before U.S. Magistrate Judge Veronica L. Duffy on March 20, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 4 years in federal prison and/or a $500,000 fine, 2 years of supervised release, and up to $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on from October 1, 2005, and continuing to the present, and from October 1, 2006, and continuing to the present, Mesteth, while residing in a different state with respect to his three children who reside in South Dakota, willfully and unlawfully failed to pay a past due support obligation as ordered in an amount greater than $10,000.00.
The charges are merely accusations and Mesteth is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Office of the Inspector General. Assistant U.S. Attorney Ann M. Hoffman is prosecuting the case.
Mesteth was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Monroe County Woman Guilty of Participating in Sex Trafficking Conspiracy and Drug TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jordan Capone, age 24, of Mt. Pocono, pleaded guilty on March 22, 2019, before U.S. District Court Judge Malachy E. Mannion, to participating in a sex trafficking conspiracy that involved using threats and coercion to force women to engage in prostitution in the Monroe County area between 2011 and 2014. Capone also pleaded guilty to possession with intent to distribute the drug “molly,” a form of MDMA.
According to United States Attorney David J. Freed, Capone admitted to being a member of the Black P-Stones, a street gang that engaged in sex trafficking and drug trafficking in the Stroudsburg area and the state of Maine. Members of the conspiracy advertised prostitutes on websites, transported the prostitutes, and rented hotel and motel rooms for the purpose of having the women engage in commercial sex acts with customers.
The prostitutes were threatened, physically assaulted, and provided drugs, including heroin, by members of the conspiracy to persuade them to engage or continue to engage in prostitution. Virtually all of the money earned by the prostitutes was turned over to the gang leaders, and the prostitutes were compensated with illegal drugs.
Capone admitted to selling “molly” between 2013 and 2017.
Judge Mannion ordered a pre-sentence investigation to be completed. Sentencing for Capone will be scheduled at a later date.
Capone was indicted along with others by a federal grand jury, as a result of an investigation by agents of the Federal Bureau of Investigation, investigators from the Pennsylvania State Police, Maine State Police, the Monroe County District Attorney’s Office, and local police in Monroe County. Assistant U.S. Attorneys Francis P. Sempa and Phillip Caraballo are prosecuting the case.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This case was also brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The maximum penalty under federal law for these offenses is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Mobridge Man Charged with Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that a Mobridge, South Dakota, man has been indicted by a federal grand jury for Conspiracy to Distribute Methamphetamine.
Waylon Laframboise, age 41, was indicted on February 13, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 19, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 40 years in federal prison and/or a $5,000,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between February 1, 2014, and January 1, 2015, Laframboise knowingly and intentionally conspired to distribute and possess with intent to distribute 50 grams or more of methamphetamine.
The charge is merely an accusation and Laframboise is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Laframboise was released on bond pending trial. A trial date has not been set.
Mobile County Man Sentenced to 37 Months for Possession of a Firearm After Felony ConvictionRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Jabrandon S. Lovett, a 28 year old resident of Mobile, Alabama was sentenced to 37 months of incarceration for possession of a Smith & Wesson .38 caliber revolver after a 2013 Burglary 3rd conviction and a 2010 Robbery 2nd conviction.
On November 19, 2018, Lovett entered a guilty plea and admitted in open court that on July 8, 2018, at approximately 9:45pm, Mobile County, AL deputies observed Lovett driving a vehicle that did not display a tag light, so they conducted a traffic stop. As the deputies approached the vehicle, they smelled marijuana and counted four people in the vehicle. Deputies asked for and received Lovett’s driver’s license. Next, all four vehicle occupants were asked to exit the vehicle and they did. A probable cause search of the vehicle for illegal drugs was conducted and no illegal drugs were found. The passengers then told the deputies that they had smoked marijuana in the vehicle earlier but they no longer possessed any marijuana.
During the search, deputies found and opened a canvas strap bag that was around Lovett’s neck when the vehicle was stopped, but that Lovett removed and left inside the vehicle when he exited. Inside the bag was a loaded Smith & Wesson, .38 caliber revolver, serial number 134942 that was not manufactured in Alabama.
On July 23, 2018, Lovett confessed to possessing the firearm. He stated that he bought the revolver approximately two years before and had if for protection but only fired it one time. At that time Lovett had been convicted of two felonies, namely, Robbery 2nd Degree, on September 29, 2010, in the Circuit Court of Mobile County, Alabama, case number CC-10-1529 and Burglary 3rd Degree on October 2, 2013, in the Circuit Court of Mobile County, Alabama, case number CC-13-2483.
Deputies of the Mobile County Sheriff’s Office and special agents of the FBI investigated the case and brought it to the U. S. Attorney=s Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Mobile County Man Sentenced to 24 Months for Conspiring to Steal and to Knowingly Possess Stolen FirearmsRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that Tyler McIlwain, a 20 year old resident of Eight Mile, Alabama was sentenced to 24 months of incarceration for conspiring to steal and knowingly possess stolen firearms.
On November 29, 2018, McIlwain entered a guilty plea pursuant to a plea agreement and admitted in open court that on July 5, 2018, McIlwain and a cohort burglarized a home in Creola, Alabama. During the burglary they stole four (4) firearms, namely, an Anderson, .30 caliber rifle, model 300 Blackout; an Anderson, .223 caliber rifle; an Anderson, .30 caliber rifle; and a Marlin, .22 caliber rifle.
Shortly after the burglary, a Creola police officer attempted to stop a red Nissan truck, registered to McIlwain, for speeding. First the driver of the Nissan truck tried to flee by speeding up and attempting to elude the police following behind. Next, the Nissan truck stopped and the three occupants inside jumped out and ran. Two of the occupants were caught and one got away. McIlwain and one other were caught. All of the stolen firearms were recovered from the Nissan truck. After waiving his Miranda Rights, McIlwain stated that he and a cohort burglarized the residence and stole the firearms. He also stated that the other person in his vehicle was not involved.
Officers of the Creola, Alabama Police Department, deputies of the Mobile County Sheriff’s Office and special agents of the FBI investigated the case and brought it to the U. S. Attorney=s Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney Gina S. Vann.
Michigan man admits to role in a drug distribution operation in Monongalia CountyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Darius Dunbar, of Southfield, Michigan, has admitted to his involvement in a heroin, oxycodone, and cocaine distribution operation, United States Attorney Bill Powell announced.
Dunbar, age 25, pled guilty to one count of “Aiding and Abetting Distribution of Heroin.” Dunbar admitted to selling heroin in July 2017 in Monongalia County.Dunbar 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 Zelda E. Wesley is prosecuting the case on behalf of the government. The Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated. The United States Marshal Service assisted.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Michael John Aloi presided.
Mexican Man Pleads Guilty to Illegal Re-EntryRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that RICARDO SALAZAR-ESQUIVEL, age 30, a native of Mexico, plead guilty Thursday, March 21, 2019 to a one-count indictment, which charged him with illegal reentry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).
According to the indictment, SALAZAR-ESQUIVEL was previously removed from the United States on July 9, 2008. He was later found in the Eastern District of Louisiana on September 16, 2008 and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter. He is set to be sentenced on May 2, 2019.
SALAZAR-ESQUIVEL 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 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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Metairie Man Charged with Violations of the Federal Gun Control and National Firearms ActsRead the Press Release
NEW ORLEANS – United States Attorney Peter G. Strasser announced Thursday, March 21, 2019 that a federal grand jury returned a three-count indictment against defendant DAVID HUNTER, of Metairie, for possession of stolen firearms in violation of 18 U.S.C. § 922(j) (Count 1), being a prohibited person under indictment in possession of firearms in violation of 18 U.S.C.§ 922(n) (Count 2); and possession of a suppressor not registered to him in the National Firearms Registration and Transfer Record in violation to 26 U.S.C. § 5861(d). For Count 1, HUNTER faces a maximum term of imprisonment of ten years and a $250,000 fine. For Count 2, HUNTER faces a maximum term of imprisonment of five years and a $250,000 fine. For Count 3, HUNTER faces a maximum term of imprisonment of ten years and a $10,000 fine. For each of the charged counts, HUNTER faces up to three years supervised release following any term of imprisonment and a $100 special assessment fee.
The indictment alleges that in December of 2016, HUNTER stole a gun safe containing various firearms from a location in Tylertown, Mississippi and transported the firearms to the Eastern District of Louisiana.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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.
This matter was handled by the Bureau of Alcohol, Tobacco, Firearms and Explosives along with the Louisiana State Police. Assistant United States Attorney Duane A. Evans is prosecuting the case.
Members of International Drug Trafficking Conspiracy Plead GuiltyRead the Press Release
Three members of an international drug trafficking organization pleaded guilty today in U.S. District Court in Seattle to distributing more than a thousand kilograms of illegal marijuana, announced U.S. Attorney Brian T. Moran. The defendants admit in their plea agreements that they used money from conspirators in the Peoples Republic of China (PRC) to purchase homes in the Puget Sound area that they used for marijuana production. QIFENG LI, 41, his wife XIAMIN HUANG, 38, and brother QIWEI LI, 45, all face a mandatory minimum five years in prison and up to 40 years in prison when sentenced by U.S. District Judge John C. Coughenour on June 18, 2019.
“The entry of organized crime into the marijuana marketplace is of increasing concern in the Western District of Washington,” said U.S. Attorney Brian T. Moran. “This conduct brings crime to our neighborhoods, artificially fuels the housing market, and creates a blight of toxic abandoned grow houses. With this case, the defendants are forfeiting more than a million dollars of equity in properties and more than $350,000 in cash – putting a dent in the organized crime profits.”
According to the facts admitted in the plea agreement, between July 2015 and May 2018, the conspirators purchased homes in Burien, Kent, Seattle and Tukwila, which they used exclusively for marijuana production. More than $598,000 was wired to the conspirators from China to fund the purchases. The defendants shipped more than 1,000 kilograms of marijuana to the New York City area, via FedEx, UPS, the U.S. Postal Service and a private freight forwarder. Ultimately, in an effort to streamline distribution the conspirators established a shipping company, Pony Movers, LLC, to transport their marijuana from Western Washington to a warehouse in Little Ferry, New Jersey. The defendants then deposited the profits from the marijuana enterprise into their bank accounts in amounts less than $10,000 to avoid financial reporting requirements.
QIFENG LI and XIAMIN HUANG are U.S. citizens. QIWEI LI is a Lawful Permanent Resident who likely will face deportation following his prison term.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved.
The Investigation was led by DEA and Homeland Security Investigation (HSI). Significant investigative assistance was also provided by the Seattle Police Department and FBI.
The case is being prosecuted by Special Assistant United States Attorney Joe Silvio and Assistant United States Attorney Marie Dalton. Mr. Silvio is an attorney with Homeland Security Investigations, specially designated to prosecute cases in federal court.
Meadville, Pa. Man Pleads Guilty in Project Safe Childhood CaseRead the Press Release
ERIE, Pa. - A former resident of Meadville, Pennsylvania, pleaded guilty in federal court to charges of violating federal laws relating to the sexual exploitation of children, United States Attorney Scott W. Brady announced today.
Dennis Michael Kerr, 29, pleaded guilty to two counts before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Kerr transported computer images and movies depicting minors engaging in sexually explicit conduct. Kerr also transferred and attempted to transfer obscene material to an individual Kerr thought was a minor.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Judge Cercone scheduled sentencing for July 15, 2019 at 1:30 p.m. The law provides for a total sentence of 30 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation that led to the prosecution of Kerr.
McLaughlin Man Charged with Kidnapping and AssaultRead the Press Release
United States Attorney Ron Parsons announced that a McLaughlin, South Dakota, man has been indicted by a federal grand jury for Kidnapping, Assault of an Intimate Partner by Strangling, and Assault by an Habitual Offender.
Brandon Ducheneaux, age 44, was indicted on March 12, 2019. He appeared before U.S. Magistrate Judge William D. Gerdes on March 20, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between March 3, 2016, and March 4, 2016, Ducheneaux kidnapped his intimate partner and assaulted her by strangulation. During the time of the assault, Ducheneaux had at least two prior convictions of assault against a spouse or intimate partner.
The charges are merely accusations and Ducheneaux is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Kirsten Jasper is prosecuting the case.
Ducheneaux was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Mayport Navy Lieutenant Sentenced to 10 Years for Using the Internet to Entice and Meet A Child to Engage in Sexual ActivityRead the Press Release
Jacksonville, Florida – United States District Judge Marcia Morales Howard has sentenced Michael Douglas McNeil (31, Jacksonville) to a term of 10 years in federal prison for using the internet to attempt to entice a child to engage in sexual activity. McNeil was also ordered to serve a 5-year term of supervised release and to register as a sex offender. McNeil is a lieutenant in the U.S. Navy; he has been detained since his arrest on August 30, 2018.
According to court documents, on August 27, 2018, a detective with the Clay County Sheriff’s Office, who was posing online as a family member of a 12-year-old handicapped child, received a message on a social media application from McNeil, who identified himself as “Mark.” McNeil expressed interest in having sex with the “child” and was advised that the “child” was 12 years old. Between August 27 and August 30, 2018, McNeil and the undercover detective discussed plans for McNeil to meet the “child” for sex. McNeil asked for several photos of the “child,” sent the undercover detective an explicit photo of himself, and asked specific questions about the “child’s” sexual experience and abilities. On August 30, 2018, McNeil drove to a coffee shop in Orange Park to meet the “child” for sex and was arrested.
During an interview, McNeil admitted that he had engaged in online and text conversation with the “guardian” of the 12-year-old “child” and that he showed up to meet the “child” because of his “curiosity” about “a younger girl.”
“With the help of HSI’s law enforcement partners at the Clay County Sheriff’s Office, the Jacksonville Sheriff’s Office, and the Naval Criminal Investigative Service, this predator was stopped before he could harm a child,” said HSI Tampa Special Agent in Charge James C. Spero.
This case was investigated by the Clay County Sheriff’s Office, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Naval Criminal Investigative Service, and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Massachusetts State Trooper Sentenced for Overtime Abuse InvestigationRead the Press Release
BOSTON – A suspended Massachusetts State Police Trooper was sentenced today in federal court in Boston in connection with the ongoing investigation of overtime abuse at the Massachusetts State Police (MSP).
Eric Chin, 46, of Hanover, was sentenced by U.S. District Court Judge Richard G. Stearns to one day in prison, deemed served, and one year of supervised release with three months to be served in home detention. Chin was also ordered to pay restitution in the amount of $7,125. In December 2018, he pleaded guilty to one count of embezzlement from an agency receiving federal funds.
Chin was an MSP Trooper assigned to Troop E, which was responsible for enforcing criminal and traffic regulations along the Massachusetts Turnpike, Interstate I-90. In 2016, Chin earned $302,400, which included approximately $131,653 in overtime pay.
Chin was paid for overtime hours that he did not work and for at least one four-hour shift that he did not work at all. Chin concealed his fraud by submitting fraudulent citations designed to create the appearance that he had worked overtime hours that he had not, and, falsely claimed in MSP paperwork and payroll entries that he had worked the entirety of his overtime shifts.
Chin admitted collecting $7,125 for overtime hours that he did not work.
The overtime in question involved the Accident and Injury Reduction Effort program (AIRE), which was intended to reduce accidents, crashes, and injuries on I-90 through an enhanced presence of MSP Troopers who were to target vehicles traveling at excessive speeds.
Chin is the first Trooper to be sentenced as a result of the ongoing investigation. Thus far, eight MSP troopers have been charged and have pleaded guilty. Seven are awaiting sentencing.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Douglas Shoemaker, Special Agent in Charge of the U.S. Department of Transportation’s Office of Inspector General made the announcement today. Assistant U.S. Attorneys Dustin Chao and Mark Grady of Lelling’s Public Corruption Unit are prosecuting the cases.
Maryland MS-13 Leader Sentenced to 30 Years in Federal Prison for a Violent Racketeering Conspiracy, Including Planning a MurderRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis today sentenced Kevin Henriquez-Chavez, a/k/a “Loco” and “Crazy,” age 24, of Washington Grove, Maryland, to 30 years in federal prison, followed by five years of supervised release, for conspiring to participate in a racketeering enterprise known as La Mara Salvatrucha, or MS-13; and conspiring to use and carry a firearm during a crime of violence.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jesse R. Fong of the Drug Enforcement Administration - Washington Field Division; Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief J. Thomas Manger of the Montgomery County Police Department; Chief Henry P. Stawinski III of the Prince George’s County Police Department; Prince George’s County State’s Attorney Aisha Braveboy; and Montgomery County State’s Attorney John McCarthy.
“Federal, state, and local law enforcement will continue to work together to eradicate the violence perpetrated by MS-13 in Maryland,” said U.S. Attorney Robert K. Hur. “Today’s sentence sends a strong message to MS-13 gang members that their criminal actions cannot, and will not, be tolerated.”
MS-13 is a gang composed primarily of immigrants or descendants of immigrants from El Salvador, with members operating in the State of Maryland, including Montgomery County, Prince George’s County, and Frederick County, and throughout the United States. Branches or “cliques” of MS-13 often work together cooperatively to engage in criminal activity and to assist one another in avoiding detection by law enforcement. In Maryland and the surrounding area, these cliques include Parkview Locos Salvatrucha (“PVLS”), Normandie Locos Salvatrucha (“NLS” or “Normandie”), Sailors Locos Salvatrucha Westside (“SLSW” or “Sailors”), Langley Park Salvatrucha (“LPS”), Weedoms Locos Salvatrucha (“Weedoms”), and Cabanas Locos Salvatruchas (“Cabanas”). MS-13 cliques often combine and work together as “Programs,” with the purpose of increasing the gang’s levels of organization, violence, extortion, and other criminal activity. A person within the participating cliques is selected as the Program leader.
To protect the gang and to enhance its reputation, MS-13 members and associates are expected to use any means necessary to force respect from those who show disrespect, including acts of intimidation and violence. MS-13’s creed is based on one of its mottos, “Mata, roba, viola, controla,” which translates to, “kill, steal, rape, control.”
According to his plea agreement, from 2015 through 2016, Henriquez-Chavez was a member of the Cabanas clique and served as the “First Word” or leader of the clique. Henriquez-Chavez admitted to participating in numerous acts in furtherance of the racketeering conspiracy, including robbery and murder.
As detailed in his plea agreement, Henriquez-Chavez admitted that on November 1, 2015, he and three other MS-13 members and associates were behind an elementary school in Montgomery Village, Maryland, where Victim 3 was also present. Henriquez-Chavez told one of his co-conspirators to get the gun that was maintained by the Cabanas Clique. In order to gain entrance to, maintain, and increase their position in MS-13, the conspirators made a plan to murder Victim 3, whom Henriquez-Chavez and the co-conspirators believed to be a member of the rival 18th Street Gang. Henriquez-Chavez provided instructions that the co-conspirators invite Victim 3 to accompany them into the woods to smoke marijuana and to meet up with a girl on the other side, and told each of the co-conspirators to take a turn shooting Victim 3. Victim 3 agreed to accompany the co-conspirators and was subsequently shot to death.
Co-defendants Jose Augustin Salmeron-Larios, a/k/a “Joseph Morales-Martinez,” “Angel Salvador Gutierrez,” “Yankee,” and “Kean,” age 26, of Severn, Maryland; Noe Coreas-Mejia, a/k/a “Tsunami,” age 22, of Hyattsville, Maryland; and Juan Carlos Espinal-Rapalo, a/k/a “Chiki,” age 21; Daniel Adonai Ramos-Romero, a/k/a “Romero Taylor Binga,” “Taylor Romero,” and “Binga,” age 22; and Oscar Delgado-Perez, a/k/a “Complicado” and “Indio,” age 26, all of Gaithersburg, have all pleaded guilty to the racketeering conspiracy and other charges related to their association with MS-13. They remain detained as they await sentencing.
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 DEA; HSI Baltimore, the Prince George’s County Police Department, the Montgomery County Police Department, the Prince George’s County State’s Attorney’s Office, and the Montgomery County State’s Attorney’s Office for their work in the investigation. Mr. Hur also recognized the Montgomery County and Prince George’s County Departments of Corrections, HSI Baltimore’s Operation Community Shield Task Force, and the Maryland Department of Corrections Intelligence Unit for their assistance. Mr. Hur thanked Assistant United States Attorneys William D. Moomau, Ray D. McKenzie, Catherine K. Dick, and Burden H. Walker who are prosecuting this Organized Crime Drug Enforcement Task Force case.
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Manchester Man Sentenced to More Than 12 Years in Prison for Crimes Stemming from Hartford Car Wash ShootingRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that on March 22, 2019, HECTOR ALFONSO, 37, of Manchester, was sentenced by U.S. District Judge Janet Bond Arterton in New Haven to 153 months of imprisonment, followed by four years of supervised release, for offenses related to a December 2016 shooting in Hartford’s South End, and for violating the conditions of his supervised release from a prior federal conviction.
According to court documents and statements made in court, at approximately 10:00 p.m. on December 21, 2016, Hartford Police officers responded to a report of a person shot at a car wash located at 156 Franklin Avenue in Hartford. At the car wash, officers encountered an employee of the car wash who was suffering from two gunshot wounds. The victim was transported to the hospital where he was treated for his injuries and released.
The investigation, which included analysis of a surveillance video, revealed that Alfonso arrived at the car wash shortly before the shooting to acquire a distribution quantity of heroin from Ruben Rodriguez and another individual. A dispute and subsequent struggle occurred during the transaction, and Alfonso brandished a firearm. He then shot the employee.
Alfonso was arrested on a federal criminal complaint on May 10, 2017. A search of his Manchester residence on that date revealed cocaine residue on a toilet seat, cocaine and crack cocaine residue in another part of home, and items used to process and package narcotics for street sale. He has been detained since his arrest.
On November 20, 2018, Alfonso pleaded guilty to one count of conspiracy to possess with intent to distribute heroin, and one count of brandishing a firearm during and in relation to a drug trafficking crime.
Alfonso’s criminal history includes a federal conviction for possession with intent to distribute, and distribution of, cocaine base (“crack”). In June 2014, he was sentenced to 18 months of imprisonment and three years of supervised release for that offense.
Judge Arterton sentenced Alfonso to 141 months of imprisonment for the drug and gun offenses, and a consecutive 12 months of imprisonment for violating the conditions of his supervised release that were imposed in 2014.
Rodriguez has been detained since his arrest on September 27, 2017. On that date, a search of his Meriden residence and vehicle revealed a loaded .40 caliber pistol, numerous rounds of ammunition, approximately 133 grams of heroin, approximately 170 grams of cocaine, and $61,909 in cash.
Rodriguez pleaded guilty to drug and firearm offenses on November 9, 2018. On March 21, 2019, he was sentenced to 72 months of imprisonment.
This investigation was conducted by the Federal Bureau of Investigation and the Hartford Police Department. The case was prosecuted by Assistant U.S. Attorney Brian P. Leaming.
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.
Man who Held ATF Undercover Agent and Confidential Informant at Gunpoint Sentenced to 14 Years in PrisonRead the Press Release
One of two men who attempted to rob a federal agent working on an illegal firearms investigation, was sentenced today in U.S. District Court in Seattle to 14 years in prison, announced U.S. Attorney Brian T. Moran. ABDIRASHID HARET, 20, of Des Moines, Washington, pleaded guilty in December 2018, to assault on a federal officer and person assisting a federal officer, using a firearm in a crime of violence and robbery of funds belonging to the United States. At the sentencing hearing U.S. District Judge James L. Robart noted the defendant had a “fascination with guns,” that created “a situation that is dangerous to yourself, the people you are with, and the community.”
“This defendant illegally carried and trafficked firearms, bringing violence to our community,” said U.S. Attorney Brian T. Moran. “He was a convicted felon – arrested for assault and carrying a stolen gun – who returned to crime within months of his juvenile conviction. He threatened an undercover law enforcement agent – the very person we trust to do the dangerous work needed to keep us safe. This long prison sentence is warranted to protect our community.”
According to the facts in the plea agreement, HARET and co-defendant Omar Abdullah, 23, of Seattle, Washington, had made arrangements to sell two firearms to a man who, unknown to them, was a confidential informant (CI) working with ATF. The CI and an undercover ATF agent met with HARET and Abdullah in a vehicle in the parking lot of the Kent Lowe’s store. After the agent and CI got in the car, HARET and Abdullah used the two loaded firearms they brought to the meeting to rob the undercover agent and the CI. The undercover agent told HARET and Abdullah he would get additional money out of his car. HARET followed the agent out of the car, still armed with a firearm. The undercover agent was able to pull his own gun and fired at Abdullah who still held the CI at gunpoint in the car. HARET dropped his gun and attempted to flee. He was struck and injured running across Pacific Highway. Both Abdullah and HARET were taken to medical facilities. Abdullah continues to get specialized treatment for his gunshot wounds.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
The case is being prosecuted by Assistant United States Attorney Todd Greenberg.
Man Pleads Guilty to Possessing Firearms in Furtherance of Drug Trafficking CrimesRead the Press Release
St. Louis, MO – Savon Durphey, a/k/a “JRod,” 25, of St. Louis, pled guilty to two counts of possession of a firearm in furtherance of a drug trafficking crime. He appeared in federal court this morning before U.S. District Judge Catherine D. Perry who accepted his plea and set sentencing for July 11, 2019.
According to court documents, on or about October 28, 2016, St. Ann Police attempted to stop a vehicle for speeding. The vehicle failed to stop, and the passenger threw an object from the window. Police retrieved the item and discovered it to be a plastic bag containing approximately 145 capsules. Laboratory tests later confirmed that the capsules contained fentanyl, a dangerous controlled substance. Durphey, the driver of the vehicle, later admitted that he had handed the fentanyl to his 17-year-old passenger and instructed her to throw it out the window. Durphey was discovered to be in possession of a loaded .40 caliber handgun.
On or about March 10, 2017, Durphey again fled from law enforcement; this time, the Ferguson Police Department and the Major Case Squad, who attempted to stop his vehicle. Durphey fled until his vehicle struck a fence and became immobile. Police once again found drugs in Durphey’s vehicle, along with a loaded .45 caliber handgun. Durphey admitted that he was a drug dealer, claiming that he made approximately $800 per day selling drugs.
Durphey faces a mandatory minimum sentence of ten years in prison, and a maximum sentence of life, along with a possible fine of not more than a $250,000. He could receive both a prison sentence and a fine. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Drug Enforcement Administration, the St. Ann Police Department, and the Ferguson Police Department.
Lower Brule Man Charged with Burglary, Larceny, and Aiding and AbettingRead the Press Release
United States Attorney Ron Parsons announced that a Lower Brule, South Dakota, man has been indicted by a federal grand jury for First Degree Burglary, Larceny, and Aiding and Abetting.
Demitre’ Ecoffey, age 24, was indicted on February 13, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 21, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 25 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on May 25, 2017, Ecoffey entered an occupied structure at night with another individual with the intent to commit larceny, and stole personal property that had a value in excess of $1,000.
The charges are merely accusations and Ecoffey is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Ecoffey was released on bond pending trial. A trial date has not been set.
Lawyer Michael Avenatti Arrested on Federal Bank Fraud and Wire Fraud ChargesRead the Press Release
LOS ANGELES – Attorney Michael Avenatti was arrested today pursuant to a criminal complaint alleging he embezzled a client’s money in order to pay his own expenses and debts — as well as those of his coffee business and law firm — and also defrauded a bank by using phony tax returns to obtain millions of dollars in loans.
Avenatti, 48, of Century City, was arrested today pursuant to a two-count felony complaint charging him with wire fraud and bank fraud. He also was arrested pursuant to a separate federal case filed in New York.
According to an affidavit filed with the criminal complaint in this case, Avenatti negotiated a settlement which called for $1.6 million in settlement money to be paid on January 10, 2018, but then gave the client a bogus settlement agreement with a false payment date of March 10, 2018. The affidavit states that Avenatti misappropriated his client’s settlement money and used it to pay expenses for his coffee business, Global Baristas US LLC, which operated Tully’s Coffee stores in California and Washington state, as well as for his own expenses. When the fake March 2018 deadline passed and the client asked where the money was, Avenatti continued to conceal that the payment had already been received, court documents said.
Avenatti also allegedly defrauded a bank in Mississippi by submitting to the lender false tax returns in order to obtain three loans totaling $4.1 million for his law firm and coffee business in 2014. According to the affidavit, Avenatti obtained the loans by submitting fabricated individual income tax returns (Forms 1040) for 2011, 2012, and 2013, reporting substantial income even though he had never filed any such returns with the Internal Revenue Service. The phony returns stated that he earned $4,562,881 in adjusted gross income in 2011, $5,423,099 in 2012, and $4,082,803 in 2013, according to the affidavit. Avenatti allegedly also claimed he paid $1.6 million in estimated tax payments to the IRS in 2012 and paid $1.25 million in 2013. In reality, Avenatti never filed personal income tax returns for 2011, 2012 and 2013 and did not make any estimated tax payments in 2012 and 2013. Instead of the millions of dollars he claimed to have paid in taxes, Avenatti still owed the IRS $850,438 in unpaid personal income tax plus interest and penalties for the tax years 2009 and 2010, court papers state. The affidavit also alleges that, as part of his loan applications, Avenatti also submitted a fictitious partnership tax return for his law firm.
“A lawyer has a basic duty not to steal from his client,” said United States Attorney Nick Hanna. “Mr. Avenatti is facing serious criminal charges alleging he misappropriated client trust funds for his personal use and he defrauded a bank by submitting phony tax returns in order to obtain millions of dollars in loans.”
“Professionals, including attorneys, who create elaborate schemes that have no purpose other than to mislead others and defraud both their clients and federally insured financial institutions, run the very high risk of prosecution,” said Special Agent in Charge Ryan Korner of IRS-Criminal Investigation. “The criminal complaint unsealed today shows a pattern of selfish behavior that paints Mr. Avenatti as a lawyer who only represents his own self interests.”
If convicted on both charges, Avenatti will face a statutory maximum sentence of 50 years in federal prison. Avenetti’s initial court appearance will be today in New York. He is expected to face the criminal charges in the California case in United States District Court in Santa Ana at a later date.
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.
This matter is being investigated by Internal Revenue Service-Criminal Investigation.
This case is being prosecuted by Assistant United States Attorneys Julian L. André of the Major Frauds Section and Brett A. Sagel of the Santa Ana Branch Office.
ComplaintKingston Man Sentenced to 78 Months’ Imprisonment for Drug TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Adam Gottstein, age 32, of Kingston, Pennsylvania, was sentenced to 78 months’ imprisonment and five years of supervised release by United States District Judge Malachy E. Mannion, for conspiring to distribute heroin, crack cocaine, and fentanyl.
According to United States Attorney David J. Freed, Gottstein pleaded guilty to conspiring to distribute controlled substances in Pennsylvania, between approximately September 2016 through February 2017. Gottstein admitted to working as a drug dealer and in the conspiracy, to transporting drug from New York to Pennsylvania for redistribution, and to trafficking in excess of 280 grams of crack cocaine, fentanyl, and in excess of 400 grams of heroin, the latter of which is the equivalent of 16,000 potentially fatal doses of heroin. Gottstein also admitted to possessing a firearm during the course of his offense, and to maintaining a drug house.
Gottstein was charged in June 2017 with 14 other individuals. All of his co-defendants have pleaded guilty, with 11 others having already been sentenced:
- Kassandra Martin of Wilkes-Barre, Pennsylvania, was sentenced to 60 months of imprisonment;
- Joshua Lenchick of Luzerne, Pennsylvania, was sentenced to 60 months of imprisonment;
- Kristyna Shotwell of Plymouth, Pennsylvania, was sentenced to 12 months and one day of imprisonment;
- Tanay Jones of Bronx, New York, was sentenced to a time served sentence of 19 days of imprisonment;
- William Waring of Bronx, New York, was sentenced to 60 months of imprisonment;
- John Maybank of Bronx, New York, was sentenced to 53 months of imprisonment;
- Siobhan Daniels, of Wilkes-Barre, Pennsylvania, was sentenced to 30 months of imprisonment;
- Luis Nevarez, of Bronx, New York, was sentenced to 60 months of imprisonment;
- Adonis Smith, of New London, Connecticut, was sentenced to 60 months of imprisonment;
- Cara Dubaskas, of Plymouth, Pennsylvania, was sentenced to a time served sentence of 7 months; and
- Chad Eckrote, of Plymouth, Pennsylvania, was sentenced to 3 years of probation.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Luzerne County Drug Task Force, and by the Kingston Police Department. Assistant U.S. Attorney Phillip J. Caraballo prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case also was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Jury Finds Pierre Man Guilty of 7 Felony Counts Related to Aggravated Sexual Abuse of a Child, Interstate Travel with Intent to Engage in Illicit Sexual Conduct, and Child Pornography ChargesRead the Press Release
United States Attorney Ron Parsons announced that Amin Ricker, age 32, of Pierre, South Dakota, was found guilty of two counts of Aggravated Sexual Abuse of a Child, one count of Travel With Intent to Engage in Illicit Sexual Conduct, and four counts related to Transporting, Distributing, Receiving, and Possessing Child Pornography following a five-day jury trial in Pierre, South Dakota. The verdict was returned on March 22, 2019.
The charges carry a mandatory minimum of thirty years up to life in prison and/or a $250,000 fine, 5 years up to life of supervised release, and $700 to the Federal Crime Victims Fund. Restitution may also be ordered.
“Thanks to the joint efforts of federal, state, and local law enforcement officers, this vicious child sex predator is going to be locked up for a very long time,” said U.S. Attorney Parsons.
Ricker was indicted by a federal grand jury on April 12, 2017.
In February 2017, the South Dakota Internet Crimes Against Children Task Force and the Pierre Police Department began investigating Ricker based on reports from the National Center for Missing and Exploited Children that indicated Ricker was actively sharing and receiving child pornography via social media. On February 14, 2017, law enforcement executed a search warrant at Ricker’s residence in Pierre, seizing multiple electronic devices, including mobile phones, laptop computers, and thumb drives.
Analysis of Ricker’s electronic devices revealed thousands of images and videos of child pornography. Airline, bank, and electronic records corroborated live testimony that Ricker traveled in 2014 and 2015 from Huron, South Dakota, to Texas and engaged in sexual acts with 7-year-old children living there, and he preserved videos and images of the acts, storing them in folders named after each of the children. Ricker later used electronic platforms to share child pornography, including images involving the victims. Law enforcement analyzed social media accounts including Instagram, Kik, Yahoo, and Facebook, as well as Dropbox, which led them to Ricker’s Pierre residence. In mid-2015, Ricker, who was employed as a locomotive conductor, transferred from Huron to Pierre.
The investigation was conducted by the Federal Bureau of Investigation, South Dakota Internet Crimes Against Children Task Force, South Dakota Division of Criminal Investigation, Huron Police Department, Pierre Police Department, Texas Department of Public Safety Texas Ranger Division, and the Bogata (TX) Police Department. Assistant U.S. Attorneys Kirk Albertson and Cameron Cook prosecuted the case.
A sentencing date has not been set. Ricker was remanded to the custody of the U.S. Marshals Service pending sentencing.
Jackson Man Sentenced to Seven Years in Federal Prison Under Project EJECT for Armed Robbery of Dollar General StoreRead the Press Release
Jackson, Miss. – Jalen Xavier Simmons, 19, of Jackson, was sentenced Friday by U.S. District Judge Carlton W. Reeves to serve 7 years and one day in federal prison for robbing a local Dollar General store in Jackson and brandishing a firearm during that crime of violence, announced U.S. Attorney Mike Hurst and Special Agent in Charge Christopher Freeze with the Federal Bureau of Investigation. Simmons was also sentenced to 4 years of supervised release and ordered to pay a $1,000.00 fine.
On April 6, 2018, Simmons entered the Dollar General on Briarwood Drive in Jackson carrying a stolen 9mm pistol loaded with 18 rounds of ammunition. He robbed multiple shoppers of their cash and demanded Dollar General employees open the cash register. Jackson Police officers soon arrived on the scene and Simmons was arrested.
Simmons was charged in a federal indictment on September 29, 2018, with one count of robbery and one count of brandishing a firearm during the crime of violence. He pled guilty without a plea agreement on December 17, 2018.
This case was investigated by the Federal Bureau of Investigation and the Jackson Police Department. It is being prosecuted by Assistant United States Attorney Kimberly Purdie.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Justice Expel Crime Together." PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Harrison County woman admits to methamphetamine distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jessika Dawn Bishop-Holt, of Anmoore, West Virginia, has admitted to distributing methamphetamine, United States Attorney Bill Powell announced.
Bishop-Holt, age 31, pled guilty to one count of “Aiding and Abetting Possession with Intent to Distribute Methamphetamine.” Bishop-Holt admitted to distributing methamphetamine in March 2018 in Harrison County.Bishop-Holt 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 Traci M. Cook is prosecuting the case on behalf of the government. The Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Hanahan Man Sentenced to over 11 Years in Federal Prison for Using a Gun in Furtherance of a Drug Trafficking CrimeRead the Press Release
Charleston, South Carolina---- United States Attorney Sherri A. Lydon announced today that Valdimere Rasheen Rivers, age 30, of Hanahan, South Carolina, was sentenced in federal court after pleading guilty to possessing firearms in furtherance of a drug trafficking crime. United States District Judge Richard M. Gergel of Charleston sentenced Rivers to 137 months in federal prison, to be followed by 2 years of court-ordered supervision.
Evidence presented to the court showed that agents of the U.S. Postal Service alerted the Charleston County Sheriff's Office and the Hanahan Police Department that Rivers was receiving suspicious packages from California, and he was arrested while returning from the post office with a box of marijuana in his vehicle. When officers stopped Rivers, he texted his girlfriend with instructions to retrieve money and additional marijuana from the couple's townhouse. As a surveillance team closed in on the residence, Rivers’ girlfriend dropped a container of marijuana into a nearby dumpster and loaded thousands of dollars of cash into one of Rivers' cars. She was arrested, and a search of the townhouse revealed additional marijuana and a loaded revolver. An additional shipment of marijuana addressed to one of Rivers' relatives was also intercepted. In all, authorities seized over five pounds of marijuana and more than $4,500.00 in cash.
The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the United States Postal Service, the Charleston County Sheriff's Office, and the Hanahan Police Department. Assistant United States Attorney Chris Schoen of the Charleston office prosecuted the case.
This case was prosecuted as part of the joint federal, state, and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Project CeaseFire is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Attorney General announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
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GBK Gang Member Pleads Guilty in Conspiracy to Distribute Crack CocaineRead the Press Release
PITTSBURGH - A resident of Pittsburgh, PA, pleaded guilty in federal court to a charge of conspiracy to distribute crack cocaine, United States Attorney Scott W. Brady announced today.
Brett Rodgers, 32, pleaded guilty to one count before Senior United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that in 2017, the Federal Bureau of Investigation and the Drug Enforcement Administration initiated a wiretap investigation, primarily targeting the Greenway Boy Killas (GBK) street gang and drug trafficking in and around an area known as the Greenway Projects, located in the West End of the City of Pittsburgh. The wiretap investigation revealed that from in and around November 2017 through in and around June 2018, Brett Rodgers conspired to distribute 28 grams or more of crack cocaine.
Judge Schwab scheduled sentencing for July 9, 2019, at 11:30 a.m. The law provides for a total sentence of not less than 10 years to life in prison, a fine of $8,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Pending sentencing, the court continued the defendant’s detention.
Assistant United States Attorneys Tonya Sulia Goodman and Rachael Dizard are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Drug Enforcement Administration jointly led the multi-agency investigation, which also included the Pittsburgh Bureau of Police, Allegheny County Sheriff’s Office, Pennsylvania State Police, Robinson Township Police Department, Stowe Township Police Department, Pennsylvania Attorney General’s Office, Wilkinsburg Borough Police Department, and the McKees Rocks Police Department, that led to the prosecution of Brett Rodgers.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Fraudulent Tax Return Preparer Sentenced to Prison TermRead the Press Release
United States Attorney Matthew D. Krueger announced that Karen Tompkins was recently sentenced in federal court in Milwaukee for defrauding and conspiring to defraud the United States by preparing and filing false tax returns. The tax returns fraudulently claimed tax refunds to which the filers were not entitled, in violation of Title 18, United States Code, Sections 2 and 371, and Title 26, United States Code, Section 7206(2).
United States District Judge Pamela Pepper sentenced Tompkins, of Milwaukee, to one year and one day in prison. Tompkins was also ordered to pay $384,528 in restitution.
According to the plea agreement, Tompkins and her coconspirators were employed as tax return preparers at a branch of Liberty Tax Services ("LTS") located at 3929 N. Humboldt Boulevard in Milwaukee, Wisconsin. As tax return preparers, the conspirators aided, assisted, counseled, and advised in the preparation and filing of federal income tax returns. Tompkins was the office manager of that branch, and she and her coconspirators artificially inflated tax filer’s claimed income, typically by inventing Schedule C business income for non-existent business, such as "hair braiding" or "dancing" businesses. They also claimed false W-2 income and Additional Child Tax Credits to which the filers were not entitled. This caused the IRS to pay out larger tax refunds than it otherwise would have. In return for these inflated tax refunds, Tompkins and her coconspirators received kickbacks
This case was investigated by the IRS Criminal Investigation division. The case was prosecuted by Assistant United States Attorney Benjamin Taibleson.
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Fort Thompson Man Charged with AssaultRead the Press Release
United States Attorney Ron Parsons announced that a Fort Thompson, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Jacey Estes, age 24, was indicted on March 12, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 22, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on November 3, 2018, Estes assaulted an individual with shod feet, and said assault resulted in serious bodily injury to the victim.
The charges are merely accusation and Estes is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Estes was released on bond pending trial. A trial date has not been set.
Former Virginia State Police Special Agent Convicted of Bribery, Obstruction of Justice, and Lying to the FBI Following Five Day Jury TrialRead the Press Release
Abingdon, VIRGINIA – Shade Carlton Workman, 46, a Virginia State Police Special Agent, who was recently the commander of the Tazewell County High Intensity Drug Task Force, was convicted on Friday, March 22, 2019, following a five-day jury trial, of federal bribery, obstruction of justice, and making a false statement to a federal agent, United States Attorney Thomas T. Cullen announced. The jury acquitted him of an additional charge of obstruction of justice and one count of using a facility of interstate commerce to commit a federal crime.
According to the evidence presented at trial, Workman, the former commander of the Tazewell County High Intensity Drug Task Force (HIDTA), a specialized multi-agency drug-enforcement unit partially funded through the National Office of Drug Control Policy, unlawfully solicited and received sexual favors from female confidential informants in exchange for agreeing to assist them with pending criminal charges. The evidence further showed that when these female confidential informants expressed their reluctance about having sex with him, Workman regularly threatened and implied that they would face lengthy prison terms and extended separation from their children. When the FBI interviewed Workman during the summer of 2018, he falsely denied having inappropriate or sexual relationships with confidential informants. Although Workman had deleted text messages evidencing inappropriate sexual relationships with informants from his Virginia State Police-issued phone—and had directed multiple informants to do the same—the FBI was able to recover a large number of text messages, which the government presented at trial.
“This defendant, who had sworn to uphold the Constitution and laws of Virginia, preyed on particularly vulnerable victims and abused the public’s trust,” U.S. Attorney Cullen stated. “His aggravated criminal conduct also dishonored the men and women of the Virginia State Police who serve our Commonwealth with bravery, honor, and distinction. I am grateful for the FBI’s diligence and determination in investigating this corrupt cop and bringing him to justice.”
“The defendant’s conduct is certainly not indicative of the caliber and dedication of men and women who work at the Virginia State Police,” said Special Agent in Charge David W. Archey of the FBI’s Richmond Division. “Workman’s conviction demonstrates the commitment of our agencies to hold those who violate their oath accountable, and to find justice to those who place their trust in law enforcement.”
“The Department regards every allegation related to this case as very serious and most unacceptable in nature,” said Col. Gary T. Settle, Virginia State Police Superintendent. “As concerning as it is to have a state police employee found guilty of such criminal violations, this was an isolated situation and not representative of the respected quality and dedication demonstrated daily by our employees across the Commonwealth.”
The investigation of the case was conducted by the Federal Bureau of Investigation and the Virginia State Police with assistance from the Tazewell County Sheriff’s Office. United States Attorney Cullen and Assistant United States Attorneys Zachary T. Lee and Lena Busscher tried the case for the United States.
Former Head of Organization Backed by Chinese Energy Conglomerate Sentenced to Three Years in Prison for International Bribery and Money Laundering OffensesRead the Press Release
Chi Ping Patrick Ho, aka “Patrick C.P. Ho” and “He Zhiping,” was sentenced today to serve 36 months in prison for his role in a multi-year, multimillion-dollar scheme to bribe top officials of Chad and Uganda in exchange for business advantages for CEFC China Energy Company Limited (“CEFC China”) Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Geoffrey S. Berman for the Southern District of New York announced. Ho was convicted of violations of the Foreign Corrupt Practices Act (FCPA), money laundering, and conspiracy to commit the same, in December 2018, after a one-week jury trial before U.S. District Judge Loretta A. Preska, who imposed today’s sentence.
In addition to his prison term, Ho, 69, a citizen of the People’s Republic of China who resided in Hong Kong prior to his arrest in November 2017 and has been detained since his arrest, was fined $400,000. Following his prison sentence, Ho will be removed from the United States.
“Patrick Ho bribed officials at the highest levels of government in Chad and Uganda in pursuit of lucrative oil deals and other business opportunities, all while using a U.S.-based NGO to conceal his criminal scheme,” said Assistant Attorney General Benczkowski. “This kind of corruption undermines world markets and tilts the playing field against law-abiding companies and individuals. The Department will continue to investigate and prosecute individuals and corporations that engage in foreign bribery. ”
“Patrick Ho schemed to bribe the leaders of Chad and Uganda in order to secure unfair business advantages for the Chinese energy company he served,” said Manhattan U.S. Attorney Berman. “His actions were brazen, including offering the president of Chad $2 million in cash, hidden in gift boxes. Foreign corruption undermines the fairness of international markets, erodes the public’s faith in its leaders, and is deeply unfair to the people and businesses that play by the rules. Today’s sentence recognizes the severe harm caused by Ho’s actions.”
According to the evidence presented at trial, Ho orchestrated and executed two bribery schemes to pay top officials of Chad and Uganda in exchange for business advantages for CEFC China, a Shanghai-based multibillion-dollar conglomerate that operates internationally in multiple sectors, including oil, gas, and banking. During the course of the schemes, Ho served as the secretary-general of a non-governmental organization based in Hong Kong and Arlington, Virginia, and registered as a charitable entity in the United States, the China Energy Fund Committee (“CEFC NGO”), which held “Special Consultative Status” with the United Nations (UN) Economic and Social Council. CEFC NGO was funded by CEFC China.
In the first scheme (the Chad Scheme), Ho, on behalf of CEFC China, offered a $2 million cash bribe, hidden within gift boxes, to Idriss Déby, the president of Chad, in an effort to obtain valuable oil rights from the Chadian government. In the second scheme (the Uganda Scheme), Ho caused a $500,000 bribe to be paid, via wires transmitted through New York, New York, to an account designated by Sam Kutesa, the Minister of Foreign Affairs of Uganda, who had recently completed his term as the president of the UN General Assembly. Ho also schemed to pay a $500,000 cash bribe to Yoweri Museveni, the president of Uganda, and offered to provide both Kutesa and Museveni with additional corrupt benefits by “partnering” with them and their families in future joint ventures in Uganda.
The Chad Scheme
The Chad Scheme began in or about September 2014 when Ho flew into New York to attend the annual UN General Assembly. At that time, CEFC China – a multibillion-dollar energy company based in Shanghai, China – was working to expand its operations to Chad, and wanted to meet with President Déby as quickly as possible. Through a connection, Ho was introduced to Cheikh Gadio, the former Minister of Foreign Affairs of Senegal, who had a personal relationship with President Déby. Ho and Gadio met at CEFC China’s suite at Trump World Tower in midtown Manhattan, where Ho enlisted Gadio to assist CEFC China in obtaining access to President Déby
Gadio connected Ho and CEFC China to President Déby. In an initial meeting in Chad in November 2014, President Déby described to Ho and CEFC China executives certain lucrative oil rights that were available for CEFC China to acquire. Following that meeting, Gadio advised Ho and CEFC China to send a technical team to Chad to investigate the oil rights and make an offer to President Déby grounded in factual data. Instead, Ho insisted on a prompt second meeting with President Déby. The second meeting took place a few weeks later, in December 2014. Ho led a CEFC China delegation, which flew to Chad on a corporate jet with $2 million cash concealed within several gift boxes. At the conclusion of a business meeting with President Déby, Ho and the CEFC China executives presented him with the gift boxes.
To the surprise of Ho and the CEFC China executives, President Déby rejected the $2 million bribe offer, but later agreed to accept the money as a charitable donation to the country. Ho subsequently drafted a letter to President Déby falsely claiming that the cash had really been intended as a donation to the people of Chad all along.
Ho and CEFC China did not obtain the unfair advantage that they had sought through the bribe offer, and by mid-2015, Ho had turned his attention to a different so-called “gateway to Africa”: Uganda.
The Uganda Scheme
The Uganda Scheme began around the same time as the Chad Scheme, when Ho was in New York for the annual UN General Assembly. Ho met with Sam Kutesa, who had recently begun his term as the 69th president of the UN General Assembly (“PGA”). Ho, purporting to act on behalf of CEFC NGO, met with Kutesa and began to cultivate a relationship with him. During the year when Kutesa served as PGA, Ho and Kutesa discussed a “strategic partnership” between Uganda and CEFC China for various business ventures, to be formed once Kutesa returned to Uganda.
In or about February 2016 – after Kutesa had returned to Uganda and resumed his role as Foreign Minister, and Yoweri Museveni (Kutesa’s relative) had been reelected as the president of Uganda – Kutesa solicited a payment from Ho, purportedly for a charitable foundation that Kutesa wished to launch. Ho agreed to provide the requested payment, but simultaneously requested, on behalf of CEFC China, an invitation to Museveni’s inauguration, business meetings with Museveni and other high-level Ugandan officials, and a list of specific business projects in Uganda in which CEFC China could participate.
In May 2016, Ho and CEFC China executives traveled to Uganda. Prior to departing, Ho caused CEFC NGO to wire $500,000 to the account provided by Kutesa in the name of the so-called “foundation,” which wire was transmitted through New York, New York. Ho also advised his boss, Ye Jianming, the then-chairman of CEFC China, to provide $500,000 in cash to Museveni, ostensibly as a campaign donation, even though Museveni had already been reelected. Ho intended these payments to influence Kutesa and Museveni to use their official power to steer business advantages to CEFC China.
Ho and CEFC China executives attended President Museveni’s inauguration and obtained business meetings in Uganda with Museveni and top Ugandan officials, including with the Department of Energy and Mineral Resources. After the trip, Ho requested that Kutesa and Museveni assist CEFC China in acquiring a Ugandan bank, as an initial step before pursuing additional ventures in Uganda. Ho also offered to “partner” with Kutesa and Museveni and/or their “family businesses,” making clear that both officials would share in CEFC China’s future profits. In exchange for the bribes offered and paid by Ho, Kutesa thereafter steered a bank acquisition opportunity to CEFC China.
The investigation was conducted by the FBI and IRS Criminal Investigation. U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Department of Justice, Criminal Division’s Office of International Affairs provided assistance.
Trial Attorney Paul A. Hayden of the Criminal Division’s Fraud Section, FCPA Unit and Assistant U.S. Attorneys Daniel C. Richenthal, Douglas S. Zolkind, and Catherine E. Ghosh of the U.S. Attorney’s Office for Southern District of New York’s Public Corruption Unit are prosecuting the case.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Former Delgado Community College Financial Aid Officer Sentenced to Probation after Previously Pleading Guilty to Solicitation and Receipt of BribesRead the Press Release
NEW ORLEANS – United States Attorney Peter G. Strasser announced that DAVIN D. THOMAS (“THOMAS”), age 32, of Ponchatoula, Louisiana, a former Delgado Community College ("DCC") Financial Aid Officer, was sentenced Thursday, March 21, 2019 to four years probation and ordered to pay $6,700 in restitution by United States District Court Judge Eldon E. Fallon. THOMAS was also ordered to perform 150 hours of unpaid community service. THOMAS previously pleaded guilty to a one count Bill of Information charging him with soliciting money from students in exchange for awarding students financial aid.
According to court documents, THOMAS was responsible for the verification of student financial aid applications and for identifying the students who were eligible for financial aid funds. From April 2014 through August 2016, THOMAS solicited funds from three DCC students in exchanged for awarding the students financial aid. THOMAS admitted to federal law enforcement that he accepted $6,700 in exchange for awarding the students financial aid.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation and United States Department of Education, Office of Inspector General. The prosecution of this case is being handled by Assistant U. S. Attorney Julia K. Evans.
Former Chinese Diplomat and Head of U.S. Operations for Chinese Construction Business Convicted of Engaging in Forced Labor and Related Charges by A Federal JuryRead the Press Release
On Friday, March 22, 2019, following a three-week trial, a federal jury in Brooklyn returned a guilty verdict on all five counts against Dan Zhong, the head of U.S. operations of Chinese Liaoning Rilin Construction (Group) Co. Ltd. (also known as China Rilin) and U.S.-based subsidiaries, including U.S. Rilin, who was formerly a diplomat of the People’s Republic of China (PRC). The counts of conviction were conspiracy to provide forced labor, providing and benefitting from forced labor, concealing passports and immigration documents in connection with forced labor (also known as document servitude), conspiracy to commit alien smuggling and conspiracy to commit visa fraud. The jury also found as a sentencing enhancement that Zhong engaged in the alien smuggling for commercial gain. Today, the jury separately concluded that six properties where the forced labor victims worked, including a high rise building in midtown Manhattan and a mansion on Long Island, are forfeitable. Zhong’s co-defendant in the indictment, Landong Wang, is a fugitive, believed to be in the PRC.
When he is sentenced by United States District Judge Ann M. Donnelly, Zhong faces up to 20 years’ imprisonment.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Angel M. Melendez, Special Agent-in-Charge, Department of Homeland Security, Homeland Security Investigations (HSI), New York, and Timothy W. Dumas, Special Agent-in-Charge, New York Field Office, Diplomatic Security Service, U.S. Department of State (DSS), announced the verdict.
“Unlike Chinese Communist elites, Americans do not practice, condone or tolerate forced labor,” stated United States Attorney Donoghue. “Mr. Zhong, a former long-time PRC diplomat, believed he could oppress and coerce Chinese construction workers in New York, forcing some to work for years without pay under the threat of physical harm and financial ruin. His crimes not only violate our laws, they contradict the values of this country.” Mr. Donoghue expressed his appreciation to the Department of State’s Office of Foreign Missions and the FBI’s Field Office in Newark, New Jersey, for their assistance on the case.
“These are human beings, forced to work seven days a week with no pay and forced to live in squalid housing with dozens of others, trapped by guards who would hunt them down and drag them back if they escaped,” stated FBI Assistant Director-in-Charge Sweeney. “This didn’t take place in a foreign country, this happened here in Manhattan, on Long Island and New Jersey. No human being deserves to be treated this way, in any country. Mr. Zhong and others may have believed they could get away with human trafficking and forced labor in this country because of the Chinese government’s disregard of the laws where it operates, but they will now face justice for their crimes.”
“With the hopes of attaining the proverbial American dream, victims were brought to the U.S. by Zhong, only to be forced to live in cramped, unsafe conditions, with locks on the doors so they could not escape,” stated HSI Special Agent-in-Charge Melendez. “Many worked 14 hour days for years, submitting to threats of financial ruin to their families or threats of violence. Forced labor simply put is modern day slavery and this investigation shed light on the willingness of criminals to exploit people for personal financial gain. We will seek prosecution of anyone who looks to increase their profit by forcing people to work with no pay.”
“This case illustrates the global reach of the Diplomatic Security Service and the effectiveness of federal agency collaboration to stop criminals from illegally obtaining U.S. visas to exploit foreign workers,” stated DSS Special Agent in Charge Dumas. “We’re committed to investigating visa fraud committed by U.S. business operators and others who facilitate criminal visa applications at U.S. Embassies and Consulates around the world.”
The evidence at trial established that Zhong’s company performed construction work on a variety of PRC government facilities in the United States, including the Permanent Mission of the PRC to the United Nations, the Embassy of the PRC to the United States, and PRC Consulates General in the United States (collectively, the PRC Facilities). Initially, Zhong, and his co-conspirators required workers to turn over substantial “security deposits,” including the deeds to their family homes that were subject to forfeiture if they refused to work as a key element of “debt bondage” contracts the workers signed. Once in the United States, the workers also had to surrender their passports to the conspirators. The workers were forced to put in 14-hour days, seven days a week, for years without receiving any pay. Twenty or more workers were housed in one and two-family houses in Jersey City, New Jersey. Inspections of some of these houses revealed numerous fire code violations, as well as illegal locks to prevent the workers from escaping. Through this scheme, Zhong and his co-conspirators attempted to prevent escape by the workers, at times using violent force. Several workers testified about their families being threatened and forced out of their homes in the PRC by Rilin. One worker testified that after escaping and being re-captured, he was warned that his legs would be broken if he again tried to escape. More recently, Zhong and his co-conspirators abused the legal process in the PRC by photographing a worker and his wife in front of a pile of cash totaling RMB1 million belonging to Rilin and then obtaining from a PRC court an enforcement order against the worker’s wife for RMB1 million after the worker escaped.
Although the visa applications prepared for the workers provided that the workers would work only at PRC diplomatic facilities, the evidence at trial established that Zhong and his co-conspirators forced them to work on private construction projects, including a commercial building in midtown Manhattan and private residences in Queens and elsewhere on Long Island. Zhong also used these workers as personal servants, preparing meals, chauffeuring him, and performing yard work.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Alexander A. Solomon, Ian C. Richardson and Craig R. Heeren are in charge of the prosecution, with assistance provided by Assistant United States Attorney Brian Morris of the Office’s Civil Division, which is responsible for the forfeiture aspect of the case.
The Defendant:
DAN ZHONG
Age: 49
Livingston, New JerseyE.D.N.Y. Docket No. 16-CR-614 (AMD)
Federal Grand Jury Indicts 12 Members of Jalisco New Generation Cartel (CJNG)Read the Press Release
Harrisonburg, VIRGINIA – A federal grand jury sitting in U.S. District Court in Harrisonburg has indicted 12 members of Jalisco New Generation Cartel (CJNG), a Mexican-based criminal organization considered by the Department of Justice to be one of the five most dangerous transnational organizations in the world, on federal drug conspiracy charges, United States Attorney Thomas T. Cullen announced today.
“CJNG is one of the most dangerous drug cartels in the world, and its members and associates are actively operating in the Shenandoah Valley and Southside Virginia,” United States Attorney Cullen stated today. “Dismantling organized drug activity and staunching the flow of deadly substances like heroin and cocaine into our communities are among my top priorities as U.S. attorney. I am grateful that our federal, state, and local partners share this goal and for their hard work during the course of this investigation.”
“This investigation demonstrates the extensive reach of Mexican drug cartels and the dangers posed by their presence and activities in the Western District of Virginia and across the Commonwealth,” said Jesse R. Fong, Special Agent in Charge of DEA Washington Field Division. “The DEA will continue to work with our federal, state, and local law enforcement partners, as well as the U.S. Attorney’s Office, to hold these powerful cartels accountable for the destruction they cause.”
In an indictment returned under seal on March 5, 2019, and unsealed today following the initial court appearance of two defendants, the grand jury charges:
- Ramon Carillo-Ruvalcaba, a.k.a. “The Barber” one count of conspiracy to distribute and possess with the intent to distribute cocaine, heroin, and marijuana.
- Eduardo Contreras-Devora, one count of conspiracy to distribute and possess with the intent to distribute cocaine, heroin, and marijuana and one count of possession of a firearm in furtherance of a drug trafficking crime.
- Daniel Gomez-Barajas, one count of conspiracy to distribute and possess with the intent to distribute cocaine, heroin, and marijuana.
- Roman Idearte-Bolanos, one count of conspiracy to distribute and possess with the intent to distribute cocaine, heroin, and marijuana.
- Alberto Jijon, one count of conspiracy to distribute and possess with the intent to distribute cocaine, heroin, and marijuana.
- Miguel Angel Patricio-Cajero, one count of conspiracy to distribute and possess with the intent to distribute cocaine, heroin, and marijuana.
- Isdro Ramos-Bojorquez, a.k.a. “Chilo” one count of conspiracy to distribute and possess with the intent to distribute cocaine, heroin, and marijuana.
- Jesus Rogelio Ramirez, a.k.a. “Jesse” one count of conspiracy to distribute and possess with the intent to distribute cocaine, heroin, and marijuana.
- Jonathan Rocas-Osorio, a.k.a. “Oscar Osorio-Munoz” one count of conspiracy to distribute and possess with the intent to distribute cocaine, heroin, and marijuana.
- Ana Bella Sanchez-Rios, one count of conspiracy to distribute and possess with the intent to distribute cocaine, heroin, and marijuana and one count of money laundering.
- Ritchie Triplett, one count of conspiracy to distribute and possess with the intent to distribute cocaine, heroin, and marijuana.
- Ernesto Valenzuela-Flores, a.k.a. “Juan Flores-Arrellano” one count of conspiracy to distribute and possess with the intent to distribute cocaine, heroin, and marijuana.
According to the indictment, between January 2015 and February 2019, the defendants trafficked multiple kilograms of cocaine, heroin and marijuana from Mexico into the United States. As part of the alleged conspiracy, CJNG members recruited individuals from Mexico to reside in Axton and Winchester, Virginia to facilitate the distribution of cocaine, heroin, and marijuana.
As part of the conspiracy, it is alleged that the defendants maintained a series of residential properties in and around Axton for the purpose of receiving, storing, packaging, and distributing multiple kilograms of cocaine and multiple pounds of marijuana which they had received directly from members of CJNG. These drugs were then allegedly shipped to Winchester, and elsewhere throughout the Mid-Atlantic region, for redistribution.
In addition, the indictment charges Sanchez-Rios, who owns and operates a money transmitting business, with money laundering. Between May 2016 and September 2018, Sanchez-Rios transmitted funds that she knew had been derived from a criminal offense, specifically drug trafficking.
The investigation of the case was conducted by the Drug Enforcement Administration, the Department of Homeland Security-Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigations, the Northwest Virginia Regional Drug and Gang Task Force (NWVRDGTF), the Henry County Sheriff’s Office, and the Virginia State Police. Assistance was provided by the Winchester Sheriff’s Office. Assistant United States Attorneys Erin M. Kulpa and Sean Welsh are prosecuting the case for the United States.
This investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force (OCDETF) Program. The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
The NWVRDGTF uses the combined efforts of local, state, and federal agencies to actively pursue those groups or individuals who manufacture, distribute, or sell illegal narcotics. The NWVRDGTF is comprised of the Virginia State Police, the Winchester Police Department, the Front Royal Police Department, the Strasburg Police Department, the Frederick County Sheriff’s Office, the Page County Sheriff’s Office, the Warren County Sheriff’s Office, the Shenandoah County Sheriff’s Office, and the Clarke County Sheriff’s Office.
A Grand Jury Indictment is only a charge and not evidence of guilt. The defendants are entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Fayetteville Man Sentenced for Drug Distribution and Firearm OffensesRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that Friday in federal court, Chief United States District Judge Terrence W. Boyle sentenced DENNIS ROBINSON, 26, of Fayetteville, North Carolina, to 124 months imprisonment, followed by five years of supervised release.
ROBINSON was named in an Indictment filed on August 14, 2018, charging him with possession with intent to distribute AB-FUBINACA, a synthetic cannabinoid, and marijuana, possession of a firearm in furtherance of a drug trafficking crime, and felon in possession of a firearm. On November 15, 2018, ROBINSON pled guilty.
According to the investigation, ROBINSON possessed distributable amounts of AB-FUBINACA and marijuana, as well as three rifles in December 2017. ROBINSON had previously been convicted of Robbery with a Dangerous Weapon in 2013.
This case was implemented through the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices in those communities on a sustained basis to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
Investigation of this case was conducted by the Fayetteville Police Department and Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorney Lucy Partain represented the government.
Erie Man Sentenced to 5 Years in Prison for Crimes relating to the Sexual Exploitation of ChildrenRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been sentenced in federal court to five years (60 months) in prison and ordered to make restitution in the amount of $3,000 on his conviction of federal laws relating to the sexual exploitation of children, United States Attorney Scott W. Brady announced today.
United States District Judge David S. Cercone imposed the sentence on Jonathan Scott Boynton, 31, 3420 Clifton Drive, Erie, Pennsylvania.
According to information presented to the court, Boynton received and possessed computer images and movies depicting prepubescent minors engaging in sexually explicit conduct.
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.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
United States Attorney Brady commended the Department of Homeland Security Investigations for the investigation leading to the successful prosecution of Boynton.
Eleventh and Final Defendant in Baltimore Drug Trafficking Conspiracy Sentenced to 12 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Eric Adams, age 43, of Odenton, Maryland today to 12 years in prison, followed by five years of supervised release, for possession with intent to distribute a kilogram or more of heroin and 500 grams or more of cocaine.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration – Baltimore District Office; and Commissioner Michael Harrison of the Baltimore Police Department.
“This case removed 11 drug dealers, a significant quantity of narcotics, and guns from the streets of Baltimore,” said U.S. Attorney Robert K. Hur. “Disputes between rival drug gangs often lead to shootings and murders in Baltimore City. We will continue to work with our law enforcement partners to remove violent drug dealers from our communities.”
According to his plea agreement, Adams and co-conspirators Claudis Lassiter and Kevin Murchison stored and processed wholesale quantities of cocaine in an apartment on Whetstone Way in the McHenry Row complex in Baltimore. Adams and his co-defendants supplied narcotics to others, including co-defendants DeAngelo Keith, Stanley Dunham., and others. Law enforcement located the apartment after a GPS tracking device was placed on one of Lassiter’s vehicles.
As detailed in Adams’ plea agreement, on May 5, 2017, investigators installed two cameras within the Whetstone apartment. From May 4, 2017 through May 13, 2017, Adams was captured on video processing narcotics inside the kitchen of the Whetstone apartment on at least five occasions. On May 11, 2017, investigators observed Adams process narcotics within the Whetstone apartment, then leave, meet with Stanley Dunham, and conduct a suspected drug transaction in Dunham’s vehicle. Investigators stopped Dunham following this meeting. Law enforcement located 30 grams of heroin in Dunham’s vehicle, which confirmed the drug transaction.
According to his plea agreement, on May 13, 2017, Adams brought a large suitcase into the Whetstone apartment and proceeded to process narcotics. When Adams left the Whetstone apartment, he was arrested and investigators searched the Whetstone apartment. Law enforcement recovered approximately one kilogram of fentanyl, almost three kilograms of heroin, over two kilograms of cocaine, a twenty-ton kilogram press, and other processing equipment and drug-cutting agents from the apartment.
Investigators also searched Adams’ residence and recovered in the master bedroom one .38-caliber revolver, loaded with five rounds of ammunition; a 9mm semi-automatic handgun, loaded with sixteen rounds; as well as a receipt, addressed to Eric Adams, for a 5x8x8 interior storage unit. On May 15, 2017, investigators served a subpoena to the manager of the storage company, who confirmed that Adams was renting storage unit 120. A short time later, a canine scan was conducted in the storage unit and the canine alerted positive to the presence of narcotics in storage unit 120. Investigators obtained and executed a search warrant on the storage unit and found another kilogram press, as well as a .22-caliber revolver.
Adams admitted that it was reasonably foreseeable to him that members of the conspiracy would distribute between three and 10 kilograms of heroin. Ten co-defendants have also pleaded guilty to their roles in the drug trafficking conspiracy, and were sentenced to between 12 months and 126 months in prison.
United States Attorney Robert K. Hur praised the DEA and the Baltimore Police Department for their work in the investigation and thanked the Office of the State’s Attorney for Baltimore City for its assistance. Mr. Hur thanked Special Assistant U.S. Attorney Christine Goo and Assistant U.S. Attorney James T. Wallner, who prosecuted this Organized Crime Drug Enforcement Task Force case.
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Eagle Butte Man Charged with Larceny and Possession of Ammunition by a FelonRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Larceny and Possession of Ammunition by a Felon.
Judson His Law, age 24, was indicted on March 12, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 20, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on November 3, 2018, His Law stole another person’s pickup truck. The Indictment further alleges that His Law, having previously been convicted of a felony, possessed fifty rounds of ammunition, which he took from the pickup.
The charges are merely accusations and His Law is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
His Law was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Duke University Agrees to Pay U.S. $112.5 Million to Settle False Claims Act Allegations Related to Scientific Research MisconductRead the Press Release
Duke University has agreed to pay the government $112.5 million to resolve allegations that it violated the False Claims Act by submitting applications and progress reports that contained falsified research on federal grants to the National Institutes of Health (NIH) and to the Environmental Protection Agency (EPA), the Justice Department announced today.
“The resources utilized by NIH and EPA to fund important research and clinical programs across the nation are limited,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “Today’s settlement demonstrates that the Department of Justice will pursue grantees that knowingly falsify research and undermine the integrity of federal funding decisions.”
“Taxpayers expect and deserve that federal grant dollars will be used efficiently and honestly. Individuals and institutions that receive research funding from the federal government must be scrupulous in conducting research for the common good and rigorous in rooting out fraud,” said Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina. “May this serve as a lesson that the use of false or fabricated data in grant applications or reports is completely unacceptable.”
Duke is a private university located in Durham, North Carolina. Duke receives millions of dollars in funding from NIH and the EPA for hundreds of grants each year. The settlement resolves allegations that between 2006 and 2018, Duke knowingly submitted and caused to be submitted claims to the NIH and to the EPA that contained falsified or fabricated data or statements in thirty (30) grants, causing the NIH and EPA to pay out grants funds they otherwise would not have. Specifically, the United States contends that the results of certain research related to mice conducted by a Duke research technician in its Airway Physiology Laboratory, as well as statements based on those research results, were falsified and/or fabricated.
“Duke knowingly, the government contended, falsified data to claim millions of grant dollars from the National Institutes of Health,” said Maureen R. Dixon, Special Agent in Charge, Office of Inspector General for the U.S. Department of Health and Human Services. “OIG and our law enforcement partners will continue to hold such grantees fully accountable regardless of the length or complexity of the investigations.”
“This settlement sends a strong message that fraud and dishonesty will not be tolerated in the research funding process,” said EPA Acting Region 4 Administrator Mary S. Walker. “We will continue to take appropriate legal measures to ensure a fiscally sound system that protects grant funds.”
The allegations were originally brought in a lawsuit filed by Joseph Thomas, a former Duke employee, under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government and share in any recovery. The Act permits the government to intervene in and take over the whistleblower’s suit, or, as in this case, for the whistleblower to pursue the action on the government’s behalf. Mr. Thomas will receive $33,750,000 from the settlement.
The investigation and settlement in this matter were the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Offices for the Middle District of North Carolina and the Western District of Virginia, the Department of Health and Human Services Office of Inspector General, and the Environmental Protection Agency Office of Inspector General.
The claims settled by this agreement are allegations only, and there has been no determination of liability. The case is captioned United States ex rel. Thomas v. Duke University, et al., Case No. 1:17-cv-276 (M.D.N.C.).
Duke University Agrees to Pay U.S. $112.5 Million to Settle False Claims Act Allegations Related to Scientific Research MisconductRead the Press Release
WASHINGTON – Duke University has agreed to pay the government $112.5 million to resolve allegations that it violated the False Claims Act by submitting applications and progress reports that contained falsified research on federal grants to the National Institutes of Health (NIH) and to the Environmental Protection Agency (EPA), the Justice Department announced today.
“The resources utilized by NIH and EPA to fund important research and clinical programs across the nation are limited,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “Today’s settlement demonstrates that the Department of Justice will pursue grantees that knowingly falsify research and undermine the integrity of federal funding decisions.”
“Taxpayers expect and deserve that federal grant dollars will be used efficiently and honestly. Individuals and institutions that receive research funding from the federal government must be scrupulous in conducting research for the common good and rigorous in rooting out fraud,” said Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina. “May this serve as a lesson that the use of false or fabricated data in grant applications or reports is completely unacceptable.”
Duke is a private university located in Durham, North Carolina. Duke receives millions of dollars in funding from NIH and the EPA for hundreds of grants each year. The settlement resolves allegations that between 2006 and 2018, Duke knowingly submitted and caused to be submitted claims to the NIH and to the EPA that contained falsified or fabricated data or statements in 30 grants, causing the NIH and EPA to pay out grants funds they otherwise would not have. Specifically, the United States contends that the results of certain research related to mice conducted by a Duke research technician in its Airway Physiology Laboratory, as well as statements based on those research results, were falsified and/or fabricated.
“Duke knowingly, the government contended, falsified data to claim millions of grant dollars from the National Institutes of Health,” said Maureen R. Dixon, Special Agent in Charge, Office of Inspector General for the U.S. Department of Health and Human Services. “OIG and our law enforcement partners will continue to hold such grantees fully accountable regardless of the length or complexity of the investigations.”
“This settlement sends a strong message that fraud and dishonesty will not be tolerated in the research funding process,” said EPA Acting Region 4 Administrator Mary S. Walker. “We will continue to take appropriate legal measures to ensure a fiscally sound system that protects grant funds.”
The allegations were originally brought in a lawsuit filed by Joseph Thomas, a former Duke employee, under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government and share in any recovery. The Act permits the government to intervene in and take over the whistleblower’s suit, or, as in this case, for the whistleblower to pursue the action on the government’s behalf. Mr. Thomas will receive $33,750,000 from the settlement.
The investigation and settlement in this matter were the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Offices for the Middle District of North Carolina and the Western District of Virginia, the Department of Health and Human Services Office of Inspector General, and the Environmental Protection Agency Office of Inspector General.
The claims settled by this agreement are allegations only, and there has been no determination of liability. The case is captioned United States ex rel. Thomas v. Duke University, et al., Case No. 1:17-cv-276 (M.D.N.C.).
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Defendant Who Exploited Opioid Addictions of Young Women Convicted of Crimes Related to Drug Trafficking and ProstitutionRead the Press Release
WASHINGTON – After a three-day trial, a federal jury in Concord, New Hampshire, found Steven Tucker, 33, of Manchester, New Hampshire, guilty on March 22 of one count of sex trafficking of a minor and of using interstate facilities to promote a prostitution business enterprise and maintaining a drug-involved premise. The verdict was announced by Assistant Attorney General Eric Dreiband for the Department of Justice’s Civil Rights Division, U.S. Attorney Scott W. Murray for the District of New Hampshire, and Peter C. Fitzhugh, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Boston.
Evidence presented at trial established that, between October 2013 and June 2014, the defendant operated drug and prostitution businesses in the Manchester area. He sold heroin to numerous individuals, including young women and a minor. Witnesses described how the defendant used their addictions to cause them to prostitute for his profit. The defendant would often front heroin to the women and then arrange prostitution “dates” for them. The women were required to give the defendant half of the proceeds and then purchase heroin from him with the remainder.
On other occasions, the defendant withheld heroin from the women, causing them to suffer painful withdrawal symptoms, and then instructed them to prostitute to earn money to purchase heroin from him. The defendant’s scheme guaranteed that he had a steady source of drug customers and money. Some of the women were required to help the defendant sell his heroin and received heroin in exchange. The defendant used violence and threats to maintain control of the women. The investigation began in 2014, when the mother of one of the women called the Manchester Police Department after the defendant beat her daughter.
“Motivated by greed, the defendant preyed on young, vulnerable women, selling them heroin, exploiting their addictions, and prostituting them for his own profit,” said Assistant Attorney General Eric Dreiband. “The Civil Rights Division and its Human Trafficking Prosecution Unit will continue its vigorous efforts to work with our federal and state partners to hold human traffickers accountable, vindicate the rights of their victims, and eradicate this despicable and inhumane exploitation from our country.”
“This case demonstrates the power of opioids to support criminal activity,” said U.S. Attorney Scott W. Murray. “This defendant took advantage of young women, using heroin and violence to induce them to commit acts of prostitution for his personal profit. His conduct was even more disturbing because he victimized a minor. We will continue to work closely with the New Hampshire Human Trafficking Collaborative Task Force and all of our law enforcement partners to identify, arrest and prosecute those who engage in this type of unlawful and exploitive activity.”
“We’re grateful that the Jury has brought back this verdict.” said Peter C. Fitzhugh, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Boston. “This case, where the offender cruelly exploited his victims through drug addiction and violence to induce them to prostitute, was disturbing on several levels. The strong partnership among our HSI Special Agents, the Manchester Police Department, victim advocates, and the members of the New Hampshire Human Trafficking Collaborative Task Force was critical in investigating this case. We hope this verdict can serve as some small measure of healing for the victims of this dangerous threat to the community.”
This prosecution is the result of the joint investigation by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Manchester Police Department, the New Hampshire Human Trafficking Collaborative Task Force, the U.S. Attorney’s Office for the District of New Hampshire, and the Civil Rights Division’s Human Trafficking Prosecution Unit (HTPU). The Hillsborough County Attorney’s Office provided victim assistance in the case.
The New Hampshire Human Trafficking Collaborative Task Force is a multidisciplinary effort comprised of law enforcement as well as social, medical, and legal services for victims of human trafficking. The Task Force is funded by a grant from the United States Department of Justice, Office of Victims of Crime (OVC) and Bureau of Justice Programs (BJA).
The core team members of the Task Force are the Manchester Police Department, Child and Family Services of New Hampshire, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the United States Attorney’s Office for the District of New Hampshire.
This case is being prosecuted by Assistant U.S. Attorney Arnold Huftalen for the District of New Hampshire and Trial Attorney Vasantha Rao for the Civil Rights Division’s HTPU, with assistance from HTPU Trial Attorney Maryam Zhuravitsky.
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